Category: Society & Culture

Thanburudhoo resort will kill surf tourism in Male’ Atoll, claim local surfers

The proposal to develop Thanburudhoo near Male’ as a boutique surf resort will halve the number of breaks open to local surfers and particularly impact safari operators due to the limited access, a group of local surfers have claimed.

According to the July 2011 proposal, submitted by senior Maldives National Defence Force (MNDF) figures and Telos Investment, Telos would receive a 50 year lease on the military training island to develop a “boutique surf resort”, in exchange for US$5 million to develop an MNDF training facility on nearby Girifishi.

According to the proposal, the 3.6 hectare island “does not have the normal beauty found in Maldivian resorts”, as it does not have natural lagoon or sandy beaches. Furthermore, the strong currents limit recreational swimming, and therefore “the only development for Thanburudhoo which is sensible is that of a boutique surf resort.”

The surf resort would “open its doors to Maldivian surfers for a special surfing session twice per month,” the 2011 proposal notes.

“Unlike other resorts which do not allow local Maldivians to surf, Thanburudhoo would make available two surfing sessions per month, most likely Friday mornings or Saturday afternoons.

“The Maldivian surfers coming to Thanburudhoo for the special local surfing session must be in good standing with the Maldivian Surf Association and must abide by all the rules and regulations of Thanburudhoo surfing activities. Generally understood, the local surfers will not be on the resort island per se, but in the water surfing.”

Local surfers have slammed the idea. In a document circulated on social media, ‘Surfers’ Report on Thanburudhoo’, they argue that the island has two of the atoll’s four accessible waves (Sultans and Honkeys).

“If Thamburudhoo is a resort the only two accessible waves in the atoll are in Himmafushi (Jails) and Thulusdhoo (Cokes) – the number of accessible waves in the atoll is halved from four to two,” the document states.

Most of the waves in the atoll are claimed by their respective resorts, including Tombstones (Full Moon resort), Ninjas (Club Med Kani), Lhohis (Hudhuranfushi) and Chickens (Kuda Villingili).

The development of Thamburudhoo would lead to overcrowding of the remaining two waves, which “already have four surf camps each”, the surfers argue.

“There are 8-10 or more safari boats in this atoll during peak surf season. Each safari boat will have between 8 -12 surfers. Surfers from tourist resorts’ surf transfer boats can number between 10 – 30 or more from each resort. There are surf transfer boats operating from Dhonveli, Hudhuranfushi, Club Faru, Club Kani, Four Seasons, Paradise and Bandos expected each day,” the document claims.

“Surf tourism is putting food on the table for a lot of families and overcrowding of these waves could be disastrous to these surf camps. It is not right for the safari boats either since the number of surfable waves in the atoll just halved from four to two – they will lose clients or maybe even their businesses.

Furthermore, “Surf tourism is growing fast in the country and there are a number of locals who depend on these clients for their paycheck, such as; the surf guide, the captain and crew who work on the boats, and the people in the offices that operate these safaris. Some of these safari operations are not strong enough to run trips to the outer atolls. Besides the waves in most other atolls are not as consistent as the ones in North Male Atoll.”

As a result of the development, “surf tourism in this atoll will not be sustainable.”

Currently, Thanburudhoo was the only island in the atoll “that is freely accessible to both locals and foreigners. It is an uninhabited island and doesn’t have any local surfer population. Hence, no one can claim more ‘rights’ to those waves,” the surfers said.

“Maldivians have been surfing for centuries. Long before any white man showed up on these shores, or before anyone ever thought of making fiberglass surfboards, or before tourism was even a word. Blocking access to our waves is against sustaining a part of our culture. We believe that all the waves in this country should be free for all local waveriders to surf. These are our playgrounds.”

Minivan News sought comment from President of Telos Investment, Dr Gunnar Lee-Miller, however he had not responded at time of press.

Lee-Miller has previously stated that a “robust development plan” was being put in place for local surfers, and that discussions were under way with the Maldives Surfing Association over the issue.

The proposal stalled under the Nasheed government, according to former Economic Development Minister Mahmoud Razee, “partly due to timing”, but also concern over providing access to the surfing areas around the island.

However the development has now proceeded under the new administration, after the MNDF formed a joint venture company with the government last week.

In its original proposal, the MNDF argued that the development would allow needed infrastructure development on Girifushi.

