Issue link: https://maltatoday.uberflip.com/i/1183920
NEWS maltatoday | WEDNESDAY • 13 NOVEMBER 2019 2 CONTINUED FROM PAGE 1 Chetcuti Cauchi's IIP licences had been suspended in the aftermath of the French TV documentary, and the regulator was asked to vet all applications, past and pre- sent, submitted by the firm. The report was passed on to the Office of the Prime Minister and published by Parliamentary Secretary Julia Farrugia Portelli this afternoon. "An analysis of these observations has not uncovered any red flags which sup- port, in all or in part, the purported al- legations. No records were found of applicants having a criminal record or of applications being presented for the minister's consideration more than once. There was no indication of collusion be- tween the agent and the responsible min- ister, or that the former at any point since the start of the programme had ever re- ceived preferential treatment," the regu- lator said. Chetcuti Cauchi's boastful claim that the firm had a 100% success rate was also debunked with the investigation finding that the company had an 84% success rate. A comparative analysis with other big firms acting as passport agents, showed there were others with higher success rates. In a scathing comment on the claims by Chetcuti Cauchi, the regulator said it can only conclude that the agent could be charged with disseminating "totally mis- leading information". The regulator described this as "insen- sible sales promotion" which "unduly put in very bad light" the Individual Investor Programme in Malta and abroad. The regulator also concluded that the Prime Minister, Justice Minister Owen Bonnici and Farrugia Portelli, "were grossly slandered" by the claims of famili- arity made by Chetcuti Cauchi. All three Cabinet members had denied affording Chetcuti Cauchi any advantag- es, insisting that claims made during the broadcast were either untrue, or harked back to childhood friendships. In a statement this afternoon, Farrugia Portelli said that she ordered an analysis of the recommendations put forward in the report. Regulator recommendations The regulator reiterated recommenda- tions made in his annual reports for an ICT system to be introduced that would cut out the manual processes and make it easier to track application processes. He also recommended a change in the law that gives the minister power to over- rule a refusal if an applicant has a crimi- nal record. The regulator said the inves- tigation found that this clause in the law was never invoked, insisting it should be removed because it "serves only for de- tractors of the programme to continue pushing forward the idea that criminals are 'buying Maltese passports'". The regulator has also suggested that the IIP Agency accepts only those ap- plications where the more economically wealthy partner is listed as the main ap- plicant. "Although, in theory, it is irrelevant as to who should be the main applicant since rigorous due diligence checks are carried out on the applicants nonethe- less, the fact that sometimes a partner of limited economic means should enter into a number of commitments… makes a mockery of the whole process," the reg- ulator said. The head of the IIP agency, Jonathan Cardona would not comment when con- tacted about the conclusions of the inves- tigation. It remains unclear whether the suspension of Chetcuti Cauchi's licences will be lifted. A separate magisterial inquiry into the allegations requested by NGO Repubb- lika is ongoing and the police are investi- gating the firm. Still unclear whether the suspension of Chetcuti Cauchi's licences will be lifted JAMES DEBONO PLANNING gain paid for the Villa Rosa development has been slashed from €623,325 to €116,187 following a decision by the Environment and Planning Review Tribunal. A permit issued in February 2018 for office and commer- cial development along Saint George's Bay stipulated that de- veloper Anton Camilleri had to pay €623,325 to the Planning Authority's fund for environ- mental and urban improvement projects in St Julian's. But following a decision taken last week by the Environment and Planning Review Tribunal, Camilleri will be paying less than a fifth of the established sum. The project would see the dem- olition of the Moynihan and Dol- phin houses to erect office over six floors, a nine-storey com- mercial development overlook- ing the beach, a low-rise hotel at Cresta Quay, a car park for 1,449 cars as well as the restoration of the historical Villa Rosa and the construction of bangalows in the valley watercourse area. The planning gain imposed on Camilleri's project was based on a formula multiplying each square meter earmarked for resi- dential and commercial develop- ment (24,933 sq.m) by €25. The Planning Board established the formula in August 2017 dur- ing the processing of an applica- tion for an additional five storeys on the 14 East Gzira high rise. On that occasion board chair- man Vince Cassar argued that " to ensure that the new rate is ap- plied to all future high rise devel- opments it should be stipulated as a fixed rate per square meter". A rate of €25 per square me- ter was proposed and approved. Subsequently the Planning Directorate started to base its formula for major projects in- cluding low rise ones, on this formula. The same formula was used to establish the planning gain for other major projects including the Farsons project in Mriehel and City Center project in Saint George's Bay, the permit for which has since been revoked. But in its decision the EPRT re- verted back to a rate of €4.66 per square meter which applied to projects approved before August 2017. In his appeal Camilleri argued that the imposition of the new planning gain created a situation of "inequity" between projects approved a few months before and his project. In its decision the Tribunal con- cluded that the 400% increase in the planning gain constituted a very "radical" change which re- quired a more "in-depth study." While acknowledging the pre- rogative of the board to impose a planning gain, the tribunal con- cluded that the radical change in the way the planning gain is calculated constituted a change in policy, which went beyond the prerogative of the Planning Board. The developer will still be ex- pected to give an extra €50,000 contribution to the artistic fund administered by the Arts Coun- cil as stipulated by the original permit. St George's Bay developer to pay €500,000 less to environment fund Jean-Philippe Chetcuti is the managing partner of Chetcutu Cauchi Advocates, the passport agent at the centre of controversy after a French TV sting