Maltese PM ‘proud’ of deputy PM, EU commissioner candidate charged with defrauding government

6 months ago 21

Malta’s Prime Minister Robert Abela said he and the country are proud of the work done by former deputy prime minister and minister for European Funds and the country’s EU commissioner candidate Chris Fearne, who resigned after he was charged with defrauding the government through deceit and misappropriation of funds.

Fearne, former prime minister Joseph Muscat, former chief of staff Keith Schembri, and former tourism minister Konrad Mizzi were charged last week in relation to the outcome of a magisterial inquiry into a hospital privatisation deal that cost the country hundreds of millions of euros and delivered nothing.

Upon his resignation from his cabinet positions and that of a candidate for European Commissioner, he said he maintained his innocence and did not rule out a return to politics.

“My solitary and humble hope is that the judicial process to clear my name is expeditious. If, upon its conclusion, the country calls on me to serve again, it shall find me ready,” he wrote in his resignation letter, published in local media.

“No one can be as certain as I that the Court’s proceedings in my regard will confirm my absolute innocence,” Fearne said.

Abela quickly defended him, stating, “People like him [Fearne] should never be the target of such attacks. Chris, Labour is proud of you, Malta is proud of you. We are proud of what you worked towards and will work with strength to ensure the people’s wishes are respected,” Abela said.

The prime minister added it had been an “emotional week” that he had felt “on a personal level”.

He also attacked the investigation again, claiming that when people shunned “the establishment”, they would be attacked and denigrated. This is a phrase often used by Abela to label them as enemies of the state and resulted in a recent report to media freedom organisations when it was used against journalists.

Meanwhile, members of the judiciary have told The Times of Malta they are “irked and hurt” by the attacks on their work from senior government members following the publication of the inquiry. Calling it “political influence in their work,” they said the comments tarnished their reputation and put undue pressure on them to carry out their work without fear or favour.

The source told the media that, “This is pure political pressure. Can you imagine what effect this could have on judiciary members who must decide such cases? Disagreeing with a court judgment or conclusion is one thing, but attacking it and accusing some judiciary members of being out to damage the party in government is dangerous.”

In particular, they described claims that the results of the enquiry, started some four years ago and timed to coincide with the EU elections, were “farcical.”

Abela has repeatedly insisted that the inquiring magistrate, Gabriella Vella, delayed the results of the inquiry to coincide with the European Parliament elections and those for local council representatives in Malta.

He also claimed the inquiry was biased and politically motivated, adding that members of the judiciary were a part of the aforementioned “establishment” that had the sole purpose of destroying the ruling Labour Party.

A source close to civil society told Euractiv that Muscat has been attacking the magistrate who handled the inquiry for “years”, with Abela doing so for several months in preparation for the results being made public.

Student associations, NGOs, and opposition politicians have widely debunked and criticised their comments.

The ‘fraudulent’ deal

The results of a magisterial inquiry into the Vitals/Steward deal have caused waves in Maltese politics just weeks before the European elections.

The deal saw a lucrative hospital management concession handed to a group of investors with no experience in the sector in 2015, two years after the Labour Party came to power.

The concessionaire, Vitals Global Healthcare, did not deliver on a single part of the agreement before selling to Steward Global Healthcare, which is linked to the US hospital giant.

This deal did not deliver either, and Steward left the country owing millions in tax and with multiple court cases from vendors pending, despite having taken hundreds of millions of euros in taxpayer funds.

Mizzi was health minister at the time the deal was brokered but Fearne took over several years later and famously branded the Vitals/Steward deal as “the real deal” when questioned on its legitimacy.

In late 2023, a court found the deal appeared “fraudulent” and that there had been “collusion between Steward and senior government officials or its agencies.”

While the magisterial inquiry’s findings have not yet been made public, it is believed that, aside from his involvement in the fraudulent deal, Muscat may have received over half a million euros in kickbacks.

Steward Health Care has since filed for bankruptcy in the US with some $9 billion in debts. This also includes a €36 million Bank of Valletta loan and over €400 million taken from Maltese taxpayers.

The Party of European Socialists, to which the Maltese Labour Party belongs, has refused to respond to questions from Euractiv.