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Prosecutor general questions timing of MMPRC audit report release

Prosecutor General (PG) Muhthaz Muhsin has questioned the timing of the Auditor General’s Office’s release of a special audit report of the Maldives Marketing and Public Relations Company (MMPRC) implicating Tourism Minister Ahmed Adeeb in corrupt transactions worth US$6 million.

Muhsin told Sun Online yesterday that the report’s release on the same day (Thursday, October 30) that President Abdulla Yameen ratified amendments to the Audit Act that could see Auditor General Niyaz Ibrahim replaced was questionable.

The timing of the report’s release would create doubts and questions among the public, Muhsin said.

“I am not questioning the status of his post,” he added.

The Progressive Party of Maldives (PPM) meanwhile issued a press release on Thursday contending that the report was politically motivated, “baseless” and intended to defame Adeeb – also the party’s deputy leader.

The ruling party condemned Auditor General Niyaz Ibrahim for basing the report on “falsehoods”.

The opposition Maldivian Democratic Party has meanwhile called on the PG to prosecute the tourism minister for corruption and abuse of office.

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Adeeb denies corruption allegations as MDP calls for prosecution

Tourism Minister Ahmed Adeeb has denied allegations of corruption in a special audit report of the Maldives Marketing and Public Relations Company (MMPRC) while the opposition has called on the prosecutor general to press charges.

The report (Dhivehi) – made public on Thursday (October 30) – implicated Adeeb in corrupt transactions worth US$6 million between the MMPRC and the Maldives Ports Limited (MPL) and the Maldives Tourism Development Corporation (MTDC).

The MMPRC obtained MVR77 million (US$5 million) from MPL to be paid back in dollars and US$1 million from MTDC as a loan, which was immediately transferred to two companies – Millenium Capital Management Pvt Ltd and Montillion International Private Ltd, both with ties to Adeeb.

Speaking at a press conference at private broadcaster DhiTV’s studio last night (October 31), Adeeb insisted that the MVR77 million was not a financial loss to the state, noting that US$3 million has been repaid to MPL with the remainder due in December.

“Under my [tenure] as tourism ministry, in order to avoid state companies going into the dollar black market, I have obtained dollars for the state from one state company to another, the tourism industry, and various private parties,” Adeeb said.

Adeeb claimed to have arranged for local businessmen to purchase treasury bills worth MVR800 to 900 million as of October 2013 to ease the government’s cash flow problems.

The agreement between MMPRC and MPL was approved by the respective boards of the state-owned enterprises, the ruling Progressive of Party of Maldives’ (PPM) deputy leader stressed.

The MVR77 million from MPL was not embezzled or misappropriated, he insisted, claiming that the government routinely converts rufiyaa into dollars through private parties.

On the allegation that the tourism ministry awarded an italian-owned company an island for resort development to pay back US$2.25million of the US$6million MMPRC owed to MPL and MTDC, Adeeb claimed that Dhaalu Maagau was used as a picnic island by PPM MP Ahmed Nazim’s friends.

The former deputy speaker of parliament had repeatedly sought to secure the island, Adeeb said, dismissing the allegation that the Italian paid the lease rent for the island through Adeeb’s father’s Montillion company.

Adeeb also pledged to release his financial statement to the media on Sunday (November 2) and denied failing to declare assets.

According to the audit report, Adeeb has failed to declare assets as stipulated by Article 138 of the Constitution since he was appointed tourism minister in 2012.

Counter-allegations

When the US$6 million corruption scandal first surfaced in May, Adeeb told Minivan News that the “defamation attempt” was linked to his refusal to support certain individuals for speaker and deputy speaker of the 18th People’s Majlis.

Minivan News understands MP Ahmed Nazim was involved in leaking documents related to the case to online news outlet CNM, which first broke the story of the Anti-Corruption Commission (ACC) investigating the transactions.

Nazim’s passport was withheld last week, but he left the country on the date the court order was issued.

In May, Adeeb confirmed to Minivan News that two repayment cheques dated May 10 and 15 bounced due to insufficient funds.

The MTDC’s US$1 million had been reimbursed, Adeeb said, while MPL had been paid one-third of the owed amount in dollars. The remaining two thirds are due in June, he added.

At last night’s press briefing, Adeeb alleged “extraordinary ties” between Nazim and Auditor General Niyaz Ibrahim.

