Tag: corruption

MP witnesses summoned to PG Office for questioning in vote-buying corruption case

The Prosecutor General’s Office has reportedly summoned MPs involved in bribery allegations concerning Jumhoree Party (JP) MP Gasim Ibrahim to present for questioning.

Police detained Gasim and People’s Alliance (PA) MP Abdulla Yameen in early July 2010 on accusations of bribery and, according to the police charge sheet, “attempting to topple the government illegally.”

President Nasheed’s cabinet had resigned en masse the week prior, in protest against what they claimed were the “scorched earth politics” of the opposition-majority parliament, leaving only President Mohamed Nasheed and Vice President Mohamed Waheed Hassan in charge of the country. The move circumvented regulations blocking the arrest of MPs while no-confidence motions were pending against sitting ministers.

Several days later, audio recordings of conversations between several MPs, including Yameen and Gasim, were leaked to the media. The recordings carried implications of vote-buying within parliament, suggestions of collaboration with the officials in the Anti-Corruption Commission (ACC), and details of a plan to derail the progress of a taxation bill.

Later in July 2010, the President’s Press Secretary Mohamed Zuhair told Minivan News that the government had felt obliged to take action after six MDP MPs came forward with statements alleging Yameen and Gasim had attempted to bribe them to vote against the government.

At the time the opposition PA-DRP coalition had a small voting majority, with the addition of supportive independent MPs. However, certain votes require a two-thirds majority of the 77 member chamber – such as a no-confidence motion to impeach the president.

“These MPs are two individuals of high net worth – tycoons with vested interests,” Zuhair said at the time. “In pursuing their business interests they became enormously rich during the previous regime, and now they are trying to use their ill-gotten gains to bribe members in the Majlis [parliament] and judiciary to keep themselves in power and above the fray. They were up to all sorts of dark and evil schemes. There were plans afoot to topple the government illegally before the interim period was over.”

Local media reported this week that police had reopened the case against Yameen and Gasim, following a response by Police Inspector Mohamed Riyaz to a question from parliament’s Privileges Committee on the status of the investigation.

Riyaz clarified that while both MPs had been arrested over the matter, “we could find no evidence against Yameen. The bribery case only concerns Gasim.”

While bribery was the stipulated offence Riyaz observed that this was “not necessarily only money.”

Police sent the case to the Prosecutor General’s Office on August 2 last year.

Inspector Riyaz told Minivan News that the Prosecutor General had tried to summon the MPs who gave evidence in the case for questioning over the matter.

While it was “not common for witnesses to be taken to the PG’s office”, Riyaz said he hoped the MPs would cooperate with the PG’s office and clarify their statements. In the statements taken by police, the MPs were “quite clear” about what they had been offered, he added.

Zuhair today said that police had submitted “irrefutable evidence” that six members of parliament had been offered bribes, and that the Prosecutor General “should take the matter forward.”

“This is a very serious issue that last year led to the abrupt resignation of cabinet, and transpired to nearly stop the functioning of government,” Zuhair said.

The Prosecutor General was not responding to Minivan News at time of press.

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“Systemic failure to address corruption”: Transparency Maldives

The Maldives has risen slightly to rank 134 in Transparency International’s Corruption Perception Index (CPI).

The country scored 2.5 on a scale of 0 (highly corrupt) to 10 (very clean), placing it alongside Lebanon, Pakistan and Sierra Leone.

The score however is a mild improvement on 2010, when the Maldives was ranked 143th and below Zimbabwe. The Maldives still rated as having higher perceived corruption than many regional neighbours, including Sri Lanka (86), Bangladesh (120) and India (95).

Project Director of Transparency Maldives, Aiman Rasheed, warned that the ranking could not be compared year-to-year, especially in the Maldives where there were only a three sources used to determine the index (India has six).

“Corruption in the Maldives is grand corruption, unlike neighbouring countries where much of it is petty corruption,” Rasheed said. “In the Maldives there is corruption across the judiciary, parliament and members of the executive, all of it interlinked, and a systemic failure of the systems in place to address this. That why we score so low.”

Faced with such endemic and high-level corruption, it was “up to the people of the Maldives to demand better governance”, he said.

