The public inquiry into the murder of journalist Daphne Caruana Galizia continues on Monday.
Today Businessmen Mark Gasan who was heavily involved in the controversial ElectroGas deal is due to testify.
In the previous sitting, Apap Bologna, an Electrogas shareholder told the court that Yorgen Fenech did not answer when queried by the Electrogas board over media reports linking him to 17 Black.
The public inquiry into the murder of journalist Daphne Caruana Galizia is tasked with, amongst other things, determining whether the State did all it could to prevent the murder from happening.
Caruana Galizia was murdered in a car bomb just outside her Bidnija home on 16 October 2017.
Three men, George Degiorgio, Alfred Degiorgio and Vince Muscat, have been charged with carrying out the assassination, while Yorgen Fenech is charged with masterminding the murder.
Melvin Theuma, who acted as a middleman between Fenech and the three killers, was granted a presidential pardon last year to tell all.
The inquiry is led by retired judge Michael Mallia and includes former chief justice Joseph Said Pullicino and Judge Abigail Lofaro.
Follow proceedings live, below:
17:02 That's it for today. Thank you for following.
17:02 On Friday 9 October, Minister Carmelo Abela will be testifying at 9:30 am.
17:01 The next sitting is on Wednesday 5 October at 2:00 pm. Culture Minister Jose Herrera and Paul Apap Bologna are expected to testify.
16:57 Joseph Said Pullicino asks about a meeting in Azerbaijan, but Gasan denies having any knowledge of it.
16:56 Gasan does not recall discussing it.
16:56 Joseph Said Pullicino goes back to the NAO report, noting it was a serious report for the Gasan company. "Can you confirm whether the conclusions were discussed during a GEM meeting?"
16:55 Gasan denies being present.
16:55 Azzopardi: "Do you recall being present for a dinner on Friday 15th February at George Fenech's residence at Portomaso, three weeks before the March 2017 election?"
16:53 Azzopardi asks Gasan about meeting former PM Joseph Muscat socially.
16:53 Gasan says he was not aware of any discussions regarding the pipeline.
16:52 The article reads: "The decision to award the LNG tender coincides with the European Union announcing on Monday that a proposed gas pipeline between Malta and Sicily has qualified, with other energy projects, for funding from a €5.85 billion ($7.95 billion) pot."
16:50 "By September 2015, delivery of the first LNG shipment is expected and the consortium should start seeing returns on its investment, he said." the article says.
16:50 Jason Azzopardi refers to another article by Daphne Caruana Galizia posted in 25 October 2013 titled: '"Speaking to International Oil Daily, Gasol Chief Operating Officer Alan Buxton said the success of the project relied on the recent landslide victory of the Labor Party, which came to power in March." - Energy Intel'
16:49 Azzopardi: "Return on investment, according to a Gasol chief operating officer, was estimated to start in 2015."
16:48 Judge Abigail Lofaro confirms that earlier he said that it wasn't until the end of the decade that they will see profit.
16:48 Azzopardi: "During previous questioning by Comodini Cachia, you remember being asked about the cut off year by when it was expected for Electrogas to start making profits. Apap-Bologna said 2023, or after the first five years."
16:47 Gasan: "But I was always informed that Socar backed them up."
16:47 Gasan can't recall reading this particular article, but says he was aware that Gasol were having financial difficulties.
16:47 Azzopardi: "Were you aware of this particular article?"
16:45 The post Jason Azzopardi is referring to is a 24 July 2015 post titled '30% shareholder in power station company is technically bankrupt'.
16:44 Azzopardi: I'm making reference to a blog post by Daphne Caruana Galizia, and this blog post refers to financial challenges suffered by Gasol.
16:44 Gasan: No
16:44 Azzopardi: "If someone had to come up to you proposing a business venture, proposing you join up with a partner which company cannot pay bills or get a bank loan. Would you go for it?"
16:42 Lawyer Jason Azzopardi starts asking Mark Gasan questions.
