BOV executive director steps down following Steward loan claims

Bank of Valletta Executive Director and Chief Risk officer Miguel Borg has reportedly stepped down from his post.

The Shift is reliably informed that Borg told staff at a meeting yesterday that he will no longer be the bank’s man in charge of vetting its multi-million loan facilities as of tomorrow.

BOV has not yet confirmed the resignation in answer to questions sent by The Shift yesterday.

When contacted, the bank’s chairman Gordon Cordina refused to confirm the resignation and explained that the bank would issue a statement.

Pressed to confirm the resignation, Cordina insisted that he was bound to abide by the protocol of the bank’s communications department.

“Further to your query yesterday, may we kindly inform you that the requirements for listed entities, matters which require market disclosure will be communicated through a company announcement made through the Malta Stock Exchange,” a spokesperson told The Shift in reply to questions.

The bank has not yet issued a company announcement on the Malta Stock Exchange concerning Borg’s stepping down.

Borg was promoted to the position of executive director in 2017, with a financial package of over €200,000 a year to cover the dual role of Chief Risk Officer and Executive Director.

Borg’s name hit the headlines last month in the wake of a court sentence that annulled the government’s multi-billion-euro contract with Steward Health Care for the management of three public hospitals.

On his watch, BOV approved a €36 million loan for Steward Health Care despite the allegedly shoddy due diligence undertaken before the loan’s approval.

Mark Camilleri, in hot water over his publication of the Yorgen Fenech -Rosianne Cutajar WhatsApp chats, accused Borg of being “Labour’s corrupt man at BOV” and of buckling under pressure to approve the multi-million-euro loan.

Through his lawyers, Borg dismissed the allegations and dubbed them “completely unfounded, malicious and based on false information”.

“The sanctioning and approval of such facilities was the responsibility of the Board Credit Committee, of which the Chief Risk Officer was not a voting member,” his lawyers said.

According to Borg’s lawyers, the bank commissioned an internal audit investigation into the allegations against him.

They said Borg “was informed that investigations undertaken by the Group Internal Auditor with respect to the facilities granted by the bank in favour of Steward Health Care excluded any wrongdoing on his part”.