Parliament passes amendment to exempt Maldivians from T-GST

Parliament today passed an amendment to the Goods and Services Tax Act to exempt domestic air travel and goods sold at shops in resorts, guesthouses, and hotels exclusively for staff from the Tourism Goods and Services Tax (T-GST).

The amendment submitted by Maldives Development Alliance MP Mohamed Ismail was passed unanimously with 72 votes in favour.

However, the amendment bill does not exempt foreign labourers and tourists from T-GST on domestic air travel or ticket prices.

Following ratification by the president, Maldivians would be charged a six percent GST on airfare.

A T-GST hike from eight to 12 percent – approved by parliament in February as part of revenue raising measures proposed by the government – came into effect on November 1.

Subsequently, local airlines Maldivian and Flyme imposed a 12 percent sales tax on ticket prices and increased airfare by about MVR32 per ticket.

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PPM dismisses rumors Gayoom may leave party

The ruling Progressive Party of the Maldives (PPM) has dismissed rumors that President Maumoon Abdul Gayoom may leave the party as “baseless and false”.

“We assure our beloved members [Gayoom] will not leave this party and join another party or take on any position in another party,” said a statement released on Tuesday (November 18).

The former president of 30 years was elected as PPM president at the party’s 2012 congress, a year after his acrimonious split from the Dhivehi Rayyithunge Party (DRP).

The statement came in response to rumors Gayoom may rejoin the DRP, local media have said.

Speculation of tension between Gayoom and his half brother President Abdulla Yameen has grown since the PPM parliamentary group’s decision to reject Gayoom’s choice for the post of Prosecutor General, his nephew Maumoon Hameed.

However, the two have presented a united front with joint-appearances at party functions on PPM’s third anniversary in power.

Gayoom on November 13 congratulated Yameen for allegedly fulfilling majority of pledges in the PPM manifesto and said Maldivians had found new life in Yameen’s presidency.

Gayoom had founded the DRP in 2005 and ran on the party ticket for the 2008 multiparty presidential election. When he lost, Gayoom retired from politics and handed over the party reigns to him former running mate Ahmed Thasmeen Ali.

He was then given the title of Zaeem or Honorary leader.

However in April 2011, Gayoom established the Zaeem DRP or Z-DRP as a separate branch of DRP amidst growing tension between himself and Thasmeen. He went on to  establish the PPM in September 2011.

Thasmeen defected to the opposition Maldivian Democratic Party (MDP) during the presidential elections of September 2013 after he and former President Dr Mohamed Waheed gained only five percent of the popular vote.

MP ‘Colonel’ Mohamed Nasheed – who had defected to the DRP from the MDP – ahead of the presidential vote took over DRP and announced a rebrand effort. He has said the next DRP congress will see a resolution to award Gayoom the title of Zaeem again.

Nasheed has previously described the party as now being in the ‘ICU’, accusing the party’s former leadership of leaving behind MVR10million in debt (US$ 64,5161) and abandoning the party with its data and assets.



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Majlis approves nominees to Police Integrity Commission, Elections Commission

The People’s Majlis today approved President Abdulla Yameen’s nominees to fill vacancies in the Police Integrity Commission (PIC) and the Elections Commission (EC).

Following evaluation by the independent institutions committee, MPs approved Adam Saeed Moosa to the PIC with 62 votes in favour, two votes against, and two abstentions.

Saeed was a senior official at the PIC. Following approval of his nomination, the president’s second nominee – Fathmath Minhath – was not put to a vote.

Meanwhile, of three nominees to fill two seats on the EC, parliament only approved Amjad Musthafa, from Gaaf Alif Maamendhoo Alivilaage, with 63 votes in favour, one against, and five abstentions.

Former EC Secretary General Asim Abdul Sattar received 23 votes in favour and 47 against while Aishath Hafeez received 22 votes in favour and 47 against.

The committee, however, had awarded Asim the highest marks with 91.4 points following its evaluation.

