Month: January 2014

Former civil service chief has no grounds for appeal, says CSC

The Civil Court has held the first hearing into the compensation case for dismissed President of the Civil Service Commission (CSC) Mohamed Fahmy Hassan.

In late December, 2012, Fahmy filed charges against the state seeking compensation for losses after the People’s Majlis dismissed him from his position.

Fahmy’s dismissal followed the Majlis’ no-confidence motion in November 2012 after it had conducted an investigation into allegations of sexual harassment against him.

Speaking at the hearing of the case held today in the Civil Court, CSC legal representative Abdul Naseer Shafeeq stated that, as the law states that the president of the civil service must be appointed by the parliament, the parliament’s decision on the matter is final, local media reported.

Shafeeq added that once the parliament decided on the matter, he believed the secretariat was right in following the parliament’s decision. He further said that he had accepted the secretariat was right in not allowing someone other than the person appointed by parliament to enter the premises of the CSC and take up responsibilities of the Chair.

Fahmy’s access to the commission’s offices was revoked in September last year after he continued to attend work during the impasse between the judiciary and the legislature over his dismissal.

Last March, he Supreme Court -had ruled that parliament’s decision was void on the basis that it had breached the law. Fahmy used this ruling as justification in his case against the state.

He stated that, following the Parliament’s appointment of Dr Mohamed Latheef as the president of the CSC, Fahmy had no grounds to claim the responsibilities of the commission’s president.

Shafeeq further pointed out that Fahmy is currently filling another state position.

Incumbent President Abdulla Yameen appointed Fahmy to the post of Deputy High Commissioner of Maldives in Malaysia in the midst of the CSC scandal – just days after assuming office.

The state had previously raised procedural issues in the case, and arguing that the case cannot be carried forward.

Fahmy is suing the state for damages of over MVR7 million as compensation for financial losses and psychological trauma he has suffered through the CSC’s failure to allow him access to its premises and its severance of his pay after the parliament’ decision.

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PPM MPs support abolishing tourism bed tax

Deputy leader of the ruling Progressive Party of the Maldives’ (PPM) parliamentary group Moosa Zameer has supported abolishing tourism bed tax if the Tourism Goods and Service Tax (T-GST) is raised from 8 to 12 percent.

Reintroducing the US$8 tourism bed tax, which was discontinued on December 31, 2013, is among the raft of revenue raising measures proposed by President Abdulla Yameen.

However, speaking at an eleven member sub committee set up to review the government’s revenue raising measures, Zameer said that government aligned MPs now believed bed tax should be abolished if T-GST were to be increased.

Finance Minister Abdulla Jihad has denied any change in the government’s stance.

“It has not changed. And if the government does not go on with the bed-tax, the numbers will not match in the budget,” Jihad told Minivan News.

According to the Madives Tourism Act, bed tax must be abolished within three years of the introduction of T-GST. The Finance Ministry has said discontinuation of bed tax will cost the state MVR100 million (US$ 6.4 million) every month.

The government expects MVR3.4 billion (US$ 224 million) from revenue raising measures. These also include revision of import duties, raising airport departure charge for foreign passengers from US$ 18 to US$ 25, leasing an additional 12 islands for resort development, introducing GST for telecommunication services, and collecting resort lease extension in advance.

Government aligned MPs requested the People’s Majlis hold an extraordinary session during the ongoing recess, contending that failure to pass the revenue raising measures will hamper the implementation of the 2014 budget.

Meanwhile, the Maldives Association for Tourism Industries (MATI) has questioned the practicality of collecting resort lease extensions in a lump sum.

Speaking at the sub committee yesterday, Secretary General of MATI Ahmed Nazeer said only 17 out of more than one hundred resorts had paid resort lease extension fees upfront during former President Mohamed Nasheed’s administration.

Nazeer pointed out that the Civil Court had said the government could not ask for resort lease extensions upfront during Nasheed’s tenure.

Further, resort owners had amended their agreements to pay lease extension in installments during President Dr Mohamed Waheed Hassan’s administration, and as such it would be difficult to amend legislation, Nazeer said.

Then Governor of Maldives Monetary Authority (MMA) Fazeel Najeeb at the time opposed many of those measures, arguing that asking resort owners to pay lease extension fees upfront was robbing the state of future revenue for a “temporary benefit.”

