The European Union has warned of action against Malta over its controversial passports-for-sale programme after a leak revealed that wealthy applicants planned to spend less than three weeks a year on the island to secure citizenship.
The leak of thousands of emails and documents from the architect of the scheme, London-based consultancy Henley & Partners, showed how wealthy applicants proposed to claim residency by renting apartments for a year and then leaving them empty, The Guardian newspaper reported.
Hundreds of families have applied for Maltese nationality under the scheme that started in 2014. The initial terms for a passport required €650,000 ($781,583) to be given to a national fund, investments in property on the island and a year-long residency.
But the leaked emails showed that applicants sought to exploit a lack of clear rules on the residency requirement.
The British newspaper said it reviewed 250 letters of intent from applicants from the early years of the scheme, detailing to the Maltese authorities how they planned to establish links with the country.
The letters showed the applicants planned to stay for an average of 16 days a year, while donating to charity and holidaying on the Mediterranean island to prove their links, it said. One internal email, following an inquiry from a Middle East applicant, questioned whether spending 7-14 days in Malta would be sufficient.
European Union lawmakers previously warned that the lack of controls on the scheme could turn the country into a money-laundering centre. The bloc said that schemes run by Cyprus and Malta could “undermine the essence of EU citizenship”.
It launched a legal process against the two countries last year, which could result in a finding that EU law has been violated. The two countries responded late last year and the EU said it was considering their responses.
“The Commission will not hesitate to take next steps, as needed,” said an EU spokesman. “As we have always maintained, European values are not for sale.”
Henley & Partners claimed the scheme had allowed Malta to spend millions on healthcare, social and cultural investments. Malta received more than €590 million in the first four years of the scheme.
But Maltese campaigners say the programme has increased the cost of housing on the island and created an easy route for potentially dirty money into the EU. Large numbers of Russians have applied through the scheme, as well as Chinese and Middle Eastern investors.
Henley said: “We are fully aware of the potential inherent risks in handling client applications for residence and citizenship and have invested significant time and capital in recent years to create a governance structure that is committed to the highest of standards, with due diligence at its heart.
“However, ultimately it is the responsibility of the countries involved to investigate and vet applicants."
It said that less than 1 per cent of applications had "been called into question or been found to have potentially misused" the system.
The scheme was the target of an investigation by high-profile Maltese journalist Daphne Caruana Galizia before her murder on the Mediterranean island in October 2017, when her car was bombed. The leaked documents were sent to a foundation set up in her name and it shared them with media organisations.
Before her death, the journalist claimed that politicians were involved in kickbacks from the scheme, allegations which were denied by the government.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
The%20specs
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Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
Company%20profile
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The specs
Price, base / as tested Dh135,000
Engine 1.6L turbo
Gearbox Six speed automatic with manual and sports mode
Power 165hp @ 6,000rpm
Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
COMPANY%20PROFILE
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The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Rashid & Rajab
Director: Mohammed Saeed Harib
Stars: Shadi Alfons, Marwan Abdullah, Doaa Mostafa Ragab
Two stars out of five
Essentials
The flights
Emirates flies direct from Dubai to Seattle from Dh6,755 return in economy and Dh24,775 in business class.
The cruise
UnCruise Adventures offers a variety of small-ship cruises in Alaska and around the world. A 14-day Alaska’s Inside Passage and San Juans Cruise from Seattle to Juneau or reverse costs from $4,695 (Dh17,246), including accommodation, food and most activities. Trips in 2019 start in April and run until September.
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
The years Ramadan fell in May
