Former minister and government advisor John Dalli has denied ever introducing Joseph Muscat to the former owner of Pilatus Bank, but stopped short of denying that he introduced the then-prime minister to a key Vitals Global Healthcare investor.

Dalli was reacting to a claim by lawyer Jason Azzopardi, who on Friday said John Dalli was "the common denominator" underlying Joseph Muscat's relationship with former Pilatus Bank owner Ali Sadr and one of the Vitals investors, Shaukat Ali.

Contacted for a reaction on Saturday morning, Dalli said he intends to take legal action over "slanderous" statements by Azzopardi "and others".

"I have never introduced Ali Sadr to Joseph Muscat or to anyone else. This is another attempt to spin a slanderous claim that Daphne Caruana Galizia made up," he said.

"With regards to health in Malta, I was in contact with Johns Hopkins [University] in the United States and those discussions carried on with Joe Cassar when he was appointed Health Minister."

When asked specifically whether he introduced Vitals investor Shaukat Ali to Muscat, he said he would rather discuss that in a meeting in person.

Ali was one of the Vitals shareholders who signed a secret memorandum of understanding with the government, which acted as a precursor to the hospitals contract. 

Times of Malta reported last year that he made millions from the hospitals deal.

The development comes in the wake of a dramatic court judgment that last week condemned Steward Health Care and Vitals Global Healthcare for having engaged in fraudulent and possibly criminal behaviour.

The court annulled the controversial hospitals' privatisation deal originally signed with Vitals, declaring it to be “fraudulent”, and ordered that St Luke’s, Karin Grech and Gozo hospitals be returned to the government within three months.

'This is the beginning of the end of the Labour Party'

Jason Azzopardi made the claim about Dalli on Friday evening during a discussion panel on NET TV. It was the first time he appeared on the PN-owned platform since his fallout with the party after last year's election.

He said that last week's landmark judgment on the Vitals case is "the beginning of the end of the Labour Party" and that it will begin to end the 'mafia's grasp' on the country's institutions.

"The word 'fraudulent' in the judgment is very serious, but it is among the least serious criminal acts that occurred throughout the process. Konrad Mizzi and Shaukat Ali were at the pinnacle of this deal," he said.

"They conspired to rob Maltese taxes off the most valuable thing for Maltese people - their health. And do you know who introduced Shaukat Ali - the Pakistani, criminal and corrupt man - to Joseph Muscat? It was someone called John Dalli.

"And who do you think introduced Iranian Pilatus Bank owner Ali Sadr to Joseph Muscat in Castille? John Dalli. John Dalli is the common denominator and we will hear about this in the future."

'Slanderous remarks'

Dalli dismissed Azzopardi's remarks as slanderous and said he intends to take legal action.

Dalli was controversially appointed as the government's health advisor after quitting the European Commission in disgrace, following allegations of bribery and corruption. He denies the allegations. A court case concerning those claims only began 10 years later, in 2022.

In 2018, after Vitals Global Healthcare sold its hospitals concession to Steward Health Care, Dalli said he would have never advised the government to strike a deal with Vitals.

"From public information, I would have never advised them to make that deal," he had said at the time.

Asked about Steward Healthcare, which by then had already been tasked with running the three state hospitals, Mr Dalli had said he did not know enough about the company to comment.