Issue link: https://maltatoday.uberflip.com/i/754383
maltatoday, WEDNESDAY, 23 NOVEMBER 2016 7 News Henley chairman: 'nothing wrong' in reproducing foreword CONTINUES FROM PAGE 1 Ka- lin confirmed that Fenech had written the foreword when he was still a minister, "in ac- knowledgement also of the good work we provided to the then PN government to assist them with the then residence programme at that time". "The foreword is still relevant today so it was continued in subsequent editions," he added. Kalin confirmed that Fenech's contribution had not been a paid one, insisting that the firm had never "paid anyone anything for a foreword or article for any of our publications. Individuals are invited and they contribute on the basis of merit". In the e-mailed reply, Kalin went on to add: "Thank you for covering our Global Residence and Citizenship handbook. I would just urge you not to cre- ate an elephant out of a non- existent f ly. There is absolutely nothing wrong with having a former minister writing a fore- word, except perhaps for some politically extreme minded people." Finance minister silent on Henley's 'hidden' commission on government stocks TIM DIACONO FINANCE minister Edward Sci- cluna refused to answer why Hen- ley and Partners – the concession- aries of Malta's sale of citizenship scheme – earn a 4% commission on the sale of government stocks to passport buyers. The commission was recently made public by the regulator of the Individual Investor Programme, who said in his annual report that Henley are not just making money from the standard 4% they are paid on the €650,000 that applicants pay for a Maltese passport, but also another 4% every time applicants purcahse the mandatory €150,000 in government stocks – the invest- ment element of the citizenship scheme, together with a €350,000 property or annual €15,000 lease. Speaking in Parliament yesterday evening during a debate on a Bill to transpose an EU directive aimed at preventing financial market abuse, PN MP Kristy Debono took the op- portunity to question Scicluna why Henley is being paid this commis- sion when it is not even a licensed stockbroker. Moreover, she noted that the standard commission paid by the Treasury to brokers on Malta gov- ernment stocks at IPO stage is 0.3% - ten times lower than that granted to Henley. Invoking George Orwell's famous quote that "all animals are equal but others are more equal than others", she warned that the news has "shocked" the financial sector. "It has become the order of the day for the government to remain silent on serious allegations that are shocking the sector," she said. In his response, Scicluna did not even refer to the revelations, in- stead choosing to urge the Opposi- tion not to sow doubt in the finan- cial services sector. He said that he had been handed totally false information by MEPs – such as that the Maltese tax au- thorities are not cooperating with their German counterparts, and that the Maltese government is re- fusing to publish a report drafted by the former head of the Finan- cial Intelligence and Analysis Unit (FIAU) Manfred Galdes "I'm not pointing fingers at any- one but damage is being done," he warned. Labour MP Charles Mangion accused Debono of trying to sow doubt about the financial services sector, and urged the Opposition to take a clear and definitive stance on the IIP. "First they were vociferously against it, then they agreed with the amended version, now they are saying that they will not renew it once the 1,800 quota has been reached…they should take a clear stance on the scheme or stop talk- ing about it." In total since the launch of the IIP, over €26.7 million in stocks were acquired, which left approximately just over €1 million in Henley's pockets. Henley has so far pock- eted an additional €5.8 million in commissions on the passports sold since 2014. The Opposition has also accused justice minister Owen Bonnici of lying to Parliament – noting that he had told a parliamentary com- mittee in 2015 that Henley did not receive any commissions over and above the standard 4%. MaltaToday journalists called to testify in Bogdanovic inquiry MALTATODAY journalists Sav- iour Balzan and Matthew Vella have been called to testify before an in- ternal inquiry, launched after Mal- taToday revealed that Xewkija Ti- gers midfielder Daniel Bogdanovic had been released on police bail so that he would be able to play a foot- ball match. The internal inquiry is being headed by former army commander Carmelo Vassallo to determine the facts of the case. The journalists were called in after MaltaToday on Sunday published parts of a written declaration sent to Home Affairs Minister Carmelo Abela in which they detailed the se- quence of events. "Our testimony is being requested 15 days after the inquiry was set up, and only after we noted that we had not yet been called to testify," Balzan said. "Whilst we will always protect our sources, as is our legal right and ob- ligation, we are ready to cooperate with the inquiry and to sustain what MaltaToday has reported." Last Sunday, MaltaToday also re- vealed that it was Police Assistant Commissioner Carmelo Magri who personally contacted the Gozo po- lice station to talk to senior officers about Bogdanovic's arrest. Bogdanovic was arrested for threatening his wife and being in possession of a gun outside his resi- dence, a day before he was expected to play against Kercem in Gozo. It was Bogdanovic's wife and her brother – Ghajnsielem footballer Ferdinando Apap – who filed a criminal complaint with the police on threatening mobile phone mes- sages that Bogdanovic allegedly sent her, and which led to the player's ar- rest. The internal inquiry was expected to hear how Bogdanovic, arrested on Saturday, 29 October, was re- leased on police bail the following day, Sunday, to allow him to play at 3pm that afternoon.