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Mohamed Shihab appointed Minister of Finance and Treasury

Mohamed Shihab, a member of ruling Maldivian Democratic Party (MDP), has been appointed as Minister of Finance and Treasury by President Mohamed Nasheed.

Shihab previously held the post of Political Advisor at the President’s Office. He has also served as Minister of Home Affairs under the current administration.

Presenting Shihab with his ‘Letter of Appointment’, President Nasheed emphasised his confidence in Shihab’s capability in executing the financial and economic reform policies of the country.

Mohamed Shihab assured the President that he would put forth his utmost effort as Finance Minister.

Parliament is expected to vote on the appointment when it returns from recess in March.

Previously a member of the MDP’s former coalition partner Jumhoree party, Shihab replaced Jumhoree Party Leader Gasim Ibrahim as Home Minister 21 days into the Nasheed administration.

In late 2010 the cabinet resigned en masse to protest the “scorched earth politics” of the opposition-majority parliament, which it accused of obstruction and attempting to wrest executive control.

Shihab was among seven ministers whose reappointment was rejected by parliament in November 2010. He has since been serving as Political Advisor to Nasheed.

Opposition Progressive Party of the Maldives (PPM) spokesperson Ahmed Mahlouf told Minivan News today the party would discuss the nomination in its parliamentary group before signalling its position.

“It is important to fill the post,” Mahlouf said, adding that “we don’t expect to have any difficulty discussing Shihab’s nomination.”

“I don’t think Shihab is coming from a background in finance, he has instead been Home Minister and an advisor,” Mahlouf explained. “But he is experienced in politics, he served in Parliament for 17 years, and he has been a speaker. I think we see him as someone we can communicate with easily.”

Mahlouf said Shihab’s communication skills were superior to those of former Finance Minister Ahmed Inaz, who he claimed did not have a good relationship with Parliament.

Calls to opposition Dhivehi Rayyithunge Party (DRP) were not answered at time of press.

Inaz
Picture from Manadhoolive.com.mv

Shihab’s appointment as Finance Minister follows the resignation of Ahmed Inaz, whose credibility was compromised when MDP activists found him in covert conference with Mulaku MP Abdulla Yameen of opposition Progressive Party of Maldives (PPM) in a non-residential poorly-lit area of Male’ at 12am.

Inaz was subsequently taken to MDP headquarters, where activists demanded his resignation. He resigned two days later along with the State Minister of Finance Ahmed Naseer.

Directly following the encounter MDP activists suggested that Yameen was attempting to bribe Inaz, while others believed it was a set-up.

In June 2010, Yameen was arrested on charges of bribery and attempting to topple the government. The Supreme Court however ordered his release.

Prior to the presentation of the Letter of Appointment, Mohamed Shihab took the oath of office of the members of the Cabinet before the Supreme Court Judge Abdulla Areef.

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Two injured in fire incident at sea

An engine caught on fire on a boat en route to Kulhudhufushi from Male’ at about 5pm today, injuring two passengers.

Local media outlets reports that the fire broke out aboard the ‘Raalhu’ vessel near Aarah in Male’ atoll. There were reportedly 175 passengers on board at the time.

According to the Maldives National Defence Force, an 80 year-old man broke his leg while a woman suffered minor burns.

The fire was put out at about 6.21pm and the boat was towed into the Male’ harbour around 6.30pm.

All passengers were evacuated and brought back to Male’ at 6.15pm.

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Man sentenced twice for same offence sues for Rf10 million in damages

A man sentenced by two different courts for the same offence has sued for damages in excess of Rf10 million, reports Haveeru.

Ali Shareef, of Laamu Gan Iruvai, was first sentenced by the island magistrate court for participating in an unlawful assembly in 2004 and fined Rf75.

However in 2007, Shareef was brought before the Criminal Court in Male’ on the same charge and sentenced to four months imprisonment.

Shareef served 61 days of the sentence in jail. The High Court has since overturned the Criminal Court verdict, which prompted Shareef to sue for Rf10.8 million in compensation for unlawful detention.

