Updated - Adds PN reaction - A PN messenger who called at the Auberge de Castille this morning to deliver a cheque to Keith Schembri as owner of Kasco Ltd was 'politely' told that his envelope was wrongly addressed, the Office of the Prime Minister said.

Opposition leader Simon Busuttil said yesterday that after Kasco had demanded payment of the €121,000 due from the PN, the party would hand over the payment immediately. He said that the fact that payment was demanded in an official letter in the week when parliament debated a motion against Mr Schembri showed he was still involved in his business and had a conflict of interest since he served as chief of staff. That was why, he said, the cheque would be delivered to Castille.

The envelope handed in by the messenger was addressed Kasco Ltd, Bulebel.

The Office of the Prime Minister said the messenger was politely told that the envelope was wrongly addressed. 

"The Office of the Prime Minister would like to inform the Leader of the Opposition that it does not receive correspondence on behalf of third parties with whom the PN has business relationships," the government said in an official statement. 

PN: SCHEMBRI TOO EMBARRASSED TO RECEIVE THE CHEQUE

In a reaction, the Nationalist Party said that after his threats of court action, Keith Schembri had been too embarrassed to accept the cheque.

It said the cheque was accepted by his lawyer.  

The PN said it had settled its dues to show that it was not scared of Mr Schembri and would not let anyone be threatened financially for pointing out the government's scandals.

It insisted that Mr Schembri's place is out of the Auberge de Castille.