Committee approves amendment for state to cover expenses of president’s and vice president’s private residences

A parliamentary committee has approved amendments proposed to the law governing remuneration and benefits for the president and vice president for the state to cover expenses of the pair’s private residences.

If the president and vice president choose not to live in the official residences, the amendments stipulate that the state should provide employees and cover other expenses out of the budget allocated for the official residence.

The amendments submitted by Progressive Party of Maldives (PPM) MP Riyaz Rasheed were sent to a select committee for review following preliminary debate on March 31.

The bill was sent to committee with 29 votes in favour and 17 against with no abstentions. While pro-government MPs voted in favour, MPs of the opposition Maldivian Democratic Party (MDP) voted against the legislation.

After completing the review process in two meetings, the seven-member committee voted unanimously to send the bill (Dhivehi) without any changes to the People’s Majlis floor, where it will be put to a vote.

In addition to Riyaz Rasheed, the select committee comprised of government-aligned Jumhooree Party (JP) MPs Ilham Ahmed, Hussain Mohamed, and Ahmed Sameer along with PPM MP Moosa Zameer, Maldives Development Alliance MP Ahmed Amir, and Adhaalath Party MP Ibrahim Muttalib.

The opposition MDP was not represented in the committee.

Immediately after being sworn in on November 17, President Abdulla Yameen announced he and his vice president – Dr Mohamed Jameel Ahmed –  would be fulfilling a campaign pledge of only taking half of the MVR100,000 (US$6500) salary afforded to the head of state.

“The reason behind this is that Dr Jameel and I both live a simple life. No matter what has been said about us we are not wealthy. We want to be an example to others and lead by example,” Yameen said.

After assuming office, President Yameen announced that he would continue to live in his private residence while Dr Jameel moved into the official vice presidential residence, Hilaaleege.

However, despite Yameen’s decision, the budget allocated for the official residence was increased by MVR2 million (US$130,208) in the state budget for 2014 – rising to MVR19.1 million (US$1.2 million).

In December last year, Parliament’s Budget Review Committee Chair Gasim Ibrahim – leader of the JP – said the increased budget was necessary in case the president decides to move to Muleeage.

Highlighting the increased budget for Muleeage at the time, MDP Spokesperson Hamid Abdul Ghafoor described Yameen’s decision to live in his personal house as a “symbolic act.”

“Unlike in the past, even media points out inconsistencies in what leaders say and what reality presents these days. I do not believe the public will be deluded about any of this,” Hamid said.

“While Yameen might have thought his decision will get people thinking that he is a humble man, reality is that ultimately, the state is having to spend much more of its funds to maintain this decision of his. People are much more aware now than in previous PPM times. People can see he’s just trying to score political points.”

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Original documents of transactions with Meridian Services stolen: STO lawyer

Lawyers for the government-owned State Trading Organisation (STO) claimed in the Civil Court today that original documents of business transactions with Dhivehi Qaumee Party (MP) Riyaz Rasheed’s Meridian Services had been stolen, reports Haveeru.

At today’s hearing of STO’s lawsuit against Meridian seeking to recover MVR 19.3 million (US$1.2 million) released as credit, the company’s lawyers said the theft of the documents from the STO office occurred on October 27, 2011 and were reported to police at the time.

The lawyer reportedly requested the opportunity to present witnesses to prove the authenticity of copies or other records of the stolen documents.

However, lawyers for the Vilufushi MP’s Meridian Services disputed the authenticity of the purchase orders, delivery notices and invoices submitted as evidence by STO, claiming the documents were forged.

The Meridian lawyer claimed that there were discrepancies in the purchase orders and delivery notes with inconsistent numbers and quantities as well as lack of signatures.

In response, the STO lawyer said Meridian had not submitted any evidence or a statement challenging the validity of the evidence submitted by STO.

The judge adjourned the hearing after announcing that a decision would be made at the next hearing over STO’s request to present witnesses.

