Malta deputy PM resigns amid healthcare scandal

Malta's Deputy Prime Minister Chris Fearne resigned on Friday, May 10, due to a corruption scandal involving a 2015 government concession for managing three state hospitals. Fearne, who was the junior health minister at the time, denied any wrongdoing and stepped down in the national interest. He also declined to be proposed as the Maltese member of the next European Commission. The attorney general later charged Fearne and other officials with fraud and misappropriation. The corruption scandal began when the government granted the hospital management deal to a previously unknown healthcare group called Vitals Global Healthcare. An audit report revealed that Fearne was excluded from the negotiations with Vitals before the deal. Despite the charges, Prime Minister Robert Abela expressed confidence in Fearne's integrity and urged him to reconsider his resignation. The scandal also implicated former Prime Minister Joseph Muscat, his chief of staff Keith Schembri, former Health Minister Konrad Mizzi, and Central Bank Governor Edward Scicluna. They face charges including money laundering, bribery, and setting up a criminal association. All the accused parties have denied any wrongdoing. The charges stemmed from a four-year inquiry initiated by the rule of law group Repubblika. The scandal involved the privatization of the state hospitals through a deal between the Maltese government and Vitals Global Healthcare. The investigation concluded that the deal was fraudulent and against the national interest. Despite the charges, diplomats confirmed that Fearne remains Malta's top choice for the EU commissioner position. Fearne maintained his innocence, stating that he always fulfilled his duties with integrity. The National Audit Office of Malta also cleared Fearne's involvement in the concession deal, highlighting the concerning dynamics between government officials during the negotiation process. The scandal unfolded when Vitals Global Healthcare sold the concession to Steward Health Care, a US-based hospital operator, which later declared bankruptcy. A court ruling in 2023 annulled the original deal, citing fraudulent practices and actions against the national interest by the government officials involved.