Nationalist Party leadership contender Frank Portelli owes HSBC Bank €11.6 million + interest accruing since 2015 Courts of Justice judgement

Published: August 10, 2017 at 12:10pm

One of the two outsider candidates in the Nationalist Party’s upcoming leadership election, Frank Portelli, owes HSBC Bank Malta plc €11.6 million in capital and interest as at 12th January 2015, when the Courts of Justice ruled in the bank’s favour. In the two and a half years since, further large sums have been ratcheted up in interest on the original capital sum of €8 million.

For more than a year following the court judgement two and a half years ago, Dr Portelli avoided being served at his address with the judicial act instructing him to pay up. The Courts of Justice then ordered notification by formal publication, which means that the judicial act is affixed by court bailiffs to the individual’s front-door and published in the Malta Government Gazette. It was published in the Government Gazette on 3rd May last year.

The judicial act calls on Frank Portelli to pay to HSBC Bank Malta plc “within two days” the sum of €11.64 million and the interest accruing on it since the 2015 judgement in the Courts of Justice. The money is owed in respect of a loan of €7.1 million given to him for his business and left unpaid along with the interest of €3.57 million accrued up to 12th January 2015, and an unpaid overdraft of €1 million with accrued interest of almost a quarter of a million euros.

The interest continued to accumulate over and above that sum between the court judgement and the publication of the notice in the Government Gazette 16 months later. It has continued to accumulate since then as the Nationalist Party leadership contender has not settled his debt.

In the judicial act addressed to Frank Portelli, the Court Registrar describes the significant sum owing as “the amount you were repeatedly solicited to pay, but failed to do so”. Dr Portelli is also told: “To avoid useless Court costs, if the payment of the debt above mentioned is not possible and you need more time for monthly payments, you can admit your debt with the Bank by means of a notarial act. In this case you are advised that within fifteen days from the service of this letter you advise the Bank and engage a Notary”.

The “notarial act” described is what is known as a ‘constitution of debt’. When debts are left unpaid or payment programmes are not adhered to, the interest continues to accumulate as a separate debt, but the law does not permit interest to be charged on interest. The bank or other creditor therefore insists on the drawing up of a constitution of debt, which is a notarial document and therefore a public deed, in which the debtor admits to the total sum owing, of capital and interest, making the accumulated interest part of the actual debt so that interest can be charged on it from that point forward.

I do not yet have any information on whether Dr Portelli cooperated with HSBC Bank in this constitution of debt, but if he did, running a search on his name and/or The Golden Shepherd Group Ltd (company registration number C14948) will bring it up.

Nationalist Party leadership contender Frank Portelli

30 Comments Comment

  1. alex says:

    I fail to understand how the Nationalist Party, with such a glorious past and enviable achievements for this country of ours, only managed to attract these four individuals for this leadership race. What a shame.

    • Because the Labour Party worked hard over the last nine years to turn the Nationalist Party into a poisoned lake that even its own politicians and activists despise.

      Relentless propaganda, brainwashing and the paid help of Cambridge Analytica (more about this in due course) really does work.

  2. Henry S Pace says:

    Surely not fit to become a PN leader

  3. Spiderman says:

    Definitely makes one wonder what his true motives are.

  4. Le pauvre homme says:

    Portelli has clearly not thought things through – either that, or he is clutching at straws – two straws specifically.

    Straw No. 1: he gets elected PN leader.

    Straw No. 2: the PN wins the next election, giving him the chance to sort out his mess by fair means or foul.

    On a side note, thank you for pointing out that interest on interest is illegal. Few people seem to pay attention to this fact and I suspect Maltese banks, HSBC especially, flout the law and charge compound interest regularly.

  5. Stephen Bonello says:

    People with money and no morals will support this candidate wholeheartedly. His financial position leaves him vulnerable and open to manipulation. In other words, for these people keen on protecting their fortunes and themselves, he is the IDEAL candidate to have a future Prime Minister.

  6. Joe Borg says:

    Chris Said is the only beacon of sanity in this contest. What the PN needs right now are the smarts (hazen) and pragmatism of a Gozitan. Moreover his political experience put him in a position to give Muscat a good run for his corrupt money.

  7. Rosie says:

    An excellent job being done in the vetting process.

  8. A Russian dolls structure of which Keith Schembri would approve.

  9. You know, I’m a little tired of explaining the basics. No wonder it’s so easy for people like Joseph Muscat, Keith Schembri and Frank Portelli to get away with murder in Malta when Maltese people barely know what a company or business loan are.

    I’m going to spell it out. When the banks lend a company money THEY MAKE THE DIRECTORS/SHAREHOLDERS PERSONALLY LIABLE FOR THE MONEY OWED. Otherwise, no bank would ever lend a company money – because it would be the easiest thing in the world to say “Ooops, ran out of money! Limited liability!”

    So yes, Frank Portelli is personally liable for the 11.6 million euros.

    And in cases of fraudulent trading, the directors lose their personal shirts too. Hence the Price Club debacle.

    Your creditors can also come after your personal effects and property despite company limited liability in certain other circumstances – which is why Charles de Giorgio Ltd, a medical supplies company, successfully applied to the Courts of Justice to have Frank Portelli’s St Paul’s Bay home sold by court-auction.

  10. Why do you think he hasn’t filed for bankruptcy?

  11. Galeforce says:

    That’s not a frown. That is a permanent sneer.

  12. Galeforce says:

    Paranoid delusions of grandeur?

  13. Angela Galea says:

    If I had a say in the PN’s administration I would kick out not only the two contenders who are inundated with debts but also those who signed their nominations.

  14. Angela Galea says:

    Is everyone forgetting Henley & Partners?

  15. Angela Galea says:

    And the Nationalist Party still thinks that the Maltese are intelligent and intellectual. They might be, but only intelligent and intellectually challenged.

  16. Francis X Darmanin says:

    Il-ahwa – kemm irid jigbor fliexken tal-plastik.

  17. He doesn’t have to file for bankruptcy because the bank has no way of getting any money from him. And he doesn’t need to start again (because he’s 73) or have to safeguard his income, because he hasn’t any. This is possible because he has a wife a generation younger than he is to work and keep both him and the son he produced at 56, who is still at school.

    If his second wife sto divorce him, he’s got no means of survival. And if she were the same age as he is, 73, then she wouldn’t have been able to find a job to support them all.

    I think these matters should be spelled out because he is seeking the highest office in the government.

  18. It figures: a man of the extreme right who champions ‘Christian virtues’ and tradition, despises Muslims, thinks homosexual men and women are a breed apart…but then lives off his wife.

  19. Stephen Forster says:

    I would top myself.

  20. Peritocracy says:

    He’s quite the walking disaster, 2bfrank.

  21. Patrick Sciberras says:

    I heard he’s the expert consultant drafting the new regulations.

  22. Ben Jones says:

    Is HSBC going mad?

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