Author: Ahmed Naish

Majlis approves reallocation of flats from southern atolls to Hulhumalé

The People’s Majlis voted 38-31 yesterday to grant a request by President Abdulla Yameen to reallocate 704 flats to Hulhumalé from a 1,500-housing unit project planned for four southern atolls.

MPs of the ruling Progressive Party of Maldives (PPM) and coalition partner Maldives Development Alliance (MDA) voted in favour while opposition Maldivian Democratic Party (MDP) MPs and Jumhooree Party (JP) MPs voted against the proposal.

On June 11, President Yameen asked parliament to review a decision by the 17th People’s Majlis in December 2013 to deny the president’s request.

The year before, the previous parliament had also denied his predecessor President Dr Mohamed Waheed’s request to revise the housing project to shift 704 housing units to Hulhumalé.

In December 2012, parliament rejected the proposed change with former Speaker Abdulla Shahid casting a tie-breaking vote after the vote was tied 33-33.

An MVR2.5 billion (US$162 million) loan was secured during the administration of former President Mohamed Nasheed in 2011 to construct 1,500 housing units in Gaaf Alif, Gaaf Dhaal, Fuvahmulah and Addu City.

In a letter seeking parliamentary approval for the revision – which was read out at the parliament sitting on July 2 – President Yameen stated that the government had conducted a “needs assessment” and determined that there was “no need at present” to build more than 796 housing units in the southern atolls.

Yameen also contended that “micro-level decisions regarding loans” should be made by the executive, adding that an affordable housing scheme was essential to develop Hulhumalé with a large enough population to provide education and healthcare services and create job opportunities.

Developing a ‘youth city’ in Hulhumalé with a population of 50,000 was a campaign pledge of President Yameen, whose vision for the artificial island includes the creation of light industries and a “technopolis” park as well as sports and entertainment facilities.

The president’s request was forwarded to the public accounts committee (PAC) earlier this month, which approved it over the objections of opposition MPs on the committee and sent a report (Dhivehi) to the Majlis floor for final approval. The report was compiled by the PAC of the previous parliament.

Pro-government MPs had rejected MDP MPs Ibrahim Shareef’s proposal to seek further information after summoning Housing Minister Dr Mohamed Muiz and voted in favour of a proposal by PPM MP Riyaz Rasheed to pass the previous report.

Parliamentary approval for revising the terms of a loan is required under amendments approved to the Public Finance Act in 2010.

Regional disparity

During the final debate on the report at Tuesday’s sitting, MDP MP for the mid-Hithadhoo constituency in Addu City, Ibrahim Mohamed Didi, alleged that the contractors stood to gain an additional US$21 million by shifting the flats to the Malé region.

“Who on the committee looked into what happens to this US$21 million?” the retired brigadier general asked, characterising the move as a “betrayal” of the people of the southern atolls.

He explained that the cost of a flat decreases from US$150,000 to US$75,000 when it is built in Hulhumalé.

Due to the low value of land outside the central region, Didi said people in the outer atolls were unable to secure housing loans and appealed to pro-government MPs to vote against the proposal on behalf of their constituents.

JP Leader Gasim Ibrahim also alleged “serious corruption” in tendering the construction work to a contractor as the cost of building a flat should not exceed US$75,000 on average.

Flats for tsunami victims in the south were built with loan assistance from the Saudi Fund and elsewhere for about US$50,000, he added.

The JP MP for Maamigili called for investigations by the Auditor General’s Office and Anti-Corruption Commission (ACC), questioning the US$150 million price tag for 1,500 flats.

Independent MP for Gaaf Dhaal Madaveli, Muaz Mohamed Rasheed, said his constituents were “very concerned” with the decision to reallocate the flats from the south.

If the flats are to be built in Hulhumalé, Muaz suggested that citizens of southern atolls should get preference in the awarding process.

