JP leader Gasim returns to Maldives

Gasim Ibrahim, the leader of Jumhooree Party (JP) returned to Maldives today after the government removed a freeze on his Villa Group accounts over an alleged unpaid fine of US$90.4million.

Gasim spent nearly three months abroad, during which he announced he will resign from politics after his term as Maamigili MP expires in 2019. He has now pledged to hand over the reigns of the JP to new leaders.

“Gasim did not mention any particular reason for coming back. But I note there isn’t any reason for him not to come back,” JP spokesperson Ali Solih said.

The JP split from the ruling Progressive Party of the Maldives (PPM) coalition in January and allied with the main opposition Maldivian Democratic Party (MDP) in an anti-government campaign. MDP leader and former president Mohamed Nasheed was subsequently arrested and imprisoned on terrorism charges and Gasim’s Villa Group was slapped with a US$90.4million fine.

The Villa Group maintains the fine is unlawful. However, the JP and the government said they have reached an agreement on paying the fine.

Local media reported that the police had issued an arrest warrant for alleged funding of a historic anti-government protest on May 1. He was also accused of involvement in a plot to assassinate President Abdulla Yameen during the trial of ex defence minister Mohamed Nazim on weapons smuggling charges in March.

Explaining Gasim’s silence on Nasheed and Nazim’s sentencing, JP deputy leader Ameen Ibrahim said the government had “economically – paralyzed” Gasim. Since then, Ameen and JP council member Sobah Rasheed were both arrested and charged with terrorism. The pair have now fled the country.

Gasim was first in Bangkok, and later in Frankfurt.

MDP chairperson Ali Waheed, who was arrested along with Ameen and Sobah, tweeted a photo of Gasim’s arrival at the Malé airport saying: “The picture says it all. This is not fair. President Yameen should remember a time will for others as well”.

He further said the government had forced Gasim to sacrifice his political career

Waheed is in the UK.

While Gasim was abroad, he backed several government proposals, including a constitutional amendment that will disqualify him from running in the 2018 presidential elections.

The amendment sets new age-limits of 30-65 years for the presidency. Gasim will be 66 in 2018.

The JP accepted President Abdulla Yameen’s invitation for talks without conditions. The JP and the government have held two meetings so far. Talks are ongoing between the MDP and the government now.

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Cutting a deal with the devil?

The opposition today backed the first amendment to the Maldives Constitution and set new age-limits of 30-65 years for the presidency. The vote is widely perceived as a deal made in exchange for two months of house arrest for jailed opposition leader Mohamed Nasheed.

The ruling Progressive Party of the Maldives (PPM) is seeking to replace vice-president Dr Mohamed Jameel Ahmed, who some MPs have accused of incompetence and disloyalty. Tourism minister Ahmed Adeeb is expected to take over the vice-presidency.

The vote has bitterly divided opposition supporters and leaders.

Opposition Jumhooree Party (JP) MP Ali Hussein said:

Critics say the vote is undemocratic and argue the Constitution is not to be toyed with in the interests of a few. But supporters describe the deal as pragmatic, and claim Nasheed’s transfer to house arrest offers hope of an end to a five-month long political crisis.

The great fall

For some, the amendment is a victory for the opposition as it “eliminates” three strongmen from Maldivian politics; vice-president Jameel, former president of 30 years Maumoon Abdul Gayoom, who is now in his early 80s, and JP leader Gasim Ibrahim, who contested in both the 2008 and 2013 presidential polls, but will be 66 and ineligible in the 2018 election.

Jameel is particularly unpopular among Nasheed’s supporters. He led a religious-nationalist campaign against Nasheed’s Maldivian Democratic Party (MDP) government. In a 2013 campaign speech, he said: “Even if you [Nasheed] are elected, we will not hand over power. You will always remain in prison.”

Here’s one celebratory tweet:

Meanwhile, Gasim’s forced retirement from politics brings many, a great relief. He was a key figure in the fall of Gayoom’s 30-year-dictatorship. Although he backed Nasheed in the 2008 polls, the tourism tycoon played a key role in Nasheed’s ouster in 2012. He then helped Yameen defeat the MDP in 2013.

