Prime Minister Joseph Muscat has remained silent after he was caught lying to defend the latest scandal relating to the bank guarantee of Crane Currency, a project that will be of financial benefit to Dr Muscat’s chief of staff Keith Schembri, the Nationalist Party said in a statement.

When the Crane Currency investment was announced, the PN said, a conflict of interest held by Mr Schembri was immediately identified. While he was “instrumental in the negotiations with the company,” Mr Schembri knew of his commercial interests through his company, Kasco Ltd, and it could be that he received money from commissions coming from the purchase of machinery for Crane Currency.

Last week Dr Muscat lied when he was responding to journalists’ questions, categorically denying that Crane Currency was granted some form of a bank guarantee from this government. The PN provided a video clip (above) of Dr Muscat's reply. It has now been revealed that Dr Muscat was lying, the PN said, and the company that Mr Schembri brought to Malta will be given a loan guarantee of millions of euro from the taxes of the people of Malta and Gozo.

This is the second guarantee given by the government, just a few months after the public became aware that it made good for a bank guarantee of €360 million to Electrogas to build the new power station.

At this stage, Dr Muscat should give the details of the bank guarantee granted to Crane Currency, and explain why he lied when asked by a journalist.