“Since it began operations 22 years ago, Girifushi has never benefited from crucial infrastructure improvements. Without a proper harbour, and with outdated mechanical systems and insufficient support structures, Girifushi cannot sustain the operations and personnel it must so as to continue to be a productive base for the MNDF,” the proposal stated.

“Girifushi must undergo vital infrastructure improvements and thus, along with the construction of a leadership centre, this proposal seeks to acquire funding for the two most important infrastructure upgrades for Girifushi – a proper harbour area and increased area through land reclamation.”

The US$5 million obtained from Telos in exchange for the lease of Thanburudhoo would be “stretched” by deploying MNDF personnel to help build the leadership centre, the proposal notes.

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Maldives celebrates Eid ul-fitr

Dr Mohamed Iyaz Abdul Latheef conducted prayers before a huge congregation in Male’ this morning, as thousands of Maldivians joined fellow Muslims across the globe in celebrating Eid ul-fitr (the festivity of breaking the fast).

Up to 50,000 people were reported to have attended the ceremony in the stadium area on Ameenee Magu at 7:00am.

The area, more commonly used for games of football, was prepared to accommodate male worshippers, whilst provisions were made for female worshippers in the adjoining track area.

During the 20 minute sermon, the Imam advised young people to be steadfast in their prayers and to avoid the intellectual war with which they are faced, reported local media.

Ameenee Magu was closed to traffic as tables were arranged, laden with food for the early-morning worshippers, celebrating the end of Ramazan and its month of daytime fasting.

President Dr Mohamed Waheed Hassan’s released a statement yesterday calling for unity and brotherhood over the holiday period, which runs for the three days following the end of Ramazan.

Waheed stressed the importance of strengthening family relations over the Eid period as well as placing national interests above personal ones.

The President, after attending this morning’s prayers, made his way to the official residence of the President, Muleeaage where he received members of the public after 9:30AM.

Along with the First Lady Madam Ilham Hussein, Waheed was visited by state ministers, members of parliament, state dignitaries and foreign diplomats.

Zakat – the giving of alms –  one of the five pillars of Islam, occurred before the Eid prayers.

Local media reported that 80,408 people paid Zakat in the Maldives this year, amounting to  MVR2.4 million (US$155,642) for distribution to the needy.

The ministry noted that a large number of people were paying Zakat through means other than the government.

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State failing to prove ‘Usfasgandu’ lease terms violated: Mayor ‘Maizan’ Ali Manik

Male’ City Council (MCC) Mayor ‘Maizan’ Ali  Manik has maintained the state has failed to provide clear examples of any laws or regulations violated in the leasing of the ‘Usfasgandu’ protest area to the Maldivian Democratic Party (MDP).

Manik told Minivan News that the state’s allegations, presently the basis for a Civil Court case against the MDP-majority MCC, were politically motivated and had failed to take into account the site was being used by the wider public regardless of politics.

“We have not broken any rules or regulations on this matter,” he said. “Even if somebody takes this area away, people will instead take to the streets to have their voice heard.”

The mayor’s comments were made following the latest hearing on Tuesday (August 14) of a Civil-Court cased filed by the state against the MCC to hand over the ‘Usfasgandu’ area.  The case concerns allegations that the municipal authority had acted illegally in leasing the protest site.

Local media reported that the state had responded in the Civil Court by claiming the city council was in violation of both articles five and six of the agreement to lease the land – charges documents submitted along with the case were said to prove.

The state also alleged that the MMC was deliberately attempting to delay the ongoing case by claiming the charges “were not clear”, according to newspaper Haveeru.

Addressing the case, Mayor Manik claimed that no specifics had been given by the state as to where the council had violated its agreement in providing the land.

The case was reportedly adjourned Tuesday in order to provide the state time to respond to the MCC’s allegations. Manik claimed that a date for the next hearing of the case had not yet been set.

Minister of Housing Dr Mohamed Muiz was not responding to inquiries from Minivan News today regarding the case.  President’s Office Spokesperson Abbas Adil Riza and Media Secretary Masood Imad were also not responding to calls at the time of press.

Legal wrangling

The case is the latest development in ongoing legal wrangling between the MCC and the Ministry of Housing over the Usfasgandfu site.

