Day: August 29, 2011

Eid ul-Fitr prayer to be held from Islamic Centre to Jetty 1

The Ministry of Islamic Affairs will conduct the Eid ul-Fitr prayer in the area extending from Islamic Centre to the President’s jetty in order to accommodate the larger numbers of expected attendees.

The Ministry’s Assistant Director Ahmedulla Jameel told Haveeru that carpet would be spread to allow people to pray, and that separate areas would be provided for men and women.

“We request men not to occupy the space allocated for the women to pray in,” he told the paper.

Women will be allowed to pray in the area near the Dhiraagu head office.

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Goods and services tax bill passed with 40 votes

Parliament today passed the Goods and Services Tax (GST) bill, a key piece of legislation in the government’s 18-bill economic reform package, with 40 votes in favour and 30 against.

Of the 71 MPs present and voting, only one abstained. Jumhooree Party Leader Gasim Ibrahim and Independents Ali Mohamed, Ahmed ‘Sun Travel’ Shiyam, Mohamed Zubair, Ahmed Amir and ‘Kutti’ Mohamed Nasheed joined the ruling Maldivian Democratic Party (MDP) in voting for the bill.

After today’s sitting, parliament breaks for a one-month recess before returning in October for this year’s final session.

The new sales tax will come into force a month after the legislation is ratified by the President and published in the government’s gazette.

While the GST is set at 3.5 percent this year, it will rise to six percent from January 2012. Utilities, health services, public education, telecom services, petrol, cooking oil and diesel are among items exempt from the tax.

The GST will be applicable to businesses whose total goods and services offered over a year exceeds Rf 1 million (US$65,000).

In addition, the legislation will raise the existing Tourism Goods and Services Tax (T-GST) to six percent in January 2012 and eight percent in January 2013.

“Undue burden”

During today’s final debate, opposition MPs argued that local businesses would not have enough time to prepare to pay the GST and that necessary improvements in records keeping would be an “undue burden” on small businesses.

Prominent businessmen and resort owners, such as Jumhooree Party (JP) Leader Gasim Ibrahim and Independent MP Ahmed ‘Sun Travel’ Shiyam, criticised the bill and suggested that the introduction of the GST should be delayed. Both MPs however voted for the bill.

In a booklet handed out to media yesterday, the main opposition Dhivehi Rayyithunge Party (DRP) noted that the General GST would affect small businesses such as cornershops, cafes and teashops, which would “need a lot of preparation” to maintain accounts, install “modern computer systems and hire accountants” as well as provide customer’s statements showing the GST percentage.

Morever, taxing “total value of business transactions” would not be possible with GST at zero percent for some items.

Considering the potential “administrative confusion” and the country’s heavy reliance on imports, the DRP argues that levying a customs duty at the entry point to the country was more effective.

“Eid gift”

Speaking at a press conference after today’s vote, MP Ibrahim ‘Ibu’ Mohamed Solih, Maldivian Democratic Party (MDP) parliamentary group (PG) leader, noted that as a result of amendments proposed by opposition MPs to exempt cooking oil, petrol, diesel and telecom services from the GST, the government would face a projected revenue shortfall of Rf167 million (US$10.8 million) this year and Rf274 million (US$17.7 million) in 2012.

“Budgeted funds for development projects are going to be lost because of [the amendments],” he said. “As a consequence, the government will have to either push back or revise some development projects.”

MP Mohamed Aslam, deputy PG leader and chairman of the Economics Committee, said that the passage of the GST bill was “an Eid gift to the Maldivian people.”

Aslam explained that the GST alone would account for Rf2.7 billion (US$179 million) in tax revenue for 2012.

Deputy PG leader Ahmed Sameer meanwhile accused opposition MPs of “trying to cut off sources of income for the government” while supporting bills that would increase expenditure in a bid to sabotage the government’s efforts to balance the budget.

