Paola regional health centre medical equipment is on site, supplier says

The medical equipment for the Paola health hub has been delivered on-site, the company which was awarded the tender has said.

Technoline Ltd, through its legal representative, has told MaltaToday the company is “awaiting instructions from the client to continue installation, commissioning and affect end-user training where necessary”.

The Paola health hub, known as the Vincent Moran Health Centre, is intended to serve as a regional medical facility but the health authorities last month issued a termination notice to the contractor, citing delays in the completion of the works. At the time the termination notice was delivered construction work on the building was finished but no medical equipment had been installed. The health hub has not yet opened its doors to the public.

There is ongoing litigation between the health authorities and the consortium that won the tender – Ergon-Technoline JV. Technoline was last May implicated in the Vitals hospitals inquiry and is facing criminal charges to which it has pleaded not guilty.

Technoline’s legal representative has told MaltaToday that Technoline Ltd only has a 10% stake in the joint venture. “It has no controlling powers at all - with all decisions with respect to this project being taken by the lead partner, which is Ergon Projects Ltd,” he said.

The supply of medical devices for the same project was awarded to Technoline in October 2018, he added. This is a separate contract from the design and build contract awarded to the joint venture, albeit dependent on the completion of the premises in order to be able to deliver the equipment.

“The equipment for this project has been in storage in Malta since February 2023 – as per instructions from the Department of Health project team. Client representatives have physically inspected the equipment. Subsequently, Technoline Limited kept in storage the ordered equipment, whilst awaiting instructions from the client to execute delivery of the equipment to the Vincent Moran Medical Centre premises,” the firm’s legal representative said. “The equipment has now been delivered on-site in Paola, and currently Technoline Limited is in the stage of awaiting instructions from the client to continue installation, commissioning and affect end-user training where necessary.”

The company’s legal counsel said Technoline was precluded from commenting on ongoing court proceedings but noted that since May 2024, the Court has appointed an administrator with a remit to “safeguard the company’s assets and ensure Technoline remains a profitable business concern”.

“The company is therefore in a position of receiving funds and paying creditors and remunerate staff and recruit new employees. Technoline can operate as a business under the scrutiny and approval of the administrator, who reports periodically to the Court with regards to the ongoing operations of the company,” the legal representative said.

He added that the company has continued to trade unhindered

“Contrary to rumours and malicious communications being spread, Technoline Limited has not been, including since May 2024, in any way restricted or hindered in its trading activities,” the lawyer said.

The Technoline-Vitals case

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, which is distinct from the Paola health hub.

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.

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 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.

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.

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

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.

All companies and people in the Vitals corruption case are pleading not guilty to the charges.