Earlier this month, the Civil Court ruled that the Maldives Police Service does not have legal authority to order the MDP to vacate its ‘Usfasgandu’ protest camp on May 29.

The court noted the same day that the a wider dispute between the MCC and Housing ministry over guardianship of the Usfasgandu area could only be settled once the Civil Court reached a verdict on the case being heard this week, which was filed by the ministry requesting the MCC be ordered to hand over the plot.

On May 29, police raided Usfasgandu with a search warrant from the Criminal Court and ordered the MDP to vacate the area before 10pm, after which the Maldives National Defence Force (MNDF) began dismantling the protest camp.

The Civil Court however issued an injunction ordering the security forces to halt the dismantling after the MDP challenged the legality of the operation. The injunction was to stand until the court reached a verdict and was later upheld by the High Court.

Police had obtained a warrant to search Usfasgandu on the grounds that the MDP was using the area as a hub for criminal activity and black magic.

MDP lawyers however argued at court that the warrant did not provide a legal basis to dismantle the demonstration area.

Following the dismantling of the MDP’s protest camp at the tsunami memorial area on March 19, the Male’ City Council (MCC) leased the Usfasgandu area to the former ruling party for three months, prompting repeated attempts by the government to reclaim the area.

The MCC – which has nine MDP councillors and two government-aligned Dhivehi Rayyithunge Party (DRP) councillors – however refused to hand over the area to the Housing Ministry despite a cabinet decision authorising the Housing Ministry to reclaim the plot.

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Government’s proposed revenue raising measures excessive, warn resort managers

Several resort managers have voiced concern that revenue raising measures proposed by the Finance Ministry will affect the financial viability of the tourism industry while providing little improvement in service or support in return.

The proposed measures were part of an ‘austerity’ package sent to parliament’s Finance Committee last week in a bid to address the country’s crippled financial condition.

Increased government spending – such as the repayment of civil service salaries cut during the former administration, and promotions and lump sum payments to the police and military – has not been offset by additional income.

As a result, the government has sought a succession of loans this year to pay its expenses at a time it is facing political challenges to its legitimacy, and country is facing plummeting investor confidence, a drop-off in foreign aid, an ongoing foreign currency crisis, and the challenges of its 2011 graduation to the UN’s definition of ‘middle income’.

As well as a raft of austerity measures, including the cancellation of electricity subsidies for citizens in Male’ and “reform” of the universal healthcare scheme, proposed revenue raising measures include plans to:

  • Raise import duty on oil to 3 percent
  • Impose import duty on items whose value exceeds MVR6.4 million
  • Raise import duties for liquor
  • Introduce GST for telecom services and sale of flats (both are now GST-exempt)
  • Raise GST rate for luxury items
  • Raise T-GST to 15 percent
  • Raise airport service charge for foreigners to $30
  • Increase visa fee for foreigners by MVR150

Minivan News spoke to several resort managers about the potential impact of such measures on the tourism industry. Of particular concern was the proposed increase in Tourism GST from 6 percent to 15 percent.

“That would be the biggest hit along with the liquor duty,” observed one manager.

“With the standard 10 percent service charge we’d be talking 25 percent on top. That’s too much,” he said.

Furthermore, a sudden increase in T-GST would force resorts to absorb the increase, due to contractual obligations.

“If such an announcement came after [the] contracts are signed, many operators would be forced to absorb the additional percent again,” the manager observed.

“Higher duty on liquor would be the most directly felt increase in guests’ daily extras. Our sales would take a hit,” he added.

An increase in already high oil prices due to government import duty would further increase prices.

“Oil has become more and more expensive since oil was first used. Another rise in prices would be just another rise, which, in the case of oil, would come anyway. Of course extra costs will eventually be passed on also from suppliers and will at one point always end up on the client’s bill. How much more of such a hike our clients will take, I couldn’t say. Already now the low- and mid-priced market segments are moaning,” he said.

The increase in airport charges to US$30 for foreigners would also increase the overall cost of the destination for potential visitors.

“Many other places charge one as well and I guess it has come to be accepted. If this is then garnished with higher visa fees, taxes of 25 percent, an eco-tax, bed-tax and the whole lot, it might quickly get too much though,” the manager warned.

Another resort manager told Minivan News that given the country’s almost total reliance on tourism, the government “needs to see itself as a tourism body as much as a government of a nation.”

