Tag: acc

No corruption in GMR airport deal, concludes ACC

The Anti-Corruption Commission (ACC) has ruled out corruption in the awarding of a concession agreement in June 2010 to a consortium of Indian infrastructure giant GMR and Malaysia Airports Holdings Berhard (MAHB) to develop and manage the Ibrahim Nasir International Airport (INIA).

In a 61-page investigative report (Dhivehi) made public yesterday (June 17), the ACC concluded that the bidding process was conducted fairly by the World Bank’s International Finance Corporation (IFC) and that the GMR-MAHB consortium won the contract by proposing the highest net present value of the concession fee.

The ACC further concluded that the awarding of the contract did not contravene amendments brought to the Public Finance Act requiring parliamentary approval for such agreements.

The amendments were published in the government gazette after the concession agreement was signed, the ACC noted.

The concession agreement was signed on June 28, 2010, while the amendments were gazetted on December 13, 2010, following a Supreme Court ruling. The amendments were voted through for a second time in August 2010 following a presidential veto.

On the previous administration’s decision to replace the board of directors at the 100 percent government-owned Maldives Airports Company Ltd (MACL) – after they refused to sign the concession agreement claiming insufficient information – the ACC observed that there was “no legal obstacle” for the move.

The ACC report also concluded that the government would benefit more from privatising the airport.

“Considering the situation (2008, 2009 and 2010) when the decision was made to privatise the Male’ International Airport,” the ACC’s calculations showed that MACL would make a profit of about US$254 million in 25 years if the airport was operated by the government-owned company.

Conversely, the government would receive about US$534 million in the same period from the GMR consortium if the airport was privatised, the ACC found.

The privatisation of the airport by the ousted Maldivian Democratic Party (MDP) government in June 2010 was strongly condemned by opposition parties on nationalistic grounds.

The Dhivehi Rayyithunge Party (DRP), Peoples Alliance (PA), Dhivehi Qaumee Party (DQP) and Jumhooree Party (JP) signed an agreement to work against the privatisation process and launched a media offensive alleging “massive corruption” in the awarding of the contract.

The ACC report this week meanwhile followed a special audit conducted by the Auditor General’s Office with the assistance of a British consultant concerning the airport privatisation deal.

The AG’s report stated that evidence to back allegations of “improper interference” during the technical bidding process “is not conclusive on this point” and deferred the matter to the ACC.

The AG’s report also noted that the IFC’s terms of reference involved “securing the best deal for the government in terms of the concession fee paid to the government and MACL, and did not consider impacts on the Maldivian economy.”

Government stance

In November 2012, the current government – made up of a coalition of parties opposed to the MDP government’s privatisation policy – declared the concession agreement with the GMR-led consortium “void ab initio” (invalid from the outset) and abruptly terminated the contract.

In April this year, the Attorney General’s Office confirmed that arbitration proceedings resulting from the contract cancellation would begin by mid-2014.

Responding to the ACC’s findings yesterday, the government insisted that the report would have no impact on its legal position to declare the GMR concession agreement void, contending that President Dr Mohamed Waheed’s decision had nothing to do with corruption allegations levelled by “some people”.

President’s Office Media Secretary Masood Imad told Minivan News that the contract was declared void from the beginning due to the negative impact on state finances in 2012.

“Back before the government took back control of the airport from GMR, the reason we gave was that the deal was bleeding the country’s economy. We were paying GMR to keep them here,” he explained.

Masood said that despite “speculation from some people” concerning corruption by the former administration in signing the deal, the present government was not responsible for filing a case with the ACC.

He added that the government’s concerns over the deal had been in relation to the imposition of a US$25 Airport Development Charge (ADC) by GMR that was blocked by the Civil Court in 2011 after the then-opposition DQP filed a case on the matter.

The DQP, now part of President Waheed’s coalition government, attempted to block payment of the charge on the grounds that it was effectively a tax not approved by parliament.

In response, the MDP government agreed to deduct the ADC from the concession fees payable, while GMR later offered to exempt Maldives nationals from paying the ADC as it moved to appeal the verdict.

However, former President Mohamed Nasheed resigned under controversial circumstances on February 7, 2012 amidst a violent mutiny by elements of the police and military before the Civil Court verdict was appealed at the High Court.

Consequently, in the first quarter of 2012, Dr Waheed’s government received US$525,355 of an expected US$8.7 million, after the deduction of the ADC. That was followed by a US$1.5 million bill for the second quarter, after the ADC payable eclipsed the revenue due the government.

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Maldives bows out of Twenty20 elite cup tournament after successive defeats

The Maldives has suffered successive defeats by Hong Kong and Malaysia in its final two group matches of the Asian Cricket Council (ACC’s) Twenty20 elite cup tournament presently being held in Nepal.

