George Farrugia, the local agents of oil company Total told the police that Alfred Mallia, former head of Enemalta’s petroleum division, 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 Mr Mallia – who stands accused of corruption - said that Mr Farrugia had told the police how he had managed, in 1998, to secure the oil storage deal through Mr Mallia.
Alfred MalliaMr Farrugia, , who has been granted a presidential pardon for information on the case, told the police that he used to receive a commission of $0.16c per ton of oil stored at the Enemalta facility and he used to give part of it to Mr Mallia, paying him in cash or by cheque issued by Powerplan Ltd.
Payments used to be made monthly but there was no agreed amount.
He said that Mr Mallia had also received $10,000 after Enemalta needed to tap into the Total stores in Malta because industrial action prevented its tankers from mooring.
During the talks before that sale, Mallia told Farrugia said he had to think of him 'and I am not alone'. He didn't know that he was referring to Enemalta Financial Officer Tarcisio Mifsud at the time. Enemalta had bought 20,000 tons of oil from Total.
Inspector Gafa’ said Mr Mallia continued to be paid a commission for every oil procurement deal reached by Enemalta with Total – which amoutned to well over half of total procurement by the corporation.
After Mr Mallia was injured in a traffic accident in the year 2000, Mr Farrugia said he was asked by Mr Mallia to speak to Tarcisio Mifsud, the corporation’s financial officer at the time.
On speaking to Mr Mifsud, he realised that he had been sharing the commission given to Mr Mallia. Henceforth, Mr Farrugia used to transfer the commission to Mr Mifsud.
Tarcisio Mifsud.The inspector said Mr Farrugia also told the police that the commissions were not based only on procurement by Enemalta, but they were also an incentive for Total to win the contracts. Sometimes Mr Mallia used to show him the bids made by rival companies.
The police inspector said that Mr Mallia initially denied receiving commissions from Mr Farrugia but when confronted by Mr Farrugia himself, he admitted, but said he never asked for them.
Later he also confirmed sharing the commissions with Mr Mifsud. He said he did not receive any more commissions after his traffic accident.
Mr Mifsud continued to deny the claims.