parliament – Page 12 – Minivan News

Majlis approves reallocation of flats from southern atolls to Hulhumalé

The People’s Majlis voted 38-31 yesterday to grant a request by President Abdulla Yameen to reallocate 704 flats to Hulhumalé from a 1,500-housing unit project planned for four southern atolls.

MPs of the ruling Progressive Party of Maldives (PPM) and coalition partner Maldives Development Alliance (MDA) voted in favour while opposition Maldivian Democratic Party (MDP) MPs and Jumhooree Party (JP) MPs voted against the proposal.

On June 11, President Yameen asked parliament to review a decision by the 17th People’s Majlis in December 2013 to deny the president’s request.

The year before, the previous parliament had also denied his predecessor President Dr Mohamed Waheed’s request to revise the housing project to shift 704 housing units to Hulhumalé.

In December 2012, parliament rejected the proposed change with former Speaker Abdulla Shahid casting a tie-breaking vote after the vote was tied 33-33.

An MVR2.5 billion (US$162 million) loan was secured during the administration of former President Mohamed Nasheed in 2011 to construct 1,500 housing units in Gaaf Alif, Gaaf Dhaal, Fuvahmulah and Addu City.

In a letter seeking parliamentary approval for the revision – which was read out at the parliament sitting on July 2 – President Yameen stated that the government had conducted a “needs assessment” and determined that there was “no need at present” to build more than 796 housing units in the southern atolls.

Yameen also contended that “micro-level decisions regarding loans” should be made by the executive, adding that an affordable housing scheme was essential to develop Hulhumalé with a large enough population to provide education and healthcare services and create job opportunities.

Developing a ‘youth city’ in Hulhumalé with a population of 50,000 was a campaign pledge of President Yameen, whose vision for the artificial island includes the creation of light industries and a “technopolis” park as well as sports and entertainment facilities.

The president’s request was forwarded to the public accounts committee (PAC) earlier this month, which approved it over the objections of opposition MPs on the committee and sent a report (Dhivehi) to the Majlis floor for final approval. The report was compiled by the PAC of the previous parliament.

Pro-government MPs had rejected MDP MPs Ibrahim Shareef’s proposal to seek further information after summoning Housing Minister Dr Mohamed Muiz and voted in favour of a proposal by PPM MP Riyaz Rasheed to pass the previous report.

Parliamentary approval for revising the terms of a loan is required under amendments approved to the Public Finance Act in 2010.

Regional disparity

During the final debate on the report at Tuesday’s sitting, MDP MP for the mid-Hithadhoo constituency in Addu City, Ibrahim Mohamed Didi, alleged that the contractors stood to gain an additional US$21 million by shifting the flats to the Malé region.

“Who on the committee looked into what happens to this US$21 million?” the retired brigadier general asked, characterising the move as a “betrayal” of the people of the southern atolls.

He explained that the cost of a flat decreases from US$150,000 to US$75,000 when it is built in Hulhumalé.

Due to the low value of land outside the central region, Didi said people in the outer atolls were unable to secure housing loans and appealed to pro-government MPs to vote against the proposal on behalf of their constituents.

JP Leader Gasim Ibrahim also alleged “serious corruption” in tendering the construction work to a contractor as the cost of building a flat should not exceed US$75,000 on average.

Flats for tsunami victims in the south were built with loan assistance from the Saudi Fund and elsewhere for about US$50,000, he added.

The JP MP for Maamigili called for investigations by the Auditor General’s Office and Anti-Corruption Commission (ACC), questioning the US$150 million price tag for 1,500 flats.

Independent MP for Gaaf Dhaal Madaveli, Muaz Mohamed Rasheed, said his constituents were “very concerned” with the decision to reallocate the flats from the south.

If the flats are to be built in Hulhumalé, Muaz suggested that citizens of southern atolls should get preference in the awarding process.

However, despite the misgivings, Muaz said the government should be able to make revisions in the interests of loan repayment. While he attended yesterday’s sitting, Muaz did not participate in the vote.

PPM MP for Gaaf Alif Gemanafushi, Jameel Usman, noted that a large number of citizens from the atolls resided in the capital and were in need of housing, to whom President Yameen wished to provide low-cost housing.

MDA MP Ahmed Amir meanwhile cautioned that further delays caused by parliament could jeopardise the loan, which was secured on favourable terms at a “very low” interest rate.

