Issue link: https://maltatoday.uberflip.com/i/1384247
10 OPINION 10.6.2021 P rime Minister Robert Abela is confident that he will address concerns raised by the Europe- an Commission aer receiving notice of further action in the infringement pro- cedures against Malta with regards to the citizenship-by-investment scheme. Cyprus has already mothballed its con- troversial Golden Passport program and now Malta is the only major EU country seriously trying to attract millions osten- sibly charged to applicants for a Golden Passport. Consequently, Malta has been given two months to take all measures neces- sary to address the Commission's con- cerns. If government's reply is unsatis- factory, the Commission could take a further step and issue a reasoned opin- ion on the matter. Infringement proce- dures against Malta were launched last October. Quick on the draw, the Prime Minister claimed that this legal action was being instigated due to attacks by the Nation- alist Party MEPs over the sale of pass- ports, and that one could stigmatize the MEPs for failing to defend Malta at EU level. However, a joint investigation dubbed "e Passport Papers" found that sev- eral IIP applicants under the previous scheme were not fulfilling an obligation to visit the island. A survey discovered they were spending only an average number of 16 days in Malta prior to receiving their passport. Government emphasised that the Maltese citizen- ship-by-investment programme em- ploys meticulous due diligence, and that there have been cases where citizenship was revoked even after the application was accepted. Is this a storm in a teacup since we have heard so many stories about IIP scheme that the general public is im- mune to such claims? Fleetingly, it re- minds me of the Ancient Greek fable of Jason searching for the Golden Fleece. Be that as it may, the controversy about the scheme seem to resurrect now and again. Certainly, gifted agents have made a tidy sum and stories of patron- age from Castille have evoked anger among hard working practitioners, who did not enjoy such privileges. Only last year, the smell of corruption wafted in the air when a local newspa- per gave front page prominence to a sto- ry that the Golden passport was appar- ently issued to Saad bin Khalid Al-Jabri. e latter, being a former high-ranking minister in the government of Saudi Arabia who is currently exiled in Cana- da and who claimed to be the victim of a state-sponsored assassination attempt. Certainly, a politically exposed per- son (PEP) with an international pedi- gree who ostensibly should have been singled out under the so-called tight scrutiny of the previous IIP regime. Ob- viously, Saad Al-Jabri had a guardian angel in Malta protecting his claim to enter the gilded hall of naturalised Mal- ta persons. Surreptitiously, there is a provision in the law that allows Identity Malta (now re-coded Komunita) to reconsider any application if there are "special circum- stances" which are demonstrated by his agent. In that case, the Malta Individual Investor Programme Agency, can issue a reasoned opinion on why the candi- date should be considered for approv- al, and the application is referred to the Minister – who has the sole authority to grant the application or otherwise. e writer is an accredited agent who recently has had a number of bona fide applications refused for hitherto tal- ented persons - these could financially have contributed to State coffers. is at a time when the country's debt has spiralled to finance a Covid-19 stimulus cash vouchers and wage supplements. Following such unexplained refusals, letters were sent by me to the independ- ent regulator which alas elicited no sol- ace to the aggrieved applicants/agents other than the usual mantra that a pass- port is a concession and not a privilege. All this comes like a Damocles sword over the efforts of local agents to attract millions of euro (no surprise that the number of accredited agents under the new Komunita scheme has waned). Al- most two years ago, it was MaltaToday that revealed how a top local IIP agent (armed with two licences) had been se- cretly recorded by a French TV news programme, brazenly boasting of his close relations with Joseph Muscat - an ex-prime minister and the then parlia- mentary secretary for citizenship. A promotional video waxing the prowess of the said agent was filmed entirely under the auspices of Castille in its grand board room. Following the uproar from Opposition, the minister in charge immediately suspended the two licenses. A swift investigation followed - activat- ed by the regulator's office and another inquiry instituted both by the Standards Commissioner and a magistrate. e in- dependent regulator clinically found no basis for such accusations and gave it a clean bill of health. Now the IIP scheme has been rebrand- ed and unceremoniously buried. e irony is that Henley & Partners, which has been a sole concessionaire since inauguration of the IIP scheme has qui- etly faded from the scene. Definitely, over 180 local agents who promoted the scheme faced stiff competition from Henley & Partners, since the latter had all its global conferences exclusively ad- dressed by Joseph Muscat. It is alleged that such patronage by Castille was a gift to the concessionaire. Needless to say, no such patronage was on offer to the rest of the unremu- nerated agents who on their own steam funded similar promotional events. Magnanimously, the hon Joseph Mus- cat, unquestionably showered positive comments each time he addressed for- eign delegates at Henley & Partners' global events. Concluding on the theme of the Gold- en Fleece, can Robert Abela succeed in persuading Brussels that as a latter-day Jason, he can divert the deadly lures of Song of the Sirens (aka Maltese MEPs) and deliver us the magical fleece? A golden fleece and umbrageous passports George Mangion George Mangion is a senior partner of an audit and consultancy firm, and has over 25 years experience in accounting, taxation, financial and consultancy services. His efforts have seen PKF being instrumental in establishing many companies in Malta and ensured PKF become one of the foremost professional financial service providers on the Island Saad bin Khalid Al-Jabri