Top comment of the morning
Posted by Nuri Katz of Apex Capital Partners in reference to Malta’s citizenship scheme as detailed in a long article in the London Review of Books:
This scheme keeps getting worse. Most of all, clearly your Prime Minister has some sort of a special relationship with Henley & Partners, so much so that he is willing to risk his international reputation just to ensure that they can make hundreds of millions of euros.
I do not understand why your Prime Minister does not trust his own government to manage the citizenship program, and insists on inserting Henley.
I suspect that when you will all find out the reason for this whole matter, that it will become Malta’s version of Watergate.
The truth always has a way of coming out and it will come out here as well.
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Spot the difference.
“The addition to ‘Form N’ that needs to be filled out by applicants reads: “I undertake to provide proof of residence in Malta prior to being granted a certificate of naturalisation as a citizen of Malta in accordance with the Individual Investor Programme of the Republic of Malta Regulations 2014”.
and
“This, however, varies very little from the change in the legal notice of 4 February, which had inserted the clause that an applicant “commits himself to provide proof of residence in Malta, and to provide proof of title to residential property in Malta in accordance with these regulations”. (The Malta Independent)
And where is the one year specifically mentioned?
Muscat and his henchmen know that in a country of just 300,000 or so eligible voters an additional 5,000 (is the sky the limit?) citizens beholden to the socialists are enough to transform Malta into a Zimbabwean ‘utopia’ like the one Mugabe created.
Question: What did Zimbabweans used to use for light before they started using candles?
Answer: Electricity.
They’re building up to the honeypot – a replay of the SIDF in St Kitts & Nevis, where money from the sale of passports didn’t quite make it into public offers but was paid into a fund administered by Henley and Partners with government approval.
http://www.sknsidf.org/news/media_releases.cfm?idz=21
http://www.thestkittsnevisobserver.com/2012/04/13/brantley-sidf.html
http://www.reuters.com/article/2012/02/12/us-passport-idUSTRE81B05A20120212
Some Kittitians criticize the extent to which citizenship by investment is changing the political – and physical – landscape of their island. Dwyer Astaphan, a former Kittitian minister of national security, justice, and legal affairs, complains that former sugar industry workers, intended to be the beneficiaries of the sugar fund, have no way of knowing where the money goes.
“There’s no transparency,” he says. “Imagine making a contribution to a foundation to get citizenship of a country, but the inside information of the foundation is kept secret!”
Astaphan also questions where Henley’s responsibility ends and the government’s begins.
It took St. Kitts years, but they figured it out and now the SIDF is independent. Shocking that Malta will not learn from other country’s mistakes.
This is the most scandalous aspect of this ‘individual investor programme’. Nothing can justify selling out to Henley & Partners the handling of the funds coming in, barring the need to carry out some hidden distribution before the handover of the balance into government hands.
Not that they could not find other ways. Trafigura is small fry next to this.
Henley and Partners are, in this case, simply a front organization for the PL and its top brass.
It is payback time for Henley & Partners, for putting Muscat in this puppet position – like the Manchurian Candidate.
This is also the reason why the contract cannot be published in full – because it entails much more involvement of Henley & Partners in the operation of the programme, including manning Identity Malta with Henley personnel.
You could have a point. Ray Cassar mentioned at one of the IIP sessions that Henley & Partners will be operating out of the Mediterranean Conference Centre, which is where Identity Malta’s offices are.
I wonder if they are paying rent.
On an equal footing with all other professionals, huh? I don’t have an office there and I don’t get to recommend my own clients’ applications and those of my competitors.
It’s all about money and secrecy.
If you apply now, all Henley have to do is put a date on the application that was before the change to the legal notice, and the passport can be sold there and then.
Not only that but it’s also illegal to publish the names of our new fellow citizens.
If the civil service were handling the cash and the applications, then the secrecy wouldn’t last long.
That’s why they are working late on saturdays issuing passports.
Who is supposed to be monitoring Henley?
And if the P N were selling passports on Saturday afternoons, One TV would be parked outside giving live coverage on who was emerging from the building.
Can someone tell me why Net TV isn’t doing that?
You’re so right.
I simply cannot understand how people are aware of these things going on and yet the PN are keeping mum about them.
Same with Shiv Nair. Why isn’t there a tail on him?
