Tag: MP Mustafa

Bank of Maldives reportedly resolves US$58 million debt chase out of court

The Supreme Court has dismissed an appeal filed by two companies linked to Dhivehi Rayyithunge Party (DRP) Leader and President Mohamed Waheed’s vice presidential candidate Ahmed Thasmeen Ali concerning unpaid debts to the Bank of Maldives (BML), after an out-of-court settlement was reportedly reached by both parties.

Lawyers representing Mahandhoo Investments and Kabalifaru Investments – companies with ties to Thasmeen – told presiding Supreme Justice Ali Hameed that they had negotiated a settlement with BML over US$58 million owed to the bank, according to local media.

Mahandhoo and Kabalifaru had appealed a High Court verdict upholding a Civil Court ruling – issued three years and eight months ago – ordering the companies to settle the debt.

BML lawyers confirmed to the court that such an agreement had been reached and that they had no objection to the Supreme Court dismissing the case, private broadcaster VTV reported.

Thasmeen and the Department of Judicial Administration were not responding to calls at time of press.

Minivan News is also awaiting a response from BML, with the bank’s public relations manager Hussain Rasheed claiming he had not received official confirmation that a settlement had been reached in the case at time of press.

Today’s case was heard a day after Ahmed Faiz, a council member of President Waheed’s Gaumee Ihthihaad Party (GIP), was arrested after reportedly trying to sell a sex tape of a Supreme Court Justice.

Media reports have not identified the judge involved in the case. However, potentially compromising photos alleged to depict Supreme Justice Ali Hameed, who oversaw today’s trial of the BML case, began circulating on social media in March this year. The images appear to show the judge in a hotel room with a woman.

Debt claims

In October 2011, the High Court upheld Civil Court verdicts issued in late 2009 ordering Mahandhoo Investments and Kabalifaru Investments to repay millions of dollars worth of loans to BML.

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

The second case involved a US$3.3 million loan issued to Kabaalifaru Investment. A Civil Court verdict on September 30, 2009 ordered the company to settle the debt within 12 months.

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

In September 2009, Maldives Customs filed a case at Civil Court to recover US$8.5 million from Sultans of the Seas in unpaid duties and fines for allegedly defrauding customs to import two luxury yachts, and in February 2010 the court ordered the company to pay MVR 110 million (US$7 million) as fines and unpaid import duties.

MP Thasmeen, this month appointed as the running mate of President Dr Mohamed Waheed ahead of September’s election, is himself expected to face a Supreme Court case over whether his parliamentary seat should be vacated over the issue of unpaid debts.

Former opposition Maldivian Democratic Party (MDP) MP Mohamed Musthafa announced his intention this week to file a case at the country’s apex court requesting a decision on whether Thasmeen should lose his seat for not paying back loans taken from Deputy Speaker of Parliament Ahmed Nazim.

Musthafa also raised issues concerning funding taken from the Bank of Maldives by companies including Mahandhoo Investments and Kabalifaru Investments, in which the DRP Leader is said to be a shareholder.

Musthafa was disqualified from the parliament in 2012 over an unpaid decreed debt, which the court concluded had rendered him constitutionally ineligible to remain in the seat.

As a consequence, he argued there was precedent for the court to declare MP Thasmeen’s Kendhoo Constituency seat vacant.

On June 17, the Civil Court ordered all Thasmeen’s bank accounts of frozen, and ordered immigration to withhold his passport following a case filed by Deputy Speaker Nazim to recover a debt of MVR 1.92 million (US$124,513).

Nazim filed the case requesting enforcement of a Civil Court verdict in April 2011 – upheld by the High Court in April 2013 – ordering the vice presidential candidate to pay back the money.

Nazim, an MP with the Progressive Party of the Maldives (PPM), initially sued Thasmeen in March 2011 to recover the remainder of a loan worth MVR 2.55 million (US$200,000).

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DRP accuses MDP MP Mustafa of terrorism for intimidating former president

The opposition Dhivehi Rayyithunge Party (DRP) have accused Maldivian Democratic Party (MDP) MP Mohamed Mustafa of violating the Terrorism Act with comments intended to “intimidate” former President Maumoon Abdul Gayoom.

Mustafa had recently criticised the former president and DRP ‘Honorary Leader’ for deciding to take part in an official DRP protest, despite earlier claiming to have resigned from politics.

The DRP today said that Gayoom’s participation in protests “does not mean that he is involved in political events. We believe he can take part in the DRP events to strengthen the unity of the party,  as he is the DRP’s Honorary Leader,” the statement said. “We do not believe that those speaking against this have a valid point.”

