Fate of Steward hospitals deal to be decided in October

The final decision to cancel contracts related to the privatisation of three state hospitals will be made in October.

Chief Justice Mark Chetcuti announced the date during a court hearing on Monday. Chetcuti, together with Mr Justices Giannino Caruana Demajo and Anthony Ellul, heard the final oral submissions in the appeals filed by Steward following the concession termination.

Steward Health Care Malta has appealed the judgment that annulled the hospitals concession agreement and requested a preliminary ruling by the European Court of Justice.

The American company had said in a statement that it “emphatically rejects the narrative of the judge’s findings” in cancelling the deal.

Steward said the judge’s assessment that led to the cancellation was made with “no basis in evidence”.

Government was the biggest winner – Steward  

The company’s lawyer, Joseph Camilleri, argued that the biggest winner from the decision to cancel the deal was government, pointing out how government had not appealed the judgment and requested shortening the time limit for appeal.

“The judgment suited Adrian Delia but the biggest winner was the government,” he said.

Camilleri insisted despite the concession being annulled on the alleged breach of contract, pages spoke of fraud. He also spoke of how the judgment presented “political content”, which both the government and Delia had found convenient.

He also argued the court had ignored evidence of certain work.

Steward pocketed money and raped the Maltese people – Adrian Delia

Edward DeBono, Adrian Delia’s laywer, countered by saying those involved had “pocketed the money and raped the Maltese people”.

The Nationalist MP had filed the case to get the agreement cancelled in 2018 when still Opposition leader.

The lawyer questioned why former Finance Minister Edward Scicluna, and his permanent secretary Alfred Camilleri, had approved further payments Steward despite them not doing anything.

“St Luke’s Hospital ended up as a nest for mice and a dovecote, nothing else,” he argued.

He said the Auditor General concluded the hospitals' concession was “blatantly fraudulent,” and the court considered these findings, referring to “collusion,” which raised doubts about the entire process.

In separate proceedings, Steward Healthcare itself described the concession as "fraudulent" when dealing with the Maltese courts, the lawyer said. “Steward dropped a case in February 2022, trying to block a UK judgment ordering them to pay USD$6.47 million related to the concession's acquisition.”

The lawyer questioned how they could deny fraud when they previously admitted it.

He argued that Steward knowingly entered the deal with ample awareness and financial gain.

Former Minister Konrad Mizzi signed a side deal guaranteeing Steward €100 million if the concession was struck down.

Armin Ernst, former CEO at Vitals and then at Steward, wrote to Prime Minister Robert Abela admitting the deal's fraudulent nature after the hospitals' judgment, he said.

The lawyer questioned why this chain between Vitals and Steward was not broken.

Appeal an optical illusion – State Advocate

The case, despite appearing complex, was rather straightforward, the State Advocate Chris Soler argued.

He said the appeal was an “optical illusion”, stating the company despite filing an appeal, with its own actions had extinguished it

The company, despite filing an appeal, had filed notices of termination just a few hours later.

He said Steward raised several pleas but deliberately refrained from providing evidence to support them, relying on the “€100 million clause” instead.

"They waited to capitalize on the fraudulent contracts which were subsequently cancelled by the court," stated Soler, sparking further objections from Steward's lawyer. The lawyer disagreed with the implication made by the State Advocate that the company “deliberately wanted to lose the case.”

The final judgment will be heard on October 23.