Month: April 2013

India to provide Maldives with equipment, financial assistance for defence

India has pledged to provide the Maldives with an assortment of defence equipment, infrastructure, and training, reports local media.

Seven radar systems, adding to the three already in place, are being given by the Indian government, as well as a helicopter for search, rescue and emergency evacuation in the northern Maldives.

Financial assistance is also being provided to construct a Coast Guard building and a harbor for Coast Guard vessels, in addition to establish a Maldives National Defence Force (MNDF) composite training centre in Lhaviyani Maafilaafushi.

The pledges were made by Indian Defence Minister A K Antony during Minister of Defence and National Security Minister Colonel (Rtd) Mohamed Nazim’s recent visit.

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Police return MVR 6 million confiscated from accused drug lord

Police have returned MVR 6 million (US$461,500) confiscated from suspected drug lord, Adam Naseem of H. Reendhooge, according to local media.

Naseem was accused by the Nasheed government in 2009 of being one of the country’s top six drug lords. He was arrested in mid-2009 and the police investigation lasted nearly a year.

Police searched Naseer’s home in Addu Atoll on June 30, 2009, where they found over MVR 6 million (US$461,500) in cash and a tin containing drugs outside his house.

However, the Criminal Court acquitted Naseer on the grounds that the state had not been able to convince the court that the money found inside his house was earned through drug trafficking, or that the tin belonged to him.

The state appealed the case at the High Court, which upheld the lower court’s not guilty verdict.

In May 2010, Naseem sued police seeking the return of the money.

Naseem reportedly told local newspaper Haveeru that police had not yet returned the registration of his motorbike and car, or cheques he claimed were worth a further MVR 6 million.

In June 2011, a report compiled by the presidential commission following an inquiry into Naseer’s controversial acquittal was leaked online.

The findings of the report suggested that shortcomings in the police investigation and weak evidence were responsible for the failure to convict one of the “top six drug lords” identified by police.

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Government bill on raising import duties narrowly accepted by parliament for consideration

Parliament voted 26-25 today to accept for consideration a bill proposed by the government to increase import duties as part of a raft of measures to raise MVR 1.8 billion (US$116 million) in new income.

The amendments to the Import-Export Act (Dhivehi) submitted by MP Riyaz Rasheed on behalf of the government proposes raising tariffs on a range of items such as liquor, pork, tobacco, perfume, cement, gas and energy drinks.

MPs of the opposition Maldivian Democratic Party (MDP) voted against the amendments while MPs representing parties in the ruling coalition voted in favour.

However, during preliminary debate at today’s sitting of parliament, some government-aligned MPs expressed concern with the potential rise in prices as a consequence of reversing import duty reductions.

The acceptance of the bill for review by committee follows parliament’s 28-27 rejection last week of government-sponsored legislation to raise the airport service charge to US$30.

Hiking the departure tax on foreign passengers was among the measures proposed by the Finance Ministry with the 2013 budget to raise additional revenue, which also included increasing Tourism Goods and Services Tax (T-GST) to 15 percent from July 2013 onward, leasing 14 islands for resort development and introducing GST for telecom services.

Following the narrow defeat of the airport service charge amendment bill, Finance Minister Abdulla Jihad told local media that a “significant amount” would be lost from projected revenue as the additional income was anticipated in budget forecasts.

“If the amendments for the import duty are not passed, we will find it extremely difficult to manage the budgets of institutions. So it’s critical that the parliament expedites work on the bills and support them,” he was quoted as saying by newspaper Haveeru.

Jihad confirmed to Minivan News this week that the cabinet has decided to suspend or delay implementation of development projects financed out of the state budget due to shortfalls in revenue.

The government was in the process of formulating a supplementary budget to be put before parliament by the end of April, Jihad said.

Meanwhile, speaking to press on Sunday (April 21) following the signing of contracts for construction of harbours in four islands, Housing Minister Dr Mohamed Muiz said the budget was “in a very fragile state.”

