Majlis elections: “Money politics threatens to hijack democratic process”, says Transparency Maldives

Yesterday’s parliamentary elections were well-administered and transparent “but wider issues of money politics threatens to hijack [the] democratic process,” NGO Transparency Maldives (TM) has said in its preliminary statement on the Majlis polls.

TM revealed that a survey conducted prior to last year’s presidential election showed that 15 percent of respondents had been offered “money or other incentives” in exchange for their vote.

“Admissions about illegal activities such as this are usually underreported in surveys. TM’s long-term observation indicates that vote buying may be even more widespread in the parliamentary elections than other elections,” the statement read.

“Inability of state institutions to prosecute vote buying due to gaps in the electoral legal framework, lack of coordination, and buck-passing between the relevant institutions have allowed rampant vote buying to go unchecked.”

The NGO recommended that vote buying should be monitored, investigated and prosecuted “through implementation of the existing legal provisions” in addition to parliament considering “urgent reforms to the laws to better address the issue.”

While voting was ongoing yesterday, police arrested an individual near a polling station for allegedly distributing cash.

Police also revealed two days before the polls that it was increasingly receiving reports of vote buying.

Cash and gifts were allegedly being handed out on behalf of candidates for parliament, police said.

Meanwhile, speaking at a press conference today, Tourism Minister Ahmed Adeeb – deputy leader of the ruling Progressive Party of Maldives – categorically denied allegations that candidates representing the Progressive Coalition bought votes.

Coalition supporters have submitted complaints “with photo and video as proof” to the Elections Commission (EC) about the opposition Maldivian Democratic Party distributing cash for votes, Adeeb alleged.

Campaign finance reform

TM also noted a lack of transparency in political and campaign financing ahead of elections, which was exacerbated by “deep flaws in the standards, practices and poor oversight”.

“When political parties and individual candidates do not fully disclose where they get their money from, it is not clear who funds them, what their potential conflict of interests are, and, thereby allows vested interests to override public interest when elected as MPs,” TM observed.

It added that Transparency International’s Global Corruption Barometer surveys for the Maldives “continue to indicate a crisis of public trust in the parliament.”

“Increasing campaign financing transparency in parliamentary elections is crucial to hold parliamentarians to account, in order to prevent the hijack of the institution by vested interests and regain public trust in the parliament,” the statement read.

In addition to identifying and addressing “the gaps in the electoral legal framework,” the NGO recommended “implementation of existing provisions to facilitate public scrutiny, ensure periodic reporting and an effective oversight mechanism for political finance.”

Among other issues that the NGO highlighted included the abuse of state resources “by successive regimes,” which allows campaigning on public funds, and lack of effective longterm voter and civic education.

TM also noted “uncertainties arising from the role of the judiciary in elections,” suggesting that the 16-point guideline imposed on the EC by the Supreme Court last year did not “improve upon the technical aspects of the election”.

Polling

TM observed that yesterday’s polls were peaceful, transparent and generally well-administered “with just one reported incident of violence inside a polling station.”

Among the NGO’s key findings from its observation of the voting process, TM noted that 83.52 percent of polling stations closed within the first hour of the normal closing time of 4:00pm and that the eligible voter registry was “overall very clean, with a very few cases where people were not able to vote because their names were not on the voter registry or their details did not match.”

Candidates from the opposition MDP were represented at 89.4 percent of polling stations and coalition parties at 88.8 percent, the statement noted.

“Unresolved disputes were reported at only 5.3 percent ballot boxes at the time of announcing results,” it added.

TM noted that voting was temporarily halted in 2.4 percent of polling stations, of which 75 percent were “interventions at the direction of the Presiding Officer while 25 percent were interventions by an unruly voter.”

“We note that the police entered 12.35 percent of polling stations. However, in 100 percent of such cases, interventions occurred at the invitation of the Presiding Officer as the rules allow.”