On proposed amendments to the Export-Import Act to excise and reduce import duties for most items, Ibu Solih said that the amendment bill had been reviewed by committee and sent to the Speaker.

“I think it was not included in today’s agenda because there was no time. It’s an administrative matter that is up to the Speaker,” he said.

A source at the President’s Office told Minivan News yesterday that the GST was intended to replace custom duties and crossover would see the same commodities being taxed twice.

Ibu Solih explained that the party expected the amendment bill to be passed in the first week of the next session before the GST is collected: “So there would be only two or three days difference [between enactment of the laws] and we believe it would become adjusted,” he said.

The MP for Hinnavaru also disputed a claim by the DRP that the government refused to accept a suggestion to delay the implementation of the tax by three months.

Following “technical level” consultations with the government after President Mohamed Nasheed signalled willingness to incorporate changes recommended by the opposition, the DRP however declared it would issue a three-line whip for its members to vote against the GST bill.

The announcement was made after a number of DRP MPs voted last week to approve the bill with amendments brought by the full Majlis committee.

“We have said that we will consider amendments proposed by opposition parties, but even up to the last moment, no opposition MP spoke to us about possible amendments,” Ibu Solih said, adding that the MDP proposed “sitting down at the table to discuss any changes.”

However the DRP did not discuss delaying the enactment of the GST legislation before submitting an amendment to the Majlis floor during the final committee stage.

“I believe if we are to discuss between two parties to reach a decision, the discussions should take place before the amendment is proposed,” he said.

“We sat together and brought amendments to the Export-Import Act and took the GST bill together with MPs from both sides at the table. It passed the sub-committee after both sides agreed. Because of the amendments to the Export-Import Act, government revenue will be reduced substantially. We were able to agree that we’d make up for it with the GST in a fair manner. But when it is proposed to reduce revenue to the state from both bills, we can’t support that.”

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Independent MP Ismail Abdul Hameed found guilty of corruption, banished

The Criminal Court today sentenced Independent MP for Kaashidhoo, Ismail Abdul Hameed, to one year and six months banishment after he was found guilty of corruption.

Banishment is a traditional punishment in the Maldives in which those sentenced are forbidden to leave a designated island.

The Prosecutor General pressed corruption charges against Hameed alleging that he had abused his authority as the former Director of Waste Management at the Male’ municipality to financially benefit a Singaporean company named Island Logistics in a deal to purchase a barge.

According to local media reports, Judge Abdulla Didi noted in the verdict that the agreement stipulated the barge was to be delivered within 90 days of signing the agreement, upon which 50 percent of the value was to be paid to Island Logistics.

Although the barge arrived in the Maldives on October 23, 2008, Hameed had however signed a document claiming that the barge was delivered on schedule on April 28, 2008.

The judge ruled that Hameed’s actions were intentional and in violation of the Anti-Corruption Act.

Under article 73(c)(3) of the constitution, MPs found guilty of a criminal offence “and sentenced to a term of more than twelve months” would be stripped of their seat.

Article 78 of the constitution meanwhile states that “whenever there is a vacancy among the members of The People’s Majlis, an election shall be held within sixty days from the date of the vacancy. A by-election shall not be held within six months prior to a general election.”

Deputy Elections Commissioner Hassan Fayaz told Minivan News that the Elections Commission (EC) will commence work to hold the election of the vacant seat when the parliament officially informs the commission that a seat is vacant.

“If a seat is vacant the commission will hold the election to elect a member, but the parliament haven’t officially informed the commission about a vacant seat,” he said. “I think it will take some time because he has the right appeal the verdict in superior courts.”

However, according to media reports, Hameed has not indicatated that he will appeal the verdict at the High Court or not. The MP for Kaafu Atoll Kaashidhoo was not present for today’s vote on the government’s Goods and Services Tax.

Hameed had voted with the ruling Maldivian Democratic Party (MDP) in most votes during the past two years.

