Tag: anti corruption commission

ACC’s stop work order on Heavy Load politically motivated, alleges Reeko Moosa

The Anti-Corruption Commission (ACC) has ordered 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.

ACC Commissioner Hassan Luthfee told newspaper Haveeru that details of an investigation into TCL’s selection of Heavy Load for the 130 hectare dredging project would be released tomorrow.

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).

The EPA’s Director of Environmental Protection and Research, Ibrahim Naeem, confirmed to Minivan News that a license was granted to Heavy Load on Feburary 10, while work started on the Feburary 4th.

He could not clarify if this meant the company had begun actually dredging prior to being issued the license.

“Dredging has a large impact on the environment, which is why licenses are issued to ensure mitigation measures are in place,” he explained.

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 that Heavy Load had spent 2-3 months mobilising resources for the project. The February 4 inugration 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.

“I am a strong part of this government and I think this is a political trick. I haven’t even been into the Heavy Load office in one and a half months because of my campaigning [in the local council elections]. It is run by my family, my children.

“I had shipping company in 1981 when [former President] Maumoon Abdul Gayoom and his brother-in-law took me to prison and destroyed my business and my life. I spent four years in prison and they have not answered for this,” Moosa contended, questioning why the ACC was not investigating audit reports concerning prominent ministers in the former administration.

Moosa further claimed that Heavy Load had already deployed dredger for the work and was unlikely to halt on the ACC’s orders – “they have to go to the court and provide evidence of corruption,” he said.

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.”

Moosa told Minivan News that it was unlikely the Heavy Load project would be similarly held: “We are not a foreign company,” he said.

The dredging is part of TCL’s development of a new port catering to 15,000 ton cargo ships and container terminal, on 3.8 million square foot of land. The project is partly intended to free up land currently occupied by the port in Male’, one of the most densely populated cities in the world at over 100,000 people per square kilometre.
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Nexbis to seek legal redress for “irreparable damage to reputation and brand name”

Mobile security solutions vendor Nexbis has announced it will 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.”

“Although we understand that the recent media frenzy and speculation of corruption are politically motivated in nature and not directly related to Nexbis, it has had an indirect impact on our reputation and brand name,” the company said in a statement provided to Minivan News.

“Nexbis’ shareholders own and manage multi-trillion dollar assets globally and will not jeopardise their reputation for an investment return,” the company stated.

The Malaysian-based technology firm signed a concessionaire contract with the Department of Immigration in October 2010, to install an advanced border control system that is had said would collect and store biometric data on expatriate workers and eliminate abuse of (easily forged) paper documentation.

The government has struggled to tackle the problem of foreign worker exploitation. There are believed to be 100,000 foreign workers in the country – almost a third of the country’s total population – but no data is available on how many are illegal.

International agencies have taken a dim view of the problem, most notably the US State Department, which last year placed the Maldives on its tier two watch-list for human trafficking. Minivan News reported in August 2010 that the exploitation of Bangladeshi workers alone was an industry was worth at least US$43.8 million a year, rivaling fishing as a source of foreign exchange.

Following the signing ceremony with Nexbis, the Anti-Corruption Commission (ACC) announced it had received “a serious complaint” regarding “technical details” of the bid, and issued an injunction pending an investigation into the agreement.

“On the very day we signed the contract, barely hours, maybe minutes later, the ACC had drafted a letter saying there were suspicions of corruption involved with the decision,” Minivan News was told by an Immigration Department source, who asked not to be identified.

Nexbis shares immediately dropped 6.3 percent on the back of the ACC’s announcement.

Last week, 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.

The ‘stop-work’ order amounts to an indefinite hold on the project, with little optimism for a quick outcome. The ACC has not completed an investigation since 2008.

In its statement, Nexbis noted that the system and related technologies to be installed in the Maldives “have been implemented in over 100 locations worldwide including the Americas, Europe and Asia and comply with ICAO (International Civil Aviation Organisation) and other international standards.

“Nexbis is an international company with strict internal policies that conform to International Anti-Corruption laws and strictly enforce the policy. All Nexbis staff have strict government security clearance to carry out national security projects.”

