• The National Development and Social Fund (“NDSF”) is a Government Agency established on 6 January 2015, by virtue of Subsidiary Legislation 188.03, “Individual Investor Programme (“IIP”) of the Republic of Malta Regulations” made under the Maltese Citizenship Act Cap. 188.
• In the carrying out of its functions and duties, the NDSF shall receive, from the Identity Malta Agency, from the Maltese Individual Investor Programme Agency and from the Community Malta Agency, such percentage of the amounts of money payable to the Fund from the revenue received from the programme and use and administer those amounts in the public interest.
• Article 13 of the said Regulations lays down the founding provisions for the establishment and governance of the Fund.
• Subsidiary Legislation 595.12 – “National Development and Social Fund (Establishment as an Agency)” was enacted to implement the provisions of article 13 of the “Individual Investor Programme (IIP) of the Republic of Malta Regulations” wherein it is established that the NDSF shall have a separate legal personality. The NDSF was therefore established as a government agency in terms of article 36 (1) of the Public Administration Act Cap. 595 of the laws of Malta.

Founding Regulation: Article 13 of the IIP Regulations (S.L. 188.03)

Article 13 of the IIP Regulations (S.L. 188.03) inter alia provides that:

• Article 13 of the IIP Regulations (S.L. 188.03) establishes that there shall be a fund to be known as the National Development and Social Fund into which 20% of contributions received by the Malta Individual Investment Programme Agency (another Government Agency) under the IIP shall be paid.
• The funds received by the NDSF shall be used in the public interest inter alia for the advancement of education, research, innovation, social purposes, justice and the rule of law, employment initiatives, the environment and public health
• The NDSF shall be administered by the Board of Governors consisting of seven (7) members of whom one shall be the Chairman and another shall be the Deputy Chairman who shall be appointed by the Cabinet of Ministers: Provided that two (2) members of the Board of Governors shall be nominated by the Minister responsible for citizenship.
• The Board of Governors of the Fund shall be responsible to ensure the highest level of governance of the Fund and that the funds held in the Fund are used solely for the said intended purposes.
• The Board of Governors of the NDSF was appointed in September 2015.
• The NDSF is required to publish its audited accounts on an annual basis and shall report to the Minister responsible for Finance on its activities not less than once a year.
• The audited accounts and the annual report of the Fund shall be laid on the table of the House of Representatives by the Minister responsible for Finance.
• The Fund is also subject to audit by the National Audit Office.

Implementing Order: NDSF (Establishment as an Agency) Order (S.L. 595.12)

NDSF (Establishment as an Agency) Order S.L. 595.12 inter alia provides that:

• The Implementing Order also lays down the governance, functions and duties of the NDSF.
• The administrative head of the Agency is the Chief Executive Officer who has the legal and judicial representation of the Fund and who acts under the direction of the Board of Governors.
• The Order requires that the Board of Governors of the Fund shall ensure that all accountability and transparency obligations resulting from the founding regulations are strictly adhered to.
• Articles 38 and 39 of the Public Administration Act shall not apply to NDSF. These articles relate to directives and guidelines issued by the Principal Permanent Secretary in relation to government agencies and to the general direction and control of agencies by Ministers and supervision by Permanent Secretaries.
• It also provides for the setting up of an Advisory Board to the Fund which shall consist of 4 persons appointed by the Prime Minister. The Advisory Board shall be chaired by the Chief Executive Officer.
• The Order requires the NDSF to enter into an Agency Performance Agreement with the Principal Permanent Secretary in terms of article 40 of the Public Administration Act Cap. 595.
• The Agency Performance Agreement regulates the relationship, the communication, consultation and reporting lines between NDSF and Government.