Steward’s €36 million lender back on €100,000 government job

Bank of Valletta’s former Chief Risk Officer who resigned soon after the court declared the hospitals’ deal fraudulent, is now on the taxpayer’s payroll, cashing in more than €100,000 a year.

According to his contract, obtained through a Freedom of Information request, Miguel Borg was given a three-year contract as CEO of a new government entity – Malta Government Venture Capital Ltd, which falls under Economy Minister Silvio Schembri.

The contract, signed by Jesmond Gatt, MFSA Chairman and CEO of Malta Government Investments Ltd (MGI) last October, sets Borg’s basic salary at €70,000 a year and includes bonuses and allowances, boosting his package to over €100,000.

His contract states that if he is removed from his position, whether because of a change of minister, government or any other circumstance, he will still retain an indefinite full-time job at MGI as a senior consultant.

Borg, known among colleagues as a government loyalist and the go-to guy for a recommended BOV loan, suddenly stepped down in 2023 after it emerged that the bank had issued a controversial €36 million loan to Steward Health Care despite the company’s financial problems. The government had guaranteed the loan.

Borg refuted claims that he was responsible for such massive loan requests, saying the approval was made by the bank’s top brass. Yet he never explained why he suddenly left his position, for which he was paid more than €250,000 a year.

While BOV sources had told The Shift that Borg was ‘pushed aside,’ the government-controlled bank made his exit as easy as possible, giving him an unprecedented golden handshake worth almost half a million euro.

Borg, 44, from Paola, was soon given an alternative post. Just three months after his resignation, he was already on the payroll of MGI Ltd as a part-time consultant.

In January 2024, the same public entity gave him a full-time indefinite contract as a senior consultant on a €64,000 package. His assignment was to help the government set up a venture capital company.

Soon after the company’s registration, Borg was appointed its first CEO the same year.

In May 2024, Steward Health Care filed for bankruptcy in the US. So far, it is unclear how it will pay the €36 million loan to BOV. If it doesn’t, taxpayers will have to cover the loan.

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11 Comments
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S. Camilleri
S. Camilleri
2 days ago

Normal here. Fail, and you are rewarded.

Tony
Tony
2 days ago

Some people are born under a lucky star.

Gabi
Gabi
2 days ago

Issa jivvutalu Dan lil labour u kull min qed jithanzer mela jien.

Anne R. key
Anne R. key
2 days ago

Hey piggy piggy, oink oink!

David
David
2 days ago

Shameful. So corrupt country we have.

Mark
Mark
2 days ago

Mhux ta’ b’xejn li pajjiżna għandu dejn multibiljunarju u qed ikompli jiżdied bil-biljuni kull sena. Kompli tħanżer xbin.

Albert Mamo
Albert Mamo
2 days ago

THIS CORRUPTION STORY WE HAVE HEARD COUNTLESS TIMES. WE WILL NEVER GET JUSTICE UNTIL THIS CORRUPT LABOUR REGIME IS DUMPED OUT OF OFFICE!!!💯👍👍👍

Albert Beliard
Albert Beliard
2 days ago

In May 2024, Steward Health Care filed for bankruptcy in the US. So far, it is unclear how it will pay the €36 million loan to BOV. If it doesn’t, taxpayers will have to cover the loan.

As expected, there are no worries/concerns who or how the €36 million loan will be paid back, despite being guaranteed by the bank and government, because the loan to SHC is from ill-gotten funds. Unfortunately, BOV is involved in fraud and criminal money laundering while Borg is smiling and being generously rewarded by playing along with the high risk game and keeping silent.

The FCID have failed miserably to investigate BOV and the fraudulent hospitals deal which will become a very big and serious ‘burden’ on the lawless state which being run by a mob of crooks.

Money never sleeps, and jail always remains open for criminals.

Paul Berman
Paul Berman
1 day ago

To be renamed Malta Government Adventure Capital Ltd

Joseph Tabone Adami
Joseph Tabone Adami
7 hours ago

“If he is removed from his position whether because of a change of Minister, Government or any other circumstance, he will still retain an indefinite full-time job as a Senior Consultant.”

Makes one think of a modern-day Unsinkable Molly Brown!

Peter Mifsud
Peter Mifsud
12 minutes ago

Why??? I would expect that anyone tainted by scandal / pending court cases /PEP etc would automatically be excluded. Here it seems, the opposite applies!! Serves us right collectively, we got the government we deserve and I suspect they will reign supreme for quite some time!!

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