Author: Ahmed Naish

Islamic finance has gained confidence in Maldives: Deputy Islamic Minister Dr Muneeza

Islamic finance has gained confidence in the Maldives with increased awareness among the public of its role in eliminating Riba (interest), according to Deputy Islamic Minister Dr Aishath Muneeza.

Writing in the Islamic Finance News website, Dr Muneeza stated that Islamic finance has been “spreading like wildfire” since the introduction of Islamic banking and capital market services in 2011.

“Demand for Islamic finance is evident and has proved that there is inherent demand for Islamic finance as the Maldives is a country with a 100% Muslim population. It is hoped that in the upcoming years the Maldives can be used as a global case study to prove the success of Islamic finance,” she wrote.

Under Islamic Shariah, any risk-free or guaranteed rate of return on a loan or investment is considered riba, which is prohibited in Islam.

In her article, Dr Muneeza explained that the first form of Islamic finance introduced in the country was Takaful in 2003, which involves mutual protection of assets and property and joint risk-sharing.

Conventional insurance is also prohibited in Islam because of forbidden elements such as Riba.

Following the wider introduction of Islamic finance in 2011, Dr Muneeza observed that it is now “considered as an integral part in the development of nation”.

The previous year meanwhile saw the introduction of “new innovative Islamic finance instruments” by both the government and private corporations, she noted.

In 2013, the government signed the first sovereign private Sukuk – an asset-backed bond which is structured in accordance with Shariah for trade in the market – deal in addition to the central bank issuing the first Islamic treasury bill.

Moreover, she added, four pieces of regulation governing Sukuk, Islamic securities, Shariah advisors, and the capital market Shariah advisory council were introduced last year.

The government-owned Housing Development Corporation also issued the first corporate Sukuk while the first Islamic hire-purchase product was unveiled by a private company, she noted.

In addition, the government formed the Maldives Hajj Corporation – of which Dr Muneeza is the chairwoman – as a pilgrimage fund and issued Halal certificates for fish products.

The Maldives Transport and Contracting Company (MTCC) hired a Sukuk advisor for real estate projects commencing this year, she added.

“Furthermore, regulatory consents have been given to the Islamic banking window of Bank of Maldives and the Takaful window of Allied Insurance Maldives to start their operations. Some products of these companies have been given consent by the Maldives Monetary Authority,” she wrote.

The government also planned to form “a national-level technical committee to monitor and supervise sovereign Islamic finance issues,” she revealed.

“Definitely, 2013 is a super duper hit year for the growth of Islamic finance industry,” Dr Muneeza suggested.

Developments expected in 2014 meanwhile included the inauguration of “Islamic windows” by the Bank of Maldives and Allied Insurance. The government anticipated that “a large number of customers will switch from conventional banking to Islamic banking when this takes place.”

Islamic fund management would also be introduced this year while the government had plans to “introduce an Islamic finance centre that will not only provide offshore Islamic financial services, but this centre will act as the Islamic finance hub for the whole South Asia region.”

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Civil Court rejects MP Alhan’s request for injunction suspending candidacy of MDP Feydhoo ticket winner

The Civil Court has ruled today that it does not have the jurisdiction to grant an injunction suspending the candidacy of the Maldivian Democratic Party’s (MDP) Feydhoo primary winner.

The decision (Dhivehi) came in a lawsuit filed by Feydhoo MP Alhan Fahmy against the MDP seeking annulment of the opposition party’s primary for the Feydhoo constituency in Addu City.

Alhan lost the MDP’s primary to Mohamed Nihad last month by a 162 vote margin and challenged the results on the grounds that the voter list was outdated and did not include 67 new members. He also alleged electoral fraud in the Feydhoo poll.

Alhan had asked the court to order the Elections Commission (EC) to suspend Nihad’s candidacy pending a judgment on the legitimacy of the primary contest.

Judge Ali Naseer however ruled that cases concerning the candidacy of persons standing for parliament was in the jurisdiction of the High Court under the Judicature Act and the General Elections Act.

Lawyers representing the MDP reportedly did not attend this morning’s hearing.

Judge Naseer said that the party will be given an opportunity to respond to the allegations of fraud at the next trial date.

