Author: Mohamed Naahee

Mega Maldives negotiating with tax authorities over account freezing dispute

Airline Mega Maldives continues to operate scheduled flights to and from China this week, despite the Maldives Inland Revenue Authority (MIRA) taking action to freeze the company’s accounts on Monday (June 17) over disputed tax payments.

MIRA announced this week that it had decided to freeze bank accounts linked to Mega Maldives with the assistance of the Maldives Monetary Authority (MMA) over what it claimed was the company’s refusal to cover tax flagged in an audit report.

The airline has stated that it was engaged in negotiations with local authorities to try and resolve the dispute with MIRA concerning the state’s interpretation of the requirements under which withholding tax must be paid.

The company has maintained that it remains fully up-to-date in terms of covering profit and service tax payments to MIRA.

Mega Maldives, which is operated through a US-Maldives private joint-venture under the name Mega Global Air Services (Maldives) Private Limited, is the country’s second scheduled airline.

The airline commenced operations in 2010 and completed its maiden flight in January 2011, where it flew over 230 passengers from Hong Kong to Gan International Airport.

During July 2011, the airline went onto become the first Maldivian carrier to provide flight services from Shanghai to Male’ with 200 passengers.

MIRA’s Director General of Audit and Finances Fathuhulla Jameel told local media this week that a tax audit carried out by the authority revealed that Mega Maldives owed large sums of money as unpaid taxes.

According to Jameel, the total amount of money MIRA is owed by Mega Maldives stood at more than MVR 13 million (US$ 843,060.96) as of this week.

The airline is also required to cover unpaid fines valued at around MVR 1 million (US$ 64,850.84) resulting from the company’s failure to pay taxes and produce statements, according to MIRA.

Speaking to Minivan News today, Jameel said that MIRA had been acting in accordance with the law, adding that withholding taxes were imposed under section sixof the Corporate Profit Tax Act.

“We have a two stage appeal process. One is if they are not satisfied with our figures in the tax audits, then there is a department in MIRA which they can appeal. If that fails, they can appeal to the Tax Appeal Tribunal. So far, to my knowledge, no appeal has been made to Tax Appeal tribunal. If they are unhappy with our figures, there are ways they can find a solution,” he said.

No funds in the frozen accounts: MIRA

MIRA has revealed that the accounts of Mega Maldives frozen by the MMA were found to have insufficient funds to cover the outstanding payments.

“We believe that they will produce the required tax statements and pay the money owed to the authority. Having failed to pay the amount, we froze their accounts and when we checked, there were no funds in those accounts,” Jameel said.

According to Jameel, of the two frozen accounts, one had only US$ 10,000, while the other contained MVR 9,000.

“Some accounts are still not frozen. But we had requested to freeze all accounts under the airline. They can still deposit money even if the account is frozen,” Jameel added.

Jameel told Minivan News that negotiations were already under way with the airline, which would be allowed to make payments in installments once an initial 30 percent of the outstanding payment to MIRA has been covered. However, Jameel said it was difficult to detail the exact figures or the duration over which installments could be made as negotiations were ongoing.

Jameel said that MIRA had formally requested the MMA to freeze the company’s accounts last Thursday (June 13) after several attempts to retrieve the money were unsuccessful.

“As a last resort, we requested [MMA] to freeze their account. We had made the decision [to freeze the account] after all the attempts made to collect the money failed,” Jameel said. “MMA will order all the banks to freeze the accounts of that airline.  I presume the accounts may now have been already frozen.”

Airline negotiations

In a press statement issued yesterday (June 18 ), the airline claimed that it was currently in negotiations with MIRA and the government to try and resolve the dispute.

“The tax that this airline is required to pay as per Maldives Inland Revenue is the withholding tax. This tax, by any means, is not similar to taxes such as the Corporate Profit Tax (CPT) or the Goods and Services Tax (GST),” read the company statement.

“Generally, corporations are required to pay taxes based on their profits or based on the income that is generated. These two taxes [CPT and GST] are being regularly paid to MIRA as required by the law,” it added.

Withholding taxes are based on a local company’s spending on services provided by expatriates. Mega Maldives, being an operator of wide body flights, said it was continuously required to seek foreign technical assistance.

Interpretation issues

The airline has said that according to MIRA and the Maldivian government’s interpretation of tax laws, several services required by the airline had fallen into the criteria requiring payment of withholding tax. The tax currently stands at 10 percent of the costs paid in such services.

“Assessing the figures, having to pay an additional 10 percent as tax means 10 percent is added to the cost incurred by the airline,” it claimed.

The airline argued that under this interpretation, it was required to pay withholding tax on top of the cost of spare parts required to be made available by each airline in the country as per the Maldives Civil Aviation regulations. Withholding tax was also said to have been added to the general cost of operating international flights.

