Police issue garnishee orders in Enemalta oil scandal investigation

Assets owned by the companies of several of the persons involved in a police investigation into the procurement of fuel oil by Enemalta have been seized under a garnishee order, MaltaToday is informed.

This newspaper understands that the garnishee order was served on several company names - some of which have so far not featured in media reports - earlier this afternoon.

The asset freeze would mean that bank accounts for these companies would be frozen and impossible for withdrawals to be effected.

Nobody has been charged with any criminal offence so far since police started investigations into alleged kickbacks paid by commodities firm Trafigura to a Gibraltar-based company whose beneficiary was Frank Sammut, the then chief executive of the Malta Oil Bunkering Corporation at the time, for oil consignments to state utility Enemalta in 2004.

Police investigators have so far called in for questioning former investments minister Austin Gatt, who was responsible for Enemalta at the time, as well as former Enemalta chairman Tancred Tabone.

The Maltese agent for Trafigura, businessman George Farrugia, has reportedly asked for a presidential pardon in a bid to turn State's witness to cooperate in the investigation.

Frank Sammut was CEO of Enemalta's bunkering operation MOBC before his role was terminated in 2003, and then reappointed as a consultant to chairman Tancred Tabone between August 2003 and August 2004.

Sammut later left MOBC to join the private sector.

Prime Minister Lawrence Gonzi last week was quoted as saying that Sammut's position had been terminated over a conflict of interest, although this conflicts with earlier accounts from the finance ministry that Sammut's contract was officially terminated when the MOBC was sold off by Enemalta to the state as part of a recapitalisation process, for which Sammut was eventually paid €95,000 in a golden handshake.

The OPM now claims it was aware of the conflict of interest when it was flagged in parliament by Labour MP Leo Brincat in 2004.