The Central Bank has decided not to take any action against Deputy Governor Alfred Mifsud.

Allegations surfaced against Mr Mifsud in Daphne Caruana Galizia’s blog, when she quoted Mr Mifsud’s former partner, Anna Zelbst, saying that Ronnie Demajo had come to their home between 1996 and 1998 at least three times, to pay Mr Mifsud Lm50,000 in cash each time.

At the time, Mr Mifsud was chairman of Mid Med Bank, while Mr Demajo, through the M Demajo group, represented an American banking software system known as Eastpoint. Mrs Caruana Galizia and Ms Zelbst are claiming that Mr Demajo therefore passed on the large sums of cash to Mr Mifsud as a bribe, in order to get him to change Mid Med banking software to that of Eastpoint.

Mr Mifsud has 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 even filed a defamation complaint with the police against his former partner and sued Daphne Caruana Galizia for libel.

The Central Bank discussed the allegations and found no sufficient grounds on which they could make any assessments. It also reported that board members were reluctant to go into the issue as most believed it was an issue for the police.