“Since the stated expenses are required by an international carrier, imposing a huge tax on such expenses is a financial burden on the airline that is resulting in huge losses. The Maldives Civil Aviation Authority which is helping this airline in the negotiations with MIRA has also highlighted that such taxation could be detrimental to the aviation industry,” it claimed.

Speaking to Minivan News, Chief Executive Officer of Maldives Civil Aviation Authority, Hussain Jameel confirmed that the authority had been assisting the talks between the airline and MIRA.

However, he declined to provide further details at the current time.

Mega Maldives stated that as a result of financial difficulties incurred by the company over the dispute concerning the withholding tax, it had been forced to reduce its number of scheduled flights.

The airline maintained nonetheless that was working on expanding its fleet, which currently consists of several aircraft.

In its statement, Mega Maldives called on authorities to create an environment for aviation companies to have a profitable and viable business in the country.

Operations interrupted

Local media reported earlier this week that the Maldives Airports Company Limited (MACL) had originally denied approval for a Mega Maldives flight to leave the country over its failure to pay for the airport handler’s services.

However, the flight was allowed to leave the country after the airline and MACL finally came to an agreement over payment of the services.

The flight, which was expected to depart at 5:10pm on Monday evening, was only able to leave more than two hours later at around 7:20pm.

According to MACL’s Managing Director Dr Ibrahim Mahfooz, both Mega and the MACL had discussed the issue of pending payments, and Mahfooz told local media outlet Sun Online that Mega had agreed to make the payments to MACL.

Sun Online reported that following the grounding of Monday’s scheduled flight by the airline, it had agreed to pay MACL a sum of US$ 235,000 and to pay an additional sum of US$ 389,000 on Wednesday and Thursday.

Meanwhile, speaking to Minivan News about the dispute today on condition of anonymity, a senor figure within the country’s tourism industry said that Mega Maldives had in recent years played a vital role in connecting Maldives to China.

China last year overtook established European tourism markets to become the leading source of visitors to the Maldives. The senior tourism source said that air connectivity and flight frequency played a significant part n the fortunes of an isolated destination like the Maldives.

“An impact on any airline operating to the Maldives will impact the country’s tourism sector,” the source claimed.

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CSC Chair Fahmy will not resign from post “out of fear”

Civil Service Commission (CSC) Chair Mohamed Fahmy Hassan has said he will only resign from his post when the time is right and not as a result of intimidation or fear, dismissing a parliamentary no-confidence vote passed against him last year.

Speaking in local media this week, the CSC chair contended that he remained in his post legally with the backing of President Dr Mohamed Waheed.

Parliament voted to dismiss Fahmy from his CSC post in November 2012 in a no-confidence vote following an inquiry by the Independent Institutions Committee into allegations he sexually harassed a CSC employee.

Both Fahmy and the alleged victim were summoned to the committee after the complaint was lodged in the first week of June.

Fahmy was alleged to have called the female staff member over to him, before asking her to take his hand and stand in front of him so that others in the office could not see, and caressed her stomach. He was than accused of saying, “It won’t do for a beautiful single woman like you to get fat.”

MPs voted 38-32 to approve the committee’s recommendation to remove Fahmy from the post.

However, in March this year, the Supreme Court ruled that parliament’s decision to remove him from the CSC was unconstitutional.

The Supreme Court declared by a 6-1 majority that Fahmy would receive two punishments for the same crime if he was convicted in court following his dismissal by parliament (double jeopardy).

The apex court contended that the Independent Institutions Committee violated due process and principles of criminal justice procedure in dealing with the accused.

In an interview to local media outlet Channel News Maldives (CNM) today, Fahmy referred to the Supreme Court decision that overruled his parliamentary impeachment, saying it was everyone’s responsibility to uphold Court rulings.

“Everyone will have to uphold the rule of law and the decisions made by the courts of law. Whether it is the president or me or anybody, it has to be that way,” he was quoted as saying.

Fahmy also said that President Dr Mohamed Waheed Hassan himself has shown his support for him remaining as the CSC Chair by asking him to make a decision on his own capacity.

Fahmy had previously stated that he would only make a decision on whether to continue being part of CSC after President Waheed made a decision on the issue, noting that it was the president who had given him the letter of appointment.

President Waheed speaking on the issue to local media previously said it was “very complicated” for him to make a decision about Fahmy and suggested that it “would be best” for Fahmy to decide on his own.

Waheed said that two state powers, the legislature and the judiciary were in dispute over the matter and at such a complicated time, “Even individuals must help in resolving conflicts peacefully”.

“Always doing something that puts the President or the government in a trap is not a very good thing. I think the best thing to do at this time is let Fahmy take the initiative and decide on the matter. That is my position,” he said.

However, both former Attorney General Azima Shukoor and her successor Aishath Bisham have told media that President Waheed was advised against reinstating Fahmy in the post.

Both attorneys general argued that despite the Supreme Court ruling that Fahmy’s removal by parliament was unconstitutional, the apex court had not ordered his reinstatement.

