St Philip’s hospital deal to be signed ‘within days’
The contract for the lease of St Philip’s Hospital will be signed in the coming days, according to Finance Minister Tonio Fenech.
A day after Parliament discussed the agreement in an emergency session, Mr Fenech told The Times the contract was being finalised by lawyers.
“This goes to show how serious we are and it will be signed in the coming days,” he said when asked whether a date had been set.
St Philip’s, a 100-bed hospital, closed down more than two years ago after running into financial problems.
The Government wants to lease the hospital from former Nationalist Party MP and president Frank Portelli for €850,000 a year to use as a rehabilitation facility.
The lease agreement is for eight years, with the Government having the option of buying it outright from the third year onwards, based on a valuation of €12.4 million.
Mr Fenech yesterday defended the Government’s decision to submit the lease agreement to parliamentary scrutiny only after it is signed, insisting that the law was on the Government’s side.
“Everyone should respect the country’s procedures and it would create a bad precedent if the Opposition gets its way and the contract is scrutinised before signing simply because the person involved happens to be Frank Portelli,” Mr Fenech said.
The contract would eventually be made available for scrutiny by the Auditor General and Parliament’s Public Accounts Committee, he added.
The timing of the sale happens to be vital for Dr Portelli, whose house was set to be auctioned off in court tomorrow after pharmaceutical company Charles de Giorgio Ltd obtained a judicial sale to recoup money he owed it.
The auction has been put off, with Charles de Giorgio Ltd managing director David Stellini declining to comment on the matter.
Court sources said Dr Portelli filed a judicial application to have the auctioned property changed from his house to two flats. No date has been set yet.
The Government’s decision not to submit the contract for scrutiny prior to its signing has been harshly criticised by the Labour Party, independent MP Jeffrey Pullicino Orlando and PN backbencher Franco Debono.
Dr Debono has also submitted a private member’s motion calling for the contract to be withdrawn pending parliamentary scrutiny.
Opposition leader Joseph Muscat yesterday announced that Public Accounts Committee chairman Charles Mangion, a PL MP, had written to committee members proposing an agenda for scrutinising the contract.
Health Minister Joe Cassar has insisted there is nothing secretive about the deal and said Parliament was informed of initial evaluations in 2010.
Rehabilitating St Luke’s Hospital, which is many times larger than St Philip’s, would cost almost €40 million, Dr Cassar noted in Parliament on Monday.
His ministerial colleague Mr Fenech also argued that the negotiated €12.4 million price for St Philip’s was significantly lower than the various other valuations provided, including those from the Government’s own property division.
The final valuation on the deal is similar to the book value assigned to the land and buildings in the last published accounts of the Golden Shepherd Group, which ran the hospital.
According to the financial statements of December 2006, the land and buildings were valued at €11.6 million, raising the book value by almost €7 million on previous valuations.
PL health spokeswoman Marie-Louise Coleiro Preca has claimed the hospital is in a state of disarray, with the building’s air conditioning system requiring €2 million repairs, a broken nurse call system and wrecked boilers and soffits.
Dr Portelli had said last week that the hospital could be ready to take in patients “within a few weeks”. However, he refused a request by The Times to be given a tour of the closed hospital before the deal was sealed.
Questions sent to the Health Ministry asking about Ms Coleiro-Preca’s claims went unanswered.
The questions also sought to clarify what sort of financial outlay, as well as timeframe, would be needed to transform the existing 100-bed facility into the 275-bed rehabilitation hospital the Government envisages.
Dr Portelli declined to speak to The Times yesterday and instead asked for questions to be e-mailed to him. These included a second request to visit the hospital premises. He had not replied at the time of writing.
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Mr Andrew Camilleri
Oct 17th 2012, 16:09
As one famous Minister once told us, "nothing happens by coincidence".
Mr Andrew Camilleri
Oct 17th 2012, 16:05
"The timing of the sale happens to be vital for Dr Portelli, " - I love the use of the word "happens" by the Times.
James Tyrrell
Oct 17th 2012, 15:17
So would you want a member of your family lying in a 'rehabilitation facility' that floods every winter and needs industrial pumps to clear it out?
This is a simple case of the Maltese people being lumbered with further debt so that Gonzi and his special aid can pull a friend out of a financial hole. No wonder the Maltese Government is seen as the most corrupt in Europe.
Mr Andrew Camilleri
Oct 17th 2012, 16:07
And perhaps, just perhaps. shut this friend up from continuing his criticism of GonziPN and his allegations of corruption in the building of Mater Dei. Stories yet to be investigated, I hope.
Sarah Camilleri
Oct 17th 2012, 14:28
Has there been a public call for proposals for a submission of tenders for the provision of medical premises as required by EU and national public procurement rules?
