Dallas-based Steward Health Care took over a contract to renovate and manage three of Malta's public hospitals in 2018, but payments to the company were held up after then-Health Minister Chris Fearne questioned whether it was providing all the medical services it was contracted to deliver.
Private intelligence firms hired by Steward then appear to have orchestrated a smear campaign against Fearne, according to an OCCRP investigation published on Monday. One of those firms produced a report falsely accusing Fearne of taking a bribe, which was later sent to journalists.
“No one should be subject to an attack of this kind, especially when acting in the name of the people with the aim of securing what is right. This is why the cabinet is sending a strong signal that no such actions will be tolerated,” the Cabinet of Prime Minister Robert Abela said in a press release on Tuesday, announcing it had ordered the State Advocate to investigate the allegations.
Fearne, now a deputy leader of Malta’s Labor Party, resigned as Deputy Prime Minister in May after fraud charges related to the hospital deal were filed by the attorney general. Following Monday’s revelations, Fearne claimed in a Facebook post that the journalistic investigation had vindicated him and declared his intent to bring the “frame-up” to the attention of the Maltese Police Commissioner.
The police had previously confirmed that the stories accusing Fearne were false.
Abela, speaking to reporters yesterday outside parliament, expressed faith in Fearne and announced legal efforts aimed at recovering any Maltese public funds that Steward had misappropriated.
OCCRP’s story revealed that the private intelligence firms hired by Steward had also targeted perceived opponents outside of Malta, including a British short-seller and one of Steward’s own employees. The operations were paid for by Steward’s subsidiary in Malta, whose main income was public funds intended for the hospitals.
Steward filed for bankruptcy in the U.S. in May.
