Ahmed Naish – Page 78 – Minivan News

Opposition behind assault on MP Nazim Rashad, MDP claims

The ruling Maldivian Democratic Party (MDP) has strongly condemned the “uncivilised and brutal assault” on Thulhaadhoo MP Nazim Rashad last night, accusing opposition parties of planning and carrying out the attack.

A press release by the party today states that “the party believes the attack on Nazim was a planned, cruel and cowardly act.”

“In the view of the party, these cowardly acts planned by opposition parties are purposely carried out to obstruct the valuable efforts of the sincere MPs of the MDP parliamentary group and intimidate them,” it reads.

It adds that such incidents would not discourage or hamper “the hard work of MDP members to establish and consolidate democracy in the Maldives.”

The press statement concludes by calling on all political parties to choose peaceful dialogue to resolve political differences.

Local daily Haveeru meanwhile reports that the former Independent MP was assaulted around 11:30pm when he came out of the Thandhoor Cafe’ in Buruzumagu.

According to an eyewitness, a person riding a GN motorcycle struck Nazim on the face “about three times and yelled at him before getting away.”

The eyewitness told Haveeru that the attacker accused Nazim, a former Islam teacher, of expelling him from Majeedhiya School.

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Weekly state expenditure to be made public

The government will publicise details of weekly state expenditure starting from next month, President Mohamed Nasheed announced Monday night at the launching of the government’s “Fiscal and Economic Reform Programme.”

In his speech at the ceremony, President Nasheed stressed that “every single coin we get is the property of the Maldivian people and wealth created by Maldivian businessmen.”

“Along with a tax system, what we need the most is a transparent mechanism for expenditures,” he said. “For that mechanism to be perfect is essential for us to successfully implement the [taxation] system.”

At Monday night’s ceremony, captains of the tourism industry unreservedly endorsed the economic reform agenda, consisting of 18 pieces of legislation to introduce direct taxation, excise import duties, encourage private ownership of land and facilitate ease of doing business.

President Nasheed went on to say that details of government revenue and expenses should be clear to the public through independent institutions, such as the Auditor General, the Anti-Corruption Commission and parliament.

“It might be difficult for this government to instill this habit among us,” he continued. “However, it is absolutely necessary for governments to come and future generations. No ruler should consider anymore that assets of the Maldivian state belongs to him.”

On how proceeds from the new taxes are to be utilised, Nasheed reiterated the core pledges of the ruling Maldivian Democratic Party (MDP), which include providing affordable housing, lowering cost of living, establishing transport networks, ensuring universal health insurance and combating drug abuse and trafficking.

President Nasheed observed that taxation was introduced in other countries after “serious unrest, conflict between the public and businessmen and with some countries plunging into civil war.”

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Tourism magnates endorse proposed economic reforms

Prominent businessmen and magnates of the tourism industry endorsed the government’s economic reform agenda and introduction of direct taxation last night.

Speaking at a launching ceremony for the “Fiscal and Economic Reform Programme,” Mohamed Umar Manik, chairman of the Maldives Association of the Tourism Industry (MATI), observed that a sustainable source of government revenue was necessary for providing public goods and services.

“Today we have democracy in our country, but democracy can only be strengthened if we are able to deliver,” said the Chairman of Universal Enterprises. “To do this, our government must have sources of income. A detailed reform agenda has been proposed for this. In my view, it is an ideal reform programme.”

Manik congratulated President Mohamed Nasheed and “those who framed the reform agenda.”

Following consultation with the government over the proposed taxes, MATI said in a statement earlier this week that the absence of a taxation system in the country “similar to tax regimes successfully implemented in other countries” was a serious impediment to development and economic growth.

Old ways of thinking

Preceding the MATI chairman, Mohamed Waheed Deen, philanthropist and owner of Bandos Island Resort, argued in an impassioned speech that a taxation system was essential for democracy to deliver rising standards of living.

“This should have been done and finished 30, 40 or 50 years ago,” he said. “I sincerely thank our young President for beginning this effort today.”

A taxation system had to be introduced “because we are using the people’s property,” Deen contended.