Speaker’s warnings

Meanwhile, Speaker of Parliament Abdulla Shahid sent out a strong warning to Chair of Judicial Service Commission (JSC) Adam Mohamed informing the Supreme Court Justice that he would boycott the commission’s meetings should Fahmy continue to attend meetings of the judicial oversight commission.

Shahid’s warning came shortly after Attorney General Aishath Bisham conceded during a meeting with Parliament’s Executive Oversight Committee (EOC) that any JSC meetings with Fahmy present would not be legally valid.

In response to a question by the committee chair, opposition Maldivian Democratic Party (MDP) MP Ali Waheed, Bisham insisted that Mohamed Fahmy Hassan would not have to be reinstated.

In a letter sent at the time, Speaker of Parliament Shahid – who is an ex-officio member of JSC – stressed that even though the chair of CSC is also by virtue of his position a member of JSC, Fahmy cannot sit on commission because he had been dismissed from his position by parliament.

He added the parliament had informed President Waheed about its decision.

“In that letter, when the parliament came to the decision [to remove Fahmy], then-Attorney General Aishath Azima Shukoor and current Attorney General Aishath Bisham stated that Mohamed Fahmy Hassan could not sit in JSC as the President of CSC as that position had become vacant with the parliament’s decision.”

“The Attorney General Aishath Bisham had also said that JSC meetings attended by Fahmy cannot be deemed legal, during the 46th committee meeting of parliament’s executive oversight committee on June 4, 2013,” Shahid wrote.

Therefore, Shahid said he would not take part in any meetings attended by Fahmy.

The parliament has meanwhile invited interested candidates to apply for the “vacant” position of CSC President.

President Waheed however maintained that, prior to any appointments to the commission, the parliament should discuss the matter with the Supreme Court to avoid any further conflict.

Fahmy was not responding to calls from Minivan News at time of press.

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President Waheed removes ‘Reynis’ Saleem from JSC

The government has today dismissed Mohamed ‘Reynis’ Saleem from his role as the president’s member to the Judicial Service Commission (JSC) over allegations he commissioned gangs to retrieve money owed to him.

An official from JSC –  the judicial watchdog institution – confirmed receiving a letter from President’s Office informing the commission of Saleem’s removal from the oversight body.

In May, Saleem was summoned to the police for questioning over allegations he had used gangs. Police have now concluded the investigation and sent Saleem’s case to the Prosecutor General’s Office for prosecution.

Newspaper Haveeru reported last week that attempts made by police to arrest Saleem stalled after the Criminal Court refused to grant an arrest warrant.

An appeal by the police following the denial also failed after the High Court backed the Criminal Court’s decision to deny the arrest warrant.

Saleem has meanwhile denied allegations of wrongdoing, claiming in local media that he had not resorted to illegal means in retrieving money owed to him.

A police media official told Minivan News that no further details could be provided on the case at present as investigations were ongoing.

According to local media, the President’s Office stated that the decision to remove Saleem from the JSC had been prompted by the potential criminal prosecution expected to follow as a result of the police investigation.

Saleem was appointed to the JSC after President Mohamed Waheed took office in February 2012 following former President Mohamed Nasheed’s controversial resignation amidst a violent mutiny by elements of the police and military.

Apart from the President’s appointee to the JSC, the commission is comprised of the Attorney General, the Speaker of Parliament, a representative from the Parliament, a representative from the High Court, a representative from the Supreme Court, a representative from the lower courts, Chair of Civil Service Commission, a representative from the public appointed by parliament and a representative from registered lawyers in the country.

Saleem has also been accused of having close ties with aides of former President Maumoon Abdul Gayoom and his family.

Saleem was also the defence counsel of Deputy Speaker of Parliament Ahmed Nazim – a member of Gayoom’s Progressive Party of Maldives (PPM) – in criminal cases concerning an alleged scam to defraud the now-defunct Ministry of Atolls Development.

Earlier this week, the High Court concluded hearing witness statements in the state’s appeal of a Criminal Court decision to acquit Nazim on charges of corruption.

Nazim stands accused of receiving more than US$400,000 through fraudulent transactions made by a company he was found to own.

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Jumhoree Party Leader Gasim Ibrahim confident of securing presidential election in first round

Business tycoon and leader of the government-aligned Jumhoree Party (JP), MP Gasim Ibrahim, has expressed confidence he will win the upcoming presidential election in the first round of voting.

Speaking at a rally in the party’s Male’ headquarters yesterday (June 16), Gasim was quoted in local media as claiming that he was well placed to become the Maldives’ next president based on a recent spike in the JP’s membership.

According to the latest statistics from the Elections Commission (EC), the JP’s current membership stands at 12,154 members (five percent of eligible voters) with a further 1,374 membership forms pending approval.