Speaking at a press conference today, ruling Maldivian Democratic Party (MDP) Chairperson ‘Reeko’ Moosa Manik criticised the judiciary and accused the Criminal Court of imposing double standards on MPs facing court cases.

Moosa claimed that Deputy Speaker Ahmed Nazim of the opposition People’s Alliance (PA) had dodged court summons eight times.

When Nazim finally appeared at court, said Moosa, the court barred journalists from observing the trial.

“If a parliament seat becomes vacant in any constituency of the Maldives, God willing, we at the MDP will do everything we can to win the seat,” he said.

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Concerned citizens protest 1800 percent increase in MP salaries since 2004

A group of concerned citizens, many of them also members of local non-government and civil society organisations, protested outside parliament today against the recently proposed increase in parliamentary committee members’ allowances, and lump sum back payments of Rf 140,000 (US$9100).

Leaflets scattered across parliament grounds highlighted that MPs were earning Rf 82,500 (US$5350) a month in 2011 compared to Rf 4500 (US$290) in 2004, an effective 18-fold increase.

“Parliament members already have a salary of Rf62,000, and to give them more money in this way is not necessary,” said NGO Transparency Maldives Project Coordinator, Aiman Rasheed. “We feel that giving this allowance for a whole year, and during months when Parliament isn’t even in session, is unacceptable.”

Police had blocked roads close to parliament this morning, and were waiting when protesters appeared at 1:15 pm. Approximately 25 citizens attended the protest, and were quickly penned into a side street away from the building.

Protesters waved poster boards and passed a megaphone for rally calls. However MPs avoided the protest by leaving the building through the back door.

Rasheed said Transparency had been told that if 39 of the 77 MPs refused  the allowance, the Public Accounts Committee, which proposed the raise, would submit a motion to reconsider the proposal.

“Most of the people we’ve spoken to have said they would not accept the motion,” said Rasheed.

Local NGOs and CSOs protested the raise near the tsunami memorial last Saturday, August 27. Assembling at 4:30 pm, representatives distributed fliers showing the steep rise in MP allowance rates.

“MPs do not need to be paid more money to do committee work!” read the flyer. “It is the duty of MPs. It is one of the most important responsibilities that has to be carried out by MPs.”

Saturday’s protest made use of Male’s nightly motorcycle circuit of the city to reach a large percentage of the population.

Today’s significantly smaller turnout may be a side effect of the end of Ramadan and the start of Eid, which begins tomorrow August 30. Reports say that many boats have already left Male for other islands.

The deadline for voting on the proposed allowance is 6 September. As of today, 17 MPs have said they would not accept it.

They include: Mohamed Gasam, Ibrahim Rasheed, Hamid Abdul Gafoor, Mariya Ahmed Didi, Mohamed Nazim, Illyas Labeeb, Mohamed Aslam, Ahmed Sameer, ‘Reeko’ Moosa Manik, Hussein Waheed, Alhan Fahmy, ‘Colonel’ Mohamed Nasheed and Eva Abdulla of the ruling Maldivian Democratic Party (MDP) along with Speaker Abdulla Shahid and Independent MP Mohamed ‘Kutti’ Nasheed.

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DQP MP Riyaz Rasheed attacked, party alleges

The Dhivehi Qaumee Party (DQP) has alleged that DQP MP Riyaz Rasheed was attacked last night while he was on his way home after attending a meeting.

A crowd gathered around Riyaz’s car demanding he get out of it, and assaulted him when he did so, Haveeru reported.

DQP today issued a press release saying it “was possible” that Maldivian Democratic Party (MDP) Chairperson and MP ‘Reeko’ Moosa Manik “was behind the attack”.

“The fact that the attack came a few days after former MDP Parliamentary group leader Moosa gave a warning to Riyaz, it is possible that the attack has some connection with the warning,” the DQP claimed.

DQP said that Riyaz Rasheed was the MP who had submitted “the most number of bills to the parliament,” an MP that had been “criticising the government publicly” and that there had been “many attempts made to silence his voice.”

