Government confident of meeting 2012 tourism goals despite “political turmoil”

Maldives tourism authorities remain confident the country will meet its ambition to welcome one million visitors to the country during 2012 despite ongoing “political turmoil” in the Indian Ocean over the last year.

The country plans over the next 12 months to hold a number of celebrations to commemorate 40 years since its travel industry was founded.

Minister of Tourism, Arts and Culture Ahmed Adheeb has told media in a press conference on Monday that should the Maldives achieve its aims of attracting one million visitors to the country during 2012, it could be effectively seen as being equivalent to welcoming two million arrivals due to the challenges of overcoming the “political turmoil” following February’s controversial transfer of power.

“We are closing in on that target with a lot of challenges. We are working with major obstacles due to the present crisis in the country,” Adheeb was quoted as saying.

The comments were made as former President Mohamed Nasheed, who alleges he was forced to resign from office on February 7 this year under “duress”, pleaded for tourists to “be more aware” of the political problems facing the Maldives.

“Tourists should be more aware of what is going on here. They may think they are remote from Male’ [the capital] but many of the staff are from here,” Nasheed told the UK-based Guardian newspaper this week.

The vast majority of tourists coming to the Maldives stay at its secluded island resorts that are classed as uninhabited, therefore making them exempt from local laws that outlaw the sale and consumption of alcohol and pork products, as well as openly practising any faith other than Sunni Islam. This resort model also keeps most tourists away from the partisan politics of the country, as well as the  unrest that occurred in the capital of Male’ and other islands earlier this year.

Nasheed had previously called for a tourism boycott of the Maldives, as both himself and his supporters continue to question the legitimacy of the government of President Dr Mohamed Waheeed Hassan, his former vice president.

However, these calls were soon dropped by Nasheed and supporters of the now opposition Maldivian Democratic Party (MDP).  The party are still pressing for early elections this year, despite a Commonwealth-backed Commission of National Inquiry (CNI) concluding the transfer of power in February was constitutional.

Despite fears about the impact of political uncertainty, Deputy Tourism Minister Mohamed Maleeh Jamal claimed back in September “the hard days” were over for the Maldives tourism industry following the release of the CNI’s findings.

The MDP has itself accepted some of the recommendations of the CNI report relating to judicial reform and holding security officials accountable, despite maintaining “concerns” over how the report was compiled and the potential “comical” implications of its conclusions.

Accepting the challenges faced by the tourism industry, Adheeb claimed that the entire industry was united in seeking to boost the prospects for tourism in the Maldives.

“The industry is driven by itself. This industry is mature enough to continue without any government interference. The difference between the former government and us is we won’t micro manage the industry. We are facilitating the process within the contours of the laws and regulations,” he told local media.

Amidst these claims, the Maldives last Thursday (October 18) picked up a number of accolades at the World Travel Awards (WTA) in Singapore that Adheeb claimed highlighted the strength of the country compared to other Indian Ocean destinations.

“This shows that Maldives is a stronger tourist destination than other Indian Ocean island nations such as Seychelles, Mauritius or Madagascar,” he was quoted as telling Sun Online.

The accolades picked up by the Maldives at this year’s WTA included awards for being the leading destination in the Indian Ocean for cruise and honeymoon holidays.  Also honoured was Ibrahim Nasir International Airport (INIA) – presently at the centre of legal and political wrangling – which took the prize for leading regional airport.

Over half way

As the Maldives also commences a number of events to celebrate 40 years since the inception of the country’s tourism, official figures from August showed the Maldives was over half way to meeting its million visitor aims for 2012.

Arrivals to the Maldives between January and August 2012 totalled 614,802 people – an increase of 2.9 percent compared to the same period during 2011, Ministry of Tourism, Arts and Culture figures showed.

Deputy Minister Maleeh was unable to respond to Minivan News about Adheeb’s comments and the challenges facing the wider tourism industry at the time of press.

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High Court to decide on injunction for Nasheed trial

The High Court will decide on a request by former President Mohamed Nasheed’s legal team for an injunction halting his trial over the detention of Criminal Court Chief Judge Abdulla Mohamed at a hearing on November 4, the same day the trial at the Hulhumale’ Magistrate Court is set to resume.

Concluding today’s hearing of an appeal lodged by Nasheed’s legal team, challenging the Hulhumale’ Magistrate Court’s ruling on three procedural issues raised at the magistrate court’s first hearing on October 9, High Court Judge Shuaib Hussain Zakariya said the three-judge panel would issue a ruling on the injunction at the next hearing on the morning of November 4.

Speaking to press after the hearing, Nasheed’s lead attorney Hisaan Hussain explained that a request was made for a temporary injunction to suspend the criminal trial pending a ruling by the High Court on the procedural points.

