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AG’s office refiles case to block West Harbour development deal

The Attorney General’s office has today re-filed a case seeking to block the private development of Male’s West Harbour area. The original case was dismissed by the Civil Court the day before, allegedly after the prosecutor general arrived ten minutes late for a hearing.

Local media report that the Attorney General’s office was seeking a fast-tracked procedure to prevent work beginning on the US$30 million project (MVR462million). Male’ City Council announced its intentions to turn the development over to private company West Gate Assets earlier this month, with work scheduled to begin on September 1.

The project is designed to include coffee shops, cafes, petrol sheds, shopping malls, and spacious parking zones intended to resolve severe congestion in Male’ City.

Despite the council’s insistence that the deal had been approved by both the Anti-Corruption Commission (ACC) and the Housing Ministry, Housing Minister Mohamed Muizz told Minivan News last week that no such approval had been given by his department.

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US PISCES border system to come into use at midnight

The US granted Personal Identification Secure Comparison and Evaluation System – or PISCES – system will go live in the Maldives tonight, local media has reported.

The system, described as “a critical tool in the war on terrorism”, by its manufacturer Booz Allen will be implemented just weeks after the cancellation of the government’s deal with Malaysian IT firm Nexbis to supply a customised border control system.

While Defence Minister Mohamed Nazim was today reported as saying that PISCES is a direct replacement for Nexbis’s, the Malaysian company has argued strongly that it is not, labelling PISCES nothing more than a “terrorist tracking system”.

After years of wrangling over the deal, Nexbis was given 14 days to vacate earlier this month. Defence Minister Mohamed Nazim cited “major losses” to the state as the reason for the contract termination – an argument Nexbis has strongly refuted.

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Maldives NGO Federation criticises political parties attacks on Elections Commission

Additional reporting by Ahmed Nazeer

The Maldives NGO Federation has expressed concern that political parties are attempting to discredit the Elections Commission (EC) by inciting hatred toward the institution in an effort to obstruct the holding of a free and fair presidential election.

The Maldives NGO Federation, representing over 60 local civil society organisations, issued a press release Sunday (August 18) that declared their confidence in the EC and noted the essential role the commission has played in holding free and fair elections over the past five years.

The organisation also highlighted concerns that some political parties have been trying to discredit the EC “so close” to the scheduled September 7 election.

“We are concerned about attacks by political parties on the Elections Commission,” NGO Federation President Ahmed Nizam told Minivan News today (August 19).

The organisation has called on all the political parties and government institutions not to do anything that will that will obstruct the EC from holding free and fair elections.

Furthermore, the NGO Federation appealed to everyone to cooperate with the EC to ensure the upcoming presidential election is free and fair.

Political party complaints, threats of legal action

The NGO Federation’s appeal follows a series of complaints about the EC issued by the Progressive Party of Maldives (PPM) and the Jumhoree Party (JP).

The PPM has claimed their concerns with the EC have gone “unaddressed” and so are now seeking a legal resolution, PPM vice presidential candidate and former Home Minister Dr Mohamed Jameel Ahmed told local media in Addu City yesterday (August 18).

While Jameel did not explain what the PPM’s specific course of action against the EC will be, he noted that the party was questioning the commission’s independence for three reasons.

“The first and the biggest problem is the questions surrounding the validity of the electoral register. In that regard, problems had been noted similar to what happened before. The reason is whether the IT system established in that place is secure enough to ensure that no one can alter the list. But they couldn’t give us that assurance,” Jameel said.

“On top of that, we hear that outsiders are active inside the elections commission. Such things create more apprehension. But so far it remains unclear what their purpose is,” he added.

Last week, PPM and JP filed a complaint against the EC’s Legal Director Haneefa Khalid, for alleged political tweeting ahead of the upcoming presidential election.

Mahloof singled out one he claimed had offended PPM President and former 30-year autocratic ruler, Maumoon Abdul Gayoom.

