Tag: maldives news

Independent MP Ismail Abdul Hameed found guilty of corruption, banished

The Criminal Court today sentenced Independent MP for Kaashidhoo, Ismail Abdul Hameed, to one year and six months banishment after he was found guilty of corruption.

Banishment is a traditional punishment in the Maldives in which those sentenced are forbidden to leave a designated island.

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, 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.”

Deputy Elections Commissioner Hassan Fayaz told Minivan News that the Elections Commission (EC) will commence work to hold the election of the vacant seat when the parliament officially informs the commission that a seat is vacant.

“If a seat is vacant the commission will hold the election to elect a member, but the parliament haven’t officially informed the commission about a vacant seat,” he said. “I think it will take some time because he has the right appeal the verdict in superior courts.”

However, according to media reports, Hameed has not indicatated that he will appeal the verdict at the High Court or not. The MP for Kaafu Atoll Kaashidhoo was not present for today’s vote on the government’s Goods and Services Tax.

Hameed had voted with the ruling Maldivian Democratic Party (MDP) in most votes during the past two years.

Speaking at a press conference today, ruling Maldivian Democratic Party (MDP) Chairperson ‘Reeko’ Moosa Manik criticised the judiciary and accused the Criminal Court of imposing double standards on MPs facing court cases.

Moosa claimed that Deputy Speaker Ahmed Nazim of the opposition People’s Alliance (PA) had dodged court summons eight times.

When Nazim finally appeared at court, said Moosa, the court barred journalists from observing the trial.

“If a parliament seat becomes vacant in any constituency of the Maldives, God willing, we at the MDP will do everything we can to win the seat,” he said.

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DQP MP Riyaz Rasheed attacked, party alleges

The Dhivehi Qaumee Party (DQP) has alleged that DQP MP Riyaz Rasheed was attacked last night while he was on his way home after attending a meeting.

A crowd gathered around Riyaz’s car demanding he get out of it, and assaulted him when he did so, Haveeru reported.

DQP today issued a press release saying it “was possible” that Maldivian Democratic Party (MDP) Chairperson and MP ‘Reeko’ Moosa Manik “was behind the attack”.

“The fact that the attack came a few days after former MDP Parliamentary group leader Moosa gave a warning to Riyaz, it is possible that the attack has some connection with the warning,” the DQP claimed.

DQP said that Riyaz Rasheed was the MP who had submitted “the most number of bills to the parliament,” an MP that had been “criticising the government publicly” and that there had been “many attempts made to silence his voice.”

“The government has repeatedly attempted to stop Riyaz from his work against corruption in this government, by trying to bribe him, threatening him and by torturing him,” the DQP alleged.

Meanwhile, MDP Chairperson and MP Moosa Manik said he believed that DQP Dr Hassan Saeed was behind the attack “if they are blaming it on me.”

“Dr Hassan Saeed and Riyaz have been disturbing me and my family for a long time,” Moosa said. “And because that does not satisfy them, they are now blaming me for this.”

Moosa said he had “never attacked anyone physically or mentally.”

“I call on the police to investigate and find out on what grounds they are making this accusations on me,” he said.

Police Sub-Inspector Ahmed Shiyam said the matter had been reported to police, who were investigating.

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Flat construction begins on Gaakoshi plot in Male

Part of the Maldivian Democratic Party’s (MDP) camp office on Gaakoshi in Male’ has been annexed by the Housing Ministry to make way for flats as part of the government’s housing program, reports Haveeru.

The plot of land had been leased to the party until work was to begin on the flats, Deputy Housing Minister Mohamed Faiz told Haveeru.

Haveeru reported that the office has now been dismantled and walls demolished.

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Key taxation bill put before parliament for vote

Parliament will vote on Monday whether to introduce one of the government’s four key pieces of tax legislation that it has promised the International Monetary Fund (IMF) will help the country claw its way out of a crippling budget deficit.

The combined goods and services tax (GST) bill contains a general GST of 5 percent, and an increase to the existing tourism GST (TGST) from 3.5 percent to 6 percent.

Parliament voted on July 18 to send to committee four bills of the government’s economic reform package: the GST bill, an income tax, a corporate profit tax and a bill governing excise and reduction of import duties.

