Tag: atolls ministry

Ruling party MP Nazim jailed for 25 years

The Supreme Court today sentenced ruling party MP Ahmed Nazim, a former close associate of the president, to 25 years in jail on corruption charges, stripping him of his parliamentary seat.

Nazim, an ex-deputy speaker of parliament, was found guilty of defrauding the state of MVR 1.4 million (US $91,400) by submitting bids on behalf of non-existent companies to supply 15,000 national flags to the now-defunct atolls ministry.

The conviction completes Nazim’s fall from grace at a time when the opposition has accused the government of targeting political rivals. Nazim, who helped President Abdulla Yameen found a party in 2008, appears to have fallen out of favour with the government.

The High Court in February 2013 acquitted Nazim on the basis that the witnesses, who had been his employees, were not credible, based on a Supreme Court precedent that testimony by accomplices to a crime is inadmissible .

However, the Supreme Court today unanimously ruled the employees were simply following Nazim’s orders in the scam, which took place in 2004.

Nazim’s downfall will trigger a parliamentary by-election in Meemu atoll Dhiggaru.

There are three more outstanding corruption charges against Nazim, which also involve the use of “paper companies” to win bids for the procurement of 220 harbor lights, sound systems for mosques and an additional 15,000 flags.

The police have previously said Nazim gained US$400,000 in total from the scams.

Police in October withheld the MP’s passport on unrelated charges of blackmail.

Tourism Minister Ahmed Adeeb at that time blamed Nazim for a damning report implicating him in a separate US$6million corruption scandal, and also accused Nazim of defamation following his refusal to support Nazim’s bid to become Speaker of parliament.

Scams

The scams, first flagged in an audit report in 2009, also involved ruling Progressive Party of the Maldives MP ‘Red Wave’ Ahmed Saleem and President Yameen’s half-brother Abdulla Hameed. Their cases are still pending at the High Court.

Saleem was the director of finance at the atolls ministry and Hameed was the minister at the time, while Nazim ran a company called Namira Engineering. Saleem and Hameed are charged with abuse of power and violation of state finance regulations.

During the original trial held at the Criminal Court, the then-employees of Nazim’s Namira Engineering testified under oath that they were instructed by Nazim to bid for the projects – however, the presiding judge concluded from their testimonies that they were responsible for the procurement fraud and therefore dismissed the testimonies against Nazim on all counts.

According to the audit report, documents of the company which won the bid, Malegam Tailors, showed that it shared the same phone number as Namira. Fast Tailors, another company that applied, also shared a different number registered under Namira.

Another company, Needlework Tailors, which submitted the bid, had an employee of Namira sign the documents under the title of general manager, while a fourth company named ‘Seaview Maldives Private Maldives’ did not exist.

Auditors noted that the Seaview bid documents had an exact date error also found in Fast Tailors documents, and said the error was sufficient to prove the same party had prepared both bids.

The prosecution began in late 2009 after police uncovered evidence that implicated Hameed, Saleem and Nazim in a number of fraudulent transactions.

At a press conference in August 2009, police exhibited numerous quotations, agreements, tender documents, receipts, bank statements and forged cheques showing that Nazim received over US$400,000 in the scam.

Police further alleged that MP Saleem actively assisted from the atoll ministry, while Nazim’s wife Zeenath Abdullah abused her position as a manager of the Bank of Maldives’ Villingili branch to deposit proceeds of the fraudulent conspiracy.

Police said Hameed as minister played a key role in the fraud by handing out bids without public announcements, making advance payments using cheques against the state asset and finance regulations, approving bid documents for unregistered companies and carrying out discriminatory treatment of bid applicants.

A hard disk seized during a raid of Nazim’s office in May 2009 allegedly contained copies of forged documents and bogus letterheads. Police alleged that money was channelled through the scam to Nazim, who then laundered cash through Namira Engineering and unregistered companies.

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State witnesses offered political posts for testimony, says MP Nazim

Ruling Progressive Party of the Maldives (PPM) MP Ahmed Nazim has alleged state witnesses were offered jobs in exchange for testifying against him in a corruption trial.

The former Deputy Speaker of Majlis was charged with four counts of corruption in late 2009 for allegedly conspiring to defraud the former Ministry of Atolls Development.

In February 2014, the High Court upheld the Criminal Court’s dismissal of all four counts of corruption.

The appellate court upheld the Criminal Court’s refusal to accept testimony by Nazim’s former employees, referring to a Supreme Court precedent which established that accomplices to a crime could not testify for or against an alleged partner to the crime.

Prosecutor General (PG) Muhthaz Muhsin appealed the High Court’s decision with the Supreme Court in July 2014, months after the 90-day appeal period expired.

“The two main state witnesses were bribed with political posts within the government. These charges are politically motivated,” Nazim told the Supreme Court today.

