Updated at 4.40pm with PL statement

Simon Busuttil has set up a commission to look at the system that finances political parties and propose changes.

The commission will be headed by former European Court judge Giovanni Bonello and will act independently of the PN.

"This is a system I inherited and it is one I intend to change," Dr Busuttil said. He said any recommendations made by the commission would be included in the PN manifesto.

Taking questions from the media just before visiting the careers convention at the university, he acknowledged meeting businessman Silvio Debono on a number of occasions since becoming PN leader.

"I never asked him for anything... I am not at war with Silvio Debono or any other businessmen but I will not be silenced," he insisted.

Dr Busuttil also admitted being briefed about the ITS land transfer deal by the developers a few days before the contract with the government was actually signed.

"At this meeting I raised my doubts on the value of the land," he said.

Asked about db Group's claim it was invoiced by the PN media company for services never rendered as a means to cover the wages of party officials, Dr Busuttil again denied, insisting the invoices formed part of the commercial relationship between media.link and db.

He reiterated the scandal was the attempt by the company to try and blackmail the Opposition leader.

PL statement

In a statement, the Labour Party said Dr Busuttil appointed a commission on party financing after he was caught breaching the law on the matter.

If he wanted to improve the system, the PL said, he had four years in which to do so but instead created a system to work around the law and he was now caught with fake invoices for services that had never been given.

The PN leader, the PL said, had not yet said whether he had any more employees and illegal donations on a fake invoice system and if he was willing to shoulder the responsibility for not declaring such financing as he should have done by law.