Tag: anti corruption commission

ACC investigates Disaster Management with forensic experts

The Anti-Corruption Commission (ACC) yesterday entered the Disaster Management Center (DMC) with a police escort to investigate files relating to a 2006 housing construction project in Laamu atoll.

The Ministry of Housing and Environment did not comment on the investigation’s purpose, which is being conducted four months after outstanding payments to the construction company were made.

Movey Construction Company was hired under the former government to manage an Rf18 million project in 2006, which was completed in 2007. In 2009, DMC delayed payments due to a financial shortage, and in January 2011 Movey Construction filed a complaint for financial losses.

Deputy Minister of Housing and Environment, Ahmed Zaki, said he had been puzzled by the delay. “All the paperwork was in order,” he told Minivan News today. Moreover, the complaint against the Disaster Management Center “had enough evidence, and the payments were made with approval by the Finance Ministry in May.”

Zaki said forensic experts had accompanied ACC staff yesterday to “review paperwork and files in a clear and informed fashion. The hard drives which had been removed for further examination were returned today, all clear.”

When asked if the ACC investigation implied a concern for corruption, Zaki said he did not believe there was any reason to suspect corruption in the dealings between DMC and Movey Construction Company.

“This is just an accusation because payments were delayed. But the payments were made this May with sufficient documents from all parties. The financial system in the Maldives is very transparent, there are a lot of layers, checks and balances, so I am confident that there is no issue of corruption here,” he said.

Police Sub-Inspector Ahmed Shiyam said the police would provide support as needed during the investigation.

“We have a signed agreement with the ACC to provide support as needed. Our forensic experts are currently working on the case,” Shiyam said.

Members of Movey Construction Company and the ACC were not available for comment.

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MMC members received almost Rf 1 million in illegal “living allowances”, finds Auditor General

Members of the Maldives Media Council (MMC) have been illegally receiving a living allowance of Rf 7500 (US$500) in addition to their monthly salaries, according to an audit report for the year prepared by the Auditor General’s office.

The Auditor General’s report noted that the article 19[a] of MMC Act states that salaries of Council’s Chair, Vice Chair and members shall be determined by the parliament, and that the salary for the council member determined by the parliament on January 2011 was Rf 8000 (US$533) for the Chair of the Council, Rf 6500 (US$433) for the Vice Chair, and Rf 5000 (US$333) for each council member.

The report observed that council members started receiving the allowance on January 20, 2011, after the Chair of the Council sent a signed memo to the council’s corporate affairs unit.

The Auditor General at the time was aware of the matter and forwarded the case to the Anti-Corruption Commission (ACC) and on February 17, 2011, the ACC sent a letter to the council asking it to stop claiming the allowance until the ACC concluded the case.

‘’On February 20, the council members held their 7th meeting of the year and in the meeting all members voted that there was no reason why the council should follow instructions as in the letter sent by the ACC,’’ the audit report noted.

On April 20 council members decided not to receive the allowance, after they were asked by ACC to discontinue a second time. The MMC then sent letters to council members asking them to return the amounts they had received as living allowances – by now a total of almost a million rufiya, in addition to their salaries.

According to the Auditor General’s report, the council members did not receive the living allowance for six months from May to August. However a lump sum for six months worth of the living allowance sum was included in council members’ salaries for August – a total of Rf 45,000 (US$2900) for each council member.

The report also stated that by the end of August the council had spent a total Rf9 00000 (US$60,000) on paying members living allowances.

The Auditor General’s report stated that the living allowance was an illegal expense, despite parliament approving the MMC’s budget including the allowance, and noted that the MMC had behaved inappropriately for an institution that was required by nature to have the trust and confidence of the public.

Chair of the MMC Mohamed Nazeef told Minivan News that the issue “had been solved”, and that “some” of the council members had now returned the money they received as living allowances.

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ACC investigating second Supreme Court Justice

The Anti-Corruption Commission (ACC) is investigating allegations that over Rf50,000 (US$3,200) of state funds was spent on plane tickets for Supreme Court Justice Ali Hameed’s official visit to China in December last year.

