Day: August 15, 2011

Quad-bike in Kuredu fatal accident was registered and driver licensed

The quad-bike involved in the crash on Kuredu Island Resort, which claimed the lives of British honeymooners Emma and Jonathan Gray, was legally registered to the resort as a tractor according to registration documents obtained by Minivan News today.

Maldivian Democratic Party (MDP) Chairperson ‘Reeko’ Moosa Manik had previously alleged during an emergency motion in parliament last week that the King Quad 700 vehicle was not legally registered with the Maldives Transport Authority, and that the driver, 23 year-old Swedish national Filip Eugen Petre, was not licensed to operate it.

Opposition MPs accused Manik of indulging a personal vendetta against the resort’s owner, Champa ‘Uchoo’ Mohamed Moosa, in retaliation for coverage by Champa’s private DhiTV station of an incident last year in which 168 bottles of alcohol were found in Manik’s car while he was outside the country.

Manik further alleged in parliament that attempts were made to “to hide the boy [Petre] and put the blame [for the accident] on a Maldivian employee in the resort.”

When Minivan News contacted Manik today, he maintained that he had been informed by a person working on the resort that the vehicle was unregistered. He also claimed that foreigners who wished to drive in the Maldives were required to register with the Ministry of Transport.

“I have been watching that island for a long time and they are doing a lot of illegal things,” he alleged. “I am bringing this up in the national interest, not because of Champa. I don’t want this to happen on another resort otherwise it will affect the industry.”

Following widespread media coverage of Manik’s claims in parliament Jonathan’s mother, Cath Davies, called for a full inquiry into the accident “as somebody, somewhere, is responsible for having allowed that quad to be on the island, and those keys to be available to the young man who was unlicensed and unregistered.”

According to registration papers obtained by Minivan News, the 172 kilogram Suzuki 2007 King Quad 700 4X4 was imported on May 5 2007 and registered on August 2 the same year.

Minivan News also obtained a copy of Petre’s Swedish category B driving license, which would in Sweden, the UK and many other European countries, legally allow the operation of a four-wheeled motorcycle as well as a car.

According to Police Inspector Mohamed Riyaz, who is leading the investigation into the Kuredu accident, under Maldivian law foreign nationals with a valid overseas license are also able to drive in the country for a period of up to 90 days without a local license.

Riyaz said police were in the process of determining whether the quad-bike had been appropriately registered. He confirmed that the vehicle had been registered as a tractor under the ‘C1′ category “used for vehicles transporting goods, not passengers.”

“If it had been properly registered it would be under the A1 category and the driver would require a motorcycle license, as it has a fuel engine and is a very powerful 700cc,” he said.

He also noted that the vehicle was not designed to carry passengers other than the driver, and carried a warning to that effect.

Filip Petre was seriously injured in the accident and remains in hospital in Male’, following the confiscation of his passport on the order of the Criminal Court. Inspector Riyaz said that an application for Petre to be taken abroad for further medical treatment three days ago had been declined, “as police believed that based on the medical report there was no imminent threat to his life.”

Inspector Riyaz said Petre’s family had approached the court to appeal the decision, and added that police were open to his treatment overseas if medical opinion was that urgent diagnosis was necessary.

In a statement to Minivan News, Filip’s father Lars Petre, a shareholder in the resort, 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 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.

“The quad bike which my son was driving was registered and my son Filip is licensed to drive such vehicles. My son Filip and his brother Tom (who was the first to arrive at the scene of the accident with the doctor), the management and staff of Kuredhu have been cooperating with the police investigation fully, and I give every assurance that they will continue to do so in the future.

“We understand the grief of the families who lost their loved ones in the accident, and we also respect the duty of the Maldives Police Service to investigate the matter. However the fact remains that what happened on August 6 is an accident, a very tragic fatal event, which my son no anyone else had the power to change.

“I wish to assure to the families of the deceased, the media and the public that there was absolutely no ill intention whatsoever in this accident. While my son and the staff of Kuredhu are shattered with the result of the accident, we remain helpless to change anything that has happened.

“The management of Kuredhu will do whatever is possible to corporate with the investigation and to avoid further distress for all families concerned.”

Likes(0)Dislikes(1)

“Taxation system long overdue,” says MATI

The Maldives Association of Tourism Industry (MATI) has declared its support for the government’s economic reform programme and the introduction of direct taxation.

In a press statement yesterday, the association of industry leaders noted that the absence of a taxation system in the country “similar to tax regimes successfully implemented in other countries” was a serious impediment to development and economic growth.

“The introduction of such a taxation system to the Maldives is long overdue,” MATI said in its statement.

