“That was something that surely did not happen. There was absolutely no frame-up. We all know what the circumstances were,” Dr Gonzi told journalists after the swearing-in of Michael Frendo as Foreign Affairs Minister at The Palace in Valletta yesterday afternoon.

A grim-faced Dr Gonzi, who was obviously not having one of his best days, had to face the large media pack waiting for him outside the main exit of The Palace after they were pushed away from the arched entrance by the AFM.

“This morning I received a letter from Minister Dalli in which he tendered his resignation and what motivated him to take this decision. I wrote back accepting his resignation,” Dr Gonzi said.

“This morning I asked the President to appoint Michael Frendo as Foreign Affairs Minister. The part of the Ministry dealing with Investment Promotion will now fall under the responsibility of Minister Austin Gatt, whose Ministry will now become the Ministry for Investment, Industry and Information Technology.

Asked about the allegations made against Mr Dalli, Dr Gonzi said: “Mr Dalli explained this in his letter where he denies the allegations and in the circumstances he felt he could not continue as Minister accepted his resignation. In my reply accepting his resignation I said that from the information I have on the IRISL case, it does not seem that the allegations are substantiated.”

Pressed to give his opinion about the report Mr Dalli had given him, Dr Gonzi said: “My position is that he has tendered his resignation. He explained why he was offering his resignation. The reasons are public now and I thought it fit that in the circumstances, I had to accept his resignation.”

Asked by The Malta Independent on Sunday whether there had been any wrongdoing by John Dalli, Dr Gonzi said: “I think I took my decision after Minister Dalli offered his resignation. I deemed it fit that I should accept it.”