“We can only spend what is earned as income. The government proposed new revenue measures when it submitted the budget. It was approved on principle when the budget was passed,” Muiz said.

“However, according to my information, difficulties have arisen in implementation [of the measures]. As a consequence, aside from these four islands, the finance ministry has instructed me not to sign or commence with any infrastructure project in any island from now on. Unless the People’s Majlis passes new means of earning income for the government, the finance ministry has instructed us not to begin any project financed out of the government budget, be it harbour construction or land reclamation or any project undertaken by the housing ministry.”

Revising import duties

The current administration’s intention to revise the changes made by the previous government to import duties was announced in June 2012.

Import duties were reduced or eliminated for a wide range of goods under the previous administration as part of its economic reform package to introduce direct taxation and restructure government finances.

Through amendments approved unanimously in November 2011, import duties were eliminated for construction material, foodstuffs, agricultural equipment, medical devices, passenger vessels and goods used for tourism services.

Tariffs were meanwhile reduced to five percent for furniture, beds and pillows as well as cooking items made from base metals. Other kitchen utensils had duties reduced to 10 percent.

While import duties were eliminated for most fruits and vegetables, 15 percent was to be levied on bananas, papaya, watermelon and mangoes as a protectionist measure for local agriculture. Areca-nuts had the tariff reduced from 25 percent to 15 percent.

Import duties for tobacco was meanwhile hiked from 50 percent to 150 percent.

However, an amendment proposed by the government to raise import duties for alcohol and pork from 30 to 70 percent was defeated at committee stage.

A shortfall in revenue from lower tariffs was expected to be covered by proceeds from T-GST and GST, the latter of which was introduced concurrently with the import duty reductions.

In December 2012, the Maldives Custom Service (MCS) revealed that income from collecting import duties declined by 50 percent in the first 10 months of 2012 compared to the previous year.

Meanwhile, in November 2012, an International Monetary Fund (IMF) mission to the Maldives cautioned that a ballooning fiscal deficit had “implied a rise in the public debt ratio, which now stands at over 80 percent of GDP, and has also helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on MMA (Maldives Monetary Authority) reserves.”

The IMF forecast for the current account deficit in 2012 was “nearly 30 percent of GDP this year.”

“Gross international reserves at the MMA have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” the IMF mission warned.

The mission recommended formulating “a realistic and prudent budget for 2013″ to rein in the fiscal deficit, suggesting hiking taxes and “selectively” reversing import duty reductions.

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Police seize 147 bottles of alcohol from safari boat

Police have seized 147 bottles of alcohol and 498 cans of beer stored in a safari boat docked at Hulhumale’, and arrested two persons in connection with the case.

Police said the alcohol found on the safari boat was not stored in compliance with regulations made to have alcohol aboard safari boats for tourism purposes.

According to police, a 44 year-old Maldivian and a 39 year-old Bangladeshi man were arrested in connection with the case.

Police said the 44 year-old Maldivian was arrested yesterday morning (April 22) while he was near the Maya Clinic in Maafannu ward, following reports police received that he was trafficking alcohol.

Three bottles of alcohol were discovered inside a bag he was carrying when police stopped and searched him, police said.

Police said that following further information police received from the Maldivian man, the Bangladeshi man was arrested in a special operation police conducted by Drug Enforcement Department.

Police investigation into the case continues.

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Police seek public assistance to locate Godzine Sargsyan

Police have issued a statement asking for public assistance in locating one of the Artur brothers, Godzine Sargsyan.

Police said Godzine was a French national who came to the Maldives under the passport number 10CZ05238.

Police requested anyone with any information about Godzine Sargsyan to contact the police Serious and Organised Crime Department’s hotline 991 1099 or the police main line, 332 2111.

The statement did not reveal why Sargsyan was being sought. Police said they would provide security for people providing information to them.

Earlier this month, pictures of Artur brothers with the Tourism Minister Ahmed Adheeb and Defence Minister Mohamed Nazim emerged in the social media.