As the enactment of direct taxation would increase state revenue and reduce government borrowing from banks, “this association believes that banks lending to private businesses will increase and job opportunities will be created.”

“This association believes that as a result of [the economic reforms], economic growth will quicken and challenges faced by the Maldives tourism industry will be solved,” the statement reads.

MATI warned that “it is certain” that if state revenue was not increased “with immediate effect” the domestic economy would be adversely affected.

Consultations

The statement of support from MATI comes after the Tourism Ministry last week condemned “misleading statements in the media” by the organisation about the government’s proposed economic reforms.

The Tourism Ministry claimed that “MATI’s misleading statements in various media recently about the tax bills of the government’s economic reform agenda imply that the government’s efforts were undertaken without consulting officials from the tourism industry.”

The Ministry said it had “consulted a number of parties active in the tourism sector and sought advice for shaping the tax bills so that it would not be a disproportionate burden on the industry.”

“After these consultations, the Ministry is assured that businesses in the tourism industry support the reform agenda. Likewise, those in the front ranks of the tourism industry as well as MATI support it. Therefore, [the ministry] regrets an organisation like MATI making statements that are contrary to the advice and suggestions of senior industry leaders.”

President Mohamed Nasheed has meanwhile welcomed MATI’s support for the government’s fiscal and economic reform plans.

“The President believes that the fact that MATI agreed to fully support the government in its economic reform programmes, after deliberations between MATI and the government, is a sign that they support the measures taken by the government to improve the state of the Maldivian economy and increase the state’s income,” reads a statement from the President’s Office today.

Recommendations

Following consultations with the government, MATI proposed a series of recommendations on the new taxes.

In its comments on the proposed legislation – obtained by Minivan News – MATI stressed the need to educate the public and ease in the taxes gradually.

“There is a need to study the effects of the combined burden of having to pay all these taxes on those affected,” the association noted.

On the introduction of a five percent General Goods and Services Tax, despite the successful introduction of a Tourism Goods and Services Tax (T-GST) in January this year, MATI noted that “T-GST was collected from a highly regulated sector of the economy. The same cannot be said of the other sectors of the economy or of the general public who would end up paying this tax.”

MATI argued that the GST could stoke inflationary pressures, urging “careful study of the effects of GST on the economy.”

“For the tourism industry – Costs of local purchases will go up by the GST amount or more. Direct imports will increase in order to avoid GST. Resorts will have to pay both T-GST & GST,” MATI noted. “Confusion will arise due to different rates being applied. In view of this it is suggested that eventually the two taxes should merge into one GST.”

The organisation also recommended delaying the introduction of a private income tax (PIT) to January 2013 to establish a regulatory framework and raise public awareness.

The organisation contended that the progressive income tax rates – from 3 percent to 15 percent for incomes above Rf30,000 (US$1,900) – were “especially targeted at the very rich.”

“Under the proposal, people earning one million rupees per year will pay about 2.8% of their income as PIT, whereas a person earning MRF10 Million per year will pay about 13.25% of the income as PIT,” it noted.

Moreover, MATI urged that plans to raise the current 3.5 percent T-GST to 6 percent in January 2012 and 10 percent in January 2013 be scrapped in favour of retaining the current rate until a recommended hike to 7 percent in January 2013.

“Tourism industry is already paying a lot to the Government and therefore, we urge the Government to give the industry a breathing space to help the industry revive from low occupancy, heavy operating costs and the economic chaos caused by recent financial crisis in Europe,” MATI said, cautioning against high taxes leading to the Maldives becoming “an even more expensive destination.”

MATI further noted that the taxes were “especially heavy on the tourism industry and will result in a very negative impact on the industry.”

“Tourism will cease to be an attractive industry to invest in. As a result, new investments will be slowed. Proposals to banks to borrow will not look that attractive any more. Bank lending to this sector will become more and more selective. This is not what we like to see in this country,” MATI stated. “Finally, should we continue to ‘milk the cow dry’? Certainly not is the answer.”

“Agreeable”

President Mohamed Nasheed responded to MATI’s recommendations in a letter yesterday, expressing the government’s gratitude for the comments.

“The purpose of these reforms are to set in place the foundation needed to build a strong and modern economy befitting the Maldives’ status as a middle-income country, and to enable the state to provide the necessary services that the people of this country expects,” the letter reads. “In addition to the tax reforms that will allow for a sustainable revenue base, the government’s programme include important reforms such as facilitating the ease of doing business and strengthening property rights.”

On the recommendations by MATI, the President’s letter noted that “the government is agreeable to reduce the proposed rate of tourist sector GST to become effective from January 2013 to 8 percent from the current proposed rate of 10 percent.”

