Government proposes GST exemption for sale of flats under state-funded housing projects

Preliminary debate began at yesterday’s sitting of parliament on an amendment proposed by the government to the Goods and Services Tax (GST) Act to make the sale of flats under government housing projects exempt from the tax.

The amendment (Dhivehi) submitted on behalf of the government by Progressive Party of Maldives (PPM) MP Ahmed Rasheed also proposes reimbursing GST payments to persons who have purchased flats or housing units constructed under government housing projects.

The reimbursement is to be made within 30 days of ratification of the amendment by the president.

While real estate transactions were previously exempt from GST, the previous parliament passed an amendment in February this year reversing the exemption.

While all MPs were in favour of the proposal during yesterday’s debate, opposition Maldivian Democratic Party (MDP) MPs criticised the government for reversing tax exemptions for sale of flats.

Several MPs also argued that tax exemptions should apply exclusively for social housing schemes and not for luxury flats.

While MP Ali Azim suggested a hidden agenda behind the move to reimburse tax payments, MP Ahmed Nashid noted that funds were not allocated for the expenditure in the 2014 state budget.

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Housing Ministry to resume stalled Tata housing project

The government expects to sign a revised agreement with Tata Housing Developing Corporation next week to resume stalled housing projects in the capital Malé, Housing Minister Dr Mohamed Muiz revealed at a press conference yesterday.

The terms of the agreement were revised on the advice of the cabinet’s economic council after agreeing to some of Tata’s conditions, Muiz explained, and have now been forwarded to the Indian real estate developer for final approval.

“We have agreed that work must begin in two sites in Malé within 45 days of signing the amendments [to the contract],” Muiz said, referring to the Gaakoshi plot and former Arabiyya School premises.

Muiz further revealed that the government has also agreed to give back the vacant ‘Naadhee’ plot in Malé and approve construction on the site.

The site was taken over by the administration of former President Dr Mohamed Waheed with the intention of building a new Supreme Court complex on the premises.

While the previous administration had offered a plot in Hulhumale’ as an alternative, the developers felt the change would affect financing of the project.

The multi-million dollar housing project – a combination of commercial and social housing through a Public-Private Partnership model – was signed in May 2010 by the administration of former President Mohamed Nasheed with Apex Realty Pvt Ltd, a special purpose vehicle (SPV) or joint venture formed between Tata (65 percent) and SG18 Developers (35 percent).

Providing affordable housing to resolve the acute housing shortage in the capital was a core pledge of the Nasheed administration as well as the current Progressive Party of Maldives-led (PPM) government.

Contractual dispute

Housing Minister Dr Mohamed MuizThe Naadhee plot on Sosun Magu was among four plots of land in the capital awarded to the Tata subsidiary for construction of flats.

The Waheed administration’s decision to take over the plot was the source of the dispute with Tata, Muiz conceded yesterday, which has now been resolved after the economic council decided to give back the plot in accordance with the terms of the original agreement.

The government has agreed to purchase 20 percent of the flats constructed on the plot, he noted.

Discussions were meanwhile ongoing between the Supreme Court and the President’s Office on a new site for the apex court’s building, he said.

The flats in Gaakoshi and the old Arabiyya School site would have to be completed in 10 months and a year respectively, Muiz continued, while Tata has also agreed to construct 150 flats in Hulhumale’.

In May, Apex Realty announced that the company was prepared to resume work on the project as soon as the agreed upon amendments were incorporated into the contract.

“Apex Realty officials have undertaken multiple rounds of meetings with the economic council of the cabinet and the Ministry of Housing to find a mutually acceptable solution to contractual issues,” the company said in a press release.

“We are committed to the Maldives project and can start the project within 45 days after the final nod is received from the Housing Ministry and contract amendment is signed,” said Mr Sandeep Ahuja, Director at Apex.

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Last of the Pakistani suspects in the 24 kg heroin bust deported

The Maldives Police Services have deported two Pakistanis detained in connection to a 24 kg heroin drug bust citing insufficient evidence.

