Malta’s Ex-Leader and Others Plead Not Guilty in Hospital Fraud Scandal

May 28, 2024

Malta’s former prime minister, Joseph Muscat, and other former top officials pleaded not guilty in court Tuesday to a hospital corruption scandal roiling the Mediterranean island nation as it prepares for European Parliament elections.

A Controversial Agreement

In 2015, Malta signed an agreement to transfer the management of three of its hospitals to a private company. This concessionaire changed in 2018. In February 2023, a court annulled the concession, citing fraud, in a case filed by a former opposition leader. The court ruling led to a significant drop in popular support for the governing Labour Party. The Court of Appeal confirmed this decision in October, noting evidence of collusion between the parties involved.

Charges and Pleas

A magisterial inquiry into the hospital agreement was completed in April. Soon after, charges, including bribery, were filed in court against individuals involved in the deal. Among the first to face the court were Muscat, his former chief of staff Keith Schembri, and former minister Konrad Mizzi. At a pre-trial hearing on Tuesday, they pleaded not guilty to bribery and money laundering charges.

Political Implications

The scandal has dominated Maltese politics as the European Parliament election nears. Prime Minister Robert Abela, also a member of the Labour Party, questioned the timing of the inquiry’s conclusion, noting that “after four and a half years, it concluded precisely with the opening for the candidacy for the European Parliament elections.”

Abela also raised questions about the inquiry process, such as whether the accused were allowed to be heard by investigators. His comments sparked an outcry, with the opposition describing his statements as attacks on the judiciary.

The Labour Party’s Future

The Labour Party has dominated elections in the small country since 2013, winning each vote by a landslide. In the most recent general election in 2022, the Labour Party won 162,707 votes to the Nationalist Party’s 123,233. However, the events unfolding since last year have seen the party’s popularity fall.

Malta holds six seats in the European Parliament. Four are occupied by Labour Party members and two by Nationalist Party members. One of the latter seats is held by Roberta Metsola, president of the European Parliament. While the Labour Party is still expected to get the majority of votes, that might not be enough to ensure that it keeps hold of all four of its seats, and the Nationalist Party is hoping to attain a third seat in the election.

The hospital scandal in Malta has shaken local politics and could have significant repercussions in the upcoming European Parliament elections. With prominent figures facing serious charges, the situation remains tense and highly interesting to Maltese citizens and the international community.

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