A memorandum of understanding concerning the Vitals deal was signed five months before the relative request for proposals had been issued, the Auditor General testified in court on Tuesday.
Charles Deguara was summoned as a defence witness when proceedings against former deputy prime minister Chris Fearne and other high-ranking public officials continued.
The “evidence-based” investigation by a team of officials from his office focused on “good governance,” spanning the whole process from the procurement stage until the concession was granted to Vitals Global Healthcare, explained the witness.
The memo of understanding was signed by then-minister Chris Cardona.
The NAO investigating team could not accept the fact that that memorandum pre-dated the Request for Proposals by five months.
Although the evaluation was handled by Projects Malta, the Tourism Ministry played the greatest role in discussions with Vitals and their successor Steward.
Former minister Konrad Mizzi was “the driver….pushing the initiative” but if the decision to grant the concession was subsequently taken at cabinet level, then it was the government who took the decision.
Asked whether that decision reached cabinet level, Deguara replied, “As far as I know, yes. But I need to check.”
Asked about a specific amendment concerning events of default on the original agreement, Deguara said that all amendments were signed by Mizzi and as far as he could remember that particular amendment did not go to cabinet.
“But I have to check….Some amendments went to cabinet, others no,” pointing out that certain questions concerned matters which he had vetted quite a while back.
Defence lawyer Michael Sciriha asked whether one of the defendants, namely lawyer Bradley Gatt, was mentioned in the NAO report and whether he was in any manner involved with the government.
“I never came across him [Gatt] if I recall well,” replied Deguara, pointing out, however, that his office only audited public matters and public officials.
He would check whether Gatt featured at all in the NAO report.
As for former permanent secretary at the Finance Ministry Alfred Camilleri, Deguara said that they “came across no irregularity.”
Deguara had consulted Camilleri while preparing his report on the Vitals concession and “he [Camilleri] was always very cooperative.”
Registrar of the Criminal Courts and Tribunals Franklin Calleja today presented lists of court experts drawn up by the Justice Ministry in terms of law.
Those lists were forwarded to the registrar who would then circulate them among the judiciary.
But judges and magistrates were not bound to select experts from those lists.
In fact, after comparing those official lists with the list of experts nominated by the magistrate conducting the Vitals inquiry, Calleja found that only two were chosen from the list compiled by the justice department.
“These experts got millions..it’s a public secret…So how are they paid?” asked lawyer Roberto Montalto.
There were no tariffs in criminal proceedings. Experts simply submitted invoices which, if endorsed by the magistrate, entitled them to payment.
Lawyer Franco Debono cited a provision of law which stated that the Justice Minister could, after consulting the Chief Justice, appoint official experts. The court would then appoint experts from those persons listed on a roster system.
However, the registrar could not confirm that this system was generally adopted.
Although the law stated that the registrar was responsible for billing and payment of experts, Calleja said that he “had no knowledge of fees nor what the experts’ task entailed.”
“In this case, did the experts give a forward indication of their fees?” asked Debono.
“To me as registrar, no.”
The case continues next week with a number of sessions mapped out by the court to hear 40 witnesses requested by the defence teams.
Another session is being reserved for submissions on prima facie. Later this month the court is expected to decree on whether there is sufficient prima facie evidence for the defendants to face trial on indictment.