Updated | Edward Scicluna tenders suspension as Central Bank governor pending court charges

Updated at 6:30pm with Cabinet statement

Edward Scicluna has tendered his suspension as governor of the Central Bank of Malta pending court charges against him regarding the Vitals fraud scandal. 

In a statement, the Cabinet of Ministers said it noted Scicluna's request to the ECB President that he no longer exercise the functions of a governor of the Central Bank until the court proceedings are over. Deputy governor Alexander Demarco will instead assume these functions.

"The Cabinet of Ministers understands that this decision, taken by Professor Scicluna, is in the national interest," the statement reads.

Ministers were tight-lipped as they exited a Cabinet meeting in Castille on Tuesday. Approached by journalists, Cabinet members released no comment, saying a statement will be issued by the Office of the Prime Minister.

Sources have told MaltaToday that not everyone in Cabinet agreed with the Prime Minister's decision to kick out Scicluna, in what would have been a legally questionable move. Instead, ministers appear to have settled on a compromise that would see Scicluna "suspended pending the outcome of the case" against him.

"There was no agreement to kick Edward Scicluna out and a compromise had to be reached similar to what happens in the civil service when an employee is charged in court," a Cabinet member who spoke on condition of anonymity said. Public sector employees are normally suspended on half pay.

Another minister said the meeting was anything but smooth.

The Cabinet met to discuss a proposal put forward by the Prime Minister to kick out Scicluna from his post after a court ruled last week that the CBM governor should stand trial over the Vitals corruption case.

On their way in, ministers were cagey on where they stood on the issue with some referring to Abela’s public comments that Scicluna should step down. Housing Minister Roderick Galdes was the only one to praise Scicluna.

Scicluna was facing pressure to resign after a magistrate last week decreed there was enough prima facie evidence for him to stand trial in the Vitals corruption case. The court ruled that all people charged before it, including former deputy prime minister Chris Fearne, should stand trial.

Fearne had already resigned from Cabinet when the charges were first filed and last week when the court confirmed he should stand trial also announced his departure from Labour Party deputy leader parliamentary affairs.

Scicluna has resisted calls for his resignation from the Prime Minister, the Opposition and civil society organisations. Last Friday, the government removed Scicluna from the board of governors at the Malta Financial Services Authority. A day earlier Abela had said in an interview he hoped Scicluna would resign before Cabinet meets on Tuesday.

Scicluna is insisting that the Central Bank is autonomous and nobody can push him out unless he is found guilty.

A Cabinet decision to force him out would be unprecedented although it seems the Prime Minister has climbed down from adopting this heavy-handed approach.

Meanwhile, the government has refused Opposition leader Bernard Grech’s request to urgently convene parliament for a debate on Scicluna’s refusal to step down.

On Monday, Grech told the social partners at the MCESD that a parliamentary debate on the Scicluna impasse could have been an opportunity for the government and the Opposition to put up a show of unity.

READ ALSO: MaltaToday Editorial | Why Edward Scicluna should step down

Meanwhile, the Nationalist Party criticised Prime Minister Robert Abela for "his weak leadership", following the Cabinet's rejection of his proposal to dismiss Central Bank Governor Edward Scicluna, who is facing legal charges.

In a statement, the party argued that Abela's inability to remove Scicluna, involved in a major fraud case, is damaging to the country's reputation. They called for Parliament to reconvene urgently to discuss Scicluna's position.

They also highlighted Abela's lack of authority and control within his party, suggesting he is being overshadowed by factions within the Labour Party.