A number of people, including Identity Malta employees, were arrested yesterday following a surprise raid at the agency’s offices in Valletta.

The arrests follow a thorough investigation by the Security Service over the past weeks. The government said the probe “has identified rackets and abuses which have been going on for at least the last five years”.

The arrests follow the arraignment of former Labour Party treasurer Joe Sammut a few weeks ago who was accused of registering hundreds of false trading companies with the Malta Financial Services Authority in order to obtain residence permits for Libyan citizens.

Data obtained by the Times of Malta shows that, during the past two years, the number of residence permits issued by Identity Malta more than doubled.

From an average of 5,500 permits to non-EU citizens, the number of permits issued reached record highs hitting 13,798 in 2014.

Only last year, the number of Libyan nationals who obtained Maltese residence soared to 3,486, up from an annual average of fewer than 500 in the preceding years (see table).

The surge in the number of Libyans granted residence rights started in the year Labour returned to power when the total more than doubled over the previous years.

The same pattern was followed in the case of other nationalities. More 1,000 residence permits each were granted to Russians, Serbs, Filipinos and Ukrainians in 2014.

In a statement, the government said the arrests were made following information it had passed on to the relevant authorities.

It accused the Prime Minister of admitting institutionalised corruption by agencies that fall under the direct control of people with very close ties to Labour

It quoted Prime Minister Joseph Muscat saying that the latest developments showed the government’s serious intent of eradicating abuse “without looking at anyone’s face”.

Dr Muscat said the time when such rackets continued operating without anything being done by the authorities was over.

The Nationalist Party reiterated its request for a full and independent inquiry into “institutional corruption” on the issue of residence permits at Identity Malta.

It accused the Prime Minister of admitting “institutionalised corruption” by agencies that fall under the direct control of people with very close ties to Labour.

Non-EU citizens obtaining residence