The contract, worth about Lm20 million, has long been a matter of controversy after the decision to chose an Italian contractor, Inso, was hotly opposed by a Dutch consortium, Simed, and another consortium, Hospitalia. The battle pitted the Contracts Committee on one side and its Appeals Board on the other and various allegations were made both in public and more in private.

It seems that the private investigator approached people saying he had taped phone conversations which would seem to prove the allegations of corruption and involved people quite high up the government decision-making process. It would also seem this person approached both the Simed group and government. He certainly offered the information to government to the tune of Lm1 million.

Informed about this development, Prime Minister Lawrence Gonzi sent all the information in his hands to the police for it to be thoroughly investigated, Alan Camilleri, the PM’s communications person told The Malta Independent on Sunday.

The government’s information, he added, is that the allegations made had proved to be false or based on falsified evidence.