Category: Politics

Auditor general alleges several inconsistencies in Ministry of Human Resources 2010 audit report

Auditor General (AG) Niyaz Ibrahim has alleged that several inconsistencies in spending have been identified in the Ministry of Human Resources, Youth and Sports’ 2010 audit report.

The discrepancies highlighted in the report (Dhivehi) include a failure to prepare the ministry’s financial statements in accordance to legal standards, as well as certain spending on a number of projects and events.

Speaking to Minivan News today, former Minister of Human Resources, Youth and Sports Hassan Latheef questioned how complete the AG’s research had been, adding that the documents identified as missing in the audit report would have been available.

Latheef who was in charge of the ministry until the controversial transfer of power in February last year, claimed that the AG’s report was misleading.  Although he did not dismiss the report’s conclusions outright, Latheef maintained that the AG’s findings were incomplete and would have been more accurate if it had consulted with staff working at the ministry during his tenure.

Copies of the AG’s report are to be sent to President Waheed and parliament, as well as other relevant authorities. The AG has also called on to the authorities to investigate the findings of the report and take action against those who are found responsible.

In the report, which was released on Thursday (January 3), the AG’s office stated that it did not believe the Human Resources Ministry had spent its budget in compliance with the Public Finance Act (Act No. 3/2006) and Public Finance Regulation.  The findings therefore included recommendations to reclaim the sum of money believed to have been spent outside of the regulations.

Inconsistencies

Amidst the AG’s findings, the report claimed that the Human Resources Ministry had failed to prepare its financial statement for 2010 as stipulated in the Public Finance Regulation.

“The Ministry of Human Resources, Youth and Sports’ financial statements were not prepared in accordance with the standards set by the International Public Sector Standards (IPSAS) board,” the report stated.

AG Niyaz also alleged that the ministry had failed to recover funds owed to the state by different parties from several outsourced projects, including a project to set up and run a canteen at the Maafannu Cricket Stadium.

The AG claimed that a sum of MVR 487,875 (US$ 31,639.15) was owed to the state as a result of the project, which included rent and fines.  The report added that the Human Resources Ministry had failed to take adequate measures to recover the outstanding sum of money.

In an another claim, the AG alleged that the ministry had failed to recover a sum of MVR 237,000 (US$ 15,369.65) owed to the state as both rent and fines from “Ekuveni Canteen”.  The report recommended the ministry recover money from the parties, calling on authorities to take action against those found to have failed to comply with the laws and regulations.

Illegal transfer of funds

The report also highlighted several cases where funds were transferred by the Human Resources Ministry to projects that the AG claimed were carried out in contradiction to national laws. Included among the highlighted cases was a transfer of MVR 130,000 (US$ 8,430.60) to the Cricket Control Board as a payment for work carried and payment of MVR 14,500 (US$ 940.33) for another company.

The report also raised concerns over sums of MVR 75,000 (US$ 4,863.81) and MVR 50,000 (US$ 3,242.54) transferred to two NGO’s said to have close ties with an unidentified senior ministerial figure. Another issue was a sum of MVR 153,274.80 (US$ 9,940.00) that had been provided to a music band who had not even requested for the money “according to the documents”.

Spending on travel expenses of a parliament member

The AG’s report stated that the Human Resources Ministry budget had also been used to cover an MP’s travel expenses during a trip with then Minister Hassan Latheef to watch the finals of 2010 AFC Challenge Cup held in Sri Lanka.

According to the report, the Ministry spent a total of MVR 15,280.60 (US$ 990.96), which  included a sum of MVR 12,057.60 (US$ 781.95) for pocket money, incidental allowance, accommodation and meals.  The remaining MVR 3,223 (US$ 209.01) was used to cover the MP’s air ticket to watch the football match.

The AG’s office recommended that the ministry bring its budget spending in accordance with the Public Finance Regulations. The report also raised questions as to what capacity the MP had travelled with the minister, as well as the grounds for the government to cover the subsequent travelling expenses.

According to the report, the ministry was advised to retrieve all monies spent by the MP, referring again to measures within public finance laws and regulations.

Former Minister’s response

Responding to the AG’s Office report today, former Human Resources Minister Hassan Latheef said that the MP who travelled with him, as mentioned in the report, was Hamid Abdul Ghafoor of the Maldivian Democratic Party (MDP).  According to Latheef,  Ghafoor – formerly a state minister in the ministry prior to his election to parliament – was accompanying him as a “technical consultant” on the trip.

“Actually it was not just simply a final match. I went there to meet the President of Asian Football Association (AFC) Mohammed bin Hammam. I had sent a letter to Hamid Abdul Ghafoor to accompany me as a technical consultant because I do not possess the technical knowledge of football. So I had requested Ghafoor in official capacity. I even can assure you that a copy of the letter would also be there,” he explained.

Latheef contended that after looking at the numbers, it would be clear that the ministry had spent the minimum required amount for travel expenses and had not intended to “award [MP Ghafoor] a stack of cash”.

“It was neither carried out in a politically motived way nor as a friend. He went as a technical consultant. Now people would ask why Ghafoor was selected. I believe the minister would have the discretion to decide who he would take,” he added.

“This is not something new. For instance, a person who is not even in the government or even in politics went as a chief guest to attend the SAARC Youth Camp held in Addu City in 2011. But it will be our ministry who would be giving his accommodation and travel expenses. How can that be called corruption or politically motivated?”

