Finance Minister and State Finance Minister resign

Local media has reported that Finance Minister Ahmed Inaz submitted his resignation today following an incident in which he was caught by Maldivian Democratic Party (MDP) activists while he was having a meeting with opposition Progressive Party of Maldives (PPM) MP and half-brother of former President, Abdulla Yameen.

The meeting was held inside Yameen’s car in a rarely visited area of Male’. MDP activists surrounded the car, which attempted to leave the area, and requested that Inaz step out because “it was wrong.” He was taken to party headquarters and pressured to resign.

Today Inaz told Minivan News that he would not like to say anything regarding the incident or about the rumors spread since Tuesday that he had resigned.

”Call the Press Secretary, he should tell the press very clearly,” he said when asked to confirm his resignation.

Press Secretary for the President Mohamed Zuhair told Minivan News that Inaz had sent the President a letter but that the President had not read it yet.

”So we cannot confirm if it is a letter of resignation,” Zuhair said, adding that he has not attended since the incident.

Meanwhile, Yameen told the press that the meeting had been called by the Finance Minister to discuss the 2012 state budget, passed by the parliament earlier this week.

However, MDP activists allege that Inaz was plotting with Yameen and making secret deals.

Meanwhile, Adhaalath Party has condemned the action of MDP activists that night as uncivilized and degraded.

Adhaalath party issued a statement following the incident saying it was “regrettable and was against the spirit of the constitution, laws and Islamic Democratic principles.”

Today State Finance Minister Ahmed Naseer has also resigned, although according to Zuhair he did not mentioned the reason of his resignation.

Likes(0)Dislikes(0)

Loans and guarantees pass as opposition walks out

Parliament today approved the government’s borrowing summary totaling Rf5.5 billion (US$358 million) proposed by the government for 2012 amidst political disturbances within the Majlis.

Minivan staff observed opposition party members leaving the Majlis as ruling Maldivian Democratic Party (MDP) members remained inside to approve the supplement to the 2012 State Budget.

Opposition Dhivehi Rayyithunge Party (DRP) MP Rozaina Adam said the party walked out “because we believe PPM [Progressive Party of Maldives] sold out the vote to MDP.”

According to Adam, suspicions were raised when the chair of the Public Accounts Committee attempted to vote with the opposition. She said eight PPM members created a disturbance when the vote was presented, and were forcefully removed by the military.

She suspected the scuffle had been planned.

MDP MP Hamid Abdul Ghafoor confirmed that damage was done to the Majlis chamber, and noted that MDP MP ‘Reeko’ Moosa Manik’s seat name tag was “crushed”.

Ghafoor also believes that the display was calculated.

“Why would some people walk out and accept the decision, while others make a show of it?” he asked, noting that the Majlis has a precedent of requesting the removal of those who disturb proceedings.

However, Ghafoor believed the episode was understandable “in the context of a transitional democracy, in which the previous regime is allowed to be politically active.”

According to law, the Majlis must approve all foreign loans separately from the budget, which was approved earlier this week with 70 votes in favor, two against and one abstention.

The Rf14.6 billion (US$946.8 million) budget was passed with Rf3.5 million (US$226,977) added through amendments proposed by opposition MPs.

Dhivehi Rayyithunge Party (DRP) proposed shifting Rf300 million (US$19 million) from other items to local councils, increasing funds for political parties from Rf11 million (US$713,000) to Rf14.5 million (US$940,337) and raising state benefits to the elderly from Rf2,000 (US$130) to Rf2,300 (US$148) to adjust for inflation.

Foreign loans will be allocated for budget support, construction of Addu Hospital and support for middle-income businesses, fishing and agriculture.

The highest loan is valued at US$150 million, to be borrowed from China’s Exim Bank.

Although the Finance Committee approved the borrowing summary it nevertheless highlighted important missing information. According to MP Adam, committee members today found discrepancies between the document approved yesterday and the version submitted to Parliament today.

When asked about the discrepancies Ghafoor identified them as “speculative–conspiracy oriented” and asserted that “all possible details were submitted, but the opposition said it did not confine to the strict guidelines of the law. Of course there are some points and details which can only come after the it is approved.”

“It’s a foregone conclusion, the budget was passed and you assume that to cover the deficit, you have to take loans,” he said.

Parliament is now in recess until March.

Likes(0)Dislikes(0)

Elections Commission audit report reveals “irresponsible” spending

Elections Commission of Maldives (EC)’s 2010 audit report has revealed that commission members “irresponsibly” used state funds to cover lavish medical insurance, buy ipads and expensive mobile phones while failing to maintain office records and recover money withdrawn from the budget by political parties.

