Issue link: https://maltatoday.uberflip.com/i/1267088
NEWS NAO REPORT ON VITALS CONCESSION maltatoday | WEDNESDAY • 8 JULY 2020 CONTINUED FROM PAGE 1 "This casts a dark shadow on the validity of the concession awarded by government, for in effect, all ap- pears to have been predetermined to ensure an already agreed outcome," the NAO said. The NAO said that a letter issued by the Bank of India sanctioning funding for the 'Malta Healthcare Projects' and included in VGH's bid was dated 13 March 2015, well be- fore the publication of the RfP on 27 March 2015. "This office deemed this document as definite evidence of the VGH's prior knowledge of the planned pro- ject and proof of collusion with gov- ernment, or its representatives," the NAO said. The 200-page report was tabled in parliament and is only one of three audits concerning the VGH hospi- tals deal. The first report is a review of the tender process up to the point that VGH was selected as preferred bidder. The other two reports will be re- leased at a later date. The deal struck with VGH saw the transfer of Gozo General Hos- pital, St Luke's Hospital and Karen Grech Rehabilitation Hospital to the private company that had no prior experience in healthcare projects. VGH eventually went belly up be- fore the concession was transferred to American outfit Steward Health Care. "The evidence indicating collusive action between the parties acting on behalf of government with the investors of the VGH renders the entire process dubious, irrespective of whether the process was in adher- ence with procedural and regulatory requirements," the NAO said. It laid the responsibility on then energy and health minister Konrad Mizzi, and to a lesser extent, the permanent secretary for energy. The NAO said it remained unclear how Projects Malta Ltd was mandat- ed to issue the request for proposal for the hospitals concession. Projects Malta was a government entity created after the 2013 election by the incoming Labour government and placed under Mizzi's remit. The audit office expressed concern over the governance of the hospitals concession process since "no minis- terial authorisation" was sought. "[This] resulted in the anomalous scenario where three public hospi- tals were conceded for operation by third parties without anyone actu- ally assuming responsibility for this decision. This failure in governance rests squarely on the Energy and Health Minister [Konrad Mizzi] and to a lesser extent on the permanent secretary for energy," the NAO said. No thorough due diligence However, the NAO also lambasted the evaluation criteria and process used to determine, which of the bid- ders should win the concession. It said no thorough due diligence process was undertaken despite the complexity, size and timespan of the concession. "This Office maintains that the due diligence carried out by government to verify matters relating to the VGH in its capacity and relationship to it as the preferred bidder to run three public hospitals was grossly inadequate," the NAO said. It insisted that the "major flaws and failings" of the concession agreement can be traced to "gov- ernment's prior agreement with the VGH before the issue of the RfP". The NAO said that on the basis of the obscure agreement, the outcome of the tendering process was known "before the feasibility of the conces- sion was determined, before the RfP was drafted and issued, and before the evaluation committee was con- stituted and commenced its consid- eration of the submissions". 'All appears to have been predetermined to ensure an already agreed outcome'