Sun Shiyam’s alcohol possession trial delayed again

The second hearing in the alcohol possession and smuggling trial of Maldives Development Alliance (MDA) leader and MP Ahmed ‘Sun’ Shiyam has been cancelled for the third time in two months.

According to the Criminal Court, a scheduled hearing was cancelled today as the court was unable to deliver the summons chit.

Media reports that the presiding judge has been changed have today been denied by the court.

In March 2012, customs officers at Ibrahim Nasir International Airport (INIA) discovered a bottle of alcohol in the MP’s luggage. After a police investigation, the case was forwarded to the Prosecutor General’s (PG) Office in August 2012 before being returned to police due to incomplete information.

The relative speed at which cases related to opposition MPs have travelled through the justice system prompted the Maldivian Democratic Party to seek a no-confidence motion against then PG Ahmed Muizz.

Muizz’s subsequent resignation last November has indirectly led to the current crisis in the country’s courts.

Shiyam was eventually charged – more than a year later – although a hearing scheduled for November 7 2013 was cancelled after a summons chit was not delivered to Shiyam.

The Criminal Court subsequently ordered police to present the MP in court, after which he appeared for the first hearing on March 13, 2014.

With local media reporting that Shiyam was kept in the guest area of the court – unlike other suspects – Shiyam denied the charges and requested more time to research the case.

A scheduled hearing for April 10 was again cancelled due to Shiyam’s absence from the capital, with the rescheduled hearing also cancelled as the court was unable to deliver the chit.

An unannounced hearing was attempted on March 27 prior to these official hearings, while Judge Ahmed Sameer Abdul Aziz – who is presiding over the case – was on leave. Citing an anonymous source at the court, local media outlet CNM reported that Criminal Court Chief Justice Abdullah Mohamed was behind this attempt.

“[Criminal Court Chief] Justice Abdulla [Mohamed]was to finish the case. In this regard he sent summoning chits to witnesses while they have not even been presented [by the state], and tried to hold a hearing today at 10am,” CNM quoted the official as saying.

The attempt eventually failed after after a number of court officials were absent from work, CNM was told.

While the case was not on the hearing schedule published on their official website, the court’s spokesperson told CNM such arrangements were not unlawful.

Replacing the judge

Meanwhile local media has reported that the court has now replaced Judge Abdul Aziz with Judge Shujau Usman upon Shiyam’s request.

The Criminal Court has denied these reports, saying that today’s hearing had also been scheduled to be conducted by Judge Abdul Aziz.

The media has published contents of a letter attributed to Shiyam which requests the removal Judge Abdul Aziz from the case stating the he has a personal grudge against the Meedhoo MP.

The letter, dated 24 April 2014, and addressed to to Chief Justice Ahmed Faiz is said to states that, during the first hearing, Judge Abdul Aziz displayed hand gestures and facial expressions which suggested the possibility of acting impartially against Shiyam.

It stated that Judge Abdul Aziz was also displeased with the MDA leader following his complaints, and that Shiyam had received information the judge may be considering a hastened and strict verdict against him.

The letter described the case against Shiyam as “a devious plot by some powerful people” and a politically motivated lie invented by Shiyam’s enemies.

If found guilty, Shiyam could lose his seat in the parliament as per Article 73(c)(2) of the constitution which states that members will be disqualified upon receiving a criminal sentence of more than twelve months would.

Import and possession of alcohol without a special permit form the Ministry of Economic Development is is a criminal offence in the Maldives. The penalty for the crime under the Unlawful Imports Act is 1-3 years imprisonment, banishment or a fine between MVR1000 – 5000.

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President Yameen defends nomination of Maumoon Hameed for prosecutor general post

President Abdulla Yameen has defended the nomination of his nephew Maumoon Hameed to the vacant post of prosecutor general (PG), announcing his intention to nominate the lawyer to parliament for a second time.

Parliament rejected Hameed – son of former Atolls Minister Abdulla Hameed – on April 14 after the nominee fell three votes short of securing parliamentary approval.

Addressing supporters in the Feydhoo ward of Addu City last night (May 18), President Yameen insisted that Hameed was chosen based on competence and qualification rather than family connection.

“I don’t want in any case for the People’s Majlis to appoint Maumoon Hameed to the post of Prosecutor General  because he is my brother or a member of my family,” Yameen said.

“But even tonight, I want to say proudly, standing before the public, that yes, it is true, there are educated and competent persons in my family. They want to serve the Maldivian government and the Maldivian people. They will be brought before the law when they violate the law. I am sending Maumoon Hameed’s name [to parliament] this time as well.”

He added that he wished for parliament to approve “approve a trustworthy and experienced person as prosecutor general.”

