Ram Tumuluri

Full Report

Key Points

• Ram Tumuluri, former CEO of Vitals Global Healthcare (VGH), is implicated in a major corruption scandal involving the privatization of three Maltese public hospitals.

• Allegations include misuse of public funds, funneling millions to offshore accounts, and colluding with Maltese officials, leading to a €2.1 billion contract annulment in 2023.

• Tumuluri received a €10.5 million settlement from Steward Healthcare in 2019, despite fraud accusations, with claims of coercion and threats during the VGH-Steward transition.

• He has been accused of attempting to suppress negative media coverage through fraudulent copyright claims targeting Maltese news outlets.

• Tumuluri’s business ventures, including Causis E-Mobility in Mumbai, have raised concerns for replicating the problematic VGH model, drawing scrutiny from Indian officials.

• Whistleblower filings with the U.S. SEC allege coercion by Maltese officials and Steward Healthcare, though inquiries question Tumuluri’s credibility and motives.

Overview

Ram Tumuluri is an Indian-Canadian businessman and former CEO of Vitals Global Healthcare (VGH), a consortium that secured a controversial €4 billion concession in 2015 to manage three Maltese public hospitals: St. Luke’s, Karin Grech, and Gozo General. With no prior healthcare experience, VGH’s contract was criticized for its opacity and failure to deliver promised investments. Tumuluri was a key figure in the deal, acting as the public face of VGH. After VGH’s financial troubles, the concession was transferred to Steward Healthcare in 2018. Tumuluri has since pursued ventures like Causis E-Mobility, a London-based company involved in a Mumbai public procurement contract for electric buses, which has faced scrutiny for similar irregularities as the VGH deal. He has also been linked to other international ventures in countries like Oman, Georgia, and Albania, often involving public-private partnerships.

Allegations and Concerns

• Corruption in Malta’s Hospital Deal: Tumuluri is accused of orchestrating a fraudulent scheme where VGH funneled €21 million to its parent company, Bluestone Investments Malta Ltd, with funds directed to Tumuluri and associates like Shaukat Ali. The deal was annulled in 2023 for fraud and collusion.

• Offshore Financial Misconduct: VGH’s opaque ownership structure involved offshore entities in the British Virgin Islands and Dubai, raising suspicions of money laundering and embezzlement.

• Suppression of Media Coverage: Since March 2024, at least 42 fraudulent copyright claims targeted Maltese news outlets like Times of Malta and The Shift News, allegedly to suppress articles about Tumuluri’s role in the VGH scandal.

• Coercion and Threats: Tumuluri’s whistleblower filings claim he was threatened by Maltese officials, including Keith Schembri, with references to the murder of journalist Daphne Caruana Galizia, to force the VGH sale to Steward Healthcare.

• Mumbai Contract Irregularities: Tumuluri’s Causis E-Mobility won a Mumbai contract for 200 electric buses, which ballooned to 1,400 buses valued at €332 million, raising concerns of replicating VGH’s non-transparent practices.

• Legal Threats: Tumuluri has sent legal threats to The Shift News, objecting to being called an “international scammer,” and has sued former business partners, such as Rupin Hemant Banker, for alleged misrepresentation in a Saudi desalination project.

Customer Feedback

No direct consumer reviews are available for Tumuluri, as his activities primarily involve business-to-government contracts rather than consumer-facing services. However, public and media sentiment, particularly in Malta, is overwhelmingly negative:

• Negative Sentiment: Maltese media and opposition figures, such as MP Adrian Delia, have criticized Tumuluri for his role in a “fraudulent and corrupt” deal, with The Shift News stating, “Tumuluri’s involvement has tarnished Malta’s reputation as a trusted business partner.”

• Indian Criticism: In Mumbai, Bharatiya Janata Party member Ashish Shelar criticized the contract awarded to Tumuluri’s company, citing “his past in Malta” as a reason for concern, as reported by The Indian Express.

• Limited Positive Feedback: Tumuluri’s lawyer, Andrew Bakaj, has claimed he has cooperated fully with Maltese and U.S. authorities, positioning him as a whistleblower seeking accountability. However, no public endorsements from consumers or stakeholders validate his contributions.