Addressing corruption would have political ramifications for the 2013 presidential election, Rasheed agreed, especially for young voters – 40 percent of the population is aged 15-24, resulting in thousands of new youth voters every year.

“Young people are hugely disillusioned by corruption in the Maldives. They have a vision of the type of country they would like to live in,” he said.

New Zealand, Denmark and Finland ranked as having the least perceived corruption, while North Korea, Somalia, Afghanistan and Burma ranked last.

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Electronic voting depends on public awareness in Maldives

The Maldives has expressed support for electronic voting systems in India and Pakistan, and is taking steps to introduce Electronic Voting Machines (EVMs) to its own electoral process.

At an informal meeting of Electoral Commissioners from SAARC member countries in India, the Maldives joined Bhutan, Afghanistan, Nepal and Sri Lanka in praising India’s use of EVMs and indicated that “legal amendments would be thought of to see that EVMs were made popular to ensure free and fair polls in their countries,” Indian news outlet The Hindu reported yesterday.

Commissioners met to discuss Afghanistan’s voting procedures in light of waning financial and other aid from NATO allies.

Maldives Elections Commission President Fuad Thaufeeq said the commission, which is developing a proposal for Parliament regarding EVMs, has met with the Committee on Independent Commissions to discuss their implementation.

“So far, we have been getting information from many countries in Europe, South America and Asia which have used these. Regionally, India, Nepal, and Bhutan have used the machines and we are also getting advice from them. Hopefully the system will work, but some laws will have to be changed and the public must support the decision,” said Thaufeeq.

Prior to the 2008 Presidential election, India had offered to donate several hundred EVMs to the Maldives. “But it was the wrong time,” said Thaufeeq. “The machines India was using could not do print-outs. This year, they upgraded and added a verification process. I think it’s necessary for the Maldives to have a verification system,” he said.

Thaufeeq indicated that the commission may approach India’s High Commission to renew their offer of donations. Otherwise, he said machines will be chosen through a negotiation process with various companies, and bids may be solicited.

Electronic and internet voting systems have been used worldwide for decades, and have triggered much debate.

India first used electronic voting machines in 1982; in 2002, they became an election standard nation-wide. However, India’s 2009 elections were discredited when Omesh Saigal, an IIT alumnus and IAS officer publicly proved that the electronic voting system may have been rigged.

In 2006, the Netherlands’ General Intelligence and Security Service proved that electronic voting machines could be eavesdropped from up to 40 metres. EVMs were subsequently eliminated.

Since the 2000 presidential election, the United States has reported problems with electronic voting machines in a number of local and national elections. Mis-punched cards, security flaws, and touch screen malfunctions were some factors that have tipped votes over the past decade.

Internet voting was proposed for the Maldives’ Parliamentary elections as a means of cutting costs and confusion for Maldivians living abroad. Project Coordinator at NGO Transparency Maldives Aiman Rasheed said the motion was swiftly rejected by Parliament, and although Transparency has not been officially informed of the discussion, doubts that EVMs will be treated differently.

Observing that EVMs are acceptable under the right conditions, Rasheed explained that the advantages of using EVMs in the Maldives did not justify the disadvantages.

“In a large country with dense population centers, they can be useful,” he said. “But the Maldives is so small, and population areas are so widely spread out, with only 400 polling stations I don’t think that they would be a major improvement.”

Rasheed said the disadvantages of EVMs could have a significant political impact, and believed the public should be involved in the decision.

“I think Parliament and the Elections Commission should carefully consider the cost-benefit. Is the quick count worth the room that the new system with EVMs would leave for accusations of fraud or lack of transparency?” he said, noting that Maldivians tend to have a high “trust deficit”, and pointing out that Maldivian law does not allow for exit polls.

Building public trust is driving the dialogue over EVMs in the Maldives. Dhivehi Rayyithunge Party (DRP) Deputy Leader Ibrahim ‘Mavota’ Shareef  agreed with Rasheed’s assessment.

“There is a lot of suspicion about new innovations that people are not familiar with. If done correctly, and people are informed, then EVMs shouldn’t be a problem for democracy in the Maldives,” he said.

