Day: February 16, 2012

Nexbis sues Shahid, while reappointed former controller decides to continue Nexbis agreement

Department of Immigration and Emigration has decided to proceed with the stalled border control system contracted to Malaysia’s Nexbis Limited. Meanwhile, Nexbis has filed a lawsuit at the Civil Court seeking Rf 669 million (US$43 million) in damages from the former Immigration Controller Abdulla Shahid.

The first hearing of the case, scheduled for Wednesday, was cancelled.

According to the lawsuit, Nexbis alleged Shahid refused to proceed with the project despite court approval and spread false information regarding the agreement to the media, tarnishing Nexbis’ global reputation.

Nexbis claims that misleading media coverage adversely affected its global operations – the company suffered a drop in share prices when the Maldives Anti-Corruption Commission (ACC) raised concerns of corruption, costing Nexbix AUD$39.9 million (Rf669 million).

Nexbis has now requested the court to recover the damages and the cost of its lawsuit from Shahid.

Speaking to Minivan News, Shahid refused to be held personally accountable to any decisions of the Immigration Department.

“I don’t have to take personal responsibility. When I was at Immigration I did hear about the case and had requested it to be forwarded to the Attorney General’s Office,” Shahid observed.

The 20-year Build, Operate and Transfer (BOT) agreement to upgrade the Maldives’ border control security system, valuing US$39 million (Rf600 million), was signed with Nexbis by Shahid’s predecessor, Ilyas Hussain Ibrahim – who was reappointed to the post last week by President Dr. Mohamed Waheed Hassan Manik, following the ousting of former president Mohamed Nasheed on February 7.

The day after the concessionaire contract was signed, ACC announced it had received “a serious complaint” regarding “technical details” of the bid, and issued an injunction pending an investigation into the agreement citing “instances and opportunities” where corruption may have occurred.

Nexbis shares immediately plunged 6.3 percent on the back of the ACC’s announcement. The company subsequently issued a statement claiming that speculation over corruption was “politically motivated” and had “wrought irreparable damage to Nexbis’ reputation and brand name.”

“Nexbis’ shareholders own and manage multi-trillion dollar assets globally and will not jeopardise their reputation for an investment return,” the company said at the time.

Claiming financial loss Nexbis subsequently threatened legal action over the stalled border agreement, prompting the cabinet to resume the project after reviewing the existing agreement with Nexbis to address the concerns raised by the department.

In December 2011, the ACC forwarded a corruption case against Ilyas Hussain Ibrahim, then head of the Center for Disaster Management, and Director General of the Finance Ministry Saamee Ageel to the Prosecutor General’s Office (PG). The ACC claimed the pair had abused their authority for undue financial gain in the Nexbis deal.

Meanwhile, the ACC requested the project be re-tendered with the consent of the cabinet. However, the cabinet decided to continue the project with Nexbis after revising the agreement.

ACC attempted gain a legal injunction against the move, but failed as the civil court ruled in January 2012 that ACC cannot order to terminate the Nexbis agreement.

Speaking to Minivan News today Immigration Controller Ibrahim confirmed that the department will continue the border control project as there is no “legal obstruction”.

“I have decided to continue all the works including the border control system project, as there is no legal obstruction,” Ilyas observed.

Ilyas had steadily disputed the claims of corruption and insisted that the project was awarded to Nexbis through a transparent international bidding process.

However, in earlier interviews with Minivan News, Shahid expressed concern over both the cost and necessity of the project, calculating that as tourist arrivals continue to grow Nexbis would earn US$200 million in revenue over the project’s 20-year lifespan.

Comparing Nexbis’ earnings to the government’s estimated revenue of US$10 million, Shahid suggested the government instead maximize its income by operating a system given by a donor country.

“Border control is not something we are unable to comprehend – it is a normal thing all over the world,” Shahid told Minivan News at the time. “There is no stated cost of the equipment Nexbis is installing – we don’t know how much it is costing to install, only how much we have to pay. We need to get everything out in the open.”

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Commonwealth ministers arriving Friday to investigate “facts surrounding transfer of power”

A delegation of Commonwealth ministers will arrive in the Maldives on Friday February 17 to “ascertain the facts surrounding the transfer of power last week in the South Asian state.”

The Commonwealth Ministerial Action Group (CMAG) decided to send the mission “as soon as possible” following an extraordinary meeting held on February 12 concerning the spiralling political tension in the Maldives.

“This is an important ministerial mission that is to be seen as part of the Commonwealth’s continuing engagement with Maldives,” said Commonwealth Secretary-General Kamalesh Sharma. “It should also be viewed in the context of the Commonwealth’s abiding commitment to its fundamental political values.”

