Police arrested a 23-year-old male suspect yesterday while he was attempting to smuggle MVR700,000 (US$45,396) worth of drugs to Addu City.
According to police media, the individual arrived in Gan airport in the southernmost atoll on Maldivian flight Q2-101 with the illicit narcotics taped around his thighs.
The case is under investigation by the Hithadhoo police station.
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(0)UK-based Lagan Construction has been chosen to develop Addu International Airport, State Trading Organisation (STO) has announced.
Managing Director of STO Shahid Ali told local media that along with Lagan Construction, Danish company MT Hojgaard had also submitted a bid for the project.
“The tender for the development of Gan Airport was opened in December. It took is one month to evaluate the bids. Two parties had submitted proposals.
“They were Lagan Construction and Højgaard. Out of them, Lagan had submitted the most responsive bid in the bid evaluation process. So Lagan has been shortlisted,” Shahid was quoted as saying in local media.
Shahid stated that discussions were underway with Lagan to implement the project.
(0)Dislikes(0)Jumhoree Party (JP) Leader, MP, and chairman of the Villa Group of businesses, Gasim Ibrahim, denied in parliament today that he had spoken against the sale of shares of Addu International Airport (AIA) with the intention of buying shares himself. He claimed he had done so “in the best interests of Addu and the country.”
“If Gasim wanted shares, Gasim would have bid for them,” Gasim said in response to some MPs, who had alleged he was himself interested in buying the shares.
Referring to his offer in his letter to President Mohamed Waheed Hassan to reclaim land for the project free of charge “using my own dredger, employees and machinery with the government only providing oil,” Gasim said that the costs of the work would come up to US$7 million.
“I am very concerned that they have gone ahead and sold the shares without even considering the offer of free aid of this size,” Gasim said.
Gasim further stated that although he did want to see the Addu airport developed, the shares had not been sold in the right manner, adding “things won’t go very well” due to how the shares had been given away.
JP MP Alhan Fahmy echoed Gasim’s statement that he, too, wished to see the Addu airport developed, but that he was concerned with how the sale of shares had been carried out. Fahmy said that 30 percent of shares being sold off for MVR 60 million (US$3.89 million) was “nothing but daylight robbery”.
“The shares have been sold far too cheaply. Our problem is that they’ve done this while there are many other ways obtain the funds needed for development,” Fahmy explained.
A number of MPs from the Maldivian Democratic Party (MDP) stated that the party supported the concept of privatisation, adding that the development of the Addu airport was originally an MDP initiated plan. They, too, however, expressed concerns over how the bidding process had been carried out.
MDP Parliamentary Group’s Deputy Leader Ali Waheed criticised Gasim Ibrahim for his “lack of conviction” when speaking about the issue in parliament.
Waheed said that Gasim had not dared to criticise the government even after it had sold the shares, despite Gasim’s allegations that major corruption had been involved in the deal.
Referring to Gasim’s common name “Buruma” (‘drill’), Waheed said, “There is no use for a drill without electricity”, alleging that the JP leader had been “too cowardly” to even speak of the issue openly during today’s parliamentary session.
“Cowards need not contest in the coming presidential elections,” Waheed further declared.
Gan Airport development to start in January: Shahid
MD of AIA and STO Shahid Ali said in a press briefing on Monday that the Addu Airport development work is set to begin in January.
Ali said that the pre-bid meetings had been held with the three shortlisted contractors and that the bids were scheduled to be submitted by November 28.
The development plans include an extension of the runway, repairing of the apron, placing an extra layer of tar on the runway and setting up a sea plane base.
He also stated that contrary to general speculation, the airport had not been “sold”, but rather shares from the company AIA that had been sold to KASA Holdings.
He also refuted allegations of corruption, saying that KASA Holdings had been given higher priority since it was a local company and that all proceedings had gone through the bidding process in a matter which was completely free of any corruption.
“It is often said now that 30 percent of the airport has been sold to a private party. The truth is that 100 percent of the land of Gan, the infrastructure of the airport and its facilities are with the government, because Gan Airport Ltd is a company which is 100 percent owned by the government. So all the assets are owned by them. Then this company has leased the airport to AIA for 50 years,” Ali explained.
