Auditor General asked to investigate retired MFSA director's re-engagement

Repubblika has asked the NAO to investigate reports that a former HR director at the MFSA received an early retirement package before being re-employed by another government agency

Repubblika has asked the NAO to investigate a former MFSA employee receiving an early retirement package before being transferred to another government agency
Repubblika has asked the NAO to investigate a former MFSA employee receiving an early retirement package before being transferred to another government agency

The NGO Repubblika has requested that the National Audit Office (NAO) investigate reports that a former director for human resources at the Malta Financial Services Authority (MFSA) who given compensation for retiring early only to be re-employed with another government agency.

Last week it was reported that the MFSA’s former Human Resources director had been “encouraged” to opt for early retirement, for which he received a payout of €150,000.

According to the report, published in the Sunday Times of Malta, the former employee was subsequently employed with the Registry of Companies Agency, which up until recently formed part of the MFSA.

Like the PN last week, Repubblika pointed to the fact that the reports had not been denied by the agency or the government.

In a letter to the NAO, Repubblika said that the reports had alleged that George Spiteri had been paid €150,000 for his early retirement which “consisted of public funds”.

Moreover, it pointed out that other MFSA employees who were working at the Registry of Companies had been transferred onto the book of the new agency with the same responsibilites, “while Mr Spiter’s responsibilities were drastically downsized”.

Furthermore, Repubblika said that since the companies’ register had been hived off from the MFSA, “more than €1million in golden handshakes had been disbursed between 10 employees, none of whom were offered another job with an offshoot of the MFSA, as had happened with Mr Spiteri”.

“In the best hypothesis, [the alleged facts] amount to non-economical, non-effective and inefficient use of public funds, and in the worst hypothesis, amount to embezzlement,” the NGO said.

It added that since the case does not fall witihn the remit of the Public Service Commission, it could only ask for redress from the NAO.

 “Repubblika is making itself available to the NAO and would be willing to give more information and details that could help it in the course of its investigation.”

Repubblika asked the NAO to start a formal investigation on the above-metioned media report and to report on it in terms of Law.

In its reply to the PN’s statement last week, the parliamentary secretariat for the financial services noted that the MFSA was an autonomous authority and that the government was no longer responsible for employees’ remuneration packages.