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Decentralisation Act not unconstitutional, Supreme Court rules

The Supreme Court ruled on Thursday that provisions of the Decentralisation Act were not in conflict with the constitution.

In March 2011, former State Minister for Home Affairs Mohamed ‘Monaza’ Naeem filed a case at the apex court arguing that some provisions of the Act contradicted the unitary nature of the Maldivian state as laid out in the constitution, and requested the conflicting articles to be struck down.

Naeem had argued that the Local Government Authority (LGA) created by the Decentralisation Act was not answerable to any government minister while article 140 of the constitution states that, “A member of the cabinet shall be given responsibility for each authority or institute established by the government or the People’s Majlis, except for independent institutions specified in this constitution or established pursuant law. Such member of the cabinet must take responsibility for the operation of such authority or institution and must be accountable for it.”

The Supreme Court bench that heard the case ruled unanimously that the LGA was not unconstitutional as it was not necessary for a minister to be the administrative head of such an authority or office.

The Justices further noted that article 140 did not envision a cabinet minister to be responsible for elected councils.

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Number of Zakat payers decline

The number of people who paid Zakat (alms for the poor) has declined from 82,570 in 2011 to 80,408 this year, newspaper Haveeru reports.

According to the Islamic Ministry’s Permanent Secretary Mohamed Didi, proceeds from Zakat payments amounted to MVR2.4 million (US$155,642) this year. Didi said the decline was “surprising” as the numbers of people who pray at mosques were steadily rising.

Meanwhile, the number of registered poor in the capital Male’ increased from 10,000 in 2011 to 11,000 this year.

Zakat is one of the five mandatory pillars of Islam. A sum of MVR220 per head was issued by the ministry this year.

Haveeru noted that a considerable number of people paying Zakat through means other than the government.

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Drug Court begins hearing cases

The Drug Court formed under the new Drugs Act began its first trial last week.

While the first preliminary hearings by the court were held on June 17, local media reported that the first trial commenced on August 15.

According to the Drug Court, 312 cases have already been filed and the court has ordered the National Drug Agency to draft indicative assessment reports for47 individuals to determine their level of drug addiction.

The Drug Court was established under the Drugs Act passed by parliament in 2011, which was intended to move away from a punitive approach against “small scale drug offences” to rehabilitating drug addicts.

In May, State Minister for Health and Family Lubna Zahir Hussein told Minivan News that the new law and court represented long-needed changes to drug policy.

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Addu City MDP MP, councillor face terrorism charges

The Prosecutor General’s Office on Thursday pressed terrorism charges against over 40 individuals accused of setting the Seenu Gan police station on fire on February 8, including Maldivian Democratic Party (MDP) MP Mohamed Rasheed and Addu City Councillor Ahmed Mirzadh.

Terrorism charges carry a jail term of 10 to 15 years.

On February 8, a brutal police crackdown on an MDP march across Male’ sparked riots across the country. The crackdown came after thousands of MDP supporters took to the streets, rallied by former President Mohamed Nasheed who had declared that his resignation the previous day was “under duress.”

In the southernmost atoll of Addu, police stations, police vehicles and a police training academy as well as court buildings were set ablaze.

MDP MP for mid-Hithadhoo constituency, Mohamed Rasheed ‘Matrix Mode’ was arrested in the wake of the violence in Addu City on February 8.

The Prosecutor General’s Office last week pressed charges against 21 people accused of damaging state property.

Trials have already begun for 13 people accused of setting the court house in Hulhudhoo ward of Addu City on fire.

The formerly ruling MDP has meanwhile condemned the “false charges” pressed against “elected representatives of the people of Addu City” and a number of citizens as “politically motivated”.

In a statement on Thursday, the party said it believes the charges represented “a deliberate attempt by the regime to destabilise the country ahead of the Commission of National Inquiry’s report into February’s transfer of power, which is due to be published on August 30.”

“Aside from politically motivated legal action, senior members of Dr Waheed’s regime, including Home Minister Mohamed Jameel, have publicly stated that the regime will arrest President Nasheed and ensure he spends the rest of his life in jail. These statements have been made despite the fact that a trial has not taken place, and while the Minister himself has stated that the ‘judiciary seems to be operating in wanton… and needs to increase public confidence,’” the statement read.

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Former state ministers deny allegations in Home Ministry’s audit report

Two former state ministers for home affairs have denied allegations in the ministry’s audit report for 2010 that they were paid salaries for a year without attending the office, with one accusing the Auditor General of political bias.

The audit report released last week stated that the two political appointees were paid salaries and benefits, amounting to over MVR800,000 (US$51,880) from January to December 2010, while one was working at the Presidential Commission and the other at the Maldives Customs Service.

