‘Desperate’ government putting country’s reputation at risk with citizenship sale

The Opposition would vote in favour of the Individual Investment Programme if the scheme is linked to long-term investment and residence and the secrecy and the minister's discretion are removed, MP Tonio Fenech said. 

"As things stand, it certainly is not a scheme which the opposition will vote for because it does not send the right message on the country's drive to attract investment."

Describing it as a "desperate act by the finance minister to rake in 15 million to boost his budget," Fenech said the scheme created zero jobs.

"Applicants are not even required to reside in Malta, let alone open a company or a fund. It only requires a one time donation with absolutely no ties to long term investment."

Compared to other similar schemes abroad, the IIP falls short on a number of criteria, Fenech said.

Serious investors, Fenech added, look for investment opportunities, however the government was in a rush and claimed that it did not have time to amend the scheme to require mandatory investment or residence. 

"The government is only after making easy money, I've never seen such desperation," Fenech said, adding that the scheme has been rubbished as being a "cheap" way to resolve financial woes by international institutions such as Bloomberg. 

Fenech also pointed out that the consultation meetings with the government were only held on the instance of the Opposition and said that the decision to go for a donation system rather than long term investment "came from the top."

"This donation system would encourage persons fleeing their country to take up the offer, instead of attracting serious investors and strengthening the country's reputation," Fenech said, hitting out at the lack of a clear definition of what kind of investors the country is after. 

He added the scheme remind him of shops which cut their prices drastically during the sales, triggering suspicion on the quality of the products on sale. "This scheme dispels the Prime Minister's declared ambition to make Malta the best. Instead of making Malta the best, you are making Malta the cheapest."

The government was prepared to damage the country's reputation for a meagre 15 million, Fenech said. 

The former finance minister added that the Opposition cannot agree with the scheme if this remains unchanged and went on to underline the PN's suggestions. 

He said the government lacked humanity and the scheme was marred with hypocrisy. "The government is ready to accept 60 or 70 families every year however does not want to host refugees unless they have 650,000 with them. Where is your humanity? You only look at people's bank accounts."

Fenech said the Opposition would be in favour of a scheme which requires mandatory residence over a five-year period and a quota system. 

He shed doubts on the possibility of attracting a number of applicants from Russia which had been one of the reasons why Cyprus faced bankruptcy. "Lets be careful. What we are discussing in this House could put at risk what the country has achieved over the years in the financial services sector." 

Insisting that the Opposition sought consensus, Fenech said that the government had snubbed the PN's recommendations. "We were told that changes could be done after the draft law is approved. Why don't we get it right straight away?  That is why we are against the proposed law," Fenech said. 

The Visa waiver and the double taxation agreement with the US was regained after convincing the US that the country is not a tax haven, however the government was being "naive" and putting all this at risk, Fenech said. 

On Henley's conflict of interest, Fenech said that he was shocked at the government's failure to realise that the company has a clear conflict, while insisting that the screening process should be carried out by the government as previous administrations had always done. 

"Why are we reinventing the wheel? Isn't the government capable of carrying out a serious due diligence. What a shame. We have already witnessed the government's failure in this with the Shiv Nair saga," Fenech said.

While acknowledging that secrecy makes the scheme more attractive to applicants, Fenech said that there is much more than attracting big quantities of applicants in the scheme, adding that this could put the country's reputation at risk. 

"Why should any serious investor want to keep the investment and citizenship secret?" Fenech asked. 

a few minutes later, tempers flared as former health minister Joe Cassar accused the government of attempting to bulldoze over the opposition and the rest of the country by approving the draft law hastily before the Budget vote. 

"This is the beginning of your end," Cassar warned, to the evident displeasure of the government MPs.