A court ruled on Wednesday there is enough evidence for Chris Fearne, Edward Scicluna and 12 others to face trial in connection with the hospitals' scandal.
A Magistrates’ Court decreed that the former deputy prime minister, the Central Bank governor and other individuals have a case to answer over their alleged involvement in the fraudulent Vitals deal.
Four sessions had been allotted for the hearing of numerous witnesses requested by the defence before Wednesday's decision.
It took Magistrate Leonard Caruana just a couple of minutes to read his decree to a stunned courtroom, a decision which is expected to have political and legal ramifications.
The decision has probably all but ended Fearne's hopes to be nominated as Malta's representative to the European Commission, leaving Robert Abela with a potential dilemma.
Malta’s political sphere has been rocked since the conclusion of the Vitals inquiry in May, which saw former prime minister Joseph Muscat and his former associates also charged with more serious crimes.
Days after prosecutors filed charges against him, Fearne resigned as deputy prime minister and minister and withdrew his nomination as Malta's nominee to the next EU Commission.
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Scicluna, Mizzi should resign from public posts: Grech
11.45am
Taking to Facebook, PN leader Bernard Grech urged Scicluna and Mizzi to "immediately" resign from their public posts.
"Robert Abela has no other choice but to ensure that Edward Scicluna, Ronald Mizzi and all those facing accusations no longer occupy public roles.
"He has already allowed Malta's name to be heavily damaged because he had no courage to safeguard the country's interests. With every passing day, Abela confirms that he was, and still is, complicit in the biggest fraud ever committed in our country," Grech added.
ADPD: PM, Archbishop should urge resignation of accused
11.15am Soon after the court's decision was made public, ADPD said that whoever - of those facing charges - had not yet resigned from their public roles, should be made to resign.
The Green party said it was primarily referring to Sciculna and others who occupied senior public roles.
"The Prime Minister should immediately suspend them. This also applies to Archbishop Charles Scicluna, who should immediately revoke the appointment of Alfred Camilleri as a Curia financial advisor," the party said in a statement.
'Abela's pressure didn't work'
11.10am Reacting to the sentence, Opposition spokesman Karol Aquilina said the judicial system had not succumbed to Robert Abela's pressure.
He said the court is clearly saying that Labour politicians should face jury over serious crimes in which millions in taxpayers' money was stolen.
Fearne to issue statement
10.35am Fearne did not answer any questions from the media gathered outside the court. He only said he will issue a statement shortly after he reads the court's decision in detail.
Next sitting in August
10.20am Magistrate says the next hearing will take place in August. He urges the prosecution to keep up the pace in these proceedings.
Defendants to face trial
10.12am Magistrate rules there are enough grounds for all defendants to face trial on indictment.
There is stunned silence in the court room.
Series of conditions imposed
10.07am The court imposes a series of conditions. Every defendant is to indicate his mobile number and email. They need to inform the court of any change of number or email and there is a personal guarantee of €10,000 for each to ensure they abide by all conditions.
Freezing orders upheld
10.05am The court upheld a €20 million freezing order in respect of Kevin Deguara and Jean Carl Farrugia. Where it comes to Kenneth Deguara, Deborah Anne Chappell and DF Advocates, the court revoked the existing attachment order and issued a temporary seize and freeze pending any appeal by the Attorney General.
Packed hall
10.04am The rest of the accused are all filing in now. And we have a very tangible space problem because today we’re not in Hall 22, the biggest chamber since that has been reserved for a trial by jury of another big case. We’re in hall 20, rather big but not ample space for seating.
Magistrate apologises about this and says “we have to work with what we have.”
There's perfect silence save for tapping of keyboard by the magistrate’s deputy registrar.
Wasay Bhatti also has a case to answer
10.02am The same conditions have just been imposed on Wasay Bhatti in his personal capacity and as representative of Accutor and Spring Healthcare Services AG. The court also decreed that Bhatti has a case to answer. In Bhatti’s case the court also upheld the prosecution’s request for a freezing order.
Bhatti stands accused both in his personal capacity and as a representative of Accutor AG and Spring Healthcare Services AG, two Swiss companies believed to have been used by the hospital concessionaires as part of a political slush fund.
Prosecutors say the Pakistani lawyer helped facilitate bribery payments to former prime minister Joseph Muscat, former minister Konrad Mizzi and former OPM chief of staff Keith Schembri.
They say he also aided Shaukat Ali and his suspected Vitals frontman, Sri Ram Tumuluri, to trade in influence.
