On 2nd December 2024, the Court of Appeal, in proceedings related to Application Number 1398/2023, Onorevoli Kap tal-Oppozizzjoni Dr. Bernard Grech et vs. Avukat tal-Istat et, overturned the judgment of the First Hall of the Civil Court dated 11th July 2024.

The Court of Appeal declared that the State Advocate, under Article 91(A) of the Constitution of Malta, has the authority to act independently of any Government direction. This authority extends to pursuing actions against individuals obligated to reimburse the State for damages sustained as a result of their wrongdoing. These damages arise from the judgment of the Court of Appeal dated 23rd October 2023, which declared the hospital concessions granted to Vitals/Steward by the Government of Malta null and void. The concessions were rescinded due to findings of corruption and collusion involving high-ranking Government officials.

The Court further ruled that the State Advocate’s authority, as outlined in the Constitution and Article 33 of Chapter 573 of the Laws of Malta, includes acting against these officials who acted in bad faith and engaged in corruption. Moreover, the Court clarified that the State Advocate does not require court authorization to initiate such proceedings.

Additionally, the Court stated that the rescission of the hospital concessions invokes Articles 541 and 543 of the Civil Code, requiring restitutio in integrum for damages sustained by the State. Consequently, entities such as Members of Parliament, the State Advocate, the Commissioner of Police, and the Lands Authority have the authority to file all consequential claims. These claims can be brought either within the same lawsuit or through separate legal actions, as they form an integral part of the judicial remedy granted by the Court of Appeal.

Fenech & Fenech’s Edward Debono and Nicholas Debono acted as counsel to the appellants in this landmark case.