Updated | Manuel Mallia lying over oil bribes, say Nationalists [video]

The Nationalist Party has accused home affairs minister Manuel Mallia of "lying" about his knowledge of bribes paid by George Farrugia to Enemalta officials, when he was appointed as a lawyer for Powerplan Ltd.

In 2010, Mallia was appointed by board resolution as a lawyer for Powerplan, a subsidiary of the Farrugia family company John's Group, to seek a settlement with George Farrugia after being accused by his brothers and co-shareholders of siphoning oil revenues from the company to his personal company, Aikon Ltd.

Yesterday Mallia said that any confidential knowledge he might have had of the bribes was protected by professional secrecy.

But the PN today published the video of a 23 February 2013 press conference in which Mallia is heard denying any knowledge of the bribes.

The press conference was held after MaltaToday broke the story in late January that a former Enemalta consultant, Frank Sammut, had been paid commissions by Dutch commodities giant Trafigura for the supply of oil to Enemalta - Farrugia, whose company Aikon was at the present time presenting Trafigura, was granted a presidential pardon to turn State's evidence on the allegations.

In the press conference, Mallia says:

"I once again repeat, before the Maltese and Gozitan public, and you members of the press, that you can ask him any question you wish - I did not know about this before having read it in the newspaper," Mallia says, to questions pertaining his 2010 appointment for Powerplan.

"I did not about that there was any bribery over oil procurement in the country. I was exactly in the same situation you are in," he tells a member of the press. "A Maltese citizen who imagined the purchase of oil was being carried out in a regular manner."

The PN has now accused Mallia of invoking his professional secrecy, and saying that George Farrugia was not his client. On his part, Mallia says that since he was appointed by Powerplan, and Farrugia was a shareholder of Powerplan, then his professional secrecy stands.

"Mallia is contradicted by his own statement yesterday. Farrugia has confirmed that in 2010 Mallia was already aware of the corruption in the procurement of fuel and that Mallia had threatened him to report the allegations to the police in a bid to reach a settlement for the John's Group. Mallia and Joseph Muscat must now shoulder their responsibility."

Labour reaction

In a statement, the Labour party said that George Farrugia's testimony had produced "conflicting reactions" from the PN, saying that Opposition leader Simon Busuttil had stated that former minister Austin Gatt should answer for a €2,000 political donation in 2008, while Gatt had claimed he knew nothing of this donation.

"It looks like both Busuttil and Gatt, who worked side by side during the election campaign, are now blaming each other - Busuttil is running away from his responsibility, and Gatt brushing everything aside. This is a game that is alienating the public from its right to know where its money has been spent."

Professional secrecy

Mallia has defended himself from accusations by the Opposition that he was privy to allegations of kickbacks in the sale of fuel to Enemalta, during his time as a lawyer for Powerplan Ltd.

Mallia was employed by the company to secure a settlement from George Farrugia, who managed family business Powerplan, after he was accused by his brothers of siphoning funds in oil commissions from Trafigura and TOTSA, among others, and into his personal company Aikon Ltd.

But Mallia yesterday said that divulging any information he had obtained while serving as legal counsel to Powerplan would constitute a "crime as contemplated in the Criminal Code".

Questioned by MaltaToday on whether he should have gone to the police with the information after deciding to contest the general elections, Mallia insisted that anything that may have been said during the meetings with his client were "strictly confidential".

Mallia's law firm was appointed legal counsel to Powerplan during a company board resolution dated 27 September 2010, signed by the five Farrugia brothers, of the John's Group. The board resolution stated that the "appointment relates specifically to the misappropriation of funds by the said Mr [George] Farrugia against the company".

The minister pointed MaltaToday to correspondence - which he said could not be divulged due to professional secrecy - that "shows very clearly that the subject under discussion were the fraudulent acts committed by George Farrugia against the company".

Mallia insisted yesterday that the criminal activity he had referred to was the fraud and money laundering Farrugia had committed. "It is indeed very strange for lawyers to spin for their political advantage certain known legal principles. It is normal practice that a lawyer, on behalf of his client demanding payment of damages as a result of fraud and money laundering, writes that if payment is not made criminal action will be taken."

According to Article 257 of the Criminal Code, a lawyer is liable to a two-year term of imprisonment for divulging any professional secret confided in them, except when compelled by the law or if this pertains to any offence under the Dangerous Drugs Ordinance, or the Prevention of Money Laundering Act.

Mallia added that anything which has been said during the "one meeting" held with George Farrugia with his clients was "strictly of a legal, professional nature".

Mallia denied giving any third party any information or detail on this case, and that he was no longer involved in this legal matter after March 2011.

Article 642 of the Criminal Code also states that lawyers cannot be forced to reveal any knowledge derived from the professional confidence placed in their assistance or advice". This gives lawyers the privilege that they cannot be forced to divulge confidential information, apart from being also prohibited by the advocates' code of ethics.