On April 26, 2012, the STO issued a press statement announcing that it would file a case at Civil Court to recover MVR 19,333,671.20 (US$1,253,804.88) allegedly unpaid by Meridian Services.

STO and Meridian Services signed an oil trade agreement on March 31, 2010, which offered the company a credit facility worth MVR 20 million (US$ 1,297,016.86) for purchasing oil from STO, stipulating that payments had to be made within a period of 40 days.

However, in August 2010, STO lowered its credit limit from MVR 20 million to MVR 10 million (US$648,508.43) and shortened the payment period from 40 to 30 days, prompting Meridian Services to sue STO for alleged breach of contract.

Meridian Services however lost the first case after Civil Court Judge Abdulla Jameel Moosa ruled in favor of STO.

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Government bill on raising import duties narrowly accepted by parliament for consideration

Parliament voted 26-25 today to accept for consideration a bill proposed by the government to increase import duties as part of a raft of measures to raise MVR 1.8 billion (US$116 million) in new income.

The amendments to the Import-Export Act (Dhivehi) submitted by MP Riyaz Rasheed on behalf of the government proposes raising tariffs on a range of items such as liquor, pork, tobacco, perfume, cement, gas and energy drinks.

MPs of the opposition Maldivian Democratic Party (MDP) voted against the amendments while MPs representing parties in the ruling coalition voted in favour.

However, during preliminary debate at today’s sitting of parliament, some government-aligned MPs expressed concern with the potential rise in prices as a consequence of reversing import duty reductions.

The acceptance of the bill for review by committee follows parliament’s 28-27 rejection last week of government-sponsored legislation to raise the airport service charge to US$30.

Hiking the departure tax on foreign passengers was among the measures proposed by the Finance Ministry with the 2013 budget to raise additional revenue, which also included increasing Tourism Goods and Services Tax (T-GST) to 15 percent from July 2013 onward, leasing 14 islands for resort development and introducing GST for telecom services.

Following the narrow defeat of the airport service charge amendment bill, Finance Minister Abdulla Jihad told local media that a “significant amount” would be lost from projected revenue as the additional income was anticipated in budget forecasts.

“If the amendments for the import duty are not passed, we will find it extremely difficult to manage the budgets of institutions. So it’s critical that the parliament expedites work on the bills and support them,” he was quoted as saying by newspaper Haveeru.

Jihad confirmed to Minivan News this week that the cabinet has decided to suspend or delay implementation of development projects financed out of the state budget due to shortfalls in revenue.

The government was in the process of formulating a supplementary budget to be put before parliament by the end of April, Jihad said.

Meanwhile, speaking to press on Sunday (April 21) following the signing of contracts for construction of harbours in four islands, Housing Minister Dr Mohamed Muiz said the budget was “in a very fragile state.”

“We can only spend what is earned as income. The government proposed new revenue measures when it submitted the budget. It was approved on principle when the budget was passed,” Muiz said.

“However, according to my information, difficulties have arisen in implementation [of the measures]. As a consequence, aside from these four islands, the finance ministry has instructed me not to sign or commence with any infrastructure project in any island from now on. Unless the People’s Majlis passes new means of earning income for the government, the finance ministry has instructed us not to begin any project financed out of the government budget, be it harbour construction or land reclamation or any project undertaken by the housing ministry.”

Revising import duties

The current administration’s intention to revise the changes made by the previous government to import duties was announced in June 2012.

Import duties were reduced or eliminated for a wide range of goods under the previous administration as part of its economic reform package to introduce direct taxation and restructure government finances.

Through amendments approved unanimously in November 2011, import duties were eliminated for construction material, foodstuffs, agricultural equipment, medical devices, passenger vessels and goods used for tourism services.

Tariffs were meanwhile reduced to five percent for furniture, beds and pillows as well as cooking items made from base metals. Other kitchen utensils had duties reduced to 10 percent.

