Gasim accepts loss of JSC seat after lawyers question conflict of interest

Jumhoree Party Presidential Candidate and MP Gasim Ibrahim has submitted a letter to Parliament accepting the loss of his seat on the Judicial Services Commission (JSC), after a number of practising lawyers questioned the legality of him remaining on the commission.

Citing Article 10 (a.iv) of the JSC Act, which states that a member of the commission will automatically lose his seat in the instance that they “file to contest in an election for any political position under the constitution of the Maldives”, the lawyers claimed that Gasim could not remain in the judicial watchdog as he is contesting in the upcoming September 7 presidential elections.

Stating that Parliament should now declare Gasim’s seat on the JSC to be vacant, lawyer Ali Hussain told local media, “it is the parliament that needs to do so, as according to law, the institution that appoints a person to the commission that can remove him from the post. Gasim’s argument in his defence may be that even currently he is in an elected position. However, this time he is not contesting as an MP. The problem may not have risen if he was contesting as an MP, but it persists since he is running for presidency.”

At a press conference held Thursday (July 25), Gasim stated that he had attended a commission meeting on Monday (July 22) after having filed for presidential election candidacy, adding that he had done so only because the JSC had not yet come to a decision on the matter of him contesting in the elections.

Although Gasim has accepted the loss of his seat on Thursday after the issue was raised by lawyers, at a press conference held on July 14 – prior to filing his candidacy at the Elections Commission – Gasim stated that his seat at the JSC cannot be questioned even though he is contesting in the elections and that he would not resign from the post.

Speaker’s duty to inform Gasim: Independent MP Nasheed

Parliament’s Independent Institutions Oversight Committee Chair, independent MP Mohamed Nasheed, has also confirmed that Gasim cannot continue sitting in the JSC.

At a committee meeting held on Thursday, Nasheed stated that informing Gasim of the loss of his seat is the duty of Speaker of Parliament Abdulla Shahid, and not of the committee itself.

All attending members at the meeting unanimously agreed that the presidential candidate will lose his seat in the judicial watchdog as per Article 10 (a iv) of the JSC Act.

Parliament Speaker Abdulla Shahid and MP Mohamed Nasheed were not responding to calls at the time of press. Gasim Ibrahim’s phone was switched off.

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MDP expresses concern with President Waheed’s appointee to JSC

The Maldivian Democratic Party (MDP) has expressed concern over President Dr Mohamed Waheed’s appointment yesterday of former Department of Judicial Administration (DJA) Spokesperson Latheefa Gasim to the Judicial Service Commission (JSC), alleging the appointee had ties with the Jumhoree Party (JP).

In a press release yesterday (June 24), the party characterised Latheefa Gasim’s appointment as an attempt to “increase the political and other forms of influence of a particular group and promote their self-interest” through the judicial oversight commission.

“Latheefa Gasim is the wife of Mohamed Ikram, who is employed by Jumhoree Party presidential candidate Gasim Ibrahim as the head of V-media’s political department and a presenter of VTV, who campaigns for Gasim Ibrahim,” the party said, adding that Ikram was also a member of business magnate Gasim’s JP.

JP Leader Gasim Ibrahim is the parliament’s representative on the 10-member JSC, which consists of three judges from the three tiers of the judiciary (trial courts, High Court and Supreme Court); a representative of the President, the Attorney General, the chair of the Civil Service Commission; the Speaker of Parliament, a member of parliament elected by the People’s Majlis, a member of the public selected by parliament; and a lawyer elected by licensed practitioners in the Maldives.

Gasim, the JP MP for Alif Dhaal Maamigili, is the chairman of the Villa Group of businesses, which owns resorts, tour operators, a cement packing factory, a gas provider, an airline and several retail outlets.

The MDP alleged in its statement that Gasim has been “working ceaselessly” through the JSC to bar former President Nasheed from the upcoming presidential election on September 7, adding that the rival candidate has made public remarks to that effect.

Latheefa Gasim’s appointment to the commission has secured “two seats for the Jumhooree Party presidential candidate,” the press release continued, which has afforded the JP leader “further opportunities to advance his political and personal interests and exert extreme influence on the JSC.”

The press release also noted that Latheefa Gasim had made several statements to the media concerning MDP presidential candidate and former President Mohamed Nasheed’s trial at the Hulhumale’ Magistrate Court.

The former DJA spokesperson was not responding to Minivan News at time of press.

