Tag: civil service commission

“Time for everyone to tighten their belts”: Finance Minister Jihad

Minister of Finance and Treasury Abdulla Jihad has said the state must brace to enact austerity measures in the long-term if authorities are to address the country’s fiscal deficit – with further budget cuts anticipated in all government departments over the next 12 months.

Jihad has told Minivan News that previous commitments by government institutions to cut their budgets by 15 percent would need to be followed by further reductions to state and civil service spending in next year’s budget, regardless of financial assistance secured from China and India.

The minister’s comments were made as Parliament’s Finance Committee – reconvening for the first time since July – agreed this week to provide an additional MVR 12 million (US$780,000) in budget to the Auditor General’s (AG’s) Office, according to local media.

Auditor General Niyaz Ibrahim said that under the existing state budget, an agreement was reached that an additional MVR 58.8 million (US$3.8 million) would be provided to the AG’s Office, though it was decided to request a smaller proportion of these funds, the Sun Online news service reported.

People’s Aliance (PA) party MP and Finance Committee Chair Ahmed Nazim was not responding to calls from Minivan News at the time of press.

However, Jihad claimed that the decision to provide the extended budget was a “concern” considering the state was not getting enough direct revenue at present to justify its spending.

“We need to be fair when it comes to the budget, everyone should have to follow the same rules,” he claimed. “Otherwise this would mean that I could only reduce the budget of the Finance Ministry in future. It is time that everyone should tighten their belts.”

According to Jihad, provisions for the extension of funds to the AG’s Office had been included in the state budget, but he claimed that the country needed to work together in reducing state spending where possible.

Regarding claims that further cuts to the state budget wuld be required during the next 12 months, Chairman of the Civil Service Commission (CSC) Mohamed Fahmy Hassan said that it had “managed” with the 15 percent cuts already made to its expenditure.

Fahmy added that as no request had so far been made by the government to reduce the size and budget of civil society organisations, it did not have concerns about potential job cuts.

“Our mandate is to provide human resources to the government. As long as there is no effect on the salaries or number of civil servants, we will not seek to intervene in the policy of government,” he said.

With state income lower and expenditure higher than predicted, this year’s budget deficit had been forecast to reach MVR9.1billion (US$590 million), equivalent to around 28 percent of nominal GDP.

Financial assistance

In the last few months, authorities in India and China had both pledged to provide financing to the Maldives. Finance Minister Jihad said that of these funds, US$25 million being provided by India would be put into “budget support” to try and address state spending. A large amount of the funding meanwhile from China, which would total US$500 million, was expected to be put towards development projects such as housing construction, the Finance Ministry added.

The Indian government had announced that it would be granting the Maldives an additional as part of the US$100 million standby credit facility agreed last year under the previous government.

China has also pledged funding to the government of President Dr Mohamed Waheed Hassan following an official state visit to the country.

The loans, equal to nearly one quarter of the Maldives’ GDP, are said to include $150 million (MVR2.3billion) for housing and infrastructure, with another $350million (MVR5.4billion) from the Export-Import Bank of China, reported Reuters.

Jihad has maintained that the state still needs to reassess where further spending cuts can be made going forward.

Just last month, the Finance Ministry forwarded proposals it claimed would cut MVR2.2billion (US$143million) form the national budget.

The austerity measures include raising Tourism Goods and Services Tax (TGST) to 15 percent,  terminating electricity subsidies in Male’, increasing import duties on alcohol and imposing a 3 percent  duty on oil, “reforming” the Aasandha health insurance scheme, and reducing the budget of every Ministry and independent institution by 15 percent – among other measures.

The original budget for 2012 envisioned that revenue would rise to MVR11.4billion (US$740million) with expenditure anticipated to be MVR14.5 billion (US$941million). This would have resulted in a budget deficit of around MVR3billion (US$194million), representing 10 percent of GDP.

However, several resort managers voiced concern at the time that the proposed revenue amendments would serve only to  affect the financial viability of the country’s tourism industry, while providing little improvement in service or support in return.

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Police send CSC Fahmy’s sexual harassment case to Prosecutor General

Police have concluded their investigation into the alleged sexual harassment of Civil Service Commission (CSC) head Mohamed Fahmy, and have forwarded the case to the Prosecutor General’s Office.

Police Spokesperson Sub-Inspector Hassan Haneef told Minivan News that the case was forwarded to the Prosecutor General yesterday afternoon, after closing the investigation into the case.

Haneef said the police requested the PG press charges against Fahmy.

In June, Parliament’s Independent Institutions Committee launched an investigation into alleged harassment of a female staff member by the CSC Chair after a senior research officer at the CSC accused him of sexually harassing her.

