Author: Ahmed Naish

Committee approves amendment for state to cover expenses of president’s and vice president’s private residences

A parliamentary committee has approved amendments proposed to the law governing remuneration and benefits for the president and vice president for the state to cover expenses of the pair’s private residences.

If the president and vice president choose not to live in the official residences, the amendments stipulate that the state should provide employees and cover other expenses out of the budget allocated for the official residence.

The amendments submitted by Progressive Party of Maldives (PPM) MP Riyaz Rasheed were sent to a select committee for review following preliminary debate on March 31.

The bill was sent to committee with 29 votes in favour and 17 against with no abstentions. While pro-government MPs voted in favour, MPs of the opposition Maldivian Democratic Party (MDP) voted against the legislation.

After completing the review process in two meetings, the seven-member committee voted unanimously to send the bill (Dhivehi) without any changes to the People’s Majlis floor, where it will be put to a vote.

In addition to Riyaz Rasheed, the select committee comprised of government-aligned Jumhooree Party (JP) MPs Ilham Ahmed, Hussain Mohamed, and Ahmed Sameer along with PPM MP Moosa Zameer, Maldives Development Alliance MP Ahmed Amir, and Adhaalath Party MP Ibrahim Muttalib.

The opposition MDP was not represented in the committee.

Immediately after being sworn in on November 17, President Abdulla Yameen announced he and his vice president – Dr Mohamed Jameel Ahmed –  would be fulfilling a campaign pledge of only taking half of the MVR100,000 (US$6500) salary afforded to the head of state.

“The reason behind this is that Dr Jameel and I both live a simple life. No matter what has been said about us we are not wealthy. We want to be an example to others and lead by example,” Yameen said.

After assuming office, President Yameen announced that he would continue to live in his private residence while Dr Jameel moved into the official vice presidential residence, Hilaaleege.

However, despite Yameen’s decision, the budget allocated for the official residence was increased by MVR2 million (US$130,208) in the state budget for 2014 – rising to MVR19.1 million (US$1.2 million).

In December last year, Parliament’s Budget Review Committee Chair Gasim Ibrahim – leader of the JP – said the increased budget was necessary in case the president decides to move to Muleeage.

Highlighting the increased budget for Muleeage at the time, MDP Spokesperson Hamid Abdul Ghafoor described Yameen’s decision to live in his personal house as a “symbolic act.”

“Unlike in the past, even media points out inconsistencies in what leaders say and what reality presents these days. I do not believe the public will be deluded about any of this,” Hamid said.

“While Yameen might have thought his decision will get people thinking that he is a humble man, reality is that ultimately, the state is having to spend much more of its funds to maintain this decision of his. People are much more aware now than in previous PPM times. People can see he’s just trying to score political points.”

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Night market contract terminated, ACC informs city council

The Anti-Corruption Commission (ACC) has informed Malé City Council that its agreement with Go Media Pvt Ltd for organising the annual night market in the capital was terminated last year.

In a press release yesterday, the commission noted that it had been informed by the previous city council on November 21 that the five-year contract with Go Media had been invalidated.

The ACC press statement comes after Go Media announced that this year’s night market will be held from May 1 to 10 at the tsunami memorial area with 460 tables and 62 tents.

Go Media General Manager Ibrahim Amir told local media that the company had not been informed of the termination, suggesting that this could only be done by a court following litigation.

The ACC has yesterday noted that it had received a copy of a letter sent to Go Media by the city council informing the company of the contract termination.

“And the council has been told that the commission believes that going ahead with the terminated contract would be unduly benefiting a particular party,” the statement read.

Go Media’s Amir revealed that 85 percent of stalls had been sold already, noting that preparations for the market were ongoing with the city council’s authorisation.

Mayor Mohamed Shihab meanwhile told the press that the night market will go ahead as scheduled as the council has not been ordered by any state institution to terminate the agreement.

The new council’s stance was to honour agreements entered into by the previous council, Shihab said, contending that the council could be sued if it terminated contracts on its own accord.

Shihab said, however, that the council would comply with instructions from relevant authorities to cancel any agreement.

“I am surprised that the ACC has not told us to terminate the agreement if there was corruption involved,” he was quoted as saying by newspaper Haveeru.

The mayor was unavailable for comment today.

