Labour leader Joseph Muscat this morning clarified that he did know of an alleged drug case in a PL club but said that he denied knowledge last week because he thought he was being questioned about goings on at Attard PL club.

The drug case took place in a different club - which sources indicated was the one in Safi.

The Labour leader made his clarification hours after the Nationalist Party in a press conference said that Dr Muscat had not been telling the truth when he denied knowledge of a case revealed last week when PL deputy leader Toni Abela was heard on a recording speaking about a drug case in a PL club. The PN never mentioned the locality of the club but it published correspondence to show how Dr Muscat was informed in writing of the case two years ago.

Speaking to journalists at the end of a visit to Gozo Week at University, Dr Muscat explained that when he gave his original explanation (on Saturday), he had been speaking about Attard PL club.

But when he heard a Net TV interview last Sunday, he realised the case they were referring to was about an incident at the Safi club. He realised that the case was about an incident at Safi because the words used - that the barman had been cutting up 'a block of ice,' were the same words the barman had used when he met him asking to be reinstated about two years after the incident.

Dr Muscat confirmed that Dr Abela had informed him about the case.

He said that people of good standing had told the Labour Party that the man in question - the barman - was involved in a drug use and it was felt that there were enough grounds for the party to dismiss him.

The party, however, had no proof, evidence or willing witnesses.

This person, Dr Muscat said, wrote to him twice and asked to meet him, and he met him about two years later.

The barman had claimed that he had nothing to do with drugs but had been cutting up 'a block of ice'. He asked to be reinstated.

Dr Muscat said he declined his request.

The Labour leader told journalists it was now up to the PN to say which version of the story they believed - the first which was that the man was involved in drugs, or the second that he had been cutting up a block of ice.

Dr Muscat said that this person was trying to implicate other people in the case.

The suspicions that were raised were raised by reputable and trustworthy people but the problem was that the party had absolutely no proof and the people who passed on the information did not want to testify.

The PL took these matters very seriously and now that the PN had given the barman refuge, it was up to them to say whether or not they believe his version of events.

Asked about a photo that had been taken of him with the barman, Dr Muscat said the photo was taken after he had informed the man that Labour was not changing its position.

"He had asked for a photo and now I understand why," Dr Muscat said adding that had no problems taking photos with anyone.

This, he said, would have been a story had the barman been reinstated after this incident.

PN press conference - http://www.timesofmalta.com/articles/view/20130219/local/borg-olivier-says-muscat-knew-of-white-powder-case-despite-denial.458211