“Tourism bodies in a general have five key responsibilities in order to increase the economic benefit of tourism for a nation,” he said: “Attract guests to the destination, have them stay as long as possible, have them invest back as much as possible into the local economy, have them recommend the destination to their friends and/or return themselves, and encourage balanced tourism development.”

The Finance Ministry’s proposed revenue raising measures “have negative implications for all five points of any basic tourism body plan,” he observed.

“As seen in the past 2-3 years, most countries have based their austerity strategies on reduced government expenditure and encouraging increases in revenue growth. This has been completed by efficiency plans for civil servants and key strategies to increase revenue,” the manager noted.

“In its actions over the last five months, the Maldives’ government has increased civil servants’ salaries, increased other costs, and are now looking at taking action that will compromise their main revenue stream. This is very different to other countries with similar financial challenges,” he stated.

“Whilst I understand that there is a need for a major revision on the Maldives economy, I would hope that cost reduction measures are implemented within the government that will balance the need for increased taxes on Maldives’ tourists. Areas of increased taxation such as oil and customs duty would be more acceptable psychologically for the tourism economy rather than an increase in direct tourists taxes and charges,” the manager added.

According to a survey conducted by the Tourism Ministry in 2011, 46 percent of tourists to the Maldives believed that the accommodation was too expensive.

Soft drinks, alcohol were also rated expensive by 42 percent, while food, water and souvenirs received a similar ranking from 41 percent of tourists polled.

Tourism Minister Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal were not responding at time of press.

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High Court orders reinstatement of Police Chief Inspector Risheef Thoha

The High Court has overruled a decision made by the Civil Court regarding a suit filed against Police Chief Inspector Risheef Thoha, after he was dismissed by the Police Disciplinary Board over allegations that he raped a woman in a police car.

The court ordered that Chief Inspector Thoha be reinstated.

In August last year, a woman filed a case at police headquarters alleging she was sexually abused by a group of police officers, including the chief inspector.

In December 2010 Thoha appealed the decision of the Disciplinary Board at the Civil Court, which ruled that the Board’s decision was lawful and that there was enough evidence to dismiss Thoha from police duty.

The Civil Court noted at the time that Thoha’s call records showed he had contacted the other accused officers several times, and that the officers had also contacted him.

When the locations of the phones were determined, they showed that the car had travelled the routes the woman had said, the Civil Court’s ruling stated.

The ruling also said that the girl was thrown out of the car naked near Thoha ‘s house, Mainz in Maafannu, and that Thoha had admitted to being in the area a few minutes later.

However the High Court today ruled that Thoha be reinstated at the position of Chief Inspector of Police, and paid the salary he had not received during the time he was dismissed.

In August 2011 a close friend of the alleged victim told Minivan News the incident had occurred near Seahouse restaurant in Henveiru.

“She would not be older than 22 years, she was friends with the police inspector,’’ the source said. “According to what she told me, she was partying with a group of four police officers, including a senior inspector, and they were all drunk.’’

He alleged that the incident occurred inside a police car.

“She said they threw her onto the street after sexually abusing her,’’ the source added.

Former ‘Mr Maldives’ Police Constable Husham Hameed was also dismissed after being accused of the same crime, but in April last year the Civil Court ruled that his position also be reinstated.

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Gayoom’s half-brother acquitted of three-year old corruption charges

The Criminal Court on Thursday morning acquitted Abdulla Algeen Abdul Gayoom, half-brother of former President Maumoon Abdul Gayoom, of corruption charges more than three years after the trial began.

Algeen, younger brother of MP Abdulla Yameen, was accused of embezzling US$177,460 of Japanese funding from the Department of Meteorology (DOM), where he was the Director.

Algeen allegedly sent three separate invoices to the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) between May 2006 and April 2007 on behalf of DOM.

All three invoices demanded payment to Algeen’s personal Bank of Maldives account.

In the verdict (Dhivehi) acquitting Algeen today, Judge Abdulla Didi ruled that the state could not prove that the money in question was owed by JAMSTEC to the government.

History

The first hearing of the corruption case was held on June 9, 2009 with Chief Judge Abdulla Mohamed presiding. The second hearing took place over a year later on July 1, 2010.

Newspaper Haveeru reported on March 4 this year that the case was further delayed after the presiding judge was changed for a third time.