While import duties were eliminated for most fruits and vegetables, 15 percent was to be levied on bananas, papaya, watermelon and mangoes as a protectionist measure for local agriculture. Areca-nuts had the tariff reduced from 25 percent to 15 percent.

Import duties for tobacco was meanwhile hiked from 50 percent to 150 percent.

However, an amendment proposed by the government to raise import duties for alcohol and pork from 30 to 70 percent was defeated at committee stage.

A shortfall in revenue from lower tariffs was expected to be covered by proceeds from T-GST and GST, the latter of which was introduced concurrently with the import duty reductions.

In December 2012, the Maldives Custom Service (MCS) revealed that income from collecting import duties declined by 50 percent in the first 10 months of 2012 compared to the previous year.

Meanwhile, in November 2012, an International Monetary Fund (IMF) mission to the Maldives cautioned that a ballooning fiscal deficit had “implied a rise in the public debt ratio, which now stands at over 80 percent of GDP, and has also helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on MMA (Maldives Monetary Authority) reserves.”

The IMF forecast for the current account deficit in 2012 was “nearly 30 percent of GDP this year.”

“Gross international reserves at the MMA have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” the IMF mission warned.

The mission recommended formulating “a realistic and prudent budget for 2013″ to rein in the fiscal deficit, suggesting hiking taxes and “selectively” reversing import duty reductions.

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MP Riyaz Rasheed withdraws amendments to keep tourism bed tax in place past 2013

MP Riyaz Rasheed of the Dhivehi Qaumee Party (DQP) has withdrawn a government-sponsored amendment to the Tourism Act to keep a US$8 bed tax in place beyond 2013, citing lack of support from parties in the ruling coalition.

The flat rate of US$8 per occupied room, per night, was to be abolished at the end of this year to be offset by sales and land taxes.

The MP for Thaa Vilifushi announced that he was pulling out the legislation after the preliminary debate started at today’s sitting of parliament.

Riyaz expressed concern with the lack of support from coalition partners for revenue raising measures proposed by the government.

Riyaz, who had submitted the bill on behalf of the government, called on President Dr Mohamed Waheed’s administration to consult with pro-government parties represented in parliament before proposing further legislation.

During today’s brief debate on the proposed amendment, most MPs argued that the tourism industry would be adversely affected if the bed tax was not discontinued as planned with the introduction of Tourism Goods and Services Tax (T-GST).

Riyaz’s decision to withdraw the bed tax amendment follows parliament’s rejection last week of government-sponsored legislation to raise the airport service charge to US$30, which was among a raft of measures proposed by the Finance Ministry in the estimated 2013 budget to raise MVR 1.8 billion (US$116 million) in new income.

MPs voted 28-27 against proceeding with the bill at committee stage following preliminary debate.

During the debate last week, MPs of both the opposition Maldivian Democratic Party (MDP) and government-aligned Progressive Party of Maldives (PPM) – respectively majority and minority parties in parliament –  accused President Dr Mohamed Waheed of using state funds to finance his presidential campaign.

Parliament’s rejection of the government-sponsored bill prompted the Finance Ministry to suspend new development projects financed out of the state budget due to shortfalls in revenue.

Finance Minister Abdulla Jihad said that the cabinet decided to postpone planned infrastructure projects that have not yet started in an attempt to ease cash flows.

Speaking to press yesterday (April 21) following the signing of contracts for construction of harbours in four islands, Housing Minister Dr Mohamed Muiz said he was instructed by the finance ministry not to commence any further infrastructure projects included in the 2013 budget.

“As you know, the government’s budget is in a very fragile state. We can only spend what is earned as income. The government proposed new revenue measures when it submitted the budget. It was approved on principle when the budget was passed,” Muiz said.

“However according to my information, difficulties have arisen in implementation [of the measures]. As a consequence, aside from these four islands, the finance ministry has instructed me not to sign or commence with any infrastructure project in any island from now on. Unless the People’s Majlis passes new means of earning income for the government, the finance ministry has instructed us not to begin any project financed out of the government budget, be it harbour construction or land reclamation or any project undertaken by the housing ministry.”