However, the ministers denied involvement with the infamous brothers, linked with drug trafficking, money laundering, raids on media outlets and other serious crimes in Kenya.

Photos of the Arturs in the company of the two Maldivian ministers emerged on social media, apparently taken during the Piston Motor Racing Challenge held on Hulhumale’ between January 25 and 26.

A letter from the Tourism Ministry to immigration authorities requesting a residency visa for Margaryan and Sargayan Artur, dated January 27 and signed by Adheeb, was subsequently leaked on social media.

A company named ‘Artur Brothers World Connections’ was registered in the Maldives in October 2012, with the Artur brothers holding an 80 percent share in a 61-19 percent split.

French nationals identified as Godzine Sargsyan and Edga Sargsyan had a 10 and 7 percent share, while a Maldivian national Ismail Waseem of H. Ever Chance was listed as holding the remaining 3 percent.

Waseem’s share was subsequently transferred to Abdulla Shaffath of H. Ever Peace on November 25.

Meanwhile, on April 8, reports in local media suggested that Zaidul Khaleel, General Manager of the Club Faru resort, operated by the state-owned Maldives Tourism Development Corporation (MTDC), had been dismissed after he was found to have paid the brothers’ US$6000 bill.

Immigration Controller Mohamed Ali previously told local media that while Sargasyan Artur had left the Maldives on March 31, given issues with the country’s border control system “there are questions surrounding the second brothers’ exit from the Maldives.”

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Defence Minister forbids soldiers to publicly participate in politics

The Maldives’ Defence Minister has ordered soldiers to surrender their rights to political participation, despite allegations he has forming a political party.

Minister of Defence and National Security Colonel (Rtd) Mohamed Nazim said soldiers must forgo rights granted to civilians, refrain from politics, and limit their political participation to voting only, as stipulated in the Constitution and military law.

Speaking at an early-morning flag hoisting ceremony on Sunday (April 21) as part of the military’s 121 anniversary celebration, Nazim stated that there is “no room for politics in the military as long as I remain in this office”.

“Every soldier has to accept that some of the rights granted to a civilian in an open society are restricted to a soldier. One of these rights is the right to participate in political activities. I would like to tell you that the Constitution and the military law have curbed these rights from the soldier for a greater and larger purpose,” Nazim stated, according to local media.

“I would like to tell you today, that the role of a soldier is done once you exercise your right to cast your vote, entitled to every person above the age of 18. I would like to bid from all military personnel to refrain from partaking in political activities,” he added.

Nazim “assured” soldiers he will not issue political orders as long as he remains Minister of Defence.

He also stated that welfare benefits would be given to the defence forces once the government’s budgetary constraints are relieved, according to local media.

“Keep quiet and obey”

Maldives National Defense Force (MNDF) Spokesperson Colonel Abdul Raheem reiterated that military personnel cannot take part in any political activities or gatherings at any time. This includes registering for, or being a member of, any political parties.

Asked why the rule applies to military personnel, Raheem emphasised that orders must be followed.

“The MDNF does not want any soldiers participating in political activities. They have to keep quiet and obey,” Raheem said.

He explained that political activities even in a personal capacity are not allowed.

“Soldiers are not seen as ever being off duty, even when they are on leave or in the barracks,” Raheem said.

“The only time military personnel can politically participate is when they go to vote. They can decide for themselves who to vote for. Around 7-10 years ago soldiers could not vote,” he added.

Nazim was not responding to calls at time of press.

Nazim already involved in politics: MDP

“Nazim seems to be swallowing his own words and reflexively wriggling back,” claimed Maldivian Democratic Party (MDP) MP Hamid Abdul Ghafoor.

“Nazim had political ambitions and wanted to profit, but he is trying to cover that up now because the [Maldivian] people won’t accept it,” said Ghafoor.

“They pulled of a coup, but couldn’t sustain it. Now Nazim’s trying to look more mainstream,” he added.

