The police are expected to arraign at least two people in connection with the Enemalta oil buying scandal this morning.

Former Enemalta Chairman Tancred Tabone and petrochemist Frank Sammut were questioned in recent weeks as part of investigation. They were re-arrested yesterday and spent the night at the police headquarters in Floriana. They are now expected to be charged this morning, sources have told timesofmalta.com.

The development comes after the Finance Minister Tonio Fenech yesterday revealed that a 2011 tax fraud investigation on the company belonging to rogue oil trader George Farrugia had been initiated after documents were passed on to the ministry by the Security Services, Malta's intelligence agency.

News of the tax probe was revealed by The Sunday Times.

The company ran by Mr Farrugia, who was recently granted a Presidential Pardon to tell all on the case, allegedly under declared millions of euros in revenue between 2004 and 2010.

The police in the past weeks also questioned Tony Cassar, Chairman of Cassar Ship Repair and Francis Portelli, of Virtu Ferries.

It has been alleged that Mr Sammut received kickbacks on oil contracts awarded to Dutch commodities giant Trafigura in 2004.

Separately, the police also investigated the role of the oil storage company Island Bunker Oils as well as a chain of subsidiary companies which belong to Mr Tabone, Mr Cassar and Mr Portelli.

mmicallef@timesofmalta.com