Tag: MP Gasim Ibrahim

Parliament passes MVR 15.3 billion budget for 2013

Parliament today passed a MVR 15.3 billion (US$992 million) state budget for 2013, reduced by more than MVR 1 billion (US$64.8 million) from the MVR 16.9 billion (US$1 billion) proposal submitted by Finance Minister Abdulla Jihad last month.

The budget was passed with 41 votes in favour, 28 against and no abstentions. MPs of the formerly ruling Maldivian Democratic Party (MDP) voted against the budget.

In addition to changes imposed by the Budget Review Committee, the estimated budget was passed with eight amendments approved at today’s sitting.

Among the amendments voted through included the scrapping of plans to revise import duties on oil, fuel, diesel and staple foodstuffs, as well as any item with import duty presently at zero percent.

An amendment instructing the government to conduct performance audits of the Human Rights Commission and Police Integrity Commission and submit the findings to parliament was passed with 53 votes in favour, ten against and four abstentions.

Amendments proposed by MDP MP Ali Waheed to shift MVR 100 million (US$6.5 million) to be issued as fuel subsidies for fishermen and MVR 50 million (US$3.2 million) as agriculture subsidies from the Finance Ministry’s contingency budget was passed with 68 votes in favour.

A proposal by Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Maussom to add MVR 10 million (US$648,508) to the budget to be provided as financial assistance to civil society organisations was passed with 57 votes in favour and three against.

Budget review

Presenting the budget report (Dhivehi) at Tuesday’s sitting, Budget Review Committee Chair MP Gasim Ibrahim said the committee held 31 meetings, spent 45 hours studying the proposed budget and met senior officials from 27 ministries and state institutions.

The omissions approved by the committee to reduce the budget from MVR 16.9 billion to MVR 15.3 billion were largely made from recurrent expenditure, the Jumhooree Party (JP) Leader said.

While Finance Minister Abdulla Jihad had agreed to MVR 1 billion in cuts, the committee decided to trim the budget “by a little bit more than that,” according to Gasim.

The committee approved cuts amounting to a total of MVR 1.6 billion (US$103.7 million).

However, he added, the committee added MVR 389 million (US$25.2 million) for infrastructure projects such as harbours, sewerage and water for islands.

The budget items that the committee made cuts to included overtime pay (50 percent), travel expenses (50 percent), purchases for office use (30 percent), office expenditure (35 percent), purchases for service provision (30 percent), training costs (30 percent), construction, maintenance and repair work (50 percent) and purchase of assets (35 percent).

The committee estimated that the cuts to recurrent expenditure would amount to MVR 1 billion (US$64.8 million) in savings.

The committee also instructed the Finance Ministry to reduce an additional MVR 605.7 million (US$39.2 million) from office budgets.

On the measures proposed by the Finance Committee to raise revenue, the committee approved revising import duties, raising the Tourism Goods and Service Tax (T-GST) from eight percent to 12 percent in July 2013, increasing airport service charge from US$18 to US$25, leasing 14 islands for resort development and imposing GST on telecom services.

The Finance Ministry had however proposed hiking T-GST from 8 to 15 percent in July 2013 and raising airport service charge or departure tax from US$18 to US$30.

The committee also decided to limit loans obtained in 2013 to finance the budget to MVR 2 billion (US$129.7 million) and prohibit the government from taking loans for development projects with an interest rate higher than seven percent.

The government has meanwhile been asked to provide details of the loans and guarantees planned for 2013 for parliamentary approval as required by amendments brought to the Public Finance Act in 2010.

Professional opinion from MMA and Auditor General’s Office

According to the Budget Review Committee report, the Maldives Authority Authority (MMA) advised the committee to reduce total expenditure to MVR 15 billion and attempt to reduce public debt.

The central bank warned that the projected deficit in the 2013 budget was likely to adversely affect the foreign exchange market and foreign currency reserves.

The MMA also advised the committee to pass a budget that would “facilitate” the Maldives joining the International Monetary Fund’s (IMF’s) “Staff Monitoring Programme.”