At yesterday’s hearing, the party’s legal team raised a procedural issue contending that the court could not hear the case as Alhan had not completed the appeals process through the party’s internal mechanisms.

The judge however dismissed the procedural point and ruled that the court could proceed with the case. He noted that as the MP could no longer submit a complaint to the party’s appeals committee, dismissing the case would deprive Alhan of his constitutional right to a fair trial.

The MDP has since appealed the ruling at the High Court.

While Alhan had first filed his case at the High Court, the court’s registrar informed his lawyers that it could not hear cases involving internal elections conducted by political parties.

Alhan was stabbed in a restaurant in Male’ on February 1 and returned to the Maldives on Friday (March 1) after undergoing treatment in Sri Lanka.

The incumbent MP is contesting the upcoming parliamentary elections as an independent candidate.

Last August, Alhan was summoned by police in connection with the alleged blackmailing of Supreme Court Justice Ali Hameed, using footage of the judge having sex with three prostitutes in a Sri Lankan hotel.

The MP tweeted a screenshot of a text message he claimed had been sent to his mobile phone by Superintendent of Police Mohamed Riyaz. The text read: “Alhan, will make sure you are fully famed (sic) for blackmailing Justice Ali Hameed. You don’t know who we are.’’

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Hospitalised Maafushi inmate requested transfer from cell before assault

An inmate who suffered serious head injuries in a prison fight at Maafushi jail last month requested to be transferred from his cell more than an hour before the assault, according to a one-page report shared by the Maldives Correctional Services (MCS) with parliament’s government oversight committee.

On February 24, Prison Corporal Mohamed Mujthaba, the ranking duty officer at the time of the incident, was informed by guards of unrest in cell number 12 of unit three, wing one, at about 5:25pm, stated the report read out by MCS Lawyer Mohamed Zahir at yesterday’s committee meeting.

Mujthaba questioned the prisoners and was asked by two of the three inmates in cell 12 – Ali Ashwan of Ma. Oasis Villa and Ibrahim Azar of M.Dhodhilige – to be transferred to a different cell.

“However, when [the inmates] were asked to explain the reason for wanting to change cells, they refused to do so until they were taken out of the cell,” the report revealed.

At about 6:00pm, the report stated, instructions were given by Prison Corporal Ali Maaniu, deputy head of the operation and security department, to transfer the inmates.

However, the third inmate in cell 12 – Ahmed Liushan, also from Ma. Oasis Villa – obstructed prison guards who attempted to take the other inmates out of the cell.

Duty-in-charge Corporal Mujthaba then made arrangements to transfer the inmates with the assistance of officers from the Emergency Support Group (ESG).

At about 6:50pm, Mujthaba and the ESG officers made their way to the cell upon hearing a commotion from the unit.

“When they opened the cell and looked inside, Ibrahim Azar was severely beaten. A lot of blood was flowing out of Ibrahim Azar’s head at the time. [Azar] indicated with gestures to the officers that he was assaulted by Ahmed Liushan. In addition, some officers saw Ahmed Liushan attacking Ibrahim Azar when they opened the cell,” the report stated.

The injured inmate was first treated by nurses at the Maafushi jail reception area before being taken to the Maafushi Health Centre.

A doctor at the health centre advised that the inmate be immediately taken to Malé after completing medical procedures, the report continued, whereupon he was sent to Malé on a speedboat with three prison officers and two nurses at around 7:45pm.

The other two inmates in cell 12 were meanwhile kept separately in holding cells for the investigation of the assault.

Commissioner of Prisons Moosa Azim was informed of the incident at 7:02pm, the report stated, whilst the assault was reported to the Maafushi police station at 8:03pm.

A police team began investigating the case shortly thereafter, took witness statements and sought forensic evidence.

Azar meanwhile underwent surgery at the Indira Gandhi Memorial Hospital (IGMH) for multiple injuries to his skull and remains in a coma under intensive care. He had been serving a five year sentence for drug abuse.

“Relevant” officials

Opposition Maldivian Democratic Party MPs on the committee meanwhile contended that prison officers were culpable in the incident as the inmates had been left unsupervised for more than 50 minutes.

Although Home Minister Umar Naseer and Commissioner of Prisons Moosa Azim were told to appear before the oversight committee yesterday, neither attended the meeting.

