Tag: acc

Former Post Limited MD faces corruption charges

The Anti-Corruption Commission (ACC) has requested the Prosecutor General’s Office (PGO) to prosecute former Managing Director of the Maldives Post Limited (MPL), Mahudy Imad, for alleged abuse of authority.

In a press statement today, the ACC said it forwarded the case to the PGO on December 28 after completing an investigation into a complaint accusing Mahudy of using his influence to send an employee overseas for a law degree.

The complainant had alleged that funds were not allocated in the MPL budget for the course and that other employees were not invited to apply for it.

In its inquiry, the ACC found that Mahudy had abuse his authority to secure the course for the employee, who had reportedly been working at MPL as an administrative staff for less than a year before leaving to Malaysia for the course.

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Audit finds CSC members splurged 50 percent over budget on trips

Civil Service Commission (CSC) members paid their mobile phone bills out of the commission’s budget illegally, according to the CSC audit report for 2010.

In the report published on Tuesday, Auditor General Ibrahim Niyaz noted that under the article 20 of Civil Service Commission (CSC) Act, the salary and benefits of the five commission members must be determined by the People’s Majlis (parliament).

However, he revealed that the members phone bills were paid in 2010 without parliament’s approval and in violation of the CSC Act.

Therefore, the amount paid for phone bills must be reimbursed the to the state’s consolidated revenue account, the Auditor General told the commission members. The report does not specify the total amount spent on phone bills.

According to the report, CSC members refuted the AG’s conclusion, claiming that phone, computers and such items were considered as “facilities” rather than benefits.

“Since facilities are not determined by the parliament, the CSC decided these things according to the CSC Act and Public Finance Act,” members said.

They also told the auditors that the phone bill issue was clarified by the Anti Corruption Commission (ACC) and parliament, adding that “none of the institutions stated it was illegal”.

The Attorney General had previously concluded that mobile phone bills of ACC members was also paid out of the commission’s budget illegally during 2010.

Meanwhile in the CSC audit report it was found that the commissions trips were not recorded properly and filed within three working days of the end of the trip as stipulated by clause 5.13 of the public financial regulations.

In addition, the audit report noted that two CSC members who visited the “Meeting of the Chiefs of Public Service Commissions of SAARC member countries” in November 2010 in India received trip allowance from the commission budget – even though it was a fully sponsored trip by the organisers. Therefore, the AG requested the members to reimburse the trip allowance as well.

Another member who went on a seven-day study tour trip was asked to reimburse US$888 out of the total allowance, as the member returned four days early.

The Auditor General recommended the commission to reacquire unused funds left over from the trips as stipulated in section 1.01 of state financial regulations.

Out of the Rf24.5 million (US$1.6 million) annual budget released to the CSC in 2010, the report noted that Rf549, 816 (US$35,656) was spent on trips – which was almost 50 percent over the budget allocated for such trips.

According to the CSC financial statement, 95 percent of the trip budget was spent on overseas trips.

More than Rf11.9 million (US$773,581) was meanwhile spent on salary and benefits of staff.

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ACC approves India-backed housing project

The Anti-Corruption Commission (ACC) has allowed the government to proceed with a 500-unit housing project in Gaaf Dhaal atoll Thinadhoo and Male. Indian contractor OII will oversee the project.

The ACC had asked the government to halt the project on Thursday after receiving public complaints about the bidding process. Its investigation, however, found no acts of corruption and has approved the project.

The project is funded by a US$40 million loan provided by India’s EXIM Bank, which requires that the project is made open for Indian contractors only. Six Indian companies had submitted bids.

Under the project, housing units will be built at the Maafannu Boduge land plot, the former VTC land plot located on Alikilegefaanu Magu, and the land plot where debris is dumped.

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Cabinet passes, ACC challenges Nexbis border control system

The Anti-Corruption Commission (ACC) has filed a court case against the Rf500 million Border Control System proposed by the Department of Immigration and Emigration and signed by the government in November 2010.

Malaysia’s Nexbis Limited has been contracted to develop the system.

ACC’s case follows yesterday’s Cabinet decision to resume the border control programme with Nexbis. ACC has not revealed details of the case, and had not responded to inquiries at time of press.