The programme would provide access to loans from the international debt capital market, the MMA said.

Speaking to press at the conclusion of a visit by an IMF mission last month, head of the delegation Koshy Mathai explained that the requested “Staff Monitoring Programme” would not involve disbursement of funds from the IMF.

“We would basically see how the government is doing against its own targets – it would set targets for itself for performance of these different economic areas – and then if the track record is built up and things are going well, then maybe later we could discuss having a programme where money is disbursed,” Mathai said.

Meanwhile, in its professional opinion on the budget, the Auditor General’s Office expressed concern with the public sector investment programme (PSIP) being formulated without either a national development plan or population consolidation policy.

Likes(0)Dislikes(0)

President Waheed rejects JP’s proposition to reinstate sacked Transport Minister

President Mohamed Waheed Hassan has refused to reinstate the sacked Minister of Transport Dr Ahmed Shamheed and has requested the Jumhoree Party (JP) to propose a candidate for the job.

President of the JP Dr Ibrahim Didi confirmed the decision to local media, stating that the party had received an official letter from the President’s Office informing of the decision to not to accept Shamheed for the post.

Didi added that it was now up to party leader MP Gasim Ibrahim to decide whether to propose a new name, since it was he who had proposed Shamheed to the position in the first place.

The sacked minister, who on local media claimed he had “several differences” with the President, was removed from cabinet last week following the announcement of the extension of his party leader’s Maamigili Airport lease for 99 years.

Maamigili Airport is the country’s first private airport, opened on October last year, and owned by the Villa Group whose chairman is also the leader of government-aligned JP, MP Gasim Ibrahim. The airport had initially been leased to the business tycoon for a period of 30 years.

The re-extension of the lease period of the private airport was met with severe criticism from both the opposition Maldivian Democratic Party (MDP) and some government-aligned political figures.

However, Shamheed – whose decision to extend the lease period cost him his cabinet position – maintained that the decision on the extension of the lease was approved by the government’s Economic Committee a week before.

“Documents to extend the lease of Maamigili Airport for 99 years were sent to the transport ministry by [former President Mohamed] Nasheed’s government. But the current government delayed the matter. The present government only endorsed the decision. It was decided by the NPC (National Planning Council) during the former government,” he said at the time.

The concerned Economic Committee included Minister of Finance Abdulla Jihad and Minister of Fisheries and Agriculture Ahmed Shafeeu, Housing Minister Dr Mohamed Muizzu, Environment Minister Dr Mariyam Shakeela and Tourism Minister Ahmed Adheeb. However surprisingly, the committee did not include the Minister for Economic Development Ahmed Mohamed from the Dhivehi Rayyithunge Party (DRP).

Spokesperson for the Presidents Office, Abbas Adil Riza, confirmed the dismissal of Minister Shamheed on social media, where he tweeted: “Transport Minster Dr Shamheed has been relieved from his duties today. Defense Minister Nazim will be the care taker until replaced by JP.”

Riza who is also a member of JP, confirmed that the cabinet seat would be reserved for the JP, currently the third largest party in terms of membership in the ruling coalition. As per the coalition agreement, the party is allotted with two cabinet slots including that of the Ministry of Transport and also the Ministry of Gender and Human Rights.

The dismissal of ex-minister Shamheed was met by criticism from the JP, which described it as a “cowardly act”.

In a statement released following the dismissal, the JP said it would take “necessary action” following an inquiry, and expressed “serious concern” with statements in the media by officials from the President’s Office regarding the reasons for Shamheed’s dismissal.

Some local media outlets quoted Presidents Office Media Secretary, Masood Imad, as stating that Shamheed was dismissed following several inconsistencies, which included the extension of lease of the private airport.

However, the Presidents Office Spokesperson Riza at the time declined to reveal the reason behind the dismissal of the minister.