“Today we submitted in detail the reasons we are seeking a temporary injunction,” she said. “In response, the Prosecutor General’s Office said they did not have anything further to say about issuing the injunction and to proceed in the way the court decides. That is, they do not object to [the court] issuing the injunction.”

On the High Court scheduling its next hearing for November 4, Hisaan noted that the next hearing at the Hulhumale’ Magistrate Court was scheduled for 4:00pm on the same day.

“We believe seeking an injunction is by its nature a matter of urgency,” she said. “So we have requested that the court expedite its decision on the injunction. We hope the court would make a decision before [November 4]. We will make such a request to the court in writing as well.”

At today’s hearing, Nasheed’s legal team raised the three procedural points dismissed by the Hulhumale’ Magistrate Court: a magistrate court holding a trial on a different island to where it was based; the constitutional legitimacy of the Hulhumale’ Magistrate Court; and the legality of the arrest warrant issued by the Hulhumale’ Magistrate Court, as such orders could only be issued by a court in the locality of the defendant’s permanent address.

At the October 9 hearing, the Hulhumale’ Magistrate Court summarily dismissed the first two points and agreed to hear the last issue. The court however ruled that the warrant was issued legally as it was following a precedent established by the High Court.

Meanwhile, the High Court today allowed the Attorney General’s Office (AGO) and Judicial Service Commission (JSC) to enter into the appeal case as third parties on the issue of the legitimacy of the Hulhumale’ Magistrate Court.

Lawyers from both institutions were present at today’s hearing. The state was represented by lawyers from the Prosecutor General’s Office (PGO).

Requesting the injunction, Hisaan reportedly argued that failure to do so could cause irreparable injury to the rights of the defendant as the Hulhumale’ Magistrate Court could conclude its trial and sentence the former President before the High Court ruled on the appeal.

While Deputy Solicitor General Ahmed Usham asked for an opportunity to respond to the request for an injunction, Judge Shuaib said that the three-judge panel had decided that the AGO attorney could not be allowed to argue regarding the injunction.

Former President Mohamed Nasheed also attended the hearing along with MPs, senior members and supporters of the formerly ruling Maldivian Democratic Party (MDP).

Almost an hour before the beginning of the hearing, police assisted by officers of the Maldives National Defence Force (MNDF) cordoned off the area surrounding the High Court at the former presidential palace.

“Unfair and unjust”

The MDP secretariat meanwhile issued a statement in the wake of the hearing expressing concern with the High Court’s scheduling of its next hearing for November 4.

“The party believes that the result of conducting both hearings on the same day will be the defence attorneys losing the opportunity to prepare for the original case at the ‘Hulhumale’ Magistrate Court’,” the statement read.

The MDP statement contended that the defence attorneys could only prepare for the trial based on the decision on the procedural processes.

The party also noted that the High Court has in the past conducted hearings at night and on public holidays to issue temporary injunctions.

“However, while a week has passed since the appeal and request for an injunction on behalf of President Nasheed has been filed at the High Court when the hearing was held today, the party believes that the decision to issue a ruling on the injunction on the same day the original case is to be conducted at the ‘Hulhumale’ Magistrate Court’ is neither fair nor just,” the party said.

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UK police to re-submit information in Maldives over death of British couple in quad bike accident

UK police are to resubmit requests from relatives of a British couple killed in a quad bike accident last year at Kuredu Island Resort, regarding their preferred method of sentencing in a Maldives court.

Swedish national, Filip Eugen Petre, a son of a shareholder in the resort, is facing trial for his alleged role in driving a quad bike at Kuredu on August 6, which crashed into a tree while carrying British nationals Emma and Jonathan Gray.

Court officials in the Maldives confirmed that the trial has been awaiting a response from relatives of the deceased couple on their preferred punishment for the accused, information one relative has said was passed on by UK police to their Maldivian counterparts a number of months previously.  However, further hearings into the trial have not been held for several months.

Director of the Department of Judicial Administration Ahmed Maajid said the trial had not progressed as court authorities were awaiting the word of the deceased couple’s families on their preferred mode of sentencing for the accused, should he be convicted.

“A Criminal Court media officer tells me that what remains in the case is to obtain the word of the family of one of the victims, as to whether they want a sentence of execution, or blood money or to forgive,” Ahmed said.

“These are the options given to the family of a murder victim in Islamic law, subsequently in our penal laws too.  The court has sent the necessary documents to the concerned parties, but that there has been no response,” he claimed.

A relation of the Grays confirmed that neither victim’s family had received any official notification from the Maldivian courts themselves.  However UK police, through a family liaison officer, confirmed that their Maldivian counterparts were informed “months ago” of the families’ preferred sentence.

