Issue link: https://maltatoday.uberflip.com/i/1450614
14 maltatoday | SUNDAY • 13 FEBRUARY 2022 NEWS The Vitals deal 2014 April Cabinet Reshuffle: Konrad Mizzi given added responsibility for health and public-private partnerships October 9 October: Pivot Holdings set up in Malta by the would-be investors of Vitals Global Healthcare Pivot Holdings Ltd 10 October: Economy Minister Chris Cardona signs MoU with the developers of a proposed project, including the two companies set up the day before Mark Edward Pawley Director of Bluestone Special Situation 4 Ltd Ashok Rattehalli Director of AGMC Inc Mohammad Shoaib Walajhi Director of Pivot Holdings Ltd Chaudhry Saukat Ali Director of Pivot Holdings Ltd November 23 November: Some investors bring Ambrish Gupta into the picture. Gupta is made a 35% shareholder and investors agree that they need to raise funding Ambrish Gupta 2015 February The people behind VGH boast of Bluestone Investments Malta Ltd December 9 December: Bluestone Investments Malta set up locally 2 September: Josie Muscat announces that the sale of Capua hospital has been called off Pivot Holdings Ltd 10 October: Economy Minister Chris Cardona signs MoU with the developers of a proposed project, including the two companies set up the day before Mark Edward Pawley Director of Bluestone Special Situation 4 Ltd Ashok Rattehalli Director of AGMC Inc Mohammad Shoaib Walajhi Director of Pivot Holdings Ltd Chaudhry Saukat Ali Director of Pivot Holdings Ltd November 23 November: Some investors bring Ambrish Gupta into the picture. Gupta is made a 35% shareholder and investors agree that they need to raise funding Ambrish Gupta 2015 February The people behind VGH boast of their MoU with the Maltese government - two months before the request for proposals was published March Gupta reaches a deal on how to finance the Vitals project. The deal includes Bluestone owners Mark Pawley and Ram Tumuluri, Portpool Investments (PIL), and Bluestone Special Situation 4 Ltd. VGH seeks funding A presentation drawn up by Vitals refers to the Gozo and Malta medical complex in a bid to attract finance to their project. The project includes St Luke's, Karin Grech, and Gozo General Hospital. It also indicates that government would pay a minimum yearly sum of €70 million for beds that would be used in the public health service. St James Hospital Towards the beginning of 2015, Chaudry Shaukat Ali introduced an American doctor to Josie Muscat, the owner of St James Hospital. One evening, Muscat attended a meeting with Shaukat Ali, Iqbal, and some other investors. On 4 March, news breaks that Josie Muscat is selling off Capua hospital and the St James brand to American and Palestinian businessmen. 18 March: Government signs an agreement with Barts Medical School for the opening of a campus in Gozo. 27 March: Several days later, government publishes a request for proposals for the granting of a services concession to operate three hospitals: St Luke's, Gozo, and Karin Grech hospital. On the same day: Ram Tumuluri was appointed director of Bluestone Investments Malta Ltd May 13 May: Vitals Global Healthcare registered in Malta with all shares held by Bluestone Investments Malta Ltd Bluestone Investments Malta Ltd December 9 December: Bluestone Investments Malta set up locally 18 May: VGH Management Ltd and VGH Assets Ltd registered in Malta. Mark Pawley and Ram Tumuluri are directors of the companies. 19 May: Closing date for the submission of bids. The following companies submitted bids: 1 Vitals Global Healthcare 2 Image Hospitals Ltd 3 BSP Investments Ltd June Cabinet approves a memorandum submitted by Konrad Mizzi asking Ministers to approve the award of preferred bidder status to the VGH and the commencement of negotiations September 9 September: Projects Malta notifies VGH that government intends on awarding it the services concession for the three hospitals October 13 October: Konrad Mizzi gives Cabinet an update on the public- private partnership for the sites. According to him, the following agreements were finalised: CA Concession Agreement HSA Healthcare Services Agreement LSA Labour Supply Agreement ED Emphyteutical deed November 30 November: Vitals Global Healthcare, together with its subsidiary companies, signs the service concession agreement with government December 7 December: Government and VGH Management sign first and second addenda to the HSA. Several changes were made to the services, activities and operations to be carried out by VGH, and government agreed to take up 100 additional beds HSA 2016 January HSA Healthcare Services Agreement LSA Labour Supply Agreement ED Emphyteutical deed 2016 January 8 January: Government and VGH Management enter into the Labour Supply Agreement, allowing government to supply employees to VGH Management so that the company can meet the terms of the transaction agreement May Daphne Caruana Galizia publishes a damning due diligence report claiming that Keith Schembri and Malta's ambassador to Dubai promised Shapoorji Pallonji and UAE-based Global Health Care that they would be awarded the hospitals privatisation project if they worked with Ram Tumuluri and Shaukat Ali Chaudry. 19 May: Konrad Mizzi and Ram Tumuluri sign side letter to the transaction agreements. VGH's obligation to present financing agreements to government was waived to 19 February 2017 September 15 September: Government and VGH enter into a second side letter to the transaction agreements. Here, they acknowledge that VGH had computed the accurate value of the charges for deployed employees of government to VGH and subcontracted human resources. December 11 December: Daphne Caruana Galizia reports that VGH threw a Chris Party at Westin Dragonara Hotel in St Julian's. "Ram Tumuluri and some other Indian gentlemen from overseas were the hosts." 1 January: 50 additional beds were to be provided to Karin Grech hospital. VGH failed to achieve this milestone by the indicated date and until the concession was transferred to Steward Healthcare. Concession milestone February 14 February: Government and VGH enter into the first side letter to the Service Concession Agreement. Through this letter, government waived the obligation to provide financing agreements by 19 February 2017 but extending the deadline to 30 June the same year. Konrad Mizzi sworn in as €16 million paid by government to VGH in 2016 A genuine will to improve the Maltese healthcare system, or a deal tainted with corruption? MaltaToday maps out the Vitals and Steward deals which have dominated the country's news cycle over the last eight years. In a 2014 cabinet reshuff le, former Prime Minister Joseph Muscat's decision to appoint Konrad Mizzi as the country's health minister signaled the start of the hospitals privatization saga. Yet, from failed concession milestones, to a police raid at the former PM's Burmarrad residence, to a civil court case opened by the former Nationalist leader Adrian Delia, the timeline gives a clear picture on how the situation has evolved with this maligned privatisation of state hospitals By Nicole Meilak and Karl Azzopardi From Vitals, to where... timeline of a privatisation gone wrong