However, despite the misgivings, Muaz said the government should be able to make revisions in the interests of loan repayment. While he attended yesterday’s sitting, Muaz did not participate in the vote.

PPM MP for Gaaf Alif Gemanafushi, Jameel Usman, noted that a large number of citizens from the atolls resided in the capital and were in need of housing, to whom President Yameen wished to provide low-cost housing.

MDA MP Ahmed Amir meanwhile cautioned that further delays caused by parliament could jeopardise the loan, which was secured on favourable terms at a “very low” interest rate.

The PPM-led government’s manifesto included land reclamation of several islands in the outer atolls, Amir said, where housing units would also be built.

A UNDP Human Development Index released last month highlighted regional disparities and inequalities in the Maldives as a “major challenge” towards human development.

“Where one is born within the Maldives determines many of the opportunities and choices available to a person,” the report concluded.

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Addu City Council refutes Kooddoo claims over stalled fish cannery project

The Addu City Council has denied claims by Kooddoo Fisheries Maldives Ltd (KFML) that the company is waiting for the council to grant a plot of land to build a fish processing centre and a cold storage unit.

The government-owned company claimed in a press statement earlier this week that the council has not officially responded to a request for a plot of land in the Hithadhoo harbour area and that a dispute between the council and the Fisheries Ministry over ownership of the land was stalling the project.

Fisheries Minister Dr Mohamed Shainy had also claimed during minister’s question at a parliament sitting on June 30 that the council had refused to grant a plot of land.

However, the city council claimed in a counter statement on Monday (July 14) that an 861,113 square foot land north of the regional harbour was leased to Kooddoo on November 1, 2013 for a period of 50 years with no rent to be charged for the first two years.

Moreover, the council stated that Kooddoo obtained a US$4.4 million letter of credit and US$2 million overdraft demand loan from the Bank of Maldives after mortgaging the plot, which was registered under the council’s mortgage registry on November 7, 2013.

The council accused the company of attempting to mislead the public and create division and strife amongst the city’s “fraternal and united community”.

The stated purpose of the planned cold storage facility and fish cannery is to reduce the cost of purchasing fish from Addu City as the fish catch from the southernmost atoll had to be transported to Kooddoo’s main operation base in Gaaf Dhaal atoll.

In its statement, Kooddoo noted that the city council had leased a plot of land to a private company for a similar fisheries-related project, suggesting that fishermen in Addu City would benefit more if only one of the companies was allowed to make the investment.

Responding to the objection, the city council noted that a lease agreement for a 20,000 square feet plot of land with Sea Dynamics SUL was signed on October 10, 2013 – prior to leasing a different plot to Kooddoo – following a competitive bidding process.

The council noted that it did not have the legal authority or jurisdiction to reclaim the land after terminating the agreement and compensating the company.

Moreover, the council accused Kooddoo of being both “reluctant to work in a competitive environment” and “attempting to increase influence and power in business”.

Obstruction of the council’s efforts to create a competitive business environment for the benefit of Addu City fishermen was “unacceptable,” the council statement read.

Kooddoo’s objections also suggested that the company did not wish to conduct any business enterprise in Addu City, the statement added, accusing the company of exerting influence over the Fisheries Ministry to block approval for Sea Dynamics to begin its fisheries business.

“This council has always been working, and will continue to work, to provide broad opportunity for all businesses in an open and competitive environment and to ensure security and protection for entrepreneurs in various sectors,” the statement read.

The Addu City Council also attached copies of the lease agreements with Sea Dynamics and Kooddoo, letters exchanged with the Fisheries Ministry, and copies of mortgage agreements with the Bank of Maldives.

The Addu City Council is comprised exclusively of councillors from the opposition Maldivian Democratic Party (MDP).

Meanwhile, the audit report of Kooddoo for the financial year 2013 – made public earlier this month by the Auditor General’s Office – noted that the company was “not proceeding further with the cannery project.”

