A spokesman for the European Commission said today that nothing in the Olaf report on John Dalli indicated grounds for the removal of Olaf Director-General Giovanni Kessler.

During the mid-day briefing, the Commission regretted the leakage of the OLAF report on 'Dalligate' and insisted that former Health Commissioner John Dalli had resigned in October because his position was politically untenable in the wake of the Olaf report conclusions.

That, the spokesman said, was separate from criminal proceedings which may be taken by the Maltese authorities and the commission would not interfere in the Maltese investigations into the case.

"Nothing has changed about the grounds for the resignation," the spokesman said.

The spokesman confirmed that the European Commission was first tipped off about allegations against Mr Dalli by Michel Petite. (A tobacco lobbyist and adviser to EU Commission President Jose' Manuel Barroso)

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