Issue link: https://maltatoday.uberflip.com/i/599604
www.maltatoday.com.mt wednesday edition wednesday • 11 November 2015 • issue 442 • published every wedNesday aNd suNday €1.00 Newspaper post Transport lights tender raised bidders' suspicions Bidders complained about 'tailor-made' traffic lights tenders awarded to company represented by rogue trader George Farrugia, who was privy to insider information JurGen Balzan Rival bidders had lodged of- ficial complaints with the Mal- ta Transport authority about tenders which they described as "tailor-made" for lighting systems of an austrian com- pany represented by oil trader George Farrugia. On Sunday, MaltaToday pub- lished emails which show that Farrugia was priv y to sensi- tive information that put the companies he represented in a favourable position to win ten- ders. Farrugia set up a company, aTMS, after he made contact with the austrian company. MaltaToday is reliably in- formed that the losing bidders had from the very beginning warned the authority that the tenders were "tailor-made" to favour the austrian company, Swarco, which Farrugia repre- sented, and which was awarded the majority of all major ten- ders for lighting systems along kilometres of roads in Malta and Gozo. Farrugia is the recipient of a presidential pardon granted to him in 2013 conditional on him spilling the beans on the scale of bribery at Enemalta, where he greased top officials to as- sist him in winning fuel pro- curement contracts for his oil clients TOTSa and Trafigura. But the emails published on Sunday by this newspaper show that Farrugia was also keen on keeping in touch with Ken- neth Spiteri – a key official at the Malta Transport authority (Transport Malta's forerunner) – going as far as organising a trip for him to austria to dis- cuss traffic lighting systems. MaltaToday has also learnt that the police's Economic Crimes Unit has opened an investigation, while the Trans- port Malta official was sus- pended with half pay on Sun- day after MaltaToday revealed how he had sent an email to Swarco suggesting the lower prices which would make win- ning the tender possible. The published emails show how Spiteri would keep Farru- gia informed of most tendering pre-developments at aDT. MaltaToday has learnt that Farrugia was always the mid- dleman in many of the original tenders, and, fearing the worst, Transport Malta officials have now asked for a record of all tenders issued and awarded. Sources at Transport Malta have confirmed that Farru- gia had an interest in tenders awarded by the authority. apart from knowing Spiteri, Farrugia was also very well acquainted with Ray Stafrace, who was not only the chief fi- nancial officer at Transport Malta but also the accountant who offered his office address for Farrugia's aikon limited, the secret company which Far- rugia used to transfer the mon- ey made off Powerplan's sales of fuel oil, and into his Swiss bank account. Stafrace, a certified public accountant, holds the post of director of procurement at Transport Malta and MaltaTo- day understands that he is also under the authority's spotlight. as already revealed by Mal- taToday, Farrugia's tentacles also took him to the Malta Resources authority, where emails published had led to the suspension and prosecution of official Godwin Sant, found having received gifts from Far- rugia. The pressure to revoke Far- rugia's presidential pardon in- creased after a court decision acquitted an Enemalta senior official – Ray Ferris – who was prosecuted by the Police on the basis of allegations made by Farrugia. The decision has been appealed by the attorney General. However, if the sen- tence is confirmed upon appeal, the at- torney General may be constrained to take the ultimate step of revoking the presiden- tial pardon. MaTThew Vella FOR developers and entrepre- neurs, the Nationalist and labour parties are like "two big shops" giving them the opportunity to choose "from whom to buy" the best policies. This was how the president of the Malta Developers association, Sandro Chetcuti, described con- struction developers' relationship with political parties ahead of a meeting he had with Opposition leader Simon Busuttil. Confirming that he wanted to have similar access to the PN that the MDa already enjoys with la- bour, Chetcuti said that his or- ganisation wished to "work with everyone". "absolutely yes," he said, when asked whether the MDa wanted to have similar proximity with a prospective Nationalist govern- ment. "We are businessmen and we work with everyone. Political parties are like big shops … some- times you buy from one, some- times you buy from the other. No more, no less." in comments to the press before the meeting with the PN leader, Chetcuti also defended comments made when he encouraged MDa members to "make hay while the sun shines". Chetcuti likens parties to 'two big shops' PaGe 7