Issue link: https://maltatoday.uberflip.com/i/535515
6 maltatoday, WEDNESDAY, 1 JULY 2015 News HAVE YOUR SAY 4JHOVQBOEMPHPOUP.50CTFSWFSBOEIBWFZPVSTBZPO FWFSZUIJOHGSPNDVSSFOUBõBJSTUPMPDBMUSFOETXJUIUIF DIBODFUPXJOQSJ[FTJOPVSXFFLMZDPNQFUJUJPOT.50CTFSWFS JTZPVSDIBODFUPDPOUSJCVUFUPUIFGBTUQBDFEXPSMEPGUIF NFEJBBOEMFOEZPVSWPJDFUPUIFEJTDVTTJPO 7JTJUPCTFSWFSNBMUBUPEBZDPNNU PN calls on BOV to explain Michael Falzon's early retirement TIM DIACONO THE Nationalist Party has called on Bank of Valletta to explain why it had paid parlia- mentary secretary Michael Fal- zon a €260,000 early retirement package. "Early retirement packages are usually granted by businesses who want to cut their staff," shadow economy minister Clau- dio Grech told a press confer- ence. "Falzon's knowledge of banking and law is excellent and he certainly wasn't deadweight for the bank. The logical deci- sion would have been for BOV to grant Falzon unpaid leave for as long as he remains in Cabinet." He also questioned why a unique clause was inserted into Falzon's retirement pack- age that allows him to return to his former post at the bank if he leaves the Cabinet. He pointed out that the provision states that Falzon will have to return part of his retirement bonus if he does return to the bank. "This seems more like a bridge loan than an early retirement package," Grech said, while warning BOV's board of direc- tors that they risked damaging the bank 's reputation if they don't explain their decision to grant Falzon that retirement package. Opposition MP Kristy Debono argued that the clause that al- lows Falzon to return to his original post is hindering other people from taking on his old job. "It's either a termination ben- efit or it isn't," Debono said, ac- cusing Prime Minister Joseph Muscat of using Bank of Valletta for partisan means and citing a controversial €88 million state guarantee to cover a BOV loan to ElectroGas to build the new gas power station. Shadow justice minister Jason Azzopardi reiterated his plea to the government to sack Falzon for his involvement in the con- troversial expropriation of two quarters of a building in Old Mint Street from businessman Mark Gaffarena. "Every passing day is further proof of Muscat's weakness when faced with such blatant abuse that stinks of corruption," Azzopardi said, pointing out that Falzon had gone on holiday with Gaffarena, that Gaffarena had told Falzon that he wanted the government to expropriate his property, and that Falzon had signed the two expropria- tion deals. "Why doesn't Muscat want to take action against Falzon?" Az- zopardi asked. "His continuous refusal to sack him lends further weight to the hypothesis that Muscat himself could have been involved in this scandal." – the Prime Minister is responsible for the Lands Department. Gaffarena seeks court warrant to force Old Mint Street sale Defendants who were going to sell another section of the controversial Valletta property now have doubts on the good faith of the sale MATTHEW AGIUS MARCO Gaffarena, who was given €1.65 million in govern- ment compensation for the expropriation of his 50% own- ership of an Old Mint Street, Valletta building that houses government offices, has de- manded in court that he be sold another 25% of the same building. In a writ filed against Daphne Corrieri, Gaffarena exhibited a promise-of-sale agreement in his favour. But the defend- ants have now said they do not want to sign the contract. Gaffarena had bought his half of the building in two transactions, paying some €200,000 in all. The gov- ernment expropriated the two quarters Gaffarena had bought for €822,500 each. A government inquiry is being held into the matter. Gaffarena yesterday asked a court for a warrant of pro- hibitory injunction to prevent the vendor from withdraw- ing from the promise-of-sale agreement. For the defendant, lawyer Tanya Sciberras Camilleri ar- gued that the promise of sale was entered into a few months ago and expires in March 2016. The defendants said that since news broke of Gaffare- na's handsome compensation for the expropriation of his part of the property, the plain- tiff had demanded that they sign the contract. "We do not think it is pru- dent to sign a contract at this time due to the investigations and what-not," the lawyer said. She also said that there were doubts about the good faith in the proposed acquisition. "There is an internal investi- gation, two expropriations for 50% of the Old Mint Street property and last but not least, the fiscal issue of the true and fair value of the property." Mr Justice J.R. Micallef said he would decide on the matter in camera. Parliamentary secretary Michael Falzon – early retirement from Bank of Valletta Marco Gaffarena