Month: June 2013

President’s Office dismisses two ministers at behest of DQP

The President’s Office has today dismissed Deputy Tourism Minister Mohamed Maleeh Jamal and Minister of State for Economic Development Abdulla Ameen from the government at the insistence of their former party.

The President’s Office said the Dhivehi Qaumee Party (DQP), part of the present coalition government, had requested the dismissal of both men, as well as recommending replacements for their positions. The names of the suggested replacements had not been revealed to the public at time of press.

A statement released by the President’s Office said that the positions of deputy tourism minister and minister of state for economic development were assigned to the DQP as part of the conditions under which President Dr Mohamed Waheed’s coalition government was formed.

The present government, formed by a number of former opposition parties, came to power following the controversial transfer of power in February, 2012, when former President Mohamed Nasheed resigned from office following a violent mutiny by sections of the police and military.

Election support

Mohamed Maleeh Jamal told Minivan News that he had been informed of his dismissal today via a phone call from the President’s Office.

He alleged that both former State Minister Ameen and himself had been sacked for refusing to back President Dr Mohamed Waheed’s election campaign, claiming he could see no other reason for the dismissal.

Although Maleeh said he was yet to receive an official termination notice confirming his dismissal, he expressed his belief that he had been fired because of his support for the presidential candidate of the government-aligned Progressive Party of Maldives (PPM), MP Abdulla Yameen.

He said that he had not been surprised by his dismissal after pledging support to the PPM, adding that he would not allow “the fear” of losing his government post to change his mind on whom he believed was the best candidate to back in the election.

“To bring the nation forward, we need a strong government in order to boost investor confidence in the country and bring about economic stability,” Maleeh said. “I believe there is only one candidate who can do this and it is the reason I have decided to join the PPM and support Yameen.”

He argued that the new constitution adopted in August 2008 guarantee that no citizen should be scared of making a democratic decision over the fear of losing a job, adding that he had nonetheless decided to sacrifice his government position to back his preferred presidential candidate.

DQP Leader Dr Hassan Saeed was not responding to calls from Minivan News at time of press.

Former DQP Deputy Leader Dr Mohamed Jameel Ahmed, who was dismissed last month as home minister by the government after announcing his decision to stand as the running mate of PPM candidate Yameen, today slammed President Waheed for the dismissing the two ministers.

Writing on Twitter, Dr Jameel questioned the president’s capability to serve as a leader of the nation by allowing the dismissals of Maleeh and Ameen from the government.

Speaking to local media, he later denied the government’s claim that the DQP had been exclusively allocated the positions of deputy tourism minister and minister of state for economic development within the government.

The PPM said following Dr Jameel’s dismissal last month that it would continue to support President Waheed’s administration, despite condemning what it called the the “harsh and abrupt” sacking.

The PPM, the minority party in the People’s Majlis with the highest number of MPs after the opposition Maldivian Democratic Party (MDP), has since accused President Waheed of campaigning unfairly for September’s election by using state funds and resources.

Earlier this month, the party also slammed the manner in which President Waheed opted to terminate an airport development contract with Indian infrastructure group GMR last year, accusing him of failing to heed its advice on first negotiating with the developer.

However, the party was accused at the time of making “contradictory statements” on the GMR issue by coalition partner Dhivehi Rayyithunge Party (DRP), which is backing Waheed in September’s election.

PPM MP and Spokesperson Ahmed Nihan was not responding to calls at time of press.

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Police request prosecution of 27 year-old male over traffic collision death

Police have concluded an investigation into a collision that left a woman dead in Male’ last month, requesting the state prosecute a 27 year-old male accused of driving the motorcycle that had struck the vehicle on which she had been riding.

In a statement issued today, police said they had requested the Prosecutor General’s Office (PGO) charge 27 year-old Ahmed Gassam from Naifaru in Lahviyani Atoll over his role in the collision that led to the death of Aishath Anwar, also 27.

On May 6, 2013,  police alleged that the bike which Gassam was riding collided with another bike near Coffee Corner on Buruzu Magu.

Police said that incident occurred at 12:38am.

The Maldives Motor Vehicle Act states that in the case of traffic collisions resulting in death, a suspect accused of carelessness while in control of a vehicle should face criminal charges.  In such a case, the suspect is required to face the punishment outlined under the Islamic Sharia, while also  having their driving license withheld for 10 years if found guilty.

Police previously identified the woman who died in the collision on May 6 as Aishath Anwar, 27, from Thinadhoo in Gaafu Dhaalu Atoll.

Aishath Anwar died in a hospital in Sri Lanka on 11 May 2012, five days after the collision.  She had been receiving treatment for severe injuries sustained to her head at the time of her death.

Local media at the time quoted Anwar’s family of accusing Indira Gandi Memorial Hospital (IGMH) in Male’ of being unable to provide her with prompt and proper treatment.

