Prime Minister Lawrence Gonzi this afternoon defended MP Robert Arrigo over allegations that he put pressure on Sliema councillors to re-employ former contracts manager Stephen Buhagiar.

"Robert Arrigo has categorically denied this and it is not fair to turn allegations into facts," Dr Gonzi said.

He was replying to questions during a press conference held to launch the Whistleblower Act and new legislation to strengthen the Commission Against Corruption (see separate story).

Former Sliema Mayor Nikki Dimech had alleged that Mr Arrigo pressured him to re-employ Stephen Buhagiar as contracts manager after he was dismissed by the council. Mr Buhagiar was also Mr Arrigo's former driver.

This allegation was also repeated by Nationalist councillor Yves Bobby Cali', who subsequently denied making such comments. The Times yesterday published a transcript of a telephone interview in which Mr Cali made the claims. (See http://www.timesofmalta.com/articles/view/20100929/local/you-have-to-put-my-people-in )

Earlier in his press conference, Dr Gonzi alluded to the case where a false report about tendering procedures at Mater Dei Hospital was drawn up - contributing to the resignation of John Dalli from the Cabinet.

Dr Gonzi said the new Whistleblower Act would not give immunity to people who made false claims, which he pointed out, could be very damaging. (The writer of the report is serving a prison term).

"There were some in the past who even drew up false reports which caused a lot of suffering for some people," Dr Gonzi said.

However, when asked whether any action would be taken against the Dutch company which had commissioned the report on Mater Dei, Dr Gonzi said he would not reply to hypothetical questions.