Author: Ahmed Naish

ACC obtains court order for MPs’ financial statements

A team from the Anti-Corruption Commission (ACC) entered parliament today with a court order to obtain financial statements of MPs.

A Majlis media official confirmed that the ACC team was working in parliament while the financial statements were available from the Ethics Committee.

ACC Chair Hassan Luthfy told Minivan News today that the commission obtained a court order from the Criminal Court last night and the team was sent in this morning.

“We hoped to get [the statements] legally but no solution was found through discussions with parliament,” he said.

Luthfy explained that the ACC was investigating allegations of corruption and bribery involving MPs after receiving a number of complaints.

Luthfy stressed that as “these are only allegations” he could not divulge further details or identify which MPs were involved since “it could violate their privileges.”

The ACC chair however revealed that the commission had received “about two to four complaints” regarding MPs.

In April this year, parliament reached an impasse on public declaration of assets by MPs after voting against a proposal by the Ethics Committee to not make the information available unless ordered by a court of law.

When MPs voted against the proposal 34 to 24, Deputy Speaker Ahmed Nazim declared the matter “void.”

“However, the Secretary General’s request for counsel on this matter has not been decided one way or the other,” he said at the time. “So the Secretary General will go ahead with it according to the rules of procedure.”

The Secretary-General had asked the Ethics Committee to determine whether MPs’ financial statements should be released to other state institutions upon request.

Secretary General Ahmed Mohamed confirmed to Minivan News that the requested financial statements and documents were provided to the ACC team before the court order expired at 3:00pm today.

According to Article 76 of the constitution, “Every member shall annually submit to the Secretary General of the People’s Majlis a statement of all property and monies owned by him, business interests and liabilities. Such declarations shall include the details of any other employment and obligations of such employment.”

Likes(0)Dislikes(0)

Parties stake positions on economic reform bills

The ruling Maldivian Democratic Party (MDP) and opposition Dhivehi Rayyithunge Party (DRP) have staked rival positions on the economic reform bills currently before parliament.

With two pieces of legislation of the 18-bill reform package completed by committee and up for a final vote next week, the majority and minority parties in parliament declared their stands at press conferences yesterday.

Briefing press at the MDP office, Majority Leader Ibrahim ‘Ibu’ Mohamed Solih stressed that the ruling party was “open to amendments from the opposition and ready to incorporate changes” to the General Goods and Services Tax (G-GST) bill and amendments to the Import-Export Act to excise and reduce import duties.

As of the 4:00pm deadline on Tuesday to submit amendments, Ibu Solih revealed that the MDP has proposed amendments requested by the Maldives Inland Revenue Authority (MIRA) and taken on board recommendations by the Maldives Association of Tourism Industry (MATI), Maldives Association of Construction Industry (MACI) as well as small businesses.

MDP has proposed completely excising import duties for fisheries and agriculture equipment and machinery, Ibu said, while maintaining current tariffs for imported fruits and vegetables to protect local farmers.

The proposed GST of five percent would meanwhile be reduced to 3.5 percent from October to December 2011, explained MP Abdul Raheem Abdulla, after which it would be raised to five percent next year.

Small businesses and “corner shops” would be exempt from the General GST, he added.

DRP Deputy Leader Ahmed Mohamed and MP Dr Abdulla Mausoom meanwhile told press yesterday that the party would oppose the introduction of a personal income tax.

“The main reason is that is going to be taken directly from the people,” said Ahmed Mohamed, former CEO of the State Trading Organisation (STO). “We will do everything we can to see that the bill does not get passed.”

As MDP currently has enough votes to pass the bill, he continued, the party would seek the support of other opposition MPs and Independents.

In addition, the main opposition party would attempt to delay the implementation of the tax bills to provide more time for both the public and businesses to adapt to the new system.

Moreover, the minority party would oppose an amendment to the Immigration Act, which would provide resident visas for skilled expatriate workers, as the party believes the move would make it harder for Maldivians to find employment.

DRP MP for Kelaa Dr Abdulla Mausoom told Minivan News earlier this week that the party would propose retaining import duties for “watermelons, papaya, bananas and mangoes to protect local farmers” to ensure price competitiveness for local agricultural produce.

“The rest is the way the MDP wanted,” he said. “With the numbers in parliament right now, MDP can pass bills the way they want.”