Corruption

Earlier this month, the ACC asked the Prosecutor General’s (PG) office to press corruption charges against three ex-councillors as well as three senior staff over alleged abuse of authority in the awarding of the contract to Go Media.

Following an investigation – prompted by a complaint filed in March 2013 alleging corruption in the bidding process –  the ACC found that Go Media Pvt Ltd was registered eight days before the city council’s announcement seeking a party to organise the night market.

However, the council awarded full marks to the company for experience during its bid evaluation process, the ACC revealed.

While the committee that evaluated the proposal determined that Go Media’s team had experience in organising such events, the ACC noted that the company did not submit any documentation as proof of experience.

Moreover, the council’s request for information document did not state that marks would be awarded for experience.

Of the three ex-councillors facing corruption charges, Ibrahim Shujau and Ahmed Hameed ‘Fly’ were elected on Dhivehi Rayyithunge Party tickets in 2011 before defecting to the Maldivian Democratic Party (MDP) and the Jumhooree Party, respectively.

The third ex-councillor – former Deputy Mayor Ahmed Samah Rasheed – was elected on an MDP ticket.

Shujau meanwhile contested in last month’s parliamentary elections as the MDP’s candidate for the Galolhu South constituency, losing to incumbent MP Ahmed Mahloof.

None of the 11 councillors of the Male’ City Council elected in February 2011 were re-elected in the second local council elections that took place on January 18.

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Man found dead on April 1 tested positive for opiates

A 24-year-old man found dead in Henveiru Annaarumaage on April 1 less than 24 hours after his release from rehab tested positive for opiates, police have revealed.

“Analysis shows that there was a high concentration of the drugs opium and benzodiazepine in the youth’s urine,” police said in a statement yesterday.

Police media officials were not responding to calls at the time of press to confirm whether a heroin overdose has been established as the cause of death.

Local media identified the deceased last week as Mohamed Rashad from the island of Kulhudhufushi in Haa Dhaal atoll.

According to Rashad’s family, he was released from the rehabilitation centre in Himmafushi the day before his death.

“Mohamed was released yesterday, and he was staying with a friend at Annaarumaage until the community centre could make arrangements,” Rashad’s uncle was quoted as saying by Sun Online.

“His friend was there when I went to the house, who told me that Mohamed was still sleeping when he woke up. When we went and checked, he was dead.”

National Drug Agency (NDA) CEO Ahmed Muneer explained to the online news outlet that patients undergoing community treatment upon release from rehab were required to attend several classes.

Recovering addicts were required to stay in Malé until the process could be completed, Muneer said.

He also denied the family’s claim that they were not informed by the NDA of Rashad’s release.

Spiked

Speaking at a ceremony held on Thursday to mark the second anniversary of the Drug Court, Acting Chief Judge Mahaz Ali expressed concern with the rehabilitation facilities available in the Maldives.

The NDA informed the Drug Court in April last year that all rehabilitation centres in the country were at full capacity, Mahaz revealed.

The main community centre in Malé was at full capacity at the start of this month, he continued, and could not accept more patients.

Since its formation in January 2012 with the enactment of the new Drugs Act, Mahaz said that 93 drug offenders had completed the court-mandated rehabilitation programme.

Of the 93 recovering addicts, Mahaz noted that only eight had been arrested again.

In March 2009, Minivan News reported the death of five drug addicts from overdose or suicide in the space of one month.

Four out of the five addicts had received treatment at the rehabilitation centre in Himmafushi.

Police revealed at the time that a forensic examination of confiscated drugs showed that heroin sold on the streets was laced with benzodiazepine, a class of psychoactive drugs.

The combination of benzodiazepine with opiates is known to lead to coma and even death.

According to local NGO Journey, about 95 per cent of addicts who seek rehabilitation in the country relapse into drug use.

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Tourist arrivals rose six percent in February

Tourist arrivals in February increased by five percent from the previous month and six percent in annual terms, according to the Maldives Monetary Authority’s (MMA) latest monthly economic review.

“The annual increase was due to the rise in the number of arrivals from Asia and Europe,” the central bank’s monthly report noted.

While total bed nights in February rose five percent compared to the same period last year, the occupancy rate rose three percent from February 2013 to 89 percent this year.

The average duration of stay however “declined marginally in annual terms during the review period,” the report stated.

