Updated 5.20pm

Alfred Mifsud, deputy governor of the Central Bank, has officially told the government he does not wish to be considered any further for the post of bank governor.

Mr Mifsud had been the leading candidate for the post until corruption allegations were made against him.

Mr Mifsud has denied the claims and taken court action.

The Nationalist Party said the announcement showed that common sense had prevailed, but added that Mr Mifsud should also suspend himself from his current post.

It noted, however, that it was Dr Mifsud who had taken the decision not to seek the top post, not the prime minister. 

The Prime Minister had so far avoided saying whether Mr Mifsud should step aside as the government probes the allegations about him. 

Joseph Muscat yesterday urged caution, insisting the Central Bank was an autonomous institution.

Mr Mifsud was appointed deputy governor of the bank in May last year and has been touted as the next governor. But the Prime Minister yesterday insisted that to date no official nomination had been made for the post.

“Given the sensitivity of the post one expects prudence, as actions and statements by politicians should not put in doubt the basic principles of the Central Bank Act, which provide for the independence of the institutions and holders of office therein,” he said.

Mr Mifsud’s former partner has alleged he received bribes when chairman of Mid-Med Bank 20 years ago. He has denied all wrongdoing and instituted legal action. Finance Minister Edward Scicluna was the first senior government official to confirm Mr Mifsud’s name “was one among others considered by the government” for the governorship.

Prof. Scicluna yesterday said he held meetings with the Prime Minister and the European Central Bank on the nomination.

“We are well aware of what has come up. One has to maintain a separation between allegations, accusations, counter- accusations and possibly criminal goings-on that impact his current post and the nomination, which is a different matter… the government remains free to nominate the best person,” he said.

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