An unnamed JP official alleged to Villa TV (VTV) – a media station owned by the Villa Group  – that Dr Shamheed was sacked because of his opposition to the recently concluded sale of a 30 percent stake in the Addu International Airport Company Ltd (AIA) to another tourism tycoon, ‘Champa’ Hussain Afeef.

The JP leader had alleged corruption in the deal and claimed the valuation of the 30 percent stake was too low.

The JP senior official meanwhile told VTV that Shamheed was removed to allow Champa Afeef to control the airport project, claiming that the “cowardly” act of sacking the minister was intended to divert media and public attention from the Addu airport controversy.

JP’s future in the coalition in question

The recent dismissal of the JP endorsed minister has sparked speculation as to the future of the JP in the current government coalition. JP MP Alhan Fahmy told Minivan News on Wednesday that he believed Shamheed should be reinstated if “Dr Waheed wants to sustain the national unity government.”

“I don’t believe [Waheed] was unaware of the decision [to dismiss Dr Shamheed], and it is of his own irresponsibility if he says so,” Fahmy said “A minister shall not be dismissed under the existing political situation unless it is associated with proper reasoning.”

Speaking at the press conference on Tuesday, Fahmy said Waheed met Gasim on Monday night and what he had to say implied that the President was “not fully aware of how [the dismissal] happened.”

After looking into the dismissal, Fahmy said the JP believed it was done “without a legal basis” as the JP Minister had not breached any laws or official procedures but was sacked “as a result of what the minister did to implement a decision made by the government.”

“Therefore, as we believe that this happened because the President was somewhat confused or misinformed, and after making certain of all the processes that were followed with regard to [the dismissal], the Jumhoree Party has asked the President to reinstate Dr Shamheed to the cabinet before next Sunday,” Fahmy said.

The government’s actions in sacking the minister provided opportunity to level corruption allegations against the JP’s leader who has also been announced to be the party’s presidential candidate, and were “highly damaging” to the party, the MP for Feydhoo added.

“Trust and confidence affected” – JP MP Alhan Fahmy

Speaking to Minivan News following the dismissal, Fahmy said that the letter sent by the Presidents Office did not mention “any reasonable grounds” for the dismissal of the minister.

“The party has yet not decided on how it will proceed following the response given by the President’s Office. The party council will meet very soon to decide on the matter,” he said.

Asked if the President’s decision could mean the party leaving the government coalition, Fahmy stated that the dismissal was “unacceptable” and it had affected the “trust and confidence” between the government and the party.

“I would not definitely say that the party will leave the coalition and join the opposition. But there is a possibility as you would know that political affiliations between parties do not always remain permanent,” Fahmy said.

“The party has not officially penned a coalition agreement. However, after what happened on February 7, the incoming president announced that the new government would be a national unity government. So the coalition was formed on certain moral values and grounds, which this party would never allow to be compromised,” he added.

He also raised doubts over President Waheed’s commitment towards the “moral value and grounds” of a national unity government and instead alleged that the President had now begun working in the interests of “his own party and political future”.

“He won’t acknowledge his own mistakes” – GIP Deputy Leader Zaki hits back at Fahmy’s remarks

Speaking to Minivan News, Deputy Leader of President Waheed’s Gaumee Iththihaadh Party (GIP), Ahmed ‘Nazaki’ Zaki, brushed off Fahmy’s comments describing him as being involved in “party-factionalism”.

“I refuse to believe Fahmy’s remarks that there is a loss of trust and confidence. The JP is a valuable partner in our coalition. I just don’t get it when Fahmy speaks about loss of confidence because JP leader Gasim Ibrahim has explicitly told us that he wants to remain in the government coalition,” he said.

Zaki went onto describe Gasim as “one of the most prominent figures” in bringing democracy to Maldives, and said the government always considered him a “valuable asset” in the national unity government.

However, Zaki admitted that he did not understand why Gasim was trying so hard to reinstate Shamheed when there were “many other capable people” in his party.

