Caruana Galizia public inquiry: Konrad Mizzi’s first reaction to Panama blog was ‘bluff’
Former government head of communications Kurt Farrugia testifies in the Caruana Galizia public inquiry
Konrad Mizzi's initial reaction when Daphne Caruana Galizia had hinted at his Panama company and New Zealand trust was "bluff", the former head of government communications told a public inquiry.
Kurt Farrugia was testifying on his role within the Office of the Prime Minister in today's session of the Caruana Galizia public inquiry.
It was a cryptic post in February 2016 by Caruana Galizia that lifted the lid on the Panama Papers saga, when she published an image of a Panama hat and New Zealand lamb with reference to Mizzi.
Farrugia says that when he confronted Mizzi about his mention in the Running Commentary, Caruana Galizia’s blog, the minister had replied that it was “bluff”.
Farrugia said that he had spoken to Mizzi and Keith Schembri when Panama Papers broke to formulated a reaction. Asked by the inquiry presiding judge Michael Mallia what their reaction was, Farrugia replied: “I don't remember exactly but they had said that there were incorrect assertions.”
Farrugia said he had demanded detailed explanations from Mizzi and Schembri about the Panama companies. “They had said that the information was not true. They would deny any connection with the companies. Likewise with 17 Black... I had asked them and they had said they had no connection with 17 Black.”
Farrugia said he had no means of investigating or interfering with investigations but had to rely on the word of the two men implicated in Panama Papers.
However, Farrugia added that it was his belief at the time that people in such a position could not be embroiled in such controversies because their position becomes untenable. He had told them this.
Asked about official statements that praised Mizzi and Schembri, the former OPM official said that when Mizzi was finally removed from a ministerial position, "it was very hard to close certain projects". "Keith Schembri would coordinate certain work... so I wanted to reflect this in my public statements out of loyalty to the government," he said.
Farrugia added that Schembri would isolate himself on certain decisions.
Asked about the controversial public private partnership projects, which in most part were coordinated by Mizzi, Farrugia said he could not point fingers at people. "The decisions translated into better quality of life for people, although some things could have been done better in hindsight," he said.
Farrugia denied not speaking to Caruana Galizia after Panama Papers broke in 2016, insisting that he sometimes spoke to her and sometimes did not.
Egrant
Farrugia described Caruana Galizia as a long-standing critic of the PL, adding that there were instances when the information she published was not correct. He pointed to the Egrant saga when Caruana Galizia reported on her blog that the mysterious Panama company belonged to Muscat's wife, Michelle, and it had a bank account at Pilatus Bank.
He disagreed with the assertion that Caruana Galizia’s blog should be taken as an open source. "Many times, she was incorrect... I’m sorry, also because I lived through the Egrant saga, I know that the information was not correct… I remember Joseph Muscat saying that there could never be any attacks on his wife’s finances, such was his confidence that she was above board. I am beyond convinced that what Daphne Caruana Galizia was saying about Joseph and Michelle Muscat was false."
Fenech, Gasan and Apap Bologna
Asked point blank by Caruana Galizia family lawyer Jason Azzopardi whether Yorgen Fenech, Mark Gasan and Peter Apap Bologna had ever been at Labour HQ before the 2013 election, Farrugia answered with a plain "no".
Fenech, Gasan and Apap Bologna are part shareholders in the Electrogas consortium that won the gas power station bid soon after the PL came to power.
READ MORE: Brief Caruana Galizia public inquiry session hears journalist
The public inquiry is tasked with, amongst other things, determining whether the State did all it could to prevent the murder from happening.
Caruana Galizia was murdered in a car bomb just outside her Bidnija home on 16 October 2017. Three men, George Degiorgio, Alfred Degiorgio and Vince Muscat, have been charged with carrying out the assassination, while Yorgen Fenech is charged with masterminding the murder.
Melvin Theuma, who acted as a middleman between Fenech and the three killers, was granted a presidential pardon last year to tell all.
The inquiry is led by retired judge Michael Mallia, former chief justice Joseph Said Pullicino and Judge Abigail Lofaro.