Majlis – Page 7 – Minivan News

Majlis committee rejects 8 cabinet nominees

The parliament’s Executive Oversight Committee has rejected eight of 15 ministers in President Abdulla Yameen’s cabinet.

However, President’s Office Spokesperson Ibrahim Muaz Ali has told Minivan News he was confident all ministers will be endorsed on the parliament floor regardless of the committee’s views.

The Executive Oversight Committee rejected Minister of Defence and National Security Mohamed Nazim,, Minister of Tourism Ahmed Adheeb, Minister of Home Affairs Umar Naseer, Minister of Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed, Minister of Health and Gender Mariyam Shakeela, Minister of Transport and Communication Ameen Ibrahim, Minister of Finance and Treasury Abdulla Jihad, and Minister of Housing and Infrastructure Mohamed Muizzu.

The opposition Maldivian Democratic Party (MDP) MPs holds six of ten seats in the committee.

Ruling Progressive Party of the Maldives (PPM) MP Ahmed Nihan proposed casting a single vote for the full cabinet. However, the proposal failed with MDP MPs voting to vet each cabinet minister separately.

Pro-government members claimed it is crucial that the People’s Majlis fully endorse President Yameen’s cabinet in order to facilitate the government to function at its full capacity.

Pointing out that the Majlis had voted for former President Mohamed Nasheed’s cabinet as a group rather than separately, MP ‘Redwave’ Ahmed Saleem said it was “unacceptable” for the opposition to act differently now.

In reply, the MDP said the eight rejected nominees were “ministers of the coup government,” as they had served under former President Dr Mohamed Waheed after the controversial transfer of power on February 8, 2012. Nasheed had resigned amidst a police and military mutiny and his deputy Waheed assumed the presidency. MDP maintains the transfer of power is a coup d’etat

In addition to Waheed’s ministers, MDP members also refused to endorse Home Minister Umar Naseer.

Despite this being his first appointment to any cabinet position, MDP members claimed that based on various speeches he has previously given on political podiums, it is “evident that he will not be loyal to Yameen”.

All ten committee members in attendance voted to endorse the remaining seven cabinet members. These consisted of Minister of Foreign Affairs Dunya Maumoon, Minister of Fisheries and Agriculture Dr Mohamed Shainee, Minister of Economic Development Mohamed Saeed, Minister of Environment and Energy Thoriq Ibrahim, Minister of Education Aishath Shiham, Minister of Youth and Sports Mohamed Maleeh Jamal, and Attorney General Mohamed Anil.

Although Foreign Minister Dunya – Yameen’s niece and former President and PPM leader Maumoon Abdul Gayoom’s daughter – has not held a cabinet post in Waheed’s government, she had served as State Minister of Foreign Affairs during his term.

While the committee will present its views to the parliament floor, it is the votes of the full parliament which will decide cabinet endorsement. Voting on the matter is currently scheduled for Monday, December 30.

MDP must facilitate an elected government

President’s Office Spokesperson Ibrahim Muaz Ali has stated that the MDP’s justification for refusing to endorse eight of the government’s cabinet ministers is “unacceptable”.

Muaz said that the MDP is the party that had advocated most for the establishment of an elected leader, and as such has the responsibility of facilitating elected President Yameen’s government to fulfill the needs of the citizens.

“MDP claims they cannot endorse these ministers as they belonged to what they say was a coup government. The fact of the matter is, even though they were previously in Waheed’s government, it is now a leader elected by the people who are re-submitting their names,” Muaz stated.

“MDP has always claimed, straight from the beginning, that they will extend cooperation to run a democratic government. Endorsing the cabinet is the best form of cooperation they can show. In any case, there is a culture of endorsing any president’s first cabinet in this country,” he continued.

“Despite the committee rejecting eight cabinet ministers, the government is confident they will receive endorsement from the parliament’s full floor. The government has a very good understanding with the leadership of MDP. And there are also discussions being held between the government and MDP on a number of matters,” Muaz said.

According to Muaz, the government and opposition are holding discussions on numerous matters including cabinet endorsement and budget approval.

Muaz said the government is continuously emphasizing the importance of cabinet endorsement and budget approval in order for the PPM to fulfill citizens’ needs, Muaz said. He also said the MDP is putting forward a number of suggestions, but declined to reveal details.

Speaking at Thursday’s Unity Day event, President Yameen has also appealed to the parliament to endorse his cabinet, urging to set aside differences in political opinion for the betterment of the nation.

