Day: May 7, 2014

Government plotting to “destroy decentralization,” says Malé Deputy Mayor

The Housing Ministry’s efforts to appropriate lands and property under the Malé City Council is an organized effort to discredit the council, destroy the decentralization system and punish Malé citizens for voting for the opposition Maldivian Democratic Party (MDP), Deputy Mayor Shifa Mohamed has said today.

Since the takeover of the Dharubaaruge Conference Center, the ministry has asked for the hand over of two additional parks developed by the council, Shifa told Minivan News.

“This is an organized joint effort by the ministry and the government to discredit the council and destroy the decentralization system. When taking back lands [from the city council] is among the very the first decisions of the cabinet, it can also be seen as a revenge against people living in Malé, and people from all over the country who are living in the city. I dont think Malé citizens deserve this spirit of revenge from the government for voting for the MDP,” she said.

The ministry’s official reason for taking over the parks is “unlawful activity” taking place at the parks, but Shifa said the ministry failed to provide details of such activities.

The council had developed the two parks – Fini Park or Bondibai Park and City Park – with cafeteria services in 2012 in order to prevent drug dealing and criminal activity, Shifa said, accusing the government of taking back the parks to reverse gains.

President Abdulla Yameen’s administration is preventing the council from serving the people of Malé, she added.

“Even earlier [with Dharubaaruge and other lands] they could not give a valid reason or explanation. They just said it was based on the Attorney General’s advice which no one has ever seen. This time they say are saying unlawful activity without telling us what these activities are,” she said.

Police involvement

Council Member Shamau Shareef told local media yesterday that the Maldives Police Service was not cooperating with the council to clear out gang hangouts in Malé City’s public spaces. The police are “afraid to touch” such areas, Shamau claimed.

In response, the police said the council had not issued an official permit requesting action.

The council yesterday sent a letter requesting Commissioner of Police Hussain Waheed to stop police participation in Dharubaaruge takeover without a court warrant, and asked him to investigate the incident.

No plan for development

In an official statement released yesterday, the council said the government is appropriating lands and property under the council without any plans for development and said the ministry has confirmed the absence of such a plan to the council in writing.

Regulations on transfer of lands between the local and central government states the government is authorized to take over land from the councils on a cabinet decision for socio- economic purposes and national security purposes.

The ministry also intends to take over the artificial beach, carnival area, south harbour area, lands near the T-Jetty and Usfasgandu area on the city’s southeast.

The council condemned the “unlawful takeover,” noting that the police and housing ministry officials who entered and changed Dharubaaruge locks yesterday had done so without a court warrant or any official document indicating the center had been transferred to the ministry.

The council called on President Yameen and senior members of the government to take action against such unlawful actions and asked the government to ensure the implementation of its policies would not harm the citizens of Malé City.

The statement also explained that the Ministry of Finance and Treasury rejected the council’s request in December 2012 for funds to repair a badly damaged and deteriorating Dharubaaruge.

According to the council they were asked to utilize funds allocated for the council in 2013, and the council informed the ministry the funds were insufficient for repair. However, the ministry refused to release additional funds, the council claimed. Copies of the letters was shared with the media.

When funds were denied, the council handed over the maintenance and development of Dharubaaruge to a private company, under a public-private partnership agreement through a public bidding process.

The council statement also said the ministry’s actions were “without any respect to the legal contract between the council and a private party” and without considering  how the action may affect members of the public.

Although MDP dominates the council, a council member from the ruling Progressive Party of Maldives (PPM) Zaidul Ameen has also condemned yesterday’s incident.

The MDP has on several occasions accused the ruling PPM of opposing decentralization and said their policies reflect the party’s founder President Maumoon Abdul Gayoom’s centralized policies.

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Indian Chief of Army Staff to visit Maldives

India’s Chief of Army Staff General Bikram Singh will arrive in Maldives tomorrow on a two-day official visit. During the visit he will hold official bilateral talks with Maldives’ Chief of Defence force Major General Ahmed Shiyam.

He is also expected to pay courtesy visits to President Abdulla Yameen and Minister of Defence and National Security Mohamed Nazim.

General Singh’s  predecessor Chief of Army Staff General Deepak Kapoor also visited the Maldives in February 2010.

