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Former state ministers deny allegations in Home Ministry’s audit report

Two former state ministers for home affairs have denied allegations in the ministry’s audit report for 2010 that they were paid salaries for a year without attending the office, with one accusing the Auditor General of political bias.

The audit report released last week stated that the two political appointees were paid salaries and benefits, amounting to over MVR800,000 (US$51,880) from January to December 2010, while one was working at the Presidential Commission and the other at the Maldives Customs Service.

The two political appointees referred to in the report were Sheikh Hussein Rasheed Ahmed, a member of the Presidential Commission, and Mohamed Aswan, former principal collector of customs.

The report found that Aswan was paid January’s salary from both institutions.

“Although the two posts were created for the Ministry of Home Affairs, as the ministry did not receive any service from the two appointees, this office believes that the President’s Office’s creation of the two posts cannot be considered for the need of the ministry,” the report stated.

The audit report contended that the two appointees were paid salaries out of the Home Ministry’s budget in violation of budgetary rules, which had compromised the validity of the ministry’s financial statement.

Mohamed Aswan, presently commissioner general of customs, however issued a press statement on Thursday denying that he was paid salaries from both the Maldives Customs Service and Home Ministry in 2010.

Aswan explained that he was paid January’s salary from both offices due to “an administrative error” caused due to a delay in exchanging official documentation confirming the transfer.

He added that errors in processing salaries and benefits of government employees were commonplace and, once identified, were usually remedied with the necessary changes the following month.

Aswan also noted that the administrative task of paying salaries and benefits for political appointees was a responsibility of the permanent secretary, the highest-ranking civil servant in government offices.

In 2010, Aswan’s press release stated, he was simultaneously working in three government posts but received salaries and benefits only from the Home Ministry, which he did not believe was “against the law.”

In addition to acting head of customs at the time, Aswan was also a member of the Presidential Commission set up by former President Mohamed Nasheed to investigate allegations of embezzlement and misappropriation of state funds by the regime of former President Maumoon Abdul Gayoom.

Aswan was appointed state minister for home affairs in January 2010 to reform the police service following cabinet deliberations.

As a former National Security Service lieutenant, Aswan was the deputy in charge of Maafushi jail when 19-year old inmate Evan Naseem was beaten to death and several inmates shot to death in a subsequent prison riot in September 2003.

In July 2003, Aswan had filed a detailed report on systematic abuse and institutionalised torture in Maafushi jail, warning of “disastrous consequences” if corrective measures were not taken immediately.

“Political bias”

Writing in his personal website, Sheikh Hussein Rasheed Ahmed, former co-chair of the Presidential Commission, meanwhile slammed Auditor General Niyaz Ibrahim for “attempting to discredit the government toppled in a coup d’etat.”

The former president of the Adhaalath Party explained that he was appointed state minister to oversee and expedite investigations into rampant corruption alleged in over 30 audit reports by former Auditor General Ibrahim Naeem as “the relevant authorities were not adequately looking into the cases.”

Rasheed insisted that both he and Aswan attended the home ministry to carry out the tasks they were entrusted with by the President.

“The Presidential Commission was tied to the President’s Office and the Home Ministry,” he wrote. “When the commission completed the investigation stages, we were submitting reports to the President and relevant departments under the Home Ministry. In addition to the President’s Office, we also provided information to the Anti-Corruption Commission.”

Arguing that the current Auditor General made no effort to ascertain the work done by the pair at the Home Ministry, Rasheed accused Niyaz of “working in your own defence” and “trying to please the current government which is in place through a coup d’etat.”

Rasheed said that he sent his monthly attendance records to the President’s Office and kept the Home Minister informed of his work. Moreover, the permanent secretary was notified ahead of official leaves, Rasheed said, adding that “the Auditor General made no effort to obtain any of this information.”

“Are you unwilling to release an audit report on the double pension President Maumoon is taking illegally out of fear over a no-confidence motion [in parliament]?” Rasheed asked.

Rasheed further claimed that Niyaz attempted to intervene in the Presidential Commission’s investigation of the alleged US$800 million illegal oil trade carried out under the chairmanship of MP Abdulla Yameen at the State Trading Organisation (STO).