Officials close to the matter said corruption was a concern. Earlier this year, the ACC had asked the government to halt program proceedings on suspicion of corruption during the bidding process.

Immigration Controller Abdulla Shahid told Minivan News that the government maintains its aim to launch the system after Eid festivities and SAARC events have been concluded this month.

“It is common in most developed and developing countries to have an electronic border control system, such as this one,” said Shahid, noting that Sri Lanka, Malaysia and Thailand had already subscribed to similar programs.

Immigration Department had signed a 20-year build, operate, and transfer (BOT) concession contract with Nexbis on October 17, 2010 when the ACC requested the department adjourn the signing ceremony due to a “serious” public complaint.

Nexbis shares immediately plunged 6.3 percent on the back of the ACC’s announcement. The company subsequently issued a statement claiming that speculation over corruption was “politically motivated” and had “wrought irreparable damage to Nexbis’ reputation and brand name.”

President Mohamed Nasheed upheld the ACC’s request in January 2011, and in late May the Cabinet deliberated the matter and approved the programme, overruling the ACC’s reservations.

However, operations were stalled and in August, Nexbis threatened legal action against the Maldives’ Immigration Department if action on the border control agreement was not taken. The company had allegedly bought equipment and paid import duties to the government, and was incurring losses while waiting for a resolution from the Maldivian government.

The Rf500 million project would install an electronic border gate system in Male’s Ibrahim Nasir International Airport (INIA), bringing technological upgrades such as facial recognition, fingerprint identification and e-gates to the Maldives, which has struggled with loose immigration policies and reports of human trafficking.

The Maldives currently holds a 10-year contract for passport production and scanning services with an Austrian company, Shahid said.

Local media has reported that the Nexbis program does not include the expected technological upgrades including automated facial recognition, e-gates and passport production. Shahid confirmed today that those features are included in the program.

“The Nexbis system would make the immigration and security process simpler and more secure for everyone involved,” he said.

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Government misled by NDMC’s management of Moreway money

Senior members of Moreway Construction Company and the National Disaster Management Center (NDMC) have been implicated by employees of NDMC and the French Red Cross (FRC) for their alleged corrupt involvement in a 2005 Laamu Gan tsunami housing project.

“Moreway is a scapegoat for forgeries and fabrications committed by the Arif brothers Ahmed and Abdullah, and Mohamed ‘Dhigali’ Waheed,” alleged one member of the business community familiar with the individuals, who wishes to remain anonymous.

Dhigali is a former shareholder and current executive manager of Moreway Construction. Ahmed Arif owns Apollo Holdings Company, which has been linked to Moreway, while Abdullah Arif, formerly director of Moreway Arun Excello, today holds shares in Lotus Company.

The Anti-Corruption Commission (ACC) recently entered NDMC with police forensics experts to review files relating to a Rf18 million (US$1.16 million) payment issued to Moreway by the government in May. The ACC stopped a second payment of Rf15 million (US$973,000) in August on suspicion of corruption.

In 2005, the FRC tendered a US$7 million post-tsunami housing project for Laamu Gan, accepting bids from several companies, including Moreway, in a joint venture with Indian company Arun Excello and local company Aima. Although the project initially proposed 460 houses, complaints of insufficient conditions and finances prompted the FRC to reduce that number to 240.

NDMC Senior Project Manager Mohamed Waheed said Moreway’s complaints of insufficient financing and obstacles to construction prevented the company from fulfilling its contract, although at the time, claimed Waheed, imported materials were duty-free. A former employee of the French Red Cross, Adam, added that Red Cross site inspections and budget plans were nearly fool-proof. But “they were always demanding money from FRC, they had all kinds of excuses,” said Waheed.

Meanwhile, Arun Excello had abandoned the project mid-way due to frustrations with Moreway, incurring a loss of US$300,000.

Representatives at Arun Excello had not responded to inquiries at time of press.

After building 80 houses, Moreway’s contract was terminated by the FRC and the project handed over to Maldives Transport and Contracting Company (MTCC) under the government’s remit.

Moreway was subsequently sued by NDMC on behalf of the Maldivian government for losses incurred by the unfinished project. In November 2007, the Civil Court delivered a verdict requiring Moreway to pay US$2.3 million to the government and granting NDMC the right to sell Moreway property at their construction site if the money was not paid within one month.

