Last Updated 07 | 03 | 2013 at 12:45


Mallia and Mifsud shared Farrugia's commissions

Article By: news

George Farrugia told the police that former head of Enemalta’s petroleum division, and former Qormi Mayor Alfred Mallia had requested commissions from him in the wake of an agreement between Total and Enemalta for oil storage in Malta.

Police Inspector Angelo Gafa’, testifying in court during the compilation of evidence against Alfred Mallia , held that Farrugia had told him that he did not know that Mallia used to split the commissions with Tarcisio Mifsud, the corporation’s financial officer at the time.

Mr Farrugia also told the police how in 1998 he had managed to secure the oil storage deal through Mr Mallia and he only came to know about Mifsud, when Mallia was involved in a traffic accident and was hospitalised. George Farrugia told the police that he used to receive a commission of $0.16c per ton of oil stored at the Enemalta facility and used to give part of it to Mr Mallia, in cash or by cheques issued by Powerplan Ltd.

The state witness said that Mallia told him that he passed some commission to someone else, but Farrugia never knew that it was Mifsud who was the beneficiary. Payments to Mallia, used to be made monthly but there was no agreed amount. Mallia had received $10,000 after Enemalta needed to tap into the Total stores in Malta because industrial action prevented its tankers from mooring. Enemalta had at that point bought 20,000 tons of oil from Total.

Inspector Gafa’ told the court that Mallia continued to be paid a commission for every oil procurement deal reached by Enemalta with Total which amounted to over half of the total procurement by the corporation. After Mallia was injured in a traffic accident in 2000, George Farrugia was asked by the former Qormi Mayor to speak to Tarcisio Mifsud, the corporation’s financial officer at the time. He went to his office in Marsa and realised that he (Mallia) had been sharing the commission given.  The commissions were not based only on procurement by Enemalta, but were also an incentive for Total to secure contracts. Sometimes Mallia used to show him the bids made by rival companies.

Farrugia told the police that he used to pay commissions to win the tender ‘fair and square’. This is because although he always used to be the best bidder, sometimes, even after paying commissions, he would lose the tender just the same.

Farrugia also said that once he went to give an envelope to Tarcisio Mifsud with commission money, and after Mifsud put the envelope in his pocket, he told Farrugia, that he still won’t win the tender saying “it is better you don’t because people would start to question us,” Farrugia told the police.

Inspector Gafa was giving evidence in the case of Tarcisio Mallia’s case being heard by  Magistrate Claire Stafrace Zammit. The Inspector held that both Mallia’s and Mifsud’s cases are similar. 

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