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Funds raised in Maldives to support terrorism abroad: State Department

The Maldivian government believes that funds are being raised in the country to support terrorism abroad, according to the US State Department’s 2013 country report on terrorism.

The report however noted the absence of “reliable information regarding the amounts involved.”

“While no official studies yet have been conducted, the Maldivian Central Bank believes that criminal proceeds mainly come from domestic sources, as a large percentage of Suspicious Transaction Reports (STRs) are related to Maldivians,” the report revealed.

“The Maldives Monetary Authority [MMA] reports that hawala systems (informal money transfer networks) are being used to transfer funds between the islands, although the extent to which these systems are used to launder money is still unclear.”

AML/CFT

While the government monitored “banks, the insurance sector, money remittance institutions and finance companies, and requires the collection of data for wire transfers,” the report noted that “financial institutions other than banks and intermediaries in the securities sector” were not subject to anti-money laundering/countering the financing of terrorism (AML/CFT) obligations in 2013.

Consequently, insurance companies and intermediaries, finance companies, money remittance service providers, foreign exchange businesses, and credit card companies “operate outside the AML/CFT framework.”

Moreover, non-profit organisations were not required to file suspicious transaction reports while such organisations were neither monitored nor regulated “to prevent misuse and terrorist financing.”

The report added that the government does however monitor and regulate “alternative remittance services”.

The government meanwhile “did not report any efforts to seize terrorist assets in 2013.”

Capacity building of regulatory bodies – MMA and the Capital Market Development Authority – and law enforcement agencies such as the police, Anti-Corruption Commission, customs and immigration, was needed to counter money laundering and terrorist financing, according to the government.

AML/CFT legislation drafted by the MMA was passed by the People’s Majlis last month and ratified by President Abdulla Yameen on April 13.

The new law introduced rules governing financial transactions and the inflow and outflow of money from the Maldives.

The bill was expedited by parliament’s national security committee at the urging of a high-level delegation from the Asia/Pacific Group on Money Laundering (APG), which warned MPs of “negative consequences” of failure to enact the legislation.

The absence of legislation “makes Maldives very vulnerable to money laundering and terrorist financing,” APG Executive Secretary Dr Gordon Hook told MPs in February. The vulnerabilities were identified by the International Monetary Fund (IMF) in a report prepared in 2011.

Radicalisation

The report further noted growing concern since 2010 “about the activities of a small number of local violent extremists involved with transnational terrorist groups”.

“There has been particular concern that young Maldivians, including those within the penal system, may be at risk of becoming radicalized and joining violent Islamist extremist groups. Links have been made between Maldivians and violent extremists throughout the world,” the report stated.

A counter-terrorism analyst previously involved in law enforcement told Minivan News today on the condition of anonymity that the most worrying aspect for the Maldives was the vulnerability of youth to radicalisation.

“Youth are vulnerable to organised crime as well, not just violent extremism,” he said, noting the absence of data or statistics as well as studies into radicalisation of youth.

On the efforts to counter violent extremism, the report noted that the government pursued counter-radicalisation initiatives last year.

“In 2013, the Ministry of Islamic Affairs conducted more than a dozen seminars and workshops on preventing violent extremism for religious leaders, educators, and local government officials,” the report stated.

While several people “possibly associated with violent extremism” were arrested during the year, the report noted that existing laws “severely limit” the prosecution of such cases.

As a result, it added, “the number of convictions was limited.”

The Maldives participated in the State Department’s Anti-Terrorism Assistance (ATA) programme while the US also provided training in “fraudulent travel document recognition” to over 100 immigration officers.

“Maldives has few laws that effectively control the movement of people and money in and out of the country. Due to its sprawling island geography and insufficient technological capabilities, the Maldivian Coast Guard currently cannot effectively patrol Maldivian waters,” the report observed.

The report also noted the installation of PISCES (Personal Identification Secure Comparison and Evaluation System) at the Ibrahim Nasir International Airport (INIA) as well as the Male’ seaport with US assistance in August 2013.

Meanwhile, earlier this week, the New Indian Express reported that a Sri Lankan arrested in Chennai on terrorism charges was also targeting locations in the Maldives.

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Deputy PG’s resignation “irresponsible,” says President Yameen

President Abdulla Yameen called Deputy Prosecutor General Hussein Shameem’s resignation “irresponsible” and said criminal cases must proceed at the courts.

