Tag: maldives news

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”.

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Criminal Procedure Code Bill to include strong measures against hard-line offenders

The Chair of Parliament’s National Security Committee, MP ‘Reeko’ Moosa Manik has said that the Criminal Procedure Code bill currently being drafted in parliament will include strong measures to protect witnesses and ensure successful prosecutions.

The Hulhu-Henveiru constituency MP told local media that the parliament’s National Security Committee – charged with reviewing the bill – had decided to restrict the rights of those accused of major crimes as well as introducing strict procedures during criminal investigations.

Among the measures to be made part of the legislation include setting a limit for the maximum detention period of such suspect, reducing the right to remain silent and the right to obtain legal counsel while in custody.

Furthermore, Moosa said that the bill, once ratified, would make it mandatory for a suspect to consent to urine tests and DNA tests, as well as submitting fingerprint and handwriting samples.

Moosa said that the National Security Committee members have also agreed that 135 days ought to be the maximum period a person can be detained by police for criminal investigations.

Under the new provisions included in the bill, explained Moosa, police would be expected to conclude investigations and file for prosecution within a 60 day period, while the Prosecutor General’s (PG) Office must press charges within a 15-day period.

“The bill also allows suspects of major criminal offences to be placed under custody during police investigation and up until the trial is over,” Moosa told local media.

Mandatory tests and restrictions on right to remain silent

The Criminal Procedure Code bill was originally proposed during the 16th parliament session under former ruler Maumoon Abdul Gayoom, before being re-submitted by President Mohamed Nasheed’s administration during the next session.

The bill has been pending in parliament for the past five years, with the legislature coming under heavy fire from NGO’s and the public over the delay, particularly during the record high number of murder cases in the past three years that included the murder of former MP Dr Afrasheem Ali.

The Criminal Procedure Code bill identifies terrorism, murder and manslaughter, causing grievous bodily harm, offenses against minors, drug trafficking, money laundering and other similar acts as major criminal offences.

Those accused of less serious offences may be kept in detention for a period of 70 days – which includes 30 days for criminal investigations, 10 days for prosecution, and an additional 30 days to conclude the trial.

Moosa argued that, although the right to remain silent is enshrined in the constitution, no criminal suspect should have the liberty to refuse to undergo urine and DNA testing, which he argued would prove to be central for prosecutions.

“We believe the right to remain silent and consenting to taking urine and body samples are two different things.  This is the practice in all developed countries,” Moosa claimed.

Earlier this year opposition Maldivian Democratic Party (MDP) MP Hamid Abdul Ghafoor was sentenced to six-months in jail after he refused to cooperate with the courts investigation into an alleged refusal to provide a urine sample. The High Court, however, quashed his conviction on the grounds that the Criminal Court had not followed due process when deeming him guilty.

Witness protection

In order to safeguard possible witnesses to a crime, the committee members have also agreed to bar those accused of major crimes from privately meeting attorneys and family for a period of 36 hours from the time of arrest – a decision supported by both the police and the judiciary.

Both High Court Judge Abbas Shareef and Criminal Court Judge Muhuthaaz Muhsin have spoken in favor of such a provision during the committee’s discussions, which have also seen contributions from the PG’s Office, Human Rights Commission (HRCM), and the police.

“In 80 percent of the murder cases, witnesses were tempered through threatening and intimidation, after the accused meets with his lawyers and family members. This is something that is being talked about and this is how it is done,” Judge Muhsin told the committee.

Meanwhile High Court Judge Shareef told the committee that in some jurisdictions a suspect of a major criminal offence is denied of the right to obtain legal counsel or to meet their family and relatives for a period of three days, while in others family and relatives are not even informed of the suspect’s location.

“In some US States, [such a suspect] is not even at all allowed to meet family or obtain legal counsel. There are countries which have laws that allow a suspect’s location of detention be made confidential for a period of 72 hours,” Shareef explained.

HRCM member Jeehan Mahmood objected to the provisions, however, citing violations of fundamental human rights.