Sources say the money, due four years ago, has not yet been paid.

“Misleading” letters

Although payments were released to Moreway this year by the Finance Ministry, Waheed claimed that the government has been misinformed.

On April 19, 2011, Deputy Minister of Housing and Environment Ahmed Zaki sent a letter to Finance Minister Ahmed Inaz stating that a sixth invoice submitted by Moreway in March 2007 had yet to be paid, and requested that the ministry release the funds.

In response, Inaz said budget constraints prevented the money being allocated to NDMC, “so, money is to be paid from the NDMC budget.”

Further letters obtained by Waheed illustrate government confusion around the issue. In what Waheed called “misleading letters” between the Finance Ministry and NDMC, NDMC personnel requested the government to pay expired contractor invoices for a project which it had not tendered. At Zaki’s suggestion, the Finance Ministry reallocated money for current housing projects in Dhuvaafaru and Vilufushi to facilitate these payments, which were made using the current dollar-rufiyaa exchange rate.

Although the first payment voucher, processed in May, required Mohamed Waheed’s authorisation, his name had been crossed out and replaced by Deputy Minister Adam Saaed’s, who authorised the voucher along with Zaki.

Asked why this had been done, Waheed speculated that “they thought I wouldn’t sign it, and since Saeed is a friend of Zaki’s they had him sign it. I don’t think he even knew about it, maybe he signed it without thinking much.”

Meanwhile, documents used to obtain these payments are in dubious standing. Waheed points out that only copies were submitted to the Finance Ministry. “Who will accept invoice copies these days? Not even a small child!”

FRC officials also pointed out that the invoices had long been considered invalid.

Emails exchanged between Waheed, FRC senior project manager Brett Campbell and FRC construction coordinator Xavier Chanraud confirmed that all legitimate invoices from Moreway had been paid in full by the time FRC closed its housing projects and left the Maldives.

Chanraud recently stated that, “The FRC has closed all of its housing projects in the Maldives years ago and has already paid 100 percent of its contracts value through NDMC, which includes all defect liability retentions to the contractors. I do not think those invoices are still eligible, especially if rejected four years ago by the NDMC for technical reasons.”

Campbell added that the Civil Court’s verdict against Moreway indicated that “not further payments were due to Moreway.”

In reference to requests for additional payments for access road construction, Campbell said those claims were “discussed at length” and “deemed to be a contractor’s cost.”

Then NDMC Chief Coordinator Abdulla Shahid allegedly rejected the invoices at the time on similar grounds.

“It is questionable how these invoices made headway into NDMC budget section [in 2011],” Waheed wrote in a statement. “These are not outstanding payments to Moreway as one would think and FRC does not recognise these invoices as pending.”

When the invoice for a second payment was authorised by Zaki and NDMC chief coordinator Sheikh Ilyas Hussain and submitted to the Finance Ministry, Inaz questioned its validity against Moreway’s pending debt to the government.

Zaki then took the invoice with comments from NDMC Finance Director Mohamed Shiyam’s desk and passed a new copy to someone else for processing, Waheed alleged. Copies of both invoices with clear discrepancies were shown to Minivan News in private interviews.

The Maldives’ current Red Cross affiliate office, the International Federation of Red Cross (IFRC), was unable to comment on the case.

A blind spot

Sources at NDMC and formerly the FRC agreed the previous regime’s corrupt reputation has left the current government with a blind spot.

“At the time, the government was too corrupt to get money for projects,” said Waheed. “So the FRC was funding the project, but after Moreway could not complete the project FRC left and the government stepped in.”

Government bias may have pervaded the project from the start, however. Moreway’s original bid was rejected over a fake bank guarantee, Waheed pointed out, and the company had to go to court to clear its name before re-submitting its bid.

“This is how things were done then, I don’t know why Moreway was selected but that was Gayoom’s regime,” he said.

Internal complications at the Red Cross were also rumored, although a source familiar with the operation could not confirm the reports.

For Adam, the central issue in the Moreway case is ignorance. “GoM does not understand the discrepancies in payments and procedures, and has not been properly informed of the project, so it is being charged for variations that were not approved by FRC,” he said.

