George Farrugia’s wife interrogated by fraud squad over oil scandal

Cathy Farrugia, the wife of oil trader George Farrugia, was interrogated for seven hours by Superintendent Paul Vassallo, at the Economic Crimes Unit, just before New Year’s Eve, in connection with the oil scandal.

It is the first time she has been quizzed about the years-old, multi-tentacled scandal, though she played a central role in it.

Revealed by MaltaToday in 2013, the corruption at Enemalta and the oil scandal led to the arraignment of a number of individuals on charges of being involved in illicit dealing. 

However, the kingpin in the scandal – oil trader George Farrugia – was granted a presidential pardon on the advice of then prime minister Lawrence Gonzi on the premise that he would disclose the whole truth and nothing but the truth.

His wife, Cathy, was responsible for the invoices issued behind the back of Farrugia’s brothers.

Farrugia’s wife is believed to have been responsible for the invoices issued under Aikon Ltd, a company her husband created to siphon off commissions on the sale of oil through a family company, Power Plan, a subsidiary of the John’s Group

The Aikon invoices were issued from an office computer during Farrugia’s time as an employee of the Farrugia brothers’ company, Power Plan Ltd. The invoices were issued in relation to the sale of oil and fuels by Trafigura and other oil companies to Malta’s state energy corporation, Enemalta.  

The invoices cover the period 2003 until 2010.

In spite of her central role, Cathy Farrugia was never interrogated by the police. Her first interrogation took place only a few weeks ago.

At the various hearings in the Public Accounts Committee it became evident that the police had completely forgotten or conveniently overlooked interrogating Cathy Farrugia.

Her role is all the more significant having served former prime minister Lawrence Gonzi as his secretary for some 10 years when he was the legal advisor at the Mizzi Group, where he was employed before entering politics.

Gonzi had denied knowing Cathy Farrugia, when quizzed by MaltaToday journalists in February 2013. An enduring image of Gonzi was however printed on the backpage of Nationalist organ In-Nazzjon, in a friendly chat with George and Cathy Farrugia during an open day at the Safi Aviation Park.

After MaltaToday broke the news that a former Malta Oil Bunkering Corporation director, Frank Sammut, had pocketed kickbacks from Trafigura for the sale of oil to the Enemalta subsidiary, Gonzi surprised his Cabinet by advising a presidential pardon for the Trafigura agent, George Farrugia, on condition that Farrugia would reveal everything in connection with the oil scandal.

But in his police statements, Farrugia’s admission to paying kickbacks stops with the time when Tancred Tabone was chairman at Enemalta. He did not admit to having given kickbacks in the time of Alex Tranter, also chairman of Enemalta, even though his wife Cathy continued to issue invoices for Aikon Ltd after Tabone was no longer Enemalta chairman.