Day: April 19, 2014

Week in review: April 13 – 19

The disposal of around 120 animals confiscated from people’s homes stole the headlines this week, amid confusion as to why the decision to destroy the animals was made, and by which institution.

As part of a joint operation conducted on Saturday (April 12), relevant government authorities instructed police to confiscate all pets suspected of having been illegally imported.

These animals were promptly destroyed by the MNDF, while the fate of the slow loris – endangered in more ways than one – remained unclear as interested adoptees continued to face financial and bureaucratic obstacles.

Bureaucratic obstacles continued to hinder President Abdulla Yameen’s attempts to place his nephew in the role of Prosecutor General as the Majlis failed to return enough votes to approve Maumoon Hameed’s nomination.

Home Minister Umar Naseer this week lamented the ‘oversized democracy‘ inherited by the government, suggesting bureaucracy was thwarting his anti-drug camaign.

The government’s attempts to centralise control of the nation’s mosques through amendments to the Religious Unity Act met with greater successful as the president ratified the changes shortly before departing to Japan on an official state visit.

Prior to boarding the plane to Tokyo, Yameen told the press that he had been unable – and unwilling – to meet the demands of Indian company GMR for an out-of-court settlement regarding the terminated airport development deal.

It was revealed that the government will now await the outcome of the arbitration proceedings, expected within the next two months after hearings concluded this week.

Yameen’s trip to east Asia saw the Japanese government thanked for its generous history of developmental assistance in the Maldives as well an open invitation for private investors to continue the tradition.

Back on the home front, President Yameen acknowledged that the distribution of government positions among coalition partners had generated some tension, after rumblings of discontent from coalition leader Gasim Ibrahim.

No such discontent was found in a survey conducted by the Tourism Ministry this month which found 98 percent of tourists would recommend the Maldives as a holiday destination.

Eighty percent of those surveyed reported having holidayed within an hour of the capital Malé, a trend Addu City Council hopes to change with the establishment of a guest house promotion board in the country’s southernmost atoll.

The heavy concentration of tourists in Kaafu atoll brought the opposite response from Malé City Council, who passed a resolution opposing the development of Kuda Bandos – the only local picnic island available to the overcrowded capital’s residents.

Meanwhile, the Department of Heritage hopes to draw the attention of visitors to the Maldives’ cultural treasures, organising an exhibition of the country’s coral mosques as attempts to make UNESCO’s world heritage list continue.

The Ministry of Environment maintained that the country’s natural heritage can still be preserved if the world commits to a 1.5°C cap on global temperature rise, with Minister Thoriq Ibrahim pledging to increase renewable energy to 30% in the next 5 years.

Elsewhere, the High Court is now considering over a dozen election-related complaints following last month’s Majlis poll – though the arguments posited by Kaashidhoo MP Abdulla Jabir received short shrift from the Elections Commission’s lawyer.

Jabir’s Maldivian Democratic Party announced it would hold an event to mark Labour Day next month while taxi drivers failed to present a united front in protests against new regulations due to be implemented this week.

DhiFM remained steadfast in its defiance of the Maldives Broadcasting Commission – responding to criticism for posting upside down pictures by posting a similar image of the commission’s chair.

Corruption charges were pressed this week against controversial Supreme Court Judge Ali Hameed, while the Anti Corruption Commission asked the state to pursue charges against a former state minister for undue expenditure on sports activities.

Minivan News also took time this week to talk discuss the future of hydroponics in the country’s agriculture as well as interviewing the Maldives’ first female DJ.

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Audit uncovers corruption in MNBC sales agent agreement with BIG

A special audit of the defunct Maldives National Broadcasting Corporation (MNBC) has uncovered corruption in a deal designating Business Image Group Pvt Ltd (BIG) the former state broadcaster’s exclusive sales agent with a 15 percent commission from the main income items.

The audit report (Dhivehi) made public on Thursday (April 17) revealed that an agreement was signed with BIG on March 7, 2010 to formulate a business plan and provide marketing consultancy.

In addition to making BIG the exclusive sales agent for a five-year period, MNBC agreed to pay the company a monthly fee of MVR25,000 (US$1,621) as well as 15 percent of all income generated through BIG.

Auditors found that the contract was awarded to BIG without a transparent and competitive bidding process.

While an announcement seeking a marketing consultant was made on January 3, 2010, the audit report noted that it made no mention of either an exclusive sales agent or a sales commission.

“Therefore, the bidding process was carried out in a way to facilitate undue benefit to a particular party,” the report stated.

The report further noted that MNBC did not share any documentation from the bidding and evaluation processes with the audit office.

In the absence of any documentation with the exception of the MNBC board’s decision to make BIG the exclusive sales agent, the report stated that auditors were unable to ascertain whether a cost-benefit analysis was carried out.

While MNBC’s income increased in 2010 and 2011, the report explained that there was no measure to evaluate BIG’s performance or assess the company’s contribution to the revenue growth.

MNBC was formed in January 2009 as a 100 percent government-owned corporation by the administration of former President Mohamed Nasheed.

The television and radio channels operated by the company were handed over to the Maldives Broadcasting Corporation (MBC) – created by an act of parliament in June 2010 – in the wake of the controversial transfer of presidential power on February, 7, 2012, during which the state broadcaster was stormed by mutinying police and soldiers.

The audit meanwhile revealed that as of August 2012 BIG was paid a total of MVR5.78 million (US$374,837) as sales commission.

