Former finance minister Tonio Fenech did not go straight to the police when he heard allegations of bribery in the shipyard privatisation process because competing companies often try to discredit one another, a court heard yesterday.

He said he was cautious when handling “unclear” and unsubstantiated information about irregularities in the tendering process.

Mr Fenech was testifying against Mario Mizzi, former CEO of State investment arm Mimco, who is pleading not guilty to demanding a bribe for favourable treatment during the tender process in 2010.

Taking the witness stand, Mr Fenech said he had not wanted to declare the process null over something the courts could deem to be a frivolous matter.

The former government had split the shipyard into four separate entities for sale, including a designated area dealing with superyacht repair.

Mr Fenech said he learned the allegations through an anonymous letter stating that foreign competitors were being favoured over Maltese companies.

Leonard Callus, who at the time worked at the Prime Minster’s Office, had also warned him to be careful as rumours were being spread about the tender process.

He said he held back from going to the police as he did not have any proof but instead called a meeting with the privatisation unit to ask if any of its members had been approached. All members denied it.

It was only after then Opposition Leader Minister Joseph Muscat had made allegations that he had gone to the police.

Mr Fenech said the tendering process had a number of prerequisites that had to be met and he thought that unless an issue was serious enough to merit a company’s disqualification, then all bidders should have been given a chance.

It was a government policy that ministers never met bidders and any contact was done through the privatisation unit.

The case continues.