The atolls ministry scam – first flagged in a 2009 audit report – involved paper companies allegedly set up by Nazim to win bids for projects worth over US$400,000, including the fraudulent purchase of harbour lights, national flags, and mosque sound systems.

At the time, police alleged Nazim ordered his staff at Namira Engineering to set up paper companies to bid for public tenders, and channeled the money to Nazim through Namira and other unregistered companies

When Justice Adam Mohamed today asked state prosecutors why Nazim must be held responsible for fraud committed by Namira, state prosecutor Abdulla Rabiu pointed out the MP was the Managing Director of the company at the time and oversaw its daily activities.

All the money from the scam had gone to Namira’s accounts, he added.

Nazim’s employees had also testified they submitted bogus bids on the MP’s orders, in the name of nonexistent companies or in the name of other companies, without their knowledge, Rabiu said.

In response, Nazim’s lawyer Husnu Suood said an audit was necessary to prove the money was deposited into Namira’s accounts and claimed Nazim could not be held responsible for corrupt transactions carried out by the company.

Chief Justice Abdulla Saeed concluded today’s hearing stating the apex court would issue a verdict at the next hearing.

Nazim who was a close associate of President Abdulla Yameen appears to have fallen out of favour with the government, with the police withholding his passport on charges of blackmail in October.

Tourism Minister Ahmed Adeeb at the time blamed Nazim for a damning report implicating the minister in a US$6million corruption scandal. Adeeb accused Nazim of attempting to defame him due to his refusal to support Nazim’s bid for the Majlis Speakership.

At the Supreme Court’s first appeal hearing, Nazim told the court his former lawyers Adam Asif and Ahmed “Reynis” Saleem had said the current political environment was “too dangerous” to represent him.

Related to this story

Lawyers “afraid” to represent MP Nazim in Supreme Court corruption appeal

Adeeb “saddened” at PPM colleague’s attempts to link him with missing journalist

High Court upholds dismissal of corruption charges against deputy speaker of parliament

MP Nazim returns to Maldives, passport confiscated by immigration

Judge frees Nazim from all corruption charges: “acts not enough to criminalise”

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High Court upholds dismissal of corruption charges against deputy speaker of parliament

The High Court last Thursday upheld the Criminal Court’s dismissal of corruption charges against Deputy Speaker of Parliament Ahmed Nazim.

The ruling Progressive Party of Maldives MP was charged with four counts of corruption in late 2009 for allegedly conspiring to defraud the former Ministry of Atolls Development.

Shortly after the controversial transfer of presidential power in February 2012, the Criminal Court ruled that there was insufficient evidence implicating the MP in the alleged scam.

The Prosecutor General’s office appealed the decisions later that year at the High Court on the grounds that the Criminal Court refused to accept state witnesses.

The court of appeal ruled last week that the prosecution was unable to prove that Nazim’s employees signed bogus bid proposals on his instructions.

Moreover, the High Court referred to a Supreme Court precedent which established that accomplices to a crime could not testify for or against an alleged partner to the crime.

The scam – first flagged in an audit report released in early 2009 – involved paper companies allegedly set up by Nazim to win bids for projects worth several hundred thousands dollars, including the fraudulent purchase of harbour lights, national flags, and mosque sound systems.

At a press conference in August 2009, police exhibited numerous quotations, agreements, tender documents, receipts, bank statements, and forged cheques showing that Nazim received over US$400,000 in the scam.

A hard disk seized during a raid of Nazim’s office in May 2009 allegedly contained copies of forged documents and bogus letterheads.

Police alleged that money was channelled through the scam to Nazim who laundered cash through Namira Engineering – of which Nazim was the managing director – and unregistered companies.

Paper companies were allegedly formed using Namira’s equipment and staff to bid for public tenders announced by the now-defunct ministry.

According to the audit report,  evidence was uncovered linking those companies to Nazim with phone and fax numbers stated on the bidding documents registered under his address while the company shareholders were either working at Namira or relatives of Nazim.

Then-employees of Namira testified under oath that they were instructed by Nazim to bid for the projects – however, the Criminal Court judge concluded from their testimonies that they were responsible for the procurement fraud and dismissed their testimonies.

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High Court concludes hearings into deputy speaker’s corruption case

The High Court has concluded appeal hearings into one of four corruption cases concerning Deputy Speaker Ahmed Nazim. Today’s case was lodged by the Prosecutor General (PG) after the lower court had ruled Nazim innocent.

The hearing concerned charges of fraudulently collecting funds through a company owned by Nazim to buy sound systems for a mosque. The amount alleged to have been misappropriated by the deputy speaker in all four cases is alleged to be over US$400,000.

According to local media, High Court judges presiding over the case today said that there would be no more hearings unless the court needed to clarify further information.