Following a meeting with President Mohamed Nasheed Saturday night, DRP Leader Ahmed Thasmeen Ali told press that the party “will not accept” proposed growth in state expenditure for 2012 and 2013 as “it would not be sustainable.”

Appearing on private broadcaster DhiTV the following night, Thasmeen said that state expenditure levels reaching over 60 percent of GDP was worrying.

“The figure has become so high because expenditure from the budget increased in response to special circumstances of the [December 2004] tsunami has been maintained at that level,” he explained.

While acknowledging that additional revenue was needed to finance the deficit accumulated since 2005, Thasmeen said that he objected to a proposed growth of about Rf1 billion in expenditure in 2013 since it was unclear how the increased spending would spur economic growth and improve productivity.

Responding to the minority leader’s statements, Ibu Solih said yesterday that increased expenditure was necessary to plug the inherit budget deficit and service high levels of public debt.

“13.9 percent of expenditure from the 2010 budget was for paying back loans,” Ibu noted. “There is no way we can escape that.”

The MDP MP for Hinnavaru asserted that the “answer to opposition concerns of how taxation proceeds would be utilised” was the fiscal responsibility bill proposed by the government, which would impose limits on spending and restrict annual growth of public debt to 3.5 percent per year.

Meanwhile at today’s sitting of parliament the committee report on the G-GST bill was presented to the floor, after which MPs were invited to submit amendments.

Some 39 amendments were submitted to the draft legislation while voting is due to take place when the sitting resumes at 10:00pm tonight.

Likes(0)Dislikes(0)

President apologises on behalf of state to people of Thinadhoo

President Mohamed Nasheed has apologised to the people of Gaaf Dhaal Thinadhoo for “injustices resulting from measures taken by the government of the day” to end a short-lived secession of three southern atolls from 1959 to 1963.

Speaking at a working session of the cabinet held in Thinadhoo yesterday, President Nasheed said that the Thinadhoo Island Council had requested the apology and acknowledged that the central government in Male’ had “acted unjustly” towards the people of Thinadhoo in the suppression of the separatist movement.

Havaru Thinadhoo, historical capital of Huvadhu atoll, was attacked and depopulated on the orders of Prime Minister Ibrahim Nasir in February 1962.

Following Tuesday’s official apology at the cabinet meeting – held outside Male’ for only the second time – Vice President Dr Mohamed Waheed Hassan Manik noted that his grandfather was among those forcibly expelled and stressed the importance of documenting the events in official Maldivian history.

Dr Waheed told state broadcaster MNBC One that “today the President who is the highest official of state has asked the forgiveness of the people on behalf of the state.”

“As someone who hails from Thinadhoo, I am very happy and grateful for [the apology]. I rest assured that everyone will accept the apology by the state,” he said.

The cabinet meanwhile discussed a request by the island council to revert the island’s name to ‘Havaru Thenadhoo’ and decided to hold a public referendum on the proposal.

The working session of the cabinet in Thinadhoo was attended by state and deputy ministers, island councillors and directors of regional corporations and featured a presentation on planned development projects.

At a ceremony after the cabinet meeting, President Nasheed inaugurated the Thinadhoo Development Corporation to develop the reclaimed area of the island and handed over the completed stadium of the Upper South Province to the island council.

Inhabited islands of the Maldives “have to be connected and linked together to ensure development,” Nasheed said at the ceremony.

Likes(2)Dislikes(0)

DRP MP proposes two-year lease extension for resorts under development

Amendments were proposed to the Tourism Act today to extend leases by two years to offer a “construction period” for tourist resorts, hotels and guest houses with stalled development.

Presenting the amendment bill to parliament, MP Mohamed Mujthaz of the opposition Dhivehi Rayyithunge Party (DRP) explained that the legislation would write-off unpaid fines from the new resorts as heavy fines were an impediment to financing the development or attracting foreign investors.

“Of the 84 islands leased for resort development, only 10 have been completed while 74 have not,” he said. “With the current prices in the construction industry, millions of dollars are needed to develop the most ordinary resort. Considering the 74 islands with stalled development, this is a large amount.”

He added that local banks did not have the capacity to finance the projects while international financial institutions were not “too supportive.”