“Accordingly, the total capital work-in-progress shown as that of Addu cold storage facilities and cannery project amounting MVR20,121,839 are overstated by an undetermined amount and the results for the year overstated by the unrecognised impairment, respectively,” the report stated.

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Housing Ministry to resume stalled Tata housing project

The government expects to sign a revised agreement with Tata Housing Developing Corporation next week to resume stalled housing projects in the capital Malé, Housing Minister Dr Mohamed Muiz revealed at a press conference yesterday.

The terms of the agreement were revised on the advice of the cabinet’s economic council after agreeing to some of Tata’s conditions, Muiz explained, and have now been forwarded to the Indian real estate developer for final approval.

“We have agreed that work must begin in two sites in Malé within 45 days of signing the amendments [to the contract],” Muiz said, referring to the Gaakoshi plot and former Arabiyya School premises.

Muiz further revealed that the government has also agreed to give back the vacant ‘Naadhee’ plot in Malé and approve construction on the site.

The site was taken over by the administration of former President Dr Mohamed Waheed with the intention of building a new Supreme Court complex on the premises.

While the previous administration had offered a plot in Hulhumale’ as an alternative, the developers felt the change would affect financing of the project.

The multi-million dollar housing project – a combination of commercial and social housing through a Public-Private Partnership model – was signed in May 2010 by the administration of former President Mohamed Nasheed with Apex Realty Pvt Ltd, a special purpose vehicle (SPV) or joint venture formed between Tata (65 percent) and SG18 Developers (35 percent).

Providing affordable housing to resolve the acute housing shortage in the capital was a core pledge of the Nasheed administration as well as the current Progressive Party of Maldives-led (PPM) government.

Contractual dispute

Housing Minister Dr Mohamed MuizThe Naadhee plot on Sosun Magu was among four plots of land in the capital awarded to the Tata subsidiary for construction of flats.

The Waheed administration’s decision to take over the plot was the source of the dispute with Tata, Muiz conceded yesterday, which has now been resolved after the economic council decided to give back the plot in accordance with the terms of the original agreement.

The government has agreed to purchase 20 percent of the flats constructed on the plot, he noted.

Discussions were meanwhile ongoing between the Supreme Court and the President’s Office on a new site for the apex court’s building, he said.

The flats in Gaakoshi and the old Arabiyya School site would have to be completed in 10 months and a year respectively, Muiz continued, while Tata has also agreed to construct 150 flats in Hulhumale’.

In May, Apex Realty announced that the company was prepared to resume work on the project as soon as the agreed upon amendments were incorporated into the contract.

“Apex Realty officials have undertaken multiple rounds of meetings with the economic council of the cabinet and the Ministry of Housing to find a mutually acceptable solution to contractual issues,” the company said in a press release.

“We are committed to the Maldives project and can start the project within 45 days after the final nod is received from the Housing Ministry and contract amendment is signed,” said Mr Sandeep Ahuja, Director at Apex.

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Oversight committee rejects President Yameen’s nominees for Prosecutor General

Parliament’s independent institutions oversight committee last night decided against recommending for approval President Abdulla Yameen’s nominees for the vacant post of Prosecutor General (PG).

According to opposition Maldivian Democratic Party (MDP) MP Rozaina Adam, the committee awarded President Yameen’s nephew Maumoon Hameed 33 percent and Criminal Court Judge Muhthaz Muhsin 67 percent following a vetting process.

A minimum score of 75 percent or marks is required for the committee to recommend a nominee for approval. The pair were interviewed by the committee last Thursday night (July 10).

Marks were awarded following evaluation of their academic qualifications, experience, competency, management skills, leadership qualities, achievements, and integrity.

The nominees will however be put to a vote on the People’s Majlis floor.

The ruling Progressive Party of Maldives (PPM) has a clear majority of the 85-member house with 43 MPs in addition to five MPs of coalition partner Maldives Development Alliance (MDA).