The EC is currently investigating the matter and said it will take administrative action should it find the need to do so.

PPM Spokesperson MP Ahmed Mahloof told local media the party’s main concern was that Khalid was the wife of Dr Ahmed Ashraf, who contested the by-election of parliament’s Ungoofaaru constituency on a Maldivian Democratic Party (MDP) ticket following the murder of sitting MP Dr Afrashim Ali. The election was won by the PPM by a narrow margin of 81 votes.

On the same day, the Attorney General’s office began probing a disciplinary case concerning Khalid following a complaint filed against her by the Maldives Police Service (MPS). The MPS filed the complaint after Khalid “addressed the police disrespectfully” while she was inside a Male’ jail meeting a client whom she had been representing in court, according to local media.

In early August, PPM and JP lodged a complaint with the EC expressing their fears foreign nationals will have access to the Maldives’ voter database for upcoming polling, as it seeks assistance from Indian IT professionals to set up software to help oversee future council elections.

In response, the EC met with a “combined team” representing the JP and PPM to dismiss any fears, adding that only local EC staff had access to sensitive information and the commission’s security systems.

“We explained to them that the Indian team would not be working on systems being used for the upcoming presidential election. They will instead be providing assistance to help develop a program for future elections,” said EC President Fuwad Thowfeek.

The PPM and JP had challenged the possibility of holding free and fair elections scheduled for September 7 this year if foreigners could access the electoral database and other systems, local media reported previously.

Additionally, in late July the PPM requested the EC not reject voter registration forms missing details such as the name of a voter’s parents or a phone number, that could not be verified during random checks.

The EC rejected the request to make voter registration more “lenient” and noted at the time that no “official complaints” had been filed with the commission over its ability to capably oversee the upcoming presidential election, despite the PPM alleging in local media that it was incapable of ensuring a fair vote.

PPM Council member and Youth Minister Mohamed Hussain Shareef was quoted in local media the same week calling for “major reforms” to the commission, which he alleged lacked the capacity to oversee fair voting.

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State Trading Organisation stops rationing of oil supplies

The State Trading Organisation (STO) has ceased to ration oil supplies, following the arrival of a delayed shipment from Dubai last week, reports local media.

After the oil shipment arrived Thursday (August 15), STO resumed selling oil without any restrictions, STO Managing Director Shahid Ali told local media yesterday (August 18).

“The shipment was delayed because the vessel could not approach the loading bars. Since they are charter boats, even a delay of one day would cause problems,” said Ali.

He explained that delays in oil shipment arrivals requiring oil supplies to be controlled is not a new problem and STO has had to ration oil on several past occasions.

“In spite of the control, we supplied oil to STELCO and other important customers without any restrictions, but supply to other groups was somewhat controlled,” Ali noted.

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Police officers testify that Afrasheem murder suspect sent text asking for money

Two police officers have testified in court stating that they stopped and searched Hussein Humam’s person on the night Dr Afrasheem Ali was murdered.

One officer stated that he had seen a text message sent from Humam’s mobile phone talking about failing to receive promised money.

The police officer did not identify the recipient of the text message.

According to local media present in the Criminal Court for the hearing, the police officer said he was called and informed that a person had been stabbed in Male’ and that he joined officers patrolling the city before coming across Humam near the State Bank of India.

Both police officers told the court that they had arrested Humam many times previously, but said on that night he was behaving unusually, by failing to resist arrest, behaving scared, and sweating and shaking.

The police officers told the court that Humam was under the influence of an illegal substance and so arrested him and brought him to Atholhu Vehi police custodial.

Before concluding the hearing the judge announced that the court had decided not to accept any evidence or testimony from the respondent, stating that Humam had already submitted evidence for his defence.

Humam initially confessed to the murder, but later withdrew his statement claiming it had been extracted under police duress.

Dr Afrasheem Ali was stabbed to death on the night of October 1, on the staircase of his home.

