John’s Group CEO, former chairman deny that minister knew of oil bribes

John's Group chief executive officer Chris Farrugia, director Ray Farrugia and former chairman of the Executive Board Tony Debono have all denied that Home Affairs Minister Manuel Mallia knew of the oil bribes when he was appointed lawyer to PowerPlan Ltd - a subsidiary of John's Group.

The Farrugias' comments were made to The Sunday Times of Malta while The Malta Independent on Sunday interviewed Debono.

Both newspapers corroborate what MaltaToday has been saying all along and which, today in its print edition, reiterates. MaltaToday has once again published a crucial piece of evidence that exposed the bribery in Enemalta's procurement of oil, was not among a stash of court documents in the multi-million euro compensation case filed against oil trader George Farrugia.

It also proves that a $19,000 bribe to petrochemist Frank Sammut for the supply of oil to Enemalta came into MaltaToday's possession from a source unconnected to politics.

In comments to The Sunday Times, Chris Farrugia said Manuel Mallia "had no knowledge of any corruption in the procurement of fuel". Farrugia also said that "former minister Austin Gatt was never given any donation".

Manuel Mallia has categorically denied any knowledge of the oil bribes. Mallia had been appointed to assist PowerPlan Ltd against George Farrugia, after the latter siphoned off €40 million from PowerPlan Ltd.

As PowerPlan's lawyer, Mallia was tasked with seeking a resolution from Farrugia whose acts - if ensued in court - would have resulted in criminal action due to the acts of fraud and money laundering he had committed.

During his testimony before the Public Accounts Committee, under oath and assisted by his lawyers, George Farrugia said that on behalf of John's Group, he had donated €2,000 to Austin Gatt's electoral campaign prior to the 2008 general elections.

Austin Gatt had denied knowledge of the donation.

In a separate sitting, Farrugia had also claimed that John's Group had donated a Daewoo Matiz to the Labour Party, only for the PL to later publish documents confirming that the car had been given as a barter for pending payments which John's Group had to make after advertising with the Labour media.

Pressed by PN MP Beppe Fenech Adami, Farrugia also said "yes" when confronted with a statement saying that "Mallia and his brothers knew that illegal commissions were being paid in the procurement of oil".

Farrugia also said "yes" when asked to confirm that Mallia had used the information to "threaten him" in settling with the brothers. The oil trader, granted Presidential Pardon, said "I wouldn't call it a threat".

Both of George Farrugia's claims have now been rejected.

George Farrugia has also told the Courts that Tony Debono had "blackmailed" him. Debono is now insisting that he knew nothing of the oil bribes.

"We first learned about the kickbacks when the papers broke the news. Before that we were only interested in that money that was supposed to go into our accounts but didn't. That was the original aim, and that remained the only aim until I left the company," Tony Debono said.

"I am sure that Dr Mallia did not know because it was Chris Farrugia and I who told him that we needed to investigate the misappropriation."

Debono also said that Farrugia should have never been given the Presidential Pardon.

Meanwhile, PN organ il-mument has reported that "documents reveal that Manuel Mallia was aware of the oil bribes".

The newspaper refers to documents signed by Mallia as PowerPlan's legal representative. It is however not clear which parts of the document il-mument is referring to, since no documents were published in the paper.

The report is also unclear to which details the newspaper has revealed. It however gives a recap of what oil trader George Farrugia told the PAC.