If passed into law, the proposed amendments would also replace existing guidelines for calculating fines for non-payment of rent. Under the new rates, fines for non-payment of rent for one quarter would be set at five percent of the total rent; 12 percent for two quarters; 18 percent for three quarters; 25 percent for three quarters; and 50 percent for one year of unpaid rent.

Moreover, article 8(c) of the bill states that the government must not charge rent for the two-year construction period.

In the preliminary debate on the amendments, MP Riyaz Rasheed of minority opposition Dhivehi Qaumee Party (DQP) criticised the current government for “not paving the way to obtain loans” and leasing additional islands for development.

DRP MP Yousuf Naeem however noted that the amendments had “serious problems.”

Naeem – affiliated with the Z-faction of the DRP – claimed that similar amendments previously passed to extend resort leases to 50 years “is now in the process of being abolished by the Supreme Court.”

“The reason is because some honourable MPs voted for it in violation of clause 158(a) of parliamentary rules of procedure,” he explained, referring to a conflict of interest on the part of resort owners in parliament.

The MP for Felidhoo noted that as some resort development projects had been stalled for six or seven years, he did not support a further extension of two years with suspended rent.

“These islands were leased after competitive bidding processes with many parties,” he said, adding that it would be disrespectful towards the rights of losing bidders if the government were to write-off debts or unpaid fines.

“The government is owed US$154 million in fines alone, not to speak of rents,” he continued.

MP Mohamed Riyaz of the ruling Maldivian Democratic Party (MDP) concurred with Naeem and questioned whether a two-year extension would allow the resorts to become operational.

MDP Hamid Abdul Gafoor noted that the state was owed US$320 million as unpaid rent and fines, which was “not a small amount” to be written off.

DRP MP Dr Abdulla Mausoom however argued that parliament was forced to “enter micro-governance” as a result of the current administration’s “insincerity” and “disregard of the law and doing things in the margins.”

The proposed law would ensure that the government could not impose double standards on tourist businesses, Mausoom said.

Likes(0)Dislikes(0)

“Maldives needs postmortem facilities”: Independent MP Nasheed

A mechanism to conduct autopsies or postmortem examinations should be established in the Maldives to avoid unexplained deaths of tourists becoming “issues of national importance”, Independent MP Mohamed Nasheed advocated at parliament today.

Speaking during debate on a motion without notice prompted by the disappearance of two Japanese tourists last week, Nasheed argued that “the problem among us is not just the incidents [of tourist deaths] themselves” but the absence of a mechanism to investigate “sudden, unexpected, unexplained or suspicious deaths.”

“Incidents will occur and people will die but what we should know for certain is how it happened,” he said. “If that mechanism is established among us, every time a person disappears or is found dead, we would not have to debate it in parliament as a worrying matter of national importance.”

A coroner’s or medical examiners office could be set up to assist police, Prosecutor General’s Office and the courts, he added.

Presenting the motion, MP Ali Arif of the opposition Dhivehi Rayyithunge Party’s breakaway Z-faction said that two incidents in the space of 30 days was “proportionately high for the Maldives,” as the tourism industry was “the goose that lays golden eggs.”

Earlier this month, two British tourists died in a quad-bike accident on Kuredhu Island Resort.

Arif said that Tourism Minister Dr Mariyam Zulfa had recently expressed concern in the media over security measures, noting that resorts had not complied with notices to establish safety mechanisms to monitor tourists out at sea.

“We’ve notified the resorts three times to build watchtowers, but they keep insisting on how they can build such a huge structure. Even though it’s called a tower it does not necessarily have to be a huge structure. All we’re saying is that a system or mechanism should be established to monitor tourists out in the sea to ensure their safety. But that’s not being done either,” Haveeru reported Dr Zulfa as saying.

If the resorts were refusing to comply with notices from the Tourism Ministry, said Arif, “they should be closed immediately and put back on the market only after they are reformed.”

Arif added that a solution was urgently needed “even if it is brought through such harsh measures.”

The DRP MP for Vaikaradhoo speculated that “maybe the letters [from the Tourism Ministry] are lost at middle management.”

MP ‘Colonel’ Mohamed Nasheed of the ruling Maldivian Democratic Party (MDP) however urged MPs to be “a bit more mature” as debating every incident in parliament “leads to unwanted negative coverage in the foreign media”.