“Did you not try to get the documents [related to the case] first from the Anti-Corruption Commission?” Rasheed wrote. “When the Presidential Commission refused to provide you with the information, you even visited STO Singapore.”

Following these unsuccessful attempts, Rasheed alleged that Auditor General Niyaz tried to obtain the documents through an audit of the President’s Office and the Presidential Commission, suggesting that the section in the Home Ministry’s audit report concerning his salary was “retaliation” by the Auditor General.

The audit report of the Ministry of Foreign Affairs for 2010 made public in July was similarly slammed by former Foreign Minister Dr Ahmed Shaheed as “politically motivated and phrased to mislead the public.”

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State failing to prove ‘Usfasgandu’ lease terms violated: Mayor ‘Maizan’ Ali Manik

Male’ City Council (MCC) Mayor ‘Maizan’ Ali Manik has maintained the state has failed to provide clear examples of any laws or regulations violated in the leasing of the ‘Usfasgandu’ protest area to the Maldivian Democratic Party (MDP).

Manik told Minivan News that the state’s allegations, presently the basis for a Civil Court case against the MDP-majority MCC, were politically motivated and had failed to take into account the site was being used by the wider public regardless of politics.

“We have not broken any rules or regulations on this matter,” he said. “Even if somebody takes this area away, people will instead take to the streets to have their voice heard.”

The mayor’s comments were made following the latest hearing on Tuesday (August 14) of a Civil-Court cased filed by the state against the MCC to hand over the ‘Usfasgandu’ area. The case concerns allegations that the municipal authority had acted illegally in leasing the protest site.

Local media reported that the state had responded in the Civil Court by claiming the city council was in violation of both articles five and six of the agreement to lease the land – charges documents submitted along with the case were said to prove.

The state also alleged that the MMC was deliberately attempting to delay the ongoing case by claiming the charges “were not clear”, according to newspaper Haveeru.

Addressing the case, Mayor Manik claimed that no specifics had been given by the state as to where the council had violated its agreement in providing the land.

The case was reportedly adjourned Tuesday in order to provide the state time to respond to the MCC’s allegations. Manik claimed that a date for the next hearing of the case had not yet been set.

Minister of Housing Dr Mohamed Muiz was not responding to inquiries from Minivan News today regarding the case. President’s Office Spokesperson Abbas Adil Riza and Media Secretary Masood Imad were also not responding to calls at the time of press.

Legal wrangling

The case is the latest development in ongoing legal wrangling between the MCC and the Ministry of Housing over the Usfasgandfu site.

Earlier this month, the Civil Court ruled that the Maldives Police Service does not have legal authority to order the MDP to vacate its ‘Usfasgandu’ protest camp on May 29.

The court noted the same day that the a wider dispute between the MCC and Housing ministry over guardianship of the Usfasgandu area could only be settled once the Civil Court reached a verdict on the case being heard this week, which was filed by the ministry requesting the MCC be ordered to hand over the plot.

On May 29, police raided Usfasgandu with a search warrant from the Criminal Court and ordered the MDP to vacate the area before 10pm, after which the Maldives National Defence Force (MNDF) began dismantling the protest camp.

The Civil Court however issued an injunction ordering the security forces to halt the dismantling after the MDP challenged the legality of the operation. The injunction was to stand until the court reached a verdict and was later upheld by the High Court.

Police had obtained a warrant to search Usfasgandu on the grounds that the MDP was using the area as a hub for criminal activity and black magic.

MDP lawyers however argued at court that the warrant did not provide a legal basis to dismantle the demonstration area.

Following the dismantling of the MDP’s protest camp at the tsunami memorial area on March 19, the Male’ City Council (MCC) leased the Usfasgandu area to the former ruling party for three months, prompting repeated attempts by the government to reclaim the area.

The MCC – which has nine MDP councillors and two government-aligned Dhivehi Rayyithunge Party (DRP) councillors – however refused to hand over the area to the Housing Ministry despite a cabinet decision authorising the Housing Ministry to reclaim the plot.