Opposition members of the Majlis involved in the previous approval process have suggested that he had failed to meet the oversight committee’s assessment criteria, suggesting that he had shown a poor understanding of current legal issues concerning the country’s legal system.

Yameen observed that the nomination of his nephew has been the subject of criticism in the media, noting that the names of other applicants would be forwarded to parliament as well.

Earlier this month, the President’s Office invited applications for the PG post for a third time after too few candidates put forward their names.

President’s Office Spokesperson Ibrahim Muaz revealed this week that the applicants included four judges in addition to former Tourism Minister Mariyam Zulfa and state prosecutor Aishath Fazna Ahmed.

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

The criminal justice system was meanwhile temporarily brought to a halt with the resignation on May 4 of Deputy Prosecutor General Hussain Shameem – who had been fulfilling the responsibilities of the PG – citing “obstruction” by the Criminal Court.

In the wake of Shameem’s resignation, state prosecutors refused to attend trials in the absence of both the PG and his deputy. However, the prosecutors resumed work after a week-long hiatus following a Supreme Court order last week.

18th People’s Majlis

Following parliament’s rejection of Hameed last month, opposition Maldivian Democratic Party (MDP) Spokesperson Hamid Abdul Ghafoor suggested that the failure to secure a simple majority of 39 votes was down to either poor organisation on the part of the ruling Progressive Party of Maldives (PPM) or a sign of discord within the governing coalition.

“MP Gasim Ibrahim [Jumhooree Party leader] was openly lobbying against the PG nominee 30 minutes before vote but voted with PPM,” Hamid claimed, noting the conspicuous absence of a number of prominent government-aligned MPs for the vote.

Hamid predicted that Maumoon Hameed’s name would be resubmitted to the newly-elected parliament as the Progressive Coalition secured a comfortable majority in the March 22 polls.

Tension has however arisen between the PPM and coalition partner JP over the post of speaker. While Gasim announced his intention to stand for the post, President Yameen said the speaker should be a member of the ruling party as it won the most number of seats in the 18th People’s Majlis.

The Progressive Coalition won a combined total of 53 seats in the March 22 parliamentary polls, well above the simple majority of 43 required to approve presidential nominees and pass legislation.

In his speech last night, President Yameen strongly criticised the outgoing parliament, reiterating the importance of parliament’s cooperation for implementing the government’s policies and carrying out infrastructure projects.

“I want a member of our party to become speaker of the People’s Majlis in this term. I don’t want a member of another party to hijack our party,” he said.

Speaking at the function, former President Gayoom also said that the PPM needed to ensure public backing for the government.

“The government needs the sincere support of the Maldivian people at this time. We can provide that support to the government by increasing the number of members in our party,” he said.

The PPM leader launched a recruitment drive to increase party membership earlier this month.

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State wage bill sent back to Majlis for the third time

President Abdulla Yameen has returned ‎the state wage policy bill back to the People’s Majlis for reconsideration after expressing concern over the inclusion of some public companies and parliamentary oversight.

President’s Office Spokesperson Ibrahim Muaz said that the inclusion of public companies with more than fifty percent shares would create difficulties as these are separate legal entities which would subsequently have an outside authority setting wages.

The other key issue related Article 18 of the bill which states that all decisions of the pay commission regarding the setting of wages and formulating wage policies must be approved by parliament.

“The president does not believe the commission would be an implementation authority if the People’s Majlis is to approve its decisions,” said Muaz, noting that it would create difficulties in implementing the Pay Commission’s decisions.

Majlis economic committee member, Kelaa MP Dr Abdulla Mausoom, told Minivan News the bill was being delayed mainly due to a conflict between the two branches of the government, arguing that the Majlis ought to have final say on pay awards as representatives of the people.

The bill which was passed on April 27 had been returned twice by the previous President Dr Mohamed Waheed.

It aims to resolve public sector pay discrepancies through the creation of a National Pay Commission and was first proposed by Kulhudhufushi South MP Mohamed Nasheed in March 2011, and was passed by the Majlis in December 2012 and again in April 2013.

In a letter sent to the speaker of the majlis, President Yameen has requested that points noted by the government be considered.

According to Muaz, further issues emerging from the bill are that it essentially hands over the authority to decide salaries of all institutions, including president’s staff and security forces, which are currently under the executive according to the constitution and laws.

He described the parliament’s deciding upon all changes to salaries and benefits of state employees as “People’s Majlis infringing on the executive’s responsibilities”.

The constitution is clear on the parliament’s roles in allocating salaries independent institutions, continued Muaz, and the parliament’s role when it comes to the wages of other state employees – not specifically stated in the constitution – should be limited to formulating policies on the matter and holding other relevant stakeholders accountable.

