Updated | Government wins arbitration case brought by Steward Healthcare

Updated at 8:39pm with Steward reaction

The government has won an emergency arbitration proceeding brought to the International Chamber of Commerce by Steward Healthcare over the terminated concession to run three local hospitals.

According to a short government statement, the Emergency Arbitrator decided in favour of the Maltese government and ordered Steward to bear the government’s costs in the proceedings.

The statement also says that the matter concerns the terminated concession, and that the government cannot comment further on pending legal proceedings.

In February, a local court annulled all contracts awarded to Steward and its concession predecessors Vitals Global Healthcare, in a damning ruling suggesting fraudulent intent in the deal.

A month later, Steward announced that it will be terminating the services concession agreement with government on its own accord, citing breaches of commercial agreements.

The move came just 24 hours after Steward appealed the court ruling that annulled the concession agreement.

The government went on to inform Steward that it will take over the hospitals, in effect rejecting Steward’s own termination of the contract and instead moved to kick them out on its own terms.

Steward recently filed a formal complaint with the European Commission claiming that the Maltese judiciary and government breached EU law.

The company is also requesting a preliminary ruling by the European Court of Justice as part of ongoing court proceedings.

In reaction to the government's statement, Steward Health Care Malta (SHCM) blamed the press for reporting that the government sent a termination letter to the company and then stepped in to run the concession. 

"Neither of these statements are true. This article forms part of a deliberate and calculated manipulation of the narrative in the media by the Government of Malta."

It insisted that Steward submitted a termination notice to the government "due to non-rectifiable defaults on the government's part".

"Today's reporting further proves why SHCM felt unable to continue to operate in Malta, where institutions are clearly aligned against foreign investors," it said.