George Farrugia offered Austin Gatt free hall, use of BMW during 2008 election

Former infrastructure minister Austin Gatt was offered the free use of Valentine’s Hall for around two months and a BMW to be used for between four to six weeks during the 2008 electoral campaigning.

Testifying in court, MediaToday Managing Editor Saviour Balzan said that pardoned oil trader George Farrugia, and his brother Ray, had ensured that Gatt would have the Hamrun hall at his disposal. George Farrugia’s personal office was on the ground floor of the same Valentine’s Hall.

Balzan was giving evidence in court over a libel suit instituted by the former minister against him. The court was presented with emails demonstrating how Farrugia would meet or organise meetings with Austin Gatt.

Balzan also said that, in 2013, the police had carried out “insufficient investigations”, explaining that the police had failed to check Farrugia’s accounts.

Interrupted by Gatt’s counsel, lawyer Joseph Zammit Maempel, accusing him of speculation, Balzan retorted that he knew this for a fact because at the time he was aiding the police investigation.

“The impression given is that Gatt knew Farrugia as just another constituent,” Balzan told magistrate Francesco Depasquale. "But from my research Farrugia, together with his brother Ray had given and offered Gatt use of Valentine’s Hall, in Hamrun, for the 2008 electoral campaign.

“This was used for three months. My information is that it had been given for free. The reason is that up to 2004 the Farrugia family were known to support the De Marco camp but after 2004 they had started supporting Austin Gatt.”

“George Farrugia’s personal office was in the subterranean levels of Valentines Hall. Farrugia was aware of what was happening there. He would go out of his way to help Austin Gatt, the assistance was continuous”.

“Although it had been stated by Gatt that Farrugia had donated €2,000 to his electoral campaign,” Balzan continued, “I am informed that there were regular donations to the campaign.”

Balzan said that the article had used the phrase ‘lucrative oil deals’, but made it clear that it by no means implied that Gatt had received any kickbacks or monies for these contracts.

“In fact, some days later, at a public press conference held at the PN Headquarters I had stated that very clear terms that Austin Gatt ever received any money in return for favours,” Balzan said. “This however does not mean that Farrugia didn’t try to use the friendliness and familiarity he had with Gatt to give the impression that he had influence.”

Balzan exhibited a collection of nine email exchanges, dating from 2003 to 2009, which contain several direct and indirect references to the minister.

In one email to MOBC dated 23/04/04, Farrugia says that the minister “is asking for a copy of the TOTSA contract”, in another Farrugia writes to TOTAL, indicating that he would be meeting with Tancred Tabone and the minister regarding the matter of a possible joint venture with Enemalta. In yet another email, Farrugia invites Tabone to meet over lunch to discuss his meeting with “A.G.”
“I doubt this was a meeting with the Attorney General,” Balzan quipped.

Balzan said that in August 2012 documents related to George Farrugia’s fraudulent activity was presented to then Prime Minister, Lawrence Gonzi. The person who tried to pass on the documents was part of Gonzi’s security detail.

“As soon as he heard that it was related to George Farrugia, he suggested that the security detail passes it on to his superior. His superior was Godfrey Scicluna, at the time head of the Secret Service,” Balzan said.

He said that Scicluna then approached a certain Bernard Pace from Gatt’s secretariat and informed him of the issue. “I am informed that there was a police investigation into Pace’s alleged involvement in the case.”

For a period of time – days or hours  - the file had remained in the secretariat. When it was returned to Scicluna, some papers had been removed. Scicluna then passed on the file to a third person who eventually referred the case to the Tax Compliance unit.

“In this file there was clear evidence that Farrugia was taking kickbacks on the sale of oil to Enemalta” said Balzan, pointing out that the documents were the same ones presented by the Farrugia brothers against George Farrugia in a civil case.