Silence on MFSA’s interest in moving into new €8 million building

The Malta Financial Services Authority (MFSA) is in the process of expanding its premises and is reportedly looking at acquiring an adjacent building to its offices in Attard for €8 million.

The authority is considering moving into the Tal-Lira buildings next to its current premises, which has been valued at €8 million despite the fact that architects had valuated the building at €4 million. The Tal-Lira building has been earmarked to house the authority's international tax department.

Contacted by MaltaToday, MFSA chairman Joseph Bannister said that the authority is "in expansion". However, he refused to confirm this since he is bound by confidentiality, though he said that: "The MFSA has no intention of directly purchasing the building next door".

He went on to invite MaltaToday to get in touch with other governmental authorities that are responsible for purchasing land and buildings for governmental authorities.

After getting in touch with the Finance Ministry and the Ministry for Fair Competition, Small Business and Consumers, MaltaToday was referred to the Central Bank of Malta.

A Finance Ministry spokesperson said that he is not aware of any ongoing negotiations which involve the ministry and referred MaltaToday to the Central Bank since such a deal may be a matter related to the Central Bank.

In comments to MaltaToday, a Central Bank spokesperson said: "At the moment we have no comments to make. Things are still unfolding and at this point in time we have no comments to make."

Recently, the MFSA has hit the headlines for its involvement in the Bank Of Valletta dispute with investors who lost savings they had poured in investments with the banks in Lehman perpetual securities, amongst other securities.

Finco Treasury Management director Paul Bonello called on the MFSA to initiate legal action against BOV, hitting out at the sluggishness in acting over the matter.

"The MFSA has a lot of competence but it lacks the courage to act upon words. I have no problem in saying that the MFSA has no character," Bonello said.

Bonello also revealed that MEP and PN deputy leader candidate Simon Busuttil had sent Prime Minister Lawrence Gonzi a strongly-worded letter saying that he found it difficult to understand why the MFSA did not make use of its full powers to rectify damages suffered by clients following mistakes committed by enterprises.

In another turn of events, Labour MP Evarist Bartolo called on the chairman of the financial regulator, Joseph Bannister, to categorically deny he is a director of a Cayman Islands company, which he claims has gone undeclared in the MFSA's annual report.

Bannister has denied any conflict of interest, referring to the fact that he did not declare this business interest in the MFSA's annual report.

Reportedly, Bannister has been a director of Kairos Fund Limited, an umbrella collective investment fund with a big number of funds, since 2005, as announced by an Irish Stock Exchange announcement of 15 June 2005.