This is the most important story in all of today’s newspapers
I should say that it’s actually the most important newspaper story of the last three weeks or so.
You really must read it because it gives ‘insider’ insight into what’s going on with the sale-of-citizenship scheme, Henley & Partners’ disproportionate role in it, and the way the consultancy firm managed to get in Malta what it was not allowed to do even in the Caribbean.
Nuri Katz also points out what should be obvious: that despite the government refusing to publish its contract with Henley & Partners, parliament voted on the legislation, with government MPs voting for the scheme without knowing the details.
Henley & Partners has a 10-year contract with the government of Malta, which tells us that Labour has taken it for granted that it will be in power for two terms.
Also – and this is a crucial point – applicants will not pay their Eur650,000 and other sums for additional passports directly to the government of Malta, but into Henley & Partners’ bank account. The company will then hold onto the money until the passport comes through, which will take between six months and two years.
Katz draws our attention to the fact that it will be Henley & Partners that will be earning interest on the money in the interim, and not the government of Malta, and that there are no provisions to secure the cash.
There is a point which he misses here, and which I would think is the likelier reason for this clause in the contract which says that Henley & Partners receives the money and holds onto it until the passport is issued. Yes, it’s nice for Henley & Partners to have the use of the money in the interim, but let’s not forget that in this situation, the cash is also being effectively held hostage by Henley & Partners against the government of Malta’s issuing of passports to its clients.
So, the quicker the government is in issuing passports to Henley & Partners’ clients – for all passport applicants are going to be its clients – the quicker it gets the money.
If the money were to be paid straight to the government, the government would be under no such pressure.
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http://www.independent.com.mt/articles/2014-01-12/news/revised-citizenship-law-may-gift-millions-to-henley-and-partners-3662479373/
Our citizenship is NOT for sale, period. What has become of the proposed referendum?
X’referendum? Meta ghandhu maggoranza li qatt hadd f’Malta ma kellu qalielhek cara u tonda l-inqas jekk l-opinjoni pubblika tkun kontrieh, xorta ser jghaddi daqs bulldozer fuq l-opinjoni pubblika. Hallikom mir-referendum.
Another “wonderful” deal for our country. There is still the big question as to who is or are Maltas’ local partner in this scheme.
THURSDAY, JANUARY 2, UPDATE:
And, ironically:
http://www.bermudasun.bm/Content/ANNOUNCEMENTS/Announcements/Article/Home-Affairs-Ministry-to-host-commercial-immigration-public-meeting–Update-/137/804/73656
Statement by Shadow Minister for Home Affairs, Walter Roban
The Progressive Labour Party today reaffirms our position that giving away Bermudian citizenship and the right to vote to hundreds of non-Bermudians is a red line we will not allow to be crossed.
While we support efforts to increase revenue and to encourage investment in Bermuda, we do not and will not, support the OBA Commercial Immigration scheme.
In other words, money laundering.
When Muscat refused to publish the contract and forced a blind vote, he basically rendered the agreement null and void.
He has to understand he’s there to serve us, and that contract was in our name. What we don’t know cannot be valid.
What is it he’s hiding, some severance package to break the Opposition’s resolve to rescind everything? At this point, Simon Busuttil has a duty to take this to the constitutional court. And while he’s there, he could indict Muscat of breaking his oath to serve this republic as well.
The problem Muscat has is to make this go away. As for these Henley and Partners, they give the impression they’re some facade for criminal activity.
That’s another issue. Why does Joseph Muscat feel the need to keep the contract secret? What is he hiding?
Is there a clause where some of the money goes into Labour’s pocket? Or maybe Henley and Partners get a bigger cut than is being stated? Or even some agreement which stipulates that a number of passports must be given to China.
For the zillionth time, how can any responsible person PN or PL, vote for a contract they’ve never seen?
I’m reading your comment again. Even if the contract is considered null since we do not know its contents, it will be years before our courts decide on its legality, and the damage will have been done anyway.
