Month: June 2011

MDP MP presents resolution demanding investigation into blackmarket sale of oil to Burma

Maldivian Democratic Party (MDP) MP Mohamed Musthafa today presented a resolution to the parliament demanding the investigation of Former President Maumoon Abdul Gayoom and his half-brother Abdulla Yameen, for allegedly buying subsidied oil from OPEC and selling it on the international blackmarket to Burma.

The previously-aired allegations date from Yameen’s time as Trade Minister and head of State Trading Organisation (STO). Yameen is now an MP and leader of the opposition-aligned People’s Alliance (PA) party, and has insisted that any such trading was legal and that allegations of impropriety were politically-motivated.

In the motion, Musthafa claimed that Chief National Correspondent of CNN-IBN Sumon Chakrabarti had outlined how the fraud was conducted to local media, and provided evidence.

His resolution requests an investigation into what it describes as “the biggest corruption case in the history of the Maldives”.

Issues relating to the Singapore-based joint venture that allegedly carried out the deal, Mocom Trading Pvt Ltd, which was used established to carry out this fraud, were first raised by audit firm KPMG, Musthafa noted in the resolution.

The resolution states that later in 2004, audit firm Price Water House Coopers also audited the STO.

“This year the government handed the auditing to [forensic accountancy firm] Grant Thornton which found that the two audit reports contained legitimate concerns in their reports,’’ the resolution said.

If passed, the resolution would oblige parliament to investigate the matter. It states that it is the legal duty of the parliament to look in to that matter as the allegations concern commercial crime as high-level corruption.

Dhivehi Rayyithunge Party (DRP) MP Ahmed Nihan said he fully supported such an investigation as it would “reveal the truth of it to the people.”

‘’There have been so many accusations against Gayoom and so far none of them have been proven,’’ Nihan said. ‘’This government has already spent US$2 million on bribing the journalist Chakrabarti and investigating the matter using other methods,” he alleged.

Nihan said Musthafa was “the black sheep” of the MDP Parliamentary Group, and accused the party of “often using him to present such resolutions and bills.”

‘’He always tell us outside the parliament that his policy is ‘no money, no talk,’’ he said. ‘’He must have been given some amount of money and if someone else gave more he will withdraw it, that is how he works.’’

Nihan said that similar allegations had been made by the current Home Minister Hassan Afeef that Gayoom took US $80 million dollars in tsunami aid given by the Qatari government.

‘’The court found Afeef guilty of defamation,’’ Nihan said. ‘’There are many such accusations against Gayoom.’’

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Taxation debate begins in parliament

Parliamentary debate on the government’s economic reform package began today with preliminary debate on legislation to introduce a five percent General Goods and Services Tax (GST).

The International Monetary Fund (IMF)-sanctioned economic reform package also includes bills on business profit tax and income tax as well as amendments to the Tax Administration Act and the Import-Export Act.

Introducing the draft legislation, MP Mohamed Aslam of the ruling Maldivian Democratic Party (MDP) explained that the government’s aim was to replace the current indirect tax in the form of import duties with direct taxes.

“When this bill becomes law and the government stops depending on import duties for income, the main benefit would be that businesses would not have to pay a tax before selling their goods,” he said. “As a result, businesses will expand, there will be increased cash flow for investment and business confidence will be strengthened.”

Once direct taxation was in place, Aslam continued, import duties would be reduced or eliminated on January 1, 2012 concurrently with a hike in the Tourism Goods and Service Tax (TGST) introduced this year from 3.5 per cent to 6 per cent.

Moreover, the government plans to raise the TGST to 10 per cent in 2013 and abolish the current bed tax of US$8 per tourist in the same year.

If the legislation is enacted, said Aslam, tax revenue in 2012 is estimated to be Rf3.2 billion (US$249 million) and Rf4.9 billion (US$381.3 million) in 2013.

The “fundamental purpose” of taxation was equitable distribution of wealth and reducing income disparity, Aslam said: “This is how it’s done in civilised societies. Without taxation, we cannot bring development and prosperity for the people.”

Opposition

“I believe that while taxation is important, the dates for introducing taxes as well as the tax rates should not be determined before properly studying the effects on the whole economy,” said Dr Abdulla Mausoom of the main opposition Dhivehi Rayyithunge Party (DRP).

As a result of inconsistency and “sudden changes to the government’s economic policy,” Mausoom claimed that investors had lost confidence in the Maldivian economy.

While welcoming the elimination of import duties, the DRP MP for Kelaa urged the government to protect the local agriculture industry from foreign competition.

