Former Maltese Official Keith Schembri Faces Criminal Charges Over Hospitals Deal

Keith Schembri, a former chief of staff in Malta's Office of the Prime Minister, is among 34 individuals recommended for criminal charges following a magisterial inquiry into the controversial transfer of public hospitals. The inquiry has unveiled serious allegations, including Schembri's failure to act on a 2017 report that exposed financial misappropriation by Vitals Global Healthcare (VGH) CEO Ram Tumuluri.

Why this matters:

This matter has significant implications for Malta's political landscape and its efforts to combat corruption. If found guilty, the accused individuals and companies could face severe legal consequences, potentially leading to a major overhaul of the country's governance and healthcare systems.

The charges against Schembri and others, including former Prime Minister Joseph Muscat and former minister Konrad Mizzi, encompass money laundering, trading in influence, criminal conspiracy, and bribery. Schembri is specifically accused of using the 2017 report as leverage to facilitate the transfer of the hospitals concession to Steward Health Care International, rather than addressing the financial misconduct.

Ram Tumuluri, the CEO of VGH, faces accusations of financial misappropriation of public funds. The inquiry has also recommended that he be charged with making fraudulent gains, obtaining money by false pretenses, and document forgery. Other notable figures implicated include Steward CEO Ralph De La Torre and Accutor AG owner Attaul Wasay Bhatti.

The magisterial inquiry, initiated in 2019 at the behest of the civil society group Repubblika, concluded last week. Magistrate Gabriella Vella has forwarded the comprehensive report to the Attorney General, highlighting the involvement of 31 companies owned or legally represented by the accused individuals. These companies include Vitals Global Healthcare Limited, Steward Healthcare International Limited, and Accutor Consulting AG.

The individuals implicated in the inquiry, including Schembri, Tumuluri, and others, are believed to reside abroad, which could complicate legal proceedings. The findings have intensified scrutiny on the Maltese government’s handling of the hospitals deal and raised concerns about systemic corruption within the highest echelons of power.

The inquiry's revelations have sparked widespread outrage and calls for accountability. The Maltese public and international observers are closely watching the developments, as the Attorney General's office considers the next steps in pursuing justice for the alleged misuse of public funds and abuse of power.

As the legal process unfolds, the implicated individuals and companies will face significant scrutiny. The outcome of this high-profile case could have far-reaching implications for Malta's political landscape and its efforts to combat corruption.

Key Takeaways

• 34 individuals, including Keith Schembri, face criminal charges over Malta's hospitals deal.
• Charges include money laundering, trading in influence, and bribery.
• Schembri accused of using report to facilitate hospital concession transfer, not addressing misconduct.
• Ram Tumuluri, VGH CEO, faces financial misappropriation and fraud charges.
• Outcome could lead to overhaul of Malta's governance and healthcare systems.