“How can I say that I own Bandos?” he said. “It is not mine. It belongs to the Maldivian people.”

Taxation was the means for a more equitable distribution of wealth, Deen said: “Who wouldn’t want to send their child abroad for higher education? But can we facilitate it for them today?”

The government’s economic reform programme was necessary because “we do not want to keep the gap between rich and poor in this country anymore,” Deen asserted.

“What is the main reason a country becomes impoverished?” he asked. “I believe that one of the main reasons is refusal to tell the people the truth by many successive governments, many kings, until we have come to this point.”

In the Maldives’ long history, Deen continued, the public were indoctrinated to not criticise the government and given to understand that “only a particular group, from a particular family, could rule.”

Deen speculated that “the biggest challenge” the government’s economic reform agenda would face will be “changing people’s mentality.”

“This is the biggest problem facing our country today: [one side says] ‘everything is going right’ [while the other says] ‘nothing is going right,’” he explained. “So we have to educate our people, especially the councils.”

Deen also cautioned against unprincipled opposition to the government: “We could stay angry, hateful and disapproving and say ‘go on, run the government’ but sadly – remember this well – any harm this government suffers, the people will suffer many times over.”

Waheed Deen began his remarks by quoting the Quran 3:26: “O Allah. Lord of Power (And Rule), Thou giveth power to whom Thou please, and Thou strip off power from whom Thou please: Thou endow with honour whom Thou please, and Thou bringeth low whom Thou please: In Thy hand is all good. Verily, over all things Thou hast power.”

“Fruits of freedom”

MATI Secretary-General ‘Sim’ Ibrahim Mohamed meanwhile concurred that Maldivians could only “taste the fruits of political freedom” by liberalising and modernising the economy.

Following graduation from the ranks of the Least Developed Countries (LDCs), said Sim, the country could no longer rely on loans and foreign aid.

“In a fundamental sense, taxes are what the people give to the government they elected to manage their affairs,” he said.

Contrary to popular opinion, Sim continued, MATI had been advocating a taxation system as the organisation believed a sound fiscal policy was essential for “day-to-day planning of business matters as well as national affairs.”

In addition to fiscal responsibility, he added, new legislation and strengthening of the judicial system was also needed to foster investor confidence while stalled development of new resorts should be restarted to spur employment and private sector growth.

Sim concluded his remarks by appealing to “everyone who has to pay taxes, please pay taxes.”

“Bold initiative”

In his speech, Sunland Travels Director Hussain Hilmy reiterated that the Maldives’ “economic policy and legal framework needs to undergo modernisation and reform.”

“We in the business community welcome the bold initiative being undertaken by your administration to carry out a programme of comprehensive economic and fiscal reform,” Hilmy said.

He added that businesses were “delighted” with the government’s policy of a “shift away from import duties as a major source of government revenue.”

Hilmy observed that for successful tax administration, “transparency, accountability, predictability and effective combating of corruption” were necessary “preconditions.”

While the local tourism industry “has been the main engine of growth in the Maldivian economy for the last 40 years or so,” Hilmy warned that “tourism as we all know is an extremely volatile industry subject to sudden shocks and highly sensitive to fluctuations in global economic conditions.”

He suggested that a successful tax system should therefore “ensure the competitiveness of Maldivian tourism in the global market place.”

“We in the tourism industry also welcome your efforts to reduce public expenditure and wastage and create a more efficient and lean government,” he continued. “I can assure that lest there be any doubt that there is full confidence on the part of the tourism industry in the proposed reform programme and we have every confidence that this programme will be able to deliver the kind of success that we all wish and the kind of prosperity that we all are looking for.”

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“Taxation system long overdue,” says MATI

The Maldives Association of Tourism Industry (MATI) has declared its support for the government’s economic reform programme and the introduction of direct taxation.

In a press statement yesterday, the association of industry leaders noted that the absence of a taxation system in the country “similar to tax regimes successfully implemented in other countries” was a serious impediment to development and economic growth.

“The introduction of such a taxation system to the Maldives is long overdue,” MATI said in its statement.

