Eur1.17 billion: that’s why they’re NOT going to let this one go
The headline last February
The ‘capping’ of the sale of passports at 1,800 applicants (not passports, because each of those applicants can also buy passports for their spouse, children, step-children, parents and parents-in-law) gives us some idea of how Labour’s road-map has been ‘kostid’.
Everybody’s talking about that figure of 1,800 – we’ve all noticed it. But the figure that SHOULD be in the headlines and fixed in everyone’s mind is 650,000 x 1,800 = 1,170,000,000. That’s right: EUR1.17 billion.
I imagine the Nationalist Party’s not talking about it because they think people might suddenly be turned on by that sexy figure, and begin salivating – pretty much as Labour has done – at the thought of 1.17 billion euros for ‘nothing’ (it’s not nothing at all, and the consequences can be pretty enormous).
But that’s wrong – not just because people are angry about this on a matter of principle which doesn’t change with the price, but also because it points up to some really serious flaws in Labour’s ‘kostid roadmap’.
Remember that they never told us how it was ‘costed’ or what those costings were. They didn’t tell us up ahead that they planned to sell passports, either.
The two are related. Labour’s costings are based on revenue of Eur1.17 billion (minimum) from the sale of passports, and not on any real and sustainable plans for bringing in revenue through economic growth. And that’s a recipe for disaster, the equivalent of oil-states which just sell the oil and fail to develop their economies or society, because it’s just so easy that they needn’t bother.
I see further significance in that figure of 1,800 and no, I don’t think it’s a coincidence because unfortunately I seem to have some kind of freakish insight into how those minds work.
Outgoing prime minister Lawrence Gonzi made headlines last February when he successfully negotiated a EUR1.12 billion in EU funds for Malta.
Muscat has set the applicants figure at precisely 1,800 – not 1,500 and not 2,000 – because that translates into EUR1.17 billion.
So the bottom line is: PM Gonzi got the money through negotiations with the EU. PM Muscat gets it by selling the very EU passports he told us we shouldn’t even have ourselves.
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Excellent observation, Daphne.
Do you remember Joseph Muscat’s reaction when Lawrence Gonzi announced the figure of Eur 1.12 billion?
“Been there, done that”
See also one of my comments here:
http://daphnecaruanagalizia.com/2013/11/you-dont-need-evidence-but-rational-assessment/
Bingo.
Put this article in the same context and you will see that all they are trying to do is sell passports to give houses to bums : http://www.independent.com.mt/articles/2014-01-06/news/-labour-supporters-after-two-things-jobs-and-housing-ivan-grixti-3605135362/
How utterly petty.
The EU money has a lot of strings attached to it, in the positive sense – they can only be spent on specific projects or sectors for the benefit of society.
The sale of passports has no strings attached and hence can be squandered on anything from stadiums, housing, artificial islands, etc.
Just have a look at the way oil exports has become the curse of Africa. Instead of being used wisely for education, addressing poverty, etc, it is being used for ‘grandeur’ projects, corruption, private planes for the dictators. Most of the cash oil proceeds never make it to Africa in the first place.
They’re NOT going to let this go, and it’ll go through. Popular opinion will eventually turn in their favour. We’ve seen it countless times, from Arriva to the new power station. When you’ve got the country’s most powerful newspaper dancing to your tune, you’ve got it everything pretty much sewn up.
The clue, as always is Shiv Nair. And that Holland Park address. And lawyers.
Since I have neither the money, nor the wish to get embroiled in libel suits, I’ll leave it there.
Another issue which has been overlooked up to now regards the publication of names. We haven’t been told whether only the applicants’ names will be published or those of the entire family group.
This is important because if someone wants to avoid detection, they will get their great-aunt or their wife’s grandpa buy the €650,000 passport and get their names on the Government Gazette. The real millionaire would then discretely get a €25,000 family passport, perhaps even a few weeks after the main applicant, so as to avoid the limelight.
Will the due diligence process be carried out only on the main applicant or on every member of the family?
Now that the figure of EUR 1.17 bn is being paraded to much fanfare even in Maltese newspapers (at our expense probably), how is this reality reconcilable with Edward Scicluna’s stuttering statements that: a) this is not a cash thing but a talent-driven incentive; and b) that this scheme was financially irrelevant since it would have raised ‘only’ EUR 30m?
They still do not have any idea how to add that much to the economy through respectable national strategies that exploit EU channels/membership of the EU internal market – which means hard work at political and technical levels within the hard economic EU context/realities and protectionist sentiments that prevail amongst EU member states and foreseen to continue with the envisaged results of the forthcoming MEP elections and the new Commission later on this year.
This ‘scheme’ says so much about the modus operandi of this government – instant gratification, short sightedness. It does not augur well.
This reminds me of my first lecture in corporate strategy many, many years ago – immediate profitability or long term strategic logic? The previous administration seems [today] to have gone for the strategic logic path…and the building of value…long term value and economic performance.
This administration so far is hurting more than eyes and ears could see or hear. At the very least, they need to get their political act right… NOW.
God forbid that your interpretation means that Joseph Muscat is making sure of having an equivalent and alternative source of income should his policies lead to the loss of funds from the EU obtained by Gonzi. Has he something else up his sleeve that he has not declared in his electoral manifesto?
