Category: Politics

Discontinued tourism bed tax will cost state 10 percent of revenue

The People’s Majlis’ failure to extend the country’s tourism bed tax before recess will result in losses of MVR100 million a month, the Finance Minister is reported to have told local media.

As of the start of 2014, the tourism bed tax taken under the Maldives Tourism Act of 1999 will be discontinued because of a deadline added to the act during its second amendment in 2010.

Article 35 – D of the amended act states that within three years of taking TGST (Tourism General Services Tax), the US$8 tourism bed tax per person per night shall be discontinued.

As the TGST was introduced with the year 2011, the current deadline came to pass at 12am this morning.

Quoting the Deputy Commissioner General of Maldives Inland Revenue Authority (MIRA) Hassan Zareer ‘Haveeru‘ has reported that this will result in a reduction of MVR1 billion – or ten percent of annual state revenue. He said the issue had been brought to the government’s attention. Minister of Finance Abdulla Jihad was quoted as saying that this change would incur a loss of approximately MVR100 million per month from the state cash flow.

On 9 December 2013 MP Abdul Aziz Jamal Abubakr, proposed an amendment to the act – on behalf of the government – extending the deadline for another year. However, it was not passed when the Majlis went to recess with the final sitting of the third session on 30 December 2013. The next session of the Majlis will begin on 1 March 2014.

MIRA statistics reveal that  from January – November 2013 the tourism tax accounted for 9.6% (MVR787,340,577) of the total revenue collected by the authority. Within the same period tourism land rents contributed 9.8%, and TGST 27.3% of the total revenue.

On 29 December the Majlis passed a MVR17.95 billion (US$1.16 billion) national budget, despite concerns from the public and various organisations. The central bank Maldives Monetary Authority (MMA) warned that if proposed revenue raising measures in it were not implemented, the budget could not cater for even the recurrent expenditure. The authority anticipates that the resulting budget deficit for 2014 could potentially increase from MVR886.6 million to 4.4 billion (11% of GDP).

The International Monetary Fund (IMF) also proposed the implementation of a number of measures to raise revenue and reduce spending.

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MMA Governer resigns before calling on state to minimise expenses

Maldives Monetary Authority (MMA) Governer Dr Fazeel Najeeb has called on the state to minimise expenses in a press conference held to announce his resignation on Tuesday.

Najeeb said that the biggest challenge faced by the country’s economy is the structure, which is inappropriate for a nation of this level. He elaborated on his comments, saying that the state often had to resort to printing additional money to meet the “far too hefty expenses of many state institutions”.

“A central bank must not resort to printing and releasing money, especially at a time when the economy is as weakened as it is now. Even more importantly, at a time when obtaining foreign currency is this tight,” he stated.

Najeeb advised that the best option to tackle the difficulty in obtaining foreign currency – due to the increasing amount of Maldivian currency being printed – is for the central bank to halt reprinting more Maldivian rufiya. He explained that increasing the amount of Maldivian currency being printed at a rate faster than it is possible to obtain foreign currency is one of the biggest threats to the economy.

He further called upon the parliament to expedite the passing of bills to facilitate increased state earnings and to improve the structure of the state.

He also appealed to the state to tighten fiscal policy so as to reap the best possible results from the established monetary policy framework.

Achievements during five years as governor

Announcing his resignation, Najeeb stated that he held no regrets regarding any decisions he had made while serving as governor, and that he was leaving the post in good conscience.

He confirmed that his decision to resign had not been due to any political pressure and that it had been purely a personal decision based on his familial situation.

Najeeb detailed what he described as his main achievements during the five years he served as head of the MMA, as well as other notable work he was leaving incomplete as he leaves his position.

Among the achievements mentioned, Najeeb noted the introduction of a banking law, a regulation under which banks and the financial sector can be regulated, and guidelines under which the insurance sector can be regulated.

He also added that he had been able to establish major developments on an operational level on an anti-money laundering structure with the involvement of many institutions.

He further highlighted other major prospects on which work had begun, but that had not yet reached completion. This included the establishment of an anti-money laundering act, an insurance act, and a mortgage act. He also spoke of having begun work on renewing the MMA Act and in bringing amendments to the banking law.

He revealed that he had sent drafts of many of the pending bills to the relevant authorities for amendments, tabling, and ratification.

