Steward ordered to pay €850k to company for cleaning Karin Grech, Gozo hospitals

A Steward Health Care subsidiary has been ordered to pay almost €850,000 to a cleaning company that provided cleaning and sanitisation services at Karin Grech and Gozo General Hospitals. 

Judge Mark Simiana ordered Steward Malta Management Ltd to pay €841,508.52 plus interest to Zenith Malta Division Ltd for services rendered.

The company, which is part of the Zenith Consultancy group and distinct from a sanctioned financial services company sanctioned by the regulator in 2021, filed court action against Steward after a final invoice it sent in 2023 went ignored, despite multiple reminders.

Steward did not dispute that Zenith had provided the cleaning services but argued that the original written contract between the two had expired and never been formally renewed.

The healthcare company also claimed that Zenith had breached the terms of the agreement by failing to provide a bank guarantee, but failed to present a copy of that agreement in the case as evidence.

The court noted that under local law, parties are bound by a tacit agreement if they continue to provide and accept services after a contract expires.

Furthermore, if Steward had accepted services despite Zenith not paying the bank guarantee, it could not use that as a justification to withhold payment for works done, the court said.

Steward failed to present any witnesses in the case, and the only evidence submitted was a statement that was struck off because it was not confirmed under oath.

The court therefore ruled that Zenith was owed  €841,508.52 plus interest and that Steward should also pay legal fees related to the case.