Tag: maldives news

MTDC sells Herethera resort for US$33 million

The Maldives Tourism Development Corporation (MTDC) has sold the Herethera Island Resort in Addu City for US$33 million to Singapore’s Canaries Private Ltd.

Of the four companies that submitted bids following a public announcement to sell the resort on December 18, MTDC said in a press release on Monday (March 31) that the Singaporean company submitted the highest bid.

The agreement to transfer lease holder rights for the resort was signed on March 31.

The press release also noted that following the sale of the resort property the MTDC has repaid a loan obtained from the Bank of Maldives for developing the resort.

In June 2013, MTDC’s board of directors decided to sell Herethera – the government-owned company’s biggest asset – for US$30 million to a company with a majority stake owned by local tourism magnate ‘Champa’ Hussain Afeef.

MTDC Managing Director Mohamed Matheen told newspaper Haveeru at the time that the decision was made to sell Herethera to Afeef’s Treetop Investment Pvt Ltd because the government corporation did not have the finances to profitably operate the resort.

He added that a large investment was needed to fix problems with the beach and the environment of the resort in the southernmost atoll.

Herethera was the first resort developed and opened by MTDC while Afeef was chairman of the government’s tourism company.

Tourism pioneer Afeef meanwhile told the local daily that the Herethera development would take place in conjunction with the development of the international airport in Gan.

In November 2012, thirty percent of the Addu International Airport Ltd (AIAL) was sold to Afeef’s Kasa Holdings to raise finances to develop the Gan airport in Addu City.

However, the decision to sell the resort to Afeef was reversed following the election of President Abdulla Yameen.

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Anti-money laundering and combating financing of terrorism bill passed

Parliament yesterday passed legislation on anti-money laundering and combating the financing of terrorism (AML/CFT) following review by the national security committee.

All 53 MPs in attendance at yesterday’s sitting voted in favour of passing the bill.

Presenting the committee report (Dhivehi) to the Majlis floor, MP ‘Reeko’ Moosa Manik, chair of the national security committee, explained that the legislation introduces rules governing financial transactions and the inflow and outflow of money from the Maldives.

The bill will also address the persisting dollar shortage, the foreign currency black market, and counterfeiting of dollars, Moosa added.

Moreover, a limit would be placed on the amount of cash that can be taken out of the country, which has to be declared to customs, the opposition Maldivian Democratic Party MP said.

The new law would also benefit investors as it would inspire confidence in the legal system and offer security to foreign investments, Moosa said.

In the ensuing debate, Jumhooree Party Leader Gasim Ibrahim contended that the parallel market for dollars sprang up as a result of the Maldives Monetary Authority (MMA) not allowing the price of dollars to fluctuate.

Gasim suggested that the economy suffered adverse effects due to discrepancies between monetary and fiscal policy.

“Negative consequences”

Moosa noted that noted that a high-level delegation from the Asia/Pacific Group on Money Laundering (APG) had urged MPs to expedite the passage of the legislation.

MPs were warned of “negative consequences” such as restrictions in conducting international financial transactions and credit card transactions as well as transferring money to overseas bank accounts should the bill not be passed before June.

In a meeting with committee members in February, APG Co-chair Andrew Colvin warned that the organisation along with the Financial Action Task Force (FATF) “would be left with little option but to take certain measures that would be negative for the Maldives” should the legislation not be passed.

APG Executive Secretary Dr Gordon Hook noted that implementing AML/CFT laws was “an obligation that the Maldives undertook voluntarily when you joined the APG in 2008″ as a condition of membership.

“There are 41 countries in the APG. They include every country in the Asia/Pacific region with the exception of North Korea and three tiny Pacific states. Among those 41 countries of which Maldives is a member, you are the only country without a comprehensive AML/CFT framework,” he observed.

The anti-money laundering bill was submitted to parliament in late 2013 and sent to the national security committee for further review.

The absence of legislation “makes Maldives very vulnerable to money laundering and terrorist financing,” Dr Hook said.

He added that the vulnerabilities were identified by the International Monetary Fund (IMF) in a report prepared in 2011.

MMA Assistant Governor Neeza Imad meanwhile told MPs that the Maldives received a very low rating in an assessment by the APG in 2011, after which the central bank began drafting legislation on AML/CFT.

Technical assistance was provided by the APG and the IMF, she noted.

