Gonzi met oil trader over terminal proposal, but not on fuel procurement

Former prime minister Lawrence Gonzi has denied meeting oil trader George Farrugia to discuss fuel procurement matters, after emails presented in court yesterday by MaltaToday in a defamation case revealed the scale of intimacy between Farrugia and government ministers.

But Gonzi did declare, for the first time ever, that he met Farrugia and entrepreneur Beppe Hili, on a proposal to develop an oil terminal at Benghisa.

In a statement, Gonzi reiterated comments he made on 9 December that he had never held any meetings with Farrugia "on any subject related to fuel procurement from Enemalta".

"Whoever says that Gonzi met him on this matter is blatantly lying," the statement reads.

Farrugia turned State's evidence after being granted a presidential pardon, when MaltaToday revealed back in February 2013 that one of the companies he represented - Dutch commodities giant Trafigura - was paying an Enemalta consultant a "commission" on the supply of oil to Enemalta. The resulting criminal investigation revealed a network of bribery reaching up right to the top echelons of Enemalta management.

In his statement released Tuesday, Gonzi said the only time he met socially with Farrugia was during an open day at the Safi Aviation Park, where photos were taken of Gonzi meeting visitors, amongst them Farrugia and his family.

Gonzi also said that on 19 October, 2009, Horizon Terminals had made a presentation at the OPM in Castille for a proposal to develop a terminal and breakwater at Benghisa, by representatives from the company - amongst them entrepreneur Beppe Hili and George Farrugia.

"Nothing came out of that proposal," Gonzi said. "It was me who authorized the procedure so that Farrugia could be granted a presidential pardon so that he could state nothing but the truth and testify to this in court."

In previously unpublished emails presented Monday at court by MaltaToday managing editor Saviour Balzan, Farrugia is shown informing George Stassis, managing director of Moil Coal Trading Co. Ltd, of the outcome of a tendering process for the privatization of the Enemalta petroleum division, prior to the tender being awarded.

Former transport minister Austin Gatt has filed a defamation suit against Balzan for MaltaToday's reports on the scale of corruption inside Enemalta.

An email dated 2 April 2007 confirms that oil trader turned State's evidence, George Farrugia, not only knew Austin Gatt but was aware of his own opinion about competitor Falzon Oils.

The email sent by Farrugia reads: "I know for a fact that his (Falzon's) relations with Enemalta and with Aust. is very bad. I know that if there is nothing going on between TOTAL, myself and Falzon, Falzon will finalise a deal with Shell. He (Falzon) is proposing to do a JV [joint venture] with me and should TOTAL fail to get to the tender stage, I with him be involved with talks with other companies interested in the process".

In another email, dated 8 May 2007, Farrugia asks Frank Sammut for details and information regarding the value chain Total would need to consider retailing fuel in Malta. Frank  Sammut, had been previously head of Enemalta's bunkering operations, is asked for information about VAT, excise duty, price at the pump, Enemalta's commission, a retailer's commission, a transporter's commission, and "any other costs or commissions".

Previously unpublished, an email dated 16 May 2008 reads how Farrugia gave details about the situation in the tendering process for the privatisation of Enemalta's petroleum division, prior to the contract being awarded. Farrugia informs George Stassis, that in the tendering process Falzon and BB Energy had no chance, while Island Bunker Oils was the main competitor and PPL (PowerPlan Ltd) were the best bidders.

PowerPlan was Farrugia's family business which he ran with his brothers, better known as the John's Group.

PPL were eventually awarded the bid. Stassis replies: "Hi Partner, Thank You! I have a feeling we will play ball one way or the other! Take Care!".

In an email dated 17 October 2009, Leonard Callus - who worked at the Office of the Prime Minister - enquires about a meeting that Farrugia had scheduled with the Prime Minister. In his reply, George Farrugia lists a number of companies being represented the meeting. The list includes Beppe Hili as managing director of Hili Group, Horizon Terminals and PowerPlan Ltd.

On 17 October 2009, Farrugia informs Leonard Callus that "Horizon Terminals would be inviting the PM and AG [Austin Gatt] to Dubai and possibly for dinner", but Callus replies: "I'm afraid that PM has parliamentary commitments. However they can always extend the invitation".