Musarella to face trial - and there are strict conditions
10am Magistrate Leonard Caruana has just decreed that there are sufficient reasons for Musarella in his personal capacity and representing Taomac Ltd and MTrace Ltd and Taomac Ltd too to face trial on indictment.
The court also imposed a series of conditions as to how the case is to proceed. The defendant cannot comment publicly about anything related to the proceedings. He is to give his mobile number and email to the prosecution and make sure to take calls throughout the day or reply to any calls or emails from the prosecution.
He is to attend every court hearing. And to make sure he observes all conditions, the court imposed a personal guarantee of €10,000. He will lose that sum and face an arrest warrant if he does not observe any of those conditions.
Italian businessman up first
9.45am Italian businessman Giuseppe Domizio Musarella, 59, is up first. It's a different sitting but still related to the Vitals case.
Musarella, who pleaded not guilty to money laundering, fraud and making false declarations, is alleged to have helped Vitals defraud taxpayers through a project to acquire a Cyclotron, a medical device that manufactures cancer treatment medicines.
Investigators say Musarella acquired the Cyclotron through a newly created company, Mtrace Ltd, and then rapidly sold Mtrace to Vitals as soon as the latter received taxpayer millions.
Vitals would go on to sell the Cyclotron, which is still not operational years later, to Malta Enterprise, which helped fund the original Mtrace purchase through a loan.
In his last sitting, defence lawyer Veronique Dalli argued that Musarella was a legitimate businessman who had been dragged into this affair. His company was among the first to transport COVID-19 vaccines into Malta.
What can happen today?
9.35am At the last court hearing, both prosecution and the defence made various legal arguments as to why the court should decide to move forward with the case or not.
This is the crucial decision which the court is to deliver today.
The court may decide that all or none or some defendants have a case to answer. In that case, proceedings will continue in respect of those, while the others would be discharged.
In the first Vitals case presided over by a different magistrate, Sciacca Grill Ltd was the only defendant spared further prosecution after the court decreed that the company had no case to answer.
Fearne walking into court. Photo: Chris Sant FournierWhy are we here?
9.30am The concession of the three state hospitals, annulled by the civil courts last year based on fraud and collusion among private individuals and top public officials, was the subject of a years-long magisterial inquiry. It resulted in a 1,200-page report detailing the criminal action to be taken against those targeted in the investigation.
The inquiring magistrate’s conclusions, based on testimonies, documentary evidence and the findings of court experts, altogether made up 78 boxes of evidence which were presented in court when the first group of high-profile defendants were charged under summons in May.
That group included former Prime Minister Joseph Muscat, his former chief of staff Keith Schembri and former energy and health minister Konrad Mizzi.
A second group charged the following day, included Fearne, Scicluna, three top civil servants, members of the adjudicating committee as well as legal professionals involved in the granting of the lucrative concession to Vitals Global Healthcare.
The concession was subsequently taken over by Steward Healthcare.
Who is facing what charges?
9.15am Whereas Muscat, Schembri and Mizzi are pleading not guilty to money laundering, accepting bribes and trading in influence, Fearne and Scicluna face lesser though nonetheless serious charges.
All those targeted in the second Vitals case are charged with fraud amounting to over €5,000 and having made fraudulent gains.
Fearne, Scicluna, former permanent secretaries Alfred Camilleri and Joseph Rapa, current permanent secretary Ronald Mizzi and former Vitals in-house lawyer Deborah Anne Chappell are also charged with misappropriation.
Camilleri, Rapa and Mizzi face charges of having committed crimes they were duty-bound to prevent.
Chappell, together with Kevin Deguara, Kenneth Deguara and Jean Carl Farrugia, of DF Advocates, are separately charged with money laundering. The prosecution has requested millions-worth freezing orders in their regard which the court is also expected to decide upon today.
Other charges relate to active participation in a criminal organisation and document fraud.
Ronald Mizzi, Joe Rapa and Alfred Camilleri.The last hearings
9.15am One of the witnesses was Auditor General Charles Deguara who also headed separate investigations into the 2015 concession whereby VGH took over the running of St Luke’s Hospital, Karin Grech Hospital and Gozo General Hospital.
As “guardian of the public purse,” the Auditor General voiced “great concern” that with respect to this health project, involving massive funds, the health ministry and its experts, were totally sidelined.
Deguara confirmed his office found “no shortcomings” in Fearne and Scicluna.
The sale of three hospitals was a contenious issue from the beginning. Photo: Matthew Mirabelli