Countries that are listed by the APG for non-compliance with its standards on AML/CFT face “hindrances” in securing foreign direct investment, opening accounts overseas, and conducting international financial transactions, Neeza said.

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Comment: Juvenile crime – the consequences are anything but minor

This article was first published in the Police Life. Republished with permission.

Anyone below the legal age of 18 is seen as a minor in the eyes of the law in the Maldives. As such, their parents are their guardians and it is believed that they have certain leniencies afforded to them.

This is reflected in the increasing trend of juvenile crime in the Maldives. The underlying logic behind this trend seems to be that minors cannot be persecuted by the law and they would somehow avoid harmful consequences.

But this is a total misconception – while there are leniencies, they are not without limits, and are intended to offer a chance for the youth to redeem themselves or to turn their lives around at an early stage.

According to Maldivian law, any juvenile offender will only receive one third of the sentence – for example, a sentence of 15 years in prison maybe reduced to 5 years instead. Though this leniency exists, it is by no means a way to walk away without consequences. The individual will be monitored for a long period of time.

Another misunderstood leniency is one that is offered only to individuals committing their first offense. Depending on the nature of the crime, there is a delaying of carrying out the sentence for a set period of time. This is done to give the first offender a chance of redemption. But this leniency comes with certain terms and conditions.

One of the conditions is that if any additional crimes are committed during the set duration the sentence is delayed, the sentences for both crimes would be carried out together – for example, if a 5 year sentence for a crime was delayed from passing and the individual committed another crime that resulted in a 5 year sentence, they would get a 10 year sentence.

If the set duration passes without any criminal activity, the first offender is pardoned. But this is a leniency offered once and only once. Any further criminal activity from the same individual will not be afforded any such leniency.

Another thing to consider is that even if it is a first offense, the type of crime committed is also an important deciding factor. If it is a serious crime such as murder, the aforementioned leniency will not be afforded.

When talking about juvenile offenders, it is also important to shed some light on what is known as the “community conference”. It is a group of professionals and related individuals who come together to assess the progress of the minor to deem whether they are fit to continue being part of the society.

The conference contains the juvenile offender themselves, their parent/s, a judge, a prosecutor from the Prosecutor General’s Office, a representative of the FCPD (Family and Child Protection Department) of the Maldives Police Service and a representative from the Juvenile Justice Unit.

They come together to discuss the progress of the youth in terms of rehabilitation, trends in behaviour, risk factors and also to assist the youth in their re-entry and reintegration into society.

The ongoing misconception that because the youth of the nation are a protected and cherished group, they are exempt from consequences is a very harmful one. It results in many “at-risk” youth opting to delve into criminal behaviour and because it allows other, older individuals who are involved in criminal behaviour to exploit these minors for various criminal endeavors.

But the sad truth is that such thinking often results in many youth with untapped potential getting caught up in criminal or anti-social behaviour and paying a hefty price for it.

While there are leniencies to protect our youth, they are there to afford them chances of redemption and to give them the opportunity to better themselves while they still have time. Said leniencies are also not limitless and come with various terms and conditions that must be met. The goal is rehabilitation and crime prevention rather than simply punishment.

So it is important to always remember that even juvenile crime is not without consequence.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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President Yameen grants clemency to 169 convicts

President Abdulla Yameen has granted clemency yesterday to 169 convicts serving banishment, house arrest, or jail sentences.

According to the President’s Office, Yameen granted pardons or commuted sentences in accordance with Article 29 of the Clemency Act.

Some 116 individuals were released on parole with conditions following consideration of “age, health, type of medical treatment, time and circumstance, compassion, and behaviour,” the President’s Office revealed in a statement.

Convicts sentenced for drug abuse would be required to complete rehabilitation programmes, the statement noted.

Moreover, released inmates would be returned to jail to serve out the remainder of their sentences if they violate parole or commit a crime.

Persons convicted of murder, a crime with a punishment (hadd) prescribed in Islamic Shariah, terrorism, child sexual abuse, sexual assault or rape, and homosexuality were not among the 169 released convicts, the President’s Office said.

“In addition to the above-mentioned [exceptions], sentences were commuted based on records from the Maldives Police Service without including persons who could pose a threat to society’s safety and security,” the statement read.

It added that President Yameen had announced his intention to release prisoners at a campaign rally in Fuvahmulah last month.

Home Minister Umar Naseer told Minivan News in the wake of President Yameen’s announcement that the release of inmates would not present any difficulties to ongoing efforts to combat drug trafficking.