The company stated that it was invited along with other Malaysian companies to invest in the Maldives during a government road show, and was shortlisted for the Immigration Border Control System (MIBCS) tender after making an expression of interest in February 2010, together with several other companies.

“Subsequent to that, Nexbis together with the other shortlisted companies were invited to respond to the RFP (request for proposal),” the company stated. “Nexbis followed the strict and transparent submission and evaluation process requirement of the government of Maldives and emerged as the successful bidder for the project in a public opening of the bid together with all the other bidders.”

Those bidders, Nexbis said, were informed that they would be subject to both a technical evaluation by the Immigration Department and an independent financial evaluation by both the Ministry of Finance and the Tender Board.

“The contract negotiations involved lawyers from the Attorney General’s office, Immigration, as well as the Ministry of Finance prior to a unanimous conclusion by all parties and final sign off by the Attorney General’s office of the Government of Maldives,” Nexbis stated.

On October 17, 2010, Nexbis signed a concession agreement with the Department of Immigration to implement an Immigration Border Control System (MIBCS) under a BOT (Build, Operate and Transfer) arrangement. This allowed the system to be installed at no upfront cost to the government, while Nexbis would levy a fee on work visas issued over the lifespan of the agreement.

The concessionaire contract, Nexbis noted, “is legally binding and Nexbis will exhaust all avenues to ensure that its interest is protected in this matter.”

“Nexbis’ international lawyers have been building a libel and defamation case since the media frenzy to enable legal proceedings against certain individuals and institutions that have wrought irreparable damage to Nexbis’ reputation and brand name,” the company stated.

“In addition, we will be suing for compensation for collateral and consequential damages that arise as a result of direct or indirect implied allegations by individuals or institutions. We have gathered significant and indisputable information to mount a successful case and will be taking action.”

Mohamed Zuhair, Press Secretary for President Mohamed Nasheed, said “I agree that this is a negative development, and that Nexbis should consider going to court seeking redress [for the] delays.”

“The ACC has only said that there were ‘instances and opportunities’ where corruption could have occurred, but said they were not sure if it did happen and issued an injunction.”

The President, Zuhair emphasised, had “simply stated that he will cooperate with the ACC”, and “has not insinuated that corruption is involved [in the Nexbis deal].”

He added that the country’s independent institutions – and its judiciary – had been formed during an opposition majority.

“For all the government’s good intentions, the independent institutions have yet to do anything to accelerate the government’s efforts to provide prosperity for the public,” he claimed.

Zuhair pressed for patience, noting that “it is difficult for the government at the timebeing, during local council elections. These are problems not unique to the Maldives, and foreign investors should take heart in the democratic process we have brought in. On a good day, the ACC is in favour of foreign investment.”

He acknowledged the scope of the problem that the agreement was intended to address.

“Expatriate workers get hit twice – they pay agents in the country of origin, then come and pay an agent here, or even the employer. It is illegal and it has been going on for 30 years – there is now an ingrained culture [in the Maldives] of taking advantage of the hiring of expatriate workers to make money from them.”

“I am confident justice will prevail,” he added.

Minister of Economic Development Mahmoud Razee acknowledged that the situation with Nexbis was “unwelcome”, but said the Ministry “believes investors conduct due diligence on political risks in an emerging democracy with a lot of fluidity.”

“The government of the Maldives will continue to promote democracy and stabilise the economy to attract investors,” he said.

Nexbis appeared less convinced, and warned of potential ramifications to foreign investment in the Maldives should investors become collateral damage in local politicking.

“The ultimate collateral damage will be to the Maldivian public in the long term as international investors will shy away from the country unless commitments made are honored,” the company said.

“A single default in the government’s commitment will have a long and lasting effect including a significant re-rating of the investment risk of the country.”

The Anti-Corruption Commission (ACC) was not returning calls despite numerous attempts over several days.

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Parliament rejects Auditor General nominee

Parliament today rejected the nomination of former Anti-Corruption Commission (ACC) President Ali Rasheed Umar for Auditor General, a post which remains vacant more than eight months after former Auditor General Ibrahim Naeem was contentiously removed through a vote of no-confidence.

