Regulator rejects BOV’s nomination for top risk post

Bank of Valletta has abandoned its proposed appointment of Roderick Bartolo as Chief Risk Officer after regulators did not approve the nomination, The Shift can confirm.

The bank has declined to explain why the appointment will not proceed or identify who currently heads its risk management function.

Bartolo was announced as Designate Chief Risk Officer last June, subject to regulatory approval.

In its latest announcement, the bank admitted that the application “shall not be pursued further”, without explaining why.

Asked by The Shift why the ECB had not approved the nomination and who was occupying the role, a spokesperson repeated the announcement without answering either question.

The spokesperson said interim governance arrangements remained in place pending a new appointment and regulatory approval. The bank also said there were no matters concerning Bartolo requiring disclosure under the Capital Markets Rules and that he would continue supporting specialised projects.

Chief executive Kenneth Farrugia addressed the development in a message to all staff yesterday, reiterating the bank’s position.

Despite emphasising transparency and open communication, the message neither explained the abandoned appointment nor identified the interim leadership.

The CRO holds one of a bank’s most important senior executive positions, overseeing the framework for identifying, assessing and monitoring material risks and helping ensure they remain within board-approved limits.

BOV described Bartolo as a risk, finance and technology professional with more than 14 years’ experience. Already advising the bank on balance sheet optimisation, he previously held senior analytics responsibilities at MeDirect Bank Malta and led the data science function at betting operator Tipico.

The proposed appointment followed Danielle Grima’s departure.

She became acting CRO in April 2023, with regulatory approval announced that November. BOV announced that her contract, which expired in July, was not renewed by mutual agreement.

Grima succeeded Miguel Borg, whose sudden departure followed controversy over BOV’s €36 million lending to Steward Healthcare.

Borg denied allegations concerning his role, saying approval rested with the Board Credit Committee, where he was not a voting member. He said an internal investigation found no wrongdoing on his part.

BOV confirmed his resignation effective in April 2023. The Shift subsequently reported substantial departure payments, including a €265,000 final settlement and a €150,000 ex-gratia payment.

He later became chief executive of Malta Government Venture Capital, on a package exceeding €100,000 annually.

With Bartolo’s nomination abandoned, BOV has yet to publicly identify its interim risk leadership or provide a timetable for filling the post.