But it’s an interesting point if anyone cares to enlighten us. Does the secrecy make the contract legally invalid?
[Daphne – No. It just makes our MPs irresponsible for voting on it without reading it.]
It makes Marlene Farrugia particularly irresponsible for voting in favour os a contract she opposes without even knowing what it says ghax temmen f’Joseph.
Why does it look like although it is the Maltese government which has a contractual relationship with Henley & Something for which the government is paying Henley & Something nicely, the position of the company Henley & Something under the contract is such that it appears to be working in the interests of others, and itself, rather than in the interest of the Maltese people and its government?
It seems like we are going down a very steep slippery slope at full speed – without brakes, seatbelts and airbags – on the roadmap here.
Mr. Katz is right. Henley & Something should be sacked. The PN must include this in its electoral promises.
And this one a close second.
http://www.maltatoday.com.mt/en/newsdetails/news/national/Citizenship-sale-undermines-European-values-Swoboda-20140111
Basically Muscat’s being watched by the PSE, to think he was so proud he was of their logo, it was everywhere.
What happens if in those two years, Henley & Partners goes bust?
Who will hold the liability for the money – the Maltese Government whose scheme it is?
It is also easier for any Labour Party consultants to receive any commissions prior to the funds reaching Malta. Of which no trace will be registered in Malta.
Re Miami conference. “Malta sponsors its own embarrassment”. How apt.
Enquiries are coming in from Syria. Are they from Bashar al-Assad’s friends or enemies?
http://euobserver.com/justice/122627
“With news of the scheme already attracting queries from people in Libya, Saudi Arabia and Syria,”
“It also alluded to considerations to create a fast-track vetting scheme lasting just three months. Morshead separately told this website the fast-track idea has been scrapped, but his Dubai office said: “The funds [the €650,000 fee] are lost for the applicants but applicants get citizenship within 3-6 months!”
A Maltese agency, Zentura, which is also keen to scoop business, is being more brazen.
Its website says: “What is unique about Malta is the complete lack of restrictions which makes this programme the fastest to obtain European citizenship.”
People of high calibre, no doubt.
The company is called Zenturo Ltd.
Yes, I read the article but wondered who Mr. Katz is. I know it says that he is a Canadian immigration consultant but what interest does he have in our country?
I’m not implying that he is trying to take advantage of our country or anything, I’m just wondering why he went into such detail to study our proposed IIP bill.
Besides, how did Mr. Katz have access to the complete contract while our MPs did not?
And anyway, how on earth could anyone vote for or against a contract which they never read? I didn’t know the contract was only available partially. I’m thoroughly confused.
Natalie,
I have not seen the contract. It is a secret document that your government refuses to publish. In June of 2013 the government, on its website, published a request for interest to bid to become a concessionaire.
I have seen the documents related to this request for bids, and in it there is a lot of information about what will be in the contract. But the actual contract, I have not seen.
As for the contract, it is amazing that the contract is mentioned in the regulations to the citizenship law. It actually is mentioned a number of times, but the government will not release the contents of the contract even though they ask Parliament to vote on accepting the regulations. Shocking.
“It is a secret document that your government refuses to publish.”
This, my friends, is the stark truth, in all its horror. And it had to be Nuri Katz to state it. Our journalists, intellectuals and Opposition politicians should be lined up and shot.
Natalie,
I have been working in the field of investor immigration for twenty years. More than 14 years ago I was a consultant to the Canadian government regarding the new Canadian immigration act that became law in 2002.
I am currently building more than $100 million dollars worth of real estate that amongst other things will be sold for citizenship in the Caribbean. As such I keep my eye on what is going on in the world, and when I saw such a fiasco, I decided that I should shine light on it before it destroys all such programs.
I believe that Malta and other countries should be allowed to have an IIP. I just think that the government should manage it in an open and transparent manner, which is the total opposite of what is happening now in Malta.
I hope this answers your question.
[Daphne – Thank you for writing in.]
