Recent declarations by MEPs in the European Parliament's Pana committee were an added reason why the prime minister should take action against his chief of staff Keith Schembri and minister Konrad Mizzi, the Nationalist Party said today.

The MEPs were in Malta on Monday to discuss the tax system and the Panama Papers allegations.

PN deputy leader Beppe Fenech Adami observed that one of the declarations made by the committee was that everything looked like a potential case of money laundering.

A year after the Panama Papers scandal hit the headlines, Joseph Muscat was showing himself to be a prisoner of his own men, Dr Fenech Adami said.

"Dr Muscat is in the ridiculous situation where he cannot act against his ministers. Malta has a prime minister who has lost his effective control," Dr Fenech Adami said.

Shadow minister Jason Azzopardi said that the least the prime minister could do was to make sure that the claims of money laundering by his two collaborators were investigated by the police.

"The scandal is even more serious as the police, who are there to protect the people, failing their duty and only interested in covering up this scandal."

Dr Azzopardi quoted socialist MEP Anna Gomes who said that she was astonished that Konrad Mizzi had not yet resigned or sacked by Dr Muscat.