However, Shareef observed that “any electronic machine with passwords can be corrupted,” adding that corruption is a higher risk for small communities. He recommended the Elections Commission “prove it cannot be manipulated” by issuing public education programs through the media.

“There is no public participation in the Election Commission’s discussion right now. Many islanders are unaware of how these things work. Without building trust, there will always be suspicion,” he said.

Rasheed explained that the “trust deficit” was a symptom of a young democracy.

“The Maldives’ biggest issue is that it has only had three free elections, and those were very recent. The latest Parliamentary and Presidential elections did very well under the circumstances, but the local elections have definitely declined in terms of transparency.”

Rasheed said that during these elections, political parties and NGOs sent volunteers to observe the electoral process, promoting transparency. Although new legal framework was implemented a mere one-and-a-half months prior to the Presidential election, and three months prior to the Parliamentary elections, “they did quite well,” said Rasheed.

Local elections, which had 18 months to prepare, performed well administratively “but they did not do so well in terms of transparency,” said Rasheed.

MDP MP Eva Abdulla also believes that free, transparent elections must be routinised before electronic modifications are made to the electoral process.

“I’m not sure if we are willing to move away from the physical voting system. It’s only been three years since we began trusting independent voting procedures,” she said.

Abdulla believes that Maldivians are quick to absorb new technology, but doubts that the advantages of EVMs are relevant to the Maldives.

Previously, island geography meant that counting and recording votes could take several days. “Now, officials count the ballots in front of the people on the same day, and we have our results immediately,” said Abdullah.

The Elections Commission has a different impression of the situation.

According to Thaufeeq, the average five to six hours that manual voting procedures involve is too long, and the costs of employing workers to manage the polls is too high. He said that while the transparency of open counting is important, there are significant advantages to electronic voting.

“Responses from MPs and the general public has indicated that people are more ready today than they were three years back. People are more familiar with technology right now, an EVM is similar to an ATM, which everyone can use,” said Thaufeeq. “But above all, we want the approval of Parliament and the public, to be sure that everyone is aware and comfortable with the system.”

Public examinability of voting procedures has been identified as an essential factor of free elections by government and independent groups worldwide.

In 2007, California Secretary of State Debra Bowen commission a statewide “Top to Bottom review” of electronic voting systems. According the report, every mechanism contained at least one security flaw that would allow a single non-expert to compromise an entire election.

In 2009, the Federal Constitutional Court of Germany found that when using voting machines the “verification of the result must be possible by the citizen reliably and without any specialist knowledge of the subject.”

Although the Maldives’ plans for implementing EVMs are far from concrete, the sentiments behind the suggestion are strong.

“Historically, the Maldives has had close elections with little information, which has generated suspicion of fraud,” Rasheed said. “If people can’t see what is happening, it will feed the country’s rising trust deficit.”

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Government misled by NDMC’s management of Moreway money

Senior members of Moreway Construction Company and the National Disaster Management Center (NDMC) have been implicated by employees of NDMC and the French Red Cross (FRC) for their alleged corrupt involvement in a 2005 Laamu Gan tsunami housing project.

“Moreway is a scapegoat for forgeries and fabrications committed by the Arif brothers Ahmed and Abdullah, and Mohamed ‘Dhigali’ Waheed,” alleged one member of the business community familiar with the individuals, who wishes to remain anonymous.

Dhigali is a former shareholder and current executive manager of Moreway Construction. Ahmed Arif owns Apollo Holdings Company, which has been linked to Moreway, while Abdullah Arif, formerly director of Moreway Arun Excello, today holds shares in Lotus Company.

The Anti-Corruption Commission (ACC) recently entered NDMC with police forensics experts to review files relating to a Rf18 million (US$1.16 million) payment issued to Moreway by the government in May. The ACC stopped a second payment of Rf15 million (US$973,000) in August on suspicion of corruption.

In 2005, the FRC tendered a US$7 million post-tsunami housing project for Laamu Gan, accepting bids from several companies, including Moreway, in a joint venture with Indian company Arun Excello and local company Aima. Although the project initially proposed 460 houses, complaints of insufficient conditions and finances prompted the FRC to reduce that number to 240.

