BOV: No evidence on MP’s allegations of lending malpratice

BOV’s Internal Audit Department has issued an interim report on its investigations so far on the allegations of lending malpractices made by Nationalist MP Kristy Debono in Parliament in January 2016.

“The interim report has, so far and on the information available, found no evidence that could lead to the conclusion that the allegations made are founded,” BOV said in a statement.

“The Board of Directors discussed the Internal Audit interim report on 5 April 2016 and decided to forward a copy of the same report to the local and foreign supervisors as well as to the bank’s external auditors for their perusal. In the meantime, the Board highlights the fact that the external auditors’ statutory opinion on the financial statements for the year ended 30 September 2015 was not qualified in any respect.”

Bank of Valletta asked internal audit unit to investigate allegations made by a Nationalist MP that the bank was issuing loans to untrustworthy individuals and companies with bad credit, saying the allegations were serious.

Interference in internal operations at Bank of Valletta has resulted in the bank issuing loans to uncreditworthy people and companies, Opposition MP Kristy Debono warned in the House of Representatives.

“I have heard several reports on people ringing up BOV officials to urge them to issue a loan to certain people and companies, despite the bank having internal doubts about their credit reputations,” she said during a parliamentary debate on a Bill that will set up a Central Credit Register at the Central Bank.

“I am not accusing the finance minister of personally interfering in the bank’s operations,” she insisted. “However, it is clear that people in certain circles of power frequently urge BOV officials to issue loans to certain people or companies as quickly as possible- against the bank’s internal doubts about their creditworthiness, due to their current or previous financial problems with other banks.”

Her serious accusations were not referred to by finance minister Edward Scicluna in the first part of his winding-up speech, the second part of which has been postponed to Wednesday's plenary session due to time constraints.