“The police have said that they are going to re-submit the issue to the Maldives police today,” claimed the relation. “That’s what is holding up the case right now, [the police] do not seem to have forwarded this information to the courts.”

The relative added that while they did wish to see some form of punitive sentence for the driver if he was convicted, they did not want any severe or long-term action to be taken against the defendant.

“He’s just a young guy. We don’t want to see his life ruined,” the relative said.

Jonathan Grey’s mother Cath Davies told UK-based newspaper the Halifax Courier in March that the prospect of Petre facing the death penalty was “shocking. It’s absolutely horrendous.”

Minivan News was awaiting confirmation from the Maldives Police Service at the time of press as to whether they had so far received the word of the families of the deceased couple and had in turn passed on the information to judicial authorities.

Previous hearings

In previous hearings, the prosecution claimed that the charge of ‘disobedience to order’ Petre stands accused of resulted from his decision to carry people on a vehicle which was not intended for passengers.  The prosecution contended that his criminal action began from the moment he allowed the couple to ride with him on the vehicle.

According to Article 88 of the Penal Code, disobedience to order is a crime and according to Article 88(c), if the result of violating the article is linked to a death, the case shall be dealt accordingly to Islamic Sharia.  The prosecution has previously contended that under Islamic Sharia, if an offender’s action is found to caused the death of a person, the offender shall be punished.

Under the Maldivian constitution, courts resort to Sharia in areas established law does not cover.

Presiding Judge Abdul Baary Yousuf declared in court during earlier hearings that Petre’s lawyer had himself confessed during the trial that his client had driven the quad bike carrying Emma and Jonathan Gray as it crashed on the tourist property.  As a result of this confession, the judge said the state did not have to produce any evidence to prove Petre was the driver of the vehicle during the collision.

Representing the prosecution, State Attorney Aishath Fazna also contended that because Petre had “confessed” to driving the quad bike, she did not believe the state had to produce evidence to support this assumption.

However, Petre’s lawyer Areef Ahmed responded at the time that his client had not directly confessed to driving the quad bike and argued that his client continued to deny the charges against him.  Areef additionally claimed that the judge could not declare a verdict regarding the alleged confession said to have been during the previous hearing.

Areef contended that his confession could be withdrawn before the case reached to a conclusion, but the state attorney argued that after confessing in the trial, there was no way it can be withdrawn.

Petre’s lawyer has also contended that his client could not be charged under Islamic Sharia because his client is non-Muslim.

“Most tragic event”

Following the quad-bike incident in 2011, Filip’s father Lars Petre provided a statement to Minivan News in which he described the accident as “by far the most tragic event in my life, and words cannot describe how saddened we are. I and my family are deeply concerned with errors on some of the media reports and we are also deeply saddened by some accusations made at my son.”

“My son Filip Petre (23 years) was taking the two guests home, to the other side of the island, when he experienced some difficulties with the bike, and crashed headlong into a tree on the road. The crash took two lives and badly injured my son,” he added.

“He fell unconscious with the crash and woke up some time later to find the two deceased also lying on the road. He immediately called for help and worked alongside with the doctor who arrived to try and save the victims of the crash, while he was bleeding himself,” Lars Petre said.

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Local actor among six arrested for possessing illegal drugs

Police have arrested local actor Ibrahim ‘Dhaas’ Giyas along with another man and four women while they were inside a house in Galolhu ward, in possession of illegal drugs and a large amount of cash.

In a statement, police said two men and four women were arrested for being in possession of illegal drugs inside the house. The statement did not reveal the identity of those arrested, but local newspapers confirmed that Giyas was among those taken into custody.

According to police, the group was inside a house called Kamadhoo when police officers searched their room on the ground floor, and discovered six bullet-sized rubber packets containing suspected illegal drugs and MVR 71,470 (US$4640). In a further search, police found 15 more packets containing suspected illegal drugs, empty rubber packets, and US$50.

A forged US$100 dollar note and a 500ml empty water bottle containing suspected alcohol were also discovered inside the room in the first floor of the house, according to the police statement.

Police said the arrested women were aged 21, 23, 31 and 18, while the two men were 31 and 45 years-old.

Local newspaper ‘Haveeru’ reported that the court had previously sentenced Giyas on charges of homosexuality.

Haveeru identified the other man arrested as Mirufath Haneef ‘Hanee’, a well-known local tailor, who was also previously sentenced with Giyas on homosexuality charges.

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Six women and four men arrested with alcohol, police and army uniforms

Police last night raided a house called Peach Melba in Henveiru ward, and arrested six women, four men and a minor, whose gender was not disclosed, after police discovered alcohol and police and army uniforms inside the residence.