In January, he allied with the MDP in an anti-government campaign, but abandoned ship when the government slapped a US$90.4million fine on his tourism businesses. The “kingmaker’s” retirement will level the playing field between the two major parties, the PPM and the MDP.


“At the very least, we have been saved from these two,” said an opposition supporter.

If Adeeb is appointed to the vice-presidency, it will undermine the Gayoom family’s hold on power. The PPM had, in fact, backed the amendment against Gayoom’s wishes. The former president, who also heads the PPM, said last week: “There is no point to a man whose opinions are of no value staying on as PPM president.”

Gayoom’s son, MP Faris Maumoon, was absent from today’s vote.

President Yameen, as Gayoom’s half-brother, was elected on his popularity and Gasim’s backing. But in the past 18 months, he has created his own power base, with hand picked MPs and ministers. His right-hand man is tourism minister Adeeb.

New political actors

Why the sudden drive to replace the vice-president? PPM MPs have said Jameel is incompetent. But the opposition claims Yameen is fatally ill and is seeking a loyal deputy ahead of a major surgery. It is precisely Adeeb’s rise to power that some opposition supporters fear. He has been accused of massive corruption and illicit connections with gangs. Why tamper with the Constitution to bring an unelected minister to power?

Azim Zahir, a political science student at the University of Sydney, said: “This amendment is clearly undemocratic as its objectives are to ultimately negate the democratic impulse behind giving the people a direct say in the election of a vice-president and also negates the electoral wish of a majority in 2013.

“It allows changes to the constitution at the wish and whim of the government of the day, and in this case that wish is to appoint as vice-president, a politician perceived as highly corrupt and suspected in egregious crimes such as torching of TV stations, and abduction of journalists.”

But one opposition MP asked how today’s vote had been undemocratic:

Aishath Velezinee, a whistle-blower and former member of the judicial watchdog, said: “The problem is not the substance of the constitutional amendment, but the manner and purpose of that amendment.”

Fuwad Thowfeek, the former Elections Commissioner, agreed: “As a matter of principle, I don’t believe that anyone should support a change in any article of our constitution for the personal gain of anyone or any party.”

Supporters of the vote, however, say Adeeb is and will continue to run the show with or without the constitutional amendment. Although there have been no changes to the letter of the Constitution until today, the parliament and the Supreme Court have violated its spirit with the dismissal of the Auditor General, the guidelines for the elections commission and the human rights watchdog, and the dismissal of the Chief Justice.

Honor the deal?

More pressing are the following questions: Will the government honor its promise and keep Nasheed under house arrest? Why didn’t the opposition demand Nasheed’s unconditional release? Was a constitutional amendment worth eight weeks of house arrest?

What kind of precedent are we setting if we allow the government of the day to hold opposition leaders to ransom for votes?

Previous political compromises have not worked out well for the MDP. For instance, in 2010, the MDP reached a compromise on appointments to the Supreme Court and the appointment of unqualified judges to the judiciary. Those same judges sentenced Nasheed and other opposition politicians to jail this year.

In 2013, Nasheed and the MDP accepted the findings of a Commonwealth-backed inquiry that the 2012 transfer of power was constitutional. The lack of accountability for the unlawful transfer of power haunts the Maldives to this day. Isn’t it high time the MDP learnt from its mistakes?

But, opposition supporters say the MDP was forced to compromise then and now due to the political reality of the day. Although the MDP is the largest political party, it continues to face a hostile parliament, judiciary and security forces. Democracy is won through hard compromises and dirty deals.

Supporters say a deal is necessary as President Yameen has refused to back down despite the mounting diplomatic pressure, the daily protests and the historic marches of February 27 and May 1.

“To free a man held by a terrorist organization, you must make a deal. You cannot argue on legal principles,” said Mujthaba Saeed, an MDP member. “I do not trust the government. They might take Nasheed back to jail at any moment. But what we are trying to do is to find a path forward from a slim chance.”

