The government will not be compensating Henley & Partners for revising its contract for the cash-for-citizenship scheme, Times of Malta is informed.
Henley & Partners won a public tender in August to design, implement, process and administer much of the Individual Investor Programme (IIP).
The firm designed the original controversial scheme in consultation with the government.
It passed through Parliament in November.
But following a negative reaction locally and internationally, the government delayed implementing the programme in a bid to reach consensus with stakeholders and the Opposition.
Henley & Partners has kept its silence since the government announced changes to the IIP on December 23.
The Prime Minister’s spokesman said: “The contract with Henley & Partners provides for enough latitude for changes in the conditions of the operation of the programme so as not to require material changes in the contract itself.”
He confirmed this meant that there was no need or requirement to compensate Henley & Partners.
“The conditions of the new programme will be further discussed with Henley & Partners in the new year,” the spokesman added.
Previously, Henley & Partners enjoyed exclusivity in marketing and selling the programme overseas, along with its authorised intermediaries who could funnel business to the firm.
When announcing the changes, Prime Minister Joseph Muscat said any legal firm, accountancy firm or financial services provider could now apply to become agents for the IIP.
During that announcement, the Prime Minister specifically mentioned that the government’s contract with Henley & Partners would be “revised”.
The original scheme would have provided for the outright sale of citizenship for €650,000 per applicant, with no requirement to live in the country or make a long-term investment.
Among the scheme’s changes announced last week, applicants will now also have to purchase property worth at least €350,000 or spend at least €16,000 a year on rent, as well as invest €150,000 in government stocks, bonds or shares – all of which must be retained for five years.
A cap has also been introduced: after 1,800 successful candidates are chosen, the IIP will be closed.
However, there is still no requirement for beneficiaries to live in Malta.
Wealthy applicants will still also be able to purchase Maltese citizenship for spouses and children for €25,000 each, as well as adult offspring and dependent parents for €50,000 each.
The Opposition has opposed the scheme on principle as it does not agree with selling Maltese citizenship outright.
Among other things, Henley & Partners was asked by this newspaper whether it supported the revisions, what role it played in discussions on the changes, and if it would be seeking compensation from the government for revising its contract.
“Henley & Partners is not available for comment at this time,” said CEO Eric Major in an e-mail.
This position was echoed by office manager Daniela Bugeja, who refused to comment via telephone on Monday.