Category: Politics

Comment & Analysis: Corruption, your ‘no’ counts

Corruption has a devastating effect on democratic governance and economic development all over the world.

The problem is global and no country in the world could possibly claim to be immune against any of the various forms in which corruption manifests itself. Yet, it is of particular concern in the developing world, as huge amounts of money and resources are diverted through corruption away from what it should serve: socio-economic development, justice and security.

And it is a particular concern to South Asia, which is home to one-fifth of the world population and where countries face enormous challenges of sustainably alleviating poverty for millions of people and of meeting the universally agreed upon Millennium Development Goals in less than six years from now.

Corruption, not culture

Often, people believe that they are at the mercy of corruption or even that paying a bribe just belongs to a way of life or a culture in a given society and that this cannot be changed. Although corruption is mostly unanimously considered as ethically unacceptable, it seems that only few are able to visualize and understand the long term harmful consequences of corruption for development and the society. It is perhaps, therefore, that skepticism with regard to the benefits of a zero tolerance approach, have remained for a long time.

This is now gradually changing. In 2003, the world community marked a historic milestone by adopting the United Nations Convention against Corruption, the first ever universal instrument against corruption.

Two years later, it entered into force and today, we can report that 142 countries have ratified the Convention. Through this Convention, Governments have now universally agreed upon and accepted comprehensive standards and measures to criminalise and prevent a variety of forms of corrupt practices, such as bribery of public officials, both national and international, embezzlement of funds, trading in influence, abuse of functions, illicit enrichment, laundering of the proceeds of crime and obstruction of justice.

Equally important, State Parties to the Convention have committed themselves to implement appropriate measures for asset recovery, also across borders, and international cooperation in view of the transnational character of organized criminal activities, such as drug and arms trafficking.

UN-logoWhereas the Convention has been signed and ratified by Governments, it does not limit itself to entrusting measures for the public sphere. It also proposes concrete measures to be taken both by the private sector and the civil society. For example, the Convention specifically mandates the private sector to establish a code of conduct for the prevention of conflicts of interest, internal auditing controls as well as proper commercial practices.

Equally, the civil society is called upon to create awareness and undertake public information and education programmes to promote transparency, integrity and non-tolerance of corruption.

Since entering into force, the State Parties to the United Nations Convention have met regularly to discuss progress in the implementation of the Convention. In the last meeting held in Doha in early November, States have made a breakthrough by agreeing to a new mechanism, under which they will monitor every five years to see how they are living up to their obligations under the Convention.

The strength of the monitoring mechanism is that it is based on self-assessments and peer reviews and that information will be made public.

Time has come to be judged by action taken and not by promises made. The “your no counts” campaign which was brought to live to harness people’s support for anti-corruption in the spirit of the Convention, also calls on you to stand up for integrity and take action against corruption.

Cristina Albertin is the UN representative for the Office on Drugs and Crime in South Asia.

All comment pieces are the sole view of the author and do not reflect the editorial policy. If you would like to write an opinion piece, please send proposals to [email protected]

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Parliamentary committee suspends budget review process

The parliamentary committee chosen to evaluate the Rf11.9 mid-term budget for 2010 has suspended the process after requesting information from the finance ministry.

In an email to Minivan News today, MP Ahmed Nazim (pictured) of the opposition People’s Alliance, chairman of the 15-member ad hoc committee and deputy speaker of parliament, said some of the information was presented in a “confusing and misleading” way.

“The budget is very misleading as the finance ministry has not provided any details for major changes in budgeted figures. For example expenditure of IGMH [Indira Gandhi Memorial Hospital] has been reduced from Rf317,662,050 to Rf248,842,204,” he said.

“The question is why? When we questioned the health minister in the committee only we came to know that they plan to corporatise IGMH by forming a Health Corporation and remove or reduce state subsidies.”

He added subsidies for the Maldives National Broadcasting Corporation was not included in the budget:  “Can TVM [Television Maldives] and VoM [Voice of Maldives] finance their 2010 operations on their own? Surely not.”

Among other discrepancies were expenditure and revenue included in the budget for dissolved bodies and departments.

