August 16, 2012 – Minivan News

State failing to prove ‘Usfasgandu’ lease terms violated: Mayor ‘Maizan’ Ali Manik

Male’ City Council (MCC) Mayor ‘Maizan’ Ali Manik has maintained the state has failed to provide clear examples of any laws or regulations violated in the leasing of the ‘Usfasgandu’ protest area to the Maldivian Democratic Party (MDP).

Manik told Minivan News that the state’s allegations, presently the basis for a Civil Court case against the MDP-majority MCC, were politically motivated and had failed to take into account the site was being used by the wider public regardless of politics.

“We have not broken any rules or regulations on this matter,” he said. “Even if somebody takes this area away, people will instead take to the streets to have their voice heard.”

The mayor’s comments were made following the latest hearing on Tuesday (August 14) of a Civil-Court cased filed by the state against the MCC to hand over the ‘Usfasgandu’ area. The case concerns allegations that the municipal authority had acted illegally in leasing the protest site.

Local media reported that the state had responded in the Civil Court by claiming the city council was in violation of both articles five and six of the agreement to lease the land – charges documents submitted along with the case were said to prove.

The state also alleged that the MMC was deliberately attempting to delay the ongoing case by claiming the charges “were not clear”, according to newspaper Haveeru.

Addressing the case, Mayor Manik claimed that no specifics had been given by the state as to where the council had violated its agreement in providing the land.

The case was reportedly adjourned Tuesday in order to provide the state time to respond to the MCC’s allegations. Manik claimed that a date for the next hearing of the case had not yet been set.

Minister of Housing Dr Mohamed Muiz was not responding to inquiries from Minivan News today regarding the case. President’s Office Spokesperson Abbas Adil Riza and Media Secretary Masood Imad were also not responding to calls at the time of press.

Legal wrangling

The case is the latest development in ongoing legal wrangling between the MCC and the Ministry of Housing over the Usfasgandfu site.

Earlier this month, the Civil Court ruled that the Maldives Police Service does not have legal authority to order the MDP to vacate its ‘Usfasgandu’ protest camp on May 29.

The court noted the same day that the a wider dispute between the MCC and Housing ministry over guardianship of the Usfasgandu area could only be settled once the Civil Court reached a verdict on the case being heard this week, which was filed by the ministry requesting the MCC be ordered to hand over the plot.

On May 29, police raided Usfasgandu with a search warrant from the Criminal Court and ordered the MDP to vacate the area before 10pm, after which the Maldives National Defence Force (MNDF) began dismantling the protest camp.

The Civil Court however issued an injunction ordering the security forces to halt the dismantling after the MDP challenged the legality of the operation. The injunction was to stand until the court reached a verdict and was later upheld by the High Court.

Police had obtained a warrant to search Usfasgandu on the grounds that the MDP was using the area as a hub for criminal activity and black magic.

MDP lawyers however argued at court that the warrant did not provide a legal basis to dismantle the demonstration area.

Following the dismantling of the MDP’s protest camp at the tsunami memorial area on March 19, the Male’ City Council (MCC) leased the Usfasgandu area to the former ruling party for three months, prompting repeated attempts by the government to reclaim the area.

The MCC – which has nine MDP councillors and two government-aligned Dhivehi Rayyithunge Party (DRP) councillors – however refused to hand over the area to the Housing Ministry despite a cabinet decision authorising the Housing Ministry to reclaim the plot.

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“The quality of services delivered by the judiciary remains disappointingly gloomy”: Home Minister

“Our judiciary has some bright minds, but that does not exempt it from scrutiny; judiciary in the Maldives, with the exception of few courts and judges, the judiciary as a whole has earned a deservedly bad reputation for its inconsistent judgments, lack of leadership, lack of competency and being out of touch with modern laws and views of the society.”

So says Dr Mohamed Jameel Ahmed, the current Minister of Home Affairs, writing in Haveeru today.

“Holders of the judiciary were given security of tenure through the appointment of Magistrates and judges by an independent commission. Supreme Court justices recommended by Judicial Service Commission and nominated by the President were appointed by the Parliament.

Holders of the office of the judiciary were further secured with the provision that they could only be removed by a two third vote of the Parliament. The legislatures pinned their hopes of establishing an independent judiciary.

It was the desire of the nation to see not only an independent judiciary but also competent professionals leading it, and who are able to fulfill the expectation of a nation on the verge of embracing new found democracy, and whose inhabitants have over the years acquired knowledge and skills in various professions.”

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Utility companies owe us MVR 350 million: STO

The State Trading Organisation (STO) stated Thursday that the utility companies are close to MVR 350 million in debt to the state-owned company through the purchase of fuel using credit, reports local media.