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“The quality of services delivered by the judiciary remains disappointingly gloomy”: Home Minister

“Our judiciary has some bright minds, but that does not exempt it from scrutiny; judiciary in the Maldives, with the exception of few courts and judges, the judiciary as a whole has earned a deservedly bad reputation for its inconsistent judgments, lack of leadership, lack of competency and being out of touch with modern laws and views of the society.”

So says Dr Mohamed Jameel Ahmed, the current Minister of Home Affairs, writing in Haveeru today.

“Holders of the judiciary were given security of tenure through the appointment of Magistrates and judges by an independent commission. Supreme Court justices recommended by Judicial Service Commission and nominated by the President were appointed by the Parliament.

Holders of the office of the judiciary were further secured with the provision that they could only be removed by a two third vote of the Parliament. The legislatures pinned their hopes of establishing an independent judiciary.

It was the desire of the nation to see not only an independent judiciary but also competent professionals leading it, and who are able to fulfill the expectation of a nation on the verge of embracing new found democracy, and whose inhabitants have over the years acquired knowledge and skills in various professions.”

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Utility companies owe us MVR 350 million: STO

The State Trading Organisation (STO) stated Thursday that the utility companies are close to MVR 350 million in debt to the state-owned company through the purchase of fuel using credit, reports local media.

In a press conference held in Velaanaage, Managing Director of STO Shahid Ali said that obtaining payments from the utility companies was a continuously problematic issue, but that he had observed it to be more difficult after December 2011.

Shahid also said that since the government held shares in STO, it required similar concessions as other government-owned companies.

Shahid said they are now undertaking discussions with relevant government authorities and the utility companies to settle the outstanding payments.

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Government’s proposed revenue raising measures excessive, warn resort managers

Several resort managers have voiced concern that revenue raising measures proposed by the Finance Ministry will affect the financial viability of the tourism industry while providing little improvement in service or support in return.

The proposed measures were part of an ‘austerity’ package sent to parliament’s Finance Committee last week in a bid to address the country’s crippled financial condition.

Increased government spending – such as the repayment of civil service salaries cut during the former administration, and promotions and lump sum payments to the police and military – has not been offset by additional income.

As a result, the government has sought a succession of loans this year to pay its expenses at a time it is facing political challenges to its legitimacy, and country is facing plummeting investor confidence, a drop-off in foreign aid, an ongoing foreign currency crisis, and the challenges of its 2011 graduation to the UN’s definition of ‘middle income’.

As well as a raft of austerity measures, including the cancellation of electricity subsidies for citizens in Male’ and “reform” of the universal healthcare scheme, proposed revenue raising measures include plans to:

Raise import duty on oil to 3 percent
Impose import duty on items whose value exceeds MVR6.4 million
Raise import duties for liquor
Introduce GST for telecom services and sale of flats (both are now GST-exempt)
Raise GST rate for luxury items
Raise T-GST to 15 percent
Raise airport service charge for foreigners to $30
Increase visa fee for foreigners by MVR150

Minivan News spoke to several resort managers about the potential impact of such measures on the tourism industry. Of particular concern was the proposed increase in Tourism GST from 6 percent to 15 percent.

“That would be the biggest hit along with the liquor duty,” observed one manager.

“With the standard 10 percent service charge we’d be talking 25 percent on top. That’s too much,” he said.

Furthermore, a sudden increase in T-GST would force resorts to absorb the increase, due to contractual obligations.

“If such an announcement came after [the] contracts are signed, many operators would be forced to absorb the additional percent again,” the manager observed.

“Higher duty on liquor would be the most directly felt increase in guests’ daily extras. Our sales would take a hit,” he added.

An increase in already high oil prices due to government import duty would further increase prices.

“Oil has become more and more expensive since oil was first used. Another rise in prices would be just another rise, which, in the case of oil, would come anyway. Of course extra costs will eventually be passed on also from suppliers and will at one point always end up on the client’s bill. How much more of such a hike our clients will take, I couldn’t say. Already now the low- and mid-priced market segments are moaning,” he said.

The increase in airport charges to US$30 for foreigners would also increase the overall cost of the destination for potential visitors.