Auditors were unable to verify from the available documentation – payment vouchers and invoices submitted by the company – that the commission was provided from additional income generated as a result of BIG’s work.

Moreover, BIG sought a further MVR6.7 million (US$439,040) in October 2012. The release of the funds was however halted on instruction from the Anti-Corruption Commission (ACC) pending the completion of an investigation.

Auditors concluded that BIG was not owed a commission from income generated from public announcements, SMS, my tones, advertisements, and airtime sales.

Based on the findings, Auditor General Niyaz Ibrahim recommended that the case should be investigated by the ACC and that action should be taken against the officials responsible for drawing up the agreement in a manner detrimental to the interests of MNBC.

Meanwhile, in March this year, three pro-government Malé City councillors alleged corruption in the awarding of the ‘Clean Green Malé’ project to BIG by the opposition Maldivian Democratic Party-majority (MDP) council. The allegations by the ruling Progressive Party of Maldives councillors were denied by those of the opposition party.

Other cases

The special audit also flagged four other cases of ostensibly corrupt practices at MNBC.

In January 2011, the Finance Ministry arranged a MVR47.8 million (US$3 million) loan from the State Bank of India to settle unpaid bills and develop an uplink system.

However, the uplink system project was halted after imported equipment was not paid for, auditors found. Of the US$3 million loan provided to MNBC, only US$127,000 was spent on the project for an advance payment and bank charges.

After paying an upfront fee, management fee, and interest payments, the report noted that the rest of the loan was used to pay salaries for MNBC staff and cover other recurrent expenditure.

As 85 percent of the loan was used for recurrent expenditures, the audit concluded that the purpose for which the loan was obtained was not served.

Moreover, as a result of MNBC’s failure to repay the loan in monthly installments at the end of the grace period in February 2012, the report noted that the State Bank of India liquidated the deposit kept at the bank by the Finance Ministry.

In another case, auditors found that MNBC provided MVR1.5 million to an individual in September 2011 to exchange for US$100,000.

While the individual was not licensed to exchange foreign currency, the state broadcaster has not received either the dollars or the rufiyaa as of the report’s publication.

As MNBC asked police to investigate the matter five months after the dollars were due, the audit office concluded that the corporation’s senior officials and board members were negligent and responsible for the loss.

The auditor general recommended an ACC investigation of the case and action against responsible officials.

In a third case highlighted in the report, auditors discovered that MNBC was owed MVR10 million (US$648,508) as of March 2012 for sales as well as services rendered.

As MNBC has since been dissolved, the report noted that no efforts were underway to recover the money owed.

Lastly, auditors found that the Finance Ministry provided MVR10 million to MNBC ahead of the 17th SAARC summit held in Addu City in November 2011 after the state broadcaster informed the ministry that it lacked funds in the budget to cover the summit.

In order to arrange the funds, the report revealed that the Finance Ministry decided to take MVR15 million (US$972,762) as dividends from the state-owned Kooddoo Fisheries Maldives Ltd.

A MVR10 million cheque sent to the ministry by Kooddoo was given to MNBC without depositing the funds in the public bank account as required by the Public Finance Act, the report revealed.

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200 searched and 79 arrested at music festival in Maldives

Seventy-nine individuals have been arrested with large amounts of drugs and cash after police raided the OTUM music festival last night (April 18).*

Police have revealed that 59 males and 19 females were arrested – with an underage girl and a foreign male included in the group.

The festival, which was organised by The Underground Movement collective, was a two day event on Anbaraa, Vaavu atoll – an uninhabited island around an hour and a half south of Malé.

A source who was as the event told Minivan News that a large group of police officers suddenly raided the island and made everyone lie on the ground before handcuffing them.

Haveeru has reported that the rest of those initially detained were released after testing negative for illegal substances.

According to one source, an estimated 60 people have been arrested and are being taken to Atolhuvehi, a custodial centre in Malé.

The remaining people who were searched and tested negative for illicit substances have been released, according to the source.

In addition, a local lawyer who wished to stay anonymous has informed Minivan News that he had gone to Athuluvehi at around midday today (April 19), which time the Police did not have any record of the detainees on their system.

“During that time they ought to have access to counsel but you don’t. If someone from Malé was to contact the police about a person detained, they would have no record of them”

“Normally you’d think the point of arrest would be as soon as the police retrains or detains you in any form – from what I’ve heard , most of them or all of them have been handcuffed and had their possessions searched and have been asked for body samples.”

“From what I hear, they may have been taken into custody – may be taken to court at 7:30pm as it’s a saturday. Only at 4pm the police will decide who will be arrested and processed,” the lawyer explained.

Additionally, the source explained that police cannot search people unless they have reason to believe that they are under the influence. He added that there were currently three lawyers working on the case, and will be meeting with the arrested people in the coming hours.

“We will be going to the custodial centre now,” he stated. “They will most likely get charged under the drugs act.”

Prior to the arrests, a local DJ Angie – who was set to perform at the festival – had told Minivan News that OTUM was a rare opportunity for local musicians to showcase their talents and play music they are passionate about.

OTUM had stated that they have a strict no alcohol policy: “Bouncers will check you when you board the ferry for any possession of sharp objects & any illegal substances,” read the event’s guidelines.

*A previous version of this article – published prior to police releasing official figures – gave an estimated total of 60 arrests following discussion with witnesses and lawyers.

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