‘Had my mother published, Electrogas would have gone into liquidation’ – Matthew Caruana Galizia

Tista' taqra bil- Malti.

Journalist Matthew Caruana Galizia, son of slain journalist Daphne Caruana Galizia, pointed out that had his mother published the information she had received on Electrogas, the government-chosen consortium would have gone into liquidation.

Daphne and Matthew Caruana Galizia were both working on the Electrogas leak. The son of the slain journalist outlined the scenarios which would have taken place had they published the stories and revealed that the Dubai based company 17 Black was owned by the director of Electrogas and, furthermore, that it had promised a bribe to the Energy Minister.

Publishing a copy of an email which was referred to in court on Friday during the public inquiry sitting, Caruana Galizia highlighted that the default on the €600 million loans would have triggered a collapse in the government’s credit rating, since the government was liable through the government guarantee it had issued in favour of the consortium.

Permanent Secretary to Finance Ministry testifies about the state guarantee given to Electrogas
Ministry kept out of discussion on urgent meeting it requested on Electrogas default

The chain of events would have also placed the government in default, and the country would have remained without a power station. This was due to the fact that the government would have been unable to pay off interest on its other loans, Caruana Galizia explained.

Furthermore, Electrogas would have failed the compliance test by the banks.

In view of the chain of events which would have been triggered by the investigation, Matthew Caruana Galizia asked: “What greater motive would the people involved have needed to commit murder?”

4 September 2017: BOV notifies government of Malta that Electrogas is bankrupt. It's already burned through €600,000,000…

Posted by Matthew Caruana Galizia on Friday, August 28, 2020

On Friday morning, Dr Jason Azzopardi, who is assisting the family of Daphne Caruana Galizia in the public inquiry proceedings, read out an email which the Finance Ministry received from Bank of Valletta on the 4th September 2017.

In the email, which was subsequently published by Caruana Galizia on Facebook, the bank notified the government that Electrogas was defaulting on its payments. Writing on Facebook, Caruana Galizia noted how the consortium chosen to run the gas fired power station had already burned €600,000,000 and it was not even running.

Daphne Caruana Galizia was assassinated on the 16th October 2017.

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The Security of Supply Agreement was signed on the 15th December 2017, Caruana Galizia highlighted. Once this agreement was signed, the loan to Electrogas was extended by international banks.