Allied Newspapers Limited said it deplored attempts made by the Office of the Prime Minister's chief of staff to politicise a private agreement reached with the company's former managing director.

The company also rejected Mr Schembri's allegations that the company lacked any transparency.

Yesterday, Allied Newspapers Limited (publishers of Times of Malta) said it had reached a private agreement concerning any claims they "have or may have had" against each other.

In the wake of the allegations, Mr Hillman offered his resignation on May 25, claiming constructive dismissal. He eventually demanded compensation in a case filed in front of the Industrial Tribunal.

In a statement last night, Mr Schembri said the "dishonest and highly politicised campaign" against him personally had been proved to be baseless. He also urged Allied Newspapers to publish its independent inquiry for the sake of transparency.

In a reaction, Allied Newspapers Ltd's board of directors said it deplores the attempt by Mr Schembri, in his official capacity through the Office of the Prime Minister, to politicise a private agreement reached between the two parties involved in court litigation which has now been settled out of court.

In September, Allied Newspapers Ltd filed a judicial letter asking Mr Hillman to refund company money he used without authorisation.

The board of directors said it will not comment any further on issues which are of a strictly private nature between the company and Mr Hillman.

In a reaction, Mr Schembri in a statement issued through the Department of Information said that for the sake of transparency and good governance Allied Newspapers should publish the enquiry.