MFSA will not comment publicly on court action by one of its governors

The Malta Financial Services Authority will not comment on the court action taken by one of its governors against the CEO, the authority said.

In a short statement released to the media on Wednesday morning the MFSA said it took note of the judicial letter filed by board member Joe Brincat.

“The authority does not consider it appropriate to comment publicly on the ongoing matters referred to by the said governor. However, the authority wishes to make it clear that funds administered by it, are, and will continue to be used exclusively in the exercise of its functions and operations,” the MFSA said.

It added that the board “shall remain focused on the implementation of its vision and strategy”.

The case revolves around a judicial letter filed by Brincat, a veteran lawyer and former deputy leader of the Labour Party, over what he decried as irresponsible spending by the MFSA on golden handshakes.

The judicial letter was addressed to MFSA CEO Joseph Cuschieri.

Only yesterday, the Opposition asked for a meeting of Parliament’s public accounts committee to discuss and investigate the behaviour of the authority. The Nationalist Party spokespersons also asked for political responsibility to be shouldered.

Controversy has surrounded the MFSA’s decision to offer its former human resources manager an early retirement package. George Spiteri had helped device the early retirement scheme, which included no clause precluding those benefiting from it from seeking employment in another government entity.

Spiteri left MFSA and took up a similar post with the Malta Business Registry, which earlier this year was hived off from the MFSA.

A second case involved the MFSA’s former chief operating officer Reuben Fenech, who is understood to have been given marching orders by the CEO after the two clashed.

It was this second case that prompted Brincat to file the judicial letter after reports suggested that Fenech was to be given a golden handshake to leave the authority.