Destination Europe, a prominent immigration consultancy firm in Malta, is facing a severe scandal following an investigation by local media outlet Times of Malta. The firm’s director and shareholder, Josef Friedrich Santin, alongside its parent company, Delsk Cyprus, have been implicated in corruption and money laundering allegations in Cyprus.
The key figure in this case is Cyprus’s former Minister of Transport, Marios Demetriades. According to prosecutors, Demetriades allegedly accepted a €2.5 million bribe from Chinese buyers to expedite their citizenship applications. The funds for this transaction were reportedly funneled through falsified invoices submitted to a Cypriot bank by Jing Wang and her family.
It’s noteworthy that Jing Wang’s Malta-based company, JWP Malta, hired former Maltese Prime Minister Joseph Muscat as a consultant in December 2020, with a monthly salary of €5,900. While the Maltese government insists that Muscat’s consulting role was unrelated to the Cyprus scandal, his involvement has reignited suspicions due to his history of controversy.
As of now, all permanent residency applications submitted via Destination Europe have been temporarily suspended, pending the outcome of the Cyprus case. This news has raised concerns about the potential fallout for Malta’s “Golden Visa” program, which has been a significant draw for investors, particularly from China, since its introduction in 2014. Between 2016 and 2021, nearly half of the applicants represented by Destination Europe were from China, with these wealthy investors securing EU residency through property purchases in Malta, granting them freedom of movement and residency within Europe.
However, this immigration policy has long been a source of contention. Industry insiders claim that many Chinese investors view Malta’s visa program as a “backup plan” for future contingencies, while immigration agencies see it as an easy profit opportunity. By renting out the purchased properties, both agencies and owners can earn substantial revenue. In response to mounting criticism, the Maltese government attempted to curb the number of Chinese applicants. In 2021, Malta terminated its exclusive agreement with the Shanghai Overseas Chinese Exit-Entry Service, which had previously required agencies like Destination Europe to pay a €10,000 commission per application.
The revelation of this scandal has further stoked concerns over the future of Malta’s “Golden Visa” program. Industry experts fear that the controversy could jeopardize more than 50% of Malta’s residency applications. If the public loses faith in the program, potential investors might be deterred from applying.
The Maltese government has stated that it is closely monitoring the situation and will take appropriate action if necessary. However, this may not be enough to fully assuage public concerns. Should international trust in Malta’s residency program erode, it could significantly impact the country’s economic development.
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