While Deputy Commissioner of Prisons Hassan Zilal and Superintendent Ibrahim Mohamed were sent in their place, both senior prison officials were unable to answer questions posed by MPs, citing lack of information.

The deputy commissioner informed MPs that he had been on the job for just two weeks and was yet to be given operational responsibilities. Zilal said he was not in Maafushi on the day in question.

Both officials suggested that MPs summon “relevant persons” to clarify details of the incident. Ibrahim Mohamed however revealed that doctors at IGMH had advised MCS that Azar should be flown overseas for medical treatment.

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Supreme Court guidelines undermine EC’s independence: Fuwad Thowfeek

The 16-point guideline for conducting elections imposed by the Supreme Court on the Elections Commission (EC) has undermined the institution’s independence, EC President Fuwad Thowfeek told MPs on the government oversight committee yesterday.

In a meeting with the opposition-majority oversight committee to discuss budget constraints, Thowfeek said he did not believe the EC was fully independent as some of its powers and responsibilities were transferred to other institutions by the Supreme Court judgment that annulled the September 7 presidential poll.

“For example, having to consider the Department of National Registration’s (DNR) list as the basis in preparing voters list and compelling us to use a person from the police service to transport [election-related] material from one place to another,” he said.

Thowfeek also referred to the cancellation of polls in last year’s presidential election after candidates from the Progressive Party of Maldives and Jumhooree Party refused to sign the voters list, which was among the requirements imposed by the apex court.

As the Finance Ministry has not released funds allocated in the state budget for conducting the upcoming parliamentary election, Thowfeek said that financial constraints were also an impediment to the commission’s work.

Lack of financial independence poses difficulties and “restrictions”, he added.

EC members expressed concern at yesterday’s committee meeting over having to make individual requests to the Finance Ministry to pay bills and settle other expenses incurred in preparations for the polls.

Asked by MP Visam Ali if the commission was able to comply with the Public Finance Act and regulations under the law while it was forced to depend on the ministry for expenses, Thowfeek said the EC was being told to disregard provisions of the law.

“I have to say again that the first [institution] to do this was the Supreme Court. As far as I know, the sumoto mechanism they have made to prosecute Elections Commission members is against the constitution of the Maldives,” he said.

The EC did not have “any other option or choice” when the Finance Ministry instructs the commission to disregard the public finance law, Thowfeek said.

If the EC refuses on the grounds that “it’s against the law”, Thowfeek continued, there was a fear that the parliamentary election could not be held as scheduled on March 22.

Contempt of court

On February 12, the Supreme Court summoned EC members and began a surprise trial on charges of contempt of court.

The apex court invoked new ‘Sumoto’ – or ‘Suo motu’ – regulations that allow the court to initiate hearings and act as both prosecutor and judge in a trial.

The court contends that criticism by EC members of its decision to annul the first round of last year’s presidential election – citing a secret police report that has since been dismissed by a UN expert review and questioned by the Human Rights Commission of Maldives – constituted contempt of court.

At the last hearing of the trial, Supreme Court Justices used testimony given to the oversight committee to implicate EC members in contempt of court.

Article 90 of the constitution says no person will be subject to any inquiry, arrest, detention, or prosecution with respect to anything said in the People’s Majlis or any of its committees if such a statement is not contrary to tenet of Islam.

However, Supreme Court Justice Ahmed Abdulla Didi contended that the EC’s testimony at the committee obstructed justice – which he argued was a tenet of Islam – and could therefore be used in a court.

Asked by Committee Chair MP Ali Waheed if commission members were aware of the punishment for contempt for court, EC member Ali Mohamed Manik said he was informed by the commission’s legal team that there was no law specifying a penalty for contempt of court.

“They said there is no punishment. So I’m hoping that we haven’t committed a crime and there won’t be a punishment,” he said.

Manik referred to Article 223 of the constitution, which states that the supervision and prosecution of all criminal offences was the responsibility of the prosecutor general.

“But we didn’t see the prosecutor general there. We answered questions put to us by Supreme Court judges,” he said.

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EC awaiting budget from Finance Ministry for parliamentary polls

A budget of MVR25 million (US$1.6 million) allocated for conducting the parliamentary elections on March 22 has not been released in full to the Elections Commission (EC), commission members told MPs on the government oversight committee today.