In a press conference held in Velaanaage, Managing Director of STO Shahid Ali said that obtaining payments from the utility companies was a continuously problematic issue, but that he had observed it to be more difficult after December 2011.

Shahid also said that since the government held shares in STO, it required similar concessions as other government-owned companies.

Shahid said they are now undertaking discussions with relevant government authorities and the utility companies to settle the outstanding payments.

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Government’s proposed revenue raising measures excessive, warn resort managers

Several resort managers have voiced concern that revenue raising measures proposed by the Finance Ministry will affect the financial viability of the tourism industry while providing little improvement in service or support in return.

The proposed measures were part of an ‘austerity’ package sent to parliament’s Finance Committee last week in a bid to address the country’s crippled financial condition.

Increased government spending – such as the repayment of civil service salaries cut during the former administration, and promotions and lump sum payments to the police and military – has not been offset by additional income.

As a result, the government has sought a succession of loans this year to pay its expenses at a time it is facing political challenges to its legitimacy, and country is facing plummeting investor confidence, a drop-off in foreign aid, an ongoing foreign currency crisis, and the challenges of its 2011 graduation to the UN’s definition of ‘middle income’.

As well as a raft of austerity measures, including the cancellation of electricity subsidies for citizens in Male’ and “reform” of the universal healthcare scheme, proposed revenue raising measures include plans to:

Raise import duty on oil to 3 percent
Impose import duty on items whose value exceeds MVR6.4 million
Raise import duties for liquor
Introduce GST for telecom services and sale of flats (both are now GST-exempt)
Raise GST rate for luxury items
Raise T-GST to 15 percent
Raise airport service charge for foreigners to $30
Increase visa fee for foreigners by MVR150

Minivan News spoke to several resort managers about the potential impact of such measures on the tourism industry. Of particular concern was the proposed increase in Tourism GST from 6 percent to 15 percent.

“That would be the biggest hit along with the liquor duty,” observed one manager.

“With the standard 10 percent service charge we’d be talking 25 percent on top. That’s too much,” he said.

Furthermore, a sudden increase in T-GST would force resorts to absorb the increase, due to contractual obligations.

“If such an announcement came after [the] contracts are signed, many operators would be forced to absorb the additional percent again,” the manager observed.

“Higher duty on liquor would be the most directly felt increase in guests’ daily extras. Our sales would take a hit,” he added.

An increase in already high oil prices due to government import duty would further increase prices.

“Oil has become more and more expensive since oil was first used. Another rise in prices would be just another rise, which, in the case of oil, would come anyway. Of course extra costs will eventually be passed on also from suppliers and will at one point always end up on the client’s bill. How much more of such a hike our clients will take, I couldn’t say. Already now the low- and mid-priced market segments are moaning,” he said.

The increase in airport charges to US$30 for foreigners would also increase the overall cost of the destination for potential visitors.

“Many other places charge one as well and I guess it has come to be accepted. If this is then garnished with higher visa fees, taxes of 25 percent, an eco-tax, bed-tax and the whole lot, it might quickly get too much though,” the manager warned.

Another resort manager told Minivan News that given the country’s almost total reliance on tourism, the government “needs to see itself as a tourism body as much as a government of a nation.”

“Tourism bodies in a general have five key responsibilities in order to increase the economic benefit of tourism for a nation,” he said: “Attract guests to the destination, have them stay as long as possible, have them invest back as much as possible into the local economy, have them recommend the destination to their friends and/or return themselves, and encourage balanced tourism development.”

The Finance Ministry’s proposed revenue raising measures “have negative implications for all five points of any basic tourism body plan,” he observed.

“As seen in the past 2-3 years, most countries have based their austerity strategies on reduced government expenditure and encouraging increases in revenue growth. This has been completed by efficiency plans for civil servants and key strategies to increase revenue,” the manager noted.

“In its actions over the last five months, the Maldives’ government has increased civil servants’ salaries, increased other costs, and are now looking at taking action that will compromise their main revenue stream. This is very different to other countries with similar financial challenges,” he stated.

“Whilst I understand that there is a need for a major revision on the Maldives economy, I would hope that cost reduction measures are implemented within the government that will balance the need for increased taxes on Maldives’ tourists. Areas of increased taxation such as oil and customs duty would be more acceptable psychologically for the tourism economy rather than an increase in direct tourists taxes and charges,” the manager added.

According to a survey conducted by the Tourism Ministry in 2011, 46 percent of tourists to the Maldives believed that the accommodation was too expensive.