Following his refusal to support Nazim for the deputy speaker’s post, Adeeb said Nazim threatened to put out audit reports implicating him as well as family members in corrupt dealings.

Moreover, the auditor general’s office neither sought a statement from him nor posed any questions regarding the transactions, Adeeb said.

“I am most saddened that professionals, specialised people, are brought in between our political rivalry in the political arena,” he said.

“Unconstitutional”

The opposition Maldivian Democratic Party (MDP) meanwhile released a press statement yesterday condemning the government’s “unconstitutional” and “unlawful” attempts to replace the auditor general before the end of his seven-year term.

Last week, parliament passed amendments to the Audit Act requiring the president to reappoint an auditor general within 30 days of ratifying the amendments.

President Abdulla Yameen ratified the amendments on Thursday.

The MDP contended that the auditor general could only be removed from office through the process specified in the Constitution, which was “(a) on the ground of misconduct, incapacity or incompetence; and (b) a finding to that effect by a committee of the People’s Majlis, pursuant to article (a) and upon the approval of such finding by the People’s Majlis by a majority of those present and voting, calling for the Auditor General’s removal from office”.

The attempt to remove the auditor general shows the level of corruption in the current administration, the press release stated, adding that the government was undermining independent institutions.

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Adeeb “saddened” at PPM colleague’s attempts to link him with missing journalist

Tourism minister Ahmed Adeeb has expressed sadness at reports fellow party member Ahmed Nazim had attempted to link him with the disappearance of Minivan News journalist Ahmed Rilwan.

“I am saddened that former Majlis Deputy Speaker asked different journalists to write, implicating me in the case to divert focus, as the case was being investigated by police,” said the deputy leader of the Progressive Party of Maldives (PPM) yesterday.

Adeeb spoke to the press in response to a damning report from the auditor general, implicating him in a US$6 million corruption scandal.

Rumours of Nazim’s attempts to have Adeeb linked with the disappearance of Rilwan on August 8 first appeared in an independent report commissioned by the Maldivian Democracy Network in September.

The report – which mentioned multiple potential lines of inquiry – suggested that radicalised gangs were the most likely groups to have abducted Rilwan from outside his home in Hulhumalé.

The 28-year-old’s disappearance 85 days ago remains a mystery, with the journalists’ family last week submitting an official complaint to the Police Integrity Commission regarding the authorities’ lack of progress in the search.

Blaming political opponents for the release of the audit report this week, Adeeb repeated suggestions that his enemies were attempting to smear him after his failure to support them in the selection for leadership of the Majlis in May.

“But I didn’t believe the threats because the auditor general is someone I respected. I believed up until the report was released yesterday that he would not compromised. Nazim threatened me very recently as well before he left for Malaysia.”

Nazim – who was not selected as a PPM candidate for Majlis deputy speaker – left the country last week just as the criminal court ordered that his passport be held in relation to unspecified charges.

Adeeb also heads the cabinet’s Economic Council  as well as the newly formed special economic zone investment board, having risen from relative obscurity prior to 2012 to become arguably the second most powerful man in the government behind President Abdulla Yameen.

He told journalists that Dhiggaru MP Nazim had suggested to the media that Rilwan was abducted in relation to his work on the Dhaalu Maagau case – also featured in the recent audit report.

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T-GST rises to 12 percent

A Tourism Goods and Service Tax (T-GST) hike from eight to 12 percent approved by parliament in February has come into force today.

The tax hike was approved as part of revenue raising measures proposed by the government to raise additional revenue anticipated in this year’s budget.

One general manager has from a prominent resort told Minivan News that bookings appeared to be down for the month of November, with both guests and operators aware of the “double tax” as the T-GST increase combines with the bed tax.

“November will be tough,” he explained. “Top end resorts will really feel this. There’s no way further increases could be stood.”

Representatives from the Maldives Association of Tourism Industry (MATI) have also opposed the continuation of the bed tax alongside the T-GST increase, though the IMF has suggested that a 12 percent tax rate on the Maldivian industry remains “quite low” due to its high rates of return.

Other measures included reintroducing the US$8 tourism bed tax, reversing import duty reductions, raising airport departure charge for foreign passengers from US$18 to US$25, leasing 12 islands for resort development, and introducing GST for telecommunication services.

