Nationalist Party Challenges Government's 'Victory' Claim in Hospitals Deal Arbitration

PN Leader Criticizes Government's Stance

Nationalist Party (PN) leader Alex Borg has strongly challenged the Maltese government's assertion of victory following the International Chamber of Commerce (ICC) arbitration ruling on the controversial hospitals deal. Speaking on Sunday, Borg characterized the government's claims as 'spin,' arguing that Malta has expended over €900 million on the concession without receiving any substantial return in healthcare infrastructure or services. He pledged that the PN would ensure parliamentary debate on the ICC decision to guarantee transparency and accountability.

Arbitration Outcome and Disputed Figures

The ICC tribunal, in its ruling issued on November 3, 2025, declared the 2015 concession agreements for the management of three Maltese hospitals—St Luke's Hospital, Gozo General Hospital, and Karin Grech Rehabilitation Hospital—void from their inception. This means the public-private partnership never had legal effect. The tribunal rejected claims for contractual damages and termination payments by Steward Health Care, which had taken over the concession from Vitals Global Healthcare (VGH). Crucially, it also dismissed the Maltese government's bid to be compensated by Steward.

According to the tribunal's findings, the Maltese government received approximately €889.4 million worth of services from Steward, while paying the company around €884.6 million. This resulted in a net shortfall of €4.78 million that Malta is required to pay Steward. Despite this, Borg highlighted that the government had initially sought to recover €488 million from Steward during the arbitration, a claim that was ultimately unsuccessful.

Background of the Controversial Deal

The hospitals concession has been a subject of intense scrutiny and controversy in Malta since its inception. In February 2023, Maltese courts delivered a landmark judgment declaring the deal 'fraudulent' and ordering the return of the facilities to the state. This ruling, initiated by former Opposition leader and PN MP Adrian Delia, was pivotal in paving the way for the international arbitration. The tribunal itself emphasized that the 'primary victims' of the concession were the Maltese people.

Government's Defense and PN's Counter-Arguments

Prime Minister Robert Abela and other government officials have maintained that Malta 'won' the arbitration, asserting that the ruling confirmed no fraud in the deal and that the state received services for 'every cent' paid. However, Borg and the PN argue that the lack of new hospitals or significant investment in existing facilities, despite the substantial expenditure, contradicts the government's narrative. The PN leader questioned the government's defense of the deal, particularly given the Maltese courts' findings of fraud and collusion.

Call for Accountability and Future Vision

Borg reiterated the PN's commitment to holding the government accountable for the funds spent and the perceived lack of results. He stressed that the Maltese public could observe the absence of promised improvements in healthcare infrastructure. The PN has pledged that a future Nationalist government would prioritize building new hospitals in Malta and Gozo, aiming to deliver tangible improvements to the healthcare sector.