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Caruana Galizia public inquiry: Yorgen Fenech denied 17 Black was his when confronted, Mark Gasan says

Follow us live as the public inquiry into the murder of journalist Daphne Caruana Galizia continues

nicole_meilak
5 October 2020, 1:50pm
by Nicole Meilak
2 min read
Electrogas shareholder Mark Gasan entering the law courts in Valletta
Electrogas shareholder Mark Gasan entering the law courts in Valletta

Alleged mastermind behind the Daphne Caruana Galizia murder Yorgen Fenech had wanted to resign from his post as director of GEM Holdings in May 2019, Mark Gasan said on Monday.

Businessman and entrepreneur Mark Gasan was testifying in the Daphne Caruana Galizia Public Inquiry.

The Gasan Group owns a third of GEM Holdings, which in turn owns 33% of the Electrogas power station.

Testifying, Gasan said that in a May 2019 board of directors meeting, Yorgen Fenech did not turn up.

“We had a meeting with Ray Fenech and my father, and one thing we discussed is for Ray Fenech to meet with Yorgen Fenech to discuss his position as director," Gasan told the inquiry board.

He went on to say that when Yorgen Fenech saw the meetings’ minutes and what was discussed, he sent an email to all directors informing them of his decision to resign.

In the email he also recommended Mark Gasan be appointed instead of him.

“I didn’t have this discussion with him, and I immediately replied to everyone saying although I’m willing to help, I don't have the time to be a director," Gasan said.

In the following months discussions were held on who should take up the post vacated by Fenech, but a consensus was not reached.

“Then in November 2019 we had a board meeting as GEM. Ray Fenech was present but Yorgen Fenech wasn't. We decided to appoint Apap Bologna,” Gasan said.

Asked for the reason in appointing Apap Bologna, Gasan said that the Gasan Group’s investment was always supposed to be passive.

“I didn't have the time to be director. Being director involves a level of responsibility that I couldn't take on,” he said.

Gasan was asked if had confronted Yorgen Fenech about 17 Black, to which he replied that the Tumas magnate had rubbished all claims.

“I asked Yorgen Fenech specifically, I called him and sent him a message, but he advised me that 17 Black isn’t' his,” Gasan said.

On Nexia BT, Gasan said that once the Panama Papers had emerged, there was concern, but with respect to their role as auditor, it was not brought up during board meetings.