According to Latheef, the AG had been requested to audit the Human Resources Ministry’s operations back in 2008 shortly after he assumed his position under the government of former President Mohamed Nasheed. According to Latheef, the AG had at the time said that it had already audited the former Employment Ministry and could therefore only look at the youth and sports operations.

“When it was getting delayed, I even sent a letter in 2009 as well asking the AG to audit the ministry” he said.

“I know the AG would only base his report on documents, but if he had asked our collaboration, we would have helped. Things get confusing when you wake up the next morning to see a new government has taken over through a coup. Had we been there when the auditing took place, I am sure the documents which the AG had noted missing would have been found,” he explained.

Amidst other concerns identified in the report, Latheef dismissed claims he had failed to try and retrieve funds spent by the ministry. He added that the ministry, during his tenure, was working on retrieving funds from the said parties and some of the cases were being investigated by police in cases where the ministry had filed for non-payment of rent.

Responding additionally to concerns about providing payment to the band identified in the AG’s findings, Latheef claimed that the report had said it was the responsibility of the National Sports Council to set the procedures for which performers can be paid. Latheef however dismissed the claim, stating that it was the ministry’s responsibility.

“The sports council does not do that. It is the responsibility of the [Human Resources] Ministry.  The Sports Council can set the mechanism on how the sports associations are given money. They don’t have to do that for music bands,” he said.

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Foreign Ministry claims resolution found to Indian visa “difficulties”

The Ministry of Foreign Affairs has said recent difficulties experienced by Maldivians in trying to obtain medical visas for travel to India have been resolved through ongoing discussions between the two countries.

Late last month, Maldivian citizens wishing to apply for visas allowing them to travel to India for medical treatment were forced to queue outside the Indian High Commission in Male’, sometimes for days, as a result of tightened restrictions by Indian authorities.

Indian authorities stressed last week that tighter visa restrictions for Maldivians were  a “signal” for the country’s government to address a number of its concerns about how the nation treated migrant workers.  Among its key concerns was the practice of Maldivian employers confiscating the passports of foreign workers.

The Indian High Commission has maintained that the tightened restrictions were nonetheless in line with a bilateral agreement signed back in 1979 and its appropriation by Maldivian authorities in the intervening years.

Ibrahim Muaz Ali, Communication Director for the Minister of Foreign Affairs, told Minivan News this week that talks with the Indian High Commission were ongoing in an attempt to resolve difficulties facing people wishing to travel to India for treatment.

He confirmed that the discussions were focused in areas such as facilitating the transfer of Indian prisoners suffering from ill health.

Muaz added that the issue of tighter restrictions for medical travel had been “directly linked” to concerns raised by the Indian High Commission.  He added that although no agreements had as of this week been made on issues such as prisoner transfer, Maldivians were once again able to travel for medical care without facing significant queues.

“Before there have been lots of difficulties [with getting medical visas],” he claimed. “But we have now been given 50 to 60 ticket numbers a day [for processing the documents].”

Muaz said that with discussions ongoing, the foreign ministry has been able to start a phone service allowing applicants seeking a medical visa to India to SMS their details to a special number. Under its agreement with the High Commission, the ministry has said it can then follow up with each person using the service to facilitate medical travel.

Muaz added that in cases of serious illness, such as patients wishing to travel abroad for cancer treatment, patients were receiving fast tracked entry into India.

High Commission concerns

Asked about the efforts being undertaken to address concerns raised by the Indian High Commission – such as the transfer of prisoners – Muaz said that the Foreign Ministry had been looking at the issue.

Local media reported Thursday (January 3) that efforts were being made by Maldivian authorities “within the contours of the law” to release Indian nationals imprisoned in the Maldives in cases where they were found to have been in ill health.

Muaz added that after having been asked to facilitate such a transfer by the High Commission, no decision had yet been taken on how the request would be handled.

“What we have been asked to do at present is a very broad request [from Indian authorities],” he said. “It is an ongoing process and we are looking at the issue, but we have not yet confirmed any agreement.”

Speaking to Minivan News last week, a spokesperson for the Indian High Commission said that the issue of transferring ill prisoners was one of a number of concerns it hoped to see addressed.

“This is one of the areas [for the Maldives to address] and we have requested for either a pardon or repatriation as per an agreement signed during the visit of the Indian Prime Minister in November 2011,” the spokesperson said.

Back in October, a senior Indian diplomatic official in the Maldives expressed concern over the Maldives’ culture of confiscating passports of migrant workers arriving to the country from across South Asia – likening the practice to slavery.

The High Commission also claimed during 2012 that skilled expatriate workers from India, employed in the Maldives education sector, had continued to be “penalised” due to both government and private sector employers failing to fulfill their responsibilities.

Meanwhile, a senior Indian medical official working in the country also alleged last year that expatriate professionals were regularly facing intimidation and fraud in the country from employers and some members of the public.

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Tourism head pledges action on waste management over fears for Maldives holiday image

The Ministry of Tourism, Arts and Culture has pledged to take the “lead” in addressing waste management issues in Male’ should the city’s council and the Ministry of Environment and Energy fail to effectively deal with concerns about garbage.

Tourism Minister Ahmed Adheeb this week said that the issue of waste management posed an immense threat to tourism in the country, adding that his department would look to actively address the problem should other authorities fail to resolve ongoing concerns by next month.

The comments have been dismissed today as irresponsible by the Ministry of Environment, which favours greater levels of cooperation from Adheeb’s department and the wider tourism industry in how waste was dealt with in Male’ and the nearby island of Thilafushi.

Thilafushi, where the vast majority of waste from the country’s resorts and inhabited islands is deposed of, has become more commonly known ‘garbage island‘ by both local and international media.

