Author: Daniel Bosley

MIRA files first GST-related court case

The Maldives Inland Revenue Authority (MIRA) has filed the first case related to the Goods and Services Tax (GST) with the civil court.

The case was filed on September 13 before being formally registered with the court last Saturday, September 27.

MIRA are claiming US$2,606.86 (MVR40,132) from DeMal Pvt Ltd for Tourism Goods and Services Tax (T-GST) and the fines incurred for non-payment.

T-GST was first introduced in September 2010 before being subsumed by Goods and Services Tax Act one year later.

GST currently imposes a 6 percent tax on non-tax goods and services in the country. T-GST is currently taxed at 6 percent but will be raised to 8 percent on January 1 2013.

The combined GST revenue stream has accounted for nearly 35 percent of MIRA’s income this year – over US$69million (MVR1.7billion).

Director General of MIRA’s revenue service Fathihullah Jameel was unavailable for comment at the time of press.

MIRA’s Commissioner General of Taxation Yazeed Mohamed last week lamented the inability of the authority to collect certain fees owed to the government, accusing the tourism ministry of being a major part of the problem.

Yazeed singled out the issue of tourism land rent as a major source of unclaimed revenue, arguing that MIRA could only pursue the cases through the courts.

“If rent is not paid we have to take it up in court. That is to obtain payments not paid for a certain period. Then it is used as an excuse. From that point on they get a free license to stay without making payments. Once a case is filed in court, it can go up to two years without a single payment,” Yazeed told Haveeru.

MIRA’s website shows that the authority is actively pursuing nearly US$17million (MVR261.8million) in fees and fines, with 85 percent of listed cases relating to land rents.

The biggest cases currently being pursued, in terms of revenue being claimed, involve the operators of Six Senses Laamu and Mehudufushi Island Resort, from whom MIRA is claiming US$3.1million (MVR47.7million) and US$3.2million (MVR49.2million), respectively.

The Medhufushi Island Resort case is also among those which have been registered with the court for the longest time. The case was first registered in July 2011 and has seen five hearings, according to MIRA’s site.

Another longstanding and significant case is that concerning the operators of Filitheyo Island Resort, who are being pursued for around US$2million (MVR30.8million) in a case first registered in June 2011 which is said to have had three hearings.

MIRA’s monthly figures show that tourism land rent for the year so far is only three quarters of that collected by the same point on 2011.

The tourism ministry hit back at this criticism earlier this week, with State Minister Mizna Shareef telling Minivan News that MIRA was also empowered to collect rent.

“It is very unfair and inappropriate for MIRA to make these statements,” said Mizna, who argued that the authority had been pressuring the tourism ministry to suspend operating licenses for late-payers without considering the wider implications for the industry as a whole.

“There has to be balance – the industry must be protected while rents are collected,” she continued.

Tourism is by far the largest industry in the country, contributing over 70 percent of GDP via associated industries and 90 percent of all foreign exchange receipts.

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MP Afrasheem buried as world condemns his murder

Dr Afrasheem Ali, Islamic Scholar and MP for Ungoofaaru, was buried shortly before 5:00pm at Asahara cemetery in Male’.

Thousands gathered for the funeral prayers which took place at the Islamic Center. The prayers were led by former President and leader of Afrasheem’s party Maumoon Abdul Gayoom.

Long queues of those wishing to pay their last respects formed by Republican Square, where the national flag will fly at half mast for the next two days.

Local news source Sun Online covered the day’s events via a live feed.

Sun reported that arrival of the members of Afrasheem’s family in Male’ this morning, as well as the presence of several MPs at the Islamic Center – today’s session of the Majlis was cancelled.

The MP was subjected to a brutal attack last night when returning to his home after appearing on state television.

Afrasheem’s wife found his body, displaying multiple stab wounds to the head and back, at the foot of the stairs outside their home.

A councillor from Afrasheem’s home island told Haveeru that the community had come to a virtual standstill following news of its MP’s death.

