Month: May 2014

Maldives “ideally placed” to be international financial centre, says CMDA chief

CEO of the Capital Market Development Authority (CMDA) Fathimath Shafeega believes the Maldives to be “ideally placed” to play the role of an international financial centre.

Describing the country as strategically well-placed, the head of the independent regulatory authority noted that the country’s nascent financial framework was both a weakness and a strength.

“We don’t have regulations hindering a lot of things,” noted Shafeega. “We can start from a clean slate.”

“But parliament needs to be very much involved in it. We might need to provide the software – laws and regulations and other policy frameworks – while investors can bring the hardware.”

Senior members of both the previous and the current administration have considered the development of offshore banking services as a way to diversify an economy heavily reliant on tourism.

“It’s very much still on the agenda,” said Shafeega.

Shafeega spoke with Minivan News following the release of the CMDA’s first quarterly report in 2014, which revealed the authority’s work this year had focused on drafting legislation to further modernise the market, as well as amending the Corporate Governance Code in order to increase gender diversity on the boards of publicly listed companies.

Islamic Finance

Established by the Maldives Securites Act in 2006, the CMDA’s quarterly report for the first time included details of the Islamic Capital Market – an area the report describes as having an “ever-green future in the Maldives”.

Indeed, Shafeega argued that the successful establishment of an Islamic Capital Market – featuring Shariah compliant financial products – would also add to the Maldives appeal as a future financial hub.

Introducing the quarterly update on the Islamic Capital Market development, Deputy Islamic Minister Dr Aishath Muneeza, argued that there was now a “global movement towards the creation of financial transactions based on underlying activities or underlying assets.”

“Relying on real economic activities has been the success secret of Islamic finance and now we are being forced to find innovative ways to adopt this method,” said Dr Muneeza.

Under Islamic Shariah, any risk-free or guaranteed rate of return on a loan or investment is considered riba, which is prohibited in Islam.

Also chair of the Capital Market Shariáh Advisory Council (CMSAC), Dr Muneeza this quarter became the first person granted Shariah advisor registration status in the Maldives.

CMSAC was created in December 2013 in order to advise the CMDA on the development of an independent Islamic Capital Market.

The council’s activities this quarter included the formulation of a five year plan to increase the availability of Shariah compliant services, raise awareness of Islamic finance, and establish an Islamic Finance Centre in the Maldives.

Writing for the Islamic Finance News website in March, Dr Muneeza  described Islamic Finance as “spreading like wildfire” since the introduction of Islamic banking and capital market services in 2011.

“It is hoped that in the upcoming years the Maldives can be used as a global case study to prove the success of Islamic finance,” she wrote.

Pensions

Shafeega also expressed confidence that the state pension fund – for which the CMDA plays a supervisory role – can soon successfully diversify its investment portfolio.

“As you know the pension system in Maldives has assumed that there will be a developed capital market. The development of the capital market has not kept pace with the pension development.”

Beginning in March this year, the government more than doubled the monthly pension – with individuals aged over 65 now receiving MVR5000.

The government had allocated MVR470 million (US$30.5 million) in the state budget to give out an MVR2,300 (US$149) in cash handouts, with head of the Cabinet’s Economic Council Ahmed Adeeb stating that “innovative” investment would prevent the need to divert funds from within the current budget.

The CMDA quarterly report noted that research had been carried out in order to ascertain potential avenues for investment beyond government or listed securities – the only options currently utilised.

“For the pension fund to be able to generate a good return for the members, we need to diversify the pension investment,” Shafeega told Minivan News.

“We need to find alternative investment that can generate a good return”

Shafeega also expressed confidence that the additional revenue could be realised, revealing that – following the authority’s recommendations – the government was planning to introduce changes to the Pensions Act during the 18th Majlis.

Likes(0)Dislikes(0)

State prosecutors push president for action on criminal justice crisis

State prosecutors today urged President Abdulla Yameen to bring an end to the criminal justice crisis caused by the leadership vacuum at the Prosecutor General’s (PG) Office.

The ongoing work stoppage at the office has brought the criminal justice system to a halt and prosecutors have refused to attend court following acting PG Hussein Shameem’s resignation last week.

In a letter to the president, prosecutors called for the immediate appointment of a new PG, arguing “[J]ust because we are the PG office’s staff, we do not believe we are authorised to perform the constitutional obligations of the prosecutor general.”

Yameen had previously said he would only submit a new nominee for parliamentary approval when the newly elected People’s Majlis convenes on May 28.

