Month: March 2014

Government owed over MVR250 million in unpaid dividends, audit reveals

The government is owed MVR256.9 million (US$16.6 million) in unpaid dividends from state-owned enterprises, the audit report of the Ministry of Finance and Treasury for 2012 has revealed.

In the report (Dhivehi) made public yesterday, Auditor General Niyaz Ibrahim recommended collecting the dividends within a period of one month.

The unpaid dividends include MVR5.1 million (US$330,739) owed by Island Aviation Services, MVR78.9 million (US$5.1 million) owed by the Malé Water and Sewerage Company, MVR167.8 million (US$10.8 million) owed by the State Trading Organisation (STO), and MVR5 million (US$324,24) owed by the Maldives Transport and Contracting Company (MTCC).

The auditor general also recommended regularly monitoring the finances of government-owned companies, seeking audited financial statements within six months of the end of the financial year, and collecting dividends without delay.

While the ministry was required to submit a consolidated financial statement for 2012 inclusive of the departments operating under its remit, the report noted that the ministry prepared separate statements for itself and the departments.

Moreover, the annual financial statements did not include details of loans and foreign aid, the report stated.

As the auditor general was therefore unable to offer his professional opinion on the financial statements for 2012, he recommended taking action against the responsible financial officer under articles 47 and 48 of the Public Finance Act for the lapse.

Highlighted cases

Among other issues flagged in the report, auditors found that the Finance Ministry spent MVR858.5 million (US$55.6 million) out of the budget code assigned for providing capital to government-owned corporations.

The funds were released in violation of the constitution, the Public Finance Act, and regulations under the law, the report stated.

Article 96(c) of the constitution states, “No supplementary expenditures shall be added to an approved budget without further approval by the People’s Majlis. Expenditures included in the budget shall be applied solely for the specified purpose.”

The funds earmarked for capital expenditures of government-owned corporations in the 2012 state budget was MVR30.4 million (US$1.9 million), the report noted.

Of the funds released as capital for government-owned companies, auditors discovered that MVR840.6 million (US$54.5 million) was used to pay salaries for board members and staff and to cover other recurrent expenditures.

The ministry’s actions defeated the purpose of allocating funds for specified expenditures in the budget, the report stated.

As state-owned enterprises were not required to comply with public finance regulations, the report warned that releasing the funds could be “wasteful” or “facilitate corruption” in the absence of a mechanism for holding senior officials of the companies accountable for expenses.

Moreover, falsely including such a large amount of money as capital expenditures in the annual financial statement was “a serious deception,” which casts doubt on validity of the statement, the report noted.

The auditor general recommended taking legal action against the officials responsible for authorising the release of funds to the state-owned enterprises, which included health corporations, utility companies, regional airport companies, the Bank of Maldives, the State Electricity Company, STO, MTCC, Aasandha, and Fuel Supply Maldives.

The auditor general also cautioned against corporatisation of government services without assessing feasibility and determining financial and administrative challenges.

Abuse of authority

In another case highlighted in the report, auditors were unable to verify whether MVR254,898 (US$16,530) worth of expenses for overseas trips by senior officials were made for state purposes.

The Finance Ministry refused to share documents related to the trips “despite repeated requests,” the report stated.

The auditor general recommended that the expenses should be further investigated by the Anti-Corruption Commission.

Auditors also discovered that the Finance Ministry purchased a number of items without a bidding process in violation of public finance regulations, which requires a public tender for procurement of items worth MVR25,000 (US$1,621) or higher.

The items included a Macbook Air, two coffee machines, an air-conditioner, eight computer systems, and one iPad.

Meanwhile, in November 2012, a senior project officer at the Ministry of Home Affairs was hired as a consultant for the Finance Ministry to formulate projects for a period of two months.

While an announcement seeking a consultant was made on November 18 and an employment contract was signed on November 21, auditors found that the consultant began working at the ministry on November 12.

Auditors could not find any documents showing that the consultant worked on the projects during the contract period.

Moreover, in December 2012, Finance Minister Abdulla Jihad asked the ministry’s human resource committee to create a post for a project designer at the minister’s bureau.