Asked for the reason behind Shamheed’s dismissal, Zaki said there were “many reasons” but declined to go into details. He also responded to Fahmy’s claims that the dismissal was not based on “reasonable grounds” by saying it was human nature that “he would not acknowledge his own faults”.

The former High Commissioner to Malaysia went onto state that unlike former President Mohamed Nasheed’s government, President Waheed would not sack a person unless there were severe discrepancies, and Shamheed’s sacking was no different.

Likes(0)Dislikes(0)

Dismissal of Transport Minister “cowardly act”, says JP official

The Jumhore Party (JP) has said that it is “investigating and very closely looking into the abrupt removal of the party’s only cabinet member, Minister of Transport and Civil Aviation, Honourable Dr Ahmed Shamheed.”

In a statement on Thursday night, the government-aligned JP said it would take “necessary action” following an inquiry, expressing “serious concern” with statements in the media by officials from the President’s Office regarding the reasons for Shamheed’s dismissal.

An unnamed JP official alleged to Villa TV (VTV) – owned by JP Leader and MP for Maamigili Gasim Ibrahim – that Dr Shamheed was sacked because of his opposition to the recently concluded sale of a 30 percent stake in the Addu International Airport Company Ltd (AIA) to tourism pioneer ‘Champa’ Hussain Afeef.

JP Leader Gasim Ibrahim had alleged corruption in the deal and claimed the valuation of the 30 percent stake was too low.

The JP senior official meanwhile told VTV that Shamheed was removed to allow Champa Afeef to control the airport project, claiming that the “cowardly” act of sacking the JP minister was intended to divert media and public attention from the Addu airport controversy.

Dr Shamheed was sacked immediately after an agreement was signed to extend the lease of the Maamigili airport – owned by JP Leader Gasim’s Villa Company – for 99 years.

The JP however noted that the decision was unanimously approved by the government’s Economic Committee on November 1. In addition to Shamheed, the Economic Committee consists of Minister of Finance Abdulla Jihad and Minister of Fisheries and Agriculture Ahmed Shafeeu, Housing Minister Dr Mohamed Muizzu, Environment Minister Dr Mariyam Shakeela and Tourism Minister Ahmed Adheeb.

Government Spokesperson Abbas Adil  Riza told Minivan News on Thursday that despite Shamheed’s dismissal, the decision to extend the lease had “not yet” been reversed.

Abbas had tweeted that the cabinet seat would be reserved for JP, the third largest party in terms of membership in the ruling coalition.

Meanwhile, in a press conference today, MP Gasim Ibrahim said that he did not believe President Dr Mohamed Waheed Hassan Manik could have been unaware of the ministerial economic committee’s decision to extend the lease, which was finalised at a meeting at the President’s Office on November 1.

For President Waheed to be unaware of a decision “approved by half the cabinet” was “a joke”, he said.

Gasim said Villa has spent more than MVR 1.4 billion (US$90 million) on developing the airport at Maamigili in addition to more than MVR 500 million spent for the island’s development.

The airport was leased by the government for an annual rent of US$24,000, the Maamigili MP revealed.

Dr Shamheed meanwhile told Sun Online following his dismissal that he believed he was sacked for differences of opinion with the President on a number of issues, including his opposition to the sale of the AIA stake and the agreement with Nexbis to install a border control system.

On November 5, Dr Shamheed tweeted that there was “no justification” for the valuation of an asset worth US$150 million for US$13 million.

He also criticised the sale of the AIA stake as “irresponsible”.

Likes(0)Dislikes(0)

Addu airport stake sold to Champa Afeef’s Kasa Holdings

An agreement was signed last night to sell 30 percent of the Addu International Airport Company Pvt Ltd (AIA) to tourism pioneer ‘Champa’ Hussain Afeef’s Kasa Holdings to raise finances to develop the Gan airport in Addu City.

AIA is a joint venture formed by the Gan Airport Company Ltd (GACL), Maldives Airports Company Ltd (MACL) and the State Trading Organisation (STO).

