The five brothers of rogue oil trader George Farrugia have been arraigned in court for their alleged involvement in kickbacks over the procurement of oil to Enemalta.
The men are: Antonio Farrugia, 68, a mechanic from Santa Venera; Gaetano Farrugia, 65, a pensioner from Santa Venera; Raymond Farrugia, 62, a pensioner from Attard; Saviour Farrugia, 60, who said he worked for the family company, and who resides in Santa Venera and Emanuel Farrugia, 59, a dispatcher from Zebbug.
All are pleading not guilty to the charges brought against them.
The men are all directors and shareholders of John's Group and Power Plan Limited, the company through which Geroge Farrugia used to deal in the procurement of oil.
The case is being heard by Magistrate Miriam Hayman. The brothers are being charged with having known that their brother George Farrugia, had been bribing Enemalta officials to secure oil contracts.
Police Inspector Gafa said the police began investigating the case on January 30, 2013, when allegations of corruption surfaced in the media involving Frank Sammut, who was on Fuel Procurement Committee on purchase of oil from Trafigura which was allegedly paying commissions to Sammut in the form of consultancy fees and deposited in an HSBC account based in Lugano in Switzerland.
He said that during interrogations, George Farrugia told the police that his brothers knew of the commissions he was paying over the procurement of fuel through the company he co-owned with them, Power Plan Limited.
He told the police in detail how he was regularly bribing Alfred Mallia, then head of the Enemalta Petroleum Division, Tancred Tabone, then chairman of Enemalta and Frank Sammut, who was chief executive of the Mediterranean Offshore Bunkering Company.
The payments, he told police, were either in cash or else through cheques issued by Power Plan Limited. He said his brothers had counter-signed the cheques.
Mr Gafa said that in 2013, the police got arrest warrants for the five Farrugia brothers who were interrogated between March 3 and 5.
They all confirmed directorship in Power Plan limited and John's Group. All brothers except one, Emanuel, said they knew that their brother, George Farrugia, was paying kickbacks and commissions. They admitted to approving the payment of commissions "so they were not only conscious but participating in the deal," the inspector said.
Raymond Farrugia and Saviour Farrugia, he said, also admitted to signing cheques so commissions could be paid.
All brothers told the police they did not know who were the individuals who were getting paid.
On the Korando car that was given as a gift by George Farrugia to Mr Sammut, all brother said they had no knowledge of this deal, except Raymond Farrugia,who knew it was given to Mr Sammut and paid for by Power Plan Limited to the tune of some €28,000.
Inspector Gafa said George Farrugia told police that all his brothers knew of the donation but the brothers denied this.
Regarding the clock given as a gift to former Finance Minister Tonio Fenech, Raymond Farrugia said this was prepared by his wife and how it was he who told his brother Geroge Farrugia to accompany him to the minister's house to give it to him. He told police that it was worth between Lm400 and Lm500 and it was "just a gift".
The case continues tomorrow when George Farrugia is expected to testify.
Police Inspector Jonathan Ferris is prosecuting. Lawyer David Farrugia Sacco is defence counsel.