Tag: maldives

MPL refused to cooperate in Tourism Minister corruption investigation, says auditor general

Board members of Maldives Ports Limited (MPL) have refused to cooperate with an investigation into corruption allegations against Tourism Minister Ahmed Adeeb, the Auditor General has said.

Adeeb is accused of abusing his position to obtain MVR77.1 million (US$5 million) from the MPL and US$1 million from Maldives Tourism Development Corporation (MTDC), and loaning the money to companies owned by relatives and friends via state-owned tourism promotion company the Maldives Marketing and Public Relations Corporation (MMPRC).

Case documents show the MPL board approved the payment to MMPRC.

Auditor General Ibrahim Niyaz said a preliminary report into the case could only be completed with input from MPL board members, but some had refused to answer summons.

“The MPL board did not cooperate with us. Some of them did not answer our summons for investigation,” Niyaz said.

The MPL did, however, provide required documentation, he noted.

MPL CEO Mahdi Imad told news agency Haveeru that he was unaware of summons. He denied any wrongdoing in the transaction, claiming MMPRC was using the rufiyaa to buy dollars for MPL.

“Our company has engaged in buying dollars before. There is nothing to hide in this case,” Mahdi said

Meanwhile, the Anti Corruption Commission (ACC) has said the auditor general’s report was required before the commission could initiate a probe.

Adeeb has not denied involvement in the transaction, but said such transactions were routine between state owned companies in order to avoid purchasing dollars on the black market.

As Tourism Minister he had also helped the state’s primary wholesaler State Trading Organisation (STO) obtain dollars to import goods, he told Minivan News.

“The problem here is that I am being singled out and targeted,” he said, suggesting the unfair “defamation attempt” was linked to his refusal to support certain individuals for the position of speaker of the 18th People’s Majlis.

“There is absolutely no room for anyone to say that I fled with the MMPRC’s coffers,” he continued.

The minister confirmed cheques had bounced, but said the MTDC’s US$1 million had been reimbursed, while MPL had been paid one- third of the owed amount in dollars. The remaining two thirds are due in June, he added.

The individual who lodged the complaint questioned the MPL and MMPRC’s justification, claiming: “The MMPRC is run on state funds, and as the company does not earn in dollars, it is highly questionable that the MPL gave the company money to buy dollars,”

MPL had also transferred rufiyaa to the MMPRC at a time when the company had failed to pay dividends to the government. The company had argued it did not have money in its accounts, the complainant said.

They further alleged the MMPRC Managing Director Abdulla Ziyath personally went to MPL with the company’s seal to collect the cheques, demonstrating “the act was a planned act, for personal gain by the leaders of MPL and MMPRC.”

“When one company’s MD personally goes to receive funds from another company, it is evident this act is committed in secrecy, behind the company’s employees’ backs.”

As soon as the MMPRC obtained the money, it was transferred in two installments to a company owned by Adeeb’s friend called Millennium Capital Management without any bank checks or security procedures, the complainant said.

The US$1 million obtained from MTDC was loaned to a company owned by Adeeb’s father called Montillion International Pvt Ltd. Adeeb used to own majority of the shares in the company, but on becoming tourism minister in 2012, transferred all of his shares to his father Abdul Ghafoor Adam.

The complainant does not appear to have submitted any supporting evidence for the transfer of funds from MMPRC to the two companies.

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Man handed six-month jail term for breaking house arrest

A man serving a three year four months house arrest sentence has been handed a six-month jail term on Tuesday for breaking his house arrest.

Mohamed Shiham of Felidhoo House in Gaaf Dhaal atoll Gahdhoo Island was sentenced to house arrest in August 2010, but left his house before the end of his sentence in April 2013.

He confessed to the offense at the Criminal Court.

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Sun Shiyam’s bag was searched in absentia, witnesses admit in alcohol trial

Tourism tycoon and MP ‘Sun Travel’ Ahmed Shiyam’s bags were searched in his absence, state prosecutors have told the Criminal Court on Monday (May 26).

Shiyam is being charged with smuggling alcohol and possessing alcohol after a liquor bottle was found in his luggage at the airport in March 2012.

But Shiyam’s lawyer Ali Shah claimed the MP was being framed. Witnesses presented by the state admitted the luggage was with another individual when it was unlocked.

Witnesses also said they did not question Shiyam about the find at the time.

The case has garnered controversy after Criminal Court Judge Abdulla Mohamed took over the case from Judge Ahmed Sameer following a complaint by Shiyam in which he said Judge Aziz’s “hand gestures and facial expressions” indicated a personal grudge against him which could lead to an unfair trial.

