Tag: maldives news

MMA issues warning over counterfeit currency

The Maldives Monetary Authority (MMA) has warned the public to be vigilant over the circulation of counterfeit MVR 100 and MVR 500 notes.

The notes in question are said to be of inferior quality to the genuine currency, notably in terms of the paper on which they are printed, according to a statement (Dhivehi) issued by the financial body.

Members of the public who have acquired any suspicious notes are requested to bring them to the MMA to ensure they are authentic.

An official helpline, which can be reached by dialling 333 1793, has also been established for anyone with concerns over the counterfeit notes.

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Government halts transfer of airport operations to MIAL, pending arbitration

The government has declared that the Maldives Airports Company Limited (MACL) will continue operating Ibrahim Nasir International Airport (INIA), apparently abandoning efforts to transfer operations to the newly-created Male’ International Airport Limited (MIAL).

The President’s Office said in a brief statement today that while the government had intended MIAL to take over the airport’s operation, the decision to abandon the attempt “was was made as the termination of the contract between the government of Maldives and GMR [is] currently in the arbitration stage.”

The decision follows an increasingly fractious series of emails between MACL and Axis Bank, one of the lenders to the GMR-MAHB airport consortium which had its concession agreement to upgrade and operate the airport summarily terminated by the new administration in December 2012.

While the sudden termination of the agreement is the subject of current arbitration proceedings in Singapore, Axis Bank separately called in US$160 million worth of loans for the project which had been guaranteed by the Maldivian Finance Ministry at the time the deal was signed.

With arbitration ongoing, Axis Bank expressed concern that the creation of MIAL was an attempt to dissipate MACL’s assets ahead of a verdict and turn it into a shell company, and sought a guarantee from the government. That correspondence led to an exchange of heated letters from Singapore-based law firms representing both sides, particularly after Finance Minister Abdulla Jihad appeared to contradict earlier assurances from MACL by informing local media the transfer was expected to be completed by July 1.

MIAL’s appointed CEO Bandhu Saleem however told Minivan News at the time that “until the arbitration is complete, I think it will be very difficult to start a new company.”

Saleem is now to be appointed managing director of MACL, reported Sun Online citing a government official, with MIAL to be abolished ahead of a final decision on the matter.

Uncertainty

National political turbulence and uncertainty over the MACL-MIAL transfer in May led the global body representing the world’s airports, Airports Council International (ACI), to caution its members over the government’s potential “sale of equity in this entity to another airport operator.”

“ACI members are advised to conduct due diligence while considering any investment in the Maldives, considering the latest developments, uncertainty of outcome of elections, the legal and financial risks of the current arbitration and the nascent legal framework,” the email stated, warning potential investors that “any leadership changes arising out of the elections [could] have a material impact of the future of the Male’ airport and the decision of expropriation.”

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DRP leader Thasmeen unveiled as President Waheed’s election running mate

Leader of the government-aligned Dhivehi Rayyithunge Party (DRP) Ahmed Thasmeen Ali, has been unveiled as President Dr Mohamed Waheed’s running mate for September’s election.

Thasmeen’s appointment was confirmed by DRP Parliamentary Group Leader Dr Abdulla Mausoom, who claimed the move would allow the president to provide a viable alternative to the country’s two largest political parties.

The announcement was  welcomed by one electoral rival in the form of the DRP’s government coalition partner, the Progressive Party of Maldives (PPM), which labelled Thasmeen as “the weakest link” among all the current candidates standing in September.

The DRP last month announced that it would be joining the religious conservative Adhaalath Party and the Dhivehi Qaumee Party (DQP) in a coalition backing President Waheed and his Gaumee Ithihaad Party (GIP) in the upcoming election. The Adhaalath Party was reported in local media today as giving its full support to the partnership of President Waheed and MP Thasmeen.

Dr Mausoom said that this coalition, under the banner, ‘forward with the nation’, still remained open for other parties to join ahead of September’s vote despite today’s decision.

