Joseph Muscat is unlikely to announce the dismissals of Konrad Mizzi and Keith Schembri when he speaks at the Labour Party general conference this morning, party sources have told this newspaper.

The Prime Minister is under immense internal pressure to let go of the two men as the Panama Papers scandal continues to damage the government.

But when he takes to the podium this morning, Dr Muscat is more likely to reiterate that he will wait for the independent audits of their financial affairs to be concluded before taking a decision.

Ever since giving an interview on One TV last Wednesday in which he said public sentiment could not be ignored on the Panama scandal, expectations have run high that Health and Energy Minister Konrad Mizzi and chief of staff Keith Schembri would resign.

However, Labour sources said both men have so far made it clear they will not leave. Dr Mizzi did so publicly when addressing the Labour conference last Thursday, passing the buck to the Prime Minister to decide his future.

The minister and Mr Schembri insist they have done nothing wrong and resigning would be an admission of guilt.

It is emotional

“The decision rests solely with the Prime Minister, and the fact that both men are very close to him has complicated matters,” one source said.

“Joseph Muscat’s indecision boils down to the fact that it concerns two very close people; it is emotional more than anything else,” a party source said.

But with the PN organising its second national anti-corruption protest in Valletta this afternoon, some within Labour have advised Dr Muscat to take his time.

“Some feel the Prime Minister would appear weak and giving in to the PN if Mizzi and Schembri were dismissed before, or on the day of the protest,” the source said.

But after the triumphalism at Thursday’s PL general conference, when delegates broke into a standing ovation each time Dr Mizzi’s name was mentioned, the atmosphere was subdued on Friday.

The situation has led to palpable tension within the party for the first time since Dr Muscat became leader in 2008. Several veteran ministers have made it clear that the two must go, the source said.