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Police suspect arson in Thimarafushi fire

Police have revealed that they suspect arson in a fire that broke out in a private residence in the island of Thimarafushi in Thaa atoll last night.

Sun Online reports a police media official as saying there was evidence of an attempted break-in before the incident occurred.

The fire was put out an hour later but had caused extensive damage to furniture and equipment in the house. No one was injured in the incident as the house was newly-built and uninhabited.

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Former Post Limited MD faces corruption charges

The Anti-Corruption Commission (ACC) has requested the Prosecutor General’s Office (PGO) to prosecute former Managing Director of the Maldives Post Limited (MPL), Mahudy Imad, for alleged abuse of authority.

In a press statement today, the ACC said it forwarded the case to the PGO on December 28 after completing an investigation into a complaint accusing Mahudy of using his influence to send an employee overseas for a law degree.

The complainant had alleged that funds were not allocated in the MPL budget for the course and that other employees were not invited to apply for it.

In its inquiry, the ACC found that Mahudy had abuse his authority to secure the course for the employee, who had reportedly been working at MPL as an administrative staff for less than a year before leaving to Malaysia for the course.

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Cabinet decides to sign UN Convention against Transnational Organised Crime

The Cabinet decided yesterday to accede to the United Nation’s ‘Convention against Transnational Organised Crime’ at its weekly meeting on Tuesday.

The decision followed deliberations on a paper presented by the Ministry of Foreign Affairs.

Crimes classified in the convention include terrorism, illegal migration, drug-related crimes, money-laundering, corruption and human trafficking.

“Each State Party shall Endeavour to ensure that any discretionary legal powers under its domestic law, relating to the prosecution of persons for offences covered by this Convention are exercised to maximise the effectiveness of law enforcement measures in respect of those offences and with due regard to the need to deter the commission of such offences,” the convention states.

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Police arrest five suspects in Addu City gang rape

Police have arrested five suspects for allegedly gang-raping a 17 year-old girl in Addu City after midnight last night.

A police spokesperson told Minivan News that the incident occurred at about 1.00am.

“Police received information about the incident at about 1.50am,” he said. ”Police are now investigating the case.”

In addition to two minors aged 17, the other three suspects were aged 19, 20 and 23, police said.

According to local media reports, the victim was abducted and taken to an abandoned house while she was on her way to work.

Newspaper Haveeru reported that a man who drove her to work was involved in the rape and took her to the abandoned house.

In a similar case reported in Addu City during November’s SAARC summit, a police officer was arrested on charges of raping a married woman with two other men.

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MATI sues as government seeks Supreme Court legal counsel on spas, pork and alcohol

The government has asked the Supreme Court for a “consultative opinion” on the legality of spa operations and sale of pork and alcohol in resorts, claiming that legal clarity is needed to properly address the current controversy involving Islam and the tourism industry.

The government last week ordered resorts to shut down their spa operations, and announced it was considering a ban on pork and alcohol. The announcements were made in response to five demands made during a demonstration organised by a coalition of NGOs and opposition parties on December 23 to ‘Defend Islam.’

Maldives Association of Tourism Industry (MATI) meanwhile filed a case at the Civil Court yesterday challenging the Tourism Ministry’s order to shut down massage parlors and health spas in resorts.

Speaking to local media, Attorney General Abdulla Muiz said, “We believe that the people have expressed genuine concerns over the circular issued by the Tourism Ministry ordering resorts to close down their spas.

“Investors will have confidence when they are clear of the judiciary’s position on these issues.”

The Attorney General was unavailable for comment at time of press.

Although the import of alcohol and pork to the Maldives is allowed under a regulation, there is no regulation or set of guidelines specific to spa operations in resorts.

The State, however, claims that Article 15(a2) of the Goods and Services Tax Act clearly stipulates that spas are legally accepted in the Maldives as tourism goods.

Under the article, “goods and services supplied by diving schools, shops, spas, water sports facilities and any other such facilities being operated….at tourist resorts, tourist hotels, tourist guest houses, picnic islands, tourist vessels and yacht marinas authorised by the Tourism Ministry” are tourism goods.

Officials at the Supreme Court and President’s Office were unavailable for comment today.

