Issue link: https://maltatoday.uberflip.com/i/1524716
2 NEWS maltatoday | WEDNESDAY • 31 JULY 2024 2 MATTHEW FARRUGIA mfarrugia@mediatoday.com.mt EDWARD Scicluna has tendered his sus- pension as governor of the Central Bank of Malta pending court charges against him regarding the Vitals fraud scandal. In a statement, the Cabinet of Minis- ters said it noted Scicluna's request to the ECB President that he no longer exercise the functions of a governor of the Central Bank until the court proceedings are over. Deputy governor Alexander Demarco will instead assume these functions. "The Cabinet of Ministers understands that this decision, taken by Professor Sci- cluna, is in the national interest," the state- ment reads. Ministers were tight-lipped as they exited a Cabinet meeting in Castille on Tuesday. Approached by journalists, Cabinet mem- bers released no comment, saying a state- ment will be issued by the Office of the Prime Minister. Sources have told MaltaToday that not everyone in Cabinet agreed with the Prime Minister's decision to kick out Scicluna, in what would have been a legally question- able move. Instead, ministers appeared to have settled on a compromise that would see Scicluna "suspended pending the out- come of the case" against him. "There was no agreement to kick Edward Scicluna out and a compromise had to be reached similar to what happens in the civ- il service when an employee is charged in court," a Cabinet member who spoke on condition of anonymity said. Public sector employees are normally suspended on half pay. Another minister said the meeting was anything but smooth. The Cabinet met to discuss a proposal put forward by the Prime Minister to kick out Scicluna from his post after a court ruled last week that the CBM governor should stand trial over the Vitals corrup- tion case. On their way in, ministers were cagey on where they stood on the issue with some referring to Abela's public comments that Scicluna should step down. Housing Min- ister Roderick Galdes was the only one to praise Scicluna. Scicluna was facing pressure to resign after a magistrate last week decreed there was enough prima facie evidence for him to stand trial in the Vitals corruption case. The court ruled that all people charged before it, including former deputy prime minister Chris Fearne, should stand trial. Fearne had already resigned from Cabi- net when the charges were first filed and last week when the court confirmed he should stand trial also announced his de- parture from Labour Party deputy leader parliamentary affairs. Scicluna resisted calls for his resignation from the Prime Minister, the Opposition and civil society organisations. Last Friday, the government removed Scicluna from the board of governors at the Malta Finan- cial Services Authority. A day earlier Abela had said in an interview he hoped Sciclu- na would resign before Cabinet meets on Tuesday. Scicluna was insisting that the Central Bank is autonomous and nobody can push him out unless he is found guilty. A Cabinet decision to force him out would have been unprecedented although it seems the Prime Minister has climbed down from adopting this heavy-handed approach. Meanwhile, the government has refused Opposition leader Bernard Grech's re- quest to urgently convene parliament for a debate on Scicluna's refusal to step down. On Monday, Grech told the social part- ners at the MCESD that a parliamentary debate on the Scicluna impasse could have been an opportunity for the government and the Opposition to put up a show of unity. Abela climbs down on Scicluna resignation after facing opposition in Cabinet KURT SANSONE & MATTHEW FARRUGIA ksansone@mediatoday.com.mt mfarrugia@mediatoday.com.mt PRIME Minister Robert Abela has insisted that he has the full confidence of cabinet, following Edward Scicluna's decision to suspend himself as governor of the Central Bank of Malta pend- ing court charges against him re- garding the Vitals fraud scandal. Less than a week ago, Abela stat- ed that Chris Fearne and Ronald Mizzi had set "the right example" when they resigned following their indictment in relation to the fraudulent Vitals concession. He expressed hope that Scicluna would make the right decision. However, Scicluna did not re- sign like Fearne and Mizzi, but merely suspended himself fol- lowing a cabinet meeting where the goal was to remove the Gov- ernor from his post. When asked about this discrep- ancy, Abela pointed journalists to the "particular regulatory frame- work" under which the Central Bank operates. He also pointed to Scicluna's removal from the MF- SA board of directors last week, noting that the two organisations offer different parameters for Sci- cluna's removal. Abela was referring to the fact that a governor can be asked to resign only if found guilty of a crime or if he is no longer fit to carry out his duties. The Prime Minister was also asked whether he enjoyed the full support of his cabinet in light of reports that this was not the case. MaltaToday earlier reported that ministers appear to have settled on a compromise that would see Scicluna "suspended pending the outcome of the case" against him. "Disregard certain reports, everyone has their own spin. Cab- inet unanimously backed me." Abela was also quizzed on the details of the mutual agreement achieved. However, he gave no clear answer when asked whether Scicluna would still enjoy a salary or be compensated in any way. "The reply to your question arises from the condition of the fact that Professor Scicluna is not occupying his role temporarily." Meanwhile the Nationalist Party criticised Prime Minister Robert Abela for "his weak leadership", following the Cabinet's rejection of his proposal to dismiss Central Bank Governor Edward Scicluna, who is facing legal charges. In a statement, the party argued that Abela's inability to remove Scicluna, involved in a major fraud case, is damaging to the country's reputation. They called for Par- liament to reconvene urgently to discuss Scicluna's position. They also highlighted Abela's lack of authority and control within his party, suggesting he is being overshadowed by factions within the Labour Party. Abela unclear on whether Scicluna would still enjoy a salary or get compensation Edward Scicluna resisted calls for his resignation