For it to become Watergate, we would need real journalists. I can’t see it happening.
Well , we’ve got one ……
Yes, and I have full faith that she will keep digging. This cesspit will soon overflow
I fear she’s not enough. Our Daphne, with all the best will in the world, and even with her quick intelligence, cannot do the work of a proper, well-established, mature, professional press corps.
One thing that is clear is that the Nationalist Party’s Net TV, Radio 101, and assorted newspapers were an abysmal return on investment. The dozens of journalists who learned their trade their have been unable to make the switch from feel-good Gonzian propaganda to keeping watch on the goings-on of the government.
Couldn’t have put it better. I am already hearing that there will be wholesale lining of pockets and that developers are being “asked” to contribute to a “fund” if they want their properties listed by Henley and Partners.
And the estate agents who are members of the Chamber of Commerce, which lauded the scheme, are now realising that they are left out in the cold and have to play second fiddle.
They tried doing the same thing here in Antigua but the developers eventually figured it out and would not contribute to a fund.
Your estate agents have no chance against Henley for whom the government created the whole real estate option.
What happened to the local developers, Nuri? Were they shut out and Henley ruled?
Been to Antigua many times. Loved it.
Harry,
Henley tried to do a snow job on Antigua, but the government there saw the light AFTER FIRST SIGNING a contract with Henley. It renegotiated in a tough way and got out of the contract, with certain penalties of course, things like not speaking badly of Henley etc.
Anyway, Henley went to all the developers in Antigua and tried to strong-arm them into exclusive arrangements with them for 15% or more commission, with advance payments. Same thing, I am sure, is going to happen in Malta, or is already happening, and the developers will agree and cut out the local realtors completely, as they will have no choice.
The fact is that in both St. Kitts and Antigua 95% of real estate purchasers buy their real estate through their citizenship consultant. I know this because I do this.
We have so much control over the buyers that I decided to build a 60-home residential development that I will sell to citizenship buyers as well. The local estate agents are simply not in the game as they do not provide the main service needed, which is the citizenship. Real estate is secondary.
The reins of power in Malta are in the hands of ‘pimps, thieves and scoundrels’ gorging themselves on the spoils of their electoral victory ….. funded directly and indirectly by Henley and friends
So it’s an olive branch. He was rather quick to pardon what is effectively criminal activity.
Perhaps we should have those names to assess what really happened, taf int, kontijiet tad-dawl u l-ilma.
http://www.maltatoday.com.mt/en/newsdetails/news/national/PM-urges-energy-beneficiaries-to-come-forward-20140216
These are clear-cut cases of THEFT not FRAUD, giving rise to criminal and civil action.
The government may come to terms with those responsible for the theft and collect its money and waiver civil action. But it is not correct for the GOVERNMENT to waive criminal action especially where a CRIME and NOT a CONTRAVENTION is the issue.
The Commissioner of Police would be going against the provisions of the law which establish that it is the duty of the Police to prevent offences, to investigate and to prosecute those responsible for the commission of offences.
THERE ARE NO LEGAL PROVISIONS ANYWHERE IN OUR STATUTE WHICH GIVE ANY PREROGATIVE TO ANYONE TO STOP THE COMMISSIONER OF POLICE FROM DOING THIS.
CRIMINAL ACTION CANNOT BE RENOUNCED IN CASES OF CRIME.
Nuri Katz must not be very familiar with the subculture in Malta.
The truth always comes out, for example in the case of Watergate, because the USA and western countries enjoy a free press and more importantly competent journalists.
Free press (de facto and not de jure) and competent journalists are two concepts completely alien to Malta. In Malta journalists only operate on leaks, appeasement for future favours, and hidden agendas/interests.
Most Maltese journalists have a price and are afraid that they would be shunned socially if they challege authorities. It is a very small and insular society.
Journalists who rely on their own professional work are the rare exception and not the rule in Malta.
What with groups of seemingly rich Third Country Nationals now visiting Malta nearly every weekend, it is just a matter of time before some of the individuals are recognised and outed.
The Americans and Europe, especially non-Schengen countries within the EU, will be monitoring this closely to see the affect this may have on their own country’s immigration rules.
I shall renew my passport next week and travel to London. I have always wanted to be mistaken for a Russian billionaire.