Introduced in 2011, T-GST generated around MVR2 billion (US$129 million) between January and September this year – equal to just under 24 percent of all government revenue.

In its latest quarterly economic bulletin, the Maldives Monetary Authority (MMA) warned that total revenue collected in 2014 could be lower than budgeted due to compromises by parliament in passing the revenue raising measures.

“For example, initially the 2014 budget anticipated the implementation of Tourism Goods and Services Tax (T-GST) hike— from 8% to 12%—in July 2014 but it was delayed to November 2014,” the central bank explained.

“Similarly, the continuation of the Bed Tax was delayed by a month and it is to be discontinued after November 2014, as opposed to the anticipated collection of Bed Tax throughout the year.”

In addition, the MMA explained that payments for resort lease extension fees, which had been anticipated to be received in full under the proposed budget, were later revised to be paid in instalments over 18 months.

Finance Minister Abdulla Jihad told parliament’s public accounts committee last month that the revenue shortfall would amount to MVR1.5 billion. Consequently, the initially projected MVR1.3 billion deficit in this year’s record budget is now expected to rise to over MVR4 billion.

Last month, the finance ministry imposed cost cutting measures in a bid to rein in the ballooning budget deficit.

The parliamentary subcommittee that reviewed the revenue raising measures had recommended revising the government’s proposals following consultations with the MATI.

Appearing before the subcommittee, MATI Secretary General Ahmed Nazeer also questioned the practicality of collecting resort lease extension fees upfront.

Only 17 out of more than 100 resorts offered the opportunity by the administration of former President Mohamed Nasheed to extend leases with a lump sum payment were able to do so, Nazeer said.

Resort owners had amended their lease agreements to pay extension fees in installments during Dr Mohamed Waheed Hassan’s administration, Nazeer noted, and revising agreements for a third time could present legal challenges.

Speaking with Minivan News today, the anonymous GM suggested the government focus on its own austerity measures, or risk losing guests to more “cost-effective” destinations, though the IMF earlier this year had

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High Court annuls JSC procedure for appointing new judge

The High Court has annulled procedural rules put in place by the Judicial Service Commission (JSC) for appointing a new judge to the appeals court bench.

Lawyers Anas Abdul Sattar and Hassan Fiyaz had challenged the legality of some provisions in the rules. In its ruling, delivered on Thursday (October 30), the High Court ordered the judicial watchdog to formulate new rules for selecting and appointing a judge.

Nine candidates have applied for the vacancy on the nine member High Court bench following the transfer of former Chief Judge Ahmed Shareef to Juvenile Court.

Applicants include Criminal Court Judges Abdulla Didi and Muhthaz Fahmy, Family Court Chief Judge Hassan Saeed, Civil Court Judges Aisha Shujune, Mohamed Hussain Mazeed, Mariyam Nihayath and Abdulla Jameel Moosa, Hulhumale’ Court Marriage Registrar Hassan Ali, and UNDP Assistant Resident Representative Aishath Rizna.

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Latheefa Gasim elected to represent lawyers on JSC

Attorney Latheefa Gasim won yesterday’s polls to elect a lawyer to represent the legal community on the Judicial Service Commission (JSC).

Latheefa won the polls with 238 votes while her closest contender, former Deputy Prosecutor General Hussain Shameem, secured 163 votes.

In mid-August, the AG Office postponed the election for a second time after the Supreme Court struck down section 11(a) of the regulations enacted for conducting the polls, which state that polling mechanisms would be established on inhabited islands with at least five registered voters.

The apex court had declared that all licensed lawyers eligible to vote in the elections – including magistrates of island courts – should be able to do so anywhere in the country without registering.

The order prompted the AG Office to repeal the procedural regulations as the “essence” of the annulled clause was assuring “secrecy of the ballot”.

Latheefa had previously served on the JSC as former President Dr Mohamed Waheed’s member on the 10-member judicial oversight body.

Shameem meanwhile thanked voters on Twitter following the polls and expressed gratitude for support despite “nonstop rain, flooding and difficulties in communication.”

Among the other contestants, Mohamed Faisal received 63 votes, Anas Abdul Sattar received 19 votes, and Rusdhulla Ibrahim got 10 votes.

The AG Office had enacted new regulations (Dhivehi) in line with the Supreme Court order (Dhivehi). Lawyers and magistrates in other islands were allowed to vote via fax from a polling station arranged by the AG Office.