After the case changed hands from Judge Abdulla Mohamed to Judge Zubair Mohamed, it ended up with Judge Abdulla Didi, who held his first hearing of the case on March 4.

The local daily reported the judge as saying that although the trial had been completed and witnesses heard, he wished to hear the case again as there were certain points to clear up.

Prior to Judge Didi restarting the case, the last hearing was held on October 19, 2011 where the trial was concluded with closing statements.

Concluding the new hearings on April 11, 2012, Judge Didi had said he would issue a verdict in two weeks.

The case against Algeen

In August 2007, Minivan News reported leaked documents showing JAMSTEC was funding a two year DOM research project into the oceanography and meteorology of the Indian Ocean.

In a Memorandum of Understanding signed in early May 2006, JAMSTEC agreed to meet “all expenses incurred in connection” with the project.

Later that month an agreement was signed requiring JAMSTEC to transfer $92,000 dollars to the DOM. In April 2007, the agreement was renewed for a year, with a payment of $70,000 required.

Both the 2006 and 2007 agreements require JAMSTEC to transfer money to a “bank account… designated by DOM.”

Algeen was the sole signatory on behalf of DOM for both agreements.

He issued the $92,000 dollar invoice on May 22, three days after signing the 2006 agreement, and the $70,000 dollar invoice on April 8, 2007, the same day he signed the 2007 agreement. A third invoice for a balance amount of $13,248.34 was issued on 22 December, 2006.

All three invoices were issued on DOM letterheads and the two most recent had Government of Maldives stamps. The bank account quoted was Algeen’s personal one.

“Wiping the slate clean”

Following the controversial transfer of power on February 7, the Criminal Court dismissed corruption charges against Deputy Speaker of Parliament Ahmed Nazim and Eydhafushi MP Ahmed ‘Redwave’ Saleem.

On February 20, the Criminal Court ruled that Nazim could not be prosecuted on charges of defrauding the now-defunct Ministry of Atolls Development, in the purchase of 220 harbour lights worth MVR1.95 million (US$126,000) in 2004.

Nazim, leader of the People Alliance (PA), along with MP Ahmed ‘Redwave’ Saleem (then-finance director at the ministry) and Abdullah Hameed, former Atolls Minister and half brother of Gayoom were charged in late 2009 on multiple counts of conspiracy to defraud the Atolls Ministry.

Eight days after Nazim’s case was dismissed, the Criminal Court acquitted MP Saleem – now a member of former President Gayoom’s Progressive Party of Maldives (PPM) – of involvement in the scam.

Following the verdict, the formerly ruling Maldivian Democratic Party (MDP) accused President Mohamed Waheed Hassan Manik of being controlled by supporters of former President Gayoom, who were “intent on purging the People’s Majlis of MDP MPs and MDP-leaning MPs in order to secure a controlling majority.”

“Recent days have seen cases against three MDP-supporting MPs fast-tracked in order to disqualify them from parliament while serious corruption charges have been dropped for opposition leaning MPs,” the party said in a statement, noting that MP Saleem’s case had been “unreasonably delayed in the court process since 2009.”

On February 20, the Supreme Court in a 4-3 ruling disqualified MDP MP for Thimarafushi constituency, Mohamed Musthafa over a decreed debt and stripped him of his seat.

“While in government, MDP consistently maintained that key parts of the judiciary are in the hands of the supporters of former President Gayoom. Now we are seeing the truth of that claim. Dr Waheed regime is using the courts to settle old scores, to reduce MDP’s parliamentary majority and to wipe the slate clean for government supporters,” MDP spokesperson Hamid Abdul Ghafoor said at the time.

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Surfing association attacks MNDF resort proposal over fears for local access: “Like England selling off Wembley Stadium”

The Maldives Surfing Association (MSA) has hit out at a proposed resort development on a Maldives National Defense Force (MNDF) training island, claiming it will substantially reduce local access to an already limited number of high-profile waves in the country.

Ahmed Rifaee, a member of the MSA’s Steering Committee, claimed that while Maldivians were largely unaware of the significance of the waters around the island of Thanburudhoo to the country’s sporting heritage, the proposed resort development threatened to leave local people with access to just two world-class surf points.

