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[LIVE] Lawrence Gonzi in the Public Accounts Committee
Former prime minister Lawrence Gonzi appears for the second time before the PAC in a continuation of the parliamentary committee's inquiry into Enemalta's oil procurement
23 January 2015, 5:55pm
Miriam Dalli
Miriam Dalli
Bonnici says there is no objection to the Opposition’s request, pointing out that the Auditor General was obliged to do so.
Asked whether George Farrugia had coordinated the meeting with Leonard Callus, Gonzi said he didn’t know. Bonnici proceeds to read emails published by MaltaToday in which Callus asks Farrugia to pass on a copy of the presentation before the meeting with Gonzi et al.
“All I know is that this would have been an investment from the Gulf and that the local promoters were the Hili’s. I don’t know how George Farrugia was involved in it.”
Farrugia was involved in Horizon Terminals Ltd.
“The company was called Horizon Terminals Ltd and they had been interested in doing a private project. And the family Hili were involved. They spoke to the minister and eventually there was a presentation but nothing resulted. That project ended up in court. I had been extremely sceptical because it involved the construction of a breakwater that cost millions. And my skepticism was justified.”
Gonzi says Galea Curmi received one email and not the whole thread.
Parliamentary secretary Justyne Caruana reminds Gonzi that he had referred to an email sent on 2 July but the emails presented referred to 3 July. Photocopies of the emails dated 2 July are now being made.
Zammit Lewis then asks about the time Cathy Farrugia worked as a secretary at Mizzi firm, the same firm Gonzi worked at. Both worked at the legal office. He however got defence when asked about it: “Because MaltaToday reported that Cathy Farrugia had been my secretary and it’s not true. My secretary was Josephine Galea and she had nothing to do with Cathy. I know who Cathy is but I am not familiar with her. And no, Cathy was not the board secretary. I served as chairman of the board,” Gonzi says.
Gonzi reacts: “I expected questions to be on what I said and that I refused to meet them. Can you try and explain your series of arguments to try and build this familiarity between myself and Farrugia’s. What are we doing here? Is this a court procedure? I want to know what is going on here. Because if so… I am a lawyer and I know how to reply. It is obscene and I can’t reply in a political environment. This is a political environment. I have the right to reply in this political environment. If you want, stop me.”
“Cathy Farrugia sent an email requesting meeting with husband. I replied that ‘on a point of principle I do not accept have meetings on issues that are proceeding by tender’. George Farrugia replied ‘to clarify his position and avoid any misunderstanding that may have arisen from the email’.”
In the email quoted by Gonzi, Farrugia says “having got to know of some disquieting rumours, I thought it would interest you to know”. In an earlier email, Farrugia informs Gonzi that PowerPlan Ltd was one of the bidders for the privatisation of Enemalta’s petroleum division: “I heard rumours from informed sources that things may not be as straight as they should”.
Asked by Bonnici whether any action had been taken on the allegations he received, Gonzi said: “Yes of course I alerted those responsible of the privatisation but nothing resulted from the allegation.”
“I don’t meet with tenderers … others do,” Gonzi comments, prompting Bonnici to ask: “who are you referring to?” Gonzi replies: “Joe Mizzi went to Spain to meet a bidder”, prompting Zammit Lewis that a minister had traveled with bidders.
“If the PAC chose to take this road, then it should investigate everything. I was no one’s lawyer and I didn’t represent anyone from the Farrugia family. There are things which this committee has to clarify. Michael Cassar testified that he had decided to take steps against the Farrugia brothers [before the change in administration]. […] Manuel Mallia resigned as minister on 9 December 2014. A few days later Michael Cassar [now police commissioner] said that Farrugia’s brothers will be arraigned,” Gonzi replies.
The second clarification relates to the presidential pardon: “The first time a presidential pardon was mentioned was when I gave comments to the Times. I explained that on 31 January 2013, I gave comments to the media. To clarify the whole picture, I gave that comment because on 31 January, Frank Portelli posted on Facebook – picked up by Arnold Cassola on his Facebook as well – and Cassola said that Portelli was talking ‘real sense’.”
In his comments, Portelli suggested that parliament convenes and pass a Whistleblower’s Act. Gonzi explained that such an act “solves nothing” as it doesn’t apply to crime accomplices. “I told the media that calling a parliament to approve a Whistleblower’s Act would solve nothing and I said that I was ready to take all steps so that all those responsible are apprehended,” he said.
“Until 31 January, 11 days after MaltaToday broke the story, I had no information about police investigation or whom they had interrogated. I hope this clarifies matters.”
Gonzi added that he had read the testimony of the police team “and they all confirm what I have been saying in that they heard my comments from the media and the lawyers of the accused heard it as well and it was Michael Cassar who suggested to [Farrugia] to consider availing himself of a presidential pardon”.
In a third clarification, Gonzi refers to his relationship with Cathy Farrugia. Originally he had told the PAC that he had never communicated via email with Farrugia. Following the publication of emails by MaltaToday, Gonzi sought MITA’s help to access his email records. In the six years between 2006 and 2013, Gonzi received over 96,000 emails and he personally replied to over 46,000 emails.
Explaining how the four emails received from the Farrugia couple “in no way shows that I was familiar with the couple”.
“Allegations of familiarity with the Farrugia family is being done in a malicious manner and I hope that the PAC does not take subscribe to it. I hope my clarification and my refusal to meet Farrugia over a tender bursts the bubble of those who want to cast doubts. It is scandalous that only part of the contents of my email were public. I refused to meet them and this reply was not published. I have to register my disgust.”