As the enactment of direct taxation would increase state revenue and reduce government borrowing from banks, “this association believes that banks lending to private businesses will increase and job opportunities will be created.”

“This association believes that as a result of [the economic reforms], economic growth will quicken and challenges faced by the Maldives tourism industry will be solved,” the statement reads.

MATI warned that “it is certain” that if state revenue was not increased “with immediate effect” the domestic economy would be adversely affected.

Consultations

The statement of support from MATI comes after the Tourism Ministry last week condemned “misleading statements in the media” by the organisation about the government’s proposed economic reforms.

The Tourism Ministry claimed that “MATI’s misleading statements in various media recently about the tax bills of the government’s economic reform agenda imply that the government’s efforts were undertaken without consulting officials from the tourism industry.”

The Ministry said it had “consulted a number of parties active in the tourism sector and sought advice for shaping the tax bills so that it would not be a disproportionate burden on the industry.”

“After these consultations, the Ministry is assured that businesses in the tourism industry support the reform agenda. Likewise, those in the front ranks of the tourism industry as well as MATI support it. Therefore, [the ministry] regrets an organisation like MATI making statements that are contrary to the advice and suggestions of senior industry leaders.”

President Mohamed Nasheed has meanwhile welcomed MATI’s support for the government’s fiscal and economic reform plans.

“The President believes that the fact that MATI agreed to fully support the government in its economic reform programmes, after deliberations between MATI and the government, is a sign that they support the measures taken by the government to improve the state of the Maldivian economy and increase the state’s income,” reads a statement from the President’s Office today.

Recommendations

Following consultations with the government, MATI proposed a series of recommendations on the new taxes.

In its comments on the proposed legislation – obtained by Minivan News – MATI stressed the need to educate the public and ease in the taxes gradually.

“There is a need to study the effects of the combined burden of having to pay all these taxes on those affected,” the association noted.

On the introduction of a five percent General Goods and Services Tax, despite the successful introduction of a Tourism Goods and Services Tax (T-GST) in January this year, MATI noted that “T-GST was collected from a highly regulated sector of the economy. The same cannot be said of the other sectors of the economy or of the general public who would end up paying this tax.”

MATI argued that the GST could stoke inflationary pressures, urging “careful study of the effects of GST on the economy.”

“For the tourism industry – Costs of local purchases will go up by the GST amount or more. Direct imports will increase in order to avoid GST. Resorts will have to pay both T-GST & GST,” MATI noted. “Confusion will arise due to different rates being applied. In view of this it is suggested that eventually the two taxes should merge into one GST.”

The organisation also recommended delaying the introduction of a private income tax (PIT) to January 2013 to establish a regulatory framework and raise public awareness.

The organisation contended that the progressive income tax rates – from 3 percent to 15 percent for incomes above Rf30,000 (US$1,900) – were “especially targeted at the very rich.”

“Under the proposal, people earning one million rupees per year will pay about 2.8% of their income as PIT, whereas a person earning MRF10 Million per year will pay about 13.25% of the income as PIT,” it noted.

Moreover, MATI urged that plans to raise the current 3.5 percent T-GST to 6 percent in January 2012 and 10 percent in January 2013 be scrapped in favour of retaining the current rate until a recommended hike to 7 percent in January 2013.

“Tourism industry is already paying a lot to the Government and therefore, we urge the Government to give the industry a breathing space to help the industry revive from low occupancy, heavy operating costs and the economic chaos caused by recent financial crisis in Europe,” MATI said, cautioning against high taxes leading to the Maldives becoming “an even more expensive destination.”

MATI further noted that the taxes were “especially heavy on the tourism industry and will result in a very negative impact on the industry.”

“Tourism will cease to be an attractive industry to invest in. As a result, new investments will be slowed. Proposals to banks to borrow will not look that attractive any more. Bank lending to this sector will become more and more selective. This is not what we like to see in this country,” MATI stated. “Finally, should we continue to ‘milk the cow dry’? Certainly not is the answer.”

“Agreeable”

President Mohamed Nasheed responded to MATI’s recommendations in a letter yesterday, expressing the government’s gratitude for the comments.