At present, Dr Waheed and Thasmeen will be standing against PPM presidential candidate MP Abdullah Yameen and his running mate, former Home Minister Dr Mohamed Jameel Ahmed – who was dismissed from the current government last month after announcing his decision to stand with the party.

Former President Mohamed Nasheed will also be standing for election as candidate for the opposition Maldivian Democratic Party (MDP), but has yet to unveil his running mate. Nasheed resigned from office in February 2012 under controversial circumstances following a mutiny by sections of the police and military.

Meanwhile, the government-aligned Jumhoree Party (JP) has previously said it was undecided over whether to join President Waheed’s coalition, while expecting to nominate a presidential candidate at its national conference later this month.

The JP is headed by MP and local business tycoon Gasim Ibrahim.

“Natural reaction”

Considering the rival candidates expected to stand during September’s presidential election, DRP MP Dr Mausoom said the ‘forward with the nation’ coalition has been formed as a “natural reaction” to the previous governments of former Presidents Maumoon Abdul Gayoom and Mohamed Nasheed.

“I think for people who do not see the merit in backing former Maldives Presidents Gayoom and Nasheed there is now an alternative,” he claimed, adding that both candidates would be a return to “square one” for democracy in the Maldives.

Mausoom claimed that President Waheed woukd now unite support behind a third option in Maldivian politics, that was opposed to the MDP and PPM – presently the country’s two largest political parties in terms of MP number.

He said that the coalition’s appeal as an alternative to both the Nasheed and Gayoom administrations would be its main strength.

“This is just the beginning,” Dr Mausoom added. “Thasmeen spoke today of the achievement’s of President Waheed’s government over the last year, in spite of difficult circumstances he faced.”

While both the MDP and PPM has dismissed the viability and effectiveness of coalition government in Maldives politics, Mausoom argued that the DRP had continued to back President Waheed along with several other parties in order to put national development first.

“We are at a point where we all have to climb down from party ideology and put the national interest first,” he said.

Mausoom claimed that the country’s previous coalition governments had been formed on a “circumstantial” basis, both in bringing former President Nasheed to power and then backed President Waheed. However, he claimed that parties within the ‘forward with the nation’ coalition backing President Waheed during the election were “pro-actively” united in their goal for national development.

Positive development

Speaking to Minivan News today, PPM MP Ahmed Nihan said that Thasmeen’s appointment as Dr Waheed’s running mate was not seen as a concern by the party and would actually serve as a positive development for its own election campaign.

Thasmeen took over as head of the DRP following former President Gayoom’s temporary retirement from political life in 2010.

Nihan argued that the PPM, which was founded in 2011 by a faction of MPs who broke away from the DRP alongside former President Gayoom, were “well aware of the political strength of Mr Thasmeen”.

“We are the only people who can make an informed judgement on [Thasmeen]. He is the weakest link among all the wannabe leaders at present,” he said.

Nihan said that the party would therefore carry on with it plans to begin campaigning in the north of the country ahead of September’s election.

“This is the very least of our concerns as a party,” he said.

Nihan nonetheless said that the party continued to remain concerned at what it alleged was President Waheed’s continued use of state funds and resources to support campaigning for the coalition.

“This is our one crucial concern. President Waheed needs to facilitate a free and fair election, but he has today used government speedboats to transport coalition members. This should not be seen n a democratic society,” he said. “Back in 2008, President Gayoom would have used his own party’s speedboat for campaign purposes.”

Meanwhile, MDP presidential candidate Mohamed Nasheed contended during an interview with state broadcaster Television Maldives (TVM) on May 16 that President Waheed and the DRP has been forced to form a coalition out of necessity.

Nasheed therefore questioned the president’s coalition’s claims that it presented a “third way” for voters as opposed to the policies of the MDP and PPM. Nasheed reiterated his belief that power-sharing coalitions were not compatible with the Maldives’ presidential system of government.