17:02 That's it for today. Thank you for following. Karl Azzopardi
17:02 On Friday 9 October, Minister Carmelo Abela will be testifying at 9:30 am. Karl Azzopardi
17:01 The next sitting is on Wednesday 7 October at 2:00 pm. Culture Minister Jose Herrera and Paul Apap Bologna are expected to testify. Karl Azzopardi
16:57 Joseph Said Pullicino asks about a meeting in Azerbaijan, but Gasan denies having any knowledge of it. Karl Azzopardi
16:56 Gasan does not recall discussing it. Karl Azzopardi
16:56 Joseph Said Pullicino goes back to the NAO report, noting it was a serious report for the Gasan company. "Can you confirm whether the conclusions were discussed during a GEM meeting?" Karl Azzopardi
16:55 Gasan denies being present. Karl Azzopardi
16:55 Azzopardi: "Do you recall being present for a dinner on Friday 15th February at George Fenech’s residence at Portomaso, three weeks before the March 2017 election?" Karl Azzopardi
16:53 Azzopardi asks Gasan about meeting former PM Joseph Muscat socially. Karl Azzopardi
16:53 Gasan says he was not aware of any discussions regarding the pipeline. Karl Azzopardi
16:52 The article reads: "The decision to award the LNG tender coincides with the European Union announcing on Monday that a proposed gas pipeline between Malta and Sicily has qualified, with other energy projects, for funding from a €5.85 billion ($7.95 billion) pot." Karl Azzopardi
16:50 "By September 2015, delivery of the first LNG shipment is expected and the consortium should start seeing returns on its investment, he said." the article says. Karl Azzopardi
16:50 Jason Azzopardi refers to another article by Daphne Caruana Galizia posted in 25 October 2013 titled: ‘“Speaking to International Oil Daily, Gasol Chief Operating Officer Alan Buxton said the success of the project relied on the recent landslide victory of the Labor Party, which came to power in March.” – Energy Intel’ Karl Azzopardi
16:49 Azzopardi: “Return on investment, according to a Gasol chief operating officer, was estimated to start in 2015.” Karl Azzopardi
16:48 Judge Abigail Lofaro confirms that earlier he said that it wasn't until the end of the decade that they will see profit. Karl Azzopardi
16:48 Azzopardi: “During previous questioning by Comodini Cachia, you remember being asked about the cut off year by when it was expected for Electrogas to start making profits. Apap-Bologna said 2023, or after the first five years.” Karl Azzopardi
16:47 Gasan: “But I was always informed that Socar backed them up." Karl Azzopardi
16:47 Gasan can't recall reading this particular article, but says he was aware that Gasol were having financial difficulties. Karl Azzopardi
16:47 Azzopardi: “Were you aware of this particular article?” Karl Azzopardi
16:45 The post Jason Azzopardi is referring to is a 24 July 2015 post titled ‘30% shareholder in power station company is technically bankrupt’. Karl Azzopardi
16:44 Azzopardi: I’m making reference to a blog post by Daphne Caruana Galizia, and this blog post refers to financial challenges suffered by Gasol. Karl Azzopardi
16:44 Gasan: No Karl Azzopardi
16:44 Azzopardi: “If someone had to come up to you proposing a business venture, proposing you join up with a partner which company cannot pay bills or get a bank loan. Would you go for it?” Karl Azzopardi
16:42 Lawyer Jason Azzopardi starts asking Mark Gasan questions. Karl Azzopardi
16:41 Comodini Cachia is asking about “The Quad Towers” project in Mriehel and how Yorgen Fenech met with Minister Michael Farrugia the day the policy changed - but Gasan did not approach Yorgen Fenech about this. Karl Azzopardi
16:40 Joseph Said Pullicino asks about Gasan’s presence at meetings with Joseph Muscat or Keith Schembri regarding economic matters, but Gasan says that he never met with them at meetings. Karl Azzopardi
16:38 Gasan says he invited Muscat to his wedding. Karl Azzopardi
16:38 She asks him to elaborate further. Karl Azzopardi
16:37 Comodini Cachia asks about former Prime Minister Joseph Muscat and Gasan says they would meet casually at social events. Karl Azzopardi
16:36 However, Gasan met Keith Schembri a couple of times after they won the bid. Karl Azzopardi
16:35 Gasan: "I met him in April 2017 at the official launch of the plant." Karl Azzopardi
16:35 Comodini Cachia: "You met Konrad Mizzi once the project was given to you?" Karl Azzopardi
16:34 Gasan: "Most of the cars were leased by third parties." Karl Azzopardi
16:34 Comodini Cachia asks whether Gasan helped Electrogas in any way outside of insurance, he just says that they leased a few cars but that's it. Karl Azzopardi
