The European Union’s commissioner for health John Dalli stepped down over allegations that he attempted to influence EU legislation on tobacco products.

John Dalli, a former Maltese businessman, announced his resignation with immediate effect following an investigation by the EU’s anti-fraud office OLAF into a complaint made in May 2012 by the tobacco producer Swedish Match, the European Commission said.

The company alleged that a Maltese entrepreneur had used his contacts with John 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 the EU ban on snus, the commission said in a press statement.

Snus is an orally-taken tobacco product, which is banned in all countries of the EU except in Denmark.

European Commission President Jose Manuel Barroso was informed by John Dalli about his decision to step down.

John Dalli, who categorically denies these charges, said he is laying down his office to protect the integrity and reputation of his office and the European Commission, the commission said.

Jose Manuel Barroso has assigned Maros Sefcovic, Vice-President responsible for inter-institutional relations and administration, to look after John Dalli’s responsibilities on an interim basis until a new commissioner of Maltese nationality is appointed in accordance with the treaty on the functioning of the EU, the statement said.

The commission had ordered the OLAF to investigate as soon as it received the complaint. The agency, in its final report sent to the commission on October 15, confirmed that the Maltese entrepreneur had approached Swedish Match using his contacts with John Dalli and sought to gain financial advantages in exchange for influence over a possible future legislative proposal on snus.

However, OLAF investigators did not find any conclusive evidence for a direct participation of John Dalli in the alleged fraud, but “did consider that he was aware of these events,” the statement said. “No transaction was concluded between the company and the entrepreneur and no payment was made”, it said.

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

The commission said that the OLAF’s final report and its recommendations were being sent to the Attorney General of Malta and it is upto the Maltese authorities to take the next step.

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