Latheef Gasim’s appointment yesterday followed the removal of Mohamed ‘Reynis’ Saleem by President Waheed last week ostensibly over allegations that the lawyer commissioned gangs to retrieve money owed to him.

The President’s appointee on the JSC was summoned to the police for questioning over the allegations in May.

The Criminal Court meanwhile refused to grant police an arrest warrant to take Saleem into custody, a decision which was backed upon appeal by the High Court.

Saleem was the defence counsel of Deputy Speaker of Parliament Ahmed Nazim in criminal cases involving an alleged scam to defraud the now-defunct Ministry of Atolls Development.

The cases were dismissed by the Criminal Court shortly after the controversial transfer of presidential power on February 7, 2012.

Meanwhile, in her report to the United Nations Human Rights Council following a visit to the Maldives, UN Special Rapporteur on Independence of Judges and Lawyers Gabriela Knaul observed that the JSC had a “complicated” relationship with the judiciary, given that the commission “considers that it has exclusive jurisdiction over all complaints against judges, including over criminal allegations, while the Prosecutor General understands that the criminal investigation agencies have the competence to investigate criminal conducts by anyone.”

The special rapporteur stated that there was near unanimous consensus during her visit that the composition of the JSC – which includes representatives from all three branches of government instead of exclusively the judiciary as was the norm in other nations – was “inadequate and politicised”.

This complaint was first highlighted in a report by the International Committee of Jurists (ICJ) in 2010.

“Because of this politicisation, the commission has allegedly been subjected to all sorts of external influence and has consequently been unable to function properly,” Knaul observed.

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Rising extremism could threaten Maldives’ tourism industry: report

Religious conservatism and extremist violence have been increasing in the Maldives over the past decade, while incidents of Maldivians joining overseas jihadist groups are becoming more common, according to a report published in the Combating Terrorism Center (CTC) Sentinel, a publication based out of the West Point military academy in the US.

The article entitled The Threat from Rising Extremism in the Maldives, observes that growing religious extremism and political uncertainty could result in more violence and negatively affect the nation’s tourism industry, which would be “devastating” to the Maldives.

“This has coincided with a number of violent attacks on liberal activists and other citizens who have expressed outspoken support for moderate religious practices,” the report notes.

If current trends continue “extremist incidents may rise, with violence targeted against the country’s more liberal citizens,” it states.

According to the report, five key factors have contributed to the growing extremism and violence:

  • the encouragement of  “more hard line Islamist elements in the country” during the 30 year autocratic rule of former President Maumoon Abdul Gayoom;
  • political uncertainty;
  • an increasing number of people seeking education in foreign madrasas;
  • grassroots radicalisation through civil society and political parties;
  • escalating extremist incidents of violence and involvement with jihadist groups.

“The country has already suffered one terrorist attack targeting foreign tourists, and a number of Maldivians have traveled to Pakistan’s tribal areas to receive jihadist training. Moreover, evidence exists that jihadists tried to form a terrorist group in the country in 2007-2008,” the report states.

The study recommends that Maldivian political and religious developments be followed closely.

Encouraging of hard line Islamic elements

Islam was introduced to the Maldives in the 12th century and subsequent religious practices have been the “moderate, more liberal form of the religion”.

“Yet, during Gayoom’s three decade autocratic rule, the Egyptian-trained religious scholar enacted a number of measures that, at least inadvertently, encouraged more hard line Islamist elements in the country,” the report concluded.

“From imposing a ban on Christian missionary radio to apprehending migrant service providers for allegedly preaching and practicing their own religion, Gayoom’s regime initiated an era of state-backed religious intolerance and radicalisation in the Maldives.”

The Protection of Religious Unity Act, passed in 1994, mandated that no other religion but Islam could be practiced.

In 1996, Gayoom constituted the Supreme Council for Islamic Affairs, renamed the Ministry of Islamic Affairs in 2008, to preside over religious affairs in the Maldives.

“This body of clerics pressured the government to carry out moral and cultural policing of alleged “anti-Islamic activities”,” the report states.

For example, in 2008 the Ministry requested police “ban nightclubs and discotheques for New Year’s Eve celebrations because they were contrary to Islam”.

“By the end of Gayoom’s time in office in 2008, the dress code for women had grown increasingly conservative, and more and more men grew out their beards,” the report states.

