Gonzi admits 'amnesty comment' set talk of a pardon in motion

“I am assuming he is reffering to the fact that he came to Castille when he had indications about the presidential pardon. I repeat John Rizzo came to Castille when there was this development as a result of what I said. Rizzo was not involved when I commented about. He became involved after that comment and when he had indications that the presidential pardon could help with the progress,” Gonzi says.

“Rizzo is obviously saying he was not involved in the issuance of the presidential pardon because I was the one who made the comment. But that effect resulted in the presidential pardon.

“It makes sense. I explained it already.” Miriam Dalli

Minister Edward Zammit Lewis refers to what John Rizzo told the PAC that he had received a phone call from either Cassar or Gafa who had been contacted by Franco Debono (representing George Farrugia) over the presidential pardon. Zammit Lewis argues that Rizzo said he wasn’t the one who suggested the presidential pardon and it was Gonzi who mentioned it.

But according to Gonzi, Rizzo was “saying the same thing” as he was and that the Cabinet had been adviced to recommend the presidential pardon. “The AG and the Police Commissioner confirmed that the presidential pardon was needed,” he says, with Zammit Lewis saying that it wasn’t the question he asked.

The question is who first mooted the presidential pardon, with Gonzi saying he was not understanding. Zammit Lewis once again reads what Rizzo told the PAC. Miriam Dalli

“Perhaps you don’t respect what John Rizzo says. But I do,” Gonzi tells Bonnici, as he quotes what Rizzo said in that the presidential pardon was needed. “You are the justice minister and I expect you to understand that you have the Police Commissioner giving making such a statement.”

Gonzi adds that even Michael Cassar – then assistant police commissioner – had said that the police were in a position that they could not make progress without a presidential pardon. “I am here to make question but the line of questioning worries me because it’s like the presidential pardon was not needed.” Miriam Dalli

“John Rizzo came to me saying the presidential pardon would help the police in their investigation because the person concerned said he would be ready to speak if he were to be pardoned. He asked me to consider it and I said that, based on his experience, he felt that this was required, I said I would consider it. The pardon came because the police – through John Rizzo who was the only person I kept in contact with – asked for it. And I insisted that the AG and the Police Commissioner tell the Cabinet whether the pardon would lead to where the investigation did not.”

Bonnici informs Gonzi of Supt Vassallo’s earlier testimony who said that they needed the presidential pardon to uncover irregularities after 2004/5 but Farrugia never revealed anything new. “Yes, but if I were you I would give more importance to what John Rizzo said,” Gonzi tells Bonnici. Miriam Dalli

“We had the burden on our shoulders that we had EU targets to meet and we would have faced huge fines. It was urgent that we had to expand Malta’s generation of electricity as soon as possible while closing down the Marsa power stations,” he says.

He however was not in a position to confirm whether the extension should have been fired by gas but says that the extension had to be done urgently and there should be the facility to be switched to gas.

Gonzi says he was not happy with Enemalta and the instructions to his minister was to ensure efficiency. “It was because of this that the responsible minister had to introduce certain changes.” He says he was not happy with the way bills were issued and the people’s complaints revealed “a certain level of inefficiency.”

He adds that he wanted Enemalta to be more involved in the introduction of renewable energy, and the introduction of PVs started. Miriam Dalli

“It was an agreed decision that all heads were to be changed. It was up to the ministers to recommend who was suitable for the post and ministers are usually more efficient to know who the people are.”

Alex Tranter was subsequently appointed and Bonnici asks Gonzi for his opinion on Tranter’s performance: “We used to have meeting on the prices, tariffs and the importance of alternative energy and incentivise the use of PV panels – on a strategy meeting – he seemed to understand our strategy. Malta could not remain vulnerable and dependable on oil and we wanted to plan beforehand and negotiate with EU to reduce this dependency – through the interconnector.

“Tranter was given direction to create a strategy and instead of enlarging power station we would turn to interconnector so that once the Marsa power station would have been closed, we would turn onto it. Tranter used to participate in these discussions and he used to show a certain expertise.”

Gonzi delves into an explanation of his administration’s energy vision and how it had been preparing to switch to gas and how it had wanted to ensure security of supply. Miriam Dalli

But then he insists that the decision was not based on any information that he may have received in 2004: “I called a meeting at Castille where I called in all chairpersons in all corporations where I spoke to them and told them that there would be changes and it was important there would be fresh faces. And these changes were carried out and several persons were changed in this reorganisation, in a context where I wanted more effective controls due to our Maastricht targets. The logical conclusion is that, through that change, those abuses stopped.”

Bonnici says that, from time to time, there appeared letters in the newspapers over the procurement of fuel. Bonnici reads out a particular letter, which he says gave rise to national debate on the use of heavy fuel oil. Gonzi says he never read the letter that spoke about this ‘powerfully lobby that stood to loose’ with the introduction to gas.