“Many other places charge one as well and I guess it has come to be accepted. If this is then garnished with higher visa fees, taxes of 25 percent, an eco-tax, bed-tax and the whole lot, it might quickly get too much though,” the manager warned.

Another resort manager told Minivan News that given the country’s almost total reliance on tourism, the government “needs to see itself as a tourism body as much as a government of a nation.”

“Tourism bodies in a general have five key responsibilities in order to increase the economic benefit of tourism for a nation,” he said: “Attract guests to the destination, have them stay as long as possible, have them invest back as much as possible into the local economy, have them recommend the destination to their friends and/or return themselves, and encourage balanced tourism development.”

The Finance Ministry’s proposed revenue raising measures “have negative implications for all five points of any basic tourism body plan,” he observed.

“As seen in the past 2-3 years, most countries have based their austerity strategies on reduced government expenditure and encouraging increases in revenue growth. This has been completed by efficiency plans for civil servants and key strategies to increase revenue,” the manager noted.

“In its actions over the last five months, the Maldives’ government has increased civil servants’ salaries, increased other costs, and are now looking at taking action that will compromise their main revenue stream. This is very different to other countries with similar financial challenges,” he stated.

“Whilst I understand that there is a need for a major revision on the Maldives economy, I would hope that cost reduction measures are implemented within the government that will balance the need for increased taxes on Maldives’ tourists. Areas of increased taxation such as oil and customs duty would be more acceptable psychologically for the tourism economy rather than an increase in direct tourists taxes and charges,” the manager added.

According to a survey conducted by the Tourism Ministry in 2011, 46 percent of tourists to the Maldives believed that the accommodation was too expensive.

Soft drinks, alcohol were also rated expensive by 42 percent, while food, water and souvenirs received a similar ranking from 41 percent of tourists polled.

Tourism Minister Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal were not responding at time of press.

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High Court orders reinstatement of Police Chief Inspector Risheef Thoha

The High Court has overruled a decision made by the Civil Court regarding a suit filed against Police Chief Inspector Risheef Thoha, after he was dismissed by the Police Disciplinary Board over allegations that he raped a woman in a police car.

The court ordered that Chief Inspector Thoha be reinstated.

In August last year, a woman filed a case at police headquarters alleging she was sexually abused by a group of police officers, including the chief inspector.

In December 2010 Thoha appealed the decision of the Disciplinary Board at the Civil Court, which ruled that the Board’s decision was lawful and that there was enough evidence to dismiss Thoha from police duty.

The Civil Court noted at the time that Thoha’s call records showed he had contacted the other accused officers several times, and that the officers had also contacted him.

When the locations of the phones were determined, they showed that the car had travelled the routes the woman had said, the Civil Court’s ruling stated.

The ruling also said that the girl was thrown out of the car naked near Thoha ‘s house, Mainz in Maafannu, and that Thoha had admitted to being in the area a few minutes later.

However the High Court today ruled that Thoha be reinstated at the position of Chief Inspector of Police, and paid the salary he had not received during the time he was dismissed.

In August 2011 a close friend of the alleged victim told Minivan News the incident had occurred near Seahouse restaurant in Henveiru.

“She would not be older than 22 years, she was friends with the police inspector,’’ the source said. “According to what she told me, she was partying with a group of four police officers, including a senior inspector, and they were all drunk.’’

He alleged that the incident occurred inside a police car.

“She said they threw her onto the street after sexually abusing her,’’ the source added.

Former ‘Mr Maldives’ Police Constable Husham Hameed was also dismissed after being accused of the same crime, but in April last year the Civil Court ruled that his position also be reinstated.

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Nasheed reneging on commitment to respect CNI: Dunya

State Minister of Foreign Affairs Dunya Maumoon has accused former President Mohamed Nasheed and his Maldivian Democratic Party (MDP) of “threats and intimidation tactics” over the outcome of the CNI report, due at the end of August.

“The Government of Maldives is committed to the resolution of political differences through peaceful dialogue and the democratic boulevard [sic] and institutions available in the country,” Dunya said in the statement.

However Nasheed “is going back on his own words and commitment to the international community that he would respect the outcome of the CoNI.”