Has a feasibility study taken place, to ascertain that St Philip's Hospital is fit for purpose?
Mr Andrew Camilleri
Oct 17th 2012, 16:08
It seems something has taken place as hospital licensed for 85 beds is now being touted as fit for 300 beds.
R Mallia
Oct 17th 2012, 13:28
These are the Friends Circle of Gonzi that Franco keeps mentioning. I didn't use to like FD but I think he is genuinely right.
A Tonna
Oct 17th 2012, 13:27
Smells filthier than Maghtab
Nazzareno Cortis
Oct 17th 2012, 13:25
Such stories are leaving the people speechless!!!!!!!!!!!!!!!!!!!!!!! Just incredible!!!!!!!!!!!!!!!
Paul Borg
Oct 17th 2012, 12:58
So now the Maltese Tax Payer will be taking the Creditors off Dr. Portelli's back.
Michael McCharty
Oct 17th 2012, 12:45
Is'nt this Dr. Portelli the same man that, for the last months has ventured from tv station to another, saying the PN has lost it's values, has trouble within its parliament members and the only way to get out of this turmoil was for DR. Gonzi to call an election? Is he of the same opinion today, or because things are looking brighter for him today he changed mind? Hypocrism at its large i think!
George Camilleri
Oct 17th 2012, 12:42
An autocracy cunningly disguised as a democracy. With these people leading this country and steamrolling on Parliament itself, Malta is in big trouble.
The electorate, the people, need to wake up. The taxpayer's money, OUR MONEY, is in the hands of people who do not care what we think of it.
Mario Scicluna
Oct 17th 2012, 11:46
''The timing of the sale happens to be vital for Dr Portelli, whose house was set to be auctioned off in court tomorrow after pharmaceutical company Charles de Giorgio Ltd obtained a judicial sale to recoup money he owed it.''
Rightfully said by JPO and FD, this deal stinks! A hurried, bold decision based not on conviction, but sheer convinience. For some.
Ronnie Callus
Oct 17th 2012, 12:08
@ Mario Scicluna:
Very well said. It's a Shame, to all involved in this mess. Well done Franco you are an eye opener of the real citizens who really loves Malta. Don't let us down this time, corruption has to be stopped today before tomorrow.
j brincat
Oct 17th 2012, 12:12
Are these called coincidences?
(jb)
g bartolo
Oct 17th 2012, 13:20
what a scam!!!....This is so unjust and dirty!! This is surely the cherry on the cake which undoubtedly will throw PN into the opposition for a long time ...AT LONG LAST
Joseph Borg
Oct 17th 2012, 11:29
GonziARROGANZApn!!!!!! You are DISGUSTING and I look forward to seeing you and your choice of friends DEFEATED, pity you gotten yourselves rich in the meantime!!!! SHAME SHAME SHAME!
James Grech
Oct 17th 2012, 11:25
Is Sur Fenech irid jilaghaba ta' cucc Malti jew huwa propju cucc Malti? On the other hand the Maltese are not cwiec. Meta ser jitghallmu jirrispettawna?
Joseph Brincat
Oct 17th 2012, 11:01
St Philip’s, 100 beds would cost €12.4 million.!!!
St Luke's, 800 beds would cost €40 million,!!!
SO , 40 million divide by 8 to find out how much 100 beds will cost in St Luke's
and the answer is 5 millions
SO St Luke's would have been cheaper !!!!
Ronnie Callus
Oct 17th 2012, 12:12
Not only that Mr.Brincat, one also has to consider that 'St.Lukes' is the Government property that is US CITIZENS. Our money is being shamefully spent. Where is the Honesty of the so called Government with Dr.Gonzi in the helm. Do they know how to do simple maths.
michael scicluna
Oct 17th 2012, 12:21
imma mhux ha jamettu li fallew meta ipjanaw lill mater dejn, u jergaw lura ghal St.Lukes!
Mr Andrew Camilleri
Oct 17th 2012, 16:11
Furthermore, the Government has an option to opurchase St. Philips, after refurbishing it. If government does not exercise that option, that would be a wonderful gift to the owners.
carlos ellul
Oct 17th 2012, 10:59
Gonzi pn valuri at its finest.
Alfred Vassallo
Oct 17th 2012, 10:37
What are the pn so afraid of that they want to go ahead with the signing of the contract AT ALL COSTS??
Mr Andrew Camilleri
Oct 17th 2012, 16:11
They are not afraid - they just want o help an old friend who needs the money NOW.
Mr Albert Dimech
Oct 17th 2012, 10:35
Opposition gets it's way? Excuse me Tonio Fenech, it's the majority in parliament who want the deal scrutinized before signing it. Why do after when nothing can be changed?
j brincat
Oct 17th 2012, 10:33
“This goes to show how serious we are and it will be signed in the coming days,”
What is he talking about?
