Alfred Mifsud has questioned whether Edward Scicluna’s decision to “cling on” as central bank governor serves the organisation’s best interests.
Mifsud was tipped to be made governor in 2016, only to withdraw from the race after facing allegations of corruption by assassinated journalist Daphne Caruana Galizia.
He resigned his role as deputy governor in 2017, three years ahead of the expiry of his term, back when Scicluna was still finance minister. Unlike Scicluna, Mifsud was never charged, and he won a libel case last year after a court found the corruption allegations, based on testimony by his ex-partner, Anna Zelbst, were defamatory.
Contacted by Times of Malta, Mifsud, who heads the financial arbiter’s office, did not mince his words about Scicluna’s situation: “The question is not what the rules say. The question is what serves best the interest of the organisation: clinging on, or let go and fight it out without harming the organisation,” Mifsud said.
Scicluna is facing mounting pressure to resign as governor, after a court ruled last week that he is to face trial on fraud charges linked to the hospitals scandal.
Ex-health minister Chris Fearne, who faces similar charges, resigned as deputy prime minister in May.
Scicluna was unceremoniously removed by the government from the Malta Financial Services Authority’s board of governors on Friday.
Times of Malta reported earlier on Sunday that the government is planning to axe Scicluna from his top role at the Central Bank this week, should he continue to refuse to resign.
Prime Minister Robert Abela said on Thursday that Scicluna’s future will be discussed in cabinet on Tuesday.
A central bank governor can be relieved of his duties if found guilty of misconduct or if he no longer fulfils the conditions required for the performance of his duties.
One senior source in the banking industry pointed out that the role of governor calls for the highest standards of integrity at all times, beyond the slightest shadow of doubt or suspicion. The source said if cabinet were to advise that Scicluna is no longer fit to fulfil his duties, it would probably be hard for him, or the ECB, to contest it.
Scicluna told Times of Malta last week that his position remained unchanged following the court decision: “I will abide by the EU treaties. We [the Central Bank] are an independent institution. We have our own rules,” he said.
Appointed on January 1, 2021, Scicluna's five-year term as governor of the central bank also includes membership in the governing council of the European Central Bank (ECB).
A spokesperson for the ECB told Times of Malta that the bank does not comment on “pending legal proceedings”.
The Opposition has called on the government to urgently recall parliament to debate the matter.
Scicluna is among a slew of government officials who have been charged over the 2016 hospitals privatisation deal. The deal was annulled last year on fraud grounds, and ex-prime minister Joseph Muscat and two of his associates have been charged with corruption and money laundering. Alfred Mifsud withdrew from the race to be central bank governor after facing corruption claims in 2016, which were since found to be defamatory.
Correction: An earlier version of this article incorrectly stated that the corruption allegations were based on testimony by Alfred Mifsud's ex-wife. The allegations were in fact, made by his ex-partner.