One understands the government’s need for Henly’s expertise, but to allow them to practically handle the whole scheme with such a huge profit margin is beyond belief.
They did not need Henley’s expertise.
They could have just invited 10 experts for a two day roundtable discussion about the matter, and would have learnt everything. All it would have cost is a hotel meeting room, coffee, and snacks.
Paying 200 million Euros for this seems a bit excessive.
There you go.
http://www.maltarightnow.com/?module=news&at=Henley+%26+Partners+mag%26%23295%3Brufin+g%26%23295%3Ball%2D%22a%26%23289%3Bir+%26%23295%3Ba%26%23380%3Bin%22+tag%26%23295%3Bhom&t=a&aid=99854370&cid=19
Tonio Fenech didn’t check them out properly, did he? They were the ones who advised him on that ill-fated High Net Worth Individual programme.
When it failed, they were telling all and sundry that they told the Minister that it wouldn’t work but he didn’t listen to them. Yet they hung around as his consultants anyway.
Sounds somewhat familiar, because didn’t they also say that they advised the government to put in a residency provision but the government didn’t want it? Qatt m’ghandhom tort jahasra.
I wonder if there is a hidden agreement for purchasers of our national identity that binds them to come to Malta to vote in the general elections. At the rate this sale seems to be going, there will eventually be more of these ‘residents’ than actual Maltese voters in a couple of years’ time.
What Nuri Katz is saying is more than obvious.
http://www.timesofmalta.com/mobile/view/20140216/local/mintoff.506885
Why does timesofmalta insist on using this utterly disgusting picture of that villain? Jaqq, clieq, bzieq, tartru, u generalment halqu loki. Plus a toilet mouth anyway.
I keep waiting for a really gutsy investigative reporter to start digging the dirt on this oh so cosy relationship that stinks to high heaven.
Yesterday I was given the full works at Linate airport near Milan and any Maltese who asked if we were OK (same group) all had their passports taken and checked – maybe routine, maybe not, but only time will tell.
I was in another European airport last week, where the group alighting from the plane was “mistakenly” taken to a Schengen passport control area. The nationals of the country we’d arrived in were vociferous in asking the passport control staff why we should be checked, as was I.
The passport control staff then double-checked by phoning someone and said we were brought that way in error.
Is it pure coincidence that this is the first such routing mistake experienced in decades of travel?
Something fishy happening.
There is no such thing as coincidence.
That will be the day – when the whores and pimps will be exposed for what they are.
Wishful thinking Mr Nuri Katz, you’re surely not familiar how Maltes politics work.
Clearly I am not familiar with Maltese politics. But the truth will come out no matter what.
Nuri Katz says:
“I do not understand why your Prime Minister does not trust his own government to manage the citizenship program, and insists on inserting Henley.”
I think we just need to ask the same question the other way round, just in case this might yield some meaningful answer:
“I do not understand why Henley does not trust Muscat’s own government to manage the citizenship program, and insists on doing it itself.”
Possible answers to this question could be:
1. The Sale of Citizenship is essentially a Ponzi scheme. Once you learn the ropes, you can do it without the help of others. If Henley were to trust Muscat with the secrets of the trade, then they would have no power in the deal, and Muscat could do it alone. That’s 200 million euros of commissions lost for Henleys. Implies the probability that they made him sign up to their scheme before the elections, in return for making available to him their orders book. Maybe sharing the commissions?
2. Could it be that Muscat had been engaged as some sort of “invisible” partner of Henley & Partners already before the elections?
Interestingly, you are actually correct. Governments can be very successful in creating and promoting their own IIP. This government does not seem to understand this.
As I have said many times before, if the government were to invite a group of top international immigration companies to a one day roundtable in Malta, they could be taught much of what they need to be successful, and all it would cost the government is the fee for a hotel meeting room, coffee and snacks. Not 200 Million Euros.
But obviously Henley does not trust the government to learn about the tricks of the trade, and someone in the government also, does not want to learn the tricks, as then the 200 million would end up in the government coffers and not in private hands, and that would not be good for those people.
@ Nuri Katz:
It is all about commissions.
“Prime Minister has some sort of a special relationship with Henley & Partners”
Kemm hu helu Nuri Katz…
Who was physically present at the table over which the scheme was planned, discussed and finalised?
