Tag: acc

Prosecutor General receives corruption case involving STO Managing Director

The Anti-Corruption Commission (ACC) has forwarded a case to the Prosecutor General (PG) concerning the case of the Managing Director of the State Trading Organisation (STO) Ali Shahid, reports Sun Online.

It is alleged that Shahid used a corporate credit card inappropriately to pay for the medical treatment of a younger sibling.

The commission, it is reported, noted that the misuse occurred before the STO board stated that cards could be used in personal emergencies.

Shahid is alleged to have defended his use of the card under the STO’s loan provisions for medical treatments although the ACC claim he did not request this loan first.

Last month the ACC sent the PG a case concerning former Chairman of STO Farooq Umar after it was alleged he accepted a $19,000 (MVR292,800) from a Sri Lankan company.

Farooq also stands accused of using an STO corporate credit card for personal items.

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Former STO chair’s case passed to PG

The Anti Corruption Commission (ACC) has sent a case concerning former Chairman of State Trading Organisation (STO) Farooq Umar to the Prosecutor General (PG).

The ACC has reportedly said that Farooq accepted a $19,000 (MVR292,800) from a Sri Lankan company.

Farooq also stands accused of using the corporate credit card for personal items, something the STO has said is allowed in emergencies according to its policy. Sun reported that Farooq had told the paper different in a previous interview.

Farooq was removed from his post when President Dr. Mohamed Waheed Hassan reconstituted the boards of government companies after taking office.

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Attorney General asks for Supreme Court to decide jurisdiction on GMR

The Attorney General Azima Shukoor has said she will ask the Supreme Court to rule on whether the laws of the Maldives can be applied to the government’s agreement with GMR concerning the development of Ibrahim Nasir International Airport (INIA), local media has reported.

Shukoor, who was not responding to calls at the time of press today, said a request was sent following the release of a Supreme Court statement yesterday.

“It is against the International laws and the United Nations Charter that any action that undermines any sovereign right of a sovereign state, it is clear that courts of a sovereign nation has the jurisdiction to look into any matter that takes place within the boundaries of that state as according to the constitution and laws of that state,” read the statement.

“Even though a contract has an arbitration clause giving right to arbitrate in a foreign court does not limit a local courts jurisdiction to look into the formed contract, and it is clear that such limitations are in violation of UN Charters principles of sovereign equality, principle of sovereign non intervention within domestic jurisdiction, principle of self determination rights,” read the statement.

Shukoor told Haveeru that if the case could be dealt with by the Maldivian courts, the process would become much easier.

However, she also expressed her confidence that government would be successful in the arbitration case regarding the Airport Development Charge, which was file by GMR in Singapore.

“We can win the case at the Singapore Arbitration even by biding our time. It is quite certain,” she told Haveeru.

The original agreement, argued Azima, was drafted under UK law although both sides agreed to settle any disputes through third party arbitration.

Arbitration

Third party arbitration is often used in order to gain impartial decisions from international experts whilst avoiding the uncertainties and potential limitations of local courts.

One of the world’s leading arbitration companies, the Singapore International Arbitration Centre (SIAC) gives a number of examples of why Singapore is frequently chosen for international arbitration.

Number one in its list is the country’s strong reputation for neutrality, currently placed fifth in Transparency International’s Corruption Perceptions Index, behind New Zealand, Denmark, Finland and Sweden

The Maldives is currently placed 134th in this list alongside Eritrea, Pakistan, and Sierra Leone.

The Maldives judicial system has also faced issues regarding its political independence since the adoption of the 2008 constitution.

A recent report by the International Federation for Human Rights (FIDH) said that “different sections of the judiciary have failed to become fully independent and still lack adequate expertise.”

“According to testimonies from members of the judiciary met by the FIDH team in Male’, under the successive administrations, no political party has actually ever shown any willingness to establish an independent judiciary since each seems to benefit from the existing system,” said the report.

“Moreover, the judiciary is allegedly under the influence of the business sector. For instance, the member of the JSC appointed by the Majlis is also one of the main business tycoon of the country. His presence in the body overseeing the conduct of judges, as well as the general pressure imposed upon the business sector on the judiciary, has therefore been subjected to controversy,” it concluded.

