Author: Ahmed Naish

Adhaalath party votes to sever coalition agreement with MDP

The religious conservative Adhaalath Party decided last night to break off its coalition agreement with the ruling Maldivian Democratic Party (MDP), after the party’s consultation council voted 32 to 2 to approve a resolution to leave the government.

Adhaalath becomes the last major party of the ‘Watan Edey’ coalition – formed to rally against former President Maumoon Abdul Gayoom in the second round run-off of the 2008 presidential election – to leave the MDP-led coalition.

The resolution on terminating the coalition agreement signed with the ruling party on June 30, 2009 states that the government ignored Adhaalath’s “sincere advice and suggestion” while the party was forced to stage street protests “to put a stop to serious matters related to the country’s religion and sovereignty.”

Among the 28 main points noted in the resolution included rising inflation under the current administration, refusal to reimburse deducted amounts from civil servants salaries, failure to alleviate the persisting dollar shortage, appointing unqualified “activists” to manage government corporations and insufficient measures against corruption in the government.

The Adhaalath party claimed that the government was “making secret deals with Israel in the name of the people and pursuing relations with Israel to an extent that threatens the nation’s independence and sovereignty.”

Moreover, the Adhaalath party accused the government of agreeing to “let Israel influence the country’s education curriculum.”

Among government decisions strongly contested by the party, the resolution also referred to a proposal to make Dhivehi and Islam optional subjects in higher secondary education and reclaiming a plot awarded to the Islamic College (Kulliya).

The final eight points meanwhile include the use of force against protesting parents of Arabiyya students, senior government diplomats expressing concern with Maldivian students going to Arabic or Islamic countries for studies, publishing regulations allowing sale of alcohol to non-Muslims in inhabited islands, insufficient cooperation with the Islamic Ministry’s efforts to close down brothels.

In addition, the party contended that the “essence” of the newly-published religious unity regulations was lost after it was diluted by the government, which held it up for 16 months.

Islamic Minister Dr Abdul Majeed Abdul Bari and State Minister for Islamic Affairs Sheikh Hussein Rasheed were reportedly not present when the resolution was passed last night. Neither had responded to calls at time of press.

Party President Sheikh Imran Abdulla said “senior government officials in Adhaalath” would be informed that they could no longer represent the party in the government.

At yesterday’s press conference, party spokesperson Sheikh Mohamed Shaheem Ali Saeed said the party had no plans to enter into a formal coalition with an opposition party and aspired to become “the most independent political party in the country.”

Sheikh Imran added that the party has not decided whether to field a presidential candidate in 2013.

He explained that the party will decide to either contest the presidency on its own or join a coalition based on the political circumstances in two years.

“That decision will be made by the consultation council when the time comes,” he said. “Nonetheless, as Sheikh Shaheem just said, we will do everything we can to ensure that a government that will work for the benefit of the public and for a brighter future for the people is elected in 2013.”

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Adhaalath Party condemns Christchurch College scholarships at Oxford

The Adhaalath Party has expressed concern over a memorandum of understanding (MoU) signed with Christchurch College at Oxford University last week to provide an annual scholarship for a Maldivian student.

The party claimed that the scholarship was the result of President Mohamed Nasheed, former Foreign Minister Dr Ahmed Shaheed and his successor Ahmed Naseem repeatedly “begging and pleading with Christian powers that Maldivians going to [Middle Eastern or Islamic universities] can only be stopped by sending Maldivian Muslim students to countries under the rule of the cross.”

The Adhaalath Party’s statement was accompanied by images of a church and what appeared to be choirboys.

In a statement last week, the Foreign Ministry noted that the scholarship “was initially discussed during President Nasheed’s visit to Oxford University in December 2010 and has now materialised into a wonderful opportunity for outstanding Maldivian students.”

“The scholarship will encourage Maldivians to study in the field of Environmental Sciences with a view to enhancing the Maldives’ capacity to manage the specific threats the country faces from climate change. On completion of their studies the scholars will return to the Maldives with exceptional expertise in this field.”

The Adhaalath party statement meanwhile claimed that Christchurch college “is a Christian religious college that offers modern education.”

