National Bank Saga Part 10 • February 8 2004

National Bank shareholders file Constitutional protest against BOV

Matthew Vella

Thirty years following the dubious takeover of the National Bank of Malta, the shareholders association of the former bank has filed a judicial protest in the Constitutional Court against the Prime Minister, the Minister of Finance and Economic Affairs, the Attorney General and Bank of Valletta plc.
Marcus Marshall and Jeremy Cassar Torregiani, representatives of the association, are seeking compensation for the takeover of the National Bank of Malta which was later turned into Bank of Valletta and for property which was illegally transferred to BOV, back in January 1974.
The National Bank saga has been the focus of MaltaToday’s special report into the dubious dealings which occurred within the office of Prime Minister Dom Mintoff, who allegedly threatened the bank’s shareholders to sign away their shares to the government when the bank encountered a run on its cash reserves in December 1973.
Since 1976, the shareholders have instituted three cases against the Prime Minister, which are still pending to this day.
In their latest judicial protest, filed in the First Hall of the Civil Court, the association claims the National Bank of Malta was illegally denied of the ownership of its property which was transferred to the Bank of Valletta.
On 12 December 1973, the National and Tagliaferro Banks Act was passed in Parliament, transferring the administration of the bank to the Council of Administration, appointed by then Prime Minister Dom Mintoff. The Council was given directorial powers and functions which nullified those of the National Bank’s board of directors and shareholders. All the business, assets and liabilities of the National Bank of Malta were then transferred to the newly-created Bank of Valletta in March.
The shareholders association are claiming that the National and Tagliaferro Banks Act was not lawful since the law obliged the bank’s shareholders to transfer the ownership of the bank in "circumstances not permissible according to the law," and that the law goes against the Constitution.
In its counter-protest, Bank of Valletta plc said the property in question belonged to the Government of Malta and that the bank was never the source of any abusive or illegitimate action.

matthew@newsworksltd.com