The JP, a member of President Dr Mohamed Waheed’s coalition government, recently announced that it would decide whether to contest the election alone or within a coalition after the conclusion of its national conference later this month.

However with the party expected to officially unveil its leader during the congress, MP Abdul Raheem Abdulla said the JP anticipated fielding its own candidate during the election.

“What I will say is that our articles and regulations state that our leader has to run as a presidential candidate. We have to run for the seat on our own,” he said last week.

Raheem added that the party did nonetheless have criteria under which it would look to join a coalition.

Speaking last night, Gasim predicted a growing number of MPs would join his party and unite behind him in order to back a candidate he claimed could steer the country from corruption.

“[That leader] is Gasim Ibrahim,” he said.

Gasim is also the chairman of the Villa Group, which owns resorts, shipping lines, electronic stores and a cement packing factory in the Maldives. Gasim also owns private broadcaster Villa Television (VTV), and is a member of the Judicial Services Commission (JSC).

The MP for Maamigili claimed a surge in his party membership suggested that people were now thinking about what was best for the country and which party offered the best solution to the nation’s woes.

Gasim maintained that the public ultimately did not wish to elect a leader who would defy them, claiming instead that they wanted an experienced person capable of running the country.

“Even a fishing vessel must be handed over to a good captain,” he stressed.

Gasim claimed that with his wealth he had provided education for a lot of students, as well as covered medical expenses for a number of citizens.

If elected president in September, Gasim pledged to continue providing further help to the people, something he claimed the public were already aware of.

JP Spokesperson Moosa Rameez was not responding to calls at time of press regarding the comments.

The election is set to take place on September 7, and the Elections Commission (EC) has announced that a total of 241,000 people will be able to cast their vote in the second multi-party presidential vote to be held in the country since ratification of the 2008 constitution.

Two major political parties in the country – the opposition Maldivian Democratic Party (MDP) and former President Maumoon Abdul Gayoom’s government-aligned Progressive Party of Maldives (PPM) – have so far announced their intentions to field candidates.

Incumbent President Dr Mohamed Waheed has also announced his intention to stand, backed by a coalition including his own Gaumee Iththihaadh Party (GIP), the Dhivehi Rayyithunge Party (DRP), Dhivehi Qaumee Party (DQP) and religious conservative Adhaalath Party (AP).

The opposition MDP is fielding former President Mohamed Nasheed, who controversially resigned from office following a violent mutiny by sections of the police and military on February 7, 2012.

Both Nasheed and his party continue to allege his government was toppled in a bloodless coup d’etat, accusations that were later rejected by a Commonwealth-backed Commission of National Inquiry (CoNI).

The PPM will meanwhile be fielding former President Gayoom’s half-brother, MP Abdulla Yameen Abdul Gayoom, as its presidential candidate. Yameen secured the party’s ticket after a fierce presidential primary against former PPM activist Umar Naseer. Naseer was later dismissed from the party after making accusing Yameen vote rigging in the primary.

First round claims

Election rules dictate that a candidate must secure over 50 percent of the popular vote to secure the presidency in the first round. Should no candidate secure a simple majority, a run-off second round election is then required to be held 20 days later between the top two candidates.

Former President Nasheed, who commands the single largest political support base in the country in terms of party membership, has previously predicted that he would win the election within the first round with a 57 percent popular vote. The party claims to have been pledged 125,000 votes already – 52 percent of total eligible voters, or almost 60 percent of the first round assuming an 85 percent voter turnout (as the figure stood in 2008, another ‘high stakes’ election).

Former DRP Spokesperson Ibrahim Shareef said the party, which is backing President Waheed in the election, did not believe there was a single party in the country capable of securing an outright win in September.

“No party in the country will get more than 35 percent of the vote during the first round, even the MDP which remains the biggest single party,” he said last month.

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President Waheed met with angry protests during “bittersweet” campaign trip to Thinadhoo

President Mohamed Waheed’s maiden campaign trip to Thinadhoo in Gaaf Dhaal Atoll was met by hundreds of angry protesters who came out in opposition to the government’s heavy crackdown on the island following Waheed’s controversial ascension to power on February 7.

President Waheed has launched his presidential campaign under the slogan “forward with the nation”, after unveiling Ahmed Thasmeen Ali – leader of government-aligned Dhivehi Rayyithunge Party (DRP) – as his running mate.

Waheed is backed by what he contends is a “broad-coalition” of political parties including his own party Gaumee Iththihaadh Party (GIP), the DRP, Dhivehi Qaumee Party (DQP) and religiously conservative Adaalath Party (AP).

At present, Waheed and Thasmeen will be standing against former President Maumoon Abdul Gayoom’s Progressive Party of Maldives (PPM) candidate Yameen Abdul Gayoom – Gayoom’s half brother, and opposition Maldivian Democratic Party (MDP) candidate former President Mohamed Nasheed.

