Opposition leader Simon Busuttil said today that this was a hot summer of scandals, but the governemnt was trying to hide matters and deviate public attention, instead of reacting as any serious government would do.

Speaking on Radio 101 Dr Busuttil referred to the arraignment of former Labour treasurer Joe Sammut and the state guarantee of €360 million for the building of the power station.

He said the most serious aspect of the arraignment of Mr Sammut was not the possible goings on involving the Labour Party but the institutional corruption which this case revealed.

This was a case which involved the granting of hundreds of visas and residence permits. Mr Sammut could not have acted alone and there was clearly a network in the public service.

Dr Muscat said this was a security issue which merited a proper inquiry.

He also expected that the prime minister would convene a meeting of the Security Committee to explain how this visas and permits were granted and to say whether they would be withdrawn.

STATE GUARANTEE

Dr Busuttil also hit out at the state guarantee for the power station, insisting that it was unprecedented that the government issued such a huge guarantee for a private company. Had any other business or self-employed person been given a state guarantee after running on hard times?

The government was treating the power station consortium in this way because Dr Muscat had tied his political future on the building of the power station, Dr Busuttil said. The consortium could not borrow from the banks and therefore the only way the power station could be built was through the government guarantee. And Dr Muscat had said he would resign if the power station was not built.

Dr Busuttil said the PN would continue to demand answers on corruption it had revealed, such as the Gaffarena case.

Why was Mr Gaffarena continuing to operate an illegal petrol station? Why had the government not stopped the part-expropriation of the property in Old Mint Street and withdrawn the compensation? Why was the government not acting against former Police Inspector Daniel Zammit and his brother for their dealings with Mr Gaffarena? Way was action similarly not taken against their father Ray Zammit for the same reason?

NEW UNIVERSITY

On the new university, Dr Busuttil said this was a governemnt of spin and lies.  This was a government which came out with new matters to distract public attention, as had happened this time amid the controversies over Joe Sammut and the state guarantee.

In the issue of the new university, the government had changed direction only as a result of strong opposition by environment NGOs, civil society and the Nationalist Party, who had protested against the use of ODZ land.

Were it for Dr Muscat, he would have ruined 90,000 square metres of ODZ land. Now he would ruin 18,000 square metres, which was still not good, Dr Busuttil said.

Dr Muscat had rushed to make a mess, but then was slow in correcting his mistake, Dr Busuttil said. This was indicative of how the country was being run.

The PN would continue to insist that everything was done correctly. The PN was still concerned about the use of ODZ land.

Furthermore, how was this investment being described as a university when it had not been recognised as such by the official council? Had something been arranged beforehand?

And how were historic buildings in Cospicua being handed to an investor without a public call for tenders?

There were several unanswered questions on this project, Dr Busuttil said, while calling for publication of all relevant documents.