Malta's largest-ever corruption prosecution: former Prime Minister Joseph Muscat, two ex-ministers, and a network of officials and accountants face criminal charges over the alleged fraudulent privatisation of three state hospitals. Assets of €191.5 million have been frozen.
Criminal Court of Malta — ongoing proceedings · Judge Dr Edwina Grima LLD (Criminal Court); Magistrate Dr Rachel Montebello LLD (inquiry phase) · 28 May 2024 (asset freeze); ongoing
In 2016 the Maltese government, then led by Prime Minister Joseph Muscat, awarded a 30-year concession to run three state hospitals — St Luke's Hospital, Karin Grech Hospital, and Gozo General Hospital — to Vitals Global Healthcare (VGH), a newly incorporated company with no prior healthcare track record. The deal was structured to bring hundreds of millions in investment into the hospitals. Critics raised alarm immediately: VGH had no evident financial backing, and the award process bypassed standard procurement rules. In 2018 VGH transferred the concession to Steward Health Care, a US private hospital operator. The promised investments never materialised. In 2019 the government cancelled Steward's contract. In 2020 civil proceedings challenged the deal. In 2022 the Civil Court delivered a devastating judgment declaring the entire concession agreement null and void — describing it as a fraud 'that shocked the conscience of the court'. The court found the hospitals had been handed to a company that was never capable of delivering what it promised, and that the state had been systematically misled. Criminal investigations followed. On 28 May 2024, Magistrate Dr Rachel Montebello issued a seizing and freezing order covering assets worth €191,542,359 belonging to the accused and their associated companies. The order was issued under the Proceeds of Crime Act and encompasses 14 individuals and 9 companies. The accused include former Prime Minister Joseph Muscat, former Health and Energy Minister Konrad Mizzi, former Office of the Prime Minister chief of staff Keith Schembri, and accountants Brian Tonna and Karl Cini of Nexia BT — the firm that set up secret Panama companies for Mizzi and Schembri (revealed in the 2016 Panama Papers). Former Times of Malta managing director Adrian Hillman is also among those charged. All accused are presumed innocent and have denied wrongdoing. The criminal proceedings remain ongoing as of 2026.
No verdict yet — criminal proceedings ongoing. Asset freeze of €191,542,359 in place against 14 individuals and 9 companies under the Proceeds of Crime Act Cap. 621.
Proceeds of Crime Act Cap. 621 — asset freezing; Prevention of Money Laundering Act Cap. 373; Criminal Code Cap. 9 — corruption and fraud; Public Procurement Regulations