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Corruption case against former media council members continues

The Anti-Corruption Commission has forwarded the cases of seven former members of the Maldives Media Council (MMC) accused of ignoring a directive to return allowances deemed illegal, local media has reported.

Sun Online has reported that charged are being pursued against a total of 10 former MMC members.

A 2011 Auditor General’s report revealed that members took almost Rf 900,000 in additional allowances – fees which the MMC subsequently asked to be returned.

The report stated that the living allowance was an illegal expense, despite parliament having approved the MMC’s budget which included the allowance. It was noted that the MMC had behaved inappropriately for an institution that was required by nature to have the trust and confidence of the public.

The following year’s audit report revealed that 13 of the MMC’s members had failed to return the MVR7,500 (US$478).

A recent survey conducted by local NGO Transparency Maldives revealed that only 12 percent of those interviewed believed public officials and civil servants to be free from corruption.

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President Waheed receives grand welcome on return to Malé

President Abdulla Yameen has received former President Dr Mohamed Waheed Hassan upon his return to Malé last night amidst great fanfare.

Waheed and his wife Ilham Hussein were greeted at the Ibrahim Nasir International Airport by Vice President Dr Mohamed Jameel Ahmed and several ministers including Defense Minister Mohamed Nazim and Tourism Minister Ahmed Adheeb.

Speaking to the press on his arrival, Waheed said he now wished to work “for the benefit of the community.”

Yameen , Jumhooree Party (JP) leader Gasim Ibrahim, MPs, senior government officials and dozens of supporters welcomed Dr Waheed on his return to the capital. Speaking to the media, Yameen pledged “the highest honors and respect” to his predecessor.

When asked if Waheed will be given a government position, Yameen declined to comment, stating “this is a matter between us”.

An official motorcade escorted Waheed and Ilham to their residence.

Waheed had departed the Maldives on a private visit on November 14, days after declaring he would remain in power beyond the end of the presidential term on November 11. In a televised speech, Waheed pledged to resign on the day of the presidential run-off, scheduled for November 16.

The Ministry of Finance and Treasury approved MVR 525,000 (US$34,047) for Waheed’s month long trip.

He had contested in the annulled first round held on September 7,winning just 5.13 percent of the vote. Waheed subsequently decided to back Yameen in the following rounds.

Speaking to local media before his departure, Waheed said his return depended on the political environment in the Maldives. When Yameen won the presidential election on November 16, Waheed quickly announced that he would be returning to the Maldives.

Waheed assumed the presidency after the controversial resignation of his predecessor, Mohamed Nasheed, on February 7, 2012. Nasheed has accused his deputy Waheed of engineering a coup d’état to unseat the Maldives’ first democratically elected government.

Yameen’s Progressive Party of the Maldives (PPM) played a key role in supporting and maintaining Waheed’s rule amidst two years of political turmoil.

The PPM will seek to amend the Former Presidents’ Privileges Act in order to ensure Waheed receives privileges and immunities, Yameen said. At present, the act states that a president must hold power for 30 months in order to qualify for privileges. Waheed had held the post for 21 months.

In his farewell address on November 15, Waheed defended his track record, claiming he had maintained peace and stability despite assuming the presidency at a time of “anger, unrest and economic ruin.”

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IOM conducts human trafficking workshop for police and immigration officials

International Organization for Migration has commenced a Human Trafficking training workshop for Police and Immigration officials.

The four-day workshop participants will be informed on internatinal best practice on conducting investigations and dealing with victim of human trafficking. The workshop will cover both labor and sex trafficking.

Assistant Controller of Immigration Ali Ashraf informed Minivan News last week that the training would help prepare immigration officials for the recently ratified anti-trafficking bill.

Those found guilty of human trafficking can now face up to 10 years for cases involving adults, which can be extended to up to 15 if children are involved. Accomplices to trafficking can also now receive a seven year sentence.

“Implementation of the bill will require a lot of effort and coordination,” said Ashraf.

The Maldives’ has remained on the US State Department’s Tier 2 watchlist for four years, being warned this year that only significant improvements in this area could save it from relegation to Tier 3 and potential sanctions.