The Commonwealth has an increased mandate to involve itself in the internal affairs of its member nations since the last Commonwealth Heads of Government Meeting in Perth, Australia, in October 2011.

According to a statement from the group, the delegation will hold discussions with key interlocutors on circumstances surrounding the resignation of President Mohamed Nasheed on 7 February 2012.

Before it commences its work, it will be briefed by the Commonwealth Secretariat team that has been in the country since February 6, the statement read.

The CMAG statement issued after the February 12 teleconference stressed the importance of adherence by member countries to the Commonwealth’s fundamental political values, “including constitutional democracy, the rule of law and respect for human rights; and in particular, the principle of separation of powers.”

The CMAG ministerial mission will be supported by a Commonwealth Secretariat team led by Amitav Banerji, Director of Political Affairs.

The group will be led by the Minister for Foreign Affairs and Communications of Trinidad and Tobago, the Surujrattan Rambachan.

He will be accompanied by Dr Dipu Moni, Minister for Foreign Affairs of Bangladesh, and Dennis Richardson AO, Secretary of the Department of Foreign Affairs and Trade, Australia.

President Dr Mohamed Waheed has previously said he would be open to an independent inquiry into the circumstances surrounding the rapid change of government, which former President Mohamed Nasheed’s Maldivian Democratic Party (MDP) has alleged was a coup d’état.

Germany was the first country to call for an inquiry last week, urging Dr Waheed’s government to “consolidate its legitimacy”, swiftly followed by the UK.

“I have heard calls for an independent inquiry into the events that preceded my assumption of the presidency. I am open to those suggestions – there is no problem with it. I will be completely impartial in any independent investigation,” Dr Waheed said.

“I don’t know the details, or how it can or should be done. I will consult legal advice as soon as we have an attorney general in place. I am sure we will be able to satisfy the call from Britain and Germany.”

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Rising religious conservatism a challenge for tourism industry: WSJ

The Maldives, known for $2,000-a-night white-sand-and-turquoise-ocean atoll retreats, is hoping to build a more affordable tourism industry. But it’s facing a challenge from the country’s more religiously conservative population, writes Tom Wright for the Wall Street Journal (WSJ).

“Former Tourism Minister Mariyam Zulfa, who lost her job last week as the national government was ousted, had a plan to develop mid-range accommodation on some of the Indian Ocean nation’s lesser-developed islands. There are about 1,200 islands in all, although only 200 of them are inhabited.

The plan also called for a job-creating entertainment complex of bars, nightclubs and even a casino on an island close to Male, the capital, modeled on Singapore’s Sentosa island development.

Even before the plan got off the ground, it ran into opposition from Islamist leaders. They rejected what they viewed as the encroachment of Western cultural imports – like alcohol and scantily-clad women – into local communities.

Since 1972, conservative Maldivians have acquiesced in the country’s development of luxury resorts. They were restricted to uninhabited atolls, to which hotel managers fly in Spanish chorizo and French champagne, as a way of minimizing contact with locals. That’s why the plan to bring mid-market tourism to inhabited islands became a rallying point for Islamists late last year.

The fight over the tourism plan played a significant role in the downfall of former President Mohamed Nasheed, who says he was ejected in an armed coup last week.

In the weeks leading up to Mr Nasheed’s ouster, Islamist leaders staged daily street protests which painted his government as un-Islamic, focusing on its plans for tourism. His political adversaries, including some big resort owners, joined the protests.”

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Military holds “camaraderie” walk, renews oath of allegiance

The Maldives National Defence Force (MNDF) early this morning participated in a walk to armed forces held a walk this morning to display unity and camaraderie, reports Haveeru.

Officers renewed their oath of allegiance in Republic Square and then walked around Male’, chanting and waving the national flag, according to the local newspaper.

Haveeru cited a spokesperson as saying that the purpose of the event was “to show that the forces are not be afraid to lay down their lives to protect and defend the nation and religion against external enemies and threats.”

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India’s Foreign Secretary to visit Maldives

India’s Foreign Secretary Ranjan Mathai is due to fly to the Maldives to resolve escalating political tension in the country.

The Maldives’ former Foreign Minister Ahmed Naseem welcomed the arrival of Mathi, describing him to the Wall street Journal as a “highly experienced diplomat”.

“It’s very unfortunate that India took a stance on the legitimacy of the government at such an early stage,” said Naseem told the WSJ.

India’s Special Envoy M Ganapathi also visited the Maldives last week, along with many other foreign diplomats seeking to resolve the situation.

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“You are my brother and I will always love you”: Dr Waheed’s brother resigns from UK post, calls for President to follow

President Dr Mohamed Waheed Hassan’s brother, the Deputy High Commissioner of the Maldives to the UK, has announced his resignation and called for his brother to follow suit.

