Day: April 14, 2013

Deputy Speaker Nazim “mastermind” of scam to defraud atolls ministry: state prosecutors

Deputy Speaker of Parliament Ahmed Nazim was the “mastermind” of a scam to defraud the now-defunct Ministry of Atolls Development, state prosecutors told the High Court today.

Attorneys from the Prosecutor General (PG’s) Office claimed at today’s appeal hearing that Namira Engineering Private Limited – of which Nazim was a former board director – had won bids from the atolls ministry with fraudulent documents and paper companies.

The prosecutors argued that the MP for Meemu Atoll Dhiggaru, as a board director, was ultimately responsible for any corrupt dealings involving the company.

Contacted by Minivan News for comment today, Deputy Speaker Ahmed Nazim said he was “too busy to comment on the matter”.

In February 2012, the Criminal Court dismissed four corruption charges against Nazim. The decisions came just days after the controversial transfer of power on February 7 that brought President Dr Mohamed Waheed to office, with the court ruling that Nazim’s “acts were not enough to criminalise him.”

The Prosecutor General’s Office (PG) however appealed the rulings at the High Court in June 2012.

The appeal

During the first hearing of the appeal today – concerning Nazim’s Namira Engineering Private Limited winning a bid to provide 15,000 national flags – state prosecutors accused the defendant of setting up paper companies for the scam.

The bogus businesses were then used to win bids for projects worth several hundred thousand dollars, the state prosecutors argued.

State Prosecutor Abdulla Raabiu contended that board directors of a company should be liable for criminal transactions carried out in the name of a company under the Companies Act of Maldives.

Raabiu also asserted that Nazim was the “mastermind” behind the fraud and had fully benefited from the deal.

Highlighting apparent lapses during the previous trial against Nazim, Raabiu alleged that the Criminal Court had refused to hear witnesses produced by the state, referring instead to previous statements they had given to the police.

Furthermore, he stated that the court had dismissed the state’s witnesses as suspects of the same crime.

Raabiu argued that it was a familiar practice for the prosecution to withhold charges against suspects with lesser degrees of criminal liability in order to ensure successful prosecution of a prime suspect in a criminal case.

The prosecution said it believed the prime suspect would have a greater degree of criminal liability in the same case.

The state prosecutor also alleged that the case had been decided based solely on Nazim’s word and that the court had refused to give the opportunity to the state to prove its case against the defendant.

Requesting an order for a retrial, Raabiu claimed that the case was concluded in violation of the constitutional stipulation demanding equity in hearing both sides of a case.

The defence

Responding to the allegations by the state, Nazim’s defence counsel Aishath Shizleen contended that it should not be Nazim, but those involved in drafting the bid documents that should be held liable.

Instead of prosecuting the real wrong-doers, she argued, the state had produced them as witnesses against Nazim even when the investigation had clearly found the witnesses had themselves produced the fake documents.

Furthermore, Nazim’s lawyer argued that a witness needed to have certain standards as per a Supreme Court ruling, which had explicitly stated that evidence given by a witness who had even the slightest involvement in a crime could not be accepted to the court.

The lawyer said that the stipulation was also prescribed in the Quran.

This, she said, was the reason for which the Criminal Court had decided to reject the witnesses produced by the state. Nazim’s defense counsel requested the High Court to declare that the decision reached by the Criminal Court was valid and that no retrial was required.

Scam allegations

Along with Deputy Speaker Nazim, MP Ahmed “Redwave” Saleem (then-finance director at the ministry) and Abdulla Hameed, former Atolls Minister and half brother of former President Maumoon Abdul Gayoom, were charged in late 2009 on multiple counts of conspiracy to defraud the Atolls Ministry.

The scam – first flagged in an audit report released in early 2009 – involved paper companies allegedly set up by the defendants to win bids for projects worth several hundred thousand dollars, including the fraudulent purchase of harbour lights, national flags and mosque sound systems.

According to the report, the documents of Malegam Tailors, the company which won the bid, showed that it shared the same phone number as Namira. Fast Tailors, another company that applied, also shared a different phone number registered under Namira.

