Tag: abdulla jabir

Laamu Gan Asseyri project to proceed: Tourism Minister

The government has apologised for miscommunications which led to the “unfortunate” media coverage of a contract between the Ministry of Tourism and J Hotels and Resorts for a mid-market tourism center at Laamu Gan Asseyri Project, Tourism Minister Mariyam Zulfa has said.

“The Cabinet did not decide to cancel the contract, if you read the government gazette closely it just put the project on hold for some time. The intention was never to withdraw the agreement,” she explained.

Minivan News recently reported along with local media that the Cabinet had terminated its contract with J Hotels and Resorts and would solicit further bids for the project. Company chairman and former MP Abdulla Jabir issued emphatic warnings that he would sue the government.

Jabir today said he has been informed by the Minister that the Cabinet would approve the project.

“So far I’ve been advised that it will go forward, so we’ll see how things go. I don’t know what the Cabinet will do, one day they make a decision the other day they change it, but in time we will see how it proceeds,” he said.

Jabir reiterated that the Minister had assured him that the project would go forward, and that he had no bad relations with any ministry.

Speaking with Minivan News yesterday Zulfa said, “J Hotel and the Tourism Ministry were and are keen to get the project going, especially since the President has said that the mid-market project is a priority to the government and that it will make sure that project gets done.”

Given the project’s value, Zulfa said the Cabinet wanted to ensure that everything was in line with the government’s vision before proceeding with the agreement. She believed the Cabinet had not been provided with sufficient information to make an informed decision on the matter.

Zulfa said she has now presented all the relevant information to the Cabinet, and the project will move forward.

“The government enjoys a good relation with the development party, and we regret the unfortunate turn of events that led to this misunderstanding,” she said.

The Asseyri project, launched in March, aims to bring two 300-bed hotels and 69 guest houses to the 25 hectare area along with recreation activities, water sports and restaurants.

“Right now we can’t cater to the mid-market tourists who want to have options when they make a trip to or within the Maldives. This will give them that opportunity. And the basis of the project will be the natural beauty–the beach, lagoon and reef are absolutely fantastic,” said Zulfa.

She added that the mid-market project is designed in and around the airport development project, and will offer job opportunities and economic growth.

Moving away from the existing one island, one hotel tourism product, the Asseyri (beachside) project intends to rent out commercial components of an area to different parties, allowing larger numbers of local entrepreneurs to participate in the Maldives’ lucrative tourism sector.

In July, Addu City Council announced its intention to incorporate the project’s core values and aspects into Addu City’s development plan.

The two areas ear-marked for the project are the Maafishi Area of Hulhumeedhoo Island and the start of the Hankede area, Hithadhoo.

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J Hotels and Resorts to sue government

J Hotels and Resorts intends to sue the government “at length” over the Cabinet’s decision to terminate the contract for Laamu Gan Asseyri Project, which was awarded in October.

Company chairman and former ruling party MP Abdulla Jabir said no explanation for the termination was given, and claimed it was not the first time that the Cabinet had retracted a decision.  He said he had “strong suspicions” of corrupt dealings.

“There are ruling party members who decided that they want the project, so they forced the President to terminate my contract through the Cabinet. The Cabinet is unfit to operate, it is just playing games on its high chair in the Maldives,” Jabir said.

The project was won via bidding and awarded on October 12 of this year. It includes a 50-year lease of 25 hectares for the development of hotels and 79 guest houses containing a total of 1,500 beds. Restaurants, spas and sports facilities were also included in the project plan.

Originally, a joint venture company was to be created with the government, which would earn a five percent share, and J Hotels and Resorts. State Minister for Tourism Thoyyib Mohamed was previously reported saying the government preferred a private party to develop and manage the whole project, but the ministry had a ‘Plan B’ to lease out separate components of the project to different parties.

According to the government gazette the Cabinet decided to terminate the contract on November 29, and has lately decided to re-open the bidding process.

Minister of Tourism Mariyam Zulfa was unavailable for comment, however Permanent Secretary Ahmed Solih said the ministry had sent its reply to J Hotels and emphasised that the issue now lies between the Ministry and the company.

Jabir warned that the Cabinet’s decision was one of several factors that was causing a dip in investor confidence.

“These are expensive games, for the investors and for the Maldivian people,” he said. “The government is losing credibility doing this. I am disappointed that the Maldivian government is dishonoring its agreement.”

According to Jabir, the contract between J Hotels and the Ministry of Tourism was valid under Maldivian contract law.

“We have incurred losses of income and opportunity, and our lawyer is assessing those losses now,” Jabir said, reiterating that the company plans to sue the government.

He further claims that a contract cannot be terminated unilaterally, as the Cabinet has done, and that the government cannot accept bids for a project which is the active subject of a lawsuit.

Jabir was unable to provide further details regarding losses incurred.

Last week, the Cabinet instructed the Attorney General’s Office to monitor allegations of corruption made against the government, and file defamation lawsuits where such allegations were proven unfounded.

The Cabinet’s request follows growing concern that some such allegations are being made for political purposes. Meanwhile, the acrobatics of local politics could have a detrimental effect on foreign investment.

At the same time, the government has been tasked with improving its latest ratings in Transparency International’s 2011 Corruption Perception Index (CPI), which were less than favorable.

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Dhiyana Saeed nominated for next SAARC Secretary General

Former Attorney General, Dhiyana Saeed, is the presidential nominee for the next Secretary General to represent the Maldives in the South Asian Association for Regional Cooperation (SAARC), reports Miadhu.

Dhiyana was appointed AG by President Nasheed in November 2008 and later dismissed in May 2009, before the new Parliament was sworn in.

Dhiyana is married to local businessman Abdulla Jabir, who recently joined the Maldivian Democratic Party (MDP) and has been linked to a corruption case involving the State Trading Organisation (STO) and People’s Alliance (PA) leader, Abdulla Yameen.

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Presidential commission sends corruption case against Yameen to police

A case concerning the People’s Alliance (PA) leader Abdulla Yameen has been forwarded to the police by the Presidential Commission.

The investigation concerns corruption allegations against Yameen during his time as chairman of the State Trading Organisation (STO). It involves a Rf16.7 million loan from the STO to buy a resort, which was allegedly given to local businessman Abdulla Jabir by Yameen.

The transaction was found to be in violation of corporate principles and was red-flagged in last year’s STO audit report.

Spokesperson for the Presidential Commission, Abdulla Haseen, confirmed they have “finished the report and we have submitted it to police.”

Haseen said the loan was “against corporate governance” and claimed it had been connected to corruption.

“During 2001 the loan was given to the business partner of the STO chairman at the time,” Haseen said, though he would not confirm “who that business partner was.”

He said the commission hopes the case will be forwarded to the Prosecutor General, although it might take a few weeks.

Police Sub-Inspector Ahmed Shiyam confirmed police had received “a new case from the Presidential Commission related to the STO,” but could not give any more details.

Maldivian Democratic Party (MDP) spokesperson Ahmed Haleem confirmed Jabir had recently signed up as a member of the MDP and said the party will benefit from having him as a member “as he is an experienced politician, former MP and spoke out for the change to democracy.”

He noted the MDP was not concerned about Jabir’s suspected involvement in the case, claiming “MDP is not like that, we are very straight-forward.”

He said if someone is accused of corruption, the party would want the Presidential Commission to look into the case.

Former member of the Presidential Commission, Idham Muizzu Adnan, who recently resigned over “political influences”, said he could not discuss details of his work at the commission and could not comment on the case as he had signed a non-disclosure agreement on his departure.

Yameen did not respond to Minivan News by time of press.

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