Mizzi testifies about VGH deal: ‘government relied on board’s recommendation’

Konrad Mizzi has sworn before a court that government had relied on the recommendation of an evaluation board before entering into its hospital privatisation deal with now-defunct Vitals Global Healthcare.

The now former minister took the witness stand on Tuesday, minutes before he announced his resignation from office, in a civil case filed by Opposition Leader Adrian Delia in which Delia is requesting the rescission of the controversial deal.

The PN leader had filed the case against Prime Minister Joseph Muscat, the Attorney General, Malta Industrial Parks and VGH, demanding that the Karin Grech, St Luke’s and Gozo hospitals be “given back to the people” because of contract violations.

In a lengthy cross-examination Mizzi, who was energy and health minister up to 2016, was asked questions about the selection process which led to the inking of the deal. He told the court that when he took over the health portfolio, he had wanted to revamp things because St Luke’s Hospital, Karin Grech and the Gozo Hospital were outdated, Mizzi explained. The government wanted to attract a “world class medical school in Gozo,” he added.

The MP was asked about a due diligence report which had been partially published by assassinated journalist Daphne Caruana Galizia, in which it was advised to stay away from the “sham company” Vitals.

Mizzi replied that government had set up an evaluation board to deal with such matters, adding that the board had concluded that the deal with VGH was to be given the green light.

Although the company may have had shortcomings, Mizzi said, they “had medical experience.”

Lawyer Jason Azzopardi, on behalf of Delia, interrupted. “They had no medical experience whatsoever. Not even to construct a wheelchair!”

Mr Justice Francesco Depasquale intervened, asking the witness whether, in effect, he had relied on the report of the evaluation committee, on which sat a member of Nexia BT, the audit company that assisted Mizzi to open his offshore company in Panama. “Yes,” Mizzi replied.

Next to testify was Dr Martin Balzan, President of the Medical Association of Malta. Balzan explained how during talks with representatives of the medical profession, the government had promised a “quantum leap” in investment in the field.

But, he said, after looking at the latest budget estimates, MAM had concluded that there was a “big question mark between what we were promised, what we were actually getting and what was being handed to the concessionaire.”

The recently inaugurated Barts Medical School was just part of the plan, Balzan said, explaining that it was not part of the hospital and does not serve patients.

The case continues.