Thank you for answering my questions and for trying to help us see the truth about Malta’s citizenship programme.
It’s certainly shocking that nobody has seen the actual contract but our MPs are being asked to approve it. This type of behaviour makes me despair of our Labour government.
This type of behaviour makes me despair of my fellow voters. They’re the reason Muscat is prime minister. They voted for him. I didn’t.
Wednesday`s debate in the European Parliament is the correct forum to discuss the sale of EU passports by the Malta govt that is based upon a secret contract with an intermediary that has a multi-jurisdiction presence that is virtually impossible to monitor.
Mr Katz, any assistance you may provide that helps us shed light on this debacle is truly appreciated.
As often quoted by Daphne :- “FOLLOW THE MONEY”
Let us not forget that ‘Henley & something’ are basically a business concern – and very little else.
The business of business is business, stop. Little Joey is simply – and basically – doing business with our nation’s assets.
It’s not Henley & Partners working for the Government of Malta; it’s the Government of Malta working for Henley & Partners.
Right down to having Muscat fly to the Caribbean to promote their scheme.
Bingo to that.
And what would happen to all the money obtained from the sale of Maltese passports held in Henley’s accounts if in the meantime they declared themselves bankrupt?
Yes, this interview echoes a lot of my own concerns.
A couple of days ago I wrote a comment on this blog (8 Jan):
“As for Henley & Partners, it seems that they really have tied this one up in more ways than one.
Not only have they established rather high fees which are to be the set price to clients which they will earn over their clients and everyone else’s, not only do they get paid a commission out of the contribution the new citizen has to pay, but they get to sit on the EUR650,000 of each client which could earn them more in terms of interest on that money.”
I’ve also written time and time again that the government has ample cause to fire Henleys – every single newspaper article slamming Malta is the only evidence it needs.
So the real question is why is Muscat protecting Henleys’ interests? He could still have a citizenship programme, a good one, that will bring a lot of money into the Maltese economy, without damaging Malta’s reputation and consequently other industries that are dependent on it.
The only real winners are Henleys. Yes the Maltese government will earn a lot money for this scheme but it will have to bear a lot of flack for this whilst Henleys rake it in (literally). So why is Muscat going out on a limb to do it this way?
The Malta Independent deserves a gong not only for having the best news story of the past few weeks but also for having the best news stories of 2013.
At the beginning of this year, the two English language, independent newspapers in Malta both published an article about the most read stories of 2013.
While The Times of Malta are still winning the numbers battle because they have more readers, The Malta Independent is definitely winning the journalistic battle.
The top 10 most read articles in The Independent all have political insight and intrigue ranging from the passport scheme to Norman Vella’s arrest to stories about Manuel Mallia’s ministership. Out of the top ten stories in The Times, only one does, the story about the PN demanding a recount of votes on the eighth and thirteenth district.
The rest are reports about a murder case (two articles), weather reports (two articles), one about the killing of a flamingo, one about a speech given by the Pope, one which was an April fools’ hoax and another which almost sounds like one. The other two are related to politics but they only give a list of people elected and people chosen as cabinet ministers respectively without adding any comment whatsoever.
So we can conclude that people go to The Times to check dry facts in the same way one looks at a thermometer to check the temperature but people go the The Independent to get commentary about relevant news stories and political insight.
I hope The Malta Independent’s readership keeps growing.
Check out the lists for yourself:
http://www.timesofmalta.com/articles/view/20131231/local/Dead-flamingos-murders-and-that-April-Fools-joke.500849#.UtKpLNJDuSo
http://www.independent.com.mt/articles/2014-01-02/news/wwwindependentcommt-norman-vella-arrest-most-read-story-in-2013-see-top-25-stories-3582754820/
I would not hesitate to wonder that the interest on such sums will form the basis of commissions to those instrumental in having negotiated this deal with Henley.