Meanwhile, according to the EC, a total of 115 complaints were submitted in writing to the national complaints bureau, including 18 concerning the voter registry and 33 complaints regarding negative campaigning, behaviour of election officials, and campaigning during polling hours.

In addition, 59 complaints were made via telephone, EC member Ali Mohamed Manik revealed at a press conference last night.

Manik explained that the complaints would be addressed before preliminary results are announced today.

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Government owed over MVR250 million in unpaid dividends, audit reveals

The government is owed MVR256.9 million (US$16.6 million) in unpaid dividends from state-owned enterprises, the audit report of the Ministry of Finance and Treasury for 2012 has revealed.

In the report (Dhivehi) made public yesterday, Auditor General Niyaz Ibrahim recommended collecting the dividends within a period of one month.

The unpaid dividends include MVR5.1 million (US$330,739) owed by Island Aviation Services, MVR78.9 million (US$5.1 million) owed by the Malé Water and Sewerage Company, MVR167.8 million (US$10.8 million) owed by the State Trading Organisation (STO), and MVR5 million (US$324,24) owed by the Maldives Transport and Contracting Company (MTCC).

The auditor general also recommended regularly monitoring the finances of government-owned companies, seeking audited financial statements within six months of the end of the financial year, and collecting dividends without delay.

While the ministry was required to submit a consolidated financial statement for 2012 inclusive of the departments operating under its remit, the report noted that the ministry prepared separate statements for itself and the departments.

Moreover, the annual financial statements did not include details of loans and foreign aid, the report stated.

As the auditor general was therefore unable to offer his professional opinion on the financial statements for 2012, he recommended taking action against the responsible financial officer under articles 47 and 48 of the Public Finance Act for the lapse.

Highlighted cases

Among other issues flagged in the report, auditors found that the Finance Ministry spent MVR858.5 million (US$55.6 million) out of the budget code assigned for providing capital to government-owned corporations.

The funds were released in violation of the constitution, the Public Finance Act, and regulations under the law, the report stated.

Article 96(c) of the constitution states, “No supplementary expenditures shall be added to an approved budget without further approval by the People’s Majlis. Expenditures included in the budget shall be applied solely for the specified purpose.”

The funds earmarked for capital expenditures of government-owned corporations in the 2012 state budget was MVR30.4 million (US$1.9 million), the report noted.

Of the funds released as capital for government-owned companies, auditors discovered that MVR840.6 million (US$54.5 million) was used to pay salaries for board members and staff and to cover other recurrent expenditures.

The ministry’s actions defeated the purpose of allocating funds for specified expenditures in the budget, the report stated.

As state-owned enterprises were not required to comply with public finance regulations, the report warned that releasing the funds could be “wasteful” or “facilitate corruption” in the absence of a mechanism for holding senior officials of the companies accountable for expenses.

Moreover, falsely including such a large amount of money as capital expenditures in the annual financial statement was “a serious deception,” which casts doubt on validity of the statement, the report noted.

The auditor general recommended taking legal action against the officials responsible for authorising the release of funds to the state-owned enterprises, which included health corporations, utility companies, regional airport companies, the Bank of Maldives, the State Electricity Company, STO, MTCC, Aasandha, and Fuel Supply Maldives.

The auditor general also cautioned against corporatisation of government services without assessing feasibility and determining financial and administrative challenges.

Abuse of authority

In another case highlighted in the report, auditors were unable to verify whether MVR254,898 (US$16,530) worth of expenses for overseas trips by senior officials were made for state purposes.

The Finance Ministry refused to share documents related to the trips “despite repeated requests,” the report stated.

The auditor general recommended that the expenses should be further investigated by the Anti-Corruption Commission.

Auditors also discovered that the Finance Ministry purchased a number of items without a bidding process in violation of public finance regulations, which requires a public tender for procurement of items worth MVR25,000 (US$1,621) or higher.

The items included a Macbook Air, two coffee machines, an air-conditioner, eight computer systems, and one iPad.

