BOV gives departing loans chief €468,000 golden handshake

Bank of Valletta’s former Chief Risk Officer Miguel Borg has been awarded almost half a million euro through an secret golden handshake agreement, according to the latest financial report by the bank.

Borg, 42, from Paola, was paid €468,363 upon his premature departure from the bank. Until last April, Borg was responsible for approving loans by the government-controlled financial institution.

He left just a few weeks after a court sentence described the government’s concession of Steward Healthcare as fraudulent and criticised the €36 million loan issued by BOV to the company.

The Bank Of Valletta report reveals that Borg was paid €265,000 as a final settlement and another €150,000 as an ex-gratia (one-time) payment, negotiated with the bank’s administrators.

These payments were in addition to his three-month salary of €43,233 between January and 8 April 2023, when he officially resigned.

Asked to explain why the bank treated Borg so generously when he resigned voluntarily, a spokesperson for Bank Of Valletta said: “The bank cannot comment on individual employees, past or present, other than the communication issued to the market from time to time through official channels and company announcements. In each case, the bank follows the requirements set out by regulation in this regard and by contracts of employment that determine the relationship between employer and employee.”

The bank did not reply to questions about whether it had issued such generous packages in other instances.

As the bank’s Chief Risk Officer, Borg was responsible for evaluating loan proposals, such as the one approved for Steward Healthcare, and carrying out all the necessary due diligence.

Despite the abysmal results of the hospitals’ foreign concessionaire, including failures to deliver on any part of the concession and apparent liquidity and investment problems, Bank Of Valletta still decided to lend  Steward €36 million. The government guaranteed the sum. 

Media reports described Borg as the government’s go-to contact at BOV regarding credit decisions.

Although Borg never explained the reason for his sudden departure, he distanced himself from the accusations.

According to Borg’s lawyers, “the sanctioning and approval of such facilities (by BOV to Steward) was the responsibility of the Board Credit Committee, of which the Chief Risk Officer (Borg) was not a voting member.”

Borg also said the bank commissioned an internal audit investigation into the allegations against him, and the internal auditor informed him that he had not found any evidence of wrongdoing.

Months before his resignation, Borg was appointed to the board of directors of Malta Strategic Partnership Projects Ltd, better known as Projects Malta, which falls under Prime Minister Robert Abela’s political remit.

                           

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23 Comments
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Lawrence Mifsud
Lawrence Mifsud
1 month ago

No matter what he did or did not do,,,,it’s a hell of a lot!

Marjo
Marjo
29 days ago

U dawn il-flus qed ihallsuhom il-klijenti tal-BOV biex wisq probabbli huma jiehdu kakka imghax!

Steve
Steve
1 month ago

I am sure the shareholders are thrilled with this payment

Bamboccu
Bamboccu
1 month ago

Tajjeb ukoll.

Rosabelle Pavia
Rosabelle Pavia
29 days ago
Reply to  Bamboccu

All are equal but some are more equal than others….

saviour mamo
saviour mamo
1 month ago

The BOV is Labour’s piggy bank. They have easy access to money.

Richard Leyshon
Richard Leyshon
1 month ago

The trough just keeps getting deeper!

Steve
Steve
1 month ago

WHY? Why?!

Joseph
Joseph
1 month ago

BOV seems to be full of shady characters or incompetent ones. And at the end of the day it is always the shareholders that pay the bill

Nosy parker
1 month ago
Reply to  Joseph

No use grumbling just do not use bov there are other banks

Mahmuga
Mahmuga
1 month ago
Reply to  Nosy parker

I closed my BOV accounts after 20 yrs as a loyal platinum customer.

George Mangion
George Mangion
1 month ago
Reply to  Joseph

Do you remember how many years shareholders were deprived of a dividend? THIS WAS BLAMED ON THE ORDERS FROM ECB TO BOV TO STRENTHEN ITS BASE AND DUE TO DROP IN BUSINESS DURING COVID.

Rosabelle Pavia
Rosabelle Pavia
29 days ago
Reply to  Joseph

Shareholders and us poor citizens with our taxes!!!

L. Cassola
L. Cassola
29 days ago
Reply to  Joseph

Not shady and incompetent but political motivated people!

Reality
Reality
1 month ago

Most probably, an iced bun for services rendered to this corrupt skuzi gvern.

joseph
joseph
1 month ago

Incredible and surreal! What about other Labour leaning bank officials who are still working with BOV? Will they receive the same financial treatment when they retire?

Mike Gatt
Mike Gatt
28 days ago
Reply to  joseph

They have now set the bar!
There must be a considerable amount of filth to be hidden given the payout.
I sure a criminal investigation could get to the bottom of it, but they are all in.
So very unlikely.
I worked for my previous boss for 25 years, I got a watch, at BOV I would have got close to 45 million at this rate.
I’m applying for a BOV job right now.

Jonathan Bianco
Jonathan Bianco
1 month ago

It’s obviously silence money. Even his salary for 3 months is outrageous for a local bank. To be honest, this report would be investigated elsewhere, here it will simply pass and be forgotten. Shareholders should take action immediately.

ALAN BUTTIGIEG
ALAN BUTTIGIEG
29 days ago

” KULHADD JITHANZER”

Paul Borg
Paul Borg
29 days ago

The article provides a very good reason not to buy BOV shares or any of their products.
The Govt is the de facto meddler in chief and can do exactly as it pleases with your money.

alfred zammit
alfred zammit
28 days ago

hemm ministru li ukol ha xihaga simili, insejtu ???????? ta gewwa kolla baqqaw igawdu ghaliex tajd ?

Brian Borg
Brian Borg
23 days ago

So now his post is vacant. Can I have it? I will vote Labour, promise!

wenzu
wenzu
15 days ago

THIS is why all my savings are rapidly leaving BOV.

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