Electrogas shareholder Paul Apap Bologna says Yorgen Fenech 17 Black link was ‘only an accusation in the media’

Electrogas shareholder Paul Apap Bologna testifies in public inquiry into the murder of journalist Daphne Caruana Galizia that Yorgen Fenech did not reply when queried by the Electrogas board about ownership of 17 Black

2 October 2020, 9:24am
by Matthew Agius

4 min read

Electrogas shareholder Paul Apap Bologna arriving in court to testify in Daphne Caruana Galizia public inquiry (Photo: James Bianchi/MaltaToday)

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Yorgen Fenech did not answer when queried by the Electrogas board over media reports linking him to 17 Black, according to fellow shareholder Paul Apap Bologna.

Apap Bologna, an Electrogas shareholder, was testifying in the Daphne Caruana Galizia public inquiry on Friday.

He said that he only got to know of Fenech’s ownership of 17 Black from the media. It was in November 2018 that a Reuters investigation established that Fenech owned 17 Black, a Dubai company that had appeared as a target client for the Panama companies belonging to Konrad Mizzi and Keith Schembri.

When it was suggested by the inquiry board that he should have been more worried with Fenech’s non-reply on 17 Black, Apap Bologna replied: “It was only an accusation in the media.”

Throughout his testimony, Apap Bologna claimed several times that he was not privy to information about Electrogas and that he only learnt of things when they appeared in the media.

Apap Bologna denied ever meeting anyone from the Labour Party to discuss a gas power station project before the 2013 general election.

He had previously presented a gas power project to the Nationalist administration in 2008 but this was not taken up. Apap Bologna said he had talked to Lawrence Gonzi, George Pullicino, Austin Gatt and John Dalli about a proposal to have a gas-fired power station.

But interest waned when Pullicino did not even turn up for a meeting with the resources authority.

Queried about the similarities between the original gas project and the eventual Labour proposal and the deal secured by Electrogas, Apap Bologna insisted the original project was different.

He declined to comment on a presentation that had been made to the PN representatives in 2008, insisting it had been drawn up by British firm Gasol, which was roped in as a partner.

The project was eventually shelved.

Asked how the project was reactivated, Apap Bologna said that on 9 January 2013, the Labour Party came out with its energy plan.

“I thought ‘hey we have this project sitting there, why not reactivate it?’… I spoke to Yorgen Fenech... I had bought my first house from the Fenechs. I had bumped into him at a party. They know how to manage big projects, they have the means, so it made sense. In 2008, I had spoken to Mr Gasan. In 2013, it was George Fenech who presented the project to Gasan,” he testified.

Apap Bologna said GEM Holdings (Green Energy Malta) was set up. “We would be the green diamond of the Mediterranean,” he told the inquiry.

He denied having any discussions with Labour before the election. “As far as I know, nobody from my camp approached the Labour government,” Apap Bologna testified.

He also denied having participate in any meetings at Level 22 in Portomaso, when asked about this by Azzopardi.

Gasan statement

Meanwhile, in a statement from the Gasan Group, the company referred to the questioning of Paul Apap Bologna, during which lawyer Jason Azzopardi asserted that “it is a known fact” that Joe Gasan was organising private meetings with (the then Opposition Leader) Dr Joseph Muscat and other business leaders at Portomaso, prior to the 2013 election.

“Mr Gasan declares unequivocally that this is absolutely false and never happened. No such meetings were ever planned or held by Joe Gasan at any time. This assertion is a complete fabrication,” the statement read.

Previous sitting

In the previous sitting Superintendent George Cremona, head of the police Counter Terrorism Unit testified that the Maltese police had received a tip-off from their American counterparts in September last year of a weapon purchase on the dark web that was addressed to George Fenech at a Portomaso address.

George Fenech is the deceased father of murder suspect Yorgen Fenech.

The public inquiry into the murder of journalist Daphne Caruana Galizia is tasked with, amongst other things, determining whether the State did all it could to prevent the murder from happening.

Caruana Galizia was murdered in a car bomb just outside her Bidnija home on 16 October 2017.

Three men, George Degiorgio, Alfred Degiorgio and Vince Muscat, have been charged with carrying out the assassination, while Yorgen Fenech is charged with masterminding the murder.