The penalty for alcohol possession in the penal code is either a fine of between MVR1,000 to MVR3,000 or imprisonment, banishment or house arrest for up to three years.

Under article 73 of the constitution, an MP convicted of a criminal offence and sentenced to more than one year in prison will lose his or her seat in parliament.

The MP for Dhaal Meedhoo is the leader of Maldives Development Alliance – which has 7,537 registered members and three MPs – and is founder of the Sun Travel and Tours company.

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JP nominees for political appointees unqualified, says President Yameen

Jumhooree Party (JP) has failed to gain allocated seats in political positions because nominees put forth by the party are unqualified, President Abdulla Yameen has said.

“The privatization board dismissed nominees put forth by Gasim because they are unqualified,” Yameen told the press at the Ibrahim Nasir International Airport yesterday evening.

JP Leader Gasim Ibrahim had claimed Yameen’s Progressive Party of the Maldives (PPM) had breached the ruling coalition agreement’s by refusing to give the party a 35 percent stake in political appointees.

Gasim’s comments came in response to the PPM executive council’s warning on Monday night that the coalition would dissolve if he stood for the position of People’s Majlis Speaker. The PPM would consider such a move to be a breach of the agreement, the party said.

But Gasim accused PPM of breaching the agreement first, claiming the JP had received only 34 seats of the 300 political appointees. He has also refused to retract his decision to contest for the position of Majlis Speaker.

Yameen said it was important for a PPM MP to be elected to the position: “The speakership is very important to the ruling party. Then only can we do what we want to do with ease.”

“Gasim does not trust us. That is why he is standing despite us nominating someone else,” he said.

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Coach labels players “heroes” after dramatic cup knock-out

Maldives coach Drago Mamic has described his players as “heroes” after their dramatic extra-time defeat in yesterday’s AFC Challenge Cup semi-final.

“I told the players after the game that they are my heroes and I am proud of them and the whole country must be proud for what these boys showed today,” said Maldives coach Drago Mamic.

The Maldives exited the tournament after having fallen behind twice to the Philippines n the match before levelling the score. A third comeback proved too much for the team, however, after Chris Greatwich put the Philippines ahead once more in the 104th minute.

“Both teams should have won today if this can exist in the rules,” said Mamic. “But unfortunately the rules are very clear that who scores more goals will be the winner and that is why this time the Philippines scored three and we scored two and my congratulations to the Philippines as they scored more goals.”

The Phillipines will go onto play Palestine in Friday’s final after beating Afghanistan 2-0 in the day’s early kick-off. The winner will go on to appear in next year’s Asian Cup in Australia.

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Legal restrictions a challenge to investment expansion: Pension Office

The Maldives Pension Administration Office (MPAO) has said legal restrictions are preventing the expansion of investments into profitable industries such as real estate.

The MPAO cannot invest in real estate as none are currently listed securities at the Maldives Stock Exchange, the only registered stock exchange in the country, said CEO Mohamed Hussain Manik.

The Maldives Pension Act states that pension assets can only be invested in securities listed at a licensed stock exchange in the Maldives.

Manik said the office was currently in the process of identifying reliable and secure investments at technical level. Based on the findings of this work, the MPAO will consider expansion, but it may require amendments to the law, he added.

In order to prepare for the future plans for expansion, the MPAO recently held an investment seminar targeting the finance sector as well as a finance forum to discuss international finance and capital markets.

While the Pension Act details many conditions which should be considered when investing from the fund – such as minimum risk and maximum returns for the beneficiaries of the scheme – it also stresses diversification of investments.

According to the office, the annual return from current investments are on average at 7 – 8 percent with the fund expected to reach an estimated MVR3 billion by September or October this year.

In a press statement, the office has said that, considering the current inflation rates, this return is profitable for the beneficiaries for the scheme.

It was highlighted, however, that in order to sustain the increasing returns as the fund grows in size, they may have to take advantage of more investment opportunities both in the Maldives and abroad.

Statistics from April 2014 indicate that nearly 83 percent of the fund’s investment portfolio goes into government treasury bills which, according to the office, is also the most profitable due to high interest rates caused by increasing government debt.

Only 7 percent of it is invested in domestic equity and less than seven percent in fixed deposits.

Earlier this month the Capital Market Development Authority (CMDA) – an independent institution set up to develop and regulate the capital market and pension industry – said market development had not kept pace with pension development.

Speaking to Minivan News, CEO of the authority Fathimath Shafeega highlighted the importance of diversification and seeking profitable alternative investments for the pension fund, beyond the limitations of the Pension Act.

