Prime minister Lawrence Gonzi said this morning that a €250,000 loan from a company owned by contractor Zaren Vassallo to the PN's company media.link communications was a commercial arrangement.
"This was no donation but just a loan which the Nationalist Party is paying back" he said when fielding questions by journalists over the issue.
Dr Gonzi said that since the party, like the PL, also operated commercial companies it also had to take loans to sustain its operations.
Dr Gonzi said that despite this loan, the PN did not feel in any way obliged to Mr Vassallo or any of its companies
.With regards to the self suspension of the head of security service Godfrey Scicluna, Dr Gonzi said that the police acted correctly and had investigated the case, so much so that action was being taken.