The Maltese authorities are investigating court evidence given by former French minister Charles Millon, who claimed that according to the French secret service, Malta was one of the countries where funds derived from kickbacks related to the sale of weapons to Pakistan were deposited.

The funds were allegedly used to finance the electoral campaign of former Prime Minister Edouard Balladour .

Finance Minister Tonio Fenech said in Parliament that the Maltese government was aware of the allegations and the authorities were investigating.

Judge Van Ruymbeke is leading an investigation into suspected payments of illegal kickbacks from the sale of three Agosta submarines by France to Pakistan, concluded in 1994.

According to media reports, the so-called 'retro-commissions' were sums of money paid as bribes, described as commissions. They were used to secure the deal and found their way to France through complex financial routes. They are alleged to have financed the presidential election campaign of Edouard Balladur,prime mnister at the time of the deal.

Nicolas Sarkozy was Balladur's budget minister and election campaign spokesman.

He has dismissed accusations that he was involved in the organisation of the alleged retro-commissions, and has also dismissed the suggestion that Balladur benefited from such a system.