The Civil Service Commission (CSC) was requested to create the post on December 24 despite misgivings of members on the human resource committee, the report stated.

When the job announcement for the ‘director project designing’ was made on December 27, the report noted that only one person applied for the post.

The interested candidate was the same individual previously hired as a consultant, the report revealed.

The unnamed individual was appointed to the post on January 28.

The auditor general recommended that the case should be investigated by the ACC as the hiring of the consultant constituted abuse of authority to benefit a third party.

Finance Minister Jihad – who was appointed to the post in February 2012 following the controversial transfer of presidential power – has meanwhile denied the allegations in local media.

Jihad told newspaper Haveeru that the project director post in question was a civil service job, over which he did not have hiring or firing powers.

“It is done in accordance with the rules by the relevant officials at the ministry. I don’t get involved in such matters. The auditor general releasing such a report is very irresponsible,” he was quoted as saying.

Jihad has also previously criticised the auditor general over a report released in December which concluded that an MVR300 million loan was secured in 2012 from the Bank of Maldives in violation of public finance laws.

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Transparency Maldives reveals details of election day observation mission

Transparency Maldives has today confirmed it will be fielding the only nation-wide domestic elections observation mission for this Saturday’s Majlis elections.

The mission will comprise of over 300 trained observers and volunteers, spanning all 20 atolls and foreign countries hosting ballot boxes for the country’s second multi-party parliamentary elections.

In addition to election day efforts,  Transparency will be conducting long-term election observation in order to ensure that the pre-election is free from obstructions, and that voters can make an informed choice without undue influence.

Transparency Maldives’ long-term observer network has been functional since 1 March 2014.

“Though the pre-election environment is largely peaceful, Transparency Maldives has identified vote buying, allegations of abuse of authority and state resources, and the lack of political financing transparency as major issues of concern through the long term observation,” read the press release.

Transparency will be releasing a press statement on the opening of polls on the afternoon of election day, as well as a statement on the closing and counting of ballots the following day.

A final report on the findings with recommendations will be published within a month of the polls.

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Coastguard looking for missing safari boat

The Maldives National Defense Force (MNDF) coastguard has started looking for a safari boat after it was reported missing.

In a statement today, the MNDF said that the boat named ‘Al-Dhabaran’ – owned by a company named ‘Blue Voyage Cruises’ – left the island of Kaadehdhoo in Gaafu Dhaalu Atoll to travel to Malé on March 18, since which time the owner of the boat had been unable to contact the vessel.

The MNDF said the owner of the boat had described the Al-Dhabaran as being 28 meters long and there will be five crew members aboard.

The MNDF appealed to the public to report any information they have regarding the missing boat and requested that anyone with information contact coastguard at 3395981 or 3398898.

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Foreign criticism of court verdicts tantamount to criticism of Islam, says president

President Abdulla Yameen has compared allowing international actors to criticise the Supreme Court and its verdicts as being similar to allowing people to criticise the tenets of Islam.

“This is a message I am giving especially to President Nasheed [former President Mohamed Nasheed]. If you want to maintain the eminence, dignity and sovereignty of the Maldives, do not allow foreign entitities to criticise the final verdicts released from the courts of law.”

“If you allow them to do so, you are giving them the freedom to criticise the Islamic tenets that we have amongst us,” Yameen stated, speaking at a political rally held in the island of Fuvahmulah on Wednesday night.

The president’s comments come shortly after international actors roundly condemned the Supreme Court’s decision to dismiss senior members of the Elections Commission ahead of Saturday’s (March 22) Majlis elections.

Calling on Nasheed to stop criticising the judiciary, Yameen stated that this government will not create commissions to investigate events that occurred in the past.

He further stated that the ruling Progressive Party of Maldives will not try to ‘mete out punishments’ to general members of the opposition Maldivian Democratic Party.

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JP member files case seeking Majlis elections delay

Jumhooree Party (JP) Youth Wing President Moosa Anwar has filed a case at the Supreme Court seeking a court order to delay Saturday’s scheduled Majlis elections.

“It is a case saying that the Elections Commission must consist of at least five members including the president of the Elections Commission,” Anwar told Minivan News.