Melvin Theuma, who acted as a middleman between Fenech and the three killers, was granted a presidential pardon last year to tell all.

The inquiry is led by retired judge Michael Mallia and includes former chief justice Joseph Said Pullicino and Judge Abigail Lofaro.

12:53 Thank you for following. Kurt Sansone

12:53 Apap Bologna’s testimony is over. The next sitting is on Monday at 2pm. Kurt Sansone

12:48 Apap Bologna says that he did not meet the director of Siemens in Malta this week, although he is aware that he was in Malta. Kurt Sansone

12:47 It is pointed out that he had never issued any statements to this effect. “You have my statement now, I'm not connected,” he replies. Kurt Sansone

12:46 Said Pullicino asks how the hype on the prime minister’s and Konrad Mizzi’s visit to Azerbaijan had effected the witness. “I obviously queried the scope of the visit but I never got an answer. We at Electrogas don't know what the purpose of their visit was. It is nothing to do with Electrogas,” he replies. Kurt Sansone

12:43 Apap Bologna: “Yes, I am sure.” Kurt Sansone

12:43 Azzopardi: “Are you sure?” Kurt Sansone

12:43 Apap Bologna scoffs: “Absoltuely not.” Kurt Sansone

12:42 Azzopardi: “Is it true that you donated €1 million to the Labour campaign in 2013?” Kurt Sansone

12:42 Apap Bologna: “No.” Kurt Sansone

12:41 Azzopardi: “Has Yorgen Fenech ever mentioned to you who the owner of Macbridge is?” Kurt Sansone

12:40 Lofaro: “I cannot warn you enough to be careful in your replies.” Kurt Sansone

12:40 Apap Bologna: “No, he did not.” Kurt Sansone

12:39 Azzopardi: “Did Edward Zammit Lewis set up meetings between yourself and Joseph Muscat?” Kurt Sansone

12:39 Apap Bologna: “I do not know.” Kurt Sansone

12:39 Azzopardi continues that on 16 October 2013, Caruana Galizia wrote another article on the alleged done deal concerning the power station, reminding her readers that back on 9 January, Konrad Mizzi told the press that the new power station would cost €376 million. Caruana Galizia’s blog read: ‘That was clearly the actual cost and if they had the actual cost they probably had the supplier to quote it to them. Now we learn through Gasol’s investor statement, published as mandated by stock exchange regulations (the London AIM list) that the power station will cost – oh, what a surprise – €370 million.’ “How did Konrad Mizzi know the exact figure?” Kurt Sansone

12:36 Apap Bologna: “I will have to check. Siemens would have been taking care of the issues relating to the power station. There would have been teams and committees dealing with these aspects.” Kurt Sansone

12:35 Azzopardi says that Daphne Caruana Galizia on 15 January 2013 quotes a risk assessment consultant on this topic. ‘This proper security risk assessment takes a year and is obligatory before the insurance takes on the risk,’ the quote goes. “Was the insurance an afterthought?” Kurt Sansone

12:33 “To insure the third-party risk for a power plant is a must, a sine qua non,” Azzopardi states. The witness agrees. Kurt Sansone

12:33 Apap Bologna says he was not aware that Yorgen Fenech was in negotiations with government over the bank guarantee. Kurt Sansone

12:32 Apap Bologna: “They were involved in downstream projects. They were doing a similar project in the Benin region... they were a company focusing on the infrastructure… I only became aware of the financial difficulties of Gasol when they could not go forward in 2015.” Kurt Sansone

12:31 Azzopardi: “How come a lead partner, a few months down the line is found to have financial difficulty. What was the need for Gasol?” Kurt Sansone

12:30 Apap Bologna: “No. I became aware when I was told that Gasol had financial issues at that point in time.” Kurt Sansone

12:30 Azzopardi: “What sort of due diligence took place? Just a year after, there were financial concerns on the financial standing of Electrogas. This was mid-2014. It became evident that the SSA was to be in effect. Were you aware of the concerns?” Kurt Sansone

12:28 Apap Bologna: “Gasol. I had one of my school friends from the UK working there.” Kurt Sansone

