Day: November 6, 2012

STO obtains US$32 million loan facility for construction of five-star hotel in Hulhumale’

The State Trading Organisation (STO) and Export-Import (EXIM) Bank of Thailand co-signed a US$32 million syndicated loan agreement on October 30.

Under the agreement, Exim Thailand and Bank of Maldives will jointly finance STO’s construction of the 5-star, 250-room Radisson Blu Hotel in Hulhumalé.

In a press release yesterday (November 5), STO revealed that according to the agreement 85 percent of the loan must be paid to contractors from Thailand or used to purchase construction material and equipment from Thailand.

The disbursement of the loan is to begin in 2013.

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Government entertainment company to be dissolved

The government has decided to dissolve the 100 percent government-owned Maldives Entertainment Company Ltd (MECL) and made an announcement on Thursday seeking a liquidator.

The announcement invited interested parties to submit proposals before November 27.

According to the terms of reference for the liquidation, the government “decided to liquidate the company, given the level of engagement by the private sector in the development of the industry, and to allow their maximum engagement in the development of the industry.”

In June 2011, the Anti-Corruption Commission (ACC) discovered irregularities and discrepancies in the entertainment company’s finances.

“Even though records of expenditure were kept, the figures in the records and the actual amount withdrawn from the [corporation’s] bank account differs,” the ACC found.

“While company records show that MVR676,262.95 (US$43,800) was spent, the bank account showed that MVR807,703.95 (US$52,300) was withdrawn for expenses. Therefore, MVR134,470 was withdrawn from the bank without any record [of how the money was spent].”

Discrepancies in income statements meanwhile revealed that MVR524,121 (US$33,900) worth of income was not entered into QuickBooks (accounting software) records.

Moreover, as a result of the corporation’s spending exceeding its revenue, MECL had outstanding debts amounting to MVR122,178.98 (US$7,900), owed to various parties for purchases and services as of June 2011.

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Hulhumale’ Magistrate Court suspends all cases

The Hulhumale’ Magistrate Court has announced that it has suspended all ongoing cases following an injunction issued by the High Court on Sunday halting the trial of former President Mohamed Nasheed.

The High Court granted the temporary injunction or stay of the former President’s trial pending a ruling on procedural points raised by Nasheed’s legal team, which included the legitimacy of the Hulhumale’ Magistrate Court.

In its announcement on Monday, the Hulhumale’ Magistrate Court said it has suspended proceedings on cases involving marriage, divorce, guardianship, family matters, property lawsuits, civil cases, criminal cases involving extension of detention periods as well as other matters that could be affected by the questions raised over its legal status.

Meanwhile, at Sunday’s hearing of Nasheed’s appeal at the High Court, the Judicial Service Commission (JSC) revealed that it had filed a case at the Supreme Court to determine the legitimacy of the court.

Writing in his personal blog last month, Independent MP Mohamed ‘Kutti’ Nasheed explained that a magistrate court could not legally be established at Hulhumale’.

The Judicature Act states that magistrate courts should be set up in inhabited islands aside from Male’ without a division of the trial courts (Criminal Court, Civil Court, Family Court and Juvenile Court).

According to appendix two of the constitution, Hulhumale’ is a district or ward of Male’ and not a separate inhabited island. The former magistrate court at Hulhumale’ – controversially set up by the JSC before the enactment of the Judicature Act in October 2010 – should therefore have been dissolved when the Judicature Act was ratified.

Meanwhile, local media reported yesterday (November 5) that the Supreme Court ordered the Civil Court to send over all files and documents on a case submitted by a lawyer, Ismail Visham, over a year ago challenging the legitimacy of the Hulhumale’ Magistrate Court.

The Supreme Court had issued a writ of mandamus ordering the lower court to suspend its hearings and had taken over the case. The apex court had however not conducted any hearings on the case.

A court official told local media that a hearing on the case of the Hulhumale’ Magistrate Court’s legal status has not been scheduled.

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CCHDC allays fears of disease outbreak

The Centre for Community Health and Disease Control (CCHDC) has allayed fears of an outbreak of diseases in islands affected by flooding caused by heavy rainfall last week.

At a press conference on Sunday, Fathmath Nazla Rafeeq, officer in charge at the CCHDC, said the biggest threat was the spread of diarrhea caused by damaged sewage systems in islands hit hardest by the flooding.

She revealed that there was an outbreak of fever in the island of Kelaa in Haa Alif atoll. The centre has supplied chlorine and medicines to the island in the northernmost atoll, she added.

Nazla also appealed to the public to be wary of the spread of dengue by taking measures to prevent mosquito breeding.

Meanwhile, the Maldives Red Crescent sent teams of volunteers to Haa Alif Hoarafushi, Haa Dhaal Hanimaadhoo and Laamu Gan reportedly to provide information on prevention of communicable diseases and managing hygiene.

The teams will also participate in cleaning up efforts, the Red Crescent said in a press release, including 45 trained volunteers working at Hoarafushi to assess the cost of damages caused by severe flooding.

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Auditor General, ACC Chair dismiss Attorney General’s delay allegations over GMR issue

Auditor General Niyaz Ibrahim and Anti-Corruption Commission (ACC) Chair Hassan Luthfy have dismissed claims by Attorney General Azima Shukoor last week that the government was awaiting completion of investigations by the independent institutions before making a decision on annulling the concession agreement with Indian infrastructure giant GMR, to develop and operate the Ibrahim Nasir International Airport (INIA).

“I would like to point out that the Anti-Corruption Commission still hasn’t finished the complete investigation into the GMR matter. This also presents difficulties for us,” Azima said at a press conference last week.

“I have met with the heads of ACC and Auditor General two, three times. I can’t say anything about the investigations. But I haven’t heard back anything after I shared the information I had available with them.”

However, ACC Chair Hassan Luthfy told newspaper Haveeru yesterday that he did not believe that the government was awaiting the completion of the ACC investigation to take action.

Luthfy said that the government had failed to take action on corruption cases investigated by the ACC and forwarded for prosecution.

“Hence in reality this is blaming someone else while failing to undertake their own responsibilities. I do not think that a party [government] who cannot take action over our previous findings on inquiries can take action in this [GMR] case,” Luthfy was quoted as saying.

Luthfy told Minivan News in September that the investigation could “take some time.”

Auditor General Niyaz Ibrahim meanwhile told state broadcaster Television Maldives (TVM) yesterday that he “could not accept” the Attorney General’s claim.

“If the government believes the agreement should be annulled, the government has the discretion or powers to do so,” he said. “The work of the Auditor General’s Office is not part of the government’s decision-making process. If the government made decisions based on what the Auditor General’s Office says, that would compromise the independence of the Auditor General’s Office.”

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