Businessman Paul Testaferrata Moroni Viani has been elected to the board of directors of Bank of Valletta by shareholders at the bank’s EGM, replacing former Sea Malta chairman Marlene Mizzi whose nine years on the board appear to have been abruptly ended.
Mizzi was ousted just weeks after her husband Magistrate Antonio Mizzi was blacklisted from government functions over calls to resign his sporting executive post by the Commission for the Administration of Justice, which claims he is in breach of a code of ethics. Marlene Mizzi had publicly defended her husband’s decision not to step down as president of the Malta Basketball Association.
A lack of visible support for Mizzi’s candidature may have been at the centre of an effort to have Moroni Viani finally elected to the board. Last year, his nomination for the board of directors was seconded by none other than ‘rival’ bank HSBC, a minority shareholder with 530,000 shares in BOV.
He later withdrew his nomination, but not before reports revealing shareholders’ concerns by MaltaToday.
Apart from Moroni Viani’s directorship on the board of telecommunications firm Go and his other property and tourism interests, his brother Peter is a director on the HSBC board.
Asked by MaltaToday on Friday, BOV chairman Roderick Chalmers dispelled any notion that shareholders were not given a clear sign of support from the bank for Marlene Mizzi’s candidature.
“Insofar as the chairman’s ‘support’ or otherwise for particular candidates is concerned, the chairman observed that it would not be appropriate to state how he cast those votes entrusted to him as proxy for a number of shareholders,” spokesperson Michael Galea told MaltaToday.
“However, he advised it would be a mistake to assume or conclude that his support did not extend to Ms Marlene Mizzi. The chairman said he is wholly satisfied that the election result fairly reflected the wishes of those shareholders eligible to vote at the EGM as a whole, excluding those votes entrusted to him qua proxy.”
Chalmers categorically denied any approaches from government representatives to discuss the issue of Mizzi’s candidature. The government owns 25% of BOV shares.
“The Chairman can confirm that neither he nor the bank received any approaches whatsoever from government over not supporting Ms Mizzi, or indeed in respect of any other candidate for election to the Bank of Valletta Board.”
Contacted yesterday, Marlene Mizzi was diplomatic about the result of the election: “It was an election in which the shareholders’ wishes were respected – the shareholder is sovereign,” Mizzi said.
But she said her election in the past never required any direct soliciting for votes:
“It is true that in the past I was never the type to solicit the proxy votes and that I had always been supported by the bank – what happened this time around I don’t know; anybody can draw their own conclusions.
“I’ve been nine years on the board of a very good bank, and I think it’s only correct, in view of good governance, for directors to change so that they can really remain independent.”
While Mizzi would not be drawn into commenting over the election of businessman Moroni Viani, chairman Roderick Chalmers has defended the election of the leading entrepreneur whose sibling sits on the HSBC board – the bank with whom BOV controls 90% of the banking sector.
“In terms of the financial services regulations, all candidates for election to the BOV board must first be approved by the MFSA. Paul Testaferrata Moroni Viani is a leading and much respected member of Malta’s business community. In accordance with normal practice, he will be fully briefed concerning his role and responsibilities as a director of the bank,” spokesman Michael Galea said.
“The chairman has no doubt that Mr Testaferrata Moroni Viani will fully respect all rules, regulations and good practice in matters relating to the BOV business and governance, and that he will take all due care and attention to ensure that any conflict of interest matters are handled in the most appropriate manner.”