The EU simply must view this Sale of Citizenships from the Financial Services angle and determine whether:
i. As a Financial Services instrument, it has been made available fairly to all service providers alike, irrespective of the Government’s efforts to state that Identita Malta is the body handling this: to strip the masquerade bare.
ii. The consequences of the Sale of Citizenships used as a Financial Services tool by Malta in this manner is detrimental to the environment of Financial Services within the European Union;
iii. The Sale of Citizenships is contributing to the integrity of Malta and of the European Union itself in the manner by which national legislation has sought to circumvent the matter of immigration of Third Party Nationals into the full complement of European Union member States other than and in addition to the one granting this Sale of Citizenship.
iv. The actions of the Malta Government have “guaranteed transparency” and a “level playing field” to the market of Financial Services in Malta and within the European Union.
v. The Labour Party in Government is considered to hold a mandate from the electorate for the specific legislation it has unilaterally passed.
I sincerely hope that this “business” never sees the light of day, and that the European Union are rigid on setting an example of moral precedent towards amoral actions of member states.
Where this “unconventional” move has originated, there will be others.
As reference: Joseph Muscat’s registered focus as rapporteur back in 2006:
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+REPORT+A6-2006-0170+0+DOC+XML+V0//EN&language=en
You’re onto something there, given that it’s effectively the EU passport we’re talking about.
It’s free movement of people, goods AND services right?
Or better, is Muscat willing to carry on with the scheme to get his elf miljun leaving Henley and Partners to compete?
It will be either one or the other. When he won’t, it flops.
As they said, we are being well and truly ‘had’.
Now the PL government has the gall to say that whoever is against the IIP is causing harm to Malta.
They are not even seeing that they are the ones who are causing so much harm to Malta’s reputation.
Now next I would think that our Joey will accept to have the Syrian chemical warfare dumped close to our island as long as whoever will give him a substantial sum of money so he can just sit back and not lift a finger to work hard to attract investment to Malta. Joey always seeks the easy way out. He is one heck of a lazy fellow.
You also miss out on another point. What if there’s a change of government in 4 years’ time? Won’t it hold the new government hostage with all that cash in its coffers?
Good point.
The PN opposes the sale of citizenship. Why would it be held hostage?
Well, if PN is against the sale of citizenship, it will try to stop the programme, or even reverse it. Henley and Partners will keep the money until it’s given guarantees by a PN government that it can continue with the programme.
If the PN disapproves of the sale of passports, then a PN government should not collect the proceeds of such sales.
No, if anything it’s Henley and Partners who need to calculate the risk in having their scheme reversed.
Which is why there could be a number of penalties in the contract.
The fact they get to keep the money until the physical passport is delivered could very well indicate they’re wary of Muscat’s method.
The more I read about this passport gimmick the more it stinks.
Why aren’t the serious-minded Labour-leaning people are not voicing their anger at Muscat? Where are they?
Serious minded Labour-leaning is an oxymoron.
http://www.youtube.com/watch?v=YiOtzpdbJnA
It just seems to be all so very advantageous for Henley.
I say seems because huge brown envelopes will certainly be stuffed with huge amounts of cash. The filthy scheme reeks of corruption from beginning to end. This is exactly why it is shrouded in secrecy. For the same reason no locally-based financial organization, or anyone else for that matter, will be trusted with taking part in the scheme directly.
If Tonio Fenech had implemented anything as obscene as this, he would have had a life-size replica of Big Ben built in his backyard.
The mind boggles.
When confronted with a situation like this, with the government seemingly hell-bent on shooting itself in the foot no matter what in favour of a third party, I have to ask the question.
Qui bono?
Who stands to gain from Henley & Partners’ position of privileged passport salesmen?
Who exactly?
That is THE question
Who will be at the receiving end of the big brown envelopes?
There won’t be any brown envelopes. There will be funds diverted to secret nominee bank accounts in dodgy jurisdictions.
