Malta Central Bank Governor Edward Scicluna Suspends Duties Amid Court Case

Malta Central Bank Governor Edward Scicluna has temporarily suspended himself from his role pending the outcome of a court case related to a 2015 hospitals privatization deal, during his tenure as finance minister, the government announced on Tuesday.

Scicluna, aged 77, faces charges of fraud and misappropriation alongside 13 other current or former senior government officials, including former deputy prime minister and health minister Chris Fearne, according to court documents reviewed by Reuters. All accused parties deny the charges.

On Tuesday, the Maltese government acknowledged that Scicluna had requested ECB President Christine Lagarde to allow him to "no longer exercise the functions of governor of the Central Bank until a court case against him is concluded."

“The Cabinet of Ministers acknowledges Professor Scicluna’s decision as being in the best interests of the country,” stated the government.

Scicluna did not immediately respond to a Reuters request for comment.

In the interim, Central Bank Deputy Governor Alex Demarco will assume the role of acting governor.

The scandal revolves around a 2015 decision by the Maltese government to award a contract for three state hospitals to the previously unknown Vitals Healthcare Group, which later transferred the concession to the American hospitals group Steward. Last year, a Malta court annulled the concession, declaring it fraudulent.

Prior to his appointment as finance minister in 2013 by then Prime Minister Joseph Muscat, Scicluna served as a member of the European Parliament and was an economics professor. He assumed the position of central bank governor on January 1, 2021.

The duration of the court case remains uncertain, but legal proceedings in Malta typically span several years.

By fLEXI tEAM