A senior shipmaster dropped a civil lawsuit against Gozo Channel after he was formally suspended by the company's board.

The ferry company decided to pay both the court fees and the legal expenses incurred by Captain Mario Grech, Gozo Channel chairman Joseph Grech said.

The case started in September after Capt. Grech filed a judicial protest claiming lack of lifesaving equipment and safety drills aboard the ferries and alleging Legionella's bacteria was present in their water supply.

He was taken off the roster pending the outcome of an internal inquiry into his allegations, called by Finance Minister Tonio Fenech.

The inquiry dismissed all but one of Capt. Grech's claims, that a boatswain had used a forged certificate to get a promotion. In fact, this had led to the officer getting a suspended sentence for forgery and the company's former HR manager facing charges.

Dr Grech confirmed that Capt. Grech had dropped the lawsuit on Tuesday and said the company would pay the legal expenses. "We decided to do so based on the legal advice we were given."

The captain was formally suspended, as opposed to not being included on the roster, and was still on full pay, as was decided in a board meeting held last month, Dr Grech said.

On Tuesday, Capt. Grech informed the Gozo court, where the case was being heard, it was superfluous to continue after he was formally suspended.

Despite being suspended, it is still not clear what his fate will be. Dr Grech said Gozo Channel could not decide on Capt. Grech's future at the moment.