Tumas Investment says Yorgen Fenech arraignment will not impact management continuity

Tumas Investment has announced that the resignation of Yorgen Fenech and his arraignment in connection with the assassination of Daphne Caruana Galizia will not impact the management continuity of the Tumas group and Spinola Development Company Limited. 

In a statement on Monday, the investment firm said that as stated in the company’s May 2017 prospectus, the post of executive chair and CEO of the Tumas Group is held by Raymond Fenech, who had occupied both roles since the demise of George Fenech in 2014, and that he would continue to do so.

“Contrary to that which has been stated by local media, Yorgen Fenech did not hold the post of chief executive officer of the Tumas Group or of SDC,” the company said.

Tumas Investment said that Yorgen Fenech has “strenuously denied” all allegations linking him to irregularities, that were reported in the media. “The events unfolding recently have caused concern and dismay to the Board of Tumas Investment, that supports the Tumas Group’s statement disassociating itself from the alleged actions being attributed to Yorgen Fenech.”

The company said that during the course of 2019, the board made enquiries with the directors of SDC on the reputational risk arising from press allegations made in respect to Fenech. It said that the board established that Fenech’s position as a director on various boards of companies within the Tumas group including IT, derived from his shareholding within the group “pursuant to inheritance.”

TI said that the board has also sought and received assurances from the Tumas Group during the course of 2019. The firm said that however, the Tumas Group had not benefited from any illicit activities attributed to Fenech. “The Board has, moreover, been informed that, in the light of the events that have unfolded over the past days, the Tumas Group feels that it should seek additional comfort in this regard through an independent, external report.” 

Furthermore, TI said that the financial performance of SDC remains satisfactory and fully in line with the annual publication of its financial analysis summary, the last being  28 June 2019, of which is available to all investors on the Tumas Group’s website. “SDC continues to enjoy the support of the various local and international stakeholders and partners involved in its operations.”