Newspaper Haveeru has reported that, during today’s hearing, state attorney Abdulla Rabiu told the court Nazim had abused his authority as a company owner and had also used staff as accomplices.

Rabiu said that there was no need to press charges against the staff used in the corruption, however, and that only Nazim was to be held responsible.

Nazim’s defense lawyers had previously told the court that witnesses produced against him were company staff who had also been involved in the alleged fraud, and who therefore were not acceptable to the court as witnesses.

The state lawyer today responded to these claims by saying that the witnesses not been charged with any of the cases, noting that the constitution states everyone to be innocent until found guilty by a court of law.

Case history

In February 2012, the Criminal Court dismissed four corruption charges against Nazim. The decisions came just days after the controversial transfer of power on February 7 that brought former President Dr Mohamed Waheed to office. The court had then ruled that Nazim’s “acts were not enough to criminalise him”.

Along with Deputy Speaker Nazim, MP Ahmed “Redwave” Saleem, and Abdulla Hameed – both then ministers at the now-defunct Atolls Ministry – were charged in late 2009 on multiple counts of conspiracy to defraud the ministry.

The scam – first flagged in an audit report released in early 2009 – involved paper companies allegedly set up by the defendants in order to win bids for projects worth several hundred thousand dollars, including the fraudulent purchase of harbour lights and national flags, as well as mosque sound systems.

According to the report, the documents of Malegam Tailors – the company which won the bid for the harbour project- showed that it shared the same phone number as another of Nazim’s companies, Namira.

Fast Tailors, another company that submitted a bid, also shared the phone number registered under Namira.

Anther company – Needlework Tailors – which submitted the bid, had an employee of Namira sign the documents under the title of general manager, while there were no records to prove that a fourth company named ‘Seaview Maldives Private Maldives’ existed at all, according to the audit report.

The auditors noted that the Seaview bid documents had an date error also found on Fast Tailors documents. According to the auditors, the error was sufficient to prove the same party had prepared both company’s bids.

The prosecution began in late 2009, after police uncovered evidence that implicated Hameed, Saleem, and Nazim in a number of fraudulent transactions.

At a press conference in August 2009, police exhibited numerous quotations, agreements, tender documents, receipts, bank statements, and forged cheques showing that Nazim had received over US$400,000 in the scam.

A hard disk seized during a raid of Nazim’s office in May 2009 allegedly contained copies of forged documents and bogus letterheads. Police alleged that money was channeled through the scam to Nazim, who then laundered cash through Namira Engineering and unregistered companies

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High Court concludes hearings of Deputy Speaker Nazim’s case ahead of final verdict

The High Court today concluded hearing witness statements in the state’s appeal of Deputy Speaker of Parliament Ahmed Nazim acquittal by the Criminal Court on charges of corruption, ahead of delivering a final verdict at a later date.

Nazim stands accused of receiving more than US$400,000 through fraudulent transactions made by a company he was found to own.

At today’s hearing, the prosecution lawyer noted that the Criminal Court had previously dismissed the testimonies of witnesses submitted by the state against Nazim. The High Court would now decide on whether to take the witness statements into account before a final verdict on the case is delivered.

The Criminal Court ruled in February last year that the witnesses submitted to the court were all staffs at a company called NAMIRA, which is owned by Nazim and at the centre of the alleged corruption.  The court concluded at the time that staff involved in the alleged fraud could not be presented as witnesses and dismissed their statements.

At today’s hearing, the prosecution lawyer was reported as stating to the court that it was apparent that staff at NAMIRA had not benefited at all from the alleged corruption. The lawyer argued that they therefore would not have had any involvement in the case had they not been asked by Nazim himself.

Before concluding today’s hearing, the presiding judge announced that unless the court required clarification on any further details of the trial, a verdict on the case would be delivered during the next hearing.

Deputy Speaker Nazim was not responding to calls at time of press.

In late 2009, Nazim was charged with multiple counts of conspiracy to defraud the former Atolls Ministry.

However, in February 2012, the Criminal Court dismissed the case against Nazim and ruled that there were no grounds to prosecute him.

The alleged corruption at the centre of the trial – first flagged in an audit report released in early 2009 – involved paper companies allegedly set up by the defendant to win bids for projects worth several hundred thousands dollars.

The case began in late 2009, after police uncovered evidence that implicated Nazim in a number of fraudulent transactions.

At a press conference in August 2009, Chief Inspector Ismail Atheef said police had uncovered evidence that implicated Nazim in fraudulent transactions worth over US$260,000 (Mrf 3,446,950).

Police exhibited numerous quotations, agreements, tender documents, receipts, bank statements and forged cheques proving that Nazim received over US$400,000 in the case.

A hard disk seized during a raid of Nazim’s office in May 2009, allegedly contained copies of forged documents and bogus letter heads.

