Oil trader George Farrugia today told a court that he does not remember the exact amount of commission paid to former Enemalta petroleum division head Alfred Mallia.
“It’s not like I used to issue invoices or receive receipts for the commission. I used to pay in cash,” Farrugia told the court under cross-examination by Mallia’s lawyer Kris Balzan.
Last year, Farrugia received a presidential pardon in exchange for his testimony against the Enemalta officials who benefitted from the backhanders.
Farrugia and Mallia began business relationship in 1997
The partnership between the two first began in 1997 when Mallia asked Farrugia for a commission after introducing him to a company interested in doing business with oil company Total. At the time, Mallia had not yet joined Enemalta and Farrugia was acting at Total’s local agent.
Farrugia said in 1999, a local port-strike meant that only Total products were available on the local market.
“Mallia asked me to approach Total to see if they were interested in selling their product to Enemalta. Once again, he wanted a commission for this deal. He wanted half of my profits. I told him that my profit was one dollar per tonne, but in reality it was $1.50. I gave him 50c per tonne commission.”
Farrugia said Total then went on to win a subsequent tender with Enemalta “on merit,” but Mallia once again demanded a cut for the deal.
Farrugia said he only got to know that Enemalta finance manager Tarcisio Mifsud’s was also on the take when Mallia was involved in an accident and confined to hospital.
“Mallia had a stay in hospital. He put me in contact with Tarcisio Mifsud. Mifsud demanded the same commission and said he would look after Mallia. This is how I found out that Mallia was splitting the commission with Mifsud.”
Farrugia said he paid the two around Lm40, 000 (€93,000) in commission to Mallia and Mifsud. The direct payments to Mallia by Farrugia stopped after his accident.
Prosecuting officer Jonathan Ferris asked Farrugia why he used to make these payments to Mallia and Mifsud.
“Just to stay in business,” Farrugia replied.
The case continues in September.