“I do not see a citizen who wants ‘another way.’ What is the path to deliver this way [to development]? We do not hear [political parties] talking about that,” he said. “We are presenting one path to that [development]. We believe MDP’s policies will bring prosperity to the people. I do not see this third way you referred to as ‘a way.’ I see it as two men with no other way. That is not a political philosophy,” he said.

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Parliament cancels Monday sitting as “no work to do”

Parliament’s secretariat reported that parliament had cancelled Monday’s sitting on the grounds the 77-member chamber had no work to do, reports local media.

“There is nothing to schedule today,” an official told local media, suggesting that parliament would reconvene on Tuesday.

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India offers support in training of Maldivian judiciary

The Indian government has offered to assist in training judicial officers and judges in the formation of rules and regulations, reports the Times of India.

According to the report, the offer was conveyed to Chief Justice Ahmed Faiz Hussain on Monday by the Indian External Affairs Minister Salman Khurshid.

Chief Justice Ahmed Faiz Hussain is on a five day official visit to India at the invitation of the Chief Justice of India, Altmas Kabir.

According to Indian media reports, Faiz Hussain is set to take part with the Chief Justice of India and other Supreme Court Judges which will also be attended by Indian Law Minister Kapil Sibal and External Affairs Minister Khurshid.

The reports also claimed that Hussain is expected to travel to Bhopal, to observe the functioning and operation of India’s National Judicial Academy.

The Department of Judicial Administration (DJA) had previously announced plans to set up a Judicial Training Academy in the Villimale ward of Male’, with India is expected to establish ties between the two academies.

During a dinner hosted by Khurshid in honor of Chief Justice Hussain, the Indian external affairs minister claimed India was privileged to work closely and partner the people of Maldives in their nation building efforts.

Khurshid also noted that Maldives had undertaken reforms necessary for the independent functioning of the judiciary and other organs of the state.

In her final report to the UN Human Rights Council, United Nation’s Special Rapporteur (UNSR) on Independence of Judges and lawyers Gabriela Knaul expressed “deep concern” over the failure of the judicial system to address “serious violations of human rights” during the Maldives’ 30 year dictatorship, warning of “more instability and unrest” should this continue to be neglected.

“It is indeed difficult to understand why one former President is being tried for an act he took outside of his prerogative, while another has not had to answer for any of the alleged human rights violations documented over the years,” read the report.

The report is a comprehensive overview of the state of the Maldivian judiciary and its watchdog body, the Judicial Services Commission (JSC). Knaul examines the judiciary’s handling of the trial of former President Nasheed, the controversial reappointment of unqualified judges in 2010, and the politicisation of the JSC.

Knaul also examines parliament’s failure to pass critical pieces of legislation needed for the proper functioning of the judiciary and “legal certainty”, as well as raises serious concerns about an impending budget catastrophe facing the judicial system.

“The immediate implications of the budget cuts on the judiciary are appalling. For instance, the Department of Judicial Administration only has funds to pay staff salaries until November 2013 and it had to cancel training this year,” Knaul notes.

“The Civil Court reported that it would not have sufficient funds to pay its staff salaries after October 2013; furthermore, existing budgetary resources would not be sufficient to pay for utilities and facilities after June 2013,” she added.

The government of Maldives responded to the report by issuing a statement inferring that UN Special Rapporteur had undermined the country’s sovereignty and legal jurisdiction in her report on the state of the country’s judiciary.

The government on May 28 issued a statement via its Permanent Representative at the UN Human Rights Council in Geneva, Iruthisham Adam.

“Engagement between national governments and international actors should not undermine national jurisdiction and the court system of any country, especially relating to ongoing cases,” reads the statement.

In light of this the Maldivian delegation, said Adam, “wishes to discuss specific matters contained in the report with the rapporteur.”

At the same time the statement “welcomed” the UN Rapporteur’s report and “fully acknowledge[s] that the various challenges she has identified and raised in her report are in fact the residue challenges present in a system in the midst of democratic consolidation.

The Maldives judicial system continues to be hampered by structural deficiencies and resource constraints in addressing the difficult challenges facing the country in general.”