According to Adam, the “local procedure” leaves project tendering and awarding to the Ministry and does not include consultants. It is “the only procedure Maldivians know,” and supports a “culture of embezzling state funds” whereby invoices are frequently submitted, rarely checked, and often paid.

FRC’s procedure is more meticulous and independent, Adam explained. Consultants are included in the bid review process, and officials at local and international FRC offices review projects alongside NDMC officials and consultants.

Had the government been more aware of FRC’s procedures, Adam said it would have noticed that the recently-paid invoice had not been signed by a consultant or passed through the review process at FRC.

The trickle-down effect

Distribution of the Rf18 million (US$110,000) is unclear. One source said it was obvious to anyone familiar with the business community that Dhigali “has profited personally, that he is a crooked businessman is known across the whole Maldives.”

A source familiar with the business community implicated Dhigali in a check fraud case involving companies Apollo and Lotus. The Arif brothers are currently shareholders in Lotus, and were allegedly issued a bad check by Apollo, in which Dhigali is a shareholder.

Other sources believe that anyone involved in processing the payments has also received a share.

The Arif brothers, said to have split associations with Dhigali earlier this year, were reportedly unaware that the payments were made. Ahmed Arif avoided scheduled interviews with Minivan News, and Dhigali did not respond to phone calls.

To date, Moreway’s debt of US$2.3 million has not been paid.

Breaking the Silence

“This is a big fraud and corruption case involving senior members at the government and at NDMC,” said Waheed, who said he suspects political tensions could make the ACC’s investigation difficult. “I’ve told Ilyas and Zaki not to do this. But Ilyas said he is helpless because he is not part of the ruling party. Zaki is MDP, though, and I think the two don’t want to have a conflict.”

While Waheed believes the ACC “is now more professional than before, and we should attach some faith to their investigation,” he chose not to report his findings to the commission.

Instead, he wrote to the President. “Because this involves so many government members I thought it was best to go to the government first, before reporting anything to an outside body. But when I spoke with them they were nervous, they didn’t want this thing to be talked about.”

Minister Inaz had not responded to phone calls at time of press, and Ilyas refused to speak to Minivan News. Deputy Minister Zaki denied all allegations.

ACC’s investigation of NDMC is currently underway.

Correciton: Previously, this article stated “Zaki then took the invoice with comments from Inaz’s desk and passed a new copy to someone else for processing.”

It should have read, “Zaki then took the invoice with comments from NDMC Finance Director Mohamed Shiyam’s desk and passed a new copy to someone else for processing.”

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ACC clears Gasim of wrongdoing as finance minister

The Anti-Corruption Commission (ACC) has cleared former Finance Minister Gasim Ibrahim of wrongdoing in the leasing of ‘Red Crescent Six’ shop.

Haveeru reports that the commission had investigated a complaint alleging that the shop was rented out in violation of bidding rules.

While the investigation did not uncover any evidence of corruption, a statement from the ACC however notes that the lack of regulations governing leasing and renting of state property caused legal problems for the commission.

The statement reiterates calls for the Finance Ministry to amend regulations under the Finance Act to specify guidelines for leasing state property.

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Thasmeen claims silver lining as DRP MP Ali Waheed “jumps ship”

Opposition leader Ahmed Thasmeen Ali has claimed that the prospect of an Maldivian Democratic Party (MDP) voting majority in parliament – a potential scenario following  recent defections of DRP members to the ruling party – could have a silver lining for his supporters come election time.

Thasmeen said he believed if the MDP’s claims of having overall control of the Majlis proved true, the government at the 2013 general election would be unable to escape blame for recent economic reforms he believes have failed the public.

Thasmeen, who is himself currently embroiled in factional party infighting with a group aligned with former DRP leader and Maldivian President Maumoon Abdul Gayoom, was speaking as Ali Waheed, a former Deputy Leader of his party, joined the MDP over the weekend.

Waheed, who joined former DRP members Ahmed Assad ‘Adubarey’ and DRP Sports Wing Head Hassan Shujau in signing up to the MDP, gave a speech citing concerns about the democratic nature of his former party. Waheed has strongly criticised President Mohamed Nasheed in the past.

