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Government Report Says VGH Deal Did Not Meet Required Maltese Standards, Adrian Delia Reveals

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A government audit report into the Vitals Global Healthcare’s plan to manage three state hospitals found that the proposal did not meet the required standards, MP and PN candidate Adrian Delia has revealed.

Speaking at a PN rally, Delia detailed how earlier in the day the government was set to present “a star witness” in his case to scrap the controversial concession and return the hospitals back into the state’s hands.

“A document was submitted to the courts by the former CEO fo Malta Industrial Parks, now known as INDIS, which the government said would prove that our claims were wrong. The document, which was just six pages, said that the report and underlying financial data provided by the successful bidder did not constitute an audit or carried out in accordance with auditing or standard practices generally expected in Malta,” Delia said, quoting from the document.

“They should not be relied upon as it has been carried out with those standards and practices.”

Delia, while serving as PN leader, had opened up a case to get the deal scrapped amid mounting financial debt and corruption allegations. VGH has since been replaced by Steward Healthcare, with the latter’s President describing the deal as “negligent” and calling out the government for failing to ensure it delivers on its obligations.

“The document that this man produced, the chief of Indis, to keep his mind at ease that your hospitals were being handed over to foreigners who have no experience running hospitals, practically says that it had nothing to rely on,” he said.

VGH had first been granted a controversial concession for the Gozo General Hospital, St Luke’s Hospital and Karin Grech Rehabilitation Hospital.

It has been revealed that the government signed a Memorandum of Understanding months before a request for proposals was even announced. It has been mired in corruption claims and is currently subject to a magisterial inquiry.

The company was forced to sell off its operations to Steward Health Care just 21 months after starting amid growing financial debt, which stood at €36 million by the end of 2017. Its CEO, Ram Tumuluri, reportedly still made off with a €5 million bonus.

An un-redacted contract revealed that taxpayers were paying VGH around €188,000 a day (€70 million a year) to provide hospital beds to the state, €1.2 million a year for the Barts medical school and a further €1 million for a helicopter service.

The deal is still subject to a magisterial inquiry with police even raiding the house of former Prime Minister Joseph Muscat recently.

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