Engineer speaks of ‘open and transparent’ fuel procurement during Tabone’s chairmanship

“All of Enemalta’s fuel procurement” during the chairmanship of Tancred Tabone was “open and transparent” to the members of the fuel procurement committee, an Enemalta engineer has told the court.

In his testimony, Philip Borg – who at the time was manager of the Petroleum Division - said that Tabone was very good at negotiating the best prices in the fuel deals. 

Tabone is facing criminal charges related to the bribery by Trafigura agents in Malta of Enemalta officials for the procurement of oil, mainly on the basis of testimony by pardoned oil trader George Farrugia, who organised the kickbacks.

Borg explained in some detail how tenders for oil procurement were issued by the corporation. 

At the time, the corporation bought oil shipments which varied from six months to a year.

When the fuel supply would be running low, Borg would notify the chairman to call a meeting of the fuel procurement committee. Tabone would set the date and time. The call for tenders would be sent out to clients that were included in a list that was accumulated during the years. The tender, Borg explained, would include specifications, amount and the deadline. 

The offers that come in were then reviewed during these meetings. Tabone would head these meetings, held in his board room.

After a short list is compiled, the chairman would call the companies that presented an offer for clarifications and to negotiate a better price, the witness said. These phone calls were put on speaker for everyone to hear.

Answering questions by the defence lawyer Gianella De Marco, Borg explained that the specifications included in the tender were according to EU laws and decided by Enemalta.

TOTSA and Trafigura were the most frequent and most successful bidders, the witness said. These deals were done directly with the corporation, without an intermediary agent.

Second witness on the stand was the former Enemalta Chief Financial Officer, Pippo Pandolfino. He confirmed Borg’s testimony about the tendering process. He explained how those bids that were refused, would be sealed in an envelope and locked in a safe in the boardroom.

The case will continue on 25 January.