“The purpose of these reforms are to set in place the foundation needed to build a strong and modern economy befitting the Maldives’ status as a middle-income country, and to enable the state to provide the necessary services that the people of this country expects,” the letter reads. “In addition to the tax reforms that will allow for a sustainable revenue base, the government’s programme include important reforms such as facilitating the ease of doing business and strengthening property rights.”

On the recommendations by MATI, the President’s letter noted that “the government is agreeable to reduce the proposed rate of tourist sector GST to become effective from January 2013 to 8 percent from the current proposed rate of 10 percent.”

The government was also “agreeable” to MATI’s proposals on capital allowance, pension payments and deducting interest payments from banks and other financial institutions in full, the President’s letter states.

On the impact of the taxes on the economy, the letter notes that “studies have shown that proposed tax rates are lower than those in other island economies and thus will not have an overbearing effect.”

Addressing skepticism of balancing the state budget with the new revenue sources, President Nasheed said that “the revenue impact on the proposed taxes will bring income up to a level where necessary expenditures can be met and lead to a balanced budget in 2015.”

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MIRA to accept all payments except tourism taxes in rufiya

All payments to the state except tourism-related taxes will henceforth be accepted only in Dhivehi rufiya, the Maldives Inland Revenue Authority (MIRA) announced today.

On August 9, the cabinet decided that all fees and payments to the government must be paid in local currency, in a bid to alleviate an acute dollar shortage in the Maldivian economy.

According to a press statement issued by MIRA, Commissioner General of Taxation Yazeed Mohamed said today that the authority was in the process of implementing a directive from the Finance Ministry to enforce the cabinet’s decision.

Discussions were taking place with concerned authorities to finalise administrative matters to collect payments in rufiyaa, MIRA said in its statement.

“Efforts are underway in collaboration with the Finance Ministry to amend the Tourism Goods and Service Tax (T-GST) Act and Tourism Act to accept T-GST, tourism tax, lease rent/land rent and fee for extending resort lease period in Dhivehi rufiya,” MIRA said, adding that once the amendments were brought, the tourism taxes would be collected in local rufiyaa starting from next month.

The MIRA press release stated that “the authority regrets” media reports claiming that MIRA was ordered to accept payments only in US dollars from August 13 onward as “we believe the news reports were misleading regarding MIRA’s efforts in this matter.”

Local media reports last week suggested a dispute between MIRA and the Finance Ministry over the cabinet decision.

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Parliament approves appointment of Defence and Fisheries Ministers

Parliament today approved the appointments of Dr Ibrahim Didi as Minister of Fisheries and Agriculture and Tholhath Ibrahim Kaleyfan as Minister of Defence and National Security.

Dr Didi was approved 40-35 after Jumhooree Party MP Gasim Ibrahim and Independents Ahmed ‘Sun Travel’ Shiyam Mohamed, Ahmed Amir, Ali Mohamed, Ismail Abdul Hameed and Mohamed Zubair voted with the ruling Maldivian Democratic Party (MDP).

Tholhath Ibrahim meanwhile received parliamentary consent with 50 votes in favour and 24 against.

Both the main opposition Dhivehi Rayyithunge Party (DRP) and the independently functioning opposition parliamentary group had declared their intention to reject the reappointment of Dr Didi on the grounds that he had failed to receive parliamentary consent in November, 2010.

Dr Didi was among seven ministerial appointees who did not receive parliamentary consent in November.

DRP Leader Ahmed Thasmeen Ali told press last month that the party did not accept “the President appointing someone parliament has already rejected.”

In its report presented today after evaluating Dr Didi, the Government Oversight Committee – comprised of six oppositon and four MDP MPs – meanwhile recommended that his appointment be rejected on the same grounds.

The committee however recommended approving the nomination of Tholhath Ibrahim as Defence Minister.

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“Moosa is a big liability”: MDP MP ‘Colonel’ Nasheed

MPs of the ruling Maldivian Democratic Party (MDP) representing Upper North constituencies boycotted a rally last night dubbed “Big Picture for Bodu Thiladhunmathi [Haa Alif, Haa Dhaal, Shaviyani and Noonu Atolls]” in protest of acting Chairperson ‘Reeko’ Moosa Manik allegedly using party resources for “self-promotion.”

