Central Bank Governor Edward Scicluna Steps Aside Amid Court Case, accepts suspension on half pay

Edward Scicluna has agreed to temporarily step aside as Central Bank Governor of Malta, maintaining his salary during his suspension pending the outcome of a court case. This decision followed a Tuesday cabinet meeting that reached a compromise with Scicluna. Later in the day, it was confirmed that Scicluna would be suspended on half pay pending criminal charges.

The cabinet's brief statement noted Scicluna's request to European Central Bank Governor Christine Lagarde to step aside until the legal proceedings conclude. Deputy Governor Alexander Demarco will assume Scicluna's responsibilities at the Central Bank of Malta (CBM) during this period.

Prime Minister Robert Abela confirmed that Scicluna's employment terms would remain unchanged as he steps away "temporarily." Sources revealed that Scicluna attended a bi-lateral meeting with three senior ministers during the lengthy cabinet session to negotiate the agreement.

Scicluna is currently facing charges of fraud, misappropriation, and fraudulent gain related to a hospitals deal. Despite calls for his resignation, Scicluna has maintained his innocence and insisted that his position remains unchanged.

The prime minister initially sought to remove Scicluna following a court ruling that there was sufficient evidence for Scicluna and others, including former health minister Chris Fearne, to stand trial. However, legal ambiguities and opposition within the cabinet led to the decision to reach a mutual agreement rather than forcing Scicluna out.

Opposition leader Bernard Grech has criticized the government's handling of the situation, accusing Abela of weak leadership and failing to compel Scicluna's resignation. Civil society groups have also protested, with demonstrations outside the Central Bank demanding Scicluna's resignation.

The opposition has called for parliament to reconvene to discuss Scicluna's future, questioning the decision-making process and the roles within the Central Bank during his suspension.