PM says Steward will not make any financial gain from court judgement on hospitals deal

'Once the concession is fully terminated, I will fight to make sure they receive no compensation from it'

Photo: Partit Laburista
Photo: Partit Laburista

Prime Minister Robert Abela insisted that Steward Healthcare will not make any financial gain after a court ruled that the privatisation agreements awarded to Steward Healthcare and its concession predecessor Vitals Global Healthcare were null.

Speaking at a Labour Party activity in Ħal Għaxaq on Sunday, Abela was reacting to a court judgement that annulled the hospitals concession agreement with Steward Healthcare.

“Once the concession is fully terminated, I will fight to make sure they receive no compensation from it.”

Back in 2019, former minister Konrad Mizzi had given Steward Healthcare an “escape clause” that turns any termination of its concession into a government default.

This would mean that all debts incurred by Steward would be passed on to the government, and the American company woud still be liable for a €100 million contractual pay-out for its equity.   

MaltaToday reported on Sunday that government will not be appealing the judgement that annulled the hospitals concession agreement with the company, and a managerial team has already been assembled to take over the running of the three buildings once the case is definitely closed.

However, Steward Healthcare has intimated it wll challenge the court ruling. In a strongly-worded statement on Friday, the American company questioned the rule of law in Malta and insisted the court overreached its remit.

Abela pointed out during the activity that the legal process is not over yet. He noted a 30-day timeframe to appeal the judgement, but he specified that government will ask for this timeframe to be shortened.

Moreover, he said that if any party opts to appeal thee sentence, the government will ask for this to be heard with urgency.

“If there is no appeal, or if there is an appeal but the court upholds the sentence, the government will get back the hospitals and will be able to implement its vision for them,” he said.