Risk Considerations

• Financial Risks: Tumuluri’s history of managing insolvent companies like VGH, which failed to deliver €200 million in promised investments, suggests potential mismanagement in future ventures. His Mumbai contract’s seven-fold expansion without fresh tenders raises concerns about financial transparency.

• Reputational Risks: Tumuluri’s association with corruption scandals and media suppression tactics severely damages his credibility, potentially deterring legitimate business partners and attracting regulatory scrutiny.

• Legal Risks: Ongoing investigations in Malta and the U.S., combined with lawsuits like the one against Rupin Hemant Banker, expose Tumuluri to legal liabilities. The annulment of the VGH contract and criminal charges against associates increase the likelihood of further legal action.

• Political Risks: Tumuluri’s alleged ties to Maltese officials and reliance on politically influenced contracts make his ventures vulnerable to changes in government or public policy, especially in jurisdictions with weak rule of law.

Business Relations and Associations

• Vitals Global Healthcare (VGH): Tumuluri was CEO and a key investor alongside Shaukat Ali, Asad Ali, and Mark Pawley. VGH’s parent, Bluestone Investments, wired funds to Tumuluri and Ali’s UAE companies.

• Steward Healthcare: Took over VGH’s concession in 2018. Tumuluri received a €10.5 million settlement from Steward, which accused him of fraud. Key figures include Armin Ernst (former VGH and Steward Malta CEO) and Ralph de La Torre (Steward US CEO).

• Shaukat Ali: A Pakistani businessman allegedly placed on VGH’s payroll at the insistence of Keith Schembri, former chief of staff to Joseph Muscat. Ali and his son Asad were linked to payments via Accutor AG.

• Joseph Muscat: Former Maltese Prime Minister, implicated in the VGH scandal, received €60,000 from Accutor AG. Tumuluri denies Muscat received payments directly from VGH.

• Konrad Mizzi and Keith Schembri: Former Maltese officials accused of colluding with Tumuluri and Steward. Both deny wrongdoing.

• Causis E-Mobility: Tumuluri’s London-based company, involved in the Mumbai bus contract, criticized for replicating VGH’s questionable practices.

• Accutor AG: A Swiss company owned by Wasay Bhatti, which received millions from VGH and Steward, later paying Muscat and others.

Legal and Financial Concerns

• Lawsuits: Tumuluri sued Rupin Hemant Banker in a UK court in 2020 for misrepresenting funding capacity for a Saudi desalination project. He has also threatened legal action against The Shift News for defamation.

• VGH Insolvency: By 2017, VGH was heavily indebted despite receiving €52.7 million from the Maltese government, leading to its transfer to Steward Healthcare.

• Settlement with Steward: In 2019, Tumuluri received €10.5 million from Steward, disguised as a bonus in Maltese financial statements, raising suspicions of financial impropriety.

• Criminal Investigations: A Maltese magisterial inquiry recommended charges against Tumuluri and others for corruption and money laundering. The U.S. SEC is reviewing his whistleblower complaint, though its credibility is questioned.

• Copyright Takedown Attempts: Since March 2024, 42 fraudulent copyright claims targeted Maltese media, allegedly by Tumuluri or associates, to suppress coverage of the VGH scandal.

• Mumbai Contract Scrutiny: The €332 million Mumbai bus contract is under investigation by Indian authorities for irregularities in tender amendments.

Risk Assessment Table

Ram Tumuluri’s involvement in the VGH scandal and subsequent ventures paints a picture of a businessman adept at navigating complex, high-value public-private partnerships but plagued by allegations of fraud, corruption, and unethical practices. His role in securing the Maltese hospital concession, despite VGH’s lack of healthcare experience, suggests either remarkable opportunism or systemic failures in oversight. The €10.5 million settlement from Steward, despite mutual accusations of fraud, indicates a pattern of leveraging legal threats to secure financial gains. His Mumbai venture with Causis E-Mobility mirrors the VGH model, raising red flags about his business practices.