Tag: Hassan Ziyath

High Court to rule on Majlis reappointment of auditor general

The High Court has today accepted a complaint lodged by former Auditor General (AG) Niyaz Ibrahim challenging the appointment of his replacement.

Niyaz was dismissed from his job when President Abdulla Yameen on Monday approved Hassan Ziyath as the new AG hours after 59 MPs voted in his favour.

The ruling Progressive Party of the Maldives (PPM) had pushed through a surprise amendment to the Audit Act on October 29 requiring the AG be reappointed within 30 days.

Niyaz’s lawyer Ibrahim Riffath told Minivan News Niyaz could not be dismissed half way through his seven year term through an amendment to the Audit Act.

“Article 215 of the Constitution clearly sets the AG’s term to seven years. Niyaz was appointed in May 2011. Further, Article 218 states the AG’s position only becomes vacant if the incumbent resigns or through a no confidence vote by the People’s Majlis,” he explained.

“The Majlis will have to amend the constitution to dismiss him by any other means.”

Niyaz has also requested that the High Court issue an injunction on the enforcement of the new amendment.

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Niyaz challenges auditor general reappointment clause at High Court

Former Auditor General (AG) Niyaz Ibrahim has requested the High Court to declare the People’s Majlis’ decision to reappoint the AG as unconstitutional.

President Abdulla Yameen yesterday approved Hassan Ziyath as the new AG hours after 59 MPs voted in his favor. The ruling Progressive Party of the Maldives (PPM) had pushed through a surprise amendment to the Audit Act on October 29 requiring the AG be reappointed within 30 days.

Speaking to Minivan News, Niyaz’s lawyer Ibrahim Riffath said Niyaz could not be dismissed half way through his seven year term through an amendment to the Audit Act.

“Article 215 of the Constitution clearly sets the AG’s term to seven years. Niyaz was appointed in May 2011. Further, Article 218 states the AG’s position only becomes vacant if the incumbent resigns or through a no confidence vote by the People’s Majlis,” he explained.

“The Majlis will have to amend the constitution to dismiss him by any other means.”

Niyaz has also requested that the High Court issue an injunction on the enforcement of the new amendment.

According to Riffath, the High Court is yet to make a decision on accepting the case as the matter had been lodged at the Supreme Court as a public interest litigation matter.

The Supreme Court this evening rejected the case. The High Court now has no legal barriers in examining the case, Riffath said.

“This is a very sensitive issue. I hope the High Court expedites a verdict. If the amendment is unconstitutional, as we believe it to be, then the legality of the current auditor general’s actions are questionable.”

Yameen’s appointment of Ziyath for the post has raised controversy as his brother, Abdulla Ziyath was recently implicated in a US$6million corruption scandal alongside tourism minister Ahmed Adeeb.

Niyaz had revealed the corrupt transactions in a special audit report a day after PPM MPs pushed through the Audit Act amendment.

The audit report accused Abdulla Ziyath, the Managing Director of state owned Maldives Marketing and Public Relations Corporation (MMPRC) of illegally pushing through loans worth US$6million from state funds to two private companies owned by Adeeb’s family members.

Adeeb has denied allegations, and accused Niyaz of colluding with MP and former Deputy Speaker of parliament Ahmed Nazim in releasing the audit report. Adeeb suggested Nazim had a personal vendetta against him following his refusal to support Nazim for the Majlis Speakership in May.

The Criminal Court on October 26 withheld Nazim’s passport on allegations of blackmail.

Hassan Ziyath yesterday received cross party support from ruling Progressive Party of the Maldives (PPM), its allies the Maldives Development Alliance (MDA) and Jumhooree Party, as well as the opposition Maldivian Democratic Party (MDP).

MDP MPs including ‘Reeko’ Moosa Manik, Ahmed Marzooq, ‘Rukuma’ Mohamed Abdul Kareem and Ibrahim ‘Mavota’ Shareef voted in favor despite the party previously claiming the amendment was unconstitutional.

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President appoints Hassan Ziyath as new auditor general

President Abdulla Yameen has today appointed Hassan Ziyath as the new auditor general within one hour of gaining parliamentary approval.

