A Vitals agreement that the government kept under wraps for years was “never secretive”, former Malta Enterprise CEO Mario Galea claimed in court last week.
Yet, Malta Enterprise fought tooth and nail to keep its contents secret, citing “commercial sensitivity.”
Various government entities also claimed to the auditor general that they did not even have a copy of the 2014 memorandum of understanding (MoU).
The auditor general was finally given a copy in 2020, only after a damning report concluded that the mere existence of the MoU indicated collusion between the Vitals investors and government officials.
Times of Malta discovered the existence of the memorandum of understanding in 2017, after obtaining a presentation by the Vitals investors bragging about how they had signed an agreement with the government to run the Gozo, St Luke’s and Karin Grech hospitals.
The presentation referencing the agreement predated the official tender to run the hospitals by several months.
The auditor general said it served as the basis for the entire concession being awarded to Vitals through what was meant to be a competitive tender
Attempts by Times of Malta to get a copy of the agreement from Malta Enterprise were rebuffed on “commercial sensitivity” grounds. Judge Joanna Vella Cuschieri upheld Malta Enterprise’s refusal when an appeal was filed.
Although the memorandum of understanding only refers to the Gozo hospital, the auditor general said it served as the basis for the entire concession being awarded to Vitals through what was meant to be a competitive tender.
The deal awarded to Vitals and later taken over by Steward was struck down by a court last year on “fraud” grounds. Top former officials, including ex-prime minister Joseph Muscat, face criminal charges over the Vitals deal.
What does the MoU say?
The agreement, signed by ex-minister Chris Cardona, was for the setting up of a Gozo medical school, “which shall include the extension and operation of the Gozo General Hospital”.
It bound the investors to set up a company in Malta to develop and operate the project, “which company will appear on behalf of the investors on the final agreement”.
Cardona, who was responsible for Malta Enterprise when the agreement was signed, told a court that the first time he met the Vitals investors was during the signing at Castille.
Cardona said it was his ministry staff who informed him that the “run of the mill” agreement needed to be signed by him.
A magisterial inquiry into Vitals uncovered evidence that the government was always planning to include all three hospitals in the deal.
Brian Tonna, the man who set up secret companies in Panama for ex-government officials Keith Schembri and Konrad Mizzi, was involved in meetings with Pakistani businessman Shaukat Ali about the hospitals project as early as June 2014.
Ali and Tonna have both been charged in connection with the deal.
In January 2015, the government was advised that handing the hospitals contract to a group of investors without first issuing a public tender could present a “legal hurdle”.
It was eventually decided that a request for proposals would be necessary. The request was issued in March 2015, five months after the MoU was signed.
In an added twist, Konrad Mizzi’s then-permanent secretary Ronald Mizzi appointed Tonna to the evaluation committee that would assess the tender bids, despite his connections with Ali.
The inquiry found there was “considerable argument” over who should sit on the committee.
On the closing date of the submissions for bids, Tonna was replaced by his Nexia BT partner Manuel Castagna.
Mizzi resigned as permanent secretary in July after a court found there is enough evidence for him to face trial in connection with the deal.