Borg Criticizes Government for Unrealistic Claims About Hospital Conditions

In a fiery parliamentary debate on Monday, opposition leader Alex Borg accused the government of misrepresenting the recent International Chamber of Commerce arbitration ruling on the controversial hospitals deal, claiming that Maltese citizens remain the ultimate victims despite government claims of victory.

The emergency debate, which temporarily suspended budget discussions at Borg’s request, highlighted stark contradictions between the government’s public celebration of the ICC decision and its own legal submissions, which sought €488 million in compensation from Steward Health Care—a claim rejected by the tribunal.

Borg criticized Justice Minister Jonathan Attard for repeatedly confusing the International Chamber of Commerce with the International Criminal Court during media appearances, suggesting this revealed the government’s desperation to obscure the ruling’s true implications.

“The Maltese people have been defrauded in the health sector, and whatever government says, the people have been defrauded,” Borg declared, directly quoting the ICC ruling that identified Maltese citizens as the primary victims of the failed concession.

The opposition leader pointed to a glaring contradiction between Prime Minister Robert Abela’s October 2023 parliamentary pledge that Steward would not receive “one more cent” and the reality that Malta must now pay the company an additional €5 million following the tribunal’s determination.

Borg questioned why several civil servants failed to testify at the ICC proceedings, asking Abela directly, “Were you worried that they might reveal uncomfortable truths?”

Nationalist MP Adrian Delia, who initiated the original court case that ultimately nullified the hospitals contract, delivered a blistering attack on what he termed “shameless lies” by the government. He cited the ICC ruling’s opening paragraph, which states: “The primary victims of this failure are the citizens of Malta who were anxious of receiving through a private public partnership improved health care services in an improved hospital environment in their beautiful country.”

Delia emphasized that the €400 million figure cited by the opposition was derived from National Audit Office reports, which the ICC tribunal acknowledged in its ruling. He noted that the government’s counter-claim at arbitration increased from an initial €245 million to €487.9 million, confirming that the administration itself agreed with opposition assertions regarding the funds owed to the state.

“The concessionaires are thieves,” Delia declared, accusing the government of “fighting against the people in favor of VGH and Steward and continuing to pump millions into their pockets” before his successful court case nullified the contract.

When Attard blamed Delia’s court challenge for Malta’s inability to recoup money, the former PN leader cited the ICC ruling, which credited his legal victory with defeating Steward’s primary contractual claims worth €155.9 million.

Delia noted that NAO reports documented €286 million paid to Vitals and Steward between 2016 and 2021, with additional salaries totaling €188 million—approximately €474 million. Subsequent budgets allocated another €70-80 million, yet no new hospitals materialized as promised.

PN deputy Bernard Grech argued that had the government’s approach prevailed, the hospitals would have remained with Steward. “This is a government capable of changing the truth,” he charged, noting that Abela had falsely claimed to have initiated the ICC arbitration when Steward actually launched the proceedings.

Grech highlighted the collapsed gallery at Karin Grech Hospital, where patients or nurses could have been at risk due to Vitals and Steward’s investment failures. He also recalled approximately 20 patients, including young people, who had major orthopedic operations canceled because required preparations were not completed.

Nationalist MP Darren Carabott emphasized that the government’s own €488 million arbitration claim appeared to validate the opposition’s €400 million figure. He noted that Abela initially claimed victory but later retreated to acknowledging “no clear winner”—a position forced by public opinion recognizing the spin following publication of the government’s substantial compensation claim.

PN MP Joe Giglio stressed that the arbitration was only asked to decide Steward’s claim for a €100 million penalty arising from a secret agreement signed by former minister Konrad Mizzi, not whether the promised hospital regeneration occurred. The contract was annulled due to fraud following Delia’s court cases, with the Court of Appeal declaring collusion by senior government officials.

At the start of the debate, Abela repeated his claims of success, though he conceded the deal failed regarding medical tourism and hospital construction. He claimed Malta “paid for services at St Luke’s,” despite the hospital having no operational beds and providing minimal services.

The ICC tribunal ultimately determined that Malta would pay Steward €4.8 million, explicitly stating: “Overall, no clear winner emerges from this arbitration.” The tribunal rejected the government’s €488 million compensation claim, finding no compelling evidence that deductions from healthcare service payments were warranted.

The ruling also dismissed Steward’s €158 million claim based on Mizzi’s secret side agreement promising €100 million compensation if courts annulled the contract—an arrangement the National Audit Office termed “the most evident exploitation” of government by Steward.

Borg concluded by pledging that a new PN government would ensure delivery of new hospitals in Malta and Gozo with improved healthcare services, warning the government that despite its spin, voters would deliver their verdict at the forthcoming general election.