12:27 Azzopardi: “Who brought in Socar?” Kurt Sansone

12:27 Apap Bologna: “I don't know. I have no clue.” Kurt Sansone

12:27 Azzopardi: “When was Electrogas told that the storage would be offshore?” Kurt Sansone

12:26 The witness maintains that when he wasn't a director he was not privy to the discussions at EGM level. Kurt Sansone

12:25 Apap Bologna: “No.” Kurt Sansone

12:25 Azzopardi says the call for expression of interest took place on 11 April 2013, just a month after the general election. “The audit office maintains that the security of supply agreement changed things dramatically. Were you at any time privy to discussions to clinch this security of supply agreement, which was crucial in reducing risk?” Kurt Sansone

12:24 Apap Bologna: “We were not privy to this information.” Kurt Sansone

12:23 Azzopardi reads from the NAO report: “The security and supply agreement was first circulated on 5 September 2013. There was not an equal playing field, right?” Kurt Sansone

12:22 “You're asking me to answer a question on a document produced by Gasol...” the witness begins but is cut off by Azzopardi, who points out that it is costing the taxpayer a large sum of money every day. Kurt Sansone

12:22 “Payment based on capacity. What does it entail,” Azzopardi asks. Kurt Sansone

12:21 Apap Bologna: “The uptake of electricity and gas.” Kurt Sansone

12:21 Azzopardi asks: “What does government guarantee imply here?” Kurt Sansone

12:20 Apap Bologna: “I cannot answer that because I didn't put together that presentation (the 2008 presentation). That was a presentation put together by Gasol, who would have been presenting international standards of how a project like this happens.” Kurt Sansone

12:19 Azzopardi: “The 20-year term in the proposal is very similar to the 18 years in the contract signed with Enemalta.” Kurt Sansone

12:18 Apap Bologna: “It was a joint decision between Yorgen Fenech, myself and Gasan.” Kurt Sansone

12:17 Azzopardi asks why the concept paper before the 2013 election said the Maltese consortium of companies was fronted by Paul Apap Bologna but when the pre-electoral manifesto proposed a restructuring of the energy sector, Yorgen Fenech became the lead man. The lawyer says that even on the submission documents, Fenech was the lead. Kurt Sansone

12:15 The witness is asked about a meeting with Gasan at Level 22 Portomaso. He replies that he was not aware or present for any such meeting. Kurt Sansone

12:13 Azzopardi asks whether he had “not crossed the bridge” and spoken to the PL after the PN didn't show interest in the gas power project. “That is correct,” Apap Bologna says. Kurt Sansone

12:09 Azzopardi tells him the date of when this happened is not important. “What is important is this: would it have been logical and reasonable for an old salt in the business world to ask why Fenech, a paragon of business acumen, was stepping down at that time. Remember that there will be data coming out of Yorgen Fenech's mobile in a few days.” Kurt Sansone

12:08 Apap Bologna: “We had a board meeting of GEM after Fenech resigned and I offered to step in…” Kurt Sansone

12:05 Jason Azzopardi asks him how he became a director of Electrogas. Kurt Sansone

12:05 We’re back inside the court hall. The inquiry board reminds the witness that he is under oath. The board is hearing the testimony of Paul Apap Bologna, an Electrogas shareholder. Kurt Sansone

11:53 Azzopardi asks for a five-minute recess. Mark Gasan will testify on Monday at 2pm since there is no time for him today. The board takes a 10-minute break. Kurt Sansone

11:52 Comdini Cachia asks about the Bangladesh project, similar to the Electrogas one, which Yorgen Fenech wanted to start. “It was none of my business and I found out about it from the press.” Kurt Sansone

11:51 Lawyer Jason Azzopardi groans. Kurt Sansone

11:51 Apap Bologna: “The model has been shifted often... I would have to get back to you on that by I estimate 2023.” Kurt Sansone

11:50 Comodini Cachia: “The financial projections indicate that you'll make a profit on which year?” Kurt Sansone

11:49 Apap Bologna: “We had success fees and development fees of €6.1million. I then reinvested this in Electrogas - expenses for the government guarantee, which amounted to around €3.6 million, bank charges around €400,000…” Kurt Sansone

11:48 Comodini Cachia: “We're being told that you haven't made a profit. Have you received any money from this project?” Kurt Sansone

