The Prime Minister has said that the Nationalist Party leader is building all his accusations regarding the Egrant case on the testimony of a whistleblower who is accused of fraud.

Speaking in Brussels to a TVM journalist after the Brexit summit – The Malta Independent was not invited to cover the event – Dr Muscat said “this reflects badly on the character” of the Opposition Leader.

The PM launched an inquiry after it was revealed that his wife Michelle is the owner of a company opened in Panama that was named in the Panama Papers, an allegation he refuses. The Opposition Leader has also testified in the ongoing inquiry.

He said he was pleased that the whistleblower had given her testimony in court in an inquiry he had launched. He said he cannot confirm that she had not presented any documents, but reports in some media had not been denied.

He said the whistleblower has been accused of fraud, falsification of documents and submitting false reports to the police. Although she is facing such charges, the Prime Minister said he will not pass judgment on the whistleblower. Instead, he attacked PMN leader Simon Busuttil for building his case on the testimony of this person.

On the resignation of Godfrey Farrugia from Labour whip, the Prime Minister said he had been informed of this decision this morning. He said there are part of the letter with which he agreed with Dr Farrugia, and other which he doesn’t, but he looks forward to working with him as a Labour MP.

In reply, the Nationalist Party said that Prime Minister Muscat has attacked a whistleblower who is uncovering the truth.

The criminals of Castille have become more dangerous, the PN said in a statement. In no other democracy would you find a PM who attacks a whistleblower to save himself.

A serious Pm protects whistleblowers, not attack them. But Muscat is a danger to democracy, and his position should not be in politics.

The PN said it is holding the national TV station responsible for allowing it self to be "used by criminals to continue committing criminal acts". If the PM's comment - a comment from a person who is being criminally investigated - is broadcast on the national station tonight, TVM would be breaking the broadcasting law, the PN said.