Audit uncovers illegal expenditure by Works Corporation

The audit report of the Works Corporation Ltd (WCL) for 2011 has exposed allegedly corrupt practices at the 100 percent government-owned company.

In a press release issued with the report (Dhivehi), the Auditor General’s Office stated that its audit uncovered numerous violations of the law as well as “problems related to performance and governance.”

Since the corporation did not compile its financial statement for 2011, as mandated by its charter and the Company’s Act, the press release noted that auditors reviewed selected transactions of the WCL.

The WCL was created by the administration of former President Mohamed Nasheed on March 25, 2009 to facilitate or carry out infrastructure projects.

Of the 34 projects awarded to the company in 2010 and 2011, the audit found that the government canceled 24 after the WCL failed to commence work.

“The government awarded the projects without adequate planning and without assessing the company’s capability to carry out the work,” the press release stated.

As the company had completed only one infrastructure project to date, the Auditor General’s Office suggested that the WCL had not served the purpose for which it was formed.

Managing director

Auditors discovered that the company’s managing director withdrew MVR180,000 (US$11,673), ostensibly to cover expenses for assisting the President’s Office in preparations for a ceremony held in Gulhifalhu.

While the company’s employees actively participated in the preparations, the report noted that the sum was withdrawn without any documentation proving the actual cost borne by the WCL.

Although the audit report did not identify the managing director, local media has revealed that the WCL MD in 2011 was Abdulla Javid ‘Jaa’, son-in-law of the then-ruling Maldivian Democratic Party’s (MDP) Chairperson ‘Reeko’ Moosa Manik.

Auditors also found that MVR146,999 (US$9,533) was transferred to the MD’s personal bank account to purchase a “total station” containing special tools from Singapore’s Tepcon Posting Sales Pvt Ltd.

However, the company had received neither the tools nor the transferred amount as of the report’s publication date.

Moreover, the WCL did not recover 14 sheet piles provided in May 2011 to Heavy Load Maldives Pvt Ltd, which was owned by the MD’s father-in-law MP ‘Reeko’ Moosa.

The WCL’s staff informed auditors that the 40-feet sheet piles were released after the MD called the deputy manager at the company’s Thilafushi site and instructed him to do so.

The audit report revealed that on the orders of the MD the WCL also provided electricity from its Thilafushi site to the Yacht Tours Maldives’ site on the industrial island.

Yacht Tours Maldives – owned by MDP MP Abdulla Jabir – had not paid WCL for 37,376 units of electricity used from December 28, 2010 to October 1, 2012, the audit found.

Violations

The WCL awarded 12 projects worth MVR198.6 million (US$13 million) to various parties in violation of the company’s procurement rules, the audit found.

The company’s procurement procedures manual stated that contracts worth MVR1.5 million (US$97,276) or higher must be awarded through the Finance Ministry’s tender evaluation board.

However, the audit noted, the 12 projects were awarded without either a bidding process or the involvement of the tender evaluation board.

An Indian company – identified as MM Export Pvt Ltd – contracted to supply reinforcement boulders was paid MVR2.7 million (US$175,097) in violation of the procurement rules as well as the WCL’s agreement with the company.

In another instance, a Sri Lankan company named Sri Krithika International was paid in excess of the stipulated amount for supplying construction material after the company imported a higher volume than was agreed upon.

Moreover, the WCL failed to recover MVR1.7 million (US$110,246) paid to Design-built Solutions Pvt Ltd as an advance payment for the Noonu Velidhoo harbour project despite termination of the agreement after the company did not commence work.

In a similar case, a company named Coastal Ventures Pvt Ltd was paid MVR5 million (US$324,254) for the construction of a harbour in Raa Fainu despite the company only completing a portion of the project.

As the portion completed by the company was worth MVR2.9 million (US$188,067), the audit noted that the company was paid MVR2.1 million (US$136,186) for work not done.

The report also contended that the WCL prioritised the interests of subcontractors in drafting agreements to the detriment of the company.

Auditors discovered that the company was owed MVR134,055 (US$8,694) in unpaid rentals and sale of equipment.

The WCL also misused a MVR50 million (US$3.2 million) stand-by credit facility provided by the Indian government to establish a sewerage system in Noonu Miladhoo and to construct a harbour in Noonu Kudafari.

Interest for the loan was rising as a result of the WCL failing to make regular payments, the report noted.

Meanwhile, as a result of poor record keeping, auditors were unable to ascertain the amount of money kept in the WCL safe when it was stolen in 2011.

While the company’s accounting systems showed that it was owed MVR22.5 million (US$1.5 million) from various parties, the audit report noted that the company’s financial book-keeping was too unreliable to establish the validity of the figure.

Similarly, auditors could not verify whether the MVR60.7 million (US$4 million) owed by the WCL for procurements and services was authentic.