The independent institutions oversight committee is comprised of five PPM MPs, one MDA MP, three MDP MPs and two Jumhooree Party (JP) MPs.

The final evaluation process took place at a closed session last night where opposition MPs reportedly awarded zero marks to both nominees.

In April, Maumoon Hameed failed to garner the required 39 votes in the previous parliament – falling just three votes short – four months after he was put forward by President Yameen.

Article 221 of the constitution states, “The President shall appoint as Prosecutor General a person approved by a majority of the total membership of the People’s Majlis from the names submitted to the People’s Majlis as provided for in law.”

The independent oversight committee in the 17th People’s Majlis had also rejected Hameed’s nomination after the lawyer failed to meet the assessment criteria.

“Approval is based on a preset grading scheme, and not on members’ opinions,” MP Rozaina told Minivan News at the time.

The PG’s post has been vacant since November following the resignation of Ahmed Muizz ahead of a scheduled no-confidence motion in parliament.

Moreover, Acting PG Hussein Shameem’s resignation in early May brought the criminal justice system to a halt after state prosecutors went on strike, citing concerns of a lack of accountability in the absence of a PG.

However, the Supreme Court ordered prosecutors to resume work “without any further excuse” and ordered the seniormost official at the PG office to assume the PG’s responsibilities.

President Yameen meanwhile refused to submit a new nominee to the 17th Majlis during the crisis and opened up a third call for applicants, announcing his intention to nominate Hameed – son of former Atolls Minister Abdulla Hameed – for a second time to the newly elected 18th People’s Majlis.

Meanwhile, at its meeting last night, the independent institutions committee also awarded 68 percent to President Yameen’s nominee for the Police Integrity Commission, Adam ‘Kurolhi’ Zahir.

The committee however approved the nominations of former MP Abdul Azeez Jamal Abubakur for the newly created post of Information Commissioner with 88 percent and Aishath Zahira for deputy governor of the Maldives Monetary Authority (MMA) with 90 percent.

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Public accounts committee approves reintroducing car allowance for ministers

The People’s Majlis’ public accounts committee (PAC) yesterday approved a request by President Abdulla Yameen to reintroduce a discontinued car allowance for cabinet ministers.

A motion by Maldives Development Alliance (MDA) MP Ahmed Amir to grant the request was approved with seven votes in favour and six against after Chair MP Ahmed Nihan – parliamentary group leader of the ruling Progressive Party of Maldives (PPM) – cast the tie-breaking vote.

Opposition Maldivian Democratic Party (MDP) MPs and Jumhooree Party (JP) MPs voted against the motion. The PAC is comprised of six PPM MPs along with one MP from coalition partner MDA as well as four MDP MPs and two JP MPs.

The committee’s decision will be put to a vote on the Majlis floor.

Under the previous parliament in December 2012, the PAC had decided to discontinue an MVR6,500 (US$422) monthly salary for drivers of ministers’ cars as well as an MVR1,000 (US$65) allowance for petrol cost. Ministers were instructed to settle the expenses out of their salaries from April 2013 onward.

The PAC decision was later voted through on the Majlis floor on December 31 as part of a revised pay scheme for senior officials in the executive, judiciary, and independent institutions.

The elimination of both the salary for drivers and the fuel allowance was estimated to save 89 percent from the budget item. Cabinet ministers presently earn a monthly salary of MVR57,500 (US$3,729).

The task of determining salaries and allowances is entrusted to the PAC – also referred to as the finance committee – under section 100(a) of the parliamentary rules of procedures.

Article 102 of the constitution states, “The president, vice president, members of the cabinet, members of the People’s Majlis, including the speaker and deputy speaker, members of the judiciary, and members of the independent commissions and independent offices shall be paid such salary and allowances as determined by the People’s Majlis.”

In its meeting yesterday, the PAC also commenced a review of the state’s salary structure or pay scheme.

