Update: The European Commission said in a statement this afternoon that Commissioner John Dalli has today announced his resignation as a member of the European Commission, with immediate effect,

The Commission said that Mr Dalli informed the President of the European Commission Jose Manuel Barroso of his decision following an investigation by OLAF, the EU’s antifraud office, into a complaint made in May 2012 by the tobacco producer, Swedish Match.

“The company alleged that a Maltese entrepreneur had used his contacts with Mr Dalli to try to gain financial advantages from the company in return for seeking to influence a possible future legislative proposal on tobacco products, in particular on the EU export ban on snus.”

As soon as the Commission received the complaint it immediately requested OLAF to investigate.

The OLAF final report was sent to the Commission on 15 October. The Commission said that the report found that the Maltese entrepreneur had approached the company using his contacts with Mr Dalli and sought to gain financial advantages in exchange for influence over a possible future legislative proposal on snus. No transaction was concluded between the company and the entrepreneur and no payment was made.

The OLAF report did not find any conclusive evidence of the direct participation of Mr Dalli but did consider that he was aware of these events.

The OLAF report showed clearly that the European Commission’s decision making process and the position of the services concerned has not been affected at all by the matters under investigation.

The final OLAF report and its recommendations are being sent by OLAF to the Attorney General of Malta. It will now be for the Maltese judiciary to decide how to follow up.

After the President informed Mr Dalli about the report received from OLAF, Mr Dalli decided to resign in order to be able to defend his reputation and that of the Commission. Mr Dalli categorically rejects these findings.

Mr Barroso has decided that Vice President Maros Sefcovic will take over the portfolio of Mr Dalli on an interim basis until a new Commissioner of Maltese nationality is appointed in accordance with article 246 (2) of the Treaty on the functioning of the European Union.

Mr Giovanni Kessler, Director-General of OLAF will be available in the press room after the midday briefing tomorrow.

Update: This evening Prime Minister, Dr Lawrence Gonzi said in a statment, “this afternoon, I received a phone call from President of the European Commission Jose Manuel Barroso during which he informed that he had just accepted John Dalli’s resignation from the office of Commissioner.

“President Barroso explained that this was a decision taken by John Dalli himself in light of a OLAF report investigating third party conduct. To date I have not yet received a copy of this report.

“President Barroso also informed me that this report will now be forward to the Attorney General of Malta to see whether any action should be taken against a particular person.

“During a later phone from John Dalli, he told me that he will contest any claim made against him, but had decided to resign from the post of Commissioner in order to better defend himself and the institutions he forms part of.

“Later at around 5pm this evening, the Office of the President of the Commission published a statement that has been placed on the table of the House for the information of everyone.

“The Government must now proceed to appoint another person in a reasonable timeframe to replace John Dalli in the post of Commissioner with the same portfolio that has existed until now.”

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