Both civil society groups as well as the current government have acknowledged the need for stronger independent institutions in the country.

President of the Anti Corruption Commission (ACC) Hassan Luthfee told local media yesterday that one of its three cases regarding the GMR deal was nearing completion.

Luthfee, who has recently questioned the ability of the ACC to fulfil its mandate, told Minivan News last week that a high profile case such as this was not easy for the institution to finish which was likely to result in delays.

“Even an international organization such as the International Finance Corporation (IFC) had provided expertise in this case. So when such an allegation of a major criminal offence has been made we must probe the matter quite extensively. This is by far the most high profile and sensitive case. So we must be certain,” he told Haveeru yesterday.

The IFC was forced to defend itself this week after being described by senior cabinet figures as “irresponsible and negligent” during the INIA bidding process.

Shukoor had said last week that as long as the agreement between GMR and the government is not invalidated, the agreement would be “legally binding” despite a “majority of the people” who wish to “terminate the agreement immediately”.

She also expressed the government’s concern about the effect on investor confidence that may result if the agreement was terminated.

Independent MP Mohamed Nasheed today told local media that, despite indicating its willingness to do so, the Majlis had not at present become a party to the 1958 New York Arbitration Convention which deals with the recognition and enforcement of arbitration awards.

Nasheed argued that the Maldivian constitution requires citizens to act in accordance with international conventions which have been backed by domestic legislation.

He added, however, that the Maldives’ Arbitration Act was still in the committee stage.

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

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CMAG lobbying anticipated to be key focus during Nasheed’s UK visit

Former President Mohamed Nasheed is expected during a visit to the UK this week to lobby the Commonwealth Ministerial Action Group (CMAG) to keep the Maldives on its agenda and assist in enacting reforms to civil society institutions, his party has said.

With Nasheed this week making his first visit to Europe since February’s controversial transfer of power, the Maldivian Democratic Party (MDP) has said it anticipates the former president will lobby during the trip to keep the Maldives on CMAG’s agenda as well as to help set clear targets for a Commonwealth-backed reform agenda.

The MDP has claimed that it is now advocating for an agreement on “structural adjustments” that would help address concerns raised in the Commission of National Inquiry (CNI) report.  The report, released last month, rejected accusations by Nasheed and his supporters that he was forced to resign from office.

The current government has meanwhile said that it would be difficult to look into concerns raised by the CNI concerning the events between February 6 to February 8 this year without potentially implicating Nasheed for his role in the alleged use of “excessive force” by police during his tenure.

The President’s Office also maintained that any reforms to the country’s judiciary or civil society would have to be made through the country’s independent institutions such as the Police Integrity Commission (PIC) and the Judicial Services Commission (JSC)

Nasheed left today for the UK, where he is scheduled to meet senior UK government officials and MPs as well as top Commonwealth’s figures and human rights organisations. He will be joined during the visit by former Foreign Minister Ahmed Naseem and the party’s Deputy Chairperson (Finance) Ahmed Mausoom.

As well as speaking both in London and Scotland on the theme of democracy in the Maldives, the MDP today said it anticipated Nasheed, who is presently chosen to represent the party in the next general election, would also be likely to lobby to keep the Maldives on the agenda of the CMAG.

CMAG had placed Maldives on its formal agenda in February, at the time citing ‘the questions that remain about the precise circumstances of the change of the government, as well as the fragility of the situation in Maldives’ as reasons.

The government has maintained that the CMAG ‘lacked mandate’ to place Maldives on the agenda. Following this there has been multiple instances where the government had expressed disapproval in what it termed ‘interference’ by the Commonwealth.

MDP MP and spokesperson Hamid Abdul Ghafoor said that it was anticipated Nasheed would seek to have GMAG retain the Maldives on its agenda in order to pressure the Waheed administration to meet a number of commitments such as those raised in the CNI’s findings.

“I expect there will be strong lobbying for our position [on CMAG],” he said. We have agreed to go ahead with the CNI recommendations, though with the reservations raised by Ahmed ‘Gahaa’ Saeed.