“We did not bring change to the country for a person to advance because he belongs to a certain family or clan, but for a person to move up through merit,” Waheed said. “Today we can see that those who could not digest this have created different factions and we can see the state of the party [DRP] we formed with our hard work. Therefore, because [the party] has become an inheritance, I have let go and walked out empty-handed.”

Thasmeen said a majority would mean the governing party would be no longer able to blame opposition for its own failings – something he feels they had succeeded in doing previously.

“Firstly, I am not sure that the MDP have gained a parliamentary majority; as far as I am aware only two [MPs] have shifted to the party. Certainly if [a majority] happens, it would pave the way for the government to get things passed through parliament the way they want them, and this would be a new era for politics,” he said.

Thasmeen claimed that as the DRP had never itself held a political majority, it had effectively been subjected to checks and balances in parliament resulting from needing to agree unanimously with opposition coalition partners. As a result of this need for unanimous compromise, the DRP head claimed that the opposition’s ability to block government legislation had been used only in rare instances.

He added that in the event that the MDP might potentially claim a majority within the Majlis, the country’s changing political dynamic would not significantly change his own party’s policies of trying to hold the government to account.

“One thing is clear – the government has been successful in blaming parliament for what have been failures of its policies.  Come the next election, they will pay the price for the programmes that have failed, and this will be something of a silver lining for the DRP,” he said.

“Ali Waheed’s shift [to the MDP] does not make any difference to our work as the opposition or possible collaboration with the government. It is a joint parliamentary group that sets our policy and if we agree strongly about an issue with the government then we will work with them on it. We take stands on principle, no matter the strength of the MDP.”

Thasmeen highlighted his party’s stand on government policy areas such as the economy which this month led to protests – said to be instigated as a youth movement – held in Male’ over concerns about the cost of living.

However, the DRP leader added that recent divides within the party linked to the formation of the Z-DRP faction had negatively impacted its opposition role.

“There is no question that these divisions have weakened the DRP. Unease had been created in the party, but I do not believe this is a challenge that cannot be overcome,” he said.

Referring particularly to Waheed’s defection, Thasmeen said he believed that MPs elected on a DRP ticket should not then choose to use divides within the party as an “excuses to jump ship” to the MDP.

DRP post-Waheed

Following Waheed’s departure from the party, Thasmeen said that the country’s economic reforms – such as devaluing the rufiya – would remain a key concern for the DRP when parliament next reconvened.

“The government has indicated that it will release proposals to address economic concerns and bring down the dollar rate,” he said. “We do accept the fact that revenue has to be increased, but we would like to see serious attempts to reduce state expenditure and ensure revenue is not being wasted.”

The DRP leader claimed that the party was not specifically calling on the government to slash spending in a single area such as political appointees, but instead asked for a concensus on areas such as in the funding of new offices for local councils formed during local elections held in February.

“We are willing to support spending cuts across the board; but it is important that this is done with a consensus-based approach.”

On the back of attempts by dismissed deputy DRP leader Umar Naseer – currently aligned with the DRP faction – to try and file a case with the Anti-Corruption Commission (ACC) over allegations the MDP had bribed DRP members to join its ranks, Thasmeen said he was not certain of the truth about such claims.

“Without knowing the facts it is not an easy situation to comment on. However, as a party, the MDP has a number of policies that have failed,” he said. “The forced exchange rate is one [policy] that has impacted the lives of many Maldivians, there is no logic in jumping ship to suddenly support it.”

Confident of a majority

MDP MP Ahmed Hamza said the party was confident it would achieve a voting majority as opposition MPs “realise that the party’s approach is not constructive.”

“I think they are frustrated,” Hamza claimed. “Ali Waheed said he had waited two years without seeing a responsible opposition.”

He acknowledged that the loss of MPs risked destabilising the already split opposition: “Ali Waheed was a major voice in the opposition,” he observed.

A voting majority favouring the MDP would “speed the efficiency at passing legislation to support government policy,” Hamza said, claiming that this would allow the government to swifting bring in changes to stablise the economy.

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ACC request MPs’ financial statement

The Anti-Corruption Commission (ACC) has requested an MPs’ financial statement in connection with a case the commission is currently investigating, reports Haveeru.

