Prime Minister Joseph Muscat this morning said that he will be filing for libel against ICIJ journalist Matthew Caruana Galizia, who won the Pulitzer Prize last month together with colleagues who worked on the Panama Papers scandal.

Dr Muscat said that the journalist alleged that he had taken kickbacks and invented a story about him, and now he must face his responsibilities. “I will not accept this,” Dr Muscat said during a press conference this morning.

"For the record, since there are rumours flying around, neither me nor my wife have any interest in a fashion company and we are not building another house."

Matthew Caruana Galizia has uploaded a series of posts on his Facebook page linked to the revelations made in the Panama Papers last year. He has also uploaded documents to back up his claims.

The International Consortium of Investigative Journalists last year uncovered what has become known as the Panama Papers scandal, which has rocked the Maltese government's foundations and eventually forced the Prime Minister to call an early election.

Last month, the journalists who worked on the Panama Papers, including Matthew Caruana Galizia, were awarded with the highest prize in journalism, the Pulitzer prize.