Alfred Mifsud, deputy governor of the Central Bank, has categorically denied allegations of corruption and money laundering made against him in a blog written by Daphne Caruana Galizia.

"After I explained to the said blog that their sources are untrustworthy and motivated by revenge and hate from a failed personal relationship (after refusing unreasonable demands for financial settlement) I was left with no option but to file libel," Mr Mifsud said in a statement.

"Obviously once legal action started, further comments will be reserved for the courtroom. 

"With 47 years uninterrupted experience in financial services without ever being accused of impropriety, I cannot be expected to prove my innocence rather than the accusers proving their allegations," Mr Mifsud said. 

Times of Malta reported yesterday that the Finance Ministry is probing the corruption allegations.

The allegations surfaced on Daphne Caruana Galizia’s blog last weekend and concern the time when Mr Mifsud was chairman of Mid Med Bank between 1996 and 1998.

Ms Caruana Galizia alleged that Mr Mifsud received hard cash totalling thousands of Maltese liri from a Maltese businessman. The businessman was allegedly the representative of an American software company tasked by the bank to change the IT system.

Mr Mifsud has denied receiving any money, insisting the software company won a competitive tender. The decision, he added, was taken by the bank’s board.

In May last year, Mr Mifsud was appointed deputy governor of the Central Bank, responsible for monetary affairs for a five-year term. He is being touted as the likely successor to governor Josef Bonnici when his term ends next month.