Soft drinks, alcohol were also rated expensive by 42 percent, while food, water and souvenirs received a similar ranking from 41 percent of tourists polled.

Tourism Minister Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal were not responding at time of press.

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High Court orders reinstatement of Police Chief Inspector Risheef Thoha

The High Court has overruled a decision made by the Civil Court regarding a suit filed against Police Chief Inspector Risheef Thoha, after he was dismissed by the Police Disciplinary Board over allegations that he raped a woman in a police car.

The court ordered that Chief Inspector Thoha be reinstated.

In August last year, a woman filed a case at police headquarters alleging she was sexually abused by a group of police officers, including the chief inspector.

In December 2010 Thoha appealed the decision of the Disciplinary Board at the Civil Court, which ruled that the Board’s decision was lawful and that there was enough evidence to dismiss Thoha from police duty.

The Civil Court noted at the time that Thoha’s call records showed he had contacted the other accused officers several times, and that the officers had also contacted him.

When the locations of the phones were determined, they showed that the car had travelled the routes the woman had said, the Civil Court’s ruling stated.

The ruling also said that the girl was thrown out of the car naked near Thoha ‘s house, Mainz in Maafannu, and that Thoha had admitted to being in the area a few minutes later.

However the High Court today ruled that Thoha be reinstated at the position of Chief Inspector of Police, and paid the salary he had not received during the time he was dismissed.

In August 2011 a close friend of the alleged victim told Minivan News the incident had occurred near Seahouse restaurant in Henveiru.

“She would not be older than 22 years, she was friends with the police inspector,’’ the source said. “According to what she told me, she was partying with a group of four police officers, including a senior inspector, and they were all drunk.’’

He alleged that the incident occurred inside a police car.

“She said they threw her onto the street after sexually abusing her,’’ the source added.

Former ‘Mr Maldives’ Police Constable Husham Hameed was also dismissed after being accused of the same crime, but in April last year the Civil Court ruled that his position also be reinstated.

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Nasheed reneging on commitment to respect CNI: Dunya

State Minister of Foreign Affairs Dunya Maumoon has accused former President Mohamed Nasheed and his Maldivian Democratic Party (MDP) of “threats and intimidation tactics” over the outcome of the CNI report, due at the end of August.

“The Government of Maldives is committed to the resolution of political differences through peaceful dialogue and the democratic boulevard [sic] and institutions available in the country,” Dunya said in the statement.

However Nasheed “is going back on his own words and commitment to the international community that he would respect the outcome of the CoNI.”

Former President was speaking during an event commemorating ‘Black Friday’, the brutal crackdown on pro-democracy activists by the former regime in 2004.

Dunya expressed concern at Nasheed’s apparent determination to bring members of the police and military to justice for their illegal roles in the transfer of power, no matter the final verdict of the inquiry commission.

“President Nasheed had threatened violence on the streets of Male’ in order to ensure justice,” said Dunya during the press conference, the details of which have been distributed by the Foreign Ministry as a media release.

A translation for Minivan News of the pertinent section of Nasheed’s Monday speech is as follows:

“I am certain beyond doubt that the commission’s report would note that many officers of the security forces committed a number of unlawful acts. Our demand, our protest, our request will be for these [officers] to be brought to justice. Our work will be to bring them to face justice. We should only go back home after CoNI’s report after bringing them to justice and establishing justice in this country. For a certainty, I definitely will not go back home otherwise.”

Nasheed’s intentions were clarified the following day in a proposal submitted to the government by the MDP . The document mapped out the steps the party expected to see taken following the CNI’s conclusion.

This proposal stated the MDP’s willingness to cease its calls for early presidential elections and wait for the constitutionally mandated polls in 2013 should the final report show no evidence of any unlawful activity in the transfer of power.

However, should the report find that the transfer included illegal acts on the part of any individual, the MDP proposed that those implicated be brought to trial and that all parties agree to early elections.

In the event that the CNI rules the departure of Nasheed from the President’s Office to have been unconstitutional, the MDP proposed that his government be fully reinstated.

The party had hoped for a response from the government before the end of Ramadan this weekend and appeared to receive it today when President’s Office spokesman Abbas Adil Riza told local media today that the government would not discuss the report’s outcome before its release.

“CNI’s report will not act as a final verdict. The purpose of the report is to assist the relevant institutions. So, there’s no need to make the report a ‘political carnival’,” Riza reportedly told Sun Online.

At its meeting on Tuesday, the MDP’s executive council had agreed to call a meeting of its National Council in order to determine the party’s next course of action.

