The Auditor General and Audit Office official Keith Farrugia said this evening that the hedging agreement between Enemalta and Azeri state-owned company Socar was for six months supply of petrol and diesel. The total notional value of the hedge was €67 million. Enemalta suffered a loss of €7 million from the deal, with the market value having been  €60m.

The explanation was given at the request of Nationalist MP Jason Azzopardi when the auditor formally presented the Public Accounts Committee with his report on recent hedging agreements by Enemalta. 

MINISTER: €67m DID NOT GO TO SOCAR

Energy Minister Konrad Mizzi in a statement to Times of Malta later explained that what the Auditor-General had referred to was the nominal value of two hedges. However the €67m did not actually go to Socar. In this instance, the actual oil procurement was made from BB Energy for unleaded petrol and Kolmar for diesel after a competitive process. 

Dr Mizzi insisted that the government had only given Enemalta directions to seek a lower hedge, saving consumers €3 million on their fuel bill. 

Follow the debate on video below. 

 

 

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