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2 NEWS 3.9.2020 PRIME Minister Robert Abela has confirmed that the wage supplement and voucher schemes will be extended until the end of October. Abela made the announcement this morning when addressing members of the Chamber of Commerce in Valletta. e COVID-19 wage supplement scheme will run in its current form until the end of October, while the government-issued vouchers will re- main valid until the end of October, he said. Abela explained that more details on the governmnt's long-term COVID-19 economic strategy will be announced during the 2021 budget to take place in October. He said this will include re- visions to existing schemes and more measures to support businesses and households. "COVID-19 should not be a pretext for austerity measures," he explained, saying that newer measures will be put in place to boost the standard of living, especially targetting pensioners and those on lower incomes. Abela explained that the final deci- sion on the reopening of schools will be taken in accordance with "the sci- entific advice that our health authori- ties will give us." On the topic of Moneyval, Abela said a lot of hard work is being done behind the scenes, with progress being made thanks to targeted efforts to achieve specific goals. Rule of law and Malta's COVID-19 recovery strategy were among the sa- lient points brought up by Chamber President David Xuereb. Xuereb noted that, while key im- provements have been made in areas of good governance, Malta's reputa- tion in the global arena has left some companies struggling to expand in in- ternational markets. He went on to explain how econom- ic growth and quality of life should go hand in hand, bolstered by meaningful education and the adoption of better technology. Malta's strategy on reopening schools this month was also brought up by Xuereb, hoping that education can carry on normally once protocols have been agreed to. e media were invited to cover the introductory comments of the event, which continued behind closed doors. Wage subsidy and voucher validity extended until end of October MATTHEW VELLA BANK of Valletta has agreed to pay €26.5 million in a settlement with the Swedish pensions Agency to avoid fur- ther litigation on its role as custodian of Falcon Funds. Falcon Funds was a Swedish private pension run by a Maltese company, but whose investment decisions were viti- ated by backroom dealings with its in- vestment manager Temple Asset Man- agement. Over €247 million was lost, resulting in the shuttering of Temple in Malta, criminal action in Sweden against Tem- ple director John Farrell; a two-year ban from the MFSA on holding approved positions for Falcon directors Tonio Fenech, the former Nationalist finance minister, and Ian Zammit and Joseph Xuereb; further court action in Mal- ta from BOV against a host of entities involved in siphoning off cash from the pension fund; and the imprisonment of chief instigator and fraudster Max Ser- win in Sweden. e €35 million will be returned to Falcon Funds savers, the Swedish pen- sions agency said. "We worked to minimize the dam- age to pension savers and get back as much money as possible… Among oth- er things, negotiations have taken place and are still ongoing between the Swed- ish Pensions Agency and actors who do not have direct responsibility for the fraud," the agency said. e agency said the agreement was a success in efforts to give money back to savers who lost their cash. "ey in- crease confidence in the European fund regulations as the fund company's cus- todians and insurance companies now take some responsibility for the fraud being committed," said agency director Daniel Barr. In 2020, Bank of Valletta appointed UK risk and compliance veteran Rick Hunkin as CEO. In 2019, BOV was accused by the Swedish agency of delaying negotia- tions, with representative Henrik Borg saying the bank had first given the impression of "being very serious. It turned out to be just a delaying tactic, that is, a really nasty negotiating game." BOV coughs up €26.5m to end Swedish pensions headache Four years since €247 million was lost in Malta- run pension for Swedish savers, BOV picks up expensive bill to close Falcon Funds chapter

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