The PPM-led government’s manifesto included land reclamation of several islands in the outer atolls, Amir said, where housing units would also be built.

A UNDP Human Development Index released last month highlighted regional disparities and inequalities in the Maldives as a “major challenge” towards human development.

“Where one is born within the Maldives determines many of the opportunities and choices available to a person,” the report concluded.

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Gayoom calls for a probe into parliamentary committee rejection of nephew for PG

Former president and ruling Progressive Party of Maldives (PPM) leader Maumoon Abdul Gayoom has called for a probe into a parliamentary committee’s rejection of his nephew for the post of Prosecutor General.

Maumoon Hameed failed to garner the required 75 points to obtain committee recommendation. The previous People’s Majlis had also rejected Hameed for the post in April.

The People’s Majlis independent institutions oversight committee – in which the PPM holds a majority – gave Hameed 33 percent and President Abdulla Yameen’s second nominee and Criminal Court Judge Muhuthaz Muhusin 67 percent.

In a letter to PPM parliamentary group leader Ahmed Nihan, Gayoom said chair of the committee PPM MP Ali Saleem had acted against the wishes of Yameen and must be held accountable for his actions.

Gayoom said he had received reports Saleem’s had not followed due process in the vetting process.

Candidates were summoned for interviews without a committee vote and the vetting criteria were not approved by the committee, said Gayoom.

Further, there were reports mark sheets were not tallied in the presence of MPs, he said.

Saleem had also failed to respond to opposition MP Rozaina Adam’s question over Muhsin’s eligibility.

Gayoom said judges could not stand for the position as per Article 151 of the constitution. Muhuthaz would lose his judgeship following his application to the post of Prosecutor General, he added.

“I do not believe that any person can take up the post of Prosecutor General while he is serving as a judge,” Gayoom said, referring to “a legal norm” whereby a former judge could only represent a client as a lawyer only after two years pass after resignation.

“Hence, please investigate this issue thoroughly and present a report to me before this matter is forwarded to the Majlis floor,” Gayoom said.

The Judicial Services Commission (JSC) has since said judges are allowed to apply for positions in the state’s independent institutions.

The independent institutions oversight committee interviewed candidates on Thursday, July 10, and decided against recommending either candidate on Monday, July 14.

Marks were reportedly awarded following evaluation of their academic qualifications, experience, competency, management skills, leadership qualities, achievements and integrity.

The committee is comprised of five PPM members, one Maldivian Development Alliance (MDA) MP, three opposition Maldivian Democratic Party (MDP) members and two Jumhooree Party (JP) members.

PPM Parliamentary Group leader Ahmed Nihan was not responding to calls at the time of press.

The PG’s post has been vacant since November following the resignation of Ahmed Muizz ahead of a scheduled no-confidence motion in parliament.

Moreover, Acting PG Hussein Shameem’s resignation in early May brought the criminal justice system to a halt after state prosecutors went on strike, citing concerns of a lack of accountability in the absence of a PG.

However, the Supreme Court ordered prosecutors to resume work “without any further excuse” and ordered the seniormost official at the PG office to assume the PG’s responsibilities.

President Yameen meanwhile refused to submit a new nominee to the 17th Majlis during the crisis and opened up a third call for applicants, announcing his intention to nominate Hameed – son of former Atolls Minister Abdulla Hameed – for a second time to the newly elected 18th People’s Majlis.

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Government proposes GST exemption for sale of flats under state-funded housing projects

Preliminary debate began at yesterday’s sitting of parliament on an amendment proposed by the government to the Goods and Services Tax (GST) Act to make the sale of flats under government housing projects exempt from the tax.

The amendment (Dhivehi) submitted on behalf of the government by Progressive Party of Maldives (PPM) MP Ahmed Rasheed also proposes reimbursing GST payments to persons who have purchased flats or housing units constructed under government housing projects.

The reimbursement is to be made within 30 days of ratification of the amendment by the president.

While real estate transactions were previously exempt from GST, the previous parliament passed an amendment in February this year reversing the exemption.

While all MPs were in favour of the proposal during yesterday’s debate, opposition Maldivian Democratic Party (MDP) MPs criticised the government for reversing tax exemptions for sale of flats.

Several MPs also argued that tax exemptions should apply exclusively for social housing schemes and not for luxury flats.

While MP Ali Azim suggested a hidden agenda behind the move to reimburse tax payments, MP Ahmed Nashid noted that funds were not allocated for the expenditure in the 2014 state budget.

