Hospital Privatization Scandal Rocks Malta’s Political Landscape
In a significant development that has sent shockwaves through Malta’s political establishment, court documents have revealed that Malta’s attorney general has filed charges of fraud and misappropriation of funds against two high-profile figures: Central Bank of Malta Governor Edward Scicluna and Deputy Prime Minister Chris Fearne. This action is part of an ongoing investigation into a contentious hospital privatisation deal from 2015.
The scandal has also ensnared Former Prime Minister Joseph Muscat, his chief of staff, and a former health minister, who are facing more severe allegations. These charges include money laundering, corruption, bribery, trading in influence, and setting up a criminal association. All parties involved have denied the accusations laid against them.
The inquiry, which lasted four years, was initiated by the opposition Nationalist Party. It scrutinized a deal that granted the management of three state hospitals to an inexperienced group. The 30-year contract, initially valued at around 4 billion euros, was later invalidated by Malta’s highest court due to findings of fraud.
At the time of the controversial deal, Scicluna served as the finance minister while Fearne held the position of a junior health minister. Despite the charges, Fearne has confidently proclaimed his innocence, expecting the court to vindicate him fully. Scicluna, a member of the European Central Bank’s Governing Council, has remained silent on the current allegations but has previously refuted any misconduct.
The scandal has further deepened with revelations linking Muscat and his chief of staff to businessman Yorgen Fenech, who is implicated in the murder of journalist Daphne Caruana Galizia. However, Muscat has not been implicated in the murder case itself.
Prime Minister Robert Abela has expressed criticism over the inquiry’s process and has stood by Fearne, affirming his integrity and retaining him in office. Nonetheless, Abela has yet to confirm if he will proceed with nominating Fearne as Malta’s next European Commissioner.
As the island nation awaits the formal court arraignments where the accused will enter their pleas, this scandal continues to cast a long shadow over Malta’s political and financial institutions.
