The Nationalist Party has once again challenged Prime Minister Joseph Muscat to take action against his deputy Konrad Mizzi and his personal assistant Keith Schembri who set up secret companies in Panama.

Addressing a news conference, PN deputy leader Beppe Fenech Adami said that although the Prime Minister was shooting from the hip to defend his two most trusted people, he could not defend the indefensible as people lost all trust in his government.

"Dr Muscat has to take action and sack Dr Mizzi and Mr Schembri. If he does not do this the people would reach their own conclusions as to why.

Dr Fenech Adami said Dr Muscat resotred to 'blatant lies' when he said that his minister had already paid a fine for breaking the income tax law.

Dr Mizzi admitted to breaking the law less than 24 hours before the Prime Minister said that he had paid it.

Dr Fenech Adami also said that Mr Schembri’s position as Dr Muscat’s most trusted person in Castille had raised eyebrows since day one. He said the news of his secret Panama company only made things worse.

Dr Fenech Adami said that despite his public announcement, the PN was still waiting for Mr Schembri to file libel proceedings.