“Former English Prime Ministers and Cabinet Ministers studied at the institution,” it continues. “In addition, a number of people who are Christian priests today studied there. The university also runs a Christian school for children called Christ Church Cathedral School. It is important to beware of scholarships our young ones could get from this school.”

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ACC asked to investigate Supreme Court Justice’s official trip to Addu City

The Anti-Corruption Commission (ACC) has been asked to investigate an official trip to Addu City by Supreme Court Justice Abdulla Saeed from August 30 to September 2, which took place during a four-day government holiday for Eid al-Fitr.

In a letter to the ACC last Thursday, lawyer Abdul Hameed Abdul Kareem questioned if the purpose of the visit – discussions with magistrates regarding administrative difficulties – could have been fulfilled while the courts were closed for Eid.

“I have learned that after traveling in the name of an official trip, [Justice Abdulla Saeed] spent most of this time on his Eid holiday,” reads the letter, requesting the ACC to investigate if expenses for the trip were covered by the court’s budget.

In addition, Abdul Hameed requested the commission to determine “how much time he spent at the courts” and if the Supreme Court Justice spent state funds for personal use.

A media spokesperson from the ACC told Minivan News today that the commission had received the complaint and would decide whether to conduct an investigation in due course. The complainant would be informed of the decision, the ACC official explained.

According to the Supreme Court website, “the main purpose of [Justice Abdulla Saeed’s] trip was to find out administrative difficulties faced by Addu City magistrate courts as well as to collect information needed for streamlining the judiciary.”

It adds that the former Chief Justice visited the magistrate courts during his four-day visit.

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DRP requests six month delay for general GST

Main opposition Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali has sent a letter to the President requesting a six-month delay to the introduction of a 3.5 percent Goods and Services Tax (GST) approved by parliament last month.

In his letter, the minority leader noted that according to parliamentary rules of procedure, only the government could submit tax legislation. He urged the government to delay the implementation of the GST to allow businesses enough time to prepare. The General GST is due to come into force on October 2.

Thasmeen argued that a number of citizens could be subject to legal penalties specified in the legislation if they were not provided sufficient information about registering and paying the new direct tax.

In a booklet handed out to media last month titled “DRP’s response to the government’s economic nuisance package,” the party noted that the General GST would affect small businesses such as cornershops, cafes and teashops.

The businesses would “need a lot of preparation” to maintain accounts, install “modern computer systems and hire accountants” as well as provide customer’s statements showing the GST percentage.

Morever, taxing “total value of business transactions” would not be possible with GST at zero percent for some items.

Considering the potential “administrative confusion” and the country’s heavy reliance on imports, the DRP argued that levying a customs duty at the entry point to the country was more effective.

President’s Press Secretary Mohamed Zuhair told Minivan News today that the government viewed the DRP as the main opposition party and “gives a high priority to their concerns.”

“But the President has been advised by financial experts that all taxes should be part of one network and it is not sensible to omit one tax for the whole system to work,” he said.

Zuhair noted that “people wanted to delay the introduction of political parties” in the past, adding that “we have lost 30 years without a tax system.”

In May, the International Monetary Fund (IMF) approved a three-year support programme after the government agreed to “a package of policy reforms that will help stabilise and strengthen the Maldives’ economy.”

Under the IMF programme, the government committed to:

  • Raise import duties on pork, tobacco, alcohol and plastic products by August 2011 (requires Majlis approval);
  • Introduce a general goods and services tax (GST) of 5 percent applicable to all sectors other than tourism, electricity, health and water (requires Majlis approval);
  • Raise the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013 (requires Majlis approval);
  • Pass an income tax bill in the Majlis by no later than January 2012;
  • Ensure existing bed tax of US$8 dollars a night remains until end of 2013;
  • Reduce import duties on certain products from January 2011;
  • Freeze public sector wages and allowances until end of 2012;
  • Lower capital spending by 5 percent
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ACC paid members’ phone bills illegally, finds audit report

Mobile phone bills of Anti-Corruption Commission (ACC) members were paid out of the commission’s budget illegally, according to the independent institution’s audit report for 2010 made public yesterday.