He is also expected to face a candidate from the government-aligned Jumhoree Party (JP), presently led by MP Gasim Ibrahim.

Following the scuffle on Thinadhoo – Waheed’s mother’s home island – the President expressed frustration over the incident on social media service Twitter, in which he blamed Nasheed and the MDP and declared that such actions “do not bear well for a free and fair election”.

Speaking to local newspaper Haveeru, Waheed’s party Gaumee Iththihaadh Party (GIP) spokesperson Abbas Adil Riza alleged a group of MDP supporters came out to protest against Waheed. Some protesters also assaulted MP Ibrahim Muthalib from the Adhaalath Party, he alleged.

Riza claimed that Muthalib was saved from the protesters after the police intervened and calmed the situation.

According to media reports, objects including water bottles were also seen thrown at Waheed.

Thinadhoo saw some of the strongest reactions to the February 8 crackdown on protesters in Male’, with government offices and police stations destroyed across the island. Islanders were also reported to have blockaded the arrival of police reinforcements for days afterwards.

Police eventually arrested 17 people and later sent the names of 108 persons involved in the demonstrations for prosecution.

Family members no longer speak to me: President Waheed

Speaking at a campaign rally on the island, Waheed conceded that several family members including those residing on the island no longer spoke with him after the controversial transfer of power on February 7, 2012.

Waheed acknowledged that one of the main reasons why some of his family members had deserted him was that he was now working closely with those who had strong affiliations with former President Maumoon Abdul Gayoom’s 30-year autocratic regime. He said noted that his detractors included his own brothers and sisters, as well as cousins and nephews.

“It feels like they are trying to say that their brother doesn’t love them that much – and that is why he is working with people who we hate,” Waheed observed.

Waheed also spoke to the islanders about how his mother was subjected to torture and inhumane treatment following her mild criticism of Gayoom’s regime.

“As you would all know, back [during Gayoom’s regime] the political environment was such that criticising the government was a big crime. My mother while watching the TV said that Gayoom had lied. After that it was a very bitter experience,” he recalled.

“The poor lady was dragged to court, people gathered around her on the streets and pulled her hair, spat on her and committed other derogatory acts at that time in Male’.”

Waheed claimed that his mother never had any involvement in local politics and admitted that none of his family members would forget how Gayoom’s regime treated his mother.

Waheed said that despite this, the circumstances following the controversial resignation of former President Nasheed required him to take over the presidency. For that reason, Waheed said he had invited all political parties in the country to join his government.

“Among these [members of political parties] included those who caused such grief to my family. It is not that I don’t know who these people are, or that I chose to work with them. What was best for the country at that moment was for me to set aside my personal vengeance and to prioritise the country before my personal emotions,” he contended.

“Some of my family members could not take that. The result was that some of them, to this date, do not speak with me. Some of them even live in this island,” he said.

“Arriving in Thinadhoo gives me a bitter-sweet taste,” he added.

February 7

Nasheed’s arrest of Chief Judge of Criminal Court Abdulla Mohamed led to 22-days of continuous anti-government protests initiated by religious scholars and opposition leaders. This culminated in a police and military mutiny and the controversial stepping-down of former President Mohamed Nasheed on February 7, 2012.

Waheed – who was then vice-president – had shortly before the resignation publicly come out against Nasheed and joined the revolt, meeting key opposition party members in his residence at late hours the previous week.

Less than four hours after Nasheed resigned, Waheed took oath as the President, dismissed all Nasheed’s ministers and formed a coalition government with Nasheed’s political opponents.

Following the regime change, thousands of demonstrators came out in protest. Police retaliated with a brutal crackdown in front of international media.

The protests quickly spread across the country leading to arson attacks against government offices and the police stations.

“In essence, my statement is very small… I was forced to resign. I resigned under duress. I was threatened. If I did not resign within a stipulated period it would endanger mine and my family’s life. I understood they were going to harm a number of other citizens, party members. They were going to literally sack the town. I felt that I had no other option, other than to resign,” Nasheed told the Commission of National Inquiry (CNI) that later investigated the transfer of power.

Despite the claim, the Commonwealth-backed CNI which included Waheed’s three hand-picked members, a Singaporean judge chosen by the government and a single representative from Nasheed who resigned in protest, dismissed allegations of a coup.

Subsequent legal analysis of the CNI final report by a team of high-profile Sri Lankan lawyers – including the country’s former Attorney General – accused the commission of exceeding its mandate, selectively gathering and acting upon evidence, and failing to adequately address the fundamental issue with which it was charged: determining whether former President Mohamed Nasheed resigned under duress.

Waheed has repeatedly dismissed the allegations and police have threatened to arrest anyone calling them ‘Baaghee’ (‘traitor’).

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Civil Court issues injunction blocking JSC from further action against Chief High Court Judge

The Civil Court has issued a temporary injunction ordering its own watchdog body, the Judicial Service Commission (JSC), not to take any further action against Chief Judge of High Court Ahmed Shareef until it rules on a case concerning his suspension.