According to a statement by police, officers raided the house in response to information reported to police, and arrested people inside the house.

Police officers discovered two bottles containing suspected alcohol, one empty alcohol bottle and glasses that were allegedly used to consume alcohol, police said.

A piece of cellophane containing suspected narcotics was also discovered after  police searched a cigarette packet on the shoe rack inside the room.

Furthermore, police said some police and army uniforms were also found inside, although the residence was not home to anyone employed in the police or Maldives National Defence Force (MNDF).

According to local media, police found police Special Operations (SO) combat uniforms and both MNDF combat and normal uniforms.

Police have not identified the 10 arrested, but said they were aged between 19 and 37 while the minor arrested was 16 years-old, according to police.

The police Drug Enforcement Department (DED) is further investigating the case.

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DRP MP Rozaina leaks invoices exposing extravagant spending of former President Gayoom’s family

Dhivehi Rayyithunge Party (DRP) MP Rozaina Adam leaked invoices and bills through Twitter on Friday, exposing the extravagant expenses of former President Maumoon Abdul Gayoom’s family out of the former presidential palace Theemuge’s budget allocated for helping the poor.

Responding to allegations of corruption against her father by supporters of former President Gayoom’s Progressive Party of Maldives (PPM), which were backed by PPM MP Ahmed Mahloof, MP Rozaina claimed that Mahloof was given SGD$28,000 out of the Theemuge budget for a “nose job”.

After suggesting that the MP for Thulusdhoo was “possessed by jinns,” MP Mahloof replied that he received assistance from the Theemuge budget for “a serious surgery,” adding, “it was not theft.”

Rozaina however went on to post photos of invoices from Theemuge for purchases of jewelry and other items as well as hotel bills from Singapore for Gayoom’s family and associates, challenging the PPM MP to defend the lavish expenses.

According to Rozaina, the invoices were sent to parliament’s Finance Committee this year attached to the Theemuge audit report for 2007 and 2008. Reviewing audit reports of state institutions is part of the powerful public accounts oversight committee’s mandate.

Among the invoices made public by the DRP MP was a US$30,698 bill for tickets to London for former First Lady Nasreena Ibrahim and five others.

MP Rozaina alleged that the tickets were for “a shopping trip to London by Madam Nasreena and friends at the state’s expense.”

Other expenses included SGD$2,254 for the former President’s son’s spectacles and US$4,284 for fabrics bought in India.

An invoice dated March 31, 2008 showed SGD$14,977 spent for trouser material (polyester viscose), which was authorised and signed by former Executive Director of the Presidential Palace Ismail Faiz.

On December 20, 2006, a purple gold diamond pendant for SGD$824 and purple gold diamond bracelet for SGD$1,510 were bought using Nasreena’s credit card.

Yet another invoice showed over SGD$28,000 paid out of the Theemuge account to the Grand Hyatt in Singapore.

“Yumna’s [Abdul Gayoom] hotel bill from the funds allocated to the Theemuge budget to help impoverished citizens,” MP Rozaina explained.

MP Rozaina also uploaded a credit card statement amounting to US$12,456 dated July 31, 2008 of a shopping spree in London.

“Documentary evidence”

Pressed by Twitter users as to why she had not spoken about the Theemuge expenses before, Rozaina tweeted, “I thought auditor general was politicising. He sent all the bills this year.”

“Previously it was just a report,” she added. “Documentary evidence was sent to the Majlis only this year.”

The MP for Thulusdhoo revealed that parliament’s Finance Committee was reviewing the Theemuge audit report.

MP Rozaina’s husband and DRP MP for Raa Atoll Alifushi, Mohamed Nashiz, is the deputy chair of the committee.

Speaking in parliament last week, MP Rozaina alleged that the Maldivian embassy in the UK spent funds out of its budget to hold a birthday party for Gassan Maumoon, youngest son of former President Gayoom.

Replying to former Transport Minister Adhil Saleem on Twitter, who encouraged her to “tell the world” as there was “no going back,” Rozaina tweeted: “I would never even think of going back. These people are criminals. Specially MAG’s [Maumoon Abdul Gayoom’s] good for nothing kids spending ppls [people’s] money.”

In September 2011, former President Gayoom left the DRP to form the PPM following an acrimonious split within the DRP and a public spat with his successor and former vice-presidential candidate, DRP Leader and MP for Baa Atoll Kendhoo Ahmed Thasmeen Ali, brother-in-law of MP Rozaina.

One of the leaked credit card statements

“In accordance with rules and regulations”

Meanwhile, the former President’s attorney, Ibrahim Waheed, released a press statement today countering Rozaina’s allegations. Waheed insisted that all expenditure out of Theemuge was “in accordance with the rules and regulations” and in line with the former presidential palace’s budget approved by parliament.

