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Austin Gatt’s ex right-hand man tells PAC that he only met rogue oil trader George Farrugia once

Duncan Barry Wednesday, 7 October 2015, 20:06 Last update: about 10 years ago

Shadow economy minister Claudio Grech, who was also ex PN minister Austin Gatt’s right-hand man, said that he did not serve as a member of the secretariat of the then minister during the period 2008-2013 – the period of time which was mentioned in the Auditor General’s report on Enemalta’s oil procurement process.

If one were to sift through Mr Grech’s career biography online, it states that he served as the head of secretariat of the ministry responsible for investment, ICT, infrastructure and public investments between 2003 and 2008.

Fielding questions by the Public Accounts Committee that is discussing the conclusions of an audit of Enemalta’s fuel procurement procedures by the Auditor General, Mr Grech said: “I only met rogue oil trader George Farrugia once briefly in 2012 after Mr Farrugia requested a meeting with me”.

He continued: “I met him before the oil scandal came to light.”

Asked on the nature of the meeting, he said: “The time I met Mr Farrugia was when I had decided to contest the general election but had no idea about his involvement in the oil trading sector.

“All I can remember is that he had said he had a dispute with his brothers – the directors of John’s Garage. He had requested the meeting, all I knew is that he was one of the brothers of John’s Garage but I had never met him before.

Mr Farrugia met me on the basis that he was from Hamrun – one of the localities I was contesting on, he explained.

Dr Bonnici pointed out to Mr Grech that anyone from Hamrun knew who Mr Farrugia is.

Dr Bonnici asked Mr Grech about the claim that Mr Farrugia had donated a sum of money to Dr Gatt’s campaign. Asked if he communicated with Mr Farrugia on work-related issues, he replied in the negative.

Questioned whether he had any involvement in the constituency of the minister, he said: "My role was tied to policy and technical aspects.”

Justice Minister Owen Bonnici asked Mr Grech about the fact that Dr Gatt had said that he (Mr Grech) had helped out in his (Dr Gatt’s) campaign, Mr Grech said that he did assist in Dr Gatt’s campaign.

Mr Grech explained that he only assisted in organising activities for the former minister during the election campaign.

“My involvement in 2003 was tied to electoral campaign activities,” he said.

Justice Minister Owen Bonnici asked Mr Grech how the opportunity came about to work in the secretariat of Austin Gatt. “Dr Gatt had approached me to serve in his secretariat.

“My role was similar to what is termed today as a chief of staff,” he explained.

Asked if he involved himself in the administration of entities the minister was responsible for and whether he was responsible for certain checks and balances, Mr Grech said: “My role was an extensive one due to the large portfolio Dr Gatt was responsible for.”

Since Mr Grech said that he helped in event organising, Dr Bonnici said he could not help not ask whether he would know about the fact that Valentine Hall – owned by the Farrugias - was used for an event during the electoral campaign. “At the time, in 2003, when I assisted in the campaign, the Valentine Hall was not used and even if it were used, I was not the one to coordinate the event.”

Asked if he attended an election campaign event in 2008 at Valentine Hall, he replied in the affirmative. Dr Bonnici said he found it difficult to believe that a person who coordinated election campaign events did not know who George Farrugia was.

“I am under oath and if you choose not to believe me, go ahead,” he told Dr Bonnici.

Asked about his consultancy firm Momentum, that he employed persons close to Austin Gatt, he said that there was nothing wrong employing persons you would have worked with in the past.

Should you be barred from working with past employees of yours after you would have ended your career as a minister, Mr Grech asked Dr Bonnici, after the minister grilled him on the fact that he employed such persons in his (Mr Grech's) consultancy firm.

Mr Grech denied knowing of any donations given to the minister during the electoral campaign.

He said Dr Gatt had made a testimonial for him as part of his (Mr Grech’s) electoral campaign when asked whether he kept contact with Dr Gatt.

“I don’t feel this is relevant or tied to the subject of oil procurement,” Mr Grech said.

This led to PAC chairman Jason Azzopardi to ask whether the PL MPs intended asking at least one single question on the subject of oil procurement since “you spent a good hour asking questions that had nothing to do with oil procurement process covering the period 2008-2013”.

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