Najeeb stated that he would not be seen in the political arena, adding that any work he conducted for the state in future will be on a purely voluntary basis.

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MDP reveals candidates competing in Male’ area primaries

The Maldivian Democratic Party (MDP) has announced the names of candidates competing in its parliamentary primaries for thirteen Male’ City constituencies.

The party also announced that three candidates won the ticket without a primary because they were the only candidates contesting in primaries for those seats.

The three candidates in question were Medhuhenveiru MP Ali Azim, Galolhu Uthuru MP Eva Abdulla, and Maafannu Uthuru MP Imthiyaz Fahmy, who contested for the constituencies they currently represent.

Among other sitting MP s who are contesting in the primaries are Hulhuhenveri MP ‘Reeko’ Moosa Manik, Medhuhenveriru MP Ali Azim, Henverirudhekunu MP Hamid Abdul Ghafoor, and Machangolhi Uthuru MP Mariya Ahmed Didi competing for the seats they currently hold.

Majlis Chair and Keyodhoo MP Abdulla Shahid will compete for the newly introduced Henveiru Uthuru constiuency ticket and Maafannu Dhekunu MP Ibrahim Rasheed ‘Bonda’ for the newly introduced Maafannu Medhu constituency (formerly Villi Maafannu).

Candidates competing in the primaries for all constituencies other than the thirteen Male’ City areas were announced last month.

The only sitting MDP MP s who are not competing in the primaries are Maafannu Hulhangu MP Abdulla Abdul Raheem, Hoarafushi MP Ahmed Rasheed, Komandoo MP Hussein Waheed and Gaddhoo MP Zahir Adam.

In addition to sitting MPs, former members of the Majlis and the Constitutional Assembly, senior members in the MDP government, prominent party activists, and other famous national personalities will be competing in the MDP primaries scheduled to be held on 24 January.

The parliamentary elections are to be held on March 22 to elect the 85 members of the 18th Peoples Majlis for a five year term.
The complete list of candidates competing in the MDP primaries for Male’ area constituencies can be seen here.

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Ex CSC Chair seeks compensation for “financial loss and psychological trauma”

Former President of the Civil Service Commission (CSC) Mohamed Fahmy Hassan has filed charges against the state seeking compensation for losses after the People’s Majlis dismissed him from his position.

Fahmy was removed from his post through a no-confidence vote after a parliament committee investigation into allegations of sexual harassment of a female employee.

But the Supreme Court later overturned the Parliament’s decision, deeming it “unlawful”.

An official of the Civil Court confirmed receipt of the case, but declined from providing details.

Meanwhile, local media have reported that Fahmy has sued the state for MVR 7 million (USD 456,029) for psychological trauma and the financial loss that the decision of the parliament had cost him.

He further added that the damage it caused to his reputation has made it difficult for him to obtain other employment.

However, incumbent President Abdulla Yameen has appointed Fahmy as the Deputy High Commissioner to Malaysia. The post is equivalent to the post of Deputy Minister. Hence, tehe Civil Court has asked Fahmy to resubmit his case without the reference to the difficulty in obtaining employment, local media reported.

Background

Police sent the case against Fahmy to the Prosecutor General’s Office in August 2012, requesting for charges to be pressed against him for sexual harassment. The PGO returned the case to the police, requesting further clarification.

In November 2012, parliament voted out Fahmy with 38 votes against 32.

Chair of the Independent Commissions Oversight Committee Mohamed Nasheed had said at the time with regard to the committee’s investigation of the matter that the committee had applied widely accepted civil standards.

“We have oversight mandate over the CSC and do not need to conduct a criminal investigation. Based on our findings, 7 out of 10 committee members decided that it is more likely that Fahmy had committeed this act than that he did not. And that is enough to remove him from the post,” Nasheed had said.

However, the Supreme Court overruled the parliamentary decision in March 2013.

Fahmy continued to go into work even after the parliament voted him out and a new Chair was appointed to the commission.

By mid-September 2013, the commission finally revoked Fahmy access to its offices, cancelling his fingerprint access on the offices’ security systems until the parliament and apex court overcame the impasse over his membership.

The commission also withheld his pay from September onwards, on the advice of Auditor General Niyaz Ibrahim.

Just over a week after President Yameen assumed office, he appointed Fahmy as the Deputy High Commissioner to Malaysia.

