Issue link: https://maltatoday.uberflip.com/i/1530259
6 maltatoday | SUNDAY • 8 DECEMBER 2024 ANALYSIS NICOLE MEILAK nmeilak@mediatoday.com.mt Steward and the Government: Making The ongoing arbitration between Steward Healthcare and the Government of Malta remains shrouded in secrecy, with both parties issuing brief public statements. MaltaToday examines what's been revealed so far, exploring the key disputes and progress in the case, including the termination of the concession agreement, bankruptcy proceedings, and the confidentiality surrounding the arbitration process WHENEVER the Opposition insists that the State should recover all the money paid to Steward and Vitals, the official government line is that inter- national arbitration proceed- ings are already underway. Whenever journalists ask for more information on these proceedings, we are told that the details are strictly confi- dential. However, the public bicker- ing between Steward and the government allows us to glean some details of what's hap- pening behind closed doors at the International Chamber of Commerce. MaltaToday takes a look at the public statements made about the case and speaks to lawyer Malcolm Mifsud to paint a clearer picture of the arbitration proceedings. What is Arbitration? Arbitration is a method of resolving disputes outside tra- ditional court systems, where the parties in conflict agree to submit their issue to an inde- pendent third party, known as an arbitrator. The arbitrator reviews the evidence, listens to both sides of the argument, and then makes a decision, which is usually binding or non-bind- ing. Lawyer Malcolm Mifsud, a partner at Mifsud & Mifsud Advocates, explained to Mal- taToday that arbitration pro- ceedings are, in theory, faster and cheaper than regular court proceedings. One of the key differences, he noted, is the confidential na- ture of arbitration. "Arbitration is not public, unlike court proceedings. Not even the documents are made available to the public," Mifsud said. "The parties in dispute enter into an arbitration agree- ment at the start of the pro- ceedings, and a confidential- ity clause is often part of this agreement." While confidentiality is the general rule in such proceed- ings, the two parties can agree to make certain aspects public. Ultimately, the terms and condi- tions of the proceedings are de- termined by the parties involved. Malta and Steward Healthcare We know very little about the arbitration proceedings between Steward Healthcare and the Government of Mal- ta. Government spokespeople choose their words carefully when asked about the case, cit- ing strict confidentiality terms. Despite the confidential na- ture of the case, the govern- ment has issued a few press releases announcing key de- cisions throughout the pro- ceedings. This provides us with some insight into what might be happening behind the scenes. In the first statement—just three sentences long—the gov- ernment said it had "defeated" an emergency arbitration pro- ceeding brought by Steward Healthcare at the International Chamber of Commerce. "While the matter relates to the terminated concession, at this stage, the government cannot comment further on pending legal proceedings," the statement read. This was issued two months after a local court annulled all contracts awarded to Steward and its concession predeces- sors, Vitals Global Healthcare. A few days later, Steward Healthcare explained it had filed the emergency arbitration on 29 March that year "due to serious concerns surrounding the escalation of the termina- tion dispute and its impact on the necessary handover pro- cess." It added that the terms of the arbitration were confidential. "[The statement] continues to highlight the Government of Malta's deliberate and calculat- ed manipulation of the narra- tive and disregard for uphold- ing international standards." Fast forward to November of that year. Chris Fearne, the health minister at the time, told Parliament that Malta had won a second arbitration pro- ceeding. Again, he provided lit- tle detail on the decision. Mifsud stated that these brief statements about the case sug- gest that the parties involved in the dispute can publicly disclose certain aspects of the proceedings. "If the government says