Women now dress more conservatively with fewer brightly colored clothes. Instead they “increasingly wear black robes and headscarves and on more conservative islands such as Himandhoo, women wear black abayas and face veils,” it added.

Political uncertainty

The democratic transition “gave a greater voice to religious conservatives and those calling for the rigid implementation of Shari`a (Islamic law) in the Maldives,” states the report. “This became especially evident following the implementation of political reforms and the transition to multi-party democracy in 2008.”

The first democratic presidential elections in the Maldives were held in 2008, with Mohamed Nasheed defeating Gayoom in the second round with 54 percent of the votes.

However, the Nasheed administration was accused of defiling Islam by “promoting Western ideals and culture and restricted the spread of more austere Islamic practices,” the article notes.

This resulted in the December 2011 “Defend Islam” protests led by opposition political parties, religious groups, civil society organisations and thousands of supporters in the country’s capital, Male’.

These protests “unleashed a chain of events that culminated in a bloodless coup on February 7, 2012 that toppled the Maldives’ first democratically-elected government,” declared the study.

Appeal of education in foreign madrasas

Education in foreign madrasas has also contributed to growing extremism within the Maldives, with students “unwittingly attending more radical madrasas” and preaching these views upon their return.

“The offer of free education in madrasas in Pakistan and Saudi Arabia is widely acknowledged as a core means of radicalising Maldivians locally, with well-meaning parents sending their children off on scholarships to ‘study Islam’,” the report states.

Following the 2007 terrorist attack in Male’s Sultan Park, “Gayoom himself warned of this problem”.

“Maldivians are influenced by what is happening in the world. They go to Pakistan, study in madrasas and come back with extreme religious ideas,” the report quoted Gayoom as saying.

Grassroots radicalisation

“The contemporary Maldivian political environment favors radical and political Islam taking root in Maldivian society, especially when political parties and civil society increasingly take refuge in religion,” the report states, citing Maldivian academic Dr Azra Naseem.

In 2010, new regulations prohibited “talking about religions other than Islam in Maldives, and propagating such religions through the use of any kind of medium.” The Ministry of Islamic Affairs published this legislation under the Protection of Religious Unity Act of 1994.

However, the report found that the “major force behind more austere religious practices in the Maldives is the Adhaalath (Justice) Party (AP), which has controlled the Ministry of Islamic Affairs, with Sheikh Shaheem Ali Saeed as its current minister”.

Given that the AP supports strict implementation of Shari’a Law, the party has “outspokenly argued that music and singing are haram (forbidden) and called for an end to the sale of alcohol at the country’s hundreds of luxury resorts,” said the report.

In February 2013, Saeed warned that “various Christian organisations and missionaries are strongly involved and active in our society because they want to ‘wipe out’ Islam from the Maldives”. He subsequently started a campaign against Christians and “Freemasons”, the report stated.

Two non-government organisations (NGOs), Jamiyyathu Salaf (JS) and the Islamic Foundation of Maldives (IFM), are considered religiously conservative Salafists who “work with the country’s political parties to further the cause of Islamism in the Maldives,” the report stated.

Extremist incidents

Extremists have directly targeted Maldivian liberal intellectuals, writers and activists, the study notes.

“On January 3, 2011, assailants attempted to kill Aishath Velezinee, an activist fighting for the independence of the country’s justice system, by stabbing her in the back in broad daylight,” said the report.

Velezinee is a whistleblower that in 2010 identified members of the Judicial Service Commission (JSC) who were “conspiring with key political figures to hijack the judiciary and bring down the country’s first democratically-elected government,” the report added.

The study found that the Ministry of Islamic Affairs was “at least indirectly encouraged extremism” by initiating “crackdowns” on media outlets for anti-Islamic content.

The blog of prominent free speech and religious freedom campaigner, Khilath ‘Hilath’ Rasheed, was blocked in 2011. A month afterward, Rasheed’s skull was fractured when 10 men attacked him with stones during a peaceful rally he organised in Male’.

Rasheed was arrested a few days after the incident and jailed for 24 days for participating in the rally.

In June 2012, Rasheed was nearly killed “after extremists cut his throat open with a box cutter”.

“After the attempt on his life, Rasheed named three political leaders—Islamic Affairs Minister Mohamed Shaheem Ali Saeed, Adhaalath Party President Imran Abdulla and Jumhooree Party lawmaker Ibrahim Muttalib Shaheem – as being indirectly responsible for the attempt on his life,” the report states.