The other company Needlework Tailors, which submitted the bid had an employee of Namira sign the documents under the title of general manager, while the fourth company named ‘Seaview Maldives Private Maldives’ did not have any record of its existence, according to the report.

However, the auditors had noted that the Seaview bid documents had an exact date error also found on Fast Tailors documents.  According to the auditors, the error was sufficient to prove the same party had prepared both company’s bids.

The prosecution began in late 2009, after police uncovered evidence that implicated Hameed, Saleem and Nazim in a number of fraudulent transactions.

At a press conference in August 2009, police exhibited numerous quotations, agreements, tender documents, receipts, bank statements and forged cheques showing that Nazim received over US$400,000 in the scam.

A hard disk seized during a raid of Nazim’s office in May 2009 allegedly contained copies of forged documents and bogus letterheads. Police alleged that money was channeled through the scam to Nazim, who then laundered cash through Namira Engineering and unregistered companies.

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Court case could deprive Maldivians of Hajj pilgrimage, Islamic Ministry warns

Minister of State For Islamic Affairs Mohamed Didi has expressed concern that Maldivians might not be able to make the Hajj pilgrimage this year if a court case contesting the choosing of eight groups authorised to transport pilgrims is not resolved in time.

The Civil Court issued a stay order or temporary injunction (Dhivehi) on Thursday (April 11) instructing the Islamic Ministry not to proceed with the chosen Hajj groups pending a ruling on the legality of the selection process.

The order was issued after four Hajj filed a lawsuit against the Islamic Ministry for allegedly deciding not to evaluate their proposals. The four companies claimed that the ministry violated procedures and guidelines in place for choosing Hajj Groups.

A quota of 874 pilgrims for the Maldives was meanwhile divided among the eight companies selected by the Islamic Ministry.

The quota was reportedly filled an hour after the eight chosen Hajj groups were officially authorised or licensed to serve pilgrims, prompting complaints from the public.

Permanent Secretary Mohamed Didi told Minivan News today that the Islamic Ministry had to sign an official agreement with the Saudi Arabian government to finalise the approved Hajj Groups.

“We have already sent the names of Hajj Groups that we have allowed and the Saudi government will call us to sign the agreement any moment now.  If we had to say no we can’t sign the agreement because we are not sure these Hajj Groups would be able to take people to Saudi Arabia this year as planned, then the Saudi government might not give us another chance,” Didi explained.

If the Civil Court case was not resolved before the agreement with the Saudi government had to be signed, Didi warned of the possibility that all Maldivians wishing to make the pilgrimage this year through local Hajj Groups would miss the opportunity.

“We will respect the court ruling and we are waiting for the court to reach a conclusion on the case,” Didi said.

The lawsuit was filed at the Civil Court by Almanasik Hajj Group, AlFath Hajj And Umra Group, Alsafa Hajj Group, Classic Hajj and Umrah Group.

Performing the annual Hajj pilgrimage at least once in a lifetime is among the five pillars of Islam.

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Raajje TV wins court battle against President’s Office over discriminatory treatment

The Civil Court has today ruled in favour of private broadcaster Raajje TV in its lawsuit against the President’s Office for barring the opposition-aligned television station from President Dr Mohamed Waheed’s press conferences and functions.

“[The court] orders the President’s Office not to discriminate against Raajje TV in providing opportunity to cover functions, events and press conferences,” reads the judgment (Dhivehi).

Judge Ali Rasheed Hussain noted that the President’s Office’s decision to not cooperate with Raajje TV was proven at court by its own admission.

Summoned by parliament’s Government Oversight Committee last week following a complaint filed by Raajje TV, President’s Office Media Secretary Masood Imad claimed that Raajje TV was not invited to press conferences because the station did not fit criteria or standards of reporting set out by the President’s Office.

According to Masood, the policy of the President’s Office was to invite “responsible and experienced” media outlets, which include private broadcasters DhiTV and VTV, state broadcaster Television Maldives (TVM), newspapers Haveeru and Miadhu, as well as internet publications Sun Online and Minivan News.

Meanwhile, followings its own inquiry into the matter, the Maldives Media Council (MMC) asked the Prosecutor General’s (PG’s) Office to press charges against the President’s Office over what it found to be discriminatory treatment.

