Day: August 18, 2011

Finance Ministry asked to sell resorts with outstanding rent payment notices

The Tourism Ministry has requested the Finance Ministry enforce a cabinet decision to recover outstanding rent and fines from seven resorts, either through further negotiation or sale of the resort properties.

Tourism Minister Dr Mariyam Zulfa confirmed to Minivan News that a letter was sent to the Finance Ministry on Tuesday, requesting that it “take the measures decided by cabinet as the period [for repayment] has expired, that is to sell the resorts or recover the amounts owed through discussions.”

As 90-day notices had been given to resorts with unpaid rent on two occasions, said Zulfa, the delays were “a bit too much.” Last month the Tourism Ministry issued “a final warning” to ten resorts to settle at least 25 percent of the amounts owed before July 25 or have their licenses revoked. Three resorts have since complied with the notice.

The Tourism Minister revealed that she had argued against revoking licenses because it would “narrow the chance” of recovering the outstanding rents.

“Also when licenses are revoked, the resort has to be closed down immediately regardless of advance bookings, guests already at the resort and employees working there,” she explained, adding that as the resorts would be sold as a going concern, it would continue to operate.

In addition, different resort businesses faced “different challenges, such as financial constraints.”

“I know that from the day we gave notice [the resort companies] have been trying to raise the money overseas,” she continued. “But we cannot give further extensions as it would not be fair to others as well.”

Zulfa observed that the notices have been “very effective”, as a number of resort facilities had complied and paid outstanding rents and fines.

“As of July 25, the government is now owed US$12.47 million,” she revealed, adding that the figure was “considerably lower” than before.

Local media reported last month that the resort facilities owed over US$20 million to the state.

Zulfa dismissed speculation in the media at the time that the resorts had been afforded special treatment as some were owned by high-profile members of the ruling Maldivian Democratic Party (MDP), including MP Ahmed Hamza and Yacht Tours owner Abdulla Jabir.

The letter to the Finance Ministry however requested measures be taken against Alidhoo and Kudarah Resorts (Yacht Tours), Giraavaru Island Resort (owned by Abdul Rauf, M. Sunrose), Kihaadhupparu Island Resort (Athamaa Marine International) and Zitali, Filitheyo and Medhufushi (owned by the family of MP Hamza and Economic Advisor to the President Ali Shiyam).

“It is just a coincidence,” said Zulfa. “My mandate is to vouch on behalf of all stakeholders regardless of which party they belong to.”

Local daily Haveeru reported today that according to the Maldives Inland Revenue Authority (MIRA), a portion of the outstanding rents and fines had been paid by the companies. However MIRA would not be withdrawing its court cases against the resorts.

Commissioner General of Taxation Yazeed Mohamed told local media last month that MIRA “will not back down” or hesitate to take legal measures against businesses with outstanding rent and fines.

Zulfa said today that the Tourism Ministry would meet MIRA officials next week to discuss the possibility of reaching out of court settlements to recover the owed amounts.

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Plunge in youth pursuit of higher education “worrying” say education officials

Recent statistics from the Education Ministry show that only six percent of Maldivian youth aged between 17 to 25 are pursuing higher education.

The statistic comes from two reports on higher education, which are currently being compiled with assistance from the World Bank and the United States. The first report is investigating the status of higher education in the Maldives, as well as plans for its improvement. The second report is examining financial assistance.

Maldives National University Chancellor Dr Mustafa Luthfy said that six percent is “a worrisome number.”

“If they are qualified enough to go into a higher institution, they should,” he said. It was not difficult to find a public college in the Maldives, Luthfy noted, although he acknowledged that private institutions were costly.

The challenging transition between grades 7 and 8 is one explanation for the dropout rate, said Luthfy. He added that if students were unable to keep up with secondary school material, then they would not be able to get into higher institutions.

“We have to be very very careful about criticizing enrollment,” Luthfy said. “If we are going to offer more degree-level courses, we need students who achieve higher A and O levels in high school.”

A recent Juvenile Justice Report suggests a correlation between academic success and relationships with a parent or guardian. Juvenile Justice records say that of the offenders reported between April 1 and June 30 this year, 95 percent dropped out in 8th or 9th grade, and few lived with parents or guardians.

When asked if this contributed to low enrollments in higher education, Luthfy replied that “schools and parents are working very hard to improve the quality of education, and improve graduation rates.