Waheed added that all records and documentation of expenditure were left at the palace files when the former president left office in November 2008. After President Mohamed Nasheed assumed the presidency, he moved the official presidential residence to Muleeage and relocated the Supreme Court and High Court to the former palace.

The statement from Gayoom’s lawyer went on to dismiss Rozaina’s allegations as “baseless” and “bald-faced lies.”

Waheed suggested that the DRP MPs’ accusations were motivated “out of jealousy” caused by the loss of support for her party and the growing strength of PPM, which was “as evident as the noon-day sun.”

The statement further claimed that the Presidential Commission formed by former President Nasheed to investigate corruption and misappropriation of funds – uncovered in over 30 audit reports – failed to find any wrongdoing by Gayoom.

Responding to the statement on Twitter today, Rozaina argued that although Gayoom was the highest authority in the land under the old “blue constitution,” public funds were “misused” when it was spent on the former President’s family and associates.

Cronyism

In April 2009, former Auditor General Ibrahim Naeem – the country’s first independent auditor general, who was appointed by Gayoom in January 2008 – released a damning audit report (English) of the presidential palace’s finances, revealing that over US$ 3 million earmarked for helping the poor was spent on “the president’s relatives, ministers and their families, senior government officials and some MPs.”

The report stated that 49 percent of the palace’s budget, equivalent to MVR 48.2 million (US$3,750,000 at the time), was diverted from the budget for the poor in 2007 and 52 percent, MVR 44.9 million (US$3,500,000), in 2008.

“We believe this is corruption and misappropriation of public funds,” the former Auditor General stated.

An examination of invoices revealed that funds intended for the poor were instead spent on medical trips to Singapore by “influential senior officials”.

This included their travel expenses, stay in expensive hotels, food, taxi fare, long-term apartment rental and medical check-ups.

More than SGD$ 2.3 million (US$1,500,000) was spent on one of Gayoom’s relatives and his family on trips to Singapore throughout 2007 and SGD$ 1.4 million (US$930,000) for another relative and his family for multiple trips to Singapore.

In March 2008, SGD$23,756 (US$16,000) was spent for a minister’s grandson to stay in a hotel in Singapore for 21 days; in April, SGD$50,022 (US$33,000) was spent on medical expenses for a friend of the president’s; and in July 2008, SGD$6,905 (US$4,600) was spent on two pairs of glasses for a minister and his wife.

US$13,000 in cash was given to the leader of an unnamed political party on different occasions throughout 2008.

The funds, spent by the Maldives Government Trade Centre (MGTC) in Singapore, were to be reimbursed by Theemuge.

Invoices and statements of the expenses revealed that most of the trips were arranged via a note or telephone call from Theemuge rather than through a formal procedure.

The invoices leaked by Rozaina showed that “verbal authorisation” was given by Theemuge senior officials.

“Therefore, as these expenses were made to gain the love, loyalty and support of the recipients, and since these expenses were not made for state purposes or for the benefit of all citizens, we note that these expenses were made unlawfully from the budget for personal benefit and gain,” the audit report stated.

The audit report further revealed that funds were unaccounted for in the construction of the presidential palace, which exceeded its budget by US$1.7 million. The total cost of the project amounted to MVR 207 million (US$17 million).

Moreover, an average of MVR 5,500 (US$430) a day was spent on food for the former President and his family – equivalent to one month’s wages for an employee working at the palace at the time.

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Maldives travel retail in the spotlight after airport sells US$39,000 bottle of whisky

This story was originally published on Minivan News’ spin-off travel review site, Dhonisaurus.com.

Ibrahim Nasir International Airport (INIA) in Male’ has become the second duty free operator in the Asia Pacific region to sell a recently launched US$39,000 (MVR592,000)  bottle of whisky, reflecting what one retailer said is the growing significance of the destination for providers of high-end luxury goods.

Earlier this month, resort chain Anantara announced it would be offering guests a limited edition elephant-harvested coffee – priced at US$1,100 per kilogram – to target high-end gourmet appeal.

While the sale and consumption of alcohol products outside of the country’s airport and resort properties is prohibited under local law, the Maldives National Chamber of Commerce and Industries (MNNCI) said there remained definite potential for local industry and crafts to profit in a market like INIA, despite the MNNCI’s “concerns” over the development.

According to the Moodie Report, an influential travel retail publication, one Chinese passenger travelling through INIA this month purchased the limited edition commemorative Balvenie Fifty whisky just nine days after it had gone on sale at the site. Only 88 bottles are said to have been produced.

