The Nationalist Party today said that parliamentary secretary Michael Falzon should not have been given a termination benefit of €260,000 by Bank of Valletta once given a Cabinet position but should have been given unpaid leave instead.
Last week, The Malta Independent reported that Dr Falzon would have to return at least €200,000 in cash should he give in to pressure to resign over the Old Mint Street property scandal. He was granted a ‘termination' package of €260,000 which he declared as early retirement.
Addressing the media this afternoon, Shadow Minister for the Economy Claudio Grech said that the Parliamentary Secretary should have only been given unpaid leave while serving as a public official. This would have allowed him to return to BOV if needed, given his exceptional knowledge in the field. Mr Grech said that BOV should have been more cautious when dealing with such matters, stressing that the benefit was a unique one.
The termination benefit, PN spokeswoman Kristy Debono said, puts bad light on the bank and could even affect its shareholders and credit rating. She said that to avoid more speculation, the BOV should come clear on the decision.
'Joseph Muscat weak in the face of abuse of power'
PN spokesman Jason Azzopardi said that the Prime Minister is showing weakness when he has not yet requested the resignation of Dr Falzon. He argued that the parliamentary secretary was the one who signed the two deals resulting in Mark Gaffarena becoming a multi-millionaire overnight, noting that the two travelled together and met at Castille several times before.
“Mr Gaffarena is never satisfied,” Dr Azzopardi remarked, referring to the unjunction filed in court today against the Cefai family, who own another part of the property in Old Mint Street, set to be expropriated by the government.
“No such expropriation under Nationalist government”
Asked by The Malta Independent to provide a guarantee that no such case occurred under a previous admiistration, Dr Azzopardi said that the Nationalist government never expropriated land, with no public purpose, in such a manner.
Asked whether a similar financial package was provided by the bank, Dr Azzopardi said that he can’t answer because he is not informed.
Questioned over the controversial €400,000 compensation for an 8,000 square-metre piece of land in Mtahleb, Dr Azzopardi said that the Labour Party is creating stories on unfounded facts. “The land in question is far from a passageway and that the land was never valued at €60,000 as reported in the media. Three architects were asked to provide a valuation, and €200,000 of the total was covering interests.”