The company also paid its chairman more than MVR600,000 (US$38,910) as a “special allowance” from June 2009 to February 2012 against the pay scheme for board members of state-owned enterprises.

Moreover, the company’s hiring and firing practices as well as promotions for staff contravened its “employment, benefits and salary policy.”

Lastly, the WCL had not maintained a registry of its assets since April 14, 2010, auditors found.

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Goverment will enforce death penalty, declares President Yameen

President Abdulla Yameen Abdul Gayoom has declared that the Progressive Party of Maldives-led (PPM) coalition government will implement the death penalty despite international pressure.

Speaking at a campaign event for PPM MP Ahmed Mahloof in Male’ last night, President Yameen said his administration’s decision to enforce the death penalty was a “historic day” in the Maldives’ democracy.

“Enforcing the death penalty is not something I will do because I want to. This is a very difficult thing. This is not an easy thing to do for any president or [public] servant. But our society cannot bear the loss of a life as well as the opportunity for further loss of life as a result of not respecting [the value of a human life],” he said.

“For that reason, no matter how much I don’t want to do it or how difficult it is, I have to do this on behalf of the people as they have placed that trust in me.”

President Yameen revealed that the government had formulated regulations implementing capital punishment on Thursday, based on the advice of the cabinet.

The government decided to enforce the regulations to ensure the safety and security of the community, he said, adding that the public wished to see action taken to stop the “slaughter of innocent citizens.”

Moreover, a majority of the Maldivian people were in favour of introducing the death penalty despite opposition from international partners, Yameen contended.

He stressed that a convict would only be put to death in accordance with Islamic Shariah following due process through the courts.

At the final stage, he explained, the Supreme Court would decide whether capital punishment was warranted as qisas (retaliation).

Under the new regulations specifying procedures for enforcing the death penalty, President Yameen said that both the victim’s and the convict’s family would be consulted after the Supreme Court decision to see whether the former demanded the death penalty and not blood money as retaliation.

Following an order issued by Home Minister Umar Naseer in January to the Maldives Correctional Services for implementation of the death penalty through lethal injection, Amnesty International called upon the government to halt any plans to end the current moratorium on the death penalty.

The international human rights organisation described the possible reintroduction of capital punishment as a “retrograde step and a serious setback for human rights in the country”.

Meanwhile, President Yameen – on a state visit to Sri Lanka at the time of Naseer’s announcement – subsequently promised “broad discussions” on the issue in his cabinet.

Death sentences have traditionally been commuted to life sentences by presidential decree since the execution of Hakim Didi in 1954 for the crime of practising black magic.

The Maldives currently has 20 prisoners sentenced to death by the Criminal Court.

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MDP meeting hall set on fire in Haa Dhaal Kuribee

A youth meeting hall (jagaha) of the opposition Maldivian Democratic Party (MDP) on the island of Kuribee in Haa Dhaalu atoll was set on fire in the early hours of Friday, local media reports.

Three motorbikes were also set ablaze around 3:30am in what is believed to have been a deliberate act of arson.

One of the motorbikes was reportedly damaged beyond repair while a sound system, two television sets, and two chairs inside the meeting hall were destroyed.

The case is currently under investigation by the police.

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Projects worth MVR242.48 million inaugurated in presence of coalition candidates

As part of a series of development projects being inaugurated and announced ahead of the parliamentary elections scheduled for 22 March, developments worth MVR242.48 million for three different islands were inaugurated.

The new projects have been launched this week in the presence of government coalition parliamentary candidates for the respective constituencies.

On Wednesday (March 12) Muli island, Meemu atoll, reclamation project was signed by Minister of Housing and Infrastructure Dr Mohamed Muizzu.

MP Ahmed Nazim, the government coalition candidate for Dhiggaru constituency – to which Muli belongs – was also present at the ceremony.

The MVR159.18 million project will be implemented by Maldives Transport and Contracting Company (MTCC), and is expected to be completed within a year.

An additional MVR31million project to establish a sewage system in Maamendhoo, Laamu atoll, was signed with the Fenaka corporation on March 11.

After signing the contract, Minister of Environment Thoriq Ibrahim told media that the government services can be best provided to citizens with their cooperation, reported Sun Online.

The inauguration was attended by the government coalition candidate for Fonadhoo constituency Abduraheem Abdulla.

On 10th March the ministry also inaugurated the Bandidhoo harbour project, im Dhaalu atoll, to construct a 1000ft by 300ft harbour within a year.

The government funded project worth MVR52.3million will also be implemented by the MTCC.

The project was inaugurated by Minister of Housing and Infrastructure Dr Mohamed Muiz, and chief guest of the ceremony Ahmed ‘Sun’ Siyam – the government coalition candidate for Meedhoo constituency, to which Bandidhoo belong.

