Day: October 2, 2011

MMC members received almost Rf 1 million in illegal “living allowances”, finds Auditor General

Members of the Maldives Media Council (MMC) have been illegally receiving a living allowance of Rf 7500 (US$500) in addition to their monthly salaries, according to an audit report for the year prepared by the Auditor General’s office.

The Auditor General’s report noted that the article 19[a] of MMC Act states that salaries of Council’s Chair, Vice Chair and members shall be determined by the parliament, and that the salary for the council member determined by the parliament on January 2011 was Rf 8000 (US$533) for the Chair of the Council, Rf 6500 (US$433) for the Vice Chair, and Rf 5000 (US$333) for each council member.

The report observed that council members started receiving the allowance on January 20, 2011, after the Chair of the Council sent a signed memo to the council’s corporate affairs unit.

The Auditor General at the time was aware of the matter and forwarded the case to the Anti-Corruption Commission (ACC) and on February 17, 2011, the ACC sent a letter to the council asking it to stop claiming the allowance until the ACC concluded the case.

‘’On February 20, the council members held their 7th meeting of the year and in the meeting all members voted that there was no reason why the council should follow instructions as in the letter sent by the ACC,’’ the audit report noted.

On April 20 council members decided not to receive the allowance, after they were asked by ACC to discontinue a second time. The MMC then sent letters to council members asking them to return the amounts they had received as living allowances – by now a total of almost a million rufiya, in addition to their salaries.

According to the Auditor General’s report, the council members did not receive the living allowance for six months from May to August. However a lump sum for six months worth of the living allowance sum was included in council members’ salaries for August – a total of Rf 45,000 (US$2900) for each council member.

The report also stated that by the end of August the council had spent a total Rf9 00000 (US$60,000) on paying members living allowances.

The Auditor General’s report stated that the living allowance was an illegal expense, despite parliament approving the MMC’s budget including the allowance, and noted that the MMC had behaved inappropriately for an institution that was required by nature to have the trust and confidence of the public.

Chair of the MMC Mohamed Nazeef told Minivan News that the issue “had been solved”, and that “some” of the council members had now returned the money they received as living allowances.

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Gan hosts international storm research team

The Maldives will host the first in-depth study of equatorial tropical storms between the Maldives and Papua New Guinea, conducted by two dozen research organisations from 16 countries and based on Gan in Addu Atoll.

The team will use airplanes, ships, radars, and approximately 1,500 weather balloons to study the birth, life and death of tropical storms along the equator, particularly the Madden-Julian Oscillation (MJO). These storms affect weather world wide.

Maldives Meteorology Services (MMS) are local sponsors of the project, which was designed by the US Energy Department’s Atmospheric Radiation Measurement (ARM) climate research facility. MMS is providing local weather knowledge, meeting and operations space, and facilities; researchers in turn will offer training on radar and other instrumentation to local meteorologists.

According to the ARM facility, MJO dominates “tropical intraseasonal variability” but few climate models are able to predicts its effects. “AMIE-Gan will measure the area where the MJO begins its eastward propagation, observing the atmosphere, ocean, and air-sea interface,” the facility states.

The MJO affects regional weather patterns such as the Asian and Australian monsoons. Initiating every 30 to 90 days, it can also contribute to hurricane activity in the northeast Pacific and Gulf of Mexico, as well as trigger torrential rainfall along North America’s west coast.

MJO can also affect the periodic warming of the Pacific Ocean known as El Nino, which disturbs rain patterns.

MMS Deputy Director General Ali Sharif said the Maldives was strategically chosen.

“The Maldives was selected because the team is looking for the weather phenomenon Madden-Julian Oscillation. The team chose Addu because it is the closest location to the equator in the Maldives.”

The project’s main observation sites will be based in the Maldives, Diego Garcia, the maritime continent, and Manu Island. The Maldives’ Super Site with a majority of radar equipment will be at Gan, and research ships and aircraft will operate in the Indian Ocean as well.

Radar and other equipment have been set up along an 8 kilometre path in the atoll. A meteorological array will use seven different frequencies to scan clouds and precipitation from the Super Site at Gan.

Results gathered at Gan under the AMIE-Gan project will complement results gathered at Manus under the AMIE-Manus project to “allow studies of the initiation, propagation, and evolution of convective clouds within the framework of the MJO,” ARM states.

