Steward Health Care Files For Bankruptcy In The US
Steward Health Care System LLC, the company involved in the fraudulent privatisation of three public hospitals in Malta, has officially filed for bankruptcy in the United States.
Steward Health sought Chapter 11 protection in the Southern District Court of Texas and listed assets and liabilities of $1 billion to $10 billion.
The bankruptcy petition allows the Massachusetts-based firm to keep operating while it seeks approval for a restructuring plan.
Steward CEO Ralph de la Torre said that a “primary factor” in its decision to file for bankruptcy was “Steward continuing to face challenges created by insufficient reimbursement by government payors as a result of decreasing reimbursement rates”.
Steward currently runs more than 30 hospitals across the US.
Steward in 2017 took over the concession that had awarded St Luke’s Hospital, Karin Grech Hospital and Gozo General Hospital to Vitals Global Healthcare.
The Maltese courts annulled the concession last year, following a case instituted by PN MP Adrian Delia, after ruling that fraud was committed during three stages of the process – before the contract was signed, when it was being negotiated and when Steward took over. Judge Francesco Depasquale ordered that the St Luke’s, Karin Grech and Gozo General Hospitals be returned to the government.
In the meantime, Repubblika had requested a magisterial inquiry into the deal some four and a half years ago and this was concluded this week, causing political turbulence on the island.
The Attorney General released a list of money laundering suspects named in the inquiry, including former prime minister Joseph Muscat.
Meanwhile, around an hour ago, Repubblika’s lawyer Jason Azzopardi revealed that Central Bank Governor and former Finance Minister Edward Scicluna is facing charges in connection with the Vitals inquiry.
In an earlier post, he said that Muscat, former minister Konrad Mizzi, and former OPM chief of staff Keith Schembri are among the people facing charges.
Just moments ago, Muscat came out strongly against the way charges are being issued in connection with the Vitals magisterial inquiry.
“Several lawyers have told me that, for the first time in their living memories, people will get charged in court without being granted the basic right to give a statement in advance,” Muscat said.
Meanwhile, current Prime Minister Robert Abela has questioned the credibility of the inquiring magistrate by insinuating that the conclusion of the inquiry was timed to disrupt the European Parliament and local council elections.
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