The two were the last of the eleven Pakistani nationals arrested from an Iranian boat in what the police claim to be the largest drug haul from a police operation in the country’s history.

Four Maldivians and three Bangladeshis were also arrested, but only five of the eighteen remain in custody. Six of the nine Iranians were released on the orders of the Criminal Court.

Of the three Bangladeshi nationals who were arrested from the boat, two were released by the Criminal Court on June 24. Only one remains under police custody.

All four Maldivians, including a police officer, remain in custody. Two have been transferred to house arrest, one due to ill health. The police have said the suspect had earlier suffered burns to 45 percent of his body in a fire accident. Two of the Maldivians arrested have previous records drugs related crimes, police has said.

The police have declined to reveal details of the suspects.

The street value of the drugs is estimated to be worth MVR 100 million (USD 6.5 million).

The operation

The police in March described the 24 kg heroin seize as one of the toughest operations in its history.

A sixteen member police team was involved in monitoring the movements of a local boat called “Violet” between March 4 and 10. The boat met Iran’s Hormuz at a rendezvous point 30 nautical miles outside the Maldives Exclusive Economic Zone (EEZ) on March 10. Hormuz had set sail from Iran’s Chahbahar seaport.

A small dinghy was offloaded from Hormuz onto Violet. When Violet reached Hulhumalé, the two local smugglers boarded the dinghy and were arrested from the island’s lagoon that night. The remaining arrests were made the next day on March 11.

The four locals arrested include the two primary smugglers, captain of Violet, and a police officer who used a local money transfer service to send money to an Iranian agent

Hormuz was caught seven nautical miles outside the Maldives’ EEZ.

In a very detailed account of the operation, police said they listened to phone conversations between the two suspected local smugglers and their Iranian counterpart and followed them police for several days.

A 46 member team comprising of the intelligence and drug enforcement department were involved in the operation, police have said.

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MPs abolish 1990 law on MP renumeration

The People’s Majlis today passed an amendment bill submitted on behalf of the government to abolish an outdated 1990 law governing renumeration for MPs of the People’s Majlis and Special Majlis.

The bill was approved with unanimous consent of 70 MPs at today’s sitting of parliament following review by the economic affairs committee.

The Special Majlis was a plenary assembly last convened in June 2004 to revise the constitution. Article 102 of the constitution meanwhile stipulates that salaries and allowances of People’s Majlis MPs will be determined by the parliament.

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Man fined for attempting assault on a police officer

Ahmed Farrah of Evening Rose in Maafannu Ward of capital Malé City has been fined an amount of MVR 3000 for attempting assault on a police officer.

The Criminal Court sentenced Farrah to pay the fine to the court within a period of 30 days.

Local media reports that he was prosecuted for attempting to assault a police officer who tried to stop him at a checkpoint in 2012.

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Oversight committee rejects President Yameen’s nominees for Prosecutor General

Parliament’s independent institutions oversight committee last night decided against recommending for approval President Abdulla Yameen’s nominees for the vacant post of Prosecutor General (PG).

According to opposition Maldivian Democratic Party (MDP) MP Rozaina Adam, the committee awarded President Yameen’s nephew Maumoon Hameed 33 percent and Criminal Court Judge Muhthaz Muhsin 67 percent following a vetting process.

A minimum score of 75 percent or marks is required for the committee to recommend a nominee for approval. The pair were interviewed by the committee last Thursday night (July 10).

Marks were awarded following evaluation of their academic qualifications, experience, competency, management skills, leadership qualities, achievements, and integrity.

The nominees will however be put to a vote on the People’s Majlis floor.

The ruling Progressive Party of Maldives (PPM) has a clear majority of the 85-member house with 43 MPs in addition to five MPs of coalition partner Maldives Development Alliance (MDA).

The independent institutions oversight committee is comprised of five PPM MPs, one MDA MP, three MDP MPs and two Jumhooree Party (JP) MPs.

The final evaluation process took place at a closed session last night where opposition MPs reportedly awarded zero marks to both nominees.

In April, Maumoon Hameed failed to garner the required 39 votes in the previous parliament – falling just three votes short – four months after he was put forward by President Yameen.