Sharif said the project could add valuable knowledge to regional climate change.

“It is becoming more important  to understand how oceans regulate the earth’s temperature.” Sharif added that the Maldives temperatures have seen a minor “rising trend.”

The AMIE project is operating under the Pacific Northwest National Laboratory (PNNL), a facility of the U. S. Department of Energy. AMIE team leader Chuck Long said conditions in the Indian Ocean remain relatively mysterious.

“The MJO fires up primarily in the Indian Ocean during winter in the northern hemisphere, covering an area several thousand kilometers across. It moves eastward and when it hits the maritime continent — all those islands in Southeast Asia, it weakens. Why?” asked Long. “And why does it initiate in the Indian, not in the equatorial Atlantic or Pacific? What is so special about the conditions in the Indian Ocean? These are some of the questions we must answer to understand the MJO and represent it in forecast and climate models.”

AMIE will be working with two other research collaborations during this Indian Ocean campaign, Dynamics of the Madden-Julian Oscillation (DYNAMO) and Cooperative Indian Ocean Experiment on Intraseasonal Variability in the Year 2011 (CINDY). DYNAMO’s team is being led by the University of Miami. CINDY is an overarching international effort and is being led by the Japan Agency for Marine-Earth Science and Technology.

Research staff and/or facilities have been contributed by Australia, China, France, India, Indonesia, Japan, Kenya, South Korea, Maldives, Papua New Guinea, Seychelles, Singapore, Sri Lanka, Taiwan, the United Kingdom, and the United States. US scientists, students, engineers, and staff from 16 universities and 11 national laboratories and centers are participating in the field campaign.

The investigation experiment (AMIE) is scheduled to start in October and run through March 2012. Opening ceremonies on October 8 will celebrate the international cooperation behind the project, which PNNL said will lead to a better understanding of Earth’s climate.

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Opposition launches campaign against income tax

The opposition Dhivehi Rayyithunge Party (DRP) launched “a special campaign” yesterday against the introduction of a personal income tax in the Maldives.

Speaking at a press conference at private broadcaster DhiTV, DRP Leader Ahmed Thasmeen Ali said that “the purpose of our campaign is to undertake efforts to inform citizens as broadly as possible of the effect of [the introduction of income tax].”

“Considering the state of the country today, economic growth has been considerably stalled,” he said. “The base for income tax – the tax base – is very small. If you look at the tax brackets, the number of people who have to pay income tax is very low. This is because our development has not reached that level and most citizens are not wealthy. This is something we have to consider before introducing such a tax.”

The consequences of levying a personal income tax under the prevailing economic circumstances would be reduced investment, slowed economic growth and worsening unemployment, Thasmeen argued.

As the number of people who earn Rf150,000 (US$9,700) a month are quite few, said Thasmeen, an additional tax burden would discourage them from investing and incentivise down-sizing or cost-cutting measures, such as layoffs, in their businesses.

In August, the party issued a booklet titled “DRP’s response to the government’s economic nuisance package” noting that all citizens would have to file tax returns.

“The charts of the government’s fiscal and economic nuisance package show Rf300 million will be received in 2012 from income taxes and 475 million in 2013,” it reads. “Instead of making all citizens file tax returns in order to earn 475 million two years after taxes are introduced, it would be far better to reduce the government’s useless expenditure by that amount.”

Thasmeen meanwhile asserted that administrative costs for collecting the income tax would be prohibitive: “MIRA [Maldives Inland Revenue Authority] has not revealed the figures yet, but we believe that will be a surprisingly high amount,” he said.

Following a meeting with Thasmeen in August to discuss the government’s economic reform bills currently before parliament, President Mohamed Nasheed told press that the minority leader of parliament had expressed concern with the personal income tax.

While the government was open to suggestions of lowering or reviewing the proposed tax rates, Nasheed said at the press conference following the meeting that financial experts had advised the government that an income tax was necessary for the tax regime to function as a whole.

Progressive taxation

Presenting the draft income tax legislation to parliament on July 18, MP Ilyas Labeeb of the ruling Maldivian Democratic Party (MDP) said that the purpose of the economic reform package was shifting away from custom duties in favour of direct taxation in the Maldives for the first time.