Saeed was chosen to be Nasheed’s representative on a reformed CNI panel charged with investigating the events surrounding the transfer of power on February 7. However, he resigned the day before the findings were released over concerns at what he claimed was omitted evidence and witness accounts from the final report.

Ghafoor added that with the CNI report suggesting a need for structural adjustment of certain civil society institutions along with the judiciary – a major concern for the Nasheed administration in its last few months – he hoped the Commonwealth would support such reforms.

“Whilst in government, we had previously participated with the International Monetary Fund (IMF) on a voluntary basis whilst in government to undergo structural reform,” he claimed. “It required bitter medicine, such as in the sacking of some civil servants, but it was vital in trying to cut the state debt.”

Ghafoor added that he hoped CMAG could provide similar assistance in setting up a structural adjustment programme that set clear dates by which key reforms in areas like the judiciary or civil society were to be enacted.

“We have agreed to move ahead with the CNI with reservations, but we want to see wrong doings identified in the report being addressed,” he said, pointing to the actions of some police and military figures in the transfer of power.

While the Commonwealth was scheduled to last week rule on whether the Maldives would be removed from the investigative agenda of CMAG, it announced the decision would be delayed until its next meeting on September 28.

The President’s Office at the time expressed confidence that the country would be taken off the agenda at the next meeting, saying that this move had been supported by all but one of those present for the teleconference. Local media have reported that the delayed decision has been a result of a “technical glitch” during a live CMAG webcast, a situation Ghafoor claimed that he had yet to received clarification on.

“I’m not aware of any hitch taking place during the CMAG meeting. What we hope is that they will would keep us on the agenda and back a structural adjustment programme that would call for certain commitments to be met at specific dates,” he claimed.

Parallel to Nasheed’s UK visit, Ghafoor claimed that the MDP’s national council was also engaged in pressuring the party’s parliamentary group to boycott the People’s Majlis once it reconvenes, at least until the party was given guarantees about certain concerns it held about reforms.

“The national council on Thursday decided to try and pressure the parliamentary group to boycott Majlis,” he said. “We are discussing this today as a party. We are clear that we would wish to disengage from the Waheed regime unless our concerns are addressed.”

Responding to the MDP’s comments, President’s Office Media Secretary Masood Imad told Minivan News that in looking to address the concerns raised by the CNI concerning security forces and the country’s judiciary, it would continue to rely on independent institutions in the country.

“I understand that the Police Integrity Commission (PIC) has already looked into some of the matters raised. I don’t know what they are looking at or what stage they have reached right now. Similarly, President Dr Waheed has also promised to refrain from interfering with the judiciary here, even when he has not been made aware of what is going on,” he said.

Masood stressed that the government would not however be able to set up any additional commission or mechanism to oversee reforms.

“Independent institutions can come in and oversee this. We would encourage them to do this and will not interfere with their work,” he said.

However, in terms of addressing the CNI’s concerns about the transfer of power, Masood also claimed that Nasheed himself faced possible criminal action for the events occurring on February 6 and February 7 before his resignation.

“During the events of February 6 to February 8, I wouldn’t say that Nasheed was in power, but he was in office, resulting in excessive force being used by police up to his resignation,” he said.

Masood said that President Waheed has accepted that police had used “excessive force” during protests held on February 8 after he came to power and condemned such acts.

“President Waheed has already said he will take action against those with involvement [in the use of excessive force], due process would be taking place through groups like the PIC,” he said.

However, Masood added that any calls from the EU or Commonwealth to investigate the events surrounding the transfer of power would lead to difficulties over the actions of Nasheed in the build up to his resignation.

“Any investigation would have to focus on Nasheed’s role in this, the Commonwealth and EU countries are asking us not to touch him,” he said.  “While the independent institutions can look into this, the EU and Commonwealth will be unhappy if their boy becomes involved in investigations. This will happen as there are many questions [Nasheed] has to answer.”