At today’s meeting of the oversight committee – held upon request by three opposition Maldivian Democratic Party (MDP) MPs – EC President Fuwad Thowfeek explained that the commission had to make individual requests to the Finance Ministry to pay bills and settle other expenses incurred in preparations for the polls.

“We have to do this in a very unorganised, unsystematic way,” Thowfeek said, adding that in the past the commission could “limit and plan expenses” as it was working with the full budget.

An official from the Finance Ministry told Minivan News last week that there would not be any restrictions in releasing funds if the ministry was convinced the money was required for election preparations.

While Finance Minister Abdulla Jihad was currently out of the country, Acting Minister Mohamed Saeed informed the committee that he was unable to attend today’s meeting.

Committee Chairman MDP MP Ali Waheed read out a letter from the Finance Ministry assuring MPs that the necessary funds will be provided to the commission.

Additional funds required for the polls had not yet been released because the EC has not exhausted its budget for 2014, the letter signed by Permanent Secretary Ismail Ali Manik stated.

It added that the ministry would settle bills forwarded by the EC.

Pending

Thowfeek however informed MPs that in addition to funds earmarked for political parties and employees’ wages, the commission had MVR9 million (US$583,68) left in its 2014 budget.

The total amount owed for pending bills exceeded MVR9 million, EC member Ali Mohamed Manik noted, adding that the amount was insufficient for conducting an election.

Manik said the commission did not have the funds to hire 10 temporary staff to man its 1414 number, whilst it was also unable to hire speedboats from private businesses as they were no longer willing to raise the credit limit.

The EC found itself without enough petty cash to buy water on some days, Manik added.

Thowfeek meanwhile revealed that  in January a Singaporean hotel sued the Maldives High Commission over unpaid bills.

The hotel bill for election officials sent to Singapore for last year’s presidential election was later settled by the Finance Ministry, he said.

Moreover, Island Aviation refused to transport election officials and ballot boxes for January’s local council elections due to outstanding payments, Thowfeek said.

“So we had to scramble and call the Finance Ministry,” he said, adding that EC staff found it “very difficult” to contact senior officials from the ministry.

The EC’s work was “stalled” in such cases, Thowfeek said: “For example, when we couldn’t send ballot boxes to islands, we had to tell finance [ministry] and they gave an instruction to Island Aviation to raise the credit limit,” he said.

On schedule

Asked by MDP MP Visam Ali if there was any guarantee that the polls could take place on March 22, Thowfeek said the EC’s preparations were presently on schedule.

“However, the suspicion or fear is that while we are working without money at hand and in the hope that the funds will be provided, the certainty that we want for our institution is a bit low,” he said.

Thowfeek told Minivan News last week that the EC has so far been able to manage expenditures with cooperation from the ministry.

“Now we are using the office budget mostly. But the Finance Ministry is releasing funds as we spend,” he said.

EC Secretary General Asim Abdul Sattar meanwhile said today that the Finance Ministry had not replied to four letters from the commission concerning its expenses.

However, Finance Minister Jihad had given verbal assurances to commission members that funds will be made available, Asim said.

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Resigning not the solution: Health Minister Dr Shakeela

Resigning in the wake of last week’s transfusion of HIV positive blood to a patient is not the solution to problems in the health sector, Health Minister Dr Mariyam Shakeela told MPs on the government oversight committee on Friday (February 28).

Dr Shakeela told the opposition-majority oversight committee that “human error” was to blame for the incident at the government-run Indira Gandhi Memorial Hospital (IGMH), as the lab technician reported the blood as negative despite the machine showing otherwise.

“My resignation isn’t going to solve this. I could resign if that is the case. My resignation is not going to solve it. That’s why I am saying, what is the solution? The solution is all of us cooperating and working together to improve the system,” she said.

Shakeela added that she had been receiving text messages calling for her resignation.

Asked by opposition Maldivian Democratic Party (MDP) MP Ahmed Hamza if she accepted “full responsibility without any excuses” for the incident, Shakeela replied that she accepts responsibility for “providing benefits” to whomever it was owed.

The ministry would attempt to explain to the public that the incident occurred due to “human error,” she stressed, adding that she did not think members of the public would stop visiting the government-run tertiary hospital.

