Tag: maldives

Interpol Red Notice issued for F-Tech fraud case suspect

Interpol has issued a red notice for Mohamed Abdullah, wanted by Maldives Police in connection to the charges of defrauding the health ministry out of Rf 11.8 million (US$761, 290).

The 41 year-old was identified as the Managing Director of F-Tech Solutions, the company which allegedly doctored invoices and delivery notes and forged signatures to collect payment on medical supplies that have not been received by the health ministry to this day.

According to the Interpol website, Abullah is wanted for “Fraud, Counterfeiting/forgery”.

Auditor General Ibrahim Niyaz requested police investigate the fraud charges on April 12, following a special audit into the medical supply procurement agreement signed with F-Tech solutions in 2010.

Under the agreement, F-Tech Solutions was supposed to supply medical consumables and laboratory equipment worth Rf 12.8 million (US$831,169) but the audit revealed that the company had only supplied Rf 930, 512 (US$60,033) worth of goods.

Meanwhile, auditors found that the company forged signatures on delivery notes and invoices claiming goods had been supplied to the health ministry. Even on the instances goods were delivered, the prices listed for goods were much higher than those pledged in the contract.

“This office notes that F- Tech Solutions forged signatures on some delivery notes and invoices. Furthermore, the health ministry, hospitals and health centres have not received any of the goods said to have been delivered on the delivery notes. While the health ministry’s supply department has received goods noted on one invoice, the prices noted on the invoice are extraordinarily higher than prices pledged in the contract document,” the report said.

According to the Auditor General, tender evaluation board awarded the contract to F- Tech Solutions even though the company had no prior experience in supplying medical equipment, had lied about previously supplying medical equipment to the health ministry in bidding documents, and had no import licenses or permits from the Maldives Food and Drug Authority to distribute medical supplies.

The contract was also signed against the  advice of Anti Corruption Commission’s (ACC), which at the time had raised concerns over F-Tech’s lack of necessary licenses and permits.

The tender evaluation board awarded the contract to F- Tech Solutions even though the company had no prior experience in supplying medical equipment, had lied about previously supplying medical equipment to the health ministry in bidding documents, and had no import licenses or permits from the Maldives Food and Drug Authority to distribute medical supplies, the report noted.

According to the report, the State Minister of Finance at the time opened a Local Letter of Credit facility (LC) worth the total contract amount for F-Tech Solutions at the State Bank of India (SBI). The Auditor General said the move contravened the Maldives Finance Act which states only 15 percent of total contract value can be paid out in advance.

Further, although the contract was made between F-Tech and the health ministry, the state minister for finance authorised finance ministry staff instead of health ministry staff to sign delivery notes, the report said.

Niyaz said the state minister’s decision to establish a LC facility “opened up the opportunity” for payments to be made for unsupplied goods and “weakened the state’s internal control mechanisms.”

A Deputy Director General at the Ministry of Finance and Treasury authorised payment to F-Tech without confirming receipt of goods with the health ministry, even though SBI had noted discrepancies between the invoices and delivery notes. Nine of the 21 invoices were issued a month before the date printed on delivery notes, the report said.

Moreover, the Health Ministry did not annul the contract with F- Tech Solutions as per the agreement even though the company had failed to supply medical equipment for the period October – December 2011.

Instead, the ministry had procured the consumables itself and told F- Tech the amount would be deducted from the total payment to the company. However, no such deduction took place.

Niyaz recommends filing fraud charges against F- Tech Solutions, and filing negligence charges against the Tender Evaluation Board, and relevant Health Ministry and Finance Ministry officials. The report does not name the accused.

However, according to local media, F–Tech has six directors: MD Mohamed Abdulla, Director of Operations Abdulla Rashid; Director of Administrations Abdulla Shafeeg; Director of Sales and Marketing Ahuyad Hisaan; Director of Logistics Rilwan Shareef and Director of Human Resources Fathimath Shiuna.

Of the six, Shareef and Shiuna are prominent activists of the former ruling Maldivian Democratic Party (MDP) activists.

Police Sub-Inpector Hassan Haneef today confirmed that an Interpol notice was issued for Abdullah after attempts made by local police to find him were unsuccessful.

When asked if any one has been arrested in relation to the case Haneef responded:  “We have questioned some people regarding this case. But no arrests have been made so far.”

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Accounting for natural wealth gains world traction: Businessweek

“Putting a price on a natural bounty long taken for granted as free may sound impossible, even ridiculous. But after three decades on the fringes of serious policymaking, the idea is gaining traction, from the vividly clear waters of the Maldives to the sober, suited reaches of the World Bank,” writes Katy Daigle for Businessweek.