President Waheed had previously told the Majlis that the requirement for parliament approval of commission decisions “dissolves the separated boundaries of, and would present difficulties in carrying out the functions of, the state – particularly in carrying out the duties of the executive”.

In response, the economic committee of the Majlis which reviewed the bill said “the best way to maintain checks and balances” is keeping the bill as it is, instead of leaving the power of determining the wages under the total control of the executive.

“People’s Majlis has the largest number of people’s representatives and should be viewed as the people. [In the bill] all the decisions are made by the [Pay] commission and it is only sent to the parliament to see if the people approve of it,” said Dr Mausoom.

When asked if the issue could take another turn with the newly elected parliament, Dr Mausoom said that he believed the new members of the parliament would make a responsible decision.

The ruling Progressive Coalition currently maintains a parliamentary majority and has won a ‘super-majority’ of two-thirds in the newly elected parliament.

The government is currently under pressure from workers over pay discrepancies and minimum wage, with both civil servants and teachers considering strike action in recent weeks.

Meanwhile President Yameen yesterday ratified five bills passed along with State wage bill at the eighth sitting of Majlis’ ‎first Session, on 27 April ‎‎2014.

The five bills which were ratified are the sole proprietorship ‎bill, business registration bill, the fourth amendment to the ‎‎Maldives Land Act,  the sexual harassment bill, and the sexual offences bill.

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Deputy PG’s resignation “irresponsible,” says President Yameen

President Abdulla Yameen called Deputy Prosecutor General Hussein Shameem’s resignation “irresponsible” and said criminal cases must proceed at the courts.

Shameem resigned on Monday citing the Criminal Court’s “obstruction” of the criminal justice system. State prosecutors are refusing to attend court hearings in the absence of a Prosecutor General (PG) and deputy PG. The PG position has been vacant since November 2013.

Shameem has called on the executive and the People’s Majlis to immediately appoint a new Prosecutor General, but Yameen said he will only submit a new nominee to the newly elected 18th People’s Majlis. Yameen’s Progressive Party of the Maldives (PPM) holds a majority in the new parliament.

“Now that we have acquired majority seats, we are becoming more comfortable. God willing, we will be able to acquire a full majority in parliament. I do not have the confidence that we will be able to get the required 39 votes if we initiate a special meeting of the current parliament,” Yameen said.

The current Majlis is in recess and it’s term is set to expire on May 28. It had previously rejected Yameen’s nephew Maumoon Hameed for the position.

Yameen said the executive would put out a third call for applicants, claiming the President’s Office had not received enough applications during the second call.

Five individuals had expressed interest. They are Shameem, Tourism Minister under the MDP administration Mariyam Zulfa, Criminal Court Judge Muhuthaz Muhusin, lawyers Aishath Fazna Ahmed and Mohamed Shah. A third call will allow Hameed to submit an application once again.

Speaking to local media, Yameen said he does not accept Shameem’s resignation at a time when the state does not have a serving PG, and said criminal cases must proceed as long as the courts allow it.

“I do not understand it. I cannot accept it. So I think the best option is to go forward with the regular cases, except the major cases, even if there isn’t a Prosecutor General, as long as the courts allow it, isn’t it? I will be very pleased if things happen in this manner,” he told the newspaper Haveeru.

Chief Justice Ahmed Faiz Hussein has also said criminal cases must continue.

“The Constitution does not recognize the post of a Deputy Prosecutor General. What the Constitution accepts is a Prosecutor General. About four months have passed since we last had a Prosecutor General. That issue has been already reviewed. The situation has not changed,” Faiz said, referring to a Supreme Court order on February 18.

The order was issued in response to the Criminal Court’s refusal in January to proceed with all criminal trials in the absence of a PG, and refusal to begin new trials in February.

The Criminal Court released a statement today announcing that it will abide by the Supreme Court order and continue conducting cases.

In a resignation statement, Shameem said he was unable to fulfill his duties due to the Criminal Court’s failure to prosecute foreigners involved in drug trafficking, delays in issuing rulings on drug related offenses and “unreasonable obstacles” in filing cases at the court.

“These issues obstruct the proper functioning of the criminal justice system. I am deeply saddened to note the extreme delay on the part of those who have the power to address these issues,” he said.

PG Office Spokesperson Hussain Nashid was not responding to calls at the time of press.

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State prosecutors halt all criminal trials

State prosecutors at the Prosecutor General’s Office have refused to attend hearings in the absence of a Prosecutor General (PG) and a deputy PG.