11:45 Apap Bologna: “I knew he was going to make an article but not the contents.” Kurt Sansone

11:45 “Always from the press,” notes Lofaro. Kurt Sansone

11:44 He says the Gasans did not inform him of their position on Electrogas before they went for the public statement in which they announced they wanted out of the project. Kurt Sansone

11:43 Apap Bologna: “Substantial. In the region of €9 million. It is the shareholding in Electrogas Malta and GEM. This is the money put in through cash, loans and guarantees.” Kurt Sansone

11:41 Comodini Cachia asks what is his financial commitment in this project. Kurt Sansone

11:40 It is pointed out that there was an email sent by BOV in 2017 brought to Electrogas’s attention that the company was in default on the loan facility. “I was not copied in the email. This was being handled by Electrogas and I was not involved. I didn't know we were in default. I didn’t know up till today,” he replies. Kurt Sansone

11:37 He says that he was not privy to the meetings. Kurt Sansone

11:37 Did he participate in any meetings with Alfred Camilleri from the Ministry of Finance? “No,” the witness replies. Kurt Sansone

11:36 He is asked what the €450 million facility guaranteed by the State was used for. “It was used to pay the contractors and developers to get the project up and running. You will see these figures when the audited accounts come out imminently,” he replies. Kurt Sansone

11:34 Apap Bologna adds he is aware of the lending facilities but is not aware of the specifics of how the government guarantee came into place. “I need to go back and look at the detail.” Kurt Sansone

11:33 Comodini Cachia asks if there are emails about this in which he was copied in and Mark Gasan was not. “I will need to double-check,” the witness replies. Kurt Sansone

11:31 She asks whether it is normal that excise duty is exempted. “I am under the impression that it is the consumer who pays excise duty,” he replies. “I became aware of the excise tax issue when it came up in the media.” Kurt Sansone

11:29 Comodini Cachia asks whether Konrad Mizzi had negotiated an agreement with Enemalta to absorb €5 million in excise tax due by Electrogas. Kurt Sansone

11:25 She says that there are other emails to this effect. One of them was from HSBC expressing hesitancy. She asks Apap Bologna whether he was concerned that the lenders were nervous to give Electrogas the loan facility. Kurt Sansone

11:23 Comodini Cachia reads emails in which Paul Apap Bologna is not copied in. ‘From Musayev: Dear all, YF and I spoke to KM... date is not attainable and we are slipping. Need a plan to bridge with lenders, but extension is not on the table.’ Kurt Sansone

11:22 Apap Bologna: “It is an accusation. The finger is being pointed at us without... [evidence].” Kurt Sansone

11:20 Mallia: “It so happened that her death helped Electrogas reach financial closure. Doesn't that worry you?” Kurt Sansone

11:19 Apap Bologna: “I can't answer directly as I don't know... the situation as I know it was that we needed financial closure. The reason we hadn't got financial closure was because the government had to submit the contract to the European Commission.” Kurt Sansone

11:18 Judge Mallia: “We know that in December 2017 Electrogas was on the verge of bankruptcy, then it got the government guarantee and subsequently the security of supply agreement. We know at this time that the documents had already been leaked to Daphne Caruana Galizia. Had she not been killed in October 2017, what would the situation have been for Electrogas?” Kurt Sansone

11:16 “The whole setup is complicated,” explains Said Pullicino. “You are involved in many projects.” Apap Bologna insists: “I am involved in only one. Electrogas.” Kurt Sansone

11:14 “Gasan want out,” says Lofaro. “I never said that I didn't want out,” the witness replies. Kurt Sansone

11:13 Comodini Cachia notes that Nexia BT was the audit company for GEM holdings. Kurt Sansone

11:12 “How long have you known Brian Tonna from Nexia BT?” Comodini Cachia asks. Apap Bologna says he met him a few times. Kurt Sansone

11:09 He says that PWC had advised the company to carry out an audit from a financial and a forensic point of view. Kurt Sansone

11:07 Apap Bologna: “Of course he counts.” Kurt Sansone

11:07 The Auditor General disagrees, point out the board with reference to a National Audit Office report on the procurement process that led to the award of the tender to Electrogas. “Does he not count?” Kurt Sansone

