Allegations in audit report “politically motivated, misleading, ill-informed, and anachronistic”: Dr Shaheed

Former Foreign Minister Dr Ahmed Shaheed has said allegations based around a 2010 Ministry of Foreign Affairs audit report claiming he illegally abused expenses are “politically motivated, misleading, ill-informed, and anachronistic.”

The audit report released this week alleged that a senior advisor to the Maldives mission to the UN in New York – hired under a two-year contract on August 30, 2010 when Dr Shaheed was Foreign Minister – left to work for Dr Shaheed in July 2011 upon his appointment as UN Special Rapporteur on Iran.

The report noted that such posts were neither part of the civil service nor considered political appointees, adding that the advisor was hired without a public announcement seeking qualified candidates.

Under the contract, the senior advisor was to receive US$2,672 a month as salary and allowances from September to December 2010 and US$3,672 a month from January 2011 onward.

However, on July 20, 2011, the Foreign Ministry sent a letter to the UN mission, the report noted, informing them that the advisor had been dismissed from the post as she would begin working for the Special Rapporteur on Iran “during the 6-month notice period”.

While approximately Rf800,000 (US$51,880) was spent out of the mission’s budget for salaries and benefits for the senior advisor, the report noted that “no information regarding the work could be seen from official documentation”.

“Misleading”

In an email to Minivan News, Dr Shaheed explained that the senior advisor was a foreign national who was an expert on international relations and diplomacy, slamming the audit report as “politically motivated and phrased to mislead the public.”

Shaheed claimed there would be “ample paper trail on the work she did for the Maldives from August 2010 to July 2011.”

“She was hired on the same basis as other expatriate advisors hired by the Maldives in diplomatic missions, and were political appointees,” he said, adding that the senior advisor resigned in July 2011 despite the audit report claiming the contract was terminated.

While the senior advisor began working for Dr Shaheed “pro bono” in August 2011, “this has nothing to do with the Maldives Mission. She or I have not benefited from any government facilities in our work,” Dr Shaheed insisted.

“It would have been normal for the Maldives government, having nominated me for the post of UN Special Rapporteur to assist me with my work, but this was not done,” he continued.

“If a letter was written by Minister Naseem to the Ambassador in New York to say that the Advisor who was sacked would be working for me, it would have been to indicate to the staff of the Mission that she was sacked immediately, rather than at the end of the 6-month notice period she was entitled to.

“Obviously, the Mission of Maldives in New York will have no record of any work done for me because she was not working in the premises of the Maldives mission, nor as its staff member.”

On the allegation that she was hired without a public announcement, Dr Shaheed said that she was “head hunted and had come in initially to run the campaign for the Human Rights Council which we won with flying colours in May 2010.”

“It as on this basis that she was hired in August, effectively in a bid to keep her from competitive offers of another diplomatic mission in New York. Advisors are not civil servants and are therefore political posts. A contract had to signed to meet with legal requirements of the United States,” he added.

On Rf235,001 (US$15,240) spent out of the office budget to pay the Foreign Minister’s mobile phone bill in 2010, despite parliament not having approved such an allowance for ministers, Dr Shaheed noted that the audit report referred to regulations passed by parliament on December 28, 2010, “two weeks after I resigned from office.”

“The old practice was for the government to pay the mobile phones of ministers,” he added.

Dr Shaheed served as foreign minister in former President Mohamed Nasheed’s administration from November 11, 2008 to December 12, 2010, when he resigned after not receiving parliament’s consent for his reappointment following the en masse cabinet resignation in July 2010.

Violations of public finance law

The Foreign Ministry’s 2010 audit report meanwhile highlighted 48 cases of alleged violations of the Public Finance Act and regulations under the law.

Among the issues raised in the report were discrepancies between the ministry’s financial statement and the Finance Ministry ledger; hiring of interns for the ministry and foreign missions without public announcements, including children and relatives of senior government officials; lack of details on Rf85.5 million (US$5.5 million) spent on foreign missions in 2010; incurring a fine of Rf28,862 (US$1,871) for unpaid utility bills; lack of “necessary internal controls” in accordance with public finance regulations on the ministry’s expenditures; and failure to properly maintain income records and stock inventories.

In April 2011, the report revealed, the Maldives embassy in China used approximately Rf600,000 (US$38,910) of free aid granted by the China Machinery Engineering Corporation (CMEC) to purchase a “Hyundai Santa Fe” vehicle with an additional Rf100,000 (US$6,485) from the embassy budget.

Moreover, in June 2011, the embassy in China sold a car registered to it without prior approval and has not deposited the proceeds from the sale to the state’s revenue account as of the report’s publication date.

The audit also discovered that the ministry spent in excess of the approved accommodation, travel and utility allowances for senior staff at foreign missions.

Furthermore, a total of Rf494,293 (US$32,055) was spent on mobile phone bills for senior staff at the ministry although it could not be determined whether all calls made from the 13 post-paid lines were for official purposes.

As some employees used roaming services on overseas trips, the report noted, phone bills reached over Rf30,000 (US$1,945) in some months.

“Therefore, [the Auditor General’s Office] believes that this is an opportunity to misuse state funds without any control,” the report stated.