Of the 69 MPs who participated in today’s vote, 34 voted against while 35 voted in favour, four short of the 39 votes needed for approval.

Press Secretary Mohamed Zuhair told Minivan News today that while the President’s Office will respect the parliament’s decision, the vote was marred by “political partisanship.”

Opposition MPs used their “brute majority” to reject a qualified candidate for political reasons, said Zuhair, adding that 35 votes in favour showed that Umar was “a popular nominee.”

In August, the parliamentary Public Accounts Committee (PAC) that evaluated the nominee awarded him an average of 62 marks based on a criteria of educational qualification, experience, initiative and vision, and integrity, below the 75 percent mark needed for committee recommendation.

At today’s sitting, opposition Dhivehi Rayyithunge Party (DRP) MP Ali Waheed said that parliament could not approve a nominee with 62 marks, urging President Mohamed Nasheed to consult with all political parties before putting forward nominations and “not just after internal discussions with those of a certain colour”.

Ali Waheed called on the government to nominate consensus candidates that all political parties could support.

In August, DRP MP Ahmed Nihan told Minivan News that Ali Rasheed Umar was dogged by “integrity issues” during his time at the ACC.

Former ACC member and the commission’s current President Hassan Luthfee is pursuing a defamation case against Umar in the civil court, after the ACC requested police to investigate Luthfee for allegedly leaking confidential information.

In July 2009, Luthfee sent a letter to the PAC containing information of an ongoing investigation into then-Auditor General Ibrahim Naeem, claiming that the ACC was hushing up the investigation.

Umar alleged that Luthfee was attempting to curry favour with opposition MPs to secure his nomination to the new ACC.

While President Mohamed Nasheed nominated Luthfee for the commission in June, he withdrew the nominee after the Attorney General filed a case against Luthfee for allegedly not completing a government bond in his time at the Auditor General’s Office.

However, parliament rejected President Nasheed’s substitute nominee and approved Luthfee to the commission.

Meanwhile in March this year, parliament dismissed Auditor General Ibrahim Naeem from his post after the ACC forwarded two cases for prosecution alleging that Naeem used an official credit card to purchase personal items and fund a private visit to the island of Thulhadhoo in Baa Atoll.

Naeem denied the accusations, claiming that the cases were an attempt to discredit his office, which had issued over 30 audit reports of government ministries and state institution alleging rampant corruption under the former government.

He further claimed that opposition MPs were trying to prevent his office from recovering stolen assets in overseas bank accounts.

“A lot of the government’s money was taken through corrupt [means] and saved in the banks of England, Switzerland, Singapore and Malaysia,” Naeem claimed.

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Citizen’s rights “crushed under foot”, Dr Saeed tells UK Law Society

Leader of the Dhivehi Qaumee Party (DQP) Dr Hassan Saeed has called on the UK-based Law Society to lead a mission to the Maldives to assess the erosion of the rule of law, in an interview with the organisation’s publication The Law Society Gazette.

Dr Saeed told the Society that President Mohamed Nasheed, “a former political prisoner dubbed the Maldives ‘Nelson Mandela’”, was dismantling the 2008 Constitution and trying to “crush citizens’ rights under foot”.

President Nasheed was establishing his own “public courts” to replace independent courts, the Society reported Dr Saeed as claiming, while “courts are suspended” and “judges assaulted.”

In the article, the Society’s president Linda Lee urged the Maldives authorities “to uphold and protect key constitutional principles.”

Minivan News contacted the DQP seeking clarification of the claims.

Regarding the assaults on judges, the party’s Secretary General Abdulla Ameen noted that following a ruling in a case concerning Juhmoree Party MP Gasim Ibrahim by Chief Judge of the Criminal Court Abdulla Mohamed, “a lot of people went outside [the judge’s] house and physically threatened him, and set his motorcycle on fire.”

Concerning the suspension of courts, “the government has created a culture of fear among the judiciary, and they have had to cancel sessions and hold emergency meetings because of the increase in tension.”

