Purpose of pardon was to uncover any possible corruption post-2005, says Michael Cassar

Head of MSS Michael Cassar says purpose of presidential pardon was to get George Farrugia to reveal any possible corruption after 2005, 'although none transpired'

Head of Malta Security Service Michael Cassar
Head of Malta Security Service Michael Cassar

Head of Malta Security Service Michael Cassar says pardoned oil trader George Farrugia’s reaction during the interrogation “showed that he knew more but wasn’t talking”.

“I made it clear that we were not interested in information concerning Tancred Tabone and Frank Sammut because the evidence we needed was already in hand. This took us back to 2005 where we wanted to know whether any corruption took place between then and now. We said, that he could avail himself of the offer of a presidential pardon,” Cassar said.

However, no evidence of corruption was found between 2005 and 2011.

He explained that the idea of the presidential pardon “came to mind because we had nothing on what happened after 2005”, seemingly denying that the first time he ever heard of the presidential pardon was during a political activity attended by former prime minister Lawrence Gonzi. Later, following further questions, Cassar remembered that he had heard it from the news.

A meeting was subsequently held between the investigative team, then Police Commissioner John Rizzo, Farrugia and his two lawyers, Franco Debono and Siegfried Borg Cole. After this meeting, Gafa and Cassar were no longer involved in discussions and a few days later they were informed of the presidential pardon.

Cassar, who until 12 April 2013 held the position of assistant police commissioner, was testifying before the public accounts committee. He explained that investigations started on 20 January 2013 when MaltaToday published invoices revealing kickbacks being paid for the procurement of oil by Enemalta.

The investigating team from the economic crimes unit was made up by Cassar, inspector Angelo Gafa and superintendent Paul Vassallo. Interrogations were mostly made by the three of them, except for occasions where certain persons were interrogated by Cassar while Vassallo and Gafa were asked to carry on-site inspections.

Cassar said that a report on the investigation on the oil procurement scandal was signed by himself and Gafa.

Asked by justice minister Owen Bonnici whether Farrugia had honoured the conditions of the presidential pardon, Cassar said the investigative team was after what happened from 2005 onwards. “We made it clear that we didn’t need information pre-2005 because we could easily secure a conviction. Farrugia said that kickbacks stopped after Tabone left Enemalta,” he said.

Cassar said they had questioned Farrugia on numerous chats and emails published by MaltaToday and other media: “I remember several questions on these publications were made in the Commissioner’s office.”

Like he had told the PAC, Farrugia told the investigating officers that “the dragon” in an email was reference to his wife. “I believed it because he never changed version on this, even after the pardon was given. And it wasn’t a matter that he should have really lied about.”

This is a reference to a 2010 Yahoo chat with another Trafigura official, Naeem Ahmed. Ahmed and Farrugia had reportedly went to watch a World Cup 2010 football match together. In this chat, Ahmed asks Farrugia: "Did the dragon like the diamond?” According to Farrugia, "the dragon" was a reference to his wife and the diamond had been a €500 tanzanite (a blue diamond) which Farrugia had bought to his wife.

Cassar was also asked whether they had asked Farrugia on an email dated 29 April 2005, addressed to Total Tradin SA official Olivier de Richemont.

In the email, Farrugia wrote: "I know I am too nice./ We have to send confirmation about this./ Re payments./ Did not receive anything yet. Re the big one. I need it desperately as cannot do what I have to do./ Please do it or I will be in deep s.".

Cassar referred the PAC to the recording of the interrogation in Rizzo’s office, explaining that information was coming in all the time.

Cassar clarified that he was not involved in the discussions confirming Farrugia should be granted the presidential pardon. Although the police thought the pardon would be useful to gain information on what happened after 2005, the police did not uncover any criminal activity after 2005 even though a number of Enemalta officials kept receiving expensive gifts from Farrugia.

“Nothing came out on 2005 onwards, except for the gifts given,” Cassar said.

As to the interview with former minister Austin Gatt, the police had wanted to clarify a number of things. Gatt confirmed he knew Farrugia because he was from his constituency but they never discussed oil tenders. Asked whether Gatt was asked about emails including “AG” and “Aust”, Cassar said it could be that these emails could have been published after the interrogation with Gatt.

“I can’t remember whether we specifically asked about it,” he said, adding that Farrugia had always said that the acronyms referred to Gatt.

Farrugia had wanted to know how the privatisation of the petroleum division was to take place and had asked Gatt about it.

Cassar revealed that the police had placed former finance minister Tonio Fenech and Farrugia in the same room for a confrontation, following a decision by Rizzo.

“I don’t think they were confronted because they had made contradictory statements. They actually confirmed what they both had always stated. Fenech almost corroborated what Farrugia said,” he said.

Cassar added that questions on why a decision to confront them was taken should be directed to John Rizzo.

The artisan clock donated to Fenech was valued at Lm500, he said.

Cassar confirmed a previous testimony by Gafa who told the PAC that the investigative team had also wanted to arraign four of Farrugia’s brothers and Trafigura’s representative Tim Waters.

Asked why these individuals have so far not been arraigned, Cassar said he was no longer involved in the investigation and the question should be directed to Vassallo. Vassallo was asked to testify before this evening’s sitting but he is abroad. He also said that he did not give any handover on the case since Vassallo was still involved in the investigation.

Information on Tarcisio Mifsud and Alfred Mallia was given by Farrugia after the pardon was granted. Asked once again by Tourism Minister Edward Zammit Lewis whether the police had done some sort of verification process to ensure that Farrugia had told the whole truth. Cassar said that Farrugia knew the conditions of the pardon.