Author: Ahmed Naish

Trade and commerce “magic wand” for achieving SAARC’s goals: President Yameen

Trade and commerce is the “magic wand” for achieving the South Asian Association for Regional Cooperation’s (SAARC) goals of mutually beneficial cooperation, President Abdulla Yameen suggested this morning at the inauguration of the 35th session of the SAARC council of ministers.

In his speech at the council of foreign ministers hosted by the Maldives at Bandos Island Resort, President Yameen said that poverty, malnourishment, gender inequities, and access to safe drinking water and food were among some of the “collective challenges” faced by South Asian countries.

“If there is a magic wand to enable SAARC to achieve these goals, it is trade and commerce. Commerce unlocks the doors to each other’s countries, and cultivates closer ties of mutual understanding. Business transactions foster good neighbourly relations through the sharing of goods and values,” Yameen said.

“Trade and investment derive mutual benefits and improves the collective resilience of the region. Indeed, trade is the master key to turn poverty into prosperity.”

Yameen observed that the volume of trade within the region “remains at an abysmal low”.

“It is sad but true that SAARC member states often import from third countries goods produced in other SAARC countries. Barriers to entry and transaction costs are high,” he explained.

While the South Asian Free Trade Agreement (SAFTA) was drawn up as “a grand scheme” to enhance regional trade, Yameen argued that SAFTA has in many cases created “even more barriers”.

In the 27 months since the Maldives assumed chairmanship of SAARC, Yameen noted that progress has been made in “key areas of cooperation” such as trade, commerce and finance.

“Collective voice”

Despite being home to one-quarter of the world’s population, Yameen observed that the regional bloc held “limited power” in the international arena.

“We command limited attention and we demand limited engagement. Despite our share of the global population, we carry no collective voice,” he said.

South Asian countries should “stand up for each other, protect each other, and fight the cause for each other,” he said, calling on member states to “show the world the solidarity of SAARC”.

If a member state is “subjected to unfair treatment,” Yameen urged other South Asian countries to “stand up and demand justice.”

“It is time that the member states of SAARC forge common positions on critical issues of importance to our region and the rest of the world. Individually, we might only have limited impact or little strength, but collectively we can move mountains,” he said.

He added that the Maldives, despite being the smallest state in the association, had “a disproportionate stake in ensuring ensuring that regional cooperation succeeds in South Asia”.

Reforms

On the need for reforms, recognised since 1997, Yameen noted that member states agreed during the summit held in Addu City in November 2011 to conduct “a comprehensive review of SAARC processes and institutions”.

The SAARC secretariat conducted a study to “streamline, rationalise, restructure, and strengthen SAARC mechanisms and processes,” which was being deliberated by foreign secretaries in order to implement its recommendations.

As the current meeting of foreign ministers was the last before Secretary General Ahmed Saleem – former chair of the Human Rights Commission of Maldives – hands over the rotating post to Nepal, Yameen expressed “deep appreciation for his major contribution to strengthen the association through his dedication and astuteness”.

Following consideration of the secretariat’s study, President Yameen said the Maldives would stress further cooperation in identified areas, using SAARC for building regional resilience, and “increasing the association’s international relevance”.

Concluding his address, President Yameen called on member states to “give meaning to the lofty goals set out in the charter” and “return to its original idea of promoting the quality of life of the peoples of South Asia”.

“Because, it certainly is the time for SAARC to help the peoples of our region in their march towards their manifest destiny,” he said.

Ministerial meeting

Among the issues on the agenda for the council of foreign ministers today – the highest level meeting since November 2011 – were strengthening relations with observers, reviewing the secretariat’s study, and enhancing regional connectivity.

A decision on the inclusion of Turkey as a SAARC observer state is also up for discussion.

At its meeting during the November 2011 summit, the council agreed to conduct feasibility studies for an ‘Indian Ocean Cargo and Passenger Ferry Service’.

The 17th summit concluded with the signing of the ‘Addu Declaration,’ which contained key agreements affecting the region, including a commitment to establish the passenger and cargo ferry service.

Other agreements included the strengthening of the SAARC Secretariat, the establishment of a South Asian Postal Union, and intensification of efforts to reduce non-tariff barriers to trade and reduce the sensitive lists, which include items excluded from tariff concessions.

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Government to reclaim property awarded to ferry service providers

The government is seeking to reclaim properties provided to companies awarded contracts by the administration of former President Mohamed Nasheed in order to establish regional transport networks, President Abdulla Yameen said last night.