“Many still find it hard to believe that Afrasheem is gone. Their faces show despair,” council member Hussain Najeeb told the paper.

Afrasheem’s coffin was draped in a Maldivian flag, which was handed to his son shortly before the final burial.

Reaction

Afrasheem’s murder has made headlines around the world, with news agencies such as the BBC, CNN, and the Wall Street Journal carrying the news of the Majlis member’s death.

Politicians and institutions of all stripes have today joined with the mourning nation in condemning the slaying and calling for swift justice.

The Maldivian Democratic Party, Adhaalath Party and Afrasheem’s own Progressive Party of Maldives released statements to this effect.

Speaking to local media from the ADK hospital, where Afrasheem’s body was initially taken, Gayoom told Sun Online that the Maldives had lost a talented and unique scholar.

“He was a great teacher. We lost a scholar today, and I am saddened by this. I strongly condemn this act. God willing, the perpetrators will be found and brought to justice through a Court process,” said Gayoom.

Vice President Waheed Deen told local media there would be swift retribution for the crime.

“Law enforcement authorities will not stop until a result is obtained within 24 hours. The investigation won’t leave a stone unturned,” he said.

Former President Mohamed Nasheed, currently campaigning in the SouthernAatolls took to social media to declare his sharing of the nation’s fear and sadness following the murder.

Local media cited “reliable sources” in saying an arrest had been made just before 5:00am this morning, although – more than 12 hours later – Police Spokesman Sub Inspector Hassan Haneef told Minivan News that police were unable to confirm this.

The police have set up a toll free number which can be used for anyone with information regarding the murder: 334 0026.

Numerous institutions including the Elections Commission, the Judicial Services Commission, the Islamic Foundation of the Maldives, and the United Nations have released statements.

The United Nations, on its International Day of Non-Violence, condemned the murder of an “accomplished scholar”.

“The United Nations team in the Maldives is shocked by the murder of Member of Parliament Dr Afrahshim Ali. The United Nations condemns this crime in the strongest possible terms, and hopes justice will be brought to bear,” read the statement.

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CMAG divided: Two hours of fighting before agreement on Maldives’ fate

A source close to the recent Commonwealth Ministerial Action Group (CMAG) meeting in New York has told Minivan News that severe divisions within the group regarding the Maldives’ status resulted in two hours of fierce debate before the wording of the final statement was agreed upon.

After discussing the meeting with three of the group’s delegations, the source revealed that it was the final paragraph regarding the Maldives’ situation which resulted what was described as prolonged “fighting”.

Paragraph 19 detailed the decision to “move consideration of Maldives in future to its agenda item ‘Matters of Interest to CMAG’”.

The reported divisions within the group shed further light upon the confusion which followed the release of the CMAG statement last week – five members were described as being “vehemently opposed” to removing the Maldives from its agenda.

“It was basically the Bangladeshi Chair versus the rest,” said the source.

After senior government figures as well as local media in the Maldives announced that the country had been removed from the agenda, CMAG member and Canadian Foreign Minister John Baird released a statement declaring his satisfaction that the Maldives remained on the agenda.

Earlier this week, Commonwealth Spokesman Richard Uku, told Minivan News that the Maldives was off the formal agenda and would resume its seat at the next meeting which is scheduled for April.

One of eight members in CMAG, the Maldives was suspended from the group in February after being placed on its investigative agenda.

“Being under the ‘Matters of Interest’ category simply reflects CMAG’s wishes to remain positively engaged. It should not be considered as a negative or punitive measure, because it is not,” said Uku.

“CMAG recognised the outcome of the Commission of National Inquiry report, reflecting the Government’s legitimacy,” he continued. “It recognised that there is more work to be done to follow up the CONI report recommendations to strengthen institutions.”

The source gave their own opinion of the outcome based their discussions with those present.

“The Maldives has been moved from one part of the agenda to another,” said the source. “The key wording in paragraph 19 was that the Maldives will resume its seat in April ‘in the absence of any serious concerns’.”