“The government recently announced that they have abolished Public Complaints Bureau and Department of medical Services. BUT expenditure amounting to Rf2.5 million is included in 2010 budget for Public Complaints Bureau in Home Ministry budget and Rf6.5 million is included as REVENUE from Dept of Medical Services,” he said.

Further, the committee noted that the budget for atoll hospitals was higher than the previous year.

“When we questioned the health minister and senior officials of the health ministry they said they don’t know the reason for that. They also said that MAY BE it is because the budgets of all other health centre’s of the atoll is included in the atoll hospital budget of that respective atolls,” said Nazim. “We cannot go ahead with a budget review with answers like ‘may be’. We need to be sure.”

Nazim said the finance ministry has not responded to the committee’s letter requesting information.

But, he added, the committee would be able to complete its evaluation in the required time frame.

Officials from the finance ministry did not respond to Minivan News’ requests for comment today.

Parliament yesterday wrapped up the budget debate after 60 MPs spoke throughout three sittings.

MPs of the opposition Dhivehi Rayyithunge Party-People’s Alliance (DRP-PA) coalition strongly criticised the budget, arguing it did not include sufficient funds for development projects.

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CSC refutes media reports of condition attached to IMF aid

The Civil Service Commission (CSC) has denied media reports the International Monetary Fund (IMF) approved financial assistance of US$92.5 million on the condition that salaries and allowances for civil servants are reduced.

A press release issued by the CSC yesterday states that the commission did not believe the IMF imposed the condition that salaries are reduced solely for civil servants.

It quotes from a statement issued by the IMF on Friday, which states the government was taking action to reduce expenditure, “including unwinding part of the recent large wage increases” and had “taken steps to reform the civil service”.

The commission points out that the IMF statement does not exclude or single out a particular area for salary reductions.

“Since it does not define the outcome of the reform when it refers to the civil service reform, we believe the opportunity would remain for employees’ salaries to be increased,” it reads.

Last week, the CSC sent letters to both President Mohamed Nasheed and parliament requesting civil servants’ salaries be restored to their former levels.

In August, the government introduced a raft of austerity measures, such as pay cuts for political appointees up to 20 per cent, to alleviate the budget deficit.

Following negotiations between the finance ministry and the CSC, the commission agreed to reduce salaries of civil servants up to 20 per cent subject to a review in three months.

When the pay cuts were enforced in October, it was agreed that the salaries would be restored to former levels once government revenue exceeds Rf7 billion (US$544 million).

The mid-term budget for 2010 was proposed to parliament with projected revenues of Rf7.3 billion (US$568 million).

The commission’s press release states that as section 43 of the CSC regulations empower the commission to alter salaries, other government authorities could not sign agreements stipulating reductions for civil servants’ salaries.

Presenting the budget to parliament, Finance Minister Ali Hashim said the IMF, World Bank and Asian Development Bank had recommended reductions to the civil service.

Mohamed Zuhair, president’s office press secretary, told Minivan News last week that salaries would only be restored once the revenue “physically” reached Rf7 billion.

The civil service pay cuts sparked outrage from the opposition, which accused the government of unfairly targeting civil servants as they were sympathetic to the former government.

The opposition further denied that the economic circumstances warranted the pay cuts and criticised the government for “economic mismanagement”.

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Embezzlement accusations resurface amid World Bank investigation

Ibrahim Hussein Zaki, special envoy to the president, has renewed allegations that former president Maumoon Abdul Gayoom has US$80 million hidden in foreign bank accounts, including US$40 million in tsunami aid from the Emir of Qatar.

The last time the allegation was made, by Hassan Afeef, a former MP and now political advisor to the president, Gayoom successfully sued for defamation and Afeef was fined US$350.

Zaki insisted he “was only quoting what was said in newspapers in the UK in an interview with the Global Protection Committee (GPC),” describing it only as “an international NGO.”

The GPC’s leader, Michael Lord-Castle, told Minivan News during an interview in November 2006 “that we have been advised that between US$60-80 million has been transferred from Maldives’ governmental funds directly to various private bank accounts in favour of President Gayoom. Some of those funds we understand derive from donations made in respect to the tsunami disaster.”

