Day: April 5, 2015

Ruling party wins Alifushi by-election amid bribery claims

The  ruling Progressive Party of the Maldives (PPM) has won a council by-election in Raa atoll Alifushi amid accusations of vote-buying and a high-profile handout of air-conditioners to the local school.

PPM candidate Aminath Ali won 685 votes at the by-election held on Saturday, while Ali Hameed, the candidate from the main opposition Maldivian Democratic Party (MDP), received 490 votes of a total 1175 valid votes cast.

However, the MDP said it had not been a fair fight, as members of the PPM had donated air-conditioners and cash to the island school shortly before the vote. They also alleged that vote-buying had taken place.

The MP for Alifushi constituency, Mohamed “Bigey” Rasheed Hussein, told Minivan News: “PPM did not campaign. They bought votes and used tactics of anti-campaigning.”

A government delegation that included ministers and parliamentarians visited Alifushi two weeks before the by-election and handed MVR 10,000 from First Lady Fathimath Ibrahim to the island school, while presenting the donation of air-conditioners.

Asked about the air-con systems, Ahmed Nihan, leader of the PPM parliamentary group, said: “The ACs were gifts from Abdul Raheem Abdulla [vice president of the PPM].”

“Members giving out gifts is not intended for corruption or to influence the election,” he added.

Nihan said that MPs being socially involved and helping citizens did not constitute a reason to accuse them of corruption, and denied any connection with the vote.

The PPM’s election win in an opposition stronghold parliamentary constituency indicated the growing support for the government, despite the recent coalition between MDP and former PPM allies, the religious conservative Adhaalath Party and Jumhooree Party.

“This is a government win over the MDP, Adhaalath Party and the Jumhooree Party, over all opposition parties. We are very proud since we won this election at a time when all of these parties were on the island campaigning against us,” PPM deputy leader and tourism minister Ahmed Adeeb said.

A landmark study by the International Foundation for Electoral Systems (IFES) found last year that more than one in three Maldivians were offered bribes for their votes or witnessed vote buying in the March 2014 parliamentary polls.

It said vote buying in the Maldives had assumed “alarming proportions”.

Accusations also surrounded a visit by Ahmed Sulaiman, president of the elections commission, to Alifushi, with the MDP claiming he was involved in door-to-door campaigning for the PPM.

According to Rajje.mv, the elections commission said Sulaiman was at Alifushi on an official visit and that they had no knowledge of wrongdoing.

During the campaigns, the two parties traded blows over the unfulfilled promise of a sewerage system for the island, with PPM representatives blaming Rasheed, the MP, who voted against the overall government budget in parliament.

Rasheed said, however, that it was down to the government to fulfil its promise of a sewerage system. “They should work according to their word,” he said.

Rasheed said he did not believe vote-rigging could have taken place on by-election day, as observers from both parties were present at polling stations.

PPM president Maumoon Abdul Gayoom, who was president of the Maldives for 30 years until 2008, congratulated the PPM candidate via Twitter, saing: “Warm congratulations PPM candidate Aminath Ali on a resounding victory in Alifushi council by-election today.”

The councillor’s position on Alifushi became vacant when Abdul Latheef Abdul Raheem, also with the PPM, resigned.

PPM will be holding a firework display, its customary celebration, on Alifushi tonight.

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Businesses around Maldives protest electricity subsidy cut

Most shops, cafés and restaurants in the northern business hub of Haa Dhaal Kulhuduhfushi were closed in protest over electricity subsidy cuts on Sunday as anger builds among companies around the Maldives over steep rises in power bills.

Businessmen demonstrated in Addu City in the south, while others in Gaaf Dhaal Thinadhoo are preparing to boycott paying their bills, which in some cases tripled overnight when the subsidy was removed.

In Kulhuduhfushi, more than 100 shops and restaurants will be closed until 8pm Sunday in protest over “unfair electricity rates” and subsidy cuts, while more than 100 people have been protesting outside the office of electricity company Fenaka since this morning.

