Shipping agents reported MOBC chief executive to Ombudsman over unfair practices

The national Ombudsman has revealed conclusions of an investigation the office had carried out under Joseph Sammut in 2004, on a complaint of discrimination against the Malta Oil Bunkering Corporation's then chief executive Frank Sammut, who is at the heart of allegations of kickbacks from commodities firm Trafigura for the supply of oil to Enemalta.

The complaint was made by the Ronasons Shipping Agency in which they alleged that between 2001 and 2003, their principals had been "repeatedly informed" by MOBC to make use of a local competitor agent, instead of Ronasons for oil bunkering operations supplied by MOBC. Ronasons claimed that the MOBC said that the bunker price it was quoting included the agent's fee and as such MOBC reserved the right to nominate the agent they deemed fit for the job.

The situation persisted despite the fact that since April 2003, MOBC bunker prices no longer included the agent's fees and this had to be paid by the ship-owner or brokers directly to their local agent.  The complainants pointed an accusing finger at Sammut, then CEO of MOBC.

In his conclusion to the investigation, Ombudsman Joseph Sammut said that even though suspicions remained on what really went on prior to April 2003 when MOBC asserted its right to nominate the local agent, there was however no definite and conclusive proof that MOBC acted discriminatorily.

The allegations of discrimination after April 2003, when MOBC changed its policy and left the choice of agency to the traders, were never substantiated.

However there was one instance where MOBC clearly acted unfairly in respect of complainants when it indicated to Texaco/Famm that on the next occasion they choose "the right agent" and not Ronasons.

"This incident can be considered as evidence of the strained relations between MOBC's chief executive and complainants. It added fuel to the latter's suspicion of improper discrimination but one cannot generalise and reach the conclusions that the latter's reduction in bunker business was caused by MOBC's attitude or practice," the office of the Ombudsman had said in 2004.

During the investigation, the complainants presented a number of emails from employees of the brokers, with names of third party companies involved in oil bunkering operations supplied by MOBC mentioned. But no involvement of these third party companies were found in the complaint that formed the dispute between Ronasons agency and Frank Sammut.

In a statement, Ombudsman Joe Said Pullicino said he was publishing the complaint in the public interest after it was revealed that an allegation of corruption was investigated by the Office of the Ombudsman in 2004.

The complaint was lodged by Alfred Pace, director of Ronasons Shipping Agency, in August 2003, who alleged that the agency was being discriminated against by MOBC chief executive Frank Sammut.

Said Pullicino said that at no stage during the investigation by the Ombudsman's officed was there an allegation of corruption which would have necessitated referral to the Permanent Commission against Corruption.