Citizenship scheme should serve to create jobs - Tonio Fenech

The Opposition is yet to take a stand on the proposed Individual Investor Programme (IIP) as it is still looking into the details of the draft legal notice published this week.

However, the Nationalist Party is adamant that the programme should serve to attract persons who invest and create jobs in Malta, beyond the funds generated by the fees paid by applicants.

Former finance minister Tonio Fenech said the Nationalist Party has a number of reservations on the proposed programme, mainly centering on the absence of a link between granting citizenship and direct investment in the country.

"Unfortunately, the government's proposal makes it seem as though Maltese passports will be up for sale without requiring direct investment in the country, apart from the fees," Fenech said.

The MP pointed out that the impression the government is giving is that anyone who shows a desire to purchase a Maltese passport will be accommodated, without any further requirement to invest and create jobs in Malta.

Asked whether he believes that the €30 million target set by the government for the first year is realistic, Fenech said that although it seems that the government is confident about attracting around 40 individuals, "there has been no mention of how many jobs will be created".

He insisted that the government should focus on attracting individuals who invest money and create jobs in Malta, beyond the fees that individuals need to pay in order to acquire a Maltese passport.

While saying that the PN was not opposed to the setting up of a National Development Fund that will be financed by the IPP fees, the Opposition would rather have the country attract sustained investments which create jobs and wealth.

Furthermore, Fenech expressed his concern at the clause, which states that the minister may exercise discretion in cases concerning "applicants who may be subject to politically motivated charges or convictions".

"There are two fundamental questions. What will the real economic contribution be? Will individuals who acquire citizenship enhance the country's reputation?"

Fenech pointed out that Malta already attracts foreign investors through its good reputation and sound legislative structures.

However, sounding a cautionary note, Fenech said: "I would never accept an individual who is unfit to apply, not even if we receive €10 million. We have to decide what kind of image Malta should have. Should we allow ourselves to create a reputation as a country which is desperate and ready to sell passports at all costs?"

He added that a strict and independent screening process should be in place to ensure that the programme is not counterproductive.

Fenech warned against accepting everyone, including individuals from shady countries, which he said could scare off genuine investors if Malta gets a reputation for being a haven for unwanted individuals.

"We have a good reputation and we shouldn't spoil it," he said, adding that it would be a mistake if Malta provides citizenship to questionable characters, who do not necessarily have to be criminals or convicted persons to tarnish Malta's reputation.

"I disagree with the clause which gives the minister discretion to accept individuals claiming to be victims of political persecution. We cannot have an open door policy. Applicants do not have a right to Maltese citizenship. It's up to the government, and we should not project ourselves as a country that's desperate for money."

He added that Henley & Partners, selected as the concessionaire in the scheme, had floated the idea of a citizenship scheme when the company was offering its consultancy services to the previous administration on the permanent residency scheme.

"We did take the idea into consideration at a preliminary stage when I was in office. However, we had made it clear that any such scheme must guarantee investment, jobs and enhance the country's reputation."

Asked whether he agreed that names of applicants should be kept secret, Fenech said that the programme should be transparent and that any doubts about the applicants should be detected at an early stage, before any applications are approved.