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Coalition will overcome “ordinary” rifts: Gayoom

Ruling Progressive Party of Maldives (PPM) leader and former President Maumoon Abdul Gayyoom has disregarded claims of rifts in the current government coalition as “ordinary”, expressing confidence that disputes will be sorted out in the near future.

Coalition partner Jumhooree Party (JP) had expressed dissatisfaction regarding the PPM’s failure to consult the party in compiling the state budget for 2014.

“It is understandable that sometimes, on particular matters, misunderstandings within a coalition may arise. That is how it happens in all parts of the world,” Gayoom said, addressing media upon return to the Maldives from a personal trip to Malaysia.

He stated that in general, the leaders of the coalition parties shared a “strong sense of unity and a spirit of working together”. He assured supporters that he would “wisely take on smoothing out any discord there may be within the coalition”.

While Gayoom speaks of solving issues within the coalition, his half-brother President Abdulla Yameen and JP leader Gasim Ibrahim – whose support was crucial in PPM winning the presidential election – have exchanged harsh criticism against each other regarding the proposed budget for 2014.

Deputy leaders of both parties have dismissed the claims that a rift existed within the coalition.

Upcoming elections

Gayoom further confirmed that as the main party in the coalition, PPM is currently working on assigning constituencies to the coalition partners for the upcoming elections, adding that it will be assigned as was agreed during the formation of the coalition for the presidential election.

PPM is competing in the upcoming elections together with coalition partners JP and Maldives Development Alliance (MDA).

PPM had promised the JP over 30 per cent of cabinet positions, parliamentary seats and local council seats in exchange for their support in the presidential election.

Earlier in November, Gasim expressed concern about the governing party’s failure to fulfill its promises to the JP, adding that it may be because the PPM “is hectically engaged in other government matters”. Stating that he did not believe Yameen or Gayoom would “deprive JP of benefits”, Gasim stated then that he had sent a letter to the PPM’s leader asking for clarification of what the JP is entitled to.

The fourth party in the coalition, religious conservative Adhaalath Party – after having recently dismissed rumours of it leaving the alliance – has announced that it will be contesting in the elections separate from the coalition.

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MDP asked for cancellation of Nasheed trial: Adheeb

The ruling Progressive Party of Maldives’ (PPM) deputy leader and Tourism Minister Ahmed Adheeb has said the opposition Maldivian Democratic Party (MDP) asked for cancellation of criminal charges against former President Mohamed Nasheed in exchange for MDP endorsing cabinet ministers.

Nasheed has been charged with the unlawful arrest of a Criminal Court chief judge Abdulla Mohamed. The case is still pending.

MDP International Spokesperson Hamid Abdul Ghafoor has dismissed Adheeb’s claims, terming them “nothing but blatant lies”.

Adeeb alleged that the MDP had raised Nasheed’s personal interest over national interest in discussions held between the two political parties ahead of the parliamentary vote to endorse cabinet ministers.

The People’s Majlis voted to endorse President Abdulla Yameen Abdul Gayoom’s cabinet yesterday. Six MDP members voted against a three whip line in endorsing eight ministers who MDP had rejected claiming they are ministers of “the coup government.”

Describing Nasheed as a man who “raised self-interest above all with no consideration towards national good”, Adeeb claimed that MDP had “reverted back to it’s old manners”.

“Instead of that exemplary behaviour, what we saw was that the party wants to revert back to its old manners and return to the past. Every time we tried to sit down with MDP and talk about endorsing our government’s ministers, they set the condition that we must recall the case against Nasheed. But we are not a government who will form commission upon commission and engage in digging up people’s past,” Adeeb said in a press briefing on Monday.

“Despite some MDP parliamentarians failing to work responsibly, the brave decision to vote in favour by some among those MPs who have deep-rooted love for the nation made it possible for all our ministers to become endorsed,” Adeeb stated.

“While I won’t accuse all of them, some among MDP attempted to inhibit the development we are trying to bring to this country, and to decrease investor confidence. However, the parliament vote has demonstrated the fact that our party is going steadily forward. That we will bring about the development that the citizens yearn for,” he stated.

Prior to Monday’s vote, President’s Office Spokesperson Ibrahim Muaz Ali had also expressed confidence that the ministers will receive sufficient votes from the parliament, saying at the time that “the government has a very good understanding with the leadership of MDP.”