The source was told that this caveat alludes to Waheed’s agreement to pardon all politicians currently under investigation after allowing legal proceedings against them to be quickly concluded – Waheed reportedly told the group he could not stop legal proceedings.

The paragraph also hints at an alleged commitment made by Waheed to follow through with the CNI’s recommendations including prosecutions in relation to well-documented police brutality.

It is alleged that two of the group’s ministers have promised to walk out of April’s meeting should Maldivian Foreign Minister Dr Abdul Samad Abdulla resume his seat without these agreements having been adhered to.

Insulting CMAG

The meeting had been preceded by intense lobbying from both government and opposition groups regarding the Maldives’ inclusion on CMAG’s investigative agenda, reserved for those suspected of violating the Commonwealth’s core values of human rights and democracy.

Prominent figures in the government had suggested that, after having its legitimacy seemingly validated by the Commission of National Inquiry (CNI) report, the country should walk away from the Commonwealth should it not be removed from the agenda.

President Waheed echoed these sentiments in a speech given before a meeting during the United Nations General Assembly days before the CMAG meeting.

During the speech, Waheed took aim at the certain “powerful international actors”, describing them as serving “small justice to small states”.

Conversely, the opposition Maldivian Democratic Party (MDP) argued that CMAG’s revised mandate provided it with a remit to look beyond questionable changes of government to persistent violations of core Commonwealth principles.

Last week Foreign Minister and UN Special Rapporteur on Human Rights, Dr Ahmed Shaheed had predicted that CMAG would only remove the Maldives from its agenda if guarantees of free and fair elections were given.

The informed told Minivan News that Waheed was “grilled” by the panel for around 75 minutes, at one point being told that he was insulting CMAG with his seemingly contradictory answers.

The frustration of the Canadian representative when asking Waheed about persecution of opposition politicians was made clear in the press release the following day.

“President Waheed offered no substantial defence of these questions, which is a telling response in itself,” he said.

The source reported that some in the panel had felt the government’s argument for removal from the agenda due to the negative publicity it generated was “stupid”.

Regarding the reported agreement to pardon those politicians convicted in order for them to participate in next year’s elections, the source expressed concern that CMAG ministers may still have been “duped”.

“Ministers are not aware of constitutional clauses saying one year must pass after the pardon [before being eligible for elected office],” said the source.

The President’s Office had hinted previously that Waheed may consider clemency in the case of former President Mohamed Nasheed who currently faces charges of illegally detaining a judge and defaming senior members of the current government.

Nasheed failed to appear at the start of his criminal court trial yesterday, defying a travel ban to sail to the southern atolls for electioneering purposes.

Last week Nasheed’s MDP announced it would refuse to observe the authority of the courts until the judiciary is reformed as recommended in the final CNI report.

President’s Office spokesman Masood Imad was asked to give a government reaction to these allegations but had not responded at time of press.

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Tourism Ministry hits back at MIRA accusations over failure to collect resort rents

The Ministry of Tourism has hit back at claims made last week that it was failing in its duty to collect rents and associated non-tax revenue from the country’s largest industry.

Following claims made by the Commissioner General of Taxation at the Maldives Inland Revenue Authority (MIRA) that the tourism ministry was failing perform its duty of collecting such revenue, State Minister for Tourism Mizna Shareef has called the accusations “baseless and unfair.”

“Under the new tax regime, MIRA can go after those who don’t pay rent,” said Mizna. “It is very unfair and inappropriate for MIRA to make these statements.”

Mizna argued that the authority had been pressuring the tourism ministry to suspend operating licenses for late-payers without considering the wider implications for the industry as a whole.

“There has to be balance – the industry must be protected while rents are collected,” she continued.

Tourism is by far the largest industry in the country, contributing over 70 percent of GDP via associated industries and 90 percent of all foreign exchange receipts.

Allegations by groups in support of the now-opposition Maldivian Democratic Party (MDP) linked several prominent Maldivian resort operators with February’s disputed transfer of power.