Ziyath – who received the consent of the parliament at around 1.30 pm – was handed the letter of appointment by President Yameen at a function held at the president’s office around 2.30pm.

The new auditor general won the approval of the Majlis, with 59 of the voting members from across the parties unanimously supporting his appointment.

The nomination of Ziyath for the post by President Yameen has aroused contoversy as his brother, Abdulla Ziyath was recently implicated in a US$6 million corruption scandal alongside  tourism minister Ahmed Adeeb.

In an audit report released on October 29, then auditor general Niyaz Ibrahim accused Abdulla Ziyath – Managing Director of state-owned Maldives Marketing and Public Relations Corporation (MMPRC) – of illegally pushing through a US$6 million loan from state funds to two private companies.

The audit report was signed on the same day that the ruling Progressive Party of Maldives brought an amendment to the Audit Act requiring the president to reappoint the auditor general within 30 days of the amendments have been approved.

Ziyath was nominated out of the four individuals who applied for the post, which holds an equivalent salary to the president’s – currently at MVR100,000 (US$6500).

The opposition Maldivian Democratic Party (MDP) had ferociously opposed the amendments, stating that the bill would allow the incumbent to be discharged without following the constitutional provisions for impeachment.

MDP MP Rozaina Adam on November 3 said that the party would challenge the constitutionality of the amendment, though it was subsequently with 36 MPs voting in favor and 22 against.

Meanwhile, Niyaz – who had served only three years of his seven year long term – told local media that he would not apply for the post again, instead choosing to challenge the constitutionality of the amendments in the Supreme Court.

While speaking to Haveeru at the time, Niyaz said that he received threats and intimidation from the tourism minister after he started investigating the corruption scandal.

However, Adeeb condemned the report as politically motivated, and accused Niyaz of colluding with MP and former Deputy Speaker of Majlis Ahmed Nazim to discredit him after he refused to back Nazim for the Majlis Speakership in May.

Adeeb also expressed dismay at reports that Nazim had attempted to link him with the disappearance of Minivan News journalist Ahmed Rilwan.


Related to this story

Brother of official implicated in MMPRC corruption scandal nominated for Auditor General

Majlis passes amendment allowing president to reappoint auditor general

Tourism Minister implicated in US$6million corruption scandal

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Brother of official implicated in MMPRC corruption scandal nominated for Auditor General

President Abdulla Yameen has nominated a family member of a state official implicated in corrupt transactions worth US$6million for the post of Auditor General (AG).

Nominee Hassan Ziyath is the brother of Managing Director of state-owned Maldives Marketing and Public Relations Corporation (MMPRC), Abdullah Ziyath.

In a damning audit report on October 29, incumbent AG Niyaz Ibrahim accused Abdulla Ziyath of illegally pushing through a US$6million loan from state funds to two private companies.

The report was released a day after ruling Progressive Party of the Maldives (PPM) MPs brought a surprise amendment to the Audit Act requiring the reappointment of Auditor General within 30 days. The President’s Office opened up applications for the position immediately.

Niyaz has only served three years of his seven-year term.

The PPM holds a majority in parliament with 43 of the total 85 MPs, while coalition partner Maldives Development Alliance controls five seats.

Hassan Ziyath is currently the chairman of the Housing Development Corporation (HDC). He contested in March’s parliamentary elections for Malé’s Hulhuhenveiru constituency on the PPM ticket.

The MMPRC audit also implicated Tourism Minister Ahmed Adeeb of involvement in the corrupt transactions and said the loans were issued to companies owned by Adeeb’s family members.

Adeeb has condemned the report as politically motivated, and accused Niyaz of colluding with MP and former Deputy Speaker of Majlis Ahmed Nazim to discredit him after he refused to back Nazim for the Majlis Speakership in May.

In an interview with newspaper Haveeru, Niyaz dismissed Adeeb’s claims and accused Adeeb of threats and harassment following the Auditor General’s decision to look into the case.

The independent AG position was created in 2008 and vested with the power to audit all state offices, institutions funded by the state, and companies in which the state owns shares.

The auditor general’s position receives a salary equivalent to the president’s salary, currently MVR100,000.