Rifaee said that tourism laws presently prohibit non-guests from using prominent surf points based at the country’s resorts – legislation that threatens the future development of a sport he noted had gained the Maldives its greatest athletic successes and recognition internationally.

The resort proposal, first discussed under the previous government as part of plans to fund a state-of-the-art military training complex, was forwarded to the Anti-Corruption Commission (ACC) this week to determine the legality of an island set aside for the military being leased for commercial purposes.

However, the private group linked to the development, Telos Investment, told Minivan News that a “robust development plan” was being put in place for local surfers, adding that discussions were already under way with surf authorities – including the MSA – over the issue.

Earlier this week, the MNDF confirmed to Minivan News that it would be leasing Thanburudhoo to a third-party that would develop the site as a surf resort. The island is currently used by officers for training and recreational purposes.

The country’s military authorities this month registered the MNDF Welfare Company in a bid to generate income to fund welfare services for the armed forces by investing in various businesses, including the tourism sector.

With an ACC investigation set to be tabled in the coming days, the development proposal was slammed by Rifaee, who claimed that the waters around the island were a unique experience for local and international surfers alike. He added that the waters housed two world class waves that had been used for generations to allow local surfers to hone their skills – no matter their levels of experience.

“We have been surfing these waves for a long time, they are one of the best training grounds for local surfers,” Rifaee said. “Outside the local community, it is little known by the wider Maldivian people about what a loss this would be to the country. I would say it was equivalent in England to selling off Wembley stadium to a foreign company.”

Former government proposal

In a proposal said to have been discussed last year between the government of former President Mohamed Nasheed, then senior MNDF figures, and Telos Investment, Thanburudhoo was to be leased for an initial 50 year period for development as a “boutique surf resort” to secure US$5 million in funding for an MNDF training facility.

The resort development plan was initially submitted by Telos Investment President Dr Gunnar Lee-Miller, who is said in the proposal to have experience “serving the Ministry of Human Resource, Youth & Sport, the Maldivian Olympic Committee, and several associations in a sports development capacity.”

MNDF spokesperson Lieutenant Abdulla Ali said this week that the concept of development of its training island as a tourist resort was approved by the former government in 2010, but that work had stalled “for various reasons”.

“However, we have started that process again, and the discussions are continuing,” Lieutenant Ali said.

No agreement at the time was reached on the proposals, which included a clause to allow local Maldivians “in good standing” with the MSA to have access to the waves around the resort twice a month, on every other Friday and Saturday.

While accepting that even limited access to local surf points was a less restrictive policy compared to other resorts in the country, Rifaee said even allowing access twice a month would be a major setback for national surfing.

“By allowing us to surf only on Saturday or Friday morning , when the waves are not always going to be there, this might not be too helpful,” he said. “It’s not just local surf spots that would be affected by such a proposal either. I’ve been told that there are one or two top dive spots in the waters. However, any resort development would need reclaimed land and a harbour, which will endanger these spots.”

Rifaee contended that while the MSA had yet to take a formal stance to oppose the resort development, discussions were ongoing over how to proceed.

“We are going to protest this if we have to. It’s part of our culture and has been for many years. Even my grandfather used to surf.”

Responding to the claims, Telos Investment told Minivan News that it would be issuing a statement soon regarding the project and the potential impacts on national surf development.

“To be sure, there is a robust surf development plan for local surfers and fruitful discussions with Maldivian Surf Association Leaders have already commenced,” Dr Lee-Miller responded by SMS at time of press. “We care greatly about the development of Maldivian surfers both in Male’ and the outer atolls.”

Minivan News was awaiting a full statement from Telos Investment at time of press.

Minister of Tourism, Arts and Culture Ahmed Adheeb was not responding.

Proposal

In a proposal submitted in July 2011 by Telos Investment and senior Ministry of Defence figures, Telos Investment would pay US$5 million dollars for a 50 year master lease for Thanburudhoo to develop a surf property for tourists. The money would be used to fund the development of a ‘Leadership and Management Centre for Excellence’ at the MNDF’s Girifushi facility.

The proposal stated that Thanburudhoo had originally been given to the MNDF to carry out combat training exercises – a purpose that it could no longer maintain due to the number of surrounding resorts.

“So rather than letting an under-utilised island continue, MNDF believes that Thanburudhoo can be utilised to give a new lease and life and strong future to Girifushi and the emerging leadership of MNDF and the country,” the proposal stated.