Housing Minister Muiz – a senior member of the government-aligned religious conservative Adhaalath Party – called on all state institutions to cooperate and work together to “improve the country’s economic condition.”

Other revenue raising measures proposed with the 2013 budget included hiking Tourism Goods and Services Tax (T-GST) to 15 percent from July 2013 onward, leasing 14 islands for resort development, introducing GST for telecom services, raising oil tariffs, and “selectively” reversing import duty reductions.

Finance Minister Jihad confirmed to Minivan News yesterday that the government was in the process of formulating a supplementary budget by the end of April.

Economic Development Minister Ahmed Mohamed – a senior member of the government-aligned Dhivehi Rayyithunge Party (DRP) – however told newspaper Haveeru last week that a supplementary budget would be of no use if parliament failed to approve the proposed revenue raising measures.

“Numbers written on paper will not increase funds. One or two billion rufiya can be added to the budget through the supplementary budget,” he explained. ”But shouldn’t there be a way to get that three or four billion rufiya?”

During the budget debate in December 2012, Majority Leader MP Ibrahim Mohamed Solih warned that the additional revenue projected in the budget was unlikely to materialise.

The MDP parliamentary group leader claimed that the import duty revision to raise tariffs on oil “will not be passed in this Majlis.”

Moreover, he said at the time, the MDP would not support increasing T-GST without consultation with the tourism industry.

Predicting that revenue in 2013 would reach “only MVR 11 billion at most,” Solih had warned that income would not be enough to meet recurrent expenditures on salaries and administrative costs.

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Parliament accepts extradition bill

Parliament today (April 16) accepted a government-sponsored bill that would allow for foreign prisoners to be extradited from the Maldives to their country of origin, local media has reported.

MP Riyaz Rasheed submitted the bill, which classifies the types of criminal offences that foreigners can be extradited for, as well as regulating the procedures for international prisoner transfers in the Maldives.

The bill states that only under special circumstances – after a request from the country of origin and a permit from the Prosecutor General (PG) – can a prisoner be extradited. Extradition requests can only be considered if the prisoner is to be tried and serve out their sentence(s) in their country of origin.

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Hiking airport service charge to US$30 narrowly rejected at parliament

Legislation proposed by the government to raise the airport service charge from departing international passengers to MVR460 (US$30) was narrowly rejected by parliament today.

The amendment bill submitted by government-aligned MP Riyaz Rasheed was rejected with 28 votes against, 27 in favour and two abstentions.

At the parliamentary debate on the bill yesterday (April 15), MPs of the opposition Maldivian Democratic Party (MDP) and government-aligned Progressive Party of Maldives (PPM) opposed the proposed hike.

MPs of both the majority and minority parties alleged that President Dr Mohamed Waheed planned to use an expected MVR185 million (US$12 million) from raising the departure tax to finance his presidential campaign.

The 1978 law imposing the airport service charge on departing passengers was first amended under the previous administration and raised to US$18.5 for foreigners.

The imposition of a similar Airport Development Charge (ADC) of US$25 by Indian infrastructure group GMR was previously a major point of contention for the Waheed administration, which terminated the concession agreement with the GMR-led consortium to modernise the airport in December 2012.

Hiking the airport service charge from US$18 to US$30 was among a raft of measures proposed by the Finance Ministry within the estimated 2013 budget to raise MVR 1.8 billion (US$116 million) in new income.

Finance Minister Abdulla Jihad told MPs in December 2012 that additional revenue was needed to finance the fiscal deficit and rein in soaring public debt, which was projected to reach MVR 31 billion (US$2 billion) or 82 percent of GDP by the end of 2013.

On January 29 this year, the cabinet decided to impose austerity measures to manage the budget following revenue shortfalls.