11:06 Apap Bologna: “We contracted a company to do all the EGM searches. We've just spent a lot of money doing a lot of investigation on the Electrogas project. It’s not a risk free project, it had overruns, it is not a risk free project. We did a full report on our company from A-Z and it says there is nothing wrong.” Kurt Sansone

11:04 Questioning moves on about the involvement of Turab Musayev, a representative of Socar on the Electrogas board. Recent allegations about Enemalta’s investment in a Montenegro wind power plant, showed how Musayev and Fenech were privately involved in business between themselves. Apap Bologna says he was not aware that Yorgen Fenech had contact with Turab Musayev. “He no longer works for Socar Trading so it was a shock to us to read it in the press,” he adds. Kurt Sansone

11:00 Apap Bologna: “It was only an accusation in the media.” Kurt Sansone

11:00 “You should have been more worried given his reply?” Kurt Sansone

10:57 He says the Electrogas board had asked Yorgen Fenech if he was the owner of 17 Black but he did not give them a reply. Replying to a question as to whether he was aware of Fenech’s ownership of 17 Black, Apap Bologna says he only got to know when it was reported in the media. Kurt Sansone

10:53 Apap Bologna: “No, we went through all the documents... we contracted a foreign law firm with IT expertise to go through the whole lot independently.” Kurt Sansone

10:52 Comodini Cachia: “You relied on the outcome of an audit which you do not know exactly what it was about.” Kurt Sansone

10:51 He is asked whether as shareholders they took action after the allegations surfaced. “We audited everything from day one... all the way up to the present day,” he replies. Kurt Sansone

10:44 Apap Bologna says there were discussions on the Panama Papers and 17 Black at GEM level. The conclusion was that there was nothing untoward. Kurt Sansone

10:43 He speaks of the emails “stolen” from the company servers (the leak that ended up with Daphne Caruana Galizia). “It perplexes me, because these accusations are being made... I have an email where Electrogas found out about the leaks on 27 December 2017. They stopped the contract with ICT and they reported it to the police. Still today we do not know who stole this data.” Kurt Sansone

10:41 Apap Bologna: “Of course they did. The concerns were put at rest as the Electrogas directors went through all the records to check for any wrongdoing by the company and that none were found.” Kurt Sansone

10:39 He is asked: “So didn't the Panama Papers concern you?” Kurt Sansone

10:39 Apap Bologna: “We had a board meeting with Yorgen Fenech, immediately after the 17 Black...” Kurt Sansone

10:39 He is asked what action he took when the allegations came out in the press. Kurt Sansone

10:38 Apap Bologna: “Of course they do.” Kurt Sansone

10:37 The board asks: “Doesn't Electrogas or Siemens have some sort of anti-bribery setup?” Kurt Sansone

10:36 He is asked whether this bothered him. “I didn't question it,” Apap Bologna says. Kurt Sansone

10:36 Apap Bologna says he wasn't aware that Yorgen Fenech had close contact with Joseph Muscat, Konrad Mizzi and Keith Schembri. “I found out well after the bid was being put together from the infrastructure point of view. I found out from the media,” he says. Kurt Sansone

10:34 Comodini Cachia points out that Apap Bologna is now a director. “How are you coping?” Lofaro interjects: “So back in 2007 and 2008, when Yorgen Fenech was not involved, you had the expertise?” Kurt Sansone

10:33 Comodini Cachia says that the project was something he believed in. “I did,” Apap Bologna replies. She continues: “So why was Yorgen Fenech the first director?” He replies: “Because I didn't have the know how to put the concept together. With big project management, of course, Yorgen Fenech is more experienced.” Kurt Sansone

10:30 “It was myself and the Gasans at the time. I'm related to the Gasans. At the time, I barely knew the Fenechs,” Apap Bologna says. Kurt Sansone

10:29 Comodini Cachia asks who the “prominent business families” mentioned in the 2007 document were. Kurt Sansone

10:28 “I totally disagree with that,” says the witness. Madam Justice Lofaro interjects: “Maybe they did it behind your back.” Kurt Sansone

10:27 The board asks if the expression of interest published by the Labour government shortly after the election was tailor-made for Electrogas. Kurt Sansone

