Edward Scicluna to be 'Sacked' by Cabinet

Central Bank Governor Edward Scicluna is facing imminent removal by the government, following a court decision implicating him in a major scandal. The Cabinet is expected to finalize the decision in their meeting on Tuesday, as Scicluna continues to resist calls for his resignation.

Scicluna, who has maintained his innocence, is set to be replaced by Alexander Demarco, the current deputy governor. The government plans to argue that Scicluna can no longer fulfill his duties due to the upcoming trial. Despite potential legal challenges from Scicluna, the government intends to proceed with the dismissal.

Scicluna, along with former Deputy Prime Minister Chris Fearne and 13 others, faces charges of fraud, misappropriation, and fraudulent gain related to the privatization of Gozo, Karin Grech, and St. Luke’s hospitals. The court recently ruled there is sufficient evidence for the case to go to trial.

Prime Minister Robert Abela has suggested Scicluna should follow the example of Fearne and permanent secretary Ronald Mizzi, both of whom resigned promptly after charges were filed against them. Scicluna, however, has refused to step down, citing the Central Bank's independence and adherence to EU treaties.

Since May, Scicluna has resisted resignation, stating that neither the government nor the opposition can compel him to do so. His stance has led to increased tension, culminating in his recent removal as deputy governor of the Malta Financial Services Authority.

The situation may lead to a legal battle, potentially embarrassing for the government. The position of Central Bank Governor, requiring a deep understanding of economic policies and financial systems, is crucial for Malta. Demarco, who has been with the Central Bank since 1984, is set to take on this critical role, bringing extensive experience from his tenure in the bank’s Economic Research Department.