The MMA had previously revealed that tourist arrivals rose 17 percent in 2013 compared to the previous year “mainly due to the large increase in tourist arrivals from China, coupled with a slight growth in arrivals from Europe.”

Statistics from the Tourism Ministry show that 331,719 Chinese tourists visited the Maldives last year, which was a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

In November 2013, the Finance Ministry revealed that the tourism industry’s GDP growth in 2012 declined by 0.1 percent following 15.8 percent growth in 2010 and 9.2 percent in 2011.

Despite negative growth in 2012, the Finance Ministry estimated that the industry would have expanded 5.5 percent in 2013 and forecast a growth rate of 5.2 percent for this year.

The average duration of stay has however fallen from 8.6 days in 2009 to 6.7 days in 2012, and 6.3 days in 2013.

According to the annual tourism yearbook published by the Tourism Ministry, the average occupancy rate of all tourist establishments in 2012 was 2.5 percent below the previous year at 70.6 percent.

The Maldivian economy is largely dependent on tourism, which accounted for 28 percent of GDP on average in the past five years, and generated 38 percent of government revenue in 2012.

Meanwhile, in the second largest industry, the volume of fish exports increased by nine percent in February compared to the previous year “largely contributed by the increase in the volume of fresh, chilled or frozen tuna exports.”

“However, earnings from fish exports declined by 25 percent during the same period, due to the fall in both the volume and earnings from canned or pouched tuna exports,” the review revealed.

“Additionally, earnings from yellow fin tuna exports also declined during this period compared to 2013.”

The rate of inflation – measured by the annual percentage change in the consumer price index in Malé – rose to 3.4 percent in February from 2.6 percent in January.

“This was largely due to the increase in fish prices,” the report explained.

“Similarly, the rate of inflation increased in monthly terms during February 2014, which was also due to the rise in fish prices.”

Public finance

The economic review noted that government expenditure “more than doubled” in January to MVR1.9 billion compared to the same period last year.

Total revenue fell by 11 percent to MVR1 billion “largely due to the 27 percent decline in business profit tax (BPT) [receipts].”

“Additionally, non-tax revenue also fell, owing to the significant decline in resort lease rent. As for the increase in expenditure, it was mainly due to the increase in subsidy payments,” the report stated.

As a result of “increased investments in T-bills by commercial banks, other financial corporations and public non-financial corporations,” the review noted that the total outstanding stock of government securities – treasury bills and bonds – rose nine percent in annual terms and 10 percent in monthly terms during February.

The trade deficit meanwhile narrowed by 29 percent during February compared to the previous year.

“This was due to the significant decline of 26 percent in imports which off set the 16 percent decline in exports. The decline in imports was contributed by the fall in petroleum products,” the report explained.

“Gross international reserves increased in both monthly and annual terms by 2 percent and 13 percent respectively and reached US$391.1 million at the end of February 2014. Reserves in terms of months of imports also rose in both monthly and annual terms to 2.7 months at the end of the same period.”

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MDP seeking public opinion over party reform

The opposition Maldivian Democratic Party (MDP) has invited its members and the general public to submit suggestions and ideas for reforming and restructuring the party in the wake of electoral defeats in the presidential and parliamentary elections.

The party’s national council last week voted to form a three-member committee to study a reform paper (Dhivehi) submitted by a group of members and collect opinions and ideas for reform.

At a press conference on Thursday, the committee – comprised of MDP Youth Wing Leader Aminath Shauna along with Ali Niyaz and Ahmed Mujthaba – announced that it would be accepting suggestions for a two-week period.

Party members were invited to submit a form (Dhivehi) either to the party office or [email protected].

Alternately, members could use the #tellmdp hashtag of social media or visit the secretariat office in Malé between 11:00pm and 1:00pm and 3:00pm and 4:00pm on weekdays to share their views in person.

Speaking at Thursday’s press conference, Youth Wing Leader Shauna assured members that the committee would not censor or amend any suggestions.

At the end of the two-week period, she said, the committee would compile a report and submit it to the national council.

Shauna noted that the committee also welcomed opinions and ideas from members of the general public who were not registered MDP members.

Niyaz explained that while some suggestions could be approved by the national council by adopting resolutions, other reforms would have to be passed at the next national congress.

