Issue link: https://maltatoday.uberflip.com/i/467065
maltatoday, SUNDAY, 22 FEBRUARY 2015 News 7 MATTHEW VELLA THE concessionaries of Malta's sale of passports, Henley & Partners, oblige the Maltese government to provide its top brass to promote the Individ- ual Investor Programme – the sale of Maltese citizenship at €650,000. The government's contract with citizenship specialists Henley was ta- bled last Wednesday in parliament at the start of a Public Accounts Com- mittee meeting to discuss the IIP con- cession. It is through this contract that Prime Minister Joseph Muscat has been bound to promote the IIP at Henley's regular roadshows around the world. As stated in Article 7.4, it is at the concessionaire's own discretion that from time to time it organises, at its own cost and expense, conferences and events to professionally promote the IIP worldwide. "The government will ensure to send, whenever requested by the con- cessionaire, appropriate high-ranking government representatives, or other senior government officials, to speak at the events and represent the Pro- gramme and the government. "The government shall also use reasonable endeavours to arrange that one or several of its investment promotion agencies shall participate in those events as partner, sponsors, or by providing further specialised speaker of the event programmes." The contract was published with some sensitive clauses blacked out, 16 months after news of the IIP came out in November 2013. The Opposition has objected to the blacking out of the clauses. Muscat has so far addressed audi- ences in London, New York, Miami and Singapore on Henley-sponsored conferences in which he advocated Malta's citizenship sale as a way of "at- tracting talent"… as well as €650,000 in cold hard cash, an added €150,000 investment in financial instruments, and €350,000 in property or an an- nual €16,000 in rent over the course of five years. The contract provides that Henley does not get directly reimbursed by the government but is paid 4% of the €650,000 from IIP applicants, while another 6% goes to the government agency Identity Malta, and the re- maining 90% is paid into an independ- ent investment vehicle, the National Social and Development Fund. The government has resisted releas- ing the Henley contract since it was forced by the Opposition to introduce the added investment requirements on property and finance, removed Henley's exclusivity on promoting the IIP, and also to negotiate a minimum 12-month residency requirement with the European Commission. However, IIP regulator Godwin Grima has called on Identity Malta to provide clear guidelines of what is considered as admissible proof of residence in Malta. "This is so that actual or poten- tial applicants will know up-front the onus upon them to prove their residence requirements in Malta," Grima said. On 29 January, 2014, the European Commission announced that a mini- mum 12-month residence preceding the day of issuing the naturalisation certificate was necessary for Malta to go ahead with the IIP. But it has remained unclear wheth- er an IIP applicant has to establish himself physically on the island at the time of applying for citizenship. Grima has suggested in his report that proof of residence can be pro- vided through a water and electricity bill, a bank statement, a telephone, mobile or television statement. There are currently 85 accredited agents, apart from Henley & Part- ners, promoting the IIP internation- ally. 459 applications have been submit- ted for residence permits, as part of the IIP requirement. According to the analysis carried out by the Of- fice of the Regulator, 59% of all IIP applicants came from former Soviet republics; 30% from the Asian con- tinent and 3.5% from the African continent – 18% derived from Mid- dle East countries whilst 9.8% hailed from the Gulf. Applications from BRICS countries – Brazil, Russia, India, China and South Africa – represented 61.3% of total applications. Capped at 1,800 applications, the IIP is expected to reap €1 billion each year over the course of the next three years with 600 applicants annually. mvella@mediatoday.com.mt Secure Investment Secure Investment Issue of Issue of €120,000,000 120,000,000 in in Fixed Rate Fixed Rate Malta Government Stocks Malta Government Stocks (subject to the over (subject to the over-allotment option of allotment option of an additional sum of an additional sum of €60,000,000) 0,000,000) MALTA GOVERNMENT MALTA GOVERNMENT STOCKS STOCKS _______ _______ (i) 2% M % Malta alta Government overnment Stock tock (Fifth Fifth Issue) Issue) Fungibility Fungibility Issue Issue maturing in 20 maturing in 2020 20 at at €105.75 105.75 with a YTM of with a YTM of 0.937% 0.937% (which corresponds to an (which corresponds to an annualised annualised rate of rate of 0.940%) 0.940%), and , and _______ (ii) (ii) 3% M % Malta alta Government overnment Stock tock (First First Issue) Issue) maturing in 20 maturing in 2040 40 at at €100.00 100.00 with a YTM of with a YTM of 3.000% 3.000% (which corresponds to an (which corresponds to an annualised annualised rate of rate of 3.022%) 3.022%), or , or Fixed Rate Malta Government Stocks The Accountant General announces that the price for each Fixed Rate Malta Government Stock offered for subscription by members of the public has been established as follows: Applications Applications open open on on Monday Monday 23 23 rd rd February February, 2015 2015 at at 8.30 30a.m. and and close close on on the the time time and and dates dates as as hereunder, hereunder, or or earlier earlier at at the the discretion discretion of of the the Accountant Accountant General General: •at at 5.00 00 p.m. on on Wednesday Wednesday 25 25 th th February, February, 2015 2015 for for applications applications by by any any single single and/or and/or joint joint applicants applicants which which in in the the aggregate aggregate do do not not exceed exceed €100 100,000 000 per per person, person, and and •at at 12 12.00 00 (noon) (noon) on on Monday Monday 2 nd nd March, March, 2015 2015 for for applications applications in in the the form form of of sealed sealed bids bids (auction) (auction). MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH INTEREST PAID UP MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH INTEREST PAID UP TO THE DAY OF RE TO THE DAY OF RE-SALE OF STOCK SALE OF STOCK SECURITY SECURITY CONTINUOUS LIQUIDITY CONTINUOUS LIQUIDITY INTEREST EVERY SIX MONTHS INTEREST EVERY SIX MONTHS (The value of the investment may go up or down during the tenor of the Stock) Treasury Department, The Mall Building, The Mall Treasury Department, The Mall Building, The Mall - Floriana Floriana, Malta , Malta (iii) Any combination of the above two Stocks which (iii) Any combination of the above two Stocks which in in the the aggregate shall be aggregate shall be €120,000,000 120,000,000. Application Application forms forms may may be be obtained obtained from, from, and and lodged lodged at, at, all all Members Members of of the the Malta Malta Stock Stock Exchange Exchange and and other other authorized authorized Investment Investment Service Service Providers Providers on on the the indicated indicated dates dates. The The Prospectus Prospectus and and the the application application forms forms may may also also be be downloaded downloaded from from the the Treasury's Treasury's website website at at www www.treasury treasury.gov gov.mt mt. Bids Bids on on the the prescribed prescribed forms forms are are to to be be deposited deposited in in the the Treasury Treasury Tender Tender Box Box or or transmitted transmitted by by fax fax on on2596 25967210 7210or orby bye-mail mailat atthe thee-mail mail addresses addresses indicated indicated on on the the application application forms forms. Prime Minister contractually bound to promote IIP Prime Minister Joseph Muscat in Miami with Henley chief executive Eric Major: Muscat is top draw when it comes to promote the IIP abroad. IIP regulator Godwin Grima tells Identity Malta to clarify 12-month residency requirement