The president’s previous choice for the role—his nephew Maumoon Hameed—failed to gain the required number of votes in parliament last month. In contrast to the current Majlis, pro-government parties will enjoy a health majority in the 18th Majlis.

In their letter, prosecutors disagreed with Attorney General Mohamed Anil’s advice that the most senior official at the office must now take over the PG’s responsibilities. Anil had justified his opinion claiming the country was in a “state of necessity”—a situation where extra-legal actions by state actors, designed to restore order, are deemed constitutional.

However, prosecutors said the state of necessity argument was not valid as long as the Majlis and the president were capable of performing their constitutional duties.

“If there is a state of necessity, the [state] must appoint a prosecutor general according to the law, instead of appointing a party, whose legal status will be questionable, to the job” the letter noted.

“We do not believe we can be forced to act outside established laws,” the prosecutors went on, claiming the constitution and the PG Act does not allow a third party to take over the PG’s responsibilities.

Questionable legal status

Quoting the PG Act, the prosecutors said the only party authorised to carry out the office’s responsibilities was the Deputy PG, while any other work can only be carried out to the extent stated by the leadership.

If a third party were to take over, there were no legal provisions to hold them accountable or ensure their work is impartial, they noted.

“The public must have the assurance that a third party will work without bias, and that accountability mechanisms are in place. This is because the PG’s work is directly connected to public rights,” the letter stated.

Prosecutors also stressed that there must be no question regarding the legal status of PG office representatives in the courtroom given the serious nature of criminal cases.

“Any case the prosecutor general files involves the legal rights of the defendant and their families. It further involves the rights of those who have been physically, psychologically, and financially harmed, victims of sexual and inhumane crimes, and rights of their families. It involves the public interest,” the letter said.

Although the Supreme Court has said criminal trials can continue in the absence of a PG, Druge Court Judge Mahaz Ali has said such trials would be unconstitutional.

Meanwhile, the Bar Association and the opposition Maldivian Democratic Party (MDP) have called for the immediate appointment of a prosecutor general through the current Majlis to end the crisis.

Shameem resigned on May 6 citing the Criminal Court’s “obstruction” of criminal justice.

In his resignation statement, he 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.

The President’s Office put out a third call for names this week, claiming the previous number of applicants had been low during the second call. Shameem had expressed interest in the position both times, while local media has speculated that a third call will allow Hameed to resubmit his application.

Office spokesman Ibrahim Muaz told Minivan News that there was, as yet, no official response to the letter sent by state prosecutors.

Likes(0)Dislikes(0)

HRCM urges state to refrain from prosecuting children coerced into crime

With additional reporting by Daniel Bosley

The Human Rights Commission of the Maldives (HRCM) has noted the increase of child participation in serious crimes, stating that children coerced or forced into committing such crimes should not be prosecuted.

“It has come to our notice that children are taking part in serious crimes of late. As children are persons who are sometimes unable to reflect on their situations and judge wrong from right, the number of children who realise they are committing a crime will be few,” the commission said.

The HRCM described it as “unacceptable that some adults are coercing children to commit crimes so that they can remain safely in the background and free of legal repercussions while it is the children who are prosecuted for these crimes.”

“Crimes involving children must be fairly investigated, and those who coerce the children to commit those crimes must be duly prosecuted and brought to justice,” the statement continued.

The participation of young people in Malé’s prominent gang culture has been well documented, as have the links between organised crime and powerful local politicians and businessmen.

Police Commissioner Hussain Waheed also noted the increase in child offenders, stating that theft, assault, drug abuse, and mugging were the most common crimes into which children are coerced.

Waheed spoke of the importance of organising a national level movement to bring an end to children being forced to participate in criminal activity.

The HRCM called upon parents to be mindful and for the relevant state authorities to raise the rights of the child as their highest priority.

The commission’s statement – released on the occasion of Children’s Day – followed the government’s introduction of regulation enabling the reintroduction of the death penalty last month, which allows for the sentencing of juvenile offenders once they turn 18.

Urging repeal of the new regulations, the spokesman for the Office of the High Commissioner for Human Rights, Ravina Shamdasani, has said that such “deeply regrettable” practices contravened international law.

“We urge the Government to retain its moratorium on the use of the death penalty in all circumstances, particularly in cases that involve juvenile offenders and to work towards abolishing the practice altogether,” said Shamdasani.

