Vitals corruption case: ‘No shortcomings’ by Fearne and Scicluna on hospitals deal, auditor tells court

“No shortcomings” were found in relation to the hospitals privatisation deal by former ministers Chris Fearne and Edward Scicluna in a national audit investigation, the auditor general testified on Monday.

Auditor General Charles Deguara was testifying in court over the investigation carried out by the NAO into the hospitals concession.

The latest report was tabled in parliament in May 2023, and covers the transfer of the hospitals concession to Steward Healthcare in 2018 and the American company’s subsequent management of the contract. The first report was published in July 2020 and the second in December 2021.

Deguara was testifying in proceedings against former Health Minister Chris Fearne and former Finance Minister Edward Scicluna, who stand criminally accused of fraud amounting to €5,000, misappropriation of public funds and having made fraudulent gains in connection to the hospitals inquiry findings. 

Testifying, Deguara stated that neither of the two were singled out for the blame in the report, instead pointing his finger towards another former minister in the Joseph Muscat cabinet – Konrad Mizzi. Mizzi, Muscat and former OPM Chief of Staff Keith Schembri face separate proceedings in connection to the deal.

"Mizzi told us that he tried to consult but we lent more belief to the fact that various health issues were not addressed. The health ministry did not feature at all," Deguara told a court on Monday.

The auditor general once again said despite the hospitals concession being a health project, the ministry and its experts were constantly side-lined during the deal.

Deguara also said “no irregularities” were found on former health ministry permanent secretary Joseph Rapa. He stated Rapa and the team of experts cooperated fully in the NAO’s investigations. Rapa is also facing charges.

He went on to say that Fearne and Scicluna’s conduct was “impeccable”, and he had no negative comment to make about either minister.

Questioned by lawyer Stefano Filletti, the auditor general said he believed that had proper due diligence been carried out by Projects Malta, the concession would have never been granted.

He concluded by saying that he believed due diligence should always be the rule when it comes to concessions of such a scale.

Deguara stated not auditing or scrutiny could be carried out on either Steward or Vitals, as they were private companies and not public entities.