The prime minister said in court yesterday that a few days after the stabbing of his personal assistant, a man had indicated to the police commissioner that Joseph Fenech was behind the case and the latter had, in turn, informed him that Meinrad Calleja had commissioned the crime.

Testifying in Calleja's trial by jury, Eddie Fenech Adami said the police commissioner had told him he had been informed by two people they had been asked by Calleja to kill Richard Cachia Caruana.

"One of these had asked the police commissioner why he had sent for him and took off a shoe. The police commissioner understood this as a reference to Joseph Fenech known as Zeppi l-hafi," the prime minister said.

He said he had known Fenech, who was one of his "political entourage" in 1970s and 1980s and had offered to watch over his home but the rest did not consider him reliable as sometimes he did not turn up.

The prime minister said that soon after 1987 election, the Minister of Education had informed him it was suspected that drugs were being trafficked in a disco bar at the Sixth Form and the place was closed down. Fenech was running it and he had protested vociferously about it, arguing he had lost his job. After that the witness said he had lost contact with Fenech.

On learning that Fenech knew something about the case, the prime minister said he decided to try to speak to him and told his driver, Charles Borg, who also used to sleep outside his home for several years, that he wanted to speak to Zeppi.

"Months passed and one day Borg told me he had met Zeppi who wanted to speak to me because he had stopped receiving the children's allowance," the witness said. He recalled telling Borg that all Fenech had to do was to go to the social security department and if he was paying his national insurance he could continue receive the allowance.

"Borg informed me Zeppi wanted to speak to me about Cachia Caruana's case and I met him in a shed where Borg used to keep a horse.

"We were alone and he told me he had information about who committed the crime but did not want to testify."

The prime minister recalled Fenech told him that one of those who attacked his personal assistant worked part time in a Bugibba bar and the victim could go to have a drink there and identify him. But the prime minister replied it was not the way things were done and more information was needed.

"But Zeppi wanted us to identify the two without him being involved."

Two or three days later, Fenech wanted to meet again and wanted to call at the prime minister's home on May 3. "He came and told me he had been approached by Meinrad Calleja and how he was offered money or drugs to do the job but he knew Cachia Caruana and did not want to do it but had told Calleja he would find someone else to do it.

"He mentioned Charles Attard, known as iz-Zambi, from Birkirkara and Ian Farrugia, whom I did not know," the witness said.

This information was passed on to the police. Attard was known to the police but as Farrugia was unknown to them the prime minister said he requested more details from Fenech and Farrugia was subsequently identified and arrested.

"Attard did not want to give any information but said he trusted me as prime minister and wanted to give the information to me," the witness said.

He recalled he had been in Marsascala when the police commissioner phoned him and he went straight to the police commissioner's office where Attard said he "wanted to get it off his chest".

"Attard told me he had trust in me and wanted to tell me that he had stabbed Cachia Caruana. He said he had been commissioned by Fenech, who had promised them Lm15,000 but the money was never paid and he wanted to tell the truth," the prime minister said.

He recalled telling Attard he would be telling the police commissioner what he had just told him. "As I was about to leave, he told me not to send him to prison but to send him to Mount Carmel instead and I told him I had no authority to do that."

Attard then confessed with the police commissioner.

"When I asked Attard why Zeppi wanted to kill Cachia Caruana, Attard said Zeppi had told him there was a Mafia guy who was making them lose a lot of drug money.

"The killing had to be done before Christmas and Attard later learnt it was someone known as il-Majni. Zeppi had indicated to him Meinrad Calleja's house in Swieqi after Attard insisted on knowing who had commissioned the killing. Fenech had told them it was an Italian lawyer," the witness said.

He said the deputy police commissioner, Joe Cachia, told him Farrugia had admitted as there was forensic evidence in the form of a palm print.

"I spoke to Fenech again and told him the situation was serious as Attard was saying he had commissioned him, Farrugia's palm print matched and you now have to testify.

"He said there was no way he would testify and I told him that if he failed to I would take action and would advise the President to grant him a pardon to make him testify. He continued refusing and I told him I was determined to do it," the prime minister said.

He then gave details about how he discussed the matter with the Attorney General and later in Cabinet and it was agreed to grant the pardon so long as Fenech says the truth and that was what happened.

The prime minister recounted how he had been informed about a drug trafficking case involving Maurice Calleja's daughter and the events that led to Maurice Calleja's resignation as army commander.

In his letter of resignation, Maurice Calleja said he was very hurt by the "unchristian" article in The Sunday Times and decided not to turn up for the December 13 military parade.

The prime minister explained the link between the brigadier's resignation, arson attacks carried out on the anniversary of the arrest of Maurice Calleja's daughter and of the day when George Micallef had spoken to Maurice Calleja and the stabbing of his personal assistant, which took place on December 18, 1994. The brigadier's resignation had taken place on December 17 a year before.

Under cross examination, the prime minister said Fenech told him he was close to Calleja on several occasions and that he had mentioned the accused's name from the very start.

He said he thought about the pardon when he saw that the police had not managed to break Fenech in several interrogations and felt that the only way to make Fenech testify was through a pardon.

Asked about what motives he had thought could have been behind the stabbing, the witness said he and the former police commissioner, George Grech, had spent some two hours pacing up and down the corridors in hospital, awaiting news from the operating theatre, and Free Masonry, an issue at the time, was discussed as one of the possible motives behind the attempt, but no one was pin-pointed.

"It was a moment of big tension but I immediately concluded it was related to a decision taken at my office," the prime minister concluded.