Prime Minister made aware of John Dalli investigations in July

The Nationalist government was made aware of the investigations by OLAF on former EU Commissioner John Dalli on 5 July 2012, and assisted OLAF, the EU anti-fraud unit, in its investigations, the government has announced.

Dalli stepped down as commissioner on 16 October after he was read the covering letter from an investigation by the EU's anti-fraud office OLAF, claiming there was circumstantial evidence that he was aware of an attempt by a Sliema restaurateur, Silvio Zammit, to solicit a bribe from snus producers Swedish Match, ostensibly to reverse an EU-wide ban on snuff, which can only be sold in Sweden. Dalli has denied being aware of Zammit's advances to the company.

In a statement issued at 6am on Tuesday and sent to the press, in reply to questions sent by the Times, the OPM said: "On the 5th of July 2012 he (the Prime Minister) received information from the Cabinet Secretary Dr Godwin Grima that OLAF representatives were in Malta investigating a matter related to then Commissioner John Dalli. This information was communicated by AFCOS (Anti Fraud Coordinating Services - the Malta interlocutor of OLAF) to the Cabinet Secretary but no further details were made available."

The OPM added that at a later date, Grima updated the Prime Minister and informed him that John Dalli was aware of the investigation.

"The Prime Minister called John Dalli and asked him what this investigation was about. John Dalli stated that he knew about the investigation and that the matter was being clarified by him directly with OLAF," the statement said.

In regards to the government's actions since then, the OPM said that the Prime Minister "immediately instructed the Cabinet Secretary to make sure that full cooperation was afforded to OLAF by all concerned."

It also pointed out that prior to the 17 July PN Executive Meeting, when former EU Ambassador Richard Cachia Caruana was cleared of all allegations levelled at him by MP Jeffrey Pullicino Orlando, there was a telephone call as well as a meeting at John Dalli's request on the 19 July at 11:00am at Castille.

The OPM said: "The telephone call and the meeting dealt with his allegations regarding hacking and with allegations regarding a list of seven persons."

Speaking on One Television on Monday evening, John Dalli said that he suspects a Maltese hand was behind the whole saga, however he added that he has no proof of this. In the same interview, Dalli also noted that judging from the government's swift decision to appoint Tonio Borg as his replacement, "it seems that everything was planned."

Meanwhile, in a letter sent to the Members of the European Parliament yesterday, Dalli reiterated that he "categorically denied being aware of any negotiations or communications" that could have taken place between Maltese restaurateur Silvio Zammit and snus producer Swedish Match.

Dalli, who has always claimed he was asked to resign, said he was objecting to the way his resignation took place. For the first time today, a spokesman for the European Commission confirmed with journalists in Brussels that Dalli was asked to resign.

However, Dalli told MEPs that he had been "deprived of my right to defend myself" and he was not "even given 24 hours" to consult with his lawyers or inform family members.

"I was only given 30 minutes," Dalli said, adding that he still had no access to the OLAF report and knew nothing of what circumstantial evidence was quoted against him.

Dalli also complained that his "right of presumption of innocence" was breached by a press conference given by OLAF director Giovanni Kessler. "He repeatedly and assertively stated his conjectures, again without stating their basis," he added.

He went on to say that OLAF has not yet informed him on what evidence "they have based conjectures", adding that thus he was being denied the opportunity to defend himself.

"I categorically refute these conclusions, and am presently seeking advice on what legal action I can take to protect my reputation," Dalli said.