Meanwhile, in November 2012, a senior project officer at the Ministry of Home Affairs was hired as a consultant for the Finance Ministry to formulate projects for a period of two months.

While an announcement seeking a consultant was made on November 18 and an employment contract was signed on November 21, auditors found that the consultant began working at the ministry on November 12.

Auditors could not find any documents showing that the consultant worked on the projects during the contract period.

Moreover, in December 2012, Finance Minister Abdulla Jihad asked the ministry’s human resource committee to create a post for a project designer at the minister’s bureau.

The Civil Service Commission (CSC) was requested to create the post on December 24 despite misgivings of members on the human resource committee, the report stated.

When the job announcement for the ‘director project designing’ was made on December 27, the report noted that only one person applied for the post.

The interested candidate was the same individual previously hired as a consultant, the report revealed.

The unnamed individual was appointed to the post on January 28.

The auditor general recommended that the case should be investigated by the ACC as the hiring of the consultant constituted abuse of authority to benefit a third party.

Finance Minister Jihad – who was appointed to the post in February 2012 following the controversial transfer of presidential power – has meanwhile denied the allegations in local media.

Jihad told newspaper Haveeru that the project director post in question was a civil service job, over which he did not have hiring or firing powers.

“It is done in accordance with the rules by the relevant officials at the ministry. I don’t get involved in such matters. The auditor general releasing such a report is very irresponsible,” he was quoted as saying.

Jihad has also previously criticised the auditor general over a report released in December which concluded that an MVR300 million loan was secured in 2012 from the Bank of Maldives in violation of public finance laws.

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Supreme Court gives green light for Majlis polls despite missing candidate signatures

The Supreme Court has advised the Elections Commission (EC) that Saturday’s parliamentary elections can go ahead despite 16 independent candidates not signing voter lists for 13 electoral constituencies.

The court advised that candidates refusing to sign voter lists during the period offered by the commission without raising any concerns through the official complaints mechanism “would not be an obstacle” to conducting the polls, the EC said in a press release today.

“Therefore, the Elections Commission has decided that the 18th parliamentary election will be held as scheduled on Saturday, March 22, 2014,” the press release stated.

The EC sought counsel from the apex court this week after 16 out of 114 independent candidates did not sign the voter lists. All 188 candidates representing political parties had signed the lists by noon on Sunday.

Obtaining signatures of candidates on the voter lists used at polling stations was among the 16-point guideline imposed on the EC by the Supreme Court in its judgment annulling the first round of the presidential election held on September 7 last year.

A revote ordered by the Supreme Court for October 19 was obstructed by the police hours before polls were due to open after Progressive Party of Maldives candidate Abdulla Yameen and Jumhooree Party candidate Gasim Ibrahim refused to sign the voter lists.

On the morning of October 19, police officers prevented EC staff from taking any election-related documents out of the commission’s office.

The police commissioner then informed EC members that the Maldives Police Service would not support an election held in contravention of the Supreme Court guidelines.

The Supreme Court however advised the EC yesterday that submitting complaints regarding the eligible voters registry during the window offered by the commission was the “legal responsibility” of candidates.

A candidate refusing to sign the voter list without officially lodging complaints would not affect either the legitimacy of the election or decisions made by the EC, the Supreme Court stated.

None of the 16 independent candidates who have yet to sign off on the voter lists have reportedly submitted any complaints.

The Attorney General has meanwhile advised police to cooperate with the EC in conducting the polls despite the 16 missing signatures.

The local council elections on January 18 also took place as scheduled despite candidates signing voter lists for just 81 out of 464 ballot boxes.

Of 543 independent candidates, only 147 candidates had signed the lists.

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Nasheed “slaughtered” democracy: Gayoom

The Maldivian people saw “democracy being slaughtered” during the administration of former President Mohamed Nasheed, former President Maumoon Abdul Gayoom reportedly said last night at a ‘Progressive Coalition’ campaign rally in Malé.