Read the UN Special Rapporteur’s full report

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Speaker Shahid to boycott JSC meetings should Fahmy participate

Speaker of Parliament Abdulla Shahid has warned President of the Judicial Services Commission (JSC) Adam Mohamed that he would boycott the commission’s meetings should Chair of Civil Service Commission (CSC) Mohamed Fahmy Hassan continue to be a part of it.

Shahid’s warning came shortly after Attorney General Aishath Bisham conceded during a meeting with Parliament’s Executive Oversight Committee (EOC) that any JSC meetings including Fahmy would have no legal effect.

In response to a question by the committee chair, opposition Maldivian Democratic Party (MDP) MP Ali Waheed, Bisham insisted that Mohamed Fahmy Hassan would not have to be reinstated as chair of the Civil Service Commission (CSC) after the Supreme Court ruled that his removal by parliament was unconstitutional.

Fahmy was dismissed from his CSC post in November 2012 in a no-confidence vote in parliament following an inquiry by the Independent Institutions Committee into allegations of sexual harassment against a CSC employee.

Both Fahmy and the victim were summoned to the committee after the complaint was lodged in the first week of June.

Fahmy was alleged to have called the female staff member over to him, taken her hand and asked her to stand in front of him so that others in the office could not see, and caressed her stomach saying “It won’t do for a beautiful single woman like you to get fat.”

MPs voted 38-32 to approve the committee’s recommendation to remove Fahmy from the post.

The Supreme Court however ruled 6-1 in March 2013 that Fahmy would receive two punishments for the same crime if he was convicted at court following his dismissal by parliament (double jeopardy).

The Supreme court contended that the Independent Institutions Committee violated due process and principles of criminal justice procedure in dealing with the accused.

In a letter sent on Monday, Speaker of Parliament – who is by virtue of his position, a member of JSC – stressed that even though the chair of CSC is also by virtue of his position a member of JSC,  Fahmy cannot sit in JSC because he had been deposed from his position by parliament.

He added the parliament had informed President Mohamed Waheed Hassan about its decision.

“In that letter, when the parliament came to the decision [to remove Fahmy], then-Attorney General Aishath Azima Shukoor and current Attorney General Aishath Bisham stated that Mohamed Fahmy Hassan could not sit in JSC as the President of CSC as that position had become vacant with the parliament’s decision.”

“The Attorney General Aishath Bisham had also said that JSC meetings attended by Fahmy cannot be deemed legal, during the 46th committee meeting of parliament’s executive oversight committee on June 4, 2013,” Shahid wrote.

Therefore, Shahid claimed that he would not take part in any meetings attended by Fahmy.

Speaking to Minivan News on Monday JSC Media Official Hassan Zaheen confirmed receipt of the letter from Speaker Shahid but said he did not see the need for the commission discuss the matter as it was “not part of the commission’s mandate as per the law”.

Don’t put me in a trap – President Waheed

President Mohamed Waheed Hassan speaking on the issue said it was “very complicating” for him to make a decision about Fahmy.

Fahmy had previously claimed in the media that he would only take a decision on whether to continue being part of CSC  after President Waheed made a decision on the issue, claiming that it was the President who had given him the letter of appointment.

Instead of addressing the issue directly, Waheed, who appeared unwilling to address the matter during a press conference on Monday, told the media that Parliament and the Supreme Court were in dispute over the matter.

At such a complicated time, Waheed said, “Even individuals must help in resolving conflicts peacefully”.

“Always doing something that puts the President or the government in a trap is not a very good thing. I think the best thing to do at this time is let Fahmy take the initiative and decide on the matter. That is my position,” he said.

The parliament has meantime opened the opportunity for interested candidates to apply for the “vacant” position of CSC President.

Waheed however maintained that, prior to any appointments to the commission, the parliament should discuss the matter with the Supreme Court to avoid any further conflict.

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President Waheed ignored advice on GMR termination, PPM alleges

The Progressive Party of Maldives (PPM) has accused President Dr Mohamed Waheed of ignoring the advice of his coalition government by abruptly terminating the US$511 million airport development contract with Indian infrastructure group GMR last year.