Hope

Many of Nasheed’s supporters say his release alone will energize and reinvigorate the opposition’s campaign. They also hope that the government will compromise further by dropping charges against hundreds of protesters and free jailed leaders.

“We are incapacitated to stand up for ourselves without this one unique single person who inspires us. I selfishly want to see Nasheed free because all hope for freedom of expression and right to assembly are weakening day by day when Nasheed remained in jail. Less and less people turn up to protest. But today, it just seems more alive, people are talking about this, people care, There is hope,” said Ifham Niyaz.

Others have called for soul-searching. “Sell your votes in every election. Stay at home and criticize every move? Have you no shame?” asked one supporter. Another said: “It is Nasheed who must rot in jail. It is Nasheed who must protest on the street. But I, I will stay home and tweet.”

The disappointment has led still others to call for a new political ideology and new political leaders. But who will that be? Azim, the PHD student at Sydney University said: “I don’t know. I’m just saying democratic, utopian energies and hopes have been exhausted. Current times, crises, open up for new possibilities and new people. I just wish there could be such visions and such people and such parties. I suspect many people share these same sentiments, but this may not be sufficient enough for a change within the next five years.”

Transparency

Some opposition supporters have censured critics for the storm of criticism against the MDP for choosing a deal. “Where were all these critics when MDP was alone on the streets?” asked one Twitter user.

“No one had an opinion when the constitution was raped by Gayooms so that they could come back. Even now, the only point they want to discuss is MDP cutting a deal,” said photographer Munshid Mohamed on Facebook. In reply, his friend said: “If Gayoom’s and PPM actions are the standard for our commitment to democracy, then we’ve lost before we even started.”

For many, this is the sticking point. They expect better of MDP. The party in January had urged the public to follow it in a campaign to defend the constitution. But today they voted to amend the same constitution.

“I thought about it, I can’t agree with the MDP. If this is pragmatism – then so is the guy who sells his vote for an Air Conditioning unit,” said blogger Yameen Rasheed.

One thing is clear. The people deserve to know more. If the government and the opposition are making deals, it must be through open and transparent negotiations. MDP stands more to lose than any other party with the current opacity. As a party that stands for democracy, it cannot ask its supporters to blindly trust all of its decisions.

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Gasim to retire from politics

The leader of the opposition Jumhooree Party (JP) Gasim Ibrahim has announced he will retire from politics once his five-year term as Maamigili MP expires in 2019.

The philanthropist and tourism tycoon, who contested the 2008 and 2013 presidential polls, told newspaper Haveeru today that he plans to resign as the JP leader. He also said he no longer wants to run for the presidency.

“My experiences of the two [presidential] elections I’ve contested are clear. It has damaged my businesses. Now I want to step down and serve the people. There is a lot I can do to serve. I have served many people for the sake of humanity,” he said.

Gasim’s announcement comes weeks after the government slapped a US$90.4million fine on his Villa Group and froze the accounts of several subsidiary companies.

The claim was issued after the JP split from the ruling coalition and allied with the main opposition Maldivian Democratic Party (MDP) in a campaign against President Abdulla Yameen’s alleged authoritarianism.

The JP is meanwhile in disarray with two senior officials facing terrorism charges.

Gasim is in Germany at present, Haveeru said. He has been abroad since late April. In a tweet in May, he said he was in Thailand.

Party over

Gasim on Tuesday also appealed to the 10-member JP parliamentary group to support a ruling coalition-proposed constitutional amendment that would bar him from the presidency.

“The JP’s constitution states the leader of the party is its presidential candidate. I fill that position today. But with my decision to support that [the constitutional amendment] I cannot hold that position. So I will hold a congress and hand over the leadership to someone else,” he said.

The ruling coalition wants to set an age limit of 30 to 65 years for the presidency. The constitution at present says that presidential candidates must be 35 years of age.

Gasim will be 66 in 2018.

