Tag: maldives news

MJA calls for investigation into release of Rf456,000 to defunct media association

The Maldives Journalists Association (MJA) and senior members of the now-defunct Maldives Media Association (MMA) have called on the Auditor General and Anti-Corruption Commission (ACC) to investigate an alleged Rf456,000 (US$31,000) released from the states contingency budget.

The MMA – not to be confused with the Maldives Media Council (MMC) which is currently facing legal action for paying members almost Rf 1 million in ‘living allowances’ -was registered as an NGO in 2007 and was active for a year. However the NGO ceased its activities and many of its board members resigned.

Deputy Speaker of Parliament and Chair of the Public Accounts Committee, MP Ahmed Nazim, told local media this week that a report submitted by the Finance Ministry showed that over Rf450,000 from the state budget was issued to the MMA.

“According to the NGOs Act, the Maldives Media Association was supposed to be dissolved for being inactive for a long time, but the Home Ministry has not yet announced it has been removed from the NGOs list,” the MJA said in a press release. “It is astonishing to hear that such a large sum of money has been given to the MMA from the state budget to pay their staff.”

The MJA said it understood that information on assistance given to the MMA was stored at the Information Department, and called for an investigation.

State Tourism Minister Mohamed Thoyyib was the last President of the NGO, and other figures such as Mohamed ‘Hiriga’ Zahir, who is the current editor of Sun Online and Maldives Media Council member, along with Maldives National Broadcasting Corporation (MNBC) Sub-Editor Ahmed Muhsin, were all senior members of the MMA.

Finance Minister Ahmed Inaz told Minivan News that he was not sure how the allegations surfaced.

“We are currently trying to determine whether it actually happened,” Inaz said, adding that the ministry would put out a press statement explaining the incident.

Hirigia, who was a senior member of the MMA, told Minivan News that the NGO had received no money from the government when it was active.

“We call on the Auditor General and Anti-Corruption Commission (ACC) to investigate this matter and we call on the government to tell everyone where the money really went,” Hiriga said. “It’s been almost 24 hours since the Public Accounts Committee told the media about this, and still the Finance Ministry has not said anything about it.”

The emergence of the issue indicated that the government may have been misusing funds out of the contingency budget, he said.

“There will be still more than Rf60,000 of the Maldives Media Association’s money stored in the Information Department, we want to know what happened to that as well,” Hiriga said.

The then-President of the Maldives Media Association, currently State Minister for Arts and Culture Thoyyib Mohamed, said that the association received no money from the government.

”We did not receive any money from the government, maybe there is confusion in the Finance Ministry,” Thoyyib said.

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Dhiraagu launches IPO

Telecommunications giant Dhiraagu launched its Initial Public Offering (IPO) last night to offer 11.4 million shares (15 percent of the company’s stake) to the public at a rate of Rf80 per share from December 25 onward.

At a launching ceremony last night, Customer Services and Sales Director Ali Riyaz explained that application forms as well as the prospectus would now be available from Dhiraagu front offices and Bank of Maldives branches.

The forms would not be available for download for security reasons, he said. Completed forms are to be submitted between October 25 to November 30.

Meanwhile special seminars in Male’ and the atolls are being planned to provide information to the public.

The company revealed this week that it earned Rf968 million (US$62.7 million) as profit in 15 months with an income of about Rf2.5 billion (US$162 million).

Speaking at the ceremony, President Mohamed Nasheed revealed that the government intended to sell its remaining 33 percent share of the company to the public.

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Preliminary debate begun on three bills

Parliament began preliminary debate on three bills during its sittings this week, including legislation on small and medium-sized businesses proposed by the government as part of its economic reform package.

Presenting the bill on Monday, MP Nazim Rashad of the ruling Maldivian Democratic Party (MDP) said the legislation would establish a centralised mechanism to register small businesses and facilitate loans for investment.

In the next sitting on Tuesday, Independent MP Ali Mohamed presented a bill on medical devices. The former opposition Dhivehi Rayyithunge Party (DRP) MP explained that the absence of relevant legislation on medical equipment precluded hospitals from ascertaining their quality.

The legislation would encourage training staff to operate the machinery and establish a regulatory board to enforce standards.

Meanwhile at today’s sitting, the last of the week, preliminary debate began on the government’s arbitration bill, which seeks to introduce alternative dispute resolution in the Maldives. The bill is also part of the government’s 18-bill economic reform package.

