Former minister Austin Gatt yesterday testified that he had never interfered in the oil procurement process and he had never spoken to anyone in the Enemalta tendering committee.
“I learnt this lesson from [former prime minister] Eddie Fenech Adami. He used to make it a rule with everyone to never interfere in tender proceedings.”
Dr Gatt was addressing Parliament’s Public Accounts Committee in connection with its analysis of oil procurement procedures between 2008 and 2010, a time when he was the minister responsible for the corporation.
The Auditor General had published a damning report on Enemalta’s fuel procurement practices and hedging, raising serious questions about lack of record-keeping, lack of proper testing for inferior quality fuel and inexplicable decisions.
The focus of the committee’s deliberations has turned to alleged corruption in oil procurement by senior Enemalta officials.
Dr Gatt said that the Cabinet had appointed Tancred Tabone as Enemalta chairman following his recommendation. Despite Mr Tabone being his third cousin, he was recommended because he was one of the most successful businessmen in 2003, having vast administrative experience through various posts he had occupied, including as president of the Chamber of Commerce and chairman of the Water Services Corporation.
Replying to a comment that referred to the corruption and money laundering accusations being faced by Mr Tabone, Dr Gatt said: “We are all the wiser afterwards.”
Criticising the Auditor General’s choice of words in describing the direction he had given on the price to be paid for oil as “undue interference”, Dr Gatt accused the Auditor General of having wanted him to ignore a decision taken by both the Cabinet and Parliament.
A decision against uncertainty was taken to ensure stable fuel prices, he insisted, adding that Energy Minister Konrad Mizzi has made decisions on with whom hedging should be carried out.
Asked about the €2,000 donation to his campaign from rogue oil trader George Farrugia, Dr Gatt insisted that he never knew who the people behind the donations were, as they were managed by his campaign helpers.
The first time he had learned about it was when Mr Farrugia testified in court, Dr Gatt said.
He said that he later learnt that the Farrugia family had given a donation, adding that they had allowed him and his campaigners to use their hall and had offered the use of their cars during the election period.
Pressed by Justice Minister Owen Bonnici on whether he allowed every Tom, Dick and Harry to donate to his campaign, regardless of any vested interest relating to his ministerial portfolio, Dr Gatt replied in the affirmative.
“This is my method. If I don’t know who financed my campaign, I can’t be influenced by them.”
He also defended the Presidential pardon granted to Mr Farrugia, saying that the police would not have had enough evidence to prosecute without his testimony and Mr Farrugia would not have testified without the pardon.
The PAC will reconvene on July 13.