Finance Minister Tonio Fenech insists he did nothing wrong when he travelled to a football match on the private jet of businessman George Fenech. He tells Kurt Sansone the whole issue was instigated by gaming parlour operators to derail the new gaming regulations.
When did you fly with Joe Gasan?
We went to watch Arsenal play in Spain against Villa Real. We left Malta at 11 a.m. on April 7 and we came back on the morrow. By 1 p.m. I had to be back in Malta because I had a number of meetings.
Who paid the trip expenses?
George Fenech also accompanied us on the trip. There was also Joe's son, my son and my nephew. The aeroplane was George's so we paid nothing for the flight. The tickets were Joe's, which he obtained through Ford's sponsorship of the Champions League. The tickets came for free but I paid for my hotel expenses.
You also went on a second trip with George Fenech. What kind of trip was this?
George was trying to lure the company he serviced his aircraft at to come and invest in Malta. On that trip I was also accompanied by Alan Camilleri from Malta Enterprise. The company wanted to expand somewhere in the Mediterranean to start targeting the region. The invite came through Captain Xuereb not through George but being the CEO of the company he also accompanied us. We met the company in Geneva during a show.
Why did you go?
It was a business opportunity for Malta. I go abroad to meet company CEOs to encourage them to invest in Malta. If a Maltese investor found an opportunity to invest with another investor, should I not support him to create jobs in Malta? Whether I go with Air Malta or George Fenech's private jet makes no difference.
Was it official government business?
Yes it was.
Is it appropriate to conduct official government business through a privately funded trip?
Yes and I would do it again. If there is an opportunity to create jobs, why not? I will not nitpick like you are doing. This will be a very good investment and I will shortly announce it. Had I travelled with Air Malta I would not have gone because of the tight schedule I had.
When they come they will be creating jobs and servicing other jets not only George Fenech's. I am the minister responsible for investment so what is wrong with me meeting potential investors?
How many times have you travelled with Joe Gasan and George Fenech?
Only once on holiday if you want to call the football match a holiday.
The implication is that George Fenech, who operates two casinos and is bidding for the Dragonara management contract, has a direct interest in the gaming sector, which you intend regulating through a new law.
I have known for at least two months that somebody wanted to bring out this story. There are big financial interests in these gaming parlours that have mushroomed all over the country but I have a conscience and will not allow Malta to be turned into one big casino. There are some who are implying that I am doing this to further George Fenech's interests.
If it were up to me I would ban all forms of gaming because I am a committed Christian and intrinsically believe gambling is wrong. To accuse me of wanting to regulate the gaming sector rigorously to benefit George Fenech is a dirty game.
There are people out there who want to tarnish my name with this innocent story that has nothing to do with the issue at stake. I know that for many people my reputation has been ruined. The link has been made and I knew it was coming because I was warned of this by an anonymous letter that made unfounded allegations when we cracked down on the parlours. I did not heed the threatening message in the letter since I still went to Cabinet with new regulations. I did not give in to their demands to continue operating wherever and whenever they wanted.
The reality is that if it were up to the casino operators we would ban the gaming parlours outright. But I went to Cabinet with a proposed framework to allow the gaming halls to continue operating within strictly controlled parameters. I fail to see how I am supposed to be helping casinos.
Do you see nothing wrong politically in being so close to a prominent businessman?
Joe Gasan continuously sends me e-mails on a friendly basis asking me to go with him to watch football games. I never went. But this was a unique occasion because Joe had the tickets and the flight was arranged because George Fenech decided to go as well. I was not going to waste two or three days. I told him I would consider it but insisted that I would need clearance. I told the Prime Minister about the details of the trip and he told me there was nothing wrong if I went.
The first thing Joe Gasan told me was that neither he nor George would speak to me about business on the trip. And we did not. Don't I have a right to watch Arsenal play and take my son with me? Why is somebody trying to turn this into a scandal as if I want to do George any favours?
Why indeed?