Meanwhile, Male’ City Council (MCC) has alleged that it is not being provided sufficient funding from the 2013 state budget to deal with garbage levels in the capital.  This funding has been identified by the council as exacerbating the challenges it claims to be facing due to growing amounts of waste and outdated machinery used at the capital’s refuge sites.

This week, the council claimed it had been forced to shut one of the capital’s two waste disposal sites due to machinery at the site being inoperable – limiting the amount of garbage that can be handled at the site in recent days.

Taking the lead

On Monday (December 31, 2012) Tourism Minister Adheeb spoke of the present challenges facing waste management in the country, maintaining that a failure to try and solve current problems with the capital’s garbage would require his ministry to “take the lead” in clean up efforts.

Adheeb added that waste management was therefore expected to be a main focus of the Fourth Tourism Master Plan – scheduled at present to be released within the first quarter of 2013.

“One of the main issues which have a negative impact on the tourism industry at present is the issue of garbage: the sight of garbage floating in the sea, the sight of smoke from burning garbage as the flights descend to land. This has a very detrimental impact on value addition,” he stated.

According to Adheeb, user generated reviews on popular travel sites like TripAdvisor were now cautioning tourists to choose resorts where “smoke is not visible”, causing a loss to the many high-end resorts located near Male’ and Thilafushi.

“There is no way we can sustain tourism without solving the issue of waste management. We will wait till the end of February. If by then the Environment Ministry and the MCC are unable to deal with the issue, then we will take the lead, even if it means we will need to spend on it on a voluntary basis,” Adheeb said.

Waste management deal

The previous government of former President Mohamed Nasheed had signed a waste management agreement with India-based Tatva Global Renewable Energy back in May 2011 to implement a system designed to generate power from recycling waste.

The contract has been undergoing renegotiation with the current government as part of efforts to provide what it has called a more “mutually beneficial” agreement – a move slammed by the MCC, which had accused authorities of trying to “sabotage” the deal.

However, Adheeb this week was said he was critical of the effectiveness of previous methods of waste management being sought in the Maldives, as well as the attitudes of certain environmental activists.

“We need to learn to make do with taking just the basic steps. For example, when it comes to dealing with waste management, we aspire to turn it into gas or electricity immediately upon being burned, and then for it to be connected to Male’ and Hulhumale’ via submarine cables,” he said.

“Now if we are to have expectations as high as this, we will never be able to deal with the issue practically.”

Adheeb added that if people were concerned about the environment, they should equally consider the issue of waste management, claiming a failure to solve the issue would make it very difficult for the tourism industry to survive.

“Why not just take the basic steps and get rid of the waste?  Previous leaders have tried to make Maldives a leading name whenever the topic of environment comes up. But no real solutions were found in the past three or four years,” he said.

Adheeb also contended that the present focus of environmental activism within the country was proving detrimental to tourism development, as well as ignoring advances in construction techniques being used by the industry.

“From what we have seen, if we try to get an EIA (Environmental Impact Assessment) done for the purpose of beginning construction of a resort, the environmentalists suddenly get very concerned. Or if we try to reclaim land, then again the environment becomes so very important. But Hulhumale’ and Reethi Rah Resort are very good examples. In Maldives, even through reclamation, we can make things natural,” he said.

Cooperation

State Minister for Environment and Energy Abdul Matheen Mohamed stated today that while waste management issues could pose problems for the tourism sector, he believed it could be better managed and solved faster if the Tourism Ministry would provide more cooperation on related work.

“I don’t think Adheeb’s statement on taking initiative in waste management is a very responsible one. Since a lot of resorts take garbage to Thilafushi and end up dumping it into the sea,” he claimed.  “We have approached the Tourism Ministry with plans to place Environment Officers in resorts to monitor this. It would be good if that ministry would cooperate a bit more than they do now.”

Matheen confirmed that the negotiations with Tatva over a new deal on the previously agreed waste management project had now been concluded. He said that a final decision would be reached after it is submitted for the Economic Committee’s approval this coming week.

Aside from future projects to better manage waste, Male’ City Councillor Mohamed Abdul Kareem today claimed that the municipal council has not been allocated sufficient funds for waste management work in the 2013 budget passed last month by parliament.

Karrem claimed that the council had this week already been temporarily forced to facilitate alternative methods of shifting large amounts of garbage after Waste Disposal Site Number 2 in the capital was closed owing to machinery failure.

“We have managed to reopen the site today, after having cleared up the place again. One of our biggest concerns for this year ahead of us is that the state has not provided our council with any funds to deal with this issue of waste management,” Kareem stated.

“Negligence”

In a direct response today to Adheeb’s comments, Male’ City Mayor ‘Maizan’ Ali Manik alleged that the waste management issue had been delayed owing to negligence on the part of the current government.

“Adheeb belongs to the group of people who are extremely good at ‘taking over’ everything, so there is not much we can do if he ends up taking over waste management work. However, if all goes accordingly, Tatva will commence work in March,” he said.

Manik further stated that although it was MCC that had initially signed the contract with Tatva, the Ministry of Environment had now taken over and was proceeding with discussions with the company without involving the council.

Manik said that the council had had some discussions with the Ministry previously, where they had pledged support to the project.

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Opposition expresses concern at defence spending hike in 2013 budget

Additional reporting by Ahmed Naish.

Budget Review Committee Member and Maldivian Democratic Party (MDP) MP Mohamed ‘Colonel’ Nasheed has revealed his party held “concerns” over the level of increased defence spending in the recently approved 2013 budget.