A government-ordered report in 2011 revealed human trafficking to be the Maldives second most lucrative industry after tourism – worth an estimated US$123million a year.

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Repeated delays in trial of second Afrasheem murder suspect

At the request of the Prosecutor General’s Office (PGO), the Criminal Court has delayed the trial of Ali Shan, the second suspect charged with the murder of MP Dr Afrasheem Ali.

The last hearing was held in May this year. The Criminal Court had given Shan the opportunity to appoint a lawyer. Shan has pleaded innocent.

Progressive Party of Maldives MP Dr Afrasheem Ali was stabbed to death on the night of October 1, 2012, on the staircase of his home.

A PGO official said the office was waiting for a verdict in the case against the chief suspect in the murder Hussain Humam before proceeding with the case against Shan.

The Criminal Court has concluded hearings into Human’s trial.

Police have forwarded cases of four additional individuals to the PGO for their alleged involvement in Afrasheem’s murder – taking the total number of suspects facing charges over the attack to seven.

Azleef Rauf, Shaahin Mohamed, Adam Salaah, a minor named ‘Nangi’ and Abdulla ‘Jaa’ Javid – son-in-law of opposition Maldivian Democratic Party Chair ‘Reeko’ Moosa Manik – stand accused of aiding and abetting the murder,

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Total of 892 MDP candidates to compete in local council elections

Speaking to media today, Maldivian Democratic Party (MDP) Chairperson Moosa ‘Reeko’ Manik said the forms for all 892 candidates that won MDP tickets for the upcoming local council elections scheduled for  January 18, 2014 have been handed over to the Elections Commission.

Moosa said in constituencies without an MDP candidate, the party will endorse independent candidates. He said the details of this will be revealed soon.

Meanwhile the ruling Progressive Party of Maldives (PPM) has previously announced it will be contesting a total of 627 seats in this election.

The PPM and the ruling “Unity Coalition” members will work jointly in these elections to gain maximum seats. The Jumhooree Party, the second biggest in the coalition, will be contesting for more than 340 seats.

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President forms anti-trafficking steering committee

President Abdulla Yameen has formed an “Anti-Trafficking Steering Committee” as required by the new Anti Human Trafficking Act.

The members of the committee are;

1. Abdulla Saeed, Supreme Court Judge
2. Jeehan Mahmood, Member of Human Rights Commission
3. Mariyam Zoona, Deputy Director at the Ministry of Youth and Sports
4. Aisha Naeem, State Attorney at the Attorney General’s Office
5. Mahmood Saleem, Assistant Public Prosecutor Grade 3 at the Prosecutor General’s Office
6. Mohamed Shifan, Deputy Chief Immigration Officer at the Department of Immigration and Emigration
7. Khadeeja Najeeha, Assistant Director at the Ministry of Foreign Affairs
8. Hassan Habeeb, Assistant Commissioner of Police
9. Mohamed Maseeh, Chief Superintendent at the Maldives Customs Service
10. Aishath Nafaa Ahmed, Assistant Director at the Ministry of Youth and Sports
11. Sheikh Hussain Rasheed Yoosuf, Inspector General of Correction Service at the Ministry of Home Affairs
12. Ali Waheed, Deputy Minister of Islamic Affairs
13. Muruthallah Moosa from the Advocating the Rights of Children (a local NGO)

A member from the People’s Majlis will also sit in this committee. As per article 62 of the Act, this committee will be responsible for overseeing the implementation of the Act, and advising the president on matters related to it’s implementation, and coordinating programs related to countering human trafficking.

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Presidential residence expenditure to increase next year

Despite President Abdulla Yameen’s decision to live in his own residence, the allocated budget for the official presidential residence “Muleeaage’” will be MVR 19.1 million next year, a MVR2 million increase from this year.

The chair of Parliament’s Budget Review Committee Gasim Ibrahim expressed the need to have the required budget allocation in case President Yameen decides to move to a state funded residence, CNM reports.

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