Both Fahmy and the victim were summoned to committee after the complaint was lodged in the first week of June.

Fahmy was alleged to have called the female staff member over to him, taken her hand and asked her to stand in front of him so that others in the office could not see, and caressed her stomach saying ”it won’t do for a beautiful single woman like you to get fat.”

According to local media, the woman told her family about the incident, who then called Fahmy. Fahmy then sent her a text message apologising for the incident, reportedly stating, ”I work very closely with everyone. But I have learned my lesson this time.”

Speaking to Minvian News at the time, Fahmy said the allegation was false “and a blatant lie.”

“The female staff member concerned did not win a scholarship to Singapore, and that is why she is doing this in return,” Fahmy said.

The Independent Institutions Oversight Committee of the parliament concluded an investigation into the case and found Fahmy guilty, and asked him to resign within 14 days.

However Fahmy decided not to resign and the committee opted to forward the case to the parliament floor.

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Finance Ministry orders all institutions to pay back former govt’s civil servant salary cuts

The Finance Ministry has today issued a circular informing all institutions to pay the amount cut from civil servants from January 2010 to December 2012 by the former government, staring from July onwards.

The circular said the money should be paid monthly and not in a lump sum, and advised all institutions to pay the amount from the annual budget for wages. If the money in budget was not enough, the finance ministry advised the institution to cut the money from the budget allocated for other expenses.

The circular was signed by the Ministry’s Financial Controller, Mohamed Ahmed.

The reduction in civil servant pay was introduced by the previous government in an attempt to manage a financial crisis back in 2009. The initial deduction, agreed between the Finance ministry and the Civil Service Commission (CSC), was only due to last for three months until the government’s income had risen above Rf7billion (US$544 million).

However, after the Finance Ministry refused to restore wages to the previous level, the CSC took the case to the courts.

The Civil Court ruled that the Finance Ministry did not have the authority to reduce the salaries, a cut of up to 20 percent in some cases. The CSC at the time interpreted this as a decision to restore the deducted salaries, a decision upheld by the High Court in May of last year.

In April this year the Civil Service Commission said the wage repayments, amounting to Rf443.7 million (US$28.8 million), will be disbursed in monthly installments over 12 months from July 1 this year. This money has not been accounted for in this year’s state budget, the deficit of which has already drawn concern from the International Monetary Fund.

In January 2010 the International Monetary Fund (IMF) warned that international funding to the Maldives would be threatened if civil servant salaries are restored to former levels.

“One of the primary drivers of the large fiscal deficit has been government spending on public wages, which has more than doubled between 2007 and 2009, and is now one of the highest in the world relative to the size of the economy,” Rodrigo Cubero, IMF mission chief for the Maldives said at the time.

“Measures that would substantially raise the budget deficit, such as a reversal of previously announced wage adjustments, would also put the program off track, jeopardising prospects for multilateral and bilateral international financing,” he warned.

The Maldives is currently facing a foreign currency shortage, plummeting investor confidence, spiraling expenditure, a drop off in foreign aid and a crippling budget deficit of 27 percent.

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Independent Institutions Committee investigating CSC Chair for alleged sexual harassment

Parliament’s Independent Institutions Committee has launched an investigation into alleged harassment of a female staff member by the Civil Service Commission (CSC) Chair, Mohamed Fahmy.

Local newspaper Haveeru reported that the incident occurred on May 29 and the victim was a female senior research officer.

According to the paper, both Fahmy and the victim were summoned to committee after the complaint was lodged in the first week of June.

Fahmy was alleged to have called the female staff member over to him, taken her hand and asked her to stand in front of him so that others in the office could not see, and caressed her stomach saying ”it won’t do for a beautiful single woman like you to get fat.”

According to local media, the woman told her family about the incident, who then called Fahmy. Fahmy then sent her a text message apologising for the incident, reportedly stating, “I work very closely with everyone. But I have learned my lesson this time.”

Speaking to Minvian News today, Fahmy said the allegation was false “and a blatant lie.”

“The female staff member concerned did not win a scholarship to Singapore, and that is why she is doing this in return,” Fahmy said.

He alleged the claim was politically motivated issue, as she would have otherwise filed the case with police and not parliament.

“All I have to say is that it isn’t true,” he added.

Police Sub-Inspector Hassan Haneef said the police cases database did not show that the case had been reported.

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Government condemns obstruction of ACC investigation, calls on Civil Service Commission to investigate

The government has condemned the obstruction of an Anti-Corruption Commission’s (ACC) investigation into the Immigration department, after immigration staff allegedly locked the investigators in a room, and called on the Civil Service Commission to investigate.

