Issue link: https://maltatoday.uberflip.com/i/380554
maltatoday, SUNDAY, 14 SEPTEMBER 2014 4 News MATTHEW VELLA A 'secret' company whose purpose was to hide the interests of senior Enemalta officials and private busi- nessmen in the national oil bunker- ing company, MOBC, was formed as early as June 2003, at a time when the then-Enemalta chairman and his consultant were believed to be hindering the liberalisation of the sector. Former Enemalta chairman Tan- cred Tabone and businessmen Francis Portelli and Anthony Cassar formed the company Moloch Trad- ing Corporation on 6 June, 2003, along with Frank Sammut, a former chairman of the Enemalta subsidi- ary MOBC and later advisor to the Enemalta chairman. 'Moloch' is the name of an ancient Ammonite deity that features in the Bible as a god of apostate Israelites. The company was formed in a trust agreement that Sammut signed with the Veco Trust of Lugano, Switzerland to instruct it to take on the management of Moloch Trad- ing, so as to hide the company's real beneficiaries. The company, registered in Pana- ma, was set up with a trading capital of $10,000, and confirms the extent to which political appointees like Tabone and Sammut had colluded to hide their private interest in the state-owned Mediterranean Oil Bunkering Corporation (MOBC). At least another three similar companies registered in the USA, Panama and Hong Kong exist with trust agreements signed by Frank Sammut that list the four beneficial owners with equal 25% shares. Enemalta oil scandal Tabone, Sammut, Portelli and Cassar are facing criminal action on various charges of money launder- ing, trading in influence, and cor- ruption in an investigation triggered by MaltaToday's revelations that Frank Sammut received kickbacks from commodities firm Trafigura for the sale of oil to Enemalta, The clamorous revelation led to a presidential pardon for oil trader George Farrugia, the representative of Trafigura and Totsa, who told the courts of further bribes paid regu- larly to Enemalta officials like Sam- mut and Tabone, and two Enemalta officials, for the provision of oil consignments to the state utility. It is now known that Tabone and Sammut, while in their official En- emalta roles, were silent partners in the private oil bunkering firm Island Bunker Oils Ltd (IBOL) as early as 2003, together with Portelli and Cassar. It was at this time, as former Pri- vatisation Unit head Manuel Ellul had told the court, that the pri- vatisation of MOBC – Enemalta's oil bunkering arm – started to en- counter stumbling blocks. "Never before in my professional life had I encountered as many stumbling blocks as I did during the privatisa- tion of MOBC," Ellul told the court during the compilation of evidence against Francis Portelli and Antho- ny Cassar. With Sammut serving as a con- sultant to Tancred Tabone after his position as chief executive of MOBC came to an end in 2003, Ellul claimed that both men had created stumbling blocks to pre- vent the government's attempts at privatising MOBC. He said that upon learning that the two men had in fact been silent sharehold- ers in IBOL – a fact revealed dur- ing the compilation of evidence in May – he decided to approach the investigating police officers with in- formation. Ellul said that Tabone and Sam- mut would ignore his instructions during the privatisation deal, or even do the opposite of what he requested. "The situation escalated to a point where in 2003, Sammut drew up a report and passed it on to ministers John Dalli and Austin Gatt, responsible for the oil sector at the time, and eventually the pri- vatisation of MOBC was abandoned following Sammut's advice. Sammut claimed in the report it was not in the government's inter- est to sell MOBC, or the country would not be able to meet EU obli- gations to have adequate reserves of oil "in case of emergency." Co-accused Anthony Cassar, owner of Cassar Shipyards, also revealed under arrest that Sammut was the silent partner in IBOL be- tween 2002 and 2005, before being paid off and kicked out of the com- pany. Tabone, a silent partner since 2002, later became a visible share- holder in the company in 2008. Sammut was kicked out when he was accused by co-shareholder Francis Portelli of stealing money, and paid US$500,000 over three years, as the value of his 25% share on three IBOL ships. According to a prosecuting of- ficer, Sammut told police that IBOL was formed by Portelli and Tabone when it was believed that MOBC would be ending its operations. Sammut has also claimed that a Swiss bank account was opened to receive eight payments of some US$80,000 from Trafigura, and that Tancred Tabone had requested half of the money paid. Sammut also admitted setting up four offshore firms registered in the USA, Panama and Hong Kong. Secret Panama company hid Enemalta officials' conflict of interest Enemalta consultant Frank Sammut travelled to Lugano to set up Moloch Trading and hide interest of chairman Tancred Tabone and businessmen Frank Portelli and Anthony Cassar in oil business against Francis Portelli and Antho- ny Cassar. With Sammut serving as a con- sultant to Tancred Tabone after his position as chief executive of would not be able to meet EU obli- gations to have adequate reserves of oil "in case of emergency." Co-accused Anthony Cassar, owner of Cassar Shipyards, also In 2003, Sammut set up Moloch Trading Corp to hide his and Tancred Tabone's interests with fellow IBOL partners Anthony Cassar and Francis Portelli