The MP said he would not abandon the party even if he stepped down from its leadership. “This is a party of 30,000 members. I do not want to destroy the Jumhooree Party. So I will settle the party debts to zero and hand over to a new leadership.”

The JP is currently the only opposition party in talks with the government.

The JP’s last-minute backing was key in President Yameen’s 2013 presidential win. The ruling Progressive Party of the Maldives (PPM) and the JP formed a coalition government, but tensions arose within months after JP accused the ruling party of failure to honor provisions in the coalition agreement including awarding JP members’ jobs.

Gasim had also backed ex-president Mohamed Nasheed in 2008 against the president of 30 years, Maumoon Abdul Gayoom.

The JP and Nasheed’s MDP had formed a coalition with several smaller parties, but the coalition, too, fell apart within its 100 days. Gasim went on to play a key role in Nasheed’s 2012 ouster.

Economic sanctions

According to Haveeru, Gasim is in Frankfurt to save his ailing company.

The Villa Group – which operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport and education – has faced difficulties in paying its 5000 staff due to the tax authority’s decision to freeze company accounts.

The Villa Group is contesting the US$90.4million claim at the civil court.

The claim has cost the company a US$80million loan, Villa has said.

“We are in dire straits, unable to pay salaries. With the accounts freeze, we are facing difficulties in sending money to students we provide scholarships for. Tourism occupancy is also very low. So I am looking for ways to improve the company’s financial situation,” Gasim said.

The Villa Foundation is currently supporting some 350 students’ higher education in the Maldives and abroad. The foundation says it has provided some 5000 students with full or partial scholarships.

Since the tax authority issued the US$90.4million claim, Gasim has not been seen at opposition protests and has remained silent on the ongoing political crisis triggered by the jailing of several politicians including Nasheed.

MPs and senior officials of the JP, however, went on to form a new coalition with the MDP and the religious conservative Adhaalath Party in March.

Gasim served as Minister of Finance from 2005 – 2008 and served as the Speaker of the special parliament set up to draft the Maldives’ new constitution in 2008.

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JP leader backs law that would bar him from presidency

The leader of the Jumhooree Party (JP) Gasim Ibrahim has urged MPs to back a constitutional amendment that would bar him from contesting the presidential elections in 2018.

In a message to JP MPs on Sunday, the tourism tycoon and MP, said: “I request you to vote for the proposal to set age limits on presidential and vice-presidential candidates.”

Gasim has been in Bangkok since late April.

The amendment – proposed by a ruling coalition MP – proposes setting an age limit of 30 to 65 years for the presidency. The constitution at present only says that a candidate must be 35 years of age.

“Gasim Ibrahim called some MP’s on their phones and requested that they support the amendment. He also texted some MP’s requesting support for the amendment. However the JP parliamentary group is yet to make a decision,” the JP spokesperson Ali Solih told Minivan News today.

In 2018, Gasim will be 66.

The amendment bill was accepted with 44 votes in favour, five against, and sent to a parliamentary committee for review.

A three-quarters majority or 64 votes will be needed to amend the constitution. The Progressive Party of Maldives (PPM) and coalition partner MDA controls 48 seats in the 85-member house.

The ruling coalition will need the backing of the opposition Maldivian Democratic Party and JP MPs to pass the amendment. Several JP MPs voted in favour of the bill.

The bill has fueled speculation of President Abdulla Yameen planning to replace Vice President Dr Mohamed Jameel Ahmed with tourism minister Ahmed Adeeb, who is now 33 and ineligible for the position.

JP MP Abdulla Riyaz was not available for comment at the time of going to press.

The criminal court has meanwhile said they are not aware of an arrest warrant for Gasim. Newspaper Haveeru in early May reported the court had issued an arrest warrant for Gasim on charges of funding the opposition’s May Day protest.

A second meeting between JP representatives and the government on Sunday has also been postponed.

JP MPs met with cabinet ministers on June 9, to begin talks proposed by President Abdulla Yameen, and proposed conducting talks with all the opposition parties and the ruling Progressive Party of the Maldives (PPM).