The country’s first independent Auditor General Ibrahim Naeem was sacked by former President Maumoon Abdul Gayoom’s former party Dhivehi Rayyithunge Party (DRP) in 2010 for allegedly using state funds to buy a tie and visit Baa Atoll Thulhadhoo Island. Gayoom currently heads the PPM.

During the multiparty elections of 2008, Naeem had published several audit reports revealing high levels of corruption within Gayoom’s government.

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Tourism Minister implicated in US$6million corruption scandal

An audit report has implicated Tourism Minister Ahmed Adeeb in a corruption scandal involving US$6million, a day after ruling Progressive Party of the Maldives (PPM) amended the Audit Law to reappoint the Auditor General (AG).

AG Niyaz Ibrahim, in today’s special audit report, said the Maldives Marketing and Public Relations Company (MMPRC) obtained a US$1million loan from Maldives Tourism Development Corporation in the guise of making an urgent payment to a foreign party and subsequently loaned the money to a company owned by Adeeb’s father.

Adeeb owned a 35 percent share in Montillion International Private Ltd, but transferred his shares to his father in March 2012 when he assumed the post of Tourism Minister.

The company only made MVR 70,100 in 2011 through trade, but in the period between 2012 and 2014, US$ 6.8 million and MVR 3.6 million from tourism related business rolled through the company’s accounts, the report noted.

In a separate case, the MMPRC also asked the Maldives Ports Ltd (MPL) to hand over MVR 77.1million to pay the company US$5million at a later date. MPL agreed to transaction despite demonstrating no need for dollars.

MMPRC immediately transferred MVR 77.1million to a private company Millenium Capital Management Pvt Ltd. Only US$ 3 million of the pledged US$5million has been paid back. The audit report said Adeeb helped MMPRC push the deal through.

It also suggested the Tourism Ministry awarded a company owned by an Italian an island for resort development to pay back US$2.25million of the US$6million MMPRC owed to MPL and MTDC.

According to the report, Adeeb has failed to declare assets as per Article 138 of the Constitution since he took up the post of Tourism Minister.

The Tourism Ministry and Maldives Inland Revenue Authority (MIRA) refused to cooperate with the investigation, the report noted.

In a tweet Adeeb has condemned the report as politically motivated.

Channel News Maldives (CNM) broke the story of the US$6million corruption scandal in May. Its reporter Abdulla Haseen was charged with disobedience to order in August, but the Prosecutor General withdrew the charges a few weeks later.

Minivan News understands former deputy Speaker of Majlis Mohamed Nazim was involved in leaking documents to CNM. His passport was withheld last week, but Nazim left the country on the date the warrant was issued.

Millenium, Montillion, New Mood

Niyaz said MMPRC had obtained MVR77.1million from MPL and US$1million from MTDC to provide illegal loans to private companies.

Although MPL approved the MVR 77.1million payment in exchange for US$5 million, the company had no need of dollars and the transaction was made on MMPRC’s initiation, not MPL’s.

Further, MPL’s 2014 budget shows it required only US$2.2million for machinery in 2014, but the bidding process had not been opened at the time of transaction. MPL also had US$800,000 in treasury bonds and a large amount of dollars in its accounts.

Moreover, MMPRC is not authorized to engage in dollar trade and does not have the capacity to buy or sell US$5 million, as its working capital at the end of 2013 stood at US$4.5million and assets were only worth MVR 324,485.

MPL authorized the “risky” transfer after MMPRC issued two dated checks. When MMPRC failed to make its second payment of US$2.5 million on July 8, the agreement was amended to allow the company to pay back the money by December 1. The report said the amendment was made because Millennium failed to repay MMPRC on time.

In the second case, MMPRC on April 9 asked MTDC for an urgent loan of US$1million to make an urgent payment to a foreign party for tourism promotion. The loan was to be paid back by May 15.

The money was transferred to Adeeb’s father’s company Montillion on April 15.

But MMPRC made no payment to any foreign party in the period. The loan was paid back by New Mood Resort Pvt Ltd, which was given Dhaalu Atoll Maagau Island, at a head lease rent of US$2.25 million.

Toursim Ministry and MIRA refused to reveal details of the Maagau deal despite repeated requests, the audit report said.