NDMC Senior Project Manager Mohamed Waheed said Moreway’s complaints of insufficient financing and obstacles to construction prevented the company from fulfilling its contract, although at the time, claimed Waheed, imported materials were duty-free. A former employee of the French Red Cross, Adam, added that Red Cross site inspections and budget plans were nearly fool-proof. But “they were always demanding money from FRC, they had all kinds of excuses,” said Waheed.

Meanwhile, Arun Excello had abandoned the project mid-way due to frustrations with Moreway, incurring a loss of US$300,000.

Representatives at Arun Excello had not responded to inquiries at time of press.

After building 80 houses, Moreway’s contract was terminated by the FRC and the project handed over to Maldives Transport and Contracting Company (MTCC) under the government’s remit.

Moreway was subsequently sued by NDMC on behalf of the Maldivian government for losses incurred by the unfinished project. In November 2007, the Civil Court delivered a verdict requiring Moreway to pay US$2.3 million to the government and granting NDMC the right to sell Moreway property at their construction site if the money was not paid within one month.

Sources say the money, due four years ago, has not yet been paid.

“Misleading” letters

Although payments were released to Moreway this year by the Finance Ministry, Waheed claimed that the government has been misinformed.

On April 19, 2011, Deputy Minister of Housing and Environment Ahmed Zaki sent a letter to Finance Minister Ahmed Inaz stating that a sixth invoice submitted by Moreway in March 2007 had yet to be paid, and requested that the ministry release the funds.

In response, Inaz said budget constraints prevented the money being allocated to NDMC, “so, money is to be paid from the NDMC budget.”

Further letters obtained by Waheed illustrate government confusion around the issue. In what Waheed called “misleading letters” between the Finance Ministry and NDMC, NDMC personnel requested the government to pay expired contractor invoices for a project which it had not tendered. At Zaki’s suggestion, the Finance Ministry reallocated money for current housing projects in Dhuvaafaru and Vilufushi to facilitate these payments, which were made using the current dollar-rufiyaa exchange rate.

Although the first payment voucher, processed in May, required Mohamed Waheed’s authorisation, his name had been crossed out and replaced by Deputy Minister Adam Saaed’s, who authorised the voucher along with Zaki.

Asked why this had been done, Waheed speculated that “they thought I wouldn’t sign it, and since Saeed is a friend of Zaki’s they had him sign it. I don’t think he even knew about it, maybe he signed it without thinking much.”

Meanwhile, documents used to obtain these payments are in dubious standing. Waheed points out that only copies were submitted to the Finance Ministry. “Who will accept invoice copies these days? Not even a small child!”

FRC officials also pointed out that the invoices had long been considered invalid.

Emails exchanged between Waheed, FRC senior project manager Brett Campbell and FRC construction coordinator Xavier Chanraud confirmed that all legitimate invoices from Moreway had been paid in full by the time FRC closed its housing projects and left the Maldives.

Chanraud recently stated that, “The FRC has closed all of its housing projects in the Maldives years ago and has already paid 100 percent of its contracts value through NDMC, which includes all defect liability retentions to the contractors. I do not think those invoices are still eligible, especially if rejected four years ago by the NDMC for technical reasons.”

Campbell added that the Civil Court’s verdict against Moreway indicated that “not further payments were due to Moreway.”

In reference to requests for additional payments for access road construction, Campbell said those claims were “discussed at length” and “deemed to be a contractor’s cost.”

Then NDMC Chief Coordinator Abdulla Shahid allegedly rejected the invoices at the time on similar grounds.

“It is questionable how these invoices made headway into NDMC budget section [in 2011],” Waheed wrote in a statement. “These are not outstanding payments to Moreway as one would think and FRC does not recognise these invoices as pending.”

When the invoice for a second payment was authorised by Zaki and NDMC chief coordinator Sheikh Ilyas Hussain and submitted to the Finance Ministry, Inaz questioned its validity against Moreway’s pending debt to the government.

Zaki then took the invoice with comments from NDMC Finance Director Mohamed Shiyam’s desk and passed a new copy to someone else for processing, Waheed alleged. Copies of both invoices with clear discrepancies were shown to Minivan News in private interviews.