MPs also asked for the release of imprisoned politicians including ex-president Mohamed Nasheed, judicial independence and investor protection.

President Yameen called for separate talks with the three allied opposition parties, days after the tax authority froze the accounts of several tourism companies that belong to Gasim. The government claims Gasim’s Villa Group owes the state US$90.4million in rent and fines.

The opposition says the claim is politically motivated, and the Villa Group is contesting it at the civil court.

Gasim in several tweets on Friday distanced himself from the opposition’s June 12 sit-in, and urged Villa employees not to participate.

The JP deputy leader Ameen Ibrahim and council member Sobah Rasheed have been charged with terrorism over the May Day protest. Nearly 200 people were arrested after violent clashes broke out between the police and protesters.

The pair are abroad. Sobah has said he is seeking political asylum.

The JP split from the ruling coalition in January citing authoritarianism, and allied with the MDP in a campaign to “defend the constitution.”

Ex-president Mohamed Nasheed was arrested a week after the two parties launched daily protests. He was swiftly brought to trial over the detention of a judge during his tenure and sentenced to 13 years in jail on terrorism charges.

Since the tax authority issued the US$90.4million claim, Gasim has not been seen at opposition protests and has remained silent on the jailing of several politicians.

MPs and senior officials of the JP, however, formed a new coalition with the MDP and the religious conservative Adhaalath Party in March.

The Villa Group has struggled to pay salaries for some 5000 staff. Some have been dismissed.

 

 

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JP proposes all-party talks in first meeting with government

The opposition Jumhooree Party (JP) has proposed conducting all-party talks to resolve the ongoing political crisis at the first meeting between the opposition party and President Abdulla Yameen’s representatives today.

JP MP Abdulla Riyaz told Minivan News that the party proposed three other issues for discussion: freeing opposition politicians in jail or facing criminal prosecution within legal bounds, ensuring the independence of the judiciary, and protecting investors.

A second meeting has been scheduled for 3:00pm on Sunday to discuss the proposals.

President Abdulla Yameen had called for separate talks with the three allied opposition parties last month, but Riyaz said the JP today proposed setting up a “platform” for discussions among all political parties, including the ruling Progressive Party of Maldives (PPM).

The JP’s representatives for the talks are MPs Riyaz, Ilham Ahmed, Faisal Naseem, and Hussain Mohamed.

The government’s representatives include tourism minister Ahmed Adeeb, president’s office minister Mohamed Hussain Shareef ‘Mundhu,’ and environment minister Thoriq Ibrahim.

Mundhu told the press that the discussions took place in “a friendly atmosphere” and both sides agreed on how to carry the talks forward. The ministers will present the JP’s proposals to the president, he added.

All-party talks

The president’s official invitation for talks came after months of continuous protests over the imprisonment of ex-president Mohamed Nasheed and ex-defence minister Mohamed Nazim as well as a US$90.4 million claim on JP leader Gasim Ibrahim’s Villa Group.

The JP immediately agreed to sit down with the government without conditions.

Gasim has meanwhile been in Bangkok since late April. According to local media, the criminal court has issued an arrest warrant for Gasim on charges of financing a historic anti-government mass protest on May 1.

The JP’s deputy leader Ameen Ibrahim and council member Sobah Rasheed are accused of inciting violence at the May Day protest, and have been charged with terrorism. If convicted, they face between 10 and 15 years in jail.

Both Ameen and Sobah are out of the country. In a video message this week, Sobah said he is seeking political asylum.

President Yameen has meanwhile ruled out negotiations over Nasheed and Nazim’s release. His agenda focuses on political reconciliation, strengthening the judiciary and political party participation in socio-economic development.

The MDP has proposed Nasheed, chairperson Ali Waheed and MP Ibrahim Mohamed Solih as representatives. The Adhaalath Party proposed its president Sheikh Imran Abdulla, who is currently in police custody. He is also charged with terrorism over the May Day protest.

The government has rejected Nasheed and Imran as representatives.

Speaking to Minivan News today after Riyaz declared that the JP was not involved with the ‘Maldivians against tyranny’ alliance and the upcoming mass protest on June 12.

