Oil trader had meetings with Austin Gatt and Lawrence Gonzi

Emails presented today at court by MaltaToday managing editor Saviour Balzan reveal that, contrary to past claims, oil trader George Farrugia knew both former transport minister Austin Gatt and then Prime Minister Lawrence Gonzi and held regular meetings with the two.

In a previously unpublished document, Farrugia informs George Stassis, managing director of Moil Coal Trading Co. Ltd, of the outcome of a tendering process for the privatization of Enemalta petroleum division, prior to the tender being awarded.

Former transport minister Austin Gatt filed a defamation suit against Balzan for MaltaToday's reports on the scale of corruption inside Enemalta, which led to corruption charges filed against former Enemalta chairman Tancred Tabone and former consultant Frank Sammut. MaltaToday broke the story that Sammut had been paid commissions by commodities giant Trafigura through an offshore account, for the supply of oil to the state energy corporation Enemalta.

Taking the witness stand, Balzan said that meetings between politicians, bidders and Enemalta management used to be held routinely and on a regular basis without any form of protocol. Asked to highlight who he referred to when mentioning politicians, Balzan said: "from the documents I'm presenting today it is very clear that the meetings were held with former energy minister Austin Gatt and former prime minister Lawrence Gonzi."

Exhibited emails

An email dated 2 April 2007 confirms that oil trader turned State's evidence, George Farrugia, not only knew Austin Gatt but was aware of his own opinion about competitor Falzon Oils.

The email sent by Farrugia reads: "I know for a fact that his (Falzon's) relations with Enemalta and with Aust. is very bad. I know that if there is nothing going on between TOTAL, myself and Falzon, Falzon will finalise a deal with Shell. He (Falzon) is proposing to do a JV [joint venture] with me and should TOTAL fail to get to the tender stage, I with him be involved with talks with other companies interested in the process".

In another email, dated 8 May 2007, Farrugia asks Frank Sammut for details and information regarding the value chain Total would need to consider retailing fuel in Malta. Frank  Sammut, had been previously head of Enemalta's bunkering operations, is asked for information about VAT, excise duty, price at the pump, Enemalta's commission, a retailer's commission, a transporter's commission, and "any other costs or commissions".

Entrepreneur Paul Hili, a person known to be very close to Austin Gatt, is copied in the email.

Previously unpublished, an email dated 16 May 2008 reads how Farrugia gave details about the situation in the tendering process for the privatisation of Enemalta's petroleum division, prior to the contract being awarded. Farrugia informs George Stassis, Moil Coal Trading's managing director, that in the tendering process Falzon and BB Energy had no chance, while Island Bunker Oils was the main competitor and PPL (PowerPlan Ltd) were the best bidders.

PowerPlan was Farrugia's family business which he ran with his brothers, better known as the John's Group.

PPL were eventually awarded the bid. Stassis replies: "Hi Partner, Thank You! I have a feeling we will play ball one way or the other! Take Care!".

At the time Alex Tranter was Enemalta's chairman, while Island Bunker Oils was a company formally led by Francis Portelli and Anthony Cassar, with Tancred Tabone and Frank Sammut as their silent partners.

In an email dated 17 October 2009, Leonard Callus - who worked at the Office of the Prime Minister - enquires about a meeting that Farrugia had scheduled with the Prime Minister. In his reply, George Farrugia lists a number of companies being represented the meeting. The list includes Beppe Hili as managing director of Hili Group, Horizon Terminals and PowerPlan Ltd.

On 17 October 2009, Farrugia informs Leonard Callus that "Horizon Terminals would be inviting the PM and AG [Austin Gatt] to Dubai and possibly for dinner", but Callus replies: "I'm afraid that PM has parliamentary commitments. However they can always extend the invitation"

Saviour Balzan also exhibited a Yahoo Messenger chat between George Farrugia and Nicolas Vernerey of Gasoil. During the chat, Vernerey asks Farrugia: "You don't have a man inside?" to which the oil trader confirms with a "yes".

However the Vernerey complains that he feels they "have less control over the situation these days."

The final document exhibited was an email dated 11 February 2009, confirming that Nicolas Vernerey of Gasoil was present for meetings with various people inside Enemalta, including former chairman Alex Tranter.