“I have resigned from my post of Deputy High Commissioner as of now. I have resigned because I cannot serve a regime that has brought down the democratically elected government of my country in a coup d’état,” said Naushad Waheed Hassan to media assembled on the steps of the High Commission in London.

“Some of you may question why I have not resigned before. When the coup was unfolding in the early hours of February 7, my initial reaction was to resign immediately. However, as you all know, the leader of the current regime, Dr Mohamed Waheed Hassan, is my own brother. So I decided to take time to make my own enquiries before I came to a conclusion. And it is with a heavy heart that I have to say that this is indeed an illegitimate government and I cannot be party to it.”

Minivan News spoke to Naushad this evening, seeking to confirm the report.

“This is not something I have discussed with my brother,” Naushad told Minivan News. “This is my own personal decision. I stood by him. But I after I saw the videos of the torturing, the police brutality, and saw what happened in the atolls, I decided it was not good for me to stay [in the government].”

Naushad said he did not know why his brother had taken the actions that he had.

“From our childhood days, I know he is a nice person. I still believe this. I don’t know why he is favouring Maumoon [Abdul Gayoom]. At this moment I don’t have the details. But I will find out why he took this step. He is someone who has been loved by people for so many years,” he said.

“And I say this to my brother – you are my brother and I will always love you. Do not rob our people of our right to choose our government. Do not be party to this police brutality that is ongoing in the country. Do not join with the people of the autocratic ruler (former) President Gayoom. Do the right thing – resign and hold fresh elections. Let the people of the Maldives decide.”

A staff member in the High Commission described Naushad as “quietly spoken and very friendly. His artwork was up in the commission until this morning so we should have seen it coming. I always noticed that he was happy to talk about his past incarceration [under Gayoom], but he never came across as too bitter.”

The staff member noted that the atmosphere in the High Commission had been a “little terse”, with “differences of opinion between staff that have stronger political, MDP affiliations than others, who see their role in a more purely diplomatic, apolitical sense.”

Maldives Ambassador to UN resigns live on Al Jazeera

Maldives Ambassador to the United Nations, Abdul Ghafoor Mohamed, has meanwhile resigned live on Al Jazeera, reading a statement in which he said he was unable to continue his duties due to “certain moral and ethical concerns I had that surrounded the departure of the former President [Nasheed].”

“I listened with much sadness and great pride to the resignation of [President Nasheed] and his decision to step down in the greater interest of the Maldives, bringing to a premature end the maiden term of the first democratically elected leader of the Maldives,” said Ghafoor, one of the Maldives top career diplomats who has also served as defacto non-resident Ambassador to the US.

“The Maldives had yet again shown the world it was able to handle peaceful transfers of power smoothly. I was proud of my President and my country. However the subsequent allegations by the former president – that he was forced to resign – have cast a shadow of doubt on events preceding his announcement,” he stated.

Ghafoor said he accepted Dr Waheed’s government as a legal and legitimate constitutional authority, but said he found himself “in a position that makes it difficult to execute my responsibilities without equivocation based on certain moral and ethical concerns I had that surrounded the departure of the former president.”

“I believe the new president should have the opportunity to have his views and policies served by representatives without reservations or equivocation,” Ghafoor said. “I have therefore conveyed my intention to step down from all my diplomatic postings so that the new president may be better served.”

Ghafoor said that Dr Waheed had accepted his resignation, and had agreed to stay on until a replacement arrived.

“He has also given me leave to speak my conscience in the meantime, and I thank him for that,” Ghafoor said.

Asked by Al Jazeera as to the nature of his “moral and ethical concerns”, Ghafoor reiterated that he had “no reservations about the legitimacy of the current administration.”

“But what has made my conscience troubled is the allegations made by the former President and subsequent events. One concern was the appointment of the current defense minister and police commissioner , who I believe were involved in the negotiations [surrounding Nasheed’s resignation]. This was a troubling event for me.”

Maldives High Commissioner to the UK resigns

Maldives High Commissioner to the UK Dr Farahanaz Faizal also announced her resignation earlier this week.

“They robbed the people of the vote and when I saw the brutality of the police last week, that was the final straw,” she said.

In a letter to the Foreign Minister, Dr Faizal resigned as High Commissioner of the Maldives to the UK and as Ambassador of the Maldives to France, Spain, Norway, Sweden, Denmark, Finland and Palestine.

“I regret to let you know that I cannot serve in a government that has toppled the
democratically elected government of Maldives, in a coup d’etat,” she said.

Honorary Consul to the Maldives, David Hardingham, also announced his resignation.

Minivan News sought to contact both Dr Waheed but he had not responded at time of press. Dr Waheed’s acting spokesperson Musood Imad said the President would be holding a press conference on Thursday at 4:30pm.

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