A spokesperson from the Office of the Prime Minister has confirmed that Alfred Mifsud has put forward a request not to be considered for the position of Central Bank Governor.

"This is to confirm that I have informed the Hon. Prime Minister that I do not wish to be considered any further for the post of Governor of the Central Bank of Malta," he wrote. 

He was set to take on the role on 1 July, pending approval from the European Central Bank.

Allegations surfaced against Mr Mifsud in journalist Daphne Caruana Galizia’s blog, when she quoted Mr Mifsud’s former partner, Anna Zelbst, saying that well-known business man Ronnie Demajo had come to their home between 1996 and 1998 at least three times, to pay Mr Mifsud Lm50,000 in case each time.

At the time Mr Mifsud was chairman of Mid Med bank, while Mr Demajo, through M Demajo group represented an American banking software system known as Eastpoint. Mrs Caruana Galizia and Ms Zelbst are therefore claiming that Mr Demajo therefore passed on the large sums of cash to Mr Mifsud as a bribe, in order to get him to change Mid Med banking software to that of Eastpoint.

The Nationalist Party was due to present a motion this evening in Parliament on the issue, however due to this latest development it decided not to proceed.

It later issued a statement saying that it was glad common sense had prevailed. However, the PN also noted that it was Mr Mifsud who excluded himself from the role, and that it was not the Prime Minister's decision.

The PN said that the decision was taken in the context that the European Central Bank was discussing the issue and that Mr Mfisud is being investigated by the police. It said that correctness now demanded that Mr Mifsud should resign from the post of deputy governor, a post that was created in order for him to take the position of governer in the long run. In a counter statement, the Labour Party said that Dr Busuttil also needs some common sense, especially in dealing with a case where a PN MP put undue pressure on workers in casting their votes.

Mr Mifsud has since filed for libel proceedings against Mrs Caruana Galizia and also filed a defamation complaint with the police against his former partner, Ms Zelbst.

The Malta Independent on Sunday revealed through government sources that Finance Minsiter Edward Scicluna, Deputy Prime Minister Louis Grech and Education and Employment Minister Evarist Bartolo have been pushing for another candidate, former Deputy General Manager of the Financial Markets Division and current chairman of the Malta Fiscal Advisory Council, Rene Saliba. 

This morning, The Malta Independent reported that Mr Mifsud admitted to meeting Ronnie Demajo, but denied it was for any wrongdoing.