PPM MP Ahmed Nihan said that while the PPM believed terminating the GMR contract had been the right decision, President Waheed had nonetheless personally taken an executive decision to cancel the agreement without listening to the party’s advice in seeking a compromise with the company and the Indian government.

However, the PPM’s coalition partners today accused the party of making “contradictory statements” regarding the decision to terminate GMR’s concession agreement, accusing its senior leadership of trying to terminate the deal at the time without discussion or following due process.

The allegations against President Waheed surfaced following the visit to India last week by former President and PPM founder, Maumoon Abdul Gayoom, who pledged his party would seek to restore relations with India damaged by the government’s summary eviction of the GMR.

While Gayoom ultimately blamed former President Mohamed Nasheed for not obtaining parliamentary approval and “consulting all political parties” before signing the deal with the GMR-Malaysian Airports consortium in 2010, he was also critical of the present administration’s handling of the termination.

“Had Nasheed consulted all political parties, the public would not have formed the impression that corruption had taken place. Then we told the next President Mr Waheed that he should hold discussions with the GMR Group and the Indian government to arrive at an acceptable solution, after which the government was free to act on its own,” he said. “Unfortunately, this was not done and suddenly there was this unhappy ending,” Gayoom was reported as saying in the Hindu.

“Better” handling

MP Nihan said following a press conference held by the PPM in Male’ today that the party continued to believe the decision to terminate GMR’s concession agreement was in the best interest of the country.

However, amidst concerns about the subsequent negative impacts on bilateral relations from cancelling the deal, he stressed that the president could have handled the matter “better” in order to protect the relationship between the Maldives and India.

“We believe that the room was there to correct any negative relations with India,” Nihan claimed.

“This could have been much easier and perhaps a new approach could have been found to cancel the GMR contract,” he added.

Nihan said that as well as the GMR contract, President Waheed had on a number of occasions sought to take advantage of his position by making executive decisions against the wishes of his government coalition, all while trying to shift blame away from himself.

“We have seen [President Waheed] try to spin all good developments as being the result of his work, while anything that has gone wrong [in the government] is the PPM’s fault,” he said.

Following a PPM press conference today, Nihan added that the media has been shown two different letters sent from the party’s council to the government prior to the termination of the agreement last November that called to find a solution through dialogue.

Nihan also reiterated Gayoom’s comments that the manner in which the contract was not a “happy ending” in terms of its impact on bilateral relations with India.

“We are of the view that the agreement was only to be cancelled through due process of the law,” he said.

Nihan claimed that the contract dispute had also further exacerbated concerns held by the Indian government about treatment of Indian nationals in the country. He said this had in turn created difficulties for Maldivians in obtaining visas to travel to India for medical treatment.

Considering former President Gayoom’s 30 years spent in office, Nihan praised his efforts to try and strengthen bilateral relations with India.

The government’s sudden eviction of the Indian investor did not appear on a list of 11 grievances handed to all senior Maldivian reporters by the Indian High Commission in January.  The list instead included concerns such as discrimination against Indian expatriates and the confiscation of passports by Maldivian employers.

Tension

The argument over responsibility for the GMR contract termination has comes amidst reports of increased tension within the present coalition government, with PPM presidential candidate Abdullah Yameen last month criticising President Waheed over his alleged use of state funds for campaigning.

The PPM has nonetheless pledged to continue supporting President Waheed’s government up until September’s election, despite concerns about the decision to dismiss former Home Minister Dr Mohamed Jameel Ahmed after he decided to stand as MP Yameen’s running mate.

DRP response

The PPM’s recent criticism of President Waheed’s handling of the GMR dispute was today slammed as being “contradictory” by government coalition partner the Dhivehi Rayyithunge Party (DRP).

The party added that its members had previously come under heavy criticism from the PPM for advocating at the time that any termination of the GMR airport deal should be made via the due process of the law.