Article 221 of the constitution states, “The President shall appoint as Prosecutor General a person approved by a majority of the total membership of the People’s Majlis from the names submitted to the People’s Majlis as provided for in law.”

The independent oversight committee in the 17th People’s Majlis had also rejected Hameed’s nomination after the lawyer failed to meet the assessment criteria.

“Approval is based on a preset grading scheme, and not on members’ opinions,” MP Rozaina told Minivan News at the time.

The PG’s post has been vacant since November following the resignation of Ahmed Muizz ahead of a scheduled no-confidence motion in parliament.

Moreover, Acting PG Hussein Shameem’s resignation in early May brought the criminal justice system to a halt after state prosecutors went on strike, citing concerns of a lack of accountability in the absence of a PG.

However, the Supreme Court ordered prosecutors to resume work “without any further excuse” and ordered the seniormost official at the PG office to assume the PG’s responsibilities.

President Yameen meanwhile refused to submit a new nominee to the 17th Majlis during the crisis and opened up a third call for applicants, announcing his intention to nominate Hameed – son of former Atolls Minister Abdulla Hameed – for a second time to the newly elected 18th People’s Majlis.

Meanwhile, at its meeting last night, the independent institutions committee also awarded 68 percent to President Yameen’s nominee for the Police Integrity Commission, Adam ‘Kurolhi’ Zahir.

The committee however approved the nominations of former MP Abdul Azeez Jamal Abubakur for the newly created post of Information Commissioner with 88 percent and Aishath Zahira for deputy governor of the Maldives Monetary Authority (MMA) with 90 percent.

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JP to sue three MPs for switching parties

The Jumhooree Party (JP) is to sue three parliamentarians who switched to the ruling Progressive Party of the Maldives.

The unanimous decision was announced at a party meeting on Saturday night, but the former ruling coalition partner is yet to decide on how to pursue the case.

JP council members said MPs had sworn in the name of Allah to refrain from crossing the floor and the switch had caused damage to the party. The PPM bribed MPs, JP alleged.

“The PPM’s actions in offering unattainably high incentives to parliamentarians of our party, and providing them with financial and material incentives so as to have them switch to their party, are against the vows they made to the public in their ascension to power,” a JP statement read.

The JP’s backing was crucial in PPM’s presidential win in November. The two parties decided to field joint candidates under separate party banners for the 85 member house in March. The PPM won 33 of the 50 seats it contested, while the JP won 15 of the 28 seats it contested. Coalition partner Maldives Development Alliance won five seats.

The PPM severed its coalition agreement with the JP in May after the coalition partner’s leader, Gasim Ibrahim, ran for the post of Majlis speaker despite the PPM fielding its senior MP Abdulla Maseeh Mohamed as the ruling coalition’s candidate.

JP currently has 12 MPs after Ihavandhoo MP Mohamed ‘Muhamma’ Abdulla, Milandhoo MP Hassan Mufeed Abdul Gadhir and Nolhivaram MP Hassan Areef’s signed to the PPM.

The MPs said they were urged by their constituents to join the ruling party to speed up development of their constituencies.

Following the loss of two JP MPs last month, Gasim claimed at a press conference that the MPs had told him that the government had threatened to cease development of islands in their constituencies. Gasim said he had heard that the pair were offered MVR10 million (US$648,508) each for the transfer.

The JP leader heavily criticised the pair for allegedly reneging on an agreement signed under oath “before God Almighty” to remain in the JP until the end of their five-year terms.

In response, the PPM has denied offering any incentives for crossing the floor.

“Today’s reality is that because PPM is in government, many members are taking their own intiative in joining our party. This is done with the intention of providing development to the constituencies they represent,” PPM Deputy Leader Abdul Raheem Abdulla told local media.

Meanwhile, MP Muhamma told Minivan News he does not believe the JP has the grounds to take him to court.

“I don’t believe the JP can go to court on this matter. I don’t believe that any agreement made against the constitution can be valid,” he said.