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Housing Ministry to resume stalled Tata housing project

The government expects to sign a revised agreement with Tata Housing Developing Corporation next week to resume stalled housing projects in the capital Malé, Housing Minister Dr Mohamed Muiz revealed at a press conference yesterday.

The terms of the agreement were revised on the advice of the cabinet’s economic council after agreeing to some of Tata’s conditions, Muiz explained, and have now been forwarded to the Indian real estate developer for final approval.

“We have agreed that work must begin in two sites in Malé within 45 days of signing the amendments [to the contract],” Muiz said, referring to the Gaakoshi plot and former Arabiyya School premises.

Muiz further revealed that the government has also agreed to give back the vacant ‘Naadhee’ plot in Malé and approve construction on the site.

The site was taken over by the administration of former President Dr Mohamed Waheed with the intention of building a new Supreme Court complex on the premises.

While the previous administration had offered a plot in Hulhumale’ as an alternative, the developers felt the change would affect financing of the project.

The multi-million dollar housing project – a combination of commercial and social housing through a Public-Private Partnership model – was signed in May 2010 by the administration of former President Mohamed Nasheed with Apex Realty Pvt Ltd, a special purpose vehicle (SPV) or joint venture formed between Tata (65 percent) and SG18 Developers (35 percent).

Providing affordable housing to resolve the acute housing shortage in the capital was a core pledge of the Nasheed administration as well as the current Progressive Party of Maldives-led (PPM) government.

Contractual dispute

The Naadhee plot on Sosun Magu was among four plots of land in the capital awarded to the Tata subsidiary for construction of flats.

The Waheed administration’s decision to take over the plot was the source of the dispute with Tata, Muiz conceded yesterday, which has now been resolved after the economic council decided to give back the plot in accordance with the terms of the original agreement.

The government has agreed to purchase 20 percent of the flats constructed on the plot, he noted.

Discussions were meanwhile ongoing between the Supreme Court and the President’s Office on a new site for the apex court’s building, he said.

The flats in Gaakoshi and the old Arabiyya School site would have to be completed in 10 months and a year respectively, Muiz continued, while Tata has also agreed to construct 150 flats in Hulhumale’.

In May, Apex Realty announced that the company was prepared to resume work on the project as soon as the agreed upon amendments were incorporated into the contract.

“Apex Realty officials have undertaken multiple rounds of meetings with the economic council of the cabinet and the Ministry of Housing to find a mutually acceptable solution to contractual issues,” the company said in a press release.

“We are committed to the Maldives project and can start the project within 45 days after the final nod is received from the Housing Ministry and contract amendment is signed,” said Mr Sandeep Ahuja, Director at Apex.

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MPs abolish 1990 law on MP renumeration

The People’s Majlis today passed an amendment bill submitted on behalf of the government to abolish an outdated 1990 law governing renumeration for MPs of the People’s Majlis and Special Majlis.

The bill was approved with unanimous consent of 70 MPs at today’s sitting of parliament following review by the economic affairs committee.

The Special Majlis was a plenary assembly last convened in June 2004 to revise the constitution. Article 102 of the constitution meanwhile stipulates that salaries and allowances of People’s Majlis MPs will be determined by the parliament.

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Oversight committee rejects President Yameen’s nominees for Prosecutor General

Parliament’s independent institutions oversight committee last night decided against recommending for approval President Abdulla Yameen’s nominees for the vacant post of Prosecutor General (PG).

According to opposition Maldivian Democratic Party (MDP) MP Rozaina Adam, the committee awarded President Yameen’s nephew Maumoon Hameed 33 percent and Criminal Court Judge Muhthaz Muhsin 67 percent following a vetting process.

A minimum score of 75 percent or marks is required for the committee to recommend a nominee for approval. The pair were interviewed by the committee last Thursday night (July 10).

Marks were awarded following evaluation of their academic qualifications, experience, competency, management skills, leadership qualities, achievements, and integrity.

The nominees will however be put to a vote on the People’s Majlis floor.

The ruling Progressive Party of Maldives (PPM) has a clear majority of the 85-member house with 43 MPs in addition to five MPs of coalition partner Maldives Development Alliance (MDA).

The independent institutions oversight committee is comprised of five PPM MPs, one MDA MP, three MDP MPs and two Jumhooree Party (JP) MPs.