Mausoom also called on the government to revise government working hours to allow civil servants to complement their incomes with part-time jobs, arguing that civil servants deserved a 20 percent pay rise in light of the decision to float the exchange rate within a 20 percent band.

Mausoom further claimed that the main source of “wastage” in the budget was expenditure on political appointees.

“The government should not waste tax revenue needlessly,” he said. “There was a time when the King took taxes from merchants, impoverished the people, and used it for revelry. That time is past.”

“At a time when the gap between rich and poor is widening, I don’t believe at all that this is the best time, the perfect time, the ripe time to take taxes,” said DRP MP Ali Azim, adding that “such an important step must only be taken after proper research and study.”

Azim however conceded that taxation was necessary for the government to provide public goods and services, but repeatedly insisted that the time was not right.

“I am reminded of the Jewish way of doing things,” he said. “That is, further impoverishing those who are already poor. Forcing citizens to beg and telling them, if you sign this [membership] form, you’ll get things done.”

Azim added that citizens should not have to pay taxes even if the bill was passed, claiming that the government continued to disregard laws passed by parliament if it did not suit the current administration.

DRP MP for Vaikaradhoo Ali Arif argued that the public would be adversely affected if a number of different taxes were introduced all at once.

“We are now taking seven per cent from every worker as a contribution to our pensions,” he explained. “We are saying do this gradually. When you take everything at once, the Maldivian citizen is going to fall down.”

Maafanu West MP Abdulla Abdul Raheem, who defected from DRP claiming that “a few tycoons” were opposing taxation, meanwhile underscored the need for sustainable sources of revenue by pointing out that the state was in debt to the tune of Rf18 billion (US$1.4 million) because of deficit financing through loans.

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Adhaalath Party reschedules congress over space concerns

The Adhaalath Party has reportedly postponed the date of a key congress set for July until later in the month after facing issues in securing a venue suitable in size to host the event.

The congress, which will see the group’s recently appointed new leadership take their oaths of office as well commencing elections for other senior posts, is now expected to take place between July 17 and July 20 at Dharubaaruge, according to the Haveeru newspaper.

The Party’s Registrar Dr Mohamed Muiz told the paper that the decision had been taken to postpone the event – originally scheduled to begin July 4 – after fears that refurbishments to the initial host venue would not be completed in time.

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Work of Special Rapporteur will continue even without Iran’s cooperation: Dr Shaheed

Iran has said it will not allow recently-appointed UN Special Rapporteur on Iran, Dr Ahmed Shaheed, to enter the country.

The announcement that the former Maldives Foreign Minister was to take up the prestigious UN role was made last weekend. Iran’s state media outlet, the Islamic Republic News Agency (IRNA), reported yesterday that the Iranian Majlis had decided to block Dr Shaheed from entering the country.

Majlis representative and member of Iran’s Human Rights Commission Mohammad Karim Abedi said the decision was made “because the US, Britain and the Zionist regime are among the major violators of human rights in the world and the UN Human Rights Council should study their violations.”

“The United Nations studied the crimes and atrocities of the Zionist regime in 2010 during the 33-day war on Lebanon and the 22-day war in Gaza, and declared the regime’s army commanders as war criminals but could not take any action against them,” Abedi told IRNA.

“Accusing countries such as the Islamic Republic of Iran of violating human rights should be viewed as a part of their blame game,” Abedi said.

Dr Shaheed told Minivan News that the UN Human Rights Council had called on Iran to cooperate when the office of the Special Rapporteur was set up in March.

“The work will continue whether or not access is given, but will benefit from Iran’s cooperation,” he said, explaining that the mandate of the UN Special Rapporteur required the permission and cooperation of the host country for field visits.

“Special Rapporteurs have a very comprehensive code of conduct – where field visits are not possible information can be gathered from a variety of sources,” he explained.

“At the same time the objective is to work with the government of Iran to ensure all the issues are covered.”

Dr Shaheed dismissed speculation that the objections of the Shiite-majority Iran were a reaction to the appointment of a Special Rapporteur from a 100 percent Sunni-Muslim country.

“What they are saying in Iran has nothing to do with me or the Maldives,” Dr Shaheed said.

The former Foreign Minister is preparing for a preliminary visit to Geneva later this week. The resolution passed by the Human Rights Council requires him to present interim findings to the UN General Assembly in September, and a full report to the Human Rights Council in March 2012.

Local newspaper Haveeru has meanwhile reported the Maldives’ conservative religious Adhaalath party as stating that Iran’s decision “brings disgrace to the Maldives’ foreign policy and weakens the country’s reputation among Islamic states.”

The Adaalath Party’s President Sheikh Imran Abdulla claimed that “Maldivians should be ashamed” by Iran’s decision.

