Prime Minister Joseph Muscat this morning said that a scheme such as the cedoli one launched by the Nationalist Party is tantamount to "bringing Panama to Malta".

Addressing the Labour Party General Conference, he said that the issue at stake here was not "legality" but "correctness". He said that while there could be doubts about the legality of the scheme, there were no doubts that it was a corrupt scheme. 

“The scheme released by Busuttil is one which favours corruption. He can say that this is legal, even companies in Panama are legal, the issue in question is not legality but correctness. While there is doubt that this scheme is legal, there is no doubt that this scheme is not correct.

“It is not correct, but corrupt. It is a scheme which will favour corruption. With secrecy and hiding, Opposition Leader is placing Panama in Malta, in his own party. My challenge to Busuttil is to publish the thousands being ‘lent’ to the party through these exchanges of corruption, the Panama exchanges of  in Malta. If he does not say that, he will be giving his patronage to a corrupt scheme.

“For what is coming, we are going to deliver more. We mean business – even in the fight against corruption.”

Dr Muscat never once mentioned Konrad Mizzi in his speech at the Labour Party general conference, repeating what he has said so far since the Panamagate scandal erupted nearly eight weeks ago – that he will wait until the end of the tax investigation to take a final decision.

Since Energy Minister Konrad Mizzi, who is now also officially the party's deputy leader, said he would leave his political future in the hands of Dr Muscat last Thursday, expectations were high for the PM’s address this morning. But it was immediately clear that the Panama Papers revelations, including those made this morning, has not shifted the PM’s stand on the matter.

He started his speech by focusing on the scandal, quickly dealing with the issue by saying that matters have not changed and that he will rely on the results of an investigation. If it is discovered that anyone lied, he said, they will be removed. But until then, things will remain as they are.

"The facts which have been uncovered so far show that there was no money involved. The ongoing investigation has revealed as such. One who takes decisions without all the relevant facts is not a leader....If it results that the whole truth was not said, the positions of the people concerned [Dr Mizzi and Mr Schembri] will no longer be tenable. If it results that they did say the truth, this will be an important fact, but it will not be an excuse to do nothing about the damage which has been caused to Malta. Public sentiment merits a political signal, that we are listening and taking action."

He said that he could have handled matters differently, and lessons have been learnt from the situation. He said he understood the people's sentiment, but he will not ake action now. He said he was confident that on Friday the government will win a vote of confidence to continue carrying out its sterling work, adding that there is no reason to think that the legislature will come to an abrupt end. "We will carry on for five years," he said.

Dr Mizzi’s name, and that of OPM chief of staff Keith Schembri, were not mentioned by the PM, who then turned to speak about other issues.

Prime Minister Muscat committed himself to publishing all notable government contracts, in particular those signed by Dr Mizzi. He said that this will be done while respecting commercially sensitive information, which could have a negative impact. The government has nothing to hide, he added.

He spoke about the launching of an international public registry of companies for the sake of transparency, which would list anyone involved in corruption and provide a clearer picture for the bidding of public tenders and contracts. He also spoke of a local registry which shows the ultimate beneficiaries of offshore companies and trusts.

"Deputy Prime Minister Louis Grech will be working in order to launch this project, and bring transparency. Corruption is fought through facts," he said.

"Since Simon Busuttil presented a vote of no confidence, one expects his policies to be in order," he said.

"Will Dr Busuttil continue with the new power station project? Will he build the new Gozitan hospital? Will he build the American Institute of Malta? Will he carry out discussions with the police, so that they can be paid the money owed to them over the past months?", he asked. 

Tonight Dr Muscat said he will be flying to Jordan and Lebanon, together with commercial bodies and other dignitaries, in order to open markets for all Maltese businesses.

Dr Muscat said "not to worry, this government will continue to the work, as mandated by the public."

"We will win the trust of the Maltese and Gozitan people. In two years you will be hearing our manifesto for the election. We will fix Mater Dei, which was a victim of corruption by a previous administration. Changing the electricity system to gas, more civil liberties, roll-out of tablets, opening new schools, new university in the South and in Gozo, more tourists, bigger investment, we will be the leading the EU presidency with honour", he added.

"We will work to become a model for other countries to follow."

Dr Muscat committed himself to not letting partisan politics destroy the financial services sector.

Revealing another of the government’s top priorities, Dr Muscat said that he is also committing himself to reducing the rate of poverty in Malta for the first time in years.

“It is my top priority for this movement in the coming two years. A country embroiled in corruption cannot achieve this, we need transparency. Corruption exists in all societies and goes beyond the public sector, the difference is that this government is fighting corruption with facts. The fight against corruption is a priority for the government.

Dr Muscat also revealed that new laws will be introduced, in particular he spoke of how Members of Parliament will be paid according to how many Parliamentary sessions they attend. 

He announced the launching of an international initiative for the publication of companies which have been associated with corruption, in a global effort to fight corruption.

In reply to his speech this morning, and a few hours before a protest in front of Castille, the Nationalist Party issued a one-word statement: "Surreal", it said.