State prosecutors have accused Hussain Humam, along with Ali Shan – who is facing the same charges – and a minor identified as ‘Nangi’, of going to the residence of Dr Afrasheem and murdering him with a machete and a bayonet knife.

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Leaked Grant Thorton report reveals beneficiaries of BML’s risky pre-2008 lending

Additional reporting by JJ Robinson

A leaked draft of a report into the Bank of Maldives’ (BML) lending practices prior to 2008 has identified those behind potentially destabilising breaches of both BML and Maldives Monetary Authority (MMA) guidelines.

The asset recovery investigation by forensic accounting company Grant Thornton, drawing on the 2008 Attorney General’s report on BML, concludes that it would have been “impossible for the [BML] board to not have been influenced” in the granting of significant exposures in the form of credit to a select coterie of Gayoom-era affiliates.

The document reveals well-connected individuals bypassing BML rules regarding the handling of non-performing assets, with a number of large companies belonging to politically-active businessmen continuing to receive credit despite failing to satisfactorily meet previous repayment obligations.

“The large exposures that BML held, were in the main, due to members of the board or their relatives,” the report found.

“Due to the fact that the largest exposures of the bank were from Board members and/or their families, it would be unrealistic for the Board to provide any clear independent review of the banking facilities provided, and would in [our] view form conflict of interest issues for those Board Members involved,” it added.

The report names a number of individuals and business groups who benefitted from the state bank’s loan and overdraft facilities towards the end of Maumoon Abdul Gayoom’s 30 year tenure as head of state.

The government was handed a US$10million (MVR 154.2 million) invoice from Grant Thornton last year in what former Foreign Minister Dr Ahmed Shaheed told Minivan News was a penalty fee for stopping the investigation initiated under Gayoom’s successor Mohamed Nasheed.

Prior to the alleged request from the current government to halt the investigation, Grant Thornton had uncovered evidence of an alleged US$800 million oil trade involving former head of the State Trading Organisation (STO) and current presidential hopeful Abdulla Yameen. Shaheed alleged that the accounting firm was contracted to receive a percentage of any assets recovered as a result of its work.

The private parties named in Grant Thorton’s BML assessment include the Sun Group, Lily Group, Sultans of the Seas, VA Group, Afeef Group, Villa Group, Thasmeen Ali, VB Group, and Rainbow.

“Many of the above parties benefited from loans that were used to assist in purchasing leases for resorts, related tourism businesses etc, of which would not have been achieved without the connections held by certain individuals,” the report said.

The report also makes particular mention of the role of Ibrahim Gasim, both Finance Minister and non-executive BML board member at the time of the majority of cases documented within the Grant Thornton report.

Gasim, who is also standing as the Jumhoree Party (JP) presidential candidate in next month’s election, would have been responsible for the appointment of the majority of the BML board at this time.

Grant Thornton’s report revealed that Gasim’s Villa Group had been loaned MVR481,299,571 (US$37,601,520) as of October 31st 2008, representing 32.4 percent of the bank’s entire capital.

This represents one of a number of examples of such exposure featured in the report, despite the Bank’s acquiescence in 2006 to an MMA request to reduce any credit guaranteed to individual or related group borrowers to 30 percent of overall capital.

After repeated lobbying, the MMA increased this amount to 40 percent. Grant Thornton suggested that this extension request was due to the fact that a number of the groups mentioned in its report were already exceeding the original lower limit.

In rejecting one of BML’s requests for an increased credit exposure limit, the MMA wrote that “such concentration of credit is far in excess of the legal lending limits of the bank and it could seriously threaten the bank’s position, and the stability of the whole financial sector,” the leaked document stated.

Even with this increase, Sun Group is reported to have exceeded this limit after January 2008, with loans and overdraft facilities reaching  MVR 607,345,442 (US$46,879,400) as of 31 October 2008.

“This amounted to 40.8 percent of the Bank’s capital as at 31 October 2008,” the report observed.

