Month: August 2014

Harbour construction on-going in 48 islands, says housing minister

Harbour construction is on-going in 48 islands while work is expected to begin in a further 10 islands during the year, Minister of Housing and Infrastructure Dr Mohamed Muiz informed parliament yesterday.

Appearing for minister’s question time, Muiz said projects for six islands have been sent to the tender board last week.

“Our hope is to solve the problem in the next year or so for all islands facing embarking and disembarking difficulties. God willing, we will achieve this,” he said.

Opposition Maldivian Democratic Party (MDP) MP Mariya Ahmed Didi had asked Muiz how many harbours have been constructed since the current administration took office in November.

The former MDP chairperson said 58 harbours were constructed during the three years of former President Mohamed Nasheed’s administration.

Kuribee and Nellaidhoo harbours

Muiz was summoned to respond to a question tabled by MDP MP for Vaikaradhoo, Mohamed Nazim, concerning harbour construction on two islands in his constituency.

Nazim noted that President Abdulla Yameen had pledged to expand the Kuribee harbour and that work had stalled on the Nellaidhoo harbour.

Muiz explained that construction began in Kuribee in 2011 for a 300-feet long and 150-feet wide harbour while the harbour in Nellaidhoo was to be 400-feet long and 150-feet wide.

Both projects were awarded to the Works Corporation Ltd (WCL) under contractor finance rules with the government-owned corporation providing equipment and material, he said, which then subcontracted Heavy Force Pvt Ltd for MVR21.5million (US$1.3 million).

However, construction stalled over difficulties faced by WCL in providing reinforcement boulders and the subcontractor stopped work on July 2012 after dredging and quay wall construction.

Of the 34 projects awarded to WCL in 2010 and 2011, an audit found that the government canceled 24 after the corporation failed to commence work. WCL had completed only one infrastructure project.

In late 2012, former President Dr Mohamed Waheed dissolved WCL and formed an office called public works under the Ministry of Housing and Infrastructure.

The public works division subcontracted Heavy Force to carry out the remaining work, Muiz continued, and agreed to provide equipment and material through the State Trading Organisation (STO).

“However, STO also faced difficulties providing reinforcement boulders and the work stalled for about 14 months with Heavy Force unable to continue,” he said.

Project changes

The present administration subsequently changed the project to a normal material and labour contract – “as is done in other islands” – and subcontracted Heavy Force for a cost of MVR36.3 million (US$2.3 million) in February this year, he revealed.

Muiz stressed that the decision was made based on the “counsel and advice” from elders and councillors from both islands.

As Kuribee islanders had requested widening the harbour to 200-feet and President Yameen had pledged to do so during a campaign trip, Muiz said the old quay wall had to be rebuilt with an additional 50-feet dug into the island.

Muiz said further “variations” would be undesirable as the project has been costly.

Public finance regulations stipulate a 10 percent limit for variations to projects, he explained, adding that the tender board only allowed exceptions on rare occasions.

On the stalled project in Nellaidhoo, Muiz said the both the contractor and supervising staff from the ministry had said that construction was proving difficult due to strong ocean currents.

The ministry and the contractor decided to build the outer seawall first, Muiz revealed, which is expected to begin in a month.

“Our target is to finish the harbours on both islands during this year,” he said.

In a follow-up question, however, MP Nazim said Kuribee islanders wanted the length of the harbour increased as well.

In response, Muiz said additional changes could be made in another phase after completing the project and “seeing how it is being used.”

Muiz also offered updates to a number of other MPs about harbour construction for islands in their constituencies. While harbour construction usually takes 12 months, he explained that delays were often caused by shortage of material.

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President presents MIRA’s “Ran Laari” awards

President Abdulla Yameen presented the Maldives Inland Revenue Authority’s (MIRA) “Ran Laari” (golden laari) awards at a ceremony last night to 11 taxpayers that paid the highest amount of tax last year.

According to MIRA, taxes paid by the 11 recipients accounted for 17 percent of the MVR9.8 billion (US$636 million) collected as tax revenue in 2013.

The five private companies that paid the highest amount in taxes were Villa Shipping and Trading Company, Trans-Maldivian Airways, Crown Company, Kurehdhoo Holding, and Sunland Hotels.