The national council decided last week to hold the party’s congress on June 6 and 7. The last congress took place in October 2010.

Among the ideas shared on social media so far, supporters have suggested clearly delineating the role of the chairperson and president or abolishing one of the posts, strengthening the administration of internal elections and primaries to ensure fairness and transparency, improving engagement with the media and increasing involvement of youth.

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President reveals vision for foreign investment at Hulhumalé project launch

President Abdulla Yameen inaugurated a project yesterday for the construction of 3,000 housing units in Hulhumalé by a joint venture company, Sealife Global Inc – formed by two Dubai companies with a local partner.

Speaking at the groundbreaking ceremony, President Yameen said his administration’s vision was to develop a “youth village” in Hulhumalé with a population of 50,000 people.

“The youth village will not involve only housing [projects]. It will also include other projects related to the youth village such as the creation of light industries to provide job opportunities, as well as arrangements for food and beverages required by modern youth and restaurant facilities for [fast food],” he said.

Yameen said he hoped the government would be able to realise this vision during its five-year term.

During the launch, Yameen also outlined his vision for “freeholds” for foreign investors who will feel the Maldives to be a “second home” in which to conduct long-term projects.

The vision for the youth city meanwhile includes a “technopolis park” as well as entertainment and sports facilities, he said, in addition to facilities for the tourism and fisheries industries.

The government would also prioritise the inclusion of housing projects in Malé and Hulhumalé as the corporate social responsibility (CSR) component when leasing islands for resort development, Yameen said.

Hulhumalé will become “a paradise on earth” for migrants from across the country, he said.

The construction of a bridge between Malé and Hulhumalé would further open up economic opportunities in the reclaimed island city, Yameen said.

In February, Economic Development Minister Mohamed Saeed pledged to complete the bridge project in two years.

Plans of the Housing Development Corporation (HDC) for the second phase of Hulhumalé development were also being revised to achieve the new administration’s goals, Yameen said, which included providing affordable housing to residents of the capital without adequate shelter.

“Any government upon assuming office will attempt to make the best use of a country’s resources. Everything is subject to change. Charts will change when they are redrawn,” he said.

The 243 flats – ranging from one to four bedroom apartments – to be constructed in the first phase of the new project will be targeted to mid to high-income families, explained Sealife Global’s Managing Director Ahmed Moosa.

The six towers or 10 to 12-storey buildings will include other facilities and services such as a swimming pool and gymnasium, he added. The joint venture company would also construct a 12-storey office complex on the site.

“Adventurous path”

Addressing foreign guests in English, President Yameen said he was pleased to “see you actively engaged in our socio-economic development.”

“I hope this project is going to be rewarding in terms of both profitability as well as catering to the need of the Maldivian people,” he added.

The government was committed to “improving the well-being of Maldivian youth,” he continued, adding that youth were presently deprived of the “opportunity to be gainfully employed and also the opportunity of shelter.”

The government therefore welcomes any project that caters to these “dual needs,” he said.

“We are embarking on a very adventurous path at this point in time,” he said, noting that economic development was essential for maintaining the current environment of peace and stability.

“What we would like to confirm for the foreign investors who come to the Maldives is that foreign investors should feel that Maldives is your second home here,” he said, adding that “a landmark law” will be passed in the next Majlis to strengthen the foreign investment regime.

“We are going to open up the Maldives in a huge way to foreign investors. Our thirst cannot be quenched. The opportunity to foreign investors is going to be enormous. So have faith and trust in us,” Yameen said.

Legislation will also be proposed to the next parliament to create special economic zones, he continued, which would be “likened to cities in Dubai or the Emirates” and “the [business] environment we have in Singapore.”

The new laws would enable investors to have “freeholds” in the country and allow investors “to engage in really, really long gestative projects,” he said.

Yameen assured foreign investors that “your money is safe with us.”

“So I reach out to proprietors and investors in Dubai, in Abu Dhabi, in Qatar and also the Emirates – please, here you have an island, here you have a country where you can invest and where you can be content with your investments,” he said.

“We are embarking on an era of growth,” he said, adding that 52 percent of the country’s population was comprised of young people.

Yameen noted that Hulhumale’ was a vision of former President Maumoon Abdul Gayoom.

