Month: April 2014

Committee approves amendment for state to cover expenses of president’s and vice president’s private residences

A parliamentary committee has approved amendments proposed to the law governing remuneration and benefits for the president and vice president for the state to cover expenses of the pair’s private residences.

If the president and vice president choose not to live in the official residences, the amendments stipulate that the state should provide employees and cover other expenses out of the budget allocated for the official residence.

The amendments submitted by Progressive Party of Maldives (PPM) MP Riyaz Rasheed were sent to a select committee for review following preliminary debate on March 31.

The bill was sent to committee with 29 votes in favour and 17 against with no abstentions. While pro-government MPs voted in favour, MPs of the opposition Maldivian Democratic Party (MDP) voted against the legislation.

After completing the review process in two meetings, the seven-member committee voted unanimously to send the bill (Dhivehi) without any changes to the People’s Majlis floor, where it will be put to a vote.

In addition to Riyaz Rasheed, the select committee comprised of government-aligned Jumhooree Party (JP) MPs Ilham Ahmed, Hussain Mohamed, and Ahmed Sameer along with PPM MP Moosa Zameer, Maldives Development Alliance MP Ahmed Amir, and Adhaalath Party MP Ibrahim Muttalib.

The opposition MDP was not represented in the committee.

Immediately after being sworn in on November 17, President Abdulla Yameen announced he and his vice president – Dr Mohamed Jameel Ahmed –  would be fulfilling a campaign pledge of only taking half of the MVR100,000 (US$6500) salary afforded to the head of state.

“The reason behind this is that Dr Jameel and I both live a simple life. No matter what has been said about us we are not wealthy. We want to be an example to others and lead by example,” Yameen said.

After assuming office, President Yameen announced that he would continue to live in his private residence while Dr Jameel moved into the official vice presidential residence, Hilaaleege.

However, despite Yameen’s decision, the budget allocated for the official residence was increased by MVR2 million (US$130,208) in the state budget for 2014 – rising to MVR19.1 million (US$1.2 million).

In December last year, Parliament’s Budget Review Committee Chair Gasim Ibrahim – leader of the JP – said the increased budget was necessary in case the president decides to move to Muleeage.

Highlighting the increased budget for Muleeage at the time, MDP Spokesperson Hamid Abdul Ghafoor described Yameen’s decision to live in his personal house as a “symbolic act.”

“Unlike in the past, even media points out inconsistencies in what leaders say and what reality presents these days. I do not believe the public will be deluded about any of this,” Hamid said.

“While Yameen might have thought his decision will get people thinking that he is a humble man, reality is that ultimately, the state is having to spend much more of its funds to maintain this decision of his. People are much more aware now than in previous PPM times. People can see he’s just trying to score political points.”

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MIRA to collect additional MVR110 million from telecoms tax

The Maldives Inland Revenue Authority (MIRA) expects to collect an additional MVR110 million (US$7.1 million) per year from taxes on the the telecommunications sector.

MIRA announced this week that telecommunications services will be subject to Goods and Services Tax (GST) – currently at 6 percent – from May 1.

The move comes as the government continues to introduce new revenue raising measure to address the MVR3.4 billion (US$224 million) shortfall in this year’s record MVR17.95 billion budget.

On Monday (April 14), the People’s Majlis is set to consider amendments to the Import-Export Act which propose raising custom duties on a number of items from the current zero rate to five, 10, and 15 percent or higher.

The items include diesel, sugar, sweets, cotton, rope, carpets, textiles, fur, man-made filaments, ready-made garments, and steel.

This week has also seen MIRA release its March revenue figures, which show an increase of 22 percent compared with the same month last year.

March’s figures were distorted, however, after after February’s GST payment date was extended into March as the deadline fell during a holiday.

The figures show that 54.8 percent of revenue came from GST, which includes Tourism Goods and Services Tax (T-GST) – scheduled to rise from the current 8 to 12 percent in November this year.

Last month’s figures showed a marked improvement on the previous month’s collections after the Majlis’ failure to renew the tourism bed tax in December had resulted in reduced earnings during January (reflected in February’s collections).

After the Finance Minister Abdulla Jihad warned that this loss of income could amount to US$6million month, the decision was made to reintroduce the bed tax – charged at a flat rate of $8 per bed night – until November this year.

