The government sprang to the defence of Bank of Valletta chairman John Cassar White this afternoon after the Nationalist Party said the bank has been rendered a Labour Party club and the government is "using" the chairman to fulfill pre-electoral pledges, according to the Opposition.
Opposition spokeswoman Kristy Debono said this morning BOV chairman John Cassar White had a lot to answer for regarding decisions taken by the bank, including the special arrangement given to Parliamentary Secretary Michael Falzon.
"Decisions taken by John Cassar White are casting doubts on his leadership of the bank," she said at a press conference, adding it seemed like the Labour government was using BOV as "a cash cow to fulfill electoral pledges".
Ms Debono said private shareholders, who make up 60 per cent of the bank's shareholding structure, had a right to information on decisions taken.
Dr Falzon was awarded a golden handshake of €260,000 upon his appointment as parliamentary secretary, but with an option to return to the bank.
Opposition spokesman Ryan Callus said it was unheard of to have severance packages or early retirement schemes that allowed the option for the employee to return.
"Dr Falzon should have taken unpaid leave but the bank decided to give him tax free four years pay in advance," Mr Callus said.
He said the early retirement decision was taken by Mr Cassar White, auditor Deo Scerri, who is the Labour Party's auditor, and Joe Zrinzo, father of former PL president Stefan Zrinzo Azzopardi.
"Justice is not served by silence and Mr Cassar White has a duty to explain decisions taken to shareholders... The bank is not a Labour Party club," Mr Callus said.
GOVERNMENT'S DEFENCE
In a reaction, Parliamentary Secretary for Competitiveness Jose' Herrera said he wanted to condemn partisan attacks on financial institutions aimed at weakening those institutions. This attitude undermined the consensus which had long existed in this sector.
He said the attacks against BOV had no basis and were aimed only at casting a shadow on the bank, despite the seriousness of its management, evidenced by how it passed the EU stress tests.
Furthermore, Mr Cassar White was well known and highly respected for his integrity and seriousness and the former administration had also trusted him and chairman of Malta shipyards.