VGH CEO Ram Tumuluri was paid €5 million in bonus – Report

Ram Tumuluri

Tista' taqra bil- Malti.

Vitals Global Healthcare, Chief Executive Officer, Ram Tumuluri has paid himself €5 million in bonus. This was revealed, Wednesday morning by MaltaToday. It is also being reported that the bonus was a condition listed in his contract which was to be paid on his third year as Vitals Global Healthcare CEO.

During these past six years, the Maltese government gave over €300 million to Vitals Global Healthcare (VGH) and then to Steward Health Care who was given the concession of 3 public hospitals; Gozo General Hospital, Karen Grech and St.Lukes Hospital.

Between VGH and Steward Healthcare there was a sale agreement which was kept secret and which resulted in the concession of the 3 public hospitals for 99 years, sold for €1.

Former Minister Konrad Mizzi had secured the deal with Vitals Global Healthcare (VGH) during the time he was the Minister for Health.

According to the details published by MaltaToday it was in the third year of operation that Steward Healthcare was given the concession of the 3 public hospitals.

Sources close to the newspaper said that the concession revealed that the “directors’ remuneration at Vitals rose from €1 million in 2016, to over €6 million in 2017”. The difference in the directors’ remuneration was Tumuluri’s third-year bonus. According to the same article, the VGH had generated millions of euros in losses.

Vitals Global Healthcare has sought concessions similar to the ones it obtained in Malta in other countries, a practice which has continued following Steward’s takeover.

In January, it was being reported that lobbying efforts by former Prime Minister Joseph Muscat were being carried out on behalf of Steward Healthcare. In January a meeting was held at Castille with his successor Prime Minister Robert Abela, in which Steward Healthcare demanded the renegotiation of a €250 million contract.