16:33 He was only involved in the email to deal with insurance - Gasan wasn't providing this insurance. Karl Azzopardi
16:33 Gasan is explaining the ERA email, saying that he was involved in the insurance committee at that point. Karl Azzopardi
16:32 Gasan: "I never had meetings or negotiations with Enemalta or other organisations." Karl Azzopardi
16:32 Joseph Said Pullicino: "as far as government negotiations, they were never in your hands?" Karl Azzopardi
16:30 Gasan says he wasn't aware of this issue. Karl Azzopardi
16:30 Therese Comodini Cachia asks how they achieved this concession: "as a concession this was decreased to 2.5million." Karl Azzopardi
16:29 The email says: "as can be seen from the foregoing IPC permit requires Electrogas to provide era with a 5.5 million financial guarantee to secure guarantees to the ICC permit.” Karl Azzopardi
16:28 Therese Comodini Cachia is referencing another email from ERA on a permit bringing in the FSU, Gasan was not in copy in this email exchange but was involved in a follow-up to the original email. Karl Azzopardi
16:28 Gasan: “Electrogas advised me Enemalta should be paying.” Karl Azzopardi
16:27 Gasan: “On the issue of excise tax, I think Electrogas needs to come out with their position.” Karl Azzopardi
16:26 Gasan is saying he didn't know the minister, Joseph Said Pullicino is asking whether he was aware of correspondence between Electrogas, Peter Grech, Victoria Buttigieg, etc. or other mechanisms to bypass parliament excise tax. Karl Azzopardi
16:21 Therese: “How familiar was Electrogas with the minister?" Karl Azzopardi
16:21 Comodini Cachia reads from an email sent by Gasan on the issue of the excise tax: "Should we consult Enemata over these issues, or do we skip Enemata and go straight to the minister?" Karl Azzopardi
16:18 Comodini Cachia: “However, it also shows the Enemata position, where they say the excise tax is included in the tariff reference Malta’s EGM is billing for the power purchase agreement sales.” Karl Azzopardi
16:17 Comodini Cachia reads an attachment which involves a government order on the excise tax. In this document prepared by the CFO of Electrogas, he makes the issue of excise tax. It highlights that EGM has no access to retail customers and operates in a wholesale manner. Karl Azzopardi
16:14 Gasan: "I sent an email to the board saying we should sort it out as soon as possible. It cannot remain unresolved, but management told me that we should not be paying it." Karl Azzopardi
16:13 Gasan: “The CFO had advised me that there was an issue with Enemalta and the position of management of Electrogas on the excise tax that it should be payable by Enemata. Enemalta said the opposite, saying it should be payed by Electrogas and the issue was unresolved." Karl Azzopardi
16:13 On the topic of an excise tax, Gasan is saying that the email he had sent followed a conversation with a CFO of Electrogas. Karl Azzopardi
16:10 Comodini Cachia shows Gasan a chain of email exchanges on late payments between AEKOM and Gasan. Karl Azzopardi
16:03 Gasan was shocked when he discovered a breach in Electrogas documents and emails. Karl Azzopardi
16:00 Gasan: “That was discussed in the initial discussions with George Fenech. We were told Yorgen Fenech would spend all his time on this project, and he wanted a personal equity himself. We liked the idea. Karl Azzopardi
16:00 Comodini Cachia: “In the shareholding of Electrogas, there is GEM which is made of the three families, and a side company of Yorgen Fenech. It's a parallel shareholding, what made you agree to this?” Karl Azzopardi
15:54 Gasan: “The bid involved a proposal, not a commitment. It was a wordy paper showing your financial ability.” Karl Azzopardi
15:54 Comodini Cachia: "How could it take six weeks to set up a bid, but six months to find a new director?” Karl Azzopardi
15:53 Gasan: "This was accepted and agreed, but until you have a replacement he couldn't resign." Karl Azzopardi
15:53 Comodini Cachia: "Did GEM holdings accept the resignation?” Karl Azzopardi
15:52 Gasan: "By that time, it had been four or five years since the start of the process, but I felt the email was a result of a discussion with Ray Fenech." Karl Azzopardi
15:51 Comodini Cachia: "When you received this resignation in May 2019, did you question whether it was about 17 Black?" Karl Azzopardi
15:50 Gasan says Yorgen Fenech never admitted any wrong doing with other Electrogas directors. Karl Azzopardi
15:50 The email sent by Fenech will be presented to the inquiry board. Karl Azzopardi
15:49 Gasan: “This is when we were informed that Yorgen Fenech would be speaking with lawyers.” Karl Azzopardi