The proposal was not an attempt by the MNDF to enter the tourism market, collect a yearly lease from an island, or form a joint venture with a foreign investor.

Former Economic Development Minister Mahmoud Razee, who was acknowledged in the same proposal as having provided “constructive counsel” to Telos Invesment and senior MNDF officials, confirmed to Minivan News that discussions over the proposal had taken place. However no agreement was reached with the Nasheed government, Razee said.

Razee claimed the decision to not move ahead with the proposal was “partly due to timing”, but also concern over providing access to the surfing areas around the island for “young people”.

The government of the time had checked the offer in line with its wider Corporate Social Responsibility (CSR) programme and found it comparable to other privatisation projects, Razee said.

“However, what we didn’t do was make the project a joint venture with the MNDF,” Razee added.

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Illegal, wasteful expenditure flagged in Home Ministry’s audit report

Several instances of illegal and wasteful expenditure were flagged in the audit report of the Ministry of Home Affairs for 2010, made public on Tuesday, including MVR 800,000 (US$51,880) paid to two political appointees who did not attend the ministry.

The audit discovered that two state ministers were paid salaries and benefits from January to December 2010 while one was working at the Presidential Commission and the other at the Maldives Customs Service.

“Although the two posts were created for the Ministry of Home Affairs, as the ministry did not receive any service from the two appointees, this office believes that the President’s Office’s creation of the two posts cannot be considered for the need of the ministry,” the report (Dhivehi) stated, contending that the appointments were in violation of budgetary rules and procedures.

The two political appointees referred to in the report were Sheikh Hussein Rasheed Ahmed, a member of the Presidential Commission and former head of the Adhaalath Party, and Mohamed Aswan, former principal collector of customs.

Among other cases ostensibly in violation of the Public Finance Act and regulations under the law, the Auditor General’s Office noted that none of the construction projects for island and atoll offices as well as regional fire service buildings begun in 2008 were completed on schedule.

According to a status report on the projects prepared in June 2010, while none of the 14 projects were completed on time, the ministry did not seek over MVR6.5 million (US$421,540) in damages for the delays as stipulated in the contracts for 13 of the projects.

The report also found that the Home Ministry failed to include a clause for damages for delays as required by financial regulations in contracts worth MVR1.1 million (US$71,335) and MVR68,500 (US$4,442) respectively to set up partitions and a reception counter in the office.

Consequently, the ministry incurred a loss of MVR189,225 (US$12,271) that it was unable to claim as damages for delays of 51 days and 19 days respectively.

Moreover, as a result of hiring an engineering firm for a monthly pay of MVR4,500 (US$291) for inspection and management of office buildings begun in 2008 by the now-defunct Ministry of Atolls Development, the ministry had to pay over MVR1 million (US$64,850) as a consultancy fee due to delays in completing the inspection work.

The audit also found that four employees of the Parole Unit at the ministry transferred to the Department of Penitentiary and Rehabilitation Services (DPRS) in September 2010 by the Civil Service Commission (CSC) were paid salaries out of the ministry’s budget from September to December 2010 as the DPRS did not have space for the four transferred staff.

In another case highlighted in the report, the ministry paid an owner of an uninhabited island (Haa Alif Dhapparu) MVR5,310 (US$344) in excess of the compensation stipulated in the agreement when the island’s ownership was transferred to the Ministry of Housing and Environment. The island had been under the care of the Home Ministry before it was designated an uninhabited island on August 9, 2010.

The audit report noted that the ministry’s registry of property and assets were not properly maintained in accordance with section 7 of the financial regulations. While some purchases were not entered into the registry, assets transferred from other ministries were similarly unregistered.

As a result of not requiring employees to sign for use of ministry’s mobile phones and laptops, the report noted, six laptops were lost in 2010 while “no employee was held responsible for the losses”.

Lastly, the report found that financial records of monies collected by the ministry were not properly kept. A registry of cash collected was not maintained and receipts were not entered into the daily ledger, leading to discrepancies in the accounts.

Province Offices

The audit of the former Upper North Province Office meanwhile discovered that political appointees paid a living allowances were using government accommodation in Haa Dhaal Kulhudhufushi free of charge. Consequently, the electricity bill for the province office’s accommodation block amounted to MVR105,812 (US$6,861) in 2010.