Haveeru reported that according to the person who filed the complaint, Hameed also visited Sri Lanka and Malaysia both before and after his trip to China to attend a conference by the International Council of Jurists.

While there are currently flights between Male’ and Beijing, a return ticket costs Rf16,686 (US$1,080).

Last week, a similar complaint was lodged at the ACC alleging that Supreme Court Justice Abdulla Saeed visited his native Addu City on an official visit during a four-day government holiday for Eid.

The Supreme Court meanwhile informed Haveeru that the Finance Ministry approved expenses for the trip after the Supreme Court Justice was invited to participate in the conference.

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ACC asked to investigate Supreme Court Justice’s official trip to Addu City

The Anti-Corruption Commission (ACC) has been asked to investigate an official trip to Addu City by Supreme Court Justice Abdulla Saeed from August 30 to September 2, which took place during a four-day government holiday for Eid al-Fitr.

In a letter to the ACC last Thursday, lawyer Abdul Hameed Abdul Kareem questioned if the purpose of the visit – discussions with magistrates regarding administrative difficulties – could have been fulfilled while the courts were closed for Eid.

“I have learned that after traveling in the name of an official trip, [Justice Abdulla Saeed] spent most of this time on his Eid holiday,” reads the letter, requesting the ACC to investigate if expenses for the trip were covered by the court’s budget.

In addition, Abdul Hameed requested the commission to determine “how much time he spent at the courts” and if the Supreme Court Justice spent state funds for personal use.

A media spokesperson from the ACC told Minivan News today that the commission had received the complaint and would decide whether to conduct an investigation in due course. The complainant would be informed of the decision, the ACC official explained.

According to the Supreme Court website, “the main purpose of [Justice Abdulla Saeed’s] trip was to find out administrative difficulties faced by Addu City magistrate courts as well as to collect information needed for streamlining the judiciary.”

It adds that the former Chief Justice visited the magistrate courts during his four-day visit.

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Independent Bodies Committee reviews ACC, JSC, and others

Parliament’s Independent Bodies Committee is reviewing the activities of independent state groups, reports Haveeru. Among the groups reviewed are the Anti-Corruption Commission (ACC) and the Prosecutor General’s Office.

The committee, chaired by independent MP Mohamed Nasheed, is assessing the challenges to productivity among certain state groups. Nasheed said the committee will also review opportunities for growth.

The committee is said to have found some significant reasons for concern.

Nasheed said these issues would be addressed with budget reform measures and amendments to existing laws.

A report on the committee’s findings is due before parliament in October.

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GMR challenges Heavy Load for airport turf

GMR has challenged Heavy Load Maldives over land designated for a new terminal at the Ibrahim Nasir International Airport, Haveeru reports.

GADL International Limited, a subsidiary company of GMR, had allegedly been assigned to reclaim the land and build the new terminal.

However, reports state that Heavy Load was awarded the first phase of the reclamation project at Ibrahim Nasir International Airport, which includes 50 percent of the reclamation.

GMR has said that Heavy Load would not be given the project to construct the breakwater.

Heavy Load was recently asked to stop work at the Enboodhoo Lagoon by the Anti-Corruption Commission (ACC). The company had been awarded the project by Thilafushi Corporation Limited on September 30, 2010. Heavy Load re-submitted its proposal in August 2011, after the bidding was re-opened.

The ruling Maldivian Democratic Party’s (MDP) interim Chairperson, ‘Reeko’ Moosa Manik, holds shares in Heavy Load.

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ACC obtains court order for MPs’ financial statements

A team from the Anti-Corruption Commission (ACC) entered parliament today with a court order to obtain financial statements of MPs.

A Majlis media official confirmed that the ACC team was working in parliament while the financial statements were available from the Ethics Committee.

ACC Chair Hassan Luthfy told Minivan News today that the commission obtained a court order from the Criminal Court last night and the team was sent in this morning.

“We hoped to get [the statements] legally but no solution was found through discussions with parliament,” he said.