Police further alleged that MP ‘Red Wave’ Saleem actively assisted from the atoll ministry. Meanwhile, Nazim’s wife, Zeenath Abdullah, was accused of abusing her position as a manager of the Bank of Maldives’ Villingili branch to deposit proceeds from the scheme.

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PG’s Office to send Nazim fraud cases to the High Court

The Prosecutor General’s (PG) Office has appealed cases concerning the alleged involvement of Deputy Speaker Ahmed Nazim in defrauding the Atolls Development Ministry to the High Court, reports Haveeru.

The case, which was dismissed by the Criminal Court in February, involves a 2004 deal to purchase harbour lights worth Rf1.95 million (US$126,000) on behalf of the now defunct ministry.

The PG’s office has told Haveeru that it intends to appeal a further four cases previously brought against Nazim.

The judge at the time of the dismissals concluded that Nazim’s “acts were not enough to criminalise” him legally.

If Nazim had been found guilty, he would have been ordered to pay a total sum of Rf5,315,618 (US$345,170) paid by the state for the projects and sentenced to between one to six years imprisonment.

Under provision 131 of the penal code, an extra month will be added to the jail sentence for every additional Rf1,000 (US$65)  if the fraudulent transaction exceeds Rf100,000 (US$6,493) .

In an interview with local media outlet Sun following the rulings, Nazim claimed the four cases were baseless and had been leveled at him by former President Mohamed Nasheed’s administration, using false evidence.

“Today we are guaranteed of the existence of an independent and trustworthy judiciary. Former President Nasheed and the MDP will now believe we have an independent judiciary, because they know that the four cases were schemed with manufactured evidence. These are are absolutely untrue and baseless cases,” he said.

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Corruption trial of Deputy Speaker postponed to November: Criminal Court

The Criminal Court of the Maldives has postponed the trial of Deputy Leader of the People’s Alliance (PA) and Deputy Speaker of the parliament MP Ahmed Nazim to November this year.

A statement from the Criminal Court said the delay in the trial, which began earlier this year, was caused by a “lack of information and necessary documents from the Home Ministry.”

The Criminal Court said it had now received the necessary pending document and that the trial would resume on November 9.

The Criminal Court attempted to summon Nazim in July, however he was being held in police custody and failed to receive the summons, the statement said, adding that it was only able to hold two of the scheduled five hearings.

In May last year police raided Nazim’s office, seizing a number of documents and hard drives as part of a special operation to investigate allegations of corruption.

In August last year, police concluded investigation into corruption charges concerning the former Atolls Ministry and sent five cases to the prosecutor general’s office.

On conclusion of the investigation, police charged former Atolls Minister Abdulla Hameed and Nazim with corruption, with Chief Inspector Ismail Atheef alleging that numerous quotations, agreements, tender documents, receipts, bank statements and cheques had been forged, and that Nazim had personally benefitted from over US$400,000 in fraudulent transactions.

Police investigations  focused on three main points in the ministry’s audit report for 2007 and 2008: the purchase of mosque sound systems for over US$138,000; the purchase of 15,000 national flags for over US$110,000; and the purchase of 220 harbour lights at a cost of over US$151,000 from businesses with close ties to Nazim.

According to Atheef, Eydhafushi MP Ahmed ‘Redwave’ Saleem, who was director of finance at the ministry at the time, actively assisted the scam.

Saleem has now joined the ruling Maldivian Democratic Party (MDP).

“In these cases, money laundering was involved,” Chief Inspector Ismail Atheef told Minivan News last year.

“I wouldn’t say money from these transactions was directly deposited to the accounts of Abdulla Hameed or Ahmed Saleem.’’

Police claimed Hameed played a key role in the fraud by handing out bids without public announcements, making advance payments using cheques against the state asset and finance regulations, and approving bid documents for unregistered companies and discriminatory treatment of bid applicants.

The first two cases of the ministry’s audit report reported by police revealed similar fraudulent transactions to purchase 150 harbour lights for over US$157,000 and the purchase of 15,000 national flags worth US$110,000.

Nazim has previously pleaded not guilty to charges of conspiracy to defraud the former ministry.

During a hearing in March, State Prosecutor Abdullah Rabiu said Nazim was Managing Director of Namira Engineering and Trading Pvt Ltd when the company’s equipment and staff were used to create fake letterheads and submit proposals on behalf of unregistered companies.

More recently in July this year, Nazim and Maldivian Democratic Party (MDP) MP Mohamed Musthafa were arrested on suspicion of bribing MPs and a civil court judge, however Chief Judge Abdulla Mohamed ruled that there were no reasonable grounds to grant an extension of the MPs’ detention based on the evidence presented by police.

“Both of them were arrested last night on charges of bribing a civil court judge. According to the information we have, they offered US$6,000 and a two-way ticket for a trip abroad, and exerted influence on a civil court case,” claimed the police lawyer in court.

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