Tag: Customs

High Court rules against Alpha MVKB duty free shop

The High Court today backed the Civil Court ruling that GMR’s decision to terminate its contract with Alpha MVKB duty free shop at the Ibrahim Nasir International Airport in March was valid, and that MVK’s request to extend the notice until December 31 violated its contract with GMR.

According to the ruling, GMR had vacated the Alpha MVKB Duty Free Shop at Ibrahim Nasir International Airport (INIA) legally and according to the agreement between both companies.

The High Court noted that GMR gave notice on March 1 and, as per the agreement, the contract terminated on March 31. As no party could extend the termination notice, the court concluded that MVK had no right to remain at the airport without approval from GMR.

Alpha MVKB was leased for 10 years under an agreement between MVK and Maldives Airports Company Limited (MACL). The agreement requires the party wishing to terminate the agreement to give a one-month notice; the High Court stressed that both parties had that right.

The High Court also denied MVK’s request for a temporary order allowing them to run the duty free shop through December 31 on the basis that the case had been closed.

Airport shops contracted under Maldives Airports Company Limited (MACL) were allowed to remain in operation for one year after GMR took over airport management. As per the MACL contracts, all shop contracts will terminate on December 31 of this year.

GMR said it has given the required 90-day notice to all shops except Spice Island, which will remain in service. Plans for new shops are unclear, however GMR has said it welcomes any company offering a product appealing to locals and foreigners alike.

Minivan News made repeated calls to Alpha MVKB Managing Director Ibrahim Shafeeq, MVK  and Alpha MVKB offices, but had received no response at time of press.

GMR officials today said they could not issue a comment on the case until they received an official notice of the ruling.

Earlier this month, Customs officials intervened when GMR officials began dismantling a temporary wall outside of the Alpha shop and packing up goods.

“Duty-free goods are Customs’ responsibility, and we will be involved in the process of opening or closing duty-free shops,” said Customs Director Ismail Nashid. “As for the goods involved, there are several options for the shop owner to choose from including importing the stock to the Maldives or selling it internationally.”

GMR officials earlier said that action was taken against the shop after several notices for evacuation had been ignored, thereby complicating the airport renovation schedule.

The airport renovation is the single largest foreign investment in the Maldives at US$400 million. GMR is upgrading the old terminal ahead of completing construction of the new terminal in 2014, and will operate the airport for 25 years under a concession agreement signed last year with the government.

GMR has faced repeated legislative battles since it entered the contractual agreement.

Opposition Dhivehi Qaumee Party (DQP) earlier filed a case challenging GMR’s right to collect a US$25 (Rf385.5) Airport Development Charge (ADC) and US$2 (Rf30.8) Insurance Charge commencing January 2012. The DQP had claimed that a pre-existing Airport Service Charge (ASC) of US$18 (Rf277.56) invalidates the ADC.

The Civil Court ruled against GMR on December 8 on the grounds that a clause in the concession agreement with GMR violated the Airport Service Charges Act of 1978, which was amended in 2009 to raise the charge to US$18 for foreign passengers and US$12 for Maldivians above two years of age.

The government has said it will likely appeal the lower court’s ruling, given its contractual obligation to GMR.

Likes(0)Dislikes(0)

GMR dismantles Alpha duty-free

GMR officials yesterday began to physically remove the Alpha MVKB Duty Free Shop at Ibrahim Nasir International Airport (INIA) after “several notices” to vacate the area were “ignored”, according to GMR’s Head of Corporate Communications, Mahika Chandrasena.

MVKB shop assistant Mohamed Nishwan told local newspaper Haveeru that GMR officials entered the shop around 2:00pm and began packing goods into boxes. They also began disassembling temporary wooden walls which were erected in late November to signify that the shop, which sells alcohol, cigarettes, and watches, was closed.

Customs officers arrived at 4:00pm to stop the disassembly, Haveeru reports.

Chandrasena said the shop’s owner had ignored numerous notices to vacate  the premises, to the point that that they were blocking development at INIA.

“The gentleman was supposed to vacate by a certain date and he didn’t. We had to close the shop because we have deadlines to re-vamp the duty free area. GMR gave him a lot of time and postponed the deadline several times, but he refused to leave and we had to physically remove the shop.”

Chandrasena said she understood that Customs intervened because of the presence of alcohol among the shop’s stock. “They needed to make sure it didn’t leak into Male’. That’s Customs’ purview,” she said.

One area of the shop has been vacated but GMR is now waiting for the shop owner to remove the rest.

“This is nothing to do with him personally, but we have deadlines we need to meet on our renovation,” said Chandrasena.

GMR’s action was supported by a ruling from the Civil Court, however Alpha MVKB had appealed the ruling in the High Court.

