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Immigration department to suspend services for tax evaders

The Department of Immigration and Emigration will suspend services for companies who fail to pay taxes starting on June 1.

The office will suspend issuing quotas to bring in expatriate workers, employment approvals for expatriate workers, business visas, and refund of security deposits for expatriate workers if a company or individual has pending payments, said a press release by the Maldives Inland Revenue Authority (MIRA) on Thursday.

These measures will only be taken if the company or individuals fail to pay MIRA on repeated warnings, or if the party refuses to make payments or if the party is wanted for tax evasion.

The measures will be dropped as soon as the required payments are made, MIRA said.

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MDP and PPM colluded in Speaker vote, says JP

The Jumhooree Party (JP) has suggested collusion between the ruling Progressive Party of the Maldives (PPM) and opposition Maldivian Democratic Party (MDP) in Wednesday’s secret ballot to elect a Speaker and Deputy Speaker for the People’s Majlis.

JP leader and MP Gasim Ibrahim narrowly lost the Speaker position to PPM MP Abdulla Maseeh. But MDP’s ‘Reeko’ Moosa Manik won the position of deputy Speaker against PPM’s Abdul Raheem Abdulla.

The JP also condemned the PPM’s unilateral decision to end a coalition agreement made between the two parties in November’s presidential election.

The PPM had announced the dissolution claiming Gasim’s decision to run as Speaker breached the agreement.

But JP has pointed out that the agreement does not address the issue of Majlis Speakership and said Gasim’s exercising his right as an MP must not impact the agreement.

The party has also accused PPM of being irresponsible, claiming the PPM failed to hold discussions on the dispute over the Speaker, failure to appoint JP nominees to political positions as per the agreement, and failure to officially inform JP of the dissolution of the agreement.

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Six men tie up security guard, rob Huraa Council office

Six masked men bound and gagged a security guard at the Kaafu Atoll Huraa Island Council Office and stole an unspecified amount of money from the office on Friday morning.

Council President Easa Ahmed told local news agency Haveeru the robbers stole a safe and documents from the office. The safe contained the salaries of all the council’s employees for the month of May.

The incident was reported to the police at 3:15 am on Friday.

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Open prisons and electronic tagging part of plans to overhaul jail

Inmates at Maafushi Island Prison are to be categorised into four groups according to security risk, with the least dangerous criminals to be tagged and released on work and study programmes.

“This is a huge change to the prison system,” Naseer told Haveeru adding that the reforms will reduce state expenditure on the rehabilitation system.

Older inmates or inmates nearing the end of the sentence will be housed in an open jail on a separate island, Home Minister Umar Naseer told local news agency Haveeru today.

Inmates in category two will be allowed to work on the industrial Thilafushi Island, and the most dangerous criminals or category one criminals will continue to serve their sentences behind bars in Maafushi prison.

“This will be advantageous to the state budget. Secondly, it will allow criminals to undergo rehabilitation and integrate back into society. With this, when inmates are released from jail, they will have undergone one of the programs,” the Home Minister told Haveeru.

The inmates who are to be released on the work and study programme will have an electronic tag fixed to their legs. In addition to undergoing a security screening, they will also have to be nearing the end of their sentence.

“They will have to do one or the other [work or study]. If they are working, we have to know where they are going. We also have to know the exact route they are taking. Through the tag, we can track which streets they are walking on,” he said.

The home minister said the tags have been tested during his trip to Singapore earlier this week. An expert team is to visit the Maldives to demonstrate how the tags work to government offices, he said.

The open jail is to be established on an uninhabited island. The government will provide modest shelter, run a mosque, and establish an administrative office and a security post. The inmates will cook for themselves and be self- sufficient, but will not be allowed to leave the island, Naseer said.

“These are people who pose no harm to society. And elderly inmates who are weak,” he said.

Plans are underway to designate an island for the open jail. The Home Ministry is currently working on a policy paper on the matter to be submitted to the social council at the President’s Office.

Category two criminals will be provided employment with the Road Development Corporation and will be put to work and housed on Thilafushi.

The Maldives Correctional Services (MCS) and the corporation have already signed an agreement to transfer jobs from expatriate workers to inmates.

“The Road Development Corporation’s labour quarters will be changed into prison labour quarters. That means there will be a fence around the quarters,” he said.

Inmates will be released during the day for work and brought back to the labor quarters at night. The renovation is expected to cost MVR6 million (US$ 389,105) and will be funded through the state budget.

Approximately 50 inmates are already employed on Thilafushi, he said.

The reforms will reduce the prison population from 1000 inmates to 300 or 400 inmates, the home minister said.

Naseer has overseen a series of radical changes including a decision to implement the death penalty.

New regulations formulated in April have ended a sixty-year moratorium on the practice. The Maldives Correctional Services is now preparing facilities to implement the death sentence through legal injection.

