Month: May 2015

Audit flags deficiencies in control of expatriate workers

An audit of the immigration department has identified deficiencies in the issuance of quotas and work permits as well as monitoring and enforcement measures.

The performance audit examined the “control of expatriate workers” in the Maldives after November 2012 and found that 68 percent of sampled quotas were issued against specified criteria.

The quota limits the number of expatriates that can be employed by a local business and is calculated based on the type of work. It is generated using an automatic formula in the ‘Xpat online system.’

“We observed the number of quota generated by the system through the use of the formula was more than were requested by the employers,” reads the audit report made public on Monday.

“Hence, the use of the formula resulted in issuing more quotas than was required. Such instances indicate that the [immigration department] did not consider the economic needs when quotas were issued.”

The audit also found that the department had not inspected all worksites before issuing quotas.

“This resulted in incorrect issuing of quotas; a police investigation report revealed issuance of quotas in respect of nineteen worksites that did not exist,” the report stated.

Of a sample of 40 quotas and employment approvals, 27 quotas and 13 approvals were issued when criteria were not met.

According to the 2014 census, there are 58,683 expatriates residing in the Maldives. However, the department of national planning has said the figure was much lower than numbers recorded by the immigration department.

NGO Transparency Maldives (TM) estimates there are 200,000 migrant workers in the Maldives – two-thirds of the country’s population.

A government report in 2011 revealed human trafficking to be the Maldives’ second most lucrative industry after tourism – worth an estimated US$123 million a year.

The Maldives ratified an Anti-Trafficking Act in December 2013, but TM says implementation, monitoring and enforcement of laws and regulations are crucial to prevent human trafficking.

Monitoring and enforcement

The department has not conducted research to determine the number of skilled and unskilled immigrant workers needed in the Maldives, the report observed, while the absence of a “sound policy framework” has resulted in a rapid increase in migrant workers.

Tackling illegal migration has since become “one of the main objectives of the department.”

The report noted that the absence of effective enforcement measures prior to 2014, after which the department “started conducting frequent investigations and they have strengthened their enforcement measures such as levying a fine on employers violating the regulations.”

“However, the [department] made slow progress in areas such as improving efficiency, staff capability quality of data and maintenance of complete data on the Xpat Online System,” it added.

The department began using the system in November 2012, but accurate information prior to then is not available as “migration of data from the labour ministry system…was not performed in a planned and systematic manner.”

“However, between 26 November 2012 and 31 December 2013 there were 9,914 expired work permits that were neither renewed nor cancelled,” it added.

As of September 2014, the department was owed MVR27.3 million in unpaid visa fees. However, apart from blacklisting the employers, the department “has not used its powers such as fining or holding passport of the employers.”

While the department implemented the US-donated PISCES border control system in August 2013, the audit observed “difficulties with entering and editing data”.

The system is not integrated with the Xpat online system, “which is hindering the achievement of the [department’s] objective in minimising illegal immigration.”

The department also failed to maintain data on workers who left under the government’s ‘Voluntary Departure Programme.’ The actual number of workers that departed under the programme is unknown.

The accuracy of the Xpat system cannot be ensured either, the report continued, as it cannot be used to trace workers who have left.

Information in travel documents “does not necessarily match with the information recorded in the system.”

“The employment approval of those leaving the country using a travel document would not be cancelled from the system,” the report noted.

Additionally, the department has not handled complaints “in a systematic manner.” The audit found that some complaints had not been attended to for over a year.

Recommendations

The auditor general’s office recommended that the department follow its standard operating procedures in issuing quotas and permits, conduct thorough checks at all stages, and take action against employers with unpaid work visa fees.

The audit also advised formulation of a framework on the number expatriate workers needed in the country.

The department should also “create a culture of serving the public,” evaluate staff capacity and workload, and recruit more staff where necessary.

A survey conducted during the audit revealed that a significant number of employers were not satisfied with the department’s services.

The department should also ensure that deposits collected from employers should only be used to deport workers. The audit office also advised revising deposit rates “at regular intervals to reflect the costs likely to be incurred.”

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IS enforces death penalty against Maldivian recruit

The militant organisation Islamic State has enforced the death penalty against a Maldivian recruit in Iraq.

Haveeru reported today that the Maldivian was thrown off the top of a tall building last month.

He was sentenced to death by an IS court, the newspaper reported, but the alleged offence is unclear.

The Maldivian had traveled to IS-held territories in Syria in late 2014 and had gone to Iraq last month following a military offensive by the Iraqi army to recapture Tikrit.

A number of Maldivians jihadis who traveled to fight in the Syrian civil war have been reported dead. Commissioner of Police Hussein Waheed in early January estimated over 50 Maldivians could be fighting in foreign wars.

