Former BOV employee files unfair demotion protest over deposit box incident

A former employee of Bank of Valletta has filed a judicial protest against the bank, claiming unfair demotion and accusing the bank of paying off third parties to "buy their silence" on the loss of money from their safety deposit boxes.

Gaetano Falzon, formerly a branch custodian at the San Gwann branch, said he was unfairly demoted by the bank after disciplinary steps were taken against him, in connection with his duties administering the branch's safety deposit boxes.

MaltaToday is also informed that the bank compensated the depositors who allegedly suffered losses from the incident, but that the same depositors are now being charged in court of having defrauded the bank. The criminal case is being heard behind closed doors.

In his protest, Falzon says he denied the accusations brought against him by the bank, claiming the incident was solely due to an unsafe system because of a "lack of effective control" on the copies of the keys of the safety deposit boxes and a software defect.

Additionally, Falzon accused the bank of paying a considerable sum of money to "buy the silence of dishonest persons who were indicating they will expose the bank's shortcomings".

In the incident, the same safety box was erroneously allocated to two depositors. When one depositor flagged the mix-up, because they realised their safety box contained items that did not belong to them, the bank - according to Falzon - compensated them in a bid so that the matter is not given publicity.

But the depositor was later charged with defrauding the bank over the claims for compensation made.

Falzon also said the disciplinary procedures were vitiated by a conflict of interest, because the internal audit department had for several years, failed to rectify the safety system. Only after the incident did the department recommend a change in the system.

He claimed he was the "sacrificial lamb" for the lack of control and wrong executive decisions that were the cause of the incident.

In the protest, signed by General Workers Union lawyer Aron Mifsud Bonnici, Falzon says the disciplinary steps were not taken within the time stipulated by the collective agreement for employees, and that the disciplinary board was composed of officials who had a direct and personal interest in finding him guilty for the loss of money.

The judicial protest calls on the bank to cancel the disciplinary action and reconfirm him in his employment grade as well as pay him damages for his sacking, and to start procedures to recoup the money paid to the third parties to remain silent on the incident.