A decision by Government finally to put an end to the controversial passports-for-sale scheme is to be welcomed in the interests of transparency and of public confidence in the political system. In the ten years of its shadowy existence, the scheme has generated allegations of improper behaviour and financial misuse against prominent politicians, while damaging public confidence in our democratic system. The seeds of its own destruction were present from the beginning, when the then Taoiseach, Mr Charles Haughey, arranged for its establishment - without any public announcement and lacking a statutory basis - contrary to the advice of the Department of Justice. Under the scheme, all normal requirements under the Citizenship Act of 1986 could be waived by a Government Minister and passports awarded in return for investments of £500,000 and upwards
The granting of two groups of Irish passports, in particular, gave rise to public controversy. Two financiers, Sultan Khalid S. Bin Mahfooz and Haroon Rashid Kahlon, then under investigation in the United States in connection with the BCCI affair, one of the biggest financial frauds in recent history, were granted citizenship in 1990. The papers were signed at his home by the then Minister for Justice, Mr Ray Burke, and personally delivered to the applicants by Mr Haughey. Only portion of the promised £20m investment was later traced. The other case involved an investment of £1.1m by the Palestinian, Masri family, in C & D Foods Ltd. owned by the family of Mr Albert Reynolds, who was then serving as Taoiseach.
Public disquiet over the informality of the passports-for-sale scheme; the secrecy of its operation and the powers exercised by Ministers led to a review of the system in 1994. Under new rules, at least £1m was required to be invested in an Irish company as equity, rather than as `soft loans', for a period of at least seven years. In spite of that, concerns continued to be expressed and a former Minister for Justice, Mrs Nora Owen, promised to place the scheme on a statutory basis in 1995. But no legislation was brought forward and the revised system continued to operate on a sporadic basis.
In all, fewer than 150 passports have been issued under the scheme since its inception in 1988 and 50 of those were for spouses or children. Investments amounting to £90m have been made. In announcing the formal ending of the passports-for-sale scheme, the Minister for Justice, Mr O'Donoghue, said the 50 outstanding applications will now be processed through procedures that have been in place since 1994. He also undertook to review pre-1988 arrangements, which allow businessmen and investors to reside in the State and, at a later stage, to apply for naturalisation under the Irish Nationality and Citizenship Acts. Up-dating such statutory arrangements will address the complaint that money, hot or otherwise, can buy anything in modern Ireland. It will also help to exclude political interest and influence from the equation. And that will be no bad thing.