Former President was speaking during an event commemorating ‘Black Friday’, the brutal crackdown on pro-democracy activists by the former regime in 2004.

Dunya expressed concern at Nasheed’s apparent determination to bring members of the police and military to justice for their illegal roles in the transfer of power, no matter the final verdict of the inquiry commission.

“President Nasheed had threatened violence on the streets of Male’ in order to ensure justice,” said Dunya during the press conference, the details of which have been distributed by the Foreign Ministry as a media release.

A translation for Minivan News of the pertinent section of Nasheed’s Monday speech is as follows:

“I am certain beyond doubt that the commission’s report would note that many officers of the security forces committed a number of unlawful acts. Our demand, our protest, our request will be for these [officers] to be brought to justice. Our work will be to bring them to face justice. We should only go back home after CoNI’s report after bringing them to justice and establishing justice in this country. For a certainty, I definitely will not go back home otherwise.”

Nasheed’s intentions were clarified the following day in a proposal submitted to the government by the MDP . The document mapped out the steps the party expected to see taken following the CNI’s conclusion.

This proposal stated the MDP’s willingness to cease its calls for early presidential elections and wait for the constitutionally mandated polls in 2013 should the final report show no evidence of any unlawful activity in the transfer of power.

However, should the report find that the transfer included illegal acts on the part of any individual, the MDP proposed that those implicated be brought to trial and that all parties agree to early elections.

In the event that the CNI rules the departure of Nasheed from the President’s Office to have been unconstitutional, the MDP proposed that his government be fully reinstated.

The party had hoped for a response from the government before the end of Ramadan this weekend and appeared to receive it today when President’s Office spokesman Abbas Adil Riza told local media today that the government would not discuss the report’s outcome before its release.

“CNI’s report will not act as a final verdict. The purpose of the report is to assist the relevant institutions. So, there’s no need to make the report a ‘political carnival’,” Riza reportedly told Sun Online.

At its meeting on Tuesday, the MDP’s executive council had agreed to call a meeting of its National Council in order to determine the party’s next course of action.

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Gayoom’s half-brother acquitted of three-year old corruption charges

The Criminal Court on Thursday morning acquitted Abdulla Algeen Abdul Gayoom, half-brother of former President Maumoon Abdul Gayoom, of corruption charges more than three years after the trial began.

Algeen, younger brother of MP Abdulla Yameen, was accused of embezzling US$177,460 of Japanese funding from the Department of Meteorology (DOM), where he was the Director.

Algeen allegedly sent three separate invoices to the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) between May 2006 and April 2007 on behalf of DOM.

All three invoices demanded payment to Algeen’s personal Bank of Maldives account.

In the verdict (Dhivehi) acquitting Algeen today, Judge Abdulla Didi ruled that the state could not prove that the money in question was owed by JAMSTEC to the government.

History

The first hearing of the corruption case was held on June 9, 2009 with Chief Judge Abdulla Mohamed presiding. The second hearing took place over a year later on July 1, 2010.

Newspaper Haveeru reported on March 4 this year that the case was further delayed after the presiding judge was changed for a third time.

After the case changed hands from Judge Abdulla Mohamed to Judge Zubair Mohamed, it ended up with Judge Abdulla Didi, who held his first hearing of the case on March 4.

The local daily reported the judge as saying that although the trial had been completed and witnesses heard, he wished to hear the case again as there were certain points to clear up.

Prior to Judge Didi restarting the case, the last hearing was held on October 19, 2011 where the trial was concluded with closing statements.

Concluding the new hearings on April 11, 2012, Judge Didi had said he would issue a verdict in two weeks.

The case against Algeen

In August 2007, Minivan News reported leaked documents showing JAMSTEC was funding a two year DOM research project into the oceanography and meteorology of the Indian Ocean.

In a Memorandum of Understanding signed in early May 2006, JAMSTEC agreed to meet “all expenses incurred in connection” with the project.

Later that month an agreement was signed requiring JAMSTEC to transfer $92,000 dollars to the DOM. In April 2007, the agreement was renewed for a year, with a payment of $70,000 required.

Both the 2006 and 2007 agreements require JAMSTEC to transfer money to a “bank account… designated by DOM.”