The non-cooperation by the President’s Office with Raajjee TV have also been met with condemnation from both international and local NGOs, including the Maldives Journalist Association (MJA).

At the Civil Court trial, the President’s Office, represented by the attorney general, alleged that Raajje TV had attempted to capture video footage of the premises, disrupting internal security at the office.

However, the judge dismissed the claim on the grounds that the President’s Office had the right to file a complaint at the Maldives Broadcasting Commission (MBC) over the alleged violation of broadcasting rules.

As the President’s Office was an institution that “served the people,” the judge ruled that the it should also comply with the Maldivian constitution, which guarantees equal treatment and administrative fairness.

Press freedom and freedom of expression were also protected as fundamental rights in the constitution, the judge noted.

Speaking to Minivan News, Chairman of Raajje TV Akram Kamaaluddeen said today’s verdict was a huge success for Raajje TV well as for the Maldivian media.

“Today, the court has guaranteed that no one can meddle with the rights vested in the constitution and that no one can discriminate the media,” he said.

Akram added that he expected Raajje TV to be invited to future press conferences and events at the President’s Office.

Invitation only

Despite the Civil Court judgment, Masood Imad denied that the government failed to cooperate with Raajje TV.

“We talk to them and provide them with answers to their queries. In future too, we will maintain our position of cooperation,” he told Minivan News.

Masood added that he has been in touch with officials at Raajje TV today and invited them for a meeting at the President’s Office tomorrow (April 15)  to “talk out” any differences.

Akram said that he had not been aware of any communication with the President’s Office since the court ruling at time of press.

The Civil Court previously ruled that a similar decision taken by the Maldives Police Service to not cooperate with Raajje TV station was unconstitutional. The Civil Court Judge, issuing the ruling against the Police at the time, said that he believed such a decision was “extremely dangerous and significantly serious” and could result in “chaos and infringement of social harmony.”

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Former Police Commissioner Adam Zahir faces corruption charges

The Anti-Corruption Commission (ACC) has asked the Prosecutor General’s Office (PGO) to press corruption charges against former Commissioner of Police Adam Zahir over the alleged embezzlement of MVR65,817 (US$4,268) from the police budget.

According to the ACC, the funds were released in 2008 to purchase return tickets for Adam Zahir’s wife from Manchester, England to Male’ to attend a function to mark the police golden jubilee.

The ACC investigators however found that Zahir’s wife was not out of the country at the time.

While a payment voucher for the trip included an Emirates Airlines ticket slip dated April 7, 2008, immigration records showed that Zahir’s wife was in the Maldives between March 26 and April 9 that year.

Immigration records also showed that Zahir’s wife did not travel on Emirates Airlines at all in 2008. The ACC discovered that she had arrived in the Maldives on a British charter flight from First Choice Airways.

The commission therefore asked the PGO to prosecute the former police chief for abuse of authority and embezzlement.

A senior officer of the now-defunct National Security Service (NSS), Zahir became the first Commissioner of Police when former President Maumoon Abdul Gayoom established the Maldives Police Service as a civilian law enforcement agency under the Ministry of Home Affairs.

During the reform movement led by the Maldivian Democratic Party (MDP), Zahir was accused of overseeing torture and custodial abuse, making his resignation a perennial opposition demand.

He resigned in November 2008 after the election of President Mohamed Nasheed.

Wikileaks cables from the American Embassy in Colombo meanwhile revealed that the former police chief was seen as part of the “old guard” opposed to political reforms under President Gayoom.

In December 2005, Sri Lankan police raided the Colombo office of the then MDP-affiliated Minivan News publication upon request from the Maldivian authorities, which alleged that Minivan staff were engaged in seditious activities and gun-running.

“In a December 29 meeting with poloff [political officer], an American contractor who works with law enforcement officials in Colombo said that his police contacts informed him the request for the investigation had been signed by Maldivian Chief of Police Adam Zahir and sent to the Interpol Liaison Desk. The contractor said the Sri Lankan police suspected  the charges were politically motivated, but were compelled to  follow up because of their serious nature,” the cable read.