The five year terms of two current commissioners – Mohamed Farooq and Ali Mohamed Manik – are due to end on November 24.

Amjad’s appointment would still leave three vacancies on the five-member commission. Former EC Chair Fuwad Thowfeek and Deputy Chair Ahmed Fayaz were stripped of their seats by the Supreme Court in March this year.

Parliament subsequently approved Ismail Habeeb to the EC to replace a commissioner who resigned due to poor health – ensuring a three-member quorum for the parliamentary polls to be held as scheduled on March 22.

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MDP condemns government’s failure to fulfil promises to fishermen and farmers

The Maldivian Democratic Party (MDP) hascondemned President Abdulla Yameen’s government for its lack of commitment to promises made towards the betterment of fishermen and farmers in the Maldives.

While speaking at a press conference, MDP Fisheries and Agriculture Committee’s Chair Ibrahim Rasheed said that the government’s lack of commitment is clearly illustrated by the fact that no funds are allocated towards the promised MVR10,000 (US$650) for fishermen.

“Even though President Yameen has promised on multiples podiums to provide fishermen with MVR10,000 and farmers with MVR8000, the budget does not have any allotted funds for this,” said Rasheed.

The committee also expressed concerns over the high recurrent expenditure budget allotted for the fisheries and agriculture ministry while there are only three new programmes to be added to the few ongoing in the upcoming year.

The record24.3 billion (US$ 1.5 billion) budget for 2015 has an allotted MVR134 million (US$8.7 million) as recurrent expenditure for the Ministry of Fisheries and Agriculture.

Meanwhile, the parliamentary debate for the proposed budget concluded today with 79 out of 85 MPs sharing their thoughts on the budget during the process.

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Parliamentary budget debate concludes

Parliament’s budget debate concluded at yesterday’s sitting after 79 out of 85 MPs shared their thoughts on the record MVR24.3 billion (US$1.5 billion) state budget for 2015.

While opposition MPs criticised higher taxes, deficit spending and alleged discrimination in the allocation of funds, pro-government MPs praised planned capital investments and contended that the budget was balanced.

Speaking at yesterday’s sitting, Majority Leader Ahmed Nihan insisted that funds and development projects in the budget were fairly allocated and denied discriminating against constituencies represented by opposition MPs.

“We won’t see the colour pink in any part of this page,” the parliamentary group leader of the ruling Progressive Party of Maldives (PPM) said, referring to the party’s colour.

The MVR6.3 billion (US$408 million) allocated for the Public Sector Investment Programme (PSIP) – 24 percent of the budget – would see an unprecedented number of infrastructure projects launched in 2015, he said.

All MPs were invited to request infrastructure projects for their constituencies before the budget was submitted, Nihan noted.

The budget was formulated to fulfil campaign pledges of the PPM, he continued, and President Abdulla Yameen’s administration would deliver during the next four years.

He noted that President Yameen has launched a MVR200 million (US$12.9 million) loan scheme for young entrepreneurs and small and medium-sized businesses.

Other PPM MPs claimed that the budget would bring “revolutionary” changes to the economy and spur growth, noting that recurrent expenditure of MVR15.8 billion (US$1 billion) would be covered by government income or revenue of MVR21.5 billion (US$1.3 billion).

Minority opinion

At Monday’s sitting, however, Minority Leader Ibrahim Mohamed Solih questioned whether the MVR21.5 billion revenue forecast in the budget could be realised in full.

The parliamentary group leader of the opposition Maldivian Democratic Party (MDP) predicted that revenue in 2015 would not exceed MVR16.4 billion (US$1 billion), which would be 16 or 18 percent higher than total revenue collected this year.

However, state expenditure was projected to rise by 40 percent, Solih said, adding that the revenue would not be sufficient to cover recurrent expenditure of MVR15.8 billion and MVR1.3 billion (US$84.3 million) for loan repayment – leading to a deficit of about MVR600 million (US$38.9 million).