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Health Protection Agency plan youth services to bridge gap in sexual health education

A sexual health education pilot aimed at young people will be launched in Hulhumalé before the end of this year, the Health Protection Agency (HPA) has told Minivan News.

“There is no comprehensive sexual education in the schools,” said the source. “We have to keep talking about these issues, about how to keep young people safe.”

The pilot will provide a comprehensive sexual health and general health service to all young people aged 10-24 years old.

According to the agency’s Reproductive Health Unit (RHU), the the project will attempt to bridge gaps in sexual and reproductive health services for young people.

A member of an established health service provider, who wished to remain anonymous, highlighted age-appropriate guidelines as key barriers to sexual health education.

The comments come after the body of a new-born baby was discovered in a house in Maafanu earlier this week. Local media reported that the 18-year-old mother, currently in police custody, committed infanticide after having hidden her pregnancy.

National Guidelines

The national guidelines issued by the Ministry of Health and Gender prohibit some elements of sexual health education – including condoms and safe sex – until students are 18-years-old.

“There is a standard which is maintained by the health sector. There are a lot of cultural and religious barriers in providing this information,” the source told Minivan News.

“Unless those issues are not tackled, the stigma in accessing [health education] will not happen.”

Reticence in the health sector is mirrored in the family sphere, argued the source, who stated that family members are reluctant to speak candidly with their children about sexual health.

“There are some views of parents that if you talk about sexual health, they might go and do it.”

With no accurate information from schools or parents, the student will often turn to peers or the internet for support on sexual health, noted the source, which results in the rapid spread of mis-information.

Religious barriers

Under the 2008 constitution the Maldives is a 100 percent Muslim country, with national guidelines surrounding sexual and reproductive health being strongly influenced by religion.

A report conducted by the Department of National Planning in 2013 concluded that religious beliefs had been the reason behind an increase in trends such as a preference for home schooling, refusal of vaccination and other medical services for women.

Expressing a similar view, the health sector source noted that religion had contributed to some of the barriers in delivering sexual and reproductive health education.

“That’s a huge barrier actually on sexual health education, because there’s certain beliefs on providing information, or on family planning, on safe abortion,” stated the source.

“They [religious scholars] have a lot of myths related to sexual reproductive health.”

The source suggestion that there is support for the assimilation of religion into sexual health education delivery, but that disagreements between religious scholars had meant that progress was slow.

Next steps

The RHU project is underpinned by the imminent release of their new guidelines, National Standards for Adolescent and Youth Friendly Health Services for Young People.

These guidelines outlines the key standards for health education for all young people aged 10 – 24 years, ensuring that they will “enter the productive age in the fullest possible wellbeing.”

Noting the closure of previous similar projects, such as the Youth Health Café, the RHU noted that there are a number of difficulties in launching a new healthcare service.

The RHU source also wished to remain anonymous, reflecting the strong emotions provoked by discussion of sex education.

“Convincing people to initiate something in health facility is not easy,” they stated.

“It will be difficult. At present it is very difficult, unless the person is coming seeking the services it is difficult.”

When asked if they felt that young people are getting the right information at the right age, RHU representatives responded with a firm “no”.

“Not all. They are not getting that information. As far as access, there is no access.”

Issues regarding a lack of support services for sexual and reproductive health in the Maldives have been well-documented in the past.

A report entitled ‘Maldives Operational Review for the ICPD Beyond 2014‘, carried out by the Department of National Planning (DNP), claimed that incidents of infanticide and unsafe abortions are symptoms of a lack of sexual education in young Maldivians.

The report identified, “clear indicators of the imperative need to provide access to information on sexual reproductive health and reproductive health services to the sexually active adolescents

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VP says government work unaffected by coalition split as JP ministers suspended

The breakup of the Progressive Coalition will not affect the work of the government, insists Vice President Dr Mohamed Jameel Ahmed following Jumhooree Party’s (JP) exit from the group.

Jameel’s comments to local media come as the President’s Office confirmed Transport Minister Ameen Ibrahim and two of his junior ministers – all JP members – had been asked to ‘stay at home’.

After coalition partner Gasim Ibrahim chose to stand – albeit unsuccessfully – for the Majlis speaker’s position yesterday, the Progressive Party of Maldives (PPM) released a statement officially ending the coalition agreement.

“In accordance with the unanimous decision of the PPM council at an emergency meeting on the night of May 26, 2014, we announce that the coalition agreement made between this party and the Jumhooree Party has been brought to an end by the Jumhooree Party as of today,” read the statement.

The party had previously threatened to dissolve the pact should JP leader Gasim stand in competition for the post.

Additionally, in response to Gasim’s complaints that the PPM had breached the coalition agreement by not providing his party with only 29 of the 40-90 promised appointments, President Abdulla Yameen claimed many of its nominees had been unqualified.