Nasheed, who is presently set to face trial over his role in the controversial detention this year of Criminal Court Chief Judge Abdulla Mohamed, has alleged that charges against him are politically motivated in order to prevent him from standing as a candidate for the MDP at the next general election.  Nasheed has alleged that Judge Abdulla had been detained over fears he was a threat to national security.

Independent institutions

Despite the government’s decision to rely on the country’s independent institutions to help oversee any reforms or investigations into the CNI’s recommendations, groups such as the Elections Commission have this month found their work under increased scrutiny following the release of the CNI report (CNI).

Prominent members of both the Police Integrity Commission (PIC) and the Anti Corruption Commission (ACC) have this month questioned the ability of their own institutions to fulfil their mandates.

Aiman Rasheed of local NGO Transparency Maldives’ suggested that weak and unassertive institutions must take some of the blame for the events of February 7 and the surrounding political crises.

“The independent institutions need to step up their game by standing for and protecting the values for which they were constituted,” said Aiman at the time.

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Supreme Court precedent in Nexbis case makes ACC meaningless: ACC President

The Supreme Court of the Maldives last Sunday invalidated the a High Court injunction blocking the implementation of a border control system (BCS) in Ibrahim Nasir International Airport by Malaysia-based security solutions firm Nexbis.

The seven member bench of the Supreme Court invalidated the injunction, stating that “the subject of the injunction was not a subject where an injunction can be issued and thereby the bench of the Supreme Court unanimously rule that High Court order is invalid”.

The decisive ruling ends a long-running legal battle involving Department of Immigration, the Anti-Corruption Commission (ACC) and Nexbis. The ACC had alleged there was corruption in the bidding process.

Following the decision, Controller of Immigration Dr Mohamed Ali stated to local media that the system would soon be fully installed.

“A team of Nexbis staff will be coming over by the end of this week. A large portion of the system has already been installed. I hope we would be able to begin using the system very soon,” the controller said.

He reiterated that the immigration department currently uses a very basic application which has many issues and would also expire by the end of the year.

The new system he said would alleviate the existing problem of long queues and other issues, as well as increase the efficiency of the process.

He further said that when they when the system is implemented and begins functioning, biometrics from all departures and arrivals will be recorded. Afterward, “no one will dare to enter the Maldives illegally.”

“No one can stop the project,” he concluded.

State of limbo

Meanwhile, ACC President Hassan Luthfee has expressed concern and frustration over the Supreme Court decision stating that it has put the commission in a state of limbo deprived it of purpose.

“If this institution is simply an investigative body, then there is no purpose for our presence,” he said. “Even the police investigate cases, don’t they? So it is more cost effective for this state to have only the police to investigate cases instead of the ACC,” Luthfee said.

Referring to the ruling, Luthfee said that the ruling meant that the ACC had no power to prevent corruption, even if it was carried out on a large scale.

“In other countries, Anti Corruption Commissions have the powers of investigation, prevention and creating awareness. If an institution responsible for fighting corruption does not have these powers then it is useless,” he said.

Officials investigated were invoking their right to remain silent, Luthfee said, and refusing to take any responsibility.

“When an official chooses to remain silent, what is the purpose of sending such a case to the Prosecutor General? Who will take the responsibility for the damages caused by such actions?” Luthfee questioned.

He added that even if a local island council or a school engages in a activity that involves in corruption, the Supreme Court precedent meant there was nothing that the ACC could do.

“This is just a simple example. To be frank this is the size of the ACC. The Supreme Court should be a court that should assist the independent institutions formed within the constitutional framework of this country,” he added.

Nexbis and ACC at loggerheads

The border control system at Ibrahim Nasir International Airport has been subjected to several allegations of corruption linked to former Controller of Immigration Ilyas Hussain – brother in law of current President Mohamed Waheed Hassan.

Following the presidential elections of 2008, then President Mohamed Nasheed gave Ilyas Hussain the position of Controller of Immigration as a part of coalition agreement with Waheed’s party, at the time Nasheed’s Vice President

However, when the Nexbis case came to light, former President Nasheed removed Ilyas Hussain from the position and put him as the head of the Disaster Management Centre, replacing him with Abdulla Shahid.

