BOV silent on vetting of rejected Labour-linked risk chief nominee

Bank of Valletta has declined to explain what checks and due diligence it conducted before nominating Roderick Bartolo as Chief Risk Officer, following questions about his links to Labour campaign work and government contracts through his private business interests.

The bank also left unanswered a question about whether anyone outside the bank, including the government, had directed the nomination and provided no details of Bartolo’s continuing work for BOV.

The Shift reported earlier this month that regulators had not approved his nomination. BOV announced on 9 October that the proposed application would not be pursued further, without explaining why.

Bartolo had been named CRO-Designate in June, subject to regulatory approval.

Asked what due diligence preceded his selection, whether the bank had followed outside instructions and what relationship it retained with him, BOV referred The Shift to its previous company announcement.

“At this point, there is nothing further that the Bank would like to add beyond the information already disclosed publicly,” the spokesperson said.

The bank reiterated that no matters concerning Bartolo required disclosure under the Capital Markets Rules and that it looked forward to his continued support on specialised projects and initiatives.

It did not identify those projects, explain his contractual arrangements or disclose his remuneration.

The questions followed further information received by The Shift concerning Bartolo’s interest in Webee, a web development business previously reported to have worked for Labour and received a raft of government direct orders.

In May 2020, The Shift reported that Webee, identified as owned by Roderick Bartolo, had received €225,000 in direct orders from the Office of the Prime Minister during 2017-2019.

That investigation reported that Bartolo had worked on Labour’s IT marketing and website image during the 2013 and 2017 general elections.

A separate investigation in June 2023 reported that Webee received €46,610 to promote the government’s Budget 2023 messages on social media.

The company has since changed its name to Born Digital and remains one of the Labour administration’s favoured suppliers, mostly through direct orders.

BOV did not address the business interests or previous reporting raised in the questions. Its response provides no explanation for the regulatory outcome.

The bank said its priority was identifying and appointing a new CRO in line with regulatory requirements. Malta’s largest bank has so far made no announcement of a new appointment.

It maintained that transitional arrangements ensured continuity and that governance structures protected the independence, effectiveness and oversight of its risk management function.

It did not identify who currently leads that function.

The CRO oversees the bank’s framework for identifying and monitoring material risks. Bartolo’s proposed appointment followed Danielle Grima’s departure after her contract was not renewed by mutual agreement.