A mega salary given to former MFSA CEO Joe Cuschieri led the Central Bank to demand better pay for its senior staff, in what Finance Minister Clyde Caruana has euphemistically termed as a solution to an “anomaly”.
Cuschieri, who was part of former Prime Minister Joseph Muscat's inner circle, was parachuted into the newly-created CEO role at the financial regulator in 2018.
He was given a basic salary of €115,000, which made him one of the highest paid public officials.
Caruana told parliament on Monday that “anomalies” between the salaries of deputy governors at the Central Bank and chief officers at the MFSA had developed “in recent years”. The discrepancies were flagged to the Finance Ministry and Prime Minister in 2019 by the Central Bank, the minister said.
He said an evaluation of these “anomalies” was concluded at the beginning of 2020.
“It was agreed that these anomalies be remedied through a partial increase [in 2020], with financial parity with the salary of the chief officer of the MFSA achieved in 2021.”
Central Bank governor's pay rise
Caruana also confirmed in reply to a question by PN MP Therese Comodini Cachia that the Central Bank governor’s pay had been increased from €100,000 in 2020 to €115,000 this year.
Governor Edward Scicluna’s salary was topped up with a further “responsibility allowance of 20%, pushing his basic earnings up to €132,000.
This increase was given to maintain proportionality between the salary of a deputy governor and governor, Caruana said.
Scicluna resigned as Finance Minister last year, taking up the role as Central Bank governor in January.
Central Bank governor Edward Scicluna. Photo: Matthew MirabelliMFSA expenses shot up under Cuschieri
Last year, the financial regulator needed a €24.7 million grant from the government to remain in the black.
It has faced a significant drop in revenue since 2018, when the Malta Business Registry’s functions were hived off.
The MFSA’s 2019 accounts show its operating expenses shot up by 46 per cent to €35.2 million, as the authority continues to invest in boosting its supervisory capabilities.
Cuschieri resigned as MFSA CEO last year after Times of Malta revealed he had gone on an all-expenses paid trip to Las Vegas with murder suspect Yorgen Fenech.
MFSA chairman John Mamo told parliament last week that vJoseph Muscat had given his blessing for Cuschieri to draw an additional pay packet from the authority to cover his duties as an ex-officio member of the board.
The decision was later reversed by the Finance Ministry.