Minister’s discretion on IIP applicants ‘being misinterpreted’

The power granted to the home affairs minister to allow applicants for the Individual Investor Programme who are subject of a criminal investigation to be still considered eligible for Maltese citizenship, was being "misinterpreted", according to the Prime Minister.

Nationalist MEP candidate Stefano Mallia expressed his concern at the inclusion of this proviso in the legal notice putting into question the power granted to the minister.

But according to Prime Minister Joseph Muscat, Mallia was "misinterpreting the situation".

He argued that an applicant must first undergo the due diligence process. If the individual interested in purchasing a Maltese passport fails the due diligence process, "his application doesn't even reach the minister".

"The minister also has the power not to approve a person's application even if that person would have passed the due diligence process," he said, adding that the government had discretionary power from time to time.

Pressed on the fact that the law did not stop a person undergoing criminal investigations from applying, Muscat said no criminals would be awarded Maltese citizenship.

"Nelson Mandela was sent to prison. Was he a criminal?" he said, referring to the South African anti-apartheid icon who died in December 2013.

Mandela had been imprisoned under terrorist charges by the South African government and was targeted by foreign governments such as the UK.

Muscat reiterated that the Individual Investor Programme would attract the highest level of talent network with the money coming in from the applications alone will be enjoyed by the Maltese communities.

"Like economist Karm Farrugia said, what usually takes 15 years can be done in a shorter time. Local councils can be helped with their infrastructural projects, community centres can be developed, housing estates can be improved."

Muscat refused to confirm rumours that Jacques Villeneuve, the Canadian Formula 1 world champion in 1997, was interested in purchasing a Maltese passport.

"I won't comment on any particular individuals. But what is for sure is that it is unacceptable that we have certain media harassing prospective investors. This is not the way how to treat investors," he said.

The Prime Minister also stood by his experts' advice that there was "no basis" for the European Commission to open infringement proceedings against Malta. A political expert who preferred not to be named, told MaltaToday that the Commission was "not bluffing" and that it had "sufficient legal grounds for proceeding".

The Maltese government and the European Commission will engage in talks over the matter in the coming days.

Asked whether he excluded any new changes to the IIP, Muscat said he would first wait for the talks with the Commission to take place.