Opposition leader Simon Busuttil this morning said he was ready to defend his sources in connection with government's corruption dealings "even with his own life".

The PN leader made this pledge soon after presenting evidence to inquiring Magistrate Aaron Bugeja to support his allegations that the Prime Minister's chief of staff Keith Schembri received kickbacks from the sale of Maltese passports. Mr Schembri is denying the claims.

Read: Schembri accused of passport sale kickbacks by Busuttil

"The Prime Minister is refusing to resign, and this is harming the country's reputation".

Asked what was the Opposition's next step if the Prime Minister did not step down, Dr Busuttil said the PN would do what was expected from it on a "political" level.

"Malta cannot remain in such situation. Speculation of an early election is rife, which is not normal for a government elected with a majority of 36,000 votes."

"The only reason for which the Prime Minister would want to go to the polls is to avoid being questioned by the police," he added.

The Opposition leader noted that since last Tuesday's news conference regarding Mr Schembri, he had received new information. However, he would not go public and take action unless he was confident about its reliability.

Dr Busuttil declined to say if the evidence presented today included an FIAU report saying he wanted to give maximum protection to the sources, even at the cost of putting his life in danger.

Reacting to the Times of Malta story today which said that former police commissioner Michael Cassar resigned the day after the police received an FIAU report recommending further investigations on Keith Schembri, Dr Busuttil said that everybody was able to reach the "logical" conclusion behind the dynamics of this case.

Read: FIAU had asked the police to probe Keith Schembri

He said that the fact that apart from Commissioner Cassar, FIAU director Manfred Galdes had also resigned was further testament that something was wrong.