Several other MPs concurred that motions without notice – which opens the floor for a one-hour impromptu debate but does not lead to any concrete action – should not be proposed in response to every single incident involving an explained death or disappearance of tourists.

Unwarranted speculation by MPs would harm the tourism industry more than the incidents of tourist deaths, Colonel insisted, “because tomorrow the newspapers of their countries will cover it as major news since they believe the issue could only reach parliament if it was very serious,” he said.

Independent MP Ahmed ‘Sun Travel’ Shiyam, owner of Sun Hotels, meanwhile called on MPs to stop “pointing accusatory fingers” at the tourism industry.

Likes(0)Dislikes(0)

Government seeks bipartisan support for economic reform package

President Mohamed Nasheed has signaled the government’s willingness to address opposition concerns and incorporate changes to the proposed economic reform bills currently before parliament.

Speaking to press following an official meeting with main opposition Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali at the President’s Office last night, Nasheed said that the government would consider DRP proposals after “discussions at a technical level.”

“Our wish is to find a way to enter into detailed discussions with the DRP,” he said. “I asked Thasmeen about it and he said they will give an answer after consultation with their party.”

He added that broad consensus and bipartisan support was very important before putting a taxation system in place: “In my view, all citizens and politicians in the country understand very clearly that establishing a taxation system is not going to benefit a particular government,” he said.

President Nasheed noted that the government had consulted the tourism industry and received support for the proposed reforms.

Thasmeen meanwhile told press outside the President’s Office that he conveyed concerns about the proposed growth in expenditure over the next two years as well as the impact of the personal income tax.

“We cannot accept government expenditure exceeding the current Rf13 billion [annual state budget] after levying new taxes,” he said.

The minority leader of parliament said that the party was “especially concerned” about the income tax as “all citizens would be affected.”

Speaking to Minivan News today, DRP MP Dr Abdulla Mausoom confirmed that “a technical team” from the party will engage with the government to discuss details of the concerns expressed by Thasmeen at last night’s meeting.

“We have a parliamentary group meeting tonight to discuss what the DRP is going to propose,” he said.

The “prime focus” at the moment was the two bills completed by committee, said Mausoom, which were bills on the General Goods and Services Tax and an amendment to the Import-Export Act to excise and reduce import duties.

While final amendments to the bills are due before Tuesday, Mausoom said that the DRP would propose maintaining import duties for “watermelons, papaya, bananas and mangoes to protect local farmers” and ensure price competitiveness for local agricultural produce.

“The rest is the way the MDP wanted,” he said. “With the numbers in parliament right now, MDP can pass bills the way they want.”

President Nasheed meanwhile told press last night that Thasmeen gave assurances that he would “not play any part in bringing Majlis to a halt.”

“As you know, the government has support enough to pass the bills,” he said. “But that would not be best for both the government and the people for such a major change.”

Nasheed stressed that a comprehensive package was proposed to ensure that the new taxation system would be “well-rounded and water-tight.”

Concluding the press conference, President Nasheed praised Thasmeen for showing the “necessary principles of a statesmen.”

Likes(0)Dislikes(0)

Government to withdraw no-confidence against MMA Governor

The government will withdraw a no-confidence motion against Maldives Monetary Authority (MMA) Governor Fazeel Najeeb, President Mohamed Nasheed announced last night.

Briefing press about a meeting with opposition Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen, President Nasheed said that he did not believe the motion should be carried forward at a time when the government had proposed sweeping economic reforms.

“In my view, it should not be brought to the floor,” he said. “I will inform the Speaker of Parliament in a letter [Sunday] to this effect. I feel that we will need Fazeel Najeeb’s experience at a time when we are bringing major changes to the government’s economic and fiscal policy and we should acknowledge the work that he has done.”

He added that the government believed it could “go forward” with Fazeel Najeeb as the governor of MMA.

The President’s announcement comes after a five member sub-committee of the opposition-dominated Public Accounts Committee evaluated the complaints against Najeeb and declared the stated nine reasons “baseless.”

On the charge of not attending MMA board meetings, the sub-committee found that Najeeb had chaired 82 percent of the central bank’s board meetings.

The sub-committee consisted of MPs ‘Colonel’ Mohamed Nasheed and Abdulla Abdul Raheem from the ruling Maldivian Democratic Party (MDP) and MPs Ali Azim and Dr Abdulla Mausoom from the opposition Dhivehi Rayyithunge Party (DRP).