“It will not be a hindrance because the present Clemency Act prevents serious offenders from being released. Furthermore, this process will be monitored by the Home Ministry,” he said.

President Yameen also commuted the sentences of 24 inmates in January while his predecessor Dr Mohamed Waheed released 39 convicts during his last days in office.

Article 115 of the constitution states that the president has the authority “to grant pardons or reductions of sentence as provided by law, to persons convicted of a criminal offence who have no further right of appeal.”

On January 9, police cleared or expunged criminal records of 1,023 young persons who were arrested for various criminal offences, as part of the government’s pledge to facilitate youth employment.

“Political stunt”

Following President Yameen’s announcement last month, opposition Maldivian Democratic Party (MDP) Spokesperson Imthiyaz Fahmy described the move as “a very irresponsible political stunt”.

“This is a stunt they are pulling off as elections approach – an act without any form or structure. This is a stunt like they used to pull during the Gayoom administration – as every election nears, they’ll let out numerous prisoners and the streets will be teeming with drug abusers,” the Maafanu North MP said.

Fahmy also defended the release of convicts under the MDP government’s ‘Second Chance Programme,’ which he stressed was “a structured effort, under which applicable prisoners were released under parole to be under the guardianship of a family member.”

“They were given training in various skills and were provided with employment opportunities. They were monitored constantly and were taken back in when there is a risk of re-offending crimes.”

“Yameen and the people around him were those who most criticised our ‘Second Chance Programme’. And now look at what they are attempting to do. This clemency plan has no structure and will prove detrimental to the society,” he said.

Vice President Dr Mohamed Jameel Ahmed – who served as Home Minister during the Waheed administration – shut down the ‘Second Chance Programme’ in March 2012, alleging that the MDP government had used it to “release unqualified criminals under political influence and without any clear procedure”.

In July 2012, Jameel blamed a “surge in crime” partly on the ‘Second Chance Programme’, claiming that over 200 convicted criminals released under the scheme had been returned to prison for re-offending.

Jameel also published a comment piece in newspaper Haveeru in September 2011 criticising the programme and emphasising the importance of granting clemency in accordance with the Clemency Act.

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Nasheed appointed acting president of MDP as ‘Reeko’ Moosa resigns chairmanship

MP ‘Reeko’ Moosa Manik announced his resignation as chairperson of the opposition Maldivian Democratic Party (MDP) at a meeting of the party’s national council today, which also saw former President Mohamed Nasheed appointed MDP’s acting president.

At the conclusion of today’s meeting, the outgoing chairperson said he decided to resign because he believed in democratic principles, urging other members in the party’s leadership to follow his example.

He added that former President Nasheed was in charge of the MDP’s election campaigns, which were conducted based on “his instructions and under his supervision.”

Moosa assured council members that there was no “negligence” on his part that was to blame for the MDP’s losses.

Today’s meeting was called to discuss restructuring and reforms following electoral defeats in the presidential and parliamentary polls, and to decide a date for the party’s next congress.

MP Moosa Manik announced his resignation at the start of the council meeting in Dharubaaruge this afternoon.

In the wake of the party’s poor performance in the Majlis elections, Nasheed told the press that the leadership should bear responsibility and called for new leaders to take the party’s helm.

The main opposition party fielded 85 candidates and won 26 seats in the March 22 elections, while the ruling Progressive Coalition secured a comfortable majority.

The coalition’s numbers in parliament grew to a two-thirds majority with yesterday’s defection of MDP MP-elect Mohamed Musthafa to the Progressive Party of Maldives.

A resolution to appoint Nasheed acting president was adopted with the support of 47 members out of the 54 in attendance at today’s council meeting.

The post of the MDP’s president has been vacant since the national council removed former party president Dr Ibrahim Didi with a no-confidence vote in April 2012.

The MDP national council today also decided to hold the party’s congress on June 6 and 7.

Among other decisions approved today, the national council voted to form a three-member committee to study reforms (Dhivehi) suggested by a group of party members. The committee consists of Youth Wing President Aminath Shauna, Ali Niyaz, and Ahmed Mujthaba.

A proposal by MP Ahmed Hamza to appoint members to vacant leadership posts within the next six months and a proposal by former National Social Protection Agency Chairman Ibrahim Waheed to make former presidents elected to office on the party’s ticket permanent members of the council were also passed.