Bed tax amounted to over US$4.5 million in March, or 7.1 percent of MIRA’s collected revenue which came to MVR938.2 million. Over 75 percent of March’s income was received in US dollars.

The authority’s figures for 2013 showed an income of MVR8.7 billion – of which 60 percent was denominated in dollars.

Despite this foreign currency income, however, dependence on imported goods results in a persistent dollar shortage, with just 2.7 months worth of reserves remaining at the end of February.

Proposals to increase government revenue were debated during February’s emergency Majlis sessions which also resulted in the requirement that resort lease extensions be paid within 2 years.

Additionally, the government has suggested that the Airport Service Charge, which has seen MIRA collect US$7.9million from foreigners leaving the country this year, be increased by 38 percent.

A World Bank report at the end of 2013 urged the government to reduce spending in order reduce the “unsustainable” public debt which currently stands at 81 percent of GDP, and could rise to 96 percent by 2015.

“Maldives is spending beyond its means and financing the budget risks affecting the real economy,” the report said.

Meanwhile, the outgoing governor of the MMA in December called for the state to reduce expenditure and to cease from printing money.

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Night market contract terminated, ACC informs city council

The Anti-Corruption Commission (ACC) has informed Malé City Council that its agreement with Go Media Pvt Ltd for organising the annual night market in the capital was terminated last year.

In a press release yesterday, the commission noted that it had been informed by the previous city council on November 21 that the five-year contract with Go Media had been invalidated.

The ACC press statement comes after Go Media announced that this year’s night market will be held from May 1 to 10 at the tsunami memorial area with 460 tables and 62 tents.

Go Media General Manager Ibrahim Amir told local media that the company had not been informed of the termination, suggesting that this could only be done by a court following litigation.

The ACC has yesterday noted that it had received a copy of a letter sent to Go Media by the city council informing the company of the contract termination.

“And the council has been told that the commission believes that going ahead with the terminated contract would be unduly benefiting a particular party,” the statement read.

Go Media’s Amir revealed that 85 percent of stalls had been sold already, noting that preparations for the market were ongoing with the city council’s authorisation.

Mayor Mohamed Shihab meanwhile told the press that the night market will go ahead as scheduled as the council has not been ordered by any state institution to terminate the agreement.

The new council’s stance was to honour agreements entered into by the previous council, Shihab said, contending that the council could be sued if it terminated contracts on its own accord.

Shihab said, however, that the council would comply with instructions from relevant authorities to cancel any agreement.

“I am surprised that the ACC has not told us to terminate the agreement if there was corruption involved,” he was quoted as saying by newspaper Haveeru.

The mayor was unavailable for comment today.

Corruption

Earlier this month, the ACC asked the Prosecutor General’s (PG) office to press corruption charges against three ex-councillors as well as three senior staff over alleged abuse of authority in the awarding of the contract to Go Media.

Following an investigation – prompted by a complaint filed in March 2013 alleging corruption in the bidding process –  the ACC found that Go Media Pvt Ltd was registered eight days before the city council’s announcement seeking a party to organise the night market.

However, the council awarded full marks to the company for experience during its bid evaluation process, the ACC revealed.

While the committee that evaluated the proposal determined that Go Media’s team had experience in organising such events, the ACC noted that the company did not submit any documentation as proof of experience.

Moreover, the council’s request for information document did not state that marks would be awarded for experience.

Of the three ex-councillors facing corruption charges, Ibrahim Shujau and Ahmed Hameed ‘Fly’ were elected on Dhivehi Rayyithunge Party tickets in 2011 before defecting to the Maldivian Democratic Party (MDP) and the Jumhooree Party, respectively.

The third ex-councillor – former Deputy Mayor Ahmed Samah Rasheed – was elected on an MDP ticket.

Shujau meanwhile contested in last month’s parliamentary elections as the MDP’s candidate for the Galolhu South constituency, losing to incumbent MP Ahmed Mahloof.

None of the 11 councillors of the Male’ City Council elected in February 2011 were re-elected in the second local council elections that took place on January 18.

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Government to address pay discrepancies as civil servants plan strike action

The Maldives Civil Servants’ Association (MCSA) has discussed a potential strike on April 20 should the government fail to address its concerns – mainly concerning pay discrepancies.

“First we want to find a solution through dialogue with the government. After that, if we have to, we will go on strike. And we are confident if we go on strike ninety percent of civil servants will support it,” MCSA President Mohamed Shaugee said.