The government was also “agreeable” to MATI’s proposals on capital allowance, pension payments and deducting interest payments from banks and other financial institutions in full, the President’s letter states.

On the impact of the taxes on the economy, the letter notes that “studies have shown that proposed tax rates are lower than those in other island economies and thus will not have an overbearing effect.”

Addressing skepticism of balancing the state budget with the new revenue sources, President Nasheed said that “the revenue impact on the proposed taxes will bring income up to a level where necessary expenditures can be met and lead to a balanced budget in 2015.”

Likes(0)Dislikes(0)

Three assault cases a day on average reported to police

As of August this year, 775 assault cases have been reported to police, Assistant Commissioner of Police Ali Rasheed said last night at a ceremony to revive the spirit of Ramadan.

MNBC One reports that Rasheed noted that the number of reported incidents amounted to three assault cases a day, adding that the cases included three fatalities this year.

Rasheed said that “obstruction to police investigation of assault cases” from parents and some segments of society was an obstacle to police efforts to combat crime.

Speaking at last night’s religious programme, Rasheed observed that 1,519 cases of assault were reported last year, the majority of which involved youth offenders.

Meanwhile two men were taken into custody around 2:45am early this morning on suspicion of planning an assault.

According to police, the pair were forcibly arrested in a small alley near Scoop Restaurant by the Maafanu Police Station who were alerted by a member of the public.

A one-foot long Bennet knife was confiscated from one of the suspects.

Likes(0)Dislikes(0)

MIRA to accept all payments except tourism taxes in rufiya

All payments to the state except tourism-related taxes will henceforth be accepted only in Dhivehi rufiya, the Maldives Inland Revenue Authority (MIRA) announced today.

On August 9, the cabinet decided that all fees and payments to the government must be paid in local currency, in a bid to alleviate an acute dollar shortage in the Maldivian economy.

According to a press statement issued by MIRA, Commissioner General of Taxation Yazeed Mohamed said today that the authority was in the process of implementing a directive from the Finance Ministry to enforce the cabinet’s decision.

Discussions were taking place with concerned authorities to finalise administrative matters to collect payments in rufiyaa, MIRA said in its statement.

“Efforts are underway in collaboration with the Finance Ministry to amend the Tourism Goods and Service Tax (T-GST) Act and Tourism Act to accept T-GST, tourism tax, lease rent/land rent and fee for extending resort lease period in Dhivehi rufiya,” MIRA said, adding that once the amendments were brought, the tourism taxes would be collected in local rufiyaa starting from next month.

The MIRA press release stated that “the authority regrets” media reports claiming that MIRA was ordered to accept payments only in US dollars from August 13 onward as “we believe the news reports were misleading regarding MIRA’s efforts in this matter.”

Local media reports last week suggested a dispute between MIRA and the Finance Ministry over the cabinet decision.

Likes(0)Dislikes(0)

Government submits bill to establish mercantile court

The government has introduced a Mercantile Court bill to the parliament with the purpose of establishing a separate court with a separate seal and special jurisdictions to solve disputes involving business transactions in the Maldives.

Maldivian Democratic Party (MDP) MP Mohamed Musthafa submitted the bill to parliament on behalf of the government.

According to the bill, the Mercantile Court will consist of a Construction Division, Banking and Financial Division, Tourism Division, Investment Division, Goods and Services Division and Proprietary Division.

The bill also gives the Chief Judge of the Mercantile Court the powers to include any other divisions that the court finds that it lacks.

The bill will give the court jurisdiction to handle cases relating to business transactions concerning tourism, construction, international business, insurance, civil aviation, maritime, shipping, finance leasing, banking and finance, securities, fishing, company, partnership, professional liability and intellectual property rights.

The Mercantile Court will also handle contract, trade and service provision, consumer and service recipient protection in matters worth more than Rf 15 million (US$1 million).

According to the bill, the Mercantile Court has the jurisdiction to issue any sort of warrant or orders on its own initiative or upon a request made by a person to uphold justice or to prevent the judiciary from being misused.

The court’s bench will consist of seven judges, and significantly, a Muslim foreigner may be appointed as a judge at the court.

The bill comes following concerns aired recently by international organisations such as the International Committee of Jurists (ICJ) that the existing Maldivian judiciary lacked the independence and capacity to rule in cases involving complex civil proceedings.

Speaking to Minivan News in March after several weeks observing the operation of the Maldives’ Judicial Services Commission (JSC), former Australian Supreme Court Justice Professor Murray Kellam said that an impartial judicial system was a key factor in encouraging foreign investment and could have a direct and significant impact on the economy.

This was something that Singapore recognised 15 years ago, he said.