Speaking at campaign launching ceremonies for two Progressive Party of Maldives’ (PPM) parliamentary candidates, President Yameen contended that the transport networks had “failed” across the country.

“The network is at a halt in all areas. It is functioning in just two areas. In one of those areas it is a private sector party providing the service. The system has been very much weakened,” he said.

The Maldivian Democratic Party (MDP) government awarded 200 plots of lands under its transport network agreements to the companies contracted to provide ferry services, Yameen noted, claiming that the bidding process was riddled with corruption.

“For islands given to develop resort, on average we are talking about an annual income of US$30 million. If we consider the total income of a resort we are talking about US$30 million dollars. Out of these 200 plots, a lot were given for resort development. All of them have now been sold,” he said.

While the public-private partnership project “in itself was good,” Yameen contended that it was the most wasteful and corrupt programme carried out by the MDP government.

The programme was intended to unduly benefit certain parties by awarding public property and funds, Yameen added, describing it as the worst such “in Maldivian history”.

“So the work we have to do is taking back such properties that can be beneficial to the public [and undo] the action of a group who claimed that there was corruption in the past and that they would stop it,” he said.

Of the two functioning transport networks at present, Yameen noted that ferry service was currently provided by the government-owned Koodoo Fisheries Company in Gaaf Alif and Gaaf Dhaalu atolls.

In October 2012, the MDP-controlled Gaaf Dhaal Atoll Council accused the previous company of ceasing ferry services and asked the transport ministry to cancel the agreement.

Yameen meanwhile vowed that there would not be a corruption case under his administration that would reach the Anti-Corruption Commission (ACC).

“During our five years, God willing you won’t hear of anything that could reach the ACC,” he said, adding that the commission was investigating allegations of corruption “from all sectors” during the MDP’s three years in government.

The government was also seeking to reclaim large plots of land in the capital awarded by the previous government to the MDP-controlled Malé City Council, Yameen said.

However, he added that reclaiming some properties might be difficult even through litigation as estate transactions were advanced in some cases.

PPM campaign

Speaking at the campaign launching event for the PPM’s candidate for the Hulhuhenveiru constituency, Hassan Ziyath, Yameen said he was pleased that “capable and educated youth” were contesting the upcoming parliamentary elections on behalf of the governing Progressive Coalition.

The cabinet was also composed of competent young technocrats, he added, who were working “day and night” with a team committed to implementing the PPM manifesto.

In the campaign launching event for the PPM’s mid-Henveiru constituency candidate, former journalist and television presenter Aishath Leeza, Yameen criticised parliament for failing to approve his nominee for the vacant Prosecutor General post as well as his nominee for the Elections Commission (EC).

The resignation of former EC member Ibrahim ‘Ogaru’ Waheed in October 2013 left a vacancy in the five-member independent commission.

Yameen also criticised parliament for failing to pass legislation such as the penal code, the evidence bill, and the criminal procedures code, which were essential for strengthening the criminal justice system.

The president vowed to establish “a safe and peaceful environment” for citizens in all inhabited islands of the country.

While the government was taking measures to “deter crime,” Yameen said the issue was related to “education of youth.”

He noted that the current administration has introduced Arabic and Quran classes in most schools in the country.

Plans were in the pipeline to introduce civic education and social science subjects in secondary education later this year, he revealed.

“The purpose of including these [subjects] is to provide information to children on how to confront or reconcile upsetting matters that you face within a family or society,” Yameen said, stressing the importance of policies propagated by the state to “maintain Islamic principles.”

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MDP will reform the judiciary, pledges Nasheed

The opposition Maldivian Democratic Party (MDP) is seeking a parliamentary majority to reform the judiciary, former President Mohamed Nasheed said last night.

Speaking at an event in Vilimalé to launch the campaign of MDP candidate Sheikh Hussain Rasheed Ahmed, Nasheed said the Supreme Court feared that the opposition party would secure a majority in the People’s Majlis.

“They have summoned the Elections Commission there and are intimidating [commission members] for one purpose. They know the extent to which Supreme Court judges and other judges are tied to various politicians. They do not want the judiciary to be reformed because they want to remain in their posts, enjoy their undue advantages and keep engaging in corrupt activities for eternity,” Nasheed said.

No other party apart from the MDP would even talk about judicial reform, he added.