“Members of the cabinet noted that, by late this year, the country might have to face enormous challenges unless strict budgetary control measures were not implemented,” the President’s Office said at the time.

During the budget debate in December 2012, Majority Leader MP Ibrahim Mohamed Solih warned that the additional revenue projected in the budget was unlikely to materialise.

The MDP parliamentary group leader noted that most of the proposed measures – such as hiking the Tourism Goods and Services Tax (T-GST) to 15 percent, introducing GST for telecom services, and “selectively” reversing import duty reductions – required parliamentary approval.

Acting Finance Minister Ahmed Mohamed was unavailable for comment today on the impact to government finances from the loss of projected revenue.

Fiscal responsibility

Meanwhile, legislation on fiscal responsibility submitted in 2011 by the previous government was passed with 42 votes in favour and 10 against at a sitting of parliament on Monday (April 15).

If the bill is ratified, the government would be prohibited by law from obtaining loans after January 1, 2016 to finance recurrent expenditure or loan repayment.

The bill also sets limits on government spending and public debt based on proportion of GDP, mandating the government to not allow public debt to exceed 60 percent of GDP.

Borrowing from the central bank or Maldives Monetary Authority (MMA) should not exceed seven percent of the projected revenue for the year, while such loans would have to be paid back in a six-month period.

Moreover, a statement outlining the government’s mid-term fiscal policy must be submitted annually to parliament at the end of the financial year in July.

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MP Riyaz Rasheed threatens to sue Finance Minister, Attorney General over state benefits to former President Nasheed

Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed threatened to sue Finance Abdulla Jihad and Attorney General Azima Shukoor at parliament today for providing state benefits to former President Mohamed Nasheed under the Privileges and Protection for former President’s Act of 2009.

Riyaz’s remarks came during introduction of a bill the MP for Thaa Atoll Vilufushi has submitted to bring amendments to the 2009 law, specifying circumstances where the financial benefits could be denied to ex-Presidents.

Riyaz contended that former President Nasheed was not eligible for financial benefits under the law as he had not completed a full five-year term.

While the government had initially questioned Nasheed’s eligibility, the Finance Ministry began providing the financial benefits to the former President in May 2012.

“Even though the Finance Minister is doing it [releasing the funds] based on legal advice from the Attorney General, they have to answer for this,” Riyaz said today. “There will come a day when these two will face a lawsuit over this. We are waiting for the day when this government ends. We will sue the Attorney General and Finance Minister on that day.”

He however added that it was “not easy to proceed with this now” as the DQP was part of the ruling coalition.

Riyaz’s amendments meanwhile state that ex-Presidents would not be eligible for state benefits if they committed or participated in an unlawful act or encouraged such an act.

Moreover, former Presidents would be deprived of all privileges and protection if they commit or encourage an act that threatens the country’s independence; commit an act that leads to the loss of Maldivian territory; commit or encourage an act of terrorism, join a terrorist organisation or call for others to join such a group; and commit, encourage or call for “an act that could pulverize the country’s economy”.

If a former president is convicted of corruption, embezzlement or misappropriation of public funds during his or her tenure, Riyaz’s amendments state that he or she would be deprived of state benefits for a period of 10 years.

If the amount embezzled or misappropriated exceeds MVR 10,000 (US$650) the amendment proposes extending the period by one month for each additional MVR 1,000 (US$65).

In addition, if a former president is convicted of a criminal offence committed while in office, state benefits would be discontinued for a period of 10 years.

If a former president is convicted of a criminal offence committed after leaving office, he or she would be deprived of state benefits for five years.

During today’s debate, MPs of the formerly ruling Maldivian Democratic Party (MDP) claimed that the purpose of Riyaz’s amendments was to terminate state benefits to former President Nasheed, accusing him of personally targeting the MDP presidential candidate.

Government-aligned Jumhooree Party (JP) MP Alhan Fahmy – former vice president of MDP before defecting to the JP – agreed with his former colleagues that the bill was “politically motivated” and submitted “out of personal animosity.”

