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Frank Sammut [pictured], former chief executive officer (CEO) of Mediterranean Offshore Bunkering Company Limited (MOBC), and Tancred Tabone, former chairman of Enemalta, were yesterday arraigned in court and charged with bribery and money laundering in connection with an oil procurement scandal.

Tabone, aged 60, pleaded not guilty to the charges and was released on bail despite objections from the prosecution. The bail was granted against a €3,000 deposit and a personal guarantee of €15,000.

In a separate hearing Sammut, aged 62, also pleaded not guilty and was granted bail against a deposit of €3,000 and a personal guarantee of €15,000.

Tabone and Sammut were called before the court only a week after a presidential pardon was granted to businessman George Farrugia, the local agent of commodity trading company Trafigura, in return for information about alleged corruption regarding the supply of oil products to state-owned energy company Enemalta.

Tabone was charged with having accepted bribes while Enemalta chairman between 2000 and 2005, in his name or as a director of companies Eldaren Shipping, Oarsmen Maritime, Anchor Bay Maritime and Island Oils Holding.

He was also charged with having traded in influence, showed personal interest in public procurement and adjudication of tenders, revealed confidential information and defrauded MOBC. He was also charged with misuse of public funds and falsification of official documents.

Moreover, Tabone was also charged of committing money laundering and transferring properties, assets and monies generated through criminal activity, through his involvement in Island Bunker Oils, FP Holdings, Eldaren Shipping, Oarsman Maritime, Anchor Bay Maritime, Island Oils Holdings, Stals Enterprises Ltd. and Blue Sails Holdings Ltd.

Sammut was accused of similar charges, but the period mentioned was from 2000 to 2004. During this period, he served as MOBC CEO and was appointed Enemalta consultant for one year by Tabone.

Tabone and Sammut have had all their assets frozen and were warned by the court not to approach oil trader Farrugia. Both men have also been ordered to sign in at the Sliema and Zejtun police stations respectively twice a week.

Sammut Career Summary

Sammut graduated from the University of Malta with a master's degree in Chemistry. He joined MOBC in 1988, where he was employed until 2004. During this period, he is said to have held the following positions:

1987–1990 – Member of the Board of Directors of Enemalta.

1987-1998 – Member Fuel Procurement Committee, Enemalta.

1992-1994 – Consultant to Chairman & Board of Directors of Enemalta for Petroleum and Gas Divisions.

1996-1998 - Member of the Enemalta Fuel Procurement Board.

16 August 2003 – 15 August 2004 – Consultant to Enemalta Chairman for a period of one year to 'reorganise and rationise the storage of petroleum products at Enemalta' and to 'give advice and make recommendations as necessary on the management and running of the Petroleum Division'.

Sammut's contract at MOBC was terminated on 13 July 2004 following a letter from the Chairman, which stated: "Following the decision taken by Cabinet and announced by the Hon. Minister Austin Gatt, MOBC will cease bunkering operations as being conducted at present. In view of the above, the post of CEO shall be abolished and I hereby give you notice of termination of your contract with the company."

As Sammut had a three-year contract with MOBC, he was later paid MTL 41,000 in compensation.

Image: Frank Sammut