The issue was raised by Labour leader Alfred Sant during a mass meeting in Mosta on Sunday. Dr Sant claimed that Mr Dalli used his position as a minister to divert work from an Iranian company. This company, which Dr Sant referred to as “IRSL” had its own agents in Malta which it had used before. However, Dr Sant claimed, this company was sidelined and a different company, in which members of Mr Dalli’s family have business interests, was chosen.

Dr Sant continued that Prime Minister Gonzi knew about the issue and claimed that he (Dr Gonzi) planned to let the matter lie in view of the 12 June European Parliament and local council elections.

He called on Dr Gonzi to investigate the matter, adding that lack of transparency led to uncertainty which was detrimental to the country.

Rumours flew high all throughout yesterday that the government was considering removing Mr Dalli as Foreign Minister. However, when contacted, a spokesman for the OPM said he would check what Dr Gonzi’s comments on the issue were.

Some time later TMID received an email from the OPM stating: “the Prime Minister is collecting information about this case”. No more comments were received.

Attempts to contact Mr Dalli and his communications coordinator for comments on the matter proved futile.