Former Prime Minister Lawrence Gonzi told the Public Accounts Committee today he knew pardoned oil trader George Farrugia's wife Cathy as an employee of the Mizzi Group, where he also used to work, but did not know who her husband was.

He was replying to a question by Justice Minister Owen Bonnici who asked Dr Gonzi whether he knew Mr Farrugia's wife Cathy.

Dr Gonzi said he knew her as a Mizzi employee and did not know who she was or who her husband was.

Asked about the presidential pardon, Dr Gonzi said then police commissioner John Rizzo had said this had been pivotal for the investigation as Mr Farrugia had said he would be willing to give information if he were granted a presidential pardon.

“John Rizzo came to me saying the presidential pardon would help the police in their investigation because the person concerned said he would be ready to speak if he were to be pardoned. He asked me to consider it and I said I would.”

Dr Gonzi said the pardon was given because the police – through Mr Rizzo – asked for it.

Tourism Minister Edward Zammit Lewis referred to testimony given by Mr Rizzo, indicating that it was Dr Gonzi who wanted the pardon to be issued.

Mr Rizzo had told the committee that he had received a phone call from Inspector Angelo Gafa, who had been contacted by lawyer Franco Debono on behalf of Mr Farrugia, to discuss the presidential pardon.

Dr Zammit Lewis argued that Mr Rizzo said he was not the one who suggested the presidential pardon but it was Dr Gonzi who mentioned it.

Dr Gonzi had told Times of Malta 10 days after the scandal was first mentioned in the media he was willing to consider a pardon to uncover the truth about the scandal.

Replying to other questions from Dr Bonnici, Dr Gonzi said he did not immediately realise who Mr Farrugia was when the newspaper reports came up. When the facts started coming out within a few hours he realised the newspaper was speaking about the Farrugia family. However, he never met Dr Farrugia on work related issues. He said he did not know whether Mr Farrugia met the head of his secretariat.

Dr Gonzi said that between 2004 and 2008 there had never been a cabinet discussion on any possible mismanagement in the procurement of oil.

He noted that the scandal took place at prior to when he became Prime Minister so no one could bring his attention to anything they believed could be happening.

Dr Bonnici asked Dr Gonzi whether he had been aware of reports in the international media of “alleged conflict of interest” at MOBC, an Enemalta subsidiary. Dr Gonzi confirmed the matter had been brought to his attention following a parliamentary question.

Asked who had decided to remove Tancred Tabone and appoint Alex Tranter as chairman of Enemalta, Dr Gonzi said he had given a directive to all his ministers to replace people in similar positions as change was healthy and the country was working towards reaching the Eurozone accession targets.

There had been nothing wrong with Mr Tabone's chairmanship but when Mr Tranter had been nominated, he had seen him as fresh blood with expertise.

Dr Gonzi said Mr Tranter was given direction to create a strategy to facilitate the country’s transition from vulnerability in the sector as well as dependence on oil. This vulnerability was what had led his administration to embark on talks with the EU for the interconnector.

At one point, Dr Gonzi pointed out he was worried by the committee’s line of questioning as it seemed the committee was contesting the need for the pardon.

Earlier, he read an eight-page declaration to the committee, which is investigating the Auditor General’s fuel procurement audit.

He gave an overview of events saying he had learnt of the case from the media and again denying he had previously been informed of the case by a secret service agent.

In his declaration, Dr Gonzi also went through the proceedings which led to the granting of a Presidential Pardon George Farrugia and said he did his utmost to facilitate the investigation.

The committee started questioning Dr Gonzi today. Members will continue to question him when the committee meets again.

Earlier this evening, the committee also continued questioning Superintendent Paul Vassallo. 

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