Moreover, as of July 2011, the electricity bill for the block reached MVR126,022 (US$8,172).

The audit also found that the province office paid MVR156,133 (US$10,125) as docking fees to the Kulhudhufushi Regional Port for an accommodation barge used by Boskalis International, which was contracted by the government to reclaim land in the island.

As the funds were not included in the province office budget and the land reclamation project not carried out through the office, the audit concluded that the expense was in violation of financial regulations.

The report also flagged the hiring of a project consultant for a monthly pay of MVR10,000 (US$648) who had not submitted education certificates. While the province office had claimed that the other candidates did not show up for the interview, the Auditor General’s Office learned that interviews were conducted.

The consultant was appointed a state minister before the contract period expired, the report noted, suggesting that “the announcement for the post was made directly to hire that person.”

Moreover, the audit found that political appointees at the province office did not submit reports of trips out of the island as required by regulations. However, attendance records showed that the staff in question were said to be out of the island on office business.

Meanwhile, the audit of the South Province Office discovered that an individual hired in January 2010 to draw up a strategic development paper in three months was paid a total of MVR154,000 (US$9,987) after illegally extending the contract period beyond the agreed upon three months.

As of July 2010, the audit found, there was no record that the report was ever submitted.

The audit also found that the province office paid for the expenses of a state minister in Male’ for 49 days while there was no record to show any official business conducted during the stay.

Moreover, the expenses for food and accommodation of the south province state minister were significantly higher than the approved rate for government employees.

On July 15, 2010, the audit found, a state minister arranged a dinner worth MVR10,788 (US$699) for 24 people at the Villigilli Resort and Spa while there was no documentation sent from province office to the resort.

“Moreover, while the expenses form was not properly filled, both the form and the approval for the payment voucher were signed by the state minister,” the report stated.

The province office also spent MVR5,088 (US$329) a day for a Defence Minister’s stay at the Villigilli Resort from July 25 to 27, 2010, while there was no documentation at the office explaining the purpose or nature of the trip. Invoiced for the expenses, the Defence Ministry claimed it was not an official visit.

The audit discovered that the province office spent a total of MVR27,580 (US$1,788) to mark the India-Maldives Friendship Week in Addu City while the funds were not included in the office budget and the expenses were not approved by the Finance Ministry.

In the wake of the revelations of the audit, the Anti-Corruption Commission (ACC) Chair Hassan Luthfy told local media today that the commission would discuss the Home Ministry’s audit report at its meeting tomorrow and identify cases to investigate.

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Police forwards Aruham’s murder case to Prosecutor General

Police have concluded the investigation into the death of 16 year-old Mohamed Aruham, who was found dead inside ‘Lorenzo Park’ on May 30, and have forwarded the case to the Prosecutor General’s Office to press charges against six suspects arrested in connection with the case.

The police identified the six suspects as Mohamed Sufyan, 19 of Gahdhoo in Gaafu Dhaalu Atoll, Mohamed Visaam, 19, of Maavah in Laamu Atoll, Mnsoor Yousuf, 23 of the same island, Athif Rasheed, 21 of Mahchangolhi Scenery View, Hussain Aleem, 28 of Galolhu Dhaashthaan and Ali Mifrah Ahmed of Mahchangolhi Kanbalifaru.

According to police, all suspects except Ali Mifrah Ahmed have previous criminal records.

Aruham’s body was discovered inside Lorenzo Park at about 6:00am by police officers patrolling the area on March 30.

Local newspaper Haveeru quoted a witness who saw the body as saying that Aruham appeared to have been stabbed twice in the chest, and that his whole body was covered in blood.

Deputy Head of Police Serious and Organised Crime, Dhaudh Mohamed, previously told the press that Arham was killed in a revenge attack in an argument that night between two rival gangs.

Dhaudh said that the police investigation had found that Aruham had a close relationship with the gang, who were based in the park in which he was found dead.

Friends of Aruham’s have said that he was in the park that night after all his friends left because he was too tired to go home, as he had just finished attending a camp that day.

Aruham did not leave the park with his friends and may have fallen asleep in the park alone and been attacked while he was asleep, according to some of Aruham’s friends.

The victim was a student at grade 9 in Dharmavantha School when he died.

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