Former Maltese PM and Top Officials Plead Not Guilty in Hospital Corruption Scandal

Former Prime Minister Joseph Muscat, along with other high-profile figures, faces bribery charges in a scandal that has shaken the Mediterranean island nation and cast a shadow over upcoming European Parliament elections.

Malta's former Prime Minister Joseph Muscat, along with former chief of staff Keith Schembri and ex-minister Konrad Mizzi, appeared in court on Tuesday to enter not guilty pleas to charges stemming from a hospital corruption scandal that has rocked the Mediterranean island nation.

The scandal revolves around a contentious deal, initially brokered in 2015, which handed over the management of three state-run hospitals to a private company. The concessionaire changed hands in 2018.

In February 2023, a court invalidated the concession due to allegations of fraud, based on a case brought forth by a former opposition leader. The ruling triggered a significant decline in public support for the governing Labour Party. The Court of Appeal upheld the annulment in October, affirming evidence of collusion among the parties involved in the concession.

A subsequent magisterial inquiry concluded in April, leading to bribery and other charges being filed against individuals associated with the hospital deal. Muscat, Schembri, and Mizzi were among the first group to stand before the court, where they denied charges of bribery, money laundering, and other offenses.

Additional defendants, including Chris Fearne, the former deputy prime minister who resigned after news of the charges surfaced, will face court on Wednesday. Fearne has publicly refuted the allegations. Edward Scicluna, the Governor of the Central Bank of Malta, will also appear in court on Wednesday.

Prior to the hearing, a crowd of Muscat supporters gathered outside the courthouse, chanting in support of their former leader, who remains popular among Labour Party voters.

The scandal has become a dominant issue in Maltese politics ahead of the European Parliament elections. Prime Minister Robert Abela, also from the Labour Party, has expressed concerns about the timing of the inquiry's findings, suggesting they coincide with the start of candidacy filing for the elections.

Abela has also questioned the inquiry process, specifically whether the accused were afforded an opportunity to be heard by investigators. His remarks have sparked criticism from the opposition, who view them as attacks on the judiciary.

Since 2013, the Labour Party has maintained electoral dominance in Malta, securing landslide victories in every election. However, recent events have eroded their popularity.

Malta holds six seats in the European Parliament, currently split between four Labour Party members and two from the Nationalist Party. One of the Nationalist Party seats belongs to Roberta Metsola, the President of the European Parliament.

Although the Labour Party is still favored to secure the majority of votes, the ongoing scandal may jeopardize their ability to retain all four seats. The Nationalist Party aims to capitalize on the situation and secure a third seat in the election.

In the 2014 European Parliament election, the Nationalist Party managed to gain three seats despite receiving fewer votes than the Labour Party, demonstrating the potential impact of the current scandal on the upcoming election results.