Among government-owned companies, the award was presented to the Maldives Airports Company while the daughter of former Vice President Mohamed Waheed Deen, Aminath Sheznee, the late Hussain Shakir, BHM owner Hussain Moosa, and Helegili resort operator Annie Mary Emmy were given the award in the individual category.

Speaking at the ceremony in Dharubaaruge, President Yameen said MIRA’s efforts were “credit worthy” and praised the authority’s employees.

The “litmus test” for MIRA’s success and efficiency should be how much the cost of administration declines every year, he added.

Yameen suggested that the authority’s target should be spending 10 laari for every MVR199 (US$13) collected as tax revenue.

MIRA’s work would have to be “amplified” in the future in conjunction with the government’s efforts to diversify the economy and broaden the tax base, he said.

The tax base, structure, terminology, and methodology would be very different from the current “simplistic corporate taxation” once new industries are introduced, Yameen explained, referring to a possible petroleum tax as an example.

A custom duty levied at the border for imported goods for the easiest tax to collect as opposed to value added taxes such as sales taxes, he noted, which involves a much higher cost of administration.

In the future, he added, all sales transactions should “ultimately” be viewable on a MIRA main frame as it would significantly lower administrative costs.

Taxation in any country inevitably involves “tax fraud,” Yameen continued, which involves tax evasion and deliberate fraud.

While the current administration did not wish to criminalise and prosecute businesses, Yameen said cases of tax evasion could not be disregarded.

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Immigration ceases issuing quotas for foreign farmers, tailors, and barbers

The department of immigration and emigration has temporarily ceased issuing quotas to employment agencies to bring in foreign workers for farming, tailoring and barbershops.

The department said in a press release yesterday (August 11) that the freeze was enforced on August 7 and would continue till October 30.

The move was intended to assist efforts to deport undocumented workers, reduce the influx of expatriate labour, and provide job opportunities for Maldivians, the department explained.

The immigration department deported 6,400 undocumented workers between January and July this year.

A special operation to deport undocumented workers was announced on April 24, with Minister of Defence and National Security Mohamed Nazim – also in charge of the immigration department – promising “the whole Malé will be cleaned [of migrant workers]” within three weeks.

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Majlis approves president’s nominees for Police Integrity Commission

President Abdulla Yameen’s nominees to replace three members of the Police Integrity Commission (PIC) at the expiration of their five-year terms were approved at today’s sitting of parliament.

The three new members of the police watchdog body are Fathmath Sareera Ali Shareef, of special registry number 1320, Mohamed Farhad, of Seenu Meedhoo Hasankaarige, and Ali Nadheem, of Henveiru Gloriosa.

While Sareera and Nadheem were approved with 73 votes in favour and none against, Farhad was approved with 56 votes in favour and 18 against.

The president’s nominee to replace a fourth member on the PIC – who had resigned – was meanwhile rejected today. Adam Zahir, of Maafanu Kurolhi, was rejected with 61 against, five votes in favour, and three abstentions.

The People’s Majlis also passed government-sponsored amendments to the Lagan, Derelict, Flotsam and Jetsam Ownership Act of 1998 with 74 votes in favour and none against.

Amendments to the Police Act of 2008 was meanwhile accepted and sent to committee for further review with 74 votes in favour.

Both amendments were proposed by the government to make minor revisions to remove inconsistencies with the new constitution adopted in August 2008.

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Wave of the future: Surfing and the end of exclusivity

Professional free-surfer Dave ‘Rasta’ Rastovich, defeated seasoned campaigner Taylor Knox in the grand final of the Four Seasons Maldives Surfing Champions Trophy yesterday (August 10) to be crowned the 2014 champion.

The event saw six former world champions, including Knox, Rastovich, Sunny Garcia, Taylor Jensen, Fabio Gouveia, and Rochelle Ballard battling it out all week at Sultans Point.

For the third consecutive year, Hussein ‘Iboo’ Areef won the hotly contested Domestic Champions Trophy which showcased the island nation’s depth of surf talent. The ‘goofy footer’ (right foot forward stance) defeated Ismail ‘Kuda Issay’ Miglal, Amid ‘Ammaday’ Agil and Mohamed ‘Billu’ Irushad.