Anwar was admitted to IGMH after the accident, before being transferred to Sri Lanka for further medical treatment.

Her family were quoted in media as claiming doctors at the Sri Lankan hospital had said that the chances of saving Anwar’s life would have been high has she been brought to the country earlier.

The family alleged at the time of there being a delay in transferring Anwar from the Maldives to Sri Lanka as a result of the unspecified actions of IGMH hospital.

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Two males and a minor arrested on Muli over assault of foreign national

Police have arrested two suspects in connection with the assault of a Bangladeshi national on the island of Muli in Meemu Atoll yesterday (June 17), according to media reports.

The two male suspects, aged 24 and 23 years, were arrested at around 4:50am this morning whilst attempting to hide in house on the island, Sun Online has reported. Police have also reportedly arrested a minor in connection to the attack.

Sun Online reported that the as yet unidentified victim, who was found to have suffered multiple head injuries, was presently in Muli Regional hospital where his condition was said to be improving.

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MTDC to sell Herethere resort for US$30 million

The Maldives Tourism Development Corporation’s (MTDC’s) board of directors has decided to sell the government-owned company’s biggest asset, Herethere resort in Addu City, for US$30 million to a company with a majority stake owned by local tourism magnate ‘Champa’ Hussain Afeef.

MTDC Managing Director Mohamed Matheen told newspaper Haveeru yesterday that the decision was made to sell Herethere to Afeef’s Treetop Investment Pvt Ltd because the government corporation did not have the finances to profitably operate the resort.

He added that a large investment was needed to fix problems with the beach and the environment of the resort in the southernmost atoll.

Herethere was the first resort developed and opened by MTDC while Afeef was chairman of the government’s tourism company.

Tourism pioneer Afeef meanwhile told the local daily that the Herethere development would take place in conjunction with the development of the international airport in Gan.

In November 2012, thirty percent of the Addu International Airport Ltd (AIAL) was sold to Afeef’s Kasa Holdings to raise finances to develop the Gan airport in Addu City.

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Two hundred Maldivians miss out on Hajj pilgrimage after Saudi slashes quota

Two-hundred Maldivians will miss out on the annual Hajj pilgrimage this year after the Saudi Arabian government reduced the quota for Maldives from 1,000 to 800.

Islamic Minister Sheikh Mohamed Shaheem Ali Saeed said at a press conference yesterday (June 17) that the Saudi government communicated the decision to the ministry this week.

According to local media reports, Shaheem explained that the Saudi government reduced the quota as a result of ongoing work to expand the area around the Kaaba in Mecca.

Consequently, Shaheem added, only 22,000 people would be able to perform the tawaf (circling the Kaaba) in one hour compared to 48,000 in the past.

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MDP snubs meeting with police on election security

The opposition Maldivian Democratic Party (MDP) boycotted a meeting arranged by the Maldives Police Service (MPS) yesterday (June 17) with political parties to discuss security issues for the upcoming presidential election.

According to police, representatives from President Dr Mohamed Waheed’s Gaumee Ihthihaad Party (GIP), the Jumhooree Party (JP) and the Progressive Party of Maldives (PPM) attended the meeting.

Police provided information regarding security arrangements for the election at the meeting that took place at the police Iskandharu Koshi compound.

The MDP has expressed concern with preparations by police for the presidential election. The party maintains that its presidential candidate Mohamed Nasheed resigned on February 7, 2012 in a coup d’etat instigated by mutinying police officers of the Special Operations (SO) command.

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Maldives Gas controls sales following late shipment

The Maldives Gas Company has restricted the sale of gas cylinders due to a delay in the latest shipment caused by adverse weather.

Internet news outlet CNM reported a company official as saying that the shipment was due to arrive on June 21. The official added that the company would control sales until the new shipment arrived.

Gas is also provided locally by the Villa Gas company owned by business magnate and presidential candidate Gasim Ibrahim.

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Bank of Maldives sues MP Ali Azim over unpaid loan

The Bank of Maldives Plc Ltd (BML) has sued MP Ali Azim and his father over MVR 3.8 million (US$246,433) unpaid from a loan taken by the pair in 2007 for the construction of the New Queen residence in Henveiru.

According to newspaper Haveeru, Azim and his father claimed at court that the bank raised the interest rate on the loan without prior notice.

Although the pair claimed that they were informed of the interest rate hike a year later, the bank denied the claim.

BML lawyers claimed that Azim and his father was duly informed of the rate hike, which the bank imposed due to nonpayment of loans by Fonnadoo Tuna Products and Mahandhoo Investment.

The MP for mid-Henveiru owns a stake in both companies and had signed the loan agreement as a guarantor.

The Civil Court concluded hearings into Azim’s loan case yesterday (June 17) and informed the parties that a verdict would be delivered at the final hearing.

Following nonpayment of five loans guaranteed by MPs Azim and Ahmed Nashiz, BML is currently in the process of selling mortgaged assets.

