Former prime minister Lawrence Gonzi had “lied” when he said he did not know a family at the centre of the oil procurement scandal, the House Public Accounts Committee heard yesterday.

Malta Today editor Saviour Balzan told the committee it was clear there had been “a certain familiarity” between the Gonzi and Farrugia families, which Dr Gonzi denies.

Oil trader George Farrugia was given a presidential pardon after he turned State witness for the investigation into the way Enemalta procured oil.

The PAC is investigating the inquiry into the procurement policy conducted by the National Audit Office. Mr Balzan yesterday said that chain emails sent from Mr Farrugia’s wife to Dr Gonzi, and their mutual involvement in a workplace for several years made it clear the two families knew each other.

Mr Balzan also argued that the previous administration should have looked into the procurement processes sooner as a number of “issues” had pointed to problems in the sector.

Mr Balzan argued a number of ‘issues’ had pointed to problems in the sector

Illustrating this point, Mr Balzan said that the Nationalist government had given a €5 million settlement to a company just a few months before the 2013 general election in relation to fuel procurement.

He was referring to Attard Services Ltd, which was awarded the settlement after it was found to have been unfairly treated during the tendering of fuel.

Mr Balzan later added that the company first made its grievance known back in 2004.

Replying to questions by PN deputy leader Beppe Fenech Adami, Mr Balzan later clarified that the company had been applying to supply aviation fuel through its principal, Shell, and not fuel used for energy production.