The new injunction issued by the Civil Court orders the JSC not to take any action against Chief Judge Shareef that would undermine his rights. The order will take effect until proceedings in the case filed by Chief Judge Shareef conclude.

Chief Judge Shareef’s lawyers originally requested the Civil Court invalidate JSC’s suspension but the court there was no reason to issue such an injunction.

In May the JSC ‘indefinitely suspended’ the Chief Judge over a complaint filed against the judge last year.

During a press conference held by the commission to announce its decision, JSC Chair and Supreme Court Justice Adam Mohamed Abdulla insisted that the disciplinary action had no relation to the ongoing High Court case filed by former President Mohamed Nasheed contesting the legitimacy of the Hulhumale’ Magistrate Court bench, appointed by the JSC.

According to Justice Adam Mohamed, the suspension was a “precautionary” measure while investigation of the complaint was proceeding.

“There are no legal grounds to stop looking into a complaint submitted [to the commission] or halt proceedings,” he said.

Shortly after the suspension, attorneys representing the High Court Chief Judge led by former Attorney General and President of Maldives Bar Association Husnu Al Suood filed a lawsuit at the Civil Court challenging the suspension.

Suood said Chief Judge Shareef had been suspended in contradiction of existing laws, and the decision undermined the independence a judge requires in executing his legal duties.

He said the Chief Judge’s team of counsels will plead in court that the decision by the JSC was an attempt to unduly exercise influence over judges. He also added that once the case is registered at the Civil Court, a request will be made at the Supreme Court to take over the case, as has been the previous practice.

“That is not a small thing when you get a suspension after one year. Suspending a country’s Chief High Court Judge  is not a small thing,” Suood told local media.

He also said the JSC’s passing a motion to suspend the judge with a vote of just three members – two of whom represented the executive – led to presumption that the vote had been influenced.

According to local media reports, the call for an indefinite suspension of the Chief Judge was proposed to the JSC by the incumbent Attorney General Aishath Bisham – who is yet to receive parliament’s consent following her appointment – and was passed by the vote of three members out of the 10-member commission.

“There is reason to believe this decision had political motives behind it,” Suood claimed at the time.

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Former President Nasheed calls for reinstatement of GMR agreement

Former President Mohamed Nasheed has called on the government to reinstate the concession agreement with Indian infrastructure giant GMR to develop and manage Ibrahim Nasir International Airport (INIA).

In 2010, GMR-Malaysia Airports Holdings Berhad (MAHB) consortium, the government of former President Mohamed Nasheed and Maldives Airport Company Limited (MACL) entered into a 25 year concession agreement worth US$511 million (MVR 7.787 billion).

The agreement charged the GMR-MAHB consortium with the management and upgrading of INIA within the 25 year contract period.

However in November 2012, the government of President Dr Mohamed Waheed declared the developer’s concession agreement void and ordered it to leave the country within seven days.

A last minute injunction from the Singapore High Court during arbitration proceedings was overturned on December 6, after Singapore’s Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

GMR is now seeking upwards of US$1 billion in compensation for the sudden termination, while at least one of the project’s lenders has called in loans that were guaranteed by the Finance Ministry at the time the contract was signed.

The Maldivian government is contending in court that it owes nothing as the contract was void ab initio –  invalid from the outset – and therefore clauses relating to termination and compensation did not apply.

Should the argument of void ab initio fail, the government has claimed the second legal grounds on which it would argue in favour of termination of the contract would be that the contract had been ‘frustrated’ – an English contract law doctrine which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party’s principle purpose for entering into the contract.

The case is currently in the arbitration and is set to take place in Singapore with using Maldives Airport Co Ltd v GMR Malé International Airport Pte Ltd as a reference point.

The Attorney General’s Office has previously stated that the Maldives will be represented by Singapore National University Professor M Sonaraja, while former Chief Justice of the UK, Lord Nicholas Addison Phillips, will represent GMR.

The arbitrator mutually agreed by both GMR and the government is retired senior UK Judge, Lord Leonard Hubert Hoffman.

Deal was “highly beneficial to the Maldives”: Nasheed

Nasheed in the statement released by his office on Monday said the agreement would have been highly beneficial to the country’s economy and would have boosted investor confidence in the Maldives.

“The agreement was entered into after a transparent international bidding process and under the consultation from the International Finance Corporation (IFC).  The agreement also gave confidence to foreign investors who had been interested in investing in the Maldives,” read the statement.

Nasheed said the concession agreement had been the single largest foreign investment in the country’s history, and noted that it had been terminated for political reasons.

The statement also alleged the current government gave little consideration to the repercussions of terminating such an agreement, which included worsening bilateral ties, hindering development, and lowering investor confidence in the country.

The statement also acknowledged recent remarks by former President Maumoon Abdul Gayoom – whom Nasheed defeated in the 2008 presidential elections.

