The man who led Malta’s financial regulator for two decades on Monday said that he was never privy to reports about Pilatus Bank, insisting he often only learned of developments “through the media”.

Joe Bannister claimed under oath that he had no visibility on the work of the Malta Financial Services Authority's supervisory council, as it was kept completely independent from his office as chairman of the regulator.

Testifying at a public inquiry into the assassination of journalist Daphne Caruana Galizia, Prof. Bannister insisted he had nothing to do with overseeing the work of licensed entities and suggested that the inquiry instead pose the questions to the MFSA’s director general.

The Caruana Galizia inquiry has been tasked with investigating events related to or leading up to the journalist's October 2017 assassination, as well as whether the state had caused a real risk to her life. 

Prof. Bannister's pleas of ignorance left the inquiry board visibly frustrated, and judge Michael Mallia made it clear he was not buying it.

“I’m sorry, but I don’t believe you,” he told the witness.

Prof. Bannister, who led the MFSA from its creation in 1999 until early 2018, insisted he knew nothing and had not been handed any reports by the supervisory council.

“Even if I did [ask for a report], they wouldn’t give it to me,” he said.

A frustrated inquiry

The exchange was one of several testy moments during Prof. Bannister’s 60-minute testimony.

At one stage, Judge Joseph Said Pullicino remarked how many witnesses seemed intent on passing the buck.

“We cannot be in a worse predicament... [but] they all say ‘no, it’s not me”, he said.

The three-person inquiry was sceptical of Prof. Bannister’s repeated assurances that the MFSA had done its job.

“You’re saying the buck did not stop with you. So what guarantee can you give us?”

Prof. Bannister answered that by saying he could assure them that people did their job, but that “I don’t know what they discovered”.

Questions about Pilatus Bank

The inquiry board was similarly frustrated when it tried to find out what Prof. Bannister knew about problems and allegations of impropriety at Pilatus Bank.

Prof. Bannister said that he had discussed the issue with Juanita Bencini from KPMG, who were the bank’s auditors, and that he was told that the FIAU had sent the bank a letter saying everything was in order.

“I was not told of any deficiencies,” he said, and he did not ask about any.

Joseph Muscat, who at the time was prime minister, never asked about the matter, he said in reply to questions.

The former MFSA boss’ miserable afternoon was compounded by his temporary failure to recall the name ‘Mario Felice’.

Mr Felice was an MFSA inspector who Daphne Caruana Galizia had written about in June 2017. Ms Caruana Galizia had claimed that Mr Felice had resigned after being ordered to carry out an on-site inspection of Pilatus Bank.

Prof. Bannister told the inquiry the name meant nothing to him, only to later recall him.

“Now I remember there was a Mario Felice at the MFSA,” he said.

Brexit consultant

Prof. Bannister told the inquiry that following his retirement he worked as a consultant to the prime minister on Brexit-related matters, but that he did so without payment.

He also confirmed what former Financial Intelligence Analysis Unit boss Manfred Galdes told the inquiry last week, saying that the FIAU was seriously understaffed and paid salaries that were too low to attract foreign talent.

Prof. Bannister said he had pushed for the FIAU to be integrated into the MFSA at one stage, but that nothing came of that idea. 

The retired regulator was not the only witness to appear before the inquiry on Monday. Prior to his testimony, former police commissioner Michael Cassar appeared before the inquiry board to clarify some points concerning his testimony two weeks ago. 

Mr Cassar's testimony on Monday was held entirely behind closed doors. 

The inquiry continues on Wednesday January 29, when former FIAU official Jonathan Ferris will testify.