“What we will do with a parliament majority is reform the judiciary, reform the Supreme Court, reform the Judicial Service Commission,” he continued.

“You have to believe that none of our political opponents could say that they will reform the judiciary. They like it the way it is. What judges are doing is good [for them], too.”

Other parties and politicians turn a blind eye to injustice and the shortcomings of the judiciary as it served their interests, Nasheed contended.

Fair administration of justice was essential for a just society, Nasheed continued, pledging to complete the MDP’s ‘journey to justice’ campaign to reform the judiciary.

“Our government was toppled because we began this journey. All the obstacles we are facing is because of this reason. Nonetheless, we will not back down and, God willing, we will succeed in this task,” he said.

The former president also called on Chief Justice Ahmed Faiz Hussain to stop the apex court’s alleged efforts to “intimidate” members of the EC.

Nasheed concluded by expressing his hope that the upcoming parliamentary elections scheduled for March 22 would be free, fair and transparent.

Contempt of court

Nasheed’s remarks followed the Supreme Court summoning EC members on Wednesday to a surprise trial on charges of contempt of court.

The apex court contended that the EC had criticised the judgment which annulled the first round of presidential election held in September 2013, and disobeyed a Supreme Court order by dissolving eight political parties earlier this month.

The commission members were summoned under new ‘Sumoto’ or ‘Suo motu’ regulations that allow the Supreme Court to initiate hearings and act as both plaintiff and judge in a trial.

In addition to initiating proceedings against EC members, the apex court has in the past ordered police to investigate MDP-aligned private broadcaster Raajje TV over a report the station aired comparing the Maldivian justice system to that of ancient Sodom, suspended lawyers for publicly criticising the judiciary, and sought criminal charges against MPs for allegedly defaming the court.

In late January, the Supreme Court suspended former Attorney General Husnu Suood pending a police investigation, claiming that his criticism of the court’s decisions constituted contempt of court.

Suood told Minivan News that he believed the suspension was related to the sex tape scandal of Supreme Court Justice Ali Hameed. Suood was a member of the committee investigating Hameed’s alleged appearance in the leaked tapes.

The former AG was also barred from the apex court last year while he was representing the EC.

In a comprehensive report on the Maldivian judiciary released in May 2013, United Nations (UN) Special Rapporteur on the Independence of Lawyers and Judges, Gabriela Knaul, expressed concern over “the case of a lawyer who had been indefinitely suspended by the Supreme Court for allegedly criticising one of its judgements in public”.

“Such a suspension leaves no avenue for appeal and review and it represents a violation of the rights of the lawyer. The Special Rapporteur is also concerned about reports regarding threats of contempt of court used to muzzle the freedom of expression of lawyers,” the report stated.

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IMF delegation surprised by resilience of Maldivian economy

A delegation from the International Monetary Fund (IMF) expressed surprise at the “resilience” of the Maldivian economy in a meeting with MPs on the parliament’s public finance committee yesterday.

Dr Koshy Mathai, resident representative to Sri Lanka and Maldives, told MPs that the IMF was surprised that the economy has stayed afloat for years despite longstanding fiscal imbalances.

“For a long time we’ve been saying that reserves at the MMA [Maldives Monetary Authority] are very low and that the fiscal deficit is quite difficult and we expect the economy to run into some problems. But somehow the economy has shown resilience, a lot of resilience, and we’ve been surprised – happily surprised but surprised nonetheless,” he said.

The IMF was interested in “carefully studying” how the domestic economy has remained resilient in the face of soaring public debt and persisting budget deficits, Mathai said.

“Imports are on the shelf. If you go into a shop, you’ll find a wide range of imported goods there. You see people with motor scooters and cars and smartphones. You see people going on travel. All these are available, are done, even while the level of reserves at the MMA is quite low,” he observed.

In attendance at yesterday’s meeting were the committee’s chair, MP Abdulla Jabir, and MPs Abdul Ghafoor Moosa and Mohamed ‘Colonel’ Nasheed.

As the IMF delegation currently in the Maldives was on “fact-finding” or “exploratory mode” ahead of the organisation’s article IV consultation later this year, Mathai told the MPs that the team did not have “comprehensive policy recommendations” to share.

Fiscal consolidation

“One area where we have more clear ideas is an area where we’ve had discussions in the past, and that’s the need for fiscal consolidation,” Mathai continued.