Executive expenses

During the debate on reintroducing the car allowance yesterday, MDP MPs suggested studying the government’s request further after summoning the finance minister.

MP Ibrahim Mohamed Solih – parliamentary group leader of the MDP – argued that it would be “irresponsible” to approve additional expenditures without scrutiny.

The proposal was however rejected by pro-government MPs after the chair said the issue had been thoroughly considered by the PAC in the previous parliament.

MDP MPs also objected to increasing expenditure on ministers while doctors and teachers were unhappy with their renumeration.

Meanwhile, a paper prepared by the parliament secretariat on expenses by the executive in 2013 was deliberated by the committee.

The paper – subsequently shared with local media – reportedly revealed that MVR913,277 (US$59,227) was spent out of the budget last year to provide the allowance to ministers under former President Dr Mohamed Waheed’s administration between April and November 2013.

The allowance was provided to the health minister, economic development minister, tourism minister, fisheries minister, defence minister, Islamic affairs minister, housing minister, youth minister, education minister, transport minister, finance minister and the attorney general.

While MDP MP Ibrahim Shareef contended that the allowance was provided in violation of public finance laws and should be investigated by parliament, MP Nihan insisted that there was no proof of wrongdoing in the document.

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Court rules in favour of Medianet in World Cup rebroadcasting dispute

The Civil Court has ruled yesterday that the Maldives Broadcasting Commission’s (MBC) order for cable TV service provider Medianet to cease airing FIFA World Cup matches on any channels except state broadcaster Television Maldives (TVM) and Villa TV (VTV) was unlawful.

Medianet had sued the commission after MBC ordered the company to halt rebroadcasting matches on channels Sony Six, Sony Six HD and Sony Pix pending an inquiry, insisting that only TVM and VTV were authorised to broadcast matches.

In its verdict, the Civil Court reportedly ruled that the commission had not followed due process and was not authorised to issue such an order under broadcasting laws and regulations.

The court’s decision came ahead of the World Cup final match last night. MBC members have since told local media that the commission was seeking legal advice before deciding whether to appeal the verdict at the High Court.

Following Medianet’s refusal to comply with the commission’s first order, MBC had issued a second order instructing the company to comply “without any conditions”. Both orders were annulled by the Civil Court ruling yesterday.

Medianet had also refused to comply with instructions from the commission to broadcast matches shown on TVM and VTV in high definition.

Medianet is currently the only cable television service provider in the Maldives.

Lobbying group

At a press conference following the verdict yesterday, Medianet Director Ahmed Nashid – opposition Maldivian Democratic Party (MDP) MP for Komandoo – contended that the commission could no longer be considered an independent institution.

A recently formed lobbying group comprised of private broadcasters was exerting undue influence over the MBC, he alleged, adding that the group had “hijacked” the commission.

The commission ordered Medianet to cease airing World Cup matches on channels except TVM and VTV a day after a meeting between the lobby group and MBC members, he noted.

Nashid further accused the MBC of participating in the lobby group’s alleged efforts to defame Medianet.

Claiming financial losses caused by the dispute, Nashid also said the company was considering suing MBC members for damages.

The lobby group meanwhile released a press statement yesterday accusing the MBC’s legal counsel of not adequately defending the commission’s stance.

The commission’s lawyer had conceded in court that the matter was under investigation and that due process was not followed, the lobby group said.

Moreover, the lawyer had not attempted to prove that Medianet deliberately misled the commission, the statement added.

Medianet had not sought authorisation in accordance with FIFA rules for rebroadcasting matches, the lobby group insisted.

MBC had maintained that Medianet’s agreement with Indian broadcaster Sony MSM was not made in accordance with Maldivian broadcasting law and that the company’s decision to charge an MVR100 fee for viewing matches on channels 100 and 100 plus was also illegal.

The FIFA World Cup was a “listed event” and Medianet had not sought authorisation to broadcast matches, MBC had said.