Gonzi says Bonnici mislead him because the letter appeared in 2013, and Gonzi thought the letter was published in the years before. Still, he confirms that no one had flagged that letter to him. Gonzi adds that the country had taken the decision to switch to gas, the decision to seek EU funds had been taken and a decision to have an interconnector was taken as well. Miriam Dalli

“I understood the question and I gave you the answer. It is no,” he says, asking Bonnici why he was making the question.

Gonzi says, he assumes that if he had been told about a project he would have remembered. “I don’t remember if Farrugia ever proposed a project and no I don’t remember whether he met with my head of secretariat.”

“I’d like to repeat that the correct method is that one has to go the police when there are reports of alleged irregularities. I remember the minister had asked the MP to pass on any information he might have. But as far as I remember, no irregularities were unearthed. Sammut’s contract was terminated I think around 2004,” Gonzi says.

Bonnici also asks about the Auditor General’s report that flagged the shortcomings in Enemalta’s fuel procurement, to which Gonzi nods his head: “Minister remember that it is impossible for a Prime Minister to micromanage, that you expect a PM to check on a company of a company that falls under a minister, and you expect a prime minister to check about it? On MOBC I remember that nothing resulted; when reports emerged in 2013 of the irregularities I ask for police investigation.” Miriam Dalli

Asked by Bonnici whether anyone had flagged the manner by which oil was procured, Gonzi said no: “Even police investigations showed that alleged irregularities happened before 2005. In fact, I wanted to know whether these happened during my term.”

Even before 2008, Gonzi had no indication which called for a meeting on fuel procurement. He says that if there was something dubious and that prices were higher than they should have been “I’d assume someone would have told me”. He reiterates that he never asked how fuel was being procured.

He says that before 2004 and 2008, there required no Cabinet discussion on fuel procurement. A discussion would have been held on performance, on financial results and so on. “If the question is whether there had been a discussion on any allegation on abuse on Enemalta, the answer is no. We never had such an allegation.” Miriam Dalli

“As far as I remember, she never communicated with me. If I had to list the number of persons who spoke to me over these 10 years … but no.”

“I never interfered in the commercial relations of the PN. I would know of advertising and as payment they would supply us with equipment…but I was never involved in this type of work.”

In reply to Bonnici’s question, Gonzi says he didn’t know that Farrugia used to give gifts to the PN and when news emerged of the Tonio Fenech’s clock, he had asked for Fenech’s explanation.

Miriam Dalli

Floor opened to questions. Miriam Dalli

“[…]While I was in Brussels on the night between 7-8 February, Rizzo informed that there was an agreement on the draft of the presidential pardon. I was advised that an advice by the Cabinet was also required. There were some who commented that the Cabinet should not have been involved because of the presence of ministers who were being investigated.

“The first point is that the AG informed me that a presidential pardon required the advice of the Cabinet. The second point is that Rizzo said that, based on police investigations, ‘no suspicions on any minister resulted. […]There is no reason that the matter would be prejudiced if it were to be brought before the Cabinet. […]I believe that the presidential pardon should be brought before the Cabinet as soon as possible’.” Miriam Dalli

In an eight-page statement, Gonzi said he had always asked the Police to investigate whenever he received any allegations and it had been for this reason that he had asked John Rizzo to investigate.

Before his testimony was interrupted because of a mistake when the photocopies were carried out, Gonzi “categorically denied that a member of the security service assigned to my office had presented me with a file and that I passed on that file to the competent authorities for investigation.

“If this were true, I would have passed on the files for investigation. But I never received any files. I categorically denied this statement several times. And I find it strange that this allegation was repeated caprciously.” Miriam Dalli

Vassallo refers to his last testimony and says that he was mistaken in his recollection of when the files of the investigation had been passed on. His mistake was a result of a mistake in the records.

His testimony ends here. Miriam Dalli

“In my opinion, the presidential pardon was not a totally mistaken step because somebody had to pop that balloon and the responsibility fell on my bosses. But no, not much was revealed after that,” Vassallo says, adding that people expected results and decisions had to be taken there and then.

“Farrugia knew that if he didn’t follow the conditions of the presidential pardon, the risks were higher and he had more to lose. I don’t think he was in a position to play games. I think he was telling the truth whenever we could test him.”

Pressed by justice minister Owen Bonnici whether Farrugia may have known more, but because he was not confronted by the police he did not say anything, Vassallo said the police sought to corroborate any information it had and suggested the PAC speaks to Inspector Angelo Gafa. Miriam Dalli

He also confirms that he was not aware of any investigation related to the case that may have been going on. Asked whether the name Cathy Farrugia rang a bell at the time, Vassallo replies in the negative.

Vassallo also says that he had never felt the need to call for Cathy Farrugia, George Farrugia’s wife, during the investigation. He says Farrugia only referred to his wife when she was “referred to as the ‘dragon’” in a 2010 Yahoo chat. Miriam Dalli