Police investigating Island Bunkers’ massive cash withdrawals

Police have launched a money laundering investigation into the financial operations of Island Bunker Oils Limited (IBOL), which has so far only featured as the company in which former Enemalta chairman Tancred Tabone and Frank Sammut, the former chief executive of MOBC, held a hidden and direct conflict of interest.

The investigation is said to be running in parallel with the Enemalta oil procurement scandal, which was exposed by MaltaToday in its Sunday editions of 20 and 27 January.

Sources close to the probe confirmed with MaltaToday that investigators are looking into regular cash withdrawals by IBOL officials from Bank of Valletta's branch in Racecourse Street in Marsa.

The sources told this newspaper that as an example, the last cash withdrawal was made on 13 January from IBOL's US Dollar and Euro accounts held at BOV's Marsa branch. The sum of US$250,000 in cash and €100,000 also in cash were withdrawn from IBOL's accounts on the same morning of 13 January.

Investigators are also said to be in possession of documentation which provides evidence into regular twice or three-times monthly cash withdrawals of up to a quarter of a million dollars and €200,000.

A specialised unit of investigators from the Economic Crimes Unit are said to be looking into the transactions, while it is not known whether BOV officials were also interviewed about the withdrawals.

According to financial laws, cash withdrawals of €10,000 and over must be covered with a plausible justification, and in the absence of which the transaction must be flagged to the Police and other competent authorities.

Businessmen Francis Portelli, 60 of Ta' Xbiex and Anthony Cassar, 60 of Tarxien, both directors of IBOL, have so far been charged for having deliberately concealed the identity of former Enemalta chairman Tancred Tabone and his consultant Frank Sammut within the company's shareholding, through an elaborate scheme. Portelli and Cassar are also pleading not guilty to money laundering through allegedly generating illicit profits.

Tabone, 60 of Sliema and Sammut, 60 of Marsaxlokk, have meanwhile been charged separately with aggravated corruption, over allegations that they were paid commissions by oil trader George Farrugia and Dutch commodities giant Trafigura for the supply of oil to Enemalta.

Tabone occupied the post of MOBC chairman when IBOL was set up in 2002, but his interest was never declared since his shareholding was being kept in accounts owned by the other co-shareholders. Sammut was also MOBC chief executive.

Between 2002 and 2012, Island Bunker Oils sold $1.3 billion in bunkering that generated accumulated gross profits of $78 million, but still posted $4.4 million in losses.

Industry sources who spoke to MaltaToday said on inspection of IBOL's audited statements that fluctuations in the price of oil and foreign currency exchange - since IBOL trades in US dollars - could have been a factor in the company's losses.