Category: Politics

Former President Nasheed asks High Court to expedite case concerning Hulhumale’ magistrate court bench

Former President Mohamed Nasheed has asked the High Court to expedite the case filed by his legal team challenging the legitimacy of Hulhumale’ magistrate court’s bench.

Speaking to Minivan News today, former Human Resource Minister Hassan Latheef – a member of Nasheed’s legal team – said that the case has remained stalled at the High Court for over a year now.

“We filed the case at the High Court after we noticed that there were many issues regarding how the Judicial Service Commission (JSC) has composed the bench,” Latheef explained.

“For one thing, the JSC does not have to bring selected judges from throughout the country and compose a bench to conduct the trial of a specific individual, that is not the normal procedure.”

The original case filed at the Hulhumale’ court – concerning the military’s controversial detention of Criminal Chief Judge Abdulla Mohamed in January 2012 – needed to be concluded soon because former President Nasheed did not wish to have pending criminal charges, Latheef said.

“But the case at the Hulhumale’ Court can only be continued when the High Court concludes this case we have filed at the High Court,” he noted.

“’When we filed the case at the High Court, on April 1, 2013 the court issued an injunction ordering Hulhumale’ court to halt the trial against Nasheed until the court concluded the case we have filed.”

The case filed by Nasheed’s legal team challenging the legality of the magistrate court bench was stalled after the JSC suspended the former High Court Chief Judge – who was presiding over the case – pending an investigation over a disciplinary matter.

During the hearings held at the High Court, the JSC contended that the High Court did not have jurisdiction to rule on the case as the panel of judges presiding over Nasheed’s trial was appointed based on counsel from the Supreme Court

Nasheed said at the time that he was  “prepared” to justify the reasons for the arrest of Judge Abdulla, and said he was ready to appear in court to defend the decision.

Nasheed also dismissed accusations of the High Court, the Supreme Court and the prosecutor general that he had ordered the military to arrest Judge Abdulla unlawfully.

“I did nothing unlawful during my tenure,” he insisted.

Nasheed also urged the public to attend the trial and witness proceedings, alleging that the case was politically motivated.

Judge Abdulla’s arrest sparked three weeks of anti-government protests in January, leading the Nasheed administration to appeal for international assistance from the Commonwealth and UN to reform the judiciary.

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President predicts US$300 million compensation for GMR

The Maldivian government believes GMR is owed US$300 million in compensation for the premature termination of the contract to develop the Ibrahim Nasir International Airport (INIA) instead of the US$1.4 billion the company is seeking, President Abdulla Yameen Abdul Gayoom told reporters upon his return to Malé last night.

Speaking to press after returning from Singapore to attend the Maldives Investment Forum, President Yameen insisted that the arbitration proceedings over GMR’s compensation claim has not deterred investors.

The INIA development project was the most popular among attendees at the forum, he said.

“The biggest interest was for the airport,” Yameen said.

The event – which took place on April 25 – was attended by over over 160 companies and nearly 200 representatives from 16 countries, and was the first overseas investor forum organised by the Maldives.

GMR compensation claim

Speaking to the press at the airport, Yameen argued that the previous government was within its rights to terminate the contract as it “damaged state and national interests”.

But since GMR had carried out some of the development works at the airport, the government has to pay compensation, he conceded.

President Yameen said that the compensation payment would affect the state budget, but added that $300 million is a “manageable” sum.

The state-owned Maldives Airports Company Limited (MACL), which now manages the airport, is “saving up” that sum, he said.

This statement comes after GMR is reportedly sticking to the US$1.4 billion compensation claim for the abrupt termination by the Maldivian government in December 2012.

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid. Thus, GMR’s claim is $1.4 billion,” Indian media reported the Bangalore-based infrastructure giant as saying in a statement on Friday (April 25).

Investment forum

On the investor forum, President Yameen said companies were also interested in developing a trans-shipment port in the north of the country, along with economic stimulation investments in Hulhumale’.

The island is a reclamation project to the north of Male’ to cater for the housing, industrial and developmental demands of the capital.

“Alongside (interests for the airport), there was (interest) for the economic development of Hulhumale’,” President Yameen said.

“Some large Chinese companies brought us (proposals) to develop a township in Hulhumale’, in addition to different (development) components for the airport. God willing, if we can put the effort, there is a lot to be gained here,” he added.

