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The government has successfully defended itself against claims by Steward Healthcare that it unlawfully terminated its healthcare concession, according to an award delivered by an International Chamber of Commerce (ICC) arbitration tribunal. The tribunal dismissed Steward Healthcare’s contractual claim of approximately €148 million, upholding the government’s primary defence. No damages were awarded to either party, with the tribunal applying restitution principles under Maltese law and recognising that Malta received fair value for services delivered and payments made under the concession. Steward Health Care had filed arbitration proceedings after a Maltese judge quashed the hospitals concession deal. Since the Maltese courts cancelled the hospitals concession granted to Steward Healthcare, the Opposition has continuously insisted the government should recover the €400 million it paid the American company. The government had contested the overall amount being claimed by the Opposition, insisting that most of the public funds forked out for the deal went to pay wages of hospital staff and medical procedures that would have otherwise still been financed irrespective of the contract. The ICC award stated that the government of received total benefits of €889,434,091, while Steward Healthcare received €884,644,629, leaving a shortfall of €4.78 million owed to the company. READ ALSO | Steward and the Maltese government: Making sense of their arbitration case The government on Monday said it will continue reviewing the full decision with the State Advocate and legal advisors to consider the award’s legal implications. “The outcome of the arbitration proceedings vindicates the government’s approach in protecting the national interest and ensures that public resources continue to be managed in the best interests of Maltese citizens,” a government statement said. The government also thanked civil servants and legal advisors who helped safeguard the public interest throughout the arbitration. Further information will be released once the government’s legal team has completed its assessment of the tribunal’s detailed findings.