“During those three and a half years, things reached the point where we feared Islam could disappear from the country. It reached a state where we feared we might lose our independence,” the Progressive Party of Maldives (PPM) leader and figurehead said.

“We saw the economy devastated, ruined and fall into a deep pit. We also saw democracy being slaughtered.”

The Maldivian Democratic Party (MDP) government “hijacked” the People’s Majlis, locked the Supreme Court, detained a sitting judge, and arrested politicians “in the name of democracy” during its three years in office, Gayoom contended.

“We saw many such inhumane and undemocratic actions,” he added.

Gayoom also criticised Nasheed for resigning on February 7, 2012 halfway into his five-year presidential term.

The country has faced “more difficult, burdensome, sad and tragic events” in its history than the circumstances that led to Nasheed’s resignation, Gayoom continued, but leaders had not stepped down “for the sake of the nation and religion.”

Referring to the failed coup attempt on November 3, 1988 by Tamil mercenaries, Gayoom noted that no senior government official resigned despite threats to their lives.

“They did not go home. They stayed resolute,” he said.

Gayoom urged voters to choose pro-government candidates in the March 22 parliamentary polls to ensure that the PPM-led coalition government secures a majority of parliamentary seats, which he contended was necessary to carry out development projects and implement policies.

“The cooperation of the People’s Majlis can be assured by the Progressive Coalition securing a majority,” he said.

“The tree called MDP”

The opposition MDP has meanwhile been campaigning on a platform of reforming the judiciaryempowering local councils, and consolidating democracy.

In a speech at a campaign rally in Malé last week, Nasheed contended that Gayoom had retained his influence over the judiciary when sitting judges – the vast majority of whom were appointed during Gayoom’s 30-year reign – were controversially reappointed en masse in August 2010.

Nasheed entreated voters to study the recent past of the Maldives and consider current trends, suggesting that “you certainly don’t need to be an expert to know what could happen to this country in light of that.”

“The country is being rolled back to autocratic rule. President Maumoon is taking one step after another down that path,” he said.

Gayoom’s longstanding opposition to allowing political parties in the Maldives was elucidated on page 123 of his biography, “A Man for All Islands,” Nasheed said.

“I want to ask you, are you really confused about who President Maumoon is? Are you really going to accept him today as a man of democratic principles who loves freedom? What I want to tell the people of Malé is, don’t let yourself be stung twice from the same burrow,” he said.

Meanwhile, speaking at a rally in Baa Eydhafushi last night, Nasheed said the MDP’s objective was securing financial independence for local councils.

Councils should be able to generate revenue from publicly-owned land in the island as well as nearby uninhabited islands, he said, which would enable councils to undertake infrastructure projects.

“Our pledge is not having to make any more pledges. God willing, we will provide the [financial] wherewithal for you to fulfil your own pledges,” he said.

He added that the MDP was the only party pledging to reform the judiciary.

“I want to tell other candidates, and the many candidates participating in this election – this tree called MDP has not yet blossomed. It has to be watered. It is not yet time to cling to it and spread vines under its shade. We have to let this tree grow.”

“I won’t talk about this in the next election. God willing, by then our political system will have matured,” he said.

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EC members Manik, Farooq summoned for questioning by police

Elections Commission (EC) members Ali Mohamed Manik and Mohamed Farooq were summoned for questioning by police last night.

Farooq told the press upon emerging from the police headquarters that he was questioned about the distribution of voters on the Malé municipality special register to various constituencies in the capital.

Farooq said he answered all the questions put to him by police interrogators, declining to reveal further details.

The police summons for the pair followed questioning of dismissed EC Chair Fuwad Thowfeek on Sunday night.

Thowfeek was questioned over a leaked phone conversation between himself and former President Mohamed Nasheed, during which the pair discussed the distribution of citizens on the municipal register to constituencies in Malé ahead of the parliamentary elections due to take place on March 22.

The former EC chair exercised his constitutional right to remain silent, a police media official confirmed to Minivan News yesterday (March 17).