The first of the reform bills – now the General Goods and Services Tax (GST) Act – was passed at the final sitting of the last session on August 29.

Also during this week’s sittings, the government’s bill to amend the Import-Export Act of 1979 to reduce and eliminate custom duties entered the final committee stage. The amendment bill is likely to be put for a vote when Majlis resumes next week.

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ACC to sue Maldives Media Council over illegal ‘living allowance’

The Anti-Corruption Commission (ACC) has said that it has decided to sue the Maldives Media Council (MMC) after the Auditor General’s report revealed that members took almost Rf 900,000 in additional allowances.

President of the ACC Hassan Luthfy confirmed to local media that suits will be filed against the MMC, one in the Civil Court and one in the Criminal Court for corruption.

Meanwhile, the Maldives Journalists Association (MJA) has called on the members to resign following the publication of the audit report.

In a statement, the MJA said that “this raise questions about the integrity of MMC which was established by the Parliament to regulate media. The MMC Act which was passed by the parliament clearly stipulates that no additional money other than wages shall be given to the council members for their work, unless it is approved by the Parliament.”

The MJA said the MMC Act required the council to comprise of eight members from the media and seven members from the public, but questioned the legitimacy of the council after noting that member from the public had been employed by the Maldives National Broadcasting Corporation (MNBC) after he was appointed as a member.

“This has dropped the number of members representing public to six, and increased the number of members representing the media to nine,” the MJA said, asking parliament to probe the issue.

The MJA said it was unacceptable for the NGO to see an institution assigned to regulate the media breaching the laws and democratic principles.

“This primitive action by the MMC has tarnished the trust and dignity of the local media in front of the citizens,” the MJA said. “We are very concerned, as this may also damage the reputation of the Maldives media in front of international organisations, and may raise questions about the integrity of the sole media regulatory body in the country.”

The opposition joint parliamentary group has meanwhile told the media that next week they will submit a bill to parliament to dissolve the council and transfer its mandate to parliament’s Maldives Broadcasting Corporation (MBC).

Spokesperson for the opposition parliamentary group, MP Ahmed Nazim, told newspaper Haveeru that the council had not been fulfilling its responsibility and noted that the Anti-Corruption Commission (ACC) has accused the council of corruption.

He said that the MMC’s initial refusal to obey the direction of the ACC and repay the money was also an issue.

President of the Maldives Media Council (MMC) Mohamed Nazeef did not respond to Minivan News at time of press.

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Hanimaadhoo MP Mujthaz joins PPM

Dhivehi Rayyithunge Party (DRP) MP Mohamed Mujthaz resigned from the party yesterday and signed for former President Maumoon Abdul Gayoom’s Progressive Party of Maldives (PPM).

Mujthaz signed the membership form at a small ceremony attended by Gayoom. PPM Spokesperson MP Ahmed Mahlouf told press that the MP for Hanimaadhoo had pledged to join the new party formed by the breakaway Z-faction of the DRP.

With the exodus of MPs to join PPM, the DRP now has 16 MPs in parliament.

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High Court upholds lower court verdicts over unpaid Bank of Maldives loans

The High Court has upheld Civil Court verdicts ordering Mahandhoo Investments and Kabalifaru Investments – two companies with ties to Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali – to repay millions of dollars worth of loans to the Bank of Maldives Plc Ltd (BML).

DRP MP Mohamed Nashiz, brother of the DRP leader and managing director of Kabaalifaru, and MP Ali Azim, a loan guarantor, were among the appellants at the High Court.

Both MPs had signed ‘joint and several guarantee and indemnity’ agreements for the loans issued in mid-2008.

In the verdicts delivered today, the High Court ruled that there were no legal grounds to overturn the lower court verdicts.

In the first case involving Mahandhoo Investments, BML had issued a US$23.5 million demand loan, a US$103,200 bank guarantee and US$30,090 letter of credit on July 10, 2008.

After BML sued Mahandhoo for non-payment, the Civil Court ruled on October 19, 2009 that the company was not paying the loans in compliance with the agreement and authorised the bank to sell mortgaged properties – including Reethi Beach Resort – to recover the outstanding debts along with incurred interest and fines.

The court ordered the company to settle the outstanding debt in a one year period. However the verdict was appealed at the High Court and remained stalled for almost two years.

