Blacklisted ‘dirty oil’ suppliers back in business despite ongoing ban

International oil trading giants Trafigura and Totsa, which in 2013 were blacklisted by the government following alleged claims of corruption and backhanders to several Enemalta officials, are back in business.

Investigations by The Shift found that through Enemed – a wholly owned government company tasked with the procurement of fuel – both blacklisted companies have entered contracts with the state entity, supplying it with heavy fuel oil (HFO) and biofuel supplies, despite the ongoing ban.

The Shift found that the ‘ban’ has been compromised in 2023 as Enemed, under the remit of Energy Minister Miriam Dalli, procured oil from both companies, despite the minister telling parliament the ban was still in place in reply to questions from PN MP Ryan Callus.

A government spokesperson admitted that Enemed awarded Trafigura and Totsa contracts last year and that Trafigura supplied HFO to Enemed.

Also, Total Energies Marketing Deutschland, a sister company of Totsa, supplied oil to Enemed during the same year “for the holding of security stocks for part of 2023.”

So far, it is unclear whether the two companies also provide oil and petroleum products through private companies. Industry sources indicated to The Shift that a Maltese-licensed bunkering company might be selling Trafigura oil in Maltese waters, possibly against local bunkering rules.

Further investigations by The Shift are still ongoing.

In 2013, Trafigura and Totsa, at the time represented by rogue oil dealer George Farrugia and his company Powerplan, were at the centre of a political storm in the dying days of the PN administration as a scandalous commissions racket involving the highest echelons of Enemalta was revealed.

This led to the arrest and prosecution of key Enemalta figures, including former chairman Tancred Tabone and Frank Sammut, then the CEO of Mediterranean Offshore Bunkering Corporation (MOBC) – an Enemalta subsidiary.

Procedures in court are still ongoing.

It was alleged that Farrugia, formerly a partner in family business John’s Group of Hamrun and subsidiary Powerplan, used to pay commissions to Enemalta officials to favour his tenders for the procurement of oil.

He was alleged to have paid €1 million in commissions over several years, and members of his family had also accused him of defrauding them.

To prosecute the Enemalta officials involved, Farrugia was given a presidential pardon to turn state witness.

The government banned further business with Trafigura and Totsa to remain in place until the end of court procedures.

The Shift is informed that the contracts signed with Totsa and Trafigura in 2023 involved transactions worth several millions.