Loans and overdraft facilities provided to Afeef Group totalled MVR 245,123,414 (US$19,150,266) as of October 31, 2008 – approximately 16.5 percent of BML’s total capital at the time.

Sun Group Chairman and majority shareholder Ahmed Shiyam’s Maldivian Development Alliance (MDA) meanwhile this week announced its decision to form a coalition the Progressive Party of Maldives (PPM), headed by former President Gayoom.

Alterations to BML’s internal loan approval mechanisms for board members in May 2007 resulted in the bypassing of the bank’s Credit Committee.

“This effectively meant that those Board Members that had applied for credit facilities were approving their own loans,” stated the draft report.

BML board members complicit in self-approving their own credit lines include Mohamed Ahmed Didi (Sultans Group shareholder), Ahmed Hamza (Director of the VA Group), and Gasim (Chairman of the Villa Group).

Director Mohamed Adil also features prominently, being cited in one particular example of a board meeting in which he approved the re-financing of the Sultan Group’s debt at the same time as being the group’s major director/shareholder.

BML’s recovery

In the intervening years, BML wrote off multiple toxic non-performing assets and returned to profitability, largely by outright ceasing to pay dividends to shareholders for almost five years.

The Bank’s board approved a MVR 50 million (US$3.23 million) interim dividend to shareholders in July 2013, the first since 2008.

“This marks the end of a painful and challenging journey that began in 2009 when the bank reported record level non-performing loans. However, in recent years Bank of Maldives has reported record level earnings and operating profit and the company returned to profit in 2012,” read a statement from BML.

BML’s former CEO Peter Horton, a UK banker appointed in February 2011 with extensive experience tackling distressed portfolios and problem lending across Africa as part of Barclay’s corporate turnaround team, resigned in August 2013 to head up Bermuda Commercial Bank.

“The profitability and dividend payment will be sustainable going forward,” said Horton in the bank’s July statement. “This is an interim dividend and at MVR 9.29 [a share] for the half year places us in a strong position to pay the highest full year dividend in the Bank’s recent history at year end”.

Download the leaked GT report

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Vice President should not be a “spare part”: Waheed

President Dr Mohamed Waheed last night told state broadcaster Television Maldives (TVM) that a vice-president should not be treated like a “spare part”.

Speaking in the second of a series of TVM interviews with next month’s presidential candidates, the incumbent president stated his belief that the vice president ought to have more responsibility.

“I believe that changes are needed. A vice president should not be a spare part that replaces the president if he resigns or passes away. The people choose a vice president after careful consideration. They vote for two people, the president and the vice president, on the same ticket,” President Waheed said.

Waheed assumed office on February 7, 2012, after being elevated from his position as vice-president to Mohamed Nasheed. President Nasheed resigned amidst chaotic scenes as police mutinied following weeks of anti-government agitation.

Waheed told his interviewer, Leeza Laurella, that Nasheed had reneged on a prior agreement to hand the vice-president powers over foreign policy – giving preference to fellow Maldivian Democratic Party (MDP) members.

Soon after Waheed assumed the presidency, his frustration with his previous role was described by his then-special advisor Dr Hassan Saeed in a leaked audio recording.

“There was no major role for President Waheed in the previous government. Very many days [spent] bored in the office… When an educated man like him whiles the day away being like this, going on the Internet… really it is sad. This is how Waheed was,” said Dr Saeed.

Prior to his political career, Dr Waheed was notable for being the first Maldivian to gain a doctorate as well as being the first person to appear on Maldivian Television, anchoring TVM’s first broadcast in 1978.

After a short period as a member of the People’s Majlis, Waheed spent a number of years working for UNICEF, eventually becoming Deputy Regional Director for South Asia.

Role in February 7

Responding to the repeated accusations that he did not fulfil his responsibilities in supporting President Nasheed during the February 2012 crisis, Waheed told his interviewer that Nasheed had not asked for his counsel.

“President Nasheed did not call me. If he wanted to talk to me, he could have asked the SPG (Special Protection Group), the same group that protects us both. He could have handed me the phone through them, could he not?”

