Banking supervisors disagreed with the outcome of an internal exercise conducted by Bank of Valletta directors last year, who declared one of them “unfit” to continue serving on the board.

The Joint Supervisory Team, which includes senior officials from both the Malta Financial Services Authority and the European Central Bank, gave the green light to George Portanier to sit on the board, together with the other members approved during the latest annual general meeting in December.

George Portanier (left) and chairman John Cassar White.

In a brief company announcement, BOV announced yesterday it had received the approval of the banking supervisors for all board members.

When contacted about the matter, bank chairman John Cassar White would not comment. “The bank has no further comments to add to what was stated in the company announcement,” he said.

Mr Portanier did not wish to comment.

Following the board self-assessment, Mr Portanier, who had been serving on it for 22 years, initiated legal proceedings challenging the decision. The court issued an injunction in his favour and criticised the way in which the assessment had been conducted.

It was ultimately the supervisors who decided on director suitability

Describing the whole exercise as “an antithesis of EU banking regulation”, the court ruled that the bank had failed to set up an independent nominations committee as required by the new EU rules. Instead, the chairman had instructed directors to make a self-assessment of their suitability and that of fellow candidates.

Mr Cassar White defended the correctness of the exercise and, in a letter to shareholders, said that although he respected the country’s judicial system, “it was ultimately the banking supervisors who decided” on the suitability of directors.

Apart from Mr Portanier, the exercise had also found another candidate “unfit” to continue to serve. She did not seek re-election.