All six former world champions were impressed after watching the local final, with Contest Director Ross Phillips noting, “the standard of surfing today in the Domestic Champions Trophy was world class. It was a tough final and Iboo was a deserving winner.”

“The Maldivian Surfing Association is forging ahead in leaps and bounds. It’s fantastic to watch surfing progress at both a performance and organisational level in the Maldives,” he added.

Fewer barriers to local involvement

This is the fourth year that Four Seasons and Tropicsurf have held the event, and the third year that Maldivian talent has competed in the domestic category.

After national champion Areef last year highlighted the need for more local involvement in the competition, many of this year’s competitors agreed that there has been a vast improvement in the involvement of local surf community.

Spearheaded by collaboration with the Maldives Surf Association (MSA), the 2014 competition saw more local involvement, including Maldivian shadowing judges.

There remains one change Afeef would like to see in next years competition, however.

“It would be great to get a chance to surf against the champions, even just one local guy to compete in the main event,” stated Areef.

Similarly, Dave Rastovich commended the local surfing talent and stressed the need for local participation.

“Its crucial to involve the local community, especially in surfing. There have been big divides,” Rastovich told Minivan News.

Rasta went on to highlight the important link between privatisation and the divide between local and international surfers.

“[Exclusivity] always created a lot of division between communities. Division between visiting people and locals.”

“It suits a few, but to the detriment of the many,” Rastovich warned.

Rastovich, a dedicated marine conservation activist, went on to highlight some of the environmental issues faced in local oceans – a topic which has often intertwined with Maldivian surfing culture.

“There are so many great species of fish [in the Maldives] that you don’t see in Indonesia anymore, you don’t see in parts of Australia anymore, and certainly don’t see them throughout Asia.”

“So the great thing about here is that you’re not there yet. There’s still species, there’s still populations here, you have the time. It’s a no-brainer both ecologically and economically to preserve and protect,” encouraged Rastovich .

The end of exclusivity?

Speaking at the grand final ceremony yesterday, Minister of Tourism Ahmed Adeeb explained the government’s new enthusiasm for the development of surfing in the Maldives.

“It was the youth who identified, who kept pushing us, to develop the surf,” explained Adeeb.

“The surf points were exclusive for the resorts and hotels here, but we have ended exclusivity for the locals.”

The surf breaks of the Maldives have been a battle-ground in recent years, with local surfers, ministries and resorts engaged in heated debate since 2011 over access to the waves.

After years of pressure from local campaigning against privatisation, the Maldives government appears to have retracted its original stance, announcing that all popular surf and dive spots have been freed from any access restrictions.

“We believe there are a lot of surf points in the Maldives that need to be protected, and we need to make it a sanctuary for the surfers,” stated Adeeb.

Ahmed Aznil, president of the MSA, pointed out that free breaks are not all plain sailing.

“A free for all, without the necessary legislative and management holds in place would eventually lead to chaos.”

The key to success, argues Aznil, is keeping the breaks well managed and to maintain clear communication between the government and stakeholders.

Meanwhile, the next Maldives’ surf competition will be the Red Bull Both Ways event, held at Sultans breaks between August 20 – 30. The competition, which has fifty slots for Maldivian surfers, challenges Maldivian and Sri Lankan surfers to ride both left and right waves.

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Corruption charges pile up against former NDMC heads

The Anti-Corruption Commission (ACC) has accused former National Disaster Management Center (NDMC) heads Abdulla Shahid and Mohamed Shahid of defrauding the state of MVR 250,000 (US$16,181).

The two men (unrelated) had authorised payment from the state budget for an electricity generator, after it had been donated to Haa Dhaal Kumundhoo Island by MP ‘Colonel’ Mohamed Nasheed via a private company, the ACC said.

In June 2013, police and the ACC accused the former State Minister Abdulla Shahid and former NDMC Director Mohamed Shahid of fraud involving MVR24million (US$1.55 million).

Regulations on public finance management require state bodies to obtain multiple price quotations for any purchase worth more than MVR25,000 (US$1,618). The requirement can only be bypassed in a situation of emergency.

However, Abdulla Shahid had admitted there was no emergency in Kumundhoo case, said the ACC.

According to the commission, the Finance Ministry had allocated MVR250,000 in the 2010 state budget for procurement of a second-hand generator for Kumundoo on the President’s Office’s order.

