They want to pass 'go' and collect €100 million

I am scratching my head as I consider the kind of aggressive language of Steward Health Care International’s implied SLAPP threat, an almost deliberately egregious language asking the Maltese government to do the unthinkable and launch an “investigation” into collusion against MaltaToday journalist and editor Matthew Vella.

I cannot imagine Steward Malta’s CEO Armin Ernst as a kind of reckless or stupid man, who willingly consented to this kind of language in a letter sent to the editor by the hand of Steward’s advertising people in Malta.

SCHI, now based in Madrid, runs three Maltese state hospitals in a controversial public-private concession that could be at risk of rescission by a Maltese court. SCHI accused Matthew Vella as editor and MaltaToday of acting in collusion with a short seller – Viceroy Research – a company that is calling into question the financing model of American real estate giant Medical Properties Trust (MPT) and its ownership-cum-relationship to Steward Systems in America, and SCHI.

Naturally, all this was denied by Matthew Vella and the newspaper, and the SLAPP threat led to an avalanche of support for Vella, apart from a declaration by Prime Minister Robert Abela that it would entertain no such investigation.

But back to Ernst: surely, he knew that this request was going to be met with a very negative response, painting what is already a very unpopular company in Malta as doubly arrogant and nasty. Why did it want to make sure everybody hates Steward on the eve of an important court decision that could, potentially, spike its lucrative Malta contract?

Probably, Steward wants to build its case for what could happen if a court judgement goes Adrian Delia’s way and says that the government contract should be rescinded. Let’s apply some reverse psychology: Steward is not really interested in Malta, because at the end of a possible rescission by the Maltese courts, is a hefty €100 million penalty authored by the hand of former minister Konrad Mizzi... and if that prospect is triggered by the courts, then litigation will ensue for Steward to collect its dues, apart from alleging that that the Maltese government and others have purportedly destroyed its reputation.

They know that if Mr Justice Franco Depasquale decides in favour of a case instituted by former PN leader Adrian Delia, they run the risk of their contract rescinded and forced to pack up and leave. Jolly good, one might add. But there is always that handy side-letter that was offered to Steward on a silver plate, which means the government will have to fork out a €100 million penalty.

That was quiet a nasty behind-the-scenes obligation penned by Mizzi and former prime minister Joseph Muscat, behind the Cabinet’s back, raising so many questions about the actions of the former administration.

So if I may be allowed to speculate, every little episode that makes Steward appear like the baddies and hasten a judicial ruling against them... actually makes Steward happier. The end-game is that €100 million penalty, as Adrian Delia had told MaltaToday in 2021: “They know they have a toxic contract... so all they can do to rake in the money is to either insist with the State to pay them more millions to run the hospitals, or take the €100 million penalty,” Delia said.

Delia indeed pointed out that while he had submitted documentary evidence that Steward had not upheld the concession’s milestones, the company’s response had been weak at best. “They did not even send a representative for me to cross-examine, and their photographic evidence of works done at the hospitals did not even come with, say, a hit-list of their accomplishments... since they are not rebutting what I’d describe as robust evidence against them, I ask myself: what are they doing to save their own skin?”

As I said, Armin Ernst is not dumb. He was after all the man who ‘left’ Steward in the USA when he entered the scene through Vitals Global Healthcare, who then saved the day when Vitals packed up and left to have the concession turned over to Steward Health Care, and remained as CEO... Vitals was one big phoney front that was built to rake in the public money it was paid to run the hospitals; now, we are supposed to have been given the ‘real deal’ with Steward.

But as Armin Ernst knows, if Steward’s deal is rescinded, they will be passing GO and collect £200... unless, one assumes, the outcome of this court case is that some sort of criminal inquiry ensues over suspicions of fraud or corruption. And what would the Maltese government then do in that case? One hopes, ensures that the police investigate the authors of this hospital concession deal, including former politicians at that. Undoubtedly, it would be a serious embarrassment for the Abela administration... even if €100 million cheaper.