While MVR340 million (US$22 million) was forecast in the budget as revenue from introducing a US$10 ‘green tax’ in the last quarter of 2015, Solih noted that the government has decided to lower the amount to US$6 per day and delay implementation to November, which would lead to a revenue shortfall of about MVR300 million (US$19.4 million).

Public debt

Solih further contended that PPM MPs had falsely claimed that the MDP government inherited a national debt of MVR4 billion (US$259 million) from the previous administration in 2008.

“That was domestic debt. The state’s total debt was MVR10 billion [US$648 million] at the time,” he said.

Moreover, the MDP government spent MVR2 billion (US$129.7 million) in 2009 and MVR1.5 billion (US$97 million) in 2010 to settle unpaid bills from the previous government, Solih said.

When the MDP government was ousted in February 2012, Solih said debt had reached MVR21 billion – about MVR3.6 billion a year for three years – which grew to about MVR25 billion (US$1.3 billion) during President Dr Mohamed Waheed’s two years in office.

However, state debt would reach about MVR32 billion (US$2 billion) – 67 percent of GDP – at the end of 2014, Solih noted, which means MVR7 billion (US$453.9 million) has been accumulated in debt during the current administration’s first year in office.

“So instead of pointing fingers at each other let’s all work together to solve this,” he said.

Solih also accused the government of spending millions in excess of the budget approved by parliament for 2014, which was done in violation of public finance laws.

Nihan, however, disputed the figures yesterday and claimed that a national debt of MVR24,000 per capita at the end of former President Maumoon Abdul Gayoom’s 30-year reign had risen to MVR100,000 at the end of former President Mohamed Nasheed’s three years in power.

The state’s expenditure rose dramatically in the aftermath of the December 2004 tsunami, Nihan said, which included repairing damage caused to infrastructure and assist displaced persons.

Instead of apportioning blame for driving up the state’s debt, Nihan said the responsibility of MPs and the government was saving the nation from debt.



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Free airport ferries for the disabled

Free ferries between Malé and Hulhulé will be provided for people with disabilities from midnight tonight, the Airports Ferry Operators Association has announced.

“People with disabilities can show their card at the ticket station and get tickets for free,” Secretary General of the Airports Ferry Operators Association Ibrahim Mohamed told Sun Online.

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High Court overturns sex crime conviction of renowned Quran teacher

The High Court on Sunday (October 16) overturned the conviction of renowned Quran teacher or reciter Hussain Thoufeeq, for committing a sex crime.

In November 2013, Thaufeeq was sentenced to six months banishment and 15 lashes for sexually abusing children. However the Criminal Court suspended the sentence for three years, on the grounds it was the Qari’s first offence.

Thaufeeq appealed the verdict and the High Court ruled noted that the three witnesses were all related, had not reported the matter to police, and had testified after being evicted from their apartment.

Presiding Judges Abbas Shareef, Yousuf Hussain, and Dr Ezmirelda Zahir ruled that the testimony of the witnesses was not sufficient to prove guilt beyond reasonable doubt.

Thaufeeq was arrested in August 2010 on multiple charges of child sexual molestation with “some cases going a long time back,” police said at the time.

Thaufeeq’s students had also submitted a petition to the Human Rights Commission of the Maldives (HRCM) asking the commission to investigate the allegations.

Thaufeeq hosted a daily Quran teaching program on Television Maldives (TVM) for school children every evening after Isha prayers. He also led Friday prayers and conducted sermons.

Under the Child Sex Offenders (Special Provisions) Act of 2009, the penalty for child sex abuse is 10-14 years but can be extended to 15-18 years if the accused was in a position of trust with the children he allegedly abused.

However, Thaufeeq was charged under a different regulation for criminalising fornication and sexual misconduct.

The Qari is also being charged with possession of pornographic material. The trial is still pending at the Criminal Court.

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Police officer arrested in domestic violence case

A police officer was arrested in Hulhumalé around 12:45pm today for assaulting his wife.