“With the Maldives being a top luxury travel destination in the Indian Sub-Continent, we believe that Malé duty free can act as a gateway to the great collection of rare and vintage malts,” distiller William Grant and Sons’ Indian Sub-Continent Brand Development Manager Neeraj Sharma told the trade publication.

GMR, the Indian infrastructure group with a concession agreement to manage and develop the new airport terminal and retail facilities, has taken exclusive rights to certain duty free items to be sold at INIA.

However the GMR contract, which was drafted with assistance from International Finance Corporation (IFC), has come under intense criticism in the country’s political circles, with some key MPs and now government-aligned parties accusing the company of corruption and seeking to “enslave the nation and its economy”.

GMR has denied the charge, contending that it is contracted to operate as a caretaker for the site, which continues to remain Maldivian owned.

However, in the same week when INIA was selling the exclusive whisky to a passenger, local groups supporting a move to “re-nationalise” the airport continued to campaign to sway public opinion against the developer, releasing a large balloon in the capital adorned with the message “go home GMR”.

The government and GMR are presently involved in an arbitration case in Singapore concerning GMR’s levying of an airport development charge.

Authentically Maldivian

MNCCI Vice President Ishmael Asif said aside from selling exclusive duty free goods, local manufacturers of products such as wood carvings and traditional clothing could also benefit from operating in INIA.  However, Asif stressed that local laws needed to be amended accordingly.

“There are no local laws right now protecting authentic Maldives products. The goods being sold as Maldivian often come from other countries and do not reflect our traditions and culture,” he claimed, pointing to the types of products sold in stores on busy retail streets like Chaandhanee Magu in Male’ as an example.

Asif claimed that legislation outlining quality and production standards could greatly boost the profitability and market for local techniques such as wood carvings of fish and dhonis (local boats) as well as smaller items like drums used in bodu beru – a local musical form combining rhythmic drumming and dancing.

According to the MNCCI, factories previously existed during the 1990’s specialising in such local woodworking techniques, which used paints and fabrics derived from local materials and colourings. Asif claimed that these factories were no longer in operation outside of some specialist operations supported by resorts based in Baa Atoll.

“We have been trying to work on a special logo that can be used to identify local Maldivian products, this is something that could be done and used at the airport,” said Asif.

The MNCCI added that in recent years, specialist retail groups had set up operations to try and provide authentic products to the country’s lucrative tourism trade, but had more recently struggled to maintain a property in the capital. The commerce group added that organisations such as the UN were now being sought to provide support to such enterprises to help maintain local cultural practices.

In terms of high-end luxury products, Asif added that traditionally INIA – formerly Male’ international Airport – had been viewed locally as a way to bring tourists to the country, rather than as a means of making money as a retail location.

“We are known [as a destination] for having expensive resorts, and the Maldives has tried to develop the best resorts in the world,” he claimed.  “GMR seem to feel this is only a place for the elite, [while] we need to accommodate everyone.”

GMR said that as part of a redevelopment of the existing airport terminal, new restaurant properties providing fast food and Thai specialities – particularly popular with Maldivians – would be opened to both passengers and local people.

Yet despite the untapped retail potential for Maldivian products at INIA, the MNNCI said it held “concerns” over the airport agreement with GMR, which was signed with the previous government, and complained it had not been consulted about developing local retail potential.

Asif has previously said that the MNNCI held concerns about the impact of the GMR deal on local businesses, alleging that a planning council related to the infrastructure group’s bid had not been open to the public or its members.

He pointed to the case of local enterprises such as MVK Maldives Private Limited, which in December last year was ordered by the Civil Court to vacate the Alpha MVKB Duty Free shop based at INIA after its agreement had expired.

However, speaking to private broadcaster Raaje TV last month, former Economic Development Minister Mahmoud Razee, who worked with the previous government and international partners on the GMR agreement, denied the deal had resulted in local enterprises being kicked out.

“The privatisation policy does not itself kick others out. It is about honouring the contract. No one has actually been kicked out, but private parties have opportunities to participate. The issue that has always existed is getting cheap capital for small scale businesses,” he said at the time.

Razee claimed that the GMR deal reflected a commitment by the former government to pursue privatisation as outlined in the Maldivian Democratic Party’s (MDP’s) manifesto.

“Firstly, if or when anything is run like a business, private people are more skilled and efficient. They are far more competent and they work for profit unlike the government,” he claimed.  “This means it requires less cost for the government, but needs more outside investment or capital. Private people are more skilled and efficient in terms of managing. The end product thus is more beneficial.”

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Teachers routinely bullied by pupils with no support from schools, say staff

Education in the Maldives is being held back by a lack of institutional support and too much student power, report teachers currently working within the system.

