Oil trader’s family firm paid for clock gifted to minister

The artisan Maltese clock (tal-lira) gifted that fuelled speculation on the former administration's intimacy with an oil trader granted a pardon in the Enemalta kickbacks scandal, had been paid by George Farrugia's family business Powerplan and used to broker a chance meeting with then finance minister Tonio Fenech.

Farrugia was granted a presidential pardon in late 2012 to turn State's evidence on kickbacks paid to former Enemalta officials for the procurement of oil from Trafigura and TOTSA to the state utility. The allegations emerged from invoices of Trafigura payments to Enemalta consultant Frank Sammut, which MaltaToday published in January 2013.

MORE Fenech confronts oil trader: sister-in-law gave me 'token of admiration'

Weeks later, allegations that George Farrugia had gifted Tonio Fenech an artisinal clock were made in a Labour press conference, leading Fenech to institute libel proceedings against Labour MP Chris Cardona.

Fenech had claimed the gift was from George Farrugia's sister-in-law Inez, as a token of her admiration.

But taking the witness stand in the case, former Police Commissioner John Rizzo said that apart from two other clocks also gifted to the Nationalist Party, Farrugia's family business Powerplan had also paid for the clock that Fenech was given.

Rizzo said that Tonio Fenech had requested to meet him during the electoral campaign when he was alleged to have recieved a gift from Farrugia. "He [Fenech] was concerned over allegations that he had received a clock from George Farrugia. But contrary to what was alleged by Chris Cardona, the clock was given to Fenech between 2008 and 2009," he said, adding that the clock's value was around €500. But according to the Farrugias, the clock costed Lm500.

Farrugia had already admitted under interrogation of giving gifts to a number of people.

Confirming that it was George Farrugia's brother Ray and his wife who had first met Fenech and his wife at a party, Rizzo said Fenech had shown interest in acquiring an artisan Maltese clock. He also added that brothers George and Ray had at the time been concerned about oil leakages from the Has-Saptan facilities.

Further police investigation revealed that the Farrugias had given two other clocks to the Nationalist Party, also crafted by Inez, Ray Farrugia's wife, which were paid for by family business Powerplan. These were also backed by receipts.

Rizzo said that no charges had been issued against Fenech because "it was clear there had been no intention of corrupting him", adding that Fenech had not been aware that Powerplan had paid for the gift.

On her part, Inez Farrugia - an amateur clockmaker - said the alleged "token of admiration" was a gift that she knew would be paid for by the family business. "My only admiration is towards my husband and children," she told Cardona's lawyer Edward Gatt, much to the amusement of the audience in the court.

Testifying, Ray Farrugia - George's brother - said he Fenech at a Christmas party, where Fenech's wife had ostensibly raised the issue of a missing clock's minute-hand. He then decided he would get his wife to craft a clock, and asked George Farrugia whether Powerplan would also pay for it.

He then asked George Farrugia to accompnay him to Fenech's house. "We were seven brothers operating the family business and if I was to do something, I want my brothers to know about it so I took George with me," he said.

Farrugia insisted that the clock "held no relevance" to their oil business. "We didn't gift it because of some business deal," he said. "I asked George whether he would help finance the clock by getting the company to pay it. George spoke to our other brothers and they agreed," he said.

"Aside from the fact that I had an injured back and I couldn't carry the clock, I wanted George to meet Fenech," he said when asked by lawyer Edward Gatt whether he want his brother and the minister to be formally presented to each pother. According to his testimony, this visit happened around six years ago. He however could not remember whether Fenech was already a minister at the time.

Ray Farrugia didn't deny that other clocks, also paid by Powerplan, had been donated to the Nationalist Party.

On his part, Tonio Fenech told the court he filed for libel after MPs Evarist Bartolo and Cardona alleged that he had received a clock valued at €5,000 by George Farrugia.

The former minister denied the allegation, and reported it to the police.

He also insisted that it was Ray Farrugia who gifted him the clock, some time priot to 2010 when he was living in a Balzan apartment. "The allegations were made in the middle of an electoral campaign when the oil scandal was rife, and they were intended at tainting me in the midst of the electoral campaign."

Fenech was confronted with Farrugia before the Commissioner of Police. "I'm no clock expert, but I spoke to experts who said that a €5,000 artisanal clock had to be an antique."

The case was put off to 3 October.