Once the faxed ballot paper with the name, signature and fingerprint of the voter is received by the AG Office, an election official at the office was to omit the section with the name and cast the ballot into a ballot box in Malé.

After withdrawing his candidacy, lawyer Mohamed Fareed had objected to judicial interference in the election following an earlier Supreme Court’s ruling allowing all licensed lawyers, including sitting MPs and judges, to vote in the election.

“The belief that an election in the Maldives may proceed without Supreme Court interference is against the facts, reality. This is the reality now,” he said at a press conference.

With voting mechanisms set up on every island, magistrates would be forced to vote for the judiciary-backed candidate Latheefa Qasim, he suggested.

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Tourism Minister implicated in US$6million corruption scandal

An audit report has implicated Tourism Minister Ahmed Adeeb in a corruption scandal involving US$6million, a day after ruling Progressive Party of the Maldives (PPM) amended the Audit Law to reappoint the Auditor General (AG).

AG Niyaz Ibrahim, in today’s special audit report, said the Maldives Marketing and Public Relations Company (MMPRC) obtained a US$1million loan from Maldives Tourism Development Corporation in the guise of making an urgent payment to a foreign party and subsequently loaned the money to a company owned by Adeeb’s father.

Adeeb owned a 35 percent share in Montillion International Private Ltd, but transferred his shares to his father in March 2012 when he assumed the post of Tourism Minister.

The company only made MVR 70,100 in 2011 through trade, but in the period between 2012 and 2014, US$ 6.8 million and MVR 3.6 million from tourism related business rolled through the company’s accounts, the report noted.

In a separate case, the MMPRC also asked the Maldives Ports Ltd (MPL) to hand over MVR 77.1million to pay the company US$5million at a later date. MPL agreed to transaction despite demonstrating no need for dollars.

MMPRC immediately transferred MVR 77.1million to a private company Millenium Capital Management Pvt Ltd. Only US$ 3 million of the pledged US$5million has been paid back. The audit report said Adeeb helped MMPRC push the deal through.

It also suggested the Tourism Ministry awarded a company owned by an Italian an island for resort development to pay back US$2.25million of the US$6million MMPRC owed to MPL and MTDC.

According to the report, Adeeb has failed to declare assets as per Article 138 of the Constitution since he took up the post of Tourism Minister.

The Tourism Ministry and Maldives Inland Revenue Authority (MIRA) refused to cooperate with the investigation, the report noted.

In a tweet Adeeb has condemned the report as politically motivated.

Channel News Maldives (CNM) broke the story of the US$6million corruption scandal in May. Its reporter Abdulla Haseen was charged with disobedience to order in August, but the Prosecutor General withdrew the charges a few weeks later.

Minivan News understands former deputy Speaker of Majlis Mohamed Nazim was involved in leaking documents to CNM. His passport was withheld last week, but Nazim left the country on the date the warrant was issued.

Millenium, Montillion, New Mood

Niyaz said MMPRC had obtained MVR77.1million from MPL and US$1million from MTDC to provide illegal loans to private companies.

Although MPL approved the MVR 77.1million payment in exchange for US$5 million, the company had no need of dollars and the transaction was made on MMPRC’s initiation, not MPL’s.

Further, MPL’s 2014 budget shows it required only US$2.2million for machinery in 2014, but the bidding process had not been opened at the time of transaction. MPL also had US$800,000 in treasury bonds and a large amount of dollars in its accounts.

Moreover, MMPRC is not authorized to engage in dollar trade and does not have the capacity to buy or sell US$5 million, as its working capital at the end of 2013 stood at US$4.5million and assets were only worth MVR 324,485.

MPL authorized the “risky” transfer after MMPRC issued two dated checks. When MMPRC failed to make its second payment of US$2.5 million on July 8, the agreement was amended to allow the company to pay back the money by December 1. The report said the amendment was made because Millennium failed to repay MMPRC on time.

In the second case, MMPRC on April 9 asked MTDC for an urgent loan of US$1million to make an urgent payment to a foreign party for tourism promotion. The loan was to be paid back by May 15.

The money was transferred to Adeeb’s father’s company Montillion on April 15.

But MMPRC made no payment to any foreign party in the period. The loan was paid back by New Mood Resort Pvt Ltd, which was given Dhaalu Atoll Maagau Island, at a head lease rent of US$2.25 million.

