Yorgen Fenech took lead on power station project because he ‘had time on his hands’

Public Accounts Committee hears Electrogas shareholder Paul Apap Bologna testify that Yorgen Fenech’s father wanted his son to lead the project because he had idle time on his hands • Denies discussing energy plan with Labour before 2013 election, confirms meeting Joseph Muscat socially

Electrogas shareholder Paul Apap Bologna (File photo: James Bianchi/MaltaToday)
Electrogas shareholder Paul Apap Bologna (File photo: James Bianchi/MaltaToday)

Yorgen Fenech’s deceased father wanted his son to take the Electrogas project forward because he had “little to do”, the Public Accounts Committee heard.

Electrogas shareholder Paul Apap Bologna testifying in the PAC on Wednesday said that it was George Fenech’s wish that the power station project was run by his son.

Apap Bologna was accompanied by his lawyer Giannella de Marco, who insisted that her client would not answer any questions that went beyond the remit of the PAC and the NAO report.

Apap Bologna had been the main promoter behind the gas power station project but after bringing the various partners together, left Yorgen Fenech to run the show.

Fenech was charged with masterminding the murder of journalist Daphne Caruana Galizia in 2019 and the compilation of evidence against him is ongoing.

Asked by Nationalist MP Karol Aquilina why he had taken a step back, Apap Bologna replied: “Mr George Fenech wished that this project is run by his son. I am not an argumentative person and George Fenech had a strong personality… Yorgen had very little to do at the time and George Fenech wanted his son to take the project forward. He [Yorgen] had more time on his hands than any of us.”

George Fenech died in December 2014 with his son inheriting his share of the Tumas Group.

When confronted by PN MP Ryan callus about his testimony in the Daphne Caruana Galizia public inquiry - Apap Bologna had said the reason for Yorgen taking the lead was his competence - the witness added “that was also a reason”.

The PAC is probing the findings of the National Audit Office into the award of the Electrogas tender in 2013. The committee is chaired by PN MP Beppe Fenech Adami.

Apap Bologna, who had originally proposed a gas power station project to the previous Nationalist administration in 2006, repeatedly denied ever discussing his idea with the Labour Party before the 2013 general election. “Absolutely not,” he told the committee.

He insisted that he never met Keith Schembri and Konrad Mizzi before the election.

Meeting Joseph Muscat socially

Paul Apap Bologna met Joseph Muscat 'three or four times' socially before the 2013 election but denied discussing the gas power station project
Paul Apap Bologna met Joseph Muscat 'three or four times' socially before the 2013 election but denied discussing the gas power station project

However, he confirmed having met then Opposition leader Joseph Muscat on “three or four social occasions” but denied discussing the energy project.

Asked by Aquilina whether the social occasions were dinners held at a sitting minister’s house and for which Muscat was also present, Apap Bologna invoked his right to silence.

“I’ve never discussed the energy project and refrain from answering this question. I am invoking my right to silence,” he insisted, adding that he did not remember how many people were invited for these occasions.

Apap Bologna said that when on 9 January 2013, the Labour Party unveiled its gas energy plan at the start of the electoral campaign, he approached Yorgen Fenech with his original idea.

“I did not take this project to the Opposition… I did not need to approach them when they publicly committed to going for LNG. Around 18 January, I presented the proposal to Yorgen Fenech who presented it to his father. Yorgen told me that if his father was interested he would get back to me,” Apap Bologna testified.

He said Yorgen got back to him some days later and told him that his father wanted to meet him.

“George Fenech told me he was interested because they had previously tendered with an Israeli company for a gas project which they lost to BWSC… George spoke to Gasan, we met and decided to move ahead,” Apap Bologna insisted.

Apap Bologna, through his company CP Holdings, is a shareholder in GEM Holdings, which in turn is a shareholder in Electrogas.

Originally, the Maltese partners in GEM Holdings were CP Holdings, the Tumas Group and the Gasan Group, each on equal footing.

The 10% shareholding and friendship

However, in May 2014, Yorgen Fenech set up a company, New Energy, which acquired 10% shareholding in GEM.

“My shareholding like other shareholders was reduced because Yorgen Fenech requested that he be given a portion of the project because he was doing all the work related to it,” Apap Bologna said.

He added that CP Holdings’ shareholding was further reduced because it could not commit more to the growing capital expenditure and cost overruns.

Apap Bologna was also asked by Aquilina on the type of relationship he had with Yorgen Fenech and whether he had been asked a favour by Fenech.

This is how the exchange developed:

 

Karol Aquilina (KA): Was the gas power station project the first and only time you approached Yorgen Fenech with a business proposal?

Paul Apap Bologna (PAB): I never tried to pitch any other business proposal to Yorgen Fenech before Electrogas.

KA: Was there any occasion when Yorgen Fenech called you to ask for anything? A favour?

PAB: I invoke my right to silence.

KA: Did you ever supply Yorgen Fenech with anything?

PAB: I once helped his father who was very unwell.

KA: Did you ever provide Yorgen Fenech with anything?

PAB: I am not understanding the question.

KA: You have a medicines company and access to various things. Did you ever provide Yorgen Fenech with something?

PAB: I don’t know what you are talking about… He asked me to help him once with his father’s medications.

KA: Did Yorgen Fenech buy something from you?

PAB: I don’t remember.

KA: Did you ever give him a present?

PAB: If it was his birthday and I was invited I would have given him a bottle of wine.

KA: Did he give you a present or a birthday present?

PAB: A very nice bottle of wine, because he was very generous.

KA: In a state of panic, did Yorgen Fenech ever ask you anything?

PAB: I don’t know what you are asking and referring to.

KA: How do you describe your relation with Yorgen Fenech?

PAB: A friendship developed over the lifespan of the project arrived… We became friends… we used to meet up once in a while.

KA: When was the last time you met?

PAB: This is out of the scope of this committee and I exercise my right to silence.

KA: When was the last time you communicated with him?

PAB: I invoke my right to silence.

KA: Are you sorry for what happened?

PAB: I invoke my right to silence.