Two former Steward Health Care directors are contesting personal liability for unpaid company taxes totalling €36 million and €20 million respectively.

Armin Ernst and Michael Callum argued that the liabilities were incurred prior to the US healthcare company’s takeover of a government concession to run three public hospitals.

The concession deal is mired in corruption allegations, with ex-prime minister Joseph Muscat among those fighting criminal charges.

Steward took over the hospitals in 2018 from the original concessionary Vitals Global Healthcare.

Ernst and Callum have argued in a civil lawsuit over the tax claims that the government and VAT department failed to uncover or disclose “very serious anomalies” in Vitals’ tax affairs.

Ernst and Callum claimed Steward were shown that the company Vitals was in a strong VAT position, with various refunds owed to it.

The pair say they only found out about these multimillion-euro tax dues following an audit carried out by Steward, after the US operator had already taken over the concession and the companies associated with Vitals.

An appeal court last year ruled that Steward is liable for these unpaid taxes.

A separate court presided over by judge Giovanni Grixti this month declined to rule on Ernst’s and Callum’s liabilities for these tax dues.

Grixti upheld arguments by the tax authorities that Ernst’s and Callum’s liability as former Steward directors should be decided upon by an administrative tribunal, not his court.

Times of Malta revealed in January that Steward accused ex-Vitals director Ram Tumuluri of complicity in

defrauding the government by drawing up “manufactured” or “artificially” created VAT invoices.

Tumuluri hit back with claims that he was “forced” to sell his shares in Vitals due to threats and intimidation by Steward.

Rather than taking the claims to court, Steward agreed to pay Tumuluri a €10.5 million settlement.