Vitals Funded Technoline, With Ivan Vassallo Acting As ‘Puppet’ And Keith Schembri And Konrad Mizzi as Intended Owners
Magisterial Inquiry into Vitals scandals confirms Lovin Malta investigation into suspicious sale of medical equipment supplier
A local medical supplies company that was purchased entirely by one of its employees under suspicious conditions was likely intended to be owned, at least in part, by former OPM chief of staff Keith Schembri and former Minister Konrad Mizzi, according to the findings of a magisterial inquiry into the Vitals Global Healthcare concession.
Back in 2018, Lovin Malta had raised questions about the sale of the company, which was described as suspicious by several industry insiders who spoke to the newsroom.
The sources said that the local medical supplier Technoline had been purchased by Vassallo, then a manager at the company, through a loan provided to him by the owners of VGH via the company Gateway Solution.
The investigators identify Vassallo as being a “frontman” for Shaukat Ali, one of the main investors and key players in the complex web of corruption uncovered. Vassallo is also identified as being “not only closely tied to the Ali family but also to Schembri and Mizzi”.
The findings suggest that Schembri and Mizzi, together with other associates, from as early as July 2015 intended to be shareholders of the Gateway Solutions. Discussions about the acquisition of Technoline appear to also have started at this time.
It appears that VGH paid Gateway Solutions roughly €5 million between February and April 2017 with all funds coming directly from the government concession. In fact, throughout the inquiry report the investigators repeatedly note that very little if no money used in the many deals had originated from any of the investors or key players and was exclusively from concession funds.
Investigators believe the €5 million received by Gateway amounted to embezzlement of state funds for the benefit of Schembri, Mizzi and their associates.
The year Technoline was purchased, its annual turnover increased by 20%, thanks to a new exclusive supply agreement signed with VGH.