He further claimed that it is “far more logical” for the JP to take PPM to court for breaking up the coalition than to sue individual parliamentarians.

The PPM now has a 43 member majority. In addition to the three JP MPs, four out of five independent MPs, and three opposition Maldivian Democratic Party (MDP) MPs have switched to the ruling party.

Minivan News was unable to contact parliamentarians Hassan Mufeed Abdul Gadir and Hassan Areef for comments at the time of press.

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Public accounts committee approves reintroducing car allowance for ministers

The People’s Majlis’ public accounts committee (PAC) yesterday approved a request by President Abdulla Yameen to reintroduce a discontinued car allowance for cabinet ministers.

A motion by Maldives Development Alliance (MDA) MP Ahmed Amir to grant the request was approved with seven votes in favour and six against after Chair MP Ahmed Nihan – parliamentary group leader of the ruling Progressive Party of Maldives (PPM) – cast the tie-breaking vote.

Opposition Maldivian Democratic Party (MDP) MPs and Jumhooree Party (JP) MPs voted against the motion. The PAC is comprised of six PPM MPs along with one MP from coalition partner MDA as well as four MDP MPs and two JP MPs.

The committee’s decision will be put to a vote on the Majlis floor.

Under the previous parliament in December 2012, the PAC had decided to discontinue an MVR6,500 (US$422) monthly salary for drivers of ministers’ cars as well as an MVR1,000 (US$65) allowance for petrol cost. Ministers were instructed to settle the expenses out of their salaries from April 2013 onward.

The PAC decision was later voted through on the Majlis floor on December 31 as part of a revised pay scheme for senior officials in the executive, judiciary, and independent institutions.

The elimination of both the salary for drivers and the fuel allowance was estimated to save 89 percent from the budget item. Cabinet ministers presently earn a monthly salary of MVR57,500 (US$3,729).

The task of determining salaries and allowances is entrusted to the PAC – also referred to as the finance committee – under section 100(a) of the parliamentary rules of procedures.

Article 102 of the constitution states, “The president, vice president, members of the cabinet, members of the People’s Majlis, including the speaker and deputy speaker, members of the judiciary, and members of the independent commissions and independent offices shall be paid such salary and allowances as determined by the People’s Majlis.”

In its meeting yesterday, the PAC also commenced a review of the state’s salary structure or pay scheme.

Executive expenses

During the debate on reintroducing the car allowance yesterday, MDP MPs suggested studying the government’s request further after summoning the finance minister.

MP Ibrahim Mohamed Solih – parliamentary group leader of the MDP – argued that it would be “irresponsible” to approve additional expenditures without scrutiny.

The proposal was however rejected by pro-government MPs after the chair said the issue had been thoroughly considered by the PAC in the previous parliament.

MDP MPs also objected to increasing expenditure on ministers while doctors and teachers were unhappy with their renumeration.

Meanwhile, a paper prepared by the parliament secretariat on expenses by the executive in 2013 was deliberated by the committee.

The paper – subsequently shared with local media – reportedly revealed that MVR913,277 (US$59,227) was spent out of the budget last year to provide the allowance to ministers under former President Dr Mohamed Waheed’s administration between April and November 2013.

The allowance was provided to the health minister, economic development minister, tourism minister, fisheries minister, defence minister, Islamic affairs minister, housing minister, youth minister, education minister, transport minister, finance minister and the attorney general.

While MDP MP Ibrahim Shareef contended that the allowance was provided in violation of public finance laws and should be investigated by parliament, MP Nihan insisted that there was no proof of wrongdoing in the document.

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Maldives to hold Free Palestine rally

The Maldives has condemned Israel’s continuing offensive on Gaza and called for an immediate cease-fire as Malé prepares for a Free Palestine Rally today.

“Israel must stop the invasion of Gaza, it should stop the killing, the airstrikes, and declare a cease-fire, and start dialogue with Palestine,” Minister of Foreign Affairs Dunya Maumoon said on Saturday.

Meanwhile, over 12,000 Maldivians have pledged to attend a Free Palestine Rally in Malé tonight. The event has received support from across the political spectrum.

