Updated 2pm with Technoline response

Technoline will continue to provide medical supplies to the government, but the health ministry has drawn up contingency plans in case the court orders a long-term freeze on the company’s assets in the wake of the hospitals scandal.

Health Minister Jo Etienne Abela told Times of Malta that the government intends to allow its biggest supplier of medical equipment to continue operating its ongoing contracts, despite the fact the company and its representatives face criminal charges over the hospitals deal.

But the ministry has drawn up plans to continue offering medical services normally in case the court orders an extensive freeze on the company’s assets, rendering it unable to honour its contractual obligations.

“Let me assure everyone that we will continue to offer all our services, without any doubt,” said the minister, who added that the details would be ironed out by the Contracts Department.

“The patient remains my top priority, so I will make sure our services remain uninterrupted, with or without freezing orders.”

The government has, over the years, bought thousands of euros worth of medical equipment from Technoline. Once bought, the equipment is owned by the state, but the government procures consumables from Technoline and has maintenance agreements with it, and those risk being impacted by a freezing order, sources close to the government said.

Technoline Ltd is among many individuals and companies who are to be charged with some of the most serious crimes over the Vitals and Steward hospitals deal next week.

The company’s representative – businessman Ivan Vassallo – is also facing charges of major crimes, both personally and as a representative of the company.

The company was in the privileged position of managing the procurement of all medical supplies for Vitals. Vassallo bought the company months before it got that contract and the deal is suspected to have been financed by the people behind Vitals.

In the first 10 months of 2022, Technoline was handed €824,000 in direct orders from the government – more than any other company in Malta during the same period.

Arraignments of the 38 individuals and companies are expected on Tuesday and Wednesday next week, when both Vassallo and the company are slated to have a chunk of their assets frozen.

The prosecution generally asks court to issue a freezing order during the first hearing.

'Stellar reputation'

Times of Malta asked Abela whether the government felt it should blacklist Technoline from bidding for future tenders, seeing it is facing criminal charges.

“It’s not a question of blacklisting,” Abela replied. “Legal procedures must be allowed to take their course and there is the presumption of innocence.”

“It is superfluous to discuss this issue though, because there are issues of assets freezing [that we have to deal with before].”

In a statement, lawyers for Technoline said it aims to comply with its contractual obligations "as far as possible under the circumstances" and that none of its services have been interrupted.

Technoline had asked the Director of the Asset Recovery Bureau to appoint an administrator within 24 hours of being notified of the relevant court order, it added.

It said the company denies any wrongdoing and looks forward to the initiation of criminal proceedings "to be able to clear its name and ensure that its stellar reputation continues unhindered."