The Maldives squad was defeated by top of the table Hong Kong by 153 runs on Friday (March 29) , before recording an eight wicket loss to Malaysia with 52 balls remaining on March 31, according to ESPN.

With the group matches now over, the Maldives has found itself in second to last place in the Group A table with just two points after defeating last place Singapore on Wednesday (March 27) – its only victory of the current campaign.

After finishing in the top two places in the Group A and Group B tables, Hong Kong will today face Afghanistan, while host nation Nepal will play the United Arab Emirates in the tournament’s semi-finals.

The two finalists – who both secure one of two spots available at the World Twenty20 Qualifier tournament to be held in the UAE in November – will then meet tomorrow at Tribhuvan in the championship decider.

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Maldives overcome Singapore in second ACC Twenty20 tournament match

The Maldives has bounced back from defeat in its opening match of the Asian Cricket Council (ACC’s) Twenty20 elite cup tournament in Nepal with a five wicket victory over Singapore yesterday (March 27).

Having previously been defeated by host nation Nepal by 76 runs on Tuesday (March 26), the Maldives secured a narrow victory over Singapore during its second match of the tournament, held at the cricket ground at Pulchowk’s Institute of Engineering, the Himalayan Times publication has reported.

According to the ACC, the Maldives will now face Hong Kong on Friday (March 29), before playing its final Group A fixture against Malaysia on Sunday (March 31).

The Maldives squad is competing in the group for one of two spots available at the World Twenty20 Qualifier tournament to be held in the UAE in November.

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President wanted “credit” for Maamigili Airport lease extension: former transport minister

Former Minister of Transport Dr Ahmed Shamheed has criticised his removal from cabinet last year following the decision to extend the lease of Maamigili Airport by 99 years.

Shamheed has claimed that he was dismissed by President Dr Mohamed Waheed Hassan Manik following the approval of the airport lease extension because the president wanted to take credit for the decision.  The lease was given at the time to the Chairman of Villa Group, Gasim Ibrahim.

Last month, the Anti-Corruption Commission (ACC) began an investigation into the 99-year lease of the airport. According to the ACC President, Hassan Luthfee, the investigation is still ongoing.

Despite the investigation, President Waheed inaugurated Maamigili Airport last week (February 28).

Shamheed claimed that the decision to extend the airport lease had been made whilst former President Mohamed Nasheed had been in power, and that the decision was not one he had made on his own.

“It was the economic committee who had decided on the lease, I never decided on my own. It was initiated by the committee actually, that is how it started,” Shamheed alleged to Minivan News.

“It do not think it was the 99-year lease that was the problem, I heard from people close to him that he thought he should be the one making the decision. He thought he should take the credit for that.”

Shamheed was nominated to his former ministerial post by the government-aligned Jumhooree Party (JP) – of which Gasim is the party’s president.

Speaking back in November 2012, the former transport minister told local media that the documents to extend the airport lease for 99 years had been sent to the transport ministry by Nasheed’s government.

“The current government delayed the matter. The president government only endorsed the decision. It was decided by the NPC [National Planning Council] during the former government,” he was quoted as saying in local newspaper Haveeru.

President Waheed inaugurated Villa International Airport in Maamigili Island in south Ari Atoll on February 28.

Speaking at the ceremony, Waheed thanked Chairman of Villa Group, Gasim Ibrahim, before stating that he was greatly honoured to inaugurate the airport.

The main objective of making the airport an international airport was to improve the country’s transport system and the tourism industry, Waheed said during the ceremony.

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Police and ACC probe MP Ali Waheed’s corruption case

The Maldives Police Service has said it is looking into a corruption case involving Deputy Parliamentary Group Leader of the opposition Maldivian Democratic Party (MDP) Ali Waheed, in collaboration with the Anti Corruption Commission (ACC).

Speaking to Minivan News, Police Spokesperson Sub-Inspector Hassan Haneef confirmed that police had received the case. He declined to provide any details regarding the case.

Local newspaper Haveeru reported that the case involved Ali Waheed’s mother purchasing land in Male’ during October 2011. Haveeru alleged the net total of the sale stood at MVR 7.938 million (US$514,000), and suggested Waheed’s involvement in the transaction. However, it reported that the extent of Waheed’s involvement remained “unclear”.

Ali Waheed’s mother Zuhuraa had at the time claimed the money for the sale came from her husband’s savings, but some local media outlets have reported that the sale was funded by the construction giant TAP Construction Private limited.

Speaking to Minivan News, President of the ACC Hassan Luthfee also confirmed that the institution was investigating a case concerning the Thoddoo MP.

“We have earlier received complaints regarding the MP taking bribes following his defection from Dhivehi Rayyithunge Party (DRP) to the MDP. There were also claims that he had utilised the money he received as bribes to buy a house. We are investigating the matter,” Luthfee said.

