Issue link: https://maltatoday.uberflip.com/i/1521306
7 VITALS INQUIRY maltatoday | SUNDAY • 26 MAY 2024 jar: The projects Schembri profit on plus VAT. However, the description referred to "Ra- diotherapy Project Manage- ment for Ergon Technoline JV at Sir Anthony Mamo Oncology Centre (SAMOC) 2012-2015", as well as other tasks connected to the Sir Anthony Mamo Oncology Centre and Mater Dei Hos- pital. Apart from this, each quarterly invoice for €75,000 plus VAT used the same technical description, denoting medical IT service support. Investigators could not identify anyone employed by Eurybates that had the necessary qualifications or experience with which to deliver the IT services sup- posedly rendered to Tech- noline. In July 2017, Ivan Vassal- lo texted Keith Schembri about a meeting between the Foundation for Medi- cal Service's department of contracts and Ergon regard- ing "some sizable claims with respect to SAMOC". The text reads: "I have tried to reach Mr Fearne and left a message with one of his assistants." Investiga- tors could not find a reply from Schembri. In August 2014, Ivan Vas- sallo shared with Pierre Sladden a draft joint ven- ture agreement between Gateway and Nexia BT. This agreement stated that the two parties will "agree to form a joint venture for the purposes of collaborating on tenders for the provision of training services at Mater Dei Hospital and/or other public service entities." This raised eyebrows among investigators, who noted that Pierre Sladden was not a party to the agree- ment on paper. A later draft removed all references to Mater Dei and instead broadened the scope to unspecified "public service entities". Environment and Resources Authority In September 2019, a Greek company called CERS was awarded a contract by the Environment and Resources Authority to survey quarries across Malta and Gozo. Investigators found var- ious drafts of an agency agreement between Eury- bates and CERS. The first draft is a general agreement which includes a clause stating that CERS will pay Eurybates an unspecified percentage commission on the profits generated by sales concluded with Eury- bates' help. A later version of the agency agreement specified a 10% commission of the profits generated by sales concluded by Eurybates. Text messages between Ivan Vassallo and an ac- countant at Technoline showed the two discussing a possible loan to CERS, with Vassallo wishing to assist the company "without ap- pearing to be connected to them". Vassallo said: "CERS (Greeks) need to open a bid bond and do not yet have a guarantee facility. I would like to give them a loan to have cash collateral but I didn't want to appear with their bank. […] 60k. MICAS tender bid bond." Investigators suspect that Vassallo did not want Eu- rybates' name to appear on the CERS bank account so that the relationship could appear to be at arm's length. "This would have been com- promised if Eurybates were to make a significant loan of €60,000 to CERS for the tender guarantee." Smart City hospital In March 2015, the prime minister at the time Joseph Muscat announced a €100 million investment towards the construction of a pri- vate hospital at Smart City, aimed at attracting medical tourism. Investigators found that Eurybates was formed to be- come part of a joint venture called Gene Malta. This was supposed to have been in- volved in the provision of personalised medicine at this hospital. "Ivan Vassallo and two of Keith Schembri's long-time associates, Kenneth Abe- la and Steve Carter, were in regular contact between Ju- ly 2015 and December 2015 to develop the joint venture which, had it come to frui- tion, was to generate €200 per patient for Eurybates," the inquiry reads. But since the collaboration never took off, no income was ever generated for Eury- bates from this project. "Therefore, the only rele- vance of this early activity to this Inquiry is that it in- volved a major hospital con- struction project and was controlled by a small number of persons, including Schem- bri as vice-chairperson [of Smart City]." MICAS? In an unusual deviation from technical consulting roles, in May 2020 Eurybates prepared a quote for the sup- ply of steel, concrete, glazing and doors to GP Borg Group. Valued at €4.25 million, the quote concerned materials that were to be supplied in relation to construction at the Malta International Con- temporary Art Space (MI- CAS). GP Borg won a tender to carry out all works, from ex- cavation to finishes, for the MICAS Galleries. The mon- ey never flowed to Eurybates. "This was a very large sup- ply deal which, had it pro- ceeded, would have repre- sented more turnover (and profit) for the company than all other contracts since its incorporation five years ear- lier." How Eurybates recieved kickbacks from government projects GP Borg Salfo SA Ado SA Paola Primary Healthcare Regional Hub project management GP Borg GP Borg Malta International Contemporary Art Space Technical consultancy agreement GP Borg Cers Construction €4.25m 10% commission 10% commission on profits GP Borg Ergon - Technoline joint venture Quarry surveilance Paola Primary Healthcare Regional Hub design and construction €22,000 monthly exc. VAT GP Borg Technoline Modernisation, upgrading and servicing of the Radiotherapy Treatment Planning Systems at SAMOC Mater Dei Hospital €22,000 monthly exc. VAT GP Borg Sirimed €804,900 EURYBATES Design and construction of Barts Gozo Campus Smart City Hospital Investigators found that Eurybates was formed to become part of a joint venture in 2015 called Gene Malta. It was supposed to have been involved in the provision of personalised medicine at Smart City hospital. Business deal never materalised Keith Schembri Konrad Mizzi Adrian Hillman Ivan Vassallo Pierre Sladden