Controversy was brewing but an audit firm’s letter to a government agency complaining of undue pressure by a public official was only one side of the story.

The letter by the audit firm BDO was published by Labour spokesman Leo Brincat on Monday.

In the letter, dated January 4, the firm claimed it had been threatened by Alan Caruana, the government-appointed chairman of Malta Government Investments, to change its opinions on the assets inventory of government waste management company Wasteserv.

But in a strong rebuttal yesterday, Malta Government Investments, a majority shareholder in Wasteserv, said it never threatened BDO.

MGI said there was a second letter after the one that was made public, in which Wasteserv had explained its objections to the assessment.

Subsequently, BDO and Wasteserv reached an agreement on the way forward and the audit firm, contrary to what Mr Brincat claimed, was re-appointed auditor of the government company.

“Unfortunately, this was a clear example of unethical and malicious political play,” MGI said, adding Wasteserv’s accounts were published with the Malta Financial Services Authority in March.

In a counterstatement, Mr Brincat said the government failed to explain how it reacted to BDO’s claims when the company flagged up Mr Caruana’s questionable behaviour.

And in yet another statement, the Finance Ministry said later that Mr Brincat’s allegations were clearly unfounded and he was trying to create a storm in a teacup.