Prime Minister Robert Abela roped in his father, former President George Abela, to lead negotiations with Steward Health Care for a new concession for the state hospitals, according to sources close to the talks that have come forward.
Despite public declarations to the contrary by Prime Minister Abela and Deputy Prime Minister Chris Fearne, Abela spent over a year and a half – between January 2020 and August 2021 – trying to renegotiate the deal struck by his predecessor, disgraced former prime minister Joseph Muscat.
Abela had only been stopped at the eleventh hour by the State Advocate and the Director of Contracts, who advised him that what he was about to sign was illegal, according to the report by the Auditor General.
Sources who were close to the negotiations have confirmed with The Shift that while Abela himself took part in key meetings, he had also anointed his father to coordinate the negotiations between government ministries and Steward.
Abela senior attended a crucial meeting held at the Office of the Prime Minister on 27 August 2020, at which the new terms were discussed and agreed.
George Abela had led the government’s negotiating team that morning.
Present were also the prime minister’s personal assistant Ian Borg, Steward CEO Armin Ernst and his legal representation from the Camilleri Preziosi firm, Ron Galea Cavallazzi, and other key government officials.
George Abela informed the Steward side at that meeting that his son had decided to go ahead with a new concession agreement on totally new terms as opposed to the “legacy” terms that the prime minister is now claiming were the subject of discussions.
George Abela explained that the new concession would include two agreements.
The first was a Design and Build contract for the new renovation/rebuilding of the health facilities at the three hospitals.
The second was a separate Management Services Agreement to see the government handing hundreds of millions of euros to Steward.
The Shift is also aware that following that key meeting, another was held the same afternoon at Castille, during which the high-level points of a new Management Services Agreement were ironed out.
During that meeting, Health Minister Chris Fearne led the government’s negotiating team, while Ernst represented Steward. Gordon Cordina, now Bank of Valletta chairman, also attended the meeting.
Lawyers were then instructed to begin drafting the new agreements’ terms.
Subsequent discussions leading to a draft final new concession took place over the following weeks at all government levels. Most of these were led by then Finance Ministry Permanent Secretary Alfred Camilleri and Steward CEO Armin Ernst.
Ministers Fearne, Finance Minister Clyde Caruana, the Health Ministry’s Permanent Secretary, the Director of Contracts and various lawyers were all involved and kept Robert Abela abreast of the progress of negotiations.
PM downplays father’s role in talks
Asked to confirm that he appointed his father to a key negotiating role, the prime minister’s office acknowledged as much but tried to downplay his involvement.
“Dr George Abela did not coordinate any meetings and was only present for some initial meetings, which other officials also attended,” the Office of the Prime Minister told The Shift.
It also underlined that George Abela was not paid for his involvement in the meetings.
Abela’s office did not reply when asked why the prime minister previously denied he had tried to negotiate a new concession with Steward.
Key officials present during the negotiations who contacted The Shift described the prime minister’s and Minister Fearne’s declarations after the court ruling as “blatant lies”.
In January 2020, shortly after Abela was made prime minister, a meeting was held at Castille in which Joseph Muscat introduced Steward and its CEO Armin Ernst to Robert Abela. The possibility of striking a new deal was discussed at that meeting, The Shift is informed.
“Abela, Fearne and civil servants from all major ministries were vital in pushing forward talks with Steward to renegotiate the concession terms. They came up with these new terms themselves rather than them being a legacy from the Muscat administration,” one official who spoke to The Shift confirmed.
Prime Minister Robert Abela’s trail of negotiations with Steward can be downloaded here.
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A whole bunch of lawyers and consultants that came up with an agreement, only to be informed that it was illegal!!
The joke of the century.
I am sure that George Abela was paid for his services, and not only for this, since he has been visiting Castille every week from the very early days of his son?s appointment. And since every one is fully aware of the greedeness of this filthy lot, I am more than convinced that George is getting some remuneration from OPM. Dawn ma jaghmlu xejn ta xejn.
