On 2 December 2019, the Board of Directors of Tumas Investments plc issued a statement to update bondholders on the affairs of the company and of the guarantor of its bonds – namely Spinola Development Company Ltd (“SDC”). The statement relates to recent developments concerning a former director of Tumas Investments plc – namely Mr Yorgen Fenech – and maintains that:
- The resignation of Mr Yorgen Fenech is not expected to impact management continuity at SDC. Indeed, the posts of Executive Chairman and Chief Executive Officer of the Tumas Group are held by Mr Raymond Fenech who has occupied these roles since 2014 and who continues in his leadership role. Contrary to what has been publicly stated on the local media, Mr Yorgen Fenech did not hold the post of Chief Executive Officer of the Tumas Group or of SDC.
- Since reports first surfaced last year linking Mr Yorgen Fenech to irregularities, Mr Yorgen Fenech strenuously denied all allegations in his regard, both publicly as well as within the Tumas Group. The events unfolding recently have caused concern and dismay to the Board of Directors of the company that supports the Tumas Group’s statement disassociating itself from the alleged actions being attributed to Mr Yorgen Fenech.
- During the course of 2019, the Board of Directors of the company made enquiries with the Directors of SDC on the reputational risk arising from the press allegations made in respect of Mr Yorgen Fenech. The Board established that Mr Yorgen Fenech’s position as Director on various Boards of companies within the Tumas Group, including Tumas Investments, derived from his shareholding within the Group pursuant to inheritance.
- The Board of Directors of the company also sought and received assurances from the Tumas Group that, during the course of 2019, Tumas Group has not benefited from any illicit activities being attributed to Mr Yorgen Fenech. The Board has, moreover, been informed that, in the light of the events that have unfolded over the past days, the Tumas Group feels that it should seek additional comfort in this regard through an independent external report.
- The financial performance of SDC remains satisfactory and fully in line with the forecasts as published in the Financial Analysis Summary dated 28 June 2019. SDC also continues to enjoy the support of the various local and international stakeholders and partners involved in its operations.