He added then that the MDP had “put forward a number of suggestions”, but refused to reveal details of the discussion.

“Blatant lies”: MDP

MDP has meanwhile dismissed Adeeb’s allegations as “blatant lies”.

“Adeeb’s comments are nothing but blatant lies. To my knowledge, no one from this party has brought up some a topic or condition with any other person ever. We have set no conditions in discussions about ministers endorsement,” the party’s International Spokesperson Hamid told Minivan News today.

Hamid added that there has been “no formal negotiation between the parties, although there have been unofficial discussions between politicians from over the political spectrum”.

“Over a 1000 regular members of MDP have been placed in detention after the coup d’etat of February 2012, with a wide range of fabricated charges raised against them. I have heard of discussions about this matter between politicians of various parties. MDP does have an expectation that these people must be freed and allowed to return to their normal lives now that there is an elected government in place. They have done no wrong, and the charges against them were fabricated after they were arrested for exercising their right to demonstrate,” Hamid explained.

Former President Nasheed has also dismissed Adeeb’s allegations as false.

“To my knowledge, no such conditions were put forward. This is clear even from MDP parliamentary group’s whipline in the vote,” he is quoted as saying in local media Haveeru.

In Monday’s parliamentary vote to endorse ministers, MDP had enforced a three line whip against voting for 8 of the 15 cabinet ministers, while a free whip had been released in voting for the remaining 7.

A number of parliamentarians had breached the party’s whipline, resulting in the endorsement of all cabinet ministers. One of these members – Mohamed Rasheed – has since joined ruling party PPM.

The MDP leadership has announced that it will reveal the form of action to be taken against those who voted against the whipline after further investigation of the matter.

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Supreme Court orders JSC to halt transfer of judges

Supreme Court has released a mandamus order on Monday halting the judicial oversight body’s decision to shuffle ten superior court judges.

The order states the Judicial Services Commission (JSC) does not have absolute powers to transfer and promote judges.

Unless a court is liquidated no judge can be transferred to another court unless by the explicit decision of the Judicial Council, the Supreme Court said.

The Supreme Court has previously annulled the Judicial Council and taken over the council’s powers. The JSC has been notified of the move and hence is mandated to discuss any shuffle of judges with the Supreme Court, the order said.

“The Judicial Service Commission’s decision dated December 9, 2013 – where without any contribution of the Supreme Court – the JSC decided to transfer judges of the Civil Court, Criminal Court, Family Court, Drug Court and Juvenile Court from one court to another from January 1, 2014 is hereby overturned, and we notify Judicial Services Commission, concerned courts and other concerned authorities that it cannot be acted upon,” the order signed by Chief Justice Ahmed Faiz Hussain reads.

JSC disregarded Chief Justice’s objections

Earlier in December, the Chief Justice sent a letter to the JSC objecting to the transfer, presenting the same arguments as in Monday’s mandamus order.

The JSC had at the time decided to disregard the objections, saying it lacked legal grounds.

“Even under the constitution and the JSC Act, the commission is vested with the power to transfer the judges,” JSC representative from the parliament Ahmed Hamza said at the time.

“Order is baseless but will abide by it”

Hamza stated that the JSC still maintains that its decision is a legally justified one.

“When the next term of parliament begins, we will work on this matter from within the parliament. Meanwhile, the JSC’s position is clear: we maintain our stand that our decision to transfer judges is legal and within our powers,” Hamza told Minivan News today.

“By releasing this order, the Supreme Court has undermined the powers vested in the JSC by the constitution. I do not accept that the Supreme Court has the power to do so,” he continued.

“The Supreme Court usually overrules things when someone files a case there, not of their own initiative as in this instance. It is very surprising how this has come about.”

However, Hamza stated that as the objection has come in the form of a Supreme Court order, the JSC will have to follow it.

JSC Member appointed from the public Sheikh Shuaib Abdul Rahman stated that while the order held the same reasoning as the letter previously sent by Faiz, the JSC will abide by it as it has now come in the form of an apex court order.

However, commenting further in private capacity, Shuaib described the Supreme Court’s reasoning as “irrational”.