Moreover, the commission noted that only TVM and VTV had obtained rights to broadcast the event.

However, Nashid explained yesterday that the company had signed an agreement with Sony Six to broadcast the channel’s content for two years.

He stressed that the agreement was not limited to airing World Cup matches.

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Auditor General questions valuation of assets of state-owned enterprises

The Auditor General’s Office has questioned the valuation of assets of the Thilafushi Corporation Ltd (TCL) and State Electricity Company (STELCO) in audit reports of the state-owned enterprises for 2013.

The TCL audit report released last week explained that the Finance Ministry transferred land and buildings on Thilafushi Industrial Island to the corporation at a value of MVR12 billion (US$778 million).

“The consideration for such transfer had been made by the issue of 150,000,000 equity shares of MVR10 each issued at a premium of MVR74.13 to Ministry of Finance and Treasury,” the report stated.

Following valuation of the island and property therein by a professionally qualified party “on the basis of capitalised lease rentals to perpetuity,” the leased land was valued at MVR5,725 (US$371) per square foot.

Additionally, “land pending reclamation and lease at the time” was valued at MVR1,200 per square foot, “the reasonableness of which cannot be readily established.”

The report noted that the transaction took place between TCL and the Finance Ministry, “its sole shareholder.”

Moreover, in the “absence of a valuation adopting alternative approaches in the context that this is the first purchase of land transaction at Thilafushi,” the Auditor General’s Office was “unable to conclude whether the rates per square foot derived above are reasonable.”

The report stated that auditors were “unable to satisfy ourselves whether the land and buildings thereon and share premium shown in the balance at MVR12,618, 789,042 and MVR11,118,789,042 [US$713 million] respectively are fairly stated.”

Work in progress

The report also noted that MVR33 million (US$2 million) was paid to Heavy Load Maldives for land reclamation, which was stated in the balance sheet as capital work in progress.

However, in 2011, the company incurred a further MVR23 million (US$1.4 million) for the project, increasing the total capital work-in-progress amount to MVR61 million (US$3.9 million).

Auditors found that the MVR23 million had been “capitalised by transferring the amount from capital work-in-progress to land towards the industrial zone reclamation,” while the remaining amount had not been capitalised.

“In the absence of evidences supporting the work done for the remaining amount of MVR38,889,767, we are unable to conclude whether the company has received value for the amount paid and therefore whether the capital work-in-progress has been fairly stated,” the report concluded.

In January 2013, local media reported that TCL incurred MVR650 million (US$42 million) worth of losses as a result of Heavy Load not reclaiming the agreed 152 hectares of land within the granted six month period.

As a result of the issues flagged in the report, the audit office was “unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion,” and subsequently did not express an opinion on TCL’s financial statement.

STELCO and MPL

In the audit report of STELCO for 2013, the audit office noted that while the company’s financial statements gave “a true and fair view” of its financial position, performance and cash flow as of December 31, 2013, Auditor General Niyaz Ibrahim qualified his opinion due to questions over the valuation of assets.

The report explained that the government-owned company’s property, plant and equipment were revalued by an external valuer during 2011.

“Accordingly, the assets having net book value of MVR434,455,893 [US$28 million] as at 31 December 2011 were revalued for MVR847,932,997 [US$54 million] and a revaluation surplus of MVR413,477,104 was recognised in the books of account,” the report revealed.

However, it added, assets worth MVR26 million (US$1.6 million) were excluded from the revaluation report and “the company accounted these assets at their respective net book values based on historical cost,” which was in violation of international accounting standards.

Consequently, “in the absence of valuation of these assets,” auditors were unable to conclude that MVR15 million (US$972,762) included in the property, plant and equipment of MVR1.5 billion (US97 million) as well as a revaluation reserve of MVR314 million (US$20 million) in the balance sheet was “fairly stated.”