I want to crack down on the gaming sector because I have a conscience, not because I want to favour George Fenech. On this I am backed by the Prime Minister and the whole parliamentary group.
I explained to the parliamentary group what I was doing and any misconceptions were ironed out. Today I can confidently claim that I have their backing because they realise that what I am doing is in the country's best interest.
The people making good money from these outlets can tarnish me as much as they want but they will not get what they want.
Have you breached political ethics by being so close to an interested party?
If I went on the trip without informing the Prime Minister I probably would have done something wrong. However, I felt that I had to be open about the matter and informed the Prime Minister about the invitation. If the Prime Minister felt the trip could have compromised my job in any way I would not have gone. The tender for the Dragonara Casino had not yet been issued.
What about the privatisation of Malta Shipyards where George Fenech through VGT was bidding for the Marsa shipbuilding facility and eventually was selected as preferred bidder?
This means that I have to stay at home. Half of the business community has tendered for the privatisation process of Malta Shipyards and I meet these people during receptions; some of them come to talk to me on unrelated matters. When they ask to talk to me about the privatisation process I refrain from doing so. It cannot be that a government minister does not meet people.
There is a difference between meeting someone at your ministry or during a reception and going on his private jet.
What difference does it make? If I met with George Fenech at the ministry and accepted to do what is being alleged, would that be OK?
You are being simplistic.
No I am not. I am being factual. It is not the first time that I have meetings at the ministry that are not on my diary because somebody would have asked for an urgent appointment. I do not keep a log of the meetings I hold. It is not as if George Fenech is a sinner. Neither would I have done anything wrong had I met him at his office. He is not a criminal.
The perception of you being so close to him has political implications.
The perception is built by the media. If you want to build it go ahead, I cannot do anything about it. My conscious is clear because all I did was go and watch a football match. I am honest but half the population would not believe me irrespective of what I say because they are politically against me. I also know there are a couple of honest people with whom I have lost credibility. There is nothing else I can do to convince them. I have nothing to hide, so much so that when a journalist phoned me on Saturday to ask me about the matter I gave him the correct information.
Do you feel you should make a ministerial statement in Parliament on the matter?
No. This is my first and last interview on the subject. I have the Prime Minister's trust.
Did you offer your resignation?
No. The Prime Minister spoke clearly on Sunday. If he feels that because of this circumstance I am not fit to continue in my job I will resign. I had cleared it with him beforehand but unfortunately in this country the minister is expected to stay in a cocoon.
Aren't the letter's allegations based on the perception that you are close to George Fenech?
I am not close to George Fenech. I have no commercial interests with the man. I do not have regular meetings with him. The reality is that it was Joe Gasan who invited me not George. God forbid I am so cheap as to be bought by a pair of football tickets.
A politician's behaviour is not only judged by whether he breaks the law or not. There is also an issue of political responsibility. Do you see nothing wrong in fomenting the perception of wrongdoing?
The fact that the trip was linked to the gaming regulations has damaged me and nothing I say will change that. If I knew at the time that we were going to crack down on the gaming parlours I would have been more careful but I had no such indication.
In your yearly ministry report in March you said that you would be presenting Cabinet with proposals to regulate the sector.
Even in the previous budgets I made such commitments. The reality is that these regulations have long been coming and Cabinet had rejected them a number of times. It is a very sensitive issue and I was wary about whether a renewed attempt to raise them in Cabinet would have been successful. We are not comfortable to see Malta being turned into Las Vegas.
Will this affect the evaluation of the Dragonara Casino bids?
The process involves a due diligence exercise and the three bidders have to satisfy a number of conditions. If the three of them qualify from the test it all boils down to who would be offering the best price. The price will be public and I will not be making the choice. People cannot expect me to change the rules so that George Fenech will be excluded from the bid. The letter tried to condition me in everything I do but I will not allow that to happen.
Are you still comfortable as a minister?
Yes. As long as I have the Prime Minister's trust I will continue in my job.