Minister denies meeting businessman on oil procurement

Transport Minister Austin Gatt has denied meeting businessman George Farrugia over any alleged contracts for the procurement of fuel consignments to state utility Enemalta.

Gatt's statement, issued late on Sunday afternoon, comes in response to a news report published by MaltaToday on the existence of emails showing Farrugia in regular contact with Enemalta officials and the minister and other oil companies, in a bid on his part to ensure the lucrative sale of oil to Enemalta.

Gatt has categorically denied meeting Farrugia to discuss Enemalta's oil procurement.

"I categorically and without any reservations, absolutely deny that anything of the sort ever happened or that any conversations I ever had with anyone at all - let alone George Farrugia - ever even remotely touched on the subject.

"If MaltaToday has even a shred of proof in this regard I expect them to give it to the Commissioner of Police so he could investigate me. If they do not have such proof then I expect them to retract it immediately."

Gatt said that Farrugia and his brothers, the owners of the John's Garage rental vehicle franchise, were a prominent family from Hamrun whom "any politician worth his salt, and that includes all Labour politicians, and contesting the first district will have."

"Any politician would have met George and his brothers a number of times and talked about one hundred and one things with them.

"What I can vouch for and can swear to is that in my long political career as minister I have never, ever talked with anyone, in any sector I have been responsible for, about tenders - let alone the tenders being mentioned. I have always refused to even entertain a conversation about any tenders and any complaints I have, over the years, received over the handling of tenders I have always had a stock reply - go to the Police, the Corruption Commission or the Ombudsman."

Gatt said he would be seeking legal advice as to whether MaltaToday's report was libellous in his regard. "If it is I will be more than happy to sue them."

In a reaction, MaltaToday managing editor Saviour Balzan said the emails MaltaToday had in its possession showed that George Farrugia had met with minister Austin Gatt, but did not in any way infer that Gatt was aware of or involved in any illicit deals.

"MaltaToday's report does not suggest that the minister was involved in any illicit behaviour, but the fact remains that George Farrugia lobbied with both Enemalta and politicians. The fact that MaltaToday uncovered this lobby and its vested interests should be applauded and not castigated. Until now we have been extremely careful in our choice of words and the presentation of documentation, but it is not up to us to investigate and do the work of the police."

Email correspondence, bank transfers and online chats revealed by MaltaToday show how businessman George Farrugia played a pivotal role in Enemalta's oil procurement decisions, while oil commodities companies Total and Trafigura worked closely with Enemalta's top officials, the former MOBC chief Frank Sammut and Farrugia himself.

The private correspondence could point to the reasons for Enemalta's long business commitment with Total and Trafigura, two of its major suppliers.

Invoices from Trafigura, similar to Frank Sammut's kickback invoice published last week in MaltaToday, show how businessman George Farrugia received commissions noted down as a 'consultancy' for specific sales of oil to Enemalta from Trafigura. The fees were deposited in Farrugia's Swiss bank account in Banque Privée Edmond de Rotschild in Geneva.

Also revealed are transcripts of online chats between Farrugia and Trafigura and Total officials, dating as recently as 2010. 

They include conversations between Nicolas Vernerey from Total, who asks George Farrugia about a "guy inside" Enemalta, and other bizarre chats with Trafigura's Naeem Ahmed. The extent of Frank Sammut's business interests show that while the MOBC chief executive was 'objectively' consulting Enemalta on the choice of the oil purchase, he had entered into contractual agreements with Trafigura for sale of oil in Morocco under the guise of the company Bahamas Co.

Trafigura's Naeem Ahmed also tells George Farrugia in one piece of correspondence: "As promised I have tried to increase the commission rates, I have been unsuccessful, so for all business for 2004 commissions it must remain 10 per cent and will only increase to 15 per cent for all new business for 2005."

The extensive correspondence in MaltaToday's hands makes it difficult to decipher whether Enemalta officials are acting in a bona fide capacity or not, with many top officials invited for dinners in Malta or London or Geneva; and in the case of Enemalta Chairman Alex Tranter and Enemalta chief financial officer Pippo Pandolfino, in Miami.

George Farrugia's extensive knowledge of Enemalta's tendering process seems to have no limits: in an email to George Stassis, managing director of Moil Coal Company Ltd, a multinational company involved in the sale of petroleum products, he writes in relation to the privatisation of Enemalta's petroleum division on 16 May, 2008: "Hi Partner, Only 4 bids have been submitted. Bids as follows, Falzon (no chance), BB Energy (no chance), Island Bunkering Oils (Main competitor) and the best PPL. Best Regards and thanks again for your trust in me. George Farrugia".