‘Oil investigation files spent 15 months in Peter Paul Zammit’s office’ – Vassallo

The police files pertaining to the investigation into the oil scandal spent 15 months in the office of former police commissioner Peter Paul Zammit – from the day he walked into his office until the day he walked out.

The police investigations into the oil scandal continued as usual, with the court cases being heard and a number of accused appearing in court.

Testifying before the parliamentary committee discussing the Auditor General’s report in Enemalta’s fuel procurement, Superintendent Paul Vassallo said that records showed that the file was transferred to the former police commissioner’s office on 12 April 2013 and were returned back to Inspector Jonathan Ferris in July 2014 – the same month which saw Zammit stepping down from his post.

Ferris had taken over the investigation from Inspector Angelo Gafa.

“I have no idea why the files were kept in his office,” Vassallo told the public accounts committee.

Vassallo said the investigation started after MaltaToday published invoices showing that commissions were paid to an Enemalta procurement committee member for the oil purchased by the state utility, into a Swiss bank account traceable to Frank Sammut.

“On that Sunday, myself and Inspector Angelo Gafa visited Saviour Balzan at his offices in San Gwann for further inquiries. Balzan had mentioned Frank Sammut…in fact the newspaper on the day had published receipts showing the kickbacks that were being paid,” Vassallo said.

Vassallo, still superintendent within the Economic Crimes Unit, formed part of the investigative team investigating the oil scandal. Unlike the rest of the team – Assistant Commissioner Michael Cassar and Inspector Angelo Gafa who today hold positions within the Malta Security Service – Vassallo still holds this position.

Once again, it was established that the investigative team first heard of the president pardon from the newspapers. Vassallo remembered that Cassar had also floated the idea, but he [Vassallo] was never involved in any discussions on the actual granting of the presidential pardon.

According to Vassallo, pardoned oil trader George Farrugia had appeared nervous and certain body language had given away that he knew more than he was letting on.

“After the presidential pardon was granted, Farrugia became extremely cooperative and always handed in requested information and even accepted to do confrontations, including uncomfortable ones,” he said.

Vassallo said that even though a number of individuals, including Frank Sammut and Alfred Mallia, had admitted to the allegations, the police still required evidence. This evidence, he said was to be corroborated by Farrugia’s testimony and invoices.

PAC substitute member minister Edward Zammit Lewis asked whether the police had managed to obtain any documents which proved the corruption allegations. Vassallo said that Saviour Balzan had passed on invoices published in the newspaper and further invoices “which he had to get from third parties”.

Vassallo said he was not involved in the process and was not present when the police questioned former PN ministers Tonio Fenech and Austin Gatt. Grilled by parliamentary secretary Justyne Caruana, Vassallo said he didn’t know in detail what was said during these interrogations. He did remember reading in the report that George Farrugia had donated €2,000 to Gatt’s electoral campaign, which he handed over to Gatt’s son.

Vassallo said the presidential pardon had led to the arraignment of Tarcisio Mifsud. “I remember Farrugia saying that he had paid Tarcisio Mifsud, bribing him for the award of a contract. In reality, Farrugia had not won the contract. Confronted by Farrugia, Mifsud had told him that if he [Farrugia] were to win all the contracts, suspicions would arise,” he said.

Pressed by Zammit Lewis, Vassallo said the police were not informed of any corruption that took place after 2005 and which Farrugia had not told them about.

In a previous sitting, Michael Cassar had told the PAC that the presidential pardon had been required to obtain any information that could prove that corruption existed after 2005. However, now such corruption transpired. Cassar was adamant that the police had had the necessary evidence to arraign a number of individuals on bribery pre-2005.

“We had nothing to question Farrugia about post-2005…we used to make the questions and Farrugia used to answer. If we didn’t have any information, how could we make the questions?” Vassallo told Caruana.

Caruana additionally asked Vassallo whether he was aware that former Enemalta chairman Alex Tranter had left the state entity to work for SunPower Corporation, a Total subsidiary. Coincidentally, Farrugia had also been a Total agent.

Vassallo said he could not remember the details, only that the name ‘SunPower’ “rang a bell”: “But I don’t remember that we spoke about Alex Tranter with George Farrugia.” Tranter currently faces charges of misappropriation of funds connected with his tenure at the helm of the energy corporation.