Most Maldivian jihadis are believed to have joined the al-Qaeda-affiliated Jabhat Al Nusra front in Syria.

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Two Malé schools vandalized

Two schools in Malé were vandalized this week.

A group of people entered classrooms at Iskandhar School and Jamaluddin School on Monday and Tuesday night, respectively, and broke projectors and fans and sprayed paint on the walls, boards and desks.

“Someone tried to break a fan and a projector in one of the class room in the second floor, they would have done this late last night as we discovered what had happened only this morning,” said an official from Jamaaluddin school.

Police confirmed that security guards were present at the front gates of both schools at the time.

“But we cannot say it was due to their negligence, as there are other entrances where suspects could have used,” an official said.

No arrests have been made yet and the reason for the vandalism is unclear, police said.

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Power cut at Addu hospital in dispute over electricity subsidy

A private hospital in Addu City is operating with a backup generator after the state owned utility Fenaka Corporation cut off its power supply.

Fenaka stopped providing electricity to the International Medical and Diagnostic Centre (IMDC) around 1:30pm yesterday after the hospital refused to pay electricity bills in solidarity with other businesses in the southernmost atoll.

Shops and business across the country have refused to pay bills in protest over the government’s decision to cease electricity subsidies in March, which led to monthly charges doubling and tripling in some cases.

“We are running the hospital on our backup generator. However, we still cannot produce enough electricity for the whole hospital,” said IMDC’s manager Fathuhulla Anees.

Anees said the hospital was only able to start the generator at around 11:00pm last night, causing a lot of difficulties in providing medical assistance to the 10 patients currently admitted at the 38-bed capacity hospital in the Hithadhoo ward of Addu City.

Hospital staff worked by candlelight until technical problems with the generator were resolved.

“We had to discharge some of the patients and transfer others to the regional hospital, because we were unable to provide urgent services,” he said.

Fenaka is the main electricity provider in the atolls and operates in 151 of the 188 inhabited islands of the Maldives.

Former health minister Dr Mariyam Shakeela – a shareholder in the Simdi Company that operates the hospital – has condemned the corporation’s move as inhumane.

In a tweet last night, Shakeela slammed Fenaka for cutting off electricity services to a hospital “without giving the opportunity to find a solution”.

Fenaka also reportedly cut off electricity to the Simdi showroom in Hithadhoo on Sunday.

Shakeela lost the health minister’s post in August last year after pro-government MPs voted against her reappointment to the cabinet. She has since been critical of the president Abdulla Yameen’s administration and has participated in an anti-government rally on May 1.

A businessman in Addu City meanwhile has filed a case at the Hithadhoo magistrate court seeking a court order to compel Fenaka to continue providing services despite unpaid bills. The court initially granted a stay order pending a judgment in the case.

Anees, who is also suing Fenaka over the power cut, said the magistrate court has since ruled against the businessman.

“They wanted to cancel the stay order, so they just ruled that Fenaka can cut power if bills are not paid. I don’t believe we will get justice from the new magistrate at the court,” he said.

Anees said that the hospital will not pay the bill until the court orders them to do so. The hospital refused to accept bills for March and April.

“We are not paying it because we are not able to. We are not paying it because we think it is unjust and discriminatory,” he said.

Electricity charges in Addu City and Fuvahmulah are up to 37 per cent higher than in capital Malé, according to figures from Fenaka.

The government’s decision to cut electricity subsidies to businesses in March left more than 5,700 businesses in the atolls facing millions extra between them in electricity charges.

The government previously provided Fenaka with about MVR11 million (US$713,359) a month to subsidise electricity for atoll businesses, but this cost must now be borne by the companies themselves.

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Military transfers crocodile from children’s park

The military has transferred the crocodile at the children’s park in Malé to an unspecified location.

According to local media, the crocodile was transferred on Sunday night ahead of work on adjusting its cage.

Ahmed “Gahaa” Saeed, then-deputy principal of Majeedhiyya School, caught the young crocodile in 1998.

It has since been kept in a cage at the children’s park and grew to about 10 feet in captivity.

The caging of the crocodile has attracted a number of protests, including one led by the Billabong International school in 2010, which drew attention to the small cage and bad conditions the animal has been kept in.

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Nazim ordered to return after treatment in Singapore

The correctional services has ordered convicted ex-defence minister Mohamed Nazim to return from Singapore, where he is currently seeking medical treatment.

According to CNM, assistant superintendent of prisons Ibrahim Mohamed Didi sent letters to Nazim’s wife and his father on May 5 saying the prisons authority has learned that Nazim has completed his treatment.

The retired colonel was found guilty of weapons smuggling on March 26 and sentenced to 11 years in prison. He was granted permission to seek medical treatment overseas for a period of 45 days.

The deadline for the medical leave expires on May 24.