The audit report published on the website of the Auditor General’s Office found that the bills of mobile phones given for office use were paid by the commission from April 2010 onwards if the amount did not exceed Rf 650 per month.

“Since according to article 16(a) of the Anti-Corruption Act salaries and allowances for commission members shall be determined by the People’s Majlis (parliament), we note that following the parliament’s Public Accounts Committee’s (PAC) response on March 30, 2011 to the Anti-Corruption Commission’s letter on March 16, 2011, [the commission] stopped paying the phone bills of members,” reads the audit report.

“The [PAC] letter told the commission to cease paying phone bills until the Public Accounts Committee reviews phone allowances of institutions whose salaries are determined by the People’s Majlis and informs [the commission of a decision].”

In addition, the audit report noted that unused funds left over after ACC trips were not properly recorded under the applicable budget code.

Moreover, reports of such trips were not filed within three working days of the end of the trip as stipulated by clause 5.13 of the state financial regulations.

An ACC spokesperson had not responded to Minivan News at time of press. However ACC Deputy Chair Muaviz Rasheed told newspaper Haveeru today that the mobile phones were used for office work and the ACC received authorisation to pay the phone bills from the Finance Ministry.

While a monthly limit of Rf 650 was set, Muaviz said that the amounts paid were below the limit for most months.

The audit report meanwhile noted that the ACC’s financial statement was prepared in accordance with international public sector accounting standards and “shows the commission’s financial status truthfully and accurately.”

Out of the Rf16.5 million (US$1 million) annual budget released to the ACC in 2010, the report noted that Rf12.4 million (US$800,000) was spent on salaries and allowances for employees. Over Rf778,000 (US$50,400) was meanwhile spent on training staff.

The ACC audit report for 2010 is the first report released by the Audit Office since 2009 following former Auditor General Ibrahim Naeem’s contentious dismissal by parliament in March 2010 over corruption allegations. After rejecting the President’s first nominee, Naeem’s replacement – current Auditor General Ibrahim Niyaz – was eventually approved in May this year.

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JSC appeals Civil Court injunction to halt appointment process

The Judicial Service Commission (JSC) has appealed a Civil Court injunction issued on September 8 to halt the appointment of judges to superior courts pending a ruling on the legitimacy of the process.

A group of lawyers had filed a case contesting the legality of the JSC’s evaluation criteria – contained in a regulation drafted by the commission – on the grounds that it conflicted with both the constitution and the Judges Act. The lawyers requested the Civil Court to abolish the regulations and declare the commission’s shortlist void.

The final interviews of 17 shortlisted candidates were due to place on September 10, two days before the injunction or staying order was delivered.

The lawyers also claimed that two shortlisted candidates had close ties – as a spouse and a business partner – with two members of the commission, suggesting a clear conflict of interest as neither had recused themselves from voting in the JSC panel.

At today’s first hearing of the appeal at the High Court, JSC Lawyer Mohamed Waheed Ibrahim argued that according to article 143(a) of the constitution the Civil Court did not have jurisdiction to rule on the constitutional validity of “any statute or part thereof enacted by the People’s Majlis.”

In addition, Waheed contended the Civil Court order violated articles 144(a) and 145(c) of the constitution as well as articles, 20(a) and (b), 36 and 37 of the Judicature Act.

Waheed further argued that the Supreme Court had set a judicial precedent by transferring a Civil Court case regarding the appointment of five judges to the High Court bench.

In January this year, Criminal Court Judge Abdul Bari Yoosuf at the Civil Court claiming to show procedural and legal issues in the JSC vetting process. Bari’s case was later entered into by Family Court Chief Judge Hassan Saeed as a third party.

On January 20 – three days before the judges were due to be sworn in – the Civil Court issued a temporary staying order halting the appointments pending a final ruling.

The Supreme Court however transferred the case from the lower court a day later and conducted two hearings before dismissing it without issuing a verdict.

Waheed also claimed that the JSC was not offered enough time to prepare a defence as the Civil Court issued its injunction or temporary staying order on the night the case was filed.

The JSC requested the High Court to overrule the Civil Court order and declare that the trial court did not have the jurisdiction to rule on constitutional matters.

