The Opposition this evening objected to the blacking out of some clauses of the government's contract with Henley and Partners, the main administrators of the Individual Investment Programme (the passport scheme).

The objection was made as the Public Accounts Committee held its first meeting to scrutinise the contract.

(See a copy of the contract and subsequent amendment on pdf below)

Committee chairman Tonio Fenech said that while he agreed that issues affecting national security should not be made pubic, the Opposition was requesting an explanation from the government or Identity Malta about the clauses which had been blacked out, and may ask the Speaking to give a ruling about whether such deletions were justified.

Justice Minister Owen Bonnici said the parts which were blacked out consisted of commercially sensitive information. The clauses had been blacked out in the national interest because this was a highly competitive area and one should not give give away information which could undermine his competitiveness.

Both sides agreed, however, that in another meeting an explanation would be given of what the clauses consisted of.

Follow proceedings live on stream below and the text underneath.

 
At the beginning of the meeting Justice Minister Owen Bonnici in a declaration of conflict of interest, explaining that he had met various representatives of Henley and Partners and discussed the programme with them.

He was also involved in the preparation of the programme, where he was assisted by Henley and Partners. He had had no contact with Henley before the company was selected after a public call.

Mr Fenech said he was leaving it up to Dr Bonnici to decide whether he wished to participate in the committee’s meetings.

Dr Bonnici said he had made his declaration and there was nothing to stop him sitting on the committee, unless the members decided otherwise.

Mr Fenech said he had no problem with him staying, but he may also be asked to answer questions.

Labour MP Charles Mangion asked what the purpose of the scrutiny was. He observed that  the IIP had been launched as a result of a government decision. The political debate on the programme had been held locally and abroad and since then the programme had gathered momentum and elements of the private sector were involved in it.

It was not the role of the committee to examine and debate the executive decision about the programme, and the proceedings should not impact on the government’s decision. The committee could examine whether the normal practices leading to the award of the contract were observed.

Mr Fenech said it was a duty of the PAC to scrutinise the government’s decisions and procedures. Otherwise it might as well close down. The committee would examine the contract and the commitments the government had entered into. 

The committee meets again on Wednesday.

PAYMENT DETAILS

The contract provides that Henley will not be directly reimbursed by the government but will be paid 4% of the Contribution by applicants to the IIP.
Six per cent of the Contribution will be paid to Identity Malta and the remaining 90% shall be paid into an independent investment vehicle.

Henley or its agents, however, remain free to charge the usual professional fees to applicants in line with industry standards.

The Contribution listed in the contract is: Main applicant €650,000. Spouse and children €25,000 each. Unmarried children above 18 but below 25: €50,000 each. Retired parents aged over 55 €55,000 each.

Due diligence fees: Main applicants €7,500. Spouse 5,000. Children below 18, €3,000. Unmarried children aged between 18-25: €5,000. Retired parents above 55, €5,000.

Last month, Henley said the Individual Investor Programme (IIP) had received over 400 applications since its launch.