The ACC President added that the ACC had occasionally requested technical assistance from police in investigating corruption cases and that this case was no different.

In May 2011, Ali Waheed switched sides from DRP to MDP claiming a lack of internal democracy within his former party. Following the defection, several then opposition parliamentarians alleged that Waheed had sold himself to the then ruling MDP and former President Nasheed. Waheed dismissed the allegations.

A few days later, the media reported Waheed’s bid to purchase land in Hulhumale’.

Following the coverage, Waheed alleged that local journalists had politicised a private real estate dealing, in which he had won a bid for a beach house in Hulhumale’ and paid an upfront sum of MVR 1 million.

Waheed won the  beachfront house for Rf4.6 million (US$300,000), bidding MVR 3020 (US$195) per square foot. His wife also reportedly won a house.

“The house will become my property only after I finish the rest of the payment within five years,” Waheed said in a press statement released at the time. “However, the story of this business transaction was spun in the media, with [outlets] writing ‘Ali Waheed and his wife have bought two houses in Hulhumale’ for Rf 9.4 million’ (US$600,000)’ in their headlines.’’

In a press statement on Wednesday, Ali Waheed alleged the case was a politically motivated attempt to intimidate him after Parliament’s Executive Oversight Committee (EOC) – on which Waheed sits as the chair – alleged flaws within the report by the Commission of National Inquiry (CNI) concerning the February 2012 transfer of power.

The CNI report in August 2012 concluded that the transfer of power that took place was not a coup as alleged by the MDP, and insisted that the new government was legitimate. However, the parliamentary select committee has claimed the report was “flawed” and missed out key information.

“I have been receiving threats from the government who have said that I and my family will be arrested if I do not resign from the MDP and as the chairman of the EOC. The threats were repeated after parliament Speaker Abdulla Shahid’s brother was arrested,” read Waheed’s statement.

On February 7, the brother of Speaker Shahid, Mohamed Shahid, and former Controller of Immigration Abdulla Shahid and three others, were arrested in connection with an alleged fraud case concerning the Disaster Management Centre, worth MVR 24 million (US$1.57 million).

Following the arrest Speaker Shahid tweeted that the police officers who went to arrest his brother violated the sanctity of his house and entered his parent’s bedroom.

‘’I strongly condemn the violation of the sanctity of my residence and my parent’s bedroom by Maldives Police SO (Special Operations) today,’’ Shahid tweeted on Thursday.

Waheed further claimed that he had nothing to hide from the authorities and added that neither the ACC nor the police had asked him to come in for questioning, which he claimed “proved that there were no discrepancies”.

However, ACC President Luthfee said that Waheed would be called in for questioning when “the time comes”.

“The government cannot manipulate me. I have the remote that controls me, not them,” said Waheed, concluding his statement.

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Health Ministry hand over MVR 68 million to complete new IGMH building

A MVR 68 million (US$4.4 million) project has been handed over to AMIN Construction in order to complete the new 11-storey building of the Indira Gandhi Memorial Hospital (IGMH).

Local media reported that an agreement was signed at a ceremony held at the Ministry of Health by Health Minister Dr Ahmed Jamsheed and Managing Director of AMIN Construction Abdullah Mohamed.

Earlier this month the Anti-Corruption Commission (ACC) had ordered a temporary halt to the construction of the building in order to investigate a matter regarding the project handover to AMIN Construction.

Dr Jamsheed told reporters at the ceremony yesterday (February 18) that construction of the building had been halted for various reasons, and that funds had been obtained to complete the project prior to the handover.

“The project was commenced to build private rooms to solve the problem of lack of space at IGMH. We have made major changes to the project. By the time the changes were made, the main concrete and construction work had been completed,” Jamsheed was quoted as saying in Sun Online.

The money for the project, according to local media, had been obtained as a loan from the Islamic Bank.

President of the ACC Hassan Luthfy said a complaint had prompted the commission to investigate the project handover over claims that the handover was made at an excessive cost.

“We received a complaint that the project was handed over a second time with an increase in cost. The commission is currently summoning and questioning the relevant parties,” he said earlier this month.

Investigations into the handover have now been concluded according to the ACC president.

MD of Amin Construction Abdullah Mohamed however, told local media that work had been halted due to payments owed to the company. Mohamed was quoted as saying that construction on the building will commence tomorrow.

The building was commissioned by the government to alleviate space constraints in the hospital, which was gifted to the Maldives by the Indian government.

Last month IGMH struggled to deal with the influx of patients prompting concerns as to whether the hospital was large enough to cope with the demand for medical care in Male’.

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ACC temporarily halts construction of new IGMH building

The Anti-Corruption Commission (ACC) has ordered a temporary halt to the construction of 10-story building to be utilised by Indira Gandhi Memorial Hospital (IGMH).

