The man who was granted a presidential pardon in the oil procurement scandal this morning described in court how Alfred Mallia, former head of Enemalta’s petroleum division, used to demand commissions for oil purchase and storage contracts.

Mr Mallia is being accused of corruption.

Alfred Mallia

Taking the witness stand during the compilation of evidence, George Farrugia said he had managed Powerplan Ltd, which represented international oil company Total.  His brothers were directors.

In the 1990s  Mr Mallia had told him said that he had customers who wanted to buy products which were "small parcels" - part of shipments of 20,000 tons of oil imported to Malta. Mr Mallia would receive commissions on these purchases, but that was nothing to do with Enemalta.

However when Powerplan sought a contract from Enemalta to store oil in Malta Mr Mallia said he wanted a commission on that too. Mr Farrugia said he had spoken to his brothers who gave him the go-ahead as long as the contract was won.

During a strike in 1999 when Enemalta needed to tap into the Total storage facility in Malta, Mr Mallia approached him to see if Powerplan was interested in selling to Enemalta. Mr Mallia said that he wanted half of what was being earned. He paid him 50 cents per ton on sales.

Mr Farrugia said there had also been a tender which was won by Total because it submitted the best offer. Mr Mallia also wanted a cut of 50c. He had told him he was getting $1 per ton sold to Enemalta, although he was actually making $1.50.

Mr Farrugia recalled that at one point Mr Mallia had an accident and was hospitalised. It was at that point, during a meeting at hospital, that he introduced him to Tarcisio Mifsud - Enemalta's chief financial officer - and he told him to pay Mr Mifsud. He would henceforth split the commission  between them. (Mr Mifsud s facing separate corruption charges.)

"I used to pay so that I could work," Mr Farrugia insisted.