Issue link: https://maltatoday.uberflip.com/i/306555
maltatoday, SUNDAY, 4 MAY 2014 8 News Trafigura, TOTSA still firmly under Enemalta blacklist LNG provider Gasol strikes power plant agreement with Chinese state company MATTHEW VELLA TWO oil firms associated with George Farrugia, the lubricants importer who was granted a presidential par- don to turn State's evidence on a bribery investigation, remain blacklisted by state energy utility Enemalta one year on. In February 2013, Enemalta informed TOTSA Total Oil Trading S.A. and Trafigura PTE Ltd that it will not invite, nor consider any offers from these two companies until pending investigations related to fuel supplies are concluded. The two companies had been in one way or another, represented by George Farrugia, formerly a partner in family business John's Group and subsidiary Powerplan, importers of oil products. But when MaltaToday broke the story that Trafigura had paid a bribe to Frank Sammut, the chief executive of Enemalta subsidiary Mediterranean Offshore Bunker- ing Corporation (MOBC) in 2003, police investigations were kick-started into a complex web of bribery and cor- ruption. Farrugia, the agent for Trafigura and TOTSA, became the focus of police investigations but in an effort to reveal accomplices and other public servants who had received bribes for the supply of oil to Enemalta, was granted a pardon to turn state's evidence. Police eventually charged Sammut and Tancred Tabone, the former chairman of Enemalta, both of them accused of being regular recipients of commissions and bribes by Farrugia, ostensibly to favour his offers during Enemalta procurement competitions. They also charged entrepreneurs Francis Portelli and Anthony Cassar, who formed an oil bunkering company with Sammut and Tabone, the latter silent partners dur- ing their time at Enemalta and MOBC. Other persons charged included former Enemalta officials. "Enemalta's position will remain unchanged until these inquiries are concluded," Enemalta said when asked by MaltaToday how long the blacklisting of TOTSA and Trafigura will be staying in place. A TOTSA spokesperson says the company is still hold- ing Enemalta responsible for any damages incurred in the process. "TOTSA has always conducted its business in a legiti- mate manner. Indeed TOTSA objected and still objects to the decision taken by Enemalta to oust TOTSA from tenders," the lawyer representing the company, Stefano Filletti, told MaltaToday. "TOTSA has reserved its right to seek damages in re- spect of the economic and image consequences it suf- fers as a result of this matter and fails to see how the maintaining of the ban, which deprives Enemalta of a competitive and reliable business partner, is in the pub- lic interest." The company has already filed a judicial protest against Enemalta, calling for the revocation of the blacklist. The parliamentary Public Accounts Committee has yet to conclude its questioning of George Farrugia as part of its investigations into oil procurement practices. According to the National Audit Office, it could be as- sumed that between 1999 and 2006, Farrugia paid some $905,000 in alleged commissions to Enemalta officials. MATTHEW VELLA A crucial alliance between Afri- can gas players and Chinese inter- ests was struck this week, which included a major partner in the ElectroGas consortium that will deliver the LNG-to-power project to state utility Enemalta. Gasol plc signed an agreement with China's biggest machinery manufacturer, China Machin- ery Engineering Corporation (CMEC), a leader in the construc- tion of power generation and dis- tribution. CMEC is one of 44 firms in the Sinomach group of companies. Together, the two companies have agreed to cooperate on pro- spective power projects, with Gasol offering CMEC a right of first refusal to be the exclusive en- gineer and provider of civil works on power plants. CMEC will carry out feasibility studies for the power plants and assist in the arranging of credit for the construction of the plants through Chinese banks. Gasol's relationship with the Af- rican Iron Ore Group (AIOG) led to the agreement, through con- tacts with Chinese State-owned enterprises in the power sector. The company said AIOG as- sisted Gasol in reaching its agree- ment with CMEC. Gasol, headquartered in the UK but active in West Africa, forms part of the ElectroGas consortium that will supply Enemalta with a power-purchase and supply Employers voice caution on maternity leave proposal MIRIAM DALLI SOME 2,000 out of every 4,000 wom- en who fall pregnant every year do not apply for maternity leave. Although there are women who willingly choose to stop working, others are forced by their employer to give up their job, government argued. Through the new national employ- ment policy, the government is pro- posing to finance the full 14 weeks of maternity leave. In return, it is being proposed that the yearly social security contribution payable by the employer for both male and female employees is raised. The proposal was met with different reactions, varying from unequivocal support to those who voiced caution and adopted a wait-and-see approach. Primarily, stakeholders want to know by how much social security contribu- tion will increase. Economist Karm Farrugia was among those who welcomed the meas- ure, arguing that maternity leave was a policy that "worked against women's interests". "Taken in isolation, the employ- ers were justified in complaining for shouldering the financial burden of maternity leave, especially when a woman leaves for six months. Mater- nity leave shouldered by the employer was a policy that worked against the interests of the women," Farrugia told MaltaToday. He argued that all things being equal, an employer would go for a man unless the woman had far superior qualities than the man for the specific job. "This proposed measure is ultimately to the advantage of women and it is the best thing that government could do." Social contribution as it stands today is split equally among the government, the employer and the employee. All three pay 10% of the basic wage. Al- though it is not known by how much the employer's rate will increase, the Prime Minister said the raise would be "minimal". While shadow finance minister To- nio Fenech insists that no increases should take place, Karm Farrugia be- lieves that a 12% rate would be "fairer". On his part, director general of the Malta Employers Association Joseph Farrugia is wary. "I believe that a 12% rate would make a fair contribution especially since Malta has one of the lowest rates. Ul- timately, the government will be re- lieving the employer of the maternity leave wage," the economist said. He argued that the increase should be taken in light of economic condi- tions and not over maternity leave. It also transpires that the government does not enjoy the unanimous consent of the Malta Economic and Social De- velopment (MCESD) on the matter. MEA's Joe Farrugia appeared wary when asked for a reaction, comment- ing that the proposal had yet to be studied in detail. "I cannot tell you whether we are in favour or against the measure given that we do not have the full details as yet. Moreover, the issue was not agreed upon within the MCESD or the Jobs Plus committee," he said, adding that "no particular discussion" took place. Farrugia conceded that in terms of fiscal policy, government still had to determine whether it was going to fi- nance the full maternity leave from taxes or social security contributions. The employers have long been lobby- ing for government to shoulder the maternity leave wage. However, Farrugia complained that the principle of equality, where the government, the employer and the employee pay the same contribution, George Farrugia, in the hearing before the PAC (Photo: Ray Attard) MEA director general Joe Farrugia