According to local media ‘Sun’, at the ceremony Siyam said the opposition Maldivian Democratic Party will never wish any good for the people of Maldives.

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Week in review: March 9 – 14

This week’s headlines were largely dedicated to the Supreme Court’s decision to dismiss the senior leadership of the Elections Commission (EC) on charges of contempt of court and disobedience to order.

The decision – which also included a six month sentence for EC Chair Fuwad Thowfeek – brought international condemnation as well as universal praise for the work of the commission.

The EU observer mission, currently in the country for the scheduled March 22 poll, quickly pointed out the considerable “time pressure” on a timely and credible election.

Domestically, both the Maldivian Democratic Party’s Mohamed Nasheed and the People’s Majlis declared the decision unconstitutional.

The Majlis Secretariat relayed this message in writing to Chief Justice Ahmed Faiz and senior government figures, while a Majlis committee stated that it still considered the dismissed members to be elections commissioners.

Alternatively, government supporters quickly backed the decision, with President Yameen saying that the government would abide by the ruling. Yameen also criticised the opposition’s discussion – conducted without a resolution – of boycotting the polls.

The President’s Office rounded on the court’s international naysayers while the chief justice said that the international statements included “falsified claims, and undermine the respect and authority of the Maldivian judiciary”.

Fears that the EC would not be able to conduct the election without its quorum were soon assuaged, however, as Ismail Habeeb – nominated to the commission after the resignation of the fifth EC member last October – was approved by the Majlis.

The PPM has called for the final two places on the commission to be filled before the elections, though Speaker Shahid has prorogued parliament until after the vote.

Other news…

Elsewhere this week, police seized 24kg of what was suspected to be heroin in their biggest haul to date, while repeated confiscation of unusual pets during drugs raids – as well as a python on the streets of Malé – prompted customs to tighten security in order to prevent the import of illegal animals.

The export of legal animals – in the form of Halal certified fish – is a policy the Islamic Ministry this week claimed was generating great enthusiasm.

Leaders at the Chamber of Commerce rounded on the EU’s trade policies with regards to Maldivian fish, suggesting a fisherman’s protest could be on its way.

One protest did arrive this week, at the international airport, as staff demonstrated against bad bonuses and worse food.

The Human Rights Commission was summoned to the Juvenile Court after repeated attempts to discuss a report the court claimed misled the public about the handling of the infamous 15 year old flogging trial.

Maldivian Development Alliance leader Ahmed ‘Sun’ Shiyam was presented to the Criminal Court this after failing to attend previous hearings regarding his alleged attempts to smuggle alcohol into the country in 2012.

Already in custody, Maldivian Democratic Party MP Abdulla Jabir learned this week that he would remain during his appeal case for his recent conviction.

Finally, local NGO Advocating for the Rights of Children (ARC) launched an anti-bullying campaign in Malé as well as a new network to support the rights of disabled children.

Meanwhile, the Maafushi jail inmate – left in a coma with critical head injuries after being attacked by cellmates last month – was flown to Sri Lanka for further treatment.

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Police searching for man who refuses to hand over 5 month old baby

Police have launched a search for a man accused of refusing to hand over his five month old baby to the mother.

Police stated that they are looking for the man after he failed to follow a court order on March 10 which asked him to hand over the child within a period of 24 hours.

In accordance with a Family Court order, the police are looking for Ahmed Sharuvan of age 32 years from Kanmatheege in Seenu Atoll Maradhoo.

Police have appealed to the public to report any information held about Sharuvan to the police at the earliest.

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In democracy, we must welcome people with varying ideologies: Gayoom

Former President and leader of ruling Progressive Party of Maldives (PPM) Maumoon Abdul Gayoom has stated that a democracy is a system in which people are free to work with their personal political ideologies, and that in such a system people with varying ideas must be welcomed.

Speaking at a campaign event of PPM’s parliamentary candidate for Villin’gili constituency Saudh Hussain, Gayoom expressed concerns that residents of some islands harassed contestants campaigning for the party’s coalition.

“Since we are in a democracy, we must welcome people with different ideologies. We have to listen to what they have to say. It is a completely different matter whether you accept what they have to say or not,” Gayoom said.

Gayoom further said that it is very important to acquire a majority in the next parliament, stating that the reason for this is that the current government is led by the coalition.

He opined that failure to garner a majority would cause difficulties in fulfilling party manifesto.

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Gasim asserts importance of Majlis majority for the Maldives’ development

Jumhooree Party leader and resort tycoon Gasim Ibrahim has stated that, in order to lift the Maldives out of its current situation and to ascertain it has a better future, President Abdulla Yameen needs to be given his five years of governance.

Speaking at a campaign event of the Progressive Coalition’s Villin’gili constituency candidate Saudh Hussain, Gasim said that everyone needed to cooperate to provide Yameen with a five year term to make right the current situation of the country.

