Issue link: https://maltatoday.uberflip.com/i/1193631
maltatoday | WEDNESDAY • 18 DECEMBER 2019 JAMES DEBONO LABOUR leadership contender and deputy Prime Minister Chris Fearne has committed a future Labour government with him as PM to scrap the Individual Investor Programme and replace it with a new scheme negotiated with Brussels which "does not harm Malta's image abroad." In an interview to the Times of Malta, the aspirant Labour leader described the controversial sale of citizenship as a "good source of income" both for Malta and the practitioners working in the field. But Fearne is now committed to start a new scheme "which is different from the one in place together" following discus- sions with European institutions – in- cluding the European Parliament – and local practitioners. The IIP, alongside similar ones in other EU members states like Cyprus, had been repeatedly condemned by the European Parliament. Although the European Commission had in 2016 'endorsed' the scheme fol- lowing the introduction of a 12-month residency clause, it has increasingly ex- pressed concern on the inherent risks, in particular as regards security, money laundering, tax evasion and corruption related to golden passport schemes. The reform will take place once the cur- rent scheme reaches its cap, something which expected to happen within the first 100 days of his premiership. Under Muscat, the government had taken no commitment on what it would do with the scheme after the cap is reached. But in a clear indication that the government's intention was to retain the scheme, in January 2018 the govern- ment commenced a public consultation through an online poll with the first ques- tion being whether the number of appli- cations under the IIP should be capped at law or left at the open discretion of the government. The main objective of the updating and revision of the Programme was "to ensure it remains at the forefront in reputation, attractiveness and rigor- ousness". The current programme is capped at some 1,800 main applicants: that does not include dependants. Fearne's misgivings on the IIP is in synch with the views of the majority of respondents in opinion polls. A recent MaltaToday survey found that 56.3% disagree with the Individual Investor Programme. The IIP was recently at the centre of controversy after a French TV sting re- corded one of the passport agents boast- ing about his close connections with people in power and how authorities can close an eye. The agent's licence has been suspended and all his applications, past and present, are being probed. Citizenship Parliamentary Secretary Julia Farrugia had defended the scheme saying that this resulted in €544 million being poured into the National Develop- ment and Social Fund (NDSF), a good portion of which is used for social causes to help the vulnerable. Applicants for a Maltese passport under the IIP should have at least a 12-month residency status in Malta although this has never been understood as implying physical presence on the island. The other requirements are the purchase (minimum €350,000) or lease (minimum €16,000 per annum) of property; a contribution of €650,000 per main applicant plus a contri- bution in respect of the spouse (€25,000) or other dependants (€25,000 – son/ daughters under 18, €50,000 – unmarried sons/daughters between 18 and 26 and parents or parents-in-law above 55) ac- companying the main applicant; and the purchase of Malta Government Bonds or locally listed securities and equities amounting to not less than €150,000. The contract with Henley & Partners, the concessionaire of Malta's IIP's pass- port sale scheme, obliges the Maltese gov- ernment to send, whenever requested, appropriate high-ranking government representatives, or other senior govern- ment officials, to speak at the events and represent the Programme and the gov- ernment. The Prime Minister himself had participated in these road shows. Chris Fearne committed to replace current IIP scheme Chris Fearne