MDP MP for Nolhivaram ‘Colonel’ Mohamed Nasheed explained that the MPs decided not to attend the rally as “the purpose was not made clear and there was no discussion with us before it was organised.”

“The second reason is because we believe the party mechanism is being abused to promote a certain person,” Colonel said, referring to former parliamentary group leader Moosa Manik.

Colonel speculated that Moosa was preparing to launch a bid for the MDP ticket for the 2013 presidential campaign.

“We have advised President [Mohamed] Nasheed repeatedly that we should not be making enemies,” he said. “But what we’re seeing from Moosa every day are calls for someone to be killed or arrested.”

Moosa had become “a big liability” for the government and ruling party because of his tendency to “make enemies” and put personal interest before the party, Colonel said.

“Major successes of the party are rolled back because of one word from Moosa,” he continued. “MPs [from other parties or non-aligned] that we bring to the party after a lot of hard work is lost because of Moosa’s personal issues.”

He added that the ruling party suffered as a result of Moosa “making enemies of politicians, businessmen, the judiciary and certain media.”

“There is no one in this country who isn’t an enemy of Moosa Manik now,” he said.

Moosa has been engaged in a long-running feud with private broadcaster DhiTV, which routinely carries allegations of corruption against the MDP Chairperson, notably in the awarding of a US$21 million reclamation project to Moosa’s company Heavy Load.

Moosa meanwhile alleges that 168 bottles of alcohol found in his car while he was in Singapore was an attempt to frame him by the owner of DhiTV, Champa Mohamed Moosa.

“A media channel in this country has used my photo, my car, my family, my children and my name to do business and I want to sue for compensation,” Moosa told Minivan News at the time, referring to DhiTV’s continuous coverage of the incident.

Colonel noted that the allegations in the media were harmful to the ruling party: “I’m not saying the accusations are true, but Moosa has not been able to prove his innocence,” he said.

He urged the party’s acting chairperson to be “more focused” and “make friends instead of enemies.”

Speaking to Minivan News today, Moosa Manik however claimed that he was “not aware that anyone boycotted last night’s rally.”

Moosa also dismissed Colonel Nasheed’s criticism: “Colonel wouldn’t seriously say that about me,” he insisted. “He must have been trying to fool somebody. It must have been a joke.”

Haa Alif Hoarafushi MP Ahmed Rasheed told Minivan News that last night’s rally was announced “suddenly without any discussion” while MPs were busy preparing for a ceremony tomorrow night to unveil the government’s economic reform agenda.

While MPs Hamid Abdul Gafoor, Ilyas Labeeb and Hussein Waheed were only MPs who attended the rally, Rasheed claimed that all three left when they “understood what was happening.”

Rasheed speculated that the “hidden agenda” behind the rally was Moosa’s campaign for the MDP presidential ticket.

“I am certain of [Moosa’s plan to run for presidency],” he said. “Otherwise he wouldn’t be trying to damage and undermine the dignity and integrity of the government.”

President Nasheed met MPs recently to discuss the economic reform package, said Rasheed, and “asked us not to act like children in parliament and argue and scream at each other all the time.”

“[But] Moosa’s nuisance is now worse for us than nuisance from the opposition,” he said, claiming that “every time there is an important vote Moosa angers all the opposition MPs and businessmen in Majlis.”

He added that Moosa’s habit of “making enemies” resulted in MDP losing support of opposition and Independent MPs.

“There is a very important vote tomorrow where we are going to need the support of two opposition MPs,” he explained, referring to a vote on the agenda for Monday’s sitting to approve the president’s nominees for Fisheries Minister and Defence Minister.

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Fiscal responsibility bill presented to parliament

A fiscal responsibility bill to impose limits on government spending and ensure public debt sustainability was proposed to parliament yesterday.

Presenting the draft legislation on behalf of the government, MP Ahmed Easa of the ruling Maldivian Democratic Party (MDP) said that a lot of effort was needed to “change the inherited, outdated and indebted economic system.”