The second case meanwhile involved a US$3.3 million loan issued to Kabaalifaru Investment and the appeal of a Civil Court verdict on September 30, 2009 ordering the company to settle the debt in the next 12 months.

Meanwhile a third case involving a Civil Court verdict in December 2009 ordering luxury yachting company Sultans of the Seas – with close ties to the DRP leader – to pay over US$50 million in unpaid loans and incurred interest and fines had also been appealed at the High Court.

In a BML audit report released in January 2009, Auditor General Ibrahim Naeem warned that defaults on bank loans issued to influential political players could jeopardise the entire financial system of the country.

Over 60 per cent of the US$633 million worth of loans issued in 2008 was granted to 12 parties, the report noted.

According to the report, US$45 million was granted to Sultans of the Seas and US$36 million to Fonnadhoo Tuna Products, two loans which comprised 13 per cent of the total loans issued in 2008.

The report noted that Fonaddhoo was owned by current DRP Leader Ahmed Thasmeen Ali – running mate of former President Maumoon Abdul Gayoom in the 2008 presidential election – while the owners of Sultans of the Seas were closely associated with the minority leader.

In September 2009, Maldives Customs filed a case at Civil Court to recover US$8.5 million from Sultans of the Seas in unpaid duties and fines for allegedly defrauding customs to import two luxury yachts.

In February 2010, the court ordered the company to pay Rf110 million (US$7 million) as fines and evaded import duties.

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MP Muthalib re-joins Adhaalath Party

Former Adhaalath Party MP Ibrahim Muthalib, who resigned from the party and joined the Jumhoree Party (JP) until August this year, has re-joined the Adhaalath Party.

In a statement, the party said that Muthalib resigned from the party due to differences in opinions between the party’s then leadership.

‘’Many citizens hope that other MPs in parliament who love the nation and the religion will join Adhaalath Party,’’ the Adhaalath Party’s statement said. Muthalib was the first treasurer of the Adhaalath Party.

Muthalib resigned from JP – led by local business tycoon Gasim Ibrahim – claiming that his dreams of making the JP the country’s third most active party had been “shattered due to lack of cooperation.”

‘’I resigned because I did not want to remain depressed with these thoughts. For now I just want to relax and remain independent for the time being,’’ Muthalib said at the time. Newspaper Haveeru quoted Muthalib as saying that his resignation came following Gasim’s vote in favor of the appointment of Dr Ibrahim Didi for Fisheries Minister and Thalhath Ibrahim for Defense Minister.

Until Muthalib last night joined Adhaalath, the party had no MP representing them.

Today Muthalib told Minivan News that he decided to join Adhaalath because the party was in need of his assistance and ‘’I have always said that I would join Adhaalath when the change I needed to bring to the party was brought. I resigned from Adhaalath Party on November 2011, and although when I was elected to the parliament I was registered in the Adhaalath Party, I was elected as an Independent MP,’’ Muthalib said.

‘’I had to resign from the Adhaalath Party because of some issues I don’t want to talk about right now,’’ he said. ‘’After resigning from the Adhaalath in November, I joined the Jumhoree Party at the request of some persons, and I worked to make the party a strong opposition party. But it did not work out that way so I had to resign from JP.’’

‘’I want to work with the scholars, I think that is the only way we can set this country the right way – by working with the scholars,’’ he added.

The Adhaalath Party recently terminated the coalition agreement made between the government, and asked Islamic Minister Dr Abdul Majeed Abdul Bari and State Islamic Minister Sheikh Hussain Rasheed to resign from their positions.

Dr Bari respected his party’s decision and resigned from the position yesterday, while Sheikh Hussain has said that he will not resign unless the President requests him to do so.

Dr Bari meanwhile withdrew his resignation from the Adhaalath Party’s religious council, of which he was formerly chairman.

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MP Ismail Abdul Hameed appeals Criminal Court ruling

MP Ismail Abdul Hameed, who was recently sentenced to one year and six months banishment after the Criminal Court found him guilty of corruption, has appealed the case in the High Court.

The Prosecutor General pressed corruption charges against Hameed alleging that he had abused his authority as the former Director of Waste Management at the Male’ municipality to financially benefit a Singaporean company named Island Logistics, in a deal to purchase a barge.

According to local media reports that time, Judge Abdulla Didi noted in the verdict that the agreement stipulated the barge was to be delivered within 90 days of signing the agreement, upon which 50 percent of the value was to be paid to Island Logistics.

