Minister urged to address allegations surrounding Central Bank governor-designate

Finance Minister Edward Scicluna has been urged to reassure that the government was looking into allegations surrounding Alfred Mifsud, who is set to become the governor of the Central Bank in the coming weeks.

Reports that emerged this week accused Mifsud - currently deputy governor - of taking “a significant amount of cash form a well-known businessman when he was chairman of Mid Med Bank” between 1996 and 1998.

When contacted by MaltaToday, Mifsud yesterday denied the allegations.

“These allegations are strongly denied as fruit of revenge garbage from a personal failed relationship and attempts to torpedo my next appointment. Raising 18-year-old garbage on the even of an important appointment speaks for itself as to motivations,” he said.

Addressing parliament this evening, Nationalist MP Kristy Debono however insisted that a denial by Mifsud was not enough and the government – mainly the Finance Minister – should reassure and give the peace of mind that there was no truth in the allegations made.

“I’m not trying to score political points,” she said, adding that such a sensitive appointment should not be carried out under any shadows.

Reacting to Debono’s concerns, Scicluna insisted that appointments in such sensitive posts are taken seriously. “The necessary due diligence will take place,” he said.

Scicluna went on to add that the Labour government would be honouring an electoral pledge in that individuals at the helm of a public entity or authority will be subject to scrutiny by a parliamentary committee. The Cabinet of ministers is currently agreeing on the parameters.

Debono said that, through his appointment, Mifsud will also be sitting on the governors’ board of the European Central Bank, representing Malta, rendering allegations surrounding his part an international matter.

“Malta should not launch itself in another controversy which would mar the credibility of our sound financial sector.”

Debono insisted that her appeal went beyond political, financial, commercial and private ties that Mifsud could have had in the past.

The MP insisted that this should be an opportunity to send a clear message that Malta was appointing a credible person, especially in view of how Malta had been dragged into the Panama Papers revelations.

“I am sure the Minister understands me when I say that we can’t get it wrong again. The stakes are too high. I am certain that the Minister is aware that the spotlight is on Malta,” Debono told the House of Representatives.

A 65-member European Parliament committee is expected to carry out a serious inquiry into the way beneficial owners are allowed to hide their identities, before summoning people like minister Konrad Mizzi – the only EU minister to have set up a Panama offshore company through Mossack Fonseca to hide his beneficial ownership while in office – to answer to the inquiry.

A member of the MEP committee has told MaltaToday that Mizzi should “consider” preparing for an invitation.

Debono insisted that Malta risked hitting international headlines for the wrong reasons if allegations surrounding Mifsud are not addressed and cleared. She went on to add that it was not enough for Mifsud “to simply deny the allegations over a phone call” and insisted that Scicluna should state what investigations are underway to ascertain that there had been no wrongdoing.