When Minivan News asked ‘Commander’ Lord-Castle to disclose the countries and banks the money had been transferred to, he replied that “investigations are continuing and at this stage it is necessary to withhold certain information.”

Members of the controversial GPC, of which little record exists for an organisation “first formed in 1943 towards the end of the Second World War” and boasting “over 2,400 members ranging from ex-presidents, prime ministers and ministers of different countries”, travelled to the Maldives to observe the Maldivian Democratic Party (MDP)’s planned assembly for constitutional change on 10 November 2006.

Lord-Castle said the group had been commissioned to produce a report to the European Parliament on the political situation in Maldives, a claim denied by the European Parliament. He was deported from the Maldives together with four associates.

The GPC’s website has since disappeared from the web, while Lord-Castle’s current wikipedia entry describes him as a ‘well-known English businessman’ with varied involvement in an insolvency advisory service, a failed business-class airline, a vigilante ambulance service, and the supplier of a cleaning chemical called Vizexon promising to “kill all pathogens, including swine flu, H5N1, bird flu, SARS, influenza virus and HIV.”

Zaki said that he did not believe the accusation was defamatory “and if Gayoom feels he is getting defamed then he should file a suit against the GPC.”

“If [the accusation] proves true it will be fairly significant because first of all it was money from the National Treasury, secondly the money was for tsunami victims, and thirdly there would be reason to anticipate more [hidden money],” he said.

World Bank enlisted

Zaki pictured with members of the GPC in November 2006
Zaki pictured with members of the GPC in November 2006

Maldivian President Mohamed Nasheed announced in September he was seeking the help of the World Bank’s Stolen Asset Recovery Initiative (StAR) to recover a suspected US$2 billion in embezzled funds, stating that the money was needed to plug a budget deficit of 34 per cent of GDP.

“Many people have been in one way or another connected to this huge web of corruption,” Nasheed said, adding that international help was needed because of a lack of forensic accountancy skills in the country.

Gayoom’s assistant and former chief government spokesperson Mohamed Hussain Shareef (Mundhu) responded to the allegations by demanding Zaki “show us the evidence. If you have the details make them public, instead of repeating allegations. Maumoon has said, ‘go ahead and take a look, and if you find anything make it public.'”

“There is no evidence to link Gayoom to corruption,” he insisted. “What Afeef said was very slanderous. We threw the book at him, and showed in court that he had no evidence to back up his claim at all, not a single piece of evidence.”

He described the renewal of the allegations as “immature, especially dragging the Qatari government into this. We called them and they were as surprised as us – senior officals in their government had no clue about [the alleged theft of US$40 million in tsunami aid]. Anyone of intelligence knows that aid money is not passed across a table by leaders. Gayoom could obviously not just take off with donor or tsunami aid.”

Mundhu expressed confidence that the World Bank’s investigation “would find nothing untoward. I know for a fact that our tsunami aid accounting mechanism was far superior to that of many other countries. All the aid money went through one oversight body headed by the then UN representative and the auditor general.”

The source of the allegations, the GPC, were one of many “voodoo NGOs” around at the time, he said. “We tried to find out what they were about, and basically drew a blank. Nobody in the UK knew anything about them.”

The allegations were intended “to wipe Gayoom off the political map,” Mundhu claimed. “The MDP is a minority government. Nasheed himself as an individual has no more than 25 per cent support in the country. Gayoom is the most popular individual with 45 per cent and over 100,000 die-hard supporters – clearly people thought he did a good job. Nasheed could not beat him one-to-one, and that reality is very hard [for the MDP] to stomach.”

The accusations of embezzlement, he suggested, were the activities of “certain unpleasant elements in the MDP. I don’t branch Nasheed in this, but [the party] was so intent on bringing in people with grievances towards the [former] government that they brought in unsavoury elements that now even Nasheed cannot control.”

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Concubine rumours exaggerated say police, arresting husband

Police have said their investigation into the alleged 17-year-old concubine revealed that rumours the girl was being kept as a sex slave were exaggerated.

However at a press conference today, Mirufath Faiz, head of the family and child protection unit, said the investigation was still ongoing as her marriage in India to a 22-year-old Maldivian man was not legally recognised.