16:41 Comodini Cachia is asking about "The Quad Towers" project in Mriehel and how Yorgen Fenech met with Minister Michael Farrugia the day the policy changed - but Gasan did not approach Yorgen Fenech about this.
16:40 Joseph Said Pullicino asks about Gasan's presence at meetings with Joseph Muscat or Keith Schembri regarding economic matters, but Gasan says that he never met with them at meetings.
16:38 Gasan says he invited Muscat to his wedding.
16:38 She asks him to elaborate further.
16:37 Comodini Cachia asks about former Prime Minister Joseph Muscat and Gasan says they would meet casually at social events.
16:36 However, Gasan met Keith Schembri a couple of times after they won the bid.
16:35 Gasan: "I met him in April 2017 at the official launch of the plant."
16:35 Comodini Cachia: "You met Konrad Mizzi once the project was given to you?"
16:34 Gasan: "Most of the cars were leased by third parties."
16:34 Comodini Cachia asks whether Gasan helped Electrogas in any way outside of insurance, he just says that they leased a few cars but that's it.
16:33 He was only involved in the email to deal with insurance - Gasan wasn't providing this insurance.
16:33 Gasan is explaining the ERA email, saying that he was involved in the insurance committee at that point.
16:32 Gasan: "I never had meetings or negotiations with Enemalta or other organisations."
16:32 Joseph Said Pullicino: "as far as government negotiations, they were never in your hands?"
16:30 Gasan says he wasn't aware of this issue.
16:30 Therese Comodini Cachia asks how they achieved this concession: "as a concession this was decreased to 2.5million."
16:29 The email says: "as can be seen from the foregoing IPC permit requires Electrogas to provide era with a 5.5 million financial guarantee to secure guarantees to the ICC permit."
16:28 Therese Comodini Cachia is referencing another email from ERA on a permit bringing in the FSU, Gasan was not in copy in this email exchange but was involved in a follow-up to the original email.
16:28 Gasan: "Electrogas advised me Enemalta should be paying."
16:27 Gasan: "On the issue of excise tax, I think Electrogas needs to come out with their position."
16:26 Gasan is saying he didn't know the minister, Joseph Said Pullicino is asking whether he was aware of correspondence between Electrogas, Peter Grech, Victoria Buttigieg, etc. or other mechanisms to bypass parliament excise tax.
16:21 Therese: "How familiar was Electrogas with the minister?"
16:21 Comodini Cachia reads from an email sent by Gasan on the issue of the excise tax: "Should we consult Enemata over these issues, or do we skip Enemata and go straight to the minister?"
16:18 Comodini Cachia: "However, it also shows the Enemata position, where they say the excise tax is included in the tariff reference Malta's EGM is billing for the power purchase agreement sales."
16:17 Comodini Cachia reads an attachment which involves a government order on the excise tax. In this document prepared by the CFO of Electrogas, he makes the issue of excise tax. It highlights that EGM has no access to retail customers and operates in a wholesale manner.
16:14 Gasan: "I sent an email to the board saying we should sort it out as soon as possible. It cannot remain unresolved, but management told me that we should not be paying it."
16:13 Gasan: "The CFO had advised me that there was an issue with Enemalta and the position of management of Electrogas on the excise tax that it should be payable by Enemata. Enemalta said the opposite, saying it should be payed by Electrogas and the issue was unresolved."
16:13 On the topic of an excise tax, Gasan is saying that the email he had sent followed a conversation with a CFO of Electrogas.
16:10 Comodini Cachia shows Gasan a chain of email exchanges on late payments between AEKOM and Gasan.
16:03 Gasan was shocked when he discovered a breach in Electrogas documents and emails.
16:00 Gasan: "That was discussed in the initial discussions with Ray and George Fenech. We were told Yorgen Fenech would spend all his time on this project, and he wanted a personal equity himself. We liked the idea."
16:00 Comodini Cachia: "In the shareholding of Electrogas, there is GEM which is made of the three families, and a side company of Yorgen Fenech. It's a parallel shareholding, what made you agree to this?"
