Former Enemalta chairman and partner hindered MOBC privatisation

The head of the government's privatisation unit, who presided over some of the island's major privatisation deals since 2000, told a court of law that the botched privatisation of the Malta Oil Bunkering Corporation was "replete with stumbling blocks".

"Never before in my professional life had I encountered as many stumbling blocks as I did during the privatisation of MOBC," witness Manuel Ellul told the court, in the compilation of evidence against Francis Portelli and Anthony Cassar.

The two entrepreneurs, owners of the private company Island Bunker Oils Ltd (IBOL), are being charged with money laundering and trading in influence, as part of the major corruption case in the payment of commissions to Enemalta officials for the sale of oil to the energy corporation.

Former Enemalta chairman Tancred Tabone and his consultant Frank Sammut, who are charged with corruption, were both silent partners in IBOL when both men were also in charge of MOBC, Enemalta's oil bunkering arm

In court today, Ellul said that Tancred Tabone, who also served as MOBC chairman and his consultant Frank Sammut - who served as MOBC chief executive between 2002 and 2003 - had both created stumbling blocks to prevent government's attempts at privatising MOBC.

Ellul said that when he learnt recently that Tabone and Sammut had in fact been silent shareholders in IBOL - a fact revealed during the compilation of evidence against them - he decided to approach the investigating police officers with information.

Ellul said that Tabone and Sammut 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 privatisation of MOBC was abandoned following Sammut's advice. He claimed it was not in government's interest to sell MOBC, or the country would not be able to meet EU obligations to have adequate reserves of oil in case of emergency."

Ellul said that he encountered similar problems during the privatisation of the Malta Freeport, but he said nothing compared to the MOBC case. "Sammut had some blessing of sorts," Ellul commented.

Inspector Angelo Gafà is prosecuting while Dr Stephen Tonna Lowell is appearing for the accused.

The case continues 17 July.