Progressive Party of Maldives (PPM) MP Ilham Ahmed however supported the amendments and suggested that Nasheed should not receive state benefits based on the former President’s disrespect of courts, alleged sale of national assets and call for a tourism boycott.

Meanwhile, the office of former President Nasheed last week accused the government of “negligence” in providing the legally mandated monthly allowance to cover expenses of the office.

In a press release on Thursday, the former president’s office noted that article 8 of the Privileges and Protection for Former President’s Act (Dhivehi) states, “In the event that a former president wishes to conduct social work beneficial to the community, the state shall provide up to MVR175,000 (US$11,350) a month to arrange for an office, employees and other matters.”

Article 128 of the constitution states that a former president “serving his term of office lawfully without committing any offence, shall be entitled to the highest honour dignity, protection, financial privileges and other privileges entitled to a person who has served in the highest office of the land.”

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MP Riyaz Rasheed proposes dissolving DRP-DQP coalition

Vilufushi MP Riyaz Rasheed, deputy leader of the Dhivehi Qaumee Party (DQP), has proposed dissolving the party’s coalition with the Dhivehi Rayyithunge Party (DRP), contending that DRP MPs are working against the interests of the national unity government of President Dr Mohamed Waheed Hassan Manik.

MP Riyaz Rasheed declared at yesterday’s sitting of parliament that the coalition with DRP “no longer exists” after an abstention by DRP MP Ali Azim allowed the now-opposition Maldivian Democratic Party (MDP) to narrowly win a vote to debate a motion without notice on police brutality.

Accusing the largest party in the ruling coalition of “making deals with the MDP,” Riyaz said at parliament yesterday that he “strongly condemn the efforts carried out jointly by DRP and MDP to plant doubt and suspicion in the hearts of people about the service of the Maldivian police and army.”

Riyaz noted that the current Home Minister Dr Mohamed Jameel Ahmed was a senior member of DQP and claimed that Police Commissioner Abdulla Riyaz was a member of DRP.

The Vilufushi MP was not responding to calls at the time of press. Riyaz however confirmed to newspaper Haveeru today that he has submitted the proposal to the DQP council.

“The Qaumee Party will decide to sever the coalition agreement,” he was quoted as saying. “Whether or not I remain in the Quamee Party will come down to that.”

Riyaz explained that in addition to MP Ali Azim voting in the Government Oversight Committee against a proposal by the Waheed administration to form two new ministries, Azim’s abstention in yesterday’s vote allowed the MDP’s motion without notice to be debated.

DQP’s main priority was sustaining the national unity government until presidential election in 2013 acting as “a shield for Dr Waheed’s government”, Riyaz continued, accusing the DRP of undermining the national unity government.

DQP meanwhile released a statement yesterday calling on parties in the ruling coalition to refrain from any action that could “encourage the efforts of former President Mohamed Nasheed, who resigned on his own, to bring the two oldest institutions of the country into disrepute and cause loss of public confidence [in the police and military].”

The statement added that “abetting Nasheed’s efforts to cause division and discord among the public is against the pulse of the people.”

It was therefore obligatory upon all parties in the ruling coalition to “defeat and fail Nasheed’s efforts to bring the government into disrepute and harass the police and army,” adding that the security services had become “prey to unlawful orders” during the past three years of MDP rule.

“In spite of political rivalry, what the Maldivian people want right now is for the allied parties to work in one spirit,” the statement reads, adding that the ruling coalition should band together to “uphold the dignity” of police and army officers “working courageously and tirelessly day and night for religion and the nation.”

“Oil man”

MDP’s motion without notice to debate both alleged police brutality and recent incidents involving police and army officers in uniform robbing expatriates was voted through with the support of two independent MPs – Kulhudhufushi South MP Mohamed ‘Kutti’ Nasheed and Dhuvafaru MP Mohamed Zubair – and government-aligned Jumhoree Party MP Abdulla Jabir.