Police Sub-Inspector Ahmed Shiyam said police supported customs officials in the operation.

“We advised GMR to follow Customs’ procedures. There was some dispute but no confrontation,” he said.

Customs Director Ismail Nashid could only confirm that the contents of a duty-free shop were under Customs’ purview and that any disagreement over the shop was between Alpha MVKB and the landlord, GMR.

“Duty-free goods are Customs’ responsibility, and we will be involved in the process of opening or closing duty-free shops,” he said. “As for the goods involved, there are several options for the shop owner to choose from including importing the stock to the Maldives or selling it internationally.”

Nashid confirmed that the shop is not currently in operation, but said the decision to remove the shop from the airport would be made by GMR.

Alpha MVKB Managing Director Ibrahim ‘MVK’ Shafeeq today told Haveeru that GMR’s management style was “dictatorial” and “backed by someone.”

“We’re now seeing a foreign party trying to overtake us. How can they enter duty free shops like that and take out the goods? It shows that they have the power and that they’re operating with backing from someone,” he said.

The airport renovation is the single largest foreign investment in the Maldives at US$400 million. GMR is upgrading the old terminal ahead of completing construction of the new terminal in 2014, and will operate the airport for 25 years under a concession agreement signed last year with the government.

Likes(0)Dislikes(0)

Sri Lankan SAARC monument vandalised as PPM file case over import of ‘idols’

The SAARC monument designed and gifted to the Maldives by the Sri Lankan government, has been doused with crude oil.

The lion statue, representing the national symbol of Sri Lanka, was vandalised last night following the toppling, burning and theft of the Pakistani monument, which protesters had claimed was idolatrous.

Council Member of the Progressive Party of Maldives (PPM), Ahmed ‘Marz’ Saleem, meanwhile today filed a case with police against the Maldives Customs Department for allowing  ‘idols’ to be imported to the Maldives for the SAARC Summit.

The PPM is the party founded by former President Maumoon Abdul Gayoom, following its acrimonious split with the major opposition party, the Dhivehi Rayithunge Party (DRP).

Speaking to Minivan News today, Saleem said that four acts in the Maldives banned the importation of idols, and that the Customs Department should be held responsible for letting the statues be imported into the country.

”It violates the Police Act, Customs Act, Contraband Act and the Religious Unity Act,” he contested.

“I reported the case to the police because it is a criminal offence which has to be investigated by police and sent to the Prosecutor General, to be taken to court according to Maldivian law,” Saleem said. ”We looked into the matter of these idols and found out that these things were not made here, which means they much have been imported from somewhere else.”

He said that displaying the items in public “is another offence. Citizens who love the religion of Islam will not allow such items to kept in public, and will seek to destroy them.”

”Police will have no lawful authority to stop citizens from destroying the idols, because they are illegal and against Islam,” he said, adding that the PPM has filed a second case in the Police Integrity Commission (PIC) demanding investigation of whoever gave orders for police to defend the monuments when citizens went out to destroy them.

”We requested the PIC investigate and find out who exactly gave the orders, who implemented the orders, and to take action against them,” he said.

He also alleged that the current government was attempting “to erase Islam from the country.”

”The current government dissolved the Quran Department, Arabiyya School and women’s mosques, all to erase the religion of Islam,” Saleem alleged.

Spokesperson for the Customs Department, Mohamed Ibrahim, did not respond to Minivan News at time of press.

Police Sub-Inspector Ahmed Shiyam meanwhile confirmed that a case against the Customs Department was filed with police.

Likes(0)Dislikes(0)

Indian national caught with drug-filled suitcase

Indian national Lata Kumari Govindaran, 46, has been arrested for possession of 1.05 kg of cannabis.

Govindaran arrived in the Maldives last Wednesday with the drug hidden in her suitcase’s double bottom, reports Haveeru. She had also visited the Maldives last Ramadan.

Customs told Haveeru that Govindaran had been arrested on suspicion of drug possession during a security check and screening upon arriving in the country.

Govindaran traveled alone and no one else has been arrested.

Likes(0)Dislikes(0)

Confiscated swords found fake and flexible, sent to MNDF

Swords confiscated by Maldives Customs Service last Thursday have been reported as fake incapable of causing harm. The swords had been imported by Wushu Federation of Maldives for martial arts training.

Haveeru reports that the swords bend when waved or put in contact with a person. The swords allegedly look real, but are not used as weapons.

An assistant program director told Haveeru that the Chinese Wushu Association had donated the swords along with uniform kits, which were also confiscated.

Customs has released the martial arts uniforms, but sent the swords to the Maldives National Defence Force (MNDF). Customs also told local media that the swords were not imported with forged documents.