Ali said that therefore it was clear that selling 30 percent of the shares of AIA, a joint company formed by the Gan Airport Ltd, STO and the Maldives Airports Company Ltd, was not a sale of the airport itself.
Leave politics aside
Addu City council has released a statement welcoming the signing of the contract which they said would lead to the development of the Addu airport.
The statement further notes “the importance of leaving politics aside and for the good of citizens in letting the venture bring positive changes to Addu’s economy.”
Meanwhile, MDP released a statement on Monday urging “not to let political feuds, political needs and power play interfere in important work directly related to the development of Addu City citizens, and generally all Maldivian citizens.”
The statement also condemned Gasim’s threats against Shahid Ali, stating “This party calls on political leaders to refrain from making unlawful threats through the greed for power and political wants.”
In a uncommon move, 18 citizens from Addu held a press conference on Monday, speaking in support of the Addu airport development.
The citizens welcomed the selling of shares to KASA Holdings, stating that it was not a sale of the airport itself. They further said that the citizens of Addu were happy that although the airport has so far remained the same, development work is scheduled to begin early next year.
(0)Dislikes(0)An agreement was signed last night to sell 30 percent of the Addu International Airport Company Pvt Ltd (AIA) to tourism pioneer ‘Champa’ Hussain Afeef’s Kasa Holdings to raise finances to develop the Gan airport in Addu City.
AIA is a joint venture formed by the Gan Airport Company Ltd (GACL), Maldives Airports Company Ltd (MACL) and the State Trading Organisation (STO).
The airport infrastructure and facilities in the uninhabited Gan island of the southernmost Seenu atoll was leased to the government-controlled consortium for 50 years with a mandate to develop and operate the asset as an international airport.
The agreement to sell a 30 percent stake in AIA for MVR 60 million (US$3.9 million) was meanwhile signed on behalf of the company by Managing Director Shahid Ali – also Managing Director of STO – and ‘Champa’ Mohamed Moosa on behalf of Kasa Holding.
The agreement was signed in spite of a public threat by Jumhoree Party (JP) Leader and MP for Alif Dhaal Maamigili, Gasim Ibrahim, that Shahid Ali would be sacked from his post if the sale went through.
Gasim, who had previously alleged corruption in the deal, told reporters on Sunday night that Shahid could not “stay in his post if he signs it,” according to newspaper Haveeru.
He also warned that the STO MD could “not live on this island” if the sale was finalised.
Shahid meanwhile reportedly said after the signing ceremony last night that the agreement was signed after the Finance Ministry and Public Enterprises Monitoring and Evaluation Board (PEMEB) gave clearance for the sale.
Shahid noted that Afeef’s stake in the seaplane operator Trans-Maldivian Airways (TMA) would be an advantage in the development of the Gan airport.
Following the signing ceremony, Shahid told private broadcaster Raajje TV that the sale was made after a decision by the AIA board of directors, a public tender, evaluation of shortlisted candidates and “authorisation from the Finance Ministry”.
Proceeds from the sale would finance “a major project to develop Gan airport,” he said, including expanding the runway and repairing damages in the airport as well as establishing a new drainage system and a seaplane base.
“The estimate of the consultants for all this is US$40 million. So even if we obtain loan finance or contractor finance for this US$40 million project, we would need an equity injection,” he explained. “Therefore, we need an investment to get this equity injection – a party that would give this money to the company as an equity injection.”
The AIA board in consultation with the government decided to invite proposals from Maldivian companies, Shahid said, adding that Kasa Holdings was the only local company to submit a bid.
Shahid stressed that Kasa Holdings was sold a stake in the management company AIA and not the Gan airport.
On the allegations of corruption by the government-aligned JP, Shahid insisted that the sale was made “through an open and transparent bidding process,” adding that AIA would “welcome” an investigation.
The Anti-Corruption Commission (ACC) revealed to local media today that it commenced an investigation into the sale of the AIA stake last month based on assertions in the press.