“What we are now investigating is the case of an under-aged girl who became pregnant,” she said.

The case of the ‘concubine’ was first brought to public attention by former Attorney General Azima Shukoor at a Dhivehi Rayyithunge Party (DRP) rally.

Azima said she read on freelance journalist Hilath Rasheed’s blog that a woman who took an under-aged girl to Indira Gandhi Memorial Hospital told a doctor that she was her husband’s concubine.

Police and the Human Rights Commission of Maldives (HRCM) have since been trying to locate the girl.

Jeehan Mahmoud, spokesperson for the commission, told Minivan News today the matter had been handed over to the police.

“We are no longer investigating the concubine case,” she said.

Mirufath said today the investigation has shown that the matter became increasingly exaggerated as the stories came out of IGMH.

She said a Dr Shifan from IGMH told police the girl’s guardian told him that she was her husband’s concubine.

“But the older woman who took the girl denies this,” she said, adding hospital records show that she took the girl on two occasions in late June.

She said police began its investigation in September and gathered information of all girls who took pregnancy tests at IGMH from June.

In the process, she said, police learned that a 16-year-old girl tested positive.

In May, Ahmed Jihadhu, 22, M. Liyage, married the 16-year-old outside of court, she continued, and submitted a marriage certificate to the family court in June.

“But, even though the marriage took place in India, the family court informed police that the marriage was not registered as the girl was 16 years old,” she said.

Ahmed Jihadhu (pictured above) is currently in police custody on suspicion of harbouring a fugitive.

Mirufath said police have confirmed that the girl was aged 16 when the marriage in India took place and the scan in June showed she was six weeks pregnant. Doctors said she is due to give birth in March 2010.

The girl’s father told police he consented to the marriage on the condition that it would be registered in the Maldives and was unaware that it took place in India.

Mirufath stressed that the marriage was not legally recognised in the Maldives.

At a press conference today, Fathmath Yumna, director general of the department of gender and family protection service, said the department was first alerted to the family in 2003.

The girl’s step-father alleged her mother was abusing the children, she said. Both have since passed away.

The case worker noted that the girl was neglected and not being educated.

Yumna said the girl’s father expressed concern and have since agreed for the department to take her under its care.

She urged the media to be more responsible in its coverage and not reveal the girl’s identity.

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IMF approves US$92.5 million for macroeconomic programme

The International Monetary Fund (IMF) on Friday approved US$92.5 million in financial arrangements to help the Maldives adjust to the aftermath of the global recession and support the government’s economic policy.

The “blended financing arrangements” include a 36-month US$79.3 stand-by agreement, 600 per cent of the Maldives’ quota, and a 24-month US$13.2 under the fund’s exogenous shock facility high access component.

“The Maldivian economy was severely hit by the global crisis through significant declines in Maldives’ tourism receipts, capital inflows, and goods exports. Coming after unsustainable public spending over the last few years—partly reflecting post-tsunami reconstruction efforts—the crisis led to a very large fiscal deficit, a sharply weakened balance of payments position, and reserve losses,” reads a statement by Takatoshi Kato, deputy managing director and acting chair of the IMF executive board.

“The government’s ambitious policy program, supported by the IMF, is aimed at addressing the impact of the global economic crisis and restoring macroeconomic stability and fiscal sustainability. At the core of the program is a very strong effort to bring down the fiscal deficit while protecting social spending. To that end, the authorities are taking immediate action to cut spending, including unwinding part of the recent large wage increases, and are introducing new revenue measures to broaden the tax base. They have also taken steps to reform the civil service, improve the targeting of subsidies to the poor, and transfer enterprises and services to the private sector.”

In September, the Maldives Monetary Authority (MMA) ceased printing money to finance the budget deficit and launched open market operations to absorb excess liquidity of the rufiyaa in order to alleviate the dollar shortage.

Meanwhile, the government debt at the MMA has been converted to tradable securities, while it announced the issuance of treasury bonds denominated in US dollars last week.

