BOV confirms resignation of chief risk officer, says succession plan is in place

The Bank of Valletta (BOV) has confirmed the resignation of its chief risk officer after media reports began to suggest that he will be stepping down over claims about the bank’s €36 million loan to Steward Health Care.

In a company announcement on the stock exchange, BOV said that Miguel Borg has resigned from his positions as chief risk officer and executive director of the bank with effect from 5 April.

The bank is putting in place a succession plan for the two positions.

In its statement, BOV insisted that there have been no known instances, or suspicion of fraud or corruption involving the Group’s management or employees who have significant roles in internal control.

“Furthermore, there have been no known instances of non-compliance or suspected non-compliance with laws and regulations.”

The Shift News first reported that Miguel Borg stepped down after telling staff at a meeting that he will no longer be in charge of vetting multi-million loan facilities.

This came on the back of a blog post by author Mark Camilleri, who described Borg as "Labour's guy in BOV".

Steward acquired the 30-year concession to run three state hospitals as a private concern in December 2017 from Vitals Global Healthcare, an unknown consortium of medical entrepreneurs granted the concession in 2015. But VGH racked up millions in debt with nothing to show for it, negotiating a buy-out of some €15 million from Steward.

Later in 2018, Bank of Valletta granted Steward a €5 million overdraft facility and a €3 million loan; but in August 2019, BOV also consented to a loan of €22 million and another of €5.9 million to two Steward subsidiaries.

Politician Arnold Cassola called into question the due diligence performed by BOV and raised concerns about the fate of the €36 million that was loaned to Steward.