MEPs have asked the European Commission to guarantee that no funding for Malta’s planned gas pipeline ends up in the hands of criminals. 

German MEP Christian Ehler raised the issue during a European Parliament committee meeting that was voting on whether to object to a series of energy infrastructure projects that include the €400m pipeline.

The son of murdered journalist Daphne Caruana Galizia has said the project would see EU funds going to Electrogas shareholder Yorgen Fenech, who is awaiting trial for complicity in the 2017 killing. 

The committee on Industry, Energy and Research voted against an objection to some 20 projects on Wednesday, including the pipeline, which is designed to transport gas from Gela in Sicily to Delimara in Malta. 

However, in an intervention, Ehler asked the Commission to issue guarantees that taxpayers’ money does not “directly or indirectly end up in the hands of criminals”.

He said that while connecting Malta to the European Gas Network was important to end energy isolation, there were serious concerns that EU funding might be awarded to criminals.

“The Melita project is linked to the company Electrogas which is linked to the corruption case against Yorgen Fenech, who has been charged with conspiracy for the murder of Maltese journalist Daphne Caruana Galizia,” he said.

“During negotiations, we have insisted that no funds, directly or indirectly, should go to criminals, in accordance with Article 136 of the financial regulation.

“Criminals should not be rewarded with taxpayer’s money. EU governments benefitting from a derogation like Malta have to make sure that criminals do not benefit from European funds.”

Finnish Green MEP Ville Niinistö also highlighted Malta’s project due to concerns that it may ultimately end up financially benefitting Fenech, who is accused of orchestrating the murder of journalist Daphne Caruana Galizia.

Yorgen Fenech denies complicity in the murder of journalist Daphne Caruana Galizia. Photo: Mark Zammit Cordina

The objection was tabled by the Greens and the Left on environmental grounds, arguing that gas projects should not be included on the list and funding should focus on projects that support renewable energy sources.

It was rejected with 18 votes in favour and 57 against. However it may be tabled again at parliament's plenary session in February or March.

Concerns were first raised by Matthew Caruana Galizia, in December when he hit out at the EU’s plans to fund the pipeline, indirectly rewarding the person being prosecuted for his mother’s assassination.

“It is unacceptable for this pipeline project to go ahead, it will reward people accused of murder and carrying out high-level corruption”, he  said at the time.

Journalist Daphne Caruana Galizia investigated corruption.

Should the gas pipeline project go ahead, those involved in the Electrogas power station project would be on the receiving end of a multi-million euro pay-out as compensation for terminating an existing gas supply agreement.

In her reply to the discussion, Commission Deputy Director-General for Energy Mechthild Wörsdörfer said that the Commission shared these concerns and outlined how the projects would need to go through a rigorous evaluation process outlined in the regulation in order to be eligible for funding.

There were 20 gas projects on the Projects of Common Interest list, including the Malta pipeline.