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Press was offered whirlwind London trip ahead of BOV property fund fiasco
Valletta Fund Management offered three journalists all-expenses paid trip to London to property fund’s investment advisor’s offices.
7 September 2010, 12:00am
Matthew Vella
Matthew Vella
2 min read
Bank of Valletta’s fund management arm, Valletta Fund Management, had offered three journalists an all-expenses paid trip to the London offices of Insight Investment Management, the investment advisor of the beleaguered multi-manager property fund.
MaltaToday is informed the trip was cancelled after two journalists – PBS’s Reno Bugeja and Malta Independent on Sunday editor-in-chief Noel Grima – declined the offer. The other invitee was Times Business correspondent Joanna Ripard.
The offer was made back in July, just before an EGM held by Valletta Fund Management revealed the numerous questions surrounding the property fund, once valued in excess of €84 million, now valued at some €24 million due to the worsening state of its investments in the Belgravia group – where 41% of the fund had been poured.
No other members of the press were invited, suggesting that BOV was guided into getting on board the most compliant press possible.
But it turns out that the trip was cancelled when it became apparent that the journalists, aware of the worsening state of the fund, would not be allowed to be ‘massaged’ by the bank ahead of the public fallout on the fund.
BOV is being held responsible by 170 investors for the way its La Vallette Sicav plc’s multi-manager property fund, has been decimated, and for not being informed that the Belgravia Group – which ran three specific funds – had been placed under criminal investigation by Jersey police and the Jersey Financial Services Authority.
The financial services authority (MFSA) is also alerted to the possibility that a director of Bank of Valletta’s property fund could have had access to ‘price-sensitive’ information when he withdrew his shareholding.
The MFSA is aware of an abnormal level of redemptions – 14.7 million shares, valued at some €13.4 million or 16% of the fund – that were withdrawn, possibly by investors aware of the worsening state of the property fund after the Belgravia bust: maybe even directors and staff of Bank of Valletta and investment arms VFM and VFS, and perhaps even family relatives.
It is not being suggested that proof exists of this ‘smoking gun’ in the dealings of the property fund.
What the MFSA is looking into is when these withdrawals took place, and whether BOV was aware of ‘price-sensitive’ information that was not communicated to all the property fund’s clients before it suspended it.
Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...
owen sammut •
Now there is also evidence that BOV , our 'serious' financial institution that lacks Corporate Governance, mismanages risk and is also non-transparent-an institution in which the Government has a substantial shareholding- was trying to 'massage' journalists in order to avoid the vociferous criticism levelled against it at the Extraordinary General Meetings of the Fund. Serious journalists have of course declined this offer or shall we say the attempt to silence them .
Can the MFSA give us a time-frame please as to when it will finalise investigations, which all fall completely within its terms of remit, that deal with the following allegations ?
1) Possible 'Insider trading' by BOV officaials and misuse of 'price sensitive' information- allegations that if proven should carry a sentence of imprisonment
2)Breach of licence conditions of the fund such as the retailing of the fund to non professional investors and investing in a fund (Belgravia) that exceeded its level of gearing-a restriction stipulated in the fund's offering document.
3)Issue of false clean audit certificates by BOV to the shareholders of the fund on the Belgravia Fund.
4)The issue by BOV of false reports to the shareholders of the fund and the 'massaging' of such reports leading to a point where false information was provided to the shareholders of the fund.
5) Lack of honesty and transparency by BOV and VFM in communicating with the shareholders of the Fund.
A serious regulator (and not a puppet on a string as we have here in Malta) would have already finalised its investigations and communicated to the various of the Fund's shareholders who submitted their complaints, what it intends to do to sanction BOV and defaulting officials and seek redress on behalf of the shareholders.
MFSA- when are the shareholders of the Fund going to be informed about the outcome of your investigations please? You are being financed by the taxpayer's money and we demand an answer
Stefan Mifsud •
I have always said that te way banking has evolved during the years is nothing more then the authorities are giving these bankers a "Licence to thieve".
Examples of how banks have lobbied for their existant strength and influence into all our lives:
1. One hardly can do anything without having a bank account. Employers ask for it. Even social services are now turning to crediting your benefits to a bank account. In the next few years it would become compulsory to have a bank account.
2. If you have more then 10,000 Euros in cash you are declared as a money launderer. Can things become more ridiculous.
3. Many service companies make it practically impossible to pay in cash. So the only alternative is to pay through credit card, cheqye, etc. All requiring a bank account. Which is subject to approval.
The banks have had and will continue tohave a "Licence to thieve".
The ongoing financial crisis was brought about by none other then he banks. What did National Authorities, including the EU do. Sanction them, like you and I get sanctioned with imprisonment or a hefty fine when we break simple rules like parking in the wrong place or not sending NIL VAT returns. NO. These bankers are all above the law. They get bailed out with our money.
Further, as this ongoing financial crisis continues. Who is back into huge profits. The banks. All otehr companies are reeling but teh banks have already huge profits very similar to teh amounts they were making before the crisis.
So in conclusion. Nothing will come out of this with BOV. At some stage or anoter it will be shot down by GOvernment, MFSA or even the courts. You see, everybody, and I mean everybody now needs a bank. And I mean everybody.