In response, Husnu Suood, former Attorney General representing the group of lawyers, contended that the case filed at Civil Court was not exclusively about the constitutional validity of the JSC regulations.

Suood explained that the issue was “problems in ranking certificates” in the JSC evaluation criteria, which the lawyers argued unfairly favoured graduates of the Islamic College of Maldives (Kulliya). The case also alleged conflict of interest on the part of two members, Suood added.

Moreover, Suood continued, a November 2008 Supreme Court ruling established a precedent that it did not have “exclusive jurisdiction on constitutional matters”, referring to a case filed by eight MPs appointed by former President Maumoon Abdul Gayoom contesting their dismissal by President Mohamed Nasheed.

The Supreme Court had ruled that the case should have been filed at a lower court.

On the issue of the High Court appointments, Suood noted that there was no judicial precedent set as the Supreme Court had not issued a verdict before dismissing the case on a technicality.

Disputing the JSC’s claim that the Civil Court had informed the commission of its hearing after office hours, Suood noted that the JSC had issued press statements between 4:00pm and 8:00pm on September 8.

In addition, the lawyers now claim that based on statements by the JSC at the Civil Court hearing, the regulations were not valid as they were not published in the government gazette.

The High Court panel consisting of three judges adjourned today’s hearing after informing the lawyers that a second hearing would be held if there were further matters to clarify.

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Two ton shipment of new five rufiya notes “routine”, says MMA

A shipment of newly-printed five rufiya notes brought in last week is part of a “routine” process and not intended to finance either the fiscal deficit or government expenditure, the Maldives Monetary Authority (MMA) has said.

According to a press statement issued by the MMA yesterday, the stock of five rufiya notes was running low and the new notes would be stored at the state treasury.

“This is routine work, every now and then we print different notes when the stock runs low,” explained MMA Executive Director Abdul Hameed Mohamed. “We print notes as often as is necessary. We are surrounded by water, fishermen handle it, it gets lost and sometimes we have to replace these old notes.”

Abdul Hameed stressed that the new notes would have “no effect on circulation” as it will be stored in the treasury and that there would be “no increase in the money supply.”

“As you know, the central bank in any country always prints money to replace damaged notes,” he said. “Replacing notes is something we do daily.”

Local media reported today that the shipment of new notes was brought in 40 boxes weighing 2.4 tons on an Emirates flight that landed on the morning of September 13.

“The MMA has brought in newly printed money while President Mohamed Nasheed has signaled that money might have to printed if the reduced amounts from civil servants salaries had to be given back,” reads a report on Sun Online.

Abdul Hameed speculated that “the only reason this has become news is because of the President’s remarks.”

In late 2009, the current administration ceased deficit monetization – printing money to finance the fiscal deficit – and the MMA introduced open market operations to mop up excess liquidity.

MMA Governor Fazeel Najeeb told press in August 2009 that printing local currency in previous years had led to the current dollar shortage as “there is too much rufiya chasing too few dollars.”

Prior to 2009, the MMA printed new money to issue loans and overdrafts to plug the expanding budget deficit – stoking inflationary pressures due to excess local currency in circulation.

Meanwhile in lieu of printing money and accumulating domestic debt, in December 2009 the new government began issuing US dollar denominated treasury bills to finance the deficit.

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Concerned citizens seek court order against committee allowance

A group of concerned citizens protesting a controversial Rf20,000-a-month (US$1,290) committee allowance, approved by MPs for themselves in December 2010, have filed a case at Civil Court seeking a court order to stop the Finance Ministry from releasing the funds to parliament.

A loose association of concerned citizens and members of civil society organisations launched a campaign last month after parliament’s Public Accounts Committee (PAC) decided to issue a lump sum of Rf140,000 (US$9,000) as committee allowance back pay for January through July this year.

Speaking to press outside the court building, lawyer Mohamed Shafaz explained that the grounds for the claim were constitutional provisions on non-discrimination (article 17) and equal protection and benefit of the law (article 20).

“For example, the reduced amount from civil servant’s salaries was in the 2010 budget [to be paid back] and in the 2011 budget as well if you look at it properly,” he said, arguing that Finance Ministry could not release funds for MPs’ committee allowance, which was approved in December 2010, without paying back civil servants.