Between 2008 and 2010 EC members and their dependents “irresponsibly” chose the “most expensive” medical insurance scheme available from Allied Insurance at Rf.35,000 per person, raising the level of insurance paid through the budget to Rf1.1 million (US$70,500).

According to the report made public on Thursday, the five EC members illegally withdrew allowances from the commission’s budget to pay a their mobile phone bills, totalling Rf74,155 (US$4,809).

Members of both the Civil Service Commission and the Anti-Corruption Commission (ACC) committed this violation, wrote Auditor General (AG) Niyaz Ibrahim in the respective audit reports.

The AG steadily notes that the salary and benefits of independent commission members are determined by the People’s Majlis (parliament), and that benefits do not cover phone allowances.

An additional Rf81,861 (US$5,308) was spent on the phone allowances of EC staff, which the AG reports was spent without the Finance Ministry’s approval.

The commission has also spent a total of Rf248, 790 (US$16,134) to buy mobile phones over the past three years, while the AG notes that the chosen models were the “most expensive” ones available in the market at the time.

While some phones are now missing, others have been gifted to staff despite the laws prohibiting the gifting of any state property or item to staff, the AG observed. He recommended that the phone costs be recovered from the staff members concerned.

EC staff also received a total of Rf971,807 (US$63,022) as overtime pay, although there was no record to confirm their work.

The report further reveals that EC members bought five ipads worth Rf 77,500 (US$5,025) in September 2011, after neglecting the AG office’s advice to the contrary.

The commission had previously been asked to use the existing 97 laptops and 250 netbooks, of which some were inexplicably lost.

AG noted the laptops were bought in violation of public finance regulation during the 2008 elections, a case now forwarded by ACC to the Prosecutor General Office.

The report also highlighted inefficiencies in the current mechanism for allocating funds to political parties, a task mandated to the EC.

AG Ibrahim explained that the existing policy to distribute 60 percent of the total funds based on the number of party members, and 40 percent equally among the existing parties, provides an “opportunity to misuse state funds”.

According to him, several parties have gained additional money by manipulating the number of party members, a concern often raised by the Elections Commission.

AG added that it is “financial fraud” and urged to take legal action against the responsible parties, while recommending that the fund distribution mechanism be revised.

He also highlighted that among the existing 15 political parties, several do not have the requisite 3,000 registered members while others are politically inactive.

Therefore, he recommends to stop funding parties with membership below 3,000. According to report statistics, nine existing parties would not qualify.

Since the state budget is a deficit budget, AG also recommends that funds allocated for political parties be determined by state income instead of the total state budget.

Currently, 0.1- 0.2 percent of state budget must be allocated to political parties.

In the past five years the commission has fined seven political parties up to Rf435, 000 (US$28,210) for not submitting the annual financial report on time. However, AG notes that 60 percent of that sum has not yet been collected.

AG also concluded that the EC’s financial statements for the past year do not show the “commission’s financial status accurately and honestly”.

The AG concluded that Rf11.4 million (US$740496) was allegedly distributed to atoll offices during the 2011 elections by the EC as an “expense in the financial statement”, however it has “not been spent in real” and some money still remains in island bank accounts.

Of the Rf75.2 million (US$4.9 million) released as an annual budget to the EC in 2010, the report found that only Rf52.3 million was recorded as spent.

Likes(0)Dislikes(0)

Drugs Bill supports rehab, cracks down on dealers

Parliament has approved the long-awaited Drugs Bill, submitted by ruling Maldivian Democratic Party (MDP) MP ‘Reeko’ Moosa Manik  in December 2009 and detained in the Committee for Social Affairs since early 2010.

The bill is said to distinguish between ‘hard’ and ‘soft’ drugs while re-defining the treatment of users and traffickers. Witnesses to drug cases will also receive protection.

Ahmed Nazim, a Research and Development officer at Journey Rehabilitation Center in Male’, believes the bill will improve the situation on both sides of prison bars.

“Drug dealers will now face a more serious sentence, so that will reduce the amount of drugs on the street. And users will have a better chance for rehabilitation,” he explained.

Currently, the Maldives hosts one drug rehabilitation centre (DRC) at Himmafushi. The centre was recently reviewed by Journey and by Sri Lankan company Colombo Plan, Nazim said. He hopes Journey’s findings will be addressed by Colombo Plan.

“The current rehabilitation model is quite old. The methods are based on the assumption that drug addiction is a behavioral problem, but now scientists are saying that it’s a medical condition. The next phase of the DRC will be to address this by spreading information about addiction and recovery, and treating the patients more appropriately,” Nazim said.

