A damning inquiry into the hospitals deal has mobilised the Labour hardcore but could potentially be “devastating” for the party in the medium to long term, according to multiple PL sources.

Prime Minister Robert Abela’s narrative that the release of the magisterial inquiry was deliberately timed to coincide with the European elections, as well as references to a mysterious “establishment” intended to harm the government, has mobilised Labour’s hardcore vote in the past week, one month before the MEP and council elections.

But there is broad consensus that the hospitals inquiry has suddenly become Labour’s Achilles Heel, with potential embarrassing arraignments and resignations in the coming weeks. Joseph Muscat has admitted that he is likely to face criminal charges, along with former minister Konrad Mizzi and chief of staff Keith Schembri. The fact Muscat is under scrutiny has also mobilised the hardcore.

But while the last week has energised the core vote, Labour officials fear the inquiry is going to hurt the party where it comes to moderate voters.

“It is quite serious to know your former leader and ministers are going to be marched to court charged with money laundering. Just wait until the details are out. I fear a disaster,” said one official.

The criminal inquiry into the sale of three hospitals, close to five years in the making, was concluded last week, but has yet to be made public.

Two other members of cabinet fear that the details of the inquiry, whenever released, are likely to be devastating for the PL.

“Even if we win the European elections by 40,000 votes, everything will change by the summer. I really fear it’s going to be a bloodbath, because trust issues are going to come to the fore. And how many valid people in our team can we afford to lose?”

One minister said Abela is determined to put up a fight: “But who are we fighting against? Who is the enemy? The courts? The PN? One of our own? In a war like this there is going to be major collateral damage.”

Potential resignations

Abela may also have to deal with a sudden vacuum at the top of the party, if deputy prime minister Chris Fearne is charged with “lesser crimes” in connection with the hospitals scandal and steps down.

One Labour source said the news about Fearne’s potential indictment has already unofficially blown the whistle on the deputy leadership race, which was only expected to take place towards the end of the year. 

“The knives are already out,” the Labour source said.

Labour colleagues said it is a foregone conclusion that Fearne will also have to give up on his dream of becoming European Commissioner.

“Unfortunately, Fearne’s nomination will likely be rejected by the European Commission president. And even if the president turns a blind eye, the MEPs would never accept a commissioner who is undergoing any form of criminal proceedings. And we all know that the court proceedings will be very long.”

On Friday, Fearne insisted he had never broken the law or ministerial ethics and had nothing to hide.

Central Bank Governor Edward Scicluna’s future has also been cast in doubt as he too may face criminal charges in connection with the hospitals deal.

We thought we had successfully closed those chapters. Are we going to see the EU and entities like the Venice Commission scrutinising us again?

Repeated attempts for a reaction from Scicluna were in vain. However, sources said he has no intention of stepping down from the post, which could put him in conflict with the European Central Bank.

Some Labour MPs fear a return of the international backlash which has plagued the government in the last eight years, from the Panama Papers to the murder of Daphne Caruana Galizia to the FATF greylisting.

“We thought we had successfully closed those chapters. Are we going to see the EU and entities like the Venice Commission scrutinising us again? The country simply cannot afford to go down that route again.”

Another Labour source said it is becoming increasingly clear that Abela is struggling to strike a balance in his narrative when it comes to Joseph Muscat.

“Joseph remains hugely popular, but what if Joseph feels he hasn’t been protected? In reality, it’s Abela and the Labour Party which will suffer the political fallout.”

Another Labour source said information about the inquiry’s findings is only emerging in a piecemeal fashion.

“No one is sure how big it is and how many people it will impact. There is an air of anticipation.”

The source said the fallout from the inquiry could yet play out over many months and years, as it moves from the political arena into the courts.

‘Publish findings now’ – PN

As speculation about the inquiry’s findings mount, the PN has urged the government to stop playing games.

Opposition leader Bernard Grech has claimed the prime minister has access to the inquiry and is using his knowledge of it for his own political benefit.

Grech said that Abela’s words and actions made it clear that he and others already have access to the inquiry report.

“Abela is using this information to save his own skin while drowning others. I’m making a clear accusation,” Grech said.

In a statement on Saturday afternoon, the PN said the attorney general should publish the inquiry without delay.

Given that Abela and others within the government evidently have access to the inquiry, the opposition and the public was being kept at a disadvantage.

It said that it would be willing to go to court to force the matter, recalling that the attorney general’s office had already been judged to be discriminating in the government’s favour in a similar fashion back in 2019.

Back then, the attorney general was forced by a court to hand then-Opposition Leader Adrian Delia a full copy of the Egrant inquiry.