Local media however reported today that parliamentary procedure might not allow the motion to be withdrawn at this stage, with the Public Accounts Committee due to present its report to the floor.

In March this year, the MDP parliamentary group called for Najeeb’s dismissal, accusing him of “repeatedly failing to fulfill his legal obligations.”

Likes(0)Dislikes(0)

Finance Ministry asked to sell resorts with outstanding rent payment notices

The Tourism Ministry has requested the Finance Ministry enforce a cabinet decision to recover outstanding rent and fines from seven resorts, either through further negotiation or sale of the resort properties.

Tourism Minister Dr Mariyam Zulfa confirmed to Minivan News that a letter was sent to the Finance Ministry on Tuesday, requesting that it “take the measures decided by cabinet as the period [for repayment] has expired, that is to sell the resorts or recover the amounts owed through discussions.”

As 90-day notices had been given to resorts with unpaid rent on two occasions, said Zulfa, the delays were “a bit too much.” Last month the Tourism Ministry issued “a final warning” to ten resorts to settle at least 25 percent of the amounts owed before July 25 or have their licenses revoked. Three resorts have since complied with the notice.

The Tourism Minister revealed that she had argued against revoking licenses because it would “narrow the chance” of recovering the outstanding rents.

“Also when licenses are revoked, the resort has to be closed down immediately regardless of advance bookings, guests already at the resort and employees working there,” she explained, adding that as the resorts would be sold as a going concern, it would continue to operate.

In addition, different resort businesses faced “different challenges, such as financial constraints.”

“I know that from the day we gave notice [the resort companies] have been trying to raise the money overseas,” she continued. “But we cannot give further extensions as it would not be fair to others as well.”

Zulfa observed that the notices have been “very effective”, as a number of resort facilities had complied and paid outstanding rents and fines.

“As of July 25, the government is now owed US$12.47 million,” she revealed, adding that the figure was “considerably lower” than before.

Local media reported last month that the resort facilities owed over US$20 million to the state.

Zulfa dismissed speculation in the media at the time that the resorts had been afforded special treatment as some were owned by high-profile members of the ruling Maldivian Democratic Party (MDP), including MP Ahmed Hamza and Yacht Tours owner Abdulla Jabir.

The letter to the Finance Ministry however requested measures be taken against Alidhoo and Kudarah Resorts (Yacht Tours), Giraavaru Island Resort (owned by Abdul Rauf, M. Sunrose), Kihaadhupparu Island Resort (Athamaa Marine International) and Zitali, Filitheyo and Medhufushi (owned by the family of MP Hamza and Economic Advisor to the President Ali Shiyam).

“It is just a coincidence,” said Zulfa. “My mandate is to vouch on behalf of all stakeholders regardless of which party they belong to.”

Local daily Haveeru reported today that according to the Maldives Inland Revenue Authority (MIRA), a portion of the outstanding rents and fines had been paid by the companies. However MIRA would not be withdrawing its court cases against the resorts.

Commissioner General of Taxation Yazeed Mohamed told local media last month that MIRA “will not back down” or hesitate to take legal measures against businesses with outstanding rent and fines.

Zulfa said today that the Tourism Ministry would meet MIRA officials next week to discuss the possibility of reaching out of court settlements to recover the owed amounts.

Likes(0)Dislikes(0)

Police searching for missing tourists from Adaaran Hudhuranfushi resort

Police are searching for two tourists who reportedly went missing on the Adaaran Hudhuranfushi resort on Lhohifushi Island.

Sub-Inspector Ahmed Shiyam confirmed that police had received a report of the missing tourists, but could not provide any further details.

Local newspaper Haveeru has reported that the missing couple were Japanese, however this was not confirmed by police.

The two tourists were reported to have been last seen at dinner on Tuesday night, but it was believed that had not returned to their villa afterwards, Haveeru reported.

The Maldives National Defence Force (MNDF) is on standby to begin a search effort at sea if police and resort management were unsuccessful in locating the guests.

“We’re usually tasked to search for people who go missing while they’re at sea. We’re ready to search the resort’s lagoon if the police fail to find them from the island,” an MNDF official said.

Minivan News contacted the resort to clarify the story but was referred to its head office in Male, which had closed for the day.

Likes(0)Dislikes(0)