Montillion is also accused of bribing a senior tourism ministry official with US$450,000 in February in a separate resort development deal.

Neither the Finance Ministry nor the MMPRC board were involved in either case. The MMPRC’s Managing Director Abdullah Ziyath personally handled all of the transactions, including picking up checks, against the company’s procedures.

Niyaz has recommended all individuals involved in the two cases be investigated for corruption and charged with abuse of power.

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Government to reclaim property awarded to ferry service providers

The government is seeking to reclaim properties provided to companies awarded contracts by the administration of former President Mohamed Nasheed in order to establish regional transport networks, President Abdulla Yameen said last night.

Speaking at campaign launching ceremonies for two Progressive Party of Maldives’ (PPM) parliamentary candidates, President Yameen contended that the transport networks had “failed” across the country.

“The network is at a halt in all areas. It is functioning in just two areas. In one of those areas it is a private sector party providing the service. The system has been very much weakened,” he said.

The Maldivian Democratic Party (MDP) government awarded 200 plots of lands under its transport network agreements to the companies contracted to provide ferry services, Yameen noted, claiming that the bidding process was riddled with corruption.

“For islands given to develop resort, on average we are talking about an annual income of US$30 million. If we consider the total income of a resort we are talking about US$30 million dollars. Out of these 200 plots, a lot were given for resort development. All of them have now been sold,” he said.

While the public-private partnership project “in itself was good,” Yameen contended that it was the most wasteful and corrupt programme carried out by the MDP government.

The programme was intended to unduly benefit certain parties by awarding public property and funds, Yameen added, describing it as the worst such “in Maldivian history”.

“So the work we have to do is taking back such properties that can be beneficial to the public [and undo] the action of a group who claimed that there was corruption in the past and that they would stop it,” he said.

Of the two functioning transport networks at present, Yameen noted that ferry service was currently provided by the government-owned Koodoo Fisheries Company in Gaaf Alif and Gaaf Dhaalu atolls.

In October 2012, the MDP-controlled Gaaf Dhaal Atoll Council accused the previous company of ceasing ferry services and asked the transport ministry to cancel the agreement.

Yameen meanwhile vowed that there would not be a corruption case under his administration that would reach the Anti-Corruption Commission (ACC).

“During our five years, God willing you won’t hear of anything that could reach the ACC,” he said, adding that the commission was investigating allegations of corruption “from all sectors” during the MDP’s three years in government.

The government was also seeking to reclaim large plots of land in the capital awarded by the previous government to the MDP-controlled Malé City Council, Yameen said.

However, he added that reclaiming some properties might be difficult even through litigation as estate transactions were advanced in some cases.

PPM campaign

Speaking at the campaign launching event for the PPM’s candidate for the Hulhuhenveiru constituency, Hassan Ziyath, Yameen said he was pleased that “capable and educated youth” were contesting the upcoming parliamentary elections on behalf of the governing Progressive Coalition.

The cabinet was also composed of competent young technocrats, he added, who were working “day and night” with a team committed to implementing the PPM manifesto.

In the campaign launching event for the PPM’s mid-Henveiru constituency candidate, former journalist and television presenter Aishath Leeza, Yameen criticised parliament for failing to approve his nominee for the vacant Prosecutor General post as well as his nominee for the Elections Commission (EC).

The resignation of former EC member Ibrahim ‘Ogaru’ Waheed in October 2013 left a vacancy in the five-member independent commission.

Yameen also criticised parliament for failing to pass legislation such as the penal code, the evidence bill, and the criminal procedures code, which were essential for strengthening the criminal justice system.

The president vowed to establish “a safe and peaceful environment” for citizens in all inhabited islands of the country.

While the government was taking measures to “deter crime,” Yameen said the issue was related to “education of youth.”

He noted that the current administration has introduced Arabic and Quran classes in most schools in the country.

Plans were in the pipeline to introduce civic education and social science subjects in secondary education later this year, he revealed.

“The purpose of including these [subjects] is to provide information to children on how to confront or reconcile upsetting matters that you face within a family or society,” Yameen said, stressing the importance of policies propagated by the state to “maintain Islamic principles.”

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