Mustafa was recently arrested for allegedly bribing a Civil Court Judge.along with Deputy Leader of minority opposition Peoples Alliance party (PA) and Deputy Speaker of the Parliament Ahmed Nazim.

However, the Criminal Court released both MPs due to lack of evidence when of police appealed at the court for an extension of detention.

The Statement said that the former president “deserves the protection afford him under the constitution”, whether other political parties liked it or not.

“That protection cannot be violated when one party dislikes it,” DRP said. “Therefore, the actions of MP Mustafa were to smear the respect of the former president, which violates the Terrorism Act. We will take legal action against him.”

Mustafa replied that DRP’s thinking was “still back in the ancient ages.”

“They are angry because I said that if a former president is becoming affiliated with protests and political events, I might have to take allegations that the person was involved in torture to the court,” Mustafa said. “I also said I will take those issues to the International Court of Justice.”

Mustafa said that to file a terrorism case against him for these comments was “impossible.”

“Maybe it is possible according to the constitution made before Maumoon’s blue constitution,” he said. “One no longer gets sent to the torture chamber for mention the name ‘Maumoon’.”

“There is no treatment or medication for people spoiled with communism,” he added.

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MPs with ‘decreed’ debt face disqualification from parliament

An article of the constitution stating that members of parliament with unpaid debts face immediate disqualification from the Majlis stands to be tested in the Supreme Court, after a spate of cross-party accusations on the subject.

Article 73 [c]of the constitution states, “A person shall be disqualified from election as, a member of the People’s Majlis, or a a member of the People’s Majlis immediately becomes disqualified, if he has a decreed debt which is not being paid as provided in the judgment.”

Deputy Leader of the Dhivehi Rayyithunge Party (DRP) Umar Naseer has filed a case at the Supreme Court claiming that the Maldivian Democratic Party (MDP) MP for Thimarafushi Mohamed Mustafa has an unpaid debt dating back to 1997 and should therefore be unseated.

However the MP has said there was “no doubt” of his eligibility for remaining an MP, dismissing the case filed against him. The Supreme Court has concluded its hearings on the case but has yet to deliver a verdict.

Umar argued that MP Mustafa should not have been eligible to be a candidate in last year’s parliamentary elections ”because he had a proven debt which was not paid.”’

“He has to pay US$31,231.66 (Rf401,326.83) to Bank of Credit and Commerce International (BCCI), which is now bankrupted and its loans and debts have been taken over by the Maldives Monitary Authority (MMA),” Umar said.

Umar said that on 28 August 1997, the civil court ruled that the debt should be payed by MP Mustafa and his company Seafood International Private Limited.

”We raised the issue at the Elections Commission (EC) during the parliamentary elections and the former president of EC said that there was no debt which should be paid by Mustafa,” he said.”That’s why I took it to the Supreme Court.”

But, Mustafa claimed he inquired with the MMA about the outstanding debts.

‘The MMA said that there was no debt that I should pay,” Mustafa said, ”That’s why I ran in the parliamentary elections.”

Mustafa added that the Elections Commission (EC) also investigated the case and ruled that he was eligible.

‘They are trying to defame my character,” he said. ”Umar Naseer is a politically insane person.”

Last month, the Male’ municipality asked the attorney general to file a suit against Mustafa to recover unpaid rent for a plot he leased for a restaurant in artificial beach.

MP Mustafa is one of several MPs who have been variously accused of having outstanding unpaid debts.

Namira Engineering was sentenced last week to pay Rf116,497 to the State Trading Organisation (STO). People’s Alliance MP and Deputy Speaker of Parliament Ahmed Nazim, who was former managing director of Namira Engineering before he resigned from the company, said he had left it three years ago and has no connection with the debt.

On 8 January, a criminal case involving Nazim, Eydhafushi MP Ahmed “Redwave” Saleem and former Atolls Minister Abdullah Hameed, was sent to Prosecutor General’s Office.

On 31st of January, Peoples Alliance party leader Yameen Abdul Gayoom sued the DRP leader-elect Ahmed Thasmeen Ali to recover an unpaid debt.

On 8 December 2009, Sultans of the Sea, a company affiliated with DRP Leader Ahmed Thasmeen Ali, was ordered to pay Rf654 million to Bank of Maldives.

The BML audit report released last year revealed that US$633 million worth of loans was issued on 2008. Of the US$633 million, US$45 million was granted to Sultans of the Seas and US$36 million to Fonnadhoo Tuna Products.

MP Thasmeen did not respond to Minivan News at time of press.

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