ACC Deputy Chair Muaviz Rasheed told newspaper Haveeru that the investigation would be completed this week.
Letter to the President
Speaking in parliament yesterday, JP MP Alhan Fahmy claimed that the “self-interest” of Dhivehi Qaumee Party (DQP) was behind the sale of the AIA stake, alleging that DQP senior officials Imad Solih and the party’s leader and Special Advisor to the President Dr Hassan Saeed were complicit in corrupt dealing.
“The government should not sign this agreement. This case should be investigated at a national level,” he said, claiming that the 30 percent stake “could be sold tomorrow to an Israeli party.”
“Addu Atoll Gan is a military strategic location the whole world is watching,” he claimed, calling on the government to reconsider the decision.
Alhan told Raajje TV last night that JP would submit the case to the ACC and parliamentary committees, repeating the corruption allegations and questioning the valuation of the 30 percent stake.
Alhan claimed that Dr Saeed had asked JP Leader Gasim not to oppose the deal at a meeting at the President’s Office yesterday.
In a letter to President Dr Mohamed Waheed Hassan Manik last week, Gasim contended that MVR60 million for 30 percent of AIA’s share was “a very small amount” as the value of the airport would exceed MVR 3 billion (US$200 million).
Moreover, while US$44 million had been estimated as the cost of developing the airport, the JP MP claimed that the project could be completed with US$24 million.
An “open tender just in China alone” for the project would suffice to prove his assertion, Gasim wrote in his letter to Dr Waheed.
Gasim warned that Kasa Holdings would be positioned to acquire 70 percent of AIA by moving to sell 40 percent to a buyer of its choice.
“If a member representing the government does not attend a board meeting held to sell this 40 percent, Kasa Holdings will have the power to sell 40 percent of shares to whoever it pleases at whatever price it wants,” Gasim wrote. “In light of my experience on how these [deals] are completed, I have to say that the ultimate result would be the remaining unsold 40 percent being sold to a buyer of Kasa’s choice and the opening up of the opportunity for Kasa Holdings to control 70 percent, and within this opportunity, for [Kasa] to sell 51 or more percent of AIA to another foreign party.”
Gasim further contended that the move would pose a risk to national security, as the government would have no legal powers over the company.
Cancelling the agreement would mean paying the foreign party a “huge amount in compensation,” he claimed.
Gasim insisted that the Gan aiport should be developed by MACL and offered in his letter to reclaim land for the project free of charge “using my own dredger, employees and machinery with the government only providing oil.”
(0)Dislikes(0)Jumhoree Party (JP) Leader and MP for Alif Dhaal Maamigili, Gasim Ibrahim, has alleged corruption in the proposed sale of a stake in the Addu International Airport Company Ltd (AIA) to finance development of the Gan airport in Addu City.
The allegations were made in a six-page letter from the business magnate MP sent on Tuesday to President Dr Mohamed Waheed, which was leaked to local media last week.
The JP presidential candidate reportedly contended that the government had decided to sell a 30 percent stake in AIA to a local company named Kasa Holdings “without due consideration.”
‘Champa’ Hussain Afeef, tourism pioneer and business mogul, owns Kasa Holdings.
A consortium formed by the Maldives Airports Company Ltd (MACL), the State Trading Organisation (STO) and the Gan Airport Company meanwhile owns AIA.
AIA Managing Director Shahid Ali – also managing director of STO – confirmed to newspaper Haveeru in September that the AIA board of directors had decided to sell a 30 percent stake in AIA to Kasa Holdings for MVR60 million (US$3.9 million).
Shahid explained that Kasa Holdings and a Malaysian company had bid for the project following a public tender or announcement. He added that the Finance Ministry was consulted prior to the decision to sell the 30 percent stake.
Moreover, the bid announcement was made after the President’s Office approved the process, he said. However, the sale has been held up after the Transport Ministry asked the consortium to review the process and determine if the valuation was in line with the Public Finance Act.
Shahid said in September that AIA had requested legal advise from the Attorney General and that the government had not instructed the company on how to proceed.
