Concealed Evidence Scandal: MFSA Officials Allegedly Hid Pilatus Bank Files in Office Safe

Overview

The Malta Financial Services Authority (MFSA) is once again at the center of a serious controversy. Recent court testimony by an MFSA officer has revealed that two officials allegedly hid key documents related to the magisterial inquiry into Pilatus Bank inside a safe located on MFSA premises. Access to this safe was reportedly restricted to just two individuals, both of whom have since left the Authority. The testimony was made public on Maltese television by the president of a local NGO.

Hidden Documents and Breach of Court Orders

According to NGO Repubblika, the documents in question were supposed to be passed on to the investigating Magistrate as part of a court-ordered magisterial inquiry. Instead, they were allegedly concealed, in direct breach of the court’s instructions.

The hidden files reportedly concerned:

• The capitalization of Pilatus Bank

• The liquidity position of the bank

The testimony further stated that these documents only reached the magistrate after the two officials who concealed them resigned from the MFSA.

Who Controlled the Safe?

The witness claimed that only the heads of the relevant MFSA department had access to the safe and its contents:

• Karol Gabarretta – Head of department at the time

• Ray Vella – Deputy head

Today, Karol Gabarretta holds several influential positions:

• Non-executive director at EPG Financial Services, an entity regulated by the MFSA

• Secretary General of the Malta Bankers’ Association (MBA) since July 2018

• Representative of the MBA on:

• The Management Committee of the Deposit Compensation Scheme

• The Board of Governors of FinanceMalta

MFSA Executive Committee and Undeclared Conflicts of Interest

The current MFSA Executive Committee is led by acting CEO Michelle Mizzi Buontempo. The committee also includes Christopher P. Buttigieg, whose wife Bernice Buttigieg serves as secretary to the board of Finance Malta.

Despite the overlap between regulatory roles and industry bodies, these potential conflicts of interest are allegedly not declared publicly.

Additionally:

• Christopher P. Buttigieg is reportedly the subject of a lawsuit

• The claim involves accusations that he attempted to persuade a license holder to sell its business to a competing firm

Questions sent to the MFSA regarding these matters have reportedly gone unanswered.

Finance Malta, Calamatta Cuschieri, and Cash for a Convicted Criminal

Finance Malta’s board also includes Alan Cuschieri of Calamatta Cuschieri Investment Services Limited.

According to court testimony:

• Calamatta Cuschieri allegedly handled over €500,000 in cash for a convicted criminal

• Despite this, the firm has never been fined in relation to this conduct

The Edwina Licari and Joseph Cuschieri Connection

Another key figure in this network is Edwina Licari, described as a close associate of disgraced former MFSA CEO Joseph Cuschieri. She currently sits on the MFSA Executive Committee.

However, her broader track record raises serious concerns:

• She was forced to resign from the FIAU Board of Governors after it emerged that she traveled to Las Vegas with Yorgen Fenech, the alleged mastermind behind the assassination of journalist Daphne Caruana Galizia

• Leaked emails allegedly show that Edwina Licari acted as a consultant to Yorgen Fenech, a role that clearly clashes with basic standards of conflict-of-interest management

Key Individuals and Their Roles

A Regulatory Authority Under Growing Scrutiny

Taken together, the alleged concealment of Pilatus Bank documents, overlapping roles in MFSA and FinanceMalta, and the personal ties to controversial figures such as Yorgen Fenech paint a troubling picture of regulatory capture and poor governance.

The unanswered questions sent to MFSA only deepen concerns about transparency, accountability, and the integrity of Malta’s financial regulatory framework.