Speaking to Minivan News, President’s Office Spokesperson Abbas Adil Riza said the government believed it is very important for the Civil Service Commission to look into the matter in order to prevent future obstructions to investigations by civil servants.

The offices of the Department of Immigration and Emigration were raided on Thursday by ACC officials with police assistance. The anti-corruption authority seized 75 laptops from the immigration offices, which it alleged had been provided to staff by Nexbis. Immigration staff told local media the laptops were part of the project being rolled out by the security firm.

The ACC accused immigration staff of obstructing and intimidating ACC officials during their investigation of the department, and said it would file a case.

The Nexbis contract – a 20-year Build, Operate and Transfer (BOT) agreement to upgrade the Maldives’ border control security system – was signed with Nexbis during the previous administration by President Mohamed Waheed’s brother in-law Ilyas Hussain Ibrahim, who served as the Controller of Immigration and Emigration at the time.

The day after the concessionaire contract was signed, the ACC announced it had received “a serious complaint” regarding “technical details” of the bid, and issued an injunction pending an investigation into the agreement citing “instances and opportunities” where corruption may have occurred.

The ACC in December 2011 forwarded cases of corruption against Ilyas Hussain Ibrahim and former Director General of Finance Ministry, Saamee Ageel to the Prosecutor General’s Office (PG) .

The ACC alleged the pair had abused their authority for undue financial gain in giving the US$39 million Border Control System project to Malaysia’s Nexbis Limited.

Ilyas was reappointed as the Controller of Immigration and Emigration in February after President Waheed came to power. However, the President on Thursday transferred Ilyas Hussain to the Defense Ministry as the Nexbis case intensified, following the ACC’s raid.

“The President decided to transfer Ilyas as he is under investigation in an alleged corruption case,” confirmed Riza. “It is in the best interest of the situation as his name is everywhere these days.”

The ACC was not responding at time of press.

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Budget awaits Supreme Court ruling on unpaid salaries and allowances

The proposed 2012 State Budget has been reviewed by a parliamentary committee and does not include unpaid civil servants’ salaries and allowances.

Committee Vice Chair Hinnavaru MP Ibrahim ‘Ibu’ Mohamed Solih said inclusion of the unpaid salaries depends on a favorable Supreme Court ruling.

If the court rules in favor, a supplementary budget should be submitted for parliamentary approval within 30 days, Haveeru reports.

Inclusion prior to the ruling would render the current proposal “useless”, Solih said.

The Civil Service Commission (CSC) last month requested the committee to include the unpaid salaries and allowances (total value of Rf443,653,634.89) in the 2012 budget.

The Supreme Court is expected to publish its verdict soon.

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CSC suspends five senior DPRS officials for disclosing information

The Civil Service Commission (CSC) has suspended five high-ranking officials of the Department of Penitentiary and Rehabilitation (DPRS), pending an investigation into alleged multiple violations of the Civil Service Act by disclosing official information at a press conference.

CSC Chair Mohamed Fahmy Hassan confirmed that the Home Ministry was informed of the decision today.

DPRS Director Saud Abdul Kareem, Deputy Director Hassan Waheed, Assistant Superintendent Mohamed Asif, Asseyri Jail Senior Prison Officer Mohamed Tholal and Maafushi Jail Senior Prison Officer Ibrahim Nashid organised a press conference in their “personal capacity” on Sunday at the Trader’s Hotel.

The senior officials reportedly defended State Minister for Home Affairs Mohamed ‘Monaza’ Naeem, who is currently in charge of the department. The DRPS officials refuted claims in a petition submitted to the Home Minister alleging misconduct and abuses of power by Naeem.

In the petition, which was not signed ostensibly over fears of job security, Naeem was accused of using state vehicles for personal use and accompanying government officials and MPs on visits to jails.

The DPRS senior staff however claimed that department employees were not involved in drafting or submitting the petition, suggesting a hidden agenda behind the petition.

Local media reported this week that a complaint had been filed at the Anti-Corruption Commission (ACC) alleging that Naeem did not sign the attendance books either during his time at North Central Province Office or currently at the DPRS.

Meanwhile at Sunday’s press conference, DPRS Director Saud also defended Naeem from serious issues flagged in a compliance audit report recently made public by the CSC. Saud argued that the problems identified in the report dated from before Naeem took over from former Director General Mohamed Rasheed.

Based on the findings of the compliance audit, Rasheed was given a three-month notice and suspended by the CSC pending an investigation.

The senior officials revealed at the press conference that complaints of corruption under Rasheed were lodged at the Human Rights Commission, CSC and ACC.