Opposition Maldivian Democratic Party (MDP) MPs said changing agreements could reduce investor agreement in the country.

MDP has described the government’s revenue raising measures as excessive.

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Chinese ambassador announces plans to build 1,500 houses in Maldives

Additional reporting by Ahmed Naish

The Chinese ambassador to the Maldives announced plans to construct 1,500 housing units during a Chinese New Year celebration in the capital Malé last night.

“We will work with the Maldivian side on how to make the best use of Chinese grant aid and the concessional loans to further benefit the economic and social development of Maldives,” said ambassador Wang Fukang.

Also in attendance at the event, Maldives Foreign Minister Dunya Maumoon expressed gratitude for the growing Chinese support in the country’s development.

“Maldives has always looked to China as an invaluable friend whose contribution to the social, cultural and economic development of the Maldives is immense. Some of the projects and some of the businesses that are currently underway are indeed very exciting,” Dunya said.

Military ties between the two countries also appear to be growing, with a Chinese naval ship arriving in Malé this morning. Rear Admiral Shen Hao of the People’s Liberation Army (PLA) expressed his hope that cooperation between the two nations would continue to strengthen.

As well providing loans equivalent to one quarter of the Maldives’ GDP to the previous administration, the Chinese government recently granted the new government of President Adbulla Yameen 50 million yuan (US$8.2 million) in development aid.

Former President Dr Mohamed Waheed was also in attendance at yesterday’s function, alongside cabinet members from the current administration.

Links between the two countries have expanded rapidly in recent years, largely as a result of the exponential growth in Chinese tourists visiting the Maldives.

Reflecting the growth in Chinese travellers worldwide over the last decade, Chinese tourist arrivals in the Maldives grew at an average rate of 48 percent between 2008-2012, becoming the industry’s biggest market in 2010.

In his speech last night, the Chinese ambassador noted that 45 percent of tourists to the country last year were Chinese, giving cause for the government to maintain close bilateral relations with the Maldives.

Defence ties have grown alongside the recent spike in tourist arrivals, with a military aid agreement being signed in December 2012.

The Chinese Navy’s hospital ship ‘Peace Ark’ arrived today on a goodwill mission, read a Defence Ministry press release, with plans to provide medical services throughout the country until July 5.

The PLA Navy’s ‘Mission Harmony 2013’ will visit Kaafu Guraidhoo, Rasdhoo, Alif Dhaal Mahibadhoo, Kulhudhuffushi, Fuvamulah, Addu City, Eydhafushi, Gaa Alif Villingili, and Senahiya Hospital in Male’.

The Defence Ministry has also revealed that the PLA will be providing home services for those with special needs in Kaafu Guraidhoo,as well as offering services at the ‘Kudakudhinge Hiya’ orphanage in Kaafu Villingili. Contact details for the service are available via the Defence Ministry website.

After becoming the only non-SAARC country to maintain a full diplomatic mission in the Maldives in 2011, China’s embassy has recently move to a larger premises and has recently started providing visa services to locals.

Following a recent state visit to India, however, President Yameen noted that regional ties would always be at the forefront of the Maldives’ foreign relations. Growing ties with China have prompted concern within India of Chinese military ambitions in the Indian Ocean region.

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MoU signed to extend Fulbright programme

A new Memorandum of Understanding (MoU) was signed with the United States embassy today to extend the prestigious Fulbright scholarship programme for an additional five years.

In addition to scholarships for graduate studies in the US, the programme also allows for the exchange of US academics to conduct research or to teach in the Maldives.

“Since the Maldives program was initiated in 2003, 21 Maldivians have completed graduate studies in the United States, including at the University of Pennsylvania, Williams College, and at the University of Minnesota.  During that same time, American scholars have taught and undertaken research in Maldives on issues ranging from education to tourism,” the American embassy said in a press statement.

“This renewed Memorandum of Understanding with the Government of Maldives underscores our commitment to expanding educational opportunities for Maldivians,” Ambassador Michele Sison said at the signing ceremony with Foreign Minister Dunya Maumoon, who signed the MoU on behalf of the Maldives.

“We are proud to offer an exceptional academic programme that invests in the citizens of Maldives, and allows Fulbrighters to apply their research for the greater benefit of the Maldivian people.”

