George Farrugia, the man granted a presidential pardon to spill the beans on alleged corruption in oil procurement, yesterday implicated the former head of Enemalta’s petroleum division as someone who demanded kickbacks.

Taking the witness stand against Alfred Mallia, who also sat on the corporation’s oil procurement committee, Mr Farrugia claimed he demanded commissions on oil purchases in the 1990s.

Mr Mallia is pleading not guilty to corruption and trading in influence.

Mr Farrugia was at the time a managing director of a company called Powerplan Ltd, which acted as an agent for oil companies. He said the company’s relationship with Mr Mallia had started in regard to the storage of oil at Enemalta’s facilities in Ħas-Saptan.

Before 1999, Mr Farrugia had agreed with Total that he would engage in talks with Enemalta towards reaching a storage agreement.

Mr Mallia helped facilitate this deal but asked for commissions, Mr Farrugia said.

He had discussed the matter of giving commissions to Mr Mallia with his brothers, directors at Powerplan, and they had accepted.

Mr Mallia had told him he wanted half of what the Powerplan managing director was earning. Mr Farrugia said he would give him 50 cents of a dollar per ton sold.

Mr Farrugia told the court that while he told Mr Mallia he was earning $1, he was in fact getting $1.50.

At one point Mr Mallia had an accident and was confined to hospital. Mr Mallia introduced him to Tarcisio Mifsud and he told him to pay the commissions to Mr Mifsud.

Later he found out the commission was being split between them.

“I would pay the commissions to get the work,” Mr Farrugia said, adding that in hindsight the money he had paid was all for nothing because he was the person who was losing money at the end of it.

Mr Farrugia said the commissions he paid Mr Mallia and Mr Mifsud totalled about €93,000.

Asked by Mr Mallia’s lawyer Kris Balzan if he had any proof of payment, Mr Farrugia said: “It’s not like I issued an invoice,” adding that all transactions were done in cash and no receipts were ever issued.

The case continues.

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