Issue link: https://maltatoday.uberflip.com/i/897139
maltatoday SUNDAY 5 NOVEMBER 2017 12 News MATTHEW AGIUS FAR from being caught up in a "menacing web of intrigue and suspicious transactions," the Vati- can Bank had found itself in a hole that it had dug itself, Malta-based Futura Funds SICAV has claimed. Earlier this year, the Istituto per le Opere di Religion (IOR), other- wise known as the Vatican Bank, filed a multi-million euro case for damages, claiming that a com- mittee it set up to invest €30 mil- lion of its cash was misled by the directors of Futura Investment Management – Alberto Matta and Girolamo Stabile – and their af- filiated company in Luxembourg, Optimum Management. In 2013, the IOR had set up the 'Ad Maiora' committee to con- sult on how to invest €30 million through the offices of Optimum Management. Central to the is- sue is an alleged ruse, utilizing the Vatican's money to buy a company that owns the Exchange Palace in Budapest, by taking over a non- performing loan it had been issued by a Hungarian bank. It had also set up a sub fund called 'Ad Maiora' and had been encouraged to invest in Futura's Kappa Fund Budapest project. This was advertised as needing a €41 million capital commitment by Ad Maiora. While the IOR believed its mon- ey was going to be used to take over the loan directly, it found out that Futura Investment Manage- ment made an undeclared profit of €11.6 million, ostensibly after mis- leading the Vatican as to the price of the Hungarian deal. IOR then filed a claim for €17 million euros in damages against Futura. On Thursday, lawyers acting on behalf of Futura Funds SICAV p.l.c. filed a counter-claim for €24 million it was owed under a sepa- rate agreement. It asked the court to declare IOR as its debtor in the amount of €24 million, represent- ing the Vatican Bank's residual capital obligations to the Kappa Fund, and to order the repayment of the debt. It also asked the court to liquidate damages caused by "IOR's failure to honour its capital obligations" which had resulted in "significant damages" to Futura. Futura Funds was a collective in- vestment scheme, holding a num- ber of sub funds, which includes the Kappa fund, argued its lawyers. Kappa's aim is "to invest in the real estate markets and to actively manage its assets in order to seek to realise long term compounded returns in excess of those available through conventional investments in public markets by making in- vestments based on the principle of risk spreading by an appropriate level of risk and asset diversifica- tion over time." Presently the only assets belong- ing to Kappa are historical build- ings in Budapest that are held by a Hungarian SPV, that were in- tended to be redeveloped into a "mixed-use project that was going to deliver considerable profits," it claimed. But Futura Funds is arguing that there was no juridical relationship at the time that the transactions in questions took place. The Vatican Bank's role had been to provide for the custody and the administra- tion of property transferred or en- trusted to the Institute and intend- ed for religious works or charity." The redemption of the Ad Maio- ra fund was only requested at a later stage, to allow it to invest it all in Kappa Fund, claims the Malta-based investment vehicle. It insisted that no damages had been suffered, arguing that in any case these would have been set off against the amounts owed to Futura. Effectively any decision by the Investment Committee was ex- clusively taken by the IOR. Futura had no hand in the setup or deci - sion making process of Ad Maiora, protested Futura. The Investment Committee had no relationship with the defend- ant, but had been chosen by the IOR which had then suggested in- vesting in Kappa. "Not only was IOR not caught in a clandestine web of intrigue and shady transactions" but it had made a solid, profitable invest- ment - had it not failed to abide by its obligations," argued Futura in court documents filed on Thurs- day. The defendants had "involun- tarily ended up suffering because they had been caught between two factions in the IOR and between management regimes at the IOR," they said. Futura Funds said it was "caught by complete surprise" by the filing of court proceedings. "In fact, up till a few weeks before the filing of this case, discussions between the parties had been at an advanced stage and a draft compromise agreement had already been cir- culated." "All of a sudden, the applicants chose to pull out of the discussion and announced at a formal press conference at the Vatican, that it was going to begin court proceed- ings. This without even sending a simple official notice as per ethical and legal practises. In the light of this irregular attitude, the defend- ant humbly requests that irrespec- tive of the outcome of these pro- ceedings, the applicants be made to cover the costs of the case." Vatican woes its own fault, says Maltese company in multi-million euro lawsuit KUNSILL LOKALI L-ISLA Laqgħa dwar Bye-laws Ai termini ta' l-Artikolu 35(1) ta' l-Att Dwar il-Kunsilli Lokali (Kap. 363), il-Kunsill Lokali ta' L-ISLA jgħarraf illi fis-seduta tal-Kunsill Lokali li jmiss li se ssir 21.11.2017, il-Kunsill Lokali se jkun qiegħed jiddiskuti l-bye-law li ġejja: LJĞͲ>ĂǁƐƚĂůͲϮϬϭϲĚǁĂƌKarrijiet u Oġġetti Oħra ta' Ingombru ĨŝůͲ>ŽŬĂůŝƚăƚĂůͲ/ƐůĂ;<ƵŶƐŝůů>ŽŬĂůŝ/ƐůĂͿ Il-pubbliku qiegħed jigi infurmat illi kopja tal-imsemmija bye-law se tkun disponibbli mill-uffiċju amministrattiv tal-Kunsill lokali sa nhar L- Erbgha 22 ta' Novembru 2017 . 27.10.2017 ( Data ta' Pubblikazzjoni ) ISLA LOCAL COUNCIL Bye-laws Meeting In accordance with Article 35(1) of the Local Council Act (Cap. 363), the Isla Local Council notifies that during its next Council meeting, scheduled for 21.11.2017, it shall be discussing the following bye-law: dƌĂŝůĞƌƐĂŶĚKƚŚĞƌŶĐƵŵďĞƌŝŶŐKďũĞĐƚƐŝŶƚŚĞůŽĐĂůŝƚLJŽĨ/ƐůĂ ;/ƐůĂ>ŽĐĂůŽƵŶĐŝůͿLJĞͲ>ĂǁƐ͕ϮϬϭϲ The general public is being informed that a copy of the mentioned bye- law will be made available at the Local Council's until 22.11.2017 . 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