Later in 2012, the moderate religious scholar and lawmaker, Afrasheem Ali, was stabbed to death at his home in Male’. He was considered an Islamic moderate who was “outspoken in his controversial positions,” reads the report.

In February 2013, “a reporter for the Maldivian Democratic Party (MDP)-aligned Raajje TV station, Ibrahim ‘Aswad’ Waheed, was beaten unconscious with an iron bar while riding on a motorcycle near the artificial beach area of Male’,” the study added.

Previously, during the 2011 South Asian Association for Regional Cooperation (SAARC), protesters “intolerant toward other religious and cultural symbols” damaged monuments gifted to the Maldives by Pakistan, Bhutan, Sri Lanka.

Islamic radicals on February 7 2012 also vandalised archaeological artifacts in the National Museum that were mostly ancient Hindu and Buddhist relics, destroying 99 percent of the evidence of Maldivian pre-Islamic history.

Jihadists

“In April 2006, a Maldivian national, Ali Jaleel, and a small group of jihadists from the Maldives attempted to travel to Pakistan to train for violent jihad in Afghanistan or Iraq,” the report reads.

While his first attempt was unsuccessful, Jaleel did eventually travel to Pakistan and “launched a suicide attack at the Inter Services Intelligence (ISI) headquarters in Lahore in May 2009.”

In September 2007, Islamic extremists committed a terrorist attack in the Maldives aimed at the tourism industry.

A bomb exploded in Male’s Sultan Park and wounded 12 foreigners. The three men arrested and later jailed for the bombing confessed that their goal was to “target, attack and injure non-Muslims to fulfill jihad,” states the report.

A month following the bombing, the investigation led to Darul-Khair mosque on Himandhoo Island. However, “some 90 masked and helmeted members of the mosque confronted police, wielding wooden planks and refusing to let the police enter,” said the report.

Although the Maldivian army eventually established control, “The stand-off resulted in a number of injuries, and one police officer had his fingers cut off.” In November, a video of the mosque confrontation was posted on the al-Qa’ida-linked alEkhlaas web forum by a group called Ansar al-Mujahidin with the message “your brothers in the Maldives are calling you,” the report states.

Evidence suggests that three Maldivian jihadists planned to establish a terrorist group in the country around 2007-2008 and send members for military training in Pakistan.

“At least one of these individuals did in fact travel to Pakistan, as Yoosuf Izadhy was arrested in Pakistan’s South Waziristan Agency in March 2009, along with eight other Maldivians,” states the report.

In 2009, then-President Nasheed warned that “Maldivian people are being recruited by Taliban and they are fighting in Pakistan,” quotes the report.

“Despite its reputation as an idyllic paradise popular among Western tourists, political and religious developments in the Maldives should be monitored closely,” the report concludes.

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ACC launch investigation into 99-year Maamigili Airport lease

The Anti-Corruption Commission (ACC) has begun investigating the 99-year lease of Maamigili Airport to Villa Shipping and Trading, local media reported.

The private airport is owned by Chairman of Villa Group and Jumhoree Party (JP) MP, Gasim Ibrahim. The airport had initially been leased to the JP presidential candidate’s Villa company for 30 years.

Former Minister of Transport Dr Ahmed Shamheed – who was nominated as transport minister by JP – was later removed from his cabinet post after extending the airport lease.

President of ACC Hassan Luthfee told local media that the commission has launched an investigation into the case and that all documentation regarding the lease has been collected.

“This Commission has started looking into the matter of the extension of the management period of Maamigili Airport for a duration of 99 years, because the news has been circulating in the media,” Luthfee was quoted as saying in local media.

Gasim has claimed that there were no acts of corruption in the airport lease.

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JP Legal Committee member files Supreme Court case to cancel seats of DRP MPs Nashiz and Azim

The Jumhoree Party’s Police and Legal Committee member Mohamed Haleem Ali has filed a case at the Supreme Court asking it to rule Dhivehi Rayyithunge Party (DRP) MPs Ali Azim and Mohamed Nashiz unfit to stay in their elected seats following the Bank of Maldives’ foreclosure on their loans.

“The civil court’s ruling number 935 of 2009 asks them to pay back the debts to BML. They didn’t. So I have submitted this case in accordance with subclause one of Article 73(c) and 74 of the constitution,” Haleem stated.