The Finance Ministry specifically ordered the NDMC to disburse funds as per public finance management regulations, the ACC said.

Instead, the NDMC deposited the funds directly to a shareholder of the company involved in donating the generator for Kumundhoo. There only communications between the NDMC and the company were regarding the payment, the ACC said.

“Investigations prove this transaction violates the Public Finance Act. [The generator] was not procured by the state, but by an MP for his constituency in his personal capacity, and investigations prove the state’s payment for [the generator] is abuse of position to benefit a third party,” the ACC said.

The ACC does not clarify the connection between MP Nasheed and the company.

Mohamed Shahid is the brother of MP and former Speaker of the People’s Majlis Abdulla Shahid.

The commission has recommended the prosecutor general file charges against Abdulla Shahid and Mohamed Shahid for abuse of position and order them to reimburse the MVR250,000 to the state.

The Maldives Police Services in February 2013 arrested Abdulla Shahid and Mohamed Shahid in a corruption case involving MVR24 million after an Auditor General’s special report revealed the NDMC had photocopied, edited and reused ‘Credit Purchase Order Forms’ used in 2005, to withdraw the MVR24 million from the centre’s budget at the Finance Ministry.

The ‘Credit Purchase Order Forms’ were originally given to the Disaster Management Centre in 2005 to withdraw cash from the Tsunami Recovery Fund.

The auditor general’s report also suggested that the finance ministry was complicit in the alleged fraud.

Police have requested the prosecutor general press charges against Abdulla Shahid, Mohamed Shahid and seven other individuals.

The ACC in March 2012 had also accused the NDMC of corruption in a 2006 housing project worth MVR18million.

In 2013, the commission began investigation in 1316 cases of corruption, and completed 620 cases. The ACC forwarded 178 cases for prosecution.

Despite increased reports of corruption, the conviction rate is very low in the Maldives.

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Majlis approves new ambassador to China and public representative to JSC

The People’s Majlis today approved Dr Faisal Saeed as the new ambassador to China with 70 votes in favour and four abstentions.

Abdul Hannan Ahmed was meanwhile approved as the public representative on the 10-member Judicial Service Commission with 44 votes in favour and 18 against. Hannan is reportedly a lawyer for the ruling Progressive Party of Maldives.

The five-year term of current public member Shuaib Abdul Rahman is due to expire at the end of August.

Also at today’s sitting, amendments submitted on behalf of the government to the Anti-Corruption Act were accepted with unanimous consent of 72 MPs and sent to committee for further review.

The revisions to the law enacted in 2000 was part of a raft of bills proposed by the government to bring outdated laws in line with the new constitution adopted in August 2008.

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Pro-government MPs reject Dr Shakeela’s re-nomination as health minister

Dr Mariyam Shakeela failed to secure parliamentary consent today after MPs of the ruling Progressive Party of Maldives (PPM) and ally Maldives Development Alliance (MDA) voted against approving her as Minister of Health.

Of the 73 MPs in attendance, 61 voted against endorsing her reappointment to the cabinet while 11 voted in favour and one abstained.

PPM reportedly issued a three-line whip against approving Shakeela following a secret ballot at a parliamentary group meeting this afternoon.

The health ministry has been under fire following a series of protests over regional healthcare services and mishaps in Malé.

The state-owned Indira Gandhi Memorial Hospital (IGMH) – long criticised for lack of qualified doctors and inadequate medical facilities – transfused HIV positive blood to a patient in February due to an alleged technical error.

In June, Fuvahmulah councillors called for Shakeela’s resignation after a case of stillbirth, an interrupted caesarean, and the death of a soldier on the island. A few weeks later, over 300 protestors demonstrated in Haa Dhaal Kulhudhuffushi over deteriorating conditions at the regional hospital.

Shakeela was up for parliamentary approval today for a second time after President Abdulla Yameen modified her initial portfolio as Minister of Health and Gender.

During a debate today on a report by the independent institutions committee – which narrowly recommended endorsing her appointment – PPM MP Mohamed Musthafa accused Shakeela of reversing a decision by the previous minister to raise wages for doctors under a 48-hour work week.

