Former Enemalta chief financial officer Pippo Pandolfino this evening told the House Public Accounts Committee that after leaving Enemalta he started working within days with Island Bunker Oils Ltd following a request by former Enemalta chairman Tancred Tabone.
Mr Tabone is one of the persons accused in connection with the oil procurement scandal.
The PAC was continuing to discuss fuel procurement in 2008-2010 following a report by the Auditor-General.
Mr Pandolfino said that at the time when he was contacted by Mr Tabone, he was already considering leaving Enemalta and this was a good move for him.
In the past, Mr Pandolfino said he worked in BOV, Air Malta, the private sector and then Enemalta from March 2004. It was his norm to keep his options open after serving four years, he said.
Mr Pandolfino confirmed that there had been major pressures in Enemalta because of manpower shortages.
He said he was not involved in any talks on the planned privatisation of the petroleum division (which did not take place) Nor was he involved in MOBC.Island Bunkers were the main client of MOBC (The Enemalta bunkering company).
He did not consider any breach of ethics in transferring from Enemalta to Island Bunker Oils Ltd in 2009. Enemalta did not sell gas oil to boats and ships, he said. It was MOBC which did bunkering, up to 2004, but he was not involved in that.
Replying to questions by Parliamentary Secretary Owen Bonnici, he said he had not known at the time of Tancred Tabone's secret involvement in IBOL while it competed with MOBC, along with Frank Sammut, Mr Portelli (of Virtu' Ferries) and others.
He confirmed that Simonne Bianchi, his sister-in-law, was personal assistant of Mr Tabone. He denied that his wife worked for Virtu' Ferries.
He lost contact with Mr Tabone when Mr Tabone was no longer Enemalta chairman after 2005 until he was contacted for the new job.
To further questions by Dr Bonnici, he said he never asked his sister-in-law about Mr Tabone's investments in 2004.
Asked whether he knew what Frank Sammut, Mr Tabone's consultant, had done after leaving Enemalta, he said that, from the newspapers, he learnt that he went to IBOL. But he did not know that personally. In 2004 he did not know where Mr Sammut went.
He also insisted that he did not know of the goings on between the directors in IBOL in 2004 including Mr Tabone and Mr Sammut including a falling out. He insisted he had joined in 2009. He did not know of any payout of half a million. That amount was equivalent to turnover every day, he said.
He also insisted that he did not know the operations of MOBC and IBOL when they were competitors in 2004.
Dr Bonnici observed that when Mr Tabone was chairman of MOBC and secret director of IBOL, MOBC ceased being a competitor of IBOL.
Mr Pandolfino said that when he joined IBOL in 2009, the company had a storage agreement with MOBC. The lease agreement started around 2003-2005.
Dr Bonnici said the lease started in 2004.
Mr Pandolfino said in 2004 he was not in MOBC or IBOL and he did not know the lease rate.
Dr Bonnici asked if the rate was hugely advantageous for IBOL - $3.5 dollars per metric tonne was the going rate for storage but Island Bunkers used to pay $2.25 dollars per metric tonne, a very advantageous rate, Dr Bonnici said.
Mr Pandolfino said he did not know. He worked for Enemalta and never had anything to do with MOBC.
He did not recall details about contract extensions and over-runs with IBOL.
Dr Bonnici and Labour MP Justyne Caruana queried how he did not remember when he was Chief Financial Officer and he left for IBOL days after one of the contract extensions.
Mr Pandolfino said he did not take the decision. He signed many contracts.
At IBOL he never asked anyone in Enemalta for an extension and that was practically automatic.
When he joined IBOL in 2009, the ultimate shareholders were Tancred Tabone, the Portelli brothers, Tony Cassar of Cassar Ship Repair and Frederick Frendo.
Mr Pandolfino said he was in regular contact with former Enemalta chairman Alex Tranter, who was a personal friend. Following the audit report, they did compare notes.
He did not have contact with minister Austin Gatt after leaving Enemalta.
He had had minimal contact with Frank Sammut while he (Mr Pandolfino) was in IPOL. He had kept him informed about discussions within the industry about a new tax imposed by the government. He did not discuss the court proceedings which Mr Sammut was facing.
EARLIER TESTIMONY
Earlier in his testimony, in reply to questions by committee chairman Jason Azzopardi, Mr Pandolfino said the fuel procurement committee on which he sat always bought from the cheapest bidder and also got discounts.
Asked whether he had ever met any agent or lobbyist for oil procurement companies, Mr Pandolfino replied in the affirmative because he would continue work to close off contracts based on decisions taken by the Committee.
He met many suppliers, both one to one as well as in the presence of others. These meetings were not regular. He never met anyone regarding pending tenders or open contracts.
He admitted to meeting (Total/Tosa representative) George Farrugia. Mr Farrugia is currently facing criminal proceedings in court over oil procurement.
Mr Pandolfino said Mr Farrugia was not a trader or a broker. Regarding prices, talks were held directly with the suppliers.
But if the supplier was not delivering or there was some operational issue, Enemalta used to go through Mr Farrugia.
His meetings were not regular. He met Mr Farrugia more regularly than other agents because he represented Totsa which was the most regular supplier.
Mr Pandolfino presented the committee a copy of his contract of service with the corporation.
He noted that it had been reported in the newspapers that his personal file had gone missing at Enemalta. He had immediately contacted the corporation and offered to hand in a copy of his contract.
Later, he said, it appeared that the file was found, although Enemalta never told him anything.
He received seasonal gifts but nothing else from Mr Farrugia. He never offered or gave me any money or gifts in an attempt to influence me.
In terms of his contract, he could receive such personal gifts.
Replying to questions about alleged corruption in oil procurement, Mr Pandolfini said that when the story broke, he was relieved to note that it happed before his time.
He said that during the time when he sat on the Oil Procurement Committee, it was very difficult for anyone to take decisions on his own.