Vitals saga: Edward Scicluna to no longer serve on MFSA Board

Edward Scicluna will no longer serve on the Malta Financial Services Authority’s (MFSA) Board of Directors, amid the ongoing Vitals hospitals’ scandal.

The decision was first announced by Prime Minister Robert Abela during a Labour Party activity with interviewer Matthew Xuereb on Thursday, where he stated that Prof. Scicluna will be removed from his position at the MFSA.

“A decision has been taken,” the Prime Minister said during the interview.

The move was then confirmed through a notice in the Government Gazette that was published on Friday (today), stating that his role has been terminated.

This comes after on Wednesday the Magistrates’ Court ruled that former Deputy Prime Minister Chris Fearne and Prof. Scicluna – also Central Bank Governor – together with 12 other individuals will face trial in relation to the Vitals scandal, a deal to privatise three state hospitals that saw around €400 million in public funds being spent.

During the trial, the prominent political figures will be questioned about their alleged involvement in the deal.

As done previously, the court upheld a €20 million freezing order on other parties who will be facing trial. Additionally, each defendant will indicate their phone numbers and email with a personal guarantee of €10,000 to ensure that they abide by the conditions imposed by the court.

While Mr Fearne resigned in May, despite Prime Minister Abela’s request to reconsider, Prof. Scicluna is still Governor of the Central Bank of Malta. While the Opposition has requested his resignation, he argued that neither the Government, nor the Opposition, nor civil society could ask for his resignation.

“A Minister’s position is the prerogative of the Prime Minister, while the role of Governor is governed by the EU Treaty and European Central Bank (ECB) statutes,” he said.

Prime Minister Abela was in agreement with his reasoning, stating that he will not be requesting his resignation.

In Thursday’s interview, Dr Abela did however state that he believes Prof. Scicluna will take the best decision in the interests of the country.

Last month, the court also found sufficient grounds to indict former Prime Minister Joseph Muscat, former Minister Konrad Mizzi, and former Chief of Staff Keith Schembri in the same case. They are facing criminal charges that include corruption, fraud, conspiracy, and money laundering.