The 2013 state budget included a 14 percent increase to the 2012 defence budget that stood at MVR 797.9 million (US$51.7 million).

Amidst attempts to reduce the state’s budget deficit, MVR 130 million (US$8.6million) had been allocated to defence spending, bringing the total to MVR 930.9 million (US$60.3 million) for this year.

Authorities claim that the increased spending for the year is needed to cover additional duties such as the transfer of aviation security under the Ministry of Defence.

Through the budget review committee’s evaluation of the state budget, MP Nasheed claimed  that he and other members of the MDP had raised questions regarding the increase in the defence budget.

“While we understand national security is paramount, we did find the 14 percent increase to the defence budget a bit fishy,” he claimed. “We [MDP budget review committee members] raised questions regarding our concern over the increase, but unfortunately we do not have the majority on the committee.”

In order to reduce the budget deficit, the budget review committee made cuts of MVR 1.6 billion (US$103.7 million) to the MVR 16.9 billion (US$1 billion) state budget proposed by Finance Minister Abdulla Jihad. Parliament eventually passed an amended MVR 15.3 billion (US$992 million) state budget.

According to the Budget Review Committee report, the Maldives Monetary Authority (MMA) advised the committee to reduce total expenditure to MVR 15 billion and attempt to reduce public debt.

Despite the recommendations, Defence Minister Mohamed Nazim this week defended the MVR 130 million increase,  telling Minivan News that the money was needed to accommodate the newly established Aviation Security Command.  The operations have been put under the Ministry of Defence and National Security.

President Dr Mohamed Waheed Hassan Manik announced the establishment of the Aviation Security Command On Tuesday (January 1) in order to formulate aviation security policies and procedures.

Aside from undertaking new responsibilities under the Aviation Security Command, Defence Minister Nazim said additional improvements for Maldives National Defence Force (MNDF) personnel welfare were also being sought.

“We are also looking to improve accommodation for MNDF personnel, and we will be looking to open an operating theatre and Intensive care unit in the military hospital,” said Nazim.

When asked as to why the military hospital needed to be expanded given the size of the MNDF, Nazim said that uniformed personnel waiting in line to receive treatment at the other two hospitals in Male’ wasted valuable service time.

“The hospital is not just utilised by the military, it is also used by the police force and immigration and customs officers,” he added.

When addressing the issue of increased defence spending within the budget, Dhivehi Rayyithunge Party (DRP) MP and budget review committee member Dr Abdulla Mausoom said that national security was an important consideration needing to be made.

“You are talking about national security, and now aviation security for a whole country. Yes the budget is more than reasonable. The DRP is under no influence from the government and this time we are not concerned over the increase in the defence budget,” Mausoom said.

New uniforms and new accommodation for MNDF

Speaking at a ceremony on Monday (December 31, 2012) to unveil new uniforms for naval officers, Defence Minister Nazim said that efforts were underway to arrange accommodation for more officers at MNDF centres.

“Equipment has been purchased to arrange accommodation for officers. After the repairs, more officers will get accommodation in the next three months,” Nazim was quoted as saying.

The new accommodation would be provided at the MNDF Bandaara Koshi and Kalhuthu’kala Koshi in Male’, Nazim said.

Nazim said that efforts were also being made to arrange for low cost medical treatment for MNDF officers and their families overseas.

Providing accommodation to MNDF officers was discontinued as part of cost-cutting measures implemented by the administration of former President Mohamed Nasheed.

During last month’s budget debate, parliament’s Majority Leader, MDP MP Ibrahim Mohamed Solih, criticised the Finance Minister for failing to mention in his budget speech plans to hire 864 new police and army officers.

MP Solih, parliamentary group leader of the MDP (MDP), noted that the wage bill would shoot up 37 percent in 2013 compared to the previous year.

Echoing the concerns of the parliamentary group leader, MDP MP Eva Abdulla revealed that MVR 6 million (US$ 389105) was added to the budget of the Maldives National Defence Force (MNDF) following the controversial transfer of presidential power on February 7.

Former President Nasheed has alleged that he was forced to resign from office under “duress” in the wake of a police mutiny on February 7. Eva raised concerns that the police and army have hired 250 and 350 new staff respectively under the new government.

Consequently, both institutions found to have spent more than MVR 75 million (US$4.8 million) in addition to the approved budgets for 2012, she claimed.

Eva observed that the increase in the government’s wage bill of 37 percent was approximately MVR1.7 billion (US$110 million), which was also the amount allocated for harbour construction in the 2013 budget.

These funds should instead be spent for “harbours, education, sewerage and housing,” she argued.

Defence budget breakdown

Of the MVR930.9 million assigned for the military, MVR 805.4 million (US$52.2 million) is to be spent on military defence and MVR 125.5 million (US$8.1 million) on civil defence, according to the defence budget proposal last month.

Moreover, defence expenditure under the Public Sector Investment Projects (PSIP) include MVR 3.1 million (US$201,000) for the construction of a troops accommodation building in Gaaf Dhaal Thinadhoo and MVR 1.9 million (US$123,216) for a military barracks in Laamu Kadhdhoo.

Following the controversial transfer of presidential power in February, where sections of the police and military mutinied against the former government, an allowance of military personnel pending for more than two years was disbursed in a single payment by the Waheed administration.

Local media reported at the time that some officers had received over MVR6000 (US$390) in accrued allowances, although a total figure spent on the pay out, or how many officers received the allowances, was not stated.

MVR 1.1 billion has been budgeted to pay salaries and allowances for 7,108 personnel in the uniformed bodies.