Gasim meanwhile said in his letter that MVR60 million for 30 percent of AIA’s share was “a very small amount” as the value of the airport would be higher than MVR 3 billion (US$200 million).
Moreover, while US$44 million had been estimated as the cost of developing the airport, the JP MP claimed that the project could be completed with US$24 million.
An “open tender just in China alone” for the project would suffice to prove his assertion, Gasim wrote in his letter to Dr Waheed.
If the sale goes through, Gasim warned that Kasa Holdings would be positioned to acquire 70 percent of AIA by moving to sell 40 percent to a buyer of its choice.
“If a member representing the government does not attend a board meeting held to sell this 40 percent, Kasa Holdings will have the power to sell 40 percent of shares to whoever it pleases at whatever price it wants,” Gasim wrote. “In light of my experience on how these [deals] are completed, I have to say that the ultimate result would be the remaining unsold 40 percent being sold to a buyer of Kasa’s choice and the opening up of the opportunity for Kasa Holdings to control 70 percent, and within this opportunity, for [Kasa] to sell 51 or more percent of AIA to another foreign party.”
Gasim further contended that the move would pose a risk to national security, as the government would have no legal powers over the company.
Cancelling the agreement would mean paying the foreign party a “huge amount in compensation,” he claimed.
Gasim insisted that the Gan aiport should be developed by MACL and offered in his letter to reclaim land for the project free of charge “using my own dredger, employees and machinery with the government only providing oil.”
In October 2011, Gasim opened the Maldives’ first private airport at his native Maamigili with his ‘Flyme’ Villa airline landing the first flight in the new airport in Alif Dhaal atoll.
Gasim’s Jumhooree Party, part of the ruling coalition, is among parties calling for the nationalisation of the Ibrahim Nasir International Airport and cancellation of the previous administration’s concession agreement with Indian infrastructure giant GMR to develop and manage the Hulhule airport.
(0)Dislikes(0)Parliament’s National Security Committee has decided to summon Transport Minister Dr Ahmed Shamheed and senior officials of the Addu International Airport Company (AIAC) over the landing of a private Israeli jet in Gan, Addu City in May this year.
Newspaper Haveeru reported the committee’s chair MP “Reeko” Moosa Manik, chairperson of the Maldivian Democratic Party (MDP), as saying today that the officials were summoned in light of a resolution passed by parliament forbidding Israeli flights to land in the Maldives until the National Security Committee reached a decision on the issue.
Moosa added that the committee has not yet set a date to question the officials. The formerly ruling MDP presently has a voting majority in the National Security Committee.
Former Transport Minister Adil Saleem was questioned by the National Security Committee after the Deputy Leader of the Adhaalath Party, Dr Mauroof Hussain, alleged that the MDP government had decided to authorise Israeli national airline to fly to the Maldives and allow an Israeli military post to be established in the country.
Adil Saleem had denied the allegations when he was summoned to the committee.
Banning Israeli flights to the Maldives was among five demands made at a ‘mega-protest’ on December 23, organised by a coalition of eight parties and religious NGOs to ‘Defend Islam’ against the allegedly liberal policies of former President Mohamed Nasheed.
Following the change of government on February 7, the ruling coalition-dominated parliament passed a resolution on April 25 preventing Israeli national airline El Al from operating scheduled flights to the Maldives.
(0)Dislikes(0)Former Finance Minister Ali Hashim has been appointed Chairman of the Addu International Airport Company Ltd (AIACL), a new joint venture formed between the Gan Airport Company, State Trading Organisation (STO) and the Maldives Airports Company Ltd (MACL), reports Haveeru.
Apart from Hashim, who resigned in December last year after parliament rejected his reappointment by President Mohamed Nasheed, the AIACL’s board comprises of STO MD Shahid Ali, MACL CEO Mohamed Ibrahim and Gan Airport MD Mohamed Didi and the company’s board member Ahmed Naseer.
STO MD Shahid Ali told newspaper Haveeru in January that the highest priority for the new joint venture would be to expand the airport’s runway and improve its surface to allow international flights to land in the southernmost atoll.
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