Education minister Evarist Bartolo yesterday vowed to keep up the pressure on the MFSA’s chairman Joe Bannister, whose position he insists is no longer tenable.
Mr Bartolo has been calling for Prof. Bannister’s resignation over the past weeks, and has also raised questions over the way the MFSA – an independent financial regulator – is being run under his tenure.
The Education Minister has said Prof. Bannister’s position was untenable as he had “directorships and investments in the tax haven of the Cayman Islands”.
Speaking to the Times of Malta, Mr Bartolo again said he had no faith in Prof. Bannister. He insisted that his assertion was based on “evidence and facts”.
Question if he had presented these facts to the Prime Minister, Mr Bartolo said Dr Muscat “probably” read his “articles”, which usually take the form of posts on Facebook.
Asked about the Education Minister’s assertions yesterday, Dr Muscat said Mr Bartolo had a right to express his concern on certain issues. Dr Muscat said he would take up any issues with the regulator “personally”, emphasising that his priority as Prime Minister was ensuring stability in the financial sector.
On his part, Mr Bartolo vowed to keep on making his point about the MFSA chairman.
“I think the MFSA can be run much, much better. I think as a regulator his position is untenable as I have already mentioned,” Mr Bartolo said.
I think as a regulator his position is untenable as I have already mentioned
The Education Minister has of late broadened his criticism of the MFSA in light of the announcement that it had found “serious regulatory shortcomings” at Nemea bank.
Nemea was established in Malta in 2008 as an online-only bank.
The MFSA said last week it had appointed PricewaterhouseCoopers Malta to take charge of the bank’s assets for the purpose of safeguarding the interests of depositors and its other clients.
Nemea bank’s clients have been informed by the bank that withdrawals are being limited to €250 per day for each client until further notice.
Mr Bartolo was quick to point out in his writings that former prime minister Lawrence Gonzi was one of the bank’s directors.
On Monday, Mr Bartolo said supervision at the MFSA under Prof. Bannister “is weakened by the year, with more financial scandals involving Malta”.
“Prof. Bannister’s conflicts of interest impinge on the MFSA’s operational independence. His interference in issues of regulation, supervision and enforcement, damage the MFSA’s integrity,” Mr Bartolo wrote.
Prof. Bannister’s term at the MFSA was extended for another five years by the government in January 2014 after his contract expired.
jacob.borg@timesofmalta.com