At Least €60 Million: Here’s How Much The Key Vitals Players Siphoned Off From Concession
Experts appointed by the inquiry noted that the key players in the alleged corruption were more “sophisticated” than usual.
The key players involved in the Vitals Global Healthcare (VGH) deal are believed to have made away with at least €60 million in state funds, according to the findings of a magisterial inquiry into the deal.
A total of 36 experts were engaged by the inquiring magistrate to help her get to the bottom of the deal. In their preliminary notes, they outline the amount of money believed to have passed on to the key players. The investigators noted that while they received the funds, they are likely to have passed on a considerable amount to respective associates of theirs who were also involved in the deal.
The report indicates a minimum of €60 million were siphoned off, adding however that it was in many cases not possible for them to fully trace the funds since they were transferred on to secretive jurisdictions like Switzerland and Dubai. Investigators were therefore unable to see to whom these funds were then passed on though they also noted that efforts were underway by Ali as early as July 2015 to open accounts for Schembri and Mizzi in Dubai.
Here’s the breakdown:
The report states that the payments of the key players wouldn’t have been possible without the “connivance of high-ranking ministers and the Office of the Prime Minister”. It further highlighted the close relationship between Keith Schembri and the Shaukat Ali family, which was described as “pivotal” to the success of the concession movement.
“The actions of each party have the hallmarks of corrupt practice and manipulation,” the report continued before revealing that Shaukat was actively setting up companies and bank accounts for Schembri and Konrad Mizzi in Dubai – an offshore secrecy jurisdiction – within days of the Concession being awarded.
More sophisticated corruption
It went on to state the key players in the inquiry employed teams of commercial lawyers to draw up binding contracts for consultancy and success fees, rather than just invoicing for “consultancy” as usually seen in cases of corruption and money laundering.
“The key players in this inquiry are more sophisticated. They employed teams of commercial lawyers to draw up binding contracts for consultancy and success fees. Substantial amounts of monies were expended on fees to such professionals,” reads the report.
The lawyers also drew up binding contracts whereby suppliers of goods and services to the hospitals agreed to invoice the key players’ companies who then added a percentage fee before billing the hospitals. Alternatively, the contracts allowed the key players’ companies to charge the hospitals an ongoing “arrangement” percentage based on the value of the supplied goods or services.
A number of payments related to these suspicious contracts were continued under Steward.
The inquiry also found that the €5 million used to fund the Gateway purchase of Technoline as well as the €5 million in success fees paid to the Ali family’s Mount Everest company stood out, even in the preliminary analysis of the investigation.
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