Why was a vote not taken?
Never realised that this is the way to do things in a serious manner.
As they say ' tikber u titghallem jew ibelghhuk'!
(jb)
Karl Brincat
Oct 17th 2012, 10:21
guys this is just a lease after all .. (ok an expensive one considering the nature of the activity) but a needed one that will be subject to parliament scrutiny... and again subject to more checks if the govt chooses to purchase.. whats all the fuss ?!?
Mr Andrew Camilleri
Oct 17th 2012, 16:13
Just a lease? What do you know? The representatives of the majority of the people have been denied seeing this 'lease'. Why the hiding and mystery? Why the hurry? If you can't smell the fish, you need to unblock your nose, because from here it smells like a fish market.
joseph spiteri
Oct 17th 2012, 10:13
Mr. Fenech do you sign a blank paper? on the other
hand do you trust everybody?
What is there that the Gov does not want to discuss
formaly before signing? Can the contract become null
if after signing the contract, something crops up?.
Ronnie Callus
Oct 17th 2012, 12:01
Ghidlu Sur.Spiteri lil Tonio Fenech. Lanqas tifel zghir ma' jghamilhom dawn. Bir-ragun li l-finanzi tal-pajjiz qedien kif qedien. Tal-Misthija jekk baqa min jisthi. Dak ezempju li qed tghatu liz-zghar. X'ma jkollniex dan it-tahwid f'kull qasam go dan il-pajjiz. Jekk nibqu sejrin hekk aghar minn pajjizi ohra jigrilna li ghaddejjin minn marterju. ( Grecja, Portugal, etc; sa' anke Franza qeda ccaqcaq
Paul Ellul
Oct 17th 2012, 10:01
In defence of patients in corridors, the Health Minister has been saying for over 2 years that Mater Dei IS big enough and that work practices have to change, and that we certainly did not need need more hospital beds. No one can deny this.
And now in the debate, he says they have been dealing on St. Philips since 2010 and that the government had advised its plans to Parliament. Very serious.
Ronnie Callus
Oct 17th 2012, 11:53
Mhux hekk biss kien jghidilna l-Ministru Joe Cassar, imma wkoll li din is-sitwazzjoni 'STAGJONALI' minhabba l-influwenza. Mhux influwenza ghandna issa fil-Partit imma Cancer. Kif jista jkun dawn in-nies jibqu jitwemmnu. Taf min jemminhom dawk li ghandhom nuccali Blu skur hafna, imsieken.
Ronnie Callus
Oct 17th 2012, 09:52
One surely would ask, how come that new building is done on a rented place ? This all means that the government is bound to purchase the premises as otherwise the building will remain the property of the Person selling as far as I know. Also does it make sense that after one buys something he checks it afterwards ?? This is not as we are told by the Consumer Affairs and is logically so.
Simon Ciantar
Oct 17th 2012, 09:48
"the contract was being finalised by lawyers" - " that goes to showing how serious we are...." serious in what? in making sure this deal goes through despite everything ?!!!
j brincat
Oct 17th 2012, 09:46
If the PN persists in going ahead with the deal then the PL should present a motion of no confidence in the government and not wait for the budget.
The people have a right to know that everything as regards this contract has been done above board because it is US the poor taxpayers who have to foot the bill and we have already been fleeced enough!
(jb)
Dominic Chircop
Oct 17th 2012, 10:12
The PN will go ahead, primarily as there is practically no effective opposition. Government is being opposed mainly from within, and it has been shown time and time again that the PL lacks coherence. I am sure that were the former premier Mintoff with us, he would have described the PL as he did drydocks workers in 1973.
Eddy Privitera
Oct 17th 2012, 10:29
Dominic Chircop: Il PL kien ressaq vot ta' sfiducja izda m'ghaddiex bil-vot tal-ispeaker, jekk niftakar sewwa. Ghandek xi garanzija li ma jigrix l-istess ? Issa jekk Franco Debono cert li jivvota kontra GonziPN, ghax me jressqux hu l-vot ta' sfiducja, ghandu bizzejjed ragunijiet.
Mr Albert Dimech
Oct 17th 2012, 10:42
What should the PL do, run on Castille and throw the PM in the street? Why doesn't Gonzi bring a vote of confidence and we'll see what happens? Franco Debono has challenged him to do it, what is he waiting for.
P Azzopardi
Oct 17th 2012, 10:43
motion of no confidence......ergajna ?........this is the latest buzz word apparently lol
joe vella
Oct 17th 2012, 09:32
Tonio, if you and your government were as serious as you claim to be, then why not go through the vetting process of the public accounts committe before signing the contract
it is useless citing the law as being on the government's side, because this is not a question of sides but a question of integrity
Please choose the reason of your report below: