Joseph Muscat said he does not fear being arrested, amid reports that a magisterial inquiry into the hospitals' deal is nearing completion.

Asked by Times of Malta whether he fears arrest following the outcome of an inquiry into the Vitals Global Healthcare (VGH) deal, the former prime minister dismissed the question.

“Why should I? Are you afraid as well?” he said, flanked by his security detail outside parliament. “I’m not afraid."

He said he has faith in the institutions to do what is right. 

Last year, police searched Muscat's Burmarrad home as part of a corruption probe into the Vitals Global Health (VGH) deal. The magisterial inquiry is expected to recommend action against high-profile individuals. 

Sources briefed on developments said police commissioner Angelo Gafá has resisted carrying out any arrests before the inquiry into the deal has been concluded, and all the evidence gathered during the four-year probe handed to the police. 

Last week, Muscat made his case in court for the magistrate leading the inquiry to be removed, claiming Gabriella Vella "took the side" of her father and brother over comments they made on social media.

The former prime minister was fielding questions as he walked out of a two-hour hearing before parliament’s Public Accounts Committee on Tuesday afternoon.

He said he is convinced that Konrad Mizzi was acting in good faith throughout the Electrogas deal. 

Will not drop libel case

Muscat also decisively said he will not drop his libel case against the family of slain journalist Daphne Caruana Galizia over her claims that secret offshore company Egrant belonged to his wife Michelle.

On Monday, the Caruana Galizias filed constitutional proceedings claiming that continuing with the libel would breach their fundamental rights. They argued that any evidence the journalist had "died with her" when she was assassinated. 

But Muscat is adamant on going ahead with the libel. 

“No, of course not,” he answered when Times of Malta asked him whether he intended to drop the libel in the context of the Caruana Galizias’ appeal.

“Mrs Caruana Galizia had already testified in a magisterial inquiry,” he said as he walked inside his car.

Muscat has previously said he will only drop the case if the Caruana Galizia family accept the outcome of a magisterial inquiry that found there was no proof linking the Muscats to the Panama company.