Although the barge arrived in the Maldives on October 23, 2008, Hameed had however signed a document claiming that the barge was delivered on schedule on April 28, 2008.

The judge ruled that Hameed’s actions were intentional and in violation of the Anti-Corruption Act.

Under article 73(c)(3) of the constitution, MPs found guilty of a criminal offence “and sentenced to a term of more than twelve months” would be stripped of their seat.

Article 78 of the constitution meanwhile states that “whenever there is a vacancy among the members of The People’s Majlis, an election shall be held within sixty days from the date of the vacancy. A by-election shall not be held within six months prior to a general election.”

However, Elections Commissioner Fuad Thaufeeq previously told Minivan News that the commission does not consider the seat in the parliament is vacant, and noted that Hameed had requested the commission to delay the by-elections as he planned to appeal the case.

When Minivan News contacted Hameed for a comment today, he said he was busy.

Meanwhile, Jumhoree Party (JP) Youth Wing leader Moosa Anwar filed a case in the Supreme Court, requesting the court  determine whether the Kaashidhoo seat should be made vacant after the Criminal Court ruling or if it would  be vacant after appeals were exhausted.

The case was first rejected however Anwar resubmitted the same case to the Supreme Court on September 26. No further information about the case has been reported.

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Maldives remains “partly free” environment for media: Freedom House

Media freedom has remained steady in the Maldives following significant gains in 2009, according to a report by Freedom House.

The country was found to be a “partly free” environment for media, with the constitution protecting freedom of expression “but also restricting freedom of speech ‘contrary to the tenets of Islam’.”

The report was published prior to the release of new regulations enforcing the Religious Unity Act, which bans media ‘from producing or publicising programs, talking about or disseminating audio ‘that humiliates Allah or his prophets or the holy Quran or the Sunnah of the Prophet (Mohamed) or the Islamic faith’,” imposing a 2-5 year prison sentence.

Freedom House noted that the overall legal framework protecting free expression “remained weak, with many proposed media reform bills still awaiting passage”, however it praised parliament for passing an amendment to the penal code in 2009 decriminalising defamation.

The organisation noted that legislation to transform the state broadcaster, the Maldives National Broadcasting Corporation (MNBC), into the Maldives Broadcasting Corporation, a public broadcaster, “was passed in April 2010, but the government delayed implementing the handover.”

Increased media diversity had improved coverage of major political events, including by the state broadcaster, “though the [MNBC] still suffers from pro-government bias.”

Investigative journalism, Freedom House noted, “remains hampered by the lack of an access to information law and a culture of secrecy at government departments.”

While the formation of the Maldives Media Council (MMC) was “cautiously welcomed”, given the preference of advocacy groups for self-regulation, the elections process was criticised for not being sufficiently transparent, and former members of political parties were nominated as candidates to the Council.”

The MMC is currently facing criticism from the Anti-Corruption Commission (ACC) for the payment of almost a million rufiya in “living allowances” to Council members beyond their stipulated salaries.

On the advocacy side, Freedom House observed that the Maldives Journalist Association (MJA) “regularly made statements regarding media freedom issues and journalists’ rights during the year, accusing the government and political leaders of interference with the private media in a number of cases”, however it noted that “an alternate group, the Maldives National Journalists’ Association (MNJA), was founded in 2010, reportedly in response to the perceived politicisation of the MJA.”

Private print media had expanded and represented a wide variety of viewpoints, the Freedom House report noted, “however some publications are owned by allies of former president Maumoon Abdul Gayoom or other political actors, who exercise considerable control over content. Most newspapers are not profitable and rely on financial backing from businessmen with strong political interests.”

The government had “generally” avoided interfering with internet access, used by approximately 28 percent of the population in 2010, however “the Ministry of Islamic Affairs announced in 2008 that Christian and anti-Islam websites would be blocked, arguing that they could negatively affect belief in Islam, and a number of websites were blocked by the Telecommunication Authority at Ministry’s request during 2009.”

Journalists meanwhile remained subject to “some harassment”, with incidents including an attack in August 2010 on the offices of VTV by “unknown assailants”, “and a police attack on journalists covering a political protest in October.” Verbal attacks included threats against media outlets from Maldives Democratic Party (MDP) MP Reeko Moosa, and repeated death threats against certain bloggers “from Islamist extremists”.

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