At the time all four bills received more than 50 votes apiece from the 72 MPs present and voting, hinting at broad cross-party acceptance of the need for taxation. Of the 72 MPs acting as a committee, 51 voted approval of the bill with the proposed amendments.

To expedite the process, an 11-member sub-committee was chosen to review the bills with five MPs of the ruling Maldivian Democratic Party (MDP), three MPs of the opposition Dhivehi Rayyithunge Party (DRP), Jumhooree Party (JP) Leader Gasim Ibrahim, one MP of the minority opposition People’s Alliance (PA) and Dhuvafaru MP Mohamed Zubair as an Independent MP.

On Monday, parliament will vote whether to finally pass the GST bill when it is presented to the chamber.

Most of the many amendments proposed to the bill by the committee are administrative, but several concern additional commodities to be exempted from GST, including petrol, diesel, cooking gas, telecoms and adult diapers.

The amendments also replace the government’s proposed start date of October 1 to within a month of whenever the legislation is published in the government’s gazette (following presidential ratification).

Following consultations with the opposition and the apparent support of 51 members for the bill, the Dhivehi Rayithunge Party (DRP) issued a pamphlet declaring it no longer supported the bill.

“They already essentially voted to support it, but now the DRP are bringing out statements and newspapers interviews saying don’t support it, and they have issued a whip line for the party not to support it [in the vote tomorrow],” said a source in the President’s Office.

The source said the government was also hoping the amendments to the Export-Import Act of 1979 would also be passed, as the GST was intended to replace it and crossover would see the same commodities being taxed twice.

At its press conference today, the DRP handed out a booklet titled “DRP’s response to the government’s fiscal and economic nuisance” with seven main points against the economic reform package.

The DRP objected to a projected growth of Rf1 billion in the budget for 2013 and expressed concern with expenditure out of the budget reaching 66 percent of GDP in 2009 – compared to 32 percent in Seychelles and 21.6 percent in Mauritius – claiming that the purpose of the new taxes was to “find money to influence the public for the 2013 [presidential] election.”

On the second point, the DRP notes that the 27 unemployment rate “proudly announced by the President” meant that 1 out of 4 people were unemployed, advocating diversification of industries to increase productivity. The DRP observed that the government’s policy for controlling inflation and spurring job growth was vague and unclear.

Thirdly, the DRP would oppose the introduction of a personal income tax on the grounds that the country’s unique geography, limited natural and human resources, and high cost for investments in the country did not make a direct tax advisable in the current economic climate.

While the government proposed that only those who earn above Rf30,000 would have to pay the tax, the DRP noted that all citizens would have to file tax returns.

“The charts of the government’s fiscal and economic nuisance package show Rf300 million will be received in 2012 from income taxes and 475 million in 2013,” it reads. “Instead of making all citizens file tax returns in order to earn 475 million two years after taxes are introduced, it would be far better to reduce the government’s useless expenditure by that amount.”

It adds that administrative costs for collecting income taxes from Maldivians living abroad would be disproportionate to the returns.

As its fourth point, the DRP noted that the General GST would affect small businesses such as cornershops, cafes and teashops, which would “need a lot of preparation” to maintain accounts and provide customer’s statements showing the GST percentage.

Morever, taxing “total value of business transactions” would not be possible with GST at zero percent for some items.

Considering the potential “administrative confusion” and the country’s heavy reliance on imports, the DRP argues that levying a customs duty at the entry point to the country was more effective.

The DRP is also against abolishing the Foreign Investment Act as it would remove protectionist restrictions, urging instead “amendments to the law to pave the way for foreign parties to invest in the Maldives and conduct businesses”.

The DRP “could not agree to sell the country’s remaining assets to the MDP’s friends” after “[losing control of] the country’s main gate, the international airport, the national telecom service, and Maldivian seas and shallows.”

Proposed amendments to the Immigration Act was meanwhile intended to “provide an opportunity for MDP’s friends to settle in the country and establish a foothold.”

Offering residential visas, it continues, would worsen unemployment and crop up “more challenges” for Maldivian professional workers.