“Since 2005, [expenditure] in the annual state budget was out of proportion to income and the budgets had a very high level of debt,” he explained.

As a consequence of issuing treasury bills (T-bills) to finance the budget deficit, Easa continued, banks reduced lending to local businesses in favour of buying government securities, which exacerbated unemployment and slowed growth.

Easa noted that according to the World Bank, a 66 percent increase in salaries and allowances for government employees between 2006 and 2008 was “by far the highest increase in compensation over a three year period to government employees of any country in the world.”

“We are seeing the bitter consequences today of spending out of the budget without any control or limit,” he said.

As measures to mandate fiscal responsibility, said Easa, the legislation would set limits on government spending and public debt based on proportion of GDP (Gross Domestic Product).

Borrowing from the central bank or Maldives Monetary Authority (MMA) should not exceed seven percent of the projected revenue for the year, Easa said, while the loan would have to be paid back in a six-month period.

Moreover, a statement outlining the government’s mid-term fiscal policy must be submitted annually to parliament at the end of the financial year in July.

Opposition

Opposition Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Mausoom however argued that the purpose of the legislation was to negate controversial amendments brought to the Public Finance Act last year.

Mausoom explained that the passage of the fiscal responsibility bill would abolish article five of the Finance Act amendments bill, which stipulated that the government must seek parliamentary approval before obtaining loans.

According to the amendment s voted through by the opposition majority, “any relief, benefit or subsidy provided by the state” would also be subject to parliamentary approval.

The amendments were cited as the main reason for the cabinet resignation on June 29 last year – President Mohamed Nasheed announced at the time that he would veto the bill as the new laws would make it “impossible for the government to function.”

While President Nasheed has since ratified the bill after parliament overrode the veto, the government filed a case at the Supreme Court in December 2010 contesting the constitutionality of some provisions.

The DRP MP for Kelaa meanwhile argued that the fiscal responsibility bill was drafted to “take away all the powers given to local councils [under the Decentralisation Act] and give it back to the Finance Minister and President.”

Mausoom also criticised a provision that would empower the Finance Minister to change cash flow plans proposed to the state budget by independent commissions.

Debt sustainability

Finance Minister Ahmed Inaz informed parliament yesterday that the public debt of the Maldives – excluding government securities – stands at US$637.6 million – including US$446 million outstanding debt inherited from the previous administration.

A UNDP paper on achieving debt sustainability in the Maldives published in December 2010 observed that “as a percentage of GDP, public debt levels have almost doubled from 55 percent in 2004 to an estimated 97 percent in 2010.”

“Public debt service as a percent of government revenues will more than double between 2006 and 2010 from under 15 percent to over 30 percent,” it continued. “The IMF recently classified the country as ‘at high risk’ of debt distress.”

As short-term contributing factors for the country’s “rapid accumulation of public and private debt,” the paper identified the devastating tsunami of December 2004; the cost of the democratisation process that began in the same year; the concurrent global food-fuel-financial crises between 2007 and 2010; and the Maldives’ graduation from a Least Developed Country (LDC) in January 2011.

The UNDP paper noted that the reconstruction effort was largely financed by international donors: “Following the tsunami, ODA [Official Development Assistance] increased sharply from US$72 million in 2004 to US$824 million in 2005. ODA levels remained above US$500 million annually for the next four years,” the paper explains.

However as a consequence of high demand for local expertise by multilateral agencies, “increases in public sector salaries were implemented in order to retain qualified personnel with the government.

“Between 2004 and 2009, the average monthly salary of a government sector worker increased from MRF 3,223 (US$250) to MRF 11, 136 (US$866),” the paper notes.

It adds that the government of former President Maumoon Abdul Gayoom responded to growing calls for democratisation with “a substantial fiscal stimulus programme” of increased government spending, “much of which was not related to post-tsunami reconstruction efforts.”

“This strategy led to a large increase in the number of civil servants from around 26,000 in 2004 to around 34,000 by 2008 or 11 percent of the total population. Thus the government simultaneously increased the number of public sector workers as well as their salaries,” the paper notes.