“It’s in article 168 of the constitution. Currently the Elections Commission is not complete. So I don’t believe that they can hold an election.”

The Elections Commission (EC) currently consists of three members – the mandatory quorum needed for the group to hold meetings and pass decisions –  following the Supreme Court’s dismissal of EC President Fuwad Thowfeek and Vice President Mohamed Fayaz on charges of contempt of court and disobeying the court’s orders.

In the days following the court’s ruling, the Majlis approved Ismail Habeeb as the commission’s third member – joining existing commissioners Ali Mohamed Manik and Mohamed Farooq.

Anwar’s case also concerns the Majlis’ rejection of the Supreme Court’s ruling. A letter sent to senior government figures following the dismissals argued that the EC leadership was removed in contravention of the constitutional procedures governing their appointment and dismissal.

The letter was signed by both the Speaker of the Majlis Ahmed Shahid and Deputy Speaker Ahmed Nazim – MP’s with the Maldivian Democratic Party (MDP) and the Progressive Party of Maldives (PPM).

“I have also requested the Supreme Court to disqualify their parliament membership and also their candidacy for this election,” said Anwar.

The case was file with the court at 1:30pm today, explained the JP member, although he had yet to receive confirmation that the court had accepted the case.

The Supreme Court earlier this week advised the EC that polls could proceed, despite the failure to gain the signatures of all candidates.

Approval of the voter registry was mandated in the Supreme Court’s 16-point guideline accompanying its annulment of last year’s presidential election first round.

Anwar explained that his decision was not a party one.

“None of the JP leaders have been informed. It was done on my own,” said Anwar.

“It has nothing to do with JP or any other party. This is not a politically motivated case. You will know that the vice president of the Majlis is also a government coalition member.”

Coalition unrest

News of Anwar’s case comes as an audio clip of JP leader Gasim Ibrahim has emerged on social media which appears to indicate unrest within the governing coalition.

In preparation for the upcoming Majlis polls, the three parties in the governing Progressive Coalition – PPM, JP, and Maldives Development Alliance – had agreed to allocate constituencies among the coalition partners, with the PPM contesting 50 seats, the JP contesting 28 seats, and the MDA contesting seven seats.

In the 2:49 clip, Gasim appears to criticise President Abdulla Yameen, former President and PPM leader Maumoon Abdul Gayoom, and Home Minister Umar Naseer.

The audio appears to have been recorded after the revote of the presidential election, held on November 9 in which candidate Gasim finished third.

The court’s decision to annul the first round of the presidential poll came after Gasim had lodged a case alleging inconsistencies within the electoral register used on September 7.

In the recording, Gasim is heard saying that it would not be “easy on the heart” to endorse Yameen as he could not forget the “suffering” of his family under President Gayoom “even if I don’t say anything about it.”

“We couldn’t support Anni [MDP’s Mohamed Nasheed] because his principles are bad. We know how things are with Yameen. They are full of brutality,” he is heard saying.

The opposition MDP meanwhile put out a statement contending that the leaked audio shows that “Honourable Gasim joined the government coalition due to intimidation and political influence.”

As a result of the alleged mistrust among coalition leaders and their efforts to exert political influence over one another, the MDP contended that living standards have fallen and government services have deteriorated in the past four months.

“MDP has always been advocating that in a presidential system the public will not benefit from a coalition government. At such a critical juncture, this [leaked] phone calls has revealed the extent to which the coalition has unraveled,” the statement read.

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Broadcasting Commission cannot regulate way in which Supreme Court is addressed

The Maldives Broadcasting Commission (MBC) has told the Supreme Court that asking media to write the names of persons in a specific way is against international best practice.

The commission’s letter was sent to the Supreme Court on Sunday (March 16) in response to a court request for MBC to enforce strict rules on how Supreme Court judges must be addressed in the media.

It was also pointed out to the court that the commission is mandated with regulating broadcast media alone.

MBC claims to have received a letter suggesting that the court’s justices were being addressed in ways other than how they should be, requesting that the commission inform all media outlets on the appropriate manner in which to write the names of the Supreme Court bench.