Tourism Minister and head of the cabinet’s economic council Ahmed Adeeb earlier this week expressed his intention to ask Yameen to replace JP’s political appointees in the event of a split.

The two junior ministers suspended today have been named by local media as State Minister for Transport Ahmed Zubair and Deputy Minister of Transport Ikram Hassan.

President’s Office spokesman Ibrahim Muaz told local media that the suspensions were in relation to the coalition split, and will remain in place until the matter is resolved.

Balance of power

While the PPM’s Abdulla Maseeh won the vote at the opening of yesterday’s 18th People’s Majlis, the narrow victory appeared to suggest the impact the split will have on the government.

“Gasim holds the balance of power – I think this will destabilise the government seriously,” said opposition Maldivian Democratic Party Spokesman Hamid Abdul Ghafoor today. “We suspect it won’t last for five years.”

Hamid pointed to his party’s experience of governance, following its own short-lived coalition with Gasim’ JP in 2008. After concerted anti-government pressure and months of street demonstrations, the MDP government fell in early 2012.

The PPM currently controls 44 percent of the Majlis – 37 seats – while the opposition MDP hold 29 percent – 25 seats. The JP controls 18 percent of the house – 15 seats, with the Adhaalath’s sole representative and two independents making up the 85-seat legislature.

PPM MP Maseeh received 43 votes to secure the speaker’s chair yesterday, with Gasim receiving the support of 39 members.

The fine balance left in the wake of the coalition split was also evident in the election of MDP MP ‘Reeko’ Moosa Manik – who took the deputy speaker’s position with 42 votes to his PPM opponent’s 41.

In yesterday evening’s statement, the PPM cited the JP’s co-operation with the MDP in Moosa’s election as further cause for the coalition split – depicting the dissolution of the agreement as the JP’s decision.

Speaking with local media, Vice President Jameel said that the JP was going against the citizen’s wishes by working with MDP – who last month endorsed Gasim’s candidacy for speaker.

Jameel today argued that unity against the MDP had been the basis of the coalition.

The parties entered a formal coalition agreement ahead of last year’s presidential election run-off between the MDP’s Mohamed Nasheed and PPM’s Yameen after Gasim has placed third.

Gasim’s endorsement of Yameen proved to be crucial in the PPM-led coalition’s narrow victory in the second round of November’s presidential polls.

“From JP leader Gasim to everyone in all levels, were working against the MDP’s actions. For example, the GMR issue and the detention of Judge Abdulla. Are they now saying all of that is fine? I am saying this because [Gasim] has spoken of how it is easy for the two of them [Gasim and Nasheed] to work together,” said Jameel.

“It is the citizens who suffer the most when JP acts against the spirit and aim of the coalition. It is now questionable if JP can work with any party in a coalition,” said Jameel, before telling local media to expect further developments in the coming week.

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Government to introduce 26 ‘sea-ambulances’ by end of year

The government hopes to introduce 26 ‘sea-ambulances’ by the end of the year to provide emergency transportation for patients from all inhabited islands in the country, Vice President Dr Mohamed Jameel Ahmed has said.

Speaking at a ceremony held at the official jetty in Malé this morning to inaugurate the sea-ambulance service, Dr Jameel noted that providing emergency medical evacuation services to citizens in the atolls was a campaign pledge of President Abdulla Yameen.

The introduction of the sea-ambulance service “for the first in Maldivian history” would solve one of the biggest problems facing the health sector, Jameel said, which was providing urgent medical treatment to patients in geographically dispersed islands.

The cost of transporting patients from the atolls to the capital would also be significantly reduced, he noted.

The vice president said he hoped ongoing collaborative efforts by the Ministry of Health and the Ministry of Defence would see the completion of 26 refurbished speedboats by the end of the year.

According to the Health Ministry, the two speedboats launched today will be used in Raa and Baa atolls whilst paramedical and first-aid training will be provided to the crew.

As efforts to refit speedboats were ongoing “swiftly,” the ministry said it expects to introduce two further sea-ambulances in a month and a half.

The government plans to divide the country into 23 areas to cover all inhabited islands, the ministry explained in a statement, noting that the sea-ambulances would be operated and maintained by the Maldives National Defence Force based on instructions from the Health Ministry.

Meanwhile, at today’s ceremony, the vice president officially handed over a medical equipment kit to the captain of the ‎’Kudahuvadhoo Sea Ambulance’, Mohamed Zakariya, and was provided ‎a tour.

A demonstration of sea-ambulance services ‎was also presented at the ceremony.

In his speech, Jameel meanwhile contended that the current administration had inherited a “weakened” health system, which it was attempting to “put back on its feet.”