The two political appointees referred to in the report were Sheikh Hussein Rasheed Ahmed, a member of the Presidential Commission, and Mohamed Aswan, former principal collector of customs.

The report found that Aswan was paid January’s salary from both institutions.

“Although the two posts were created for the Ministry of Home Affairs, as the ministry did not receive any service from the two appointees, this office believes that the President’s Office’s creation of the two posts cannot be considered for the need of the ministry,” the report stated.

The audit report contended that the two appointees were paid salaries out of the Home Ministry’s budget in violation of budgetary rules, which had compromised the validity of the ministry’s financial statement.

Mohamed Aswan, presently commissioner general of customs, however issued a press statement on Thursday denying that he was paid salaries from both the Maldives Customs Service and Home Ministry in 2010.

Aswan explained that he was paid January’s salary from both offices due to “an administrative error” caused due to a delay in exchanging official documentation confirming the transfer.

He added that errors in processing salaries and benefits of government employees were commonplace and, once identified, were usually remedied with the necessary changes the following month.

Aswan also noted that the administrative task of paying salaries and benefits for political appointees was a responsibility of the permanent secretary, the highest-ranking civil servant in government offices.

In 2010, Aswan’s press release stated, he was simultaneously working in three government posts but received salaries and benefits only from the Home Ministry, which he did not believe was “against the law.”

In addition to acting head of customs at the time, Aswan was also a member of the Presidential Commission set up by former President Mohamed Nasheed to investigate allegations of embezzlement and misappropriation of state funds by the regime of former President Maumoon Abdul Gayoom.

Aswan was appointed state minister for home affairs in January 2010 to reform the police service following cabinet deliberations.

As a former National Security Service lieutenant, Aswan was the deputy in charge of Maafushi jail when 19-year old inmate Evan Naseem was beaten to death and several inmates shot to death in a subsequent prison riot in September 2003.

In July 2003, Aswan had filed a detailed report on systematic abuse and institutionalised torture in Maafushi jail, warning of “disastrous consequences” if corrective measures were not taken immediately.

“Political bias”

Sheikh-Hussain-Rasheed-AhmedWriting in his personal website, Sheikh Hussein Rasheed Ahmed, former co-chair of the Presidential Commission, meanwhile slammed Auditor General Niyaz Ibrahim for “attempting to discredit the government toppled in a coup d’etat.”

The former president of the Adhaalath Party explained that he was appointed state minister to oversee and expedite investigations into rampant corruption alleged in over 30 audit reports by former Auditor General Ibrahim Naeem as “the relevant authorities were not adequately looking into the cases.”

Rasheed insisted that both he and Aswan attended the home ministry to carry out the tasks they were entrusted with by the President.

“The Presidential Commission was tied to the President’s Office and the Home Ministry,” he wrote. “When the commission completed the investigation stages, we were submitting reports to the President and relevant departments under the Home Ministry. In addition to the President’s Office, we also provided information to the Anti-Corruption Commission.”

Arguing that the current Auditor General made no effort to ascertain the work done by the pair at the Home Ministry, Rasheed accused Niyaz of “working in your own defence” and “trying to please the current government which is in place through a coup d’etat.”

Rasheed said that he sent his monthly attendance records to the President’s Office and kept the Home Minister informed of his work. Moreover, the permanent secretary was notified ahead of official leaves, Rasheed said, adding that “the Auditor General made no effort to obtain any of this information.”

“Are you unwilling to release an audit report on the double pension President Maumoon is taking illegally out of fear over a no-confidence motion [in parliament]?” Rasheed asked.

Rasheed further claimed that Niyaz attempted to intervene in the Presidential Commission’s investigation of the alleged US$800 million illegal oil trade carried out under the chairmanship of MP Abdulla Yameen at the State Trading Organisation (STO).

“Did you not try to get the documents [related to the case] first from the Anti-Corruption Commission?” Rasheed wrote. “When the Presidential Commission refused to provide you with the information, you even visited STO Singapore.”

Following these unsuccessful attempts, Rasheed alleged that Auditor General Niyaz tried to obtain the documents through an audit of the President’s Office and the Presidential Commission, suggesting that the section in the Home Ministry’s audit report concerning his salary was “retaliation” by the Auditor General.

The audit report of the Ministry of Foreign Affairs for 2010 made public in July was similarly slammed by former Foreign Minister Dr Ahmed Shaheed as “politically motivated and phrased to mislead the public.”

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

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

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

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

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

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

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

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

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

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

Legal wrangling

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Read more

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Utility companies owe us MVR 350 million: STO

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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