Likes(0)Dislikes(0)

“No new significance” in Sri Lankan money laundering busts, say local police

Sri Lankan police are  investigating a large-scale money laundering case based in Colombo, that reportedly extends to the Maldives.

Local police representatives say no significant case has been filed with Maldivian authorities so far.

According to local media, money was being transferred from the Maldives to various illegal money transfer agents in neighboring Sri Lanka. The money is suspected to be used for such criminal activities as purchasing and distributing narcotics and other contraband.

Last week, Rs. 81.76 million (Rf11.4 million) was seized at Sri Lanka Customs, the largest amount of foreign currency to be detected at Bandaranaike International Airport (BIA). Haveeru reports that dollars from Australia, Canada and the US, as well as sterling pounds, Kuwaiti dinars, UAE Dirhams, Saudi Riyals, Swiss Francs and Euros were included in the stash.

Local police reported no case being lodged regarding the money laundering circuit in Colombo, and cautioned that the information that was given to local media regarding the transport of finances from the Maldives might not be reliable.

Officials did say that money laundering has been a problem in the Maldives. Police Sub-Inspector Ahmed Shiyam said that “the issue of money laundering in the Maldives is growing, and credit cards are being abused more.”

An official from the Fraud and Financial Branch said there have been suspicions of money laundering, but charges can not be pressed for that alone. “Individuals have been charged for drug possession, which might be related to money laundering, but we are currently unable to prosecute someone for money laundering alone. We plan to work on that in the future,” he said.

International Monetary Fund (IMF) reports state that money laundering became a bigger concern internationally post-9/11, when it became heavily linked to terrorism. Although many countries have since adopted IMF anti-money laundering (AML) policies, few have developed legislation to enforce these guidelines.

The latest IMF review of Sri Lanka, dated 2008, indicated that AML standards were adopted by signature but that legislation was not in place. A 2011 review of the IMF program found that international organizations were cooperative, but did not indicate that individual governments and banks had adopted AML procedures.

Sri Lankan police have conducted raids on unauthorized money transfer agencies in the past few weeks, reports Haveeru. Earlier this month the Colombo Fraud Bureau, an arm of the Sri Lankan police force, arrested several suspects and seized approximately Rs. 9 million (Rf1.25 million) in foreign currency, Haveeru reports.

Four key Maldivian narcotics peddlers who were busted by Maldivian authorities in June for their involvement in the smuggling of narcotics via Colombo to Male since 2005 had allegedly used a prominent money transfer agency in Colombo, reports Haveeru.

Likes(0)Dislikes(0)

Customs seize 500 grams of heroin in false compartment of suitcase

Maldives Customs Service apprehended a Sri Lankan national at the Male’ international airport on June 25 after discovering over 500 grams of drugs hidden in a false bottom of his suitcase.

Sun Online reports that the narcotics found in the suitcase of the suspect, Mohamed Arafath Mohindeen, 32, later tested positive for heroin.

The street value of the drugs seized by customs is estimated to be Rf800,000 (US$62,200).

On the same day, customs stopped a Pakistani national who had swallowed 100 packets of “high-grade” heroin.

Likes(0)Dislikes(0)

Maldives Customs Service celebrates 120 years of operation

The Maldives Customs Service yesterday celebrated 120 years of operation at a special function at the Dharubaaruge exhibition hall in Male’.

The event, attended by Vice President Mohamed Waheed, was held to commemorate the work of Customs officials in the country as well as to launch a Strategic Plan from next year that will outline the department’s work up to 2013.

Alongside playing a ‘big role’ in matters of national security and drug prevention, the Vice President also claimed that the expansion of the service to a number of regions around the country has been a vital contributor to wider development issues, particularly in terms of the economy.

Speaking at the ceremony, State Minister for Home Affairs Mohamed Aswan, acting head of customs, said that promoting public confidence in customs services and “improving the public image of customs” would be a main priority in the coming year.

According to local daily Haveeru, Aswan said that a number of reforms will also be made to change procedures, apply risk management principles in all sectors and introduce information technology facilities.

Aswan revealed that changes will be made in valuation for import duties when a customs bill currently before parliament is passed to adhere to valuation agreements with the World Trade Organisation (WTO).

Established in 1890, Maldives Customs currently has over 700 staff in eight regional offices. It became a member of the World Customs Association in September 1995.

Likes(0)Dislikes(0)

Damaged and excess drug cargo seized

A half container of prescription drugs has been seized by local Customs authorities after the Maldives Food and Drug Authority (MFDA) uncovered damage to products within the shipment, local media reports.

Excess levels of medication beyond those recorded on an invoice attached to the container were also seized from the shipment, which was imported to the country on November 2, 2010, according to Haveeru.

Customs officials quoted in the report said that it was to procedure to dispose of any damaged drugs being brought into the country.

Likes(0)Dislikes(0)