Trafigura, TOTSA still firmly under Enemalta blacklist

Two oil firms associated with George Farrugia, the lubricants importer who was granted a presidential pardon to turn State’s evidence on a bribery investigation, remain blacklisted by state energy utility Enemalta one year on.

In February 2013, Enemalta informed TOTSA Total Oil Trading S.A. and Trafigura PTE Ltd that it will not invite, nor consider any offers from these two companies until pending investigations related to fuel supplies are concluded.

The two companies had been in one way or another, represented by George Farrugia, formerly a partner in family business John’s Group and subsidiary Powerplan, importers of oil products.

But when MaltaToday broke the story that Trafigura had paid a bribe to Frank Sammut, the chief executive of Enemalta subsidiary Mediterranean Offshore Bunkering Corporation (MOBC) in 2003, police investigations were kick-started into a complex web of bribery and corruption.

Farrugia, the agent for Trafigura and TOTSA, became the focus of police investigations but in an effort to reveal accomplices and other public servants who had received bribes for the supply of oil to Enemalta, was granted a pardon to turn state’s evidence.

Police eventually charged Sammut and Tancred Tabone, the former chairman of Enemalta, both of them accused of being regular recipients of commissions and bribes by Farrugia, ostensibly to favour his offers during Enemalta procurement competitions.

They also charged entrepreneurs Francis Portelli and Anthony Cassar, who formed an oil bunkering company with Sammut and Tabone, the latter silent partners during their time at Enemalta and MOBC.

Other persons charged included former Enemalta officials.

“Enemalta’s position will remain unchanged until these inquiries are concluded,” Enemalta said when asked by MaltaToday how long the blacklisting of TOTSA and Trafigura will be staying in place.

A TOTSA spokesperson says the company is still holding Enemalta responsible for any damages incurred in the process.

“TOTSA has always conducted its business in a legitimate manner. Indeed TOTSA objected and still objects to the decision taken by Enemalta to oust TOTSA from tenders,” the lawyer representing the company, Stefano Filletti, told MaltaToday.

“TOTSA has reserved its right to seek damages in respect of the economic and image consequences it suffers as a result of this matter and fails to see how the maintaining of the ban, which deprives Enemalta of a competitive and reliable business partner, is in the public interest.”

The company has already filed a judicial protest against Enemalta, calling for the revocation of the blacklist.

The parliamentary Public Accounts Committee has yet to conclude its questioning of George Farrugia as part of its investigations into oil procurement practices.

According to the National Audit Office, it could be assumed that between 1999 and 2006, Farrugia paid some $905,000 in alleged commissions to Enemalta officials.