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Maldives Trade Union set up to advocate for SME rights

A trade union to protect the rights of small and medium businesses has been established in the Maldives.

The Maldives Trade Union (MTU) held a meeting on May 5 to select members to its governing board. Founder Fuad Zahir was automatically appointed as MTU’s president. An estimated 180 businesses have joined the union, local media reports.

Zahir, who heads Treasure Biz International, called the Maldives’ nascent tax system “failed” and said there was a culture of increasing taxes in the country.

Zahir and the Maldives Inland Revenue Authority (MIRA) had previously clashed over his company’s refusal to register for the Goods and Services Tax (GST).

On receiving an audit notice in 2012, Zahir told the MIRA over the phone that it could not conduct an audit of the company and claimed the law authorizing MIRA to conduct audits were against the constitution, a 2013 statement from MIRA said.

MIRA then sent in auditors to seize documents from Treasure Biz in December, 2012. Zahir filed a case to retrieve the documents at the Civil Court, but MIRA returned the documents in January 2013 before a ruling was issued.

An official from the authority told Minivan News today said they had asked the Prosecutor General to file tax evasion charges against Treasure Biz.

The two Vice Presidents of MTU are Shamha Trader’s owner Abdul Rasheed, and Venus pvt ltd’s owner Ali Hussein.

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Police arrest an ‘illegal’ mango vendor

The Maldives Police Services arrested an expatriate mango vendor at the Malé local market for “illegal” mango vending, local media have reported.

The man had also set up shop in the parking zone. The police confiscated the vendor’s mango boxes and arrested a man who attempted to stop the expatriate vendor’s arrest.

Expatriate workers brought in on work visas are not allowed to work as vendors, Sun Online said.

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Three arrested in connection with drug cases

Police have arrested three persons in connection with three different drug related cases.

In a statement issued today the police said a 36 year-old man was arrested from the island of Dhaandhoo Island in Gaafu Alifu Atoll.

Police said the man had thrown away something on seeing police officers on patrol on the street, and when police officers examined the items they found it was a cellophane packed with illegal drugs.

Another 26 year-old man was also arrested from the island on May 6 with five cellophane packets containing illegal drugs.

The third person was arrested in Malé on May 5 with six rubber packets containing illegal drugs. The man had run away from the police when he was stopped on suspicion of possessing illegal drugs.

But police officers managed to arrest him and take him to Maafannu Police Station.

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President approves US$ 25 airport service charge hike

President Abdulla Yameen Abdul Gayoom has ratified a law raising airport service charge from departing foreign passengers to US$ 25.

The law will come into force in July and is part of the current administration’s revenue raising measures.

The government anticipates over MVR 100 million (US$ 6.4 million) in additional revenue from the increased departure tax.

The People’s Majlis has also approved other revenue raising measures proposed by the government, including hiking import duties, reintroducing the bed tax until the end of November, raising the Tourism Goods and Services Tax (T-GST), and introducing GST for telecommunications services from May 1.

A proposal by the administration of former President Mohamed Waheed to raise the service charge to US$30 was narrowly defeated in April 2013.

The 1978 law imposing the airport service charge on departing passengers was first amended under the Maldivian Democratic Party government and raised to US$18.5 for foreigners.

The imposition of a similar Airport Development Charge (ADC) of US$25 by Indian infrastructure group GMR was previously a major point of contention for the Waheed administration, which terminated the concession agreement with the GMR-led consortium to modernise the airport in December 2012.

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Housing Ministry and Police take over Dharubaaruge

The Ministry of Housing has taken over the Dharubaaruge conference center from the Malé City Council and changed locks on the building with police assistance.

The ministry claimed the council is deliberately delaying the handover of the center as per a cabinet decision on March 27.

The Dharubaaruge takeover is the latest in an ongoing dispute between the ministry and opposition dominated council on ownership of land in the capital city.

Deputy Mayor Shifa Mohamed told Minivan News she is shocked by the ministry’s actions and would take up the matter at the Civil Court.

“We are shocked, and we will take this to the court. The council has already agreed to discuss the transfer through proposer procedures. There is a regulation on this, so why should they work against laws and regulations?” she said.

The Dharubaaruge conference center—originally built for the 5th SAARC summit in 1990—is rented out for events, press conferences and private functions. Former President Mohamed Nasheed handed the center over to the city council with the establishment of a local government system in 2011.

