The government is risking a diplomatic rift with Italy due to its mismanagement of the regional health centre, better known as the Paola Hub, funded by the EU and involving a subsidiary of an Italian State entity.
Following Health Minister Jo Etienne Abela’s decision to issue a Termination Notice to Ergon Projects Ltd, the main building contractor of the severely delayed €40 million project, the Italian government is raising objections to the Minister’s heavy-handedness and mismanagement, according to diplomatic sources.
Ergon Projects Ltd, which was handed the project in 2018, together with the beleaguered Technoline, is a subsidiary of Fincantieri, a company owned by the Italian government.
According to diplomatic sources, the Italian government has already protested informally about the government’s treatment of its subsidiary, and it is not excluding further action.
While true that Ergon did not deliver on time, the company is arguing that this was due to factors outside its control, including Technoline’s involvement in alleged corruption, now in court, and the government, notably the Foundation for Medical Services (FMS) failing to deliver on several aspects of the project.
The FMS was at the time under the management of Carmen Ciantar – former health minister Chris Fearne’s campaign manager.
An operating theatre is still awaiting equipment from Technoline. Photo: Dione Borg
Ergon may open legal proceedings against the government, which would result in further delays for the project.
Senior health sources told The Shift that the Paola Hub’s construction was almost complete and could be handed over to the government in a matter of days. However, no medical equipment has been installed, as Technoline, entrusted by the government to supply the equipment through a different tender, has failed to deliver.
Pictures of the project in the media show the building is finished but void of medical equipment.
Waiting area, but no patients. Photo: Dione Borg.
The sources suspect that the government’s decision to issue a termination letter may be associated with delaying tactics used by the project managers, acting on behalf of the Health Ministry, to give Technoline more time.
Technoline is, on paper, owned by Ivan Vassallo, who was just an employee when the company was bought. The Shift revealed in 2019 that the company was bought using public funds.
The magisterial inquiry confirmed that Technoline was bought with public funds in a complex arrangement involving former Times of Malta boss Adrian Hillman and contractor Pierre Sladden, acting on behalf of disgraced former OPM Chief Keith Schembri and former minister Konrad Mizzi.
Following court arraignments on charges of corruption, money laundering, and other accusations, Vassallo and Technoline are now facing freezing orders on assets, making it very difficult to deliver on the raft of tenders handed to them by the government.
Last May, a few days before the MEP and local council elections, Prime Minister Robert Abela visited the Paola Hub in a publicity stunt announcing that it was ready and opening its doors within a few weeks. This has not happened.
Kif bilfors Pinokkju Abela jrid imexxi lil pajjizna b’korruzzjoni sfrenata.
dear Hon Minister, you were not part of the kitchen cabinet and therefore you could probably be exhonerated from any responsability in this mess. this though gives you a clean slat to take legal action against all those that are creating this mess, namely technoline and all those parties involved with it. As for the italian supplier, maybe the Malta government could reach an agreement with them to pursue joint legal action against technoline.
However Hon Minister, remaining silent and hiding behind represenatives of your ministry will gain you no brownie points. At the end of the day this whole mess is in your hands as the head of the Ministry.
Wouldn’t you just know that corruption is at the heart of this mess.
It’s a really great pity, considering Mater Dei is overwhelmed.
The complication is monstrous. No wonder the Italian Government has put its weight into the mess. This is the mess the types of Carmen Ciantar and politician friends produce. Will this end up some Italian Court? With Muscat possibly in Cyprus and the USA courts , this will add more infamy to the Maltese nation. Smack on the 60th year Independence Anniversary.
Can it get worse for this country??? We are heading for a revolution, and it’s all on Bobby’s head!
Grand opening in May 2024. Actual opening, sometime in 2026.
“The FMS was at the time under the management of Carmen Ciantar – former health minister Chris Fearne’s campaign manager”
What F…G experience does this person have in managing a hospital project? – NONE! Unless the people walk the streets this shit will keep happening – this government MUST GO!
”Prime Minister Robert Abela visited the Paola Hub in a publicity stunt announcing that it was ready and opening its doors within a few weeks.”…..coincidentally another lie!!
This failure is only the responsibility of the Maltese government itself who knowingly chose to make use of a corrupt company just for the sake of it’s political connections!!