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Witness Ferdinand Grech, called in the court case instituted by the company Valle del Miele against the Priceclub supermarket directors, said he was the sole shareholder of the company that owned the Happy Saver supermarket but has, so far, failed to provide all the documents related to its purchase.
Grech produced the contract by which the Happy Saver was purchased wherein he appears as the buyer, but told the court he did not have the documents related to the payments as listed in the contract.
“If there were documents I do not have access to them as I am no longer a director of Happy Saver. I am still however the sole shareholder of the company.”
Grech told the court that a pre-sale agreement used to exist between him and the original shareholders, but said he did not have it. “In fact I negotiated the transfer of the company directly with the shareholders. The contract I presented in court reflects the purchase of Happy Saver and Four Square Properties Ltd.”
Grech said that the directors of Priceclub, Wallace Fino, Victor Zammit and Chris Gauci started to pay him to buy Happy Saver:
“Of what I was personally responsible for, including water and other things, I paid Lm523,000 out of which I received Lm172,000 from Fino, Gauci and Zammit. I received Lm20,000, Lm20,000 Lm2,000 Lm48,675, Lm29,205, and Lm52,366 as payments on account for their eventual purchase as indicated in this document I am presenting in court.”
Valle del Miele’s lawyer Shazoo Ghaznavi quizzed Grech:
Ghaznavi: “What was the agreement with Gauci, Fino and Zammit?”
Grech: “That they buy Happy Saver Chain Stores Ltd.”
Ghaznavi: “What was the final price?”
Grech: “It could never be established with accuracy because of the value of stocks.”
Ghaznavi: “When they began operating Happy Saver, what agreement was there at that time?”
Grech: “That eventually they would buy the supermarket and the value of all the stocks calculated. Today I do not know what the amount was because I do not have the documents.”
Grech told the court he could not remember the price he agreed with Gauci, Fino and Zammit and told the court: “I don’t remember, five years have passed and more.”
Ghaznavi: “How did you pay the original shareholders in Happy Saver?”
Grech: “The shareholders were paid from my pocket. I also paid them an amount they were owed. In fact the balance was paid from my pockets but I have not included that amount in the document I have presented in court.”
Ghaznavi: “How did you pay the Lm160,000?”
Grech: “In part, I think by bank draft and also with my personal cheques. I promise to exhibit the documents in court in the next sitting.”
Ghaznavi: “Where do you think the pre-contract agreement (konvenju) with which you personally bought the company Happy Saver Stores Limited and Four Square Properties Limited, and paid Lm72,000 on the occasion, is?|
Grech: “In the office in Triq it-Tigieg in Handaq, that was the former office of Happy Saver Chain Stores Ltd.”
Ghaznavi: “Why is the contract not in your possession?”
Grech: “Because it is in the office I mentioned as I said.”
Ghaznavi: “How much did you pay in capital gains for the transfer?”
Grech: “Obviously that which was legally due, as worked out by the notary and the accountant. These were notary Tony Abela who today is the Parliamentary Secretary and the accountant Buttigieg. I have no idea what the amount was but I surely paid it all from my own money. I promise to try and get the documents as to how I paid the Capital Gains in the next sitting.”
Ghaznavi: “I see that you paid Lm1,320 to Dr Chircop, what was that for?”
Grech: “For VAT. Dr Chircop was the go-between and was paid Lm8,000 by each part to the contract. He was paid a total of Lm16,000. About a year and half later Lm1,320 was due as VAT on that amount.”
The court case was brought by the company Valle del Miele against the directors of Priceclub, Victor Zammit, Chris Gauci and Wallace Fino for wrong and fraudulent trading.
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