Shops would normally open from the early morning until 10pm.

“We will continue to raise our voice till the government is ready to listen to us,” said Adam Shareef, a member of the steering committee on electricity subsidy cuts in the island.

“We will continue our protest outside the electricity company till the government responds, but the shops will reopen tonight.”

The government has removed electricity subsidies to companies from last month onwards, while domestic households have been told to reapply for subsidies before April 9.

Businesses in Kulhuduhfushi, Addu and Thinadhoo have condemned the subsidy cuts and are also angry about the high price of electricity in the atolls compared with the capital, Male’ City.

Only a few shops were open in Kulhuduhfushi today, including the two state owned shops run by State Trading Organization and the businesses of Mohamed Zuhair, a well-known businessman in the atoll.

“I do support the cause and I think the differences in electricity prices are a gross discrimination between the peoples of the atolls and the people of Male’ City,” said Zuhair, also a member of the steering committee.

“But closing down all the shops without giving due warning to the public will not benefit them. That’s why all of my shops are open.”

Zuhair said one of his shops had previously received monthly bills of MRV 23,000 ($1,500) and these have now shot up to 60,000, while another store’s bill tripled from MVR 7,000 to MVR 21,000.

The difference in electricity prices between Male’ and the atolls is an issue of big public concern.

Prices in Haa Alif, Haa Dhaal, and Shaviyani atolls are 72 percent higher than in the capital, while those in Addu City and Fuvahmulak are up to 37 per cent higher than in Male’ city, according to figures from Fenaka Corporation, which provides electricity for most islands in the Maldives.

Mohamed Ismail, a local from Kulhuduhfushi, said: “We feel like we are second class citizens. The state is providing electricity for the islands as well as Male’.

“So why should there be any difference? Are we not worthy of being treated fairly?”.

Meanwhile a group of businessmen in Addu City in the south also protested over differences in electricity prices and the subsidy cut.

“Some businesses did not accept the electricity bills and today a number of businessmen protested outside the electricity company office,” said the mayor of Addu City, Abdulla “Sobe” Soadhig.

Businesses in Gaafu Dhaalu Thinadhoo, also in the south, have decided not to pay the electricity bill until the government reinstates subsidies or prices fall.

“We are in talks with the government to find a solution to this problem. But we cannot simply wait and hope for a government response,” said Abdulla Saneef, a Thinadhoo council member.

“The steering committee, which pretty much covers all businesses, has already decided not to pay the electricity bills.”

The government has previously said that the large distances between the Maldives’ remote islands mean that services such as electricity will inevitably be more expensive in the atolls.

The International Monetary Fund has urged the government to move its subsidies to a targeted system, rather than blanket payments.

Fenaka had not responded to queries at the time of going to press, while President’s Office spokesperson Ibrahim Muaz was unavailable for comment.

The government, presenting its 2015 budget, said that it would target electricity subsidies to the poor, while rumours have been circulating on the social media that households with air conditioning systems would not receive the domestic subsidy.

However, Mujthaba Jaleel, CEO of National Social Protection Agency (NSPA) said that “every household that applies for the subsidies will get it,” according to Haveeru.

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Discount flats for state officials undermine trust: Transparency

Transparency Maldives has called on the state to refrain from providing “any form of gratuities and privileges to state officials” following the hand over of flats to high-ranking officials.

The government awarded luxury flats at discount prices to Supreme Court judges and four heads of independent bodies including the Anti-Corruption Commission in what it called an attempt to “ensure their integrity”.

The awarding of flats to state officials can be perceived as an attempt by the executive to exert undue influence, Transparency said.

While the state can provide privileges to state officials “based on need and limited to the duration of employment of individuals”, Transparency Maldives expressed concern that the flats are “permanently contracted by the executive to public officials holding time-bound positions of the state”.