Regulations on transfer of land to local councils allow the cabinet to take back land to implement the government’s economic, social and national security related policies.

Minivan News observed police cordoning off the areas sealing the entrance to Dharubaaruge with yellow ‘crime scene’ police tape at around 14:45 in the afternoon as city council members protested outside.

“We asked the police if they had a court warrant to enter [the premises of the building without permission], they said they did not have any such permit and asked us to take up the issue with housing ministry.” Shifa said.

A Maldives Police Services official said the police involvement was only limited to protecting state property “as there was a dispute between the ministry and the council over its ownership.”

Police had been at the site on Housing Minister Mohamed Muiz’s orders, the official said.

Speaking to local media, Muiz said police assistance had been sought on the Attorney General’s advice.

Police assistance had been necessary because the council had delayed handover of Dharubaaruge despite agreeing to the move, Muiz claimed adding that ministry officials and the police had completed all due procedures in the takeover.

“Starting from today, Dharubaaruge will be maintained by the Housing Ministry. The ministry will carry out all necessary repair and development. A plan to develop Dharubaaruge will be formulated very soon,” Muiz said.

Malé City Council Member Shamau Shareef told Minivan News the council was willing to hand the center over, but only within procedures outlined in the regulations.

“We are in the process of handing over right now, so many things have to be considered in changing [the jurisdiction of] a land such as taking an inventory and we even have a contract with a private party for the maintenance [of Dharubaaruge]. The place is still under the council, and those people who came to change the locks did not have any document or warrant or even proper identification,” he said.

The Housing Ministry had told the council it was taking over the center due to poor maintenance, Shamau claimed.

“But the council never received the requested budget to maintain the place, this is only convention center in Malé,” he said.

The Malé City Council and Housing Ministry had clashed over Dharubaaruge ownership during former President Dr Mohamed Waheed Hassan’s administration.

Waheed, who came to power in a controversial transfer of power February 2012, decided to take over a number of plots under the Malé City Council’s jurisdiction.

But the Maldivian Democratic Party (MDP) dominated council refused to handover the center and dispute escalated rapidly with the council locking up the building and the ministry attempting to change locks in April 17, 2012.

The Housing Ministry had transferred all staff at the center from the council jurisdiction to the ministry the night before.

The council passed a resolution to fight back and hold on to Dharubaaruge. The ministry took the case to Civil Court, but dropped the claim in March 2013.

The following May, the council contracted Dharubaaruge maintenance of to a private company for ten years. At the time the council said fifty percent of revenues generated from running the center would be given to the state under the agreement.

President Abdulla Yameen’s cabinet decided to take back lands under the council on March 27. The Ministry of Housing requested the handover of seven lands to be completed within seven days, but the new council agreed to return all requested lands as per rules and regulations.

The requested lands include the artificial beach, carnival area, south harbour area, lands near the T-Jetty, Usfasgandu area on the southeast, and Dharubaaruge multipurpose hall.

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Government hampered by “restrictive” public finance law, says President Yameen

Amendments brought to the Public Finance Act by the opposition-controlled parliament during the three-year tenure of former President Mohamed Nasheed are posing challenges and difficulties to successive administrations, President Abdulla Yameen has said.

The amendments (Dhivehi) voted through in June 2010 stipulated that the executive must seek parliamentary approval before either obtaining foreign loans or leasing state property. Nasheed at the time declared that the law would make it “impossible for the government to function.”

Addressing supporters in the island of Naifaru in Lhaviyani atoll Sunday night (May 4),Yameen claimed that laws imposing “various restrictions” on the executive were passed by the People’s Majlis due to the “irresponsibility” of the former head of government.

But former President Dr Mohamed Waheed had also faced “difficulties” in governing after succeeding Nasheed in February 2012, Yameen said adding: “This is the problem we are facing as well.”

The executive was still forced to seek parliamentary approval “even for a MVR1,000 (US$65) loan,” he said.

“Scorched earth” tactics

The passage of the amendments in 2010 prompted the en masse resignation of President Nasheed’s cabinet on June 29 in protest of the opposition’s alleged obstruction and “scorched earth” policy.

