Scicluna debacle: Robert Abela hoist by his own bullish attitude

Despite having dubious legal grounds, Robert Abela publicly hinted at Edward Scicluna’s forced removal if he did not resign but ditched the heavy-handed approach after ministers baulked

Robert Abela (left) wanted to force Edward Scicluna out but had to recant and reach a toxic compromise that sees the Central bank governor step aside but retain his pay and perks
Robert Abela (left) wanted to force Edward Scicluna out but had to recant and reach a toxic compromise that sees the Central bank governor step aside but retain his pay and perks

Robert Abela emerged politically weakened from Tuesday’s Cabinet meeting after ministers baulked at his proposal to remove Edward Scicluna on shaky legal grounds.

The Prime Minister may have told journalists on the steps of Castille that he had Cabinet’s unanimous support but his reply belied what truly went on inside the five-hour-long meeting.

The final compromise reached three hours after the Cabinet meeting ended, saw Scicluna step aside from his role of governor while still enjoying his lucrative pay and all his perks. It was an auto-suspension and a far cry from what Abela wanted and had publicly called for.

A source close to government, who spoke on condition of anonymity like others in this report, said the Prime Minister was hoist by his own petard.

“The problem was Robert Abela’s bullish attitude in his interview with Newsbook where he hinted that Cabinet would remove Edward Scicluna from CBM governor if the latter refused to resign by Tuesday,” the source said, adding: “Robert Abela publicly committed his ministers to a decision that he knew was based on very shaky legal grounds.”

This interview was followed by a report in The Sunday Times of Malta that quoted unnamed sources saying Cabinet would be removing Scicluna from governor on Tuesday.

Another source close to Cabinet told MaltaToday the STOM story was a reflection of the Prime Minister’s intention to remove Scicluna forcefully unless he departed.

However, by Tuesday it became clear that Scicluna was not going to leave of his own accord and the government also had pressure from European Central Bank chief Christine Lagarde not to move ahead with removal.

“Robert Abela entered Tuesday’s Cabinet meeting subdued and also found ministers unwilling to play ball with his idea of forcing Edward Scicluna out,” the source said.

Some Cabinet members questioned the legality of such a draconian move in light of the Central Bank of Malta Act and the rules that govern the European Central Bank, which preclude the removal of the governor unless he is convicted of a crime.

Other members questioned the political savviness of kicking out ‘yet another Labourite’, which they claimed would be interpreted by the party grassroots as ‘giving in to the Nationalists’.

In the face of opposition, Abela was forced to recant and seek a compromise that was legally sound and did not humiliate Scicluna.

A third source told MaltaToday that Cabinet was suspended until Scicluna was spoken to by a group of ministers, who convinced him to auto-suspend himself.

“The problem is that the final decision left Robert Abela with egg on his face after publicly giving Edward Scicluna an ultimatum to resign or else be forced out by Cabinet,” the source added.

A fourth source within the Labour Party said the Prime Minister emerged weakened from the Cabinet since the outcome represented yet another U-turn.

“The manner by which Robert Abela handled the Scicluna affair was typical of how he handled the abortion issue when he did an about turn on what he had declared to be his principle, the Jean Paul Sofia public inquiry when he changed his stand after first committing the Labour parliamentary group to voting against an inquiry, and the Rosianne Cutajar affair when he first forced her out, then re-opened the door only to change his mind again and insist she first make an apology,” the source said.

Scicluna’s auto-suspension was communicated by the Department of Information in a short statement issued on Tuesday evening.

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 against him are over. Deputy CBM 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 read.

Scicluna faced pressure from several quarters to resign from the CBM after a magistrate ruled he should stand trial over the Vitals corruption case. The Opposition had even requested parliament be reconvened for an urgent debate on Scicluna’s refusal to step down. However, the request was turned down by the government with Abela insisting the matter fell within Cabinet’s remit.