Algeen was the sole signatory on behalf of DOM for both agreements.

He issued the $92,000 dollar invoice on May 22, three days after signing the 2006 agreement, and the $70,000 dollar invoice on April 8, 2007, the same day he signed the 2007 agreement. A third invoice for a balance amount of $13,248.34 was issued on 22 December, 2006.

All three invoices were issued on DOM letterheads and the two most recent had Government of Maldives stamps. The bank account quoted was Algeen’s personal one.

“Wiping the slate clean”

Following the controversial transfer of power on February 7, the Criminal Court dismissed corruption charges against Deputy Speaker of Parliament Ahmed Nazim and Eydhafushi MP Ahmed ‘Redwave’ Saleem.

On February 20, the Criminal Court ruled that Nazim could not be prosecuted on charges of defrauding the now-defunct Ministry of Atolls Development, in the purchase of 220 harbour lights worth MVR1.95 million (US$126,000) in 2004.

Nazim, leader of the People Alliance (PA), along with MP Ahmed ‘Redwave’ Saleem (then-finance director at the ministry) and Abdullah Hameed, former Atolls Minister and half brother of Gayoom were charged in late 2009 on multiple counts of conspiracy to defraud the Atolls Ministry.

Eight days after Nazim’s case was dismissed, the Criminal Court acquitted MP Saleem – now a member of former President Gayoom’s Progressive Party of Maldives (PPM) – of involvement in the scam.

Following the verdict, the formerly ruling Maldivian Democratic Party (MDP) accused President Mohamed Waheed Hassan Manik of being controlled by supporters of former President Gayoom, who were “intent on purging the People’s Majlis of MDP MPs and MDP-leaning MPs in order to secure a controlling majority.”

“Recent days have seen cases against three MDP-supporting MPs fast-tracked in order to disqualify them from parliament while serious corruption charges have been dropped for opposition leaning MPs,” the party said in a statement, noting that MP Saleem’s case had been “unreasonably delayed in the court process since 2009.”

On February 20, the Supreme Court in a 4-3 ruling disqualified MDP MP for Thimarafushi constituency, Mohamed Musthafa over a decreed debt and stripped him of his seat.

“While in government, MDP consistently maintained that key parts of the judiciary are in the hands of the supporters of former President Gayoom. Now we are seeing the truth of that claim. Dr Waheed regime is using the courts to settle old scores, to reduce MDP’s parliamentary majority and to wipe the slate clean for government supporters,” MDP spokesperson Hamid Abdul Ghafoor said at the time.

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Surfing association attacks MNDF resort proposal over fears for local access: “Like England selling off Wembley Stadium”

The Maldives Surfing Association (MSA) has hit out at a proposed resort development on a Maldives National Defense Force (MNDF) training island, claiming it will substantially reduce local access to an already limited number of high-profile waves in the country.

Ahmed Rifaee, a member of the MSA’s Steering Committee, claimed that while Maldivians were largely unaware of the significance of the waters around the island of Thanburudhoo to the country’s sporting heritage, the proposed resort development threatened to leave local people with access to just two world-class surf points.

Rifaee said that tourism laws presently prohibit non-guests from using prominent surf points based at the country’s resorts – legislation that threatens the future development of a sport he noted had gained the Maldives its greatest athletic successes and recognition internationally.

The resort proposal, first discussed under the previous government as part of plans to fund a state-of-the-art military training complex, was forwarded to the Anti-Corruption Commission (ACC) this week to determine the legality of an island set aside for the military being leased for commercial purposes.

However, the private group linked to the development, Telos Investment, told Minivan News that a “robust development plan” was being put in place for local surfers, adding that discussions were already under way with surf authorities – including the MSA – over the issue.

Earlier this week, the MNDF confirmed to Minivan News that it would be leasing Thanburudhoo to a third-party that would develop the site as a surf resort. The island is currently used by officers for training and recreational purposes.

The country’s military authorities this month registered the MNDF Welfare Company in a bid to generate income to fund welfare services for the armed forces by investing in various businesses, including the tourism sector.