Following the release of the phone call recording on social media, Deputy Minister of Youth and Sports Abdulla Rifau ‘Bochey’ – a candidate of the Progressive Party of Maldives (PPM) for the Maafanu South constituency in the capital – filed a case with the police alleging that Thowfeek had abused his powers as the commission’s chair.

Thowfeek, however, told local media that he had offered clarifications on the municipal registry issue to any politician who had contacted him over the phone.

The commission held a number of meetings with representatives from political parties to discuss the distribution of voters on the municipal registry, he explained.

Thowfeek also said that he shared his concerns regarding the Supreme Court’s contempt of court charges against EC members with various politicians.

“I also shared this concern with President Abdulla Yameen through a text message. In that same manner, I shared my concerns with Nasheed, too,” he said.

Municipal register

In December, the EC compiled a report on electoral constituencies for the 2014 parliamentary elections, increasing voting districts from 77 to 85 in accordance with the Electoral Constituencies Act.

Citizens on the municipal register – residents without a permanent address in Malé – were distributed among constituencies in the capital following consultation with MPs representing the 11 constituencies in Malé.

In the approximately three-minute long recording that surfaced on social media, Nasheed and Thowfeek are heard discussing the redistribution of voters.

“Some of our members went to discuss the matter of the municipal register border, didn’t they? It was agreed then that Maafannu will be kept as in the final report, yes? In short, it was agreed that some changes will be brought to Henveiru and the remaining people on the register will be distributed to the four constituencies of Maafannu, yes?” Nasheed is heard asking.

Thowfeek replies, “Yes, yes, the current borders are something that everyone has agreed on.”

Nasheed then inquires, “have any additional changes been brought to the list later on the request of Maafannu [West] constituency MP Abdulla Abdul Raheem?”

In response, Thowfeek states that no such changes had been made and that Abdul Raheem had visited the commission to discuss the issue.

MP Abdul Raheem was suspended from the opposition Maldivian Democratic Party (MDP) in January after voting to approve President Abdulla Yameen’s cabinet against the party’s three-line whip.

He did not contest in the party’s parliamentary primaries or seek re-election.

Following the leak of the phone conversation, MP Abdulla Abdul Raheem explained on Twitter that the EC “invited all members representing Malé constituencies to meet with them” on December 26 to discuss the final report on parliamentary constituencies.

“I highlighted the issue of dhafthar [municipal register] being allocated to only 1 constituency instead of distributing it equally between 4 constituencies,” he tweeted.

MPs ‘Reeko’ Moosa Manik, Hamid Abdul Ghafoor, Mohamed Rasheed, and Ibrahim from the MDP along with PPM MPs Ahmed Nihan and Ahmed Mahloof attended the meeting, Abdul Raheem revealed.

The final report was amended “after our contribution,” he added.

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Road Development Corporation purchased goods worth MVR2.2 million without bidding process, audit reveals

The Maldives Road Development Corporation (MRDC) purchased material worth MVR2.2 million (US$142,671) without a bidding process, the 2011 audit report (Dhivehi) of the 100 percent government-owned company made public last week has revealed.

Noting that the MRDC has not formulated procurement rules to date, Auditor General Niyaz Ibrahim recommended drafting regulations in consultation with the Finance Ministry within a period of one month.

“As a large amount of the company’s money had been spent for various purpose without establishing sound rules, and as we believe the company’s board members have been negligent in carrying out their responsibility of protecting the company’s resources, action should be taken against [the board members] to hold them accountable,” the auditor general recommended.

The MRDC was formed in August 2010 by the administration of former President Mohamed Nasheed to facilitate road construction under a sustainable business model.

As the company failed to compile its financial statement for 2011, the audit was based on a review of a sample of the MRDC’s business transactions as well as “problems related to performance and governance.”

In the absence of the financial statement, the report stated that the auditor general’s office was unable to assess the company’s financial health, assets, and the results achieved during the year.

The report further noted the lack of a mechanism to collect information required to compile the financial statement, adding that “basic documentation” of business transactions was not properly maintained.

