The Citizenship by Investment Report for 2022/ 2023 was finally presented in parliament yesterday – one year later than expected.
Investment Minister Dr Ernest Hilaire yesterday apologised for the delay by the Citizenship by Investment Unit saying that this was due to “a number of factors some of which were beyond the control of the Unit.”
Speaking in Parliament yesterday, the minister said that “We should always endeavour at all times to meet our statutory obligations. I do not desire to see this as a routine practice and I believe that unlike what has become a norm with so many statutory bodies.”
“It is not a time to give reasons or excuses better must be done by the Unit. I am also informed that every effort is being made by the auditors so that the Unit can present to me the annual report for 2023/2024 which is statutorily due to be laid in this house on 31st October 2024,” he said.
Hilaire stated that he will endeavour to have the report submitted to parliament as soon as possible after he has received it.
The 2022/2023 report (excerpt) shows the following, according to Dr. Hilaire:
– An 85 percent increase in applications received from 583 to 1076
– 25 percent increase in applications granted from 435 to 544
– $35.58 million or 94 percent increase in total assets in comparison to 2022.
– 12 percent growth in revenue from 54.2 million to 60.6 million dollars.
– 40 percent increase in staff bolstering the capacity of the due diligence verification and accounts departments.
He also highlighted a number of challenges faced by the Unit namely:
– A delay in the clearance of funds at banks affecting processing start times
– Limited work space to accommodate the growth in personnel
“Coming off a 44 percent increase in applications in the previous year, the Unit registered another strong performance with an 85 percent increase in applications compared to the year ending March 2022,” Hilaire said.
According to him, this increase was fueled by Galaxy’s sale of shares in Canelles Development and targeted marketing efforts in emerging regions including parts of the Middle East and West Africa.
“There was a heavy investment in human capital,” the minister stated, and the due diligence processes “were enhanced resulting in increased waiting for feedback.”
In addition, key partners: the banks, National Insurance Corporation and the Immigration Department “also had to increase their resource allocation to deal with the increasing demand for their services,” Hilaire said.
“The Unit continues to be in a strong cash position boosting an impressive balance sheet with a growth in shareholders’ equity by 44 percent or $37.7 million,” the minister declared.
“The delays in the application time resulting in the turnover of qualifying investment payments. Despite this the Unit still ended the year with a $22.8 million surplus,” he added.
Beyond the tabling of the report, the Citizenship by Investment Programme (CIP) has been the subject of much discussion, Dr. Hilaire stated, adding that it was “misinformation, disinformation, political showboating and maliciousness.”