Nationalist MP Kristy Debono has defended The Malta Independent on Sunday over a report revealing how Bank of Valletta was ignoring money laundering and terrorism laws to accept Libyan business. Speaking in Parliament yesterday, the PN MP blasted Finance Minister Edward Scicluna for saying the newspaper was irresponsible, instead of directing his criticism at those behind these serious allegations.
“We cannot close our eyes to serious allegations involving important financial institutions. The headline in itself – BOV Leaks – gives the impression that more worrying stories will be leaked.”
Mrs Debono said it was not the media that was being irresponsible, but the people responsible for the shortcomings revealed in the TMIS report. “The media, like the Opposition, has a duty to reveal such irregularities. Instead, the government is accusing the media of being irresponsible.”
“Let us not turn BOV into a government cash cow or into an institution that practices favouritism with friends of the government,” Mrs Debono warned. Appealing for caution, she said it was of serious concern when a bank was continuously making headlines for all the wrong reasons. “The government cannot expect the Opposition and the media to shut up and not speak about this. Every time we do we are labelled as being negative and destructive.”
She noted that the financial services sector was already facing serious challenges as a result of the Panama Papers revelations and that the EU was currently working for a harmonised legal and fiscal financial services framework, which would affect Malta’s competitive edge. In light of this, we have to be extra cautious, she said. “We have to be convincing, at a European level, that we want a serious financial services sector and that we believe in transparency. We have to show that our laws are based on the principles of transparency and zero tolerance on money laundering, fraud and all forms of abuse.”
The same banks that passed rigorous stress tests imposed by the EU should not be caught up in controversies about malpractices, this time concerning basis due diligence tests. If we play with fire we are bound to get burnt, Mrs Debono said.
She again appealed for the Financial Intelligence Analysis Unit to be given additional resources to become more proactive and effective in its investigations. Whenever such allegations surfaced the FIAU should investigate and take the necessary measures.
Referring to the Panama Papers scandal, the PN MP said the country needs a government that takes decisions, not a PM who states that the people will decide if this case is closed or not. “If you want people to stop talking about your actions you need to admit that you were wrong, repent and correct your mistakes, instead of persisting and expecting people to stop speaking about this.”