The audit office recommended legal action against the officials responsible for failing to submit the financial statement for auditing as mandated by the company’s charter and the Company’s Act.

Moreover, as the MRDC had not maintained an updated registry of its assets, the report stated that auditors could not verify whether all assets purchased for the company’s purposes remained in its inventory.

The absence of an updated registry leaves open the opportunity to sell off the MRDC’s assets, the report noted.

The auditor general also recommended establishing a sound accounting system to record daily financial transactions.

While MVR175,039 (US$11,351) was spent in 2011 as overtime payments for staff, the report noted that auditors could not verify whether the payments were made for services received.

Moreover, upon scrutinising available financial records, auditors discovered that bills and invoices of materials sold by MRDC did not include purchase orders from customers while quotations sent to businesses were not authorised by senior officials.

The MRDC audit came on the heels of a damning report on the Works Corporations, which concluded that the government-owned corporation was mismanaged and had not served its purpose.

Of the 34 infrastructure projects awarded to the company, the report noted that only one had been completed.

Meanwhile, the audit report of the state-owned Waste Management Company released in December revealed that a board member had embezzled MVR610,000 (US$ 39,354) by doctoring cheques.

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Candidates from political parties finish signing voter lists

All 188 candidates representing political parties in the upcoming parliamentary elections finished signing voter lists by noon today, Elections Commission (EC) Director General Mohamed Shakeel has confirmed.

Shakeel told Minivan News, however, that some independent candidates have not signed the final eligible voters registry.

Of the 114 independent candidates, the EC media official said 18 candidates have not signed the lists.

Aside from the 18 independent candidates failing to sign, Shakeel said the EC’s “preparations for the election are perfectly on schedule.”

He noted that the EC had decided to extend the period offered for candidates to complete signing the list to 12:00pm today.

The commission has yet to make a decision on a further extension, he added.

Candidates were invited to the Dharubaaruge convention centre during the weekend to sign off on the final lists.

Obtaining signatures of candidates on the voter lists used at polling stations was among the 16-point guideline imposed on the EC by the Supreme Court in its judgment annulling the September 7 presidential polls last year.

The EC was required to ensure that the voter lists are agreed upon as valid by candidates or their representatives ahead of the polls.

However, the local council elections on January 18 took place as scheduled despite candidates signing voter lists for just 81 out of 464 ballot boxes.

Of 543 independent candidates, only 147 candidates had signed the lists.

The 302 candidates contesting the second multi-party parliamentary elections meanwhile include 85 candidates from the opposition Maldivian Democratic Party, 50 candidates from the ruling Progressive Party of Maldives, 28 from the Jumhooree Party, 12 from the religious conservative Adhaalath Party, seven from the Maldives Development Alliance, and six from the Dhivehi Rayyithunge Party.

Quorum

The EC’s capacity to conduct the parliamentary polls as scheduled on March 22 was thrown into doubt last week following the Supreme Court’s controversial removal of EC Chair Fuwad Thowfeek and Deputy Chair Ahmed Fayaz for contempt of court.

Less than two weeks before the election, the dismissals left the EC without the three members required for a legal quorum to hold meetings and approve decisions.

However, on Wednesday (March 12), parliament approved Ismail Habeeb to the commission to replace former member Ibrahim ‘Ogaru’ Waheed, who had resigned in October citing poor health.

Following the vote to approve Habeeb, President Abdulla Yameen presented the letter of appointment to the former EC director on Thursday morning.

Shakeel noted today that the decision to extend the period for signing voter lists after the initial deadline expired at 10:00pm last night was made at a commission meeting.

The President’s Office welcomed parliament’s decision to approve Habeeb to the commission, noting that it “enables the EC to function with the legally required quorum and hold the general elections scheduled for 22 March 2014”.

