The CEO of the multi-million euro Smart City project yesterday refused to deny he has resigned or that he intends to quit amid persistent speculation that he is about to step down.

When contacted, Claudio Grech told The Sunday Times: "I am currently still employed with Smart City at the moment."

Mr Grech did deny he was serving his notice but failed to respond when asked whether he had resigned or was planning to resign, stressing that he was on holiday.

Sources told this newspaper that the CEO, formerly a personal assistant to IT Minister Austin Gatt, has been unhappy with the level interference of the Dubai-based owners, Tecom Investments, in the day-to-day running of the company.

Last Thursday the company issued a statement announcing that the foundation and retaining structure of the first building at Smart City Malta had been built - quelling speculation that the project is at a standstill. However, Mr Grech's name did not feature.

On his way to Qatar this week, President George Abela stopped in Dubai to visit Dubai Internet City, which is operated by Tecom Investments, and was given assurances that the Smart City project was forging ahead as planned.

When launched officially in April 2007 it was said that the $300 million (€208 million) IT village would create 5,600 jobs over eight years.

The project is modelled on the existing Dubai Internet City, which has attracted some of the biggest names in the IT and communication industries to work from its campus. Malta's Smart City is located on what was formerly the derelict Ricasoli Industrial Estate.