The party’s finance, tourism and industry spokesman Edward Fenech, while reiterating AD’s disagreement with the proposed sale of government shares,said that:“AD never implied that government takes any decisions for Bank of Valletta. In our original statement to government we cautioned Minister Gatt to think over again the intended sale of the shares government holds in BOV”.

Mr Fenech outlined AD’s reasons for its disagreement with this decision by the government. “In effect, government has the right to appoint the group’s chairman, a position that usually implies that the person holding this directorship also takes up the post of chief executive officer. This full-time executive position means that the government appointee has very considerable influence over the bank’s strategy and consequently over its lending policy.

“The existing 25 per cent shareholding in effect allows government to appoint a person of its choice, presumably an individual who the ministry believes to have a very good understanding of the local economy, as well as a good measure of sensitivity towards the needs of local business and consumer lenders.

“When the shares are disposed of, government will lose the right to appoint the group’s chairman and therefore will be ceding the last measure of influence it has over commercial banking in Malta. In no way was our comment to be construed in a manner that implied a lack of confidence in the bank and its chairman, whom AD has full confidence in. This decision does not make sense at this delicate stage in the development/restructuring of our economy and especially if this

is being planned solely to raise finance,” he concluded.