The airport infrastructure and facilities in the uninhabited Gan island of the southernmost Seenu atoll was leased to the government-controlled consortium for 50 years with a mandate to develop and operate the asset as an international airport.

The agreement to sell a 30 percent stake in AIA for MVR 60 million (US$3.9 million) was meanwhile signed on behalf of the company by Managing Director Shahid Ali – also Managing Director of STO – and ‘Champa’ Mohamed Moosa on behalf of Kasa Holding.

The agreement was signed in spite of a public threat by Jumhoree Party (JP) Leader and MP for Alif Dhaal Maamigili, Gasim Ibrahim, that Shahid Ali would be sacked from his post if the sale went through.

Gasim, who had previously alleged corruption in the deal, told reporters on Sunday night that Shahid could not “stay in his post if he signs it,” according to newspaper Haveeru.

He also warned that the STO MD could “not live on this island” if the sale was finalised.

Shahid meanwhile reportedly said after the signing ceremony last night that the agreement was signed after the Finance Ministry and Public Enterprises  Monitoring and Evaluation Board (PEMEB) gave clearance for the sale.

Shahid noted that Afeef’s stake in the seaplane operator Trans-Maldivian Airways (TMA) would be an advantage in the development of the Gan airport.

Following the signing ceremony, Shahid told private broadcaster Raajje TV that the sale was made after a decision by the AIA board of directors, a public tender, evaluation of shortlisted candidates and “authorisation from the Finance Ministry”.

Proceeds from the sale would finance “a major project to develop Gan airport,” he said, including expanding the runway and repairing damages in the airport as well as establishing a new drainage system and a seaplane base.

“The estimate of the consultants for all this is US$40 million. So even if we obtain loan finance or contractor finance for this US$40 million project, we would need an equity injection,” he explained. “Therefore, we need an investment to get this equity injection – a party that would give this money to the company as an equity injection.”

The AIA board in consultation with the government decided to invite proposals from Maldivian companies, Shahid said, adding that Kasa Holdings was the only local company to submit a bid.

Shahid stressed that Kasa Holdings was sold a stake in the management company AIA and not the Gan airport.

On the allegations of corruption by the government-aligned JP, Shahid insisted that the sale was made “through an open and transparent bidding process,” adding that AIA would “welcome” an investigation.

The Anti-Corruption Commission (ACC) revealed to local media today that it commenced an investigation into the sale of the AIA stake last month based on assertions in the press.

ACC Deputy Chair Muaviz Rasheed told newspaper Haveeru that the investigation would be completed this week.

Letter to the President

Speaking in parliament yesterday, JP MP Alhan Fahmy claimed that the “self-interest” of Dhivehi Qaumee Party (DQP) was behind the sale of the AIA stake, alleging that DQP senior officials Imad Solih and the party’s leader and Special Advisor to the President Dr Hassan Saeed were complicit in corrupt dealing.

“The government should not sign this agreement. This case should be investigated at a national level,” he said, claiming that the 30 percent stake “could be sold tomorrow to an Israeli party.”

“Addu Atoll Gan is a military strategic location the whole world is watching,” he claimed, calling on the government to reconsider the decision.

Alhan told Raajje TV last night that JP would submit the case to the ACC and parliamentary committees, repeating the corruption allegations and questioning the valuation of the 30 percent stake.

Alhan claimed that Dr Saeed had asked JP Leader Gasim not to oppose the deal at a meeting at the President’s Office yesterday.

In a letter to President Dr Mohamed Waheed Hassan Manik last week, Gasim contended that MVR60 million for 30 percent of AIA’s share was “a very small amount” as the value of the airport would exceed MVR 3 billion (US$200 million).

Moreover, while US$44 million had been estimated as the cost of developing the airport, the JP MP claimed that the project could be completed with US$24 million.

An “open tender just in China alone” for the project would suffice to prove his assertion, Gasim wrote in his letter to Dr Waheed.

Gasim warned that Kasa Holdings would be positioned to acquire 70 percent of AIA by moving to sell 40 percent to a buyer of its choice.