“They understood the value of a civil system that is incorruptible and competent. They spent a lot of money on their judiciary and Transparency International now rates their civil legal system as one of the best in the world.

“Singapore realised that one of the best ways to attract investment was to have a system whereby international investors knew they would get a fair go in domestic courts. If you look at the circumstances in other parts of the world where investors have no confidence in the judiciary, that deters investment and takes it offshore. They’ll go somewhere else.

Citing Adam Smith, considered one of the founders of modern capitalism, Kellam observed that “Commerce and manufacturers can seldom flourish long in any state which does not enjoy a regular administration of justice, in which people do not feel themselves secure in possession of their property, in which the faith of contracts is not supported by law.”

As a foreign investor, Kellam said, “you want to know that contact you enter into with domestic partners will be understood and enforced by courts if there is a breach. You want courts to judge you impartially – you don’t want to be discriminated against because you are a foreigner.”

“Secondly, it’s no good getting judgement if no there is enforcement – which is a major factor in developing countries. Sure you can get a judgement, but it’s not worth the paper it’s written on because there is no process for getting it enforced, and you can’t turn judgements into anything productive.”

Singapore had recognised this, and become not only a hub for foreign investment but also a regional hub for commercial arbitration, Kellam said.

“People from around the region will use Singapore as a place of law and business,” Kellam observed.

Likes(0)Dislikes(0)

Parliament approves appointment of Defence and Fisheries Ministers

Parliament today approved the appointments of Dr Ibrahim Didi as Minister of Fisheries and Agriculture and Tholhath Ibrahim Kaleyfan as Minister of Defence and National Security.

Dr Didi was approved 40-35 after Jumhooree Party MP Gasim Ibrahim and Independents Ahmed ‘Sun Travel’ Shiyam Mohamed, Ahmed Amir, Ali Mohamed, Ismail Abdul Hameed and Mohamed Zubair voted with the ruling Maldivian Democratic Party (MDP).

Tholhath Ibrahim meanwhile received parliamentary consent with 50 votes in favour and 24 against.

Both the main opposition Dhivehi Rayyithunge Party (DRP) and the independently functioning opposition parliamentary group had declared their intention to reject the reappointment of Dr Didi on the grounds that he had failed to receive parliamentary consent in November, 2010.

Dr Didi was among seven ministerial appointees who did not receive parliamentary consent in November.

DRP Leader Ahmed Thasmeen Ali told press last month that the party did not accept “the President appointing someone parliament has already rejected.”

In its report presented today after evaluating Dr Didi, the Government Oversight Committee – comprised of six oppositon and four MDP MPs – meanwhile recommended that his appointment be rejected on the same grounds.

The committee however recommended approving the nomination of Tholhath Ibrahim as Defence Minister.

Likes(0)Dislikes(0)

Nine year old boy dies after apparent suicide attempt

A nine year-old boy who was hospitalised following an apparent suicide attempt on Thinadhoo in Gaaf Dhaal Atoll on July 29 has died of his injuries.

Haveeru reported a family member as stating that doctors at Indhira Gandi Memorial Hospital (IGHM) had given up hope for the child’s recovery last week, and that the boy’s condition deteriorated after he was removed from intensive care yesterday.

Police said at the time that the boy was found hanging from a coconut palm and was rescued by his 14 year-old brother.

Likes(0)Dislikes(0)

DQP MP submits resolution to cut fuel surcharge

The Dhivehi Qaumee Party (DQP) has submitted a resolution to parliament calling on the government to cut the fuel surcharge included in the electricity bill every month.

In the resolution, DQP MP Riyaz Rasheed claims that the fuel surcharge was “a type of tax unapproved by the parliament and taken from the citizens, despite the laws clearly stating that any tax could only be taken after parliament approves it.’’

“When President Mohamed Nasheed was campaigning for the presidential election, the pledge he made publicly was to lower the electricity tariff,” Riyaz Rasheed said in the resolution. “It could be believed that raising the electricity tariff from month to month is a deliberate attempt made by the government to make the citizens poor.”

In the resolution the MP says that electricity is one of the country’s basic needs and that due to the hike in electricity tariffs, “today citizens have to spend bulk of their wage on electricity.”

The resolution also says that the owners of medium-sized businesses were worried about the future of their businesses “because of the government’s decision to float the dollar exchange rate in to a band of Rf10.28 – Rf15.42 which has made the prices of goods increase.”

The MP also called on the government to cease withdrawing taxes from the citizens in the name of fees or charges “at a time when adults and children are forced to live in poverty.”

In May last year the main opposition Dhivehi Rayithunge Party (DRP) led protests outside State Electric Company (STELCO) complaining about increased electricity tariffs.

Likes(0)Dislikes(0)