Robert Abela insisted on Tuesday that he removed Clayton Bartolo from the cabinet and the Labour parliamentary group as soon as he learnt about an FIAU investigation that was flagged by Times of Malta.
"Questions were sent by Times of Malta, and I became aware of what was being alleged. I took account of the facts and then the decision was taken," the prime minister said.
Asked if he took the decision to remove Bartolo as soon as he learnt about the investigation, Abela said that was the case.
Bartolo was made to resign as tourism minister on Tuesday morning because of an FIAU investigation into a suspected kickback scheme where Bartolo's wife, Amanda Muscat, recieved some €50,000 from a company linked to a Malta Tourism Authority contractor.
Investigators from the FIAU, Malta’s anti-money laundering body, flagged those payments to the police, saying they were suspicious.
Bartolo had already been under pressure to quit after a Standards Commissioner investigation found he and Gozo minister Clint Camilleri abused their power when they gave Muscat lucrative consultancy jobs that, Bartolo's then-girlfriend never did.
Abela said the two cases were different and he would not be seeking Camilleri's resignation.
Clear distinction between the two cases
"There is a complete distinction between the Standards Commissioner's report and this case," Abela said adding that the Standards report was an "ethical issue".
He confirmed that the extra money given to Muscat (for the consultancy jobs) would be refunded.
"On that case (the Standards Commissioner's report) I remained consistent, and I remain consistent regarding Clint Camilleri.... I took the decision on Camilleri and Clayton Bartolo's ministerial role immediately".
Abela said he would not be asking MTA CEO Carlo Micallef to step down despite the FIAU investigation revolving around a Malta Tourism Authority contract.
"Why should I? From what is known, there is nothing irregular in the contract. The allegation about which The Times sent questions is that something happened after that contract was awarded. Had I been told that there was something irregular in that contract, something that I exclude for now....... we can look into that," Abela said.
"I am not saying that the questions put forward by The Times mean there was any wrongdoing. Clayton Bartolo and Amanda Muscat will now be able to defend themselves on the issue. Bartolo now has the freedom of not occupying a ministerial role and so he can better defend his position".
The FIAU investigation centred on work Muscat did for a company linked to Italian cyclist Valerio Agnoli in 2023 after Agnoli was hired by the Malta Tourism Authority (MTA) in 2021 on an “ad hoc” basis to promote cycling tourism.
The arrangement was formalised last year with Agnoli being put on what a Tourism Ministry spokesperson described as an” all-inclusive remuneration of €20,000 per annum”.
Muscat was hired by an Agnoli-linked company in mid-2023, and her work ended in December of that year. In that time she was paid around 50,000.
Investigators suspect the payments to Muscat could be a kickback for the MTA contract.
Asked if Bartolo would be handed a termination benefit and ministerial pension, Abela said the matter was being processed by the cabinet office. "There is a process that one must go through. If he is entitled he will be given what he deserves," the PM said.
As to whether he saw a future for Bartolo in the Labour parliamentary group and the government, the prime minister said it was too early to say.
"About the allegation reported by you (Times of Malta), we have to see where the process will lead and I am not in a position to comment about his shortcomings" Abela said, reiterating that Bartolo would now be able to defend himself.