15:49 Gasan explains there were board meetings to investigate links between GEM and Electrogas with 17 Black in order discuss the way forward. Karl Azzopardi
15:48 Comodoni Cachia asks Gasan to confirm whether in November, when the story of 17 Black came out, Yorgen Fenech had sent an email to all the directors refuting the claims being made in the media. Karl Azzopardi
15:46 Gasan: "We were in contact with his uncle, he was concerned as well." Karl Azzopardi
15:46 Comodini Cachia: "During this time, didn't you question where Yorgen Fenech was? or why he was staying away from Electrogas for such a long stretch?" Karl Azzopardi
15:45 Gasan: “Yes.” Karl Azzopardi
15:45 Judge Joseph Said Pullicino: "There were occasions where Paul Apap Bologna was there as observer?" Karl Azzopardi
15:45 Gasan: "We just felt that someone from GEM needed to be in attendance at Electrogas meetings." Karl Azzopardi
15:43 Gasan admits that after 17 Black, Gasan and Apap-bologna would frequently replace Yorgen Fenech in meetings. Karl Azzopardi
15:42 Gasan: "It was continuous - from late 2015/2016 onwards we obviously became more involved, so whenever Yorgen Fenech was not there I would attend as an observer." Karl Azzopardi
15:42 Comodini Cachia: "When was this period when you or Apap Bologna attended board meetings instead of YF?" Karl Azzopardi
15:41 Mark Gasan and Paul Apap Bologna alternated attendance in meetings when Yorgen Fenech was absent, taking his place, Gasan tells the court. Karl Azzopardi
15:39 Comodini Cachia: "He told us he didn't." Karl Azzopardi
15:39 Gasan: "Yes." Karl Azzopardi
15:39 Comodini Cachia: "Did Paul attend meetings in your presence?" Karl Azzopardi
15:39 Gasan: "Me and Paul Apap Bologna." Karl Azzopardi
15:39 Comodini Cachia: "When Yorgen Fenech was not present, did you go as his alternate?" Karl Azzopardi
15:38 Gasan: "By that time all the revenue had been established. The issue was costs and how we could deliver the project with the initial estimated costs." Karl Azzopardi
15:37 Comodini Cachia: "Following 2015 what was your role in Electrogas?" Karl Azzopardi
15:37 Gasan: "The idea back in 2013 was that we would not be operational, just passive investors. Up to mid/late 2015 it started to become clear there were issues on the costs that would affect one, the feasibility of the project and two, the capital requirements Gasan would have to invest." Karl Azzopardi
15:36 Gasan explains that the main issue with the consortium Electrogas, was to finance the cost overrun. Karl Azzopardi
15:35 Gasan is confirming that it was a financial default with BOV. Therese Comodini Cachia asks about other financial difficulties. Karl Azzopardi
15:34 Gasan: “Immediately.” Karl Azzopardi
15:34 Comodini Cachia: "When did you first know you'd be getting the 18-year supply?” Karl Azzopardi
15:33 Gasan: "My understanding of why it was taking long to close was because of the negotiation on the option to have government concession if the pipeline happens." Karl Azzopardi
15:33 Gasan is talking about the financial pressure felt over the guarantee and default. A conversion term agreement and supply agreement was in place. Karl Azzopardi
15:29 Gasan is admitting that they wouldn't have seen profits until after 2023, in contrast to what Paul Apap Bologna said. Karl Azzopardi
15:28 Gasan: “Based on initial figures returns were looking good. However, the real numbers were done after June/July 2013 once the RfP was issued. That's when we started to churn numbers and we realized the cost was substantially higher.” Karl Azzopardi
15:26 Comodini Cachia: “What was the expected return on those five million euro?” Karl Azzopardi
15:26 Gasan: "I was informed that Gasol was being financially supported by Socar, so it was never brought to me as a concern as Socar had the financial capabilities to back themselves and Gasol." Karl Azzopardi
15:25 Comodini Cachia: "According to NAO report, Electrogas informed the minister and Enemata that Gasol was facing difficulty in raising equity. Did Gasol inform you on this?" Karl Azzopardi
15:25 Gasan: “There were three investors - Gasol and Socar were a single entity through a joint venture agreement.” Karl Azzopardi
15:24 Gasan: "Gasol and Socar were a joint venture agreement." Karl Azzopardi
15:24 "Initially in the consortium, Gasol was one of the four investors,” she tells Gasan. Karl Azzopardi
15:23 Gasan confirms he saw the presentation at some point over the past few weeks. Karl Azzopardi