The figure in the 2012 budget was MVR 999 million for 6,244 army and police officers.

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Yacht Tours to take legal action over resort termination

Yacht Tours, a company owned by Maldivian Democratic Party (MDP) MP Abdulla Jabir, has said it will take the government to court over the recent termination notice it has been sent in relation to unpaid rent.

At a press briefing held today, Yacht Tours Executive Director Ibrahim Rasheed explained that the company currently owed approximately US$5 million (MVR 77 million) to the state.  According to Rasheed,  one-third of this debt was actual rent payments, while the rest amounted to fines accumulated over recent years.

“We have previously paid USD 1.5 million dollars (MVR 23 million) to the state as an advance for our island Watavarreha. Just after we made the payment, a new law was passed and it came about that this was something our company did not really have to pay,” Rasheed explained.

“But then, keeping the financial status of this nation in mind, our company did not push too hard to get reimbursed. Instead, we requested the government to use this money for rent adjustment of our other resorts,” he said.

Rasheed also gave details of the company’s official communications with the government in regard to the request it had been sent, providing the media with copies of letters exchanged between the state and the company.

Yacht Tours had requested the then Minister of Tourism, Arts and Culture, Dr Mariyam Zulfa, to arrange rent adjustment of the resorts Kudarah and Alidhoo from the Watavarreha advance, which the company said it was owed by the government.

A follow-up letter, dated August 21, 2011, stated that according to the Maldives Inland Revenue Authority (MIRA), the government owed the company US$1,115,374 (MVR 17,176,760).  At the same time, the company was said to owe a total amount of US$1,300,418 (MVR 19.9 million) in charges for the three resorts to the state.

The former tourism minister had then sent a letter on August 21, 2011 to the Ministry of Finance and Treasury, asking the rent adjustment to be processed as was requested by the company.

In a letter dated 27 September, 2011, a letter exchanged between the President’s Office and the Ministry of Finance and Treasury stated that advance money paid by a company can be used as rent adjustments for another resort or tourist business owned by the same company.

Following the transfer of power in February, Yacht Tours had again approached the Tourism Ministry to settle the matter of rent. On 22 February 2012, Yacht Tours wrote to current Tourism Minister Ahmed Adheeb, once again detailing the issue and asking for rent adjustment.

According to the company, Adheeb has failed to respond to the letter.

At a press conference on held December 31, 2012, Adheeb said that Yacht Tours had been sent the termination notices for both the Alidhoo and Kudarah resorts, with a seven day period for handover.

He added that while the ministry had come to a payment system agreement with a number of other companies, Yacht Tours had sent no official written communication in regard to the payment of outstanding rents.

In response, Rasheed claimed he was deeply concerned about the comments, accusing the minister of making a false statement.

“We wrote to the ministry just after he was appointed. We still haven’t received a response to the letter sent back in February. We have also met him officially at a number of instances to discuss this matter. The last time, right after the termination notices were sent in late November, I personally went with Jabir to a meeting with the minister to discuss this issue. At the time, the Minister had said that he was working on it, to arrange rent adjustment,” Rasheed said.

“We are very saddened that the minister has gone and said there are no communications between Yacht Tours and the ministry.  If, let’s say, the current government considers all the letters we have exchanged with the previous governments to be void, then we should be notified of that. Makes me wonder if Adheeb thinks he is the first minister of tourism of the country. With the current actions in mind, it is hard to see Adheeb as a capable minister,” he added.

Yacht Tours Managing Director Ibrahim Shiham spoke about the huge loss the company was facing due to the government’s actions.

“Many of the bookings are getting cancelled. We are also experiencing delays from business partners and financiers. Foreign investors are very concerned about the government’s actions. The market value of the islands are at US$100 million (MVR 1.5 billion) now. And they are trying to terminate this over a value of US$5 million (MVR 77 million).

“Our wish is to settle the matter through dialogue, but now that we have been given seven days to handover the resorts, our legal team will respond to it. We will be taking the matter to court,” Shiham said.

Yacht Tours Chief Executive Officer (CEO) Mohamed Zuhair expressed concerns over the state’s treatment of companies in the tourism industry.

“It goes without saying that all companies in this same industry must be treated equitably and fairly. However, we deeply regret to say that today it is not how things are been carried on. Yacht Tours is not given the same treatment as other companies in the industry,” Zuhair said.

The company furthermore pointed out the silence on the matter of tourism related bodies like MATI and MATATO to be very concerning.

Minister of Tourism Ahmed Adheeb was not responding to calls at the time of press.

Abdulla Jabir is currently not in the country.  Jabir had recently rejoined the MDP from the government-aligned Jumhoree Party (JP).

Last month, staff at Alidhoo Resort alleged both Maldivian and foreign workers had not received pay for several months, despite complaints made to management and various external government organisations.  Minivan News understands some of these payments had since been made by the company.

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Government seeks to dissolve Male’ City Council

Additional reporting by Ahmed Naish.

The government has confirmed today it has requested the Local Government Authority (LGA) to dissolve Male’ City Council (MCC) – an elected body predominantly represented by opposition Maldivian Democratic Party (MDP) members.

The MCC has been involved in a number of disputes with the government during 2012 following February’s controversial transfer of power – most recently over the issue of funding and utility bill payments.

President’s Office Spokesperson Masood Imad confirmed to Minivan News today that any decision to dissolve the MCC would be made legally through a request to the LGA, which is presently chaired by the Home Minister.

“What I know is that we are getting complaints about [the council’s] inefficiency,” he said.