“The government has repeatedly attempted to stop Riyaz from his work against corruption in this government, by trying to bribe him, threatening him and by torturing him,” the DQP alleged.

Meanwhile, MDP Chairperson and MP Moosa Manik said he believed that DQP Dr Hassan Saeed was behind the attack “if they are blaming it on me.”

“Dr Hassan Saeed and Riyaz have been disturbing me and my family for a long time,” Moosa said. “And because that does not satisfy them, they are now blaming me for this.”

Moosa said he had “never attacked anyone physically or mentally.”

“I call on the police to investigate and find out on what grounds they are making this accusations on me,” he said.

Police Sub-Inspector Ahmed Shiyam said the matter had been reported to police, who were investigating.

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Government nominates, shuffles ambassadors

The President’s Defence Advisor, Amin Faisal, has been nominated for the post of Maldives Ambassador to India, Haveeru reports. Faisal was nominated to replace current Ambassador to India Abdul Aziz Yousuf.

Bangladeshi Ambassador Ahmed Sareer was also nominated as the Maldives’ Ambassador to the US, while the Ambassador to Singapore, Mohamed Haleel, was nominated for the Maldives’ ambassador post in Bangladesh.

Deputy Ambassador to Singapore Ibrahim ‘Mody’ Didi has been promoted to the ambassador post in Singapore. Ahmed Rasheed of Karankaage/Shaviyani atoll Maaugoodhoo was nominated as the Maldives Ambassador to United Arab Emirates (UAE).

A complete list of nominations was sent to the parliamentary National Security Committee today, Haveeru News reports.


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State funeral held for late Corporal Shaukath

A state funeral was given last evening in Raa atoll Alifushi for the corporal who was shot dead during a training exercise yesterday at Laamu atoll Kadhoo. The funeral was attended by the corporal’s family, state officials and heads of the armed forces, reports Haveeru News.

The body of Corporal Ibrahim Shaukath, 32 of Shabaana/Raa atoll Alifushi was buried at the island’s cemetery following the Taraweeh prayer, said during Ramadan, and a seven-gun salute.

President Mohamed Nasheed yesterday sent his condolences to the corporal’s family, and assured the late Shaukath’s father that a full investigation of the incident was underway.

The President told Shaukath’s father that he was “deeply shocked and saddened” when told of the incident.

Shaukath was completing Body Guard training in preparation for November’s South Asian Association for Regional Cooperation when he was shot in the head in the late morning of Sunday, August 28. Military officials have said the soldiers were using live ammunition, and that it was not unusual.

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Heavy Load wins land reclamation contract

Heavy Load Maldives has been awarded the land reclamation contract at Hulhumalé following disputes yesterday with GMR, reports Sun Online. A new terminal will be constructed on this site for GMR Ibrahim Nasir International Airport.

GMR declined to reveal the contract value, but confirmed that Heavy Load had received the contract. The project was allegedly delegated to GMR Airport Development Limited, a subsidiary of GMR, before it was awarded to Heavy Load.

The project budget was set at US$20 million, reports Sun.

The first phase of the project is said to reclaim 50 percent of the designated land area. In this phase, one million cubic metres of land area would be carved out of the ocean.

GMR reportedly said that harbour construction has not yet been delegated to any company.

Heavy Load Maldives is a company owned by Moosa ‘Reeko’ Manik, the Interim Chairperson of the ruling Maldivian Democratic Party (MDP).

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Flat construction begins on Gaakoshi plot in Male

Part of the Maldivian Democratic Party’s (MDP) camp office on Gaakoshi in Male’ has been annexed by the Housing Ministry to make way for flats as part of the government’s housing program, reports Haveeru.

The plot of land had been leased to the party until work was to begin on the flats, Deputy Housing Minister Mohamed Faiz told Haveeru.

Haveeru reported that the office has now been dismantled and walls demolished.

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