He claimed that Shakeela had reduced working hours to 45 hours and lowered salaries.

“The consequence was all specialists working at IGMH and doctors in hospitals in the atolls and health centres leaving the Maldives,” he said, adding that the health minister should bear responsibility for the alleged exodus.

Musthafa suggested that “circumstances have changed” since President Yameen nominated Shakeela for the post.

MPs of the opposition Maldivian Democratic Party (MDP) also voted against the health minister while Jumhooree Party (JP) MPs voted in favour.

MDP MP Rozaina Adam accused the health ministry of taking measures against health sector employees who provide information to opposition MPs. Such workers were threatened with dismissal and accused of “pestering” the government, she claimed.

Rozaina also strongly objected to the committee being unable to interview Shakeela due to a Supreme Court ruling.

JP MP Hussain Mohamed meanwhile noted that appointing cabinet ministers was a prerogative of the president, suggesting that the parliament’s confirmation role was a formality.

The party decided to endorse her as Shakeela’s reappointment implied that the president must have had confidence in her ability to implement his health policy, he said.

Health policy

Meanwhile, at a press conference yesterday, Shakeela said that the health sector had been strengthened despite “pressure” from elements within the government.

Shakeela insisted that she would not resign in the face of “obstacles and challenges” and said that President Yameen had not asked her to do so.

Shakeela contended that she had inherited a health sector “in ruins” with limited human resources and crumbling health centres and medical equipment.

She alleged that senior officials “within the system” were “obstructing” the ministry’s efforts.

Shakeela said she would “respect” the PPM MPs’ decision, but insisted that it would not be based on her performance.

Defending her track record, Shakeela said the ministry has formulated and submitted legislation to parliament on health services, health professionals, medical negligence, and medical devices.

The administrative framework of the health sector had been reviewed and revised, she said.

Shakeela said 70 percent of infrastructure had been damaged when the current administration took office, which has commenced repair work on 24 health centres at a cost of MVR14.1 million (US$914,397) while projects for repairing a further 49 centres were in the tendering process.

Contracts have been signed for constructing an 11-storey building for IGMH and upgrading the dialysis unit, she continued, adding that efforts were also underway to upgrade the Vilimalé health centre to a hospital.

Moreover, the ministry was purchasing equipment to upgrade the Hithadhoo and Kulhudhufushi regional hospitals to tertiary level, she said.

Among other ongoing projects were a quarantine facility and halfway house in Hulhumalé, a maternity waiting home in Kulhudhufushi, and newborn care centres.

A project to repair speedboats was also underway, Shakeela said, which has seen 13 out of 28 speedboats resume service. Four sea-ambulances have also been launched to fulfil a PPM campaign pledge, she noted.

While only 42 of 199 ambulances were functioning when she assumed office, Shakeela said 110 were now being used.

Noting that 80 percent of employees in the health sector were expatriates, Shakeela said the government was finding it hard to recruit professionals from overseas due to loss of confidence in the health sector by foreign workers.

A four-year long term plan for the health sector was being implemented, she noted.

Work has also begun on integrating a general practitioners service with the government’s ‘Aasandha’ health insurance scheme, Shakeela said.

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Thulusdhoo murder an act of revenge, reveals police

The chief suspect arrested in connection with the fatal stabbing of a 35-year-old man on the island of Thulusdhoo in Kaafu atoll has confessed to murdering the victim in an act of revenge, Chief Inspector Abdulla Satheeh told the press yesterday.

Mohamed Niyaz, 34, confessed to investigators that the victim, Ali Shiham, had accused him of stealing from a construction site under the latter’s supervision, Satheeh explained.

Satheeh noted that Niyaz had previously been arrested 10 times in relation to theft and drug abuse offences.

Niyaz had voluntarily submitted to police on the night of the murder. Satheeh said police have wrapped up the investigation and forwarded the case to the Prosecutor General’s Office.

Briefing press on the fatal stabbing of an 18-year-old man in Malé on August 2, Satheeh said that the victim – Mohamed Mazin, of Dhiggamaage in Noonu Miladhoo – had no connection to gangs in the capital.

Of the four suspects connection with the murder, Satheeh said a 22-year-old suspect was arrested from Vilifushi in Thaa atoll, noting that all four had criminal records for assault.

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