Signature could save Frank Portelli from losing St Paul’s Bay property

The director of St Philip's Hospital, Frank Portelli, stands to lose his villa in St Paul's Bay if he fails to pay off debt and interest incurred when he bought medical equipment from Charles de Giorgio Ltd in 2008 for his hospital.

Together with the accumulated interest on debt, Portelli must pay the supplier a total of €220,527.

A garnishee order request by de Giorgio has put on the line Portelli's €349,406 villa and two garages in St Paul's Bay in order to pay off the debt.

Portelli has however requested that instead of issuing a garnishee order against the villa, one should be issued for his €240,000 apartment in St Paul's Bay.

However, government's decision to plough ahead with the €12 million lease-and-buy option for the private St Philip's Hospital may help save Portelli's property.

If the Nationalist government doesn't want to lose the deal with the Golden Shepherd Group the contract must be signed before the budget for 2013 is presented in parliament or risk losing it.

As things stand today - and which Opposition leader Joseph Muscat has repeatedly highlighted in the past days - Malta might go into 2013 without an approved budget having lost a majority vote in parliament.

Portelli - whose deal with government has sparked criticism by the Opposition, Independent MP Jeffrey Pullicino Orlando and Nationalist MP Franco Debono - said he was ready to add a new clause in the contract allowing a future government to terminate the contract without incurring any fines.

"There would be no need for the new government to give any justifications or pay penalties. All I would ask for is for a six-months' notice," Portelli told TVM yesterday evening.

In comments to MaltaToday this morning, Portelli said he didn't want a Labour government - if it were the case - to feel it was doing something wrong.

"I don't know whether they want to convert it into a hotel. All I know is they are against this public private partnership with St Philip's for reasons only known to them," he added.

Asked how much he would stand to lose from the new clause, Portelli said he was going to include it "because I am certain that everything was done above board".

He also added that it was "clear" that Labour didn't have any plans.

According to Portelli, the current deal with government would see Golden Shepherd Group receiving yearly payments.

Portelli added that he couldn't understand the sudden opposition by the Labour Party given that "three Labour MPs had expressed their astonishment over the delay".

He however refused to name the three MPs but added: "Joseph Muscat is not in control of his people ... he may have good intentions but the road to hell is paved with good intentions."