Issue link: https://maltatoday.uberflip.com/i/176463
10 News maltatoday, SUNDAY, 22 SEPTEMBER 2013 CCF inmates left without direct access to psychiatrist RAPHAEL VASSALLO PRISON inmates at Corradino Correctional Facility do not have direct access to in-house psychiatric care and have to be transported to Mount Carmel Hospital in Attard to be seen by a psychiatrist – a situation that has resulted directly in at least one escape attempt by an inmate, who later committed suicide in prison. This unusual situation was brought to light by the recent death of inmate Julian Genovese, who committed suicide in an isolation cell in Division 6 (a maximum security block designed for violent and dangerous criminals, and used for punitive purposes by present and past prison administrations) following repeated requests for psychiatric treatment. Genovese's death has raised a number of questions regarding administrative practices within the prison. It transpires that he was transferred to Division 6 specifically as a punishment for an attempted escape – the attempt having taken place at Mount Carmel Hospital, where he was sent to be seen by the official prison psychiatrist after exhibiting suicidal tendencies. A spokesperson for the Ministry of Home Affairs and National Security candidly admitted that a potential suicide case had been placed in isolation as punishment for attempting to escape: "Genovese was put in Division 6 for stricter surveillance after he escaped," the ministry official said in reply to questions from MaltaToday, adding that "inmates can [also] be housed in solitary confinement cells in order to quarantine them from infectious disease. Obviously they are not asked to follow the same regime used for solitary confinement purposes". It remains unclear, however, what form of psychiatric treatment is available within the prison complex itself. Even before the Genovese suicide case, prisoners' rights advocacy group Mid-Dlam ghad-Dawl (MDD) had drawn attention to the apparent lack of in-house psychiatry services, which were provided only at Mount Carmel. A similar complaint was made in 2011 by the Council of Europe's Committee for the Prevention of Torture (CPT), in a report specifically about the conditions of detention at CCF. "Following a brief visit to Mount Carmel Psychiatric Hospital, the CPT has expressed serious misgivings about the manner in which agitated or suicidal patients had on occasion been managed," the report noted. Questions surrounding the treatment of psychiatric cases in CCF have meanwhile been exacerbated by a recent administrative change that was not made public by the authorities. A ministry spokesman this week confirmed that the former prison psychiatrist, John Spiteri no longer occupies that role, but stressed that this did not affect the standards of psychiatric care available to CCF inmates. "John Spiteri's contract expired and was not renewed. He was replaced immediately by a psychiatrist who was provided by the pool of psychiatrists at Mount Carmel. The psychiatrist provided by Mount Carmel is available 24 hours, whenever A replacement psychiatrist for the Corradino Correctional Facility is likewise based at Mount Carmel, resulting in a situation whereby inmates needing psychiatric care still have to be physically transported to the Attard hospital needed." Spiteri's contract is understood to have expired last week. The replacement psychiatrist – who has not so far been named – is likewise based at Mount Carmel, resulting in a situation whereby inmates needing psychiatric care still have to be physically transported to the Attard hospital, with all the risks this prac- tice entails. Attempts to determine what impact this same situation had in the Genovese case have however been stalled on account of an ongoing magisterial inquiry. "No further comments can be made as there is a pending magisterial inquiry," the ministry official said. "However government will await the conclusions of the inquiry to assess whether there is any responsibility to be shouldered. The conclusions of the inquiry will be forwarded to the Prison Board Reform to establish whether there should be action to avoid future similar cases. rvassallo@mediatoday.com.mt Freeport seeking 'mutually beneficial outcome' on surprise €67 million bill MATTHEW VELLA THE government and the Malta Freeport Corporation are discussing how to dodge an unexpected €67 million 'hole' after global financial services firm UBS pulled the plug on a sway currency transaction. Freeport officials were taken by surprise with MaltaToday's revelation last week on Sunday that UBS will be terminating a swap transaction for a $250 million loan (€200 million), which will leave the Freeport with an imminent bill of $58 million (€43 million) from UBS. Earlier this week, a Freeport official commented that news of the cancellation of the UBS swap transaction "could have damaged the Freeport's interests with credit rating agencies". A government source has told MaltaToday that the calculations provided by UBS still need to be verified. "But UBS has the clear right to terminate the swap transaction, and it will be difficult for the Freeport to negotiate a different price. Even if the Freeport assigns the swap transaction to a third party bank, the terms would have to be negotiated among UBS, the Freeport and the bank. "We could ask UBS whether they are ready to reconsider the decision to terminate, but it seems unlikely that UBS is prepared to continue except on terms that would be less favourable than the present ones." In an official comment from the parliamentary secretary for competi- Freeport officials were taken by surprise with MaltaToday's revelation that UBS will be terminating a swap transaction for a $250 million loan (€200 million), which will leave the Freeport with an imminent bill of $58 million (€43 million) from UBS tiveness and economic growth, run by Edward Zammit-Lewis, the government said it was discussing the matter with the appropriate stakeholders "with a view to arriving at a mutually-beneficial outcome". "Discussions on this commerciallysensitive matter are at an initial stage. Nothing has been decided as yet." As things stand, the Freeport stands to lose $58 million bill and a further $32 million that the government al- ready guarantees on losses from the fluctuations between the dollar and the euro, which have been accumulating since 2004. UBS's decision to terminate the swap transaction came just one month after the Freeport's new board of directors posted their 2012 financials, in which it was clear that they did not foresee the possible termination. UBS is terminating the transaction because of a change in strategic direction after the EU demanded banks to increase their capital reserves. The swap transaction sees the Freeport paying UBS a sum in euros, for its dollar equivalent, so it pays annual interest in dollars to another bank for a $250 million loan it took out in 2004. The 'bullet loan' was used for development of the freeport and purchase of machinery, and the Freeport has to pay a 7.25% interest every year until its termination in 2028, and finally pay the $250 million capital in one fell swoop in the last year. Since the government pays a subvention to the Freeport in euros, in 2004 the corporation entered into the swap transaction with UBS: under its terms, the Freeport had to pay UBS €14 million every year in return for its equivalent in dollar at $18 million, which the Freeport would then use to pay the interest on the bullet loan. Finally in 2028, the Freeport would pay UBS €200 million in return for $250 million, which would go towards the repayment of the original capital loaned. By hedging against the US dollar, the Freeport was hoping it could make purported currency savings of €666,000 (Lm286,000) in annual interest payments. But the fluctuations in the USDeuro exchange rate have been so unfavourable to the Freeport, that the corporation has since 2004 already lost $14 million on currency losses alone. The government guarantees a total of $32 million on these interest losses. This brings the total losses on the currency rate swap to $90 million (€67 million). An alternative the Freeport has is to assign the swap transaction to a third party, but this must take place in agreement with UBS and might be difficult to achieve. mvella@mediatoday.com.mt