Good point , but have you noticed the frequent use of “Biljun ” recently . If it is repeated enough times even some that were originally against the scheme will be turned , and the comparison being made to the amount secured by Dr. Gonzi is not coincidental , some might even start to reason that if we , in some way , lose that amount we will still be covered by what is projected with this dangerous scheme ,
Dark days indeed
Yes, he was rather shrill yesterday morning, elf miljun, biljun, anke jien, bla bla.
He was particularly vulgar and condescending in his argument, implying the Maltese will choose cash over anything anytime.
As usual another cocked-up deal by a bunch of amateurs who think they can govern. We are f*cked and can hardly do anything about it.
The government is signing long-term half-baked contracts – ten years with Henley & Partners, 18 years for the supply of gas and who knows what else. Wrong decisions today will cost millions even after these clowns are put back where they belong.
They are a manifestation of ineptitude, proof of their lack of plans and are making policies on the run.
They are on a mission of searching and destroying anything which was put in place by previous administrations after years of hard work.
So one would also presume that once Henley’s is holding clients money, it will be regulated accordingly?
Regulated by whom, where and how?
I am absolutely sure that what money eventually reaches Malta will be transparently audited.
What worries me is the possibility of kickbacks and commissions paid in the period of time that the money is solely in the custody of Henley & Partners.
Why are you so absolutely sure? There is no clean money in dirty deals.
“If the government, with just €55 million, could do so much in the last Budget, can you imagine what this government could do with one billion euros,” Joseph Muscat at a political activity at the PL Headquarters in Hamrun.
Yes, it is all about the money. Muscat knows what gets many of his supporters, and in fact many Maltese, to be on-side. Money, the route of all evil, is Malta’s weakness.
Malta is not a rich country. We may no longer be a poor under-developed country, although some aspects of our society do seem to resemble such places, but we are not a rich country.
We have no real natural resources, services or goods to offer the rest of the world and as a result it is tough for us to actually make money. Making money in Malta has to be a slow and meticulous process that takes time and patience in order for wealth to accumulate.
Like the middle class of Malta today, who started off with very little that was left for them after the Mintoff years, Malta has had to slowly and carefully create wealth, and this slow and careful process is understood only by those people who have had to implement it themselves in their lives and work. It takes a certain set of values to appreciate this sort of patience and understanding of one’s situation in the world : I have little money and all I can do is spend prudently and work honestly and that is the hand I’ve been dealt. Improvement will come, but not straight away.
However, perhaps because of our history, or perhaps because of how those who have treat those who don’t. or maybe even just how some people view wealth and the perceived “power” it gives an individual, there are those who not only can’t understand this patience, but resent it with a passion and hate being told to just sit and lump it and improve your lot on your own through honest or honorable means because they fear being on the losing team, as it were.
This resentment then translates into a certain value system that promotes a “rat on a sinking ship” attitude towards success that they approve of and when a politician voices the same ideals they cheer.
I wouldn’t say that this is something found in just the less well off classes of Malta. It exists everywhere. The result is the rotten logic of ” Why should I care about the skyline or character of my village? I want to knock down my 300 year old house and build a block of flats cheaply so that I can get the money. Why should I respect something that puts me at a disadvantage?” And that disadvantage is what people fear the most.
Likewise we see this PM of ours think pretty much along the same lines. Why should we Maltese “respect” the privilege that we have as EU citizens and miss out on making money? What good is follow an unwritten code of conduct that looks down on such self-serving ideas when it puts you at a disadvantage? The prospect of being at this perceived disadvantage is what people fear a great deal. It is fear that drives them to think this way.
These people feel like they have to have money because they think that once you have money you are safe from being push around by those who have money. Being less well off than others is not just a question of money, it is a death sentence, the short straw, and the reason why you will be ignored and looked down upon by the rest of the world around you. Or so they think.
Therefore money is the key to safety, and anyone standing in your way is not against your idea, but against your interests; money.
Yes, this is Mintoff’s legacy which unsurprisingly is being brought into our world again by those who cheered and supported him, even when his government violated human rights. It is this thinking that makes people think “He made mistakes but he did good things”. The “good things” all have the same thing in common: getting money. Not even making it, but getting it.