Shahid was a vocal opponent of the Nexbis system, alleging that the terms agreed with the company would deprive the Immigration department of significant revenue for comparatively little return.

The former controller at the time expressed concern over both the cost and necessity of the project, calculating that as tourist arrivals continued to grow Nexbis would earn US$200 million in revenue over the project’s 20-year lifespan.

Comparing Nexbis’ earnings to the government’s estimated revenue from the deal of US$10 million, Shahid suggested the government instead maximise its income by operating a system given by a donor country.

“Border control is not something we are unable to comprehend – it is a normal thing all over the world,” Shahid told Minivan News at the time. “There is no stated cost of the equipment Nexbis is installing – we don’t know how much it is costing to install, only how much we have to pay. We need to get everything out in the open.”

Following the controversial transfer of power on February 7, President Waheed returned Ilyas Ibrahim to his former position as the controller of Immigration.

However as the corruption investigation progressed, President Waheed removed Ilyas Hussain from Immigration and installed him as Minister of State for Defence and National Security, Chief of Staff of the President’s Office Dr Mohamed Ali replaced him as Controller of Immigration.

Nexbis and ACC came to loggerheads the day after signing ceremony between Immigration Controller Ilyas Hussein Ibrahim and Nexbis CEO Johan Yong. The ACC opposed and sought and injunction after stating it had received “a serious complaint” regarding the “technical details” of the bid.

In November 2010, nearly a month after the signing of the agreement, shares of Nexbis dropped 6.3 percent on the back of rumours that the project had been suspended.

The speculations lead to Nexbis announcing that it would seek legal redress against parties in the Maldives, claiming that speculation over corruption was “politically motivated” in nature and had “wrought irreparable damage to Nexbis’ reputation and brand name.”

In August 2011 the Malaysian based mobile security system vendor on the local media threatened to take legal action over the stalled border agreement with the government.

In a letter to then Immigration Controller Abdulla Shahid on August 19, Nexbis complained that it had not received a reply from the Immigration Department to its inquiries after the cabinet decided to proceed with the project.

Nexbis stated in its letter that the company had spent “millions of dollars” to purchase equipment and had even paid import duties to the government, noting that the continuing delays were resulting in financial losses.

ACC filed a court case against the Rf500 million (US$39 million) Nexbis system in November 2011, two days after cabinet decided to resume the project.

The ACC in December also forwarded corruption cases against former Immigraiton Controller Ilyas Hussain Ibrahim and Director General of Finance Ministry, Saamee Ageel to the Prosecutor General’s Office (PG), claiming the pair had abused their authority for undue financial gain in awarding the Nexbis project.

On January 2012, the Civil Court ruled that ACC did not have the legal authority to order the Department of Immigration and Emigration to terminate the border control system contracted to Nexbis in November 2010.

Judge Ali Rasheed ruled that the ACC Act clearly allowed the commission to investigate corruption cases, but did not give ACC legal authority to issue an order which can annul a formal agreement signed between one or more parties.

He asserted that it was “unfair” to the contractors if ACC could annul an agreement without the contractors’ say, adding that such a decision violated the protection granted to the contractors under the Maldives Law of Contract.

Nexbis on February 2012, a week after the controversial transfer of power, filed a lawsuit at the Civil Court seeking Rf 669 million (US$43 million) in damages from former Immigration Controller Abdulla Shahid.

According to the lawsuit, Nexbis alleged Shahid refused to proceed with the project despite court approval and spread false information regarding the agreement to the media, tarnishing Nexbis’ global reputation.

Meanwhile, the Immigration department decided to proceed with the stalled border control system.

On April 2012, the ACC appealed the Civil Court’s ruling in the High Court.

The High Court favoured the ACC and issued an injunction, temporarily halting the roll out of the border control system pending the outcome of the ACC’s appeal against a Civil Court ruling that the ACC did not have the authority to halt the project.

Nexbis then filed an appeal at the Supreme Court against the High Court injunction.

The firm had earlier in May stated that despite the legal complications surrounding the deal, the border control project had completed its first phase, with Rf 10 million’s (US$650,000) worth of installation work having been finished.

