Tribunal slams government CEO on secret elderly homes contracts

The Shift won a significant challenge in favour of transparency and accountability as the Information and Data Protection Appeals Tribunal upheld its request for a copy of the multi-million-euro direct contracts the government is awarding for the lease of beds at private homes for the elderly.

Two years after the Freedom of Information request was filed, the Tribunal condemned the government for being economical with the truth, ordering the Health and Active Ageing Ministry, led by Jo Etienne Abela, to make the multiple contracts, costing taxpayers over €50 million a year, available to The Shift.

In a strongly worded decision, Tribunal Chair Anna Mallia slammed the government CEO behind these direct orders, Renzo Degabriele, for trying to keep important information away from the public, saying the CEO’s arguments were not credible.

The Tribunal referred in particular to the Active Ageing CEO’s declarations, in which Degabriele said that if he had to release these documents, he would not be able to negotiate the best possible price and value for money for taxpayers.

Slamming Degabriele’s argument, the Tribunal Chair said that if the CEO wanted to be credible, he should refrain from signing contracts through direct orders and instead issue tenders so that “everyone could compete” and the government could have the best possible service with a competitive price.

“This is not happening as the CEO is insisting on direct orders,” the Tribunal noted.

The Shift’s request was made in 2022 following an investigation which found that the government was not following any established rules when entering into multi-million-euro contracts with the owners of private homes, primarily well-connected development contractors.

All contracts for the lease of long-term beds for the elderly are signed by Degabriele in complete secrecy, and rates and conditions are negotiated directly between ministry officials and the private owners of individual residences. This has resulted in a hotchpotch of conditions and contracts.

According to an NAO audit, the government is paying €120 a day for each bed in one home while another receives just €65 a day for the same service.

Also, while the budget allocated to this scheme was somewhat restricted until a few years ago – at around €9 million in 2016 – it has now ballooned to over €50 million a year, with the government buying most of the beds provided by the private sector.

In certain cases, such as the homes controlled by developer Paul Attard of the former GAP contractors, the government ‘buys’ all the beds at his residences, with millions paid every year through direct orders.

While the private homes enter into a deal to lease their beds, the ministry chooses who on the waiting list is selected to be given a bed and at which home.

The Tribunal ordered the ministry and Degabriele to make the contracts available for scrutiny in 20 days.