Consequently, by 2010 recurrent expenditure – wage bill and administrative costs – was projected to exceed 82 percent of total expenditures “while capital expenditures will amount to just 18 percent in the same year.”

Moreover when the impact of the worst global recession in decades struck the Maldives in September 2008, “the Maldivian economy was already in the middle of a severe economic crisis with substantial fiscal and current account deficits, high liquidity growth, double digit inflation, pressure on the fixed exchange rate, increases in public and private sector debt, rising inequalities between the capital and the atolls, and a costly civil service.”

Meanwhile as the ballooning fiscal deficit reached 26 percent of GDP in 2009, tourist arrivals declined ten percent in the first year of the new administration.

However the new government’s efforts to reduce government spending with pay cuts of up to 20 percent and plans to downsize the civil service – which employs a third of the country’s workforce – was met with “a severe political backlash from parliament.”

“In March 2010, the parliament passed a 2010 budget with amendments which increased the government’s proposed budget by 7 percent (or 4.5 percent of GDP),” the paper observed.

“Three quarters of this increase funded a reversal in civil service wage cuts implemented the previous year. Progress on redundancies has also been slower than expected and reforms in this area are unlikely to be completed until the end of 2011 at the earliest. This will have important fiscal consequences.”

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Kuredhu quad-bike unregistered and unauthorised for use, MDP MPs claim

A quad-bike that crashed into a tree in Kuredhu Resort killing two British tourists last week was neither registered nor authorised for use, MPs of the ruling Maldivian Democratic Party (MDP) claimed during debate on a motion without notice today.

The emergency motion proposed by MDP Chairperson ‘Reeko’ Moosa Manik noted that the King Quad 700 model bike was not legally registered at the Maldives Transport Authority while its driver Filip Eugen Petre – a Swedish national and son of a resort shareholder – did not have a license to operate the vehicle.

“Two kinds of vehicles are commonly used in Maldivian resorts,” Moosa said in his opening remarks of the debate. “That is vehicles used for lifting goods and golf carts or buggies for transporting guests.”

Moosa alleged in parliament that attempts were made to “to hide the boy [Petre] and put the blame [for the accident] on a Maldivian employee in the resort.”

The former MDP parliamentary group leader called on the government to investigate the accident “even if it involves bringing officials from the British government to uncover how this really happened.”

Other MDP MPs expressed concern about the impact of such incidents on the tourism industry and repeated calls for a thorough investigation.

“I don’t know for what reason such a vehicle used in big mountains or at high speeds should be used in resorts,” observed MP Ahmed Sameer, deputy parliamentary group leader of the ruling party.

Several opposition MPs however strongly objected to the motion, arguing that it should not have been tabled in the agenda as it represented “a personal attack” by Moosa.

Opposition Dhivehi Rayyithunge Party (DRP) MP Ali Azim claimed that Moosa was motivated to submit the motion by DhiTV’s continuing coverage of alcohol bottles found in his car – a network owned by Champa ‘Uchoo’ Mohamed Moosa, who also owns the Kuredhu resort.

The motion was however approved for debate in a 29-7 vote.

“Some people who have resorts in this country are using private media to defame others and hide their crimes,” Moosa said, referring to DhiTV.

“It is noteworthy that some media connected to this resort has not covered any news of [the Kuredu accident].”

Moosa also strongly criticised resort owners for “mortgaging state property” and propping up an autocratic regime to enrich themselves.

MP Riyaz Rasheed of minority opposition Dhivehi Qaumee Party (DQP) meanwhile accused the MDP chairperson of corruption – in a US$21 million deal to reclaim land in Thilafushi – and suggested that Moosa should be evaluated to “see if he is even fasting today.”

Independent MP Ahmed Amir cautioned against speculation regarding the accident as foreign media could report “MPs implying in parliament that this was done by Maldivians.”

In his turn, Jumhooree Party (JP) MP Ibrahim Muttalib alleged that police destroyed or hid evidence in some criminal cases “probably on orders from the government.”

DRP Leader Ahmed Thasmeen Ali meanwhile contended that the incident should not be debated at parliament as a police investigation was ongoing.

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