MDP vice president Mohamed Shifaz said that JP members were working with the alliance in their individual capacity. He noted that the JP had not formally joined the alliance or supported the May Day protest.

MDP MP Ibrahim Mohamed Solih meanwhile told the press this afternoon that all political parties should sit down together for the talks in order to ensure a positive outcome.

“We think that a good result can be achieved when parties of all ideologies sit at the same table for discussions as all parties were given the same agenda and they have the same concerns,” he said.

The newly-appointed British High Commissioner to the Maldives has also supported all-party talks.

“We think it’s important that talks involving all parties should take place. It seems to me to be logical that talks should take place involving all the parties together, both the party in government and parties in opposition,” James Dauris said in an interview with Minivan News during a two-day visit to the Maldives in May.

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Government freezes Villa accounts

The central bank has frozen the accounts of several companies owned by opposition Jumhooree Party (JP) leader Gasim Ibrahim, over a US$90.4 million payment allegedly owed as unpaid rent, fines and interest on several properties leased for tourism.

The Villa group has refused to make the payment and is contesting the tax authority’s claim at the civil court. Gasim has accused the government of unfairly targeting his business interests.

The Villa group operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport and education. Only the accounts of companies which hold the properties were frozen. They are Villa Shipping, Villa Holidays, Gazeera Pvt Ltd and Maanenfushi Pvt Ltd.

Villa officials on Tuesday told local media the accounts slated to be frozen are empty.

But the Maldives Inland Revenue Authority (MIRA) says the government can suspend all services to the company, including customs clearance and foreign work visas, if it is unable to recover owed sums through the frozen accounts.

MIRA issued the US$90.4 million notice in February after the tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies for resort development.

The move followed Gasim’s JP forming an alliance with the main opposition Maldivian Democratic Party. However, the government denies the opposition’s accusations of unfairly targeting Gasim’s business interests.

The properties at stake were leased under a settlement agreement signed with the tourism ministry on December 12, 2013, less than a month after president Abdulla Yameen took office.

Some 27 cases challenging the termination of the agreements and MIRA’s notice as well as appeals of the civil court’s refusal to grant stay orders are ongoing at court.

Villa – which won the tax authority’s “Ran Laari” award last year as one of five companies that paid the highest amount to the state – insists it does not owe any money to the state.

The notice for payment expired on April 18, but MIRA did not freeze the company’s accounts saying the move may negatively affect the Maldivian economy, local media reports.

The Villa group has previously said freezing its accounts will “send shockwaves” through the Maldivian economy.

“It is not only Villa’s shareholders’ and the company’s rights that are lost [if bank accounts are frozen]. The rights of a lot of employees who work at the company, small and medium-sized businesses dependent on this company, guests who have made bookings at our resorts, tour operators, and many other people, would also be lost,” Villa Group’s executive director Shimad Ibrahim had said.

The Villa group employs over 5,000 people.

The central bank has also frozen the accounts of JH Resorts Pvt Ltd, the Maldives Tourism Development Corporation, Asia resorts, Yacht Tours Pvt and Medhufushi and the accounts of AAA Pvt Ltd.

Since the notice was issued, Gasim has not been seen in opposition protests or made any comments over a crackdown on the opposition, including the arrest of JP deputy leader Ameen Ibrahim on May 2.

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Villa accounts freeze will ‘send shockwaves’ through Maldives economy

Jumhooree Party leader Gasim Ibrahim’s Villa Group has warned of negative repercussions for the Maldivian economy if the tax authority freezes the company’s bank accounts next week.

A 20-day final notice seeking US$90.4 million allegedly owed as unpaid rent, fines and interest expires on Saturday (April 18), while the civil court last week refused to grant stay orders halting enforcement of the notice.

The enforcement policy for defaulting taxpayers involves freezing bank accounts to recover the unpaid amounts and ceasing to provide services from any state institution.

Villa – which won the tax authority’s “Ran Laari” award last year as one of five companies that paid the highest amount to the state – insists it does not owe any money to the state.