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MDP MP calls for investigation into allocation of 50 Hulhumale’ flats to MNDF officers

Maldivian Democratic Party (MDP) MP Ibrahim Rasheed has requested the Anti Corruption Commission (ACC) and Human Rights Commission of Maldives (HRCM) investigate the proposed allocation of 50 flats in Hulhumale’ to military officers.

MP Rasheed made the request in a letter forwarded to both commissions, according to an MDP statement.  The request, sent to the two commissions, claims that the allocation of 50 flats to officers in the Maldives National Defense Force (MNDF) is a “clear violation of the people’s rights.”  The allocation is to be taken from 1000 residential properties currently being constructed in Hulhumale’.

Rasheed claimed in his statement that the government has already decided to built flats in certain areas to provide housing for military officers, and therefore “taking away 50 flats belonging to the people” paves way for corruption.

If the government decides to give flats to MNDF today, he warned in future that more flats would have to be awarded to police and customs officers, as well as other independent institutions.

Meanwhile, the statement says that MP Rasheed had described the allocation of the flats as an example of the current government’s use of “undue power and influence” to attack people’s constitutional rights, asking the two commissions to investigate such actions.

He has there requested both commissions to block the allocation of the 50 flats to military officers and return the residences to the people.

Earlier this month, Defence Minister Mohamed Nazim announced that 50 flats on the island of Hulhumale’ will be awarded to military officers alongside financial assistance to help them keep up with payments.

He said that a committee headed by Brigadier General Abdulla Shamal will oversee the awarding of the properties to candidates from a “pre-set criteria” and officers from all ranks are expected to be included in the scheme.  The MNDF has announced it will also provide assistance to officers facing difficulties in meeting the required payments on schedule.

ACC Deputy Chair Muaviz Rasheed today said that he could not confirm if the commission has received the case concerning the military flats, or if an official investigation had started as he was currently on leave.

Rasheed did note that another investigation into the development of a military training facility on Thanburudoo island as a surf resort was currently underway.  He said no decision has yet been taken on the case.

Prior to the announcement on awarding flats to military officers, the news broke about the development of a tourist surf resort on the island of Thanburudoo under the newly established MNDF Welfare Company.

The decision attracted heavy criticisms from the local surf community after the MNDF confirmed that the island was to be awarded to a third party, identified as Singapore-based group Telos Investment, without an open bidding process.

The Maldives Surfing Association (MSA) hit out at the proposed resort development on Thanburudoo – known to be a popular surfing spot – claiming it will substantially reduce local access to an already limited number of high-profile waves in the country.

However, Telos Investment President Dr Gunnar Lee-Miller told Minivan News at the time that it would be issuing a statement soon regarding the project and the potential impacts on national surf development.

“To be sure, there is a robust surf development plan for local surfers and fruitful discussions with Maldivian Surf Association Leaders have already commenced,” Dr Lee-Miller responded by SMS earlier this month. “We care greatly about the development of Maldivian surfers both in Male’ and the outer atolls.”

Minivan News had not yet received a full statement from Telos Investment about their plans.

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Immigration Offices raided by ACC; investigators allege intimidation

The offices of the Department of Immigration and Emigration were raided by Anti-Corruption Commission (ACC) officials with assistance from police after the granting of a court order.

The seeking of a court order followed thwarted efforts by the ACC earlier in the day to gain access to the immigration department’s offices across the greater Male’ area.

The ACC confiscated around 75 laptops, reports Haveeru, which had allegedly been given to staff as part of a Rf500 million (US$32 million) deal with the Malaysian company Nexbis to develop a new border control system in the Maldives.

According to Sun Online, the ACC has this morning filed a case against the Immigration Department alleging that its staff were intimidated whilst attempting to conduct their investigations.

ACC Vice President Muavviz Rasheed stated that investigators were locked in the building and that the lights and the air conditioning were turned off.

“It is a crime to obstruct ACC in its efforts to carry out its responsibilities. There are punishments for this. So we will take action according to the law. We will not be silent when people attempt to dishonour our authority in this manner,” ACC Vice President Muavviz Rasheed told Sun.

