Issue link: https://maltatoday.uberflip.com/i/955503
maltatoday SUNDAY 18 MARCH 2018 News 5 YANNICK PACE THE Nationalist and Democratic parties have called for greater transparency from the govern- ment, after it was announced that the National Development and Social Fund had agreed to buy 49% of the shares in Lombard Bank. The fund, which administers proceeds from the Individual In- vestor Programme, said it would be buying out the Cypriot Laiki bank, subject to the approval of the Malta Financial Services Au- thority in terms of the Banking Act. "This acquisition is by no means a strategic investment but intend- ed solely to facilitate the exit of the Cypriot major shareholder of Lombard Bank Malta p.l.c., one of Malta's established and respected banks and also the major share- holder of MaltaPost p.l.c. Malta's leading postal services operator," the fund, whose chairman is David G. Curmi, the CEO of Middlesea Insurance, said. "It is a measure taken by the Board of Governors of the NDSF in terms of its founding regula- tions to support business and en- terprise, in this case an important operator in the domestic banking sector." The NSDF said it did not in- tend to increase its holding in the bank, nor "act in concert with any other shareholders". "On the contrary, the NDSF will seek to reduce its proposed shareholding in the Bank in an orderly manner, at the right mar- ket conditions and by agreement with the necessary authorities… the NDSF has no intention of exerting influence on the opera- tions of the Bank." Earlier on Friday, the insurance specialist Global Capital – which at over 5% is the second largest shareholder in Lombard Bank – confirmed that it would be keeping its offer to buy the bank at a price of €8 million over and above the NSDF offer. An initial statement its offer was being supported by York Capital, a private equity fund with over €25 billion under man- agement, was later clarified by stating that York Capital was not directly involved in the bid. The Democratic Party has now written to Prime Minister Joseph Muscat requesting a ministerial statement on the acquisition of the bank's shares. "In light of the acquisition of the shares by using IIP funds, and without these shares having ever been placed on the Stock Exchange, we are asking you to give an explanation to the House of Representatives through a ministerial statement," PD MPs Marlene Farrugia and Godfrey Farrugia said. Similarly, the PN requested clarification on various aspects of the deal. It said the Opposition had already expressed concerns when IIP funds were used to buy shares in Bank of Valletta last December. "At the time the Opposition had said that the acquisition went against the provisions of the law that was approved by parlia- ment," it said. "These provisions included 12 objectives that the funds can be used for." The PN said the objectives ranged from social and educa- tional projects, as well as projects increasing employment in the country, adding that none of the objectives included the acquisi- tion of shares in banks. It said that a clarification was required from the government on the legal basis for the acquisi- tion, whether it was in fact a tem- porary one, and what method the government would be using to dispose of the shares. In a reaction, the government said it agreed with the "inde- pendent" decision taken by the NDSF. "The government too believes there should be transparency and also believes there are ways for this to happen while respecting the Fund's integrity and independ- ence, where decisions are taken by professionals without government interference," read a government statement. It noted that the Nationalist Par- ty was still against the IIP scheme. ypace@mediatoday.com.mt also warning that it will intrude on a significant view. The ERA also deemed this partly garigue area in- appropriate for a billboard. Dawret il-Mellieha was already designated for the erection of bill- boards in the draft regulations is- sued in April last year. The Superintendence has ex- pressed concern on one of sev- eral applications presented by the Nationalist Party, proposed along Mdina Road "within the Area of High Landscape Value devised to protect views of the Chadwick Lakes and a part of Mdina". The ERA has not objected noting that the billboard will have no envi- ronmental impacts. But Transport Malta objected to the billboard as it is within a 50m distance from a junction. jdebono@mediatoday.com.mt Approved and issued by HSBC Bank Malta p.l.c. 116 Archbishop Street, Valletta VLT 1444 which is regulated by the Malta Financial Services Authority. Licensed to conduct investment services business by the Malta Financial Services Authority. www.hsbc.com.mt/fusion (Ref No.100756 – 3/18) Because you're balancing the books and the holiday fund, you can access your business and personal banking in one place Stay in control of your life's work with Lifeview by HSBC Fusion. The combined service for your business and personal life. Find out more at hsbc.com.mt/fusion Together we thrive Opposition wants transparency on Lombard stake