DRP Parliamentary Group Leader Dr Abdulla Mausoom told Minivan News that it was in fact senior figures in the PPM that were  among the most vocal supporters for terminating the GMR agreement.

“It is ironic that we are hearing these statements from the PPM, whose leader has been witnessed supporting rallies demanding the cancellation of the [GMR] agreement,” he said.

Dr Mausoom alleged that he had also been informed from “a reliable political source” present during government consultations last year over whether to terminate the GMR agreement that it had been PPM presidential candidate Yameen who personally advocated cancelling the deal without a need for discussion.

“Either there is no harmony within the [PPM], or this is all political talk to try and gain an advantage. Either was it is very irresponsible,” he said of the PPM’s recent comments about terminating the GMR concession agreement.

Mausoom alleged that contrary to the PPM’s claims, it had been the DRP which had advocated finding a legal means of terminating the GMR agreement at at time when fellow government-aligned parties had taken to the streets holding rallies demanding the airport be “reclaimed”.

Despite appeals by GMR that it was acting as a caretaker for running and improving Ibrahim Nasir International Airport (INIA), which would remain Maldivian-owned, efforts to cancel the concession agreement – which was vetted by the World Bank’s International Finance Corporation (IFC) – intensified up to November.

On November 13, just ahead of the contract termination, a seaborne armada of about 15 dhonis carrying flags and banners circled the airport seeking to increase pressure on the government to “reclaim” the site from GMR.

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Cancelled agreement to develop IGMH cost US$150,000, reveals audit

The termination of an agreement between the Ministry of Health and Family with Indian company Apollo Hospitals Enterprises to manage and develop the Indira Gandhi Memorial Hospital (IGMH) cost the government US$150,000, the Ministry of Finance and Treasury’s audit report for 2010 has revealed.

The audit report (Dhivehi) made public on Thursday (June 6) flagged an advance payment of US$ 150,000 from the finance ministry’s special budget to Apollo Hospitals as 20 percent of a transition management fee under the “management and development agreement” (MDA) signed on January 23, 2010.

Auditor General Niyaz Ibrahim contended that the payment was made by the finance ministry in violation of budgetary rules and accounting principles, adding that expenses of another office or institution should not be included in the finance ministry’s financial statement.

Moreover, the privatisation of the government hospital was not overseen by the privatisation committee as stipulated in public finance regulations amended in late 2009, the audit report noted.

The secretariat of the privatisation committee, which functioned under the Ministry of Economic Development, informed auditors that interested parties were invited to submit detailed proposals for developing IGMH in a public-private partnership deal in January 2009.

However, none of the detailed bids met the criteria set by the health ministry and the privatisation project was scrapped.

Following a visit by then-President Mohamed Nasheed to India, Health Minister Dr Aminath Jameel told the press on January 25, 2010 that Apollo was awarded the project because none of the bidders fit the criteria.

Apollo was chosen following consultation with the Indian government and based on legal advice, she added.

However, in August 2010, the Male’ Health Services Corporation – which operated IGMH – advised the health ministry against proceeding with the privatisation deal as Apollo’s proposal was not financially feasible for the government-owned health corporation.

On September 30, 2010, the health ministry informed Apollo that the government has decided to scrap the project since the necessary financial capital had not been arranged.

The audit report also noted that a transition management agreement and an operation management agreement that was required under the MDA was not signed in the stipulated 180-day period.

“Therefore, the US$ 150,000 paid to Apollo Hospitals under the MoU [Memorandum of Understanding] signed with IGMH in 2010 was a waste of funds with no benefit to the state,” the audit report stated.

It added that the loss was incurred as a result of “inadequate planning” before hastily signing the MoU without obtaining legal advice, considering the financial burden on the state and determining a source of capital.

The Auditor General recommended asking the Anti-Corruption Commission (ACC) to determine whether any state official abused their authority in awarding the project to Apollo Hospitals without a bidding process.

Other cases

Among eight other cases highlighted in the report where expenses were made ostensibly in violation of public finance law, the audit revealed that in 2007 the government incurred a loss of MVR 30.8 million (US$1.9 million) after paying for 150,000 copies of the Quran Dhivehi translation with numerous errors.