Maintaining that the events of February 7 marked the final stages of a conspiracy in which Waheed was complicit, the MDP have repeatedly accused Waheed of failing to fulfill his duties as second in command.

Mentioning a late night meeting with anti-Nasheed figures just days before the transfer of power, Waheed told TVM that Nasheed had been informed of the meeting and all normal procedures followed.

MDP MP Mariya Didi manwhile published a report in June 2012 arguing that Waheed’s failure to fully discuss this meeting with the rest of the cabinet represented a violation of his responsibilities as the vice-president.

Waheed had been open on a number of previous occasions regarding his marginalisation in the decision making process, in 2010 describing the Nasheed administration as a “one man show”.

Nasheed will stand against Waheed in September’s poll, having chosen Dr Musthafa Luthfy as his running mate. When making the announcement, the MDP stipulated that Luthfy would call an election immediately should Nasheed be “killed or incapacitated” rather than assuming the presidency himself.

Siyaasath

Waheed yesterday explained that he had chosen his current running-mate, Dhivehi Rayithunge Party (DRP) leader Thasmeen Ali as he is “well-mannered and keeps his word”.

During the interview he also denied that he had described the Adhaalath Party as containing extremist elements – comments which prompted the religious party to leave Waheed’s ‘forward with the nation’ coalition in June, later allying with the Jumhoree Party (JP).

Yesterday’s interview, the second in a series featuring all the presidential hopefuls, followed Friday’s combative encounter with Jumhoree Coalition candidate Ibrahim Gasim.

Following Gasim’s discussion with Laurella, JP deputy leader Ilham Ahmed told local media that the JP would be considering a boycott of the station. Ilham argued that, contrary to the shows title – with ‘siyaasath’ meaning ‘policy’ – the presenter asked Gasim a series of personal questions in an attempt to damage his reputation.

“This was done with the intention of demeaning a person under a systematic plan. We don’t believe that this could have been done under press freedom,” he explained to reporters from Haveeru. “We have seen TVM going after Gasim.”

Ilham also insisted that the show had made repeated attempts to make Gasim appear “odd”.

The Maldives Broadcasting Corporation (MBC) defended its station, telling local media that Gasim’s TVM interview was conducted within its editorial policy.

It was announced in June that TVM would be scheduling a presidential debate featuring all four candidates for September 1.

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PPM and MDA leadership to host coalition rally in Male’ tonight

The government-aligned Progressive Party of Maldives (PPM) has scheduled a “mass rally” for the artificial beach area of Male’ this evening, according to media reports.

PPM representative and Minister of State for Foreign Affairs Dhunya Maumoon was quoted by Sun Online as stating that the event would be attended by senior party members, as well as representatives from coalition partner, the Maldives Development Alliance (MDA).

The PPM announced earlier this month that it would be forming an alliance with the MDA, headed by MP and resort owner Ahmed ‘Sun Travel’ Shiyam, ahead of the presidential election scheduled for September 7 this year.

MP Shiyam is expected to be in attendance during tonight’s rally, along with PPM presidential candidate Abdulla Yameen and his running mate former Home Minister Dr Mohamed Jameel Ahmed.

Party founder and former President Maumoon Abdul Gayoom – Yameen’s half brother – is also expected to attend, according to local media.

PPM MP and Spokesperson Ahmed Nihan was not responding to calls at time of press.

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Fuvahmulah airport to install lights on runway

A contract to provide lighting for Fuvahmulah airport has been awarded to a Sri Lankan company, local media reports.

The MVR4.5million project will make it possible to land planes in the southern atoll at all hours, with the airport currently the only one in the country where this is not possible.

Sun Online reports that President Dr Mohamed Waheed will travel to Fuvamulah tomorrow to inaugurate the project, which is expected to be complete in three months.

The airport, owned by the State Trading Organisation, was opened in 2011, increasing access to one of the most isolated areas of the country.

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