An official at MBC told Minivan News that the letter stipulated the Chief Justice Ahmed Faiz’s was to be preceded by the title ‘Chief Justice of the Maldives Honorable Al Ustaz’, the title ‘Justice Honorable Dr’ should be used for Justice Dr Ahmed Abdulla Didi, and ‘Justice Honorable Al Ustaz’ for the rest of the bench.

MBC’s reply to the court – signed by the commission President Mohamed Shaheeb – stated that it was not within the commission’s mandate to dictate the content of any station, and that broadcasters were free to work in accordance to their own editorial guidelines in such matters.

The commission highlighted that it does only what is mandated by the Broadcasting Act and regulations, and that it ensures that all licensed broadcasters abide by the code of conduct formulated by the commission.

The Maldives Media Council – established under the Maldives Media Council Act – is mandated with establishing and maintaining a code of conduct for journalists in the country. Minivan News has learned that the council has yet to be approached by court on this matter.

Meanwhile, the Maldives Journalists Association President Ahmed ‘Hirigaa’ Zahir has said that the association is also of the view that journalists should not be forced to use names of anyone in a specific way.

“Anyone can request the media to use write their name how they want it to be written. But it should not be a requirement. Media reports in simple language,” said Zahir.

“While members of parliament are addressed as ‘honorable member’ in the parliament or justices are addressed in a specific way within the courtroom, it does not have to be the case in reporting or speaking in general public.”

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High Court upholds decision to return baby to German mother

The High Court has today (March 20) ruled in support of the Family Court decision to return the five month old baby of Ahmed Sharuan and Tanja Sharuan to the mother.

Details of the case revealed in an online petition launched by the mother claim that she was being accused by Sharuan of attempting to raise the child as a non-Muslim, despite having converted to Islam.

The High Court previously released a temporary injunction halting the Family Court order until the appeal case submitted to the superior court by Sharuan reached completion.

Police – having previously launched a search for Sharuan – ceased the investigation following the High Court order.

Speaking to Minivan News on Thursday afternoon, Tanja expressed joy at having received custody of her child.

“I am very happy about the High Court’s decision. I have always had faith in the Maldivian law. As a Muslim mother, I am more than happy to have my baby back in my arms,” Tanja said.

She further expressed gratitude for the “wonderful support given from [her] Maldivian friends”.

Three days ahead of Thursday’s court hearing, Tanja launched an Aavaaz petition seeking support in her case to gain custody of her child.

“My daughter is only five months old and she was abducted by her father from our then home in Zurich and he ran away with her to the Maldives. I am German but now in the Maldives and have submitted a case to the Family Court,” read the petition.

“The Family Court on Monday issued an injunction to my husband Ahmed Sharuan to hand over the baby to me within 24 hours, by 3pm Tuesday 11th February 2014.”

“However, he refused to obey this court order and went into hiding for several days. Whilst in hiding, he arranged a lawyer and submitted an appeal to the High Court to cancel the Family Court injunction. The High Court on Sunday 16th March, suspended the injunction of the Family Court without even hearing my side of the story and without a hearing,” it continued.

“I need all your support to achieve justice in this case. I am hoping that the Maldives justice system will deliver a fair judgement and give me the custody of my child according to the law,” concluded the petition, which has received over 600 signatures at the time of press.

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Government seeks to “revert back to centralisation”, says MDP

Threats to disband Addu City Council are “impossible” and show lack of “political understanding” the Maldivian Democratic Party (MDP) has said.

The statement follows warnings from President of Local Government Authority (LGA) and Defence Minister Mohamed Nazim that the council could be disbanded if it did not cooperate with the government.

The six member council was one of two administrative divisions – along with Malé City – designated as cities in the 2010 Decentralisation Act.

Both are dominated by the opposition MDP, with all six of Addu’s council seats being won by the party in recent local elections.

Speaking at a government coalition campaign rally held in Addu’s Hithadhoo island earlier this week, Nazim said that residents did not cooperate with the government and that this can create problems, local media reported.

“Action may have to be taken against them, and could lead to dissolving the council”, he was quoted as saying.

