Edward Scicluna is set to retain his Central Bank salary with Robert Abela saying on Tuesday that the terms of Scicluna's employment "will not change". 

The prime minister clarified that Scicluna had not been sacked as governor but was temporarily stepping away from the role. 

He spoke to journalists following a lengthy cabinet meeting, after which it was announced that Scicluna has stepped aside from his role as Central Bank boss by “mutual agreement”. 

Abela said Scicluna's decision to step aside has increased his level of integrity and that his decision is higher than the standards expected from him. 

In a short statement, the cabinet said it had taken note of Scicluna’s request to the European Central Bank governor Christine Lagarde to step aside pending the outcome of his hospitals’ court case.

The Prime Minister had convened cabinet to remove Scicluna after a court ruled there was sufficient evidence for him and others to stand trial over the hospital's deal. 

When Times of Malta asked for details on the mutual agreement, if Scicluna would receive his full pay or compensation, Abela failed to give a direct answer. 

“The reply to your question arises from the condition of the fact that Professor Scicluna is not occupying his role temporarily,” Abela said. 

He said there is still the presumption of innocence and that Scicluna has not been found guilty by any court and pointed out the regulatory framework regarding the dismissal of the Governor of the Central Bank, referring specifically to what happened to the  Latvian Central Bank Governor. 

When pressed further if Scicluna's conditions will change, Abela said his employment conditions remain the same as Scicluna will be temporarily suspended, and emphasised he is not sacked. 

Scicluna's decision is in the nation's interest 

Abela said he was convinced that Scicluna would reach the correct decision and not continue to occupy the position of the central bank governor. 

Abela said Scicluna's decision to step aside shows not only his respect for the autonomy of the Central Bank, but showed his level of respect and integrity. 

He said despite the “strict parameters” Scicluna faced, and the fact that the European Central Bank has always protected similar cases of their governors from other respected central banks, Scicluna took the decision which showed his integrity and moral behaviour.

He said that Scicluna's decision increased his integrity and that he respected his decision. 

"His decision increased his level of what the law applied, (...) he looked at the importance of preserving the integrity of our banking, financial sector and the integrity of this country," he said. 

When asked if Abela had the full support of his cabinet in the decision, Abela said to “disregard” certain reports, and that cabinet had unanimously backed him.