Likes(0)Dislikes(0)

PPM leader Gayoom announces membership drive

The Progressive Party of Maldives (PPM) will undertake a membership drive, former president and leader of ruling party Maumoon Abdul Gayoom announced on Saturday.

At a meeting with the incumbent and newly elected PPM parliamentarians, Gayoom asserted that it was vital to further strengthen the party in order to ensure that it remains in government. He stated that the best way to do so is to increase the general membership.

He announced that the party has selected a ‘task force’ to undertake the work of increasing membership, and that work has already commenced in several atolls.

Likes(0)Dislikes(0)

Maldives joins global air traffic control association

The Maldives Air Traffic Controllers Association (MATCA) has joined the International Federation of Air Traffic Controllers Association (IFATCA).

MATCA’s president Saddam Ahmed Saeed and secretary Yusuf Naeem took part in IFATCA’s 59th annual general meeting, which was held in Spain on Friday (May 9), local media has reported.

The vice president of MATCA Amhaar Mahraan Mohamed told Haveeru today that being a member of an international organisation will provide the MATCA updated on the latest developments in professional opinions and security in the field.

“The international federation usually gives advice on improvement techniques and keeps us updated on new developments in the field. One of the biggest objectives of the association is to provide professional opinions and strengthen air transport facilities. We will be granted all these opportunities now that we are also a member there,” he said.

Likes(0)Dislikes(0)

Hanifaru clean-up completed in Baa Atoll biosphere reserve

A clean up project took place yesterday (May 10) in the Maldvies Baa Atoll – the Maldives’ first certified UNESCO biosphere reserve.

The clean up of Hanifaru Island and Hanifu reef maintenance was carried out by a large group of volunteers from within the reserve – including local councillors, police officers, and resort workers.

Baa Atoll was officially launched as a Biosphere Reserve in June 2012 by former President Dr Mohamed Waheed.

Obtaining the status of UNESCO biosphere resulted in significnant funding for the atoll, with the UNDP handing over a cheque for US$250,000 as a contribution to the fund at the opening ceremony.

Tourist resorts in Baa Atoll, including Soneva Fushi, Coco Palm, Four Seasons, and Anantara and several other resorts have also pledged donations.

The Baa Atoll Conservation Fund will be used to finance projects to conserve the environment in the atoll as well to support livelihood activities.

The United Nations Educational Scientific and Cultural Organisation (UNESCO) coordinates a world network of over 500 biospheres, which are designated as areas of conservation and innovative sustainable development.

In a recent statement from the Biosphere Reserve Office, the organisers extended their gratitude to everyone who helped with the clean up, assuring that together they can achieve the common goal of managing the reserve.

Participants in the cleanup of Hanifaru included those from the atoll council, Eydhafushi Island Council, Baa Atoll Education Centre, the Maldives Police Services, and Baa Atoll Hospital. The Hanifaru reef cleanup and maintenance was undertaken by Four Seasons, Seamarc, Reathbeach Resort, Dusit Thani, Seasplash, and Kihaad Maldives.

Likes(0)Dislikes(0)

Criminal cases in PG leadership absence unconstitutional, says Drug Court judge

Any trials of criminal cases in the absence of a prosecutor general (PG) and a deputy PG violates the constitution, Drug Court Judge Mahaz Ali has said.

Writing on his personal blog, Mahaz disagreed with the attorney general’s (AG) recent suggestion that the official in the senior most position at the PG office must take over the PG’s responsibilities.

AG Mohamed Anil claimed the country was in the midst of a “state of necessity” in the aftermath of acting PG Hussain Shameem’s resignation earlier this week.

The doctrine of necessity is the basis on which extra-legal actions by state actors, designed to restore order, are deemed constitutional.

Both the Maldivian Democratic Party (MDP) and the Maldives Bar Association have also spoken out against the government’s stance on the matter.

State of necessity

Mahaz wrote that the state of necessity argument was valid only if there was no legal solution, suggesting that there was no reason President Abdulla Yameen could not propose a name for approval by the People’s Majlis.

“A state of necessity is faced only when all legal avenues have been exhausted. In the current situation, the solution is to appoint a new prosecutor general. The current People’s Majlis is not in a situation where it cannot carry out its duties,” wrote the judge.

“The authority that must nominate a candidate [the President] is able to do so. Unless these two parties are in a state in which they cannot carry out their constitutional duties, a state of necessity will not be faced in the prosecutor general’s case.”

Although Shameem has called on the executive and People’s Majlis to approve a PG immediately, President Yameen said he will only submit a new nominee to the newly elected house – set to convene on May 28.