Police said the 35-year-old man was arrested at the “crime scene” and the victim has sought treatment at the Hulhumalé hospital.

The Hulhumalé police station and the police family and child protection department are jointly investigating the domestic violence case.

According to online news outlet Vaguthu, the police officer beat his wife in the presence of his mother-in-law.

In April 2012, parliament passed long-awaited legislation on criminalising domestic violence.

Ministry of Gender and Family study – the first comprehensive nationwide survey of domestic violence in the Maldives – showed that one in every three women between the ages of 15-49 has been a victim of domestic violence.

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More than one in three Maldivians offered bribes or witnessed vote buying, IFES survey reveals

More than one in three Maldivians were offered bribes for their votes or witnessed vote buying in the March parliamentary polls, a landmark study by the International Foundation for Electoral Systems (IFES) has revealed.

The ‘Money and Elections in the Maldives: Perceptions and Reality‘ report released today said vote buying in the Maldives has assumed “alarming proportions” and “if not addressed, it threatens to undermine the democratic process in the country.”

The survey gathered information from face-to-face interviews from across the Maldives and looked at prevalence of vote buying and fraud, and public perception on campaign finance.

Of the respondents who experienced or witnessed vote buying, 82 percent said they were offered cash. Of this, 53 percent said they were offered between MVR4,000 (US$262) and MVR20,000 (US$1,309) for their votes.

According to IFES, the figure for those who experienced vote buying is a conservative estimate as respondents to opinion surveys are generally reluctant to report unethical or illegal activity.

Ballot marking was the most common technique used to ensure that those offered money or gifts cast their ballot for the candidate or the party who offered them money or gifts (27 percent), the survey said.

A further eight percent were asked to swear an oath on the Qur’an while six percent were asked to turn over their identity papers.

More than a third of respondents believed fraud was committed during parliamentary polls.

Despite the alarming prevalence of vote buying, majority of Maldivians continue to have faith in the electoral process, with 8 out of 10 saying they believed voting gives them influence over decision-making in the country.

“Vote buying should be addressed before cynicism and apathy take root,” IFES said.

Campaign Finance

Nearly two thirds (66 percent) of Maldivians believed political parties and candidates spend most of their campaign funds on vote buying and gifts for voters, while 70 percent said they do not believe candidates are honest in reporting campaign spending.

When asked about key sources of campaign funding, most Maldivians believe political parties and candidates receive funds from party funds (40 percent), or that candidates are self funded (32 percent). Local businesses ranked third.

More significantly, nearly 4 out of 10 respondents said they did not know sources of funding, suggesting a significant lack of information regarding election campaign funding.

Despite the dismal picture, there is near unanimous support for campaign finance reform, specifically to combat vote buying, IFES said.

Approximately 90 percent said vote buying should remain illegal and 70 percent supported a cap on contributions by any one person.

Three quarters of respondents also said they would like to see campaign spending limits for political parties and candidates.

Hence, “Maldivian lawmakers have clear public support to introduce preventive measures to combat vote buying ahead of the next elections,” the report stated.

A clear majority, nearly 90 percent, do not believe government property, including vehicles and boats, should be allowed for campaigning or political purposes.

A majority also said candidates and political parties must not undertake charitable activities and community development activities such as building a playground or harbors, suggesting a majority recognised such activities can be utilised to generate support.

A slight majority also believed the hiring of local musicians during campaigns was inappropriate.

Survey findings indicated high levels of confidence in the Election Commission with 73 percent stating the commission performed well or very well.

Those who did not vote in the election identified re-registration and other logistical issues such as transportation as main reasons for not voting.

Nearly 4 out of 10 voters had to manually re-register before each election, the survey found. IFES has recommended legislative reform to ease the burden or re-registration and logistical difficulties for voters and the Election Commission

Of those who did not vote, 19 percent said there were no worthy candidates, while 16 percent said they had no interest and 7 percent said their vote does not matter.



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