“The Maldives has a small population, we want everyone to be an educated person,” he said.

O-level results for 2010 improved on previous years, with particular gains in science subjects, however the pass rate for the 6700 who sat the international standardised high school exams was 35 percent – up from 32 percent in 2009, and 27 percent in 2008.

Most major subjects showed a positive trend in results except for arts, geography and history, Deputy Education Minister Dr Abdulla Nazeer stold Minivan News at the time, “subjects which are only taken by a few students.”

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MDP Ali Waheed alleges that journalists politicised his housing bid

Former Dhivehi Rayyithunge Party (DRP) MP Ali Waheed, who recently crossed the floor to join the ruling Maldivian Democratic Party (MDP), has claimed that journalists covering his winning bid for a beach house in Hulhumale’ had politicised the matter and implied he was corrupt.

Waheed said that he had paid Rf1 million (US$64,580) upfront for the house, after winning the bid with the Hulhumale Development Corporation.

“The house will become my property only after I finish the rest of the payment within five years,” Waheed said in a press statement. “However, the story of this business transaction was spun in the media, with [outlets] writing ‘Ali Waheed and his wife have bought two houses in Hulhumale’ for Rf9.4 million’ (US$600,000)’ in their headlines.’’

Waheed said the journalists who wrote the articles had “attempted to damage my reputation” by implying to the public that there was “corruption in everything I spend money on.”

“Perhaps that is how journalists and owners of those news outlets got land plots, houses and wealth from previous governments,” he continued. “I will not use a proxy and stay hidden, and will do everything very publicly. For the information of such journalists who get personal with their pens, I will be involved in the real estate business in the future.”

He added that he had joined the MDP “with empty hands” to support government’s efforts to “change an antiquated and weak economy to a modern and robust economy.”

“I see the future of the Maldives very clearly, I can see the flats of flat Dhonbe [phrase used by opposition to mock President Mohamed Nasheed],” he said. “By God’s will, Maldivian citizens will see a better tomorrow than today and Ali Waheed will go boom boom to maximum.”

Waheed won the beachfront house for Rf4.6 million (US$300,000), bidding Rf 3020 per square foot. His wife also reportedly won a house.

Waheed’s former opposition colleague, MP Ahmed Nihan, questioned Waheed’s ability to afford such a property on his MP’s wage. Waheed, he alleged, “was quite a poor boy when we first met him as a DRP MP – that’s why we spoke with a friend and arranged him a house for rent that did not require an advance paid upfront,” said Nihan. “There was no way that Waheed could afford to buy a house in Hulhumale’ for Rf4.6 million unless there was a hand of corruption in it.”

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Maldives Halal-Haram Committee researching Golden Churn Butter

Spokesperson for the Islamic Ministry, Sheikh Ahmedulla Jameel, has said that the Halal-Haram Committee of the Maldives has begun to determine whether ‘Golden Churn Creamy Butter’ contains any unlawful substance in it, after Malaysia’s Islamic Ministry declared that the product contains the deoxyribonucleic acids (DNA) of swine and may be haram for Muslims.

The product is a popular food commodity in the Maldives and found in many local convenience stores.

Jameel said that the Islamic Ministry had received no official information from the Malaysian authorities, and was going by media reports.

‘’The Committee will declare whether it is haram or halal, as it is the committee that determines the status of food products in the Maldives,’’ he said, adding that the Islamic Ministry did not have further information to share on the matter.

Malaysian newspaper reports said the issue came in to light in April 18 when the Johor State Religious Department (JAJ) circulated a memo within its department to alert them of a swine DNA finding in Golden Churn Pure Creamery Butter products.

“There has been much confusion regarding the Golden Churn product. We have released a media statement before stating that the product contains pig DNA but many doubted it,’’ the newspaper quoted the Assistant Islamic Minister Datuk Daud Abdul Rahman saying.

President of Religious NGO Jamiyyathul Salaf Sheikh Abdulla Bin Mohamed Ibrahim said he heard about this incident but did not have any official information on the issue.

”These kind of issues do occur in the Maldives, in many cases these companies produce both types of the same product, one type which is for Gulf countries,” Sheikh Abdulla said. ”But the Maldives have sometimes received stocks produced for the Europe.”

He said the NGO has recently discussed the issue with the Islamic Minister.

”The ministry told us that because the cost of establishing a laboratory was expensive they were were many challenges they faced in solving the issue,” he said.