Stating that the past three governments and parliament should take responsibility for the delay in setting a minimum wage, Shaugee said “the state as a whole has failed”.

President Abdulla Yameen is concerned about the issue of pay discrepancies and will find a solution through discussions with relevant parties, President’s Office Spokesperson Ibrahim Muaz Ali has said today.

“This is not a president who makes decisions based on his personal views alone. There will be discussions. The views and sentiments of the civil servants, doctors, and everyone will be considered in reaching a decision in this matter,” said Muaz.

Civil Servants’ Strike

“Even the Civil Service Commission has failed to protect the rights of civil servants and ensure there is no discrimination [with regards to pay],” said the MCSA’s Shaugee.

“We have discussed this with them, and they said they are working on resolving it. But it is hard to believe as we have been talking about this for the past six years.”

Responding to the civil servants’ plans to go on strike, the Civil Service Commission (CSC) issued a press release today reminding workers of the mandatory steps to be taken prior to a strike, which include filing a complaint with the Labor Relations Authority and giving written notice to the employer three days prior to any strike.

Employees who contravene this regulation can be fined between MVR10,000 – 50,000.

The Teachers Association Maldives (TAM) which led the teachers’ black protest earlier this week  has also threatened to go on strike as a last resort in their fight to resolve pay discrepancies.

President of the association Athif Abdul Hakeem said that, while no official discussions have taken place with the government since the protest, the teachers’ steering committee and focal points will meet this Friday to decide their course of action.

“We have been talking about [minimum wage] since the association was formed in 2008. We have been focusing on two major issues, one is resolving pay discrepancies. Equal pay. Second issue is improving the education sector in general, including resources, training and standards of teachers,” said President of TAM Athif Abdul Hakeem.

Athif noted that with parliament majority, the government can easily change things if there is a political will.

“If [President Yameen] wants to do those things for us, the means are there now. I believe it can be done and it should be done.

The demand for a minimum wage has been raised by Tourism Employees Association of the Maldives (TEAM) as well.

Minimum wage

The Employment Act of 2008 mandated the establishment of  a salary advisory board shall be established to advise the government on the appropriate minimum wage, though no government has yet fulfilled this requirement.

The pay advisory board had been established in September 2008 by President Maumoon Abdul Gayoom and again in January 2009 by President Mohamed Nasheed, with no minimum wage resulting.

In May 2011, Nasheed announced his intention to set a minimum wage within a year, reconvening the pay advisory board.

Shortly after Nasheed’s initial promise, a number of business groups led by representatives of the Maldives Association of Construction Industry and the Maldives Association of Tourism Industry met to discuss the issue, determining that a minimum wage was “not important for the Maldives at the moment.”

Speaking at the press conference organised by the business groups, leader of the Jumhooree Party and Chairman of Villa Group Gasim Ibrahim said that setting a minimum wage suddenly without a good policy would destroy industry.

His thoughts were echoed by Ahmed Shiyam, Chairman of Sun Siyam resorts and leader of the Maldives Development Alliance.

Similar comments were made by current Deputy Leader of PPM Ahmed Adeeb, who at the time spoke as the treasurer of Maldives National Chamber Of Commerce and Industry.

Adeeb said that it would create great challenges for businesses if an equal minimum wage is set for both migrant workers and locals.

In December 2012, parliament passed a bill on the state wage policy which promised to resolve public sector pay discrepancies through the creation of a National Pay Commission.

The bill is still in the parliament’s economic committee, however, after being sent back for reconsideration by President Dr Mohamed Waheed, after issues were raised regarding which branch of the state would determine wages.

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Attorney General resumes issuing lawyers permits

The Attorney General’s (AG) Office has resumed issuing permits for lawyers after the publication of new regulations (Dhivehi) governing legal licences today.

The AG’s Office announced last December that it was ceasing the issuance of licenses pending amendments to regulations governing the legal profession.

Former Attorney Husnu Suood – also president of the Maldives Bar Association – has suggested that the regulations had been drafted without sufficient input from within the legal profession.

“We have brought to the attention of the Attorney General that the new regulation should involve the profession,” Suood told Minivan News after discussing the new regulations with fellow lawyers today.

In order to practice law in the Maldives, the new regulations state that an individuals must be a Maldivian citizen, married to a Maldivian, or reside in the Maldives, must be 18 years old, and must be of sound mind.