While former Special Majlis MP Ibrahim Ismail ‘Ibra’ characterised the amendments as the “grand finale of decimating the executive” by wresting control from the executive, the Nasheed administration filed a case at the Supreme Court contesting the constitutionality of some provisions.

Yameen, who was leader of the minority opposition People’s Alliance at the time, said Nasheed’s “selling off of state assets and giving up uninhabited islands” had prompted the opposition’s actions.

“When many such actions that were harmful to the public occurred, a group of people advocating as the people’s representatives – myself included – determined things that cannot be done without a say of the parliament and passed a law called the Public Finance Act to hold the government accountable,” he said.

Following the controversial transfer of power in February 2012, the new administration – made up of former opposition parties – sought to reverse the restrictions concerning the sale and lease of state properties.

In December 2013, the Auditor General’s Office revealed that President Waheed’s administration violated finance laws in securing a domestic loan worth MVR300 million (US$ 19.45 million) from the Bank of Maldives (BML) for budget support.

Yameen also noted that he inherited an MVR30 billion (US$2 billion) national debt when he assumed office in November.

“That means to reach the ground I have to travel 30,000 million feet,” he said.

Coalition discontent

Contrary to Nasheed and Waheed, Yameen said he did not anticipate difficulties due to non-cooperation from the legislature as the Progressive Coalition – comprising of the ruling Progressive Party of Maldives (PPM) and coalition partners Jumhooree Party (JP) and Maldives Development Alliance (MDA) – has secured a comfortable majority in the incoming 18th People’s Majlis.

But Yameen has admitted to “some discontent” within the ruling coalition due to a dispute over which party should control the seat of Majlis Speaker.

“The public should work to change this discontent among us to contentment,” he said, adding that constituents should demand the cooperation of opposition MPs as well as JP MPs.

Yameen suggested that the public voted for candidates fielded by the JP and MDA due to the trust the Maldivian people had in PPM leader, former President Maumoon Abdul Gayoom.

Stressing the importance of the public’s backing and support for the government, Yameen urged constituents to “constantly remind” their MPs that they would not have “a second chance” if they vote against government proposals.

As the public voted for a change in both the presidential and parliamentary elections with high hopes for economic progress, Yameen said that the government’s policies and development projects should not be hindered due to problems within the coalition.

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A National Enquiry on Access to Education for Children with Disabilities to commence hearings on Thursday

The National Inquiry on Access to Education for Children with Disabilities (AECD) along with the Human Rights Commission Maldives (HRCM) will be holding a hearing at the National Art Gallery from May 8 – 13th from 09:00 – 23:00.

The purpose of this inquiry is to look in to the practices, policies and laws related to the education for children with disabilities and to determine the States role in providing for people with disabilities in a non-discriminatory manner, with a special focus on the educational needs of children with disabilities.

The meetings will be used to collect statements from parents of children with disabilities. The AECD will then compile these into a report which they will present to the relevant Ministries, and the AECD will monitor how they are followed.

Representatives of the Ministry of Health and the Ministry of Education will also be present, said a member of the AECD.

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State prosecutors halt all criminal trials

State prosecutors at the Prosecutor General’s Office have refused to attend hearings in the absence of a Prosecutor General (PG) and a deputy PG.

The office’s leadership is currently vacant with former PG Ahmed Muizz’s resignation in November 2013 and deputy PG Hussein Shameem’s resignation yesterday. Shameem said he was unable to carry out his duties due to the Criminal Court’s “obstruction” of criminal justice.

Criminal Court Chief Judge Abdulla Mohamed told local media today the court will continue with criminal trials even in the absence of a PG or Deputy PG unless the Supreme Court indicates otherwise. Mohamed had previously halted all criminal proceedings for three weeks in January citing state failure to appoint a PG within the 30 days,

In response, PG office Spokesperson and lawyer Hussain Nashid told Minivan News state prosecutors were now in a “legal void,” and could not attend court.

“We have sent a letter to all courts where cases were scheduled, informing them we refuse to attend court, due to the legal void we are currently facing in the absence of a PG or a Deputy PG to lead us. We have not yet decided what action we will take in the future, but the general consensus is to wait till a relevant authority decides on the matter,” he said.

Shameem’s resignation and the state prosecutors’ refusal to attend court brings the criminal justice system to a halt.