Likes

(0)Dislikes

(0)

Bill seeks state funds for president’s private residence

Pro-government MP Riyaz Rasheed has submitted a bill to parliament seeking state funds to cover costs at any residence the president decides to live in.

According to the draft bill, if the president or vice president and their families decide to live in a place other than the official state residences, the state must provide funds to hire sufficient staff, cover overhead expenses, and maintain security at the chosen residences.

President Abdulla Yameen has announced he will reside in his personal home, while Vice President Dr Mohamed Jameel Ahmed and his family live in the state residence Hilaaleege.

Increased Muleeage budget

Despite Yameen’s decision to reside in his personal home, the allocated budget for the official presidential residence Muleeaage has increased by MVR2 million (USD130,208) in the draft budget for 2014.

The allocated budget for the presidential residence currently stands at MVR19.1 million (USD1,243,486).

Earlier in December, Parliament’s Budget Review Committee Chair Jumhooree Party (JP) Leader and MP Gasim Ibrahim said the increased budget was necessary in case Yameen decides to move to Muleeage.

If Rasheed’s bill is passed, the state will be funding both the president’s stay at his personal residence, as well as expenses for running the unoccupied official state residence.

Highlighting the increased budget for Muleeage, Maldivian Democratic Party (MDP) MP and International Spokesperson Hamid Abdul Ghafoor described Yameen’s decision to live in his personal house as a “symbolic act.”

“Unlike in the past, even media points out inconsistencies in what leaders say and what reality presents these days. I do not believe the public will be deluded about any of this,” Hamid said.

“While Yameen might have thought his decision will get people thinking that he is a humble man, reality is that ultimately, the state is having to spend much more of its funds to maintain this decision of his. People are much more aware now than in previous PPM times. People can see he’s just trying to score political points,” he continued.

Likes

(0)Dislikes

(0)

National debt set to rise to MVR92,196 per head warns MMA

The Maldives Monetary Authority – the country’s central bank and banking regulator – has published its professional opinion on the 2014 budget, painting a dark outlook and proposing urgent measures to prevent the economy from plunging further into debt.

The document was prepared upon an official request from the People’s Majlis, which is set to consider the spending plans when they emerge from committee on Saturday (December 21).

In the document, the MMA warned that the national debt is estimated to rise from MVR27.7 billion in 2013 to MVR31.5 billion in 2014 – equating to MVR92,196 per head.

Forecast GDP growth rate for 2014 is 4.5% – lower than the average of past ten years.

Inflation can be sustained at 4%, but this will depend on changes in the world market, stated the authority

Despite pledges to reduce state expenditure, the government returned a record MVR17.5 billion budget for consideration by the Majlis this month.

Subsequent recommendations in committee have seen the likely figure to rise to MVR18 billion.

Reducing government expenditure

Rising government expenditure was cited as the biggest challenge for the country right now. The agency advised the government to reduce recurrent expenditure to MVR10.2billion from its current level or MVR12billion, offering the following recommendations to do so:

Ensuring government subsidies are carefully targeted to the rightful persons.
Downsizing the state apparatus to one that’s appropriate for the Maldives’ size and income – including downsizing of parliament, councils, and independent institutions.
Finding ways of reducing recurrent expenditure and improving governance – suggesting the combination of local, parliamentary, and presidential elections was suggested.
Stop spending on government-run companies from the budget, or dissolve such companies.
Don t proceed with projects (e.g. in contractor finance basis) unless funds have been secured or guaranteed.
Reduce debt, turn existing short-term debts in to long-term ones – for instance, by selling long-term foreign bonds at a small interest rate rather than depending on the domestic market for financing debt.
Prepare to implement the Fiscal Responsibility Act in 2014.

Finding better ways of financing the deficit

The document stated that the government had been financing the budget deficit mainly by taking short-term loans, selling treasury bills and treasury bonds, and by the MMA itself printing money. Instead of managing this deficit through a market mechanism, the government has resorted to dealing with it mainly through printing cash.

Overdrawing from the state’s Public Bank Account (PBA) to accommodate government spending has significantly increased the flow of the rufiyaa in the economy. The authority stated that this has reduced the foreign exchange reserves to dangerous levels – just two months of imports by the end of October 2013.

It was also noted that the increased flow makes it difficult to stabilise the foreign exchange rate.