Shameem resigned on Monday citing the Criminal Court’s “obstruction” of the criminal justice system. State prosecutors are refusing to attend court hearings in the absence of a Prosecutor General (PG) and deputy PG. The PG position has been vacant since November 2013.

Shameem has called on the executive and the People’s Majlis to immediately appoint a new Prosecutor General, but Yameen said he will only submit a new nominee to the newly elected 18th People’s Majlis. Yameen’s Progressive Party of the Maldives (PPM) holds a majority in the new parliament.

“Now that we have acquired majority seats, we are becoming more comfortable. God willing, we will be able to acquire a full majority in parliament. I do not have the confidence that we will be able to get the required 39 votes if we initiate a special meeting of the current parliament,” Yameen said.

The current Majlis is in recess and it’s term is set to expire on May 28. It had previously rejected Yameen’s nephew Maumoon Hameed for the position.

Yameen said the executive would put out a third call for applicants, claiming the President’s Office had not received enough applications during the second call.

Five individuals had expressed interest. They are Shameem, Tourism Minister under the MDP administration Mariyam Zulfa, Criminal Court Judge Muhuthaz Muhusin, lawyers Aishath Fazna Ahmed and Mohamed Shah. A third call will allow Hameed to submit an application once again.

Speaking to local media, Yameen said he does not accept Shameem’s resignation at a time when the state does not have a serving PG, and said criminal cases must proceed as long as the courts allow it.

“I do not understand it. I cannot accept it. So I think the best option is to go forward with the regular cases, except the major cases, even if there isn’t a Prosecutor General, as long as the courts allow it, isn’t it? I will be very pleased if things happen in this manner,” he told the newspaper Haveeru.

Chief Justice Ahmed Faiz Hussein has also said criminal cases must continue.

“The Constitution does not recognize the post of a Deputy Prosecutor General. What the Constitution accepts is a Prosecutor General. About four months have passed since we last had a Prosecutor General. That issue has been already reviewed. The situation has not changed,” Faiz said, referring to a Supreme Court order on February 18.

The order was issued in response to the Criminal Court’s refusal in January to proceed with all criminal trials in the absence of a PG, and refusal to begin new trials in February.

The Criminal Court released a statement today announcing that it will abide by the Supreme Court order and continue conducting cases.

In a resignation statement, Shameem said he was unable to fulfill his duties due to the Criminal Court’s failure to prosecute foreigners involved in drug trafficking, delays in issuing rulings on drug related offenses and “unreasonable obstacles” in filing cases at the court.

“These issues obstruct the proper functioning of the criminal justice system. I am deeply saddened to note the extreme delay on the part of those who have the power to address these issues,” he said.

PG Office Spokesperson Hussain Nashid was not responding to calls at the time of press.

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Maldives tuna source UK’s first certified sustainable tuna sandwich

Tuna caught in the Maldives is the source of the UK’s first certified sustainable tuna sandwich, UK media have reported.

The Supermarket chain Sainsbury’s uses the Marine Stewardship Council (MSC) certified pole and line caught tuna from the Maldives in its new range of sandwiches.

The MSC ‘eco-label’ is said to provide consumers with the assurance that a product is traceable back to a certified and sustainable source. In November 2012, the Maldivian pole and line skipjack fishery received the certification for its low-impact technique where each wild fish is caught individually to reduce by catch.

“By choosing tuna from the Maldives tuna fishery, Sainsbury’s is supporting artisanal fishermen who have made an international difference to the way the Indian Ocean fishery is managed,” the Marine Steward Council’s Senior Country Manager Toby Middleton said.

He went on to describe the move by Sainsbury’s as a milestone for sustainable seafood.

The Maldives’ skipjack tuna fishery is the first Indian Ocean tuna fishery to receive the MSC certification. At the time, Minister of State for Fisheries and Agriculture Hussain Rasheed Hassan said export prices for Maldivian tuna would increase with the certification.

“There is a much better opportunity to sell abroad now, and despite our tuna already selling at a premium rate, I believe this certification will mean it is very likely that the prices will increase further,” he said.

In November 2013, the European Union declined to extend the duty-free status of imported fish from the Maldives following the country’s failure to comply with international conventions concerning freedom of religion.

The Maldives exports 40 percent of its US$100 million fishing industry to the EU, its single largest export partner by value.