Extraordinary session

Shameem has called on President Abdulla Yameen to submit a new PG nominee and the 17th People’s Majlis – currently in recess and rapidly nearing the end of its five year term – to approve a candidate immediately. The newly elected 18th People’s Majlis is to take the oath of office in late May.

Chair of the Independent Institutions Oversight Committee Ahmed Sameer has called on the current Majlis to find “a permanent solution” rather than wait on a Supreme Court ruling.

“The solution is to hold another meeting before May 28 and select a PG. I call on the relevant bodies to do so,” he told local media.

But Speaker Abdulla Shahid told Minivan News the Majlis cannot approve a new PG unless Yameen submits a new nominee. The president’s first nominee – his nephew Maumoon Hameed – narrowly failed to garner enough votes in March.

“How can the parliament sit to decide on the matter when there aren’t any submitted nominees?” he said.

President Office Spokesperson Ibrahim Muaz Ali was not responding to calls at the time of press.

Shahid also added that he is not authorized to call an extraordinary session unless the President declares a state of emergency or one-third of the MPs request an extraordinary session.

“If a minimum of 26 members sign a motion asking for a special meeting to be held to decide on a matter in the parliament agenda, then it can be done. The government coalition has over 26 parliament members, so they will be able to do this if they so wish,” he said.

Progressive Party of Maldives (PPM) MP Ahmed Nihan said the governing coalition has not held any discussion on the matter as many MPs belonging to the coalition government are out of capital city Malé.

“This matter had not risen back when the last meeting of the parliament was held. At the time, there was no indication that the Deputy PG would resign. So we haven’t really discussed the matter yet. I believe that we might be having an internal meeting relevant to the matter tonight,” he said.

Obstruction of justice

In his resignation statement yesterday, Shameem highlighted the Criminal Court’s failure to prosecute foreigners involved in drug trafficking, delays in issuing rulings on drug related offenses and “unreasonable obstacles” in filing cases at the court.

The Criminal Court and PG office have been at loggerheads since January, with the court agreeing to proceed with criminal cases only after two Supreme Court orders in three weeks. However, the court formulated new procedures to delay and impede the PG office’s ability to submit criminal cases, Shameem has previously said.

“These issues obstruct the proper functioning of the criminal justice system. I am deeply saddened to note the extreme delay on the part of those who have the power to address these issues,” he said yesterday.

MP Sameer contended Shameem cannot resign in the absence of a PG. It is the PG who appoints a deputy and hence the deputy cannot resign if there is no PG, he argued.

“Surely, the President cannot accept this resignation. That is something that can be done by a Prosecutor General. There is no one at the moment to accept the Deputy PG’s resignation. However, if Shameem is not getting the necessary cooperation and is unable to fulfill his duties, then he can stop serving for the time being. I do not see any other possibilities in this matter,” Sameer told Haveeru.

But lawyers have told Minivan News no person can be “forced” to remain in any particular position.

“The Deputy PG can most definitely resign. A person cannot be forced to stay in a position based on the possible outcomes of a resignation. If the PG can resign, then the Deputy PG can resign too. If the law does not define a course of action in the instance that the country is lacking a PG and a Deputy, it is the lawmakers who must come up with a solution. It cannot be reason to force someone to remain in a position against his will,” lawyer Mohamed Shafaz Wajeeh said.

Another lawyer – on condition of anonymity – echoed Wajeeh’s views, adding “in the instance that we did not have a PG, it was the Deputy who was answerable to the oversight committee in parliament. Under that same logic, he can also resign if the PG can. The law must be interpreted in such a way that it does not allow for anyone to be in any position under force.”

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Government calls for Environmental Impact Assessment for new waste yard in Malé

Ministry of Housing and Infrastructure is seeking parties to conduct an Environment Impact Assessment (EIA) to construct a waste yard on the south of Malé, local media have reported.

The Ministry will hold an information session on Thursday (May 8) for interested parties, who will be asked to submit the financial and technical proposals before 11:00 a.m. on 15 May, Housing Ministry said in an announcement on Monday.

In an effort to alleviate the long overdue waste management issue in the capital, the government is seeking to reclaim the lagoon area opposite Maafannu Stadium.

Waste is now collected on a barge docked near the Vilimalé ferry terminal, a temporary arrangement made after the City Council’s failure to empty the waste grounds in a timely manner, local media report.

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