Addressing the irregularities raised in the audit, Dr Shaheed meanwhile argued that “some of the assumptions and conclusions are clearly false.”

“The report also fails to note or establish lines of financial accountability, unfairly exposing civil servants and politicians to unwarranted and malicious attacks on their reputation and integrity,” he said. “However, the report does identify a number of systemic deficits that need to be addressed too, and which do not result from lack of integrity of the persons involved,  and I am happy that a number of those matters have been highlighted.”

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“The country I want to go most eagerly is not safe anymore”: WEIBO China

In the poll “Has the coup affected your holiday plans in the Maldives?” hosted on a Chinese website on February 12, a little more than one third of the 8,107 votes chose “it has affected them more or less”, while one third of Chinese voters indicated “it has no influence on them”. Less than one third were unaware of the political situation.

Following the abrupt resignation of former president Mohamed Nasheed early last week China’s embassy in the Maldives, which opened in November, 2011, notified Chinese agencies and media outlets in an unofficial advisory that capital Male’ is currently unsafe for tourists and advised tourists to make only necessary trips to Male’.

“We have been trying our best to ensure Chinese nationals’ personal safety. Tourists reach the international airport and then can directly go to the resort. They will be safe on the resorts,” said Sun Jianbo, Second Secretary of China’s Embassy in Male’.

“As far as I know, no harm to Chinese tourists has been caused by these political events yet,” he added.

In 2011, China rose to become the No.1 source of tourism, surpassing the Maldives’  traditional European market with over 700,000 arrivals last year. The jump in business has re-shaped the industry- local travel agencies and resort staff are now keen to hire Mandarin speakers and are working to stay current on Chinese cultural habits.

Although many have projected that China will remain a stable, even growing partner in tourism, the Chinese market was quick to respond to what Nasheed’s government has called a coup d’etat on February 7.

A few Maldivian travel agencies who work closely with the Chinese market told Minivan News that the current politics has started to influence their bookings. “Quite a lot of Chinese customers are very concerned of this situation. Some of them are hesitant to make reservations now,” said Emy Zheng, a Chinese national working at Villuxa Holidays. She noted that only a few bookings have been cancelled, while several others have tried to postpone their holiday.

Zheng suggested that most Chinese nationals responded well to explanations of the situation, and assurances that the Maldives one-island one-resort mantra guarantees vacationers distance from local events.

“I told guests about the real life in Male’, which is more reliable than news they get from media in China. Some friends in China are very worried about my life here after seeing news on TV, but personally I don’t feel threatened living in Male’ as my friends and I just stay at home after work,” Zheng explained, adding, “I don’t think many Chinese have the access to know the real life here.”

Like Zheng, many Chinese national workers in Male’ have stuck to their routines. For them, the tourism industry has only been minimally affected. In China, however, travel agencies say the market is taking a heavy hit.

Shanghai travel agent Sun Yi said she was faced with many cancellations just two days after the coup. ”It has seriously affected our business. Many guests cancelled the Maldivian holiday package which used to be very popular,” she explained.

Yi continued that her company has also decided to suspend its plan to hold a commercial event at a Maldives resort this spring.

Although a Chinese tourism industry professional on the marketing of holiday destination Maldives, Yi has not yet visited the country. She said she is very worried about the current state of affairs.

Social media suggests that the average Chinese traveler is barely informed.

Before most Chinese media outlets had reported news of the Maldives’ change of government, travelers-to-be noticed a post in WEIBO (Chinese version of Twitter) by Maldives resort-based Chinese diving instructor Jai He.

Mr. He received the news of Nasheed’s resignation while watching national television during his lunch hour on Male’. After posting the news on WEIBO he was immediately contacted by a few Chinese media.

But now, a WEIBO search for “Maldives” yields only a few incomplete statements of the actual events; most posts voice poetic concerns of a tainted dream holiday or honeymoon, or an exaggerated description of the current situation in paradise.

One forum user wrote, “Fires of war are burning through the country. The country I want to go most eagerly is not safe anymore.”

Among the posts the word “democracy”- a concept politicians on both sides of the divide are using as weapon and shield – was uncommon.

WEIBO has undoubtedly become a platform for some Chinese to enjoy a moderate amount of free speech. While the Maldives is a definite topic of conversation, WEIBO users are more concerned with the damage to their holiday dreams than the threats on Male’s streets- or the connection between the current change of government and China’s own so-called “democratic centralisation”.

But the government is more cautious.

While the US and India have recognised the Maldives’ new regime under former Vice President Dr Mohamed Waheed Hassan, China has not officially expressed any political leaning.

Second Secretary Jianbo told Minivan News he had no idea what would happen to the regime, but “things seem to gradually be calming down now as the new government has appointed new officers today.”

In spite of the uncertainty, the Chinese tourism board has not issued a travel alert for the Maldives.

“We are not able to release anything now towards the current situation until the Chinese
foreign affairs department speaks,” Sun said, indicating that more information would be available in a few days’ time.

“The Embassy’s most important function is to maintain and deepen the two countries’ relationship,” Sun explained. Asked whether China will continue to foster a close relationship with the new government, Sun said, “No comments”.

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