The following are the top stories in the Maltese newspapers this Sunday.

The Sunday Times of Malta reports that Air Malta may end up with a smaller fleet of aircraft if talks with Alitalia fail. 

It also reports that the Prime Minister’s chief of staff, Keith Schembri, is expected to be asked to testify before the European Parliament’s Panama Papers inquiry.

The Malta Independent says more power tariff reductions could be on the cards in tomorrow's budget. It also says a University lecturer could face prosecution over the outing of a transgender protester. 

MaltaToday reports that former finance minister Tonio Fenech is facing a criminal investigation in Sweden after the country’s pensions authority reported that a Malta-based fund of which he is a director is unable to pay back €247 million in pension savings because of alleged fraud. 

The story is also taken up by KullĦadd, which says the Swedish authorities want the criminal investigation to include Tonio Fenech.

It-Torċa says the old power station will be dismantled next year. It also focuses on the financial affairs of PN deputy leader Beppe Fenech Adami, who, it says, is under pressure following recent reports of money laundering by a fiduciary company of which he was a director. 

il-Mument says Castille had been planning to appoint Neville Gafa' as ambassador to Libya. Mr Gafa' is at the heart of allegations of abuse in the granting of medical visas to Libyans. The news paper also focuses on the risks and dangers of having an LNG tanker berthed in Marsaxlokk Bay.

Illum says that the government plans to make it illegal for anyone to smoke in a car in the presence of children.