What ‘Stupids’ don’t realise, or realise but don’t say is that a Maltese passport can ONLY garner that amount of money because Malta forms part of the EU.
To put it bluntly, even if the MLP government manage to pull this one off, it’s only thanks previous PN governments and not thanks to the anti-EU Sant Muscat tandam.
Losers.
This is mainly a moral issue: you don’t sell your citizenship to make a quick buck if you have any self respect, just as you wouldn’t hesitate to flatly decline any offer to prostitute yourself.
In all probability, one minister in particular is still trying to figure out exactly how many zeros there are after the first digit for this scheme to materialise.
Apologies for sidetracking but – no comment by our government on this issue either:
http://www.bbc.co.uk/news/world-middle-east-25642463
Although location has not been disclosed, the Mediterranean should wake up to the impact all this dumping.
“The PN will on Thursday be meeting members of the MCESD civil society committee and the Gozo Regional Committee.”
http://www.timesofmalta.com/articles/view/20140107/local/pn-.501774
“Busuttil also noted that he would be holding two further meetings with MCESD later this week. Moreover the prime minister will be meeting MCESD members on Friday”
http://www.maltatoday.com.mt/en/newsdetails/news/national/Simon-Busuttil-slams-government-s-fake-consultation-on-IIP-20140107
Dr. Simon Busuttil should postpone his Thursday meetings with the MCESD to Saturday.
Excellent point. Additionally, they focus on applicants, because they would still get the money if the application is refused.
The PN is at it again. Its world-controlling illuminati who continue to control the world media and who influence and control world leaders from Obama to Merkel at their whim have now made the Austrians publish this too:
http://diepresse.com/home/politik/eu/1513777/Maltas-lukrativer-Handel-mit-EUPaessen?_vl_backlink=/home/index.do
Those conniving PN world controllers, darn them.
Daphne,
I have the following questions and must have missed arguments providing answers to them:
How many consultant firms like Henley exist in the World ?
What exclusive right as the sole EU country will the Maltese government have to run this scheme ?
What’s keeping other EU countries from running identical schemes ?
What’s Malta have to offer that another EU country can’t ?
Why would a prospective applicant choose Malta over such other country ?
Wouldn’t at least one other country to offer such a scheme be enough to burst the billion euro bubble ?
Many.
None.
Self respect and risk of a revolt by the electorate.
Maybe.
Can I answer instead?
– How many consultant firms like Henley exist in the World ?
Lots. One of them is Apex, run by Nuri Katz who wrote an excellent op-ed in The Times of Malta today. But no other firm has ever been given such decision-making powers, powers which should only belong to national governments. And none has ever been put in such an obvious position of conflict of interest, where it provides the due diligence and receives a cut on successul applications at the same time.
– What exclusive right as the sole EU country will the Maltese government have to run this scheme ?
In theory, it can refuse Henley & Partners’ decision. But that decision does not come with a dossier, because Henley and Partners is not obliged to provide the details of the due diligence process; only to give a green or red light. Since H&P’s profits will come from the sale of passport, and they are after all a profit-making venture, why should they refuse custom?
– What’s keeping other EU countries from running identical schemes ?
Basic decency, solidarity among fellow European friends, and the morality of mature democracies
– What’s Malta have to offer that another EU country can’t ?
Do you mean in terms of a Maltese passport or residence? Mostly it’s a very lax fiscal regime. If it were as easy to obtain another EU passport, Malta would be an attractive choice for this reason. So the people after a Maltese passport are really after an easy way to stash away their wealth, earned perhaps by illegal means. But since other EU countries are not the whores we are and do not sell passports.
– Why would a prospective applicant choose Malta over such other country ?
Because no one else is a whore. See previous answer.
– Wouldn’t at least one other country to offer such a scheme be enough to burst the billion euro bubble ?
See a previous answer. Other countries will never stoop to such levels, because they know that the nation-state exists only by virtue of self-imposed moral codes. We are a young and incredibly immature nation, and we haven’t the faintest clue about these things. But it’s also because of the irreparable damage it does to the economy. A country that sells passports sends out the message that it is bankrupt. And who would want to invest in a bankrupt country, or do business with it, or buy its government bonds?
Qishom qahba f’xalata.
Thanks, H.P. Baxxter.
I only wish that things are much different from what Nuri Katz said as his article is really shocking.
As regards to your last answer, maybe the government is comfortable that most of the nation’s bonds are bought by Maltese citizens.
The battle cry of most Labour supporters now is “last year GonziPN gave out 1000 passports for free.” These people only think of money and would sell their own mother for the right price. They fail to understand that some things cannot be bought and sold.
What about those acquiring citizenship having the right to vote in the general elections as I believe is the case? We can all guess which party will be best served if those acquiring citizenship via this scheme bother to vote. The consequences of this could be catastrophic.
They’d need to be resident in Malta.
And good thing too. If all those Maltin tal-Ostrellja were to vote, it would be a 90% Labour majority each time.
Excellent observation. You need to deduct Henley & Partners’ commission from that figure though.
Ouch. It just goes to show you that money can buy anything. Even a country’s honour.