A travel advisory created shortly after the transfer rated resorts on a traffic-light system, urging against travel to resorts marked ‘red’ – being linked with the alleged coup-makers. The site has since been taken down.

The recently completed Commission of National Inquiry (CNI) ruled that the transfer of power had occurred within constitutional boundaries – a decision over which the MDP has registered strong reservations.

Tourist arrivals have continued to rise this year, with the Asian (largely Chinese) market taking up the slack from a downturn in European holiday-makers, although growth has slowed considerably in comparison with last year.

Director General of Revenue Service at MIRA, Fathuhulla Jameel, was not responding to calls at the time of press.

Lease extension

MIRA’s figures for August showed that ‘Tourism Land Rent’ collected last month was only 19 percent of the amount collected in the corresponding period last year.

Tourism land rent for the year so far is shown to be only three quarters of that collected by the same point on 2011.

The importance of this revenue stream can be seen in the share of overall revenue tourism land rent alone contributes to the authority’s figures – making up 10 percent of MIRA’s income this year.

Another important source of tourism revenue comes from lease extension payments from resort operators – islands are ultimately the property of the state and are leased to the operators on long term bases.

Mizna took issue with the suggestion that the government had re-interpreted the lease extension payments with detrimental effects for the state’s annual budget.

MIRA’s figures show that revenue from lease period extension fees has been US$11million (MVR 168 million) so far this year, compared to US$20million (MVR 273 million) at the same point in 2011.

Mizna argued that the initial arrangement for the collection of lease extension payments had not been fully elucidated by the courts prior to the current government’s assumption of office.

A High Court ruling last December ruled in favour of the 2010 second amendment to the Maldives Tourism Act after it was said to contradict article 8 of the original legislation, pointed out Mizna.

The second amendment states that fees of US$100,000 for every year extended should be paid over a period of between 18 or 36 months depending on operator’s status when the act was published in the government gazette.

The Nasheed government had requested that the payments be made in a lump sum.

Former Tourism Mariyam Zulfa, speaking shortly after the new government took office, explained the Nasheed government’s reading of the system.

“The second amendment to the tourism law came into place it gave the option for resorts to extend the existing 25 year leases to 50 years. A time period was given and there is a clause that stipulates that the payment must be done in completion before the lease period can be extended,” she said in March.

“So, the Nasheed government had interpreted that clause as the payment to be paid in full for the period extended. So, because the wording is such that the payment must be complete before the extension is granted, we interpreted it as the full payment,” she continued.

“But there is another clause which says the manner in which the payment is calculated is on an annual basis. This government has over-interpreted that clause and has said that the payment has to be made annually,” argued Zulfa.

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Gasim receives ‘lifetime achievement’ award at Maldives Travel Awards

The Maldives’ first ever travel awards ceremony was held at Paradise Island Resort on Friday evening to mark 40 years of tourism in the country.

The event, organised by the Maldives Association of Travel Agents and Tour Operators (MATATO), was sponsored by India’s GMR, the current developers of Ibrahim Nasir International Airport (INIA) which is expected to welcome over one million visitors into the country this year.

Following the opening of the events by some of the Maldives’ top musical acts, including Unoosha, Barchi, Ritte and Mummu, 21 awards were distributed for the categories of resorts, hotels, liveaboards and aviation.

The MATATO appointed judging panel included Dr. Mahamood Shougee (Former Minister of Tourism and Civil Aviation and Former Minister of Education), Dr. Ahmed Adham Abdulla (CEO of Maldives Transport and Contracting Company), Ms. Zeenaz Hussain (Dean of Faculty of Hospitality and Tourism Studies), and Mr. Ghaly Murthala (Tourism Development Consultant for FJS Consulting Pvt Ltd).

Amongst the individual award winners on the night was Gasim Ibrahim, owner of Villa Hotels – the parent company of Paradise Island and current leader of the government aligned Jumhooree Party (JP) – who received a lifetime achievement award.

The Hulhule’ Island Hotel (HIH) also won the award for best luxury hotel whilst Paradise Island resort won the award for leading business hotel. The Villa group also picked up an award for leading domestic airport.

