George Farrugia, the man granted a presidential pardon for information on the oil procurement scandal was taken ill this morning after intense cross examination by lawyer Giannella de Marco.

He was called to testify in the case against Tancred Tabone, the former Enemalta chairman, who allegedly received commissions for oil procurement contracts.

George Farrugia

During the cross examination, Dr de Marco accused Mr Farrugia of having had a choice to make - to either admit that he had defrauded his brothers, or to tell them that he had been paying commissions to people. He chose the latter.

Replying, Mr Farrugia insisted that his brothers knew all about the payment of commissions to Tancred Tabone and his assistant Frank Sammut.

Dr de Marco asked him whether he had ever been taken to court by his brothers over the alleged fraud.

He replied they had reached an out-of-court settlement. He said he had paid his brothers €1 million not because he was admitting to any fraud, but because he wanted to avoid getting into court against his siblings. They had been expecting some €45million.

He could not say what their expectations were based on, but of that €1m, some €500,000 was to get them out of debt with a bank while the rest went for taxes and other matters.

Dr de Marco observed that Tancred Tabone, as soon as he became chairman, introduced a tendering system for oil procurement, whereas previously purchases were in the hands of one person. While Mr Farrugia was saying he paid commissions for contracts, between 2003 and 2005 only six of 16 contracts had been won by either Trafigura or Total (represented by George Farrugia). 

At times, Trafigura and Total were battling for the same contracts. Dr de Marco asked Mr Farrugia if he had declared his conflict of interest to his clients.

Mr Farrugia replied 'no'.

He said he would invoice MOBC (An Enemalta subsidiary) for consultancy fees of $1 per metric ton when his clients won a tender. He negotiated this with Mr Sammut, who would receive 50c per metric ton.

Later on he found that Mr Sammut had been sharing the payments with Mr Tabone. He had paid Mr Tabone not less than $100,000. In all, both men were paid some $300,000.

Police Inspector Jonathan Ferris asked how this case came to light once payments were limited to these two people.

GOVERNMENT OFFICIAL'S THREATS

Mr Farrugia said a 'government official' had wanted payment. He refused to pay and this person vowed to 'destroy' him and his family, which, Mr Farrugia said, he managed to do. This person, whom he refused to identify, used to phone and threaten his wife and his lawyer.

Tony Debono

At this point Dr de Marco insisted that this person should be named. The inspector also pointed out to the witness that he was under the presidential pardon and had to give information.

Mr Farrugia then identified this person as Tony Debono. He said Mr Debono had also threatened to destroy Mr Tabone.

Mr Farrugia said Mr Debono had warned him that he was in a powerful group which could get things done, but refused to be more specific. However, what he had threatened had so far come true.

Mr Debono, he said, had been employed as a consultant with John's Group, the company owned by the Farrugia family and had appointed himself chairman of the company's board.

Mr Farrugia said his brothers had hacked into his computer while he was abroad and accused him of fraud after finding he had a Swiss bank account.

At the end of the sitting Mr Farrugia felt ill, but recovered quickly.