“The offering of arbitrary privileges to public officials holding high-ranking positions and the acceptance of such privileges will undermine public trust in these institutions,” the anti-corruption NGO warned.

“TM also notes that upholding integrity in the performance of high-ranking public posts is an integral and core mandate of such positions, and should not be incentivised through handouts of property or other forms of personal enrichment.”

The government has defended its decision to offer discounts on the flats to selected judges and chiefs of independent bodies.

Co-chair of the Economic Council Ahmed Adeeb told a press conference last week that the apartments were awarded to “ensure the integrity of independent institutions”.

“The flats were not handed out. The recipients have to pay for them. This will result in ensured integrity of independent institutions and moreover it will strengthen the state,” he said.

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MDP launches petition for Nasheed release

The main opposition Maldivian Democratic Party has begun collecting signatures on a petition calling for the release of former President Mohamed Nasheed.

The party said the petition will be submitted to President Abdulla Yameen, who is empowered by clemency laws and the constitution to grant pardons.

The Maldivian Democratic Party (MDP) has set up tables outside its main office on Sosun Magu and in the market area in Male’.

The party also plans to send out teams across the country to collect signatures, and a copy of the petition is available on its website.

Nasheed was found guilty of terrorism last month and sentenced to 13 years in prison. The parliament subsequently voted through an amendment to the Prisons and Parole Act that stripped Nasheed of his leadership position in the MDP.

The amendment said inmates could not fill leadership posts in political parties for the period of their incarceration.

Speaking at a rally on Thursday night, MDP Chairperson Ali Waheed claimed Attorney General Mohamed Anil advised parliament that the amendment was unconstitutional.

The chairman of the committee that was reviewing the legislation – ruling Progressive Party of Maldives MP Ibrahim Riza – kept the attorney general’s letter secret from other MPs, Waheed alleged.

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Deals signed for waste management centres in northern atolls

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The environment ministry has signed contracts to build waste management centres in four islands in Noonu atoll and an incinerator shed in Raa atoll Vandhoo.

According to the ministry, the contracts were signed last week with Wee Hour Investment Pvt Ltd and Saruh Pvt Ltd at a ceremony on Thursday (April 2).

Wee Hour Investment was contracted to build the incinerator shed at an estimated cost of MVR 2.5 million ($160,000) and a waste management centre in Noonu Magoodhoo at a cost of MVR 585,260.

Saruh was contracted to construct waste management centres in Noonu Lhohi, Maalhendhoo, and Fodhoo at a cost of MVR 592,087, MVR 798,617, and MVR 539,047, respectively.

Minister of Environment and Energy Thoriq Ibrahim signed the contracts on behalf of the government.

In February 2014, the ministry signed an agreement with Germany’s Michaelis GmbH and Co to establish an incineration plant at Raa Vandhoo to eliminate 40 tonnes of waste produced in all islands of Noonu, Raa, Baa and Lhaviyani Atolls.

The US$2.6 million waste management project was funded by the World Bank and was expected to be functional by 2015.

The General Manager of Michaelis Bernard Grim said the incinerator system could also be used to produce ice in the long run.

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Government to charge US$25,000 for SEZ applications

The government will charge a US$25,000 application fee from potential investors in its flagship Special Economic Zones.

Accepted applicants are also required to pay a US $1 million guarantee to a bank account of the board’s choice within 15 days of receiving the initial permit, under the new SEZ investment board regulations.

The regulations, published on April 2, set out the terms for a programme that the government hopes will bring in $100m by August. It has so far signed one memorandum of understanding for an SEZ.

The regulations give the President the authority to appoint the board’s chair, vice-chair and to dismiss board members at any time.

They also give the board the power to freeze potential investors’ local assets if the permit is terminated and the investor has any outstanding debt. The board will have the discretion to cancel all visas to migrant workers if a permit is terminated.

Speaking to Minivan News, Economic Council co-Chair and Tourism Minister Ahmed Adeeb said the government is “looking for serious investors”, pointing out that the minimum investment for a SEZ stands at US$ 150 million.