“The money is coming from the same place,” Shafaz continued. “If something the civil servants have not received is going to be given to others, which was approved much later, the chance of civil servants receiving the reduced amount will be very slim.”

A court order was sought to halt the release of the funds until a court of law delivers a ruling on the issue, Shafaz said.

Shafaz also referred to article 43 of the constitution, which states that “Everyone has the right to administrative action that is lawful, procedurally fair, and expeditious.”

Austerity or bust

In October 2009 – almost a year into the new administration – unpopular pay cuts of up to 15 percent for civil servants were enforced as part of austerity measures to alleviate the country’s ballooning budget deficit – among the highest in the world at 26 percent of GDP in 2009 (the International Monetary Fund had refused financing to Sri Lanka because the country’s fiscal deficit reached 10.5 percent).

However the austerity measures were met with a severe political backlash. In December 2009, the opposition-controlled parliament added Rf800 million (US$62 million) to the 2010 state budget, including the restoration of civil servant salaries to previous levels and subsidies for sectors ranging from fishing and agriculture to private media.

“One of the primary drivers of the large fiscal deficit has been government spending on public wages, which has more than doubled between 2007 and 2009, and is now one of the highest in the world relative to the size of the economy,” Rodrigo Cubero, IMF mission chief for the Maldives, said in January 2010.

“Measures that would substantially raise the budget deficit, such as a reversal of previously announced wage adjustments, would also put the [IMF-backed structural adjustment] programme off track, jeopardising prospects for multilateral and bilateral international financing,” Cubero warned at the time.

After weeks of legal wrangling over restoring civil servants salaries, the Ministry of Finance accused the Civil Service Commission (CSC) of hiding “a political agenda”, and in February 2010 filed a case with the police asking them to investigate it on suspicion of trying to topple the government “and plunge the Maldives into chaos.”

At the height of the dispute in early 2010, permanent secretaries were ordered to submit different wage sheets by both the Finance Ministry and the CSC.

In April 2010, the Civil Court ruled that Finance Ministry did not have the legal authority to overrule the CSC. Although the government contested the ruling and refused to restore salaries to previous levels, the High Court upheld the lower court ruling in May this year.

Consequently in November 2010, the IMF delayed its third disbursement under the US$92.5 million programme, citing “fiscal slippages” caused by insufficient progress towards reducing the wage bill and passing tax legislation.

In March this year, Cubero told Minivan News that the IMF saw “bringing the fiscal deficit down as the key macroeconomic priority for the Maldives.”

“A large fiscal deficit pushes up interest rates, thereby undermining private investment and growth, and also drives up imports, putting pressure on the exchange rate and inflation, all of which hurts the Maldivian people, particularly the poor,” he said.

“With the government borrowing at the rate it has [to plug the deficit], it reduces the amount of credit available to the private sector, and that constrains the ability of the private sector to provide jobs and employment,” Cubero explained. “That then constrains economic growth. Furthermore, by spending more than it earns, the government is putting pressure on imports and the exchange rate.”

An internal report by the World Bank obtained by Minivan News observed that the Maldives was “facing the most challenging macroeconomic situation of any democratic transitions that has occurred since 1956.”

Civic action

Volunteers for the civic campaign meanwhile distributed information leaflets at bus stops in Male’ yesterday.

“Two of our group went on the bus and talked to passengers,” said Badr Naseer, a senior activist in the effort. “Ninety-nine percent of people support [the cause].”

Badr said he had personally filed a complaint at the Anti-Corruption Commission (ACC) requesting an inquiry into claims by some MPs that they functioned as “welfare officers” for their constituents.

Earlier this month, Transparency Maldives (TM) condemned remarks by MPs justifying the inflated allowance, noting that “such actions fall under article 3 of of the anti-corruption law and article 13 of the Anti-Corruption Commission Act regarding bribery.”

Badr revealed that the group had met MP Ibrahim Mohamed Solih, parliamentary group leader of the ruling Maldivian Democratic Party (MDP) and MP Ahmed Thasmeen Ali, leader of the opposition Dhivehi Rayyithunge Party (DRP) as part of diplomatic efforts alongside the street activism.