Subclause 1 of Article 73 of the Constitution of the Maldives states that a candidate for membership or a sitting member of the parliament would be disqualified if he has a decreed debt which is not being paid as per court rulings.

Article 74 states that any question concerning the qualifications or removal of a member of the People’s Majlis shall be determined by the Supreme Court.

MPs Nashiz and Azim have been in parliament since the 2009 election, the same year in which the civil court order them to pay the BML debts.

Asked why Haleem was submitting the case nearly three years into the debt case, after the Civil Court had Thursday ruled BML could sell the mortgaged property in lieu of payment by the guarantors, he replied: “Their seats would have been lost after the first month’s failure to pay as per the court order anyway. They are only able to sit in there because the Supreme Court has so far not ruled on the matter.”

The Supreme Court has confirmed that the case submission has been registered at the court. However, a court official said that the court has not yet made a decision on whether or not to accept the case.

JP concerned Haleem acted without consulting party

JP Spokesperson Moosa Rameez said the party had no role in filing the case against the DRP MPs.

“In fact, we are very concerned that Haleem submitted the case without any consultation whatsoever with the party. He’s not an ordinary member of the party, he sits on one of our committees. He ought to have discussed this within the party first. We only learned about it when it was covered in local media,” Rameez said.

Haleem responded saying that he had submitted the case in his personal capacity, and that he felt no need to consult with the party on personal decisions.

“As a party, JP would never wish loss or harm on anyone. I have no comment on the party’s position. However, I did this as an individual, for the betterment of the society. I am a lawyer by profession and felt it was time to take the initiative to bring this to the Supreme Court’s attention,” Haleem stated.

All parties are picking on us as we are the most popular party: DRP

DRP MP Abdulla Mausoom declined from commenting on the case in court, stating that everyone has the right to submit cases to courts, and to defend themselves in whatever way possible.

“I do know, however, that all parties are picking on DRP now. This is because DRP is currently the most promising party for the 2013 elections. Everyone from MDP [Maldivian Democratic Party], PPM [Progressive Party of Maldives] to all the presidential candidates are feeling threatened by DRP due to our popularity,” Mausoom added.

MP Azim has previously alleged that the case of BML debts being scheduled to coincide with the voting on secret balloting during no confidence motions is politically motivated. Azim further alleged that President Mohamed Waheed had tried to intimidate him, asking him to vote in a particular way, offering to cancel the court hearings in return.

Azim had been promptly summoned back to court after he subsequently voted in favour of secret balloting.

DRP Leader Thasmeen Ali declined from commenting on these allegations, stating that he had “not yet discussed the matter in detail” with Azim.

“Now it’s the Supreme Court that will come to a decision on the parliament seat. I believe the court will rule on this in the correct manner in which it should be done,” Thasmeen stated.

Minivan News tried contacting DRP MPs Mohamed Nashiz and Ali Azim. Nashiz was not responding to calls while Azim’s phone was switched off.

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“No animosity” toward JP after voting in favour of secret votes: President’s Office

The government has no animosity towards Jumhoree Party (JP) despite its members voting in favour of taking secret votes, President’s Office Spokesperson Abbas Adil Riza has said.

Although JP members voted in line with the opposition Maldivian Democratic Party (MDP), the government perceived it as JP’s policy, Abbas said.

Both MDP and JP party members voted in favour of taking secret votes on the no confidence motion against President Mohamed Waheed Hassan and cabinet members in parliament.

“As you know during the time of special parliament Gasim supported to take a secret ballot to elect a parliament speaker. That was in 2004. That is his view on the matter.

“The president says that the government has no animosity toward the way the leader of JP voted or MP’s voted,” Abbas said.

Abbas stressed that the transport minister’s portfolio is still reserved for JP, as the party is still part of the coalition government.

JP Vice President Ameen Ibrahim has been nominated for the post after Dr Ahmed Shamheed was dismissed from his transport minister position.

Human Rights Minister Dhiyana Saeed was also dismissed from her post yesterday.

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Dismissed minister must be reinstated if President wants to sustain coalition: JP’s Alhan Fahmy

Jumhoree Party (JP) MP Alhan Fahmy has warned that dismissed Transport Minister Dr Ahmed Shamheed must be reinstated in order to retain the ruling coalition.

Dr Shamheed was removed from his cabinet post after he extended the Maamigili Airport lease to JP leader Gasim Ibrahim for 99 years.