Ghafoor alleged that Nazim had himself created an as-yet unregistered political party called the Maldivian Industrial Development Alliance.

He also accused Nazim of seeking to emulate Turkish and Pakistani history, whereby a military-affiliated political party gains political power in order to maintain the status quo and influence civil affairs.

“The forms were filled [to create the party] and he could then attract all the armed forces to his political entity,” said Ghafoor. “It would also be used to protect and sustain Waheed.”

“The MDP’s position is that uniformed civil servants and military personnel should be able to vote. Any citizen should have the right to vote, but it doesn’t mean your institution should be engaged in politics,” Ghafoor stated.

Anniversary celebration

Following a week of practice preparations, the MNDF celebrated the 121 anniversary of the security services Sunday (April 21) with the Commander in Chief’s Force and Fleet Review as well as a “show” for spectators.

Thousands of Maldivians gathered near Raalhugandu and the Tsunami Monument areas of Male’ – in addition to President Mohamed Waheed Hassan Manik, Chief Justice Ahmed Faiz Hussain, Defence Minister Nazim, and other senior government officials – to witness the spectacle.

“I wanted to bring my son to watch the baghee (traitor) show,” the father of a toddler told Minivan News.

The celebratory events began with an MNDF parade of soldiers carrying assorted firearms, a military band, as well as three armored vehicles, a tank, and firefighting vehicles.

Five Coast Guard ships of assorted size “steamed” by the east coast of Male’, with smoke billowing fromtheir decks in the national colors of red, green and white.

The MNDF also staged a “show” whereby terrorists hijack a local fishing boat.

“The MNDF made it a show so the public could enjoy [themselves] and get a feeling for how the MNDF conducts operations, it was not actually how a tactical operation would be run,” Colonel Raheem said.

Following a helicopter reconnaissance fly-by of the hijacked boat, six small coast guard vessels descended on the fishing dhoani.

The special forces, coast guard, and marine corps then “destroyed the terrorists” to gain control of the dhoni, followed by a casualty being airlifted out, Raheem recounted.

A portion of the special forces show also included “an attack of the terrorist hideout on land”.

“Dead” bodies accompanied by fake blood could be seen sprawled on the pavement.

“The parade was of no cost, since soldiers had the equipment and uniforms already. Additionally, coast guard vessels are in daily use anyway,” said Raheem.

“All of the MNDF’s units combined forces to take part in the anniversary,” he added.

Although the MNDF was not established in name until 2006 – two years after the National Security Service (NSS) was split to create the Police Service – the presence of Maldivian security forces has remained constant, according to Raheem.

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Man sentenced to one year in jail for carrying a knife “without a valid reason”

A man has been sentenced to one year in prison for carrying a knife on the street, reports local media.

Fahud Moahmed was found guilty of “carrying a sharp object in a public place without valid reason”, following witness testimony that he was seen with the knife on a thoroughfare in Male’.

Moahmed could not provide the court with a reason why he was carrying the knife.

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Maldives Bar Association established

The Maldives Bar Association is being established to build legal capacity, lobby, and address problems faced by lawyers in the judiciary, reports local media.

The association will also aim to improve the educational standard of lawyers as well as hold problem solving discussions.

The association was founded by Attorney General Husnu Al Suood, Lawyer Ismail Wisham, Company Registrar of Economic Ministry Ali Shujau, Fayaz Ismail and Aishath Sheeza, according to local media.

It was registered with the Ministry of Home affairs April 11.

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Government appoints new deputy gender minister

Shidatha Shareef has been appointed Deputy Minister of Gender, Family and Human Rights, the President’s Office has today announced.

Shareef’s appointment comes the same month that former Attorney General (AG) Azima Shukoor was made Gender Minister as part of a cabinet reshuffle.

According to the government, the reshuffle was made to support proposed legal reforms concerning the treatment of victims of sexual abuse following the recent high-profile case of a 15 year-old girl charged with fornication.

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