Edward Scicluna will not step down as Central Bank governor despite trial

Malta’s former finance minister Edward Scicluna, who will go on trial for fraudulent gain in connection with the Vitals hospitals PPP, has insisted he will not step down from his role of Central Bank governor until he is found guilty of what he is being accused of.

Scicluna will stand trial for alleged dereliction of his duty as minister on suspicion of having enabled what eventually turned out to be a fraudulent privatisation of three state hospitals.

But he told The Times on Thursday morning that he would not step down from Central Bank governor: “I will abide by the EU treaties. We [the Central Bank] is an independent institution. We have our own rules,” he said.

Scicluna has insisted that neither the government nor the opposition can compel him to resign.

Scicluna’s role is governed by the EU treaty and European Central Bank statutes, which protect the autonomy of the Central Bank Governor.

“The EU rules are clear for every European governor. A governor is asked to resign only if found guilty of a crime. With all due respect, I will not give in to the pressure by Bernard Grech,” Scicluna said, referring to the Opposition leader.

Grech has called on Prime Minister Robert Abela to ensure Scicluna's removal from the Central Bank.

Appointed on 1 January, 2021, Scicluna’s five-year term as Governor of the Central Bank of Malta also includes membership in the Governing Council of the European Central Bank.

He also serves as deputy chairperson of the Malta Financial Services Authority’s board of governors, a role which remains at the discretion of the prime minister, who can relieve a board member on grounds of inability to perform duties due to infirmity or misbehaviour.ħ

In a letter to MFSA chairman Jesmond Gatt, the independent politician Arnold Cassola said the decree for Scicluna to stand trial had shed red light on at least four of the five core values of MFSA, referring to the mission statement that lists integrity, dependability, independence, trustworthiness, and excellence as its chief aims.

“I am therefore asking you to immediately relieve Prof. Edward Scicluna of any duties pertaining to the Board of Governors of the MFSA so that he is put in the best position to defend himself from the serious accusations pertaining to the Vitals/Steward case and prove to one and all that he is a trustworthy and independent man of integrity on whom one can blindfoldedly depend. Looking forward to speedy action on your part.”