Speaking at the same rally, President Abdulla Yameen remarked, “while the MDP may say that they would hold the government accountable if they win a majority in parliament, they would in reality create problems for the government.”

In response to these comments, the MDP have released a statement characterising Nazim’s “unlawful threat” as a “warning to stop the empowerment and development of Addu City citizens.”

The opposition party accused the government of attempting to dissolve the Addu City Council in order to revert the country to autocratic rule.

“However, the people of Addu City have always shown that they will not bow to such dictatorial actions,” the statement read.

Spokesperson Hamid told Minivan News that the threats made by Nazim were impossible, and a sign of the government’s “desperation” and lack of political understanding.

“Decentralisation is very much welcome and they have tried to revert back to centralisation” he added.

As part of its Majlis election campaign, the MDP has pledged to amend the Decentralisation Act in order to empower local councils. Former President Nasheed has said the party’s aim was to secure financial independence for local government.

“We want each council to conduct business transactions using the island [to generate income] for establishing sewerage and water systems, build roads or even construct a harbour or do work needed for the school – we want to find a way for you to undertake these efforts on your own,” said Nasheed last month.

Budget for Addu

Prior to Nazim’s remarks, President Yameen told residents in Hithadhoo that the 2014 state budget comprised of developmental projects that would solve the problems in Addu City.

Speaking at a parliamentary campaign event held on Tuesday (March 18), the president said that apart from the projects that will be run via the state budget, he had also planned other developmental projects for Addu by obtaining funds from other sources, reported Haveeru.

“According to my information, 50 percent of the finance needed to deal with the land erosion problem has been arranged by the Saudi government. We have written a proposal to Kuwait Fund to attain the remaining 50 percent funds as loan aid,” Yameen was quoted as saying.

In addition, Yameen said that work on building the Islamic Centre in Hithadhoo will commence in June this year.

If the public wanted to see these plans completed, the governmental coalition would need to acquire the parliament’s majority, Yameen said, calling upon the people to vote for candidates representing the government’s Progressive Coalition.

Shortly after this year’s budget was proposed, Addu City Mayor Abdulla Sodig suggested the financial difficulties facing his council were a result of the failure to implement the Decentralisation Act properly.

“Right now decentralisation in this country is just for show,” Sodig told Minivan News in December. “The government and Majlis need to resolve these issues if the citizens are to benefit from decentralisation in a meaningful way.”

Under the landmark legislation, the LGA is tasked with monitoring councils, ensuring standards, improving technical capacity, and coordinating with the central government.

The LGA board consists of a cabinet minister appointed by the president, a member appointed from the MCC, four atoll councillors elected from among members of atoll councils, a representative from civil society appointed by parliament, a member of the general public appointed by parliament, and a member elected from the Addu and Malé city councils.

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Six expatriates arrested for kidnapping Maldivian man over unpaid wages

Police have taken six expatriates into custody after they allegedly kidnapped a Maldivian on a resort construction site in Alifu Dhaalu atoll.

In a statement issued today, police said that on March 19, a group of 31 expats working on the island created unrest in the island over what it is believed to have been an issue concerning unpaid wages.

Six expatriates who led the unrest then assaulted Maldivians working on the island and kidnapped the Maldivian head of staff, said police.

Officers working in the nearby Mahibadhoo police station and Dhangethi police station conducted a joint operation and raided the island.

According to police, the Maldivian man was tied when officers went to the island, and freed by police at about 1:34pm.

During the police raid, officers discovered iron bars, wooden planks, machetes and box cutters inside the rooms in which the expats were living.

Furthermore, police said that all those taken into custody were Bangladeshi nationals aged between 25 and 35.

When Minivan News contacted police for further information, police media official said they were not providing details of the case as the investigation was ongoing.

Last month, police freed a Bangladeshi national that was kidnapped by two compatriots in Malé, being locked inside a room in Galolhu without water or food for am extended period.

When police searched the room, officers discovered a knife under the pillow of one arrested in connection with the case.

Later the police found out that the victim and the two arrested persons were illegal expats and did not have identifying documents.

On March 9, police also arrested a Maldivian man from Addu Atoll on allegations that he had assaulted two of his expatriate staff.

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