Parliamentary Secretary Michael Falzon is denying any conflict of interest even though he was engaged in negotiations with Bank of Valletta in his capacity as a parliamentary secretary while at the same time discussing his personal early retirement from the bank.

Dr Falzon was involved in discussions leading to the bank extending the lease of the House of Four Winds building in Valletta, which commands stunning views of Marsamxett Harbour.

When asked if he had discussed the matter with the Prime Minister, Dr Falzon said: “I have already instructed you not to correspond with me in any matter whatsoever.” But in a press conference on Friday, he dismissed any conflict of interest, insisting he is being attacked for managing to secure from BOV “€5 million for the Maltese public”.

The Office of the Prime Minister did not respond to questions about the matter. Article 8.1 of the Ministerial Code of Ethics states that Cabinet members should seek the Prime Minister’s advice if a potential conflict of interest arises.

Last year, Bank of Valletta reached an agreement with the Land Department to pay €4.6 million to the government to convert a 40-year lease on the House of Four Winds, used as the chairman’s office, to a 65-year emphyteusis.

According to the ‘Disposal of Government Land’ law, such conversions are only permitted following the issue of a public tender or through a parliamentary resolution.

Bypassing this provision, the government used an exception in the law stating that government land could be transferred by emphyteusis “if it consists of land which is offered for an industrial project after applicant would have satisfied government about the benefit which the project would render to the country’s economy and that it would create an adequate number of jobs.”

Asked how he could justify the deal in the absence of an industrial project, Dr Falzon said the term also included “the banking industry”.

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