The Central Bank of Malta has decided not to take any action against deputy governor Alfred Mifsud, who has been accused of corruption by his former partner.

Sources said the allegations were discussed during a board meeting late last month, when it expressed its full confidence in Mr Mifsud.

Asked yesterday about the matter, a Central Bank spokesman confirmed that no action would be taken and that it was business as usual for Mr Mifsud.

“In its meeting of June 24, the Central Bank of Malta discussed the allegations that appeared in the media regarding its deputy governor and agreed that there were to date no sufficient grounds on which to make any assessments,” the spokesman said.

“The board informed Mr Mifsud on the same day that it still retained confidence in him,” he added.

He has continued attending to his duties at the Central Bank throughout

During a brief discussion on the matter, none of the board members present raised the issue of an official investigation into the allegations, the sources said.

“The board members were very reluctant to go into the issue as most of them argued that it was up to the police to investigate claims which were clearly of a criminal nature,” the sources added.

Neither was there any talk or suggestion that Mr Mifsud should at least suspend himself until the police investigated and his name was cleared, the sources noted.

According to the sources, Mr Mifsud continued attending to his duties at the Central Bank throughout.

The Times of Malta is informed that the police are still investigating the allegations by Anna Zelbst, who claimed that he had received bribes when he was chairman of the Mid-Med Bank (now HSBC) in the late 1990s in relation to an ICT tender. Ms Zelbst made the allegations after her relationship with Mr Mifsud had ended.

Mr Mifsud categorically denied the allegations and even instituted legal action. He said that the claims were motivated by “revenge and hate from a failed personal relationship”.

For some time, he was touted as the Central Bank’s new governor, but in view of the allegations, he informed the Prime Minister not to consider his nomination any longer. In fact, Mario Vella succeed Josef Bonnici as governor.

ivan.camilleri@timesofmalta.com