Andrew Ballantyne, Executive Chairman of the Australian company that produces the butter, Ballantyne Foods, said in a statement that both Ballantyne factories in Australia and New Zealand had been certified halal by halal certification authorities for all the butter brands produced and distributed by the company.

“It is important to understand that each delivery of butter out of Australia and New Zealand carries mandatory quality standards from relevant Government Food Authorities including Food Standards Australia New Zealand (FSANZ), the Australian Quarantine and Inspection Service, (AQIS) and the New Zealand Food Safety Authority (NZFSA) in additional to strict Halal certification requirements. We confirm that our Golden Churn butter complies with the requirements of these authorities,” Ballantyne stated.

“Ballantyne only use high quality milk to make cream that is churned into butter. Ingredients are: cows milk, milk solids (non fat), moisture and 1.5-2 percent salt. No other additions, colours or preservatives are permitted.”

The particular canned butter variety under question in Malaysia had been certified halal by New Zealand Islamic Processed Food Management, “a recognised Islamic authority in New Zealand. NZIPFM is duly accredited by Jakim to certify products that are produced in New Zealand.”

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Public Accounts Committee to dismiss claims against governor

Parliament’s Public Accounts Committee has claimed that a motion of no-confidence against Maldives Monetary Authority (MMA) governor Fazeel Najeeb is baseless.

Haveeru reported that four out of five members of a sub-committee tasked with evaluating the motion had claimed there was no reason for it to go ahead.

President Mohamed Nasheed had sent a letter to the parliament claiming that the MMA was not executing its legal responsibilities, and neither was its governor.

“We didn’t notice anything significant from [the letter] at all to justify a motion of no confidence against him,” a member of the committee told Haveeru.

The committee will review the report from the sub-committee and make a decision next week.

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Release of 47 inmates proceeded “without complaint”, says State Home Minister

State Minister for Home Affairs Mohamed ‘Monaza’ Naeem has told Haveeru that the release of 47 inmates has proceeded “without complaint”, reports Haveeru.

The inmates are part of the government’s ‘Second Chance Programme’, which is sponsoring the rehabilitation and release of 400 inmates into society.

Naeem yesterday told the paper that the inmates are currently undergoing mentor training before entering the job market. This training follows a life skills programme and religious classes.

Inmates were selected for release according to their crime and behavior in jail. Naeem told Haveeru that those convicted of paedophilia, illegal drug trade, gang violence, or who have been offered clemency while in jail, were not included in the Second Change Programme.

Deputy Health Minister Lubna Mohamed Zahir Hussain told Haveeru that the second round of releases has not been scheduled yet.

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STO profits rise 79 percent in first half of 2011

The State Trading Organisation (STO) saw a 79 percent increase in profits in the first half of 2011. STO earned Rf39 million (US$2.5 million) more in the first half of 2011 than in the same period last year.

According to second quarter earnings published by the government company, STO made a half-year net profit of Rf88.4 million (US$5.7 million) this year.

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Family of murder victim demand death penalty

The heirs of Mariyam Sheereen, who was found dead at a construction site in Male’ on January 2, 2010, have asked for the death penalty against the accused.

Under Islamic sharia, the victim’s family or heirs are given a choice to either insist on the death penalty, or to pardon the perpetrator and accept monetary compensation for their loss (Quran 2:178).

According to newspaper Haveeru, Sheereen’s heirs appeared in court yesterday and demanded the death penalty be enforced against Mohamed Najah, Sheereen’s former boyfriend.

Following the investigation, police revealed at the time that her body was put into a small suitcase and transported to a construction site by taxi cab.

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Brand of butter commonly used in Maldives declared non-halal by Malaysia

The Islamic Development Department of Malaysia has declared the ‘Pure Creamery Butter-Golden Churn’ as non-halal (forbidden under Islamic sharia). The brand, widely used in the Maldives, was found to contain pig DNA.

According to media reports, the department’s director general explained that the product was the same brand that had been previously banned but had been brought into the country by different importers.

Meanwhile, local daily Haveeru reports Ibrahim Arif from the Olympia Shop as insisting that the New Zealand company that manufactures the butter had guaranteed it was pig-free.

“The company has denied the reports as baseless. As the company has guaranteed [that the product is free from pig DNA], we have recently placed an order worth US$100,000,” he said.

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