The lawyers that participated in those discussions should collect their warrants and burn them on the bonfire.
Il-poplu Malti li jaf jahseb… mhux dak aljinat bil-loveisland, ghandu problemi serji biex jaghraf ezattament min qed imexxi l-pajjiz. U l-pajjiz ghandu problemi akbar ghax donnu mhu qed imexxih hadd u kulhadd.
A tree is judged whether good or bad, by the fruit it produces.
I never liked George Abela being appointed President of Malta and listening to his first Speech from the Throne in 2013, proved my assessment of him, right.
I liked Lawrence Gonzi’s honesty and his good intentions, but he made a fatal mistake appointing George Abela as president.
Robert Abela is proving to be a chip of the old block.
Are Maltese politics becoming a family ran business, just like the traditional mafias?
Surrealistic nepotism to hire to a guy who should be enjoying his retirement. Hiring his father guarantees Abela a total secrecy.
There is no way to legalize a contractual relation stained by corruption. Why should we keep subcontractors suspected to have showered our politicians with substantial payments?
The GoV needs to go through EU tender process. Any other deal behind closed door can be attacked in Court, by any potential bidder.
A President Emeritus should never involve himself or herself in matters of great controversy especially where fraud and corruption are involved. It does not reflect well on George Abela.
No wonder there are no prosecutions brought in Malta.
You have a lawyer working for the firm, whose partner Dr.Louis de Gabriele is President of the Chamber of Advocates, and this other partner Dr Ron Galea Cavallazzi in the firm, which is already embroiled in other government scandals such as Nexia, Enemalta, Pilatus etc where their legal advice is questionable, was providing advice which was illegal.
When you throw into the mix an Attorney General and Commissioner of Police whose integrity has been called into question in the book about the scandalous Pilatus affair, where evidence was seemingly tampered with to protect the ? untouchables ?, how can anyone believe that the rule of law is in safe hounds?
Two of greedy pigs.
So the ex President George Abela is mixed up with his son Robert Abela and a company of Lawyers in this FRAUD. No wonder NOTHING Happens. No wonder Daphne Caruana Galizia was assassinated. It was only the Electrogas mess that was being exposed but also the Vitals Fraud was being hatched and the Egrant / Michelle Panama Laundry . These criminals running the country , could not afford leaving Daphne alive. The Police were silenced , the Army was silenced , the Media was taken over and Despite Muscat left no stone unturned to remove all traces of their crime , the Rats are now squeeking out the story. Even Legal Patrnerships seem to have been infiltrated. No wonder NOBODY in the Legal Powerhouses of Malta has opened their mouths. ?5000 million can go a hell of a long way to HELL.
Very well pointed out. The worrying factor is that some professional people in various sectors are either incompetent or deeply corrupt.
Ethics seems to be a forgotten principle in many of the professional elite.
L Akbar zball li ghamel Lawrence Gonzi kien li pogga li dan id dilettant President ta’ Malta
Post li ma kienx jixraqlu.
Lawrence Gonzi appointed his old Uni mate as president to get him out of the way in the running of the leadership of the Labour Party. In so doing he paved the way for Joseph Muscat. A fatal and foolish step indeed.
Ejja ghinni papa ghax qed neghreq gil hmieg Spoiled brat.
Remember him going on a charity mission from taxpayers money.Xalata jghidu ghamlu kollha l Palazz
Hard to find a true virgin in a whorehouse…
Incompetent ? I really don’t think so.
Just to think about that his father was once the President of the Republic of Malta makes the whole thing even more ‘inconvenient’, to put it politely.
Mela, the PM always keeps playing down matters that are ‘inconvenient’ to himself, because they tell the truth. The truth doesn’t fit into the usual PL ‘Pravda’ narrative.
What does the PN have to say about this consultancy?
It runs in the family, apparently. So we have an ex President involved in FRAUD?