Updated | Email reveals George Farrugia told Total rep he had met Austin Gatt

Updated with statement from Austin Gatt at 1:26pm

George Farrugia, an oil trader for commodities firms Total and Trafigura, did meet minister Austin Gatt during the time that Enemalta was under his responsibility, according to an email he sent to a Total representative.

Farrugia - who will turn State's witness after being awarded a presidential pardon to reveal details of Trafigura kickbacks paid to Enemalta officials on the supply of oil to the state utility - is clearly shown informing Total representative Mattieu Rouquie that he did meet Gatt.

The email contradicts claims by Gatt himself, who has sued MaltaToday for libel when it broke the news that former Enemalta consultant Frank Sammut was paid commissions by Trafigura for a consignment of oil to Enemalta.

In an email addressed to Rouquie on 19 June, 2004, Farrugia says:

"Just to inform you that I will not be able to come to Paris this week due to having to spend more time in Geneva at TOTSA on some supply contracts to Malta. In the meantime I have had meetings with top officials and the minister himself and feel that it is still too early to start any negotiations. I will advise you at a later date when it will be appropriate. Once again I apologise and see you soon."

In a statement, Gatt denied ever discussing oil tenders with Farrugia: "I repeat once again that I categorically deny that I have ever, ever discussed Enemalta oil tenders with George Farrugia or anyone else for that matter. The undated email (which is not reproduced) does not remotely change this position and does not even refer to the purchase of oil."

Gatt has also denied ever discussing the business of oil tenders after the Sunday Times published similar emails of conversations between Farrugia and a Trafigura representative (emails below).

MaltaToday is reliably informed that the police have decided to postpone the arraignment of four suspects in the ongoing oil procurement investigation, as a result of a presidential pardon to Farrugia, the director of Aikon Ltd.

Formerly the director of Powerplan, the oil trading subsidiary of his family business John's Group of Companies, Farrugia fell out with his brothers when they filed a judicial protest accusing him of siphoning off millions of euros in oil profits. The matter was settled in a €1.2 million out of court agreement.

The police are understood to be unaware of what new information Farrugia will actually add to the investigation in exchange for a 'conditional' pardon, and whether he will implicate other individuals in the scandal. If he fails to offer any new angle he could prejudice his presidential pardon.

What will be interesting is whether Farrugia, who is represented by Nationalist MP Franco Debono and Siegfried Borg Cole, will shed any light on his meetings with political personalities.

Indeed, Debono's sudden appearance in this case concerns government ministers, who were previously unaware of his involvement in the case: Debono's role in the case is the more exceptional due to his history of criticism against minister Austin Gatt over his decision to go for heavy fuel oil to power the Delimara extension, and his public transport reform.

It also remains unclear what arguments were presented by the Commissioner of Police John Rizzo and Attorney General Peter Grech to the Cabinet meeting convened last Friday night, in which the decision to issue a pardon was taken by Prime Minister Lawrence Gonzi.

The arraignment of the suspects was originally planned for Thursday.

The police have already extensively interrogated Frank Sammut - a consultant to former Enemalta chairman Tancred Tabone - as well as Tabone himself, Virtu Ferries owner Francis Portelli and Cassar Ship Repair owner Anthony Cassar.

The latter three suspects are directors and owners of Island Bunker Oils, with whom Sammut was employed in 2004 shortly after leaving the MOBC.

At MOBC, Sammut acted as its chief executive before his role was terminated in 2003 - when Enemalta sold MOBC to the government as part of a recapitalisation process - but was then employed by Enemalta and MOBC chairman Tancred Tabone as his consultant.

MaltaToday revealed that Frank Sammut was the beneficiary of some US$20,000 in "commissions" that Trafigura paid into an HSBC account in Geneva, to the Gibraltar-based firm Energy & Environment Consulants Ltd, for a US$4.4 million consignment of oil to Enemalta.

The first hearing for Gatt's libel suit against MaltaToday is scheduled for the 15 March, five days after the elections.