Moreover, the Ministry of Transport is seeking investors for building four new domestic airports. They are to be established on Haa Alif Huvanadhoo, Alif Alif Mathiveri, Faafu Magoodhoo and Meemu Muli.

The government is proposing leasing one or two islands for 25 years for resort development to the investors under a public-private partnership (PPP) programme in addition to a customs duty exemption for all equipment and material imported for the airport projects.

Moreover, the government has also made an announcement seeking a developer to expand Hanimaadhoo International Airport in the north of the country.

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Parliament approves hiking airport service charge to US$25

Parliament today approved legislation to raise the airport service charge from departing foreign passengers to US$25 from July onward as part of the current administration’s revenue raising measures.

The amendment bill submitted on behalf of the government by Progressive Party of Maldives MP Abdul Azeez Jamal Abubakur was passed with 32 votes in favour.

The government anticipates over MVR100 million (US$6.4 million) in additional revenue from the increased departure tax.

Parliament 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.

Other bills

A raft of other bills were also passed at today’s sitting of the People’s Majlis, including a bill on the state wage policy that was vetoed by former President Waheed in December 2012.

The legislation proposes the creation of a five-member National Pay Commission chaired by the finance minister with part-time members to determine salaries and allowances for the public sector and authorise pay rises.

The bill stipulates that the commission must consider the cost of living, inflation and the consumer price index in determining wages.

Moreover, salaries should incentivise government employees to work in islands with small populations.

The commission would also formulate standards and rules for determining the state’s pay scale or appropriate salaries based on qualifications and nature of employment.

Legislation on sole proprietors and business registration submitted by the administration of former President Nasheed in 2011 as part of an economic reform package was also passed today.

According to the draft legislation on business registration, the bill seeks to ensure that businesses, partnerships and cooperative societies operating in the Maldives are properly registered; specify what kind of businesses must be registered along with procedures for registration; and oblige businesses to submit information to the Registrar of Businesses.

The bill was also vetoed by President Waheed in April 2012 citing “socio-economic” concerns.

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Home Minister Umar Naseer pleads not guilty to charges at Criminal Court

Home Minister Umar Naseer denied charges of ‘disobedience to an order’ at the first hearing of his trial at the Criminal Court today.

Judge Abdulla Didi told Naseer’s lawyer to respond to the charges at the next trial date, according to local media.

Naseer is accused of calling for 2,000 volunteers on January 23, 2012 to storm the Maldives National Defence Force (MNDF) headquarters with 50 ladders during the two weeks of protests sparked by the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed.

On the night in question, Umar told anti-government demonstrators in front of the Maldives Monetary Authority building that they should use tactics to tire out the soldiers on duty before climbing into the military barracks, at which point “the people inside will be with us.”

“From today onward, we will turn this protest into one that achieves results,” Naseer had said.

“We know how people overthrow governments. Everything needed to topple the government of this country is now complete.”

After he was questioned by the police in September 2012, Naseer told the press that “there will be no evidence” to prove he committed a criminal offence.

“In my statement I did not mention where to place the ladders or where to climb in using the ladders.” Naseer had said.

If convicted, Naseer faces banishment, imprisonment or house arrest not exceeding six months or a fine not exceeding MVR150 (US$ 10) under article 88(a) of the penal code.

The case against Naseer was submitted to the Criminal Court by the Prosecutor General’s office in December 2012 after police concluded their investigation.

The 22 consecutive nights of protests by the then-opposition in January 2012 culminated in the resignation of President Mohamed Nasheed on February 7 in the wake of a violent mutiny by riot police officers.

Speaking at a Progressive Party of Maldives rally days after the controversial transfer of presidential power, Naseer claimed he had warned the president’s closest aides that Nasheed could “lose his life” if he did not comply with the ultimatum to resign.

Naseer said he told the president that he could “either surrender with bloodshed or surrender peacefully”.

Naseer also told Australia’s SBS Dateline programme that he was organising the protests from a “command centre” and that he feared for Nasheed’s life.

In January 2013, Naseer said the ousting of the Maldivian Democratic Party government was the result of “planning, propaganda and a lot of work.”

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GMR holds to US$1.4 billion compensation figure

GMR is sticking to the US$1.4 billion compensation claim for the abrupt termination by the Maldivian government in December 2012 of a concession agreement to develop the Ibrahim Nasir International Airport (INIA).