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Chief Justice Faiz previously alleged bribery in interim Supreme Court: Nasheed

Chief Justice Ahmed Faiz alleged in 2010 that judges on the interim Supreme Court “openly accepted bribes”, advising then-President Mohamed Nasheed to “bring the interim court to a halt,” Nasheed has claimed at a campaign rally in Male’ last night.

In 2010, then-interim Supreme Court Justice Faiz requested an audience with the president, Nasheed explained, noting that it was the first time he had met with a sitting judge.

“Faiz came and said the judges on the interim Supreme Court were openly accepting bribes and that Faiz knew of it,” Nasheed said.

He named the judges who were accepting bribes, Nasheed added.

“Faiz told me that the work that went on in the interim Supreme Court was not establishing justice but buying and selling. He said the court must be brought to a halt,” he continued.

Faiz advised the president that he was obliged to rein in the interim court, Nasheed said.

Interim bench

Nasheed referred to the five-member interim Supreme Court – headed by interim Chief Justice Abdulla Saeed – declaring that it was permanent ahead of the constitutional deadline for the interim period on August 7, 2010.

Apart from Faiz, the interim bench sworn in on September 18, 2008 consisted of Justice Abdulla Saeed, Justice Mujthaz Fahmy, Justice Abdulla Areef, and Justice Yousuf Hussain.

Nasheed noted that the then-ruling Maldivian Democratic Party (MDP) did not have a majority in the People’s Majlis, through which the permanent Supreme Court was to be instituted.

Referring to Justice Ali Hameed’s sex tape scandal, the former president revealed that his first seven nominees to the apex court did not include “disgraced judges.”

The original candidates included sitting MPs and a relative of former President Maumoon Abdul Gayoom, he added.

Nasheed alleged that Jumhooree Party Leader Gasim Ibrahim offered an unlimited amount of money to MDP parliamentary group leader Ibrahim Mohamed Solih in exchange for confirming Ali Hameed to the Supreme Court bench.

On August 7, 2010, when the constitutional interim period expired, President Nasheed ordered the military to confiscate the keys of the Supreme Court after the interim court declared itself permanent.

Three days later, parliament hastily passed the Judges Act and approved Nasheed’s nominees to the new Supreme Court bench in a deal reached with the then-opposition parties who controlled parliament.

The president’s member on the Judicial Services Commission (JSC), Aishath Velezinee, described Faiz at the time as “a well-respected man amongst the judges. I have never heard anybody question his independence or impartiality. He is a learned man and amongst all the politicking and hanky-panky going on, he has maintained his integrity.”

Nasheed meanwhile went on to severely criticise Faiz for issuing a harshly worded statement condemning international partners who expressed concern with the Supreme Court’s controversial removal of the Elections Commission’s chair and deputy chair.

The Supreme Court was “destroying the future of generations to come,” he said.

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Audit uncovers illegal expenditure by Works Corporation

The audit report of the Works Corporation Ltd (WCL) for 2011 has exposed allegedly corrupt practices at the 100 percent government-owned company.

In a press release issued with the report (Dhivehi), the Auditor General’s Office stated that its audit uncovered numerous violations of the law as well as “problems related to performance and governance.”

Since the corporation did not compile its financial statement for 2011, as mandated by its charter and the Company’s Act, the press release noted that auditors reviewed selected transactions of the WCL.

The WCL was created by the administration of former President Mohamed Nasheed on March 25, 2009 to facilitate or carry out infrastructure projects.

Of the 34 projects awarded to the company in 2010 and 2011, the audit found that the government canceled 24 after the WCL failed to commence work.

“The government awarded the projects without adequate planning and without assessing the company’s capability to carry out the work,” the press release stated.

As the company had completed only one infrastructure project to date, the Auditor General’s Office suggested that the WCL had not served the purpose for which it was formed.

Managing director

Auditors discovered that the company’s managing director withdrew MVR180,000 (US$11,673), ostensibly to cover expenses for assisting the President’s Office in preparations for a ceremony held in Gulhifalhu.

