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8 News PHOTOGRAPHY BY RAY ATTARD maltatoday, WEDNESDAY, 18 DECEMBER 2013 George Farrugia Tale of a 'generous' man… Kickbacks and gifts were not the only money Farrugia was happy to fork out: his family business donated €2,000 to Gatt's campaign for the 2008 elections MIRIAM DALLI FROM cufflinks costing €1,044 to a €1,135 photo of Valletta, pardoned oil trader George Farrugia knew how to get into Enemalta officials' good books. The expensive Christmas gifts to Enemalta's top management were regular, as were the "customary Christmas hampers" given to other workers at the energy state corporation. In his second appearance before the Public Accounts Committee, Farrugia – assisted by lawyers Franco Debono and Siegfried Borg Cole – left listeners speechless as he recounted how he paid $400,000 to former Enemalta chairman Tancred Tabone and how he had set up a company – Aikon Ltd – to avoid questions on irregular, undocumented payments. Farrugia was granted a presidential pardon after he was held for 48 hours by the police, to turn state's evidence in the criminal charges brought against Tabone and former MOBC director Frank Sammut, to spill the beans on five individuals he had paid kickbacks to in order to secure fuel tenders. The first kickback dated to 1999, when as an agent for Total lubricants he came into contact with Enemalta's head of petroleum Alfred Mallia, in a bid to sell oil stored in Malta by Total to Enemalta. According to Farrugia, the chain of illegal commissions with regard to oil contracts stopped in 2006. In 2007, however, Farrugia had gifted Ray Ferris – Enemalta's former chief projects officer – a silver centrepiece worth Lm3,300 as Powerplan sought to win a bid for Enemalta's petroleum division. According to Farrugia, Ferris had also asked for €40,000 to influence the adjudication board, which would only be paid if the tender is awarded. The tender was eventually awarded to BP Energy. But the kickbacks and gifts were not the only money Farrugia was happy to fork out: insisting that he had been doing so on his brother's – Ray Farrugia – instructions, Farrugia attended a political activity organised by Austin Gatt during which he donated €2,000 to Gatt's campaign prior to the YOUR FIRST CLICK OF THE DAY www.maltatoday.com.mt 2008 general elections. Gatt, at one time responsible for Enemalta, has already declared meeting oil trader George Farrugia in his Hamrun constituency office and at Farrugia's family business's garage, in an affidavit he submitted in defamation proceedings against MaltaToday. Gatt, who sued managing editor Saviour Balzan in the aftermath of this newspaper's revelations of commissions being paid for the securing of oil procurement tenders at Enemalta, denied discussing "fuel procurement" matters with Farrugia. However, Farrugia has denied ever meeting Gatt at the family business's garage, saying meetings were usually held at the constituency office or in Valletta. To the PAC, Farrugia said meetings "were not regular" as between one meeting and another two or three months would elapse. Farrugia denied having discussed oil procurement with Gatt, but did confirm discussing an investment in oil storage on behalf of a Middle East company. "The few instances I spoke to him were on bills the Nationalist Party had not paid for services rendered by John's Garage," Farrugia said during his first session. But in his second session, Farrugia also said that he may have also discussed with Gatt the possibility of Air Total entering the local While during the 2013 electoral campaign Gatt denied that the initials were his, Farrugia confirmed he was referring to the minister market. Farrugia also confirmed a 2009 meeting together with entrepreneur Beppe Hili, to discuss Dubaibased Horizon Terminals' interest in setting up an oil terminal at Benghisa, with then prime minister Lawrence Gonzi, his PA Edgar Galea Curmi, Austin Gatt and Leonard Callus. During the PAC grilling, reference was made to emails published which referred to Austin Gatt as 'A.G.' and 'Aust.' While during the 2013 electoral campaign Gatt denied that the initials were his, Farrugia confirmed that he had been referring to the former minister. In one of the emails he sent to Tancred Tabone, Farrugia said he would be meeting "Aust". In another email, he speaks of "details of [his] meeting with A.G. and some issues you should consider to do at EnMa". Asked why he would refer to the minister with Tabone, Farrugia said he could not remember what it was about, adding it could again be about Air Total. Farrugia also could not remember why he had emailed Totsa representative Olivier de Richemont in an email dated 29 April 2005. In the email, Farrugia writes: "I know I am too nice./ We have to send confirmation about this./ Re payments./ Did not receive anything yet. Re the big one. I need it desperately as cannot do what I have to do./ Please do it or I will be in deep S.". Emails sent to foreign representatives during which he would refer to meetings held with Gatt, Farrugia told the PAC that he "could have been bluffing" – something which PAC members found hard to believe.

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