In January 2006, former Foreign Minister Dr Ahmed Shaheed – part of the ‘New Maldives’ group of young ministers associated with Gayoom’s reform package – told the US Embassy political officer that the raid on the Minivan office was “utterly shameful.”

“Shaheed expressed  concern that the raid undermined the ‘New Maldives’ agenda he and several other reform-minded ministers are promoting. Describing the police chief as ‘someone we are at war with,’  Shaheed added that he had encouraged the president to shift  Zahir from his current position,” reads the cable.

In 2006, reformist magazine Adduvas exposed a number of MPs and regime officials who had taken soft loans from former President Gayoom, including Zahir, who had obtained loans totalling MVR8.7 million (US$677,000).

In August 2009, Zahir was summoned to the presidential commission set up by former President Nasheed to investigate allegations of corruption and misappropriation of state funds under the former regime.

At a ceremony on March 29 this year to commemorate the 80th anniversary of police, Zahir was awarded a special plaque by President Dr Mohamed Waheed “in remembrance of his dedicated and invaluable services rendered to MPS.”

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Services halted, Maldivians deprived of progress following “coup”: Nasheed alleges

An array of services formerly provided by the Maldivian government have stopped since President Dr Mohamed Waheed came to power, former President Mohamed Nasheed has alleged.

Nasheed, speaking in local media, has accused the Waheed administration of depriving the Maldivian people of “one and a half years of prosperity” and progress since his government ended following the controversial transfer of power February 7, 2012.

Despite the criticisms, President Waheed has in recent days been touring North Maalhosmadulu Atoll to view developments such as sanitation and education projects that are currently being undertaken by the state.

However, Nasheed alleged that all of the initiatives launched under his administration have since been halted by Waheed’s government, which he said came to power under the guise of protecting the “nation and religion”.

“Every island that I go to, I see commenced projects unfinished. Harbours have come to stop. Sewerage systems have come to a stop. The change of school sessions to a single session have come to a stop. Aasandha has become a Baasandha. Transport has come to halt, everything has stopped. So I think Waheed’s campaign slogan is ‘halted’,” he was quoted as saying by Sun Online.

“President Waheed has neglected the most prosperous one and a half years of this nation. Since my government was changed through a coup, I can only perceive this coup [government] as something that has come to halt,” said Nasheed.

Nasheed was reported to have made the comments during an MDP “Dheythin Fahethi” campaign event on Kurendhoo Island in Lhaviyani Atoll.

President’s Office Media Secretary Masood Imad and Spokesperson Ahmed ‘Topy’ Thaufeeq were both in meetings and could not respond to calls from Minivan News at time of press.

Revenue through tourism

Speaking Friday (April 12) on the island of Rasgetheemu on North Maalhosmadulu Atoll, President Waheed pledged to develop local islands in the area into resorts to help enhance social welfare for local people.

The president claimed that revenue generated through taxing these resort properties would then allow the state to spend a proportionate amount of funds on benefiting nearby islands, while also providing employment for young people.

Pointing to the potential development opportunities provided by tourism, President Waheed also slammed the efforts of “the group of people calling for the boycott of Maldives tourism”.

“In the past one and a half year, a group of people have continuously attempted to defame the Maldives and called upon tourists not to visit the country” he stated.

Boycott calls

In addition to concerns about a recent avaaz.org petition threatening a boycott of tourism in the Maldives – which has now been signed by over two million people since its launch -Waheed also condemned individuals making “false allegations on human rights abuses”.

Dr Waheed urged the Maldivian public to be aware of any such attempts to “destroy the Maldives’ tourism industry”.

The Avaaz petition is calling for legal reforms in the country after a controversial flogging sentence was handed to a 15 year-old rape victim who admitted to having consensual sex with an unnamed man during a police investigation.

The government of President Dr Mohamed Waheed has pledged to appeal the sentence given to the minor by the country’s Juvenile Court, while also reviewing local laws to enact potential reforms over the use of flogging. No time-line for such reforms has yet been set beyond the commitment to hold talks.

In a letter published on Minivan News earlier this month, Avaaz.org Executive Director Ricken Patel insisted that the organisation had not called for a outright tourism boycott.