Prospective lawyers must not hold convictions for any hadd offences, for criminal breach of trust, or for rape. If an individual has been convicted of any other offences, seven years must have passed since the sentence was completed or pardoned.

Suood took issue with the regulation’s failure to define what the ‘other’ offences consisted of, particularly in light of the recent spate of contempt of courts cases.

“It’s very scary with the contempt issue – they can fine us or make an order for house arrest of 15-30 days. If we are unable to actually practice for seven years onward, that’s too much actually.”

A bill to regulate the legal profession is included in the government’s 207-bill legislative agenda, to be pursued during the current administration’s five year term.

In the absence of a law governing the legal profession when the new constitution was adopted in August 2008, parliament passed a General Regulations Act – recently renewed – as parent legislation for over 80 regulations without a statutory basis, including the regulation governing lawyers.

Appropriate regulator?

A 2013 report by UN Special Rapporteur for the Independence of Judges and Lawyers Gabriela Knaul argued that the AG’s role in the regulation of the legal profession was “contrary to the basic principles on the role of lawyers”.

Powers to issue licenses to practice laws as well as enforce disciplinary measures should not rest with the executive, Knaul advised.

Moreover, Knaul recommended that a “self-regulating independent bar association or council should be urgently established to oversee the process of admitting candidates to the legal profession, provide for a uniform code of ethics and conduct, and enforce disciplinary measures, including disbarment.”

Local lawyer Mohamed Shafaz Wajeeh told Minivan News today that, for the time being, the AG’s Office was the most appropriate body to be regulating the industry.

“We already have a legislation in the pipeline with considerable involvement from the Bar Association. I hope the bill is passed soon,” said Shafaz.

The Supreme Court’s attempts to regulate the legal profession in 2012 prompted an emergency meeting of the country’s top lawyers – prior to the formation of the Bar Association in April 2013.

The court’s regulations required all lawyers to be registered with individual courts before they could represent their clients there. Open criticism of the courts was also proscribed.

Suood today suggested that the AG’s regulations now created “two parallel systems” which “contradict with each other”.

“I think that the new regulations should have included the Supreme Court regulations because one issue we face day-in and day-out is that if there is an action administrative action taken by the court, for instance contempt of court issue and they take disciplinary action, we are unable to challenge those administrative actions.”

The Bar Association earlier this week called for the suspension of Supreme Court Judge Ali Hameed pending an investigation into allegations over the judge’s appearance in a series of sex tapes.

The group’s statement came just days after the suspension of its president, former Attorney General Husnu Suood, had been lifted by the court on the condition he refrain from engaging in any act that may undermine the courts.

Suood was told his January suspension was related to an allegedly contemptuous tweet regarding the Supreme Court’s decision to annul the first round of last year’s presidential election.

Charges of contempt were also used by the Supreme Court to dismiss senior members of the Elections Commission just two weeks before last month’s Majlis elections.

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State Trading Organisation aims to produce 1000 jobs in 3 years

The Managing Director of the State Trading Organization (STO) Adam Azim has said that the company will produce 1000 jobs within the next 3 years.

Adam Azim said that the company is looking to establish a capable work force across the Maldives, reported local media Sun Online.

“A thousand jobs will be produced with the health sector pharmacies and hypermarkets that we plan to establish,” he added.

The company has plans to invest in the development of its staff with training and education opportunities for the next four years, Azim told Sun.

“We will invest in education, regardless of the cost,” Azim said.

The state-owned STO is the country’s primary wholesaler, responsible for bringing in the vast majority of basic foodstuffs, as well as investing in oil and the tourism industry.

The company was announced bankrupt by President Yameen in November 2013, following which the companylaunched a campaign to cut operational costs by MVR50 million in 2014 (US$ 3,242,542).

More recently, in March 2014, the STO told local media that a five-star hotel it is building in Hulhumalé will be fully completed by January 2015.

STO has also announced on April 6 2014 that they will be placing three additional oil storage tanks in Kafu Fuadhoo, in a bid to increase the oil capacity.

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Jumhooree Party fined for fraudulent membership applications

For the second time this month Elections Commission has fined Jumhooree Party (JP) over fraudulent membership applications.

According to the commission, the JP used one person’s finger print on multiple party application forms – the fifth time the party has been caught doing this.

The JP have now been asked to pay a fine of MVR9,000 as per Article 48 (a) of the Political Parties Act.