Meanwhile, the audit report of the Maldives Ports Ltd (MPL) for 2013 noted that the company was owed MVR13 million (US$8 million) from the dissolved Maldives National Shipping Ltd, which was a receivable that has been “outstanding for more than four years and therefore, doubtful of recovery.”

As a result, the report noted, auditors were unable to conclude “whether the amount shown under related party receivables in the statement of financial position is recoverable and [whether] the results for the year and receivables were are fairly stated.”

Auditors also found that MVR24 million (US$1.5 million) was “incurred on the construction of a tug boat for harbour operations.”

However, the construction had been discontinued since 2010 “due to a dispute with the constructor,” auditors found.

“Further, we were not allowed to access the premises of the tug boat. Hence, we are unable to satisfy ourselves regarding the physical existence and recoverability of the asset,” the report stated.

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PPM secures 43-seat parliament majority with signing of JP MP Muhamma

The ruling Progressive Party of Maldives (PPM) has secured a 43-seat simple majority of parliament with the signing of Jumhooree Party (JP) MP Mohamed Abdulla ‘Muhamma’.

The MP for Ihavandhoo and former comedian-actor handed over his membership form to President Abdulla Yameen at a ceremony in Muleeage last night.

Speaking to press at the official presidential residence, Muhamma said he had pledged to work with the government when he contested the Ihavandhoo seat through the ruling coalition, adding that it was also the wish of his constituents.

The main reason for switching to the ruling party was “the progress of President Yameen’s economic policy,” he said.

Muhamma said his work in parliament would become easier as all MPs of Haa Alif atoll were now with the PPM.

“My constituents, too, want sewerage and harbour construction and development. This can be best achieved if I work with the government in the Majlis,” he said.

Backing the MPs’ stance, President Yameen told reporters that parliamentarians were joining the PPM to “play a big role together with the government” to ensure development of their constituencies.

“The second [reason] we feel is that citizens in the atolls as well as Malé believe that political activities have been sufficiently conducted in the Maldives during the past ten years. But it has not brought about either the economic development to the country it should have or prosperity for individuals and contentment or progress for businesses,” Yameen said.

The PPM took office with the economy as the “main agenda item” or the highest priority, he added.

“So I believe that members of the People’s Majlis are joining us – and citizens are waiting patiently and supporting the government’s efforts – to give us this opportunity for five years, because they are awaiting economic development and positive changes in the country,” Yameen said.

Two former JP MPs – Milandhoo MP Hassan Mufeed Abdul Qadir and Nolhivaram MP Hussain Areef – who switched allegiance to PPM had also said they were urged by their constituents to join the ruling party to speed up development of their constituencies.

Majority

Although the PPM won 33 seats in the March 22 parliamentary elections, four out of five independent MPs, three opposition Maldivian Democratic Party (MDP) MPs, and two JP MPs have since switched to the ruling party.

With its newest member, the PPM now has 43 MPs in the 85-member house, while coalition partner Maldives Development Alliance (MDA) has five MPs.

The opposition MDP has 23 MPs while the JP’s parliamentary group is reduced to 12 MPs. The religious conservative Adhaalath Party has one MP and Madaveli MP Muaz Mohamed Rasheed remains the sole independent.

The Progressive Coalition – comprised of the PPM, JP, and MDA – contested the parliamentary polls jointly with the 85 constituencies divided among the pro-government parties.

However, the PPM severed its coalition agreement with the JP after the coalition partner’s leader, Gasim Ibrahim, ran for the post of Majlis speaker despite the PPM fielding its senior MP Abdulla Maseeh Mohamed as the ruling coalition’s candidate.

In the wake of the coalition’s breakup, President Yameen sacked Transport Minister Ameen Ibrahim and other JP political appointees, whilst cabinet ministers on slots assigned for the JP – Environment Minister Thoriq Ibrahim and Economic Development Minister Mohamed Saeed – joined the PPM.

