Robert Abela would not say whether the Labour party should distance itself from Joseph Muscat in the wake of last week's revelations about the former prime minister's finances.

Speaking to reporters on Monday, Abela only said that it is not his remit to comment on an ongoing magisterial inquiry into the hospitals deal and that judicial institutions should be allowed to work with serenity.

"I will not comment on ongoing investigations," he said.

Asked multiple times by reporters whether Muscat has become a liability for the Labour party and whether it should distance itself from him, Abela simply reiterated that there is an ongoing judicial process that needs to be allowed to work in tranquility. 

The prime minister has been reluctant to comment on revelations that his predecessor was set to be paid more than €500,000 in consultancy fees from a company formerly known as VGH Europe and with links to the controversial hospitals concession. 

Robert Abela is questioned by journalists on Tuesday. Video: Jonathan Borg.

He again would not comment on the issue of whether Magistrate Gabriella Vella can impartially carry on with the inquiry.

"If I were to comment I would be exceeding the limits of what is expected of me. That issue is to be decided by the magistrate or another court," he said.

"So let's allow the judicial and institutions to take their decisions themselves. Our job as the government is to continue moving the country forward with projects, grow the economy, and ensure that every person in the country enjoys the wealth that is generated."

With reference to Muscat, he added that any person who is of interest to the investigation has every right to pursue legal remedies if the law allows them to.

Last week Muscat accused Magistrate Gabriella Vella, who is leading a magisterial inquiry into the hospitals deal, of bias and has started legal proceedings to get her recused.

The move came after Times of Malta reported that investigators suspect consultancy payments Muscat received in the months after he resigned as prime minister were intended to hide kickbacks in plain sight.

Of particular interest is €60,000 that Muscat received from companies linked to the failed privatisation of three state hospitals. 

Over the weekend Times of Malta reported how senior figures in the Labour party are becoming increasingly frustrated by revelations about Joseph Muscat and his finances, fearing they will be shackled by their former leader’s actions for as long as they remain in government.

They are also getting increasingly irked by Abela’s apparent reluctance to deal with the issue, though they concede that they do not see a way out for him.

All of this is compounded by fears about how the corruption probe into Muscat will impact the party’s voting base.

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