New MFSA boss placed on an indefinite €175,000-a-year package

The Malta Financial Services Authority CEO Kenneth Farrugia, who was handpicked for the job without a public call has been placed on an indefinite contract of around €175,000 a year, The Shift can report.

Documents obtained by The Shift following a freedom of information request show that, unlike his predecessors, the new MFSA boss was not given a fixed-term three-year contract, as is normally the case for such high-profile public positions, but was instead placed on an indefinite contract.

Farrugia’s contract, which makes him one of the highest-paid public sector employees, specifies that if his employment at the Authority is terminated for whatever reason, he will still be paid the full €175,000 package for at least a year.

His appointment was made by the MFSA’s Board of Governors, all of whom are appointed directly by the government.

Justifying Farrugia’s handpicking, the MFSA said it had not issued a public call due to the urgency of the appointment.

The MFSA, however, has known since at least the summer of 2022 of the need to fill in the vacancy following the resignation of former CEO Joseph Gavin.

According to his contract of engagement signed by MFSA Chairman Jesmond Gatt, Farrugia is to be paid a basic annual salary of €115,000, which will increase by €4,500 a year up to a maximum of €128,500 a year.

Farrugia has also been given a 25 per cent per annum “monitoring allowance”, reaching over €30,000 a year, as well as an additional €15,000 annual “cash allowance”.

Before being handpicked for the MFSA, Farrugia spent years heading the Financial Intelligence Analysis Unit when Malta was slapped with a Financial Action Task Force greylisting.

It was only after Malta’s greylisting and international pressure that the FIAU, together with other institutions, pulled up its socks to salvage the situation.

The FIAU is currently also facing multiple negative court rulings due to the unconstitutional way it has imposed sanctions and fines on financial services providers found breaching anti-money laundering rules. The FIAU’s ways and means of meting out fines have been declared by the court as illegal and in contravention of human rights.

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wenzu
wenzu
1 year ago

Good to have friends, isn’t it.

Lawrence Attard
Lawrence Attard
1 year ago
Reply to  wenzu

Actually he was known as a Nationalist during my days … probably another turncoat.

Remigio
Remigio
1 year ago

Qas jafu jisthu!! No limits at all. Majjalata ikbar minn ohra.

Joseph
Joseph
1 year ago
Reply to  Remigio

Jisthu. Ghadhekk qas taf kemm jroxxu flus fl’eluf biex jattiraw il-voti.

makjavel
makjavel
1 year ago

Another Fraudulent appointment?
Is appointing a person in a tax paid position and is supposed to be chosen after a public call , and is instead appointed by handpicking a person, a fraud? Should this be appealed in court by persons who are qualified for the job and therefore have a personal interest in the case?

Jimmy
1 year ago

Well well …no surprise. Had read this same dude betrayed his own boss to become himself the replacement. People of such kind have no respect to self, to others or the country.

Nicholas Borg
Nicholas Borg
1 year ago

How on earth does the government justify this or even afford it????

Joseph
Joseph
1 year ago

Ghadhom jithanzru. Why! Where is the rule of law. Jiddispjacini nghid li L’illiterati u l’idjoti jmorru l-Knisja jisimghu il-kelma t’Alla min banda jidhol u min l”ohra johrog. Ghal vizju. Bis-sahha tal-lapes gabu pajjizna pajjiz komunista. Jekk ma tkunx fidil lejhom ma takwistax. Pajjizi dittaturi hekk jahdmu. Nies ta’ integrita ma taqaghlhonx f’mohhom din li min hu korrott mohhu fil-flus jrid jibqa fil-poter ghax il-ligi hija taht saqajhom.

TB fair
TB fair
1 year ago

to be fair I wouldn’t want that job for even 1 million a year

Anne R. Key
Anne R. Key
1 year ago

And yet the government is hell bent in offering peanuts to employees whilst negotiating collective agreements – ISTHU !!!!!!!!!!!

Matthew Joslin
Matthew Joslin
1 year ago

Is there anything in his contract of engagement that allows him to ‘Self-Suspend’ himself in awkward situations ?
A reply for clarity is solicited.

carlos
carlos
1 year ago

Enlarge the pig sty as pigs are the family is growing and it will even grow bigger as elections near – kulhadd jithanzer barra l-haddiem.

karmenu Psaila
karmenu Psaila
1 year ago

And why are these guys paid this much , considering the other salaries in this country so this man earns more than double of how much the Prime Minister earns ,
Does this make any sense ?

Albert Beliard
Albert Beliard
1 year ago

New MFSA boss placed on an indefinite €175,000-a-year package

NOT FOR LONG – HE WILL BE ‘TERMINATED’ HAVING WORKED FOR THE FIAU CRIMINAL UNIT WHICH GAVE THE DEFUNCT PILATUS BANK A ‘CLEAN BILL OF HEALTH’.

Last edited 1 year ago by Albert Beliard
Adrian
1 year ago

10 billion National Debt!

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