Anecdotal evidence from teachers working in the Male’ area suggests poor support from senior staff and insufficient pay, leading many teachers to consider leaving the profession.

Following last week’s annual Teachers Awards ceremony, President Dr Mohamed Waheed Hassan told local media that allowances and privileges for teachers would be reviewed in order to improve educational standards.

“The basic action to take, in order to improve the level of education, is to improve the standard of teachers. And increase the assistance provided to teachers. In order to encourage teachers, I will revise and work towards improving the allowances given to them,” Waheed told Sun Online.

In response to this, one teacher told Minivan News: “It’s about time they got reviewed. Teachers are badly paid and badly treated. Many teachers I know are leaving or looking to leave the profession.”

Former Education Minister under the previous government Shifa Mohamed explained that efforts had been made in the past to raise the standard of teachers by introducing a licensing system for better qualified teachers which would have become mandatory over time.

“We tried to establish a system with licensing for better qualified teachers,” said Shifa, arguing that teachers were motivated not just by wages, but the opportunity to develop.

Teachers – some of whom have experience working abroad – reported particular problems with a results orientated system, producing pupils without the appropriate life skills.

“Students have far too much power. If they don’t like the marks they have been given in an exam, they bully teachers into changing the marks,” one teacher said. “Teachers are marking up all students so that they appease them and the parents.

“The students are spoon-fed and don’t learn any of the life skills they’ll need, for example basic revision skills, how to read an article and summarise it, or how to take the key points from it,” the teacher told Minivan News.

The teachers also described problems caused by teachers being forced to supplement their income with additional tuition, often teaching children from within their own school – prompting a conflict of interests.

“It is known that a lot of the teachers only teach half the syllabus in class, forcing students to take on extra tuition,” commented one teacher.

“However, this is an error on both the government/schools side and the teacher’s side. The teachers aren’t getting paid enough so they have to supplement their salary with tuition,” the teacher explained.

Shilfa said the tuition issue was a long-term problem which had concerned the ministry for some time.

“It is a norm because it is a system based on marks, and we were trying to change that – there is pressure from parents [on teachers] to give good marks,” she said.

While one teacher explained that schools still offered opportunities for further training to staff via the Continuing Professional Development (CPD) scheme, at the time of press Minivan News was unable to obtain comment from the government on current policy.

Four different education officials, including senior appointments, failed to respond or referred Minivan News to other officials, who likewise failed to respond. One education official demanded Minivan News submit a request for comment in writing.

Wider impact

After last week’s award ceremony at Dharubaaruge, President Waheed said the implementation of a new curriculum as well as further training for teachers was needed to improve the education system.

Waheed also pointed to a gap in the system affecting school leavers.

“One of the biggest problems for youth today is that they have to stop studying when they reach Grade 10. They finish school at the age of 16,” said the President.

“My hope is that the education system is changed, such that every child gets to go to school until they are 18, and that they become productive and useful individuals,” he added.

This particular issue was highlighted by a recent report into gang culture in the country, produced by the Asia Foundation.

The report linked this so called ‘lost age group’ to unemployment and subsequent involvement in gang activities as a source of income.

State Minister of Education Imad Solih told the media last month that the country’s education system had failed, with detrimental repercussions for society as a whole.

He stated that, with the government’s annual investment of MVR 2.4 billion (US$156 million) on education, the outcome was unacceptable.

An Organisation for Economic Cooperation and Development (OECD)  report released last December ranked the Maldives as number one in the Asia Pacific region on education spending as a percentage of GDP.

According to the report, Maldives spends the highest proportion of GDP on public education (8.1 percent) across the Asia/Pacific region, four times higher than countries such as Cambodia and Myanmar.

Despite the expenditure, Solih argued that the countrywide results of O’level and A’level examinations did not reflect the financial input to the education system, and that changes had to be brought to the sector including new plans and targets.

Solih also stated that the failure of the education system should not only remain a concern of the education sector alone, but political leaders, parliamentarians and the general public should also share the concerns.

“I urge everyone to set aside our political differences and to take a minute to think about the current education system,” he said.

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Auditor General accuses senior officials of negligence in embezzlement of MVR 24 million from DMC

The Auditor General’s Office has accused senior government officials of negligence in the alleged embezzlement of MVR 24 million (US$1.6 million) through the Disaster Management Center (DMC) in 2009 and 2010.

In a presentation to parliament’s Finance Committee on Wednesday, Director General Ibrahim Aimon reportedly revealed that the Auditor General’s Office suspected former State Minister Abdulla Shahid, who was in charge of the DMC at the time, along with DMC Director General Mohamed Shahid and Deputy Director General Moosa Ali Kaleyfan as well as former State Minister for Finance Ahmed Assad and Finance Controller Ahmed Mohamed, were culpable in the scam or guilty of gross negligence.