With an ACC investigation set to be tabled in the coming days, the development proposal was slammed by Rifaee, who claimed that the waters around the island were a unique experience for local and international surfers alike. He added that the waters housed two world class waves that had been used for generations to allow local surfers to hone their skills – no matter their levels of experience.

“We have been surfing these waves for a long time, they are one of the best training grounds for local surfers,” Rifaee said. “Outside the local community, it is little known by the wider Maldivian people about what a loss this would be to the country. I would say it was equivalent in England to selling off Wembley stadium to a foreign company.”

Former government proposal

In a proposal said to have been discussed last year between the government of former President Mohamed Nasheed, then senior MNDF figures, and Telos Investment, Thanburudhoo was to be leased for an initial 50 year period for development as a “boutique surf resort” to secure US$5 million in funding for an MNDF training facility.

The resort development plan was initially submitted by Telos Investment President Dr Gunnar Lee-Miller, who is said in the proposal to have experience “serving the Ministry of Human Resource, Youth & Sport, the Maldivian Olympic Committee, and several associations in a sports development capacity.”

MNDF spokesperson Lieutenant Abdulla Ali said this week that the concept of development of its training island as a tourist resort was approved by the former government in 2010, but that work had stalled “for various reasons”.

“However, we have started that process again, and the discussions are continuing,” Lieutenant Ali said.

No agreement at the time was reached on the proposals, which included a clause to allow local Maldivians “in good standing” with the MSA to have access to the waves around the resort twice a month, on every other Friday and Saturday.

While accepting that even limited access to local surf points was a less restrictive policy compared to other resorts in the country, Rifaee said even allowing access twice a month would be a major setback for national surfing.

“By allowing us to surf only on Saturday or Friday morning , when the waves are not always going to be there, this might not be too helpful,” he said. “It’s not just local surf spots that would be affected by such a proposal either. I’ve been told that there are one or two top dive spots in the waters. However, any resort development would need reclaimed land and a harbour, which will endanger these spots.”

Rifaee contended that while the MSA had yet to take a formal stance to oppose the resort development, discussions were ongoing over how to proceed.

“We are going to protest this if we have to. It’s part of our culture and has been for many years. Even my grandfather used to surf.”

Responding to the claims, Telos Investment told Minivan News that it would be issuing a statement soon regarding the project and the potential impacts on national surf development.

“To be sure, there is a robust surf development plan for local surfers and fruitful discussions with Maldivian Surf Association Leaders have already commenced,” Dr Lee-Miller responded by SMS at time of press. “We care greatly about the development of Maldivian surfers both in Male’ and the outer atolls.”

Minivan News was awaiting a full statement from Telos Investment at time of press.

Minister of Tourism, Arts and Culture Ahmed Adheeb was not responding.

Proposal

In a proposal submitted in July 2011 by Telos Investment and senior Ministry of Defence figures, Telos Investment would pay US$5 million dollars for a 50 year master lease for Thanburudhoo to develop a surf property for tourists. The money would be used to fund the development of a ‘Leadership and Management Centre for Excellence’ at the MNDF’s Girifushi facility.

The proposal stated that Thanburudhoo had originally been given to the MNDF to carry out combat training exercises – a purpose that it could no longer maintain due to the number of surrounding resorts.

“So rather than letting an under-utilised island continue, MNDF believes that Thanburudhoo can be utilised to give a new lease and life and strong future to Girifushi and the emerging leadership of MNDF and the country,” the proposal stated.

The proposal was not an attempt by the MNDF to enter the tourism market, collect a yearly lease from an island, or form a joint venture with a foreign investor.

Former Economic Development Minister Mahmoud Razee, who was acknowledged in the same proposal as having provided “constructive counsel” to Telos Invesment and senior MNDF officials, confirmed to Minivan News that discussions over the proposal had taken place. However no agreement was reached with the Nasheed government, Razee said.

Razee claimed the decision to not move ahead with the proposal was “partly due to timing”, but also concern over providing access to the surfing areas around the island for “young people”.

The government of the time had checked the offer in line with its wider Corporate Social Responsibility (CSR) programme and found it comparable to other privatisation projects, Razee said.

“However, what we didn’t do was make the project a joint venture with the MNDF,” Razee added.

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