John Dalli will not be involved in areas where a conflict of interest may arise, the Office of the Prime Minister said yesterday, two days after the former Foreign Minister was appointed as a personal consultant to Lawrence Gonzi.
Mr Dalli, who has established a successful consultancy firm in the three years since he resigned from Cabinet, has also opted not to be paid for his services, The Sunday Times has learnt.
During a news conference on Thursday, Lawrence Gonzi said he had decided to engage the services of the former minister after it transpired that three "allegations" - concerning a contract for the local representation of an Iranian shipping line, the tender for the purchase of equipment for Mater Dei Hospital and the procurement of air tickets for the Foreign Ministry - were false.
Dr Gonzi said he took the decision after he discovered that the Auditor General's inquiry into the air tickets issue - which the Prime Minister himself had ordered with urgency in July 2004 in the wake of the former foreign minister's resignation - would attach no blame to Mr Dalli. The report cannot be published until a new Auditor General is appointed due to a legal technicality.
When contacted yesterday, Nationalist Party general secretary Joe Saliba said he was not consulted on Mr Dalli because this was a government matter, though he was aware of the appointment.
He added that the reaction within the Nationalist Party was positive.
Mr Saliba said that Dr Gonzi wanted to settle the issue a long time ago but could not do so because the Auditor General had not published his report. "It was unethical to allow matters to drag on and, rightly so, Mr Dalli demanded justice in relation to the accusations levelled against him," he said.
Mr Saliba refuted claims that Mr Dalli's return is in any way connected with the upcoming general election.
"Even if the economy is doing well, why shouldn't the Government try to get more valid people on board? And Mr Dalli is one such man," said Mr Saliba.
The general secretary also denied that the move was made to patch up an internal rift within the PN following the resignation of Mr Dalli.
"This shows we're a united party, in sharp contrast to the Labour Party, which has kicked out anybody who has spoken out critically against it."
Mr Saliba strongly denied rumours that the party feared Mr Dalli could force a repeat of Labour's 1998 debacle if he is re-elected to a Government with a one seat majority.
On the other hand, Labour Party general secretary Jason Micallef said he was baffled by the appointment.
"Does the Prime Minister honestly need an adviser on the economy on the eve of the election, when he has so many other individuals, including a Parliamentary Secretary, to oversee this sector?"
Mr Micallef said the body language of the Prime Minister during Thursday's press conference spoke volumes, reflecting a man with his back against the wall who had been forced to make an appointment.
The PN was clearly doing its utmost to stop Mr Dalli criticising it, as he had done for the past three years since he was defeated in the PN leadership race, he said.
"I find it rather strange though that Mr Dalli is refusing to say who stabbed him in the back. We still don't even know why he resigned in the first place," Mr Micallef said.
A spokesman for the Office of the Prime Minister said Mr Dalli will be consulted by the Government on matters related to the economy, competitiveness and negotiations.
Like other advisers to the Prime Minister, Mr Dalli may provide his services from his own office; however, the OPM said it had a fully equipped office from which he could operate.
Asked whether the Prime Minister believed that Mr Dalli could have a conflict of interest in certain areas, the spokesman replied: "No. Mr Dalli will not be involved in areas where a conflict of interest may arise."
The OPM said that Dr Gonzi and Mr Dalli were aware that the Auditor General's report had exonerated the former minister, even though it had not yet been released.
The Auditor himself had confirmed media claims that his report did not contain anything that incriminated Mr Dalli.
A few days ago, the former Auditor General informed the Prime Minister that he would not be publishing the report after seeking legal advice, given that he was no longer eligible to occupy his post. The report will remain unpublished until this stalemate is regularised.
John Dalli fact file
Born: October 5, 1948
Profession: Accountant
Political career: Entered politics early 1970s. Elected to parliament every time since 1987.
1987 - 1990: Parliamentary Secretary1990. - 1992: Economic Affairs Minister.
1992 - 1996: Finance Minister.
1996 - 1998: Shadow Finance Minister.
1998 - 2004: Finance Minister.
Feb 2004: Loses PN leadership contest to Lawrence Gonzi.
April 2004: Foreign Affairs Minister.
June 2004: Accused by Labour of intervening in Iranian shipping firm's choice of representative in Malta.
June 2004: Daughter's travel company implicated in ministry's travel arrangements.
June 2004: Asked by PM to provide detailed report over travel allegations.
July 2004: Resigns as minister, saying he was unable to function due to a situation "developed through strategies worked out by different interests".
July 2004: PM says claims over Iranian shipping lines are unsubstantiated.
July 2004: PM orders audit of air ticket purchases.
July 2006: Private investigator arrested for fabricating a report implicating Mr Dalli in hospital tender. Jailed two years later.
December 2006: Dalli calls on individuals in PN to come clean and remove the shadow cast over his integrity.
March 2007: During Labour activity says PN administration is detached from supporters, but vows to make political comeback.
November 2007: PM says he is cleared of all wrongdoing; appointed PM adviser.
November 2007: Sues Simed over hospital allegations.