The GSD issued a statement questioning a £50.5 million loan note by the Gibraltar Savings Bank, following the former Principal Auditor’s report.

A statement from the GSD follows below:

Why has the Gibraltar Savings Bank provided £50.5 Million in an opaque and complex way to a company  which appears to be part of the National Economic plan? The Principal Auditor’s report provides details in  respect of his 2024 audit of the Gibraltar Savings Bank which the GSLP/Liberals refuse to gazette. It highlights  a financial jungle in the issue of £50.5 million of Loan Notes to the Gibraltar Savings Bank to finance a  previously unknown entity.  

Roy Clinton MP the GSD Shadow Minster for Public Finance stated the following:  

“Given that Sir Joe Bossano refuses to gazette the full audit report and accounts of the Gibraltar Savings Bank  (“GSB”) since 2019, this year the Principal Auditor has again included the accounts for 31 March 2024 in his  annual report in the public interest.  

On pages 50 and 52 the Principal Auditor describes a series of mirror transactions in order to provide finance  to an entity called Community Credit Union Co-Operative Limited. This is a Gibraltar incorporated company  (No: 123047) which was incorporated on 17 January 2023, limited by guarantee and owned by Gibraltar  Community Initiatives Limited which promotes the GSLP National Economic Plan.  

The complex transaction involves GSBA Limited (a subsidiary of the GSB) issuing Loan Notes to the GSB.  GSBA then purchases the same value Loan Notes from its subsidiary Gibraltar National Mint Limited who in  turn purchase the same value Loan Notes from Community Credit Union Co-Operative Limited. That Sir Joe  Bossano himself called this overall structure through which the Government is organising similar transactions  a financial jungle is an understatement.  

The existence of Community Credit Union Co-Operative Limited was, until revealed by the Principal Auditor  in his report, unknown to the Opposition and questions will be asked as to what it is doing with £50.5 million  of money ultimately provided by Gibraltar Savings Bank depositors. As this is savers monies they are entitled  to know what is going on. ”