“It is not only Villa’s shareholders’ and the company’s rights that are lost [if bank accounts are frozen]. The rights of a lot of employees who work at the company, small and medium-sized businesses dependent on this company, guests who have made bookings at our resorts, tour operators, and many other people, would also be lost,” said Villa Group executive director Shimad Ibrahim at a press conference last night.

Banks that have issued loans to Villa will also be affected, he added.

“In sum, we are having to face something on Sunday that will send shockwaves through the whole economy,” he said.

The holding company Villa Shipping and Trading Pvt Ltd conglomerate operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport, and education.

Villa business secretary Ibrahim Rasheed added: “We are all holding our breath.”

Rasheed said the company will continue to seek “a peaceful resolution” and “hope for justice”.

He noted that Villa companies employ about 5,000 people.

In an interview on his Villa Television on Saturday, Gasim repeatedly appealed for talks with president Abdulla Yameen and tourism minister Ahmed Adeeb to resolve the dispute.

However, the Villa officials said the government has not responded to “pleas” for discussions.

Adeeb meanwhile accused Gasim at a ruling coalition rally last week of hoarding islands and lagoons and refusing to pay money owed to the state.

“Fabricated”

The Maldives Inland Revenue Authority (MIRA) issued the US$90 million notice after the tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies for resort development.

The move followed Gasim’s JP forming an alliance with the main opposition Maldivian Democratic Party. However, the government denies the opposition’s accusations of unfairly targeting Gasim’s business interests.

Some 27 cases challenging the termination of the agreements and MIRA’s notice as well as appeals of the civil court’s refusal to grant stay orders are ongoing at court.

While the tourism ministry cited lack of “good faith” as the reason, the Villa officials insisted the terminations were unlawful and that the fines were “fabricated”.

If rent is not paid, the government is required to give a 30-day notice before issuing fines or seizing the properties, they noted.

The lease agreements also specify procedures for termination on the grounds of financial or non-financial breaches, but the tourism ministry’s termination notices did not refer to any violation.

“This is something that investors should seriously consider. This is a frightening and dangerous thing,” said Villa lawyer Ahmed Shafeeq.

In response to a letter from Villa contending there was no basis for the fines, Shimad said MIRA told the company it was “following instructions” from the tourism ministry.

Settlement agreement

The properties at stake were leased under a settlement agreement signed with the tourism ministry on December 12, 2013, less than a month after president Yameen took office.

The settlement agreement was reached after the Supreme Court on November 19 ordered the state to pay US$9.7 million to Villa in one month as compensation for damages incurred in a project to develop a city hotel in Laamu Kahdhoo.

As part of the settlement, Villa withdrew cases involving a dispute over a city hotel in Haa Dhaal Hanimadhoo and resort development on Gaaf Dhaal Gazeera.

In return, the government signed five ‘amended and restated lease agreements’ with Villa for three islands and several Kaafu atoll lagoons.

The government also agreed to forgo rents for the islands and lagoons for a construction period of five years and seven years, respectively.

However, after the settlement agreement was terminated in February, MIRA’s notice stated that Villa owed US$75.5 million as fines, US$600,000 as interest, and US$14.8 million as unpaid rent dating back to original lease agreements signed in 2006 and 2007.

The Villa officials noted that the company has paid over US$15 million as advance payments for the properties.

In the case of Kahdhoo, MIRA claimed an unpaid rent of US$293,000 and a fine of US$10 million – 34 times the allegedly unpaid rent – despite the 2013 Supreme Court judgment declaring Villa does not owe rent for the property, the officials said.

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Gasim’s Villa group bankruptcy imminent

Jumhooree Party (JP) leader Gasim Ibrahim’s Villa Group is facing bankruptcy with the courts refusing to issue stay orders on a US$90 million payment to the state ahead of an April 18 deadline.

The civil court yesterday denied Villa’s requests for stay orders, stating the company does not face “irrevocable losses” if a notice by the tax authority to collect US$90 million in allegedly unpaid rent and fines is enforced.