On its final point, the DRP claims that the fiscal responsibility bill was “a scheme” to negate parliament’s amendments to the Public Finance Act and “reclaim the fiscal discretion offered to councils in the Decentralisation Act”.

In prior meetings with the government, the President’s Office source told Minivan News that “we agreed that state expenditure needed to be lowered, something the IMF was also asking for, but they mentioned none of these [other] things. We’re keeping our side of the bargain, but it’s hard to reach an agreement with them when they keep changing their minds.”

Unless the bills are passed before parliament goes for a month’s recess on Tuesday, the government may miss its commitments made to the International Monetary Fund (IMF) on announcing the economic reforms package. These included:

  • Raise import duties on pork, tobacco, alcohol and plastic products by August 2011 (requires Majlis approval);
  • Introduce a general goods and services tax (GST) of 5 percent applicable to all sectors other than tourism, electricity, health and water (requires Majlis approval);
  • Raise the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 8 percent in January 2013 (requires Majlis approval);
  • Pass an income tax bill in the Majlis by no later than January 2012;
  • Ensure existing bed tax of US$8 dollars a night remains until end of 2013;
  • Reduce import duties on certain products from January 2011;
  • Freeze public sector wages and allowances until end of 2012;
  • Lower capital spending by 5 percent

At the announcement of the economic reform package, Governor of the Maldives Monetary Authority (MMA) Fazeel Najeeb acknowledged that “there will be some eyebrows raised and some reservations on the measures – this is inevitable in any country changing its taxation regime.”

“There are instabilities and I hope these will be short term. But I think what we are doing is in the interest of the economy and will bring it out of the mess it is in. I think it is necessary that we act together now,” Najeeb said.

The IMF package, he noted, represented “a joint commitment by the Ministry of Finance and the central bank: a state affair in the interests of the economy and the country. Everybody in the country realises and recognises that there needs to be a change in the status quo. The status quo is a fiscal stance that is unmanageable.”

Asked whether he felt the new taxes were likely to be passed by parliament, “I think when it comes down to the details of what and how the legislation takes shape, that should be left to Majlis. What I can say is that status quo needs to change, and I don’t think this can be only reduction [in expenditure]. There needs to be a considerable amount of income increase. A combination of revenue as well as expenditure.”

Last week, at a launching ceremony for the “Fiscal and Economic Reform Programme,” Mohamed Umar Manik, chairman of the Maldives Association of the Tourism Industry (MATI), observed that a sustainable source of government revenue was necessary for providing public goods and services.

“Today we have democracy in our country, but democracy can only be strengthened if we are able to deliver,” said the Chairman of Universal Enterprises. “To do this, our government must have sources of income. A detailed reform agenda has been proposed for this. In my view, it is an ideal reform programme.”

Sunland Travels Director Hussain Hilmy stated that the Maldives’ “economic policy and legal framework needs to undergo modernisation and reform.”

“We in the business community welcome the bold initiative being undertaken to carry out a programme of comprehensive economic and fiscal reform,” Hilmy said.

He added that businesses were “delighted” with the government’s policy of a “shift away from import duties as a major source of government revenue.”

Meanwhile, speaking to Raajje TV last night, Finance Minister Ahmed Inaz said that the proposed tax system should have been in place 10 years ago, and that any further delay was unnecessary.

Inaz said the additional revenue was needed to pay civil servant salaries, and provide services such as water, power, independent institutions, sewerage, hospitals, schools “and the salaries of Majlis members and their committee allowances.”

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MDP declares support for mandatory presidential primaries

The ruling Maldivian Democratic Party (MDP) will back a proposal to make presidential primaries mandatory in the political parties bill, currently at committee stage.

MP Ibrahim ‘Ibu’ Mohamed Solih, MDP parliamentary group leader, announced the decision at a press conference yesterday, two days after the main opposition Dhivehi Rayyithunge Party (DRP) declared it would not support the General Goods and Service Tax (G-GST) bill up for a final vote tomorrow.

“We believe that as many members as possible should have a say when a presidential candidate of a political party is determined,” Ibu Solih said. “In our party, we have a general vote among members to select the presidential candidate. When a bill on political parties gets passed, we believe that principle should be included in the law.”