15:22 The document shown to Gasan earlier was a PowerPoint presentation with slides. Comodini Cachia asks why he saw it only recently but not earlier on. Karl Azzopardi
15:21 Lawyer Therese Comodini Cachia is going to ask some supplementary questions. Karl Azzopardi
15:21 Gasan: "Links were being made between this project and the assassination - once that happened, it wasn't something we could fathom." Karl Azzopardi
15:20 Gasan: "Probably since 17 Black.” Karl Azzopardi
15:20 Lofaro: "Since when?" Karl Azzopardi
15:20 Gasan: "We had been wanting to see him (Yorgen Fenech) exit from Electrogas for a while." Karl Azzopardi
15:19 Gasan: "The investment by Gasan was always supposed to be passive - I didn't have the time to be director. Being director involves a level of responsibility that I couldn't take on." Karl Azzopardi
15:19 Judge Michael Mallia: “Why was Apap Bologna appointed instead of you?" Karl Azzopardi
15:18 Gasan: "We had a lot of discussions, there was no consensus on who would replace Yorgen Fenech on the GEM board. Then in November 2019 we had a board meeting as GEM where we met up – Ray Fenech was present but Yorgen Fenech wasn't. We decided to appoint Apap Bologna." Karl Azzopardi
15:15 Gasan: "I didn't have this discussion with him, and I immediately replied to everyone saying although I’m willing to help, I don't have the time to be a director." Karl Azzopardi
15:15 Gasan: "At that point, Yorgen Fenech sees the minutes that were issued of the discussion of the meeting, and he circulates an email to all directors of Electrogas saying his resigning from his position and that he is appointing me instead." Karl Azzopardi
15:15 Gasan: "In a meeting in May 2019, Yorgen Fenech did not turn up. We had a meeting with Ray Fenech and my father, and one thing we discussed is for Ray Fenech to meet with Yorgen Fenech to discuss his position as director." Karl Azzopardi
15:12 Gasan: “Yorgen Fenech wanted to resign in May 2019." Karl Azzopardi
15:12 Gasan: "That's the role of the Tumas Group to appoint someone else." Karl Azzopardi
15:12 Lofaro: "You could have maybe consulted your lawyers to appoint someone new to GEM." Karl Azzopardi
15:11 Gasan: "I can't see what action I could have done." Karl Azzopardi
15:11 Gasan: "If Yorgen Fenech wasn't present, we couldn’t have a quorum." Karl Azzopardi
15:10 Lofaro: "We're talking about 12 months, surely you could have taken action." Karl Azzopardi
15:10 Gasan: "During that period in 2019 up to Yorgen Fenech’s arrest was a time of huge concern for us, we were trying to see what to do. I was constantly speaking with Ray Fenech." Karl Azzopardi
15:09 Lofaro: "We're talking about 12 months, surely you could have taken action." Karl Azzopardi
15:09 Gasan: "During that period in 2019 up to Yorgen Fenech’s arrest was a time of huge concern for us, we were trying to see what to do. I was constantly speaking with Ray Fenech." Karl Azzopardi
15:07 Gasan: "I was never aware of any link." Karl Azzopardi
15:07 Lofaro: "The concern was the link between 17 black and the assassination?" Karl Azzopardi
15:07 Gasan: "The period I’m talking about here is 2019." Karl Azzopardi
15:07 Lofaro: "All this happened after the assassination?" Karl Azzopardi
15:07 Gasan: "Ray Fenech was extremely concerned - during that period Yorgen Fenech was never around." Karl Azzopardi
15:05 Gasan: “That's a hard question - from what I’ve seen publicly it looks like the company is his and he hasn't denied it.” Karl Azzopardi
15:05 Judge Michael Mallia: “When did you find out Yorgen Fenech was lying?” Karl Azzopardi
15:03 Gasan: “We had a board meeting towards the end of November 2019.” Karl Azzopardi
15:03 Lofaro: “Was this discussed at board meeting level at GEM?” Karl Azzopardi
15:02 Gasan: “We were also informed that he was going to meet with lawyers to look at suing or challenging this, but that didn't happen.” Karl Azzopardi
15:02 Gasan: “We were informed that Yorgen Fenech sent an email to the directors of Electrogas and with the company secretary asking for that email to be attached to the meetings, whereby he went through each allegation and denied those allegations completely.” Karl Azzopardi
15:01 Gasan: “I asked Yorgen Fenech specifically, I called him and sent him a message, but he advised me that 17 black isn’t' his. After that it was still a huge concern. Within that two-week period in November quite a lot happened. I checked whether there were transactions between GEM and 17 Black, but there were no transactions - neither with 17 Black. There were no links with 17 Black.” Karl Azzopardi