Auditor General Niyaz Ibrahim told members of the Finance Committee that the negligence of the DMC and Finance Ministry in the embezzlement of funds was “very serious.”

Minivan News is seeking comment from the accused senior officials.

ABCs

On October 11, the Auditor General’s Office made public a special audit report (Dhivehi) of an investigation into misappropriation of MVR 24 million from the DMC, uncovered in the centre’s 2010 audit.

In the 2010 audit of the DMC, auditors discovered that payments were made for “hundreds of invoices from 2005”. As the DMC refused to comply with a request for all documentation relating to the transactions, the report noted that the files were eventually obtained from the Finance Ministry.

In 2005, the report explained, the DMC bought construction material for tsunami-related reconstruction from local businesses with “credit purchase order forms.”

The Finance Ministry paid the bills for credit purchases from the “tsunami recovery fund (TFR).”

A company named Allocate Business Company (ABC) was issued “a large number of purchase orders in 2005,” the report found, noting that the company was about a year-old and was not an importer or seller of construction material.

“Therefore invoices for all the purchase order forms released to ABC were submitted under the names of ‘Apollo Hardware Store’ and ‘Apollo Holdings Pvt Ltd,” the report stated, adding that the payments were made to Apollo in 2005 for the ABC purchase order forms.

The invoices submitted by Apollo Hardware and Apollo Holdings included references to the purchase order forms released to ABC, the report noted.

“Therefore it is believed that these two companies are strongly linked,” the report stated.

The scam

Meanwhile, in 2009 and 2010, ABC submitted over 700 new invoices to seek payments from the state with photocopies of the original purchase orders taken from the Apollo invoices.

The audit found that MVR 24,008,503.75 was paid out for 571 of the invoices.

The Finance Ministry prepared payment vouchers for the DMC and made the payments in four cheques between August 2009 and April 2010.

The fourth and final payment of MVR 13 million (US$843,060) was issued on April 27, 2010 for 193 fraudulent invoices.

While over 700 invoices were sent over by the DMC, the report noted that the Finance Ministry rejected 140 invoices worth over MVR 10 million (US$648,508) after the public accounting system showed that payments had already been made.

“Therefore, this showed that ABC attempted to obtain funds using invoices for which payments had been made [to the company],” the report noted.

“From one perspective, ABC was offered the opportunity to embezzle funds so openly because the company knew of the faulty arrangement between the Disaster Management Centre and and Ministry of Finance for issuing funds and took advantage of it. Or [it is because] the scam was carried out with the collaboration of senior officials of the Disaster Management Centre and Ministry of Finance and Treasury.”

Negligence or involvement of senior officials

The report added that the issuing of funds for forged invoices accepted by the public accounting system “raises serious questions regarding the integrity and capability of those entrusted with spending public funds.”

Moreover, the case demonstrated “extreme irresponsibility” on the part of the public officials, the report stated.

Among the reasons listed for suspecting either involvement or gross negligence of senior government officials, the report noted that as a rule public funds were released only for original documents, whereas the invoices in the DMC case contained photocopies of purchase order forms.

The Auditor General’s Office therefore believed that “this was done deliberately and with a plan rather than out of ignorance or because of mistakes.”

The report also noted that it was highly unlikely that either the state would have held payments owed to a private company without any reason or that the company would have waited four or five years to demand payment with no record of complaint or a court case.

The audit further discovered that officials from the DMC met with the state minister for finance regarding the payments to ABC, “however neither minutes nor any documentation of the discussion was maintained for any of these meetings.”

Moreover, the audit found that the Finance Ministry had rejected some invoices forwarded by the DMC that lacked purchase order forms. However, the audit investigation found that a Director General at the DMC instructed an employee to photocopy purchase order forms and attach the bill to the invoices, which were then sent again to the Finance Ministry.

In conclusion, the Auditor General recommended further investigations by the Anti-Corruption Commission (ACC) and Maldives Police Service (MPS) for prosecuting the directors of ABC Pvt Ltd as well as the culpable government officials.

According to local media reports, police have since arrested two individuals in connection with the ongoing investigation into the DMC scam. Police have however not revealed the identity of the suspects in custody.

At a press briefing on Thursday, parliament’s Finance Committee Chair MP Ahmed Nazim said that the committee has decided to summon Prosecutor General Ahmed Muiz and members of the ACC along with Finance Minister Abdulla Jihad and Finance Controller Ahmed Mohamed next week to discuss measures to prevent corruption and misappropriation of public funds.

Finance Controller Ahmed Mohamed is among the officials named by the Auditor General’s Office at the Finance Committee meeting last week.

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