Parliamentary Secretary Michael Falzon could only return to his job at Bank of Valletta until the end of this legislature, chairman John Cassar White said yesterday.
Defending the unique early retirement agreement between Dr Falzon and the BOV during the bank’s annual general meeting yesterday, Mr Cassar White noted that the parliamentary secretary would have to return a substantial part of the €260,000 pay-off he was given if he decided to return to his job.
He told the Times of Malta Dr Falzon would not be able to go back to the bank once this legislature was over.
He has up to the end to decide. After that, he cannot return to the bank
“Dr Falzon has up to the end of this legislature to decide whether to return to the bank or not. After that, he cannot return to the bank,” he said.
Asked to specify whether the end of the legislature meant the day Parliament was dissolved or when the election was held, Mr Cassar White said “the deadline is the date when the legislature expires by law”.
Observers pointed out that the term ‘end of the legislature’ could be open to interpretation, even taken to mean that Dr Falzon would be able to return to the bank in the period between the dissolution of Parliament and election day without being obliged to return any part of the €260,000 payout.
Dr Falzon was also asked what he understood by the ‘end of the legislature’ but no reply was forthcoming as of the time of writing.
In his address to shareholders, Mr Cassar White said that, although there might be some “who might not understand the logic of the ad hoc early retirement given to Dr Falzon”, the bank wanted to end its relationship with its former employee to avoid any potential conflicts of interest.
Dr Falzon’s early retirement raised eyebrows because, apart from his €260,000 payout, he was also given the possibility of returning to his job in case he ended his political career during this legislature.
Only Dr Falzon benefited from such a concession from among bank employees who accepted early retirement.
Mr Cassar White compared the arrangement given to Dr Falzon to “similar situations” when bank employees were appointed chairmen of State entities. “In that case, the bank used to carry on paying the salaries and benefits to those involved and then allow them to return once their term of office was over,” he said.
Mr Cassar White served as chairman of Malta Shipyards under both Labour and PN administrations, having been seconded there by the bank.