Problems in the health sector ranged from the quality of services provided at health centres in the atolls to the lack of medical equipment, he added.

“I would like to say that we have complete confidence that we will be able to provide [health] services to the public’s satisfaction before too long,” he said.

The vice president called on employees, managers and administrative staff in the health sector to put aside political differences and to work with the government to meet the expectations of the public.

Among the achievements of President Abdulla Yameen’s administration so far was the establishment of a salary framework for doctors this month, Jameel said, which he suggested would address complaints of the lack of doctors in the atolls.

More than 200 doctors will be recruited in the near future for hospitals and health centres in the atolls, Jameel added.

The Health Ministry made an announcement last week seeking 225 doctors, including 91 medical officers, 25 gynaecologists, 19 children’s doctors, 17 physicians, 14 anaesthesiologists, 14 surgeons, 11 eye doctors, seven orthopaedic doctors, seven ENT doctors, and seven psychiatrists.

The government also revealed plans to upgrade the Indira Gandhi Memorial Hospital (IGMH) in a US$7 million renovation project last week.

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MMA seeks feedback on draft consumer finance law

The Maldives Monetary Authority (MMA) has invited interested parties to submit comments, views and suggestions on a consumer finance bill drafted by the central bank.

The bill is intended for “the purposes of providing for licensing of financial institutions to conduct consumer finance business in Maldives, policies for the operations of such institutions in a safe and prudent manner, supervision of such institutions and provision for other related purposes.”

Interested parties were asked to submit feedback on the draft legislation through email before June 15.

Consumer finance involves a variety of loans to individual consumers, including credit cards and mortgage loans from banks and credit unions as well as alternative lenders such as finance companies.

Earlier this month, CEO of the Capital Market Development Authority (CMDA) Fathimath Shafeega told Minivan News that the Maldives was  “ideally placed” to become an international financial centre.

The country’s fledgling legal framework for the finance sector was both a strength and a weakness, she explained: “We don’t have regulations hindering a lot of things. We can start from a clean slate. But parliament needs to be very much involved in it. We might need to provide the software – laws and regulations and other policy frameworks – while investors can bring the hardware.”

Shafeega also argued that the successful establishment of an Islamic Capital Market – featuring Shariah-compliant financial products – would also add to the Maldives’ appeal as a future financial hub.

Strengthening the finance sector

Meanwhile, in a keynote address delivered at a finance forum held earlier this month, MMA Governor Dr Azeema Adam stressed the importance of an “efficient and modern financial sector” as well as access to finance for creating “a society of entrepreneurs.”

“To allow the financial sector to thrive, it is imperative that we have a well-developed legal framework,” she said.

“When the legal framework is fully developed, there would be timely enforcement of contracts, and the protection of investors’ rights. There would be legal instruments for recovering debt. There would be speedy settlement of commercial cases in the courts.”

She noted that the central bank was working with the government to introduce new legal instruments and to strengthen institutions, referring to the recently passed Anti-Money Laundering Act as “one such legislation that would safeguard the financial sector from criminal activities and enhance investor confidence.”

While the central bank has a “fairly robust financial sector regulatory framework,” Dr Azeema said the MMA was in the process of reviewing existing regulations to identify constraints to the development of the finance sector.

“This will minimise the chances for the financial system to be burdened by unnecessary rules and unintended consequences,” she explained.

“International experience suggests that even a slight improvement in the legal and financial regulatory frameworks brings significant changes to the financial sector, enabling new financial products to emerge.”

She added that the financial services currently provided in the country should be expanded and modernised in order to attract investment.

“There is scope and indeed the need for increased competition in the financial sector,” she continued.

“The banking sector needs to be modernised. It is time that banks adopt 21st century tool kits in providing services to their customers. The banking sector has to become more competitive, and banking services need to be expanded. Non-bank financial services and capital market activities also need to be further developed in the country.”

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Civil Court upholds Malaysian arbitration ruling

The Maldives Civil Court has ordered the implementation of a ruling by an international arbitration tribunal.

Malaysia’s Kuala Lumpur Regional Center for Arbitration  ruled that a Maldivian company Gasveli Island Private Ltd must pay US$445,216.66 to International Construction Consortium.

The ruiling marks the first time a Maldivian court has ordered the implementation of an international arbitration verdict.

The Civil Court has ruled the Maldivian company must pay the amount to the court within three months. The ruling was issued in the absence of Gasveli.

Chief Judge Ali Rasheed Hussain said that, while the law is unclear on which court a complainant must ask for implementation of the arbitral award, regulations compiled by the High Court say the Civil Court can take up such cases.

The regulation states that the Civil Court can use procedures in place for for implementing arbitration awards.

The Maldivian government is currently awaiting the outcome of an arbitration process in Singapore over its abrupt decision to terminate an airport development contract with Indian infrastructure giant GMR.

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