“As traditional measures of economic progress like GDP are criticized for ignoring downsides including pollution or diminishment of resources such as fresh water or fossil fuels, there has been an increased urgency to arguments for a more balanced and accurate reckoning of costs.

That is particularly so as fast-developing nations such as India and China jostle with rich nations for access to those resources and insist on their own right to pollute on a path toward growth.

Proponents of so-called “green accounting” — who will gather in Rio de Janeiro this week for the Rio Earth Summit — hope that putting dollar values on resources will slam the brakes on unfettered development. A mentality of growth at any cost is already blamed for disasters like the chronic floods that hit deforested Haiti or the raging sand storms that have swept regions of China, worsening desertification.

Environmental economists argue that redefining nature in stark monetary terms would offer better information for making economic and development decisions.

That, they say, would make governments and corporations less likely to jeopardize future stocks of natural assets or environmental systems that mostly unseen make the planet habitable, from forests filtering water to the frogs keeping swarming insects in check.

If the value of an asset like a machine is reduced as it wears out, proponents say, the same accounting principle should apply to a dwindling natural resource.

‘Environmental arguments come from the heart. But in today’s world based on economics it’s hard for arguments of the heart to win,’ said Pavan Sukhdev, a former banker now leading an ongoing project that was proposed by the Group of Eight industrialized nations to study monetary values for the environment.

That study, started in 2007, has estimated the world economy suffers roughly $2.5 trillion to $4 trillion in losses every year due to environmental degradation. That’s up to 7 percent of global GDP.

‘We need to understand what we’re losing in order to save it,’ Sukhdev said. ‘You cannot manage what you do not measure.’

Using the same accounting principles, some countries are already changing policy.
The Maldives recently banned fishing gray reef sharks after working out that each was worth $3,300 a year in tourism revenue, versus $32 paid per catch. Ugandans spared a Kampala wetland from agricultural development after calculating it would cost $2 million a year to run a sewage treatment facility — the same job the swamp does for free.

But environmental accounting still faces many detractors and obstacles. Among them is resistance from governments who might lack the resources and expertise to publish a “greened” set of national accounts alongside those measuring economic growth.

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Two thirds of MDP membership vote in party’s single candidate elections

Two-thirds of the MDP’s 48,181-strong membership base turned out to vote in the party’s single-candidate internal elections, held over the weekend to determine its presidential candidate.

Former President Mohamed Nasheed ran unopposed in the party’s election of its presidential candidate, however the party’s regulations require any candidate to receive at least 10 percent of the party’s vote to secure the nomination.

Following the final count of the 258 ballot boxes, Nasheed recorded 31,798 votes in favour to 269 against his being the party’s presidential candidate.

Chairperson candidate Moosa ‘Reeko’ Manik had 29,044 votes in favour to 2160 against, while Deputy Chairperson candidate Ali Shiyam had 563 in favour to 7 against.

The MDP has maintained calls for early elections following its ousting from power on February 7, with Nasheed resigning during a police and military mutiny under what he subsequently claimed was duress. The party has held regular demonstrations since that time calling for early elections.

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CNI’s new co-chair revealed to be retired Singaporean judge G.P. Selvam

The President’s Office has revealed the name of the retired Singaporean judge who will join the reformed Commission of National Inquiry (CNI), which has today been reconstituted by presidential decree.

The name of the judge who will co-chair the commission with Ismail Shafeeu was revealed to be Govinda Pannir Selvam.

GP Selvam is a former Supreme Court Judge who served in the Singapore Supreme Court between 1994 and 2001.

According to the Singapore Court of Maritime Arbitration (SCMA), where Selvam has served as a panel member, the judge graduated from the University of Singapore in 1968 and will celebrate his 76th birthday in July. Selvam arrived in Male’ this morning.

Local media today revealed that the judge had arrived, without mentioning his name, whilst the President’s Office did not reveal the judge’s identity until this afternoon, saying that there was to be an official ceremony this evening.

The name of the judge was finally revealed on the President’s Office website at around 6:30pm.

President’s Spokesperson Abbas Adil Riza said that the commission was now “definitely” ready to begin work on Thursday and would comprise the previous members of the commission – Ismail Shafeeu, Dr Ibrahim Yasir, and Dr Ali Fawaz Shareef – as well as the Nasheed nominee Ahmed ‘Gahaa’ Saeed and, finally, G.P. Selvam.

Abbas also stated that there were to be two resource persons added to the commission to support its activities, including a retired Indian judge. Abbas said that anybody who wished could come and observe the commission’s work, just as with the previous manifestation of the CNI.

The President’s Office also stated that representatives from the United Nations and the Commonwealth will advise the CNI’s work.