Nazim’s legal team has said that he has a doctor’s appointment on May 23 and will come back by the deadline.

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Government can suspend services to Villa if frozen accounts are empty

If the government is unable to recover sums owed to the state by freezing a company’s accounts, it can suspend all services to the company, including customs clearance and foreign worker visas, the Maldives Inland Revenue Authority (MIRA) has said.

The tourism ministry yesterday ordered the tax authority to freeze the accounts of all companies with pending bills, including that of the opposition Jumhooree Party leader Gasim Ibrahim’s Villa group.

But Villa officials today told local media that the accounts of the holding company, the Villa Shipping and Trading Pvt Ltd, are empty.

The government is seeking US$90.4 million allegedly owed as unpaid, rent, fines and interest on several properties from Villa group. The conglomerate – which operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport, and education – says the notice is unlawful and is contesting it at the civil court.

The notice for payment expired on April 18, but MIRA did not freeze the company’s accounts, saying the move may negatively affect the Maldivian economy, local media has said.

Executive director of finance at Villa, Shimad Ibrahim, told Haveeru today that the company’s accounts were empty before the government’s decision to freeze accounts.

“We knew we were going to face financial difficulties before the decision to freeze the accounts. We were set to get a loan to offset the downturn, but that loan was cancelled due to these issues. That is why the company’s accounts are empty,” he said.

Speaking to Minivan News, Fathuhulla Jameel at MIRA said the authority’s enforcement policy allows it to order government offices to suspend all services to the company, and ask the civil court to set an arrangement to recover funds if the company’s accounts do not hold the owed sums.

MIRA issued the US$90 million notice after the tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies for resort development. The move followed Gasim’s JP forming an alliance with the main opposition Maldivian Democratic Party (MDP). However, the government denies the opposition’s accusations of unfairly targeting Gasim’s business interests.

Some 27 cases challenging the termination of the agreements and MIRA’s notice as well as appeals of the civil court’s refusal to grant stay orders are ongoing at court.

While the tourism ministry cited lack of “good faith” as the reason, the Villa officials insisted the terminations were unlawful and that the fines were “fabricated”.

Villa – which won the tax authority’s “Ran Laari” award last year as one of five companies that paid the highest amount to the state – insists it does not owe any money to the state.

But the civil court last month refused to issue stay orders until the conclusion of the dispute, saying the state could reimburse and compensate the company if the ongoing cases are decided in Villa’s favour.

Since the notice was issued, Gasim has not been seen in opposition protests or made any comments on a deepening political crisis triggered by the arrest of opposition politicians. JP’s deputy leader Ameen Ibrahim was also arrested last week after clashes between protesters and police following a 20,000 strong anti-government march.

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Maldives obtains US$20m from Saudi Arabia to manage cash flow

The Maldives has obtained a US$20 million grant from Saudi Arabia for budget support, despite official figures indicating record levels of income and the economic ministry saying it has authorised US$600 million worth of foreign investment this year.

Finance minister Abdulla Jihad told Minivan News today that the Saudi funds will be used to “manage cash flow” as revenue was lower than expected.

A large portion of forecast revenue is expected later in the year, he said, adding that shortfalls are currently plugged through sale of treasury bills.

The forecast for government income in this year’s record MVR24.3 billion (US$1.5 billion) budget is MVR21.5 billion (US$1.3 billion).

The projected revenue includes MVR3.4 billion (US$220 million) anticipated from new revenue raising measures, including revisions of import duty rates, the introduction of a “green tax”, acquisition fees from investments in special economic zones (SEZs), and leasing 10 islands for resort development.

Import duties hikes came into effect on April 1. However, three weeks later, the government reversed hikes for motorcycles and garments. Jihad said revenue from custom duties will be lower than expected as a result of the policy reversal.

Jihad also said acquisition fees from SEZs are expected during the second half of the year.

Tax revenue

The Maldives Inland Revenue Authority (MIRA) said today that the revenue collected in April was 6.5 percent above forecasts and 14.9 percent higher than the same period last year.

Total revenue last month reached MVR940.3 million (US$60.9 million), with goods and services tax accounting for 70 percent of income. Total revenue collected so far this year has reached MVR4.6 billion (US$298 million).

The customs authority also collected MVR574 million (US$37 million) during the first quarter of 2015 as import duties, fees, and fines, representing a 28 percent increase from the previous year.

Further figures by the MIRA show revenue from taxes have been higher than expected in the first quarter of 2015.

The central bank, the Maldives Monetary Authority, meanwhile says business activity in the tourism, construction, wholesale, and retail sectors increased during the first quarter of 2015, and expects further improvements in the second quarter.

