Steward objects to court judgment, questions Malta’s rule of law

Steward Health Care have “strongly objected” to Friday’s court judgment, questioning Malta’s rule of law.

“Steward Health Care (SHC) Malta strongly objects to today’s court judgement on the hospitals’ concession agreement and questions again the rule of law in Malta, an EU member state,” it said in a reaction.

Earlier on Friday, the court annulled all hospital contracts awarded to Vitals and their heirs Steward, and ordered all property to be returned to government.

In its lengthy judgment, the court ruled, among other things, that Steward was negotiating in "bad faith" and described the company's machinations as "solely blackmail and unjustified enrichment".

SHC said it is considering its position and reserves the right to safeguard its interests in the appropriate legal fora and higher courts in Malta and internationally.

“SHC will pursue action contesting all allegations of wrongdoing raised in the court

judgement, allegations we consider outrageous and without merit,” it said. “From a preliminary review of the judgement, we believe there to be significant flaws in reasoning and award.”

It said the judgment goes far beyond the court’s remit, presents major concerns for the rule of law in Malta and has serious implications for the future of foreign investment in the country.

“While the legal, operational, and practical aspects of the consequences of the court’s judgement need to be assessed in detail and understood thoroughly, SHC remains committed to operate at all times in accordance with its highest professional standards and values,” Steward said. “SHC’s priority was and remains always the provision of optimal healthcare to the communities and patients we are entrusted to serve.”

Three public hospitals - Gozo, St Luke's and Karin Grech - were awarded on concession to Vitals in 2015 and when the obscure private company failed to live up to its commitments, the concession was transferred to Steward Healthcare.