Gayoom blamed Nasheed for not obtaining parliamentary approval and “consulting all political parties” before signing the deal with the GMR-Malaysian Airports consortium.

“This was a mistake. Had he consulted all political parties, the public would not have formed the impression that corruption had taken place,” Gayoom was reported as saying in the Hindu.

“Then we told the next President Mr Waheed that he should hold discussions with the GMR Group and the Indian government to arrive at an acceptable solution, after which the government was free to act on its own. Unfortunately, this was not done and suddenly there was this unhappy ending.”

Nasheed’s office however emphasised that the government was legally able to enter into such an agreement and that this was in line with the section 6 of the Public Finance Act.

Gayoom had told Indian media that former President Mohamed Nasheed – whose government was controversially replaced in February last year – had to take the majority of blame for the GMR contract dispute, despite not being in office at the time of its cancellation.

“The GMR experience was not a very good one for us. It began badly with [Nasheed] not informing parliament,” Gayoom was reported as saying in the Indian Express.

Nasheed meanwhile condemned President Waheed’s “negligent” decision to evict GMR for political gain without giving due consideration to bilateral ties with India.

Waheed’s Special Advisor Dr Hassan Saeed – who was a fierce critic of the GMR deal before its cancellation – in November last year appealed to Prime Minister Singh to terminate the GMR deal, writing that “GMR and India ‘bashing’ is becoming popular politics”.

While in opposition in December 2011, the DQP also released a 24 page pamphlet alleging that allowing GMR to develop Ibrahim Nasir International Airport (INIA) was “paving the way for the enslavement of Maldivians in our beloved land”, and warning that “Indian people are especially devious”.

Former Home Minister Dr Mohamed Jameel Ahmed, the DQP’s Deputy Leader at the time of the pamphlet’s publication, was recently unveiled as the running mate of Gayoom’s party Progressive Party of Maldives (PPM) Presidential candidate Abdulla Yameen – Gayoom’s half brother.

Nasheed meanwhile called on parliament to take prompt action and said that it was important for it to seek a quick remedy to the issue.

“The decision [to cancel] was made without consulting the views of major political parties and resulted in incalculable damage to the country and its economy,” Nasheed’s statement read.

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Government defies parliament vote, moves Immigration under Defence Ministry

President Mohamed Waheed Hassan has decided to defy parliament’s decision to not endorse the transfer of the Immigration Department to the Ministry of Defence, and make the change without parliament’s consent.

The government of President Waheed on Tuesday sought parliament’s approval to move Immigration department, National Disaster Management Centre and Aviation Security Command under the Defence Ministry led by Minister of Defense, retired Colonel Mohamed Nazim.

However, the parliament by a majority of 27 to 23 votes decided to disapprove the departmental shuffling.

During the debate on the request by the President’s Office to endorse the changes to the defence ministry’s mandate, MP Mohamed Rasheed of the opposition Maldivian Democratic Party (MDP) proposed a motion against approving the changes.

The motion against approving the changes was passed after four MPs from the government-aligned Progressive Party of Maldives (PPM), including its presidential candidate Yameen Abdul Gayoom, backed the MDP’s motion.

Other PPM MPs who voted with the opposition include MP Ahmed Mahloof, MP Mujthaaz Fahmy and MP Ibrahim Riza.

The article 116 of the constitution states that the President – despite having the discretionary power determine the jurisdiction of the ministries – is required to submit all information relating to the ministries and their areas of jurisdiction to the parliament for its approval.

In December 2012, the responsibility for overseeing the Department of Immigration and Emigration was switched to the Ministry of Defence and National Security. The President’s Office claimed the decision to move the department under the mandate of Defence Ministry was made in a bid to make administration of the country’s immigration system more efficient.

President Waheed on Wednesday decided to make the change anyway despite parliament’s objection, with the result that approval will again be sought via parliamentary vote.

Following parliament’s decision, Attorney General Aishath Bisham told local news outlet CNM that despite parliament’s disapproval, the Department of Immigration and Emigration can still operate under the watch of the Defence Minister.

According to Bisham, the president has the power to transfer the department to any ministry under section 35 of the Immigration Act. However, Bisham said the president had sent the matter to parliament to adhere to the requirement stated in article 116 of the constitution which requires parliamentary approval for changes in mandates of cabinet portfolios.

Bisham also said that the government would again resubmit the matter to parliament concerning the transfer of Disaster Management Centre and Aviation Security Command to the Defence Ministry.

Speaking to Minivan News, opposition MDP MP Imthiyaz Fahmy – who is also a member of parliament’s Executive Oversight Committee (EOC) – alleged President Waheed was undermining the constitution and the laws of the country by attempting to militarise state institutions.

“The constitution clearly states that any changes brought to the mandate of a government ministry must be approved by the parliament. If the president can do whatever he wishes to do, why is it in the constitution stated that such decisions require parliamentary approval?” Fahmy questioned.