Adeeb said the application fee was set after consulting with investors, and that processing these proposals is hard work.

President Abdulla Yameen has previously declared that the SEZ act would become “a landmark law” that would strengthen the country’s foreign investment regime.

The only SEZ activity since the act was ratified by President Yameen in August 2014 has been a memorandum of understanding for a Dubai Ports World free trade port.

Adeeb said, however, that there is a lot of support for the SEZs, pointing out that Indian investors have shown interest in building a gold refinery after Maldives granted duty free status to gold.

The government estimates that it will be able to acquire over US $100 million in acquisition fees from the SEZs by August 2015.

The US$100 million figure has been included as one of three revenue-raising measures in the 2015 annual state budget, alongside increasing import duties and taxes.

“I think we will meet budget targets. Some investors are prepared to pay a US $100 million acquisition fee on a single project,” said the tourism minister.

The first SEZ project is likely to be the Dubai Ports World free trade port in Thilafushi in Male’ atoll, followed by the mega I-haven port project in the north, Adeeb added.

The government signed an MoU with the Dubai company on the port on March 19, while it is still seeking investors for the I-haven project on the northernmost Ihavandhihpolhu (Haa Alif) atoll.

During parliamentary proceedings, the opposition Maldivian Democratic Party (MDP) submitted more than 300 amendments to the SEZ bill.

The MDP claimed that the law would pave the way for money laundering and other criminal enterprises, while authorizing the president to “openly sell off the country” without parliamentary oversight.

The government, however, maintained that SEZs with relaxed regulations and tax concessions were necessary to attract foreign investors.

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Anti-corruption body seeks criminal offence of ‘illicit enrichment’

The anti-corruption watchdog has proposed including ‘illicit enrichment’ as a criminal offence in the new penal code to combat what is seen as endemic corruption in the public sector.

The absence of a legal framework to investigate claims against state employees and probe sources of income amounts to “completely ignoring and not criminalising one of the main acts of corruption,” the Anti-Corruption Commission (ACC) said.

An overwhelming majority of Maldivians believe corruption is a major problem among public officials, according to Transparency International surveys, while the opposition accuses the government of making little progress on the issue.

The watchdog on March 31 submitted 13 amendments to the Attorney General’s Office for inclusion in the penal code, which is due to come into force on April 13.

The commission said the UN Convention Against Corruption encourages the criminalisation of illicit enrichment, which is an offence in some 42 countries, including China, Argentina, Bhutan, Malaysia, and India.

The Maldives is a signatory to the convention, which defines the offence as “a significant increase in the assets of a public official that he or she cannot reasonably explain in relation to his or her lawful income.”

A penal provision for illicit enrichment would “encourage the implementation of the system for wealth declaration in its fullest sense,” the commission said.

Opposition Maldivian Democratic Party (MDP) spokesperson Imthiyaz Fahmy told Minivan News the party believes strengthening the asset disclosure system is important as there is no mechanism at present “to check how a person suddenly becomes rich”.

“There are ministers in this government who did not have anything when they were appointed to the cabinet but suddenly became billionaires,” he alleged.

However, the MP for Maafanu North questioned whether the government would submit the amendments to parliament.

“We don’t believe this government would do anything sincerely,” he said, adding that this was based on its record of moves such as a law barring prisoners from political party leadership, widely seen as aimed at ex-president Mohamed Nasheed.

Asset disclosure

Anti-corruption NGO Transparency Maldives suggested in December that an effective asset disclosure regime would improve public trust in state officials.

In TM’s 2013 Global Corruption Barometer Survey for the Maldives, 97 percent of respondents believed corruption was a serious problem in the public sector.

“Asset declaration generally requires a certain category of public officials – also identified as ‘politically exposed persons’ to describe individuals entrusted with prominent public functions – to disclose their financial and business interests,” TM said in a position paper.

