MaltaToday revelation on Frank Sammut shows ‘blatant corruption’

Austin Gatt's former head of secretariat at the time when Enemalta was under the minister's remit has categorically stated that MaltaToday's revelations on payments made by Dutch commodities supplier Trafigura to a chief executive of the MOBC have shown "blatant corruption" had taken place.

In a defence of Gatt, Claudio Grech - today a Nationalist candidate - said the minister should not shoulder the responsibility for the actions of Frank Sammut, who is alleged to have received consultancy fees from Trafigura for a $4.4 million consignment of fuel to Enemalta in 2004,

"God forbid that the minister must shoulder responsibility for each and every person which falls under his remit," Grech said.

Instead Grech pointed out that Sammut had been serving as a consultant to Enemalta chairman Tancred Tabone, who then doubled up as MOBC chairman.

This remark, made by Bondiplus on TVM on Tuesday night, was pounced upon by Labour candidate and criminal defence lawyer Manuel Mallia, who challenged Grech to say why Tabone had felt the need for a consultant at MOBC. "Does it make any sense for a state corporation chairman, who already has a number of consultants, to ask for another one?" Mallia asked.

The government has already declared that Sammut was a director on the Enemalta board up until 1990 and then a consultant to the corporation up until 1994. He was then appointed MOBC chief executive in 1997, but removed from the position in 2004 - there is no confirmation yet whether the termination of his contract was based on corruption allegations made at the time, or because MOBC had ceased operations as a bunkering terminal after being sold to government by Enemalta.

Documents published by MaltaToday show that Sammut was the beneficiary of consultancy fees paid by Trafigura into an HSBC bank account in Lugano, Switzerland to a company in Gibraltar.

The $19,600 payment was made for a $4.4 million consignment of fuel oil to Enemalta, made at the time Sammut was still CEO at MOBC, then part of Enemalta.

Claudio Grech has however said that Frank Sammut was not on the Ememalta fuel procurement committee at the time the kickbacks were paid. "The fuel procurement committee is composed of a number of individuals. We cannot gauge Sammut's influence. Frank Sammut was a consultant to the Enemalta chairperson."

Despite this, Grech declared that "blatant corruption has occurred, without a doubt."

The PL's Manuel Mallia asked why the company in question, Trafigura, would pay commission to somebody who had no influence on the procurement process. He also questioned why the Enemalta chairperson of the time would need a consultant when he had the combined expertise of the procurement committee at his disposal.

Mallia mentioned Trafigura's long history of corruption, as originally reported in MaltaToday. "If a commission was paid in 2004, has any more been paid since then. Was Sammut working alone?"