€20 million freeze imposed on former Steward Malta CEO

The former CEO of Vitals Global Healthcare (VGH) and later Steward Malta, Armin Ernst, was slapped with a freezing order of €20 million in connection with criminal charges brought against him last month.

Following a decree by Magistrate Rachel Montebello, the Assets Recovery Bureau notified all financial institutions and related parties that Ernst cannot transfer any of his possessions, including property he owns in Tigne’, Sliema, without the Court’s permission.

Last month, Ernst, 63, a German national living in the United States, was arraigned in Court and accused of committing various crimes connected to the fraudulent deal between the Labour Government and VGH, and later Steward.

Among the accusations are charges of misappropriation of funds, money laundering, conspiracy, bribery, and trading in influence.

Ernst is pleading not guilty.

His charges reflect the findings of a magisterial inquiry, which also led to the prosecution of the main alleged perpetrators of the hospitals’ scandal, including disgraced former prime minister Joseph Muscat, former Minister Konrad Mizzi, and former OPM chief of staff Keith Schembri.

Ernst was the main interlocutor between the government and VGH/Steward during the shady dealings, which led to the Maltese government giving a 30-year concession of three state hospitals to an unknown company.

He had made headlines when, after serving as the CEO of VGH, he immediately transitioned to the post of CEO of Steward Malta, following the latter’s acquisition of the concession from the bankrupt VGH. The government had given its consent to this deal.

Before appearing in the Maltese Courts, Ernst was also briefly detained in the US, as part of a separate ongoing investigation into Steward Malta’s mother company, which had also filed for bankruptcy.

US authorities seized his phone, as well as that of the mother company’s CEO, Ralph La Torre.