The Maldives’ current Red Cross affiliate office, the International Federation of Red Cross (IFRC), was unable to comment on the case.

A blind spot

Sources at NDMC and formerly the FRC agreed the previous regime’s corrupt reputation has left the current government with a blind spot.

“At the time, the government was too corrupt to get money for projects,” said Waheed. “So the FRC was funding the project, but after Moreway could not complete the project FRC left and the government stepped in.”

Government bias may have pervaded the project from the start, however. Moreway’s original bid was rejected over a fake bank guarantee, Waheed pointed out, and the company had to go to court to clear its name before re-submitting its bid.

“This is how things were done then, I don’t know why Moreway was selected but that was Gayoom’s regime,” he said.

Internal complications at the Red Cross were also rumored, although a source familiar with the operation could not confirm the reports.

For Adam, the central issue in the Moreway case is ignorance. “GoM does not understand the discrepancies in payments and procedures, and has not been properly informed of the project, so it is being charged for variations that were not approved by FRC,” he said.

According to Adam, the “local procedure” leaves project tendering and awarding to the Ministry and does not include consultants. It is “the only procedure Maldivians know,” and supports a “culture of embezzling state funds” whereby invoices are frequently submitted, rarely checked, and often paid.

FRC’s procedure is more meticulous and independent, Adam explained. Consultants are included in the bid review process, and officials at local and international FRC offices review projects alongside NDMC officials and consultants.

Had the government been more aware of FRC’s procedures, Adam said it would have noticed that the recently-paid invoice had not been signed by a consultant or passed through the review process at FRC.

The trickle-down effect

Distribution of the Rf18 million (US$110,000) is unclear. One source said it was obvious to anyone familiar with the business community that Dhigali “has profited personally, that he is a crooked businessman is known across the whole Maldives.”

A source familiar with the business community implicated Dhigali in a check fraud case involving companies Apollo and Lotus. The Arif brothers are currently shareholders in Lotus, and were allegedly issued a bad check by Apollo, in which Dhigali is a shareholder.

Other sources believe that anyone involved in processing the payments has also received a share.

The Arif brothers, said to have split associations with Dhigali earlier this year, were reportedly unaware that the payments were made. Ahmed Arif avoided scheduled interviews with Minivan News, and Dhigali did not respond to phone calls.

To date, Moreway’s debt of US$2.3 million has not been paid.

Breaking the Silence

“This is a big fraud and corruption case involving senior members at the government and at NDMC,” said Waheed, who said he suspects political tensions could make the ACC’s investigation difficult. “I’ve told Ilyas and Zaki not to do this. But Ilyas said he is helpless because he is not part of the ruling party. Zaki is MDP, though, and I think the two don’t want to have a conflict.”

While Waheed believes the ACC “is now more professional than before, and we should attach some faith to their investigation,” he chose not to report his findings to the commission.

Instead, he wrote to the President. “Because this involves so many government members I thought it was best to go to the government first, before reporting anything to an outside body. But when I spoke with them they were nervous, they didn’t want this thing to be talked about.”

Minister Inaz had not responded to phone calls at time of press, and Ilyas refused to speak to Minivan News. Deputy Minister Zaki denied all allegations.

ACC’s investigation of NDMC is currently underway.

Correciton: Previously, this article stated “Zaki then took the invoice with comments from Inaz’s desk and passed a new copy to someone else for processing.”

It should have read, “Zaki then took the invoice with comments from NDMC Finance Director Mohamed Shiyam’s desk and passed a new copy to someone else for processing.”

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MDP MP calls out government on corruption charges

Ruling party Maldivian Democratic Party (MDP) MP Mohamed ‘Colonel’ Nasheed has said some government operations involve corrupt dealings and that the ruling party should clear up these failings before opposition parties make further accusations.

Nasheed is a member of the Public Accounts Committee, and the first MDP MP to publicly accuse the ruling party of corruption.

“The opposition is always linking MDP with corruption, but we also should acknowledge that corruption is bad in the system. We need to reform our system so that there’s no room for corruption,” Nasheed told Minivan News today.

Nasheed did not say if certain branches of government were culpable. He did, however, indicate that “there are some housekeeping problems within us, and we will deal with those things.”