Noting that “fiscal problems have been at the root of so many crises” in countries large and small, Mathai said that the the Maldives had “a government budget envelop that is very difficult to finance.”

“The deficit is quite large. Financing is difficult to find. Banks are not that willing to subscribe to treasury bills. We see treasury bill yields rising quite sharply. MMA external financing is difficult to mobilise as you all know. We’re left then with MMA printing money in order to finance expenditures,” he explained.

A second option was “running up arrears, unpaid bills to domestic suppliers,” he added.

Both methods posed serious challenges, Mathai continued, as the government’s failure to pay its bills “creates ripples effects throughout the entire economy.”

Moreover, printing money to finance deficit spending “puts a lot of pressure on prices” and central bank reserves, he said.

“Because in a small country like the Maldives, when the MMA prints money, that is an injection of purchasing power into the economy, it means more people can import things,” Mathai said.

Printing money therefore “creates increased demand for dollars, increased imports, pressure on reserves,” he noted.

“As I said, the system seems to work. The parallel market somehow is letting the economy work,” he observed.

Solutions

As new sources of financing the budget were not available in the short-term, Mathai suggested targeting subsidies to the poor and increasing tourism taxes.

“The electricity subsidy is one that goes to even the richest strata of society. Basic food subsidies are being enjoyed now by the resorts, and never mind the resorts, are being enjoyed by wealthy foreign visitors who stay at the resorts. That to us seems like a totally unnecessary policy,” he said.

He added that “substantial savings” could be made from the budget by targeting subsidies to those most in need of assistance.

Mathai also argued that the rates of taxation in the tourism sector were “quite low” compared to other tourist destinations.

Mathai said he paid “north of 20 percent” in taxes at a hotel in Fiji while the Tourism Goods and Services Tax (T-GST) in the Maldives was only recently raised to 12 percent.

It would not be “a tax on business” that would slow down the economy, Mathai added.

“Rather it is saying people are coming and enjoying all that the Maldives has to offer, so let them pay something for it,” he said.

As 70 to 80 percent of the Maldivian economy was “driven by tourism,” Mathai said that it was “only natural that the [tourism industry is] contributing resources for the economy to operate.”

He added that “rates of return on Maldivian resorts are among the highest in the world” with profitable payback periods.

However, compared to other tourism-dependent economies, Mathai said that government expenditure in the Maldives was comparatively “very high” due to the geographic dispersion of the population and the large public sector wage bill.

In the medium-term, Mathai recommended taking measures to reform the civil service, improve delivery of public services and increase efficiency by economising.

“Ultimately we need to do a structural adjustment to the budget so that it’s more sustainable,” he concluded.

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MDP wins seven out of 10 seats in second round of council elections

Read this article in Dhivehi

Candidates from the opposition Maldivian Democratic Party (MDP) have won seven out of the 10 seats in play during yesterday’s second round of voting in the local council elections, according to preliminary results from the Elections Commission (EC).

Run-off elections took place between candidates for three island councils tied in last place with the same number of votes, whilst a revote was held in the island of Miladhoo in Noonu atoll.

The results of the January 18 poll in Miladhoo were annulled after it emerged that disappearing ink was used at the polling booth.

In addition to the island council races, a rescheduled vote was held for two atoll council seats from the Gaaf Alif Villigili constituency.

The poll was postponed by the EC to afford a candidate adequate time to campaign after his disqualification by the commission was overturned by the Supreme Court. The candidate in question had however withdrawn his candidacy following the EC’s decision to delay the poll.

Two candidates each from the MDP and the ruling Progressive Party of Maldives (PPM) contested the two Villigili atoll council seats.

The two winners were PPM candidate Saudhulla Rasheed with 1,227 votes, followed by MDP candidate Mohamed Haleel with 1,124 votes.

The opposition party won a majority of seats in the Gaaf Alif Atoll council.

In Baa Fehendhoo, MDP candidate Aminath Fazeena narrowly defeated government-aligned Jumhooree Party candidate Fathmath Nuzla with 79 votes and 75 votes respectively. With the victory, the opposition party secured a majority of the Fehendhoo island council.

In Haa Alif Muraidhoo, two MDP candidates who had received the same number of votes faced off for the island council seat. Asrar Abdulla won the run-off poll with 268 votes.

A pair of MDP candidates contested in Raa Maakurath as well with Saudhulla Mohamed beating Abdulla Azeez for the last island council seat.