“Income tax will be taken from individuals whose total monthly income from their salary or other sources exceed Rf30,000 (US$1,900),” Labeeb explained. “The tax will be taken from income above that amount.”

All citizens and non-citizens who earn their income in the Maldives will be eligible for the tax. For naturalised citizens and residents, income earned abroad will be taxable as well.

Ilyas explained that the income tax would be progressive and divided into five tax brackets, whereby people with higher income would pay higher rates.

The tax rates are set at three percent for monthly incomes between Rf30,000 to Rf40,000; six percent for incomes between Rf60,000 and Rf100,000; nine percent for incomes between Rf100,000 and Rf150,000; and 15 percent for Rf150,000 and higher.

The legislation specifies 15 sources of income that would be considered taxable, Ilyas continued, while Zakat funds (alms for the poor), pension contributions, interest payments and capital allowance or investment would be exempt from taxation.

Individuals would meanwhile be required to submit an annual personal income tax statement.

If passed, the income tax law will come into effect on January 1, 2012.

Ilyas observed that the introduction of a 3.5 percent tourism goods and services tax (TGST) in January this year had revealed that the country’s GDP per capita was closer to US$4,060 than the previous estimate of US$2,840.

“We learned that the Maldivian economy is such that each citizen should get close to Rf5,000 (US$300) a month,” Ilyas said. “[But] the country’s wealth is shared by disproportionately few people. One in four people do not make even Rf1,000 (US$60) a month.”

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Maamigili MP opens first private airport with personal airline Flyme

The Maldives’ first private airport opened today in Alif Dhaal atoll Maamigili with Maamigili MP Gasim Ibrahim’s own ‘Flyme’ airline beginning operations from Male.

The first commercial ‘Flyme’ flight left Male this morning with 16 tourists, Gasim, his family, and senior Villa officials on board, Haveeru reports. The airline has two aircraft with a capacity of 46 passengers each.

Maldives Association of Tourism Industries (MATI) is said to have provided support for the airport’s construction. Gasim said the airport includes private jet parking, and there are plans to use more aircraft to service Gaaf Dhaal atoll Kaadehdhoo and Seenu atoll Gan.

CEO of Ibrahim Nasir International Airport, Andrew Harrison, has expressed support for the airline.

Flyme airlines scheduled 10 flights for its opening day, however it did not disclose ticket prices.

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Dhiraagu re-registered as public limited company

Telecommunications company Dhiraagu has re-registered as a public limited company (Plc).

The company actively took the name Dhivehi Raajjeyge Gulhun Plc, however it will continue to use the brand name Dhiraagu.

Dhiraagu is one of the largest telecommunications companies in the Maldives, along with Wataniya. It is also one of the country’s most profitable companies.

On 24 August this year, the Maldivian government revealed a plan to turn over one-third of its shares in Dhiraagu to the public. The sale was expected to generate Rf 1.46 billion (US$95 million).

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Traders employees de-litter jetties 6, 7 for World Tourism Day

Traders Hotel Male’ employees welcomed World Tourism Day by cleaning jetties six and seven and surrounding areas last Tuesday, September 22.

The fifty employees who participated used brooms, gloves and bags to accomplish their mission. The team collected ten bags of litter from the streets and marine areas.

Traders Hotel said the activity “aimed to increase the awareness of the employees and local community about the importance of protecting the environment for a better quality of life. It also reinforced the hotel commitment to serve as a good steward of the environment.”

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Merciel signs 10 year contract to operate Vashafaru power facility

Merciel International (Maldives) Pvt Ltd (MI-M) has signed a 10-year contract with Vashafaru Island Council in Haa Alif Atoll to operate the island’s power facility under the government’s public-private partnership program.

Country Director of Merciel Ali Hashim and President of Vashafaru Island Council Abdulla Zahir signed the contract at a ceremony this morning.

In a statement, Merciel noted that MI-M has become the first and only private utility company in the Maldives.

“So far, utility services have been provided in the islands by the state-owned corporations or local NGOs,” the company noted.

“MI-M was awarded the power station’s operation after its proposal was selected as the best proposal submitted in response to a public Request for Proposals (RFP) announced by Vashafaru Island Council in July 2011.”