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid. Thus, GMR’s claim is $1.4 billion,” Indian media reported the Bangalore-based infrastructure giant as saying in a statement on Friday (April 25).

GMR noted that the Maldivian government had acknowledged for the first time that the company was owed compensation.

Prior to departing for Singapore on Thursday, President Abdulla Yameen told the press that the government would have to pay compensation to GMR upon conclusion of the arbitration process currently underway.

Asked if he was confident the outcome of the arbitration would be favourable for the Maldives, Yameen said: “The reality we have to accept is that a government with full sovereign powers made an agreement with a foreign party and leased [the airport]. This is a government, and what preceded this was a government as well. So believe we have to pay them some kind of financial compensation. “

He added that the government’s objective in the arbitration hearings was to lower the compensation amount.

If the judges on the arbitration panel accept the government’s arguments for nationalisation or expropriation, Yameen said the compensation owed to GMR could be smaller.

“We’re going to have to provide compensation in any case,” he conceded.

The US$1.4 billion sought by GMR for “wrongful termination” exceeds the annual state budget whilst the national debt is expected to rise to MVR31 billion (US$2 billion) this year.

Earlier this month, Yameen had said that the out-of-court settlement sought by GMR was too high, and that he would now await the outcome of the arbitration proceedings, which could take up to another two months.

Despite the pending arbitration decision, expansion and development of INIA was among the five mega-projects for which the government was seeking investors at the Maldives Investment Forum held in Singapore’s Marina Bay Sands yesterday.

President Yameen also met officials of the Beijing Urban Construction Group yesterday, who “expressed their interest in engaging in the infrastructure development of the [INIA],” according to the President’s Office.

Void ab initio

In December 2012, the administration of former President Dr Mohamed Waheed voided the 25-year concession agreement with the GMR-led consortium.

The US$511 million contract awarded by his predecessor former President Mohamed Nasheed – following a bidding process overseen by the World Bank’s International Finance Corporation (IFC) – was the largest foreign direct investment in the country’s history.

Waheed’s government – of which President Yameen’s Progressive Party of Maldives was a coalition partner – declared the contract ‘void ab initio’ – invalid from the outset – and gave the company seven days to leave the country.

After GMR received a stay order for the eviction from the Singapore High Court, the government successfully appealed the injunction at the Singapore Supreme Court.

Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

At a press conference in the wake of the airport takeover, Finance Minister Abdulla Jihad – who retained his post under the new administration – said that the Maldives would pay whatever compensation was required “however difficult” while Attorney General Azima Shukoor expressed hope that the compensation would be lower than anticipated.

A special audit conducted by the Auditor General’s Office in early 2013 found that as of October 31, 2012, GMR Male’ International Airport (GMIAL) had completed 25 percent of the refurbishments and upgrades to INIA planned for the end of 2014, and had been invoiced by its contractor for US$69 million.

“Significant progress had been made in some areas – for example, 87 percent of the material for land reclamation had been dredged,” the report (English) stated.

“In the meantime, all work on the ground on the improvement to the airport has ceased. Sensitive elements of the new structures that had been planned by [GMR] are incomplete and exposed to the weather and at risk of damage – possibly closing off the option of re-using these elements to reduce the cost of any future development of the airport,” the report concluded.

After examining the bidding process, the audit report stated that evidence to back allegations of “improper interference” during technical bidding process “is not conclusive on this point”, and deferred the matter to the Anti-Corruption Commission (ACC), which ruled out corruption in June 2013.

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Home Minister Umar Naseer to run for presidency in 2023

Minister of Home Affairs Umar Naseer has announced he will run for the presidency in 2023 and has pledged to back President Abdulla Yameen Abdul Gayoom for re-election in 2018.

“I am not a political threat to President Yameen. I am ready to work to help President Yameen get re-elected to presidency in 2018. What I may have said before, and the competition that existed between us before is a completely different matter. That has come to an end,” he said in an interview on state broadcaster Television Maldives’ Friday variety show ‘Heyyambo.’

Naseer lost to Yameen in the Progressive Party of the Maldives (PPM) presidential primaries in 2013 and alleged the primaries were rigged. He accused Yameen of illicit connections with gangs and the illegal drug trade and vowed to bring a “white revolution” within the party.

The PPM expelled Naseer from the party and he backed Jumhooree Party (JP) Leader Gasim Ibrahim in the 2013 presidential elections. Naseer was appointed to the cabinet when Gasim’s backing proved crucial in PPM’s second round win.

