The newspaper EU Observer has withdrawn part of a story on the Maltese citizenship scheme where it said that Malta government spokesman Kurt Farrugia had refused to rule out the possibility that the government may opt for extra quotas once the cap of 1,800 successful applicants for the scheme is reached.
Mr Farrugia had immediately denied the report.
"We are ruling out any other quotas," Mr Farrugia told timesofmalta.com.
EU Observer itself amended its report after being contacted by Mr Farrugia.
The Brussels-based newspaper carried an extensive feature on the citizenship scheme, its focus being on how British consultancy firm Henley & Partners stands to make tens of millions of euro for helping Malta create up to 20,000 new EU citizens-on-paper.
“The scheme will provide money for a €1 billion investment fund in the tiny Mediterranean country, whose national budget is just €3 billion a year.
“It will see Malta sell 1,800 passports for €650,000 each.
“But every main applicant can buy additional passports for children up to 26 years old, for their spouse, and his or her spouse's parents and grandparents, for between €25,000 and €50,000 per head.”
It points out that several EU states have similar schemes, but they require people to live there for a few years before they get citizenship.
But the new Maltese citizens would hardly have to set foot in the country to change their status.
The rules oblige them to visit Malta to swear an "oath of allegiance." They also oblige them to buy or rent Maltese real estate and buy Maltese financial instruments, such as stocks or bonds, which might force them to visit two or three times more to sign related documents.
On Henley, the newspaper says the government hired Henley to design the legal and administrative structures behind the project. It will also provide day-to-day services, such as marketing, and vetting of potential buyers.
In return, it will get a 4 percent cut of the €650,000, €50,000 and €25,000 passport fees.
Henley will also compete with other Malta-based agencies to process sales and plans to charge buyers €70,000 each for its services.
The set-up means that even if nobody adds on relatives, and even if Henley sells just 10 percent of the 1,800 places, the firm, which is based in Jersey, a British tax haven, stands to bring in some €60 million.
The newspaper quotes Mr Farrugia giving details on the four-tier due diligence process which applicants will be subjected to.
EU Observer said it had posed as a potential Iranian buyer in an email to Henley's Dubai office.
The firm wrote back saying: "Malta will be very strict to not face a risk in the EU. Therefore only persons with a top background will be successful ... We do not know yet if they will accept Iran citizens. We have to see."
It highlighted that there is "no residence requirement."
Full story at http://euobserver.com/justice/122627