A recent publication on msn.com has raised concerns by the European Union (EU) over the trade in “golden passports” and the need to tighten visa controls after revealing five Caribbean states have sold citizenship to 88,000 individuals from countries including Iran, Russia and China. The five Caribbean countries are, Antigua and Barbuda, Grenada, St Kitts and Nevis, Saint Lucia and Dominica.
An initial report published states that several countries sell citizenship to foreign nationals for prices starting at $100,000 (£82,326) a head.
The Commission report further claims that Dominica, an island with a population of just over 70,000, has issued 34,500 adding that the number is more than four times the total previously disclosed by the Dominican government.
In addition, the report states that St Kitts and Nevis, with a population of 48,000, has issued 36,700 passports, twice as many as estimated up to 2018.
THE VOICE made several attempts, last week and this week to contact the Chief Executive Officer Mc Claude Emmanuel, head of Saint Lucia’s Citizen by Investment Programme, for statistics and data about the sale of passports from our end, but to no avail. We were repeatedly told he was out of state. However, the local IP office directed us to its website which revealed that the fiscal year 2021/2022 marked the sixth-year of operations for the Saint Lucia Citizenship by Investment Programme, which, within that time, has generated a total amount of EC $268,342,032 to which a total sum of EC $212,707,588 net of 20% allocation for marketing and promotions and foreign exchange loss, has been remitted to the Government of Saint Lucia through the Consolidated Fund and the National Economic Fund for the period January 2016 – March 2022.
Between 2017 to 2022, a total of 1, 681 Applicants were received.
The breakdown is as follows: 2017/18 – 345, 2018/19- 152, 2019/20 – 193, 2020/21 – 408, and 2021/22- 583.
Applications granted between 2017 to 2022 amounted to 1,287 with a breakdown as follows; 2017/18 – 188, 2018/19 – 210, 2019/20 – 143, 2020/21 – 313, and 2021/22 – 433.
Between 2017 to 2022, the total number of Applications Denied was 90.
An overview of the Financial Results for the Year 2021/2022 was provided.
The agency stated that since the Citizenship by Investment Programme commenced in January 2016, the period 2021/2022 has been a year of phenomenal performance. Applications to the programme were at their highest level with real estate and Covid 19 Bonds contributing significantly to that increase.
A net surplus of EC$27,734,390 was realized in comparison to the budgeted figure of EC$12,290,751. This performance has been attributed to the increase in applications received and the impact of administrative fees received from Real Estate and the Covid 19 Special Bonds of EC$20,074,500.
Overall gross revenue earned was EC$54,169,344 and grew by 62% over previous year 2020/21 of which operating income was EC$54,154,643 compared to prior year 2021/22 at EC$33,447,599.
Programme Costs driven by the increase in applications and revenues earned is at EC$23,629,192 reflecting an increase of EC$8,115,207 over prior year.
Total operating expenses are at EC$2,791,871 whilst prior year was at EC$2,473,459, reflecting a 13% increase.
Total revenue from ordinary activities was EC$54,154,643 compared to EC$33,447,599 in 2020/21. This represents a 62% increase over the prior year.
The significant drivers of revenue in this period are as follows:
– Administrative fees from Real Estate and Covid 19 Bonds -EC$20,074,500; contributing 37.24% to total revenue.
– Due Diligence Fees -EC$17,097,750 from new applications. Contribution to total revenue is 31.72%.
– Twenty percent (20%) Marketing and Promotion Fees retained from donations, EC$13,116,630. Contribution to total revenue is 24.33%.
Balance Sheet:
Total assets increased significantly by $25,224,439 in comparison to prior year 2020/2021 with the main contributing factor being cash at $37,114,034 and prior year at $12,003,411.
Total current liabilities are at $11,287,867 compared to prior year 2020/2021 at $7,144,770 representing an increase of $4,143,097 or 58%. The increase in due diligence expenses stemming from the growth in applications and Value Added Tax payable has contributed to the 58% increase in liabilities.
Working Capital Ratio is at 3.31 for the period ended in contrast to 1.74 for the year 2020/2021. This indicates that the Unit is in a strong position in honouring its obligations.
Shareholder’s equity grew by $20,885,859 in comparison to the previous year as performance in this period was phenomenal netting a surplus of $27,734,390 of which $6,848,531 was distributed to government as excess cash.