“If a member representing the government does not attend a board meeting held to sell this 40 percent, Kasa Holdings will have the power to sell 40 percent of shares to whoever it pleases at whatever price it wants,” Gasim wrote. “In light of my experience on how these [deals] are completed, I have to say that the ultimate result would be the remaining unsold 40 percent being sold to a buyer of Kasa’s choice and the opening up of the opportunity for Kasa Holdings to control 70 percent, and within this opportunity, for [Kasa] to sell 51 or more percent of AIA to another foreign party.”

Gasim further contended that the move would pose a risk to national security, as the government would have no legal powers over the company.

Cancelling the agreement would mean paying the foreign party a “huge amount in compensation,” he claimed.

Gasim insisted that the Gan aiport should be developed by MACL and offered in his letter to reclaim land for the project free of charge “using my own dredger, employees and machinery with the government only providing oil.”

Likes(0)Dislikes(0)

Gasim’s Royal Island Resort sues government

Villa Hotels’ Royal Island Resort and Spa, owned by Jumhoory Party (JP) Leader and MP ‘Burma’ Gasim Ibrahim has sued the government and requested the Civil Court to cancel an order by the Tourism Ministry to close the resort’s Spa over allegations of prostitution operations.

Today the Civil Court issued a warrant to cancel the Tourism Ministry’s order and permit spa operations until the suit against the government is concluded.

Speaking for the government at this morning’s hearing, Attorney General Office’s lawyer Maryam Shunana told the Judge that issuing the warrant was equivalent to closing the entire suit, Haveeru reports.

Former Attorney General Azima Shukoor spoke on behalf of the resort.

Shukoor argued that according to the agreement made between the resort and the government, the resort has 30 days to correct any issue found by the government. If the resort fails to correct the issue within that time frame, the government may fine the resort US$10,000 (Rf154,200), reports Haveeru.

Shukoor claimed that the government’s order was given prior to any investigation and was based on allegations alone. She requested that the ministry’s order be cancelled.

She further requested for the warrant to keep the Spa open until the suit reaches a verdict, adding that if the warrant was not issued the resort risked a great loss.

Deputy Solicitor General Ahmed Usham asked whether the Spa was still open–Shukoor replied that it was functioning. Usham responded that losses to the resort should not be raised in court if the Spa was not closed according to the Ministry’s order.

Yesterday, Press Secretary for the President Mohamed Zuhair said that the government has decided to shut down all the massage parlors in the Maldives and is considering banning the trade of alcohol and pork throughout the Maldives in response to demands made by protestors on December 23.

Progressive Party of Maldives (PPM) Spokesperson and MP Ahmed Mahlouf called on the coalition of religious NGOs and opposition parties to take actions against the government’s decision to disrupt Gasim’s business operations.

He warned that the government will continue to disrupt other businesses run by opposition supporters.

Gasim has filed cases regarding the other four Villa resorts which were requested to close their spa operations. However, no hearings have yet been conducted.

Press Secretary Zuhair yesterday informed Minivan News that Gasim was pretending to be a victim only for political gain, and that the government’s decision was not intended to harm any individual.

He also said that spas Gasim’s resort were not the only ones asked to close operations, but that some spas and massage parlors in Male’ have also been asked to shut down business on similar charges.

Likes(0)Dislikes(0)

ACC clears Gasim of wrongdoing as finance minister

The Anti-Corruption Commission (ACC) has cleared former Finance Minister Gasim Ibrahim of wrongdoing in the leasing of ‘Red Crescent Six’ shop.

Haveeru reports that the commission had investigated a complaint alleging that the shop was rented out in violation of bidding rules.

While the investigation did not uncover any evidence of corruption, a statement from the ACC however notes that the lack of regulations governing leasing and renting of state property caused legal problems for the commission.

The statement reiterates calls for the Finance Ministry to amend regulations under the Finance Act to specify guidelines for leasing state property.

Likes(0)Dislikes(0)