The Finance Ministry is probing corruption allegations made against Central Bank of Malta deputy governor Alfred Mifsud.

Mr Mifsud. Photo: Darrin Zammit Lupi

The allegations surfaced on Daphne Caruana Galizia’s blog last weekend and concern the time when Mr Mifsud was chairman of Mid Med Bank between 1996 and 1998.

Ms Caruana Galizia alleged that Mr Mifsud received hard cash totalling thousands of Maltese liri from a Maltese businessman. The businessman was allegedly the representative of an American software company tasked by the bank to change the IT system.

Mr Mifsud has denied receiving any money, insisting the software company won a competitive tender. The decision, he added, was taken by the bank’s board.

In May last year, Mr Mifsud was appointed deputy governor of the Central Bank, responsible for monetary affairs for a five-year term. He is being touted as the likely successor to governor Josef Bonnici when his term ends next month.

Asked about the allegations, a spokeswoman for the Finance Ministry said: “The minister can confirm that the allegations concerning the Central Bank of Malta deputy governor are being looked into.” She did not elaborate.

This newspaper wanted to know whether Mr Mifsud was asked for an explanation and whether a probe had started.

@edward_scicluna Walk the talk. Start Parl scrutiny of high ranking officials now with CBM Governor designate. #good governance @PNmalta

— Kristy Debono (@KristyDebono) June 15, 2016

Nationalist MP Kristy Debono last night raised the issue in parliament, asking Finance Minister Edward Scicluna whether he was comfortable having Mr Mifsud assume the Central Bank governorship – and with it a seat at the European Central Bank’s governing council – given the allegations. .

“We can’t get it wrong again, this time round. The stakes are too high,” she said, arguing that Malta risked making international headlines “for the wrong reasons.”

Prof. Scicluna alluded to the investigation, saying that a due diligence process would take the claims into account. 

The minister also said that the government was working towards a system whereby government entity chairpersons and other high-ranking officials would face a grilling by MPs before assuming their roles.

Mid Med was government owned. The bank was sold to HSBC in 1999.