Nationalist MP Jason Azzopardi warned this evening that the 'citizenship for sale' scheme and the way it was already being promoted in Russia could seriously endanger the visa waiver agreement which Malta had achieved with the United States.
Speaking when Parliament started debating amendments to the Citizenship Act, Dr Azzopardi said Malta was witnessing the privatisation of its citizenship. This was scraping the bottom in as far as Malta's reputation was concerned.
Malta was the only country in Europe with the dubious distinction of offering its citizenship for a donation, without an investment requirement. And there was no country anywhere in the world which gave a foreign company- the Henley Group - the exclusivity to receive, process and decide applications. Henley would be receiving €140,000 commission for every application received plus €100,000 from each applicant. It was to this level that Malta's citizenship was being reduced.
The Opposition, Dr Azzopardi said, was against the sale of citizenship. It was however in favour of the granting of citizenship under a proper, serious programme linked to major investment.
But the Opposition wanted seriousness. This Bill said in its objects and reasons that citizenship could be granted to whoever made an 'extraordinary contribution' to the country. But the Bill actually showed that the only requirement was payment of €650,000, which was hardly anything to the rich of the world. Even a minister in Malta had admitted to having €500,000 in cash at home.
This Bill was plagiarism of legislation of tax havens in the Caribbean. The prime minister would also be rubbing shoulders with the leaders of those conference in a Miami conference next month which Malta would sponsor.
Dr Azzopardi denied that he ever expressed himself in favour of any sale of citizenship. When the minister first discussed his plans in early June, they were very embryonic and only referred to an investment programme. Then the minister never spoke to the Opposition for months. The Opposition first learnt of the details from outside the government, and it was the one which requested a meeting after the Bill was received as an email.
During that meeting, a consultant for the government said in reply to questions that the government had been 'strongly advised' to peg the programme with investment, but the government was 'in a rush'.
As a result, somebody may be granted citizenship without ever stepping on Malta and without ever making any investment here, as long as he made a donation of €650,000.
Although this law had still not passed, the Henley Group was already featuring content in its website, saying the key to success was 'securing relationships with key partners, such as government officials'.
Henley was already making presentations in Russian which said that holding a Maltese passport meant visa-free travel to the USA.
US VISA WAIVER PROGRAMME THREATENED
This, Dr Azzopardi meant that the visa waiver programme between Malta and the US was being very seriously threatened. Malta had worked very hard to achieve that programme, and should it be scrapped, it would be very detrimental to Malta, Dr Azzopardi said.
It was also shameful, Dr Azzopardi said that the Henley Group, who would be conducting the due diligence of applicants, was already promising Russian clients a fast track approval against additional payment of 50 per cent of its usual fee. This indicated good contacts with the government and reeked of corruption.
The government was literally playing Russian roulette with the country's future, Dr Azzopardi said. What was happening was shameful of the government and irresponsible of Henley.
Dr Azzopardi said the rules of the scheme were also shame and even reckless.
The rules said that anyone submitting false information 'may' be rejected.
Furthermore, applicants could even go before their own lawyer, in say Russia or Azerbaijan, to declare that he had a clean criminal record. So much for due diligence. And so much for Malta's reputation.
Malta, he said, should not prostitute itself. The government should reconsider because the damage to the country would ultimately be higher than the €30m in revenue which the government was planning to make from this quick buck.
See government's introduction at http://www.timesofmalta.com/articles/view/20131028/local/government-to-have-final-say-in-granting-of-citizenship-minister.492336#.Um7A0FPFrZg