The Office of the Prime Minister has confirmed that it is not within the government’s remit to ask for Alfred Mifsud to step down from his post as Deputy Governor of the Central Bank (CB) following allegations of bribery during his time as chairman of Mid Med bank between 1996 and 1998.
“The Central Bank Act, which provides for the independence of the institution, is clear on under what circumstances an office holder can be removed.
“This issue falls within the remit of the Board of Governors and government cannot interfere,” an OPM spokesperson said in response to being asked whether Prime Minister Joseph Muscat will be asking for Mr Mifsud to step down from his post of Deputy Governor.
Last Tuesday, Mr Mifsud requested not to be considered for the post of CB Governor, while his former partner Ms Zelbst has been summoned by the police Economic Crimes Unit to provide a statement on the allegations made.
Efforts to contact Mr Mifsud to ask whether he will be voluntarily stepping down a Deputy Governor proved unsuccessful.
This newsroom revealed, through government sources, that senior members of Cabinet such as Deputy Prime Minister Louis Grech, Education and Employment Minister Evarist Bartolo and Finance Minister Edward Scicluna were pushing for chairman of the Malta Fiscal Authority Rene Saliba (photo above) to be considered for the post.
Asked about this, an OPM spokesperson said “the Government will announce its nomination in due course.”
Minister for Finance Edward Scicluna has said that the decision whether Mr Mifsud should even be suspended rather than step down entirely, 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.
Mr Mifsud was nominated by Cabinet to fill the post of Central Bank Governor on 1 July, pending European Central Bank (ECB) approval – ultimately he would have been reporting to the ECB as Governor.
When the story broke of Mr Mifsud’s government nomination, Journalist Daphne Caruana Galizia quoted Mr Mifsud's former partner Anna Zelbst, where she alleged that prominent businessman Ronnie Demajo, formerly of M Demajo group, went to their home at least three times between 1996 and 1998 and gave Mr Mifsud Lm50,000 in cash each time.
This allegedly happened while Mr Mifsud was chairman of Mid Med bank, and was pushing for the installation of a new American banking software called Eastpoint, through which Mr Demajo and M Demajo group were the point of contact.
When allegations surfaced, Mr Mifsud repeatedly denied these allegations, stating that the new banking software at the time was decided upon by a board, through a transparent tender process. After being contacted by this newsroom, he also said that he has never received any money from Mr Demajo, nor any expensive gifts.
“He may have sent me a bottle of whiskey or wine, I don’t remember. I never received any expensive gifts from him,” he said.
In two separate statements, Mr Mifsud denied allegations, and blamed them on a “failed relationship” with his former partner. In his second statement, made last week, Mr Mifsud announced that he filed a defamation complaint with the police against his former partner.
Questions sent to OPM:
Alfred Mifsud yesterday announced that he is going to withdraw his interest for the post of Central Bank Governor. Did he also ask to resign from deputy governor? If not will you be asking him to step down?
Senior ministers in your cabinet want Rene Saliba as governor. Are you going to consider him? If not whom are you going to nominate?