Until January 2014 those exports were duty-free under the Generalised System of Preferences (GSP) program, a non-reciprocal trade agreement extended to developing countries.

Maldives’ Fisheries Minister Ahmed Shafeeu said the government’s application for a year’s extension under the ‘GSP Plus’ program was declined as it had not ratified all 27 required international conventions.

He warned that the sudden imposing of a 14- 20 percent duty on fish imports would lose the Maldives its competitive advantage over the larger fishing fleets of nearby Sri Lanka and Thailand, and reduce profits to “a marginal value.”

The Maldives National Chamber of Commerce and Industry (MNCCI) slammed the EU in March, claiming the organization was attempting to spread values that Maldivians do not accept.

“When they took this action against us, they did not consider that the Maldives is the country that does fishing the most environmentally friendly way,” MNCCI Vice President Ismail Asif said.

Fisheries is the country’s largest employer at 40 percent and second largest industry.

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Maldives Trade Union set up to advocate for SME rights

A trade union to protect the rights of small and medium businesses has been established in the Maldives.

The Maldives Trade Union (MTU) held a meeting on May 5 to select members to its governing board. Founder Fuad Zahir was automatically appointed as MTU’s president. An estimated 180 businesses have joined the union, local media reports.

Zahir, who heads Treasure Biz International, called the Maldives’ nascent tax system “failed” and said there was a culture of increasing taxes in the country.

Zahir and the Maldives Inland Revenue Authority (MIRA) had previously clashed over his company’s refusal to register for the Goods and Services Tax (GST).

On receiving an audit notice in 2012, Zahir told the MIRA over the phone that it could not conduct an audit of the company and claimed the law authorizing MIRA to conduct audits were against the constitution, a 2013 statement from MIRA said.

MIRA then sent in auditors to seize documents from Treasure Biz in December, 2012. Zahir filed a case to retrieve the documents at the Civil Court, but MIRA returned the documents in January 2013 before a ruling was issued.

An official from the authority told Minivan News today said they had asked the Prosecutor General to file tax evasion charges against Treasure Biz.

The two Vice Presidents of MTU are Shamha Trader’s owner Abdul Rasheed, and Venus pvt ltd’s owner Ali Hussein.

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Police arrest an ‘illegal’ mango vendor

The Maldives Police Services arrested an expatriate mango vendor at the Malé local market for “illegal” mango vending, local media have reported.

The man had also set up shop in the parking zone. The police confiscated the vendor’s mango boxes and arrested a man who attempted to stop the expatriate vendor’s arrest.

Expatriate workers brought in on work visas are not allowed to work as vendors, Sun Online said.

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Three arrested in connection with drug cases

Police have arrested three persons in connection with three different drug related cases.

In a statement issued today the police said a 36 year-old man was arrested from the island of Dhaandhoo Island in Gaafu Alifu Atoll.

Police said the man had thrown away something on seeing police officers on patrol on the street, and when police officers examined the items they found it was a cellophane packed with illegal drugs.

Another 26 year-old man was also arrested from the island on May 6 with five cellophane packets containing illegal drugs.

The third person was arrested in Malé on May 5 with six rubber packets containing illegal drugs. The man had run away from the police when he was stopped on suspicion of possessing illegal drugs.

But police officers managed to arrest him and take him to Maafannu Police Station.

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President approves US$ 25 airport service charge hike

President Abdulla Yameen Abdul Gayoom has ratified a law raising airport service charge from departing foreign passengers to US$ 25.

The law will come into force in July and is part of the current administration’s revenue raising measures.

The government anticipates over MVR 100 million (US$ 6.4 million) in additional revenue from the increased departure tax.

The People’s Majlis has also approved other revenue raising measures proposed by the government, including hiking import duties, reintroducing the bed tax until the end of November, raising the Tourism Goods and Services Tax (T-GST), and introducing GST for telecommunications services from May 1.

A proposal by the administration of former President Mohamed Waheed to raise the service charge to US$30 was narrowly defeated in April 2013.

The 1978 law imposing the airport service charge on departing passengers was first amended under the Maldivian Democratic Party government and raised to US$18.5 for foreigners.

The imposition of a similar Airport Development Charge (ADC) of US$25 by Indian infrastructure group GMR was previously a major point of contention for the Waheed administration, which terminated the concession agreement with the GMR-led consortium to modernise the airport in December 2012.

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