Speaking to Minivan News today, MP Ahmed Mahlouf of the DRP’s Z-faction and spokesperson of the ‘joint opposition parliamentary group’ said that the opposition MPs would “welcome” the MDP’s move.

“But the bill should have been passed a long time ago,” Mahlouf said, reiterating a claim the Z-DRP has made in the media over past months that the bill had been parked at committee as part of “a deal between [DRP Leader Ahmed] Thasmeen [Ali] and MDP.”

The political parties bill has been stalled at committee stage since May 19, 2010.

Mahlouf said that Thasmeen was the one who stood to lose from stipulating mandatory presidential primaries.

“Thasmeen has no backbone,” Mahlouf continued. “At first he said he would support the tax bills and now he’s saying he doesn’t support it anymore.”

The opposition parliamentary group would support any amendment to the political parties bill stipulating mandatory primaries, Mahlouf said.

In June, the breakaway Z-faction called for an “emergency congress” to determine the party’s presidential candidate after ‘Honorary Leader’ and former President Maumoon Abdul Gayoom withdrew his endorsement of Thasmeen.

Thasmeen was selected as the party’s presidential candidate in the DRP national congress in March 2010 after he ran uncontested for the post.

At a press conference today, DRP Deputy Leader Ahmed Mohamed said that he did not believe the MDP’s announcement had any relation to the DRP’s stance on the tax bills.

“Perhaps it might be an effort to shake us up a bit,” he speculated. “We are really not against a primary. We at the Dhivehi Rayyithunge Party are not opposed to a primary. What we’re saying is that the DRP charter does not say anything about a primary.”

Ahmed Mohamed noted that proposal to hold a presidential primary did not pass at the party’s last congress. The DRP charter states that the party’s presidential candidate shall be its leader, he said.

“So we can’t go against the DRP charter,” he stressed, adding however that the DRP would not oppose a presidential primary if it was stipulated in a law. “But we can’t do it now no matter how much some people might want it.”

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MDP, PA in favour of disclosing financial statements

The ruling Maldivian Democratic Party (MDP) and minority opposition People’s Alliance (PA) have come out in favour of making MPs financial statements public.

Deputy Speaker Ahmed Nazim, PA parliamentary group leader, told local media yesterday that the party will send a letter to the parliament secretariat requesting that financial statements of its MPs should be made available to state institutions upon request.

The decision comes after the Anti-Corruption Commission (ACC) entered parliament on Thursday under a court order to seek MPs’ financial statements. The commission has since told local media that it sought the statement of one MP, whom it did not reveal.

Meanwhile MDP parliamentary group leader, MP Ibrahim Mohamed Solih, said at a press conference yesterday that the party believed financial statements should be made available to anyone who sought it.

“Since we are representatives of the people, we believe that the public should know about MPs’ incomes, standard of living, and what they do with their incomes,” he said, adding that the party would “establish a proper system” to make the information available.

A decision would be made following discussions at the MDP’s national council or parliamentary group, the MP for Hinnavaru said.

In April this year, parliament reached an impasse on public declaration of assets by MPs after voting against a proposal by the Ethics Committee to not make the information available unless ordered by a court of law.

When MPs voted against the proposal 34 to 24, Deputy Speaker Ahmed Nazim declared the matter “void.”

“However, the Secretary General’s request for counsel on this matter has not been decided one way or the other,” he said at the time. “So the Secretary General will go ahead with it according to the rules of procedure.”

The Secretary-General had asked the Ethics Committee to determine whether MPs’ financial statements should be released to other state institutions upon request.

Secretary General Ahmed Mohamed confirmed to Minivan News that the requested financial statements and documents were provided to the ACC team before the court order expired at 3:00pm.

According to Article 76 of the constitution, “Every member shall annually submit to the Secretary General of the People’s Majlis a statement of all property and monies owned by him, business interests and liabilities. Such declarations shall include the details of any other employment and obligations of such employment.”

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Media Council condemns Criminal Court for excluding journalists from Deputy Speaker’s corruption trial

The Maldives Media Council (MMC) has condemned the Criminal Court for barring journalist from a corruption hearing involving Parliament’s Deputy Speaker and People Alliance Party (PA) MP Ahmed Nazim.

