Alfred Mifsud’s position as deputy governor of the Central Bank of Malta is not tenable in the wake of allegations made against him in the media about "corruption, fraud and money laundering," Nationalist Party deputy leader Beppe Fenech Adami said today.

He said the police were doing well to investigate the allegations, and they should also open up an inquiry on No-Portfolio Minister Konrad Mizzi and OPM chief of staff Keith Schembri who had secretly opened companies in Panama. "The allegations about Keith Schembri and Konrad Missi are very similar to Alfred Mifsud's. What is stopping the Police from investigating the right and left hands of the Prime Minister?" the Deputy Leader asked.

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

At the time, Mr Mifsud was chairman of Mid Med Bank, while Mr Demajo, through the M Demajo group represented an American banking software system known as Eastpoint. Mrs Caruana Galizia and Ms Zelbst are 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.

Mr Mifsud has renounced to his possible appointment as Central Bank governor and instituted libel proceedings against Mrs Caruana Galizia, and filed a complaint with the police about his former partner.

He is still the CBM's deputy governor, with the PN calling for his immediate resignation in the wake of allegations made about him.

On Tuesday, The Malta Independent reported that Alfred Mifsud said he had met with well-known businessman Ronnie Demajo, but denied it was for “for any wrongdoing.”

Spokesperson for financial Services, Kristy Debono, spoke about Finance Minister Edward Scicluna's statement in Parliament yesterday that his opinion on Mr Mifsud's position is irrelvant. Mrs Debono said that Prof Scicluna has the single most relevant opinion in this case considering he should be giving the government a direction regarding the Financial Services sector.

Mrs Debono also said that the goverment needs to take a decision regarding the new nomination for Governor taking into consideration that Malta cannot afford to have another humiliating grilling experience. Malta's reputation is currently on the line considering the Panama Papers scandal and now this. 

She also said that one of the ways to bring the country's reputation back on track is for the government to immediately accept the PN's Private Member's Bill tabled yesterday in Parliament regarding the establishment of a Parliamentary Committee to scrutinise people taking up high ranking positions, such as Governor of the Central Bank. 

In a statement, the government said the Opposition is playing a dangerous game by trying to interfere in the administration of the Central Bank.

The CBM enjoys independence and it abides by rules and procedures, on which there is the scrutiny of the European Central Bank, the government said.