The criminal suspect running Malta’s Central Bank

In May 2024,  former Labour finance minister and Central Bank Governor Edward Scicluna was charged with corruption, money laundering and fraud.  But Prime Minister Robert Abela fiercely defended him, insisting he wouldn’t sack him.

Just weeks later, Abela changed his mind and threatened to sack Scicluna, who mounted huge resistance, but finally agreed to “suspend” himself” temporarily, until he “cleared his name”.

Well, he still hasn’t cleared his name.  Yet Abela has changed his mind – for the third time.

He’s reinstated Scicluna as Central Bank Governor. Scicluna will also sit on the governing council of the European Central Bank.  So what’s changed?

When news first surfaced that Scicluna was being charged with serious crimes, Abela stuck his neck out for him. “Edward was among those I was referring to when I said I will defend and support those who worked loyally and were there for their country in the most sensitive moments,” he insisted.

Just a few weeks later, Abela made another of his trademark U-turns. He first tried to cajole Scicluna into stepping down. “I know Professor Edward Scicluna has a lot of integrity, I know how he always put the national interest first… I think he is able to arrive at the right decision,” Abela said.

And just to make sure Scicluna understood what that “right decision” was, Abela spelt it out: “The correct decision for the Central Bank Governor can be seen from the example set by the ex-deputy prime minister”.  Chris Fearne had stepped down and withdrawn his name from consideration for European Commissioner.

Scicluna did not and would not arrive at Abela’s “right decision”.  Abela got increasingly annoyed with him. He threatened to sack him. But Scicluna was having none of it.  He warned Abela that if he dared sack him, he would go to the European Court of Justice to fight any attempt to remove him.

Finally, the impasse was broken.  Abela struck a backroom deal with Scicluna, who reluctantly agreed to temporarily “suspend” himself while continuing to receive a salary of €69,000 for doing nothing. “I will step aside only for the time being, but I will remain Governor until the end of my term,” Scicluna said defiantly.

Scicluna hasn’t been acquitted of those serious charges.  He’s still being prosecuted for corruption, money laundering, and fraud.  His name hasn’t been cleared. But his term’s end was fast approaching. So was his 80th birthday.

Scicluna didn’t have much time left. Besides, Robert Abela had reinstated Konrad Mizzi’s right-hand man, Ronald Mizzi.  Abela recruited Mizzi to his own office, the OPM.

Abela had lifted the suspension of Kurt Buhagiar, a man charged with the involuntary homicide of Jean Paul Sofia.

Scicluna gambled that  Abela was too weak to resist.  So Scicluna made a formal request to Abela to allow him to lift his own suspension and return to work at the Central Bank. He also asked for his seat at the governing council of the European Central Bank while still facing prosecution for money laundering, fraud, and corruption.

Abela is in pre-election mode.  His primary objective is to try and regain the support of key allies, to buy their allegiance or at least their silence. He needs to avoid unnecessary friendly fire.  He’ll do anything to appease people like Scicluna.

Together with Scicluna, Mizzi, and Buhagiar, Helena Dalli (given the title of Acting President), Neville Gafa (who said he has returned to the Labour Party as customer care volunteer in Gozo),  and Rosianne Cutajar (who rejoined the PL’s parliamentary group) reflect the Prime Minister’s need to have all on his side, or at least not launching anonymous volleys at him.

It took Abela little time to accede to Scicluna’s request.  Abela claimed he had consulted the European Central Bank, which did not object.

The ECB couldn’t have been ecstatic about having a man charged with money laundering and fraud sitting on its governing council. But Abela isn’t interested in protecting the national interest or the country’s reputation.  He’s focused on one thing, and one thing alone – himself.

He knows he has to keep everybody onboard in the run-up to the next election. He cannot afford to have disgruntled heavyweights sniping at him from the wings. Abela knows exactly what Scicluna’s priorities are – Scicluna himself revealed it to the entire nation at the Caruana Galizia inquiry.  It’s money.

He told us that he had already given up his lucrative Brussels post to join Muscat’s Cabinet.  He wasn’t going to resign his post as Governor because of all the corruption going on around him – when he was Finance Minister and had to control it. He had to protect his own financial interests first – the national interest could wait.

Meanwhile, Scicluna has increased his monthly pay to €11,500 per month, in addition to his three pensions.