In the wake of a Malta Independent investigation, former Nationalist Party minister Michael Falzon said he is relinquishing his position as an observer on the Oil Procurement Committee and that he is also suspending himself for the time being from all political activities of the Nationalist Party, of which he is a member of the executive.
The Malta Independent this week contacted Mr Falzon for an explanation for a bank account he had held at HSBC Geneva, the bank at the centre of the Swiss Leaks scandal, which prompted him to issue a statement this afternoon to the whole media.
Given Mr Falzon's statement, we are making a recording of our conversation with Mr Falzon earlier this week available (click on video above).
The results of our investigation, which by no means deal solely with Mr Falzon's holdings at HSBC Geneva, will be published in tomorrow's issue.
In his statement, Mr Falzon says, "Although it is evident that the said account has no connection whatsoever with my past political activities, I have decided to suspend myself for the time being from all the political activities within the structure of the PN. For the time being, I am also withdrawing from my position as observer on the Oil Procurement Committee."
He also insists that the funds in the account have been repatriated to Malta and that he no longer has any funds deposited in any Swiss bank or any other foreign bank. The funds in Switzerland, he says, resulted from a professional partnership with a Swiss architectural firm.
Mr Falzon's full statement is as follows:
"Last Wednesday I received a telephone call from a journalist in which I was asked to confirm that I used to have account at HSBC Genève. I had no problem in confirming that this information was correct.
"I have reason to believe that this information is going to be published in a Sunday paper tomorrow. In the circumstances I would like to give some background about this account.
"Between 1975 and 1985, I was involved with other Maltese professionals in an Architectural and Civil Engineering consultancy providing services abroad. These services were provided under the aegis of a Maltese registered company of which I was shareholder and director.
"The first big job that this company worked on had been entrusted to it in partnership with a Swiss architectural firm. This necessitated frequent visits to Switzerland and the opening of bank accounts to which funds were affected by the Swiss partners and eventually to the Maltese company.
"When the company was liquidated, and considering the political situation in Malta in 1985-87, I decided to retain a Swiss account in my name. I want to make it clear that the money came from payments for professional activities abroad for foreign clients that were carried out before I became a Minister in 1987 and that no moneys originating from Malta or from third parties were ever deposited in this account. In fact, I had no other foreign accounts.
"In about 2002 I decided to transfer the account to HSBC Genève and some six years later the money was again transferred to another bank. The amount of money in this account was circa Lm200,000.
Eventually all the money in the account was repatriated to Malta and today I have no money deposited in any Swiss bank or any other foreign bank whatsoever.
"My fiscal position in Malta has long ago been regularised.
"Although it is evident that the said account has no connection whatsoever with my past political activities, I have decided to suspend myself for the time being from all the political activities within the structure of the PN. For the time being, I am also withdrawing from my position as observer on the Oil Procurement Committee."
Read the full investigation in tomorrow's issue of The Malta Independent on Sunday