Moreover, a case is pending at the Supreme Court concerning the legal status of the MPs as the constitution states that a member of parliament with a decreed debt that was not being paid in accordance with a court judgment shall lose their seats.

MP Ali Azim recently switched from the government-aligned Dhivehi Rayyithunge Party (DRP) to the opposition Maldivian Democratic Party (MDP).

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No corruption in GMR airport deal, concludes ACC

The Anti-Corruption Commission (ACC) has ruled out corruption in the awarding of a concession agreement in June 2010 to a consortium of Indian infrastructure giant GMR and Malaysia Airports Holdings Berhard (MAHB) to develop and manage the Ibrahim Nasir International Airport (INIA).

In a 61-page investigative report (Dhivehi) made public yesterday (June 17), the ACC concluded that the bidding process was conducted fairly by the World Bank’s International Finance Corporation (IFC) and that the GMR-MAHB consortium won the contract by proposing the highest net present value of the concession fee.

The ACC further concluded that the awarding of the contract did not contravene amendments brought to the Public Finance Act requiring parliamentary approval for such agreements.

The amendments were published in the government gazette after the concession agreement was signed, the ACC noted.

The concession agreement was signed on June 28, 2010, while the amendments were gazetted on December 13, 2010, following a Supreme Court ruling. The amendments were voted through for a second time in August 2010 following a presidential veto.

On the previous administration’s decision to replace the board of directors at the 100 percent government-owned Maldives Airports Company Ltd (MACL) – after they refused to sign the concession agreement claiming insufficient information – the ACC observed that there was “no legal obstacle” for the move.

The ACC report also concluded that the government would benefit more from privatising the airport.

“Considering the situation (2008, 2009 and 2010) when the decision was made to privatise the Male’ International Airport,” the ACC’s calculations showed that MACL would make a profit of about US$254 million in 25 years if the airport was operated by the government-owned company.

Conversely, the government would receive about US$534 million in the same period from the GMR consortium if the airport was privatised, the ACC found.

The privatisation of the airport by the ousted Maldivian Democratic Party (MDP) government in June 2010 was strongly condemned by opposition parties on nationalistic grounds.

The Dhivehi Rayyithunge Party (DRP), Peoples Alliance (PA), Dhivehi Qaumee Party (DQP) and Jumhooree Party (JP) signed an agreement to work against the privatisation process and launched a media offensive alleging “massive corruption” in the awarding of the contract.

The ACC report this week meanwhile followed a special audit conducted by the Auditor General’s Office with the assistance of a British consultant concerning the airport privatisation deal.

The AG’s report stated that evidence to back allegations of “improper interference” during the technical bidding process “is not conclusive on this point” and deferred the matter to the ACC.

The AG’s report also noted that the IFC’s terms of reference involved “securing the best deal for the government in terms of the concession fee paid to the government and MACL, and did not consider impacts on the Maldivian economy.”

Government stance

In November 2012, the current government – made up of a coalition of parties opposed to the MDP government’s privatisation policy – declared the concession agreement with the GMR-led consortium “void ab initio” (invalid from the outset) and abruptly terminated the contract.

In April this year, the Attorney General’s Office confirmed that arbitration proceedings resulting from the contract cancellation would begin by mid-2014.

Responding to the ACC’s findings yesterday, the government insisted that the report would have no impact on its legal position to declare the GMR concession agreement void, contending that President Dr Mohamed Waheed’s decision had nothing to do with corruption allegations levelled by “some people”.

President’s Office Media Secretary Masood Imad told Minivan News that the contract was declared void from the beginning due to the negative impact on state finances in 2012.

“Back before the government took back control of the airport from GMR, the reason we gave was that the deal was bleeding the country’s economy. We were paying GMR to keep them here,” he explained.

Masood said that despite “speculation from some people” concerning corruption by the former administration in signing the deal, the present government was not responsible for filing a case with the ACC.

He added that the government’s concerns over the deal had been in relation to the imposition of a US$25 Airport Development Charge (ADC) by GMR that was blocked by the Civil Court in 2011 after the then-opposition DQP filed a case on the matter.

The DQP, now part of President Waheed’s coalition government, attempted to block payment of the charge on the grounds that it was effectively a tax not approved by parliament.

In response, the MDP government agreed to deduct the ADC from the concession fees payable, while GMR later offered to exempt Maldives nationals from paying the ADC as it moved to appeal the verdict.

However, former President Mohamed Nasheed resigned under controversial circumstances on February 7, 2012 amidst a violent mutiny by elements of the police and military before the Civil Court verdict was appealed at the High Court.

Consequently, in the first quarter of 2012, Dr Waheed’s government received US$525,355 of an expected US$8.7 million, after the deduction of the ADC. That was followed by a US$1.5 million bill for the second quarter, after the ADC payable eclipsed the revenue due the government.

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