Gasim added that this will be made possible by ensuring that there is a Progressive Coalition majority in the upcoming 18th parliament, adding that Maldives will find itself in severe hardship if the majority cannot be achieved.

Speaking of the past ten years, Gasim claimed that the development had failed to go according to plan.

“The first five years were spent in establishing democracy within political chaos. In other words, it was spent in the establishment of reasonable norms and democracy within a peaceful environment. However, not much thought was given to economical matters within these five years, and not much was achieved on that front,” Gasim stated.

“The last five years were spent to bring economical stability within democratic norms, but even that failed to go according to plan,” he continued.

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EC dismissals: Commonwealth, UK, EU, and India join international chorus of concern

The Commonwealth, UK, EU, and India have joined a growing international chorus expressing concern with the Supreme Court’s removal of the Elections Commission (EC) chair and deputy chair over charges of contempt of court.

“Such action by the court less than two weeks before the [parliamentary] election could be viewed as potentially affecting the electoral process adversely,” read a statement released yesterday by the Commonwealth secretariat.

The UK described the move as an “unprecedented expansion of judicial powers”, while India urged respect for the constitution. EU High Representative Catherine Ashton called the ruling a “serious setback in the democratic transition of the country.”

A statement from the President’s Office meanwhile called upon international partners to respect the Maldives’ constitution, echoing a statement released by the Chief Justice Ahmed Faiz on Tuesday (March 11).

The Supreme Court ruling on Sunday left the EC without the three members required for a legal quorum to hold meetings and finalise decisions ahead of the polls scheduled for March 22.

Commonwealth Secretary-General Kamalesh Sharma noted the parliament’s approval of a new member to the EC yesterday, which ensures that the quorum is restored.

“We hope that a credible and inclusive parliamentary election can be held in accordance with the constitution, and that Maldivians will be able to cast their votes with confidence and with the will of the people being respected,”  the secretary-general said.

The secretary-general stressed that separation of powers was “a fundamental political value” of the Commonwealth.

“For a democracy to function effectively, it is critical that institutions operate within their own constitutional mandate and do not encroach either on the ability of other independent institutions to execute their own remits or on the constitutional authority of other branches of government,” he stated.

“Actions that undermine the independence of an elections commission have a negative effect on democracy as a whole.”

The secretary-general noted that the Commonwealth Observer Group to the Maldives for last year’s presidential polls had recommended that “there should be better recognition of the mandate and statutory and constitutional independence of the Elections Commission.”

The Commonwealth statement also noted that the Supreme Court “assumed new powers enabling it to initiate cases”.

The Supreme Court summoned EC members on February 27 and began a surprise trial on charges of contempt of court under new ‘sumoto’ regulations that allow the apex court to initiate proceedings and act as both prosecution and judge.

Yesterday’s flurry of statements followed condemnation of the Supreme Court decision by the United States, Canada and the United Nations earlier this week.

In response, the President’s Office has contended that “negative external reaction to judicial decisions” undermined the constitution and hindered efforts for consolidation of democracy.

“Unprecedented expansion of judicial powers”

The UK’s Foreign and Commonwealth Office Minister Hugo Swire expressed “deep disappointment” with the Supreme Court’s dismissal and sentencing of the EC chair.

“The charges laid and the procedures adopted represent an unprecedented expansion of judicial powers,” the Foreign Office statement read.

The Supreme Court’s contentious ruling “appears to undermine the hard won independence of the Election Commission. This is extremely worrying so close to parliamentary elections,” the statement read.

Noting the appointment of a new member to the EC, the minister urged the government to ensure that the “the Election Commission’s independence is swiftly restored and to ensure that inclusive, free and fair Parliamentary elections are held within constitutional deadlines and in line with international standards.”

“This is essential for the consolidation of democracy in the Maldives and for the country to uphold its international reputation after the difficult events of the last two years.”

The EU’s statement commended the work of the EC, noted the key role of an independent elections body in a democracy, and drew attention to its team of monitors currently in the Maldives for this month’s poll.

The Indian Ministry of External Affairs meanwhile issued a press release welcoming the “commitment expressed by the government of Maldives to holding the parliamentary elections as scheduled”.

“India has consistently supported the strengthening of democratic processes and institutions in the Maldives. In this context, the Government of India has noted with concern the removal of the Chairperson and the Deputy Chairperson of the Elections Commission of Maldives from their positions and deferred prison sentence of the Chairperson,” the press release stated.

As “a close friend and neighbour of the Maldives”, the Indian government urged state institutions and political parties to respect the constitution and rule of law.

The statement also expressed hope that the EC’s independence will be ensured and that “the forthcoming parliamentary elections are held in a free, fair and credible manner, fulfilling the democratic aspirations of the people of Maldives.”

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