Prime Minister Abela Halted from Renegotiating “Fraudulent” Deal at the Eleventh Hour, NAO Reveals
In a startling revelation, the National Audit Office (NAO) has stated that Prime Minister Robert Abela was on the verge of finalizing an illegal deal with Steward Health Care in December 2020, only to be stopped at the eleventh hour by the advice of the State Advocate and the Department of Contracts.
The NAO's investigation, published on Monday, contradicts Abela's claims to parliament that he had altered the government's course regarding Steward Health Care. The NAO report provides a detailed account of what transpired when Abela assumed power, debunking his assertions.
According to the NAO's findings, Abela continued negotiations with Steward Health Care and its President and CEO, Armin Ernst, soon after taking office. These discussions involved direct participation from the Prime Minister, Deputy Prime Minister, Health Minister Chris Fearne, and Finance Minister Clyde Caruana. The NAO characterized these negotiations as a display of “poor management.”
The discussions progressed to the point of a draft agreement, which received approval from the Cabinet on December 18, 2020. The NAO noted that this process resulted in near-final agreements for the remodeling of the 2015 concession.
Information provided by Steward Health Care to the NAO revealed that the parties were confident of concluding negotiations and signing the renegotiated agreements by December 18, 2020. Among the agreed-upon terms were the government's acquisition of the new Barts medical school building for €35 million from Steward and Steward's commencement of management contractor services at Gozo General, Karin Grech, and St. Luke's Hospitals.
Additionally, a new Management Services Agreement was drafted, outlining Steward's provision of non-hospital management services for the duration of the concession until May 18, 2046. The specific management fee to be paid to Steward was yet to be finalized.
However, the signing of the agreement was halted following intervention from the State Advocate and the Department of Contracts, who advised that the proposed changes would constitute an illegal direct contract with Steward. Health Minister Fearne confirmed this advice, stating that “the State Advocate and the Department of Contracts advised that the agreed changes could not be affected.”
It was only at the last moment, on the eve of the signing, that Prime Minister Abela decided to abandon the entire process.
The NAO strongly criticized Abela's attempts to secure a new deal, emphasizing that the permissibility of the negotiations should have been established from the outset and certainly before Cabinet approval. The report highlighted the lack of awareness of the illegality of the negotiations, which only came to light at the eleventh hour.
The NAO's findings shed light on the alarming nature of the proposed deal and raise questions about the decision-making process and oversight involved in the renegotiation attempt.
Source: TheShiftNews.com
Michael
With nearly 30 years in corporate services and investigative journalism, I head TRIDER.UK, specializing in deep-dive research into gaming and finance. As Editor of Malta Media, I deliver sharp investigative coverage of iGaming and financial services. My experience also includes leading corporate formations and navigating complex international business structures.