The rulings pave the way for the state to freeze Villa’s bank accounts after April 18.

Gasim has said unfairly freezing Villa’s accounts would “impoverish thousands of citizens” and that the public does not want one of the largest companies in the country to “head towards bankruptcy.”

However, the court said the state could reimburse and compensate the company if the ongoing cases are decided in Villa’s favour.

The JP launched daily anti-government demonstrations in alliance with the main opposition Maldivian Democratic Party (MDP) in early February.

However, since the notice was issued, Gasim has not been seen in opposition protests or made any comments on a deepening political crisis.

Gasim made an appearance on Villa TV on Saturday for the first time in weeks and appealed for discussions with the government to resolve the dispute, insisting that Villa does not owe the “imaginary” amount.

He noted the JP had not condemned the sentencing of former president Mohamed Nasheed to 13-years in jail on terrorism charges last month

“When the judiciary made a judgement I don’t want to comment on it,” he said.

The JP is remaining “silent” and presently does not have a “stand” of supporting any party, Gasim said.

The party is not officially a part of the ‘Maldivians against brutality’ campaign launched by the MDP and religious conservative Adhaalath Party, he added.

Two European banks have cancelled loans worth US$80 million due to media reports of the notice, Gasim said.

Gasim’s interview followed strong criticism from tourism minister Ahmed Adeeb at a ruling coalition rally last week. He accused the tycoon of hoarding islands and lagoons and refusing to pay money owed to the state.

Adeeb also said the JP leader was “in hiding” after unsuccessfully seeking the presidency through his opposition alliance.

In response, Gasim said he is following his best judgment and suggested Adeeb’s anger might stem from insecurity or “lack of self-confidence”.

However, Gasim said he does not bear “animosity towards anyone” and repeatedly said he is ready to meet president Abdulla Yameen or Adeeb at any time.

Senior members of the JP are active in street protests in their individual capacity, Gasim said.

Bankruptcy

The government denies the opposition’s accusations of unfairly targeting Gasim’s business following the JP’s split from the ruling coalition.

The tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies on February 5, shortly after the JP formed the alliance with the MDP.

On February 26, a day before an MDP-JP anti-government mass rally, the Maldives Inland Revenue Authority (MIRA) gave a 30-notice for Villa to pay US$90 million allegedly owed as unpaid rent and fines for the seized properties.

Gasim did not attend the February 27 protest march after failing to return from a trip to Sri Lanka

After the 30-day notice expired, MIRA issued a 20-day notice warning Villa that its accounts will be frozen under the authority’s enforcement policy against defaulting taxpayers.

After the tourism ministry terminated the agreements, Villa filed five cases against the ministry in February, contending that the move was unlawful.

Five additional cases were filed against MIRA over the US$90 million notice.

In rulings during the past two weeks, the civil court refused to grant stay orders in any of the cases. Villa is currently in the process of appealing the rulings at the High Court.

While the court initially granted a stay order in one case in early February, the High Court overturned the ruling.

A Villa official told Minivan New today that the judge who granted the stay order was transferred to the drug court.

The official explained that the properties at stake were leased as part of a settlement agreement signed with the government on December 12, 2013, less than a month after president Yameen took office.

The settlement agreement was reached after the Supreme Court ordered the state to pay over US$9 million to Villa. As part of the settlement, the government signed ‘reinstated and amended lease agreements’ with Villa for several islands and lagoons.

Gasim noted that Villa paid the state about US$15.8 million eight years ago as advance payment for the leased properties.

However, MIRA issued the 30-day notice claiming Villa owed US$75 million as fines and more than US$14 million as unpaid rent dating back to the original lease agreements signed in 2006 and 2007.

Under the settlement agreement, the government had agreed to forgo rents for the leased islands and lagoons for five years and seven years, respectively.

Correction: A previous version of this article stated that the tax authority is seeking US$100 million from the Villa Group, based on statements by Gasim Ibrahim. The company has since explained that the accurate figure is US$90 million. 

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