Should second round of IIP be capped like the first one?

Identity Malta will be asking the public whether the number of applicants in a second round of the controversial Individual Investor Programme should be capped like the first one, or whether this should be left at the discretion of the government.

The agency will also be asking the public to look at the obligatory criteria for prospective new citizens, legal dispositions and whether any new services should be offered to individuals who invest in Malta.

The IIP is otherwise known as Malta’s citizenship-for-sale scheme, whereby wealthy individuals can buy or rent property in Malta and invest a minimum of €650,000 to obtain a Maltese passport, allowing them free movement in the EU, among other benefits.

The government has been under fire over the scheme since its launch in 2014, with many MEPs and other foreign and local politicians saying that it is unethical to put a price on EU citizenship.

They say that the scheme’s safeguards are weak and that the system has been abused and used by shady individuals. Russians top the list of people who obtained a Maltese passport through the IIP.

The government defends the scheme by pointing out that it is approved by the European Commission.

Henley and Partners are the concessionaires for the IIP, but many local agents are also involved in the scheme. Prime Minister Joseph Muscat regularly attends Henley roadshows around the world, earning himself the nickname of ‘salesman.’

The first version of the IIP had been amended four times, and was capped at 1,800 successful applicants. Later, the government had announced that it would extend the scheme by another round.

In November, the government had announced that €360 million deriving from the scheme had been deposited in the National Development and Social Fund.

Questions were raised when €150 million from the fund were used to purchase Bank of Valletta shares. The Opposition had cried foul, saying that this was not among the 12 specific purposes of the NSDF. But the fund said the high return on investment would “contribute to the Fund’s sustained long-term growth for the benefit of future generations.”

In its statement yesterday, Identity Malta said the government had a mandate to extend the IIP scheme. It said it was seeking to consult the public with the aim of improving and strengthening the programme.

More details about the public consultation exercise can be found at www.konsultazzjoni.gov.mt.