Government paid VGH almost €50 million over two years

The government has given Vitals Global Healthcare (VGH) €49.5 million since the start of 2016, Health Minister Chris Fearne told Parliament yesterday evening.

Fearne, who was replying to a parliamentary question by PN MP Frederick Azzopardi, revealed that VGH was given €16 million in 2016, and €33.5 million in 2017.

VGH, which was entrusted with the provision of health care services through the Gozo, Karin Grech and St Luke’s hospitals, is in the process of selling its 30-year concession just 21 months into operations.

Sources within the health care industry have told The Malta Independent that VGH sold its 30year concession for the three state hospitals and Barts Medical School after experiencing significant financial difficulty, despite repeated assurances from the owners that funds would be injected into the company.

This newsroom has also been informed that while an agreement of sale is in place, financial negotiations are still on-going.

Reliable sources have also said that Minister Konrad Mizzi, who was the health minister until he was stripped of his portfolio after he was exposed as having an offshore account in Panama – and who is now the minister responsible for public-private partnerships – had been aware that VGH was in dire financial straits and consequently unable to meet its construction deadlines for almost an entire year.