Speaking on Heyyambo, Naseer said Yameen will “have no reason to contest again” by 2023 and said he himself will run for the presidency then. The Maldives constitution limits presidential terms to two five year terms.

Naseer ran for the presidency in 2008 and won 2,472 votes.

Coalition friction

Naseer expressed confidence that he will be able to sort out any differences within the government coalition, pointing to his prior experience working with Yameen and Gasim.

Friction within the coalition became apparent with Gasim warning the PPM against betrayal in a rally on April 13.

But Naseer asserted that Yameen and Gasim are working together in the national interest.

He also dismissed competitive words exchanged between the two coalition partners in the lead up to the 2013 presidential elections as “an attempt to choose the best leader from among those sharing the same ideology”, and said personal ambition has now “taken a backseat and national interest is what drives [us] today”.

“Although we walked over each other in the race to select a leader amongst those of us who holds the same ideology, once we have come out to the actual national race we have removed our personal jerseys and donned the national jersey. Today we are playing in the national uniform,” he said.

Extradite offenders

Naseer said he will amend laws which require police to present detainees to the Criminal Court with 24 hours of arrest and spoke of plans to extradite Maldivian offenders.

Maldivian offenders will not be able “to hide in any corner of the world,” Naseer said.

“No offender should delude themselves into thinking that they can flee from the Maldives and peacefully live elsewhere. That cannot be done. The first topic of discussion that I take up with leaders, Home Ministers and police leaders of every country I travel to is that in the instance there is a runaway Maldivian offender in the country, they should arrest them immediately and turn them over to the Maldivian authorities.”

He also spoke about a recent police raid where 79 youth were arrested from the island of Anbaraa during a musical festival, where all detained were reported to have tested positive for illicit drugs.

It is permissible for Maldivians to go on picnics, play loud music and have fun, Naseer said.

“But, there cannot be the abuse of drugs or consumption of alcohol. There cannot be DJs. If these kinds of things are being done, the police will go in and stop the activities. What I am saying is, you can party, but you cannot ‘Ambaraa'”.

Referring to the controversial order he had made unto the Maldives Correctional Services to implement death penalty, Naseer asserted that he had done so only on prior discussions with the President.

The Attorney General is currently drafting regulations for implementation of the death penalty on the cabinet’s request, he said. The government would only implement the death penalty if the Supreme Court upholds the sentence, he reiterated.

Speaking on the illegal drug trade, Naseer alleged that “powerful gangs from neighbouring countries” are involved in smuggling drugs into the Maldives.

Naseer identified population dispersion as the biggest obstacle for development and called for population consolidation.

“If the desired development is to be brought about, the approximately 400,000 inhabitants of this country will have to start living on three or five islands. We cannot bring the development otherwise,” he said.

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MP Jabir in Malaysia for medical treatment

Jailed opposition MP Abdulla Jabir is seeking medical treatment in Malaysia, local media have reported.

The Maldivian Democratic Party (MDP) MP was hospitalised on April 8 after suffering respiratory difficulties. He is currently serving a one year jail sentence for refusal to provide a urine sample to police.

Jabir left the Maldives at 9:15 pm on Friday night without a set return date, the Maldives Correctional Services (MCS) told Minivan News.

Doctors at Indira Gandhi Memorial Hospital (IGMH) recommended Jabir go abroad for an examination of his heart, the MCS told local media. The service is not available in the Maldives, the MCS said.

Jabir was hospitalised for two weeks and transferred back to Maafushi prison on April 22 with a device to facilitate breathing – reportedly obtained from Singapore.

At the time of hospitalisation, the MP’s wife Dhiyana Saeed said Jabir had been born with birth defects which caused a sleep disorder called sleep apnoea. The disorder is characterised by pauses in breathing or instances of shallow or infrequent breathing during sleep.

In a text to MDP parliamentary group members, Dhiyana said at the time: “The pulmonologist who saw him says his previous surgeries for severe sleep apnoea has failed and needs to be admitted.”

In an interview with VNews earlier this month, Dhiyana said doctors had informed her that Jabir’s breathing stopped four times every hour.

Jabir was sentenced to jail in February for failure to provide a urine sample for a drug test during a police raid on the island of Hondaidhoo in November 2012.