The final evaluation process took place at a closed session last night where opposition MPs reportedly awarded zero marks to both nominees.

In April, Maumoon Hameed failed to garner the required 39 votes in the previous parliament – falling just three votes short – four months after he was put forward by President Yameen.

Article 221 of the constitution states, “The President shall appoint as Prosecutor General a person approved by a majority of the total membership of the People’s Majlis from the names submitted to the People’s Majlis as provided for in law.”

The independent oversight committee in the 17th People’s Majlis had also rejected Hameed’s nomination after the lawyer failed to meet the assessment criteria.

“Approval is based on a preset grading scheme, and not on members’ opinions,” MP Rozaina told Minivan News at the time.

The PG’s post has been vacant since November following the resignation of Ahmed Muizz ahead of a scheduled no-confidence motion in parliament.

However, the Supreme Court ordered prosecutors to resume work “without any further excuse” and ordered the seniormost official at the PG office to assume the PG’s responsibilities.

Meanwhile, at its meeting last night, the independent institutions committee also awarded 68 percent to President Yameen’s nominee for the Police Integrity Commission, Adam ‘Kurolhi’ Zahir.

The committee however approved the nominations of former MP Abdul Azeez Jamal Abubakur for the newly created post of Information Commissioner with 88 percent and Aishath Zahira for deputy governor of the Maldives Monetary Authority (MMA) with 90 percent.

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JP to sue three MPs for switching parties

The Jumhooree Party (JP) is to sue three parliamentarians who switched to the ruling Progressive Party of the Maldives.

The unanimous decision was announced at a party meeting on Saturday night, but the former ruling coalition partner is yet to decide on how to pursue the case.

JP council members said MPs had sworn in the name of Allah to refrain from crossing the floor and the switch had caused damage to the party. The PPM bribed MPs, JP alleged.

“The PPM’s actions in offering unattainably high incentives to parliamentarians of our party, and providing them with financial and material incentives so as to have them switch to their party, are against the vows they made to the public in their ascension to power,” a JP statement read.

The JP’s backing was crucial in PPM’s presidential win in November. The two parties decided to field joint candidates under separate party banners for the 85 member house in March. The PPM won 33 of the 50 seats it contested, while the JP won 15 of the 28 seats it contested. Coalition partner Maldives Development Alliance won five seats.

The PPM severed its coalition agreement with the JP in May after the coalition partner’s leader, Gasim Ibrahim, ran for the post of Majlis speaker despite the PPM fielding its senior MP Abdulla Maseeh Mohamed as the ruling coalition’s candidate.

JP currently has 12 MPs after Ihavandhoo MP Mohamed ‘Muhamma’ Abdulla, Milandhoo MP Hassan Mufeed Abdul Gadhir and Nolhivaram MP Hassan Areef’s signed to the PPM.

The MPs said they were urged by their constituents to join the ruling party to speed up development of their constituencies.

Following the loss of two JP MPs last month, Gasim claimed at a press conference that the MPs had told him that the government had threatened to cease development of islands in their constituencies. Gasim said he had heard that the pair were offered MVR10 million (US$648,508) each for the transfer.

The JP leader heavily criticised the pair for allegedly reneging on an agreement signed under oath “before God Almighty” to remain in the JP until the end of their five-year terms.

In response, the PPM has denied offering any incentives for crossing the floor.

“Today’s reality is that because PPM is in government, many members are taking their own intiative in joining our party. This is done with the intention of providing development to the constituencies they represent,” PPM Deputy Leader Abdul Raheem Abdulla told local media.

Meanwhile, MP Muhamma told Minivan News he does not believe the JP has the grounds to take him to court.

“I don’t believe the JP can go to court on this matter. I don’t believe that any agreement made against the constitution can be valid,” he said.

He further claimed that it is “far more logical” for the JP to take PPM to court for breaking up the coalition than to sue individual parliamentarians.

The PPM now has a 43 member majority. In addition to the three JP MPs, four out of five independent MPs, and three opposition Maldivian Democratic Party (MDP) MPs have switched to the ruling party.

Minivan News was unable to contact parliamentarians Hassan Mufeed Abdul Gadir and Hassan Areef for comments at the time of press.

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Public accounts committee approves reintroducing car allowance for ministers

The People’s Majlis’ public accounts committee (PAC) yesterday approved a request by President Abdulla Yameen to reintroduce a discontinued car allowance for cabinet ministers.