Mr Maleeh Jamal – formerly head of MATATO and current Deputy Tourism Minister – was also in line for a personal award, receiving an appreciation plaque alongside Abdulla Jabir – Deputy Leader of the JP – and Yoosuf Riffath, managing director of Capital Travel.

“The event was very successful, and we thank all the sponsors and MATATO for their assistance and support in making the first Maldives Travel Awards a grand success,” said Ismail Hameed, Director of Marketing for the event’s management company, High Rise.

“We also thank all the nominees and congratulate all the winners, and hope that more resorts, hotels, Liveaboards, airlines and airports will participate in next year’s awards,” he added.

Friday’s award winner Maleeh Jamal declared that the “hard days were over” for Maldives tourism, the country’s primary industry, responsible for over 70 percent of the country’s GDP.

Amidst the uncertainty since February’s power transfer, tourism authorities in the country have pursued a strategy of collaboration with the country’s private sector to try and strengthen arrival numbers to the country.

This focus included signing a US$250,000 (Rf3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services.

In April, the Maldives Marketing and Public Relations Corporation (MMPRC) confirmed the appointment of New-York based public relations agency Ruder Finn to “oversee the overall media coordination and achievement of PR related solution for destination Maldives.”

Despite the scepticism of some leading branding consultants about the ease with which the Maldives can overcome the negative headlines of this year, Maleeh anticipated increased growth in the coming months.

Arrival numbers to the Maldives between January and August this year totalled 614,802 people – an increase of 2.9 percent compared to the same period during 2011.

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Canadian Foreign Minister “glad that Maldives remains on CMAG agenda”

“Canada with others fought to keep Maldives on the Commonwealth Ministerial Action Group agenda, and we are glad it remains there,” said Canadian Foreign Minister and member of the Commonwealth Ministerial Action Group (CMAG), John Baird.

“We will continue to focus on anti-democratic activities in the Maldives, especially in terms of police brutality, and intimidation of opposition parliamentarians,” said Baird in a statement released by the Canadian government.

“Canada is deeply troubled by the reported September 25 travel ban of former President Nasheed in Malé,” he added.

Baird’s statement evinces a level of confusion following CMAG’s decision yesterday to revoke the Maldives’ suspension from participation in the group’s affairs, whilst retaining it under the ‘matters of interest’ on its agenda.

Local media immediately ran with the headline “CMAG removes Maldives from official agenda” whilst the Home Minister Mohamed Jameel Ahmed tweeted, “Congratulating Maldives, CMAG has removed Maldives from its Agenda, it proves that the current government is for Rule of Law.”

Baird, present at yesterday’s meeting alongside President Dr Mohamed Waheed Hassan, expressed his concern at Waheed’s response when he was asked “about the persecution of 19 Maldives Democratic Party (MDP) politicians and party officials.”

“President Waheed offered no substantial defence of these questions, which is a telling response in itself,” said Baird. “Canada finds the declining state of democratic values in the Maldives alarming and deeply troubling.”

“The recently adopted Commission of National Inquiry report has raised substantial concerns about the independence of the judiciary. That too causes Canada grave concern as we strive to assure independent open elections in the Maldives,” he added.

The MDP last week documented such instances of perceived harassment in a press release titled “Immunity Watch Maldives”.

The CMAG meeting coincided with a nationwide demonstration by Nasheed’s Maldivian Democratic Party (MDP) in protest against Nasheed’s travel ban which the courts have defended as standard practice.

MDP spokesman Imthiyaz Fahmy told Minivan News that the 7,000 people marched around the island yesterday afternoon what he described as “one of the biggest [protests]  in recent times.”

He stated that there had been no confrontations with police, a fact confirmed by Police Spokesman Sub–Inspector Hassan Haneef who confirmed that there had been no arrests.

At the MDP’s National Executive Council, local media reported former Minister of Housing Mohamed Aslam as saying that Nasheed would not comply with the court-issued travel ban following the party’s decision to reject the authority of the courts.