Nazim pointed out that the Drugs Bill “puts a lot of emphasis on giving addicts proper treatment”, and accepts the medical argument.

“Because of this I think the current social stigma about drug addiction will be reduced,” he surmised.

Recovering addicts have said that tight social conditions on Male’ make it difficult for them to get a fresh start and maintain a drug-free record.

Journey has advocated for improvements to the drug policies for several years. In 2010 it sent a petition with 4,000 signatures to Parliament urging members to pass the bill. The petition was revised for administrative reasons and re-sent last month.

Nazim is pleased that the bill was passed but believes it should have received prompt attention. “[Drugs] are a serious issue in the Maldives, but the bill didn’t get the proper attention from the Parliament and it was stuck,” he said.

Minivan News understands that the Drugs Bill has been supported by opponents of the Second Chance Program, a 2011 initiative to socially rehabilitate prison inmates whose sentence and behavior in prison qualify them for early, assisted release.

In a previous article by Minivan News, Journey volunteer Imlaq Shareef claimed that drug use was increasing daily, and that recovering addicts had little social or institutional support. He added that drug use is often linked to prostitution, a concern for the Maldives which has lately prompted the government to close spas nation-wide.

Police Drug Enforcement Unit Superintendent and Chief Inspector Mohamed Jinah considers the bill “well drafted”, and believes it will improve judicial proceedings.

“The most important points that we felt should be incorporated were incorporated,” he said. “This bill will be very useful and instrumental for the police enforcing the drug policies.”

Jinah explained that the drug court would separate traffickers from users, and distinguish punishments appropriately. He added that the system would allow police enforcement officers to focus more on trafficking issues than on users.

“It’s a dramatic change from the previous system,” he said. “Users will now be dealt with in the drug court, which will have officers with expertise in drug use and rehabilitation to help advise them. The traffickers will be dealt with in the criminal court.”

Jinah advised that while the bill intends to establish several new rehabilitation centres along with other measures to improve the drug situation, the financial logistics have not yet been worked out.

A report released this fall by United Nations Development Program (UNDP) asserted that the Maldivian prison population could be reduced by up to two-thirds if the government would “de-criminalise the offence of drug usage and propose mandatory rehabilitation”.

According to author and UNDP Program Specialist Naaz Aminath, small-time drug users in their early 20s “are not hard-core criminals, but they’re put away for almost their entire lives,” while drug traffickers serve an average sentence of 25 years.

Parliament today held its final session before a two-month recess. Relevant bills waiting to be addressed include the Penal Code Bill, submitted in July 2009, and the Prisons and Parole Bill, submitted June 2010.

Likes(0)Dislikes(0)

Local market patched with personal alliances

Compared to markets in many developing countries, Male’s fruit and vegetable market appears tranquil. Visitors aren’t hassled, and the pathways are fairly clean. Nearly each stall presents banana bunches, coconuts young and mature, and bundles of various leaves alongside giant papayas and modest mangoes. A few sport coconut oils and juices for skin, hair and cooking, as well as containers of Maldivian spice mix and a salty fish sauce.

While the market is the shopkeeper’s source for local goods, the rules of competition are personal. “Business depends on your friends–both shopkeepers and customers,” said one vendor. Pointing out the homogeneity of goods available, he explained, “We compete by making sure we have what the other guy has. We don’t lower the price.”

While business is alright, the annual holiday season (October – December) brings a dismal combination–low supply and low demand. In spite of their personal connections, most vendors note that business hovers between “alright” and “bad.”

During the holidays many locals leave the country, and island-based suppliers make fewer trips to Male’. One man said the price of a coconut, one of the Maldives’ most common products, has dropped from Rf5 (US$0.30) to Rf2 (US$0.13). Bananas sell for Rf1 (US$0.06) apiece, versus the shop rate of Rf3 (US$0.9). He adds that most tourists who stop in don’t buy.

Seasonal market trends are a nuisance for vendors, but their complaints mostly lie with the changes imposed on the market system by the Male’ City Council, then Male’ Municipality.

Renovations earlier this year transformed the former sprawl to a plot of concrete squares delineating 176 stalls, available by lottery for three-month periods only at Rf750 (US$49) per month.

Many vendors said they were uninformed of the changes and simply asked to evacuate. Protests against the order were unproductive, and vendors claim the new arrangement has hurt their business as well as their pride.

“People who had worked here for years weren’t given an advantage in the lottery,” said Ahmed Zakariya. “It’s only by chance that they can sell goods, and for three months only.”

Zakariya said the situation had led some vendors to lease out their stalls at a profit.

