Bank of Valletta chairman Gordon Cordina has denied any conflict of interest over the provision of consultancy services to the Malta Gaming Authority.
He also refuted a possible link between his consultancy and the bank's apparent relaxation towards the gaming sector.
“There is no inherent conflict of interest between my role as non-executive chairperson at Bank of Valletta and pursuing my profession as an economist at E-Cubed Consultants Ltd. The undertaking of additional professional work by holders of non-executive board roles is a very typical arrangement, also in consideration of the fact that board roles are of a part-time nature and for a limited period of engagement,” he said when contacted on Wednesday.
Times of Malta sought Cordina’s comments after Fintelegram.com revealed how E-Cubed Consultants was receiving around €3,500 per month from the Malta Gaming Authority (MGA) for consultancy services.
The matter was flagged by independent candidate Arnold Cassola who questioned on Facebook whether this amounted to a conflict of interest.
According to Fintelegram, Cordina is a co-owner of E-Cubed Consultants Limited, holding 50% of shares while the rest of the company is held by Stephanie Vella, a governor of the Malta Financial Services Authority (MFSA).
Fintelegram published a bill sent by Cordina to the MGA, in which he and another E-Cubed consultant charged the authority €115 per hour for 27 hours of work.
“In line with the bank’s conflict of interest policy, I follow an approach whereby should any conflict arise in specific circumstances from professional work or other factors, I would make the necessary disclosures to the bank, and if needed, to the regulators, so that such conflict can be managed in line with policies and procedures,” Cordina said as he denied any conflict.
The arrangement whereby he continued working on his consultancies was disclosed to the regulators when he was appointed bank chairman in 2020.
“This arrangement has been disclosed to the regulators upon my appointment as chair of the bank and has been approved. Conflict of interest is one of the main elements assessed by the regulators prior to approving individuals in key functions,” he told Times of Malta.
He said that despite “governance safeguards” in place to ensure proper conduct, he was “very conscious of the sensitivities which the role brings”, also because the chairman role is a government appointment.
“I, therefore, strive to ensure that my decision-making and behaviour are at all times dictated by objectivity and professional independence. In this, I am accountable to the regulators, to the board and to the collectivity of shareholders. My professional integrity and reputation depend on this,” he said.
He explained that E-Cubed Consultants Ltd had a number of public sector entities among its clients locally and abroad.
The article appears to link BOV’s relaxation towards the gaming sector with his consultancy to the MGA but Cordina shrugged this off, explaining that in a non-executive chairmanship position, he had no control over decisions taken by the bank with respect to particular sectors.