In the days of expired Labour there used to be secretaries residing in Castille. On one occasion when the then Prime Minister was about to fly out to conclude a deal on the supply of oil, two of these secretaries almost came to blows as to who was to accompany him.
I later learned that those present at the deal would be pampered with a golden handshake.
Out for dinner last Saturday I overheard an Englishman who travels often to Malta (he was talking quite loudly in this quiet restaurant) say that Joseph Muscat seems to have shares in Henley & Partners. Given his behaviour and determination to go through with it, this sort of talk is unavoidable.
Incidentally, the same man said he reads this blog too and enjoys it.
Regarding our citizenship, I still fail to see the link with long-term investment. Also, I am against sale of citizenship, at any price, on principle. The PN seems to have steered away from this line of reasoning.
I agree with Mr Katz 100%.
There is obviously lots more to this than meets the eye. It should have been the easiest thing for Muscat to fire Henley & Partners as he should have done were it a normal consultancy relationship.
Their remit was to handle this ‘programme” (not ‘scheme’, said Kalin) in a manner so as to protect Malta’s reputation. They couldn’t have failed more catastrophically if they tried.
Firing them would have been the obvious thing to do. They could have been Muscat’s perfect scapegoat, his ‘Get out of Jail’ card. Yet he did precisely the opposite and entrenched them even further, creating more opportunity for them with the property and investment requirements.
Even removing their exclusivity was a half-baked exercise and designed to keep most out. One needs to have a professional indemnity insurance of Eur 1 million and pay a licence fee every year.
This may be fine for the big firms like PWC, Deloitte and a few of the bigger law-firms who have that professional indemnity anyway, and several clients to spread the cost over too, but it is quite an expense for those who may have the occasional client, if at all.
It is nonsensical as the level of risks are totally different.
Professionals should be left to assess their own level of risks not have this imposed on them so as to limit the players in the field. So much for a socialist government – jghin il-kbir u jghafas iz-zghir.
It is now up to the Financial Services sector as a united group to counter this. It was evident from the first murmurs that this was a strike designed to effect the Financial Services sector.
It was evident from Joseph Muscat’s repeated insistence on a promise here not to touch this sector, that all he was doing was applying a fresh coat of lipstick to keep that crowd behind him through the elections.
But the Financial Services sector keeps mum about it. The allure of participation more attractive than the bird in hand? or is it relatively too young as a sector and unused to dealing first hand with these tactics?
Those who would have had first hand experience of Mintoffian tactics were brought on board the scam early, the most notable as an envoy, not that it would have made much difference to the morals involved.
Unfair competition.
Exclusivity to one party unchallenged before a spineless Financial Services sector.
When it’s too late, it will be too late to have found a voice.
Why is the Financial Services sector not screaming out at the the European Commissioner for competition? It has all the elements it needs to pick up the baton.
But no. Too tucked-in out of habit and category to stick its neck out. Typical of the people in its make-up. Knowledgeable about every dot, comma and cent read over and balanced before despatch of communication to its clients, but missing the forest for the leaves.
Go through Joseph Muscat’s parliamentary involvement as an EP in 2006. He was the rapporteur on the issue of Financial Services. The blurring – yes, that far back for those who remain incredulous – is by his “own” hand. But the route devised is laid out as clear as crystal.
Those who refuse to look and see don’t yet realise that the tightening is double-ended.
Those for whom money is secondary to principle have long since seen it.
A bird in hand is worth two in the bush, but without instigation for control at right-now immediacy, it’s fast becoming what it was: just a vision.
We cannot afford to be complacent about ANYTHING.
Arguing about the price of prostitution never changed its nature. My heart does not bleed for wannabe agents unable to afford indemity insurance and an annual fee. None of us can afford to have a double-dealing prime minister, yet some are content as long as they rake in a bit of profit.
They actually did not remove the exclusivity; they just created a system of sub-agents for Henley.
Henley would have hired them anyway, and was in the process of doing so. Now they will first have to pass Henley’s approval and then receive a stamp from Identity Malta.
The exclusivity is totally there still. It is just another way of fooling the people of Malta to claim that it is not there.
If I were the prime minister of a banana republic that has access to citizenship of the EU or US or Canada or Australia, and I would want to design a scheme by which I would get rich quick, I would design exactly this IIP scheme.