George Farrugia, the local agent of oil giant Total, said in court today that he was blackmailed by then Enemalta chairman Tancred Tabone into giving him commissions on oil procurement and storage contracts.
Testifying in the compilation of evidence against Frank Sammut, Mr Tabone's former consultant, Mr Farrugia said Tabone had told him to either pay up, or contracts would be given to another company. The commissions were shared between Mr Tabone and Mr Sammut.
He said that initially it was Mr Sammut who had asked him for commissions on the contracts and later he was told by Mr Tabone that if he did not pay up, he would award the contract to somebody else.
Mr Farrugia, who was granted a presidential pardon in order to reveal details of the scandal, insisted he was not a trader or broker. At the time he was CEO of Powerplan, which represented Total. Total had an oil storage agreement with Enemalta and used its facilities at Has Saptan.
He said that one day Mr Sammut told him that he could award him contracts, but he wanted to be paid the equivalent of half of his fees. Mr Farrugia said he could not take the decision on his own, and only accepted after consultation with his brothers.
"I had no option as I need orders," he said.
Mr Farrugia said he also represented Trafigura, who wanted to store, blend and re-export oil products. Tim Waters, representing the company, and himself met Mr Sammut. Mr Sammut at one time asked to speak to Mr Waters on his own. Later Mr Waters said he was disgusted by what Mr Waters told him, and his company did not work like that.
Mr Farrugia said the companies he represented would win bids for the provision of oil products because they submitted the lowest bids, in view of the storage facilities which existed in Malta itself.
However after winning its first contract, Trafigura told him that was the first and last because they were afraid of repercussions, especially if this came out on the media.
Mr Farrugia said he told Mr Sammut about this, and was told to tell Tancred Tabone. He was not aware up to that time that Mr Tabone was in this matter as well.
Mr Farrugia said most payments were in cash, but he remembered an occasion where John's Garage (owners of Powerplan) handed over a car.
Replying to questions, Mr Farrugia said he was unfairly treated by the media, and now he knew why people committed suicide.
"I am not the monster I was made out to be," he said.
"I was forced to accept this blackmail," he said with reference to Tancred Tabone.
He said that Tabone told him that the commissions used to be split between him and Sammut.
At one time Mr Farrugia said he had wanted to pay less in commissions because prices had dropped, but Tabone warned him to keep the payments unchanged or he would award contracts to somebody else.
The court today also heard evidence by Former Police Commissioner John Rizzo against Alfred Mallia in relation to the case.
Mr Rizzo spoke about the police investigation and how Dr Franco Debono, representing Mr Farrugia, had asked for a presidential pardon for information. Mr Rizzo said he spoke to the prime minister and the drafting of the pardon conditions were made with the Attorney General.
The pardon was then accepted by Mr Farrugia with all the listed conditions. Mr Farrugia during police questioning had then revealed that Mr Mallia had asked him for commissions on contracts for oil procurement and storage. Mr Mallia would share these commission with somebody else.
Mr Mallia was interrogated and a confrontation was held with Mr Farrugia.
Mr Rizzo said he had the impression that Mr Mallia cooperated with the police and admitted to the allegations made by Mr Farrugia.