Update 3 | Ministers attack conflict of interest over PN threat to withdraw citizenship

Home Affairs minister Manuel Mallia has attacked the Nationalist opposition's stand on the citizenship-by-investment scheme, claiming the party's position has vacillated between a principled stand to one of disagreement on the specifics of the Individual Investor Programme.

"We've heard various interpretations," Mallia said, flanked by parliamentary secretary for justice Owen Bonnici, and parliamentary secretary for the economy Edward Zammit Lewis. "Today the PN's statement shows the Opposition wants to discuss amendments to the law we are putting forward."

The PN today said it would repeal passports issued under the IIP, if it is returned to power. Prime Minister Joseph Muscat has already promoted the programme in London to sell Maltese citizenship at €650,000 - he claims the scheme could reap €30 million in revenues that will be ring-fenced into a 'national development fund'.

Mallia today said the revenue from the IIP, by attracting wealthy persons, would have a multiplier effect on the economy through additional investment, the purchase of property, and the creation of jobs.

"The Opposition is scaremongering in the same manner as it did during the elections. But seven months in, this government has proved it wrong. The PN has learned nothing from the negativity it displayed in the last elections," Mallia said.

He accused the Opposition of wanting to delay the IIP. "We are not steamrolling this issue over anybody: how can the Opposition be in principle against the IIP and at the same time demanding that it discusses amendments."

Mallia also pointed out that Nationalist MP Francis Zammit Dimech's legal firm had represented citizenship firm Arton Capital, in an appeal on the home affairs ministry's decision to award Henley & Partners an exclusive concession to promote the IIP. "Would the PN have been positive about the IIP had this company won the tender?" Mallia asked.

"The Opposition is harming the country's reputation by scaring off potential investors. I urge it to stop doing so," Mallia said.

On his part, parliamentary secretary for justice Owen Bonnici said that concessionaries Henley will be paid a commission equivalent to 4% of the applicants' fees, and not €140,000 as alleged by Nationalist MP Jason Azzopardi. 90% of the 'donation' towards the IIP will be poured into a national fund.

In the meantime, Arton Capital is contesting the concession tender in court through the legal counsel of Nationalist candidate Therese Commodini Cachia.

"Having two PN members representing this company leads me to wonder whether the PN has members who favour the IIP, and whether it would have had no problem with the scheme had Arton won the concession," Bonnici said.

Bonnici also insisted that Opposition leader Simon Busuttil's intention to repeal any passport issued under the IIP, if returned to power, was unconstitutional.

"I would understand a position in which he says he would stop the IIP. But repealing citizenship? It's worrying that someone aspiring to be prime minister declares that he will just withdraw citizenship at the stroke of the pen."

In reaction to this afternoon's press conference, the PN reiterated that the government was adamant on selling passports at a discounted price.

"In the Prime Minister's absence, three members of the Cabinet tried to justify the sale of passports with weak arguments which go against the country's interests," the PN said.

The opposition accused the prime minister of "stubbornly insisting on a wrong decision which will damage the country's reputation, not only in Europe but in the rest of the world."

Muscat, according to the Opposition, is also ignoring objections flagged by financial services professionals which have warned the government on a number of shortcomings in the draft law.

"It is now evident that the prime minister is not ready to listen to anyone as long as he gets what he wants."

PN threatens IIP withdrawal

Joseph Muscat's plan to sell citizenship for €650,000 has become politically charged after the Opposition declared it will repeal all passports issued under the new scheme.

The Labour Party today said that the PN and leader Simon Busuttil were damaging the country's reputation and playing into the hands of a financial advisory company that had not won a tender to be the Individual Investor Programme's exclusive concessionaire. Nationalist MP Francis Zammit Dimech's legal firm represented Arton Capital in its appeal on a tender decision, and Nationalist candidate Therese Commodini Cachia is now representing the company in a legal challenge to have the concessionaire's contract repealed.

The Nationalist Party is insisting that its intention to repeal citizenships acquired through naturalisation under the Individual Investor Programm, if returned to power, is constitutional and according to law.

Labour claims Busuttil's intention to repeal IIP passports is informed by his own party members' conflicts of interest.

The Attorney General this week told MaltaToday that repealing citizenship, unless according to the Citizenship Act's provisos, was unconstitutional.

The Attorney General said no minister can repeal citizenship acquired by naturalisation, unless "specific acts" are committed by the naturalised citizen. "Deprivation of citizenship acquired by naturalisation is provided for by law on the basis of specific acts attributable to the naturalised citizen and is subject to procedural safeguards in each individual case. The wholesale deprivation of citizenship of a particular class of naturalised citizens irrespective of their conduct is not possible under our Constitutional and legal system," Peter Grech said.

The Citizenship Act allows a minister to deprive citizenship if naturalisation is obtained by means of fraud, false representation or the concealment of material fact.

Ministers can also deprive citizenship to: who shows himself to be "disloyal or disaffected" towards the President or the government of Malta; engages in acts of treason with an enemy in a war in which Malta is engaged; is jailed in any country for more than 12 months, within seven years of becoming a citizen; never sets foot in Malta over a period of seven years.

"The citizenship-by-investment scheme as proposed by Prime Minister Joseph Muscat puts Maltese identity on sale, lacks transparency, and opens up the doors to abuse of power," the PN said in a statement.

The scheme, which Muscat yesterday promoted to a London audience of financial services practitioners, will sell citizenship for €650,000. On its part, the Opposition does not agree with the way in which the IIP will work, which gives a concessionaire, Henley & Partners, the exclusive right to promote the scheme and forward applicants to government agency Identity Malta. The PN says Henley will be carrying out the bulk of due diligence on applicants that it will itself promote.

"Despite our appeal to review the scheme, as well as offering to find consensus, Muscat is promoting the scheme overseas and riding roughshod over the House of Representatives, which has not yet approved this scheme," the PN said.

Muscat will be in Miami in November to attend a Henley conference on global residence and citizenship.

"We are warning that when returned to power, we will repeal every citizenship sold by the present government, and this is in line with the Constitution and the Citizenship Act, which give the government the right to repeal citizenship. Muscat should stop being stubborn in trying to sell our citizenship at a cut price."