Of ten candidates standing in the revote for the five-member Miladhoo island council, three MDP candidates – Ibrahim Areef, Abubakur Ali, and Hassan Moosa – received the highest number of votes followed by PPM candidate Abdul Muttalib Abdul Samad in fourth place.

Two PPM candidates – Mohamed Ali and Fathmath Mohamed – were tied in fifth place with 428 votes.

While a run-off election was also due to take place yesterday in Gaaf Alif Kodey, the poll was postponed pending a High Court ruling on an ongoing election-related case.

The newly-elected councillors are due to be sworn in on February 26.

Seat haul

Some 2,463 candidates contested in the January 18 elections for 1,100 seats – 951 island council seats, 132 atoll council seats, and 17 city council seats – in the country’s second local government elections under the landmark Decentralisation Act of 2010.

Yesterday’s victories for the MDP brings its seat haul to 465 in total, including eight out of 11 seats in the Malé City Council and all six seats in the Addu City Council. The party fielded 901 candidates.

The governing Progressive Coalition – consisting of the PPM, JP, and Maldives Development Alliance – fielded 934 candidates and has now won a combined total of 459 seats.

With the three seats it won in yesterday’s polls, the PPM has taken 280 seats, followed by the JP with 123 seats and the MDA with 56 seats.

The Adhaalath Party fielded 83 candidates and secured 45 seats while, of the 543 independent candidates, 133 were elected.

The religious conservative party campaigned independently of the government coalition as it was not an official coalition partner with a formal agreement.

The Dhivehi Rayyithunge Party (DRP) meanwhile fielded two candidates and won one council seat.

In the first local council elections that took place in February 2011, the then-main opposition DRP won a clear majority of seats while the MDP claimed it won the popular vote.

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Backlog of cases at PG’s Office reaches over 500

The backlog of cases pending at the Prosecutor General’s (PG) Office has reached 533 as a result of the Criminal Court’s refusal to accept cases, Deputy PG Hussain Shameem has revealed.

Speaking at a joint press conference with the Maldives Police Service (MPS) on Thursday, Shameem said that the growing backlog included 196 cases of suspects in pre-trial detention.

Expressing concern with the stalled process, Shameem noted that the Supreme Court on February 6 ordered trial courts to proceed with cases submitted by the PG office.

“I couldn’t think of what else I could do apart from getting a [court] order from the highest stage [of appeal] in the country. I can’t grab their hand and force them to accept,” he said.

The PG’s office was filing cases at the Criminal Court every day despite the court’s refusal to accept them, Shameem said, adding that a case involving the stabbing of an MPs’ wife and child was submitted on Thursday.

“So what do they do now, it would not be fair to keep [suspects] in [remand detention] until the parliament comes back to work from recess after three months and appoint a new PG,’’ Shameem told Minivan News previously.

An official from the Criminal Court meanwhile told local media last week that the Supreme Court order stated that lower courts must accept cases filed in accordance with regulations.

“The cases being submitted now in the absence of a prosecutor general are not in line with regulations,” he was quoted as saying by online news outlet CNM.

Shameem however told Minivan News that the court should specify the clause of the regulation it was accusing the PG office of violating.

“There is no such regulation. I have not seen a regulation that says so,” he insisted.

Vacant PG post

Shortly before parliament was due to vote on a no-confidence motion against him, former PG Ahmed Muiz submitted his resignation in November last year.

A month later, the Criminal Court decided not to accept cases filed by the PG’s office as the post had been vacant for 30 days, noting that the constitution stipulates a PG must be appointed within that period.

In December, President Abdulla Yameen nominated his nephew Maumoon Hameed for the post, but parliament broke for recess at the end of the month after forwarding the nominee for vetting by the independent institutions committee.

The committee’s chair, MP Ahmed Sameer – who recently defected from the opposition Maldivian Democratic Party (MDP) to the government-aligned Jumhooree Party – told newspaper Haveeru shortly after the Supreme Court issued its order that the vetting process was stalled due to lack of cooperation from political parties.

While a committee meeting scheduled to take place during the ongoing recess to interview the nominee was canceled upon request by pro-government MPs, Sameer said a second attempt to hold the meeting was unsuccessful because MDP MPs opposed it.

New mechanism

Meanwhile, at Thursday’s press conference, Shameem said the PG’s office has been working with the MPS since November 25 to expedite the filing of cases at court.

