[WATCH] Steward: Government will seek reimbursement of funds which should have been used for investment

The government will be "extremely firm" in demanding Steward Healthcare repay public funds for investments, commitments, and services that it did not carry out.

"We will prioritise national interest, and government will see that what is owed is returned," Abela stated on Sunday.

Prime Minister Robert Abela was speaking in a radio interview by ONE News journalist Trischa Falzon.

In late February the court annulled all contracts awarded to Vitals and Steward in a damning ruling suggesting 'fraudulent intent'.

The deal was originally struck in 2015, when government granted a concession for the running of three hospitals to Vitals Global Healthcare (VGH).  The hospitals’ concession had been negotiated by Konrad Mizzi, who was health minister at the time.

Under that agreement, Vitals was handed St Luke’s Hospital, Karin Grech Hospital and the Gozo General Hospital. The deal with VGH, a relatively known consortium at the time, had caused many a raised eyebrow. Less than two years after being granted the concession, Vitals sold it to Steward Healthcare together with €55 million in debts accrued by VGH, for the nominal price of €1.

The PM said funds provided by government which were intended for investment, which was never carried out by the concessioners, “must” be returned.

Abela said he will be “firm” with Steward, and government will strive to protect the national interest. He said he expects the company to file an appeal in the coming weeks.

Robert Abela distanced himself from the deal spearheaded by his predecessor, saying he had turned down requests by Steward to revise the original agreement.

“It is true that we could have done better. For the past three years I examined the deal, and it led me to the decision to reject the proposals put forward by them,” he said.

No reference was made to a MaltaToday survey published on Sunday, which showed the Labour leader sink to his lowest ever result.

Abela’s trust rating declined by almost 11 points when compared to February.

Construction: ‘Cowboy attitude will not be tolerated’

Robert Abela also spoke about proposed amendments to the construction safety law, saying contractors must be licensed.

Contractors will be required to follow a set of rules once licenced. Failure to do so may result in the contactor being fined, facing criminal charges, and potentially having their licence revoked or cancelled.

In the past, the practice was for people to buy construction machinery, hire people and start construction works. "That practice will stop."

“Contractors who demolish, excavate and build, must be licensed,” Abela said. "In this way, we ensure that everyone who works in the construction industry works seriously and with regard for others."