Luthfy explained that the ACC was investigating allegations of corruption and bribery involving MPs after receiving a number of complaints.

Luthfy stressed that as “these are only allegations” he could not divulge further details or identify which MPs were involved since “it could violate their privileges.”

The ACC chair however revealed that the commission had received “about two to four complaints” regarding MPs.

In April this year, parliament reached an impasse on public declaration of assets by MPs after voting against a proposal by the Ethics Committee to not make the information available unless ordered by a court of law.

When MPs voted against the proposal 34 to 24, Deputy Speaker Ahmed Nazim declared the matter “void.”

“However, the Secretary General’s request for counsel on this matter has not been decided one way or the other,” he said at the time. “So the Secretary General will go ahead with it according to the rules of procedure.”

The Secretary-General had asked the Ethics Committee to determine whether MPs’ financial statements should be released to other state institutions upon request.

Secretary General Ahmed Mohamed confirmed to Minivan News that the requested financial statements and documents were provided to the ACC team before the court order expired at 3:00pm today.

According to Article 76 of the constitution, “Every member shall annually submit to the Secretary General of the People’s Majlis a statement of all property and monies owned by him, business interests and liabilities. Such declarations shall include the details of any other employment and obligations of such employment.”

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Supreme Court appoints secretary-general despite ACC order

The Supreme Court has appointed a secretary-general in spite of an order by the Anti-Corruption Commission (ACC) to halt the appointment process until it concludes an investigation, reports newspaper Haveeru.

According to Haveeru, the wife of Criminal Court Judge Abdulla Didi – also a member of the Judicial Service Commission (JSC) – has been appointed to the new post of secretary-general.

ACC Deputy Chair Muaviz Rasheed said that the ACC investigation was prompted by a complaint about the Supreme Court appointment but declined to divulge further details of the ongoing investigation.

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ACC highlights irregularities in finances of Maldives Entertainment Company

The Anti-Corruption Commission (ACC) has released findings of an investigation into the finances of the Maldives Entertainment Company Ltd (MECL), highlighting discrepancies and irregularities in the company’s financial records.

According to a press statement by the ACC on Thursday, the investigation of the 100 percent state-owned corporation was prompted by numerous complaints regarding its expenses, inventory and high salaries of board members.

“Even though records of expenditure were kept, the figures in the records and the actual amount withdrawn from the [corporation’s] bank account differs,” the ACC findings noted.

“While company records show that Rf676,262.95 (US$43,800) was spent, the bank account showed that Rf807,703.95 (US$52,300) was withdrawn for expenses. Therefore, Rf134,470 was withdrawn from the bank without any record [of how the money was spent].”

Discrepancies in income statements meanwhile revealed that Rf524,121 (US$33,900) worth of income was not entered into QuickBooks (accounting software) records.

Moreover, as a result of the corporation’s spending exceeding its revenue, MECL currently has outstanding debts amounting to Rf122,178.98 (US$7,900), owed to various parties for purchases and services.

“As a result of incomplete documentation and failure to properly maintain records of the company’s expenses and revenue, the legitimacy of the details of expenditure and revenue cannot be guaranteed,” the ACC findings noted.

Moreover, there was no record of the income generated or expenses incurred for a Boney M concert last year.

In addition, a list of assets transferred to the corporation upon its formation were not registered in its inventory.

The ACC findings noted that board members were paid salaries “disproportionate to the income [the corporation] generates through its limited resources.”

“While Rf1 million (US$64,850) was provided by the Finance Ministry in four installments as MECL’s capital and Rf250,000 was received for each installment, instead of spending the money for the company’s other expenses, the bulk of it was spent on salaries for board members,” the ACC found.

However the ACC discovered that among the board members only the Managing Director of the board was being paid a monthly salary at present, “[but] the company’s staff are being paid monthly salaries with no records of attendance.”

The ACC has informed the Finance Ministry as well as the corporation’s board to take remedial measures in connection with the findings.

The press statement however added that the ACC was continuing its inquiries as it had “noted matters that have to be further investigated.”

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