Masood was unable to comment further on the matter at time of press, forwarding inquiries to Home Minister Dr Mohamed Jameel Ahmed.

Dr Jameel was not responding to calls from Minivan News at the time of press.

However, Councillor Mohamed Abdul Kareem told Minivan News that the MCC had been informed that the LGA had been sent a request from the government to dissolve the council.

Of the eleven councillors of the capital, nine were elected on MDP tickets.

Kareem observed that article 66(a) of the Decentralisation Act grants the LGA authority to submit a case to the High Court requesting the dissolution, but believed no such motion had been filed at time of press.

“As far as I know, such a case has not been sent to the court,” he said

Kareem added that should the dissolution matter proceed, lawyers for the MCC were to appeal against any such motion, taking the case to the Supreme Court if it was unsuccessful during the High Court case.

Three grounds for dissolving councils are specified in article 66(a) for which a case could be submitted to the High Court.

These include repeatedly failing to carry out the functions and responsibilities of the council; misusing the council’s resources or facilities; and failing to carry out duties due to repeated failure to hold meetings.

Article 66(b) meanwhile states that the court must only grant the LGA request “if the court believes that there is no other way but dissolving the council.”

In the event that the High Court approves dissolving the council, fresh elections must be held within 45 days. The LGA would appoint caretakers in the interim to manage council affairs.

LGA member Ahmed Faisal told newspaper Haveeru today that the Home Ministry requested the MCC be dissolved following deliberations by the cabinet.

“We have received a letter signed by the Home Minister. But we have not tabled the issue in the agenda yet. And I don’t even believe that the Home Minister could order a council to be dissolved like that. Because there are a lot of things the LGA has to complete before that,” Faisal was quoted as saying.

Faisal accused Home Minister Jameel of requesting the city council be dissolved for “political purposes.”

Faisal also criticised Jameel for allegedly being unaware of the difficulties faced by councils in his role as chair of the LGA, the oversight body formed to coordinate with and oversee local council.

The LGA member stressed that dissolving councils was a long process and that the LGA has not made any decision yet, adding that dissolving the council without addressing difficulties it faced would be “unjust.”

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Recent bills “restrict fundamental rights,” NGOs warn

A number of bills passed by parliament in 2012 could “weaken the democratic, good governance system” and “restrict some fundamental rights,” local NGOs Transparency Maldives (TM) and Maldivian Democracy Network (MDN) have warned.

In a joint statement issued today, the civil society organisations expressed concern at the potential narrowing of constitutional rights to freedom of assembly and expression as well the formation of political parties.

The statement also expressed concern with the “loss of transparency” due to the decision to conduct no-confidence motions through secret ballot.

With legislative and oversight powers over the executive and independent institutions, the NGOs noted that the People’s Majlis had “the most prominent role” in establishing democratic, good governance and protecting human rights.

The NGOs also called on the relevant authorities to ensure that MPs could fulfil their legal responsibilities “free from harassment and fear in a secure environment”

It added that the NGOs did not believe calls for dissolving parliament “could strengthen the People’s Majlis.”

On the amendment approved to the parliamentary rules of procedure to conduct no-confidence motions through a secret vote, the NGOs said it believed that decision could lead to “loss of transparency in the Majlis, pave the way for corruption and impede holding the people’s representatives accountable.”

Fear of physical harm or other forms of retribution based on such votes was not a justification for the decision, the NGOs said, contending that secret votes was “not the solution” to the purported threats.

The political parties bill meanwhile restricted the constitutional right to form political parties by requiring 10,000 members for registration, the statement continued.

“What is needed to strengthen the functioning of the party system is to increase participation of party members, party’s taking initiative to inform members of financial matters, auditing, ensuring implementation and taking measures against violations,” the statement read.

The NGOs suggested that the number of votes a party receives in general elections, number of parliamentary seats and strength of internal mechanisms could be used as a measure to provide state funding in lieu of the number of registered members.

The organisations further contended that the bill on peaceful assembly posed “serious challenges to the whole democratic system.”

The bill could restrict the constitutional right to freedom of assembly (article 32), freedom of expression (article 27) and press freedom (article 28), it added.

As article four of the constitution states that “all the powers of the state of the Maldives are derived from, and remains with, the citizens,” both NGOs warned that narrowing the fundamental rights guaranteed by the second chapter of the constitution would “facilitate taking away from the public the powers that remain with them.”

The legislation on freedom of assembly was passed on December 25 with 44 votes in favour and 30 against.

MPs of the formerly ruling Maldivian Democratic Party voted against the bill, which would outlaw demonstrations outside designated areas and require accreditation for media to cover protests.

Parliamentary privileges

Transparency Maldives and Maldivian Democracy Network also expressed concern with the controversial parliamentary privileges bill passed last month.

The bill was submitted in late 2010 and became the subject of controversy and public outrage. In January 2011, a group of “concerned citizens” demonstrated and petitioned then-President Mohamed Nasheed urging him to veto the legislation.

The bill was passed on December 27, 2012 with Speaker Abdulla Shahid casting the tie-breaking vote.

The vote was tied 31-31 with three abstentions. Most MPs of the opposition MDP voted against it and later raised concerns with some of the clauses.

In its statement, the NGOs insisted that the parliamentary privileges bill should have been “based on the concept of privileges stated in article 90 of the constitution” to uphold the “integrity of the institution” and ensure that MPs could fulfil their duties “free of undue influence”.

