Posterity fund for passport sale cash set up

A National Development and Social Fund has been legally set up to receive a portion of the funds payable to Individual Investor Programme, the scheme set up by the Muscat administration for the sale of passports.

The posterity fund will be in the form of a government agency under the stewardship of the home affairs minister.

Malta sells passports to so called ‘high net worth individuals’ for the price of €650,000, apart from making a €350,000 property acquisition and €115,000 financial investment binding on prospective buyers. All IIP applicants must have been residents in Malta for 12 months prior to acquiring their passport.

The IIP regulations set out that 70% of contributions received by Identity Malta under the programme shall be paid to the National Development and Social Fund, with the remaining 30% free to be used for the government’s consolidated fund.

No details are specified as to whether the ‘ring-fenced’ fund will include restrictions on how the money will be spent on sustainable levels, but an agency performance agreement has yet to be drawn up. 

The National Development and Social Fund Agency will receive, from the Identity Malta Agency hat regulates the IIP, a percentage of revenue received from the IIP to finance “major projects of national importance; projects and initiatives in the public interests.”

The money will also be used for:

• projects of public interest, to promote the advancement of education, research, innovation, justice and the rule of law, employment and public health;

• contribute to the development of better public services;

• support enterprise and business in improving its competitiveness;

• promote research and development in matters conducive to the public interest;

• help stakeholders to deliver social, employment and educational projects;

• foster initiatives that support reforms and better governance;

• support measures for the improvement of the fairness and efficiency of justice;

• foster initiatives encouraging gender equality, prevention of discrimination, and respect for human rights;

•  assist initiatives to provide for the social housing needs of the population and to combat social exclusion;

• to sponsor initiatives for the improvement of health, health care and care for the elderly; and

• undertake initiatives for the benefit of future generations.

A CEO will represent the agency and act under the direction of a board of governors, who are must ensure accountability and transparency are adhered to.

The agency will also have an advisory board of four members appointed by the minister, chaired by the CEO.