Former President Nasheed yesterday alleged that the government was intentionally delaying the revision of the CNI and deceiving the international community.

The initial deadline for the reform was mid-May. After agreements were reached with the Commonwealth, a deadline of June 1 was given to approve former President Mohamed Nasheed’s nomination to the commission.

The MDP and the government, however, were unable to agree on  suitable candidate until June 4 after the MDP’s first 11 suggestions.

Abbas was today reported in local media as saying that Nasheed’s comments were merely intended to deflect criticism from the MDP’s internal elections, which Abbas claimed had “no spirit of democracy” after Nasheed won the MDP’s presidential nomination unopposed.

MDP spokesman Imthiyaz Fahmy today also questioned the reasons for the delay in signing the resolution agreed with the Commonwealth.

“The government is deliberately delaying the process of forming the new inquiry commission as much as they can,” he said.

The reforms have been instigated largely at the behest of the Commonwealth Ministerial Action Group (CMAG), which is scheduled to hold a teleconference this Wednesday.

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Government, MDP Chairman, trade threats of jail time

Fresh from his election as Chairman of the Maldivian Democratic Party (MDP), Moosa ‘Reeko’ Manik has said the those found guilty of being involved in what his party alleges was a coup would be jailed for a long time, reports Haveeru.

Moosa’s comments comes two days after the same newspaper quoted the Home Minister and Deputy Leader of the Dhivehi Qaumee Party (DQP) Mohamed Jameel Ahmed as saying that former President Mohamed Nasheed’s crimes would see him go to prison .

Nasheed’s alleged crimes, said Jameel last week, were due to reach the Prosecutor General’s desk within a week.

“[The charges] include the case known to all which is the unconstitutional arrest and subsequent detention of Criminal Court’s Chief Judge. I’m quite certain that Anni (Nasheed) would be found guilty in that case by a court of law,” Jameel claimed in Haveeru.

Moosa responded to these claims today that it is Jameel, amongst others, who will be jailed.

“We will not be afraid of Jameel, we will not be afraid of Habeeb, neither will we be afraid of Nazim,” Moosa is reported to have said.

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Gayoom calls for Muslim World League assistance to protect national peace, order and faith

Former President Maumoon Abdul Gayoom has called for assistance from Islamic Arab countries in developing education and other services in the Maldives, as well to protect the country’s faith by “groups” he alleged are trying to weaken it.

Speaking at the Constituent Council of the Muslim World League in Saudi Arabia, Gayoom said that cooperation from Islamic Arab countries would be vital to fight political and economic challenges currently facing the country, according to the Sun Online news service.

The former president reportedly claimed that the present economic downturn, a loss of peace and order in the country and efforts “by groups of people to weaken people’s Islamic faith”, were among the most pressing challenges presently facing the Maldives.

The Muslim World League is an Islamic NGO said to consist of sixty members representing 30 different nations.

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Government silent over Maldives bankruptcy claims

The government has refused to comment on claims made in local media by leader of the coalition-aligned Jumhoree Party (JP) that the Maldives was now bankrupt and already unable to pay some civil servants.

JP Leader and MP Gasim Ibrahim claimed that despite government efforts, the Maldives was now bankrupt and unable to pay some civil servants after steady economic decline within the nation, according to newspaper Haveeru.

Just last month, Parliament’s Financial Committee revealed that expected revenue for 2012 had plunged 23 percent, whilst spending was set to increase by almost 24 percent.

President’s Office Spokesperson Abbas Adil Riza today said that he was unaware of the bankruptcy comments linked to Gasim and could not comment on the matter, referring Minivan News to Minister of Finance and Treasury Abdulla Jihad.

Both Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls by Minivan News at the time of press.

Although the country’s Civil Service Commission (CSC) said that it had been involved in discussions with the Minister of Finance to try and overcome economic concerns, Chairman Mohamed Fahmy Hassan said that there had as yet been no issue with payments to staff.

“As of last month, all payments have been made in full, however it is the Finance Ministry who would know about the current situation,” he said.

Speaking to Minivan News on Saturday, Maldives National Defence Force (MNDF) spokesperson Major Abdul Raheem said despite some reports circulating to the contrary, he was not aware of any problems with payments to military officers.

Spending review

In attempts to counter its present spending shortfall, the government has unveiled proposals such as a revision to the country’s import duties and Goods and Services Tax (GST) to alleviate its financial difficulties.

The proposals have come under criticism from former finance chiefs serving under the previous government, who allege that such changes “do not make sense”.

Whilst committed to reducing state expenditure, Jihad recently announced his aim to avoid cutting the salaries of civil servants in order to tackle the nation’s budget deficit, seeking to make savings in other areas of expenditure first.

