€2,000 donation by oil trader’s family towards Austin Gatt’s campaign

The Public Accounts Committee's three-hour grilling proved to be too much for oil trader George Farrugia who asked the members to end the session an hour earlier due to exhaustion.

Appearing before the PAC for the second time, Farrugia yesterday evening made a number of revelations including a €2,000 donation to Austin Gatt's political campaign, also confirming that the famous 'A.G.' and 'Aust.' in a number of emails he sent to Trafigura reps had in fact been a reference to Austin Gatt.

Pressed by the Opposition, Farrugia also confirmed that Home Affairs Minister Manuel Mallia, then PowerPlan Ltd's lawyer, knew about the kickbacks since 2010, since the brothers knew all along that kickbacks were being paid.

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.

According to the PN's deputy leader Beppe Fenech Adami, Mallia had used the information as leverage to force Farrugia to reach a settlement with his brothers, after siphoning off around $7.8 million from PowerPlan Ltd to Aikon Ltd.

 "Would I be correct in saying that Mallia had known about the scandal since 2010? Would I be correct in saying that Mallia had warned you that if an agreement were not be reached, he would report you to the Police?" Fenech Adami asked, to which a hesitant Farrugia replied in the positive.

Intervening, parliamentary secretary Owen Bonnici said Fenech Adami should have also pointed out that Mallia, as the company's lawyer, had been doing his job as PowerPlan Ltd's legal representative.

Fighting the argument that Mallia had known about the illegal commissions since 2010, Bonnici said Fenech Adami, also a lawyer, should know that Mallia was bound by lawyer confidentiality.

"I am well aware of that... but Mallia's clients were the Farrugia brothers not George Farrugia. I am trying to clarify the timing of when the story was leaked to the media," Fenech Adami retorted.

€2,000 donation to Austin Gatt

John's Group, owned by the Farrugias, donated €2,000 to former infrastructure minister Austin Gatt towards his electoral campaign prior to the 2008 general elections.

Farrugia was however very curt in his replies, insisting it had been his brother Ray Farrugia who had asked him to go with the money. "It was my brother who dealt with the politicians," he insisted.

Yet, Farrugia met the former minister several times at his office to discuss "other issues but not petroleum". He also claimed that he would be there "to accompany" his brother.

Farrugia was also questioned on an email he had sent to then Enemalta chairman Tancred Tabone on "details of [his] meeting with A.G. and some issues you should consider to do at EnMa".

Pressed by Bonnici, Farrugia said: "The meetings had nothing to do with petroleum. We met to discuss the possibility of Air Total entering the market as they were interested."

The oil trader also confirmed that references to 'A.G' and 'Aust' in a number of emails sent to Trafigura representatives were references to Austin Gatt.

But he quickly added that he "could have been bluffing" when he told the commodities firm that he had held a meeting with the former minister, something which Owen Bonnici found hard to believe.

Farrugia insisted that "bluffing" was part of the business to secure results.

Expensive gifts for Enemalta officials

George Farrugia "as a token of appreciation" also gifted top Enemalta officials with expensive Christmas presents, including a wrist watch, cufflinks and silver centerpieces purchased from Azzopardi Jewellers.

The Christmas gifts used to be given every year.

For other Enemalta employees, Farrugia would send in the customary Christmas hampers, but for former chairmen like William Spiteri Bailey and Karl Camilleri he would spend over €1,000 each.

Farrugia had also gifted Chief Financial Officer Antoine Galea a €1,333 Paul Picot wristwatch, a gift Farrugia claims Galea had wanted to return. But the watch was never returned.

Apart from receiving kickbacks, Frank Sammut and Tancred Tabone had also asked Farrugia to "sponsor" two parties.

On one occassion, Sammut asked Farrugia to organize a staff party for MOBC employees and another time Tabone had asked to him to sponsor a children's party, including food and toys.