Local media reported that the ACC are currently investigating a matter concerning the project’s handover to AMIN Construction at an excessive cost.

President of the ACC Hassan Luthfy said a complaint had prompted investigations into the matter, adding that construction on the project will be resumed once the commission had finished its investigation.

“We received a complaint that the project was handed over a second time with an increase in cost. The commission is currently summoning and questioning the relevant parties,” he said.

“We are investigating how it has happened and the reason for an increase in the cost. We will make a decision regarding the issue very soon,” Luthfy said.

The building was commissioned by the government to alleviate space constraints in the hospital, which was gifted to the Maldives by the Indian government.

Last month IGMH struggled to deal with the influx of patients prompting concerns as to whether the hospital was large enough to cope with the demand for medical care in Male’.

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Civil Court rules no need for ACC apology to Nexbis

A ruling passed by Civil Court has stated there is no need to order the Anti-Corruption Commission (ACC) to apologise to Nexbis.

The Malaysia-based mobile security provider claimed that ACC had publicly made defamatory statements regarding the agreement between the company and the immigration department, local media reported.

The case brought forward by Nexbis asked to determine whether statements made by ACC in the media were against the constitution and laws of the state.

Nexbis had also asked for an order to be issued upon ACC to refrain from making statements regarding the agreement until all court cases are settled and to publicly apologise for their actions.

Civil Court ruled it was not proven to the court that the ACC had acted outside the boundaries of the constitution or any laws of the state, local media reported.

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India and US were never going to donate border control system: Immigration Controller

Controller of Immigration Dr Mohamed Ali has dismissed claims that India and the US had proposed to donate a border control system to the Maldives.

According to local media, the Anti-Corruption Commission (ACC) had previously stated that India and the US had proposed to set up a border control system free of charge.

The current border control system project contract has been awarded to the Malaysian company Nexbis for a period of 22 years by the previous government, however last month parliament voted unanimously to terminate the agreement over allegations of “foul play”.

Speaking on Television Maldives (TVM), Ali said the Foreign Ministry had confirmed that neither America nor India had proposed to donate the border control system.

“No country has proposed such a system free of charge. I have written to the Foreign Ministry last week and have got it in writing. They said that no country has made such an offer,” Ali was quoted as saying in Sun Online.

According to Ali, the Maldives is currently using US$2.3 million worth of passport reading machines installed in 2003. However the machines are incapable of reading the required software, so Nexbis had won a bid to upgrade the current system.

“The meaning of border control is that, when a foreigner enters the country, we are able know his whereabouts, know when he checks out of one hotel and checks into another, and know how long the person has stayed so that all this will be notified to MIRA, and whatever taxes the person owes can be duly collected.

“For the construction worker, we need to know who brought him into the country, and the site where he is currently working. [The system] has to provide all this,” Sun Online quoted Ali as saying.

Last week the Ministry of Foreign Affairs stalled the handover of 8000 passports to their respective High Commissions claiming that details regarding the owners’ whereabouts still needed to be obtained by immigration authorities.

State Foreign Minister Hassan Saeed said the Foreign Ministry would only deliver the passports to the respective consular authorities once immigration clarified the location of the owners, a task described as “huge” and “difficult” by Immigration Controller Dr Mohamed Ali.

In December last year, parliament voted unanimously to instruct the government to terminate the border control project agreement with Nexbis.

All 74 MPs in attendance voted in favour of the Finance Committee recommendation following a probe into the potential financial burden placed on the state as a result of the deal.

Presenting the Finance Committee report to the floor, Committee Chair MP Ahmed Nazim explained that the “main problem” flagged by the ACC was that the tender had not been made in accordance with the documents from the National Planning Council that authorised the project.

The documents were changed to favour the chosen party and facilitate the deal, Nazim said, which the ACC considered an act of corruption.

Nexbis is “systematically denying” any allegations of corruption, according to a company source, adding that if there was any foul play within the contract “we were unaware of it”.

Earlier this month, Vice President for Nexbis Nafies Aziz told Minivan News that “intelligence” received by the company suggested groups backing the country’s lucrative human trafficking industry could be seeking to stymie the introduction of its border control system to undermine national security controls.

Meanwhile, a source with knowledge of the present immigration and border control system said that should parliament’s termination decision be upheld, the Immigration Department would be returning to “a pen and paper system” for monitoring arrivals to the country.

The Ministry of Foreign Affairs inaugurated an initiative targeted at raising awareness of the issue of human trafficking in the Maldives at the beginning of January.

The Maldives has come under strong criticism internationally in recent years for the prevalence of human trafficking, and the country has appeared on the US State Department’s Tier Two Watch List for Human Trafficking three years in a row.

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