Suspicious contracts at four state run hospitals

Four state run hospitals in Trenčín, Banská Bystrica, Trnava and Poprad are reported to have signed expensive catering contracts with non-transparent firms, linked to a shell company registered in a tax haven. According to information provided by the daily Sme and watchdog Transparency International Slovakia, the contracts are worth a total of €81 million for a period of ten years. The price per patient is almost double in comparison to other hospitals which do not outsource their catering services. Petra Gembešová, the assistant of the Trenčín Hospital's director explained the high figure by the fact that it involves the reconstruction of the canteen and kitchen for example. The daily Sme also found out that personally interlinked companies called Dora Gastro Slovakia and Hospital Catering Solutions featured in several tenders. Dora Gastro CEO Peter Bitto signed the contract in Trnava Hospital, while the same person signed a contract with Trenčín Hospital on behalf of Hospital Catering Solutions, that has a shell company registered in Luxembourg as its majority shareholder. Patrik Simek, the Head of the Board of Directors of Dora Gastro Slovakia, issued a statement to the public broadcasting company in which he denies any wrongdoings and promised to offer detailed accounts on the contracts to state agencies in charge of checking public procurement. Meanwhile the Health Ministry announced it will launch an investigation into the matter, arguing it did not have any information about these contracts. Opposition MP, Miroslav Beblavý, however, says that the Chief of Staff of the Health Ministry Martin Senčák issued clearance for that all of these contracts on the ministry's behalf. According to Slovak legislation, a state-owned hospital cannot conclude a concession contract worth more than €5 million without the prior approval of the Cabinet.

Last week the Parliament passed an amendment to the Public Procurement Law saying that only those companies that will reveal their ownership structure will be able to take part in public tenders. Those based in countries, tax havens included, whose legislation preserves secrecy over ownership will be barred from taking part in public tenders in Slovakia. It followed a scandal that led to the resignation, in mid-November, of Pavol Paška as Speaker of Parliament. A state hospital in Piešťany bought an overpriced CT scanner from a company he had been involved in prior to becoming an MP. According to the non-governmental organisation Transparency International Slovakia, the company is in fact based in Belize and Cyprus, countries known not only for their low taxes but also lax policies regarding ownership structure so it's really difficult to see who the real shareholders are and what their alleged link to politicians is. The firm, which has denied any wrongdoings, has won public tenders worth €196 million between 2009 and 2014.