Minister for Finance Edward Scicluna has said that the decision whether Alfred Mifsud should be suspended until the investigations are concluded, lies with the Board of the Central Bank.

Speaking to The Malta Independent, the Minister said he consulted with the European Central Bank and was informed that the decision on those who already occupy a position in the central bank has to be taken by the entity’s board.

“The European Central Bank said that when it comes to the nomination, it is the government who has to decide who to nominate. And so far, the government has taken no such decision, but is free to choose the person it sees fit.”

“However, on persons who already occupy a position in the central bank, it has to be the board of the Central Bank which takes any decision.” He explained that the government would be interfering by stating that Mr Mifsud should step down from his current position.

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.

After pressure by the Opposition, Mr Mifsud, who currently occupies the post of Deputy Governor for the Central Bank, has put forward a request not to be considered for the position of Central Bank Governor.

However, the Nationalist Opposition has insisted that Mr Mifsud should still resign from Deputy governor until the case is closed.

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. 

Asked to confirm this, the Minister said the government is considering a number of people but was reluctant to divulge any names.

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.”