“He wanted to find breathing space for the overly congested people in Malé. Nobody at that time would have thought that Hulhumalé is going to be the city it is now. There is tremendous opportunity in Maldives and there is tremendous love in us for the Arab-Muslim entrepreneurs. So please come and invest in the Maldives,” he entreated.

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ACC seeks prosecutions over Malé City night market contract

The Anti-Corruption Commission (ACC) has asked the Prosecutor General’s (PG) office to press corruption charges against three former Malé City councillors in relation to the 2013 night market.

In addition to former councillors Ibrahim Shuja, Ahmed Hameed ‘Fly’, and Ahmed Samah Rasheed, the ACC asked the PG office to press charges against the council’s Assistant Directors Aishath Jumana Mohamed Rasheed and Ahmed Mizhath Naeem.

The three ex-councillors and senior staff are accused of corruption in the awarding of a contract to Go Media Pvt Ltd to manage last year’s night market. The market is held annually before Ramazan, usually on the south eastern side of the capital island.

In a letter to Malé City Mayor Mohamed Shihab – shared with local media – the ACC explained that Go Media Pvt Ltd was registered eight days before the city council’s announcement seeking a party to organise the night market.

However, the council awarded full marks to the company for experience during its bid evaluation process, the ACC revealed.

While the committee that evaluated the proposal determined that Go Media’s team had experience in organising such events, the ACC noted that the company did not submit any documentation as proof of experience.

Moreover, the council’s request for information document did not state that marks would be awarded for experience.

The two assistant directors were on the committee that evaluated the proposal.

Based on its findings, the ACC concluded that the contract was awarded fraudulently for the benefit of a third party.

The ACC also asked the PG office to prosecute Malé City Council Secretary General Mohamed Anwar as the agreement signed with Go Media included provisions that were not included in the council’s announcement.

Of the three ex-councillors facing corruption charges, Shujau and Hameed were elected on Dhivehi Rayyithunge Party tickets in 2011 before defecting to the Maldivian Democratic Party (MDP) and he Jumhooree Party, respectively. Former Deputy Mayor Samah was elected on an MDP ticket.

Shujau meanwhile contested in last month’s parliamentary elections as the MDP’s candidate for the Galolhu South constituency, losing to incumbent MP Ahmed Mahloof.

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Anti-money laundering and combating financing of terrorism bill passed

Parliament yesterday passed legislation on anti-money laundering and combating the financing of terrorism (AML/CFT) following review by the national security committee.

All 53 MPs in attendance at yesterday’s sitting voted in favour of passing the bill.

Presenting the committee report (Dhivehi) to the Majlis floor, MP ‘Reeko’ Moosa Manik, chair of the national security committee, explained that the legislation introduces rules governing financial transactions and the inflow and outflow of money from the Maldives.

The bill will also address the persisting dollar shortage, the foreign currency black market, and counterfeiting of dollars, Moosa added.

Moreover, a limit would be placed on the amount of cash that can be taken out of the country, which has to be declared to customs, the opposition Maldivian Democratic Party MP said.

The new law would also benefit investors as it would inspire confidence in the legal system and offer security to foreign investments, Moosa said.

In the ensuing debate, Jumhooree Party Leader Gasim Ibrahim contended that the parallel market for dollars sprang up as a result of the Maldives Monetary Authority (MMA) not allowing the price of dollars to fluctuate.

Gasim suggested that the economy suffered adverse effects due to discrepancies between monetary and fiscal policy.

“Negative consequences”

Moosa noted that noted that a high-level delegation from the Asia/Pacific Group on Money Laundering (APG) had urged MPs to expedite the passage of the legislation.

MPs were warned of “negative consequences” such as restrictions in conducting international financial transactions and credit card transactions as well as transferring money to overseas bank accounts should the bill not be passed before June.

In a meeting with committee members in February, APG Co-chair Andrew Colvin warned that the organisation along with the Financial Action Task Force (FATF) “would be left with little option but to take certain measures that would be negative for the Maldives” should the legislation not be passed.

APG Executive Secretary Dr Gordon Hook noted that implementing AML/CFT laws was “an obligation that the Maldives undertook voluntarily when you joined the APG in 2008″ as a condition of membership.

“There are 41 countries in the APG. They include every country in the Asia/Pacific region with the exception of North Korea and three tiny Pacific states. Among those 41 countries of which Maldives is a member, you are the only country without a comprehensive AML/CFT framework,” he observed.

