Updated | PN accuses PBS of not reporting Scicluna’s golden passport gaffe

Labour Finance Minister blunders his way trying to defend the indefensible cash-for-passports idea in EP.WATCH http://t.co/AmyZ9VlXnC #Malta — Roberta Metsola MEP (@RobertaMetsola) December 5, 2013

Government insiders have expressed regret at comments by finance minister Edward Scicluna which betray the haste with which Malta created a 'golden passport' scheme to sell passports for €650,000 to rich exiles.

Addressing a financial and economic affairs committee meeting in the European Parliament, Scicluna may have given too much of a frank 'apology' when he said that Malta had rushed on the IIP (Individual Investors Programme).

"What happened was that... the team that got into the project of how to attract investors... ran very fast, beyond the project to have an investment bank. If I was an MEP here I would say, 'for goodness' sake, I wouldn't expect that from Malta'... it was very unfortunate and its being corrected," Scicluna said of the much-criticized IIP.

Government insides who spoke to MaltaToday recognised that Scicluna had "given the Opposition a new soundbite to capitalise upon", and that they were bracing themselves for more.

Scicluna said that the IIP was launched before the Central Bank could set up a national development fund or long-term investment bank, and said that this was down to the haste of the "marketing team" handling the IIP.

He said the prime minister was now meeting the leader of the Opposition to propose changes to the IIP, including removing a condition of anonymity for IIP citizens that was suggested by international consultants Henley & Partners, the concessionaries of the IIP.

Scicluna also denied that the IIP was designed at reducing Malta's deficit burden, saying a token of €15 million from the scheme was a drop in the ocean for a €3.2 billion budget.

"Small Malta gives out 1,000 citizenships on marriages alone... we won't invade the Schengen zone with new passports, and we're seriously considering capping it at not more than 50 a year.

"It's not true that Malta will be a gateway... to have all the Chinese buying a passport to get into Europe. This investment must be developed... the person will reside in Malta and ideally have property in Malta. It has nothing to do with taxation, because they can be taxed in their own country."

In a statement, the PN filed a complaint with the Public Broadcasting Services, saying that it had neither reported Scicluna's comments in the EP, nor the PN's statement on his speech.

"Scicluna's admission in the EP had no news value for the PBS, while other news outlets reported these comments and gave them prominence. Once again, the PBS newsroom is censoring whatever could embarass the Labour government... this was another case of media imbalance by PBS to which the PN is demanding an effective remedy."