“As far as I know this is the first time such a mission assigned to a Muslim country was returned. We, Maldivians, should be ashamed in front of the Muslim world,” Haveeru reported Sheikh Abdulla as saying.

“Tensions will rise between the Maldives and a state like Iran that has nuclear power. We, being a small Muslim nation, should take into consideration such matters before interfering in the matters of an Islamic state.”

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Planned Maldives Islamic channel launch to be reviewed next year

The Ministry of Islamic Affairs has said it will review the possibility of launching a Maldives-based Islamic television channel next year to ensure that the technical demands required for the endeavor can be met.

Permanent Secretary for the Ministry of Islamic Affairs, Mohamed Didi, told Minivan News that the postponement of plans to begin broadcasting an Islamic TV channel in the country were not so much an issue of budgetary limitations – but that of human resources.

“If we were to start this channel we would need human resources and the technical staff to support it,” he said. “We have spoken to the Maldives National Broadcasting Corperation (MNBC), who can supply this, so we have the technical capacity, but we need to think how we will move ahead.”

Didi said that broadcasting a new tv channel in the country was “not an easy task” and there were concerns that the project needed more extensive planning.

“If we rush [starting the channel], we might not be able to sustain it so that is why we are waiting until next year,” he claimed.

Didi added that the exact nature of how the channel would operate and the duration of its programming on a daily basis had yet to be finalised and would be a key part of any ongoing talks.

Meanwhile, Miadhu has reported today that Islamic Affairs Minister Dr Abdul Majeed Abdul Baari believed repeated postponements of forming the channel were related to low budgets and ongoing legal action regarding the control of state media.

According to the report, Rf2 million from the Zakat fund had been allocated to fund the proposed Islamic channel, but the money has now been transferred instead to a scholarship programme.

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MDP sets afternoon deadline for parliamentary group leader applications

The Maldivian Democratic Party (MDP) has set a deadline of this afternoon for accepting applications for the role of its parliamentary group leader.

According to Haveeru, the party has given potential candidates until 2.30pm today to register their interest in the role ahead of an election scheduled for Wednesday.

The MDP’s previous Parliamentary Group Leader, ‘Reeko’ Moosa Manik, resigned from his post after being selected as the party’s acting chairperson for a year during its 91st national council meeting held at Bandos Island Resort over the weekend.

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No issues inside MDP leadership, says Dr Didi

Ruling Maldivian Democratic Party (MDP) Leader Dr Ibrahim Didi has dismissed speculation that there were internal issues within the party, following a decision by the the party’s national council to appoint ‘Reeko’ Moosa Manik as the acting Chairperson for one year.

Local media reported that Dr Didi had expressed concern that the appointment was inconsistent with the party’s charter.

The MDP’s website today quoted Dr Didi as saying that having different thoughts on a subject was not an issue, and it had been the MDP that introduced freedom of expression to the Maldives.

‘’The MDP is a party that knows how to tolerate different opinions and a party that knows how to work together even with different opinions,’’ Dr Didi said. ‘’We are in the spirit to work together, hopefully we will solve any problems we face.’’

He also thanked Moosa for accepting the position of acting Chairperson.

Speaking to different media outlets Dr Didi said that the party’s charter stated that if the post of chairperson becomes vacant, the post will temporarily be handed over to deputy chairperson.

He also told the media that he would seek legal advice over the matter and that it was questionable whether the national council could make such a decision when the charter stated otherwise.

‘’There are no issues between me and Dr Didi, the National Council and me or the National Council between Dr Didi,’’ said MDP acting Chairperson and former Parliamentary Group’s Leader and MP ‘Reeko’ Moosa Manik.

Moosa said that as the MDP was a democratic party its members were free to express their own opinions, and offered assurances that the MDP would never become factionalised.

The MDP was not a party that focused around one single person, he added.

The MDP has meanwhile announced interested candidates to send letters to the party’s secretariat, following the resignation of Moosa from his former post as Parliamentary Group Leader.

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Maldives endorses war crime investigation in Libya

The Maldives, together with the UK, Qatar and Jordan have passed a resolution in the UN’s Human Rights Council to extend the mandate of the international Commission of Inquiry into human rights violations in Libya.

Foreign Minister Ahmed Naseem said he welcomed the “strong message” the resolution would send to Libyan President Muammar Gadaffi.

“Civilised nations around the world will not stand by as he kills and violates the fundamental rights of thousands of our Muslim brothers and sisters. He will, in the end, be held accountable,” said Naseem.

The resolution came in response to the inquiry’s preliminary report into the Libyan situation, which found evidence of arbitrary killings, enforced disappearances, arbitrary detention, torture and sexual violence against women and children – violations it found represented war crimes and crimes against humanity.

