PM allowed Malta’s reputation to collapse - Busuttil
● Joe Bannister will not remain MFSA head
A PN-led government will not keep Prof. Joe Bannister as the Malta Financial Services Authority Chairperson, Leader of the Nationalist Party Simon Busuttil announced at a press conference in Valletta. He was speaking before PM Joseph Muscat announced that Prof. Bannister would be start his resignation process by the end of the year.
Dr Busuttil said he would not actually need to ask for is resignation as the position, much like many other chairpersons of government authorities, does not have security of tenure and holders of such positions resign after every election.
Prof. Bannister has been under significant public pressure following the leak of a damning FIAU report onto the practices of Pilatus Bank. Pilatus Bank is at the centre of the Egrant inquiry and the inquiry concerning Keith Schembri and Brian Tonna.
The press conference was called in order to address the uncertainty in the financial services sector following the Malta Files reports this weekend.
Malta Files refers to a project undertaken by the network of European Investigative Collaborations (EIC) which exposed how the system allows for companies to pay the lowest levels of tax on profits in the EU. The system has been in place for several years, and has the full backing of both the Nationalist Party (PN) and the Labour Party (PL), and was fully vetted by the European Union before Malta became a member.
Dr Busuttil maintained that the Malta Files reports were incorrect since the country is not a tax haven by legal definition, and there were no offshore structures, as is being reported.
“We are proud that we created this sector through national consensus and we are in full support of the financial service sector.
“Everyone knows that we are in this situation because Joseph Muscat allowed this country’s reputation to deteriorate just to save Konrad Mizzi and Keith Schembri. First with the Panama Papers, and then with at least two case of bribes and money laundering involving Mr Schembri. If he removed them, he would have had to go himself. The attack is effective not because there is fact behind it, and there isn’t, but because the country cannot be taken seriously with a Prime Minister who is not credible enough to defend our interest.”
He added that, “the PM is yet to contact me after three days to see how we can tackle the issue, in spite of his calls for unity.”
Proposals for the Financial Services Sector
The PN Leader outlined some proposals for the financial services sector, which he will discuss with representatives of the sector this week.
He pledged that, as PM he would use the country’s EU Presidency to send a clear message to the rest of Europe that Malta is determined to rebuild its reputation of trust, respect and integrity.
A PN-led administration would consolidate the financial service sector by establishing a high level group of experts to examine the current situation and make recommendations. This group would report directly to the PM and would create an international five year strategy for the sector.
This, he said, will be established as soon as possible, and could start as early as June.
The PN Leader said that his government would ensure that the regulators of the financial services sector; the Malta Financial Services Authority, the FIAU, and Finance Malta; will become independent and will operate without any political interference. Dr Busuttil said that there will also be greater emphasis on the importance of innovation in the sector. “Our laws and regulations would be more dynamic and one step ahead of the competition.”
Malta Files
Asked by The Malta Independent as to whether or not a PN-government would close any loopholes which were highlighted by the Malta Files reports, Dr Busuttil maintained that nothing of the sort was occurring.
“There is a publication of the list of registered companies in Malta which is already available. It can be said that it was not easy to find, but it was there on the full register of Maltese companies.”
Dr Busuttil defended the sector saying, “since when had it become criminal to have a Maltese company. This is all because of the branding of the Prime Minister, he has lost all credibility.”
Dr Busuttil was further pressed on the issue by other members of the press, particularly concerning the country’s use of fiduciary services to hide ultimate beneficiary owners of some companies.
“This is completely legal,” Dr Busuttil said. ”It is offered as part of our system by responsible professionals who perform due diligence and KYC (know your client).”
John Bonello
Turning to former PN international secretary John Bonello, who on Sunday addressed the PL mass meeting in Mqabba, and labelled Dr Busuttil a liar, the PN Leader said that he did “not want to get into personal battles, but John Bonnello wanted to be a candidate in the MEP elections two years ago, unfortunately we only selected eight out of fourty, and he was not one of them. It seems he never got over that decision.”