“We are prepared to do the necessary to get him onboard. We are willing to sacrifice, to ensure that Nasheed does not lose his presidential candidacy. We will not give in. We are prepared follow Nasheed to prison,” Aslam is reported as saying.

Nasheed’s legal team expressed its deep concerns over the legality of the court’s procedures regarding Nasheed’s multiple trials regarding defamation of cabinet ministers and the detention of Chief Judge Abdulla Mohamed.

Nasheed was scheduled to travel to the Southern atolls as part of his campaign for the constitutionally mandated elections in 12 months time.

Imthiyaz confirmed that Nasheed would be travelling with the party on Monday although he was unsure as to whether the former president would be in court tomorrow for the first of his two defamation cases.

Nasheed had previously requested that the criminal case regarding Abdulla Mohamed be expedited and was reported as being keen to have his day in court.

Baird’s statement pledged Canada’s intention to “forcefully” raise its concerns at subsequent CMAG meetings in order to ensure the Commonwealth’s values of democracy, human rights and the rule of law are not violated.

CMAG’s power to protect these values was strengthened during a meeting of the Commonwealth Heads of Government (CHOGM) in Perth in 2009.

During a speech made during the United Nations General Assembly (UNGA) earlier this week, President Waheed made aimed a thinly veiled attack at the Commonwealth, questioning the 54-member organisation’s commitment to equity and the rule of law.

Previous expressions of concern regarding politicisation of the legal process made by Baird at the beginning of August were condemned by the Maldivian government as “one-sided” and “misleading”.

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MDP to hold nationwide protest following Nasheed’s travel ban

The Maldivian Democratic Party (MDP) has announced its intention to conduct a nationwide protest on Friday following the decision to place former President Mohamed Nasheed under island arrest.

The Department of Judicial Administration yesterday told local media that the travel ban was “standard procedure” followed by all courts.

Nasheed has also been charged with two cases of defamation, for calling the Defence Minister and Police Commissioner traitors. He has been summoned to the Civil Court on September 30 in relation to the defamation charges.

The party has refrained from larger demonstrations since the release of the Commission of National Inquiry (CNI) at the end of last month.

In their observations, the CNI’s international observers were critical of the MDP’s tendency to demonstrate on the streets, describing it as “bully-boy tactics involving actual and threatened intimidation by a violent mob.”

Following apparent absolution by the CNI, the Maldives Police Service announced that it would arrest anybody found using the word ‘baaghee’ towards police.

Nasheed will also appear in Criminal Court on Monday, October 1, in relation to the detention of Chief Judge Abdulla Mohamed which preceded his ousting in February.

Should he be convicted of the latter offense, Nasheed would be constitutionally barred from standing in next year’s scheduled presidential elections.

The MDP – still the nation’s largest party by membership – has previously declared that it would boycott such elections should Nasheed be blocked from participating.

Tomorrow’s protest will coincide with a meeting of the Commonwealth Ministerial Action Group (CMAG) in New York, where the issue of removing the Maldives from the group’s investigative agenda will be discussed.

President Waheed’s government has insisted that the CNI’s verdict of ‘no-coup’ regarding the February transfer of power means the Maldives should be removed from the agenda, while the MDP have pointed out that institutional deficiencies exposed in the report demonstrate that the Maldives case still falls firmly within CMAG’s remit.

Whilst in New York, Waheed spoke before the United National General Assembly (UNGA) where he aimed a thinly veiled attack at the Commonwealth’s understanding of the rule of law during its recent dealings with the Maldives.

Impunity Watch

The restriction on Nasheed’s movements came days after the party released a document titled ‘Impunity Watch Maldives’.

The document, stated to be the first of a monthly summary of human rights violations, follows two damning reports earlier this month by both the International Federation for Human Rights (FIDH) and Amnesty International.

Amongst the figures included in the ‘Impunity Watch’, the report stated that the number of MDP MPs having faced prosecution or questioning by the government was now seven, a figure which party spokesman Hamid Abdul Ghafoor stated was a third of the party’s representation in the Majlis.