According to the embassy, more than 325,000 scholars representing 155 countries have participated in the programme worldwide since its inception in 1946, including 40 Nobel Laureates, and 28 heads of state or heads of government.

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President commutes sentences of 24 inmates

President Abdulla Yameen has commuted the sentences of 24 inmates under the authority vested in the president by the Clemency Act of 2010.

According to a President’s Office statement, sentences were commuted based on the inmate’s age; time spent under house arrest, jail, or banishment; medical condition; and discipline. Conditions were attached to the commutation, the statement said.

The president considered the following criteria in commuting sentences:

  • Inmates must not have committed a disciplinary offense in the past two years
  • Inmates must not have received an presidential pardon or commutation of sentence, or drug rehabilitation through the Drug Court or been granted parole in the past five years
  • Inmates must not have been sentenced in 2013

Individuals who were convicted of murder, terrorism, disturbing the peace – including attacking or threatening a security officer or vandalising public property, child abuse, rape, homosexuality, drug trafficking involving an amount more than four grams, or a hadd crime were not considered, the statement said.

The president did not include anyone that could be determined as dangerous to the society. Yameen will grant clemency to an additional group of convicts on April 1, the statement said.

Article 115 of the constitution states that the president has the authority “to grant pardons or reductions of sentence as provided by law, to persons convicted of a criminal offence who have no further right of appeal.”

On January 9, police cleared the police records of 1,023 young persons who were arrested for various criminal offenses, as part of the government’s pledge to facilitate youth employment.

At the time, Commissioner of Police Hussain Waheed urged all young persons to make the best out of this “golden opportunity” and to leave the crime environment and become useful individuals to society.

In March 2012, current Vice President Mohamed Jameel Ahmed shut down former President Mohamed Nasheed’s flagship Second Chance program set up to reintegrate convicts into society.

Jameel, who was Home Minister at the time, said that Nasheed’s administration had used the program “to release unqualified criminals under political influence and without any clear procedure “.

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Car crashes into military barracks’ gate

A speeding car crashed into the gate of the military barracks near the southwest harbour of Malé last night.

According to police, the 21-year-old male driver sustained head injuries in the accident and received treatment at the Indira Gandhi Memorial Hospital.

The car was driving along the outer ring road Boduthakurufaanu Magu, veered out of control and crashed into the gate at Kalhuthukkala Koshi.

Both the gate and the front of the car were damaged in the accident.

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Auditor General questions legitimacy of telco license fees

The Communication Authority of Maldives (CAM) did not examine annual financial statements of telecommunication companies before collecting license fees, the audit report of the former Ministry of Civil Aviation and Communication for 2009 has revealed.

The audit report (Dhivehi) made public this week noted that CAM was authorised under its agreement with telcos to check and review financial statements of the companies at any time.

However, there was no documentation showing that financial statements were scrutinised by CAM in order to calculate the license fees, the audit found.

“Therefore, we note that it cannot be verified whether the amount of money paid by telecommunication companies to the state as license fees was in truth the full amount owed by the parties,” the report stated.

Based on the findings, Auditor General Niyaz Ibrahim recommended that CAM check audited financial statements of the companies at the end of the financial year to ensure that the license fees were paid in full.

The Ministry of Civil Aviation and Communication was later renamed Ministry of Transport and Communication. In addition to CAM, the Department of Civil Aviation and the National Centre for Information Technology (NCIT) also operated under the ministry.

Among three other cases flagged in the audit report was the absence of overtime work sheets for employees at the NCIT.

While MVR106,702 (US$6,920) was spent in 2009 for overtime pay with written authorisation from senior officials, “we note that due to the lack of records at the office for employees’ overtime work (overtime work sheet) the actual overtime work and time spent could not be verified,” the report stated.

As a result, the report added, auditors could not guarantee the legitimacy of the overtime pay in 2009.

The auditor general recommended ensuring proper maintenance of records and taking action against responsible officials in line with public finance regulations.

The audit also discovered that the ministry attempted to pay a contractor MVR68,000 (US$4,410) to set up a biometric attendance system before the installation work was complete.

While the agreement was signed on December 31, 2009, to complete installation within 30 days, the audit report noted that the contractor billed the ministry on the same day, which then submitted an expense voucher to the Ministry of Finance and Treasury.