“Civil servants are the lowest ranking of all government employees. We will try to cut all non-wage expenditure by 15 percent. Salaries will be considered after this,” he said at the time.

Despite this pledge, Jihad added that a review of public salaries was set to be conducted by a pay review board that would also focus on independent commissions in order to reach an agreement on the necessary reductions.

Civil Service salaries

Between 2004 and 2009, the country’s fiscal deficit increased exponentially on the back of a 400 percent increase in the government’s wage bill.

The year’s 2007 to 2009 included the most significant largesse as the World Bank found wage expenditure to have increased from Rf 2 billion to almost Rf 5 billion even as revenues began to recede.

According to statistics from the Civil Service Commission (CSC), the number of permanent civil servants has more than halved between 2006 and June 2011.  There has been some contention in the past, however, that the transfer of many civil servants to state owned companies under the previous government masked the true figures.

The Maldives Monetary Authority (MMA) published figures for May that estimated the government will spend Rf2.6billion (US$168 million) on salaries and wages in 2012.

Maldives Bankrupt?

JP Leader Gasim – himself a former finance minister – claimed the Maldives had already been bankrupted after steady economic declines in recent years. He said that the evidence of the country’s troubled economy may not be immediately apparent, but would be seen in the “near future” as the state lacked the “necessary finance” to settle debts, according to Haveeru.

Gasim was reported as saying that “pointing fingers and blaming others” would not provide the country with an economic solution, calling instead for parliament to pass bills to alleviate the economic situation. The nature of these bills were not specified in local media.

Gasim’s phone was today switched off, while JP presidential candidate Ibrahim Didi was not responding to calls.

However speaking to local media, the JP leader added that the “actions of some” had negatively impacted on the nation’s economy, pointing to what he claimed were calls for a boycott of the Maldivian tourism industry.

Gasim, Maldives Vice President Waheed Deen and Progressive Party of the Maldives (PPM) MP Abdulla Jabir are among a number of figures associated with the present coalition government that are included in a list of resort owners included in the Maldives Tourism Advisory (MTA).

The advisory, established by the Friends of Maldives NGO, has a website utilising a ‘traffic light’ system recommending guests avoid resorts alleged by the Maldivian Democratic Party (MDP) to be directly linked in bringing about February’s controversial transfer of power.

Travel associations in the country have in turn criticised the MTA, expressing “serious concern” over what it alleged was a “concerted international campaign against several of the country’s resort operators.

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Independent Institutions Committee investigating CSC Chair for alleged sexual harassment

Parliament’s Independent Institutions Committee has launched an investigation into alleged harassment of a female staff member by the Civil Service Commission (CSC) Chair, Mohamed Fahmy.

Local newspaper Haveeru reported that the incident occurred on May 29 and the victim was a female senior research officer.

According to the paper, both Fahmy and the victim were summoned to committee after the complaint was lodged in the first week of June.

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

According to local media, the woman told her family about the incident, who then called Fahmy. Fahmy then sent her a text message apologising for the incident, reportedly stating, “I work very closely with everyone. But I have learned my lesson this time.”

Speaking to Minvian News today, Fahmy said the allegation was false “and a blatant lie.”

“The female staff member concerned did not win a scholarship to Singapore, and that is why she is doing this in return,” Fahmy said.

He alleged the claim was politically motivated issue, as she would have otherwise filed the case with police and not parliament.

“All I have to say is that it isn’t true,” he added.

Police Sub-Inspector Hassan Haneef said the police cases database did not show that the case had been reported.

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Political changes in Maldives would have gone unnoticed if not for SAARC: World Bank official

A senior official at the World Bank has told a journalism workshop that attention of the world on the recent political strife in the Maldives is a result of the nation’s membership in the South Asian Association for Regional Cooperationn (SAARC), reports Sri Lanka’s Sunday Observer.

“Considering its size, the political changes in Maldives would have gone unnoticed to the rest of the world if not for its position within SAARC,” Diep Nguyen-Van Houtte told the event, organised by the World Bank.

“It received unprecedented attention from the world’s media due to its position within SAARC,” she continued.

Nguyen Van Houtte told the group of journalists from across the region that the smaller SAARC countries could strengthen their positions within the organisation by focussing on the provision of services such as tourism, medicine and IT, rather than trying to compete with the larger members in trade and production.

“Size is no reason for them to be sidelined within the grouping. Take the example of Singapore. Despite being such a tiny country, the South East Asian nation is at the top of World Bank’s development indices”, the Sunday Observer reported Nguyen Van Houtte as saying.

“This proves that small is beautiful and that size is no barrier when it comes to holding your own.”

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