TOTSA says Enemalta blacklist is ‘abusive, discriminatory’

The oil distribution company TOTSA Total Oil, a subsidiary of Swiss oil company Elf Aquitaine, has filed a judicial protest against Enemalta over its preclusion from tendering for the supply of oil.

In the protest submitted by lawyer Stefano Filletti, TOTSA said that Enemalta had informed it by means of a letter dated 20 February, that it would not invite or consider any offer by the company in future calls for tender.

The company said that the decision was motivated by allegations of corruption made against former Enemalta officials, who have been accused in the Maltese courts of receiving kickbacks from oil trader George Farrugia, the local representative for TOTSA and Trafigura.

"The company is one of the leading companies in the supply of oil products, and on many occasions was awarded tenders for the supply of oil following a public call for tenders," TOTSA said, which insisted that tenders were won because of its advantageous prices.

"We have replied to Enemalta's letter declaring that in no way were we involved or aware of any wrongdoing in any contract awarded by Enemalta. To date, no charges have been issued against TOTSA on these allegations.

"We believe Enemalta's decision is discriminatory, abusive and illegal," TOTSA said.

Enemalta excluded both TOTSA and Trafigura from oil supply contracts back in February during police investigations concerning alleged illegal commissions in 2004 and 2005.

TOTSA is the oil trading arm of French oil major Total and Trafigura is a top five private oil trading house.

"Trafigura recognises that these are serious accusations," the trading house said in a statement emailed to Reuters. "In Malta, fuel supplies to Enemalta are made through a public tender process managed by the Government's Fuel Procurement Committee; Trafigura has regularly submitted bids in accordance with this tender process and when successful has delivered fuel to Enemalta," it said. "We are keeping the matter under review."

The Enemalta committee also decided to cancel its most recent fuel procurement tenders, even though some offers had already been received, as a precaution.

The police has so far arraigned in court former Enemalta chairman Tancred Tabone, former MOBC chief executive Frank Sammut, business partners Francis Portelli and Anthony Cassar, as well as former Enemalta financial controller Tarcisio Mifsud and fuel procurement committee member Alfred Mallia, accused of varying degrees of bribery, corruption and money laundering.

The arraignments followed a government decision to grant a presidential pardon to Total's former local agent, George Farrugia, in return for information given to the police and to a court.