The audit report noted that the project was awarded to Novelty Printers without a bidding process through the tender evaluation board.

Moreover, an advance payment of 85 percent of the contracted amount was made to Novelty Printers in violation of existing regulations, the audit discovered.

In June 2010, the Fiqh Academy decided to destroy the copies printed in 2007 as the errors could not be easily corrected. The decision was made following a year-long review by scholars of the academy.

The audit discovered that the errors in the final version were not present in the proofed copy approved by the President’s Office in 2007 – during the final years of former President Maumoon Abdul Gayoom’s reign – suggesting that Novelty was responsible for the errors.

Novelty Printers wrote to the President’s Office in November 2008 apologising for the printing errors, which they explained occurred due to a problem in the computer file used to make the printing plates.

The audit also discovered that Novelty was paid the remaining 15 percent of the contracted amount in May 2010 after a state minister at the finance ministry approved the payment.

The state minister sent a memo to the budget section falsely claiming that the government had received all 150,000 copies, the audit report noted.

The Auditor General recommended that the ACC should investigate the culpable official for alleged corruption and that the state should either recover the MVR 30 million paid to Novelty or demand 150,000 copies without errors.

The audit report also noted that the government was ordered by the Civil Court in January 2010 to pay US$119,616 as compensation for a former deputy general manager of the Maldives National Shipping Line (MNSL) for unlawful termination in 2002.

The Auditor General recommended legal action against the government officials responsible for incurring the financial loss by unlawfully sacking the MNSL deputy manager in 2002.

The audit further revealed that in 2009 and 2010 the finance ministry paid US$ 4 million to two American companies under a “settlement agreement” while arbitration proceedings were ongoing in Singapore.

In 2006, a consortium formed by the International Medical Group and Sirius International Insurance Corporation was awarded a contract to provide health insurance for government employees.

The companies sought arbitration in Singapore following a contract dispute with the now-defunct Ministry of Higher Education, Employment and Social Security. However, the US$4 million settlement was reached out of arbitration in May 2009 by the new government that took office in November 2008.

The settlement was paid out of the finance ministry’s special budget in 2009 and 2010.

The Auditor General recommended “a thorough investigation” to recover the financial loss incurred by the government as a result of the contract.

The audit report also contended that the finance ministry had not undertaken “adequate efforts” to recover MVR 51.4 million (US$3.3 million) owed to the government as loan repayments as of December 2010.

The loans worth a total of MVR 69.4 million (US$4.5 million) were provided to select individuals by the President’s Office from 1992 to 2006 under special privileges afforded to then-President Gayoom.

The loans were given with a six percent interest rate to be paid back within two to five years, the report found, noting that the repayment period would have lapsed in 2011 for the most recent loans.

However, in a letter sent to the finance ministry on November 6, 2008 – five days before Gayoom left office – the repayment period was extended to five years.

As the loans were given to senior officials of the outgoing government, the audit report contended that the decision to extend the repayment period amounted to corruption.

The Auditor General therefore asked for an investigation by the ACC into the extension and recommended that the finance ministry file court cases to recover the unpaid amounts.

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Health Trust Fund fundraising events raise over MVR 5.5 million (US$357,142)

Following a week of fundraising events the Health Ministry has raised over 5.5 million MVR (US$357,142) for the Health Trust Fund established in late April, falling short of the MVR 270 million (US$ 17,532,450) needed for health sector services.

The Health Trust Fund was established 20 November 2012 under Ministry of Finance and Treasury regulations and inaugurated on April 29, 2013.

The only way the Health Trust Fund can be maintained is through donations of sufficient assets and in this regard government and private sector contributions are very important, Minister of Health Dr Ahmed Jamsheed recently told local media.

He explained that the health sector requires an additional MVR 270 million (US$ 17,532,450), which requires public contributions and cooperation.