MP Ali Azim meanwhile tweeted today: “When MP Riyaz Rasheed voted in favour of Speaker’s no-confidence motion, QP [Qaumee Party] did not utter a single word regarding the need for unity in coalition government and the best interest of the nation.”

On her twitter page, MP Rozaina Adam dismissed Riyaz Rasheed’s claim that current Police Commissioner Abdulla Riyaz is a DRP member as “an absolute lie”.

“CP Riyaz is not a DRP member. Never was. He was an advisor to DRP on law and order as a professional,” the MP for Thulusdhoo tweeted.

During yesterday’s debate, Rozaina argued that any issue of national importance submitted to parliament should be accepted for debate.

“There are a lot of issues we want to raise concerning this matter [alleged police brutality]. Thus, the only solution is not to dismiss the issue. The way forward would be to debate it,” Rozaina said.

MP Abdulla Jabir meanwhile concurred that motions without notice should be accepted for a debate on the floor.

Speaking to Minivan News today, DRP Deputy Leader Ibrahim ‘Mavota’ Shareef lambasted Riyaz as a political opportunist whose allegiances depended on “which way the wind blows.”

“I don’t take what Riyaz Rasheed says seriously,” he said, adding that his remarks had “no weight or substance” and that his political decisions were based on personal benefit and in favour of “whomever is willing to give him the biggest loan.”

“He is the oil man,” Shareef continued. “What he says and the way he votes always depends on the availability of credit facilities to buy oil. Look at his past history of voting in the Majlis and what he has said when he was in the Special Majlis.”

On April 26 this year, the State Trading Organisation (STO) issued a press statement announcing that it would file a case at Civil Court to recover Rf19,333,671.20 (US$1,253,804.88) unpaid by MP Riyaz’s Rasheed’s Meridian Services.

STO and Meridian Services signed an oil trade agreement on March 31, 2010, which offered the company a credit facility worth Rf20 million (US$ 1,297,016.86) for purchasing oil from STO, stipulating that payments had to be made within a period of 40 days.

However, in August 2010, STO lowered its credit limit from Rf20 million to Rf10 million (US$648,508.43) and shortened the payment period from 40 to 30 days, prompting Meridian Services to sue STO for alleged breach of contract.

Meridian Services however lost the case after Civil Court Judge Abdulla Jameel Moosa ruled in favor of STO.

Meanwhile, on Riyaz’s accusation that the DRP was “making deals with MDP,” Shareef said the Vilufushi MP suspected so because he was “number one for making deals.”

“He has made deals with both governments of [former President] Nasheed and [former President Maumoon Abdul] Gayoom,” he alleged.

On the possible dissolution of the coalition agreement with DQP, Shareef insisted that the party was “not worried.”

“DRP is a party that can stand on its own feet now,” he said. “We will always work in the best interest of the nation in line with the views of the majority of our members.”

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MP Riyaz Rasheed splashed water on chairs: Speaker Abdulla Shahid

Vilufushi MP Riyaz Rasheed splashed water on chairs and tables inside the parliament chamber yesterday after Speaker Abdulla Shahid ordered Maldives National Defence Force (MNDF) security personnel to remove the disruptive MP.

Yesterday’s sitting was adjourned 15 minutes after it began when MP Riyaz Rasheed raised points of order to object to changes made to the Security Services ‘241’ committee.

The reworked composition of the committee with the opposition Dhivehi Rayyithunge Party’s (DRP) representation down from three seats to two after a number of MPs left the party was later approved in a vote yesterday.

After advising Riyaz to sit down four times, the Speaker adjourned the sitting until the MP was out the chamber. The Vilufushi MP left the chamber about 30 minutes later when MNDF officers were sent in.

When the sitting resumed after 12pm, Speaker Shahid explained that cleaning chairs and tables where MP Riyaz splashed water had delayed the restart. Further delays were caused by electricity problems caused by heavy rains the previous night, Shahid said.

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