The party was fined with MVR8,000 earlier this month for the same reason.

Along with the JP, the Progressive Party of Maldives was also fined MVR7,000 for submitting party application in contravention of the Political Parties Act for a third time.

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High Court throws out EC appeal against new member Habeeb

The High Court has thrown out an appeal by the Elections Commission (EC) against its newly appointed commission member Ismail Habeeb.

Habeeb was made redundant in January 2013 before contesting his dismissal at the Labor tribunal. The tribunal ordered his reinstatement in August 2013, by which time he had been appointed to the Civil Court as its senior administrator.

The EC initially demoted Habeeb on corruption allegations in 2012 claiming he had not followed due procedures in appointing an EC staff and in awarding a scholarship to another staff. But the Anti-Corruption Commission (ACC) cleared Habeeb of the charges.

The EC decided to appeal the tribunal’s decision at the High Court, but the commission’s lawyers failed to attend the hearing scheduled for Monday.

In the meantime, Habeeb was appointed by the People’s Majlis to the EC on March 12 to replace former member ‘Ogaru’ Ibrahim Waheed who had resigned in October 2013 citing health issues.

Habeeb’s confirmation to the EC followed the Supreme Court’s controversial removal of the commission’s President Fuwad Thowfeek and Vice President Ahmed Fayaz.

The dismissals left the EC without the three members required for a quorum to hold meetings and approve decisions, raising doubts over the commission’s ability to prepare for and conduct parliamentary elections as scheduled on March 22.

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MPs’ alcohol trial cancelled as Jabir remains in hospital

The Criminal Court has today cancelled an alcohol possession hearing against opposition MPs Abdulla Jabir and Hamid Abdul Ghafoor as Jabir remains in hospital for a second day over respiratory issues.

Jabir who is currently serving a one-year jail sentence for refusal to provide urine was hospitalized at Indhira Gandhi Memorial Hospital (IGMH) on Tuesday morning, but his condition is not serious, the Maldives Correctional Services (MCC) told Minivan News today.

The two Maldivian Democratic Party (MDP) MPs were arrested from a private picnic island, Hondaidhoo, in November 2012 on suspicion of alcohol and drug use.

The Prosecutor General’s Office pressed separate charges of refusal to provide urine and alcohol possession against the two MPs. The MDP has said the charges are politically motivated.

Hamid received a police summons on Tuesday requesting him to attend the Criminal Court under a police escort. The hearing at 2:00 pm was cancelled due to Jabir’s inability to attend court.

While Hamid and Jabir faced refusal to provide urine charges separately, the Criminal Court is hearing alcohol possession charges against the two MPs in one case.

A new hearing has been scheduled for April 22. If found guilty, the two MPs may be jailed up to three years.

Speaking to Minivan News before the hearing, Hamid said he had not been told which charges he was to answer to today and expressed concern he may be summarily sentenced.

The Criminal Court in October 2013 sentenced Hamid in absentia to six months in jail for alleged failure to attend court in the refusal to provide urine trial.

The High Court overturned the sentence stating the lower court had scheduled hearings in contravention to the Parliamentary Privileges and Powers Act during People’s Majlis work hours.

Hamid’s refusal to provide urine charges are still pending.

Media Official at MCC Moosa Rameez said Jabir’s condition was stable and doctors were keeping him under observation.

Jabir’s wife Dhiyana Saeed told local media the MP had been born with respiratory defects and had undergone several surgeries in the UK and Singapore.

In a text to MDP parliamentary group members, Dhiyana said: “The pulmonologist who saw him says his previous surgeries or severe sleep apnoea has failed and needs to be admitted.”

Sleep apnoea is a type of sleep disorder characterized by pauses in breathing or instances of shallow or infrequent breathing during sleep.

Former President Mohamed Nasheed’s Special Envoy Ibrahim Hussein Zaki, Press Secretary Mohamed Zuhair and his wife Mariyam Faiz, Zaki’s son Hamdhan Zaki and Alidhoo Resort’s General Manager Jadulla Jameel were also arrested along with the two MPs.

The PG has charged Zuhair and his wife with refusal to provide urine, whilst Hamdhan Zaki faces charges of cannabis trafficking. Jameel is charged with alcohol possession and cannabis possession.

The six arrested on Hondaidhoo have accused the police of torture and brutality during their arrest.

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