“However, we note that there were no documents at the ministry to guarantee that the work was complete before the contractor billed the ministry. Therefore, we believe that the ministry attempted to pay the contractor before the work was completed,” the report stated.

Moreover, there were no records at the ministry of estimates submitted by three interested parties, the report noted, and the evaluation committee chose the contractor with the lowest point score.

While minutes of the evaluation committee’s meetings showed that two proposals were disregarded due to lack of technical specifications, auditors found that the required technical specifications were included in one of the disqualified bids.

The auditor general recommended taking action against the official responsible for submitting the expense voucher to the Finance Ministry without confirming completion of the outsourced task.

Additionally, the audit office recommended an investigation by the Anti-Corruption Commission into the awarding of the contract by the evaluation committee.

In the third case highlighted in the report, auditors found that the ministry was not reimbursed the MVR23,927 (US$1,552) spent on a plane ticket for the minister to attend a ministerial  meeting of the Asia Pacific Telecommunity (APT) in Bali, Indonesia.

As travel and other expenses for the trip were to be covered by the APT, the auditor general recommended recovering the money.

Aside from the flagged cases of ostensible violations of public finance law, the audit report concluded that financial transactions of the ministry and the institutions operating under its remit was in compliance with the Public Finance Act and regulations under the law.

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Construction of flats for teachers cost MVR62 million: Education Ministry

The Ministry of Education has revealed that MVR62 million was spent on the construction of a ten-storey apartment complex for teachers.

Speaking at a press conference held on Tuesday, Deputy Minister Ibrahim Ismail stated that MVR 36 million out of the Educational Fund of the ministry, as well as a loan of MVR26 million from the Maldives Islamic Bank has been spent on the building.

The ten-storey apartment complex consists of 18 single-room apartments and 62 two-room apartments.

Seventy-five flats are reserved for those who serve as teachers or education development officers. The other five flats are reserved to provide accommodation for visiting educational experts brought in by the Ministry of Education.

Application forms to rent the flats can be submitted from February 16 to March 13. The rent for a single-room apartment is MVR4000, and for a two-room apartment is MVR6000.

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MNDF officers to travel with hajj pilgrims for assistance

The Maldives National Defence Force (MNDF) and the state enterprise Hajj Corporation have signed an agreement under which officers of the MNDF will attend hajj pilgrimage to provide assistance to pilgrims.

The memorandum of understanding was signed at an event held at the Ministry of Islamic Affairs on Tuesday – signed by Chief of Defence Force Major General Ahmed Shiyam and Hajj Corporation Managing Director Yamin Idrees.

Speaking at the event, Islamic Minister Sheikh Mohamed Shaheem Ali Saeed revealed that a similar agreement will be signed with the police force in the near future.

The minister further revealed that the Hajj Corporation would be covering all expenses of the officers who will be attending the pilgrimage. He stated that he aimed to eventually have all MNDF officials attend hajj prayers under the initiative.

The corporation is sponsoring seven MNDF officers this year.

An official of the Hajj Corporation stated that the idea behind the initiative was not to have MNDF officers conduct menial tasks for the pilgrims, but rather to facilitate a means for soldiers to engage in the prayers of Hajj.

Hajj Corporation Chairperson Dr Aishath Muneeza stated that 400 pilgrims would be taken to Mecca for the pilgrimage this year. She added that a delegation of the corporation is soon leaving for Saudi Arabia to seek ways of increasing convenience for Maldivian pilgrims, including the renting of a separate hotel solely for the use of Maldivians during the hajj season.

MNDF Spokesperson Major Hussain Ali told Minivan News that they have not decided a criteria under which officers who will get the seven pilgrimage slots this year will be selected.

“So far, we have just signed the memorandum of understanding with the Hajj corporation and announced it. We have not yet drafted a selection criteria, though it will be done under some form of selection process,” Major Ali said.

Minister of Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed stated that the ministry would not be directly involved in either the selection of officers, or in the compilation of criteria for selecting officers. He said that the target was to allow officers selected by the Hajj Corporation and the MNDF to be able to attend pilgrimage completely free of charge.

The MNDF also concluded a Quran recitation ‘Qari’ course on Monday, held in alliance with The Centre for Holy Quran. Twenty MNDF officers participated in this course.

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