Malta withdraws case against Swedish company on MDH concrete

Miguela Xuereb

Tista' taqra bil- Malti.

Malta has withdrawn its suit filed against Swedish construction company Skanska regarding the construction of Mater Dei Hospital. The case was drawn up because of allegations that the company used inferior concrete.

The United Nations Commission on International Trade Law ruled that since Malta had signed a waiver, the Government could not proceed with its compensation claim over the hospital’s structure. This is because the waiver freed the Swedish construction company from any future liability over the hospital.

According to Times of Malta, a Ministry for Health spokesperson yesterday confirmed that the Maltese Government lost the case, but said that discussions between the two parties are ongoing.

In February 2009 the Foundation for Medical Services (FMS) had signed an agreement on project closure with Skanska. Both parties had agreed on a €7 million payment instead of the €30 million payment Skanska originally wanted.

In 2015, ex Health Minister John Dalli had said that he was informed of the contract signed with Skanska 6 weeks after it had been signed. He claimed that no one had spoken with him about the waiver.