[WATCH] Fearne: Steward profits show claims of ‘unbankable’ deal are untrue

Deputy Prime Minister Chris Fearne has said Steward’s claims of the hospital concession not being “bankable” are no longer true after they turned a profit.

“The accounts they presented showed the concession is indeed bankable, because they turned a profit, and so this week I requested the permanent secretary write to Steward and told them that now that the concession can indeed turn a profit,” he said.

The Health Minister fielded questions from the media after a press conference announcing the ban on gay men donating blood has been lifted.

Nationalist MP Adrian Delia’s case, asking the courts to to declare the agreement between the government of Malta and VGH – since then superseded by American company Steward – null and void, in view of the fact that Steward had failed to adhere to the obligations laid down in the contract will be ending in October.

Through a side letter signed by former minister Konrad Mizzi, the American company eligible for a €100 million contractual pay-out should the court cancel the deal. Asked on the pay-out, Fearne said the clause will be contested by government.

He also made reference to “recent developments” surrounding the deal. “Steward in the last three years have repeatedly said that the main reason holding them from carrying out investment was that in their opinion, the concession they entered was not 'bankable' in their own words, because it could not turn a profit, and they requested government revise that concession, to give them more money.”

Fearne said the accounts published by the company in recent months have shown that it is indeed turning a profit.

“The accounts they presented showed the concession is indeed bankable, because they turned a profit, and so this week I requested the permanent secretary write to Steward and tell them now that the concession can indeed turn a profit, they should provide timelines on how they will be carrying out the financing, and how they will be keeping up with the obligations of the concession,” he said.