Toni Abela resigned as deputy leader of the Labour Party, making way for Energy Minister Konrad Mizzi to take up the post.

After being rejected by the European Parliament’s budgetary committee, there was speculation that Toni Abela could hold on to his post.

The Labour Party had held a premature election for the post of deputy leader, with Konrad Mizzi being uncontested, before Toni Abela’s grilling at the EP and before his resignation.

This placed the PL in a quandary after Dr Abela’s rejection.

But Dr Abela has now resigned, although he is set to be given another posting since, according to the Prime Minister, he has still so much to offer to the country.

Asked to comment on his resignation this morning, Dr Abela said that he cannot divulge any details at this stage.

It is still to be established whether Dr Abela’s nomination for the Eurppean Court of Auditors will be withdrawn, but sources said that the lawyer does not want to go through with it.

A meeting was held between the Prime Minister and Dr Abela on Saturday.

Dr Mizzi is at the centre of a political controversy which erupted a day after he was elected as deputy leader of the party. He has opened a company in blacklisted Panama. Documentary evidence shows how Dr Mizzi’s company in Panama had been transferred into his New Zealand Trust on 22 July 2015 – the very same day that Gasol sold its entire shareholding in the Electrogas Delimara power station consortium for an undisclosed amount, which, according to financial specialists speaking with this newspaper, would have been valued at tens of millions of euros.