Labour MPs fear grassroots backlash if inquiry points finger at Joseph Muscat

Labour MPs are fearing the worst from the ongoing magisterial inquiry into the hospitals deal that may recommend criminal action against former leader Joseph Muscat.  

There is a growing realisation within the parliamentary group that any damning conclusions will have serious ramifications for the party and the country. 

This is the feeling that transpires from several confidential conversations MaltaToday had with Labour backbenchers and ministers over the past week. They were granted anonymity to be able to speak freely about internal matters. 

After the Appeals Court, last Monday confirmed the decision to annul the hospitals contract, the focus has now shifted to the inquiry led by Magistrate Gabriella Vella, which was initiated after Repubblika asked for it in 2019.

A backbench MP did not mince his words at the potential political damage that may result from the inquiry if the magistrate recommends criminal action. “The inquiry is the elephant in the room and to me it represents one of the biggest concerns.” 

The Appeals Court judgment is cause for concern, he said, but any damning outcome from the magisterial inquiry will have far more serious consequences. 

“Most of us understand that the inquiry’s conclusions will not only have legal implications but serious ramifications for the party and the country because it would be unprecedented to have former ministers, and possibly a former prime minister, put under criminal investigation,” he said. 

He added that although the inquiry has nothing to do with the civil case decided last week, the Chief Justice’s damning words on the government in the appeal ruling, will give the magistrate added comfort when drafting her recommendations. 

Distinct from the civil court case, the inquiry is probing whether criminal action should be taken against former Labour ministers Chris Cardona, Konrad Mizzi and Edward Scicluna in relation to the hospitals concession granted to Vitals Global Healthcare in 2015. But the inquiry is also looking into the role played by former prime minister Joseph Muscat, especially after media revelations that he received consultancy payments from overseas firms linked to Steward Health Care after he ended his political career. He denies any wrongdoing and insists all work he carried out is legitimate and documented. 

The backbencher told MaltaToday he expects the party to discuss the matter at some stage and adopt a common position on how to react to the prospective developments. 

“Going forward I expect the party to discuss the Appeals Court decision, the PN motion calling for further legal action by the government to recover any misspent money, and how it should react to the outcome of the ongoing magisterial inquiry if this points an accusing finger at former members of the executive.”

‘I hope it will not be very bad’ 

But holding a discussion now on the hypothetical outcomes of the inquiry is not something many would want at this stage. 

One minister who spoke to MaltaToday said despite the pertinent concern Labour MPs have over the inquiry, “there is a genuine difficulty to discuss something which at this stage is still a hypothesis”. 

He added: “We have no visibility of what the magistrate will decide and when. Any discussion now on what to do if Joseph Muscat is charged would automatically imply his fate has already been decided by the party.” 

The minister referred to the uncertainty that is creeping in over the timing of the magistrate’s conclusions. Indeed, if the magistrate concludes her inquiry anytime soon, any plans the government has to milk the budget to the full will be upstaged. 

“Everybody within the party feels that something will happen but none of us know when it will happen and how serious it will be… I hope it will not be very bad,” he said.

‘Dumping Muscat will hurt PL’ 

The minister said many in the party fear a backlash from the grassroots if the magistrate recommends criminal action be taken against Muscat. 

“Joseph Muscat is still very much loved and I can anticipate a scenario where our grassroots would ask why it is always Labour people who get the blame. It will not be an easy situation to handle because the party core will be up in arms,” he surmised, his voice reflecting a sense of unease. 

Abela would need to adopt a very cautious tone, the minister added, questioning whether it would even be feasible to eject Muscat from the party like had happened with Konrad Mizzi. 

“Dumping Joseph Muscat will definitely hurt the PL and I don’t think we are in a position to dump anyone, let alone a former leader. We’ve brushed aside several people over the years but there seems to be an attempt to reach out of late as evidenced by the invitation to Rosianne Cutajar to attend the general conference. But at the same time, I cannot see a situation where the party will come out defending Joseph Muscat to the hilt if he is facing criminal procedures.” 

A second Cabinet member said the political problems the inquiry will create will be more significant than the Appeals Court judgment, which he says was expected. 

“It is a hot topic and a very worrisome situation indeed,” he said. “Biċċa nkwiet tal-ostja (it’s a fuckin big problem),” the minister added in a concerned tone.

‘We have to face the music’ 

A second backbencher acknowledged the seriousness of any conclusion that would imply criminal wrongdoing by the former prime minister but insisted Muscat will have to answer for his actions. 

“I know that if the details are damning it will affect me personally on a political level, but it is what it is. We have to face the music. I don’t agree with the PN that the deal was conjured up from the start for a few individuals to benefit, but if that is the case, I have no issue with saying that they deserve to face justice,” he said. 

But a third minister who spoke to MaltaToday had a less negative outlook and insisted any formal internal discussion can only happen after the inquiry findings are known. 

“Robert Abela knows what the consequences are if the magistrate comes down hard on Joseph Muscat but we have to wait for the inquiry’s outcome before the parliamentary group takes a decision,” he said.

‘We all know what happened in 2022’ 

The minister painted a less doomsday scenario when asked whether he fears any political repercussions if the magistrate’s recommendations are damning. 

“The reality is that this question has been asked to me countless times before: the murder of Daphne Caruana Galizia is one such example. A journalist was killed, and everyone feared the political repercussions, especially after what happened in 2019. But we all know what happened in the 2022 general election. The reality is that Labour has done a lot of good things, and people will weigh the good and the bad things, and decide who to vote for after making such an exercise,” the minister said. 

Another backbencher defended Robert Abela’s actions on the hospitals deal since taking over the party reins in 2020. 

“It has to be said that Robert Abela inherited this problem. There were contracts in place and government could not simply withdraw from them. But the Appeals Court judgment, although expected, has caused shock within the party for its scathing wording towards the government,” he said. 

The magistrate is not bound by any timeframe to conclude the inquiry, which has been going on since 2019. However, within legal circles the feeling is that she may have been waiting for the Appeals Court to pronounce itself on the civil case before concluding her work. 

“Now that the Appeals Court has delivered its unequivocal judgment, I believe it is only a matter of time before the magistrate wraps up her inquiry and passes on the recommendations to the police,” the backbencher said. 

If she does close the inquiry now and her findings are leaked, the government and the Labour Party could be in for a rough ride, as will the country.