Many of the Maltese like to be the bolshie bully on the block, and want to see Malta be that too. They forget how that sort of attitude does not go down well in this world. But then again, we aren’t talking about the most farsighted people, are we?
And as with Mintoff, Muscat will bully those who stand between him and his money. In this case it will be the EU. “What’s wrong with looking out for our interests?” he will argue. That very statement which stinks of jingoism and psychopathy is the very reason why so many super powers have come crashing down on themselves, and now live in a world full of enemies who will and do attack.
Self interest is exactly like freedom: we all have the right to it, but it ends when it limits/ threatens someone else’s.
That is the lesson the whole of Europe has learnt, and as a result we have the EU, with this lesson at the heart of much of its laws and policies. Muscat is an idiot if he thinks going against it all, after 60 years of prosperity, will earn him respect. It won’t, and as we can see we are now no longer respected.
The result of all this, I believe, will be a referendum on whether or not we stay in the EU. The reasons for pulling out will be because they stand in our way of getting money, and the Maltese are stupid enough to support that. If there is one thing the PN didn’t do, it is educate the people of Malta properly and do away with this egocentric attitude that is rife in the country.
Pray tell me what a Maltese passport would be worth if we were to opt out of the EU.
Nothing, but I have always suspected that the PL want us out of the EU either way.
Precisely.
It would be interesting to find out what the contract between the government and Henley & Partners states in the event that a change of government rescinds the IIP legislation before 10 years have elapsed.
http://www.timesofmalta.com/articles/view/20140112/local/muscat-strongly-defends-citizenship-scheme-as-ep-debate-approaches.502367#.UtL-8s3QQXw
And, silly me, I thought Dr Muscat was after talent. His battle cry changed from “we want to attract talented people” to “If the government with just €55m could do so much in the last Budget, imagine what we could do with €1000 million.”
I think Simon Busuttil knows exactly where Muscat’s Achille’s heel is.
Remember Labour harping on about the labour force survey to gauge unemployment? Guess what, that figure shot up by 1500, over and above the ETC’s offical unemployment figure.
We all know what that means; people are giving up, preferring to wait for Marie Louise coleiro’s new improved social benefits.
Undoubtedly financed by Muscat’s biljun.
The longer the citizenship takes to be issued, the better for Henley & Partners as it will earn interest on the money paid to it. At the end of the day, H&P will still get their commission anyway regardless whether it is in 3, 6, 12 or 24 months.
[Daphne – Not quite. Henley & Partners receive a premium fee for ‘fast-tracking’ passports which is greater than the interest on Eur650,000 over two years.]
And what will happen with that money in H&P’s possession until the approval is given?
Probably also H&P will even expect that interest on the commission due will be due to them as they would have done their work and the rest is then not in their hands, thus they should not be made to lose interest on the outstanding dues.
Makes you wonder if there are hidden interests that could benefit certain individuals in Malta or on the government side through this arrangement.
So, if they don’t fast track it they get the interest or the dividends.
As I said earlier : “Heads you lose tails they win!”
Daphne,
I have to respectfully disagree with you by pointing out the following. Let’s say Henley earns 5% annually on say 700,000 Euros, that is 70,000 Euros in two years.
[Daphne – Yes, if we’re working on an assumption of 5%. But it’s closer to 2.5% right now, and that’s with money locked in for a fixed period. That’s the basis I worked on. Also, there are going to be problems with locking in the money to derive more advantage – unless they have some kind of unofficial arrangement with the government, matching the release of passports to their liquidity at any given time.]
Much of the time, it will be worth it for Henley to actually keep the money for the whole two years. They will do that, for example if I were to introduce a client to Malta. They will be able to manage when and if, for example, my client is willing to meet all the criteria, they will actually hold off on giving him citizenship all the while earning interest, or buying boats, cars, houses, or whatever else they can do with Malta’s money.
