Malta hospitals arbitration case against Steward to be decided at end 2025

Malta’s case against Steward Healthcare being heard by the International Chamber of Commerce is expected to be decided by the end of 2025.

This emerges from a counter reply filed by the State Advocate on Thursday in which he used harsh words to rebut court proceedings filed by Opposition leader Bernard Grech and Nationalist MP Adrian Delia.

Earlier this week, Grech and Delia went to court in a bid to get the government to recover millions of euros paid to Steward Healthcare despite the latter not fulfilling contractual obligations. Grech and Delia requested the case to be heard with urgency.

In the counter-reply, the State Advocate accused the Opposition leader and Delia of trying to use the Maltese courts to claim merit for something the government is already taking action on.

“The aim behind the court case is for the exponents to publicly claim that the Maltese government is trying to recover any money it may be owed thanks to their actions,” the State Advocate said, adding this was an attempt to “strategically misguide” the court and a “highly objectionable” practice.

“The government opened proceedings in front of the International Chamber of Commerce last April and the timeline indicates the case is expected to be determined by the end of 2025,” the State Advocate said.

Arbitration proceedings at the ICC are held behind closed doors and in utmost secrecy with government so far being reluctant to give any details not to prejudice the case. Steward had filed arbitration proceedings after a Maltese judge quashed the hospitals concession deal.

In his five-page counter-reply, the State Advocate accused Bernard Grech of “false testimony” in the court filing that initiated the court case proper. The State Advocate said the urgency being sought by Grech and Delia was an attempt to “score politically partisan points”.

“There is nothing urgent in this court case that is political in nature and can endanger the international arbitration process or give a strategic advantage to those government has opened proceedings against at the ICC,” the State Advocate said.

The Maltese courts have cancelled the hospitals concession granted to Steward Healthcare with the Opposition insisting the government should recover the €400 million it paid the American company.

The government has contested the overall amount being claimed by the Opposition, insisting that most of the public funds forked out for the deal went to pay wages of hospital staff and medical procedures that would have otherwise still been financed irrespective of the contract.

The government has said it will recover any money it paid that was not spent according to contractual obligations.

The State Advocate’s counter reply was signed by James D’Agostino.