Bank chairman resignation raised in Brindisi controversy

Opposition leader Alfred Sant wondered yesterday whether there was a link between the resignation of Bank of Valletta chairman Joseph F. X. Zahra and the Brindisi Freeport issue.

It was worrying to note that while Mr Zahra said he was resigning for personal reasons he let it be known the decision was taken with great pain, Dr Sant said.

Investments Minister Austin Gatt on the other hand called upon Dr Sant to retract his allegation about the Brindisi Freeport "investment" rather than try and blame the media for misreporting him.

Last Sunday, Dr Sant attacked the government for "investing another Lm4 million in the Brindisi Freeport last August, knowing well that this was a botched project", Dr Gatt said.

The two sides are at loggerheads over the Italian Freeport, with Dr Sant accusing the government of squandering Lm4 million by investing in shares in a failed project.

In a letter sent by Dr Gatt to the Bank of Valletta's chief executive officer, the minister said the money was for a loan granted by the bank to Mimcol in August.

Through this loan, the government intended transferring debts it had with Italian banks to BoV.