“What we do stand ready to do, however, is to inform tourists about what action is and isn’t being taken by the Maldives government to resolve this issue and change the law, and to identify those MPs and resort owners who are using their influence to push for positive change – and those who are not,” Patel said.

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President calls for constitutional reforms to curb “conflict” between state institutions

President Dr Mohamed Waheed  has called for reforms to the current Maldivian constitution in order to reduce “conflict” between different government institutions while carrying out their respective mandates.

The president stated during a campaign speech on Vaadhoo Island in Raa Atoll Thursday (April 11) that he too had faced difficulties in carrying out constitutional duties as a result of such conflicts between the different branches of government.

“The whole system would be complete only when the power, authority and responsibility rendered to a particular position by the constitution, was properly carried out,” he stated.

The president claimed that amendments to the constitution were therefore necessary to allow each institution to “use their powers” independently, since currently “great conflict” is sometimes encountered.

He stated that the Supreme Court ultimately held the final decision-making power to resolve constitutional matters and its decisions should therefore be respected.

The nation’s highest court has been involved in a number of disputes with the Maldives legislature in recent months.

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Former attorney general to keep advising government on Nexbis, GMR matters

Former Attorney General (AG) Azima Shukoor will continue to advise the government on two high-profile legal cases she has previously been involved in, despite being transferred to the Gender Ministry earlier this month.

The two cases involve the future of an agreement to implement a border control system supplied by Malaysia-based Nexbis and arbitration hearings resulting from declaring “void” a US$511 million airport concession agreement with India-based GMR void.

Shukoor, who was appointed as Minister of Gender, Family and Human Rights on April 10, said yesterday (April 13) that she intended to continue to serve on a team of lawyers working for the state on the cases involving Nexbis and GMR, local newspaper Haveeru has reported.

President’s Office Media Secretary Masood Imad has previously told Minivan News that the government had decided to transfer Shukoor as part of commitments to help oversee proposed legal reforms that could potentially end the use of flogging as a punishment for sexual offences.

The government has previously criticised the practice, which it alleged serves to punish victims of rape and sexual abuse in some cases.

The state has come under further pressure to review the handling of sexual offence cases from petition site Azaaz.org, which has threatened otherwise to call for a tourism boycott over a flogging sentence handed to a 15 year-old girl for ‘fornication’.

Shukoor has claimed in local media to have personally requested the president appoint her to the Gender Ministry on condition she would continue to work on the cases relating to Nexbis’ agreement and the arbitration hearings with GMR.

GMR arbitration

In November 2012, President Dr Mohamed Waheed’s government declared void a concession agreement signed by the previous government with Indian firm GMR to manage and build a new terminal at Ibrahim Nasir International Airport (INIA).  It then ordered the company to leave the country within seven days.

GMR is seeking US$800 million in compensation for the sudden termination, while the Maldivian government is contending that it owes nothing as the contract was void ab initio – meaning the contract was invalid from the outset.

Nexbis

Nexbis signed a “legally binding” deal in 2010 to provide a customised border control system under a ‘build, operate and transfer’ agreement to Maldivian authorities that still remains in use as of this month.

The deal is presently the subject of legal wrangling over whether the Anti-Corruption Commission (ACC) has the power to demand termination of the contract. Parliament has also voted to cancel the system, but this is subject to a court injunction.

However, the US government late last month signed a Memorandum of Understanding (MOU) to provide a border control system to the Maldives. Representatives for Nexbis at the time said they had not been informed of the MOU signing or what it might mean for the company’s own agreement with the state.

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President Waheed inaugurates water desalination plant on Dhuvaafaru

President Dr Mohamed Waheed has inaugurated a water desalination plant on the island of Dhuvaafaru yesterday (April 13) as part of an ongoing tour of developments across North Maalhosmadulu Atoll.

The plant, which will be operated by the Male’ Water and Sewerage Company (MWSC), is claimed to be the first of an unspecified number of new high-tech facilities that will be established in the coming years to provide islanders with drinkable water, according to the president.

In a statement posted on the President’s Office website, Dr Waheed said that providing drinking water to some 60 islands annually came at a “huge expense” to the state, despite what he claimed was a “good amount” of rainfall in the country each year.

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