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New police policy to protect identity of suspects until prosection

The police have introduced a new policy which will protect the identity of persons taken into police custody until the Prosecutor General’s Office (PGO) charges them in court.

Newspaper Haveeru has reported a police media official as saying that the police will no longer reveal the names of suspects arrested before they are officially charged in the court – though it was noted that this policy remains at the discretion of senior officers.

The paper noted that police had not revealed the names of suspects arrested in connection with the stabbing of former MP for Feydhoo constituency Alhan Fahmy.

Haveeru reported that the official told the paper that the new policy was made after an agreement signed between the police and PGO.

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Foreigners’ enrollment extended while Majlis considers amendments to Pensions Act

The Maldives Pensions Administration Office (MPAO) has extended enrollment for foreign employees onto its retirement pension scheme until May 15 following an amendment introduced in the Majlis earlier this week.

The enrollment of foreign workers into the scheme – mandated by the first amendment to the 2009 Pensions Act – was scheduled for completion today (April 1).

“We had decided that the date of enrollment should be before 1st April 2014, but now there is a proposed amendment to the Pensions Act in the parliament to make it voluntary for foreigners,” said MPAO Director Ismail Sujau.

“We are giving the delay for one and a half months for foreigners to complete their enrollment and also pay the contributions,” he added.

Sujau confirmed that the scheme will require a contribution of seven percent of employees’ earnings, matching a seven percent contribution from their employers.

The collection of contributions will be still be collected by employers before the end of April, to be handed over to the pensions office by May 15 as originally planned, he explained.

The proposed amendment – submitted by Maavah MP Abdul Aziz Jamaal Abubakr earlier this week – has been welcomed by many expatriates who fear they will struggle to reclaim their contributions upon leaving the Maldives.

“My biggest concern is not getting our money back when we leave, and if we do get it back, getting it back in rufiyaa,” said Varsha Patel, a teacher at Lale Youth International School in Malé.

“Why don’t they just call it an income tax rather than pension?” asked former teacher Rachel Evans*, aged 35.

“Nobody is dumb enough to believe we’re ever going to see that money again. It takes six months to get work visas processed. No way will they ever be able -or willing – to refund this pension at the end of a foreigner’s contract,” she added.

After submitting the amendment this week, Abubakr told local media he felt it would be better for both employees and employers to make the scheme voluntary for foreigners.

“Its enforcement may create difficulties for the employee – it may even result in monetary problems. If he can’t attain his money when he is about to leave the country, then he would face many difficulties. That would even be against his rights,” the Maavah MP told Haveeru.

Contribution concerns

Speaking with Minivan News today, Sujau assured that the regulations allowed for the retrieval of funds, but admitted that specific details of the rebate mechanism were yet to be decided upon.

“There has been a lot of concern – we understand that – even when we have had so many public information sessions,” he said.

“We have heard many concerns, especially when they withdraw the funds. We are collecting the funds in Maldivian rufiyaa and definitely we are paying out in Maldivian rufiyaa so they have a concern because local currency they make not be able to take it back and trade. They can only trade to dollars or some other foreign currency.”

Sujau said that the contributions will be transferred to rufiyaa denominated accounts, or given out in cash, though he acknowledged that transfers to foreign currency accounts had not yet been organised.

“That arrangement we have not been able to make yet. This something we will look into as it progresses.”

A heavy import-export imbalance in the Maldives results in a perennial foreign currency shortage, while a dominant tourism sector – which deals almost exclusively in US dollars – results in a weak local currency.

“What’s the point of them refunding a worthless currency when they could just call it an income tax and keep the money”, asked Rachel.

Meanwhile, Varsha – 26 -suggested that employees had been given inadequate notice of the scheme and insufficient information about how to reclaim contributions.

“We were not really given enough notice – I was only told last month. I’m not very happy to be having a pay cut for no reason.”

After the introduction of the 2009 Pensions Act, the initial regulations made no distinction between local and foreign employees – who were both included in the first phase of the scheme for public sector workers, explained Sujau.

However, just prior to the adoption of private sector workers into the scheme in  May 2011, an amendment was passed requiring separate regulations for foreigners to be drafted within 12 months, and for enrollment to be completed within three years.

Regarding complaints about the scheme, Sujau noted that his office was responsible only for the practical application of governmental decisions.