In the past, Shameem explained, police forwarded cases upon completion of their investigation, after which the PG office either sends it back to clarify further information, rejects the case or files it at court.

The slow process prompted complaints from the public and posed challenges to securing convictions as trials often began months after the crime occurred and witnesses were unable to recall what they saw, Shameem said.

However, he added, investigations of serious crimes now proceed under the guidance of prosecutors.

Under the new system, police officers have been meeting with state prosecutors at the earliest stage of the investigation to discuss cases, Shameem said.

After mutual discussion, the PG’s office decides whether or not to prosecute based on the available evidence, Shameem explained.

Since the new mechanism was put in place, Shameem said police officers and prosecutors have held 195 meetings to discuss 164 cases, out of which the office decided to file 32 cases.

“Now we don’t send cases back to clarify further information. The 21 days it normally takes to make a decision regarding a case has been shortened to three or four days,” he said.

Following initial consultation with investigating officers, Shameem said the prosecuting attorney asks the police to clarify further information within a specified period.

“The police have been very good. They find the information within that period and get back to us. After clarifying all the information, we then decide whether to prosecute the case at court or not,” he said.

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MDP will not respect separation of powers, says President Yameen

The Maldivian Democratic Party (MDP) did not respect separation of powers during its three years in government, President Abdulla Yameen has said, urging voters to consider the track record of former President Mohamed Nasheed’s administration before choosing parliamentary candidates.

Speaking at the Progressive Coalition’s parliamentary campaign launching rally on Thursday night, President Yameen strongly criticised the opposition party’s campaign slogan – “Vote for the scale [of justice] for separation of powers” – contending that an MDP-controlled parliament would exert undue influence on other state institutions.

“Our rival opposition party is saying that they are coming to the People’s Majlis to separate powers. No doubt separation of powers is important in modern democratic systems. Separation of powers is a basis we all believe. But let us consider how responsibly and the extent to which powers were separated during the three years of the MDP government,” he said.

“We have to learn from past experience and they have shown very well, in much detail, during their three years how they want to separate powers in the future.”

The state of affairs that prevailed in the country at the end of the MDP’s three years in government should not have been what it was if the party had ruled democratically, Yameen argued.

Yameen said he “could not believe” that national debt could rise from MVR5 billion (US$324 million) to over MVR30 billion (US$1,195 million) during a democratic government.

MDP in office

President Yameen claimed that the MDP government attempted to merge the three powers of state during its time in office.

Yameen referred to the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed in January 2012, which he contended was prompted by “verdicts or punishments not being delivered the way the president wanted.”

Moreover, the arrest of two opposition MPs in June 2010 “showed the extent to which political space was offered” to members of the People’s Majlis, Yameen said.

Following the en masse resignation of Nasheed’s cabinet on June 29, police arrested then-MP Yameen and MP Gasim Ibrahim over allegations of bribery and treason. Both MPs were subsequently released by Judge Abdulla.

Yameen also referred to the delayed appointment of the Anti-Corruption Commission’s (ACC) President Hassan Luthfy, who was eventually sworn in 24 months after parliament approved him for the post.

After President Nasheed recalled Luthfy’s name and proposed a substitute nominee in late 2009, parliament rejected the substitute and approved Luthfy to the commission.

The President’s Office delayed swearing-in the new commissioner as it sought a Supreme Court ruling. Yameen alleged that the appointment was held up to prevent the ACC from functioning.

MDP MPs have not shown “even a small example of separating powers,” Yameen continued, accusing opposition MPs of obstructing the government and blocking development projects.

“Dark clouds” on horizon, warns vice president

Yameen also accused the opposition party of refusing to cooperate with the government on confirming the appointment of a new prosecutor general.

“So I have to say that it might be that they are obstructing [the appointment] because there are cases involving [opposition MPs]. This is why I am saying they are not trying to separate powers. What we are seeing is the merging of powers,” he said.

In his speech at the rally, Vice President Dr Mohamed Jameel Ahmed contended that MDP MPs contesting the upcoming parliamentary elections endorsed former President Nasheed’s alleged “inhumane activities” and “insults” to Islam and the Prophet Mohamed (pbuh).

Voting or campaigning for such MPs was “without a doubt aiding and abetting sin and strife,” he said.

Repeatedly urging voters to consider the MDP’s track record before voting on March 22, Dr Jameel called on the public to vote for coalition candidates to empower citizens, defend the constitution and protect Islam.