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Adopting Rome Statute benefits domestic legal systems, says Coalition for the International Criminal Court

The Maldives’ decision to accept the jurisdiction of the International Criminal Court (ICC) will provide many opportunities to improve the country’s domestic legal system but is a significant commitment, according to Evelyn Balais-Serrano, Asia-Pacific Coordinator for the ICC’s advocacy NGO the Coalition for the International Criminal Court (CICC).

Parliament voted almost unanimously on June 14 that the Maldives sign the Rome Statute of the ICC, the founding treaty of the first permanent international court capable of trying perpetrators of genocide, crimes against humanity, and war crimes.

In October 2010, MPs clashed over signing the Rome Statute, using the debate to condemn the “unlawful and authoritarian” practices of the previous government, while MPs of the opposition Dhivehi Rayyithunge Party-People’s Alliance (DRP-PA) coalition MPs accused the current administration of disregarding rule of law and negating parliamentary oversight.

President Mohamed Nasheed had sent the matter to parliament for ratification. Following the hour-long debate, during which time  DRP MP and recently-dismissed Judicial Services Commission member Dr Afrashim Ali insisted that the convention should not be signed if it could lead to “the construction of temples here under the name of religious freedom,” a motion by DRP MP Dr Abdulla Mausoom to send the matter to committee was passed 61-4 in favour.

Last week, parliament voted 61-3 in favour of signing the treaty, on the recommendation of the national security committee.

“A major benefit of [ratifying] the treaty is the opportunity for judges and lawyers to participate in exchange and internship programs,” Balais-Serrano told Minivan News, explaining that the domestic legal system of many countries had benefited through exposure to the ICC.

Didactic benefits aside, the decision has ramifications for Maldivian law. Implementing the treaty requires a national commitment to adjust domestic law where it conflicts with the Rome Statute, “or to find ways for it to align,” Balais-Serrano told Minivan News.

One possible reason for the slow uptake of the Rome Statute in Asia is its position on capital punishment – the death penalty – which is legal in many countries in the region but is not present in the ICC treaty, “as are laws concerning immunity, protecting monarchs and members of the royal or ruling family [from prosecution].”

Ratifying the treaty is a pledge to make those revisions, Balais-Serrano said, and to make sure such laws were present whenever crimes under the ICC’s jurisdiction were committed.

She noted that the CICC’s experience was that despite initial concerns in some countries regarding clashes between the legal obligations of ICC signatories and Islamic Sharia law – as in the case of the death penalty – Sharia experts in ICC signatories Afghanistan, Jordon and Malaysia had found no conflict between the Rome Statute and Sharia.

Balais-Serrano acknowledged “frustrations” on behalf of people and governments over misconceptions of what crimes fell under the ICC’s jurisdiction.

“For example, in Bangkok there is a debate between the red and yellow shirts about how to use the ICC to get rid of each other,” she noted.

‘The ICC only covers major crimes, such as genocide, war crimes, crimes against humanity and crimes of aggression. Crimes must be widespread, systemic and of concern to the international community. The ICC does not deal with small cases, even if the victims may be in the hundreds.

“Also present is the concept of command responsibility – the ICC only deals with the big fish. In the past only the small fish may have been sacrificed to show a semblance of justice – but the ICC targets the highest level of responsibility: the head of state, generals, kings.”

Another benchmark for whether the ICC would consider taking on a case was willingness and capacity on behalf of a country’s own judiciary to handle such contentious cases.

Currently the ICC is investigating situations in the Democratic Republic of the Congo, Uganda, Central African Republic, Darfur, Sudan, Kenya and Libya.

Sri Lanka was an emerging candidate, she noted, following the UN’s claim that videos of alleged insurgents being executed by government soldiers were genuine and evidence of war crimes.

“That was how Dafur started,” Balais-Serrano said, explaining that outside an invitation from the Sri Lankan government, the UN’s launching an international investigation would require a mandate from either the UN Security Council, or the UN Human Rights Council.

“China will block [an investigation] in the UN Security Council, so the emphasis is on the Human Rights Council [of which the Maldives is a member],” Balais-Serrano said.

Foreign Minister Ahmed Naseem has previously described the UN’s report into the closing days of Sri Lanka’s civil war as “singularly counterproductive.”

Ratifying the Rome Statute would also have diplomatic ramifications, Balais-Serrano agreed.

“Becoming a member of the ICC can increase a country’s prestige and reputation, through its commitment to human rights,” she said.

“But it also adds pressure to a government to fulfill its obligations as a signatory, and not pay only lip service to human rights and its other international commitments.”

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