Foreign investment

The economic development ministry revealed today that it has authorised foreign investments worth nearly US$600 million this year, and says it is expecting US$1.8 billion worth of foreign investments in the next five years

Registrar of companies Mariyam Wisham told the press that most foreign businesses registered between January and April were investors interested in the tourism, construction, and real estate sectors. The investors were mainly from the Middle East, South Asia, and China, she said.

Economic development minister Mohamed Saeed said the number of foreign businesses registered under the current administration showed investor confidence in the Maldives.

Wisham also revealed that 5,014 new small and medium-sized enterprises have been registered so far this year following the enactment of a new company registration law last year.

But the opposition has criticised the lack of significant foreign investments despite assurances from the government following the passage of its flagship SEZ legislation in August last year.

The government signed a Memorandum of Understanding in March with Dubai Ports World to develop a commercial port and free trade zone near Malé and said a joint venture agreement will be signed in a month.

However, Saeed told the press today that an extension has been agreed upon for negotiations, citing the government’s unwillingness to compromise “national issues” as the reason for the delay.

The main opposition Maldivian Democratic Party has alleged corruption in the deal.

Saudi-Maldives relations

The Saudi Arabian government had pledged the US$20 million during president Abdulla Yameen’s state visit to the kingdom in March.

Contrary to Jihad’s statement that the Saudi funds will be used to manage cash flow, fisheries minister Dr Mohamed Shainee told Haveeru today that the US$20 million in grant aid will be “spent through the budget on various projects the government wants.”

A delegation including officials from the Saudi Fund for Development as well as Saudi contractors meanwhile visited the Maldives last week and gathered information on the various projects for which the government is seeking loan assistance.

The projects included road construction at the airport, an airport hotel, and a road network for Hulhumalé, Shainee said.

Shainee has previously said the Saudi Arabian government also assured loan assistance to develop the international airport.

During the visit, President Yameen held talks with King Salman bin Abdulaziz Al-Saud and Saudi Arabian ministers for education, defence, petroleum and mineral resources, and finance.

Then-Crown Prince Salman had visited the Maldives in March last year. During the trip, he pledged US$1.2 million to build 10 mosques across the country and donated US$1.5 million and US$1 million, respectively, to the health sector and the Islamic ministry’s waqf fund.

Prince Salman also visited the Maldives in April 2010. He ascended to the Saudi throne in January following the death of King Abdullah bin Abdulaziz.

A joint communique issued during president Yameen’s visit stated that the two sides agreed to increase “their commercial exchange while expanding and enhancing investment between the two countries and extending invitations to their respective private sectors to explore the available investment opportunities in both countries.”

“The Saudi Fund for Development will continue to finance the development projects in the Republic of Maldives and will consider participating in the expansion of Malé airport and beach preservation in Hulhumalé,” it added.

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Suspect accused of stuffing murdered girlfriend into suitcase acquitted

The criminal court has acquitted the chief suspect in the murder of Mariyam Sheereen in January 2010, citing insufficient evidence.

Mohamed Najah was accused of killing his girlfriend, stuffing her body into a suitcase, and dumping it at a construction site in Malé.

Almost five years after the murder trial began, chief judge Abdulla Mohamed said in the verdict delivered today that in addition Najah denying the charges, the state had failed to submit conclusive evidence.

The three doctors who examined Sheereen’s body had not been able to determine the cause of death, he noted, and said there was no written evidence of the doctors’ suggestion to conduct a postmortem.

None of the prosecution’s witnesses had testified to Najah committing any act to murder Sheereen, the verdict stated.

The 30-year-old woman’s body was found hidden under a pile of sandbags in a construction site on January 3, 2010 by a Bangladeshi worker.

Police said the body was found 36 hours after her death. Najah was accused of taking the suitcase to the vacant building in a taxi.

The driver of the taxi that Najah took also testified at the trial.

Police showed CCTV footage from January 2 of Najah dragging the suitcase and testified that DNA samples from the bag matched Sheereen’s.

The couple were living together in an apartment in Maafanu Kurahaage.

Witnesses also testified to hearing Najah threatening to kill Sheereen and told the court that she was last seen entering the apartment on the night she went missing.

Prosecutors told the court that Najah had come out several times, locking the door each time, and was later seen leaving with a suitcase.

Judge Abdulla said that the taxi driver had only said that he transported Najah with a heavy suitcase and that he smelled a foul scent only after Najah had left the cab.

The chief judge has been accused by the opposition of corruption and bribery. Former president Mohamed Nasheed – who was found guilty of terrorism charges over the military’s detention of judge Abdulla in January 2012 – had said the judge was suspected of involvement in a “contract killing.”

If he had been found guilty, Najah would have faced the death penalty.

Sheereen’s heirs had told the court that they no objection to Najah’s execution if he was found guilty.

Najah has been previously sentenced to 10 years imprisonment on drug abuse charges in January 2009.

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