Reiterating a central theme from last year’s presidential campaign, Dr Jameel insisted that the MDP would pursue an agenda to eradicate Islam from the Maldives.

The vice president also said he could see “dark clouds gathering” on the horizon, warning of arson in the capital Malé and judges “tied with rope and dragged through the streets.”

Former President Maumoon Abdul Gayoom – figurehead and leader of the ruling Progressive Party of Maldives – meanwhile praised the candidates fielded by the PPM and its coalition partners Jumhooree Party and the Maldives Development Alliance.

Gayoom stressed that the Progressive Coalition must “work together” in the parliamentary campaign to secure a majority in the People’s Majlis, adding that government supporters contesting as independents would split the vote and benefit the MDP.

“Our three parties are working together as one party. We are working towards one objective. So there is no doubt that candidates contesting from our parties will have the full support of the other two parties,” said Gayoom.

“That is why I am saying that the foundation of the efforts we are commencing is working together, helping one another, and cooperating with each other.”

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MPs warned of consequences of failure to pass anti-money laundering legislation

A high-level delegation from the Asia/Pacific Group on Money Laundering (APG) informed MPs on the National Security Committee yesterday of “negative consequences” for the Maldives if parliament fails to enact anti-money laundering legislation next month.

In an unofficial meeting with the committee’s chair, MP ‘Reeko’ Moosa Manik, and MPs Abdul Azeez Jamal Abubakur and Mohamed Thoriq, 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 laws on anti-money laundering and combating the financing of terrorism (AML/CFT) 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.

Maldives Monetary Authority (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.

Consequences

Dr Hook explained that the APG in its annual meeting last year made a unanimous decision to send a high-level delegation to the Maldives “to express concern prior to the next annual meeting”.

Elaborating on the consequences, Dr Hook noted that 14 member states were subject to review last year by the FATF through the International Cooperation Review Group (ICRG).

“They have what’s called a blacklist and counter measures list. There’s a lot of countries on that list at the moment and there are varying categories on that list. And it doesn’t matter where you are on the list. There are negative consequences to it,” he said.

The consequences include having overseas credit card transactions blocked for citizens of listed countries and the blocking of incoming wire transfers from European banks, Dr Hook said.

“It would be our concern – and the co-chair has expressed that – that the Maldives should not be the subject of those negative consequences at the very time that the Maldives is working very hard to eliminate public debt and to attract foreign investment,” he continued.

The parliament upon returning from recess has “a small window of opportunity” to pass the bill in March, he suggested.

If the legislation is not enacted before the next meeting of the FATF in June, Dr Hook cautioned that the Maldives’ case would be taken under consideration.

“I can indicate that the Maldives is already on a list of jurisdictions that are under consideration by FATF,” he said.

He added that the Maldives “dodged a bullet” last year because the FATF “looked at PNG [Papa New Guinea] as an alternative.”

A review by the FATF “could take upwards to three years,” Dr Hook noted, “during which you in the Maldives would expend a huge amount of resources to try to deal with the issues.”

“You can dodge that bullet if you enact the legislation,” he advised.

Political will

Following statements by the delegation, MP Moosa Manik said that the committee could complete reviewing the legislation in “24 hours” and send it to the floor for a vote in the first week of March.

The opposition Maldivian Democratic Party MP urged the delegation to seek a commitment from the executive as the ruling coalition had “a clear majority” in the People’s Majlis.

In response, the delegation said it has met with Finance Minister Abdulla Jihad and was planning to meet Attorney General Mohamed Anil as well as officials from the Maldives Police Service and the Prosecutor General’s Office.

The MDP chairperson also alleged that some pro-government MPs could be involved in money laundering and might oppose enactment of AML/CFT laws.

MP Abdul Azeez – a member of the ruling Progressive Party of Maldives – however told the delegation that there was “no political will to delay this bill.”

“We are willing to do this and I think it is our obligation to pass this bill for the sake of the nation. There is no will to delay this purposely,” he said.

In his concluding remarks, Colvin said the delegation was encouraged by the assurances from committee members.

“We will make sure that in our report we reflect that. We will need to get back to the [APG] membership and advise them on the progress and we will look on with much interest in March and hope that the bill can make it through the parliament,” he said.

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MDP should boycott polls unduly influenced by Supreme Court, says Nasheed

The opposition Maldivian Democratic Party (MDP) should not participate in the upcoming parliamentary elections if the Supreme Court exerts undue influence over the Elections Commission (EC), former President Mohamed Nasheed has said.