Assistant Controller of the Immigration Department Ibrahim Ashraf told Minivan News today that this intimidation did not happen, rather that the incident alluded to by Muavviz occurred when ACC investigators attempted to remain in the building past the office’s working hours.

“They wanted to stay in the building past the end of working hours – we have been instructed not to do any overtime because of financial constraints. This resulted in havoc,” said Ashraf.

Ashraf said that he had spoken to the person responsible for locking the building at the end of each day and had been assured that the doors had not been locked with ACC employees inside.

Ashraf stated that the ACC had attempted to search the offices without first obtaining a court order and without informing immigration staff. In addition he said that the ACC wished to search employees’ personal lockers.

He said that the ACC had eventually been granted a the court order at midnight, after which its investigators returned to the Velanaage headquarters.

It was at this point that the ACC confiscated the majority of the laptops which Ahsraf stated were part of the Nexbis project. He added, however, that the new Nexbis software was not yet installed on the confiscated computers.

Ashraf also stated that the ACC visited the residence of a senior department figure at around 5:00am to confiscate a laptop after the court order had expired.

The ACC began to investigate the bidding process by which the deal had been awarded soon after it was announce that Nexbis had won the tender in November 2010.

In late 2011, the commission forwarded cases against the Immigration Controller Ilyas Hussain Ibrahim and Director General of the Finance Ministry Saamee Ageel, to the Prosecutor General’s Office (PG), alleging that the pair had abused their authority for undue financial gain in granting the contract to Nexbis.

After the ACC ordered work on the project halted, the Civil Court ruled that the commission did not have the authority to make such an order. The ACC subsequently challenged this ruling in the High Court.

The ACC President Hassan Luthfee told Minivan News last week that a decision was anticipated by the end of May. He hoped the High Court would “delineate” the role of the ACC.

Both the President and Vice President of the ACC were unavailable for comment at the time of press.

Clarification on the powers of the ACC would alleviate confusion which has also arisen in the Thilafushi-Heavy Load reclamation project.

Heavy Load, a company run by the family of Maldivian Democratic Party (MDP) Interim Chairman Moosa ‘Reeko’ Manik, came under the ACC’s radar after similar complaints regarding this project’s tender process.

Moosa claimed at the time that the ACC was not politically impartial. At a press conference today, MDP Deputy Chairperson Mohamed ‘Inthi’ Imthiyaz was asked about yesterday’s raid, responding: “A series of mini-coups follow coup d’etat. I believe this is one of those mini-coups”.

Last week, details emerged that the first phase of the Nexbis project had been completed even as legal issues remained unresolved.

This first phase had reportedly involved a significant financial outlay by the company, which has previously threatened legal action should it incur losses as a result of delays to the project.

In the preceding week, the High Court had ordered an injunction halting any further work on the project pending the outcome of the ACC’s appeal on the Civil Court ruling.

Assistant Controller Ashraf expressed his concern that hindrances to the new border control system will have ramifications that go far beyond political turf-wars.

“Whoever is doing this to jeopardise the image of the Immigration Department needs to understand that the consequences may be disastrous. I don’t want the Maldives to become another Bali or Mumbai,” he said.

“They can take action against corruption and let the border control project continue. We are becoming a weak spot in the region. I have serious concerns.”

“We have a population of 300,000 which includes 100,000 foreigners. We have to be sure that they do not have criminal records, that they are not fugitives hiding in paradise,” added Ashraf.

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ACC says prominent government figures accused of corruption

The Anti Corruption Commission (ACC) has revealed that the government has appointed three individuals to prominent positions within its ranks despite being aware of corruption allegations made against them, reports Haveeru.

The names of the individuals were not revealed.

The ACC official who spoke with the paper said that the issue of taking greater care when considering government appointees had been discussed with the Attorney General (AG).

The official added, however, that they had received no word from the government regarding its response to this issue.

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Stop buying iPads, computers and phones, ACC tells government

The Anti Corruption Commission (ACC) has ordered the Finance Ministry to cancel plans to buy computers, iPads and phones for government ministries, claiming that only the People’s Majlis can approve ministerial salaries and benefits.

