An international company that Henley & Partners said would be conducting due diligence on those seeking to buy Maltese citizenship has denied any connection with the administrators.
In its submission to the government’s expression of interest, Henley and Partners said the due diligence would be subcontracted to IPSA International, one of the leading foreign firms offering such services.
However, IPSA was never involved or consulted by the selected bidders on this role, according to a letter seen by Times of Malta.
When contacted, a spokesman for Henley & Partners admitted the company had “not requested formal permission from IPSA to use their name when submitting their bid to the Maltese government”.
However, a company spokes-man added: “We had informed IPSA [after winning the bid] that Henley & Partners was going to recommend them as a service provider. They most certainly confirmed their interest and have since submitted a formal proposal for services.”
IPSA had originally been working with Arton Capital, another company bidding for the same expression of interest, which placed second in the Government’s selection process.
According to a clarification letter sent by IPSA to Arton Capital, after the latter objected to its dual involvement, the company’s chief executive Dan Wachtler said Henley & Partners used the company’s name in the tender document without permission.
“IPSA was never contacted formally or informally by any third parties [Henley and Partners] with regard to the call for specialist services, Individual Investor Programme, Public Service Concession published by the Maltese government,” Mr Wachtler insisted.
IPSA was not asked to be named as due diligence service provider by any third parties besides Arton Capital
“IPSA was not asked to be named as due diligence service provider by any third parties besides Arton Capital.”
Arton Capital has already initiated legal procedures against the government over the selection process of its administrator. The company is alleging the selection process was incorrect and against the law.
The Government has dismissed Arton Capital’s claims and insisted everything was done above board and according to law.
The proposed scheme has sparked a controversy because the purchase of citizenship is not linked to any investment and eligible candidates need not own property on the island nor invest on a long-term basis.
The US government, which in 2008 integrated Malta and a number of EU member states into its Visa Waiver Programme, declined to take a position on whether the new cash-for-citizenship programme would affect Malta’s standing in its visa-free travel programme.
A spokesman for the US embassy in Malta said: “At this time we have nothing to say on the issue.”
Sources told this newspaper that US officials had already started making inquiries with EU officials on this programme. However, for now, the US seems to be “gathering information”, the sources said.
Home Affairs Minister Manuel Mallia has said he is not aware of any contact over the issue between the US and the Government.
In an interview with this newspaper last week, Henley & Partners CEO Eric Major said the Caribbean Islands of St Kitts and Nevis, Antigua and Barbuda and Dominica were the only other countries in the world, apart from Malta, that sold immediate citizenship against a fixed donation.
The firm was chosen by the government to act as the administrators and promoters of the Maltese scheme.