Recently, the Anti-Corruption Commission (ACC) has been investigating the Disaster Management Center for delayed payments to Moreway Construction Company.

In August, the ACC requested Maldivian construction giant Heavy Load Pvt Ltd. to stop its reclamation operations at Thilafushi in August on suspicion of corruption.

Heavy Load is owned by MDP Chairperson and MP Moosa ‘Reeko’ Manik. The company and its shareholding politician have been regularly accused of corruption over the past year.

In September 2010, Heavy Load was awarded a US$21 million (Rf269.8 million) contract from Thilafushi Corporation Limited (TCL) to reclaim 130 hectares from Thilafushi lagoon. Heavy Load had submitted its proposal for the project to the National Planning Council in July, however the proposal had reportedly not been fully approved before TCL offered project finances and in August 2011 Heavy Load was asked to allow other companies to submit their bids.

Minivan News understands that the ACC was concerned about operations within TCL.

Currently, Heavy Load is responsible for reclaiming land on Hulhumale’ for a new terminal at Ibrahim Nasir International Airport (INIA). The project incurred a dispute with infrastructure company GMR, whose subsidiary GMR Airport Development Ltd. had allegedly received the project before it was awarded to Heavy Load.

When asked if his allegations of government corruption related to the Heavy Load affair earlier this year, Colonel said “it’s not fair for me to mention Heavy Load in the media.”

Colonel later elaborated on the ACC’s investigation of Heavy Load.

“I’m not saying there is or isn’t corruption in Heavy Load, it’s too early to say, but some investigations should be done. Because of the lack of transparency people might accuse the company of corruption, but accusations don’t mean that there really is corruption,” he said.

Accusations of corruption are nothing new to Moosa. In August, Moosa was accused of using party resources for “self-promotion”, and Colonel speculated that Moosa was preparing to place a bid for the 2013 presidential election.

In a long-standing feud with private broadcaster DhiTV, Moosa has been accused of alcohol possession and corrupt dealings with Heavy Load. In turn, he alleged that private broadcasting channels were inappropriately funded. The negative media attention prompted Colonel to call Moosa “a big liability” for the government.

“I’m not saying the accusations are true, but Moosa has not been able to prove his innocence,” he said at the time.

When asked today if his allegations of government corruption had any particular grounds, Colonel told Minivan News that he was “not picking a fight with anybody, it’s nothing personal.” He added that the ACC’s operations have improved since a new auditor general was appointed, and that the government’s system of check and balances would handle issue.

Reflecting on the reasons behind what he called an increase in corruption awareness, Colonel suggested that increased transparency “from the new constitution and reforms” has exposed a long-standing issue.

“The situation might not be worse than before, only the number of cases reported is higher,” he said.

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Comment: Income tax a necessary step to combat corruption

Husnu Suood is a former Attorney General and prominent lawyer in the Maldives. This op-ed first appeared in newspaper Haveeru on August 29, 2011. Translated and republished with the author’s permission.

Corruption has spread and taken root in the Maldives to extreme levels. Corruption allegations can be levelled everywhere. This evil disease has become common in state institutions, government offices, public companies as well as private companies and businesses. As a result of corruption allegations against persons filling high posts of state institutions, public confidence in these institutions are lost and instead of places with public respect it becomes the target of public ridicule.

The loss of public funds and opportunities for the public due to corruption is increasing daily. If Rf1,000,000 of public money is spent to purchase a generator instead of the Rf700,000 that should actually have been spent, the public ends up losing Rf300,000. If this Rf300,000 is not pocketed by employees, it could have been spent on other projects for the public. In this vein, we can only imagine the amount of money that is lost on a national level.

If an employee of a private business sells goods at a higher price and deposits the difference into his personal bank account, the business is going to go bankrupt instead of developing and prospering. While the shopkeeper who is employed with a salary Rf4,000-a-month builds two dhonis of his own, the owner of the shop goes bankrupt. If businesses do not lose money in this manner, national productivity is going to rise.

If a state employee spends in excess of his means, buys expensive items, changes his lifestyle and visits Europe for two-week holidays, he must have sources of income or the resources to prosper.

