George Farrugia, one of the persons at the heart of the oil procurement commissions scandal, told the police that Ray Ferris, Chief Projects Officer at Enemalta, had requested €40,000 for help for his company to win the Petroleum Division's privatisation tender, a court was told today.
Mr Farrugia, the local agent of oil giants Total and Trafigura, had put in a bid with a Greek company for the purchase of Enemalta's petroleum division when the government announced privatisation plans
Police Inspector Angelo Gafa said that Mr Farrugia had spoken about his plans when he was interrogated by the police after being granted a presidential pardon for information about the oil scandal.
Inspector Gafa was giving evidence during the compilation of evidence against Mr Ferris, 51, who was arraigned last week.
He said that were several other bids in the privatisation process and the adjudication board chose BB Energy.
Mr Farrugia told the police that he used to liaise with the Mr Ferris who used to work in the petroleum division. Some time between 2007 and 2008 Mr Ferris offered Mr Farrugia help in the privatisation process and asked for €40,000 if Powerplan Limited - of which Mr Farrugia was CEO - won the tender. Ray Ferris also asked for four silver gifts for the board members.
Farrugia said he bought four silver plates worth €2000 each. He tried to get receipts and said they were probably bought using the Powerplan credit card.
The inspector explained that the process of privatisation started in 2005 and in the middle of 2006 Mimcol, the government holding company, drew up a list of assets. A call for expressions of interest was issued and 25 expressions were made but only 16 were valid.
All of these made it to the second round and an invitation to tender was issued. By May 2008 there were four bidders remaining, Powerplan, BB, Island Oils Holdings of the Tumas Group and Falzon Group in association with a Russian company.
The adjudication board decided that BP was the best.
Negotiations started and are currently in progress.
The police had questioned Mr Ferris and he denied any involvement in corruption. He also denied receiving a gift but later admitted to receiving three silver gifts.
He first said he told them, and then that he exchanged them for a silver tray at Azzopardi Jewellers. The tray was then seized by the police.
When questioned, the owner of Azzopardi Jewellers remembered that he had sold the tray to some head of department and then remembered that he had sold it to Ray Ferris who had also bought other items. The tray was produced in 1828 and was worth some €3,000.
Ferris released a statement to the police and denied any involvement in the corruption. He said he had left Enemalta because of restructuring and was handed a golden handshake of €64,000.
He said that he was the liaison officer between the bidders and the adjudication committee. (Chairman) Alex Tranter and Emanuel Ellul were on the board. He said he knew Mr Farrugia and met him at the offices of Johns Garage.
He told the police that Farrugia had urged him to do whatever he could for Powerplan to win the tender and promised him gifts and gifts to wheoever was involved.
Mr Ferris said he did not know what to do and decided to keep all the gifts - all silver items. He went to Azzopardi Jewellers who valued them at 2700 and he paid extra to get the silver plate instead. He denied that he requested €40,000 from Mr Farrugia.
He was interrogated again and remembered that the Alfred Camilleri, Mario Mizzi, Tranter and Ellul were also members of the adjudication board.
The adjudication board were: Alex Tranter chairman of Enemalta, Alfed Camilleri permanent secretary at the finance ministry, Ivan Falzon from the privitatsation unit, Mario Mizzi from Mimcol, and Godwin Debono from the Office of the Prime Minister.
The officer said that in a confrontation, Mr Farrugia said that the number of gifts bought could have been three and not four.
Taken to task over the valuation of the silver objects, Inspector Gafa said that Mr Farrugia did not know that Ferris kept the items for himself and so could not have lied to the police.
At the end of the sitting Mr Ferris was placed under a Bill of Indictment.