He added that the citizens group also hoped to meet former President Maumoon Abdul Gayoom – who is in the process of forming a new party with a number of MPs previously in the DRP – to discuss the committee allowance issue.

The awareness raising campaign is set to continue from 4:30pm to 6:00pm today at bus stops and ferry terminals in Male’.

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PPM hopes to sign up 3,000 members by midnight

The incipient Progressive Party of Maldives (PPM) began a recruitment drive at Dharubaaruge convention centre this morning to collect 3,000 signatures needed to officially register the party.

The Elections Commission (EC) approved the request to form the party last week after verifying an initial 50 application forms and authorised the fledgling party to begin recruiting members.

Briefing press at the convention centre today, Dunya Maumoon, eldest child of party figurehead and former President Maumoon Abdul Gayoom, said that the party’s target for the first day of official recruitment was to sign up 3,000 members by 12:00am.

“The registration will go ahead until 12 tonight. Everyone is invited to come and sign for the party,” she said. “Our hope is that the party will become a good and strong party.”

MP Ahmed Mahlouf – one of seven MPs who quit the main opposition Dhivehi Rayyithunge Party (DRP) to form the Progressive Party after months of factional strife – said that the registration process was delayed due to the tragic drowning incident of four school children and the principal of Hiriya School on Friday.

PPM registration“In the days that followed, the government did not provide us any building or facility,” he claimed. “We were able to get [Dharubaaruge] after a lot of work. And we have this place only for the day.”

The registration forms will be submitted to the EC at the beginning of next week, he said, adding that his “personal target” was to sign up 40,000 members to the party.

The MP for Galolhu South claimed that senior members of the ruling Maldivian Democratic Party (MDP) had joined the party.

The recruitment drive is going ahead at present only in Male’, Vili-Male’ and Hulhumale’, Mahlouf said.

Dunya added that the party would establish a mechanism to collect registration forms from the atolls in the coming days.

The DRP has meanwhile informed the party’s former ‘Zaeem’ or ‘Honorary Leader’  Gayoom that his name has been omitted from the registry upon request. Gayoom announced last week that he had left the party he had formed in July, 2005.

Corruption allegations

Reports meanwhile surfaced in local media today that allegations of corruption had been lodged at the Anti-Corruption Commission (ACC) against MPs Mahlouf, Ahmed Ilham and Ahmed Nihan Hussein Manik.

Haveeru reported that Mahlouf was accused of owning the “Jeans Shop” in Male’, issuing cheques to take large sums from politicians, and falsifying his annual financial statement.

Ilham was meanwhile accused of involvement in illegal businesses in Sri Lanka owned by MP Abdulla Yameen, who has announced his intention to contest in the party’s presidential primary.

Nihan was accused of purchasing a Demio brand car and 8181 vanity plate or domain.

Mahlouf and Ilham however dismissed the allegations as completely unfounded and anPPM effort to bring the MPs to disrepute and undermine the PPM’s recruitment drive.

The three MPs played a prominent part in the breakaway Z-faction in its struggle against the DRP leadership.

“I want to say that I will definitely try to get some money from the person who is trying to defame me,” said Mahlouf. “If I was greedy for money, I would be at MDP now. I have said in the media before that we have been repeatedly offered large sums to join the MDP.”

The allegations were “a joke”, said Mahlouf, as accusing Nihan of owning a car and Ilham of traveling to Sri Lanka did not amount to corruption.

Mahlouf claimed that according to information he received the complaint was filed at the ACC by former DRP MPs Ali Waheed, Alhan Fahmy and Abdulla Abdul Raheem. All three had defected to the ruling party.

“We’re talking about people who have been sold,” he said. “In addition, there is a hand of [DRP Leader Ahmed] Thasmeen [Ali] in this.”

The “Jeans Shop” was a family business owned jointly by his mother, father and two siblings, Mahlouf said, and that “it is not owned by me.”

Ilham meanwhile said that his family lived in Sri Lanka and he visited regularly for holidays and medical treatment.

“I don’t do business and have never done any business in the past,” he said, claiming that the person who filed the case at the ACC had apologised to him and admitted to “doing it for money.”

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