Finance Minister Tonio Fenech told Parliament on Monday that in a stance of “take it or leave it”, the Government had stuck to its offer of €12.4 million – the lowest estimate – for the lease and eventual purchase of St Philip’s Hospital.
The Government had not succumbed to pressure even after it had been asked to renounce its status of preferred bidder.
Speaking during the debate in the House, he said the Government had been given estimates from its own Government Property Division (€16.9 million) and the Foundation for Medical Services (€11.85 million excluding equipment at €275,000 because it needed reconditioning).
It had discarded the GPD estimate because it was based on land speculation, which the Government was not interested in as it wanted a constructed hospital.
On the other hand, Dr Frank Portelli had first asked for €20.5 million and then for €18.7 million.
The Government had not bothered with the Shepherd Group’s state of financial affairs because it was not buying the company.
Mr Fenech said this proved that the Government had chosen the best financial option to realistically see to urgent and anticipated needs in rehabilitation.
The Government was bound by public procurement regulations, but these did not apply when it was purchasing or leasing land or immovables.
This was borne out even by EU procurement laws.
The Government was obliged to go through Parliament only in particular cases of sale without public tender. The minister said it was therefore incorrect to say the Government had bypassed Parliament or the Public Accounts Committee. Indeed, it was making the process transparent.
When St Philip’s had been placed on the market, the Government could have ignored it or considered it on account of needs in the health sector. The Cabinet had agreed to make an expression of interest and given directions to the health and finance ministries.
Failing that, it would have had to incur double the cost for a tailor-made hospital or go back to revitalising St Luke’s Hospital with all its problems.
Mr Fenech made it clear he had taken no part in the negotiations, not even meeting Dr Portelli formally or informally.