15:54 Gasan: "The bid involved a proposal, not a commitment. It was a wordy paper showing your financial ability."
15:54 Comodini Cachia: "How could it take six weeks to set up a bid, but six months to find a new director?"
15:53 Gasan: "This was accepted and agreed, but until you have a replacement he couldn't resign."
15:53 Comodini Cachia: "Did GEM holdings accept the resignation?"
15:52 Gasan: "By that time, it had been four or five years since the start of the process, but I felt the email was a result of a discussion with Ray Fenech."
15:51 Comodini Cachia: "When you received this resignation in May 2019, did you question whether it was about 17 Black?"
15:50 Gasan says Yorgen Fenech never admitted any wrong doing with other Electrogas directors.
15:50 The email sent by Fenech will be presented to the inquiry board.
15:49 Gasan: "This is when we were informed that Yorgen Fenech would be speaking with lawyers."
15:49 Gasan explains there were board meetings to investigate links between GEM and Electrogas with 17 Black in order discuss the way forward.
15:48 Comodoni Cachia asks Gasan to confirm whether in November, when the story of 17 Black came out, Yorgen Fenech had sent an email to all the directors refuting the claims being made in the media.
15:46 Gasan: "We were in contact with his uncle, he was concerned as well."
15:46 Comodini Cachia: "During this time, didn't you question where Yorgen Fenech was? or why he was staying away from Electrogas for such a long stretch?"
15:45 Gasan: "Yes."
15:45 Judge Joseph Said Pullicino: "There were occasions where Paul Apap Bologna was there as observer?"
15:45 Gasan: "We just felt that someone from GEM needed to be in attendance at Electrogas meetings."
15:43 Gasan admits that after 17 Black, Gasan and Apap-bologna would frequently replace Yorgen Fenech in meetings.
15:42 Gasan: "It was continuous - from late 2015/2016 onwards we obviously became more involved, so whenever Yorgen Fenech was not there I would attend as an observer."
15:42 Comodini Cachia: "When was this period when you or Apap Bologna attended board meetings instead of YF?"
15:41 Mark Gasan and Paul Apap Bologna alternated attendance in meetings when Yorgen Fenech was absent, taking his place, Gasan tells the court.
15:41 Mark Gasan and Paul Apap Bologna alternated attendance in meetings when Yorgen Fenech was absent, taking his place, Gasan tells the court.
15:39 Comodini Cachia: "He told us he didn't."
15:39 Gasan: "Yes."
15:39 Comodini Cachia: "Did Paul attend meetings in your presence?"
15:39 Gasan: "Me and Paul Apap Bologna."
15:39 Comodini Cachia: "When Yorgen Fenech was not present, did you go as his alternate?"
15:38 Gasan: "By that time all the revenue had been established. The issue was costs and how we could deliver the project with the initial estimated costs."
15:37 Comodini Cachia: "Following 2015 what was your role in Electrogas?"
15:37 Gasan: "The idea back in 2013 was that we would not be operational, just passive investors. Up to mid/late 2015 it started to become clear there were issues on the costs that would affect one, the feasibility of the project and two, the capital requirements Gasan would have to invest."
15:36 Gasan explains that the main issue with the consortium Electrogas, was to finance the cost overrun.
15:35 Gasan is confirming that it was a financial default with BOV. Therese Comodini Cachia asks about other financial difficulties.
15:34 Gasan: "Immediately."
15:34 Comodini Cachia: "When did you first know you'd be getting the 18-year supply?"
15:33 Gasan: "My understanding of why it was taking long to close was because of the negotiation on the option to have government concession if the pipeline happens."
15:33 Gasan is talking about the financial pressure felt over the guarantee and default. A conversion term agreement and supply agreement was in place.
15:29 Gasan is admitting that they wouldn't have seen profits until after 2023, in contrast to what Paul Apap Bologna said.
15:28 Gasan: "Based on initial figures returns were looking good. However, the real numbers were done after June/July 2013 once the RfP was issued. That's when we started to churn numbers and we realized the cost was substantially higher."
15:26 Comodini Cachia: "What was the expected return on those five million euro?"
15:26 Gasan: "I was informed that Gasol was being financially supported by Socar, so it was never brought to me as a concern as Socar had the financial capabilities to back themselves and Gasol."
15:25 Comodini Cachia: "According to NAO report, Electrogas informed the minister and Enemata that Gasol was facing difficulty in raising equity. Did Gasol inform you on this?"
15:25 Gasan: "There were three investors - Gasol and Socar were a single entity through a joint venture agreement."
15:24 Gasan: "Gasol and Socar were a joint venture agreement."
15:24 "Initially in the consortium, Gasol was one of the four investors," she tells Gasan.
15:23 Gasan confirms he saw the presentation at some point over the past few weeks.
15:22 The document shown to Gasan earlier was a PowerPoint presentation with slides. Comodini Cachia asks why he saw it only recently but not earlier on.
15:21 Lawyer Therese Comodini Cachia is going to ask some supplementary questions.
15:21 Gasan: "Links were being made between this project and the assassination - once that happened, it wasn't something we could fathom."
15:20 Gasan: "Probably since 17 Black."
15:20 Lofaro: "Since when?"
15:20 Gasan: "We had been wanting to see him (Yorgen Fenech) exit from Electrogas for a while."
15:19 Gasan: "The investment by Gasan was always supposed to be passive - I didn't have the time to be director. Being director involves a level of responsibility that I couldn't take on."
15:19 Judge Michael Mallia: "Why was Apap Bologna appointed instead of you?"
15:18 Gasan: "We had a lot of discussions, there was no consensus on who would replace Yorgen Fenech on the GEM board. Then in November 2019 we had a board meeting as GEM where we met up - Ray Fenech was present but Yorgen Fenech wasn't. We decided to appoint Apap Bologna."
15:15 Gasan: "I didn't have this discussion with him, and I immediately replied to everyone saying although I'm willing to help, I don't have the time to be a director."
15:15 Gasan: "At that point, Yorgen Fenech sees the minutes that were issued of the discussion of the meeting, and he circulates an email to all directors of Electrogas saying his resigning from his position and that he is appointing me instead."
15:15 Gasan: "In a meeting in May 2019, Yorgen Fenech did not turn up. We had a meeting with Ray Fenech and my father, and one thing we discussed is for Ray Fenech to meet with Yorgen Fenech to discuss his position as director."
15:12 Gasan: "Yorgen Fenech wanted to resign in May 2019."
15:12 Gasan: "That's the role of the Tumas Group to appoint someone else."
15:12 Lofaro: "You could have maybe consulted your lawyers to appoint someone new to GEM."
15:11 Gasan: "I can't see what action I could have done."
15:11 Gasan: "If Yorgen Fenech wasn't present, we couldn't have a quorum."
15:09 Lofaro: "We're talking about 12 months, surely you could have taken action."
15:09 Gasan: "During that period in 2019 up to Yorgen Fenech's arrest was a time of huge concern for us, we were trying to see what to do. I was constantly speaking with Ray Fenech."
15:07 Gasan: "I was never aware of any link."
15:07 Lofaro: "The concern was the link between 17 black and the assassination?"
15:07 Gasan: "The period I'm talking about here is 2019."
15:07 Lofaro: "All this happened after the assassination?"
15:07 Gasan: "Ray Fenech was extremely concerned - during that period Yorgen Fenech was never around."
15:05 Gasan: "That's a hard question - from what I've seen publicly it looks like the company is his and he hasn't denied it."
15:05 Judge Michael Mallia: "When did you find out Yorgen Fenech was lying?"
15:03 Gasan: "We had a board meeting towards the end of November 2019."
15:03 Lofaro: "Was this discussed at board meeting level at GEM?"
15:02 Gasan: "We were also informed that he was going to meet with lawyers to look at suing or challenging this, but that didn't happen."
15:01 Gasan: "I asked Yorgen Fenech specifically, I called him and sent him a message, but he advised me that 17 Nlack isn't his. After that it was still a huge concern. Within that two-week period in November quite a lot happened. I checked whether there were transactions between GEM and 17 Black, but there were no transactions - neither with 17 Black. There were no links with 17 Black."
15:00 Gasan: "I had received an email in 2018 from a journalist from the Daphne Project, basically informing me that Yorgen Fenech was the owner of 17 Black. They sent three questions and I replied back. I rang Yorgen Fenech asking what all this is about and that he should sort it out. I assumed it wasn't really his - at that point I assumed he would rebut it and say it wasn't his. At that point I was at shock that somehow this company was allegedly owned by Yorgen Fenech, but then two weeks later the story broke. I had assumed that within those two weeks that they cleared up that this was a misunderstanding and the company wasn't his."
14:57 Lofaro asks about 17 Black.
14:56 Gasan: "There was a concern that Nexia BT was implicated, but with respect to their role as auditor, I didn't bring it up at the board."
14:56 Lofaro: "But Nexia bt was an auditor, were you concerned? Yes or no?"
14:56 Gasan: "As far as I know there were no links to Electrogas."
14:55 Lofaro: "What was your reaction to the Panama Papers?"
14:54 Judge Lofaro is grilling Gasan on the use of Nexia BT as an auditor.
14:53 Gasan: "No."
14:53 Lofaro: "Have you ever dealt with Nexia BT or any companies owned by Brian Tonna?"
14:52 "In the conclusions of the NAO report, it states that Electrogas won the tender fairly."
14:51 Gasan: "In my opinion it wasn't favourable for Electrogas, we were charged for it."
14:51 Gasan: "The lenders of Electrogas were obviously not going to lend money to Electrogas until the state aid issue was cleared, so government had two options - either to wait until it's cleared or issue a bank guarantee."
14:50 Gasan: "From what I read, there was quite a lot of criticism levelled at government - sometimes in my opinion it was fair criticism. In my opinion, the government guarantee should never have happened because ideally the state aid would have been declared before the tender was issued. Also with the government guarantee the public idea is that it sort of benefitted Electrogas, when Electrogas ended up paying 11 million euro for the guarantee. It wasn't really a concession of Electrogas in my opinion."
14:50 Said Pullicino: "The conclusions are not very positive."
14:50 Gasan: "I read the abridged and conclusion."
14:50 Judge Jospeh Said Pullicino: "Are you aware of the NAO report issued in 2018.
14:47 Gasan is also denying any relation to KASCO or any companies relating to Keith Schembri, but says he would rather see a list of companies to make sure.
14:46 Gasan: "First time I met Mizzi was at the opening of the power station, otherwise I never spoke to Joseph Muscat."
14:46 Judge Abigail Lofaro: "Did you ever speak to Joseph Muscat about the project. Maybe through dinners or events? And what about Konrad Mizzi? "
14:43 Gasan: "After the elections and after the contract was closed in 2013, my understanding is that the agreement of Electrogas were not all closed off - it was a very complicated project and meetings with Enemalta needed to take place."
14:40 Judge Abigail Lofaro: "Did you know Fenech had connections to the Labour Party?"
14:39 "The issue were clauses with the option for government to be able to terminate the LNG agreement in the event of the gas pipeline to Sicily."
14:38 Gasan: "In 2017, the construction of the power plant was reaching its end. In August 2017, the government guarantee had expired. At that point there were a couple of options - the lenders of Electrogas were pushing Electrogas and the government to extend the government guarantee until the final construction and government agreements were concluded."
14:36 "What was your reaction when the consortium defaulted with BOV? This was an important development in the life of Electrogas," Judge Mallia asks Gasan.
14:35 Gasan: "Yes"
14:35 Judge Michael Mallia: "The negotiating element was Yorgen Fenech?"
14:34 Gasan: "No, depends what decisions. Decisions within the consortium yes, but the representative with other partners was Yorgen Fenech."
14:34 "So, you participated in decisions?" Judge Michael Mallia asks.
14:33 Gasan: "My concern was the financials."
14:32 Gasan: "The idea was that we will always be investors."
14:32 Gasan: "Basically Yorgen Fenech was extremely interested in the project, and George Fenech was excited that his son was so interested in it. We entered into the consortium with the idea that Yorgen Fenech will take the lead. "
14:31 Gasan: "When we met with George Fenech, he said Yorgen Fenech was extremely interested."
14:30 "Siemens only committed to the consortium at the eleventh hour - there was potential that the consortium would not be able to put in an expression of interest if Siemens didn't take part," he tells the court.
14:29 "What I recall during the expression of interest is that Gasan had a joint adventure agreement with SOCAR - they came in as 50% equity shareholders as a joint venture," Mark Gasan continues.
14:28 "PWC assisted in preparing the bid, but it wasn't a financial document - it was only to understand who the bidder was, if they had the potential to bid for it and the experience as well as the financials behind it," he replies.
14:26 Judge Michael Mallia asks who helped in preparing the bid for the project.
14:26 "At that point, the idea of an 18-year PPA agreement looked interesting, but the numbers at that point in terms of cost and revenue weren't available. Those only came later on after the expression of interest," he says.
14:25 "At that point in time, our share was looking to be around five million euro - we had also, as Gasan, wanted to invest in water and do other long-term investments. We sold our investment to Melita so the idea of a long-term investment appealed to us," Mark Gasan tells the court.
14:24 "As Gasan we were busy with our own operations, [..] from our side we made it clear that it would be a passive investment," Gasan says.
14:23 "When we had our second discussion, we discussed the logistics of what could potentially be required to put in a bid. It was discussed that PWC would be approached immediately, and I believe Tumas had signed a letter of engagement with PWC. The PWC would come in to look at the project to see the feasibility of it, and to assist in evaluating whether it made sense to prepare a bid," Gasan says.
14:21 The judge is showing a document to Gasan, asking whether Apap Bologna had seen the document.
14:21 "No I was not," he replies.
14:20 "We understand that Apap Bologna had approached the Opposition (at the time the Labour Party) about the deal. Were you aware?" the judges ask him.
14:20 Gasan confirms it happened before the election.
14:18 Judge stops him, confirming whether they were involved in this deal before or after the election.
14:18 Gasan says this happened prior to the General Election.
14:17 "My father attended one meeting but never took it up to the board for discussion. It was just an idea, nothing happened of it," Gasan says.
14:17 He says Fenech approached Gasan with the idea that the Labour Party has a proposal for an energy plant and that they were trying to form a Maltese consortium.
14:16 "Who is we?" the judges ask. "My father and myself," Gasan replies.
14:15 The judge is asking how Paul Apap Bologn brought him into this project. Gasan explains that they were first approached by George Fenech in 2013 (Yorgen Fenech's father).
14:14 "Paul Apap Bologna is my cousin in law," he explains.
14:13 Asked about his background in electricity, Gasan admits he has no experience in electricity - Electrogas was his first.
14:13 He came back to Malta from the United Kingdom in 2003, and started working in the property division of Gasan. Over the years he became more involved in other areas of Gasan Group.
14:12 Judges ask him about his background in business.
14:11 He will be testifying in English, he's also explaining that he has a stutter. The judges let him know that he can take his time answering.
14:09 Mark Gasan takes the witness stand.
14:08 The inquiry board is made up of retired judge Michael Mallia, chief justice emeritus Joseph Said Pullicino and Judge Abigail Lofaro. The judges emerge from their chambers.
14:03 Journalists have entered the courtroom.
14:03 Businessman Mark Gasan will be testifying today. He was heavily involved in the controversial Electrogas deal.
14:00 Good afternoon. We are waiting outside the courtroom for the public inquiry to start.