Health Minister Godfrey Farrugia said he was aware John Dalli’s own daughter was working as his personal assistant in his new role as Mater Dei Hospital reform chief.
Dr Farrugia said Mr Dalli had every right to choose whoever he liked for such a position.
The former European Commissioner appointed his daughter, Louisa, shortly after it was announced that he would head a reform team within the administration of the country’s main hospital, which has been plagued with chronic mismanagement since opening its doors in 2008.
Asked about this yesterday, Dr Farrugia said: “Every adviser has a right to choose his PA. He trusts this person and, therefore, yes (it’s acceptable).”
He said her contract had not been drawn up yet and neither had that of Mr Dalli, who, Dr Farrugia said was “working on a voluntary basis”.
Asked whether the government would make public the remuneration packages, Dr Farrugia said: “As always”.
The reform was a challenge which Mr Dalli set himself when he was appointed Social Policy Minister in 2008, with responsibilities that included health.
In 2009, he pledged a “revolution” at the hospital to tackle the growing problem of waiting lists for operations.
Mr Dalli’s consultancy job had followed a statement by Police Commissioner Peter Paul Zammit that they felt there was no criminal case to be made against Mr Dalli in relation to the snus affair.
His position was called into question again last month after the International Herald Tribune revealed that he had travelled to the tax haven of the Bahamas several times in 2012 without the knowledge of the European Commission.
Mr Dalli defended himself saying that he was giving voluntary consultancy to a group of Evangelical Christians who wanted to set up a multi-billion dollar fund intended to help people in Africa.
He also had a meeting with the Prime Minister after which he announced there would be “no change” to his consultancy position after the Bahamas revelations.