The anti-money laundering bill was submitted to parliament in late 2013 and sent to the national security committee for further review.

The absence of legislation “makes Maldives very vulnerable to money laundering and terrorist financing,” Dr Hook said.

He added that the vulnerabilities were identified by the International Monetary Fund (IMF) in a report prepared in 2011.

MMA Assistant Governor Neeza Imad meanwhile told MPs that the Maldives received a very low rating in an assessment by the APG in 2011, after which the central bank began drafting legislation on AML/CFT.

Technical assistance was provided by the APG and the IMF, she noted.

Countries that are listed by the APG for non-compliance with its standards on AML/CFT face “hindrances” in securing foreign direct investment, opening accounts overseas, and conducting international financial transactions, Neeza said.

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President Yameen grants clemency to 169 convicts

President Abdulla Yameen has granted clemency yesterday to 169 convicts serving banishment, house arrest, or jail sentences.

According to the President’s Office, Yameen granted pardons or commuted sentences in accordance with Article 29 of the Clemency Act.

Some 116 individuals were released on parole with conditions following consideration of “age, health, type of medical treatment, time and circumstance, compassion, and behaviour,” the President’s Office revealed in a statement.

Convicts sentenced for drug abuse would be required to complete rehabilitation programmes, the statement noted.

Moreover, released inmates would be returned to jail to serve out the remainder of their sentences if they violate parole or commit a crime.

Persons convicted of murder, a crime with a punishment (hadd) prescribed in Islamic Shariah, terrorism, child sexual abuse, sexual assault or rape, and homosexuality were not among the 169 released convicts, the President’s Office said.

“In addition to the above-mentioned [exceptions], sentences were commuted based on records from the Maldives Police Service without including persons who could pose a threat to society’s safety and security,” the statement read.

It added that President Yameen had announced his intention to release prisoners at a campaign rally in Fuvahmulah last month.

Home Minister Umar Naseer told Minivan News in the wake of President Yameen’s announcement that the release of inmates would not present any difficulties to ongoing efforts to combat drug trafficking.

“It will not be a hindrance because the present Clemency Act prevents serious offenders from being released. Furthermore, this process will be monitored by the Home Ministry,” he said.

President Yameen also commuted the sentences of 24 inmates in January while his predecessor Dr Mohamed Waheed released 39 convicts during his last days in office.

Article 115 of the constitution states that the president has the authority “to grant pardons or reductions of sentence as provided by law, to persons convicted of a criminal offence who have no further right of appeal.”

On January 9, police cleared or expunged criminal records of 1,023 young persons who were arrested for various criminal offences, as part of the government’s pledge to facilitate youth employment.

“Political stunt”

Following President Yameen’s announcement last month, opposition Maldivian Democratic Party (MDP) Spokesperson Imthiyaz Fahmy described the move as “a very irresponsible political stunt”.

“This is a stunt they are pulling off as elections approach – an act without any form or structure. This is a stunt like they used to pull during the Gayoom administration – as every election nears, they’ll let out numerous prisoners and the streets will be teeming with drug abusers,” the Maafanu North MP said.

Fahmy also defended the release of convicts under the MDP government’s ‘Second Chance Programme,’ which he stressed was “a structured effort, under which applicable prisoners were released under parole to be under the guardianship of a family member.”

“They were given training in various skills and were provided with employment opportunities. They were monitored constantly and were taken back in when there is a risk of re-offending crimes.”

“Yameen and the people around him were those who most criticised our ‘Second Chance Programme’. And now look at what they are attempting to do. This clemency plan has no structure and will prove detrimental to the society,” he said.

Vice President Dr Mohamed Jameel Ahmed – who served as Home Minister during the Waheed administration – shut down the ‘Second Chance Programme’ in March 2012, alleging that the MDP government had used it to “release unqualified criminals under political influence and without any clear procedure”.

In July 2012, Jameel blamed a “surge in crime” partly on the ‘Second Chance Programme’, claiming that over 200 convicted criminals released under the scheme had been returned to prison for re-offending.

Jameel also published a comment piece in newspaper Haveeru in September 2011 criticising the programme and emphasising the importance of granting clemency in accordance with the Clemency Act.

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