When the personal income tax comes into force, individuals would be legally compelled to file tax returns or financial statements once a year. The statement would clearly show sources of income as well as the level of income. If a person buys expensive items disproportionate to his income or spends in excess of what the financial statement shows is his actual income, the way will be open to determine whether or not he earned that money legitimately.

For example, if tax returns show that a person’s income for the past five years was Rf30,000 and he suddenly buys an expensive brand new BMW car, that would reveal that he has received illegitimate monetary gain. It would mean that he either falsified his true income to evade taxes or that he somehow received a large amount of money through illegal means.

Therefore, if an investigation is launched into such a case, the individual would have to bear responsibility for proving how he suddenly came about the assets or money. If he got the money through selling an ambergris he found, he would have to prove it. If the person got the money through legitimate means, he would not have to worry. If for instance he brought a plot of land legitimately, it would not too difficult to prove.

Drug trafficking and money laundering are two very serious issues currently facing the Maldives. A solution to these problems must be found without further delay. Finding solid evidence for conviction is a major problem faced by investigative authorities. We see a person who is unemployed buy expensive cars, land and property. Although people whisper in secret to each other of their wealth and prosperity, due to the lack of a legal framework to compel them to reveal their sources of income, they are able to stay hidden and benefit from illegal activities. When individuals are forced to file tax returns and details of their income and expenditure, the doors that are now open to commit crimes with impunity, beyond the reach of the law, will be closed.

Taking these matters into consideration, it is not just state revenue that will increase when the personal income tax legislation is passed into law. In addition, it will provide new facilities or means within the tax system to combat the plagues of corruption and drug trafficking. The taxation system will help to establish a strong, sound and fair state.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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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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ICC membership expected to reform Maldivian judicial system

The Maldives has become the 118th country to adopt the Rome Statute of the International Criminal Court (ICC), the world’s first and only permanent international court with jurisdiction over crimes against humanity, crimes of aggression, genocide and war crimes.

The Maldives is the third state in South Asia to become an ICC member, following Bangladesh and Afghanistan. It is the ninth in the south asian region alongside Cambodia, Japan, Republic of Korea, Mongolia, the Philippines and Timor-Leste; plans to ratify the statute are advancing in Malaysia and Nepal.

Asia has been slower than other regions in adopting the ICC regulations, allegedly because they maintain the death penalty which is prohibited by the ICC. William R. Pace, Convenor of the Coalition for the International Criminal Court, said the Maldives’ decision to accede to the Rome Statue was a significant step for the region.

“It is vital that the momentum towards increasing respect for the rule of law and accountability for those responsible for the most serious crimes is seized by other states in the Asia-Pacific region, many of whom are close to joining the ICC,” Pace said in a press release. “Joining the Court represents a strong deterrent effect that will contribute toward the prevention of gross human rights violations in the Asia-Pacific region and to the global fight against impunity.”

Acceding to ICC regulations as defined by the Rome Statute has been a long process for the Maldivian government. In 2003, the Maldives took steps to reject its judicial authority.

Wikileaks cables published on 1 September 2011 cite the Maldivian government’s intent to “never turn over a US national to the International Criminal Court (ICC). The Maldivian government would not sign the ICC treaty and would not respect its claim to universal jurisdiction.” Other cables indicate that then president Maumoon Abdul Gayoom was seeking approval for a visit with then US President George W. Bush, allegedly to improve his chances of re-election.

Speaking to Minivan News today, the President’s Press Secretary Mohamed Zuhair said ratification of the ICC statute highlighted the different values of the current administration.

“For us, it’s transparency that is at the top of our priorities. So right now, our highest priority is to improve the judicial system of this country.”

The ICC covers major crimes which are widespread, systemic and of concern to the international community. The ICC does not deal with small cases, even if the victims may be in the hundreds.

Among the criteria for the ICC to take on a case in the Maldives is doubtful willingness and capacity of the country’s own judiciary to handle the case in question.

Zuhair said it was important for Maldivians to have access to an international judicial system. “Individuals who feel they have a complaint, even against a leader, could refer the complaint to the Maldivian judicial system or to the ICC. This is a big step for a country whose previous leaders have been accused of human rights violations. I believe their cases would be fairly addressed in the ICC,” he said.

