Financial Crime World

Malta Embarrassment: Former PM and Officials Accused of Embezzlement

A shocking turn of events has unfolded in Malta, with its former Prime Minister Joseph Muscat, his chief of staff Keith Schembri, and former minister Konrad Mizzi named as suspects in a massive embezzlement scandal involving a controversial public-private partnership for hospitals.

The Scandal Unfolds

According to sources, the trio is accused of receiving kickbacks worth over half a million euros from Vitals Global Healthcare, which was awarded a contract to run three state hospitals despite failing to deliver on its promises. The deal was dubbed “fraudulent” by a court in 2023, and investigators believe that Muscat may have received illicit payments.

Ongoing Investigation

The developments come as no surprise to many who have been following the scandal, which has been ongoing for years. In fact, a magisterial inquiry concluded last week, handing over 78 boxes of evidence to Attorney General Victoria Buttigieg, who will now decide who faces criminal charges.

Key Takeaways

  • The trio is accused of receiving kickbacks worth over half a million euros from Vitals Global Healthcare
  • The deal was deemed “fraudulent” by a court in 2023
  • Investigators believe Muscat may have received illicit payments

Reaction from the Political Front

Muscat has been preparing for the outcome and has accused the magistrate leading the inquiry, Gabriella Vella, of waging war against him and the Labour Party. “The institutions are working against Labourites,” Muscat claimed.

Meanwhile, opposition leader Bernard Grech called for justice to take its course, regardless of whether it involves a former prime minister or an ordinary citizen. Schembri and Mizzi have yet to comment publicly on the news.

Not the First Scandal

This is not the first scandal involving Muscat, Mizzi, and Schembri. They were also implicated in the Electrogas scandal, dubbed “sinister” by a Parliamentary Committee of the Council of Europe inquiry. The trio stands accused of receiving kickbacks from Azerbaijan’s state energy company SOCAR, which was awarded a contract to supply LNG to Malta at twice the market rate.

EU Funding Concerns

The EU has been funding projects linked to the Electrogas deal despite concerns over corruption and money laundering. Muscat maintains his innocence in both scandals, but many are left wondering how far the rot goes in Malta’s government.

Call for Transparency

As the country waits with bated breath for the outcome of the investigation, one thing is certain: the people of Malta deserve transparency and accountability from their leaders. Anything less would be a betrayal of public trust.