Joseph Muscat has blamed “hidden vested interests” for the failure of the deal to run three state hospitals.

The former prime minister did not say, however, what or who he was referring to.

He was reacting to an appeals court verdict that confirmed the deal was annulled on the basis that Vitals Global Healthcare and then Steward Healthcare did not fulfil their contractual obligations. In a damning judgment, the court said it believed there was “collusion between Steward and senior government officials or its agencies”.

That collusion began right at the start when Vitals got access to privileged information ahead of being awarded the mega contract. 

In written replies to questions from Times of Malta, Muscat defended his government’s actions and said there were “various challenges that hindered the full realisation of this project.

“Hidden vested interests, opposing the modernisation and proper accountability of our national health systems played a significant role in obstructing the complete implementation of the public-private partnership,” he said.

“The court has stated that there was collusion involving unidentified officials,” he continued.

“This conclusion is based, among other things, on different waivers authorised at the political level throughout the entire concession period, with the aim of finding a satisfactory solution.”

In its judgment, the appeals court said that the intent “to draft contracts intended not to deliver quality medical service, but other things.” 

Muscat said he had “firmly believed this agreement could bring numerous benefits” and some had already been realised such as the “successful establishment of Gozo’s own medical school”. Monday’s appeals court decision has led to calls from the Opposition for the police to investigate the unnamed senior government officials for colluding with hospital investors to defraud people.

Times of Malta sought a reaction from Muscat, his former chief of staff Keith Schembri and former health minister Konrad Mizzi on Monday.

Muscat 'committed to make sure whole truth is known'

In his reply, Muscat insisted he has repeatedly called for an “unbiased analysis into any potential misconduct” and that he was “committed to make sure the whole truth is known”.

“To avoid any misinterpretation, it is important to note that I have consistently emphasised the need for a comprehensive and unbiased analysis into any potential misconduct, rather than the politically motivated witch hunts that are currently taking place.”

In dismissing the appeal on Monday, the court also ruled that government representatives named in the case – including Muscat in his capacity as prime minister, the Attorney General and heads of INDIS and the Lands Authority – were jointly liable for court expenses, along with Steward.

Muscat told Times of Malta that “considering the political obstacles that were placed in its path”, the hospitals project could have been “a transformative moment for Malta’s healthcare management”.

“Even the Court of Appeal recognised the positive impact of transitioning from Vitals Global Healthcare to Steward,” he said.

“Although progress may not have been as rapid as intended, it still marked a significant milestone.”

The deal to run St Luke’s Hospital, Karin Grech Hospital and the Gozo General Hospital was originally struck with Vitals Global Healthcare, which had no previous experience in the industry.

Steward took over the deal in November 2018. A magisterial inquiry, triggered by NGO Repubblika the following year has yet to be concluded.