Labour has said it expects Prime Minister Lawrence Gonzi to come clean on the Brazilian company he was boasting about, saying his credibility was “at stake”.

The party challenged Dr Gonzi to tell the truth and confirm whether the company’s name was Odebrecht and whether it had fired its four employees.

Addressing a press conference, Labour MPs Gino Cauchi and Chris Cardona said the Prime Minister first announced the company in February during a debate organised by The Times. He had said that a large Brazilian company was planning to relocate to Malta.

Mr Cauchi said Dr Gonzi had ignored parliamentary questions on this company until, during a debate on Friday, he said it had moved its headquarters from Brazil to Malta.

He pointed out that Odebrecht Construction Malta Ltd and Odebrecht Engineering and Construction Ltd had already been registered in Malta on September 5, 2007, and a third company – Odebrecht Solutions Malta Ltd – was registered here last May.

Mr Cauchi said that while Dr Gonzi was saying the company had moved its headquarters to Malta, Finance Minister Tonio Fenech stated it had moved its back office here.

Dr Cardona said the Prime Minister should come clean about the situation because “his credibility is at stake”.

He said the Brazilian company had sacked its employees and had ceased to operate. He asked why this had happened.