The failure of Chris Fearne and Edward Scicluna to object to cabinet decisions on a controversial hospitals deal was one of the key reasons a court ruled they should face trial on Tuesday.

And the criminal case should also continue against 13 other lawyers, civil servants, officials and a company linked to the deal, which could probably only have happened with the support of a "web" of individuals, the court said.

There was stunned silence in the courtroom when magistrate Leonard Caruana said there was enough evidence for the two former ministers to face charges of fraud, misappropriation and fraudulent gain.

But a closer look at the decree shows why he made the decision for the case against both men to continue at this early stage in proceedings.

1. No objections to cabinet decisions

The former health and finance ministers formed part of Joseph Muscat's cabinet that approved the deal to hand over St Luke's, Gozo General and Karin Grech hospitals to Vitals Global Healthcare (VGH) in 2016.

Both ministers remained members of cabinet when various decisions about the concession were taken throughout the years, the court observed.

Those decisions were meant to address allegedly serious shortcomings by VGH and later when Steward Healthcare took over the concession.

“Yet it appears that although they were informed about these alleged shortcomings…they voted in favour of several memoranda put forward to cabinet," the decree continues.

And these two ministers, together with their permanent secretaries, continued to authorize payments to the concessionaires in spite of the various difficulties which they appear to have been aware of.

The defence argued that Scicluna wanted to block a payment to Steward. 

But the inquiry report shows that that was “purely” done so that a memorandum could be signed with Steward, the magistrate ruled.

As for Fearne, he had asked in 2018 whether he could terminate the concession and later in 2021 had asked whether he could stop payments to the concessionaire. 

The court took note of this evidence and observed that Fearne did not appear to have voted against or objected to various requests put to cabinet from April 28, 2016 onwards. 

2. A 'web of support' for corruption was needed

The magistrate also ruled that 13 other individuals, including lawyers, civil servants and people who served on the adjudication committee that awarded the lucrative deal to run three state hospitals to Vitals Global Healthcare.

Two former permanent secretaries, Alfred Camilleri and Joseph Rapa, and a current one in Ronald Mizzi, adjudication committee members James Camenzuli, Manuel Castagna and Robert Borg, financial controller Kenneth Deguara and five lawyers: Kevin Deguara, Jean Carl Farrugia, Aron Mifsud Bonnici, Deborah Anne Chappell and Bradley Gatt will also face trial.

The court also found enough evidence for the case to continue against law firm DF Advocates. 

All defendants in their various roles appear to have contributed in one way or another for funds to be paid to the hospitals consortium, observed the magistrate. 

The court concluded that all defendants had a case to answer and thus declared that there was enough evidence 'at first glance' for all to face trial on indictment.

Magistrate Caruana set out the prosecution's case that the background to these criminal charges related to a series of crimes allegedly committed by various individuals and companies involved in the granting and administration of the hospitals’ concession. 

Part of the funds paid by government for the running of the three state hospitals and new medical services, were allegedly put to use for “very different purposes,” the prosecution claims. 

Following the signing of the Memorandum of Understanding in October 2014 due diligence exercises were run by the Office of the Prime Minister, Malta Enterprise and later also by law firm DF Advocates, all of which flagged "great difficulties" in the process.

A reading of the magisterial inquiry and the judgments of the civil courts, annulling the fraudulent deal, showed on a prima facie basis that for the investors and the ultimate beneficiaries to enjoy their illicit gains, “they probably needed the support and participation of a number of individuals and professionals from all sectors and levels.” 

They needed this help to plan and put into effect that “which appeared to be a web spread out across different levels.” 

The magistrate observed that the agreement between government and the prospective investors was likely hatched midway in 2014, namely almost one year before the request for proposals was issued. 

The deal was struck even before government had been advised about the legal form whereby the concession was to be couched. 

The Request for Proposals crystallized, or rather amplified, the agreement between government and those who ultimately got the concession. 

3. Lawyers' role is a facade

It appeared that the evaluation and negotiation processes were “simply a means of giving a semblance of objectivity and due process to a process that had likely already been sealed”.

Although there was the impression that the concession was the result of an impartial and independent process, “that was likely only a facade to hide the various allegedly illicit deals that took place behind the scenes.” 

It appears to have been a mise-en-scene to siphon funds from the State coffers that were meant for health services and instead were used for allegedly illicit ends. 

Lawyers Kevin Deguara, Jean Carl Farrugia, Deborah Anne Chappell and Bradley Gatt appear to have given legal services to the investors at an early stage and even helped formulate agreements and legal advice. 

The DF Advocate lawyers appear to have played a central role in resolving legal issues which cropped up after the signing of the 2014 MOU. 

And their involvement continued for a few months after the concession was taken over by Steward. 

Lawyer Aron Mifsud Bonnici also appeared to have played a central role at an early stage, making various contacts with DF Adovocates as well as Ganado Advocates.

He was also secretary on Projects Malta board and evaluation committee, besides being a member of the steering committee and negotiation committee. 

Alfred Camilleri was a director on Projects Malta Board when the RFP was issued and retained that position throughout the entire selection process. 

Ronald Mizzi was the person overseeing all these government entities, appointing the members of the various committees.

As second in command to Minister Konrad Mizzi, the permanent secretary played a central role in handling the whole process related to the hospitals project, the prosecution claim. 

The court concluded that all defendants had a case to answer and thus declared that there was enough prima facie evidence for all to face trial on indictment.