After a drawn out nomination process, Yameen’s previous choice for the role – his nephew, Maumoon Hameed – failed to gain the required number of votes in parliament last month. In contrast to the previous session, pro-government parties will enjoy a healthy majority in the 18th Majlis.

Judge Mahaz argued that the Supreme Court order on 6 February – which ordered criminal courts to accept cases filed by the PG’s Office – did not provide a solution, only mentioning how to act in absence of a PG. The Supreme Court order was prompted by the Criminal Court’s January decision to refuse new cases until a new appointment was made.

Mahaz also referred to previous case law regarding the Attorney General’s Office, noting that no superior court had deemed similar instances to be ‘situations of necessity’ requiring the next in line to take charge of the office.

In July 2010, the eight Civil Court judges unanimously decided they would not proceed with civil cases in the absence of an AG following then-AG Husnu Suood’s resignation.

Violation of independence

The Bar Association of the Maldives has also joined the debate, arguing that the AG’s advise was inconsistent with the Prosecutor General Act, and that Shameem’s resignation had created a leadership vacuum.

The resignation of the deputy PG while the position of PG was vacant had left the office with no official who could now assume its legal responsibilities, the association said, arguing state prosecutors cannot represent the PG in the courts in the current situation.

“Given that the prosecutor general’s position is an independent and impartial position, this office believes the government’s exertion of influence by ordering state prosecutors to attend courts is a violation of the office’s independence,” the association said in a statement.

Despite the Prosecutor General’s Act requiring the appointment of a new PG within 30 days of the position’s vacancy, Shameem has headed the office for over five month’s following the resignation of his predecessor Ahmed Muiz in November.

The Criminal Court was forced to cancel more than 100 cases last week as state prosecutors refused to attend hearings, doubting their current legal capacity to represent the PG’s Office.

The Hithadhoo Court in Addu City is conducting criminal trials, however, and is issuing verdicts in the absence of a state prosecutor. Court officials told local media on Thursday that they did not accept the justification of absence put forth by lawyers from the PG’s Office.

In his resignation statement, Deputy PG Shameem had 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.

The President’s Office put out a third call for names this week, claiming the previous number of applicants had been low during the second call. Shameem had expressed interest in the position both times, while local media has speculated that a third call will allow Hameed to resubmit his application.

The MDP has also commented on the current situation, accusing President Yameen of nepotism:

“In contravention to principles of good governance in democratic countries, it is evident is more for the president in this current state to appoint his nephew or other relatives to the position of Prosecutor General.”

Likes(0)Dislikes(0)

Supreme Court forms committee to review judicial laws

The Maldives Supreme Court has formed a Multi Stakeholder Judicial Sector Law Reform Committee to review and amend judicial laws on Wednesday.

According to the Supreme Court, the committee aims to reform laws, regulations, procedures and practice rules “to pave the way for social, political, and economic changes as per the constitution, enable the judiciary to protect the democratic environment, and strengthen the criminal, civil, and juvenile justice systems.”

The committee is to consist of Supreme Court judges, the attorney general, minister of home affairs, minister of finance and treasury, prosecutor general and the commissioner of police. The Supreme Court will appoint a secretariat to facilitate the committee’s work.

Noting the difference between judicial reform and law reform, former judicial watchdog member Aishath Velezinee criticised the Supreme Court’s move as an “encroachment” on the powers of the People’s Majlis and said the results may “lead to injustice before justice.”

Although the Supreme Court may formulate regulations to improve service delivery and functioning of the court system, the apex court’s leadership role in compiling amendments to laws “is out of bounds,” she said.

The process is flawed as no one can challenge the Supreme Court’s authority, she continued.

Several documents—including the 2013 report by the UN Special Rapporteur on Independence of Judges and Lawyers Gabriela Knaul—have already made recommendations on judicial reform, she said, arguing that “forming a law reform committee does not match identified issues.”

Knaul’s comprehensive report on the Maldivian judiciary called for increased financial and human resources for the judiciary, establishing performance indicators to assess administration of justice and courts’ performances, human rights training for the judicial sector and creating an integrated system of case management.

She also called for the reinstatement of the Judicial Council tasked by the Judicature Act with administration of the judiciary. The Supreme Court had abolished the body in 2010 and taken over its powers, claiming the council was unconstitutional.

