Former Minister Austin Gatt, testifying before the Public Accounts Committee last night, said he never interfered in the oil procurement procedure, and never spoke to anyone on the tendering committee

He was testifying over oil procurement procedures between 2008 and 2010. The Enemalta Corporation fell beneath his Ministry during this period.

The Committee has been analysing an Auditor General's report which found serious shortcomings in procedures used.

He explained that in 2009, he had issued a Directive that reflected a Cabinet Decision on the price regarding the purchase of oil for 2010, adding that the budget was approved by Parliament. This was the basis for the new tariffs in 2010". He said that this was his right by law.

The decision by government, which the directive was based on, was for certainty over uncertainty, he said. "I don't think the Auditor should go into it as it was policy. We chose certainty over uncertainty. The current Minister gave a similar decision for oil and fuels as well. The current Minister seems to have taken the decision himself as well as with whom to hedge, unlike the previous government, he said, explaining that it had gone through Cabinet and Parliament.

The Auditor also commented that no policy existed on how to buy oil by Enemalta. "There was a policy and procedures were in place, however until that time they were not documented. This does not mean someone had the right to do what they wanted", he said

"Since the beginning of Enemalta, there had never been any written procedures on how Enemalta should purchase oil".

The former Minister argued that he introduced principles that allowed for better governance and accountability. "I had created the code of ethics for the directors. I had asked for fundamental changes to Enemalta laws and introduced good governance measures. I had separated the functions of the CEO and the Chairman, I had insisted for a professional CEO and professional management. I had made Enemalta prepare management accounts to an international standard".

He declared that had he known of any payment for tenders, he would have immediately informed the Police. He said that the first time he heard of the scandal was through the press just prior to the 2013 General Election. He confirmed what Inspector Gafa said, that he always refused to speak about tenders with everyone, including with George Farrugia, and that his Secretariat had the same orders.

Dr Gatt also defended donations by the Farrugia Family, explaining that "like every candidate, there are those who worked for me who handled the finances, the campaign management etc. Yes I know the Farrugia family had allowed us to use their hall at one point for receptions and probably, during the election we used some of their cars. He used to allow candidates to use their cars, regardless of party".

My people used to take care of the donations

He stressed that he was not sure which Farrugia family members donated, adding that they were still together at the time. "My people used to take care of the donations," he said.

He stressed that this method helped, as "If I do not know who gave a donation, how can I ever be influenced in one Ministry or another by these people".

He said that at the time he didn't know that the Farrugia family donated as he never intervened in the financing. He argued that he had asked around after this whole thing came to light and found out that they had given these donations.

In turn, Justice Minister Owen Bonnici questioned how he could not know who was helping him out, stating that he knows those who help out in his election campaigns.

Dr Gatt now works for the brother of Beppe Hili.

Minister Edward Zammit Lewis quoted George Farrugia, who said that Austin Gatt had told him Tancred Tabone would be Chairman before the official appointment was made. In response, Dr Gatt said that if it was approved by Cabinet, it would be fine.

Dr Gatt also said Tancred Tabone is his third cousin adding that Cabinet appointed him, however he had suggested him. He said that Mr Tabone was one of the most successful businessmen at the time, and that he was previously President of the Chamber of Commerce, Chairman of the Waterservices Corporation etc.

Asked by Minister Zammit Lewis about a €2000 donation by Mr Farrugia, Dr Gatt said that anyone could have given donations to his campaign. 

Dr Gatt was asked how he arrived at 2008, which he said was when the donation was given. Minister Zammit Lewis pressured him on this, and he said that in 2003 “The Farrugia’s did not vote Austin Gatt”. Dr Gatt stressed that everyone in Hamrun knew the Farrugia family, however in 2003 “they did not vote Austin Gatt"

Turning to George Farrugia's Presidential pardon, he explained that without Farrugia's testimony there would not have been enough evidence to prosecute. He would not comment on whether he agreed with the pardon, adding that it is up to the Courts to decide.

He explained that the Cabinet's presentation had convinced him of the need for the pardon. He said it was a collective decision and that the Attorney General and the Police Commissioner were present.

Dr Gatt had spoken to the police, however was never investigated or suspected. "I had given all the information they asked" he said, which was a declaration to help the police before the Cabinet meeting that gave George Farrugia his pardon. The questions by the police surrounded Tancred Tabone and Frank Sammut, regarding their roles and how they entered Enemalta. He said it was more about their background.

Asked if he knew of the Farrugia brothers and their work within the energy sphere, he said that it was well known the Farrugia brothers represented players within the oil sphere.  

As for Frank Sammut, Dr Gatt said he knew that he worked in the MOBC for quite a while, however he does not know him personally. "When Tancred Tabone was made Enemalta Chairman, there was a problem with the fuels stocktake which never made sense". He said there was a recurrent problem with these stocks. "Mr Tabone then suggested hiring Frank Sammut as a consultant on this as he was working on this kind of thing in the MOBC for many years". "In his contract, he was hired specifically for one year to reorganise the stock-taking exercises at Enemalta".

Turning to the Island Bunker Oils Limited, Dr Gatt said he did not have any information about it. He argued that he was never able to stop anyone from leaving the public sector to jin the private sector. This was in response to Committee members stating that foreign press had reported Frank Sammut to be leaving the MOBC, also reporting suspicions that Mr Sammut was close to IBOL.

Dr Gatt will continue testifying on July 13.