Paola health hub is ready but its doors remain shut as photos show it’s missing the medical equipment

Updated on 30 August with Technoline comments

The Vincent Moran regional health hub in Paola is ready but images disseminated on social media show it is missing one crucial element – functional medical equipment and beds.

One of the clinical areas in the regional health hub (Photo: Dione Borg/Facebook)

One of the waiting areas (Photo: Dione Borg/Facebook)

The images taken by an unidentified source over the past few days were shared with NET TV journalist Dione Borg, who disseminated them on his Facebook wall on Thursday.

The series of images and short videos showing several clinical rooms, corridors and waiting areas suggest that works on the regional health hub are completed. However, despite having fully functional electrical and water connections, the building seems to lack the medical equipment, which was supposed to have been supplied by Technoline.

In instances where equipment is visible, this has not been formally certified and thus cannot be accepted by the health authorities.

This means the regional health centre, named after Vincent Moran, the Paola-born doctor who served as health minister in past Labour administrations, cannot yet open its doors to the public.

The latest revelations come on the back of news that government is mulling whether to terminate the contract after a series of missed deadlines.

Audit firm Grant Thornton has been tasked with analysing the repercussions of terminating the contract.

Technoline under criminal spotlight

The Paola regional hub has been mired in controversy with the involvement of corruption-hit firm Technoline currently facing criminal charges (Photo: Dione Borg/Facebook)

Technoline is one of the companies under the spotlight in the criminal cases instituted against several individuals and firms involved in the Vitals hospitals contract. The firm and its owners have been hit by a court-imposed freezing order.

The magisterial inquiry into the hospitals deal flagged Technoline as one of the vehicles by which former minister Konrad Mizzi, ex-OPM chief of staff Keith Schembri and their business associates, sought to acquire kickbacks from the Vitals deal.

Indeed, Technoline had been acquired by one of its employees – Ivan Vassallo – using a private loan supplied by Vitals from funds passed on by the government as part of the hospitals deal.

The main entrance and waiting area at the Paola regional hub (Photo: Dione Borg/Facebook)

READ ALSO: Vitals cash funded Technoline, with Schembri-Mizzi as intended owners

However, the magisterial inquiry also cast a spotlight on how Vassallo, Schembri, Mizzi and others also sought to take kickbacks from the Paola health centre tender.

The Paola regional health hub was built on part of what was known as the Pace-Grasso football ground (Photo: DOI)

The tender was mired in controversy after it was originally awarded to SP BB International JV, a consortium that included Ray Vella & Co Ltd, Pantalesco and Shapoorji.

But three firms, including Ergon-Technoline JV, objected to the tender and argued that their exclusion from the tender was illegal. They pointed out that the selected bidder put forward an offer that was €3.6 million higher than the cheapest one.

The parking area next to the Paola regional health hub is empty since the centre cannot yet open its doors to the public (Photo: Dione Borg/Facebook)

The contract was eventually revoked and given to Ergon-Technoline JV. It is understood that Technoline was responsible for supplying the medical equipment.

The magisterial inquiry uncovered how Ivan Vassallo had drafted an agreement whereby Eurybates – a company that would benefit Schembri, Mizzi, Vassallo, Pierre Sladden and Adrian Hillman – would help Ergon in submitting a tender to design and build the Paola Primary Healthcare Regional Hub.

READ ALSO: A hand in every cookie jar: The projects Schembri and Mizzi sought to profit on

A Greek consortium, Salfo-Ado JV, also entered into an agreement with Eurybates to provide business information services. This consortium went on to win a tender for project management and technical supervisory services for the Paola regional healthcare hub.

No money was identified to have flown into Eurybates, but a parallel company called Encore Trading Ltd – under the control of Ivan Vassallo and Pierre Sladden as associates of Keith Schembri – received almost €100,000 in October 2019. Investigators suspect these payments were a kickback for the Paola Regional Hub tender.

Technoline says medical equipment is in Malta and awaiting order to install

Meanwhile, the legal representative of Technoline Ltd has told MaltaToday that the company "only has a 10% participation in the consortium" that was awarded the Paola hub project. "This joint venture agreement furthermore does not give management nor control to my client," the lawyer clarified.

He claimed Technoline was only provided with written instructions in the form of equipment approval forms in late 2022 and the company proceeded to place the relative orders for the requested medical equipment. The company payed for the equipment from its own funds and banking facilities.

Furthermore, the company said all equipment arrived in Malta according to the promised delivery dates. "The said equipment has been in safe storage since January and February 2023 at Express Trailers. A fact that has been confirmed, verified and physically inspected by staff from Mater Dei Hospital and also of the Foundation for Medical Services."

The company's legal representative said the target date was in line with the aim to "commence delivery and installation in situ during February/March 2023".

However, the lawyer claims that for reasons beyond Technoline’s control, the project was delayed and as a result "no instructions to proceed were issued in 2023 to Technoline to commence delivery and installation" of the equipment.

In 2024, Technoline was asked to deliver some consumables and do some minor equipment installations such as sinks, washers and theatre lights. "All were promptly delivered, installed and commissioned to the client’s satisfaction," the company said.

"Considering that the rest of the remaining medical equipment is of high value and very sensitive, the site has to 100% ready for installation and so certified by the site Project Managers before installation may begin. During this month of August 2024, my client has received instructions from the Project Managers to deliver and install equipment on level 11 (out of 6 Levels) only. This is set to start on Monday 2 September," the legal representative said.