According to the authority the PBA overdraft facility was misused by the government, using it to finance long term budget deficit even though it was intended to manage cash flow within a short period of time (a few weeks).

The amount overdrawn from PBA started increasing in October 2012 and reached MVR2.5 billion by 9 December 2013.

The MMA advised the state to pay all due treasury bills, treasury bonds and PBA overdrawing debts to the authority, whilst also noting that the MVR945 million required to pay for this had not been included in the proposed budget.

New revenue raising measures and legal changes

One of the key points highlighted throughout the document was the importance of implementing the new revenue raising measures – most of which is hoped to come from advance payments from resort lease extensions – which account for 23% of the total revenue in the budget.

If these measures are not implemented, the budget cannot cater for the recurrent expenditure and the estimated budget deficit for 2014 will increase from MVR886.6 million to 4.4 billion (11% of GDP), the MMA warned.

The MMA requested the state to proceed with amending the laws necessary for implementing new revenue increasing measures as soon as possible, and asked to find ways to generate an income from various industries instead of depending only on tourism for revenue.

Another notable recommendation was the reduction of the number of foreigners working in the country in order to create a more favorable balance of payments situation.

Read the full document (dhivehi) here.

Likes

(0)Dislikes

(0)

Revenue raising measures remain biggest obstacle to budget, says Finance Minister

Finance Minister Abdulla Jihad has said that new revenue raising measures remain the biggest obstacle to the passing of the new budget.

He has, however, expressed his opinion that the collection of lease extension payments up-front – anticipated by the government to raise MVR1.2billion (US$77million)- would not be a problem.

“I don’t think it is a problem because we are giving them for 99 years – that’s quite a long time,” Jihad told Minivan News today. “The property belongs to everyone – it’s the people’s property.”

Maldives Association for Tourism Industry Secretary General Ahmed Nazeer reportedly told the Budget Review Committee yesterday that he anticipated that 50 percent of resort owners would refuse to pay the sum up front.

When asked for additional opinion on the proposed budget today, Nazeer told Minivan News that he felt it would be inappropriate to give further comment whilst the budget was still under review.

The Finance Minister was able to confirm that the government had requested approval for three loans – totalling MVR814million (US$52million) – from the Majlis, of which MVR453million will go towards budget support.

Earlier this month, the Auditor General suggested Jihad had foregone the mandatory parliamentary approval when obtaining MVR300million (US$ 19.45 million) worth of budget support from the Bank of Maldives in May 2012.

Jihad responded that the onerous procedural obligations were circumvented in order to avoid an impending financial disaster.

Budget support

The budget-support loan will come from the Bank of Ceylon, whilst additional loans await approval from Denmark’s Nordea Bank (€2.5million) for the upgrading of Malé’s electricity grid, and OPEC (US$20million) for sewerage projects.

After details of the high interest to be paid on the Bank of Ceylon’s loan emerged, Jihad last week use the term “beggars cannot be choosers,” noting that the Maldives has no choice but to borrow from commercial banks at high interest rates.

“We could go to Bank of New York, but they will not lend to us. The best bet now is Bank of Ceylon,” he said.

An agreement to receive 50 million yuan (US$ 8.2 million) in development aid from the Chinese government has already been approved this month, whilst Indian media has reported that President Abdulla Yameen’s state visit will see the resumption of a currently-dormant standby-credit facility.

The Budget Review Committee is expected to conclude deliberations upon the 2014 budget by December 20-21, explained Jihad, after which it will be sent to the full floor for further consideration.

Discussion of revenue raising measures is scheduled for Wednesday (December 18).

Similar issues

Failure to realise new streams of revenue, alongside an inability to curb expenditure saw the previous government – under which Jihad also served as finance minister – forced to divert capital expenditure to recurrent costs.

The proposed budget for 2014 is a record MVR 17.5 billion (US$1.1 billion), with a 6.7 percent growth in total expenditure mainly due to a MVR 1.1billion (US$72,687,239) increase in recurrent costs, accounting for over 73 percent of outgoings.

Both Jihad and Maldives Monetary Authority Governor Dr Fazeel Najeeb have told the Majlis committee that the proposed 2014 budget must be reduced if the government’s new revenue streams were not realised, with Jihad targetting the billion dollar tourism industry.

“The main revenue generator is tourism. From where else can we generate extra revenue? I don’t believe that we are presently charging taxes that are too high for the tourism sector,” local media reported him as saying yesterday.