15:00 Gasan: “I had received an email in 2018 from a journalist from the Daphne Project, basically informing me that Yorgen Fenech was the owner of 17 Black. They sent three questions and I replied back. I rang Yorgen Fenech asking what all this is about and that he should sort it out. I assumed it wasn't really his - at that point I assumed he would rebut it and say it wasn't his. At that point I was at shock that somehow this company was allegedly owned by Yorgen Fenech, but then two weeks later the story broke. I had assumed that within those two weeks that they cleared up that this was a misunderstanding and the company wasn't his.” Karl Azzopardi
14:57 Lofro asks on 17 Black. Karl Azzopardi
14:56 Gasan: “There was a concern that Nexia BT was implicated, but with respect to their role as auditor, I didn't bring it up at the board.” Karl Azzopardi
14:56 Lofaro: “But Nexia bt was an auditor, were you concerned? yes or no?” Karl Azzopardi
14:56 Gasan: “As far as I know there were no links to Electrogas.” Karl Azzopardi
14:55 Lofaro: “What was your reaction to the Panama Papers?” Karl Azzopardi
14:54 Judge Lofaro is grilling Gasan on the use of Nexia BT as an auditor. Karl Azzopardi
14:53 Gasan: “No.” Karl Azzopardi
14:53 Lofaro: “Have you ever dealt with Nexia BT or any companies owned by Brian Tonna?” Karl Azzopardi
14:52 "In the conclusions of the NAO report, it states that Electrogas won the tender fairly." Karl Azzopardi
14:51 Gasan: "In my opinion it wasn't favourable for Electrogas, we were charged for it." Karl Azzopardi
14:51 Gasan: "The lenders of Electrogas were obviously not going to lend money to Electrogas until the state aid issue was cleared, so government had two options - either to wait until it's cleared or issue a bank guarantee." Karl Azzopardi
14:50 Gasan: “From what I read, there was quite a lot of criticism levelled at government - sometimes in my opinion it was fair criticism. In my opinion, the government guarantee should never have happened because ideally the state aid would have been declared before the tender was issued. Also with the government guarantee the public idea is that it sort of benefitted Electrogas, when Electrogas ended up paying 11 million euro for the guarantee. It wasn't really a concession of Electrogas in my opinion." Karl Azzopardi
14:50 Said Pullicino: "The conclusions are not very positive." Karl Azzopardi
14:50 Gasan: "I read the abridged and conclusion." Karl Azzopardi
14:50 Judge Jospeh Said Pullicino: "Are you aware of the NAO report issued in 2018 Karl Azzopardi
14:47 Gasan is also denying any relation to KASCO or any companies relating to Keith Schembri, but says he would rather see a list of companies to make sure. Karl Azzopardi
14:46 Gasan: "First time I met Mizzi was at the opening of the power station, otherwise I never spoke to Joseph Muscat.” Karl Azzopardi
14:46 Judge Abigail Lofaro: "Did you ever speak to Joseph Muscat about the project. Maybe through dinners or events? And what about Konrad Mizzi? " Karl Azzopardi
14:43 Gasan: “After the elections and after the contract was closed in 2013, my understanding is that the agreement of Electrogas were not all closed off - it was a very complicated project and meetings with Enemalta needed to take place." Karl Azzopardi
14:40 Judge Abigail Lofaro: "Did you know Fenech had connections to the Labour Party?" Karl Azzopardi
14:39 "The issue were clauses with the option for government to be able to terminate the LNG agreement in the event of the gas pipeline to Sicily." Karl Azzopardi
14:38 Gasan: "In 2017, the construction of the power plant was reaching its end. In August 2017, the government guarantee had expired. At that point there were a couple of options - the lenders of Electrogas were pushing Electrogas and the government to extend the government guarantee until the final construction and government agreements were concluded.” Karl Azzopardi
14:36 "What was your reaction when the consortium defaulted with BOV? This was an important development in the life of Electrogas," Judge Mallia asks Gasan. Karl Azzopardi
14:35 Gasan: "Yes" Karl Azzopardi
14:35 Judge Michael Mallia: "The negotiating element was Yorgen Fenech?" Karl Azzopardi
14:34 Gasan: "No, depends what decisions. Decisions within the consortium yes, but the representative with other partners was Yorgen Fenech." Karl Azzopardi
14:34 "So, you participated in decisions?" Judge Michael Mallia asks. Karl Azzopardi
14:33 Gasan: “My concern were the financials." Karl Azzopardi
14:32 Gasan: "The idea was that we will always be investors." Karl Azzopardi