MATI Secretary General Sim Ibrahim Mohamed was unable to comment on the case in the Civil Court, but said that the government’s decision had incurred “irrevocable damage” to the tourism industry and had become a “legal issue to which we are trying to find legal clarity.”

“We are trying in the lower courts while the government has filed at the Supreme Court to see what this is about. We need to know whether the Maldives can legally provide tourism services within the confines of the constitution,” he explained. “A lot is riding on the court verdicts.”

Sim conceded that the verdicts would not close the discussion. “As to whether the public or the opposition parties will accept the verdict is not for us to say. They will have to weigh their own agendas against what is good for the economy at the moment,” he said.

Former Attorney General and lawyer representing MATI, Aishath Azima Shukoor, said the case addressed two key points: that the government’s decision to close the spas violates the contracts it holds with resort operators, and that the timing is unconstitutional.

Shukoor pointed out that the contracts between the government and resort operators include a clause entitling the operators to the peaceful operation of land leased. She maintained that the government had violated the agreement by closing operations without presenting any substantial reports, investigation or evidence justifying the action.

MATI has also applied for an injunction. If granted, resort spas would be allowed to operate until the court case is concluded.

Shukoor said MATI was hoping for a hearing on Wednesday, January 4, but that nothing has been confirmed.

Complaints that the tourism industry compromises the Maldives’ status as a 100 percent Muslim nation have brewed for some time, but the protests in “defense of Islam” in December 2011 threw officials into the crucible of religion, politics and tourism currently before higher and lower courts.

Article 10 of the Maldivian constitution states that “Islam shall be one of the basis of all the laws of the Maldives” and prohibits the enactment of any laws “contrary to any tenet of Islam”.

Although members of the coalition defending Islam originally called for the closure of “the spas and massage parlors and such places where prostitution is conducted”, as well as a reversal of a policy which permits the sale of alcohol on areas declared “uninhabited islands” – such as in Addu City and Fuvahmulah were the government plans to build city hotels – the government’s all-or-nothing response has driven those members to alter their position.

After telling a gathering of thousands that “The only road we must follow is based on Allah’s callings,” Jumhoree Party Leader and tourism tycoon Gasim Ibrahim sued the government when it closed spa operations in five of his Villa Hotels resorts over allegations of prostitution.

Upon realising that the protests had prompted the UK to issue a travel advisory, and after refusing to answer an inquiry about rumors that Taliban members had entered the country to participate in the protest, religious Adhaalath Party said it “calls on the international community to visit Maldives without any fear, assures that there is no terrorism in the Maldives, and that it will never give space to terrorism in this country.”

The statement further assures the international community that Maldivians are capable of protecting tourists.

Speaking to Minivan News today, Adhaalath Party chief spokesperson Sheik Mohamed Shaheem Ali Saeed did not wish to comment on an ongoing court case but called on the government to take national decisions slowly.

“Maldivian people have no problem with the tourism industry. The Maldives is the best country in the Islamic world with dealing with non-Muslims. Doctors, teachers, all are living here in Maldives and we have nothing against them. The thing is social problems are increasing daily, and people are concerned,” he said.

Minivan News asked whether it was worth risking the tourism industry in the name of Islam.

“Everyone knows the tourism industry is the backbone of our national economy. That’s why no one wants to damage any side of the tourism industry in the Maldives. I am 100 percent sure there is no prostitution in the tourism industry here. It is very professional, it is the most famous tourism industry in the world and is accepted by the international community. Why would we want to attack ourselves?”

Shaheem recommended that the industry foster alcohol-free resorts to develop the nation’s economy and add variety to the tourism sector. “In 2011 there was a project with a company from Dubai trying to do an alcohol-free resort. And I know there are resorts not selling pork,” he observed.

Minivan News asked whether it was acceptable for the government to support resorts which do sell alcohol and pork.

“This is a religious issue, and it is in the Supreme Court, so I can’t talk about this issue,” Shaheem said, adding that he could not say whether the court verdicts would settle the matter.

The Tourism Ministry announced earlier this week that it was considering revising the ban on spa operations in resorts.

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