This number jumps to twenty nine if party officials are included such as Nasheed himself, and the party’s chairperson ‘Reeko’ Moosa Manik, who is facing charges of disrespecting the judiciary.

It lists the number of instances of police brutality against protesters since February 7 as 130 and the numbers detained by police in relation to opposition protests as 851.

The MDP criticised what it sees as the failure of the government or of United Nations Resident Co-ordinator Andrew Cox to condemn these human rights violations.

Meanwhile, the document gives the number of police officers arrested in relation to human rights violations as zero, as well as highlighting the case of one officer who was promoted twice after the Police Integrity Commission (PIC) recommended he be prosecuted.

PIC Chair Shahinda Ismail has named the officer in question as Ali Ahmed, stating that his promotions came after the commission had recommended his removal to the Home Minister.

“It is really upsetting – a huge concern – for me that the police leadership is showing a trend where unlawful officers are acting with impunity. This can only lead to further violence,” said Shahinda.

In the first of three PIC reports into the events surrounding the transfer of power, nine separate incidents were highlighted, with the commission unanimously pledging to pursue further legal action in five of the cases.

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MIRA accuses Tourism Ministry of not collecting resort rents

Commissioner General of Taxation at the Maldives Inland Revenue Authority (MIRA), Yazeed Mohamed, has named the Tourism Ministry as the prime culprit amongst state institutions which are failing to collect payments owed to the government.

“If rent on resorts is not paid, the Tourism Ministry must take action in accordance with the agreement. But so far no such action has been taken against anyone,” Yazeed told local newspaper Haveeru.

As MIRA was not party to the agreements made between certain government institutions and third parties, it could not itself enforce or implement payments, he explained.

“If rent is not paid we have to take it up in court. That is to obtain payments not paid for a certain period. Then it is used as an excuse. From that point on they get a free license to stay without making payments. Once a case is filed in court, it can go up to two years without a single payment,” Yazeed told Haveeru.

“Not everybody is penalised equally. There is no differentiation between the parties that pay the amount that is owed or the ones that don’t,” he added.

Despite not collecting payments such as land rents and associated fees, MIRA includes such figures on its monthly statistics.

The figures for August showed that ‘Tourism Land Rent’ collected last month was only 19 percent of the amount collected in the corresponding period last year.

Tourism land rent for the year so far is shown to be only three quarters of that collected by the same point on 2011.

The importance of this revenue stream can be seen in the share of overall revenue tourism land rent alone contributes to the authority’s figures – making up 10 percent of MIRA’s income this year.

Former Economics Minister Ahmed Inaz told Minivan News today that this issue was also a problem under the former Maldivian Democratic Party (MDP) led government.

“The system is not transparent or fair – under the Nasheed government or now,” said Inaz.

“The Judiciary and executive should penalise industries which are penalising the system. The system should be designed for all, not individuals,” he said.

Dr Mariyam Zulfa, Tourism Minister under the Nasheed administration, disputed the suggestion that any resort owners received preferential treatment during her tenure and said that non-compliance was always a problem, everywhere.

“Only about 10 percent of resort operators failed to comply. In every country there are those who do not comply with taxation legislation’s requirements – the Maldives is no different” she said.

MDP members have persistently linked powerful resort owners with what it perceived to be a coup d’etat which saw President Mohamed Nasheed leave office in February.

Shortly after the transfer of power, there was a re-interpretation of the legislation governing island lease extensions which Zulfa predicted would severely reduce government revenue.

“The Nasheed government had requested that those resorts extending to a 50 year lease pay in a lump sum,” she said at the time, “but while I was Tourism Minister, Gasim Ibrahim and Ahmed ‘Redwave’ Saleem kept pressuring me to let them pay on a yearly basis.”

“They didn’t want to give any money to the government, and soon after the government changed they got what they wanted. [The installments] will only be payable at the end of the current lease periods – it is a huge loss to the treasury,” she added.