Fahmy claimed that any decision disapproved by parliament would be deemed invalid and therefore could not be considered to have legal effect.

“The reason to obtain parliamentary approval for such decisions is to have proper accountability. It is the duty of the parliament to hold the government accountable,” Fahmy added.

The Immigration Department has come under heavy fire from the Anti Corruption Commission (ACC) – the independent institution responsible for prevention of corruption and corrupt practices – over alleged corrupt activities including the signing of establishing a border control system with Malaysian mobile security provider Nexbis.

The ACC have taken the matter to Parliament’s Finance Committee claiming that the deal with Nexbis will cost the Maldives MVR 2.5 billion (US$162 million) in potential lost revenue over the lifetime of the contract.

The former Controller of Immigration Sheikh Ilyas Hussain – brother-in-law of President Waheed – stands accused of corruption charges over the Nexbis deal. The trial of Illyas Hussain is currently being heard at the Criminal Court, where he has pleaded not guilty to the charges.

Ilyas is accused of omitting from the concession agreement clauses that required Nexbis to provide 29 scholarships and 200,000 identity cards free of charge. The clauses were in the original technical proposal submitted by Nexbis to the tender evaluation board.

If convicted, the state minister could face either a jail term of up to three years, banishment or house arrest.

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India offers support in training of Maldivian judiciary

The Indian government has offered to assist in training judicial officers and judges in the formation of rules and regulations, reports the Times of India.

According to the report, the offer was conveyed to Chief Justice Ahmed Faiz Hussain on Monday by the Indian External Affairs Minister Salman Khurshid.

Chief Justice Ahmed Faiz Hussain is on a five day official visit to India at the invitation of the Chief Justice of India, Altmas Kabir.

According to Indian media reports, Faiz Hussain is set to take part with the Chief Justice of India and other Supreme Court Judges which will also be attended by Indian Law Minister Kapil Sibal and External Affairs Minister Khurshid.

The reports also claimed that Hussain is expected to travel to Bhopal, to observe the functioning and operation of India’s National Judicial Academy.

The Department of Judicial Administration (DJA) had previously announced plans to set up a Judicial Training Academy in the Villimale ward of Male’, with India is expected to establish ties between the two academies.

During a dinner hosted by Khurshid in honor of Chief Justice Hussain, the Indian external affairs minister claimed India was privileged to work closely and partner the people of Maldives in their nation building efforts.

Khurshid also noted that Maldives had undertaken reforms necessary for the independent functioning of the judiciary and other organs of the state.

In her final report to the UN Human Rights Council, United Nation’s Special Rapporteur (UNSR) on Independence of Judges and lawyers Gabriela Knaul expressed “deep concern” over the failure of the judicial system to address “serious violations of human rights” during the Maldives’ 30 year dictatorship, warning of “more instability and unrest” should this continue to be neglected.

“It is indeed difficult to understand why one former President is being tried for an act he took outside of his prerogative, while another has not had to answer for any of the alleged human rights violations documented over the years,” read the report.

The report is a comprehensive overview of the state of the Maldivian judiciary and its watchdog body, the Judicial Services Commission (JSC). Knaul examines the judiciary’s handling of the trial of former President Nasheed, the controversial reappointment of unqualified judges in 2010, and the politicisation of the JSC.

Knaul also examines parliament’s failure to pass critical pieces of legislation needed for the proper functioning of the judiciary and “legal certainty”, as well as raises serious concerns about an impending budget catastrophe facing the judicial system.

“The immediate implications of the budget cuts on the judiciary are appalling. For instance, the Department of Judicial Administration only has funds to pay staff salaries until November 2013 and it had to cancel training this year,” Knaul notes.

“The Civil Court reported that it would not have sufficient funds to pay its staff salaries after October 2013; furthermore, existing budgetary resources would not be sufficient to pay for utilities and facilities after June 2013,” she added.

The government of Maldives responded to the report by issuing a statement inferring that UN Special Rapporteur had undermined the country’s sovereignty and legal jurisdiction in her report on the state of the country’s judiciary.

The government on May 28 issued a statement via its Permanent Representative at the UN Human Rights Council in Geneva, Iruthisham Adam.

“Engagement between national governments and international actors should not undermine national jurisdiction and the court system of any country, especially relating to ongoing cases,” reads the statement.

In light of this the Maldivian delegation, said Adam, “wishes to discuss specific matters contained in the report with the rapporteur.”

At the same time the statement “welcomed” the UN Rapporteur’s report and “fully acknowledge[s] that the various challenges she has identified and raised in her report are in fact the residue challenges present in a system in the midst of democratic consolidation.

The Maldives judicial system continues to be hampered by structural deficiencies and resource constraints in addressing the difficult challenges facing the country in general.”

Read the UN Special Rapporteur’s full report

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