The fact that people have been arraigned means that proper checks and balances are in place, according to Identity Malta, the agency that issues residency permits.

In a statement last night, following concern about government silence on the Sammut case raised by the Nationalist Party, Identity Malta said it had introduced a “rigorous” system to detect residence permit abuse “months ago”.

The agency withdrew, rejected or revoked applications containing false information and the applicants could not reapply. Applications from third country nationals were screened by the Police Immigration Office, while Interpol records and the Schengen Information System were consulted, the agency said.

Requirements for applications for residence submitted in connection with investment must include “tangible proof” that the applicant was engaged in “serious plans” to do business in Malta.

Applicants are also required to present authentic documentation about their actual place of residence in Malta.

Identity Malta has utmost trust in the executive and judiciary

The residence permit cannot be collected unless the applicant presents the letter, sent to that address, notifying him or her that it has been issued.

The agency said it had assisted the police when fraudulent information was submitted as part of applications for residency.

“The fact that people are arraigned in court is proof that the proper checks and balances are in place. Identity Malta has the utmost trust in the executive and judicial institutions of our country,” it said.

Earlier, the PN said the government and Labour Party had both been worryingly silent over the allegation that a former PL candidate and party treasurer had been involved in a fraudulent residency scam. PN deputy leader Beppe Fenech Adami questioned why the Prime Minister, the Home Affairs Minister and the PL executive had all failed to react to allegations that some 800 companies had been fraudulently set up through Joe Sammut.

“I would have expected a denial or a reaction of some kind... But the silence is telling,” Dr Fenech Adami said.

The allegations had revealed “institutionalised corruption” showing Malta was “caught in a net of deceit and criminality”.

“We have a situation where people close to the government and PL are involved in cases of corruption,” he said, also referring to the Gaffarena and Zammit scandals.

He later questioned where, in the light of this scandal, the PL had obtained the financing for its electoral campaign. He did not elaborate.