Cecil Pace, former head of the defunct Bical Bank and one of Malta's biggest businessmen 40 years ago, has passed away. He was 87.

The Bical Bank collapsed in 1972, and it took well over 30 years for depositors to be paid back their money.  

The bank had been set up 10 years previously by brothers Cecil and Henry Pace.

They had also ventured out to a wide range of economic activities including hotels such as the Excelsior, shipping, manufacturing and car imports. They employed some 4,000 people.

Central Bank inspectors first raised the alert flag over the state of Bical in 1970. The bank was closed on November 25, 1972 owing to a shortage of liquidity and Karmenu Mifsud Bonnici, later prime minister, was appointed liquidator.

The directors insisted that assets far exceeded liabilities.

Both were however convicted of misappropriation, fraud and forgery. Cecil Pace was jailed for 14 years and Henry to nine.

Cecil Pace was released from prison in 1985 and subsequently launched legal proceedings against Dr Mifsud Bonnici.

He claimed that Bical and its associated 30 companies had owned six hotels, seven ships, a shipyard and other immovable property which were valued at €7 million. But Dr Mifsud Bonnici, as controller, had failed to administer the assets correctly and had sold them at ridiculous prices. He had moreover failed to keep proper records save for some notes on a school exercise book. 

Mr Pace subsequently also launched court action against Dr Mifsud Bonnici's successor, Emanuel Bonello for his alleged inaction and his 'exorbitant' fees.

Both denied the claims.