“The authorities’ program, while subject to considerable risks, is strong, comprehensive, and well-focused, and deserves strong support of the international community. If fully implemented, it will put the Maldivian economy back on a path of macroeconomic stability and set the conditions for sustained economic growth and poverty reduction,” concludes the statement.

The government’s policy to restore macroeconomic stability and fiscal sustainability involves reducing expenditure and increasing revenue to lower the large budget deficit and introducing targeted subsidies to the poor for food and electricity.

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EC requests finance ministry to reconsider pay cuts

The Elections Commission (EC) has sent a letter to the finance ministry in protest against pay cuts for their employees, arguing their salaries are already lower than staff in other independent institutions.

EC Vice President Ahmed Fayaz Hassan told Minivan News that there was “widespread dissatisfaction” among staff at the commission.

“While a labourer in the Elections Commission would get Rf4,000 to 5,000 (US$300 to US$400) a month, someone in the same job at the Human Rights Commission would get Rf10,000 (US$800),” said Fayaz. “There’s a huge difference in salaries.”

He added that the interim EC had requested the finance ministry raise the salaries of their staff earlier this year.

In August, the government announced it planned to undertake a series of austerity measures to offset the yawning budget deficit, including pay cuts for civil servants of up to 20 per cent.

Fayaz said that while the pay cuts were reasonable in principle, the EC’s 52 employees were “unhappy” because “they know staff in other commissions get better pay than them.”

He said employees expressed this grievance at a meeting on the new commission’s first day in office but added he did not think any would leave their jobs given the country’s economic climate.

Speaking to MInivan News today, Ismail Shafeeq, permanent secretary at the finance ministry, said it was up to independent institutions to decide upon the salaries of their employees.

“We have nothing to do with that. We have no control over them,” he said, adding he did not think the EC would increase salaries considering the economic difficulties being faced by the country.

But, said Shafeeq, the finance ministry had informed all independent institutions of pay cuts between 10 and 20 per cent effective this
month for all civil servants, which would be up for review at the end of the month.

In October, Ahmed Assad, state minister of finance, said independent institutions were “making excuses” to avoid lowering salaries and
allowances of employees.

His remarks came after independent institutions argued they were not legally obliged to cut their employees’ salaries.

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CSC asks govt to restore civil servants’ salaries

The civil service commission (CSC) has sent a letter to parliament requesting civil servants’ wages be restored to their former levels as the proposed mid-term 2010 budget anticipates a revenue of more than Rf7 billion (US$544 million).

CSC Spokesperson Mohamed Fahmy Hassan said a similar letter was also sent to President Mohamed Nasheed, reminding him of his remarks in October.

In his weekly radio address, Nasheed said civil servants’ pay cuts were a temporary measure and would be restored once the economy recovered and the government had increased its revenue beyond Rf7billion (US$544 million).

“The president’s message was very clear. In this case where so many are involved and it’s a promise that he made…I am very sure that in January they will be given their full salaries,” said Fahmy.

Ismail Shafeeq, permanent secretary of the finance ministry, said that according to the law, the finance ministry has to review the pay cuts every three months with the next evaluation coming at the end of the month.

Projected Revenue

Addressing MPs last week, Finance Minister Ali Hashim said the projected revenue for 2010 was Rf7.3 million (US$568 million).

Measures to increase government revenue, including the introduction of new taxes such as corporate tax and a goods and services tax to be imposed on tourist resorts, are still awaiting the passage of legislation in parliament.

Speaking to Minivan News today, Mohamed Zuhair, president’s office press secretary, said civil servants’ salaries would only be restored
when the government’s revenue “physically” reached Rf7 billion (US$544 million).

“If we reach it by September then September we will do it,” said Zuhair.

Acknowledging that the government may not reach its expected revenue, Fahmy said civil servants’ salaries should only be reduced if the government fails to attain its target.

In August, the government unveiled a raft of austerity package to help ease the budget deficit. Measures included pay cuts of up to 20 per cent for civil servants, a reduction in overtime as well as cutback on foreign travel.

The pay cuts have sparked outcry and several protests among civil servants and opposition groups who have accused the government of economic mismanagement.

“We will hold another demonstration on 10 December outside the finance ministry to back up the commission,” said Abdullah Mohamed, spokesperson for the civil servants’ association.