Article 90(a) states, “No member or other person shall be liable to any proceedings in any court, and no person shall be subject to any inquiry, arrest, detention or prosecution, with respect to anything said in, produced before, or submitted to the People’s Majlis or any of its committees, or with respect to any vote given if the same is not contrary to any tenet of Islam.”

Moreover, article 90(b) states, “No person or newspaper or journal shall be liable in respect of any report or proceedings made or published under the authority of the People’s Majlis, or in respect of any fair and accurate report of the proceedings of the People’s Majlis or any of its committees, where this is done in accordance with principles specified by the People’s Majlis.”

The NGOs contended that the parliamentary privileges bill violated the spirit of article 90 of the constitution and contained “inappropriate financial and other benefits” for MPs.

The NGOs concluded their statement by calling on parliament to review the bills passed during the third session of 2012.

The statement urged MPs to consider the constitution and human rights as well as “international general principles and measures” in its review of the approved legislation.

Beyond privileges

In a video message posted on his personal blog yesterday (January 1), Independent MP for Kulhudhufushi South Mohamed ‘Kutti’ Nasheed explained that the “main reason” he voted against the privileges bill was because it “contained a number of clauses outside the meaning of privileges.”

Parliamentary privileges should be construed as eliminating obstacles to fulfilling MPs’ legal responsibility, Nasheed said.

Former Information and Legal Reform Minister Nasheed objected to clauses in the bill specifying financial benefits for MPs as well as jail terms for persons found guilty of violating  MPs’ privileges.

“In my view, when we are implementing these things for the first time, we could settle for fines instead of big criminal punishments,” he said.

Nasheed also disagreed with a clause that allows convicted MPs serving a jail term or sentence of less than 12 months to participate in parliamentary proceedings. MPs convicted to longer than a year would lose their seats.

The bill also stipulates that MPs who serve one five-year term would receive 30 percent of their pay as a retirement pension upon reaching 55 years of age and 45 percent as a pension if they serve two five-year terms.

Nasheed noted that seven percent of an MP’s salary was contributed to the pension fund under the existing pension law, which the bill did not address.

Moreover, Nasheed contended that the bill conflicted with a number of provisions in the parliamentary rules of procedure or standing orders.

Among other issues he raised, Nasheed noted that punishments for offences specified in the bill contravened punishments in existing laws and that the parliamentary secretary-general was to receive “the security offered to the Speaker of Parliament, a state car and a diplomatic passport.”

Nasheed also observed that the legislation did not settle the question of whether MPs could refer to ongoing court cases during parliamentary debates.

While the bill states that official secrets must not be disclosed, Nasheed said it did not specify a penalty for the offence.

Nasheed also expressed concern with the absence of ethical guidelines or rules for MPs in exercising powers to demand and receive any information – “for example, a person’s bank account, information regarding his health, information on loans he has taken.”

According to the privileges legislation, persons who refuse to comply with such demands for information, documents or records would face penalties or punishments specified in the bill.

As both the executive and judiciary would have special privileges as well, Nasheed suggested that such a bill should “balance the scale” between the three powers of state.

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President’s special advisor may seek invalidation of political parties bill

Special Advisor to President Dr Mohamed Waheed Hassan Manik and Leader of government-aligned Dhivehi Qaumee Party (DQP) Dr Hassan Saeed has warned that he would seek to invalidate the recently approved political parties bill if it is ratified.

Dr Saeed told local media that the bill infringed rights enshrined in the constitution and that he would file a case at the Supreme Court requesting the law be struck down.

The DQP, according to latest statistics by the Elections Commission, has a membership of just 2,099. Dr Saeed told local newspaper Haveeru that he opposed changes in the bill requiring any political party to have a minimum of 10,000 members.

Dr Saeed argued that requiring a specific number of members to register a political party violated the constitutional right to form political parties.

“While it is a constitutional right for anybody to form political parties, I do also believe that a right could be limited through legislation. But such a limit should be placed in accordance to principles justified in other free and democratic societies. The current bill demanding a certain membership size in order for a political party to be registered is a big problem,” he told Haveeru.

Article 30(a) of the constitution states: “Every citizen has the right to establish and to participate in the activities of political parties.”

Dr Saeed publicly urged President Waheed not to ratify the bill.  He added that any decision by President Waheed was expected to be made after consultations with the Attorney General.

Dr Saeed was not responding to calls at time of press.

Speaking to Minivan News, Ibrahim ‘Ibra’ Ismail, Chairman of the drafting committee of the Constitutional Assembly that passed the current constitution, echoed similar sentiments towards the bill.

“The bill clearly violates three to four key fundamental constitutional rights, including that of freedom of association, right to acquire and sell property. In short, I see this as a very undemocratic bill,” he said.

Ibra also added that in other democratic societies, political parties were not so strictly regulated, instead being given greater flexibility.

“When major political power brokers decide to regulate political parties, it is highly unlikely it would be carried out in a fair and just way. I believe even two people can go to the Elections Commission and register a party. People would start supporting them based on their success,” he added.

The landmark bill

The bill in concern was proposed on behalf of the government during former President Mohamed Nasheed’s administration. It was submitted by Maldivian Democratic Party (MDP) MP Ahmed Abdulla in April 2011.

The bill received strong bipartisan support and was passed with 64 votes in favor while only four MPs voted against it.

If ratified and signed into law, the bill will provide a three month period for any political party with fewer than 10,000 members to reach the required amount or face being dissolved.

Of the 16 parties currently in existence, only four have more than 10,000 registered members, including the opposition MDP as well as the government-aligned Dhivehi Rayyithunge Party (DRP), Progressive Party of Maldives (PPM) and Jumhooree Party (JP).

