The Muscat problem: Labour ignoring ‘the elephant in the room’

Joseph Muscat’s name did not crop up during Labour’s parliamentary group meeting last week despite revelations on the hospitals deal that recast the former leader in a bad light. 

Muscat remains “the elephant in the room”, according to one minister. 

The only discussion linked to the latest bout of political upheaval was limited to how the government should react to what was described as the Opposition’s attempts to “destabilise the country with protests”, another minister told MaltaToday. 

Both ministers chose to remain anonymous to be able to speak liberally about internal matters. Several other MPs also spoke to to MaltaToday on condition of anonymity. 

A journalistic investigation last week revealed how Muscat had received payments for consultancy work from a Swiss firm that was previously called VGH Europe. The original company had been set up by one of the investors in Vitals Global Healthcare, the company entrusted to operate three State hospitals in a lucrative concession granted by the Muscat administration in 2015. 

The former prime minister denied wrongdoing and insisted his work was legitimate and fully documented. He also alleged that the attempts to link him to corruption were a frame-up and in a veiled message to the Labour grassroots insisted on MaltaToday’s camera that he would fight tooth and nail “even if he was alone”. 

Muscat’s words did not go unnoticed among his most avid supporters, who professed their unconditional support on social media. 

But the former PL leader’s words were also noted by people in Cabinet. A minister who felt uncomfortable talking about the issue pointed towards Muscat’s words as a sign of someone who is trying to stir up a hornet’s nest. 

“When I speak to diehard Labourites they argue that the revelations are nothing more than the Nationalists and Repubblika trying to pick on Joseph [Muscat] but I believe the sentiment is one of convenience rather than conviction,” the minister said. 

There is an ongoing magisterial inquiry into the hospitals concession and its outcome, according to most MPs, will have the biggest bearing on what the Labour Party should do about the ‘Muscat problem’. 

“Not to diminish the National Audit Office’s investigation, or the news reports published earlier this week, but the magisterial inquiry’s recommendations are the most significant,” another minister told MaltaToday. “I think the report holds the most weight, and its conclusions would determine the way forward.” 

Cutting ties with a former leader like Muscat, who propelled the party to 10 straight electoral victories, is too radical a decision to take now, an MP said. 

“Joseph is becoming an unnecessary problem to the party, but it needs to make a strategic and calculated political decision; acting now is premature,” he added. 

The media revelations came hot on the heels of a third damning report by the National Audit Office that accused former minister Konrad Mizzi of misleading Cabinet on the side agreement he reached with Steward Health Care that would see the government pay the company €100 million if a court annulled the contract. 

The NAO also commented critically on the fact that Mizzi continued to negotiate the contractual arrangements with Steward despite not being health minister. 

The Abela administration is dealing with the aftermath of this scandalous contract that was annulled by the court last February. The decision is being appealed by Steward.

Prime Minister frustrated 

Robert Abela said he will not say or do anything to influence the ongoing magisterial inquiry into the hospitals deal

Abela’s only comment so far on the latest developments implicating his predecessor, was that he will not say or do anything to influence the ongoing investigation. 

But an MP said the Prime Minister is frustrated with the situation. 

“Every three months or so, he must fix a situation created under Muscat’s leadership. Since 2020, he just can’t catch a break,” he said in a tone indicative of frustration. “Robert Abela is obviously not happy with the situation, but his words carry weight, and it’s not that straight forward for him to make a public statement without proper consideration.” 

Another MP, who was elected for the first time to parliament in the last general election expressed a similar sentiment. “This is not our doing, and we end up having to reply to the media and civil society groups for things we had nothing to do with.” 

Muscat’s reaction to the news reports and his request to recuse the magistrate overseeing the inquiry, “are an admission of guilt”, the MP insisted. “He is clearly trying to save himself. The subtle digs on his Facebook posts, the recusal of the magistrate – he is playing with supporters’ sentiments.” 

Others explained how Muscat is still highly regarded among the party diehards, and Abela’s challenge lies in convincing them that “it’s time to move on”. 

“You must take into context what Joseph did for the party, and the policies he championed. Despite that, I do feel that Abela is slowly, but surely, convincing the diehards to move on but it’s no easy task,” the MP added.  

But the feedback from supporters also comes in the form of criticism at what they feel is the party’s silence in the face of PN protests. 

“The main concern among supporters who have spoken to me is not that the party might lose some electoral advantage or public support, but rather that we are allowing them [the PN] to hit out at us without a proper reaction,” one MP said. 

Party officials are aware of the conflicted sentiment among the grassroots and are constantly appealing for calm. 

A source within the party insisted the outcome of the hospitals inquiry is a matter of concern to the administration even though the general sentiment in the country remains largely aloof from the storm raised by the media. 

“People talk to us about ordinary problems, but we know that the inquiry has the potential of raising problems especially if it leads to Joseph Muscat being charged, which is why we constantly appeal for calm and insist on looking towards the future,” a senior party official told MaltaToday.