As the donor was found by the patient, Shakeela stressed that the blood sample did not come from the hospital’s blood bank. The donor was not previously registered as an AIDs patient.

The government was ready to take whatever measures were necessary to restore public confidence, she added.

The minister also denied that there was a cover-up, or that the revelation to the media was prompted by leaked information.

Shakeela urged MPs to consider the mishap as “a one-off” incident caused by a mistake.

“Don’t think that this will keep happening to us all the time. We are taking steps for example to try and go to a fully automated system, to improve it and reduce human mistakes,” she said.

ISO standards

Upon learning of the incident on February 19, Shakeela said she informed the World Health Organisation (WHO), seeking advice and assistance following an emergency meeting with high-level officials at the Health Ministry.

The Health Ministry acted in line with international best practices, she said, and immediately launched independent inquiries.

The incident was revealed to the media shortly after receiving a draft report from an independent committee, she added, noting that further investigations were taking place to identify shortcomings at the hospital.

The machines at IGMH were state of the art whilst the standard operating procedures (SOPs) and protocols were at international standards, she noted.

Health Ministry Director General Dr Sheeza Ali meanwhile revealed that the laboratory was presently not “ISO certified”.

“But we are starting work during this year towards ISO certification. It is likely that we might not reach the latest [standards] as we might not be able to fulfil all the requirements,” she said.

Budget constraints

While the Health Ministry had asked for a “realistic budget” of MVR4 billion, Permanent Secretary Geela Ali said the budget approved by parliament had only MVR2.5 billion earmarked for the health sector.

Of the MVR2.5 billion annual budget, Geela noted that MVR1.8 billion was allocated for the National Social Protection Agency (NSPA).

Shakeela meanwhile told MPs that the health sector was in disarray, with crumbling infrastructure and facilities due to insufficient funds allocated in the state budget for many years.

“If we look at machinery, a screw comes loose from the machine and it falls on the head of the patient who is taken into the operating theatre,” she said.

Moreover, attracting qualified foreign doctors was “very difficult” as the salary of doctors in the Maldives has not kept pace with pay rises for doctors in the South Asian region, she explained.

Due to the budget constraints, Shakeela said the ministry was seeking foreign assistance, and that machinery and equipment were “on the way”.

In response to complaints regarding the budget, MDP MPs on the committee pointed out that health policy was formulated by the government while the state budget was proposed by the Finance Ministry, reviewed by a budget committee controlled by the ruling coalition, and approved by the government majority in parliament.

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Police raid Masodige, arrest 18 in drug bust

Sixteen men and two women were arrested yesterday in a drug bust with over MVR100,00 (US$6,485) in cash and 31 rubber packets containing illicit narcotics.

Police raided Galolhu Masodige with a search warrant around 9:00am based on intelligence information suggesting that drugs were being sold from the house. The special operation was conducted jointly by the drug enforcement department (DED) and police intelligence.

According to the DED officer in charge of the operation, equipment used to pack drugs was also confiscated from Masodige.

Of the 18 suspects taken into custody, police said a 22-year-old man and 50-year-old woman were actively involved in drug trafficking.

The male suspect had a criminal record for drug trafficking and gang violence, police revealed.

The other 16 suspects – aged between 22 and 58 – were believed to have been in the house to purchase drugs at the time of the raid.

A 26-year-old woman among the suspects had been convicted on multiple charges of theft in 2010 and 2011, police said.

Police claimed the 16 suspects were under the influence of drugs at the time of their arrest and that all 16 had criminal records for drug-related offences.

The Criminal Court meanwhile granted a seven-day extension of detention for all 18 suspects when they were brought before a judge at 7:00pm last night. The case is currently under investigation by the DED.

On January 20, police arrested eight Maldivians with illegal narcotics and more than MVR140,000 (US$9,000) and US$11,000 in cash from a residence in Malé.

In an interview with Minivan News in January, Home Minister Umar Naseer said that the main target of his ministry for the next five years would be curbing drug-related crimes.

Naseer said that he intended to give a high priority to enhancing the customs services in order to stop illegal drugs and other contraband from being smuggled in to the country. He also said that the police intelligence department was being expanded.