The religious conservative Adhaalath Party (AP) has 5,708 members, down from over 6,000 in February this year while President Dr Mohamed Waheed Hassan Manik’s Gaumee Ihthihaad Party (GIP) has 3,427 members.

The bill had been severely criticised over the last week by smaller parties including the Adhaalath Party, which claimed that the bill was designed to “eradicate” Islamic ideology from the country.

“The bill is practical”

However, opposition MDP MP Hamid Ghafoor has dismissed accusations that the bill was unconstitutional, claiming it was not the first piece of legislation passed by the Majlis perceived to limit a constitutional right.

“The freedom of expression bill was passed too, which placed limitations on the constitutional right of freedom of expression. So this is not a new precedent,” he said.

“The bill was passed by a very strong majority. The parliament has political parties of different sizes. So when a parliament consisting of several political parties approves the bill, it is the moral say of all the political parties,” he added.

According to Ghafoor, the passing of the bill could be viewed in one of two ways; either in an idealist view or a practical view. He argued that the bill was practical and intended to end the current “corrupt process” of funding political parties that were not at all active.

“Are we to allow such a corrupt process to go on in the name of democracy?” Ghafoor questioned.

“We are not worried”: President Waheed’s GIP

President Waheed’s GIP has said that they are not worried about the consequences the party may face in failing to gain 10,000 members.

Speaking to local media from Malaysia, GIP Deputy Leader Mohamed ‘Nazaki’ Zaki said that panicking at this point in time may hinder the party in boosting membership numbers.

“To be honest, we do not have any concerns at all. We are confident that we can gain a membership much larger than [10,000 members]. We can achieve that result. We know what percentage of people is currently affiliated with political parties. About 40 to 60 percent people are yet to join political parties,” he was reported as saying.

“Our focus is towards that percentage of people who are currently not affiliated with political parties” he added.

The former High Commissioner to Malaysia said that, based on the support his party received from recent visits to Addu City and several other atolls including Shaviyani Atoll, Laamu Atoll and Raa atoll, he was confident of a successful membership drive.

“Not just large parties, it is equally important to have smaller political parties. Just because two major power brokers decide that the country was better off without smaller political parties does little good to the well being of the country’s democracy,” he said.

“Even in other democratic countries, we do not see a trend to destroy smaller political parties. We as a smaller party have on previous occasions proved that we can bring results, and I don’t see any reason why we can’t do so in the future.”

Zaki claimed that some smaller parties were lobbying President Waheed to not to ratify the bill but maintained that his party is yet to decide on whether to make such a move.

“We have not yet decided on [lobbying President]. But we will hold a council meeting next week. In that meeting we will discuss this issue as wall and after that we would decide on it,” he added.

Political parties were first authorised in the Maldives in May 2005 following an executive decree by then-President Maumoon Abdul Gayoom. Prior to the passage of the landmark legislation, political parties were governed by a regulation.

The regulation required 3,000 members for registration and did not stipulate that parties whose membership falls below the figure would be dissolved. However, no political party has been dissolved over the last eight years.

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Preparations for presidential elections underway: President Waheed

President Dr Mohamed Waheed Hassan Manik has assured the public of a “free and fair” presidential election in 2013 as part of his New Year statement.

Waheed used his address to announce that preparations for the 2013 presidential elections were already underway and that the government intended to take “all necessary measures” to ensure a fair election.

Following political tension in the nation following the controversial transfer of power on February 7, 2012, President Waheed said it would be vital in the build up to this year’s election for society to put aside its differences.

“As we prepare for the upcoming elections, I urge the people to strengthen the harmony and unity that have existed in the Maldivian society over the years, and not to allow anyone to disrupt this social harmony,” he said.

“The year 2012 saw major challenges, especially in the political challenges, in the country. It was, however, a year in which steps were taken with patience to maintain the security, safety and harmony of the country and its people,” he said.

The President assured the public that the government intended to improve both the general welfare and security of the people within the capacity of the budget passed by the People’s Majlis on December 27.

“The government will continue to create a safe society with reduced crimes. I call upon the people of the Maldives to put national interest ahead of their political interests,” Waheed added.

President Waheed’s government was brought to power on February 7 last year following a controversial transfer of power later deemed legitimate by a Commonwealth-backed Commission of National Inquiry (CNI).

However, Dr Waheed’s predecessor, former President Mohamed Nasheed, has questioned the CNI’s findings, alleging that he was forced to resign from office under “duress”.

Concerns about the CNI’s conclusions were also raised last month by former Human Rights Minister Fathimath Dhiyana Saeed after she was dismissed by the present government back in November.

“Stolen democracy”

In his own New Year statement, former President Nasheed claimed that democracy had been “stolen” from the public by individuals looking to “further their narrow political ambitions”.

“We have seen a worrying return of police brutality and state-sanctioned violence and intimidation. With this we saw an increase in violent crimes including the tragic murder of Member of Parliament and Islamic scholar Dr Afrasheem Ali, fatal attacks on a journalist and members of public of whom some are children,” Nasheed alleged.

The former President claimed the country had been reported in the world’s newspapers for “all the wrong reasons” and that the Maldives is no longer the “successful Muslim democracy” it once was.

“Instead, the media has been full of stories about human rights abuses, coup d’etat and the government’s disastrous foreign policy decisions that forced out the largest foreign direct investor in the Maldives,” Nasheed added.

“I hope that this year, we will see a genuinely free and fair election, in which everyone is allowed to compete.”

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