“Some guys have families, and their whole life is based on this business,” he explained. “They try to lease a stall from someone else so they can sell for longer, but they’re not too happy with the set up.”

Vendors have also turned to their own resources to fix physical flaws.

Although the Municipality provided white tarp covers for the stalls, the sandy pathways were unprotected and rain often splashed into the stall areas, coating products in wet silt. One vendor explained that the blue and patched sheets now draping over the walkways were raised by the men themselves, in the interest of protecting business.

Noting the prevalence of unstable and crumble-prone styrofoam surfaces, Minivan News asked a vendor why the stalls were built out of such impermanent material.

“People don’t invest in improving their stalls because they only have them for three months,” said one man. “Even if you win the next lottery, you may move across the market. So we use re-usable materials that are easy to move.”

Gesturing to his approximately four foot by seven-foot stall, Zakariya added that the restricted stall spaces hurt business prospects.

“Sometimes we can’t keep enough produce in the given space, so we can’t sell as much.”

He said some vendors partner with their neighbors to expand storage and sales, paying a fee or entering into partnership as friends.

Mohamed Manik of Gaaf Alif Atoll believes he is one of the few vendors currently selling solo. He said he makes a monthly minimum of Rf10,000 (US$649), but believes the joint operations make a much higher profit. “They are my big competitors, the ones who have partnered,” he noted, looking around. “But I usually can’t compete, so I just try to make a satisfactory living.”

In spite of the delicate competition for social-professional connections, Manik said people are friendly. But he pointed out that they share a common antagonist: night burglars.

“Theft is a big problem,” said one older man.

Without a security guard or market gate, he said, the market is hard to defend. Pranksters most often steal banana bunches, however he said some coins he had had the day before had disappeared overnight.

“Sometimes the guys who stay here overnight catch the thieves and beat them, and hand them over to the police. But they are soon released, and come back the next day to hassle us,” he said.

“Security needs to be better, the city council should take responsibility. It’s very, very, very very sad,” he concluded.

Likes(0)Dislikes(0)

Miladhoo island office set on fire

Noonu atoll Miladhoo island council office was set on fire early this morning, causing extensive damage.

The fire incident occurred around 3:00 am on Wednesday, according to the Maldives National Defence Force (MNDF) fire department.

Although islanders and the fire team put out the fire within an hour, almost everything inside the building was destroyed while the building itself was burnt beyond repair, Hussain Ghassan, President of the Miladhoo island council told Minivan News on Wednesday.

Ghassan said that the council has received “several threats” from some people unhappy with the council, of which a majority sides with opposition Dhivehi Rayyithunge Party (DRP).

“Some even threatened to burn down the office”, he said.

Sub-Inspector Ahmed Shiyam said that police also “suspect it is an arson attack” and the investigation is ongoing.

No arrests have yet been made.

Ghassan reported that the council work has been halted due to the incident and they are looking for a new office to continue work.

However, he said it would be difficult to proceed as “all the paperwork, furniture and other items were lost to the fire”. The damage would cost the council around Rf 1 million (US$65,000), he added.

Miladhoo Island court, situated next to the island office, was also damaged due during the fire.

Police are also investigating an apparent arson attack on a car used by a team of American scientists involved in the Dynamics of the Madden-Julian Oscillation (DYNAMO) project based on Gan in Addu atoll.

The incident was discovered by neighbors around 12:51 am on Sunday, and was put out when police arrived to the scene.

Although officials claim it is too early to determine if the incident was random or targeted, Research Assistant Justin Stachnik said there was “no doubt” that the fire had been intentional. However, citing a generally friendly social atmosphere he suspected it was the work of local youth out for a prank.

Still, Stachnik said neighbors reported that nothing like the fire had happened before in the area.

A senior official at Addu City Council told Minivan at the time that a recent increase in religious tensions, as well as the December 23 protests, had exacerbated religious intolerance in Addu.

Likes(0)Dislikes(0)

Transport Minister to chair ICT board

The Executive Committee for Information Communication Technology has been reconstituted.

President Mohamed Nasheed has appointed Minister of Transport and Communication Mohamed Adil Saleem as board chairman.

The Board is charged with monitoring and evaluating the consolidation and centralisation of ICT resources of the government.

Likes(0)Dislikes(0)

MDP activists confront Finance Minister after covert harbor meeting

Ruling Maldivian Democratic Party (MDP) activists demanded Finance Minister Ahmed Inaz’s resignation last night after he was found holding a covert meeting with Mulaku MP Abdulla Yamin of opposition Progressive Party of Maldives (PPM).

