Caruana Galizia public inquiry: Muscat asked MPs individually on their stand on Panamagate
Energy minister Michael Farrugia tells inquiry that Joseph Muscat asked Labour MPs individually for their take on Konrad Mizzi’s Panama company during the Panama Papers
Joseph Muscat had approached Labour MPs individually to gauge their reaction on the Panama Papers revelations, Michael Farrugia told the Caruana Galizia public inquiry.
The Energy Minister said the prime minister had asked MPs for their feedback on what to do with Konrad Mizzi, who had been outed, along with Keith Schembri, as having a Panama company.
Farrugia told the inquiry that he told Muscat at the time that Mizzi and Schembri should shoulder political responsibility for their actions.
Eventually, the Labour parliamentary group supported Mizzi when he was subjected to a vote of no confidence in parliament.
Farrugia was made home affairs minister after the June 2017 election, a role he held until January 2020 when he was made energy minister by incoming Prime Minister Robert Abela.
Replying to questions from the board, Farrugia said he did not interfere in police investigations and hours after Daphne Caruana Galizia was murdered he had asked his Dutch counterpart for assistance in the investigation.
Farrugia said his job was to ensure the police had all the necessary resources to carry out investigations.
He said the decision to offer a reward of €1 million to whoever had information on the Caruana Galizia murder was taken by the prime minister. However, all information the police had obtained was through their investigations.
Asked about references to Muscat’s kitchen cabinet, in testimony given by Cabinet colleagues Evarist Bartolo and Edward Scicluna, Farrugia said he was not aware of its existence and was not part of it.
Farrugia said he did not know Yorgen Fenech and only met him once when the businessman requested a meeting with him on a proposal for land reclamation outside Portomaso. Farrugia was then parliamentary secretary responsible for planning within the OPM.
Asked whether he was made aware as energy minister that Fenech in March 2017 was planning a project in Bangladesh that was similar to the Electrogas project in Malta, Farrugia answered with a plain “no”.
The first person to testify in today's inquiry was engineer James Camenzuli, who was on the evaluation committee at Projects Malta that selected VGH as the preferred bidder for the hospitals concession.
Camenzuli said from the three bidders that showed an interes, two were immediately disqualified because they had important documents and information missing from their bid, including a bid bond.
He said this left VGH as the only bidder. Camenzuli said the evaluation committee's role was to determine whether VGH had satisfied the conditions of the request for proposals.
Camenzuli said the committee was satisfied with the bid put forward by VGH.
The company with no prior background in the medical field was eventually awarded the multi-million euro concession to run and transform Gozo General Hospital, St Luke's Hospital and Karin Grech rehabilitation centre. However, the company went belly up as it failed to deliver on any of the promised investment until the concession was then transferred to American outfit Steward Health Care.
The public inquiry into the murder of journalist Daphne Caruana Galizia 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, and includes former chief justice Joseph Said Pullicino and Judge Abigail Lofaro.
Camenzuli cannot recall who the shareholders of Oxley were. Detailed information was included in the bid. “Our recommendation was that the preferred bidder was VGH, where the government could tkae the negotiations to the next stage.” Matthew Vella
Burlo’s report found two of the bids are non-compliant due to lack of bid bonds, insufficient copies etc. The remaining bid was VGH’s. “We decided that it was a very comprehensive bid. Two board members dealt with the financial issue, but none of the board had medical expertise; so Charles Grixti was assigned by Projects Malta to help.”
Camenzuli says the RFP said that the bidders had to give evidence of their medical and financial knowledge. “VGH gave a solid and concrete basis for their bid on the strength of three letters of comfort. We had black on white, who would make good for them. Their financial experts were PWC.”
Camenzuli said VGH was affiliated to several other companies. “This was a design and build and operate project. They had appointed Healey, an American design company. On the financial front, the UBO was Oxley Group - a strong company and healthcare investor.” Matthew Vella
Mallia reserves the right to rule on the issue at a later stage. Matthew Vella