The government had breached the rights of individuals “by arresting people without warrants,” Ameen said, referring to the recent detention of People’s Alliance MP Abdulla Yameen on the Presidential Retreat of Aarah following accusations of bribery and treason.

He also criticised the government for leaking audio tapes appearing to implicate MPs for corruption, “despite the Constitution clearly protecting private conversations between individuals.”

Ameen said Dr Saeed had requested the Law Society send an independent delegation to investigate the issues, “but if any other [institution] is interested we would also welcome it.”

The President’s member on the Judicial Services Commission Aishath Velezinee has also appealed for the UN Special Rapporteur on Independent Judiciary and the International Committee of Jurists (ICJ) to send mediators to the Maldives.

Foreign Minister Dr Ahmed Shaheed said Dr Saeed’s claims in the Law Society article were “totally out of orbit.”

“One has to wonder what he is talking about – look at his own track record serving under former President Maumoon Abdul Gayoom [as Attorney General]. We are clearly making steady progress,” Dr Shaheed said.

“Claiming that judges are being assaulted is very irresponsible. I’m not aware of any case where a judge has been assaulted, and in such an event there are domestic remedies available,” Dr Shaheed said.

Regarding Dr Saeed’s claim that courts were being suspended, “that’s outrageous. I’m not aware of a single time this has happened.”

“When a lawyer becomes a politician, they must continue to respect certain professional ethics as well,” he said.

“They are out to tarnish [President] Nasheed’s image, and they have taken issue with his awards and his description as South Asia’s ‘Nelson Mandela’,” Dr Shaheed said. “I think this is a case of the green-eyed monster.”

The request by the Law Society that the government respect the rule of law was “a standard expectation and we respect it.”

“The government is not disregarding the law,” he said. “Look at the behaviour of the other [arms of state]. Parliament is trying to usurp the powers of the executive, and the judiciary is behaving very questionably.”

Working in such an environment, Dr Shaheed said, the President had been called upon to make “some very difficult judgments, such as [the detention and release] of MP Abdulla Yameen.”

Dr Saeed recently led a DQP delegation to the UK to present the opposition coalition’s case to UK politicians and international institutions, employing a PR company to arrange interviews with several organisations, including The Law Society. The trip was jointly funded by the opposition parties, Minivan News was told at the time.

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President Nasheed nominates Ali Rasheed Umar for Auditor General

The President’s Office has nominated former Anti Corruption Commission (ACC) President Ali Rasheed Umar as the new Auditor General.

A Dhivehi Rayyithunge Party (DRP)-led no-confidence motion in Parliament saw former Auditor General Ibrahim Naeem ousted from his post last month, shortly after he announced corruption allegations involving former president Maumoon Abdul Gayoom and senior members of both the former and current government.

Naeem was appointed as the first independent Auditor General in January 2008 by Gayoom, and his appointment was endorsed by the DRP-led Parliament. The post of Auditor General was created by Gayoom due to international pressure regarding the former government’s expenditure.

Umar was appointed president of the ACC in October 2008 and was head of the commission for eight months. Elections were then held for commission members, but he did not submit his name for the elections.

On 25 November 2008, Umar signed on behalf of the ACC, and Naeem as Auditor General, a Memorandum of Understanding (MoU) for technical cooperation activities between the ACC and the Auditor General’s office. Both organisations were to exchange information and work together to eliminate corruption and promote good governance and accountability.

Press Secretary for the President’s Office Mohamed Zuhair confirmed Umar has been nominated by the president and his name has been forwarded to Parliament.

Zuhair said the Majlis should make their decision on whether or not they will endorse his nomination within the week.

“He is a qualified accountant and headed the ACC,” Zuhair said, adding that during the new government’s first week in office, Umar wanted to investigate the President’s Office’s financial records. “He performed very well [with the ACC].”

Zuhair added that Umar has no political affiliations to any party.

An on-going defamation case against Umar is in the Civil Court. Former member of the ACC Hassan Luthfee pressed charges against Umar for defamation, after Luthfee was accused of leaking ACC information for his personal gain.

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