Home Minister Umar Naseer – appointed as part of the coalition agreement with the JP – is meanwhile facing criminal prosecution on charges of disobedience to order.

Following the loss of two JP MPs last month, Gasim claimed at a press conference that the MPs had told him that the government had threatened to cease development of islands in their constituencies.

The JP leader heavily criticised the pair for allegedly reneging on an agreement signed under oath “before God Almighty” to remain in the JP until the end of their five-year terms.

Gasim said he had heard that the pair were offered MVR10 million (US$648,508) each for the transfer.

The business tycoon also claimed to have provided MVR20 million (US$1.2 million) as financial assistance to the PPM’s parliamentary campaign.

Following his third-place finish with 23.37 percent of the vote in last year’s presidential election, Gasim initially announced that the JP would remain neutral. However, the JP’s council decided to endorse Yameen against MDP candidate, former President Mohamed Nasheed, three days before the second round of the polls on November 16.

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Government proposes scrapping punishment for evading mandatory national service

The government has proposed scrapping a provision in a 1976 law that allows the president to banish or place under house arrest persons who evade mandatory national service after completing state-funded training or education at public schools.

Presenting the amendment bill (Dhivehi) on behalf of the government at today’s sitting of parliament, Progressive Party of Maldives (PPM) MP Abdulla Rifau said the provision contravened article 55 of the constitution, which states, “No person shall be imprisoned on the ground of non-fulfilment of a contractual obligation.”

Rifau also noted that according to article 16(a) of the constitution, fundamental rights and freedoms guaranteed by chapter two could only be restricted or limited to any extent “only if demonstrably justified in a free and democratic society.”

Debate

In the ensuing debate, PPM MP Mohamed ‘Kutti’ Nasheed argued that abolishing the provision would be a “cosmetic change” as it had become null and void with enactment of the new constitution in August 2008.

Advising a broader debate on national service, Nasheed noted that 80 percent of workers was employed by the government and 20 percent by the private sector when the law was passed in 1976 while the reverse was true at present.

“Our ground reality has changed while this law was on the books,” he said.

In 2013, Nasheed added, 7,623 students completed O’ Levels, out of which 3,123 students (43 percent) was eligible for A’ Levels after passing five subjects.

The number of students who completed A’ Levels in 2013 was meanwhile 1,725, he noted, of which 1,294 students (75 percent) was eligible to pursue higher education or bachelors degree.

While students who completed O’ Levels 40 years ago were forced to serve the government regardless of their grades, Nasheed said in the present day hundreds of people apply for job openings at government offices.

The 1976 law – comprised of 11 articles – requiring 80 percent of school leavers to join the civil service was therefore irrelevant today, he contended, with the exception of sections dealing with employees who refuse to return to work after completing government-sponsored higher education or training.

As the issue was not “clearcut,” Nasheed recommended “serious debate” on formulating new rules appropriate for present circumstances.

Unconstitutional

Opposition Maldivian Democratic Party (MDP) MP Abdul Gafoor Moosa meanwhile contended that the entire law should be abolished as it was unconstitutional.

The law was also in conflict with article 36 of the constitution on the right to education, which stipulates that the state should provide free primary and secondary education and ensure accessibility for higher education for all citizens.

While supporting the amendment, MDP MP Imthiyaz Fahmy, however, accused the government of seeking positive headlines to mislead the public.

Jumhooree Party (JP) MP Gasim Ibrahim recommended expediting the debate on the legislation “to save time” as there was consensus among MPs on approving the amendment. The JP leader noted that several similar amendments to laws in conflict with the constitution were before parliament.

Among other amendments submitted by the government to bring outdated laws in line with the constitution include revisions to the Immigration Act, Child Protection Act, and detention procedures.

In June, Attorney General Mohamed Anil told local media that 51 pieces of legislation will be submitted to the current session of parliament out of a legislative agenda comprised of 207 bills.

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