“We believe this damage was done to civil servants as a punishment and if there really were special economic circumstances, members of parliament and independent institutions too should have taken a pay cut,” he added.

Last month, an informal meeting of MPs on pay cuts ended in a heated argument after opposing parties accused each other’s government of mishandling the finances. All MPs Minivan News spoke to said they would be willing to take a salary reduction.

Pay cuts for independent institutions came into effect this month.

Overtime

In their letter, the commission also noted that civil servants asked to work overtime should be paid accordingly.

“If and where and when they are asked to do overtime, they are entitled to be paid overtime under the employment law,” said Fahmy.

He added that the CSC had received “lots of complaints” from civil servants who had been asked to work overtime but had not been paid.

“The work should be organised in such a way so that nobody should do overtime. In very specific cases where it’s needed to complete a
crucial task then that person has to be paid,” he said.

Zuhair said the government’s policy was that overtime should not exceed 15 per cent of the total hours worked and that all staff
working overtime should be paid.

If this was not the case, he continued, civil servants “should just refuse to work overtime.”

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Opposition MPs accuse govt of favouring MDP voters in budget

Funds were disproportionately allocated for public sector investment programme (PSIP) in next year’s budget for constituencies represented by MPs of the opposition Dhivehi Rayyithunge Party-People’s Alliance (DRP-PA), Mulaku MP Abdullah Yamin said at parliament yesterday.

Speaking at the budget debate, Yamin said approximately Rf25 million (US$1.9 million) was allocated for areas that voted for the opposition, while Rf121 million (US$9.4 million) was allocated for constituencies represented by the ruling Maldivian Democratic Party (MDP).

“I don’t think this a coincidence. I don’t believe at all that this could be a coincidence,” he said, adding the Rf530 million (US$41 million) for the PSIP was a fraction of the Rf11.9 billion (US$926 million) budget.

Yamin strongly criticised the government’s reliance on public-private partnerships (PPP) to deliver on development projects, claiming they were unlikely to materialise.

Other opposition MPs objected to the lack of funds allocated for development of the atolls.

Kelaa MP Abdullah Mausoom of the DRP said funds were not allocated for small businesses or development of fisheries and the construction industry.

MPs of the ruling MDP defended the budget, arguing development projects would be undertaken under PPPs.

Presenting the budget last month, Finance Minister Ali Hashim said the budget had the confidence of the International Monetary Fund (IMF). If the mid-term budget was implemented, he added, the deficit would decline to 14.8 per cent in 2010, 2.4 per cent in 2011 and reach a surplus in 2012.

The structure of the budget was agreed upon after consultations with the IMF, he said, and included recommendations by the IMF, Asian Development Bank and World Bank to solve structural problems in the economy.

Kendhoo MP Ahmed Thasmeen Ali, parliamentary group leader of the DRP, said yesterday the budget did not reflect the government’s stated policies.

Although the government had constantly urged reduction in government expenditure, he said, the expenditure for 2009 as well as the projections for 2010 exceeded the previous year.

Reductions were made to public sector investment by almost Rf900 million (US$70 million) from the previous year, he noted, while subsidies for electricity and food were lower by Rf300 million (US$23 million).

While the government’s policy was to reduce the number of government employees and civil servants had a pay cut in October, he continued, the expenditure on salaries and allowances for government in next year’s budget was Rf300 million (US$23 million) more than this year.

He urged the budget committee to identify the areas the funds had been increased for.

Thasmeen noted that funds allocated for salaries and allowances for employees of independent institutions were also lower than previous years.

Further, the budget for parliament was 16 per cent smaller than this year.

“We have to consider what kind of difficulties we will face in our task of holding the government accountable and responsible,” he said.

Thasmeen criticised the government for unilaterally reducing salaries for staff at independent institutions in next year’s budget.

The budget for the Human Rights Commission Maldives was decreased by 14 per cent and the Anti-Corruption Commission by 12 per cent, he said.

In the judiciary, the budget for the Supreme Court was lower by 33 per cent, the High Court by 42 per cent and island courts by 20 per cent.

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