The proposed revenue raising measures will provide the state with a total of MVR3.4billion (US$ 224million). However, the People’s Majlis will need to amend laws including revisions to tax laws and import tariffs to realise the expected revenue.

Proposed measures include raising Tourism Goods and Service Tax by 50 percent, delaying the abolition of tourism bed tax, raising airport departure charges for foreign passengers by 28 percent, and leasing a further 12 islands for resort development.

In his inauguration speech, Yameen warned the country’s economy was in “a deep pit” and pledged to reduce state expenditure. Local media reports quote Yameen saying he would cut expenditure by amounts varying between MVR 1 billion and 4 billion.

A World Bank report on the state the Maldives’ economy last week described the country as “spending beyond its means”.

Likes

(0)Dislikes

(0)

Revised penal code to be considered by Majlis next week

The parliamentary committee assigned with reviewing the penal code will present the finished draft to the full house on Monday, local media has reported.

After considering 30 late amendments suggested by the Attorney General’s Office late last month, the committee has added a clause mandating that the new code will come into force within six months of ratification, reported Sun Online.

The initial draft of the penal code was prepared by legal expert Professor Paul H Robinson and the University of Pennsylvania Law School, upon the request of the Attorney General in January 2006. The project was supported by the United Nations Development Program.

Professor Robinson’s team have published two volumes (volume 1 and volume 2) consisting of commentaries on sections of the draft bill.

The bill was first sent to the Majlis (parliament) in 2006 and will replace the 1961 penal code.

The new code has provoked much debate, with the Adhaalath Party’s Sheikh Ilyas Hussain perceiving a lack of Islamic punishments in previous drafts.

Likes

(0)Dislikes

(0)

Transparency Maldives reveals growing perception of corruption

Transparency Maldives’ Global Corruption Barometer (GCB) survey has revealed that 83 percent of people surveyed felt corruption had increased or stayed the same during the past two years.

The survey of 1,002 people – randomly selected and interviewed by telephone – showed respondents to perceive the People’s Majlis as the country’s most corrupt organisation, with 60 percent feeling the legislature to be ‘extremely corrupt’.

Religious organisations were perceived as the least corrupt organisation, with 37 percent of those asked stating definitively that these organisations were ‘not corrupt’.

Speaking at today’s launch event, President of the Anti-Corruption Commission Hussain Luthfy expressed concern at the indicators, noting a clear lack of trust in state institutions.

With local council elections fast approaching, Luthfy pointed out that a failure to reform local government could also be considered corruption.

“In the past five years, the governance system has been so expensive it has impacted the basic public services. Harbors and schools are falling into disrepair.”

Luthy suggested that the current model “bleeds” MVR800 million from the state’s expenditure each year – nearly five percent of the most recently proposed budget.

When submitting the 2014 budget – currently undergoing revisions – Finance Minister Abdulla Jihad urged the state to reduce the size of local level government.

The current model of more than 1,000 elected councillors established by the Decentralisation Act passed in 2010 by the then-opposition majority parliament was branded “economic sabotage” by the incumbent Maldivian Democratic Party (MDP) government, which had proposed limiting the number of councillors to “no more than 220.”

Luthfy went on to urge more transparency within government companies in order to foster an atmosphere in which corruption can be addressed proactively. He suggested that government owned companies often pass resolutions to obstruct the ACC’s investigations.

In a separate statement today, Luthfy argued said the biggest obstacle to the ACC’s fight against corruption was the absence of an anti-corruption bill. He called upon the Majlis – currently considering such a bill – to take the initiative in fighting corruption.

Education

Today’s GCB launch was accompanied by the introduction of a corruption education pack, including five booklets intended to spread awareness of corruption and its impacts on society.

Whilst the GCB figures showed a strong belief that ordinary people could make a difference in the campaign against corruption – with 84 percent agreeing to this statement – the results revealed a lack of will to take action.

Asked if they would be willing to sign a petition asking the government to do more to fight corruption, 86 percent of those surveyed said they wouldn’t. 70 percent said they would not take part in demonstrations against corruption, whilst 61 percent refused to even to raise awareness of corruption through social media.

The most common area in which bribes were paid was said to be land services, with the most frequent reason for giving bribes being ‘to speed things up’.

Earlier this week the ACC alleged corruption in the award of apartments to individuals as part of the Veshifahi Malé housing programme, ordering the invalidation of 139 of the 448 successful applications.

