Issue link: https://maltatoday.uberflip.com/i/1267406
09.07.2020 5 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS CONTRIBUTING JOURNALIST: MASSIMO COSTA BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 T he National Audit Office has always been thorough in its investigations of public en- tities and contracts, measuring every word used in its reports. So, when the NAO uses strong language such as "collusion", "predetermined deal", "a dark shadow" and others to describe a multi-million-euro con- cession agreement, it signals something was very wrong with the deal. is was the outcome of the NAO investigation of the procurement process that led to the award of three public hospitals to Vitals Global Healthcare for a 30-year concession, extendable to 99 years. e damning report published this week has, in no uncertain terms, shown that the VGH agree- ment was a done deal by virtue of a memorandum of understanding the government had entered into with some of the investors prior to the publication of the request for proposals. is reinforces the perception that corruption underpinned this major government project that involved the part-privatisation of three public hos- pitals. Obviously, the NAO conclusions did not come as a surprise to many. Let us not forget that despite VGH unveiling its ambitious plans to invest millions to upgrade St Luke's Hospital and Karin Grech Rehabilitation Hospital, and build a new Gozo hospital, the com- pany went belly up with none of the planned pro- jects getting off the ground. e NAO found that no thorough due diligence was carried out on the companies that formed the VGH consortium and only a superficial feasibility study was undertaken to determine whether the project was financially sound. And in all this malaise, the NAO laid the blame for poor governance squarely on then health min- ister Konrad Mizzi and the permanent secretary. e project was captained by Projects Malta, a government entity set up after the 2013 election and placed under Mizzi's wing. e NAO report expressed concern at the fact that in this tender, the health authorities and the finance ministry were not included. With all this carrying the official stamp of gov- ernment, it is no wonder that what was promised never materialised while investors still made off with millions. e VGH deal was a dirty one from inception, which merits being investigated further for possi- ble criminal breaches. While this leader is all for public-private partner- ships, these must be crafted in a spirit of good faith and in full respect of fair competition that ensures the public derives the best value for money. e VGH concession was anything but this – the deal lacked transparency, the tendering process was unfair and the companies involved were ob- scure, without a track record in healthcare. e government has no option at this stage but to pull the plug on the deal, which was eventual- ly transferred to American outfit Steward Health Care. e country cannot entertain a project that has so far failed to deliver and is costing taxpayers mil- lions with no return in sight. is leader is not averse to a PPP in the health- care system but this cannot be the dubious deal negotiated and concluded by Konrad Mizzi. At a time when Malta's international reputation is struggling because of its failure to tackle mon- ey laundering, corruption and financial crime, the government must come clean on the VGH fiasco. Contractual clauses that are deleterious to the public good and which were inserted last year to protect the interest of Steward rather than the taxpayer, should be legally challenged and those behind them investigated for collusion and dere- liction of duty. Vitiated hospitals deal must be rescinded