The ACC declined to reveal either the identity of the MP involved or the nature of the case.

According to local daily Haveeru, the parliamentary Ethics Committee has decided not to provide financial statements unless ordered to do so by a court of law.

Some MPs however revealed that the matter will be brought to the floor in the coming week for a decision by the full Majlis.

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Second ACC corruption case to launch this week against GMR bribe allegations, says Umar Naseer

The Anti-Corruption Commission (ACC) is said to be investigating allegations that Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali and Speaker of Parliament Abdulla Shahid may have accepted bribes from the Indian infrastructure company, GMR.

Umar Naseer, a former deputy leader of the DRP until he was dismissed by a disciplinary commission back in December, has confirmed to the press that the ACC had written to him to confirm an investigation into GMR’s deal to manage and redevelop Male’ International Airport had begun.

The investigation will be the second case to be launched this week concerning major deals involving prominent parliamentarians.

Accusations first surfaced last November that Thasmeen and Shahid had each received payments of US$1 million that were claimed to have been supplied by GMR in order for the politicians to try and stall parliament sittings and cross party opposition of its airport plans.

Although unavailable for comment at the time of going to press, both Thasmeen and GMR have previously dismissed the allegations; with the DRP leader saying that the claims – initially appearing on the Dhivehi Post website – were politically motivated and a “fabrication”.

The ACC did not respond to Minivan News when contacted to confirm it had officially opened its second major investigation this week.

However, Umar Naseer said that he was able to supply documentary proof that Thasmeen, Shahid and GMR were being reviewed concerning allegations of corruption. Naseer was also unavailable for comment at the time of going to press.

In late January, the ACC ordered a halt on another government contract, between the Department of Immigration and Malaysian mobile security firm Nexbis, claiming that there were instances where corruption may have occurred.

Facing political pressure ahead of the local council elections, President Mohamed Nasheed upheld the ACC’s request that the roll-out of the technology be postponed.

Nexbis responded that it would be taking legal action 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.”

The week has also seen the ACC ordering Thilafushi Corporation Limited (TCL) to halt the dredging of Thilafushi lagoon, because of issues that “could lead” to corruption in its contract with Heavy Load Maldives.

Heavy Load was awarded the US$21 million project on September 30 last year, and inaugurated the project on February 4.

The Environmental Protection Agency (EPA) also expressed concern over the project, which it claimed had “started work” prior to being issued an Environmental Impact Assessment (EIA).

Heavy Load is a family business interest of ‘Reeko’ Moosa Manik, the ruling Maldivian Democratic Party (MDP)’s parliamentary group leader.

Speaking from Colombo, Moosa told Minivan News on Sunday (February 13) that Heavy Load had spent 2-3 months mobilising resources for the project. The February 4 inauguration attended by President Mohamed Nasheed was symbolic, and did not necessarily mean the company had started dredging work, he said.

As for the ACC’s allegations it was, he said, “not a coincidence” that the announcement had been made a day after allegations broke in the Indian press that People’s Alliance (PA) leader Abdulla Yameen – also former President Maumoon Abdul Gayoom’s half-brother – sold blackmarket oil to the Burmese miliary junta.

“There is a part of the ACC that is not free and fair,” Moosa said, alleging that the commission was subject to misuse for political purposes.
“PA’s Deputy Leader [Ahmed] Nazim is very close with one of the commission members, [Abdulla] Hilmy, which needs closer investigation,” Moosa said.

Despite the nature of the corruption allegations and the ACC alleged concerns over GMR, the infrastructure group took control of the airport in late November. The company claims that it hopes to begin redeveloping the existing airport structure during an initial 180 day period ahead of operating and that it had been completely open in all matters regarding its deal for the airport project.

Andrew Harrison, Chief Executive Officer (CEO) of GMR Male’ International Airport, told Minivan News late last year that any meetings held during consultations, particularly those involving government figures, had been advertised and open to the public.

“We go to public meetings, and we have other stakeholders present in these meetings. So for us, there is no question of anything occurring that would be shrouded in secrecy, or not known to the public,” he said.

“Certainly I can tell you I have no knowledge of anything like that taking place. This seems to be something going on between people outside of GMR, although somehow we have appeared in the frame.”

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