Tancred Tabone 'approached' former Enemalta CFO to join Island Bunkers Oil

Welcome to MaltaToday's live blog of the PAC hearing into the Auditor General's audit of Enemalta's fuel procurement policy

EXPLAINER | Auditor General's report on Enemalta fuel procurement

21:09 The committee meeting is adjourned to Monday 14 October, however chairman Azzopardi asks other members whether an additional date can be earmarked for a further committee meeting. The committee settles on have an additional session on the same day at 9:30am. 

21:02 Pandolfino claims that the purchasing process was improved during his tenure with a number of changes carried out in the procedures used by Enemalta. 

20:54 Pandolfino says he had "breathed a sigh of relief" when he realised that the oil scandal was related to the time before he joined Enemalta. "After my father called me when MaltaToday broke the story I rushed to buy the paper," he says.

20:49 Pandolfino insists the taking of minutes themselves would not ensure "transparency". "I have long been wanting to say this... but I cannot hold it any longer. It doesn't make sense that because no minutes were held during FPC meetings along the years means that corruption could have taken place. Because the court case refers to alleged corruption related to a tender awarded at the end of December 2003, the same meeting during which minutes were held," Pandolfino says.

20:30 The government side has carried on with its questions, going into further detail into requirements and technicalities of the IBOL barge transfer services contract.

Pandolfino says it's up to Enemalta to explain why it kept extedning the contract.

20:11 With reference took the office laptop he took with him when he left Enemalta, Pandolfino said he did so to "ensure a smooth handover" in case his successor required any help or information on the work carried out by Pandolfino at Enemalta.

20:00 Pandolfino and former Enemalta chairman Alex Tranter remained friends, "regular and social contact" and this year they already travelled twice before the report was published. Since the report was published, they met and discussed the NAO report.

"What we did was exchange opinion on the report. But we didn't exchange information. What we did was compare notes... like for example when I analysed the bids based on what the NAO report had said."

Pandolfino says he never met former transport minister Austin Gatt once he left Enemalta.

He denies having recently spoken to David Spiteri Gingell.

"Minimal contact" with Frank Sammut and met him when a bunker association was set up through Malta Chamber of Commerce.

19:57 Pandolfino says once Tabone left Enemalta, they held no contact except for when they used to bump into each other coincidentally. He explains that iBOL in 2009 wanted to employ someone with a strong financial background "and Tabone approached me".

The directorship at iBOL was made up of Tancred Tabone, brother John and Francis Portelli, Tony Cassar and Fredrick Frendo.

19:49 PAC discussing technical issues how iBOL operates and Pandolfino repeats that he was not involved in Enemalta's decision to extend the iBOL contract and during his period at Enemalta only one extension had been given to iBOL.

Bonnici says he is finding it hard to believe that whereas Pandolfino remembered the first contract to iBOL was issued in 2008, he could not remember the first extension of the same contract in 2009 before he left Enemalta. (he immediately joined iBOL as its CFO after leaving the state entity).

"I never asked anyone at Enemalta to extend the contract," Pandolfino says.

19:39 Bonnici has asked Pandolfino whether it had been "beneficial" for iBOL when MOBC stopped its bunkering facility. "I cannot comment on this because I joined IBOL in 2009 and I didn't stay checking the figures and numbers relating to 2004," Pandolfino says.

19:33 Asked about Frank Sammut's involvement in iBOL, Pandolfino repeats he knows what was revealed in the media, just like he learned from the press that after leaving MOBC, Sammut joined iBOL.

"In the timeframe you are referring to, I had only just joined Enemalta for two months. I had other issues on which to worry. So no, I don't know why Sammut left Enemalta," Pandolfino said and shook his head when asked whether he had ever heard Tabone complain over Sammut's removal. (Sammut used to act as Tabone's consultant on the FPC).

19:23 In 2004 a government decision was taken to stop MOBC, owned by Enemalta, to stop operating as a bunkering company. Tancred Tabone was chairman of MOBC and Enemalta in 2004. IBOL was set up in 2003. But Pandolfino, who in 1 March 2004 started working at Enemalta, says he didn't know that Tancred Tabone was a silent partner - together with Frank Sammut who shared 50% of iBOL shares.

"I only learned this through the papers," he says. Pandolfino adds that when he started working at Enemalta he "didn't know who Tancred Tabone was" and he had no idea Tabone was involved with iBOL.

Turns out that Pandolfino's sister-in-law was Tabone's personal secretary. "Do you really think that I believe you when you say you had no idea in what ways Tabone was involved in iBOL? When your sister-in-law was his secretary," Owen Bonnici tells Pandolfino.

The latter replies that he never used to ask his sister-in-law about Tabone's interests. "I know he has a lot of investments but I never asked what investments he had."

19:15 Pandolfino is the current CEO of the Island Bunker Oils Ltd. According to the Auditor General's report, in January 2008, Island Bunker Oils Ltd (IBOL) was awarded a diesel barge transfer contract for a period of six months, with a further six-month option.

The contract was subsequently extended for an additional 26 months, while the rate for fuel transportation increased as well.

Pandolfino says he was not involved in Enemalta's decisions and could not comment on why the privatisation of the barge transfer services had not taken place. According to the Auditor General the decision to extend the IBOL contract was made due to the "imminent privatisation" of the barge transfer services.

He argues that IBOL and Enemalta operate in "different sectors" and Enemalta does not therefore compete in bunkering services. "Enemalta and iBOL are not in competition," he says.

18:09 Pandolfino's basic salary, excluding allowances, amounted to Lm23,000.

18:53 Pandolfino says that part of his job also included supplier-customer relations. He explains that this was due to him being responsible, together with the Petroleum Division, to close off the awarded contracts.

"Yes I used to meet suppliers and their representatives and we had both one-to-one meetings and even in the presence of others. The meetings were not regular," Pandolfino tells PAC chairman Jason Azzopardi.

The meetings, he said, used to take place when operational problems arise such as quality, supply, shipments and so on.

Pandolfino also says that whereas other oil suppliers would personally meet with Enemalta, TOTSA used to always bring George Farrugia. According to Pandolfino, Farrugia was "a sort of operations manager". "We never discussed commercial issues with Farrugia as this would be done with the traders directly and Farrugia was not a broker. He was responsible of the operations."

Asked to state how many times he met Farrugia, Pandolfino said he couldn't remember. "But it was not an issue of meeting once a week or once a month."

Pandolfino denied receiving any gifts, whether financial or other form, from Farrugia. "The only gifts I received were the standard Christmas gifts... like other customers used to send," he said.

Tabling a copy of his Enemalta contract, Pandolfino said he would be censoring his personal details and the salary he received. However, Labour MP Owen Bonnici objected to this, saying he should declare his salary.

Pandolfino subsequently agreed, but commented that this was "a private contract".

Azzopardi agrees it should only be the personal details such as the I.D. card number and his home address to be removed.

18:50 Grilling continues with former Enemalta CFO Pippo Pandolfino.

18:44 PAC session starting soon... Many hoping it will be over by 8:45pm in time for the Juventus vs Galatasaray match. Labour MP Luciano Busuttil, sporting a Juventus tie, is one of the hopefuls.

18:30 Proceedings to start soon.