Commission invoices never included Tancred Tabone's name, witness tells court

No documents ever emerged showing that former Enemalta chairman Tancred Tabone made any financial gains through meetings he had with pardoned oil trader George Farrugia, MaltaToday Managing Editor Saviour Balzan said in court.

Testifying in the compilation of evidence against Tabone, charged with having accepted bribes for the supply of oil to Enemalta, Balzan said he was never given any documents showing financial transactions to Tancred Tabone.

"I have email correspondence mentioning Tabone together with other people involved with Enemalta. I also know he had a business relation with Frank Sammut but nothing else," Balzan said.

In a politically loaded question, prosecuting officer Inspector Jonathan Ferris asked whether the Maltese citizens were the ones who footed the bill for any kickback.

"In any democracy, it's always the citizen who pays when bribery is involved. Ironically, Enemalta at the time was purchasing oil at a very reasonable and decent price," he said.

Printouts from a computer device made their way to the MediaToday Managing Editor's desk after claims that Farrugia was evading tax and defrauding his brother remain unheeded by the authorities.

"A person close to Farrugia had told one of the Prime Minister's [Gonzi] security detail he had documents substantiating these claims. The informant was instructed to hand the documents to then Malta Security Service Head Godfrey Scicluna. Scicluna passed the file to the Tax Compliance Unit and Austin Gatt's ministry. However a number of documents disappeared from the file and no action was taken," Balzan said.

MaltaToday received reliable information about a transaction between George Farrugia, under the name of PowerPlan Ltd, and a company registered under former MOBC chief Frank Sammut. The newspaper published the story on 20 January 2013. Subsequently the police investigated the matter and a number of people were arraigned, "including people not related to the case" Balzan said.

Cross examined by defence lawyer Giannella de Marco, the witness confirmed he had published two invoices, one by Frank Sammut and the other by George Farrugia. While going through the documents he had received, Balzan noticed that the letterheads looked like they had been tampered with. However, the invoices themselves looked genuine.

"Similarities between the two invoices led me to believe these had actually been generated by the same person. Later I was informed that Farrugia's wife also used his computer. Although MataToday is in possession of other invoices, none of these involve or pertained to Tancred Tabone," Balzan said.

"I also ran comparisons between what Trafigura was invoicing Enemalta and what Farrugia was paying Sammut. I published a rundown of events from the information I had received. Email correspondence mentioned Tancred Tabone as then chairman of Enemalta but his name was never on any transaction. Correspondence and requests for meetings between George Farrugia and Tabone never implied the latter received anything from the oil trader. And while it seemed strange that Farrugia was so adamant in regularly asking to meet with Tabone, it later transpired he was a very persistent businessman who kept trying to meet everyone around."

At the end of the sitting, Inspector Ferris and the witness engaged in an exchange of opinions when Balzan refused to reveal the identity of his source.

The witness reiterated that he neither stole any information, nor was any information given to him by the police or the courts.

"During meetings I had with then Assistant Commissioner Michael Cassar and Superintendent Paul Vassallo I was made to believe they knew the identity of the source. I will never ever reveal my source and I'm ready to go to prison if the court does not protect the identity of my source. The police acted in ways showing me they knew who the source was, so why are demanding the answer from me?" Balzan said.

The prosecuting officer however insisted that only police sources were fully protected at law and he will be filing a court application forcing Balzan to reveal his source's identity. According to Ferris, doing so would enable him with his investigations.

Magistrate Claire Stafrace Zammit said the court would evaluate the reasons for the request once the application is filed.

"For the next sitting bring along an overnight bag so if the application is substantiated and accepted and you insist on protecting your source, you'd be ready to spend the night behind bars," the Magistrate jokingly told Saviour Balzan.