Former Steward Malta CEO in the dock

The Court ruled that former Vitals Global Healthcare and Steward Malta CEO Armin Ernst should face trial before the Criminal Court over his alleged role in the controversial concession of three public hospitals.

In a decree delivered by Magistrate Lara Lanfranco, the court found that prosecutors had presented sufficient prima facie evidence for Ernst to be placed under a bill of indictment. The court underlined that its role at this stage was limited to establishing whether enough evidence exists for the case to proceed, not to determine guilt.

Ernst, 63, a German national who resides in the United States, is facing multiple charges, including fraud, bribery, misappropriation of funds, money laundering, conspiracy and trading in influence. The charges stem from the fraudulent 2015 concession granted by the Labour government for the management of St Luke’s Hospital, Karin Grech Hospital and Gozo General Hospital.

The concession was initially awarded to Vitals Global Healthcare before being transferred in 2018 to Steward Health Care, which took over the management of the hospitals.

The case follows the conclusions of a magisterial inquiry that led to criminal proceedings against several figures, including disgraced former Prime Minister Joseph Muscat, linked to what investigators described as a fraudulent deal between the government and VGH.

Prosecutors allege Ernst played a central role as the key interlocutor between the government and VGH/Steward during negotiations that led to the 30-year concession being granted to the previously unknown company.

Ernst has pleaded not guilty.

In separate proceedings, Magistrate Rachel Montebello issued a €20 million freezing order against Ernst, preventing him from transferring assets, including property he owns in Tigné Point, without court permission.