Finance Minister Tonio Fenech said this afternoon that Joseph Muscat needed to explain the activities of Joe Cordina, the PL's financial administrator, in connection with the oil procurement scandal.
He said that Mr Cordina was handpicked for his post in the PL by Dr Muscat.
He was also one of the three directors of Intershore Ltd, the fiduciary company that was the sole shareholder and administrator of Aikon Ltd, the company in the scandal of alleged illegal oil procurement commissions.
Mr Fenech noted that Mr Cordina was appointed financial administrator of the Labour Party in 2009 after he was hand-picked by Dr Muscat.
But where did Dr Muscat know Mr Cordina before that date? Had he had business with Mr Cordina? Did he share an office with Mr Cordina? Had Dr Muscat, with Joe Cordina, given advice to people who wished to invest their money abroad?
His information, Mr Fenech said, was that Dr Muscat and Mr Cordina used to work together in financial services.
The minister reiterated criticism made yesterday of Labour MPs Manuel Mallia and David Farrugia Sacco, saying their press conference this morning confirmed their links to the oil procurement scandal. Dr Mallia had confirmed he had written a letter where he said that Intershore Ltd was an accomplice to fraudulent activities by Aikon Ltd, Mr Fenech noted.
Replying to questions, Mr Fenech said that Mr Cordina, as an accountant, had signed his company accounts that were filed to the MFSA showing activity of a few thousand euro. Yet more than 100 invoices were issued by Aikon, administered by Intershore, showing the sum of €8.6 million. This indicated that the financial statements did not present the whole picture.
Replying to questions, Mr Fenech insisted that he had not broken the ministerial code of ethics when he received a gift of a Maltese clock. This case, he said, was closed, because it had been shown that he had not received a gift from George Farrugia, the person at the heart of the oil scandal.
Furthermore, the clock was not an expensive one and had not influenced his decision.
Asked whether his trip on a private plane with businessmen was also considered inexpensive, Mr Fenech said he had already explained his position and would not do that again.
Mr Fenech said he had no doubt that he enjoyed the prime minister's confidence.
DAVID GATT INVOLVEMENT IN AUDIT REPORT
Asked to comment on the fact that lawyer (and former police inspector) David Gatt was also involved in the management audit of George Farrugia's company, Mr Fenech said such a question should be referred to the MLP, which had also welcomed Dr Gatt.
PL REACTION
In a reaction, the Labour Party said it regretted that the financial services sector was under a PN attack.
It said Joe Cordina was not hand-picked by Dr Muscat but was elected by the party general conference in 2008. It was after that election that the statute was changed. Mr Cordina was then confirmed in the post by the party executive.
Dr Muscat never had any type of business with Mr Cordina and never shared an office with him.
Dr Muscat was employed by Crystal Finance Investments Limited, headed by Alfred Mifsud. Part of his work was to meet clients who wished to invest their funds. This work was also carried out in Gozo at the offices of various operators, including Mr Cordina, This work was regulated by the MFSA.
The party said it intended to stay positive in the remaining days of the electoral campaign.