The Finance Ministry on April 30 released a circular approving the purchase of mobile phones, computers, and iPads for ministers from state funds allocated to the respective ministries. Furthermore, the finance ministry said the treasury would cover up to Rf 4000 (US$260) in monthly payments for ministers’ phone bills.

However, the ACC has told the Finance Ministry that no state institution could approve salaries and benefits for its staff, claiming that the task fell under Majlis’ jurisdiction.

“Article 102 of the Constitution authorizes the People’s Majlis to allocate salaries and benefits for the President, Vice-President, Judges, Members of Parliament and staff of the state institutions. Instead of state institutions deciding for themselves on matters within Majlis jurisdiction, we have ordered the Finance Ministry on May 7 to approve such benefits through the Majlis,” an ACC statement read.

“We would like to remind you the Auditor General has repeatedly criticized such actions in his audit reports and called on state offices not to do so without Majlis authorization. Further, when this commission asked the Majlis for advice on phone allowances, the Majlis Finance Committee told us in a letter on 30 March 2011 to act according to the salary structure approved by the Majlis on 28 December 2011 until the Majlis decides otherwise,” the statement noted.

The Auditor General Ibrahim Niyaz last week released a report on the Department of Judicial Administration (DJA) noting that between October 2008 and December 2011, Supreme Court judges had paid their phone bills amounting to RF 281,519 (US$18,280) from the state budget, despite the fact that the parliament had not allocated phone allowances to the judges.

Niyaz has recommended the amount be reimbursed and that the granting of phone allowances be determined by the parliament.

The Supreme Court on 16 May 2011  released a statement claiming that no Supreme Court judge had received phone allowances, after local media accused judges of misappropriating state funds for phone allowances.

Meanwhile, Chief of the IMF mission in the Maldives, Jonathan Dunn, warned parliament in April that if the country does not reduce its expenditure, it risks running out of reserves and miring the country in poverty.

Furthermore, the Majlis Finance Committee last week has projected that the Maldives budget deficit will reach 27 percent of the GDP by the end of year 2012, a 175 percent increase on earlier forecasts.

Government spending in 2012 is expected to increase by almost 24 percent, reaching Rf17.45 billion (US$1.13 billion) at the end of the 2012, while government revenue for 2012 will be Rf2.6 billion (US$168.6 million) less than the projected amount of Rf10.87 billion (US$704 million) – a 23 percent plunge.

With the shortfall of revenue and increased government spending, Head of the Majlis’s Financial Committee, Deputy Speaker and People’s Alliance (PA) MP Ahmed Nazim observed that the budget deficit will exceed from Rf 3.9 billion (US$ 252 million) to Rf9.1 billion this year (US$590 million), amounting to 27 percent of the country’s GDP.

Finance committee member and MDP MP for Kulhudhufushi, Abdul Ghafoor Moosa, told reporters that unplanned spending on police and military personnel and planned reimbursement of civil servants pay cuts in 2010, are both significant causes for rising costs to the government.

He observed that the largest shortfall in revenue is a direct result of the US$135 million pulled out from the budget with new government’s recently revised policy on lease extension payments for resort islands.

Maldives Inland Revenue Authority (MIRA) anticipated receiving a total of Rf375 million (US$ 24 million) for lease extensions, however the income received dropped to Rf23 million (US$1.5 million) as a result of the decision to accept the lease extension fees in an annual installment instead of a lump sum as decided by former administration.

The loss of concession fees from Ibrahim Nasir International Airport (INIA), the result of a successful Civil Court case to block the Airport Development Charge (ADC) filed by the Dhivehi Qaumee Party (DQP) while it was in opposition, also saw the government receive only US$525,355 from the airport for the quarter, compared to the US$8.7 million it was expecting.

The government-aligned PA’s Deputy Leader Nazim however contended that the 23 percent drop in government income was caused by unrealised revenue from privatisation schemes and a shortfall of Rf 166.7 million and Rf435 million (US$28 million) from the projected dividends of Dhiraagu and import duties respectively.

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