“Many interlocutors reported that the dissolution of the Judicial Council and the direct control of the Supreme Court over the Department of Judicial Administration have had the effect of centralizing administrative decisions in the hands of the Supreme Court,” the special rapporteur stated.

With the council’s abolishment, “the only platform for internal communication within the judiciary where difficulties, challenges, experiences and opinions could be exchanged, disappeared,” she added.

Velezinee claimed the new law reform committee is a further example of the Supreme Court using its “power of supremacy to hinder reform.”

She also criticised the “politicised” composition of the new committee due to the absence of independent state institutions on the committee. Although the prosecutor general is to sit on the committee, the position has been vacant since November 2013, she noted.

“If this is about human rights, why is the Human Rights Commission not involved?” she said.

Moreover, disgraced Supreme Court Judge Ali Hameed’s involvement in the process “undermines its purposes,” she said.

Hameed has been implicated in a series of sex tapes publicised on social media in 2013, but the JSC has failed to take any action against the judge. Meanwhile, the prosecutor general has also filed corruption charges against Hameed for misuse of state funds.

The Supreme Court has justified the expansion of its influence over judicial administration by invoking Article 141 and 156 of the constitution.

While Article 141(b) states that the Supreme Court “shall be the highest authority for the administration of justice in the Maldives,” Article 156 states, “The courts have the inherent power to protect and regulate their own process, in accordance with law and the interests of justice.”

Likes(0)Dislikes(0)

India offered to build naval dockyard in Maldives, says Indian media

India’s Army Chief General Bikram Singh has offered to build a dockyard worth MVR 7.7 billion (US$ 500 million) in the Maldives in his ongoing visit, Indian media has reported.

According to the Deccan Herald, China had already offered to develop the Uthuru Thilafalhu lagoon in the archipelago’s north.

Reclamation work is already underway in the area. Once completed, it will serve as the Maldivian Coastguard’s primary operations base and will provide a much-needed berthing space to naval ships and ocean liners.

India’s Foreign Secretary Sujatha Singh, during a visit to the Maldives in February, visited the Uthuru Thilafalhu project site. Minivan News understands discussions are underway on Indian investment in the project, but it is not clear if a decision has yet been made.

In recent months, India has been steadily increasing defense cooperation with the Maldives including the gifting of two ‘Dhruv’ Advanced Lightweight Helicopters (ALH) and development of the military hospital Senahiya.

Ties with India came under strain during President Dr Mohamed Waheed’s administration in the aftermath of Indian infrastructure giant GMR’s abrupt eviction. The company had won a concession agreement to develop the main airport.

Waheed went on to strengthen military ties with China, sparking Indian concern over “a Chinese policy to throw a ‘string of pearls’ – or a circle of influence – around India.”

Speaking during an official trip to India earlier this year, new President Abdulla Yameen stated that while the Maldives has “close ties” with China, “nothing will precede ties with India, which are far more precious”.

“While we have had a slight rough patch with India, the time of good relations far outweigh the rough patches we had. I suppose it is easy for us to be on the right track again,” Yameen said, referring to the airport dispute.

Singh’s visit is the first by a serving Indian Defense Chief since General Deepak Kapoor’s visit in February 2010.

An Indian High Commission press release on Tuesday said Singh’s three day visit – set to conclude today – will “further enhance bilateral defense cooperation.”

“India’s commitment to Maldives defense has been growing with each passing year. Both countries have inter-linked mutual security interests which need to be protected for the safety and security of the South Asian region and the Indian Ocean,” the statement said.

During his visit, Singh met with President Yameen, Defense Minister Mohamed Nazim and the Maldivian Chief of Defense Forces Ahmed Shiyam.

Singh also discussed the possibility of supplying fast-attack craft, amphibious landing craft and small arms from New Delhi, reported the Deccan Herald.

Another potential project is to train 40-60 officers of the Maldivian National Defence Force (MNDF) in Indian training establishments, the article continued.

“All such topics were discussed. But we will reveal details at a later time,” said MNDF Deputy Spokesperson Captain Ali Ihusaan, when asked for a comment on reports by Indian news sources.

Chinese investments including a US$54 million for an IT infrastructure project sparked Indian concern in 2013, with Indian Ministry of Communications and IT saying Beijing’s state owned companies must be “kept at bay.”

According to Indian media, the ministry – in an internal government note – suggested “substantial investment in the Maldives on similar projects [as being planned by China] ensuring that the traffic between India and the Maldives is handled through the equipment installed and commissioned in the Maldives by India.”

Likes(0)Dislikes(0)