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Gayoom’s half-brother acquitted of three-year old corruption charges

The Criminal Court on Thursday morning acquitted Abdulla Algeen Abdul Gayoom, half-brother of former President Maumoon Abdul Gayoom, of corruption charges more than three years after the trial began.

Algeen, younger brother of MP Abdulla Yameen, was accused of embezzling US$177,460 of Japanese funding from the Department of Meteorology (DOM), where he was the Director.

Algeen allegedly sent three separate invoices to the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) between May 2006 and April 2007 on behalf of DOM.

All three invoices demanded payment to Algeen’s personal Bank of Maldives account.

In the verdict (Dhivehi) acquitting Algeen today, Judge Abdulla Didi ruled that the state could not prove that the money in question was owed by JAMSTEC to the government.

History

The first hearing of the corruption case was held on June 9, 2009 with Chief Judge Abdulla Mohamed presiding. The second hearing took place over a year later on July 1, 2010.

Newspaper Haveeru reported on March 4 this year that the case was further delayed after the presiding judge was changed for a third time.

After the case changed hands from Judge Abdulla Mohamed to Judge Zubair Mohamed, it ended up with Judge Abdulla Didi, who held his first hearing of the case on March 4.

The local daily reported the judge as saying that although the trial had been completed and witnesses heard, he wished to hear the case again as there were certain points to clear up.

Prior to Judge Didi restarting the case, the last hearing was held on October 19, 2011 where the trial was concluded with closing statements.

Concluding the new hearings on April 11, 2012, Judge Didi had said he would issue a verdict in two weeks.

The case against Algeen

In August 2007, Minivan News reported leaked documents showing JAMSTEC was funding a two year DOM research project into the oceanography and meteorology of the Indian Ocean.

In a Memorandum of Understanding signed in early May 2006, JAMSTEC agreed to meet “all expenses incurred in connection” with the project.

Later that month an agreement was signed requiring JAMSTEC to transfer $92,000 dollars to the DOM. In April 2007, the agreement was renewed for a year, with a payment of $70,000 required.

Both the 2006 and 2007 agreements require JAMSTEC to transfer money to a “bank account… designated by DOM.”

Algeen was the sole signatory on behalf of DOM for both agreements.

He issued the $92,000 dollar invoice on May 22, three days after signing the 2006 agreement, and the $70,000 dollar invoice on April 8, 2007, the same day he signed the 2007 agreement. A third invoice for a balance amount of $13,248.34 was issued on 22 December, 2006.

All three invoices were issued on DOM letterheads and the two most recent had Government of Maldives stamps. The bank account quoted was Algeen’s personal one.

“Wiping the slate clean”

Following the controversial transfer of power on February 7, the Criminal Court dismissed corruption charges against Deputy Speaker of Parliament Ahmed Nazim and Eydhafushi MP Ahmed ‘Redwave’ Saleem.

On February 20, the Criminal Court ruled that Nazim could not be prosecuted on charges of defrauding the now-defunct Ministry of Atolls Development, in the purchase of 220 harbour lights worth MVR1.95 million (US$126,000) in 2004.

Nazim, leader of the People Alliance (PA), along with MP Ahmed ‘Redwave’ Saleem (then-finance director at the ministry) and Abdullah Hameed, former Atolls Minister and half brother of Gayoom were charged in late 2009 on multiple counts of conspiracy to defraud the Atolls Ministry.

Eight days after Nazim’s case was dismissed, the Criminal Court acquitted MP Saleem – now a member of former President Gayoom’s Progressive Party of Maldives (PPM) – of involvement in the scam.

Following the verdict, the formerly ruling Maldivian Democratic Party (MDP) accused President Mohamed Waheed Hassan Manik of being controlled by supporters of former President Gayoom, who were “intent on purging the People’s Majlis of MDP MPs and MDP-leaning MPs in order to secure a controlling majority.”

“Recent days have seen cases against three MDP-supporting MPs fast-tracked in order to disqualify them from parliament while serious corruption charges have been dropped for opposition leaning MPs,” the party said in a statement, noting that MP Saleem’s case had been “unreasonably delayed in the court process since 2009.”

On February 20, the Supreme Court in a 4-3 ruling disqualified MDP MP for Thimarafushi constituency, Mohamed Musthafa over a decreed debt and stripped him of his seat.

“While in government, MDP consistently maintained that key parts of the judiciary are in the hands of the supporters of former President Gayoom. Now we are seeing the truth of that claim. Dr Waheed regime is using the courts to settle old scores, to reduce MDP’s parliamentary majority and to wipe the slate clean for government supporters,” MDP spokesperson Hamid Abdul Ghafoor said at the time.

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