Investigations into the Mistra development controversy concluded that former Malta Tourism Authority consultant George Micallef was not involved in "corruption, money changing hands, or trading in influence", a court heard yesterday.

Police Inspector Ian Abdilla was testifying before Magistrate Lawrence Quintano in the compilation of evidence of Mr Micallef, 48, of St Julians, who is pleading not guilty to making a false declaration on and before October last year.

Testifying earlier this month, Mr Abdilla explained that Mr Micallef had told the police he had written a favourable report on a proposed disco project at Mistra because he had been asked to do so by Nationalist MP Jeffrey Pullicino Orlando, who was "his friend". He explained that he would have still recommended the project from a purely tourist point of view.

Replying to questions by defence counsel Stephen Tonna Lowell under cross examination yesterday, the officer explained that the police had launched investigations into the granting of a Malta Environment and Planning Authority outline permit for the disco following requests by both Prime Minister Lawrence Gonzi and the (then) Leader of the Opposition Alfred Sant. The officer said that applications for developments that had a bearing on tourism, such as this, needed to be accompanied by a tourism compliance certificate. The certificate in this case was issued in November 2005, well before Mr Micallef wrote the report to the MTA regarding the use of Mistra for tourism purposes.

The witness confirmed that Mr Micallef was not part of the MTA when he wrote a report to the developers.

Lawyers Joe Giglio and Stephen Tonna Lowell appeared for Mr Micallef.