A motion by Maldives Development Alliance (MDA) MP Ahmed Amir to grant the request was approved with seven votes in favour and six against after Chair MP Ahmed Nihan – parliamentary group leader of the ruling Progressive Party of Maldives (PPM) – cast the tie-breaking vote.

Opposition Maldivian Democratic Party (MDP) MPs and Jumhooree Party (JP) MPs voted against the motion. The PAC is comprised of six PPM MPs along with one MP from coalition partner MDA as well as four MDP MPs and two JP MPs.

The committee’s decision will be put to a vote on the Majlis floor.

Under the previous parliament in December 2012, the PAC had decided to discontinue an MVR6,500 (US$422) monthly salary for drivers of ministers’ cars as well as an MVR1,000 (US$65) allowance for petrol cost. Ministers were instructed to settle the expenses out of their salaries from April 2013 onward.

The PAC decision was later voted through on the Majlis floor on December 31 as part of a revised pay scheme for senior officials in the executive, judiciary, and independent institutions.

The elimination of both the salary for drivers and the fuel allowance was estimated to save 89 percent from the budget item. Cabinet ministers presently earn a monthly salary of MVR57,500 (US$3,729).

The task of determining salaries and allowances is entrusted to the PAC – also referred to as the finance committee – under section 100(a) of the parliamentary rules of procedures.

Article 102 of the constitution states, “The president, vice president, members of the cabinet, members of the People’s Majlis, including the speaker and deputy speaker, members of the judiciary, and members of the independent commissions and independent offices shall be paid such salary and allowances as determined by the People’s Majlis.”

In its meeting yesterday, the PAC also commenced a review of the state’s salary structure or pay scheme.

Executive expenses

During the debate on reintroducing the car allowance yesterday, MDP MPs suggested studying the government’s request further after summoning the finance minister.

MP Ibrahim Mohamed Solih – parliamentary group leader of the MDP – argued that it would be “irresponsible” to approve additional expenditures without scrutiny.

The proposal was however rejected by pro-government MPs after the chair said the issue had been thoroughly considered by the PAC in the previous parliament.

MDP MPs also objected to increasing expenditure on ministers while doctors and teachers were unhappy with their renumeration.

Meanwhile, a paper prepared by the parliament secretariat on expenses by the executive in 2013 was deliberated by the committee.

The paper – subsequently shared with local media – reportedly revealed that MVR913,277 (US$59,227) was spent out of the budget last year to provide the allowance to ministers under former President Dr Mohamed Waheed’s administration between April and November 2013.

The allowance was provided to the health minister, economic development minister, tourism minister, fisheries minister, defence minister, Islamic affairs minister, housing minister, youth minister, education minister, transport minister, finance minister and the attorney general.

While MDP MP Ibrahim Shareef contended that the allowance was provided in violation of public finance laws and should be investigated by parliament, MP Nihan insisted that there was no proof of wrongdoing in the document.

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MPs debate legislation on public referendums

Preliminary debate began at today’s sitting of parliament on legislation submitted by Progressive Party of Maldives (PPM) MP Abdulla Khaleel on legislation governing public referendums.

Presenting the bill (Dhivehi) on behalf of the government, the MP for Faafu Nilandhoo said the proposed law would specify circumstances whereby public referendums could be held as well as procedures to be followed by the Elections Commission (EC) in conducting polls.

Khaleel explained that the legislation stipulates that a public referendum must be held before approving an amendment either to chapter two of the constitution, which outlines fundamental rights and freedoms, or term limits of parliamentarians and the president and vice president.

The constitution authorises both the president and parliament to “hold public referendums on issues of national importance.” Parliament is also authorised to call for public referendums to override a presidential veto on a bill.

The bill defines matters of national importance as issues that parliament believes requires public approval before enactment as law, Khaleel noted.

The bill stipulates that parliament shall pass a resolution calling for a public referendum and provides details on how to conduct the poll, he continued, adding that the public must be informed of the pros and cons of the issue prior to voting.

The first public referendum following the adoption of the new constitution in August 2008 took place in October 2010, which saw small islands overwhelmingly reject a government proposal for administrative consolidation.

The bill on public referendums along with the special economic zones (SEZs) bill was accepted for consideration today and sent to committee for further review.

The SEZ bill was accepted with 46 votes in favour and 16 against.

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