10:27 Lawyer Therese Comodini Cachia asks if he could exclude ever discussing the project with members of the then opposition Labour party, even socially. Apap Bologna excludes this. Kurt Sansone

10:26 Apap Bologna says Konrad Mizzi came out with the energy plan on 9 January 2013 and he met up with Yorgen Fenech a week to 10 days later. Kurt Sansone

10:23 Asked about Azerbaijani interests in the project, Apap Bologna says they came in as traders in oil and as equity shareholders. “They were introduced by Gasol and I had no qualms about them at the time,” he says. Kurt Sansone

10:22 Apap Bologna: “The shareholding of the companies was discussed in those six weeks. We also contracted serious companies like PWC to help us put this project together.” Kurt Sansone

10:21 Lofaro asks how the financial agreements were concluded within a month or six weeks. Kurt Sansone

10:21 Apap Bologna: “The approach to EDF came through my cousin who worked with them. Yorgen Fenech attended the eventual meeting. In Malta, the chairman of GE was interested in selling the equipment to us but we didn't accept. Socar and Siemens came through Gasol.” Kurt Sansone

10:18 Apap Bologna: “The British company International Power no longer existed, it had been acquired by EDF Suez and they weren't interested. Gasol is British too.” Kurt Sansone

10:18 The panel says that at a point he had decided to unhinge from the British side of the project and go to Azerbaijan. Kurt Sansone

10:15 Apap Bologna: “What is for sure was that the lead person on the project was Yorgen Fenech. He never said leave the political aspect to me.” Kurt Sansone

10:14 Said Pullicino asks whether he left the political side of the project to Yorgen Fenech. “You need to open up… Things need to be explained,” the judge chides. Kurt Sansone

10:13 Board: “Isn't it in your interest to know him, the leader of the Opposition and future prime minister?” Kurt Sansone

10:12 Apap Bologna: “I didn't know him.” Kurt Sansone

10:12 Apap Bologna says he met Joseph Muscat socially but had never discussed the project with him. The board is sceptical and press him for more detail. Kurt Sansone

10:11 Lofaro asks about Keith Schembri. Apap Bologna says he met Keith Schembri, “probably three times in the past seven years”. “I didn't meet Keith Schembri about the project,” he adds. Kurt Sansone

10:10 Apap Bologna: “I spoke to him for the infrastructure, the expertise in project management and financial backing. Then I went to speak to his dad. I told him I had spoken to the Gasans in 2007 and the only decent thing to do was to offer them to join us. George Fenech [Yorgen’s father] spoke to Joe Gasan.” Kurt Sansone

10:09 What was Fenech’s involvement, asks the board. Kurt Sansone

10:09 He continues that he met Yorgen Fenech around mid-January 2013. Kurt Sansone

10:08 Apap Bologna: “I didn't meet virtually.” Kurt Sansone

10:08 He says that the first time that he ever met Konrad Mizzi was after the award of the Electrogas contract. The board warn him to be careful. “Please be careful. 'Meet' can be virtually,” the board says. Kurt Sansone

10:06 Apap Bologna: “As far as I know, nobody from my camp approached the Labour government.” Kurt Sansone

10:06 He denies having any discussions before the election. The partners and contractors in the original proposal had all changed except Gasol, he says. Kurt Sansone

10:05 Lofaro points out that Konrad Mizzi had testified that he had all the details before the election. The board asks if he had met with Konrad Mizzi before the election to discuss the project. He replies: “Not that I know of.” Kurt Sansone

10:01 Apap Bologna: “We presented a 400MW plant in 2017... to change the interconnector into a profit centre not a cost centre. International Power, a UK company, knew about the energy problems in Italy and suggested using the interconnector to sell electricity to Italy.” Kurt Sansone

10:00 Lofaro asks how the project changed. Kurt Sansone

10:00 Apap Bologna says that this presentation was different to that given in 2013. “The request in the expression of interest was different,” he adds. Kurt Sansone

09:59 Chief justice emeritus Joseph Said Pullicino says Paul Borg Olivier had given the inquiry a presentation on an LNG project, which he said was forwarded to him by the witness. The presentation had been given to the PN government. Kurt Sansone