“The reasoning presented in the order itself is irrational, and off the topic. The only legal connection that they can show is Article 47 of the Judges Act. The thing is they are talking about the Judicial Council, which has been made void. How can they refer to something that has already been made void? The articles that the Supreme Court have pointed out in the order have nothing to do with the JSC,” Shuaib said.

Shuaib said that he does not accept the Supreme Court can adopt the duties of the Judicial Council after the council itself has been ruled void.

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Committee to re-submit Penal Code in March

Parliament’s Special Committee for Penal Code Review has stated that the committee will complete work on revising the bill by early March.

The final draft of the penal code – which had taken seven years in the committee stage – was rejected in yesterday’s parliamentary sitting with 36 votes. MPs then voted to send the bill back to the drafting committee

Maldivian Democratic Party (MDP) MP and chair of the committee Ahmed Hamza told Minivan News today that the committee will send letters today to every individual member of parliament, asking them to submit any desired amendments to the bill by January 20.

On receiving the amendments, the committee will review them and decide on those to be accepted by January 30, after which the revised bill will be sent to the parliament floor for voting on February 5.

The committee will work with a representative from the Attorney General’s Office when reviewing amendments submitted by parliament members, Hamza said.

“The committee has decided today to work by this plan. My hope is that both the government and other members will send in all the amendments they want within this period of time, and that we will be able to complete this work. Our aim is to table the report by the time parliament reconvenes on March 1,” Hamza said.

Bill rejected by a narrow margin

Hamza said he was “astounded” by the rejection, given that the review committee which had passed the draft was representative of all the political parties.

Members from the government coalition parties had voted against the bill, with Progressive Party of Maldives (PPM) MP Ahmed Mahloof confirming to Minivan News yesterday that a coalition whip-line had been issued for the matter.

In addition to pro-government members, Maldivian Democratic Party (MDP) MP Abdulla Jabir has also voted against passing the Penal Code.

Jabir was not responding to calls at the time of press. However, he is quoted in local media as saying he had voted against the bill as he found it to be “too harsh”.

Two members abstained from voting on whether to return the bill to the committee.

MP Ibrahim Muhthalib refrained from voting, stating that “no human being has the right to rephrase divine laws in Islamic Sharia into separate articles in a law” and that he would abstain from voting on the matter as some scholars believe that participation in such an act may be blasphemous.

While voting records are not yet published on the parliament’s official website, an official confirmed that independent MP Mohamed Nasheed was the second member to have refrained from voting.

MP Nasheed was also not responding to calls at the time of press.

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Majlis passes Right to Information Act

The People’s Majlis has unanimously voted to pass the Right to Information (RTI) Act.

The act – first introduced to the Majlis in 2009 – was passed as presented by the Social Affairs Committee with minor amendments with the support of the 67 MPs.

Introducing the bill to the floor, the committee chair MP Abdulla Maseeh Mohamed said the committee had sought assistance from local media and international experts in revising the bill

The bill was first sent to the People’s Majlis in 2007 but was rejected. It was reintroduced to the current People’s Majlis in November 2009, and underwent a complete overhaul at the Social Affairs Committee.

Local NGO TransparencyMaldives (TM) which has advocated for the act for a long time described its passing as “an important step towards increasing transparency of the state institutions, ensuring greater accountability of public officials, and fighting corruption”.

“Transparency Maldives hopes that President Abdulla Yamin Abdul Gayoom will expedite the ratification of the bill.We call on all actors and institutions to provide their full support towards successfully implementing the law once ratified” said the organization in a press released issued today.

Speaking to Minivan News today, Transparency Maldives’ Advocacy and Communications Manager Aiman Rasheed said the act was one of the best legislation  passed by the Majlis.

Once the bill is ratified, subsidiary regulations will need to be passed, an Information Commissioner will need to be appointed and a support structure will need to be implemented, Aiman said.

If ratified the act will bring about major changes to the Maldives access to information regime. Although the current RTI regulation introduced in 2008 through an executive decree applies only to government offices, the new act will apply to all state funded institutions including the parliament, judiciary and independent institution.

Other key features of the act include the establishment of an information office in all state institutions, instituting a seven day period of response for information requests and a thirty day period to proved the information or reason for failure to do so.

An independent Information Commissioner will also be appointed by the parliament from names proposed by the president. Issues with acquiring information can be appealed to the Information Commissioner.

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