A total of 10 people were taken into police custody at the time. Officers alleged they found large amounts of drugs and alcohol upon searching the island.

Seven people, including the MDP MP Hamid Abdul Ghafoor, face separate charges for refusal to provide urine, alcohol possession and cannabis possession. They include former President’s Office Press Secretary Mohamed Zuhair and his wife Mariyam Faiz, the manager of Jabir’s Alidhoo resort Jadhulla Jaleel and son of former Special Envoy to the President Ibrahim Hussein Zaki, Hamdan Zaki.

All seven have accused the police of brutality during their arrest.

The Prosecutor General also charged Jabir for possessing cannabis but the Criminal Court acquitted by the MP citing insufficient evidence.

Charges of alcohol possession remain outstanding, with the last hearing of Jabir and Hamid’s joint trial being suspended due to Jabir’s hospitalisation.

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“Yonder lies the greener pastures”: President Yameen inaugurates investor forum in Singapore

President Abdulla Yameen inaugurated the Maldives Investment Forum at Singapore’s Marina Bay Sands today with assurances to potential investors of the government’s commitment to fostering a business-friendly environment.

In his keynote address at the event, President Yameen said his administration was “cognisant of the needs of our investors and the requirements to strengthen and redefine the legal and regulatory environment governing foreign investments.”

“To address investment climate and to facilitate mega investments with attractive incentive packages, a Special Economic Zone Bill will be tabled in the parliament soon. Additionally, the Foreign Investment Act and Companies Act are being revised to cater the ever increasing needs of the modern foreign investors,” he said.

“Investment registration and facilitation has also been strengthened recently, with structuring of Invest Maldives as a one-stop shop for investment promotion, registration and facilitation.”

Over 160 companies and close to 200 representatives from 16 countries were present at the first overseas investor forum organised by the Maldives, Yameen noted, expressing gratitude for the “overwhelming support received for this forum.”

The new government has “embarked on an ambitious economic agenda to transform the economy” with the goal of becoming “a resilient, diversified high income economy in the next decade,” the president said.

He added that the government was committed to exploring “openings for increasing foreign investment flows to non-traditional sectors to lift Maldives beyond the image of a picturesque postcard.”

Yameen suggested that the success of the tourism industry over the past 40 years was due to “ingenuity, private enterprise and a liberal policy environment for foreign investments”.

Mega-projects

The projects for which the government was seeking investors were “designed to position Maldives to take advantage of its strategic location as a hub and gateway for commerce, innovation and creativity, linking rest of the globe with South Asia,” he explained.

Briefing participants on the five mega-projects envisioned by the government, Yameen said that the Ihavandhippolhu Integrated Development Project or iHavan “provides immense potential to capture substantive share of the trade and commercial opportunities in the South Indian Ocean and capture the trade flows crossing the seven degree channel.”

The government hoped to “engage private investors in the delivery of key pieces of infrastructure,” he said.

The other mega-projects or infrastructure development plans were concentrated in the Greater Male’ region, Yameen noted, which included the Hulhumale’ Youth City with further land reclamation and a maritime seaport project.

“With these investments, we foresee the region surrounding the Male’ City emerging as a vibrant commercial hub in the region,” he said.

The other mega-projects include the expansion of the Ibrahim Nasir International Airport (INIA), relocation and expansion of the central port to Thilafushi, and exploration for oil and gas.

Concluding his remarks, Yameen thanked foreign investors and senior businessmen from the Maldives for their “support and presence” at the forum, which gave the government “comfort and confidence” in its economic and trade policies.

Yameen said he hoped the forum would serve as “an avenue for enhancing understanding of the investment environment and opportunities in Maldives.”

He went on to congratulate Economic Minister Mohamed Saeed and his team for organising the forum and expressed gratitude to the key sponsors.

“Yonder lies the greener pastures,” he concluded by saying.

Yameen’s remarks were followed by presentations on the five mega-projects, a question and answer session with government ministers and speeches by Stephen Ho, President of Starwood Asia Pacific, Akhil Gupta, Chairman of Blackstone India, and William Ellwood Heinecke, CEO of Minor International.

President Yameen also launched the new Invest Maldives website at the forum this morning.

In his speech at the inauguration ceremony, Economic Development Minister Saeed revealed that the government was planning to hold a second investor forum in Shanghai, “the commercial capital of China.”

