The infamous hospitals deal has shaken Malta.
From the courts annulling the concession agreement that had seen three public hospitals passed on to be run by private companies, to criminal charges being filed against a former prime minister, there is no doubt that this period will go down in the country’s history for the wrong reasons.
The hospitals deal signed in 2015 raised many red flags from the start. The warning signs that something was wrong were there... Vitals Global Healthcare lacked hospital management experience, and yet the government decided to go ahead. The concessionaire changed in 2018 to Steward Health Care, but concerns remained.
Fast-forward a few years and the courts ruled on a case instituted by former PN Leader Adrian Delia. The court annulled the hospitals deal in February 2023 in a damning judgement that cited fraud. The decision was confirmed on appeal, in a judgement that mentioned evidence of collusion between the parties involved.
Back in 2008 when Joseph Muscat became Labour Party leader, he said he was embarking on an ‘earthquake of change’. His prediction of an earthquake came through, for different reasons.
The hospitals scandal has had an impact on multiple fronts. The top issue is, of course, getting public funds back.
The Opposition holds that over €400 million in public funds was ‘stolen’. This is no small amount. The Prime Minister had disputed this, arguing that there was money that was paid for services rendered, but will push to get back funds for investment that never materialised and for obligations that remained unfulfilled.
The government has also said that there are proceedings ongoing before the International Chamber of Commerce, but the Opposition filed a court case against the State Advocate, to push him to take the necessary legal action to recover any money owed to the state.
So much time has been wasted. In an interview with The Malta Independent on Sunday, President of the Medical Association of Malta Martin Balzan said that 11 years of investment in healthcare infrastructure had been lost. Balzan also said that with €400 million two hospitals could have been built if paired with EU funds.
The government now has come out with plans for the health sector. Health Minister Jo Etienne Abela announced a Mater Dei Hospital short, medium, and long-term action plan, which is to free up space for 600 extra beds over the next five years. Part of this plan includes using St Luke’s Hospital. He also recently unveiled a new masterplan for the Gozo general hospital.
But shouldn’t at least some of this have been done by now already?
Adrian Delia, in an interview with The Malta Independent on Sunday, said: “These are the projects that we have already paid for through our nose, correct? This is the new hospital that had to be built in Gozo with 450 beds, correct? This is the increase of more than 400 beds that we were expecting in Malta, albeit at the St Luke's site, now being proposed at Mater Dei.”
Abela himself acknowledged that the promised investment by the concessionaire in St Luke’s Hospital “was not done.”
Charges
While the Courts annulled the hospitals deal, a magisterial inquiry delving into the criminal aspects were still ongoing.
The inquiry was concluded in April and charges were soon filed.
Former Prime Minister Joseph Muscat, his former Chief of Staff Keith Schembri, former ministers Konrad Mizzi, Chris Fearne (who resigned as Deputy Prime Minister soon after the charges were issued) and Edward Scicluna, now Governor of the Central Bank are among the many facing charges. They have all denied any wrongdoing.
For the first time in the country’s history, a former Prime Minister was criminally charged in court. The news shook the country.
When news about the inquiry’s conclusion broke, Abela brought into question its timing, being so close to the MEP and local council elections. He also raised further questions about the inquiry’s process. His comments were slammed as being an attack on the judiciary. Abela also made certain comments about certain journalists, which he also received backlash.
Tensions in the country, which were already rising due to an election nearing, rose further.
Three protests took place, one organised by students in support of the judiciary, one by the Opposition, and one by a variety of organisations.
Fearne resigned from his post as Deputy Prime Minister and Minister days after the charges were issued. Calls for the resignation of Edward Scicluna from his post of Central Bank Governor were made by the Opposition and sections of society, but Scicluna kept his position.
Meanwhile, Muscat’s closest allies rallied support for the former leader in the form of a demonstration in solidarity with Muscat. It took place outside the law courts on the day Muscat was arraigned.
Following Muscat’s arraignment, Opposition Leader Bernard Grech said that people deserve better than pirate politicians. Bernard Grech has accused Abela of "acting in a very hazardous manner", while Abela has said that the inquiry is the PN’s only manifesto.
Responding to a question posed by The Malta Independent as to whether he believes that certain statements by politicians are raising tensions in the country, Abela said: "From my end for sure not. The statements I have constantly said were for everyone to remain calm and for nobody to fall for provocation. But yes there are a number of politicians from the Opposition side that are using discourse that continuously is trying to create certain tension among the people." This, despite Prime Minister Abela’s frequent use of the phrase ‘the establishment’, which he paints as those against the Labour Party.
The Police Commissioner and the Attorney General have come under the spotlight again, for not appearing to do enough. Repubblika honourary President Robert Aquilina said that they are treating the accused with kid gloves. He said that whilst other people who are accused with far less serious accusations are arrested and taken to court, the opposite is being done with Joseph Muscat and the others, who were arraigned under summons.
In court, it became very evident that this will be a long process. The army of lawyers and the sheer number of defendants in both cases meant that things progressed at a snails pace. The prosecution made a mistake which was highlighted in the first sitting of the second case, dealing with Chris Fearne and Edward Scicluna among others, where one of those accused in this case – DF Advocates – was not notified for these proceedings.
Election campaign impact
Another impact of the annulled concession is on the election campaigns. There is absolutely no doubt that this issue dominated the electoral campaign thus far.
One of the major deals carried out by Muscat’s government instantly became one of the biggest headaches for his successor, Robert Abela.
Soon after that court decision in February 2023, a survey published by MaltaToday showed support in the Labour Party plummet to an 8,500 vote gap. Abela had led the PL to a 39,000-vote win in 2022.
Since the initial shock of the judgement and its confirmation by the Court of Appeal, surveys showed the gap between the two major parties widen, but evidence of the political impact of the now annulled hospitals deal remains.
The Labour Party, according to surveys, has been unable to reach the highs it achieved in the 2022 general election, with recent surveys showing the Labour Party ahead by between 21,000 to 26,000 votes, which is still substantial. However, if the amount of votes remain as is, it might not keep all four MEP seats. In 2014, three seats went to the Labour Party and three to the Nationalist Party despite a vote gap of around 33,600 votes at the time.
The Nationalist Party has not been able to really capitalise on the reduced support for the Labour Party . The party seems unable to convince voters that it is a viable alternative. Both party leaders have been urging people to go out and vote on 8 June for their respective parties.
We will soon know the result.