14:32 Gasan: "Basically Yorgen Fenech was extremely interested in the project, and George Fenech was excited that his son was so interested in it. We entered into the consortium with the idea that Yorgen Fenech will take the lead. " Karl Azzopardi
14:31 Gasan: "When we met with George Fenech, he said Yorgen Fenech was extremely interested.” Karl Azzopardi
14:30 "Siemens only committed to the consortium at the eleventh hour - there was potential that the consortium would not be able to put in an expression of interest if siemens didn't take part," he tells the court. Karl Azzopardi
14:29 "What I recall during the expression of interest is that Gasan had a joint adventure agreement with SOCAR - they came in as 50% equity shareholders as a joint venture," Mark Gasan continues. Karl Azzopardi
14:28 “PWC assisted in preparing the bid, but it wasn't a financial document - it was only to understand who the bidder was, if they had the potential to bid for it and the experience as well as the financials behind it,” he replies. Karl Azzopardi
14:26 Judge Michael Mallia asks who helped in preparing the bid for the project. Karl Azzopardi
14:26 "At that point, the idea of an 18-year PPA agreement looked interesting, but the numbers at that point in terms of cost and revenue weren't available. Those only came later on after the expression of interest," he says. Karl Azzopardi
14:25 "At that point in time, our share was looking to be around five million euro - we had also, as Gasan, wanted to invest in water and do other long-term investments. We sold our investment to Melita so the idea of a long-term investment appealed to us," Mark Gasan tells the court. Karl Azzopardi
14:24 "As Gasan we were busy with our own operations, [..] from our side we made it clear that it would be a passive investment," Gasan says. Karl Azzopardi
14:23 “When we had our second discussion, we discussed the logistics of what could potentially be required to put in a bid. It was discussed that PWC would be approached immediately, and I believe Tumas had signed a letter of engagement with PWC. The PWC would come in to look at the project to see the feasibility of it, and to assist in evaluating whether it made sense to prepare a bid," Gasan says. Karl Azzopardi
14:21 The judge is showing a document to Gasan, asking whether Apap Bologna had seen the document. Karl Azzopardi
14:21 “No I was not,” he replies. Karl Azzopardi
14:20 “We understand that Apap Bologna had approached the Opposition (at the time the Labour Party) about the deal. Were you aware?” the judges ask him. Karl Azzopardi
14:20 Gasan confirms it happened before the election. Karl Azzopardi
14:18 Judge stops him, confirming whether they were involved in this deal before or after the election. Karl Azzopardi
14:18 Gasan says this happened prior to the General Election. Karl Azzopardi
14:17 “My father attended one meeting but never took it up to the board for discussion. It was just an idea, nothing happened of it," Gasan says. Karl Azzopardi
14:17 He says Fenech approached Gasan with the idea that the Labour Party has a proposal for an energy plant and that they were trying to form a Maltese consortium. Karl Azzopardi
14:16 "Who is we?” the judges ask. "My father and myself," Gasan replies. Karl Azzopardi
14:15 The judge is asking how Paul Apap Bologn brought him into this project. Gasan explains that they were first approached by George Fenech in 2013 (Yorgen Fenech’s father). Karl Azzopardi
14:14 "Paul Apap Bologna is my cousin in law," he explains. Karl Azzopardi
14:13 Asked about his background in electricity, Gasan admits he has no experience in electricity - Electrogas was his first. Karl Azzopardi
14:13 He came back to Malta from the United Kingdom in 2003, and started working in the property division of Gasan. Over the years he became more involved in other areas of Gasan Group. Karl Azzopardi
14:12 Judges ask him about his background in business. Karl Azzopardi
14:11 He will be testifying in English, he's also explaining that he has a stutter. The judges let him know that he can take his time answering. Karl Azzopardi
14:09 Mark Gasan takes the witness stand. Karl Azzopardi
14:08 The inquiry board is made up of retired judge Michael Mallia, chief justice emeritus Joseph Said Pullicino and Judge Abigail Lofaro. The judges emerge from their chambers. Karl Azzopardi
14:03 Journalists have entered the courtroom. Karl Azzopardi
14:03 Businessman Mark Gasan will be testifying today. He was heavily involved in the controversial Electrogas deal. Karl Azzopardi
14:00 Good afternoon. We are waiting outside the courtroom for the public inquiry to start. Karl Azzopardi

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