09:56 Apap Bologna says that GEM Holdings (Green Energy Malta) was set up. “We would be the green diamond of the Mediterranean,” he adds. Kurt Sansone

09:55 Apap Bologna: “I spoke to Yorgen Fenech... I had bought my first house from the Fenechs. I had bumped into him at a party. They know how to manage big projects, they have the means, so it made sense. In 2008, I had spoken to Mr Gasan. In 2013, it was George Fenech who presented the project to Gasan.” Kurt Sansone

09:54 Apap Bologna: “On 9 January 2013 there was a press release by the Labour Party, several actually, and I thought ‘hey we have this project sitting there, why not reactivate it?’” Kurt Sansone

09:53 Lofaro: “How had the project been reactivated?” Kurt Sansone

09:53 Madam Justice Abigail Lofaro asks if he had spoken to the Labour Party about the project. “I hadn't,” he says. Kurt Sansone

09:52 He says that then minister John Dalli had introduced him to the prime minister. Kurt Sansone

09:52 Apap Bologna: “I met with Minister Pullicino who set up a meeting with the resources authority. Pullicino did not attend the meeting at the last minute. We then decided to shelve the project because, although it was a very good project for Malta, things weren't moving forward and then we had the minister not joining his own meeting when we had foreign partners present.” Kurt Sansone

09:50 Apap Bologna says the prime minister had said it was a great project and understood that LNG was the future for Malta. Kurt Sansone

09:50 He says that it was also presented to then prime minister Lawrence Gonzi, ministers Austin Gatt, George Pullicino and John Dalli, and PN secretary general Paul Borg Olivier. Kurt Sansone

09:49 He says that the only cost effective way of reducing Malta's emissions to within limits was to have a gas turbine fired power plant. Apap Bologna adds that the proposal was presented to “quite a number of people in Malta” around 2007 and 2008. Kurt Sansone

09:47 Apap Bologna was educated abroad and had a lot of his friends abroad. A friend of his had been working in the LNG sector abroad in 2007 - Constantine Obermay. He says they had discussed issues on energy over dinner and a meeting with his friend's boss was arranged. A concept paper was drawn up based on the 2006 energy generation plan policy paper. Kurt Sansone

09:46 Apap Bologna came to Malta 20 years ago and works primarily in the pharmaceutical industry. “We have diversified and entered in the Electrogas project to build the power station at Delimara,” he says. Kurt Sansone

09:45 Judge Michael Mallia asks him about his background. Kurt Sansone

09:45 Paul Apap Bologna takes the stand and is administered the oath. He will testify in English. Kurt Sansone

09:44 Also in the courtroom are Yorgen Fenech's lawyers Gianluca Caruana Curran and Charles Mercieca, sitting at the back observing the proceedings. Kurt Sansone

09:44 The scene is set for another courtroom session. The judges enter and sit down. Kurt Sansone

09:36 Yorgen Fenech from the Tumas Group is facing murder charges after being accused of masterminding the assassination of Daphne Caruana Galizia. The journalist had been leaked a massive dump of emails and documents from the Electorgas servers before her murder. Furthermore, Fenech owned a Dubai company, 17 Black, that was listed as a target client of the Panama companies opened by then energy minister Konrad Mizzi and the ex-prime minister's chief of staff Keith Schembri. Kurt Sansone

09:31 Apap Bologna had been the original promotor of a plan to shift energy generation to gas-fired plants under the Nationalist administration before 2013. However, the PN government at the time had turned down the plan. Eventually, the Labour Party's energy plan unveiled before the 2013 election was similar to the Apap Bologna proposal. The Electrogas consortium eventually won the tender. Electrogas was initially made up of UK company Gasol, German firm Siemen's, Azerbaijan's State oil company Socar and three Maltese businessmen - Apap Bologna, the Tumas and Gasan families. Eventually, Gasol pulled out and its shares were distributed among the other companies. Kurt Sansone

09:27 We are waiting for another sitting in the Caruana Galizia public inquiry to start. Electrogas shareholders, Paul Apap Bologna and Mark Gasan are expected to testify today. Kurt Sansone

09:26 Good morning. Kurt Sansone

Matthew Agius is Senior Reporter on Law and Court Affairs at MaltaToday. He is also a Leg...