The Minister, who has not resigned from his post, and MP Yamin had not responded to inquiries at time of press.

Minivan staff who witnessed the event said one activist lay down in front of Yamin’s car while another “dragged” Inaz from the vehicle and took him to MDP headquarters at Haruge.

Activists interviewed today claimed that Inaz was not forcefully taken from the vehicle.

Activists alleged that the two politicians had held a secret meeting, possibly involving a bribe. Inside Haruge, Inaz was pressured to send an SMS message to President Mohamed Nasheed, currently in Sri Lanka, conveying his resignation.

Inaz left Haruge after police arrived to address the agitated crowds.

Police received information of the disturbance after midnight, but finding no signs of violence upon arrival did not take action.

Police Sub-Inspector Ahmed Shiyam reported that no case had been filed from either side of the dispute.

“Even today, we have received no complaint from Inaz or from the MDP and have found no reason to investigate the matter,” he said.

MDP senior activist Ibrahim ‘Dhonbeli’ Haleem said he discovered Inaz and Yamin holding a discussion “for two hours” near Male’s South Harbor, “a dark area poorly lit that is only really frequented by boys and girls, not for official business.”

“I told Inaz it was wrong, that Yamin is an enemy and why is he going to this area to hold a business meeting. If he needs to discuss business he should do it in his office.

“Inaz admitted it was wrong, and the MDP activists were yelling and shouting so I took him on my bike to Haruge (MDP headquarters),” said Dhonbeli.

He said Inaz appeared scared, and following his appearance at Haruge Dhonbeli “took him safely home.”

Dhonbeli believed Yamin was attempting to bribe the Finance Minister on behalf of the “money holder” opposition party.

Yamin is the half-brother of former President Maumoon Abdul Gayoom. He had not responded to phone calls at time of press.

Male’ City Councilor Lufshan Shakeed said he was among those who stood in front of Yamin’s car when he attempted to drive away. He explained that MDP activists were “ok if they meet in a cafe or on the roadside, but we don’t like these hidden discussions.”

Asked whether he expected the Minister would resign following last night’s encounter, Shakeed said “it’s up to him. The MDP activists and grassroots people are not very happy right now.”

PPM officials had not responded to phone calls at time of press.

Likes(0)Dislikes(0)

Gasim’s Royal Island Resort sues government

Villa Hotels’ Royal Island Resort and Spa, owned by Jumhoory Party (JP) Leader and MP ‘Burma’ Gasim Ibrahim has sued the government and requested the Civil Court to cancel an order by the Tourism Ministry to close the resort’s Spa over allegations of prostitution operations.

Today the Civil Court issued a warrant to cancel the Tourism Ministry’s order and permit spa operations until the suit against the government is concluded.

Speaking for the government at this morning’s hearing, Attorney General Office’s lawyer Maryam Shunana told the Judge that issuing the warrant was equivalent to closing the entire suit, Haveeru reports.

Former Attorney General Azima Shukoor spoke on behalf of the resort.

Shukoor argued that according to the agreement made between the resort and the government, the resort has 30 days to correct any issue found by the government. If the resort fails to correct the issue within that time frame, the government may fine the resort US$10,000 (Rf154,200), reports Haveeru.

Shukoor claimed that the government’s order was given prior to any investigation and was based on allegations alone. She requested that the ministry’s order be cancelled.

She further requested for the warrant to keep the Spa open until the suit reaches a verdict, adding that if the warrant was not issued the resort risked a great loss.

Deputy Solicitor General Ahmed Usham asked whether the Spa was still open–Shukoor replied that it was functioning. Usham responded that losses to the resort should not be raised in court if the Spa was not closed according to the Ministry’s order.

Yesterday, Press Secretary for the President Mohamed Zuhair said that the government has decided to shut down all the massage parlors in the Maldives and is considering banning the trade of alcohol and pork throughout the Maldives in response to demands made by protestors on December 23.

Progressive Party of Maldives (PPM) Spokesperson and MP Ahmed Mahlouf called on the coalition of religious NGOs and opposition parties to take actions against the government’s decision to disrupt Gasim’s business operations.

He warned that the government will continue to disrupt other businesses run by opposition supporters.

Gasim has filed cases regarding the other four Villa resorts which were requested to close their spa operations. However, no hearings have yet been conducted.

Press Secretary Zuhair yesterday informed Minivan News that Gasim was pretending to be a victim only for political gain, and that the government’s decision was not intended to harm any individual.

He also said that spas Gasim’s resort were not the only ones asked to close operations, but that some spas and massage parlors in Male’ have also been asked to shut down business on similar charges.

Likes(0)Dislikes(0)