Update 2pm - PN MP Kristy Debono wants Mifsud suspended
Central Bank deputy governor Alfred Mifsud told the Times of Malta that he did not hold any offshore accounts.
Mr Mifsud, who is being touted to take over the governor role next month, says the only foreign account he has is in the UK.
“I hold a current account with Barclays London where I keep practically no balance – rarely exceeding £500,” Mr Mifsud told this paper in reply to questions.
Mr Mifsud is the founder of Crystal Finance, which once employed Prime Minister Joseph Muscat. He was made deputy governor for monetary affairs last May in a move widely seen as a precursor to him being made governor of the Central Bank, which is an independent institution.
The Finance Ministry is looking into corruption allegations made about Mr Mifsud by blogger Daphne Caruana Galizia.
Ms Caruana Galizia reported last weekend that Mr Mifsud received thousands of Maltese liri in cash from a Maltese businessman. The businessman was allegedly the representative of an American software company tasked by the bank to change the IT system.
Mr Mifsud has denied receiving any money, insisting the software company won a competitive tender. The decision, he added, was taken by the bank’s board.
Ms Caruana Galizia also reported that Mr Mifsud was put on a retainer by tobacco giants Philip Morris in 2011 and 2012 while former EU health commissioner John Dalli was pushing through a new tobacco directive.
I was left with no option but to file libel
Documents leaked in 2013 show how Philip Morris spent “millions” in order to undermine EU efforts to make cigarettes less attractive to children and women, and to force packs to carry larger health warnings.
Mr Mifsud has admitted to meeting Mr Dalli during this period though he denies ever discussing tobacco issues.
Mr Dalli resigned from his post in October 2012 after an investigation by the EU’s anti-corruption watchdog found circumstantial evidence that he was aware of a €60 million bribe solicited by his former canvasser to reverse an EU ban on snus tobacco.
Mr Mifsud told the Times of Malta that he denies all allegations made against him, and in a statement yesterday said he had filed libel proceedings against Ms Caruana Galizia.
He said he fully declared the fees he received from Philip Morris in both his VAT and tax returns.
“After I explained to the said blogger that their sources are untrustworthy and motivated by revenge and hate from a failed personal relationship (after refusing unreasonable demands for financial settlement) I was left with no option but to file libel,” Mr Mifsud said in a statement.
“Obviously once legal action started, further comments will be reserved for the courtroom.
“With 47 years uninterrupted experience in financial services without ever being accused of impropriety, I cannot be expected to prove my innocence rather than the accusers proving their allegations,” Mr Mifsud said.
This paper asked the Finance Ministry if any sort of due diligence was carried out on Mr Mifsud prior to him being made deputy governor, and if there were any plans to postpone his new appointment.
No replies were received by the time of going to print.
The Times of Malta reported on Wednesday that the Finance Ministry was investigating the corruption allegations. A spokesman for the European Central Bank said no comment could be provided at the moment.
Mr Mifsud will sit on the ECB’s general council if made governor.
Nationalist MP Kristy Debono, who mentioned allegations against Mr Mifsud in parliament this week, wants Mr Mifsud suspended.
In a tweet directed at Finance Minister Edward Scicluna, she said a new governor-elect should be nominated in his stead.