If it is a direct client of theirs, then they will do everything faster and will earn interest for only 6 months, but will get paid their commissions and professional fees, and make sure their clients are happy and bring them more business.
I do not think it is a way to hold Malta hostage, it is a way for them to make more money and make sure no other financial consultant, Maltese or foreign gets involved in introducing clients to Malta. It’s the deal of the century for Henley.
If the interest rate is high it would be a high risk investment.
Henley would be gaining interest or dividends by risking Malta’s money not theirs.
It looks like a “heads we lose and tails they win” situation.
Daphne,
In the current regulations all it says is that the money will be given to Henley and then up to two years later, they will give what is left minus fees to the government.
You don’t know because you have not seen the contract, if they are getting paid something additional by the government to hold the money (this sounds crazy but I suspect it is true).
Also, don’t forget they can put the money, for example, in the Russian state bank which pays about 8%. They can invest it in Microsoft stocks, Turkish government bonds (St. Kitts and Nevis govt bonds pay about 8% except for when they default which they did a few years ago).
[Daphne – Well, that’s exactly what I meant when I said that there is only so much Henley can do with the money without locking it in, unless they are assured by the Maltese government of a staggered release of passports that will match their available liquidity. If they have to pay the Maltese government when a passport is issued, they need the liquidity to do it. Microsoft stocks and Turkish government bonds are not going to do it.]
We just do not know what they can do with this money and how much risk they can take with Malta’s money.
What we can count on is that Henley will tweak the timing of how long they hold on to the money according to what is in their best interest, as any private company would. Again the whole fiasco is that the money will not be given to Malta directly, which is simply shocking.
Daphne,
The amazing thing is that it is Henley who will determine when the passports will be released, NOT the government. The government has up to two years to do this; that is the government commitment to the buyers.
However, when the passports are released during that two years is up to Henley.
I think you may have assumed that the government will determine when the passports will be released. [Daphne – Yes, I did, as it is the rational assumption to make, given that it is the government which is the issuer.]
But according to the regulations it is not really like that. What happens is an application for citizenship is made and then after Henley checks out the purchaser, Identity Malta will issue an approval in principle. Then Identity Malta tells the purchaser to send the money to Henley.
Then the purchaser has to buy or rent real estate (buy – Eur350,000; rent – Eur16,000 a year) and buy shares for Eur150,000. I will not go into the incredible room for graft with these issues that anybody who has been in this business should know about as that is another story.
Once they have done this Henley, who manages the program, will tell Identity Malta to issue a citizenship certificate and Henley will pay the money to Identity Malta (after their fees and commissions). Anyway, it is up to Henley to tell Identity Malta that the citizenship certificate should be released.
Here is the actual wording of the regulations:
(9) Within two years but not less than six months from the date of application and subject to a verification that the conditions of the Letter of Approval in Principle have been satisfied as provided in sub-regulation (8), the Minister shall, provided that the conditions of these regulations are still satisfied, issue a certificate of naturalisation in the name of the applicant subject to sub-regulation (11).
As we know that Henley is managing the program, we can only reasonably expect that Henley will verify that the conditions of the regulations are satisfied.
So, it is my reading of these regulations that Henley can keep the money from six months to two years, and they alone decide how long they keep the money and therefore can lock it in any investment they want for up to two years.
Hope this is clear.
[Daphne – I can’t see why the government would have agreed to that when it wants the money immediately.]
Henley is a multi-jurisdiction organisation that could conceivably hold a billion euro on behalf of Malta. The money may be held in any jurisdiction.
Henley can invest, loan or simply disperse the money in any manner it deems fit. Unspecified forms and amounts of commssions/fees can be payable to `un-named` beneficiaries.
Henley do not guarantee that the full `net` sum is passed to Malta. No guarantee seems to be needed for one billion euro – their word is good enough apparently.
All of the above detailed only in a secret agreement that only a small sect of characters have ever seen.