While the company’s employees actively participated in the preparations, the report noted that the sum was withdrawn without any documentation proving the actual cost borne by the WCL.

Although the audit report did not identify the managing director, local media has revealed that the WCL MD in 2011 was Abdulla Javid ‘Jaa’, son-in-law of the then-ruling Maldivian Democratic Party’s (MDP) Chairperson ‘Reeko’ Moosa Manik.

Auditors also found that MVR146,999 (US$9,533) was transferred to the MD’s personal bank account to purchase a “total station” containing special tools from Singapore’s Tepcon Posting Sales Pvt Ltd.

However, the company had received neither the tools nor the transferred amount as of the report’s publication date.

Moreover, the WCL did not recover 14 sheet piles provided in May 2011 to Heavy Load Maldives Pvt Ltd, which was owned by the MD’s father-in-law MP ‘Reeko’ Moosa.

The WCL’s staff informed auditors that the 40-feet sheet piles were released after the MD called the deputy manager at the company’s Thilafushi site and instructed him to do so.

The audit report revealed that on the orders of the MD the WCL also provided electricity from its Thilafushi site to the Yacht Tours Maldives’ site on the industrial island.

Yacht Tours Maldives – owned by MDP MP Abdulla Jabir – had not paid WCL for 37,376 units of electricity used from December 28, 2010 to October 1, 2012, the audit found.

Violations

The WCL awarded 12 projects worth MVR198.6 million (US$13 million) to various parties in violation of the company’s procurement rules, the audit found.

The company’s procurement procedures manual stated that contracts worth MVR1.5 million (US$97,276) or higher must be awarded through the Finance Ministry’s tender evaluation board.

However, the audit noted, the 12 projects were awarded without either a bidding process or the involvement of the tender evaluation board.

An Indian company – identified as MM Export Pvt Ltd – contracted to supply reinforcement boulders was paid MVR2.7 million (US$175,097) in violation of the procurement rules as well as the WCL’s agreement with the company.

In another instance, a Sri Lankan company named Sri Krithika International was paid in excess of the stipulated amount for supplying construction material after the company imported a higher volume than was agreed upon.

Moreover, the WCL failed to recover MVR1.7 million (US$110,246) paid to Design-built Solutions Pvt Ltd as an advance payment for the Noonu Velidhoo harbour project despite termination of the agreement after the company did not commence work.

In a similar case, a company named Coastal Ventures Pvt Ltd was paid MVR5 million (US$324,254) for the construction of a harbour in Raa Fainu despite the company only completing a portion of the project.

As the portion completed by the company was worth MVR2.9 million (US$188,067), the audit noted that the company was paid MVR2.1 million (US$136,186) for work not done.

The report also contended that the WCL prioritised the interests of subcontractors in drafting agreements to the detriment of the company.

Auditors discovered that the company was owed MVR134,055 (US$8,694) in unpaid rentals and sale of equipment.

The WCL also misused a MVR50 million (US$3.2 million) stand-by credit facility provided by the Indian government to establish a sewerage system in Noonu Miladhoo and to construct a harbour in Noonu Kudafari.

Interest for the loan was rising as a result of the WCL failing to make regular payments, the report noted.

Meanwhile, as a result of poor record keeping, auditors were unable to ascertain the amount of money kept in the WCL safe when it was stolen in 2011.

While the company’s accounting systems showed that it was owed MVR22.5 million (US$1.5 million) from various parties, the audit report noted that the company’s financial book-keeping was too unreliable to establish the validity of the figure.

Similarly, auditors could not verify whether the MVR60.7 million (US$4 million) owed by the WCL for procurements and services was authentic.

The company also paid its chairman more than MVR600,000 (US$38,910) as a “special allowance” from June 2009 to February 2012 against the pay scheme for board members of state-owned enterprises.

Moreover, the company’s hiring and firing practices as well as promotions for staff contravened its “employment, benefits and salary policy.”

Lastly, the WCL had not maintained a registry of its assets since April 14, 2010, auditors found.

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