Previously health sector services were “covered by the people”, however following the start of the Aasandha universal health insurance scheme on 1 January 2012 the government of Maldives needed a “huge amount of finance” to cover expenses, said Jamsheed.

Therefore, the Health Ministry organised a series of fundraising events to “commence activities to raise funds, not to gather all the funds need to cover all health sector services,” he added.

“We want health services to be sustainable by putting an end to service disruptions due to machinery breakdowns as well as provide a systematic way for people to give in-kind donations,” Health Ministry Director and fundraising media team member Thasleema Usman told Minivan News yesterday (June 8).

“There has always been a budget shortfall at the Health Ministry, there has never been enough money,” Usman said.

“We wanted to try and do something for the Maldivian people, additionally there are also people who want to contribute [to the fund] for the benefit of the public,” she added.

Usman explained that the various fundraising events were organised as a start for the trust fund and to raise awareness among the public.

“We didn’t want this to be a ‘once off’ thing,” she said.

“Although the total amount of funds raised are still being tallied, as of this afternoon (June 9), the total reported was MVR 5.5 million (US$357,142), with over MVR 2 million (USD$129,870) in cash donations and more than MVR 3 million (US$194,805) from in kind contributions,” Maldives Food and Drug Authority (MFDA) Senior Scientific Officer and fundraising media team member Mariyam Shabeena told Minivan News today (June 9).

Budgetary needs

The health sector budgeted MVR 2.2 billion (US$142,857,000) for 2013, however around MVR 1.1 billion  US$71,428,500) or 50 percent of the total budget is allocated for the National Social Protection Agency (NSPA), according to Usman.

She said that over MVR 5 million is needed for social safety net subsidy programs, such as single parent’s allowance, foster parent’s allowance, disability registration and benefit and electricity subsidies, which fall under NSPA.

NSPA is also responsible for managing the national social health insurance scheme, a public-private partnership with Allied Insurance.

“Aasandha requires 1.13 billion MVR (US$73,376,550) to provide actual health care,” Usman said.

“An additional MVR 500 million (US$32,467,500) is required for Indira Gandhi Memorial Hospital (IGMH) operations and the Health Ministry budget also includes institutions, such as the Maldives Food and Drug Authority (MFDA), National Drug Agency (NDA), etc,” she continued.

Usman explained that the health trust fund will be transparent, with legal mechanisms to manage the money.

“The Health Ministry can only have a sustainable trust fund if funds are raised legally, by abiding with Finance Ministry regulations,” she said.

“The fund has a very well written policy that explains how the money will be used and what has been used,” Usman continued.

“A nine member committee chaired by the Health Minister will oversee the fund, which has a grading system to determine where funds are need most.”

Members of the public making contributions can earmark their donations for a particular island or association, but the trust fund committee needs to know what is being earmarked so contributions are not wasted, Usman added.

Events

“We have received a lot of support from the media, they have been a very, very big help,” said Usman.

A one hour telethon pre-show was broadcast nationwide from June 1 – 7 on four TV stations – MBC, VTV, DhiTV, Raajje TV – and three radio stations – MBC, VTV, DhiFM to raise awareness about the fundraising events.

“The broadcast reports showed where we are, the assistance required, and the grand realities of how the Health Ministry spends their budget,” Usman explained.

The actual telethon was held Saturday ( June 8 ) from 6:00am to midnight. It was kicked off with a sponsored walk along one of Male’s main thoroughfares.

Additionally, two charity football matches were held in Male’s National Stadium Friday (June 7), with Maldivian media presenters facing off against film stars.

The film star women’s team was victorious, winning 4 – 0 , while the men’s media team won 3-0 after dominating overtime penalty kicks.

Proceeds from ticket sales and t-shirt purchases also contributed to the Health Ministry fund.

Furthermore, a Children’s Evening fundraising event was also held at Male’s Children’s Park (Kudakudinge Bageecha).

Donation boxes were also placed at ferry terminals in Male’, as well as IGMH, regional and atoll hospitals.

“Ultimately these events were very successful because we were able to raise so much money,” said Usman.

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