891 GCB respondents stated that they would report an incident of corruption, although only 3 percent admitted to having personally paid a bribe. 85 percent of those who admitted to being asked to pay a bribe said they had refused.

The sample of people interviewed were predomantly male (66 percent) and from urban settings (65 percent). One quarter of respondents worked in the public sector, with 63 percent described as earning a ‘medium’ scale income.

Transparency Maldives, the local chapter of Transparency International (TI)describes the GCB as one of the tools it uses to better understand corruption.

The group’s most widely used indicator – the Corruption Perceptions Index – was released last week. For the second consecutive year the Maldives was not ranked after TI was unable to gather the necessary data.

Likes

(0)Dislikes

(0)

Parliament privileges committee seeks Majlis intervention in MP Hamid appeal case

The Majlis Parliamentary Privileges Committee has unanimously decided parliament should intervene in the appeal case of member Hamed Abdul Ghafoor, who was sentenced to six months for failure to attend Criminal Court hearings.

“The committee was of the opinion that the Criminal Court had acted outside of the boundaries of the law by summoning MP Hamid to court on a day when the parliament as well as committee sittings were scheduled,” said Deputy Chair of the Committee and Maldivian Democratic Party (MDP) MP Imthiyaz ‘Inthi’ Fahmy.

“Therefore this action by Criminal Court was clearly against the Privileges Act, thus a violation of privileges of both an MP and the parliament as a whole. On this grounds the committee has sent the report to Majlis Speaker to which the Speaker.”

Hamed was handed the custodial sentence during a month-long period of refuge sought within the grounds of parliament, which ended following the conclusion of the presidential election on November 16.

Hamed was originally asked to appear in court regarding an alleged refusal to produce a urine sample when asked by police following his arrest on suspicion of drug and alcohol possession last year.

He was arrested on the island of Hondaidhoo along with a number of senior MDP party members last year.

The MP himself, however, maintains that his stay in the parliamentary grounds was intended to highlight the importance of MP privileges.

“My holding up in the Majlis was in defense of parliamentary privileges, which was not reported in the media. We have found out members privileges are not understood,” Hamed told Minivan News today.

The Henveiru South representative suggested that Criminal Court Judge Abdulla Mohamed scheduled a hearing to clash with the parliamentary schedule as the case against him was failing.

He has subsequently been placed under house arrest, with the newly appointed Home Minister Umar Naseer telling local media that the state did not have the resources to transport the MP to and from Dhoonidhoo island prison in order for him to fulfil his parliamentary duties.

During his period of sanctuary, Hamed’s Maldivian Democratic Party (MDP) amended the parliament’s standing orders to allow an MP convicted of criminal acts to continue to attend Majlis sittings.

Hamed, as well as the Speaker of the House Abdulla Shahid, have consistently maintained that the summons to appear clashed with the MP’s parliamentary duties, contravening the Parliamentary Privileges Act.

“He has been issued court summons in violation of the Privileges Act. He has been issued a sentence because he took the privileges he is legally afforded as an MP,” Shahid told Minivan News earlier this month.

“I have written about this matter to the Prosecutor General [PG]. The Prosecutor General agrees with me. He has written a letter to the Supreme Court. He feels that the judiciary in this case has gone out of its way to punish Hamid.”

The PG Ahmed Muiz has since resigned as the Majlis prepared no-confidence proceedings against him – the President’s Office is currently accepting applications for his replacement.

Likes

(0)Dislikes

(0)

Majlis to interview 25 for security officers’ role

After fielding applications from 267 individuals, the Majlis has selected 25 people to be interviewed as security officers, local media reported.

MDP MP Imthiyaz ‘Inti’ Fahmy told Sun Online that the Majlis intended to employ one hundred officers.

The selection process follows Speaker Abdulla Shahid’s swearing in of former Maldives National Defense Forces (MNDF) officer Mohamed Haleem to the newly announced position of sergeant at arms last month.

The sergeant at arms is to oversee security of the Majlis premises – a task currently carried out by the MNDF.

The Ministry of Defence has criticised the move, arguing that the role is constitutionally reserved to the military, an argument which Shahid has expressed surprise at.

“I personally believe that the MNDF personnel should not be asked to come into confrontation with politicians, especially Members of Parliament. MNDF is a much higher institution,” Shahid told Minivan News earlier this month.

Likes

(0)Dislikes

(0)