MI-M is a subsidiary of a

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Himandhoo, Fuvahmulah by-elections scheduled for November 19

The Elections Commission (EC) has announced by-elections to replace vacant council seats in Alif Alif Himandhoo and Gnaviyani Fuvahmulah for November 19 and invited potential candidates to apply before October 16.

Councillors of the ruling Maldivian Democratic Party (MDP), Hassan Saeed from Fuvahmulah and Abdulla Jameel from Himandhoo, lost their seats after the Supreme Court ruled last week on cases contesting their eligibility to compete in the February council elections.

The Supreme Court ruled that Hassan Saeed had a decreed debt that he was not paying back in accordance with a lower court verdict while Abdulla Jameel had been convicted of theft. Both were disqualified under article 12(c) of the Local Council Elections Act.

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Fifteen suspected drug kingpins loose, President reveals

Some 15 suspected drug kingpins arrested on charges of drug trafficking are loose in society and “there’s no way to even know when they will face trial,” President Mohamed Nasheed revealed in his weekly radio address on Friday.

Speaking from Dhidhoo in Haa Alif Atoll during a tour of Thiladhunmathi, President Nasheed expressed concern with suspects in high-profile cases released from detention while they were awaiting trial.

“Since the Prosecutor General’s Office (PGO) can only press charges after the investigation is complete, a long period [spent on investigation] provides the opportunity to influence witnesses, change their testimony and produce false testimony,” he explained.

Among other main challenges for securing convictions, said Nasheed, “it is also a problem when scientific and other kinds of evidence has no weight due to the absence of rules or guidelines to assess evidence presented to trial and the crime is not proven in major cases.”

Moreover, he continued, suspects arrested with large amounts of cash were not required to account for the money while Criminal Court judges often issued inconsistent rulings in similar cases.

As drug-related cases are heard only by the Criminal Court in Male’, Nasheed observed that a large backlog of cases was pending and “[suspects] have the opportunity to repeat the offence until the trial date”.

He added that it was important to amend the law to allow island courts to try local drug dealers.

The Criminal Court meanwhile issued a two-page press release the day after the President’s remarks dismissing criticism of the courts as having “no legal weight” and stating that “trying to shift the blame to another every time you are faced with something is not responsible.”

The constitution assured all citizens the right to be considered innocent until proven guilty, the Criminal Court statement noted, “therefore all should believe that everyone brought before the court on suspicion of committing a crime cannot be detained and that everyone who faces criminal charges cannot be found guilty.”

The court also noted that lower court rulings, court orders and verdicts could be appealed at the High Court.

“The court does not consider the seriousness of the allegations against a person,” it reads. “The court considers the evidence presented against the person. Submitting evidence is not something the court does. What the court does is assess and weigh the evidence presented.”

The Criminal Court referred to article 49 of the constitution, which states that, “No person shall be detained in custody prior to sentencing, unless the danger of the accused absconding or not appearing at trial, the protection of the public, or potential interference with witnesses or evidence dictate otherwise. The release may be subject to conditions of bail or other assurances to appear as required by the court.”

The court also reiterated a recurring complaint that according to court records a number of suspects brought before the court had previously been sentenced to long jail terms and “no authority of the state could prove that even one of these people had been released to society on a Criminal Court order.”

Top six

Speaking to islanders of Dhevvadhoo on May 2, 2009, President Nasheed said that the identities of the top six drug dealers in the country were known to the government.

However, he added that the arrests would be viewed as politically-motivated because they included members of the opposition. Nasheed’s remarks were made a week before the parliamentary elections.

Press secretary Mohamed Zuhair told Minivan News at the time that arresting the six would effectively stop the supply of narcotics into the Maldives.

Of the six, who were responsible for “budgeting, importing and distributing” drugs, some had fled the country, he said, and Interpol had been notified.

Meanwhile, according to police statistics, the number of reported drug-related cases declined in 2010 from 2,484 in 2008 and 2,366 in 2009 to 1,618 last year. The Drug Enforcement Department (DED) investigated and forwarded 844 cases for prosecution.

However overall conviction rates were low – of the 17,854 cases closed in 2010, 3323 were sent to the PGO. Of these, 1108 were sent back and 776 ended in convictions. Only 75 convictions were recorded from cases begun in 2010.

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