She also said that, following CMDA recommendations, the government – which holds a majority in the newly inaugurated parliament – is planning to introduce amendments to the Pension Act.

Beginning in March this year, the government more than doubled the monthly basic pension – with all citizens aged over 65 now receiving MVR5,000.

The basic pension, to which all retirement-age citizens are entitled, is still MVR 2,300 per month while the additional MVR2,700 is provided from the state budget by the Ministry of Finance and Treasury.

With an estimated 17,000 pensioners, the government had allocated MVR470 million (US$30.5 million) in the state budget to give out an MVR2,300 (US$149) in cash handouts.

At the time, the head of the cabinet’s economic council Ahmed Adeeb said that “innovative” methods, such as investing in the pension fund or government T-bills would prevent the need to divert funds from within the state budget. The MPAO has, however, said that no such arrangements have yet been made with regard to the basic pension.

The MPAO investments are currently made only for the Maldives Retirement Pension Scheme (MRPS) beneficiaries, a defined contribution scheme which requires both employer and employees to contribute seven percent (total fourteen percent) of the pensionable wage.

Under the plan, pension benefit payout at retirement will depend on the amount contributed and investment returns. It is mandatory for all Maldivian contract employees but voluntary for foreign employees.

Currently, MRPS beneficiaries will also receive a minimum of MVR5,000 if their payout is smaller than this amount.

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Supreme Court issues child support regulations

The Supreme Court has issued a ruling on child support on Tuesday to standardise expenses obtained by the judiciary for childcare support.

The apex court said parents must pay at least MVR2000 if child support is being provided for one child under 18 years of age. The amount includes MVR1000 for expenses for a child and an additional MVR1000 to support the guardian of the child.

If a parent has to provide support to more than one child, they must pay at least MVR1000 for each child.

Furthermore, the parent has to provide at least MVR1000 to support the parent or guardian of the children, even in cases where a parent has to support children from multiple partners.

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Progressive coalition will dissolve if Gasim runs for speaker, says PPM

Ruling Progressive Party of Maldives (PPM) has announced that the ruling coalition will dissolve if the coalition partner Jumhooree Party leader Gasim Ibrahim stands as speaker of the newly elected People’s Majlis.

The 18th People’s Majlis is due to be sworn in tomorrow, with the new speaker to be elected by secret ballot.

Gasim has responded by saying he will not retract his name, claiming the PPM was the first to breach the coalition agreement made during November’s presidential elections.

“Truth is, they have been trying to kick us out of the coalition for a long time now,” Gasim told the press today.

After coming third in the presidential polls, Gasim’s support was crucial in securing a win for the PPM against the opposition Maldivian Democratic Party (MDP).

Gasim’s support was given in exchange for a 35 percent stake in executive political postings and a promise to work together during subsequent local government and parliament elections.

The Progressive Coalition secured a combined total of 53 out of 85 seats in parliamentary polls, no party won enough seats to reach the 43-vote simple majority alone.

Who broke the agreement?

PPM deputy leader, and minister of tourism, Ahmed Adeeb further warned last night that he would request President Abdulla Yameen replace JP political appointees should Gasim stand as speaker.

“From [Gasim’s] actions, we are seeing him working together with the opposition Maldivian Democratic Party (MDP) to acquire the speaker’s seat,” said Adeeb.

“As MDP worked to present obstacles to this government when they held parliamentary majority, we cannot accept a coalition member working alongside them,” he continued.

PPM leader and former President Maumoon Abdul Gayoom had also written to Gasim, describing a recent meeting with MDP leader and former President Mohamed Nasheed as being against the “coalition’s spirit”.

During the meeting at Gasim’s residence last month, Nasheed had signalled the MDP’s support for Gasim – a stance reiterated today.

Gasim subsequently called a press conference today during which he argued it was not his party but the PPM, which had breached the agreement.

Holding up the agreement, he said coalition partners had agreed to hold discussions to resolve any issues not included therein.

The PPM had unilaterally informed him they would nominate separate candidates for the position, said the JP leader, who also complained of not receiving the party’s quota of appointments.

“The agreement says 35 per cent of political appointments will be given to us, which would amount to between 90 to 40 posts when we consider the total number of political appointments in this government. However, today we have only about 29 slots,” Gasim explained.

Gasim stated that he had received the support of President Yameen, Defence Minister Mohamed Nazim, and Adeeb prior to publicly announcing his candidacy.

“Nazim and Adeeb said it’s a good decision and wished me luck. No one asked me to not put my name forward or mentioned they wanted to further discuss the matter. Then without any notice, they make this announcement about breaking up the coalition,” Gasim said.

