Updated 1.30pm with government's reply
Steward Health Care has ramped up its row with the government by threatening legal action over its attempts to terminate the hospitals privatisation deal.
Earlier this week the government sent a termination letter to Steward Health Care, informing it that it is stepping in immediately to run Karin Grech, Gozo General and St Luke's.
In doing so, the government was effectively giving notice that it is rejecting the termination conditions which Steward sought to impose when it announced on March 16 that it would be quitting Malta.
It is also aiming to avoid a €100m payment that Steward wants to enforce for having its deal to run the hospitals cancelled early.
However, Steward has hit back, rejecting the government’s attempts to terminate “a concessionaire terminated concession”.
In a statement, it said that the “Control Step-in Notice and Termination Notice" had “no legal basis”.
“Contrary to statements made publicly earlier this week, the government of Malta is legally not in a position to force its step in and is therefore not currently participating in any additional capacity within the concession,” Steward said.
A court last month annulled the concession agreement through which Vitals Global Healthcare and later Steward took over the management of the hospitals. The judgment described both companies as acting in a fraudulent and possibly criminal manner.
Steward has appealed that verdict, arguing that it was defrauded by the Maltese government and punished by a biased court.
A side agreement to the concession agreement, also annulled by the court, had provided for compensation of €100 million to Steward if the concession was to end and the government had not met its obligations.
In its Thursday statement, Steward said it is disappointed that the government is attempting to engage in a legal “tit-for-tat” for purely political ends, rather than acting responsibly and professionally for the benefit of the people of Malta.
“Steward Malta has encouraged the government to focus on actions rather than words; instead of making legally unsound statements to the media, government is called on to engage in productive discussions that lead to a structured and smooth handover that benefits the continued wellbeing of our patients and staff at the hospitals.”
Steward insisted that the government’s control step-in and termination notices are “invalid and of no effect”, making the government’s actions “unlawful”.
“Steward Malta has informed the government that, should it persist with this behaviour, legal action will be taken, including seeking the protection of the Malta Police Force and government will be held liable for any losses, damages or other prejudicial consequences."
It said it remained committed to ensuring a smooth and orderly transition out of the deal.
“Our concern for a protected working and hospital environment for our patients and staff is paramount, as shown for example by our early payment of staff salaries for the month of March already this week,” it said.
It added that it will continue to manage the operations of the three hospitals that form the concession until a competent and capable party is legally able to step in and manage the wellbeing of staff and patients in its place.
“We again encourage the government to partner in this transition in a responsible and constructive manner,” Steward said.
In a statement, the government said it would insist on its legal position in the interests of the public.
"Steward Malta's statement is out of line, as already explained by the government more than once. The government is reassuring the service to all patients as well as the jobs of all those working at the hospitals."