MIRA’s figures show that revenue from lease period extension fees has been US$11million (MVR168million) so far this year, compared to US$20million (MVR273million) at the same point in 2011.

Minister of Finance and Treasury Abdulla Jihad told the Majlis’ Finance Committee earlier this week that state revenue was expected to be MVR3.1billion (US$200million) less than expenditure this year.

Neither the current Minister for Tourism – Ahmed Adheeb – nor the Deputy Tourism Minister – Mohamed Maleeh Jamal – were responding to calls at the time of press.

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Delay of South Asian Games “big blow” for regional sport: National Olympic Committee

Secretary General of the Maldivian National Olympic Committee (NOC) Ahmed Marzook fears that the persistent delaying of the South Asian games will be detrimental for athletes both in the Maldives and throughout the region.

“This is a big blow, and not just for us – it’s about regional sport,” he said. “This is the hope for youth in the region – this is the only thing for youth in the region.”

Marzook’s comments follow India’s decision to delay the hosting of the games for the second time. Originally scheduled for next month, the games had been rescheduled for February 2013 due to this summer Olympic Games.

However, during a teleconference with the Indian Olympic Association last week, Marzook was told that the games could not be held in February, with September 2013 mooted as an alternative.

The NOC has yet to receive official confirmation of the postponement, fuelling concerns that the games may even be pushed back to 2014.

This, explained Marzook, would only exacerbate the budgetary problems that have been caused by the delays.

“In 2014 we will be competing in both the Commonwealth and the Asian games. This will be hard if we have the South Asian Games in the same year – imagine the ticket prices for the delegations,” he said.

The postponement of the South Asian games has already caused the NOC financial problems, with money for training coming from rigid government budgets, and contracts already having been agreed with foreign coaches with February in mind.

Despite the success of the Maldives Olympic team at this year’s London games, the international experience was viewed largely in terms of preparation for the proposed regional games in February.

“The South Asian games are the first steps in terms of international exposure for many athletes,” said Marzook.

Despite regulations which state the eight-nation games must be held every other year, the competition was last held in 2010.

Previous aberrations from the biennial rule came in 2001, when the September 11 attacks caused the postponement of the Islamabad games, and in 2008 when issues surrounding the general elections in Bangladesh resulted in delaying the Dhaka games.

“If India can’t host this, who can,” asked Marzook, who argued that the recent Commonwealth Games in New Delhi meant that all the infrastructure for the event was in place.

Marzook argued that the reason for the delay was infighting between the Indian government and its Olympic association (IOA).

The IOA is currently in the middle of a political storm as, this week, the International Olympic Committee (IOC) insisted on sending international observers for the association’s elections.

Suresh Kalmadi has been President of the IOA since 1996 but was suspended after being arrested and jailed for his part in a corruption scandal surrounding the 2010 Commonwealth Games.

When asked about the delay in the games, Cultural Attache’ at the Indian High Commission in Male’, PC Mishra, said that the there were “no specific reasons” for the postponement.

“It is an administrative process,” said Mishra, who described Marzook’s concerns as “a little bit premature – an overreaction.”

Marzook said that Nepal had offered to step in to host the games in February, but that India had blocked the move.

Nepal, which is due to chair the next SAARC summit in before May 2013, was reported earlier this month to have fallen behind in its preparations owing to the political standoff in the country.

Bangladesh’s Daily Star newspaper said that Nepal was expected to inform other SAARC foreign ministers of the postponement of the 18th summit at a meeting scheduled to be held alongside the United Nations General Assembly, which is currently meeting in New York.

Despite the uncertainty surrounding Maldivian athletes’ next international tournament, Marzook said that training would continue.

He revealed that arrangements were nearly completed for the intensive training of the country’s two top runners in Jamaica.

Azneem Ahmed and Hassan Saaidh – both members of the bronze medal winning 4x100m relay team in Dhaka – will travel to Jamaica after the NOC secured leave from their respective employers – the Police and the Maldives National Defence Force (MNDF).

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