A day after the press conference, the CSC issued a press statement noting that according to article 28(b) of the Civil Service Act a civil servant could not disclose information about the office or its employees learned in his or her official capacity.

The statement noted that civil service regulations specified procedures for civil servants to file complaints of legal violations or abuse of authority at the CSC.

Moreover, clause 17(a) of the regulations “stated in clear language that employees could not attend to personal matters during official hours.”

“If an employee is dissatisfied regarding a matter in his area of work, it must be solved in the way the regulations specify,” the CSC statement reads.

In addition, clause 26(g) of the regulations states that civil servants shall not defend the interests of a political appointee.

The statement contended that the press conference, which took place during official hours, was held in violation of both the Civil Service Act and civil servant’s code of conduct as well as “principles of a democratic society”.

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Compliance audit report flags corruption at DPRS

The Civil Service Commission (CSC) has flagged corrupt practices and a poor working environment in the compliance audit report of the Department of Penitentiary and Rehabilitation Services (DPRS) released last week.

The report was compiled between December 22, 2010 and January 10 this year to ascertain the level of compliance with civil service laws and regulations as well as the code of conduct. The DPRS report is the second compliance audit report to be made public following the Islamic Ministry’s report.

The report identified 46 problems in 16 areas that needed to be reformed, including alleged abuse of lower-ranked employees by senior officials, use of office vessels for personal use and salaries paid out to staff on holiday.

“We note that the department’s vehicles and sea vessels are used for personal purposes,” it reads. “The speedboat used at Maafushi jail sometimes comes to Male’, is not sent back for a whole day and is used to carry employees’ goods.”

Some employees meanwhile complained of sexual abuse, the report noted, “however nothing of the sort can be seen from the records. And we note that a mechanism to record such matters has not been established.”

Due to a lack of coordination between the human resources section and the budget section, the report found that salary payments were made to dismissed staff, employees on no-pay leave and employees with poor attendance.

The CSC noted that additional amounts paid out with the salary were deducted without “revealing details of the accounts and making the required amendments to the documents.”

“As a result, it is not possible to determine for what reason the amounts were deducted,” it states.

The report found that on occasion employees were not paid for overtime hours while senior employees filled out a slip to show that they arrived at the office on time after coming late.

Moreover, some employees at Maafushi jail were paid risk allowance after they were transferred to the main office at Male’. Conversely, employees transferred to the jail were not paid a risk allowance.

Employees also took longer than the one-hour lunch break during working hours and “going out to tea during official hours was common.” Some employees were paid salaries during official leave in violation of civil service regulations, it added.

The department “did not make adequate use” of over Rf400,000 allocated in the budget for training purposes.

“We note that employees are discriminated against in taking disciplinary measures,” the report observed, noting that records were not properly maintained.

The report also found that “a safe environment for staff has not been established at the Male’ jail.”

“The ladder that leads to the staff office is also used by inmates,” it noted.

DPRS staff and their responsibilities did not fit the administrative structure approved by the commission, it continued, and staff at Maafushi jail were also taking care of “administrative tasks, HR tasks, maintaining security at the jail, maintaining the jail office and cafeteria, carrying food, providing health treatment and performing as Imams at the staff mosque.”

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CSC releases compliance audit report of Islamic Ministry

The Civil Service Commission (CSC) has published the compliance audit report of the Islamic Ministry, the first report of its kind that has been completed by the independent commission.

The compliance audit report found that staff at the Islamic Ministry had been referred to with disparaging terms that could be considered as a form of injury or harm under the civil service regulation while some senior officials used inappropriate language against civil servants.

The report also noted the absence of clear procedures to help civil servants understand their duties at the ministry. Moreover, the report observed that there was no procedure to follow for reporting a civil servant if he or she had violated a law or regulation.

“Security officers and laborers have sometimes been used for employees’ personal work,” the report stated. “Employees have been misusing the internet as internet usage has not been regulated.”

Administrative policy of the ministry meanwhile did not adhere to civil service regulations, the report noted.

“All the required information that has to be in the salary slip is not included in the slip that staff receive,” the report read. “Staff have not been informed about overtime work procedure and employees working overtime have been paid the same amount that they are paid when they work on official days.”

The compliance report also found that allowances had been given to some employees without prior authorisation from the CSC.

“Staff have been shifted from one section to another not in accordance to the CSC regulations, while some staff have started work without signing the employment agreement,” it read. “Staff are not provided with all the amenities that civil servants should receive.”

It also noted that staff had been assigned work continuously for eight days without a break of 24 hours, and male employees were not attired in accordance with the civil service dress code.

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