The admission by the Maltese police that they did not have enough proof for a criminal case against former Health Commissioner John Dalli amounted to a declaration of bankruptcy for the work of Olaf director-general Giovanni Kessler, the coordinator of the EPP Group in the European Parliament’s Budgetary Control Committee, Inge Grässle said.

Police Commissioner Peter Paul Zammit said yesterday that he had reviewed Mr Dalli’s case with the Attorney General, they had a profound discussion about it and the situation was clear - there was not enough proof to substantiate any accusation against Mr Dalli.

In a statement this afternoon, the MEP said:

"It appears the EU's anti-fraud office Olaf has no criminal evidence against John Dalli.

"The alleged circumstantial evidence gathered by Olaf director-general Kessler against John Dalli is now laid bare as unfounded suspicion without legal substance.

"The announcement by the police on Malta is testimony of the unprofessional work of OLAF's director-general, who disregarded internal standards for investigations and, according to the Supervisory Committee, was in breach of EU law."

The MEP said that Mr Kessler must now give detailed testimony to the European Parliament's Budgetary Control Committee about his dubious investigation methods “and his obviously false statements on the Dalli case".

The Olaf investigation had concluded there was “unambiguous circumstantial evidence” that Mr Dalli knew a bribe was being asked for in his name but did nothing about it.

Mr Dalli has filed a complaint against the European Commission and tobacco firm Swedish Match in the wake of his forced resignation in October.

A Belgian judge is now calling on three MEPs who criticised the way the EU anti-fraud agency handled the Dalligate investigation to testify in the proceedings of the complaint.

Mr Dalli’s former canvasser, Silvio Zammit, allegedly asked Swedish Match for €60 million to lift a ban on snus, a form of tobacco consumed orally, which can only be sold in Sweden under present EU rules.

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