A court heard yesterday how former Price Club director Victor Zammit was aware that the supermarket chain’s Information Technology system had to be restructured, yet he could not account for it not being mentioned in the business plan handed to HSBC.

The case against the former company directors continued yesterday with the cross-examination of Mr Zammit. Dr Andrew Borg Cardona, as liquidator of the supermarket chain, is suing Mr Zammit and his company Biochemical Ltd, Christopher Gauci and Wallace Fino and their company 2000 Holdings Ltd.

Dr Borg Cardona is claiming that the former directors carried out wrongful and fraudulent dealings.

Dr Henri Mizzi, who appeared for Dr Borg Cardona, cross-examined Mr Zammit at yesterday’s sitting. He quoted figures showing that the company was doing badly.

Dr Mizzi questioned how the directors had been planning to finance the Lm3 million loan taken out by Price Club Holdings Ltd. He also asked about another Lm900,000 borrowed by the shareholders themselves.

Mr Zammit’s answer to each of these questions was that he had relied on the advice given by his auditors and financial experts.

In his previous testimony, Mr Zammit had declared that before he entered the business, he was aware that the supermarkets’ IT systems had to be restructured. He had claimed that this exercise could have resulted in the company registering a loss.

Dr Mizzi asked the former director why this had not been mentioned in the business projections handed to HSBC. “The projections claimed the company would make an average of Lm300,000 a year in the first three years. How do you account for this?” the lawyer asked.

Mr Zammit said that in those days he failed to question what he was being told by the experts and therefore did not look into the reason for the restructuring not being mentioned.

Prior to the beginning of the cross-examination, the former Price Club director made a short statement. He said that his role in the business was as an investor. “I had no salary or allowance but simply attended board meetings and was presented with accounts which I had no reason to question,” Mr Zammit declared.

The case continues. Mr Justice Tonio Mallia presided over the court.