“I will always work for the rights of the people. We do not want another administration where the president can unilaterally call the shots on all matters. We need a democratic system,” he continued.

JP MP Ahmed Sameer added that the coalition agreement signed by Gayoom and Deputy Leader Abdu Raheem explicitly stated that the agreement will be in effect until November 11, 2018.

“So how can they just break up the coalition like this? What more is there to say about people like them? Where is the justice in these actions of theirs?” Sameer asked.

“Parliament must be led by PPM”

Speaking to local media yesterday, President Yameen said he believed Gasim must withdraw from the speakership claiming it to be the “general norm around the world” for the majority party to hold the speaker’s seat.

Contrary to the JP’s claims, he claimed that the PPM had sent Gasim a number of letters and held discussions on the matter.

The PPM yesterday announced that it planned to nominate the party’s parliamentarians Abdulla Maseeh and Abdu Raheem Abdulla for speaker and deputy speaker, respectively.

Current Deputy Speaker of parliament Ahmed Nazim – affiliated with the PPM – has also expressed interest in the position, though Yameen has expressed confidence that Nazim would not run against the party’s wishes.

Meanwhile, the deputy leader of second coalition partner the Maldivian Development Alliance (MDA), Ahmed Amir, has also announced he will be running for speaker.

Saying that the PPM announced its nominees after he had already decided to contest,  Amir said he had no intention of withdrawing his name, though the PPM has promised action against any competing coalition candidates.

The MDP announced last Friday (May 23) that the party’s 25 MPs-elect would back a candidate who support’s the parties policies, including judicial reform, empowerment of local councils as well as the introduction of a progressive income tax and a minimum wage.

Following the signing of three out of the five independent candidates elected to the 18th parliament, the PPM currently has 37 seats, followed by the opposition MDP with 25 seats, the JP with 15 seats, the MDA with five seats, and the religious conservative Adhaalath Party with one seat.

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Maldives accepts India’s leadership role, says President Yameen

President Abdulla Yameen has said that the Maldives accepts India’s leadership role in the international arena and that this special position would benefit SAARC countries.

Yameen’s words came this morning at a meeting with the newly elected Indian Prime Minister Narendra Modi during which both leaders agreed to further strengthen bilateral relations.

Yameen is in India on a two-day state visit to attend Modi’s inauguration ceremony, held yesterday evening. The Indian prime minister invited leaders from all SAARC countries to the ceremony, holding  bilateral talks each of them. Yameen today congratulated Modi and thanked him for the invitation.

According to the President’s Office of Maldives, Modi highlighted in particular the close relations between the two countries under President Maumoon Abdul Gayoom’s leadership, and expressed his confidence that it could be “restored” in the future.

A focal point of the meeting appeared to be the importance of strengthening the SAARC organisation, with Yameen told Modi that inviting all SAARC leaders to his inauguration – particularly from Pakistan – was a display of the importance with which he is treating the association.

According to the President’s Office, PM Modi told Yameen that making SAARC a powerful organisation in the region should be prioritised over bilateral issue among its countries.

Noting the importance of making SAARC an internationally reputed organisation, Modi said that the group should take initiative in bringing global warming and its negative impact on the environment to global attention, suggesting that SAARC should be expanding the renewable energy industry.

‏As Yameen thanked India for its continued cooperation with the Maldives, Modi assured he would provide assistance in providing  higher education opportunities in India for Maldivian students .

He said the number of Indian tourists visiting the Maldives have been increasing and his government will fully cooperate with initiatives to promote Maldives tourism in India, particularly in regions like Kerala and Gujarat. Indian visitors to the Maldives increased by nearly 20 percent in 2013, while still accounting for only 3.4 percent of total arrivals.

Foreign ministers and high commissioners from both countries were also present at the meeting.

In addition to President Yameen, former presidents Maumoon Abdul Gayoom and Mohamed Nasheed, as well as Adhaalath Party president Sheikh Imran Abdulla, have congratulated Modi upon his election victory.

Maldives’ long standing bilateral relations with India were strained following the controversial power transfer of February 2012  and President Dr Mohamed Waheed’s assumption of power, particularly following the premature cancellation of Indian Infrastructure company GMR’s $511 million airport project in 2012.
While President Yameen’s Progressive Party of Maldives (PPM) formed part Waheed’s national unity government, since taking office in November 2013, he  has made the strengthening of Maldivian-Indian ties a priority.

In January 2014, Yameen met the former Prime Minister Dr Manmohan Singh in India – his first official trip out of Maldives following his inauguration.  Prior to that in December 2013 his Defence Minister Mohamed Nazim visited India and met with senior government officials and reassured bilateral defence cooperation.

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