Finance minister takes cautious stand on fuel smuggling link to tax evasion

Finance Minister Edward Scicluna has told MaltaToday he will be looking into the allegations of smuggled fuel, but has refrained from commenting on revelations by MaltaToday last Sunday on a police investigation into the ongoing diesel contraband implicating the Falzon Group.

So far it is also unclear whether Scicluna has asked the tax authorities to look into reports of massive tax evasion, linked to the sale of undeclared diesel contraband.

"The ministry is looking into the issues that are being raised. At this stage, the ministry does not feel it is prudent to comment further," a spokesperson told this newspaper.

The two directors of the Falzon Group were released on police bail after their vessels were investigated on allegations of fuel smuggling. But unlike the oil and bunkering scandal revealed last January by MaltaToday, there has been no response from the political class on the matter and unusual silence from the media circus.

The Falzon Group, of Birkirkara, are known traditionally to have been very close to former PN finance minister Tonio Fenech.

MaltaToday can confirm that the diesel that was transferred to the 'contraband' boats including that of the Falzon Group, was of an inferior quality and higher in sulphur content.

Various retailers told MaltaToday that representatives from the Falzon Group and others would approach them and offer 'contraband' diesel at the petrol station for a cheaper price. However some petrol stations told us that they bluntly refused the 'Falzon' diesel even it was cheaper, because many motorists would complain of the inferior quality because of the high sulphur content.

The 'contraband' diesel is sought mostly by the construction industry and transport sector, who have large fleets and require high quantities of diesel.

The 'contraband' diesel has always been offered at a far cheaper price to that the high quality diesel by Enemalta but it is unknown what percentage of the total sale of diesel is covered by this 'contraband' diesel.

Official figures show that around over half a million kilogrammes in declared diesel is sold in Malta every year.

Today, the owner of a second vessel that was confiscated in connection with allegations of smuggled fuel, filed another judicial protest to stop the impounding.

Pierre Darmanin, as owner of  M.V. Silver King, argued that the vessel had been confiscated since 2 July and that following an inquiry by Magistrate Edwina Grima, no charges or evidence have been raised against the owners.

Lawyer Rachel Tua, who signed the protest, argued the seizure of the vessel is endangering the livelihood of the owner and his employees.

The judicial protest reads that the Commissioner of Police, the Harbour Master, the Court Registrar, the Comptroller of Customs, Transport Malta and the Attorney General will be kept responsible for all losses the company sustains following the confiscation of its vessel.