The National Audit Office (NAO) recently published its report on the hospital concession deal in Malta, shedding light on several critical issues and alleged misconduct.
Here are the key findings from the report and other news that followed:
- Konrad Mizzi’s Conduct: The report expressed grave concern over former Minister Konrad Mizzi’s failure to cooperate with the NAO investigation. The NAO deemed his lack of accountability deplorable, as he played a central role in the hospitals deal and hindered the understanding of the initial developments.
- Conflicting Accounts: Conflicting accounts were provided to the NAO regarding the early interactions between Steward Healthcare and the government during the takeover period in 2017. Former Prime Minister Joseph Muscat and his chief of staff, Keith Schembri, provided limited and curt disclosures, respectively. Mizzi failed to engage with the NAO, impeding their efforts to comprehend the lead-up to the deal.
- False Sense of Urgency: The NAO identified a “false sense of urgency” created by the government during the takeover period. Steward was given limited timeframes to complete the buyout of Vitals, the original concessionaires. The NAO expressed concerns about whether the government’s interests were duly served, emphasising the conduct of those involved in the change of control.
- Health Minister Sidelined: The report highlighted the unfortunate parallels between the government’s handling of the original concession to Vitals and the transfer of the contract to Steward. Health Minister Chris Fearne was left out of negotiations, with Mizzi taking the lead instead.
- Malta Enterprise’s Non-cooperation: Malta Enterprise, a government entity involved in coordinating certain aspects of the concession, failed to cooperate with the NAO’s probe. Despite queries, it did not respond to any requests, indicating a systemic failure.
- Mizzi Misled Cabinet: The NAO accused Konrad Mizzi of misleading the cabinet regarding a side deal with Steward Healthcare. The deal obligated the government to pay Steward €100 million if the hospital contract was annulled. Mizzi’s presentation of the deal obscured its true implications, leading to cabinet approval in August 2019.
- PM’s Remarks: Prime Minister Robert Abela maintained that the government’s handling of the concession was justified, considering the pending court case and the COVID-19 pandemic. He emphasised the government’s priority to protect people’s health, and pulling out of the contract could have resulted in a €100 million penalty.
- PN Leader’s Reaction: Opposition leader Bernard Grech highlighted that the fraud suffered by the people was more significant than initially thought. The report revealed that the €400 million given to Vitals/Steward Healthcare did not include workers’ salaries, and the transfer of the concession was deemed abusive and illegal.
- Mizzi’s Response: Konrad Mizzi refuted the NAO’s conclusion that he misled the cabinet, calling it “blatantly false” in a Facebook post. However, he provided no justification for his failure to cooperate with the NAO’s requests.
- Repubblika’s Action: NGO Repubblika filed a court application seeking the immediate arrest of several individuals, including Joseph Muscat, Chris Cardona, Konrad Mizzi, Keith Schembri, and others, in connection with the hospitals deal.
- Compensation and Rehabilitation: Health Minister Chris Fearne indicated that the government would seek compensation from Steward Health Care following the collapse of the hospitals concession. He also announced plans to rehabilitate parts of St Luke’s Hospital for medical use.
The report’s release has sparked debates and calls for further action to address the issues raised and ensure the protection of public interests.
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