Speaking at a campaign event in Male’ last night, Nasheed contended that the Supreme Court’s summoning of EC members over alleged contempt of court was an attempt to “intimidate” the independent institution.

The apex court, in collusion with the ruling coalition, was planning to “play the same game they played in the presidential election,” the MDP’s former presidential candidate alleged, adding that the ‘Progressive Coalition’ was certain of facing defeat.

“In my view, an election conducted with the Supreme Court exerting influence over the Elections Commission to deliberately commit electoral fraud or rig the vote will not be a legitimate election – in my view, MDP should not participate in such an election,” Nasheed said.

Neither the international community nor the Maldivian public would accept general elections boycotted by the MDP, Nasheed said.

Nasheed referred to new regulations (Dhivehi) formulated by the Supreme Court last week to specify procedures for initiating cases on their own accord, correctly predicting that the court was planning to prosecute EC members.

“If the Supreme Court delays the election, meddles with the voters list and commits fraud after summoning the Elections Commissioner tomorrow [Wednesday] and intimidating Elections Commission members, I would say that the damage to our democracy and our country from participating in such a election would be greater [than not participating],” he said.

Nasheed claimed that the MDP lost last year’s presidential election because of “fraud and deception”.

“In my view, if we give up the Majlis election the same way, we are losing our future, the future of our children and children’s children,” he added.

A free and fair election in which the public has confidence is the foundation of democratic governance, Nasheed stressed.

“When there is no justice in voting, everything loses legitimacy,” he said.

Nasheed concluded his remarks by calling on the Supreme Court not to “muddle the entire future and hope of this nation.”

Meanwhile, appearing on MDP-aligned private broadcaster Raajje TV last night, MP Ali Waheed claimed that the government was conspiring to postpone the parliamentary elections scheduled for March 22.

The MDP parliamentary group’s deputy leader said he had learned of plans to delay the polls in certain constituencies in a bid to ensure that the ruling coalition secures a majority.

“If they carry out these efforts again this time, we will bring the whole country to a halt,” he warned.

Troubled polls

Last year’s presidential election was marred by repeated delays, cancellations and police obstruction.

On October 7, the Supreme Court annulled the results of the first round of the polls conducted on September 7 in a controversial 4-3 decision – citing a confidential police report – despite unanimous positive assessment of the polling by more than a thousand domestic and international election observers.

While the secret police report alleging irregularities – which was not shared with the EC’s defence lawyers – was dismissed by a UN expert review, the credibility of the evidence cited by the apex court was also questioned by the Human Rights Commission of Maldives.

Following the first round in which Nasheed emerged the frontrunner with 45.45 percent of the vote, third-placed candidate Gasim Ibrahim sought annulment of the results alleging widespread electoral fraud.

Pending a ruling on the business magnate’s appeal, the Supreme Court indefinitely suspended the second round scheduled for September 28 and issued a supplementary midnight ruling ordering the police and military to forcibly prevent the EC from conducting the polls.

The EC had said it intended to comply with the constitutionally-mandated deadline for the run-off, but was forced to capitulate after it was surrounded by special operations police with orders to storm the building, arrest officials and confiscate ballot papers.

The eventual revote on October 19 was also obstructed by police, after Progressive Party of Maldives candidate Abdulla Yameen and Gasim refused to sign the voter registry – a requirement from a 16-point guideline imposed on the EC by the Supreme Court judgment.

The guidelines also compelled the EC to consider the Department of National Registry’s (DNR) database as the primary source for compiling the eligible voters registry.

While the revote was eventually held on November 9 and a second round was due to take place the next day, Yameen refused to sign the voter lists hours before polls were to open and the Supreme Court ordered the EC to conduct the run-off election on November 16.

In what was the EC’s sixth attempt in two months to conduct polls, Yameen narrowly defeated Nasheed with 51.39 percent of the vote (111,203) to the MDP candidate’s 48.61 percent (105,181).

Meanwhile, on January 18, Nasheed told reporters that the MDP suspected electoral fraud using fake national identity cards in November’s polls.

Nasheed contended that non-existent people were added to the database at the DNR as part of “efforts to rig the election through the Supreme Court.”

EC President Fuwad Thowfeek told the press last month that the commission was was forced to consider the DNR list as legitimate despite errors, such as citizens deemed deceased while alive.

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