The Satabank saga is having repercussions on local businesses, with the GRTU leading the criticism that businesses are being given little to no information by the bank on its own doorstep, and business closures are impending.

According to GRTU CEO Abigail Mamo, "This started off with a few member businesses complaining of difficulties they were facing doing business, having to accept only cash since their accounts and POS machines had been blocked or were not working."

But soon, more complaints started flooding in and the union realised the problem and issued a feeler press release to see what the problem was exactly and what the union could do about it.

Mamo explains, "The response was overwhelming. The phones and emails did not seem to stop. On Friday 2 November, we held an urgent meeting for interested parties. 

"The GRTU heard about the troubles they were having and it took the issue seriously. There was a lot of frustration and anger at the meeting. They explained what a mismatch there is in Malta with the government trying to attract innovative sectors and traditional banks not ready to accept such business.

"A bank licensed by the Maltese authorities themselves, which is the only one that accepted their business, has left them with their business and personal life on hold.

"They of course went immediately to other banks to get their business working again and nobody would even give them an appointment. They described the feeling as being like an infectious disease that nobody would touch. They are reluctant to just pack up and leave since they have invested a lot and have their family and children settled in schools here for a number of years.

"They describe our country as a joke. They cannot understand how in this day and age this is possible."

Since then, Mamo explains, the GRTU has kept in touch with these people on a daily basis, providing them with any information that could be helpful. 

"We sought to find a financial services provider that would consider taking them on board to get those without an account operational again. We succeeded and checks on businesses are being carried out and are currently being on boarded, addressing the most critical situations first."

But, Mamo says, hundreds of millions of euros are still blocked. The communication that was eventually released by the Malta Financial Services Authority, only after GRTU pressure, said that transfers will be possible in EU EEA accounts but that this will take time.

"Two weeks and still no timeline has been specified, no procedures and nobody knows where they stand. The GRTU is not questioning the need to take immediate action but the story does not start and stop with the bank. Hundreds of depositors have been left stranded. We have received dozens of emails from businesses showing us the standard replies they had received which gave no information or reassurance."

Nowadays, Mamo explains, "investors feel very strange when they are sent knocking from one door to the other begging for information. They do not get past receptionists and even worse when they go to the bank they are taken outside the building and told that things are being taken seriously and once information is available, it will be communicated. They all went through the same experience.

"From what we know, action on the bank started in February. This resulted in the bank not being able to accept new clients but no plan was put in place to address potential results and effects on depositors."

There has been total disregard of depositors, Mamo charges, adding that some held both personal and business accounts with Satabank. They have been unable to pay their employees' wages, business and personal rents and receive or send any payment. Two weeks is a long time in business, especially for most which are fast growing sectors. The damage already runs into the millions of euros.

"Some have expressed their concern with the authorities that their VAT payments are due and they do not have accessible funds to make the payment. The authorities treat this as being s a cash flow issue, something that is of no concern to them.

"The MFSA CEO and the Minister for Finance has assured us that they are doing all they can. Following multiple calls and message exchanges asking for meetings, MFSA CEO Joe Cuschieri was not very responsive and in fact, an official request was sent in writing to hold an urgent meeting. We got a reply late on Friday that a meeting will be held tomorrow morning (12 November). 

"This is indeed strange since GRTU is a social partner registered at law. We discuss sensitive topics with the government on a daily basis. We are not after what happened in Satabank and the action taken. We are clearly after information concerning depositors in terms of risk based strategies, funds release procedures and timelines. We are trying to see if we can also help by facilitating the transfer of information and cooperation of businesses. 

"From what we know, each and every person who has been in touch with us since day one is in the same situation they were in then, two weeks ago.

"We are not sure whether the Prime Minister's comments about which side of the criticism to take are directed at us having highlighted the concerns of our members.

"Again, I reiterate we are not commenting on the MFSA's need to take serious action and what was requested by the EU, but there is no excuse for the tremendous stress people are being subjected to, there are many innocent people and businesses that have been caught up in this and some risk closing as a result. 

"The GRTU expects greater transparency in the management of the situation concerning depositors, respect with regard to the information given and treatment of individuals and businesses.

"Businesses are not dispensable and cannot be treated as collateral damage."