Updated 8pm - The Nationalist Party insisted this evening that Prime Minister Joseph Muscat could not simply brush off the Joe Sammut case, as he appeared to have done this morning.

Replying to reporters' questions in the morning, Dr Muscat said that Mr Sammut no longer has any role within the Labour Party and therefore he could not take action against him.

Mr Sammut, former PL treasurer, was arraigned in court earlier this week and accused of fraud in the setting up of companies with Libyan interests to facilitate the granting of residence permits.He pleaded not guilty.

Asked if action would be taken over those residence permits, Dr Muscat said Identity Malta was tackling the issue and also seeking to remedy what was wrong in the past.

The Nationalist Party in a reaction said Dr Muscat was being weak in the face of institutional corruption.

"Muscat needs to realise that he is Prime Minister and the people expect him to take decisions," the PN said.

It pointed out that Mr Sammut had administered the Labour Party's finances, he was a Labour candidate in four general elections and was a journalist with the Labour media for several years.

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