Toursim Ministry and MIRA refused to reveal details of the Maagau deal despite repeated requests, the audit report said.

Montillion is also accused of bribing a senior tourism ministry official with US$450,000 in February in a separate resort development deal.

Neither the Finance Ministry nor the MMPRC board were involved in either case. The MMPRC’s Managing Director Abdullah Ziyath personally handled all of the transactions, including picking up checks, against the company’s procedures.

Niyaz has recommended all individuals involved in the two cases be investigated for corruption and charged with abuse of power.

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Everything will change once Rilwan is found, police commissioner tells Haveeru

Police Commissioner Hussein Waheed has said that everything happening in Maldivian society would change if missing Minivan News journalist Ahmed Rilwan were to be found.

In an exclusive interview with Haveeru, Waheed denied police negligence in the investigation while again refusing to reveal any specifics into the investigation’s progress.

“Saying that Rilwan hadn’t been found, I don’t believe any slips have been made in the investigation which would justify the accusation. But there are lessons to be learned with every investigation. We are learning the lessons,” he said.

Rilwan’s family yesterday lodged an official complaint with the Police Integrity Commission, accusing police of negligence in investigating the 28-year-old’s disappearance, as well as disrespect shown towards the family.

Waheed today repeated suggestions previously made by the home minister that non-governmental and media organisations were partially responsible for the apparently stalled investigation.

A reports commissioned by the Maldivian Democracy Network suggested radicalised gangs were the most likely culprits in the abduction 83 days ago. Police later dismissed the findings as irresponsible, though home minister has since acknowledged gang involvement in the disappearance.

“No one should think that we have forgotten about Rilwan’s case,” Waheed told Haveeru today.

“There are many different analyses. Considering the current progress of the investigation, and given that I manage investigative teams, I cannot, at the moment, give you 100 percent confirmation that a gang or group was involved in this.”

Asked if investigations had led police to believe Rilwan was still alive, Waheed only replied that they had found no evidence he was dead.

Numerous international group – most recently Amnesty International – have called upon police to expedite investigations.

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Fuvahmulah couple the latest to travel to ISIS territory for jihad

A couple from Fuvahmulah are reported to be the latest Maldivians to have left the country in order to wage jihad in Syria.

Local media has reported that Ahmed Munsih and his wife Suma Ali told family last night that they were already in Syria and that they would not be returning.

The news follows reports last week that four members of the same family, from Raa Atoll Meedhoo, had travelled to ISIS held territory –  currently comprising large swathes of Syria and Iraq.

Police Commissioner Hussain Waheed told Haveeru that efforts were underway to discourage those wishing to travel for jihad.

In September, an online jihadist group Bilad Al Sham Media – believed to be based in Syria and the Maldives – claimed that a total of four Maldivian men had now been killed while fighting in the Syrian civil war.

Former President Mohamed Nasheed has claimed that up to 200 Maldivians are on jihad, telling international media that ex-security servicemen were often among those travelling to fight abroad.

“Radical Islam is getting very, very strong in the Maldives. Their strength in the military and in the police is very significant,” the opposition leader told the UK’s Independent newspaper last month.

On September 5, a protest march took took place in Malé with participants bearing the Islamic State’s flag calling for the implementation of Islamic Shariah in the Maldives.

‘We want the laws of the Quran, not the green book [Maldivian constitution]‘, ‘Islam will eradicate secularism’, ‘No democracy, we want just Islam’, and ‘Shariah will dominate the world’, read some of the placards carried by protesters.

The UK government last week said it was aware of ISIS sympathisers in the Maldives, and that it will continue to “engage” with the government regarding religious moderation.

In late August, Foreign Minister Dunya Maumoon condemned “the crimes committed against innocent civilians by the organisation which identifies itself as the Islamic State of Iraq and the Levant or the Islamic State of Iraq and Syria.”

Dunya’s remarks followed Islamic Minister Dr Mohamed Shaheem Ali Saeed’s declaration that the ISIS would not be allowed to operate in the Maldives.

“ISIS is an extremist group. No space will be given for their ideology and activities in the Maldives,” Shaheem tweeted on August 24.

Intelligence service provider ‘The Soufan Group’ has estimated that as many as 12,000 fighters from at least 81 countries have joined civil war in Syria

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