Moreover, at a press conference held at the forum, Tourism Minister Ahmed Adeeb reportedly revealed that the government has decided to lease islands for resort development for 99 years instead of the 50-year lease period at present.

Legislation will be submitted to parliament to authorise the extension, he said, which was intended to gain investor confidence.

Meanwhile, prior to departing for Singapore yesterday, President Yameen told the press that the government was certain it would have to compensate Indian infrastructure giant GMR for the premature termination of the concession agreement to develop and manage INIA.

Earlier this month, Yameen had said that the out-of-court settlement sought by GMR was too high, and that he would now await the outcome of arbitration proceedings in Singapore, which could take up to another two months.

The US$511 million contract awarded by the administration of former President Mohamed Nasheed was the single largest foreign direct investment in the Maldives’ history.

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President’s Office spent MVR30 million in excess of approved budget in 2011, audit reveals

The President’s Office (PO) spent MVR30.6 million (US$1.9 million) in excess of the approved budget in 2011 while MVR2.8 million (US$181,582) was used to cover expenses that were not directly related to the office’s mandate, the PO’s audit report (Dhivehi) has revealed.

Among the unrelated expenses were MVR1.8 million (US$116,731) spent on trips by former President Mohamed Nasheed to 88 islands ahead of the February 2011 local council elections, MVR904,855 (US$58,680) spent for then-Vice President Dr Mohamed Waheed to stopover in Singapore after attending the “Third Symposium on the European Academic Space” in Italy, and MVR139,676 (US$9,058) spent on a trip by the PO to check progress on the editing of ‘The Island President’ documentary.

While MVR526,454 (US$34,140) was spent for two trips to the United States by the vice president and his family, the report made public yesterday noted that there were no details of expenditure for MVR364,267 (US$23,623) of that amount.

Moreover, MVR235,556 (US$15,276) was spent out of the vice presidential residence’s budget for the vice president, his wife, child, and father to make the Hajj pilgrimage, but there were no details of expenditure for MVR60,524 (US$3,925) spent on food and accommodation.

“And while MVR69,112 (US$4,481) was spent for medical treatment during a trip by the vice president and his wife to Singapore in 2011, no documentation concerning the medical treatment was submitted,” the report stated.

Similarly, the report noted that MVR462,326 (US$29,982) was spent to cover the medical expenses of the president’s family in 2011, but were no documents related to the medical expenses.

A total of MVR677,369  (US$43,927) was meanwhile spent in 2011 on holidays for the president’s family, the report revealed.

Auditors also found that the PO paid mobile phone bills for political appointees out of the office’s budget in the absence of either a ceiling limit or rules to determine whether the calls were made for official purposes.

While MVR187,397 (US$12,152) was loaned from the PO budget to political appointees for personal expenses, auditors found that MVR184,191 (US$11,944) had not been repaid.

Moreover, MVR51,669 (US$3,350) was spent out of the vice presidential residence’s budget to pay mobile bills of the vice president’s wife, Madam Ilham Hussain, in contravention of the law governing privileges and state benefits for the vice president.

While the law stipulates that security for the vice president and his family must be arranged by the Ministry of Defence and National Security, auditors found that travel expenses for bodyguards during unofficial overseas trips by the vice president and his wife were settled out of the vice presidential residence, Hilaaleege’s budget.

Among other cases flagged in the report, auditors found that the PO had to pay MVR555,808 (US$36,044) as compensation to Shady Cabin after screws and sponges from 170 rented chairs went missing. The chairs were rented for the SAARC summit held in Addu City in November 2011.

The PO also covered expenses for foreign dignitaries out of its budget in the absence of rules for hospitality, the report noted.

Auditors found that MVR294,037 (US$19,068) was spent out of the presidential residence Muleeage’s budget for the stay of two British citizens from February 16 to 23.

Moreover, MVR29,058 (US$1,884) was spent out of the Muleeage budget for the “son of the president of a neighbouring country” to stay in a resort.

Auditors also discovered that there were 25 cable TV decoders in Muleeage and 12 decoders in Hilaaleege, for which MVR174,080 (US$11,289) and MVR81,917 (US$5,312) respectively was spent in 2011.

Lastly, auditors found that the PO did not maintain inventory records in accordance with public finance regulations. Plots of land and buildings under the care of the official residences of the president and vice president as well as fittings, furniture, and vehicles were not valued and included in the asset register.

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