Veteran Labour MP and former minister Charles Mangion turned down an offer from the Prime Minster to be appointed chairman of Bank of Valletta, The Sunday Times of Malta is informed.
Sources say that Dr Mangion preferred to hang on to his seat in Parliament.
The offer was made following John Cassar White’s decision to step down as chairman after three years in the post. It was conditional on Mr Mangion vacating his seat in Parliament.
However, the Luqa notary preferred to stay on as MP and keep working in his busy notarial firm.
In offering him the role, the PM was also seeking the opportunity to co-opt a new MP to Parliament, preferably from Qormi to replace the President
When contacted, Dr Mangion refused to comment. Pressed to confirm that he had refused the post, Dr Mangion said: “I prefer not to pass any public comments.”
Top government sources have told this newspaper that in offering him the role, the Prime Minister was also seeking the opportunity to co-opt a new MP to Parliament, preferably from the Qormi district where Labour needs a vote-puller to replace the popular Marie-Louise Coleiro Preca, now President of the Republic.
Dr Mangion did not get re-elected in the last general election, unseated by his own nephew, 31 year-old Silvio Schembri.
However, a vacancy was then created when Mrs Coleiro Preca became president, and Dr Mangion achieved the seat due to a casual election.
Although not the majority shareholder in the bank, the government has the right to nominate the chairman and another director. In fact, the other director nominated by the government is Anita Mangion, Dr Mangion’s daughter-in-law.
Earlier this year, Dr Muscat publicly attacked Malta’s major banks for adopting what he called a very rigid approach to lending, accusing them of failing to help the economy grow.
Observers interpreted this as a direct reference to Bank of Valletta and the Prime Minister’s uneasiness with the bank’s conservative lending policy, driven by Mr Cassar White.
Mr Cassar White will be stepping down for what he has said are personal reasons.
The government has announced that accountant Deo Scerri is to replace him. Through his former audit firm, RSM, Mr Scerri used to audit the accounts of the Labour Party.