The Maltese Financial Regulator And Its Remarkable Legal Costs!

tamir
Sat, 08 Jul 2023 11:29:25 +0000
Malta Financial Services Authority, Camilleri Preziosi, Clyde Caruana, Ganado Advocates, Joseph Caruana, Mark Simiana, Paula Mifsud Bonnici, Pilatus Bank, Refalo Advocates, Robert Abela, Sheehan Phineey, VB Advocates

According to a report from Maltese online news outlet, The Shift, Malta's financial services regulator MFSA has come under scrutiny for its spending on legal services, with the regulator paying €420 per hour to a US law firm, Sheehan Phinney, and engaging around 10 other firms at lower hourly rates ranging from €50 to €220. In addition, the regulator employs full-time lawyers, some earning salaries exceeding €120,000 per year.

According to a report from Maltese online news outlet, The Shift, Malta’s financial services regulator MFSA has come under scrutiny for its spending on legal services, with the regulator paying €420 per hour to a US law firm, Sheehan Phinney, and engaging around 10 other firms at lower hourly rates ranging up to €250. In addition, the regulator employs full-time lawyers, some earning salaries exceeding €120,000 per year.

While the specific services provided by Sheehan Phinney are not publicly disclosed, sources suggest the firm’s involvement relates to the Pilatus Bank case, The Shift reports. Pilatus Bank, which had operated without adequate supervision for years under the MFSA’s former leadership, was embroiled in allegations of money laundering, particularly involving politicians and individuals connected to the Azerbaijani regime. The European Banking Authority’s intervention and pressure from the political opposition in Malta eventually led to the MFSA taking action to shut down the bank.

In response to questions from opposition MP Paula Mifsud Bonnici, Finance Minister Clyde Caruana acknowledged that the MFSA also engages local law firms for its legal needs. These firms include Ganado Advocates (€250 per hour), Camilleri Preziosi (€250 per hour), Refalo Advocates (€150 per hour), Mamo TCV (€150 per hour), and VB Advocates (€220 per hour). The MFSA’s expenditure on legal services is estimated to amount to hundreds of thousands of euros.

Moreover, other law firms have received direct orders from the Finance Ministry in recent years. Notably, lawyer Mark Simiana, who has close ties to Prime Minister Robert Abela, was directly engaged by the Office of the Commissioner for Revenue on a €23,000-per-year retainer.

The article also mentions a separate issue concerning the tax valuation of a villa owned by Prime Minister Abela. Despite the property’s market value exceeding €2 million, Abela declared its value for tax purposes at just €600,000, raising questions that have yet to be answered by Tax Commissioner Joseph Caruana regarding the involvement of tax inspectors in assessing the property’s value.