Youth leaders of the ruling Progressive Party of Maldives (PPM), coalition partner Maldives Development Alliance (MDA), pro-government Jumhooree Party and Adhaalath Party and opposition Maldivian Democratic Party (MDP) held a joint press conference on Monday and called on supporters to attend the rally.

Event organizer, Hamna Waheed said the rally aims to show solidarity with the people of Palestine and opposition to the Israeli attacks on Gaza.

“There won’t be any speeches. We are gathering to express solidarity with Palestinian people, to stand against Israeli attacks on Gaza. We are standing just like many others around the world,” she said.

The march is to begin at 9:30 pm in front of the Social Center in Malé and will end at the Cricket Stadium with a prayer for the people of Gaza.

Organizers have requested supporters to wear black and white.

A rally is to be held in the country’s second most populous atoll Addu at 4:00 pm today.

Solidarity

While welcoming the UN Security Council’s call for a ceasefire, Dunya also said the council “needs to make stronger decisions as provided for by the UN Charter to stop Israeli aggression in Palestine.”

She also called on Israel to “heed the international community’s calls and respect international humanitarian law” and demanded the international community intensify efforts to cease the violence in Gaza.

Urging the international community to find a stable and lasting solution to the crisis, Dunya reiterated Maldives’ support for a two state solution through dialogue.

Opposition MP and former Speaker of the Parliament Abdulla Shahid has urged the government to use Maldives’ position in the UN Human Rights Council to act against the Israeli offensive in Gaza.

President Abdulla Yameen phoned Palestinian President Dr Mahmoud Abbas on Saturday and condemned “Israel’s inhuman actions in killing many innocent citizens of Palestine.”

Yameen pledged to do all necessary in the international arena to aid Palestinians.

Abbas thanked Yameen for the call and thanked the people of Maldives for their solidarity with Palestine, the President’s Office said.

Opposition rally

The government’s reaction came after opposition criticism over inaction.

On July 10, opposition leader and former President Mohamed Nasheed called on all human rights defenders to raise their voice against “indiscriminate killings in Gaza” and requested all Maldivian to speak out against Israel’s “inhumane acts in Gaza.”

MDP’s national council held a rally on July 12 in Malé protesting the attacks on Gaza and condemning the government’s silence on the matter.

Subsequently, Minister of Home Affairs Umar Naseer has requested the Commissioner of Police to investigate and prosecute protesters who gathered near Islamic Minister Dr Mohamed Shaheem Ali Saeed’s residence during the rally.

The Freedom of Assembly Act, enacted following the controversial power transfer of 2011, prohibits protests against individuals at their private residences, the Home Ministry said.

Twitter exchange

Opposition leaders and supporters have also criticised the religious Adhaalath Party for failing to mention the conflict during the sermon in Friday prayers on July 11.

Shaheem responded in a tweet on the same day stating the sermon included a general prayer for victory over enemies of Muslims and on July 13 said a special prayer for Palestine will be included in the sermon on July 18.

The Adhaalath Party – of which the Islamic minister Shaheem is a member – also announced the establishment of a Gaza Relief Fund on July 12.

Nasheed in a tweet on the same day said it is “unwise” to donate for a fund established by Adhaalath Party without receiving the expenditure details of the “Mosque Fund” set up by the Islamic Ministry.

A heated exchange ensued on Twitter, with Shaheem claiming the fund’s expenditures were shared with the People’s Malis and media, and implied Nasheed had left the country to avoid the MDP’s rally that night.

“Nasheed cannot tolerate any action against the Jews in Maldives,” he said.

Nasheed accused Shaheem of lying and said he had left the country on an emergency medical trip on July 7, three days before the call for protest.

According to figures publicised by Shaheem, the Mosque Fund received MVR 21.5 million in donations and spent MVR 14.9 million as of July 2013.

Nasheed on Monday said the MDP is ready to go defend Gaza, and said he believed there is no reason that Maldives National Defence Force (MNDF) should not go to Gaza in Palestinian’s defence.

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