Former Prime Minister Lawrence Gonzi this evening vented his frustration at the line of questioning by government MPs on the Public Accounts Committee.

Dr Gonzi insisted the persistent questioning on his presumed familiarity with George Farrugia's family implied the pardon was granted because he knew the family.

"I am not stupid m'inix minn wara l-muntanji," Dr Gonzi said as he read out the email he sent Mr Farrugia and his wife Cathy in July 2008, in which he flatly refused a meeting the couple requested over a tender.

Dr Gonzi started his testimony tonight by clarifying some aspects of his previous testimony.

The Farrugias had wanted a meeting over "rumours" that not all was well with the privatisation of Enemalta's petroleum division. Mr Farrugia said his company Powerplan was one of the bidders in the process.

The former Prime Minister had replied that on a point of principle he refused to meet bidders in any tendering process and asked the couple to go to relevant authorities if they had any allegations.

Dr Gonzi said he was never a lawyer to the family, with clear reference to former home affairs minister Manuel Mallia, who was the lawyer of Mr Farrugia's brothers.

Tourism Minister Edward Zammit Lewis, a PAC member, objected to this declaration, insisting Dr Gonzi was there to testify on facts and not reach conclusions.

But Dr Gonzi was in fighting mood, responding to Justice Minister Owen Bonnici's question as to what he did with the allegation, that he did not meet tenderers like others did. Asked to whom he was referring, Dr Gonzi said that there was a minister, who recently went up to Spain. The reference was to Transport Minister Joe Mizzi.

Dr Gonzi said he referred the allegation made by Mr Farrugia to the minister responsible for privatisation at the time.

"I know who Cathy Farrugia is but I am not familiar with her because she was one of the secretaries at the Mizzi Group," Dr Gonzi said when asked about the tone of friendliness used by Ms Farrugia.

"I don't see anything strange in a wife trying to set up an appointment with me for her husband. I found nothing strange with this. But I would expect the committee to ask me about my reply in which I categorically refused to meet her and her husband."

Dr Gonzi insisted the PAC was not a court of law but a political forum. "If we are trying to adopt the ways and means of the court than I will do so but this is a political forum and I have a right to express a political comments."

Dr Bonnici said the PAC had to adopt the same lines of a court of law.

He insisted the line of questioning was necessary because during his first testimony Dr Gonzi did not recall talking to Cathy Farrugia when it later transpired there had been an exchange of emails.

The former Prime Minister said he was angry with himself that he forgot the email exchange during the first sitting. "I am angry because my reply at the time [2008] does me honour because I refused to meet Mr Farrugia and his wife over a tender."

Asked by Parliamentary Secretary Justyne Caruana about Ms Farrugia's initial email that made reference to them enjoying the holidays, which adopted a very familiar tone, Dr Gonzi insisted he knew her but was not familiar with her.

"I did not know who her husband was and that they had a company called Powerplan," Dr Gonzi said.

Privatisation of petroleum division

The former Prime Minister said he could not recall why the privatisation process of Enemalta's petroleum division was stopped,when asked by Dr Bonnici whether Mr Farrugia's allegations had any bearing.

"I don't believe the email from Mr Farrugia had anything to do with the abandonment of the privatisation process but the former finance minister would be in a better position to answer," Dr Gonzi said.

Dr Gonzi said nothing happened after Mr Farrugia's allegation because to his knowledge he never came forward with any proof.

He insisted his policy was always that politician should not investigate allegations.

The former Prime Minister appeared uncomfortable when asked about a presentation given to him by a company, Horizon Terminals Limited, that was interested in developing an oil bunkering project at Benghajsa.

Dr Bonnici recalled that in his deposition in front of the PAC Mr Farrugia said that he was involved in the project and a presentation was given to then Prime Minister Gonzi and others in October 2009.

An email exchange between Mr Farrugia and a former official in Dr Gonzi's secretariat published in Malta Today confirmed that it was Mr Farrugia who made the arrangements for the presentation to be held.

Dr Gonzi was asked why in his previous testimony had excluded meeting Mr Farrugia on any business and he replied that he took that to mean oil procurement.

He insisted the project involved investors from the Arab Gulf and the lead Maltese partners were the Hili family, particularly Beppe Hili.

"The project never took off and I was sceptical of it because it involved building a breakwater that cost millions. To my knowledge the project was not George Farrugia's but Beppe Hili's because the land in question belonged to the Hili family. I do not know what George Farrugia's connection was and I reiterate I never met with him over oil procurement."

Dr Gonzi is expected to continue testifying in the next sitting.