An asset disclosure system can detect corruption, demonstrate the government’s commitment to fight corruption, and help make officials accountable, the NGO said.

The constitution requires the president, ministers, MPs, and judges to submit annual declarations to the auditor general, the People’s Majlis, and the Judicial Services Commission, respectively. However, the information is not available to the public.

While MPs annually declare property, business interests, and liabilities to the Majlis secretary-general, the financial statements are not made public.

The former auditor general told TM that a lack of punitive measures for those failing to submit information rendered the system ineffective.

TM noted that the current system does not require the submission of assets for spouses and children of public officials “which makes cases of illicit enrichment and conflicts of interest invisible and harder to detect.”

“Moreover, the disclosure of business and activities outside the jurisdiction of Maldives, and details of substantial gifts or benefits are also not a requirement in the current system,” stated the paper.

The report suggested that measures for non-compliance would also enhance public trust in democratic institutions.

“Implementing a strong asset disclosure regime would show the state’s commitment to fight corruption and would give a strong message to public servants, a message of zero tolerance to corruption,” said TM.

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Women urge drastic action from president on drugs

A women’s group campaigning against drug abuse has handed the government a petition urging President Abdulla Yameen to prioritise the Maldives’ drug crisis.

The Society for Women Against Drugs collected 359 signatures calling on the president to improve the quality of drug rehabilitation care, and to launch medical care for addicts suffering from withdrawal symptoms in police custody.

“Successive governments have attempted to address the problem of drugs, but they are not doing enough and we don’t see politicians prioritizing the issue,” said the group’s chairperson Fathimath Afiya after handing over the petition last week.

According to a 2012 UN report, there are 7,496 drug addicts in the Maldives. However, critics say the true figure is much higher.

Meanwhile, health advocacy groups have expressed concern over a high risk of HIV spreading among an unmonitored population of injecting drug users.

President Yameen in February acknowledged that changes were needed in the drug rehabilitation system, but the cabinet in March discussed mechanisms to decrease state expenditure on drug care centres.

Home Minister Umar Naseer last year pledged to prioritize drug trafficking and last month brought in a sniffer dog squad.

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Opposition anger over release of protest ‘attacker’

A 28-year-old man arrested for disrupting an opposition protest last week will be released tomorrow, sparking outrage among opposition supporters.

Mohamed Nasheed Abdulla, an activist for the ruling Progressive Party of the Maldives, was arrested after protesters accused him of charging into a crowd of demonstrators on a motorcycle on April 1 in Malé. He did not cause serious injuries.

The next day the Criminal Court transferred him to house arrest for five days, which is set to expire today.

A spokesperson for the main opposition Maldivian Democratic Party, Imthiyaz Fahmy, condemned the criminal court’s “double standards”, noting that opposition supporters arrested at protests were frequently detained for ten to 15 days in police custody.

Unlike Abdulla, the opposition supporters are also being released on condition they stay away from protests for a set period of time.

“These people who attack us, they are the dangerous people, not elected MPs,” said Fahmy, in reference to a court’s Friday decision to hold independent MP Ahmed Mahloof in police custody for an extra 15 days.

Mahloof has been held without charge since he was first arrested from a protest on March 25.

Fahmy also accused the police of failing to take action against individuals who he says continue to attack opposition protesters and vandalise speaker systems and trucks used in protests.

Several individuals the opposition say are gangsters have been caught on camera assaulting protesters and journalists and dousing protesters with crude oil and petrol. Some protesters say they have also been threatened with knives.

The police say they have arrested several people, but that only the court has the authority to detain suspects for longer.

Meanwhile, the release of protesters on condition they stay away from demonstrations for a set period has met with criticism from legal experts and the prosecutor general.

“Releasing a person suspected of a crime with conditions other than ensuring the person’s return to the court maybe unconstitutional,” the prosecutor general wrote in a letter to the chief judge of the criminal court.

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