“As far as the MPAO is concerned, we are an implementing agency, we don’t make policy – we just adopt whatever is in the Pension Act and follow,” he said.

*Name changed as individual wished to maintain anonymity

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Parliament passes revised penal code

Parliament passed the revised penal code today more than four years after it was resubmitted to the 17th People’s Majlis.

If ratified by the president, the new penal code will replace the existing law that was drafted and enacted in the 1960s.

The new law will come into force one year after ratification and publication in the government gazette.

The revised penal code (Dhivehi) was passed with 48 votes in favour, one against and three abstentions.

The penal code was first put to a vote in December, 2013, after review by a select committee. It was rejected 36-34 with one abstention and returned to the committee.

Parties in the ruling coalition issued a three-line whip to defeat the bill on the grounds that principles of Islamic Shariah law were not adequately reflected in the final draft.

The bill passed today was however the same draft voted on in December with three amendment submitted by an MP. MPs had been required to submit amendments before January 20.

The first draft of the penal code was prepared in 2006 at the request of then-Attorney General Hassan Saeed by Professor Paul Robinson, a legal expert from the University of Pennsylvania.

Following its initial submission to the 16th People’s Majlis in 2006, the draft legislation was resubmitted in late 2009 after the election of the 17th Majlis, where it remained in committee stage until December last year.

Opposition Maldivian Democratic Party MP Ahmed Hamza – chair of the select committee that reviewed the draft legislation – told Minivan News in December that delays in completing the review process was due to the long periods required for seeking commentary and consultation from state institutions such as the Attorney General’s Office and the Islamic Ministry.

During the parliamentary debate in December, MP Ibrahim Muttalib insisted that “no human being has the right to rephrase divine laws in Islamic Sharia into separate articles in a law.”

Progressive Coalition MPs contended that some penalties in the final draft were in conflict with provisions of Shariah law.

Religious conservative Adhaalath Party Sheikh Ilyas Hussain had also previously criticised the bill, claiming that it would “destroy Islam”. Ilyas’ remarks subsequently prompted a parliamentary inquiry.

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Sheesha brothers file case to retrieve stolen funds from State Bank of India

The Sheesha brothers have have filed a case with the Civil Court to implement the court’s January 16 ruling which had ordered the State Bank of India (SBI) to pay them MVR13.5 million plus interest within one month.

During a press conference held yesterday the brothers and their lawyer Abdul Nasir Ibrahim revealed that SBI had not paid the money to the company according to a Civil Court ruling, and that the court had now accepted the case.

On January 16, the Civil Court had ruled that SBI had to pay the brothers’ motorcycle importing company MVR13.5 million outstanding from the total MVR18 million that had been discovered missing from its account in November 2011 after a series of unauthorised transfers.

Nasir said yesterday that he had met with SBI before filing the lawsuit and that the bank had told him that it would transfer the money only if the Civil Court deemed that the previous court ruling should be implemented.

Nasir told the press yesterday that, although SBI had the right to appeal the Civil Court ruling at the High Court, ruling was now in existence and had to be implemented unless the High Court rules otherwise.

Having met with the Maldives Monetary Authority governor – then Dr Fazeel Najeeb – regarding the issue, Sheesha’s lawyer had been told to find a solution through the courts. Nasir also called on the MMA to take action against SBI for not implementing the Civil Court’s ruling.

Following the discovery of the unauthorised removal of the funds, the company – owned by Ahmed Hassan Manik, Hussain Husham, and Ibrahim Husham – told local media that the money had been transferred to a Bank of Maldives account using a forged document faxed to SBI with Manik’s name and signature.

The brothers said they would sue SBI and requested that the bank take full responsibility for the theft – which had comprised of two transactions totalling MVR18 million.

The Prosecutor General’s Office pressed charges against seven people in connection with the case in May 2013, including a retired Maldives National Defence Force (MNDF) colonel, and two staff members from SBI.

In November 2011, the Criminal Court issued an Interpol red notice to apprehend three persons suspected to be involved in the case.

Local newspapers at the time reported that Colonel Shaukath Ibrahim’s bank account was used to transfer the money and to withdraw it.

Yesterday, Sheesha’s lawyer told the press that the Civil Court had ruled SBI had neglected its responsibilities and that its negligence had caused the loss of the company’s MVR18million.

Of the total MVR18 million stolen, local media has reported that the company was able to recover MVR4.4 million from the Bank of Maldives account that the money had been transferred to.

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