Energy minister says Enemalta blacklist of TOTSA, Trafigura ‘legally sound’

Enemalta will keep oil giants Total and Trafigura on a tender blacklist until the police investigation into kickbacks paid by their representative George Farrugia to former Enemalta officials is completed, energy minister Konrad Mizzi said.

Mizzi said that the state energy corporation was on "legally sound ground" in precluding TOTSA Total Oil and Trafigura from competing for public tenders for the supply of oil, after Farrugia was revealed to have paid kickbacks to Enemalta's former chairman and other officials.

"Our position is that until the investigation is ongoing, they will not participate in tendering," Mizzi said, citing the World Bank's employment of blacklists when companies are implicated in corruption.

TOTSA Total Oil, a subsidiary of French oil company Total, a subsidiary of Elf Aquitaine, yesterday filed a judicial protest against Enemalta over its preclusion from tendering for the supply of oil.

TOTSA said that Enemalta had informed it by means of a letter dated 20 February, that it would not invite or consider any offer by the company in future calls for tender.

The company said that the decision was motivated by allegations of corruption made against former Enemalta officials, already accused in the Maltese courts of receiving kickbacks from oil trader George Farrugia.

"The company is one of the leading companies in the supply of oil products, and on many occasions was awarded tenders for the supply of oil following a public call for tenders," TOTSA said, which insisted that tenders were won because of its advantageous prices.

"We have replied to Enemalta's letter declaring that in no way were we involved or aware of any wrongdoing in any contract awarded by Enemalta. To date, no charges have been issued against TOTSA on these allegations.

"We believe Enemalta's decision is discriminatory, abusive and illegal," TOTSA said.

Enemalta excluded both TOTSA and Trafigura from oil supply contracts back in February during police investigations concerning alleged illegal commissions. TOTSA is the oil trading arm of French oil major Total, and Trafigura is a top five private oil trading house.

The police has so far arraigned in court former Enemalta chairman Tancred Tabone, former MOBC chief executive Frank Sammut, business partners Francis Portelli and Anthony Cassar, as well as former Enemalta financial controller Tarcisio Mifsud and fuel procurement committee member Alfred Mallia, accused of varying degrees of bribery, corruption and money laundering.

The arraignments followed a government decision to grant a presidential pardon to Total's former local agent, George Farrugia, in return for information given to the police and to a court.