In a press conference held on Tuesday (November 13) the JP stated it requested President Mohamed Waheed Hassan Manik reinstate Shamheed before Sunday.

Fahmy told Minivan News that he believes Shamheed should be reinstated if “Dr Waheed wants  to sustain the national unity government.”

“I don’t believe [Waheed] was unaware of the decision [to dismiss Dr Shamheed], and it is of his own irresponsibility if he says so,” Fahmy said.

“A minister shall not be dismissed under the existing political situation unless it is associated with proper reasoning.”

Speaking at the press conference on Tuesday, Fahmy said Waheed met Gasim on Monday night and what he had to say implied that the President was “not fully aware of how [the dismissal] happened.”

After looking into the dismissal, Alhan said the JP believed it was done “without a legal basis” as the JP minister had not breached any laws or official procedures but was sacked “as a result of what the minister did to implement a decision made by the government.”

“Therefore, as we believe that this happened because the President was somewhat confused or misinformed, and after making certain of all the processes that were followed with regard to [the dismissal], the Jumhoree Party has asked the President to reinstate Dr Shamheed to the cabinet before next Sunday,” Fahmy said.

The government’s actions in sacking the minister provided opportunity to level corruption allegations against the JP’s presidential candidate and were “highly damaging” to the party, the MP for Feydhoo added.

A statement from JP last week said the party would take “necessary action” following an inquiry, expressing “serious concern” with statements in the media by officials from the President’s Office regarding Shamheed’s dismissal.

Minivan tried to contact President’s Office Media Secretary Masood Imad, but he was not responding at time of press.

Controversy has surrounded the sacked minister following allegations that Shamheed was dismissed because of his opposition to the recent sale of a stake in the Addu International Airport Company Ltd (AIA).

The unnamed JP official, who made the allegations speaking to Villa TV, said that Shameed was removed to allow Champa Afeef – a tourism tycoon who recently bought a 30 percent stake in Addu airport – to control the airport project.

The JP official said the sacking of Shameed was intended to divert attention away from the Addu airport sale.

Following his sudden dismissal, Shamheed claimed he had been sacked following his criticism of some decisions made by the government.

“I continued to criticise President Mohamed Waheed Hassan Manik over the Nexbis issue. Attorney General insists that the project cannot go on. Home Minister has to be responsible for the Immigration Department. Home Minister had ordered to stop the project. But the project went on. I have voiced my discontent over several such issues. We have all seen the result of that,” Shamheed told Haveeru Online.

Shamheed refused to comment on the current situation when called by Minivan News.

Maamigili airport had originally been leased to Gasim’s Villa Group for 30 years, and according to JP, the decision to extend the lease by Shamheed had been unanimously approved by the government’s Economic Committee on November 1.

In addition to Shamheed, the Economic Committee consists of Minister of Finance Abdulla Jihad and Minister of Fisheries and Agriculture Ahmed Shafeeu, Housing Minister Dr Mohamed Muizzu, Environment Minister Dr Mariyam Shakeela and Tourism Minister Ahmed Adheeb.

Shamheed, in a quote from newspaper Haveeru, said: “Documents to extend the lease of Maamigili Airport for 99 years were sent to the transport ministry by [former President Mohamed] Nasheed’s government. But the current government delayed the matter. The present government only endorsed the decision. It was decided by the NPC [National Planning Council] during the former government.”

More recently however, Haveeru Online learned that Shamheed had announced the extension of the airport’s lease before the ministerial cabinet had sanctioned it.

A tweet from government spokesperson Abbas Adil Riza on the day of Shamheed’s dismissal read: “Transport Minister Dr Shamheed has been relieved from his duties today. Defence Minister Nazim will be the care taker until replaced by JP.”

He added that the cabinet seat will be reserved for the JP, currently the third largest party in terms of membership in the ruling coalition.

Minivan News was informed by Riza that the decision to extend the lease has not yet been reversed.

Following Shamheed’s dismissal, Dr Shamheed told Sun Online he believed he was sacked for difference of opinion with the President on a number of issues, including his opposition to the sale of the AIA stake and the agreement with Nexbis to install a border control system.

On November 5, Dr Shamheed tweeted that there was “no justification” for the valuation of an asset worth US$150 million for US$13 million.

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MPs express concern over Addu airport bidding process, while AIA MD Shahid denies corruption allegations

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.

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Addu airport stake sold to Champa Afeef’s Kasa Holdings

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.”

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