The council issued the statement following the Criminal Court judge’s decision, stating that the court’s claim that journalists were blocked because they gave a negative perspective on the court was not probable grounds to disallow journalists from hearing the trial.

The Council said that the Criminal Court’s decision would prevent the court from gaining public confidence.

The MMC’s press statement said the decision to bar journalists from the trial was “a huge challenge” for people’s right to a free press, as outlined in the Constitution.

Last Thursday, the Criminal Court refused to allow journalists to observe the hearing of Nazim’s ongoing corruption trial. Nazim is facing charges of multiple counts of conspiracy to defraud the former Atolls Ministry.

Local dailies Haveeru and Sun Online reported that the hearing was scheduled to start at 12:00pm, but was actually conducted one hour earlier at 11:00pm. The court had not informed any of the reporters who registered at the court that morning of the time change.

According to Haveeru, court reporters who learned of the time change and requested entry were told that “the judge has decided to hold a closed hearing.”

When asked by reporters to offer a reason for the closed hearing, the court official asked the reporters to wait, went inside and did not appear until the hearing was over.

Almost two hours after the hearing concluded, Criminal Court Media Officer Ahmed Mohamed Manik told the court reporters that had not been allowed to enter because “negative perceptions of the court were being created [among the public] because of some journalists.”

Queried by the court reporters, the Criminal Court official insisted that the judge was authorised to exclude the public from trials under article 42 of the constitution. Members of the public were allowed to attend today’s hearing.

Under normal court procedure, only trials involving child sexual abuse are closed to the public.

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MNDF officer shot dead in friendly fire incident during SAARC bodyguard training

A Maldives National Defence Force (MNDF) officer has died in a friendly-fire incident during bodyguard training at the Kadhoo facility in Laamu Atoll.

32 year-old Corporal Ibrahim Shaukath was shot in the head and was taken to Laamu Gan Regional Hospital, where he was pronounced dead at 11:50am.

The MNDF stated that live ammunition was used in the training program, intended to train bodyguards for the upcoming SAARC Summit to be held in Addu.

MNDF Spokesperson Major Abdul Raheem told Minivan News that a joint investigation by police and the MNDF had been launched into the investigation of the death.

“It is too early to say how the incident occurred because the investigation is ongoing,” Abdul Raheem said.

Asked whether officers were required to wear helmets during training requiring the use of live ammunition, Abdul Raheem responded that “during some training, the officers will be equipped with different weapons and tools and I am not sure whether in this training the students were told to wear their helmets,’’ he replied.

A state funeral for Shaukath will be held on his home island of Alifushi in Raa Atoll.

“The family requested we conduct the funeral on Alifushi, so we decided to do so,’’ Abdul Raheem said, adding that senior officers of the MNDF would attend.

He said that the MNDF flag would be hoisted half-mast for three days in mourning of the incident.

“The whole MNDF force is with the family of Shaukath and our prayers are with him and his family,’’ Abdul Raheem said. “It was a very regrettable incident.”

Local media meanwhile reported that Shaukath died immediately when the bullet went straight his forehead.

Defense Minister Thalhath Ibrahim, Chief of Defense Force Major General Moosa Ali Jaleel and Vice Chief of Defense Force Faruhath Shaheeru and MNDF Nothern Area Commander Brigadier General Ahmed Mohamed will attend the funeral.

The opposition Dhivehi Rayyithunge Party (DRP) sent condolences to Shaukath’s family and called for an independent investigation to prevent such incidents from occurring in the future, alleging that existing safety measures during training exercises were “questionable”.

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Surfing Champions 2011 trophy to be held August 31

Four Seasons Kudu Huraa resort will host six of the world’s most famous surfers for the 2011 Surfing Champions Trophy, starting from August 29.

Competing surfers include Josh Constable, Mark Richards, Layne Beachley, Nat Young, Damien Hardman and Mark ‘Occy’ Occhilupo, with over 20 world titles to their names.

The five-day event will take place from August 31 to September 4. Representatives from the resort said the event would highlight the Maldives as an attractive surfing destination alongside its already widespread fame as a dive destination.

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