“Leaving aside abusers and peddlers, the focus of this front will be on major wholesale drug dealers. We will investigate how drugs are brought into the country, find the contacts abroad, find ways to locate and take action against those involved even if they are abroad,” he said.

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IGMH lab technician responsible for HIV blood transfusion in custody

An expatriate lab technician at the Indira Gandhi Memorial Hospital (IGMH) responsible for the transfusion of HIV positive blood to a pregnant Maldivian patient has been taken into police custody on Thursday night (February 27).

IGMH Deputy CEO Dr Mohamed Habeeb told MPs on the government oversight committee yesterday that the Indian national had admitted his culpability in the incident.

Local media has since revealed his identity and reported that the Criminal Court has extended pretrial detention to seven days.

Habeeb was summoned to the oversight committee along with Health Minister Dr Mariyam Shakeela and senior officials at the ministry.

Briefing MPs on the incident, Habeeb explained that the blood test was done on February 2 and the transfusion took place the next day.

The technician at fault reported the blood as negative despite the machine showing that it was positive for HIV.

The error was discovered when the patient came in for a routine checkup on February 18, he continued, after which the blood test report was reviewed.

A high-level meeting with senior officials from the Health Ministry was held immediately after the discovery and a three-member committee was formed to look into the incident, he said.

The committee comprised of an experienced doctor, senior nurse, and retired lab technician, he added – none of whom were employed by the hospital.

The incident was revealed to the media hours after the committee shared its findings, he said.

The blood sample was taken from a donor found by the patient and not from the hospital’s blood bank, Habeeb stressed. The donor was not previously registered as an HIV patient.

While there were normally two technicians at the lab, Habeeb noted that the Indian national was alone on the day in question as it was a public holiday.

Habeeb revealed that the technician left for India on the day of the incident and returned to the Maldives about two days later.

The technician had been working at the hospital for seven years and had recently received an award for his performance, Habeeb said.

However, Permanent Secretary at the Health Ministry Geela Ali revealed that the technician had been fired from his previous job in 2006.


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ACC, Civil Court orders Islamic Ministry to halt bidding process for Hajj groups

The Anti-Corruption Commission (ACC) has ordered the Ministry of Islamic Affairs to halt the bidding process for selecting Hajj Groups to accompany Maldivian pilgrims and to revise the criteria for awarding quotas.

Following an investigation into alleged corrupt practices, the ACC revealed in a press statement today that it identified nine issues with the regulations (Dhivehi) formulated by the ministry for evaluating bid proposals, which was published in the government gazette on February 12.

The ACC investigation was prompted by a complaint lodged at the commission alleging that the regulations were being used to unduly benefit certain parties.

The ACC decision came on the heels of a stay order (Dhivehi) issued by the Civil Court this morning ordering the ministry to halt the bidding process pending a ruling on the validity of the regulations.

The stay order or injunction was granted in a lawsuit filed by two Hajj groups – the Abatross and Minaa groups – contending that the bidding process was unfair.

Among the issues identified by the ACC was a new requirement for interested parties to submit bank statements – dating back six months – of the company’s management account and money depositing account.

Companies were also required to submit details of employees who would be accompanying pilgrims as well as documents proving their experience.

While 15 percent of marks were to be awarded for experience, the ACC noted that the regulations did not specify how experience would be measured or graded.

Moreover, while companies were required to submit details of ticket prices along with their proposal, the ACC noted that it would depend on the quota, which was to be decided by the ministry following evaluation of bids.

In addition, the commission found that there were no guidelines to evaluate the proposed price (45 percent of marks) and the quality of service (30 percent), whilst the ministry had not set a ceiling for the quoted price.

Based on its findings, the ACC ordered the ministry to revise the issues identified in its investigation report – shared with the ministry today – before resuming the bidding process.

Of the 800 pilgrim quota afforded to the Maldives by Saudi Arabia, 400 were reserved by the government’s Hajj Corporation while the rest were to be divided amongst companies chosen from the bidding process.

The proposals were to be submitted to the Islamic Ministry at 10:30am today.

The bidding process for Hajj groups was marred by controversy in 2013 as well. In May, the High Court overturned a Civil Court ruling in which the trial court ordered the Islamic Ministry to reevaluate several unsuccessful bids presented by local Hajj groups.

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