Daphne, this situation is not controlled by Henley, but by the people who make up the government. They are the ones calling the shots, and if the shots are being called this way, then it is because this is how they want it.
The reins of power in Malta are in the hands of pimps, thieves and scoundrels gorging themselves on the spoils.
Daphne, I think that’s where government stock comes in.
One prays Muscat isn’t looking at swaps.
Mr. Katz, as a Canadian, born and bred, I appreciate how much immigration has contributed to the economic and social progress to Canada’s success. My Scottish parents immigrated to Canada with no incentive other than seeking a better life.
However, shady schemes such as these put a new focus on contrived, for profit, citizenship.
Having lived in Malta for over twenty years, with two beautiful grandchildren here, I fear that their Maltese passport will be severely downgraded, even by other EU nations.
They will soon have Canadian passports. Transparent, no fees, no scheme, no scam.
The EU has to step in and control the citizen schemes like the one proposed by the Maltese government. If the Maltese government is allowed to go on with its scheme, why shouldn’t others do the same?
And what price a Maltese passport then, anyway.
The Maltese government is counting on the fact that not one of the other 28 member states is going to enter the field, and that in itself should tell it there’s something inherently wrong with its plan.
I agree. At this point, the citizenship being sold is European, not Maltese. Therefore, the argument used by the EU so far that a member state has sovereignty over its citizenship does not apply in this case.
In fact, I would say that an EU state should be able to (legally) challenge the right of anyone BUYING a Maltese passport from entering its territory on the grounds that whilst a Maltese national is an EU citizen, a buyer of an EU passport is not an EU citizen. We are hoping that the names of the BUYERS will now be published, so it should be easy for other EU countries to know who has BOUGHT a Maltese passport.
Those countries should be able to argue that they too have sovereignty on EU passports, and therefore no EU passport should be issued without their say in the matter.
If citizenship sold can be revoked, then the EU dimension of such citizenship can be challenged by a country which is not the country issuing the citizenship and passport.
Daphne, forget your 2.5%. You, very obviously, have not been investing seven figure sums lately. Neither have I.
When your are talking big money it is 5% at the very least.
It could very well be 7 or 8% for eight figures in GBP. Even short term. Even more if short term, I would say.
That is ten million. Just fifteen “passports”.
The names are no longer to be secret but the point of sale and the financials are decidedly to remain offshore and out of sight. This is not in the interest of Malta but in the interest of Henley & Partners and anyone they might be sleeping with.
You have no way of knowing whether any names will remain unpublished, just as you have no way of knowing whether any passports gave been issued already.
Daphne, you can’t see why the government would have agreed to that when it wants the money immediately.
That is the point. Why did the government agree to that when it wants the money immediately?
There are only two possible answers to the question.
1. The people in the Maltese government simply do not understand what they are doing. It actually was like that in Antigua just now.
2. Someone in the Maltese government, for some reason, thinks that it is more important for Henley to make money than for the government to make money.
It can only be one of the two above answers.
What is your email address?
[Daphne – dcgalizia@gmail.com]
It could be a bit of both: not knowing what they’re doing but making a bit of money on the side, anyway, by helping Henley & Partners to make lots themselves.
Come to think of it, Muscat may have proceeded to endorse the agenda for secret agreements as soon as his elves kicked off the honoraria ‘secret pay rise’ spiel.
Everything that matters, Enemalta, the new power station, land reclamation, public transport and this citizenship scheme are shrouded in secrecy.
Whatever the PN will say he’ll come back with that lie about the ‘secret agreement on pay rises’. It’s beginning to sink in that with this individual, the lower the expectations, the closer one gets to predicting his moves.
To avoid disappointment, expect the worst. You’ll get it.
Taqra, tifhem u tibki!
Having gone through all this money, investment and interest talk there is one thing I am now looking forward to. A televised press conference featuring Marie Louise Coleiro with Joseph Muscat at her side.
She will inform the Maltese public that with all that money going to Henley she would have solved the problem of poverty in Malta.