Evelyn Balais-Serrano, Asia-Pacific Coordinator for the ICC’s advocacy NGO Coalition for the International Criminal Court (CICC) told Minivan News that ratification would support domestic legal reform, and that heads of state would face new levels of accountability.

“The ICC only deals with the big fish. In the past only the small fish may have been sacrificed to show a semblance of justice – but the ICC targets the highest level of responsibility: the head of state, generals, kings,” she said previously.

The Debate

In October 2010, the debate to join the ICC created sparks in Parliament.

MDP MPs condemned the “unlawful and authoritarian” practices of the previous government. Group Leader “Reeko” Moosa Manik referred to 2009 legislation protecting former presidents who he considered “the worst torturers in the country’s history,” and said the purpose of the international criminal court was to “arrest torturers like Maumoon [Abdul Gayoom], people like Ilyas Ibrahim [brother-in-law of the former president] who stole state property and funds, and Attorney Generals like Hassan Saeed who tried to hide it.”

MPs from opposition Dhivehi Rayyithunge Party-People’s Alliance (DRP-PA) said MDP MPs were overlooking the fact that Gayoom had never been reprimanded in a court of law, and accused the current administration of disregarding rules of law. MP Dr Abdulla Mausoom accused the MDP government of formulating policies only to “benefit certain people”, which he argued could be “considered a crime in international courts.”

The question of religion was also inflammatory. DRP MP Dr Afrashim Ali said convention should not be signed if it could lead to “the construction of temples here under the name of religious freedom.” Other MPs pointed out that several Muslim countries had not joined the ICC, and the MPs were concerned that ratification would “shatter Islamic principles” and encourage gay rights.

Shari’a experts in ICC signatories and Muslim countries Afghanistan, Jordan and Malaysia have not found conflict between the Rome Statute and Sharia.

On 14 June this year, Parliament voted almost unanimously to sign the Rome Statute of the ICC.

The Effects

Speaking to Minivan News today, Balais-Serrano pointed out that ratification of the Rome Statute was well-timed.

“As a chair of the SAARC summit, Maldives will have quite an influence on south asian countries attending this year’s event,” she said. “It will certainly be constructive in reviewing human rights, a key point we plan to address at the summit.”

The South Asian Association for Regional Cooperation (SAARC) summit is scheduled for Addu City in mid-November this year.

Balais-Serrano also pointed out that by ratifying the Rome Statute, governments are committing to adapt current domestic legislation to meet international standards. She said ICC members could receive “training of local judges and prosecutors and other officials responsible for lawmaking and implementation”, and hoped the Maldives would forward with judicial reform.

“The judicial system in Maldives can benefit from the rules and procedures by which the ICC operates, for example, in the nomination and election of judges, in the protection of witnesses and victims and in ensuring due process,” said Balais-Serrano.

She said that ICC membership would expand Maldivian court procedures. “One of the motivations of joining the ICC is to let go of a commitment to include the domestic judicial system alone. Now, Maldivians can also refer to the ICC provisions and regulations. This is a timely event for the Maldives to review domestic law while making the ICC a reference point.”

As an ICC member, the Maldives will be able to send judges and lawyers abroad for internships and exchange programs in member countries. Balais-Serrano said that all member countries are obliged to send employees to the ICC to learn and assist with proceedings.

International liability

ICC membership could affect international relations. The Maldives recently made news headlines by supporting the Sri Lankan government, which is facing war crimes allegations by international human rights groups. A report from UN Secretary General Ban Ki-Moon has raised the likelihood of an investigation by the Human Rights Commission.

A Relationship Agreement between the ICC and the United Nations calls the UN “potentially the most important partner of the ICC on various levels,” and suggests that investigations by the UN are based on the same human rights standards put forth by the ICC.

“The Maldives cannot do anything if the ICC decides to investigate and put into trial the perpetrators of crimes in Sri Lanka,” said Balais-Serrano. “If suspected criminals from Sri Lanka seek refuge in the territory of the Maldives, as a state party to the ICC, the government is obliged to cooperate to the Court by arresting  the criminals.”

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