The office’s leadership is currently vacant with former PG Ahmed Muizz’s resignation in November 2013 and deputy PG Hussein Shameem’s resignation yesterday. Shameem said he was unable to carry out his duties due to the Criminal Court’s “obstruction” of criminal justice.

Criminal Court Chief Judge Abdulla Mohamed told local media today the court will continue with criminal trials even in the absence of a PG or Deputy PG unless the Supreme Court indicates otherwise. Mohamed had previously halted all criminal proceedings for three weeks in January citing state failure to appoint a PG within the 30 days,

In response, PG office Spokesperson and lawyer Hussain Nashid told Minivan News state prosecutors were now in a “legal void,” and could not attend court.

“We have sent a letter to all courts where cases were scheduled, informing them we refuse to attend court, due to the legal void we are currently facing in the absence of a PG or a Deputy PG to lead us. We have not yet decided what action we will take in the future, but the general consensus is to wait till a relevant authority decides on the matter,” he said.

Shameem’s resignation and the state prosecutors’ refusal to attend court brings the criminal justice system to a halt.

Extraordinary session

Shameem has called on President Abdulla Yameen to submit a new PG nominee and the 17th People’s Majlis – currently in recess and rapidly nearing the end of its five year term – to approve a candidate immediately. The newly elected 18th People’s Majlis is to take the oath of office in late May.

Chair of the Independent Institutions Oversight Committee Ahmed Sameer has called on the current Majlis to find “a permanent solution” rather than wait on a Supreme Court ruling.

“The solution is to hold another meeting before May 28 and select a PG. I call on the relevant bodies to do so,” he told local media.

But Speaker Abdulla Shahid told Minivan News the Majlis cannot approve a new PG unless Yameen submits a new nominee. The president’s first nominee – his nephew Maumoon Hameed – narrowly failed to garner enough votes in March.

“How can the parliament sit to decide on the matter when there aren’t any submitted nominees?” he said.

President Office Spokesperson Ibrahim Muaz Ali was not responding to calls at the time of press.

Shahid also added that he is not authorized to call an extraordinary session unless the President declares a state of emergency or one-third of the MPs request an extraordinary session.

“If a minimum of 26 members sign a motion asking for a special meeting to be held to decide on a matter in the parliament agenda, then it can be done. The government coalition has over 26 parliament members, so they will be able to do this if they so wish,” he said.

Progressive Party of Maldives (PPM) MP Ahmed Nihan said the governing coalition has not held any discussion on the matter as many MPs belonging to the coalition government are out of capital city Malé.

“This matter had not risen back when the last meeting of the parliament was held. At the time, there was no indication that the Deputy PG would resign. So we haven’t really discussed the matter yet. I believe that we might be having an internal meeting relevant to the matter tonight,” he said.

Obstruction of justice

In his resignation statement yesterday, Shameem highlighted the Criminal Court’s failure to prosecute foreigners involved in drug trafficking, delays in issuing rulings on drug related offenses and “unreasonable obstacles” in filing cases at the court.

The Criminal Court and PG office have been at loggerheads since January, with the court agreeing to proceed with criminal cases only after two Supreme Court orders in three weeks. However, the court formulated new procedures to delay and impede the PG office’s ability to submit criminal cases, Shameem has previously said.

“These issues obstruct the proper functioning of the criminal justice system. I am deeply saddened to note the extreme delay on the part of those who have the power to address these issues,” he said yesterday.

MP Sameer contended Shameem cannot resign in the absence of a PG. It is the PG who appoints a deputy and hence the deputy cannot resign if there is no PG, he argued.

“Surely, the President cannot accept this resignation. That is something that can be done by a Prosecutor General. There is no one at the moment to accept the Deputy PG’s resignation. However, if Shameem is not getting the necessary cooperation and is unable to fulfill his duties, then he can stop serving for the time being. I do not see any other possibilities in this matter,” Sameer told Haveeru.

But lawyers have told Minivan News no person can be “forced” to remain in any particular position.

“The Deputy PG can most definitely resign. A person cannot be forced to stay in a position based on the possible outcomes of a resignation. If the PG can resign, then the Deputy PG can resign too. If the law does not define a course of action in the instance that the country is lacking a PG and a Deputy, it is the lawmakers who must come up with a solution. It cannot be reason to force someone to remain in a position against his will,” lawyer Mohamed Shafaz Wajeeh said.

Another lawyer – on condition of anonymity – echoed Wajeeh’s views, adding “in the instance that we did not have a PG, it was the Deputy who was answerable to the oversight committee in parliament. Under that same logic, he can also resign if the PG can. The law must be interpreted in such a way that it does not allow for anyone to be in any position under force.”

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Alhan alleges involvement of senior government officials in stabbing

Maldivian Democratic Party (MDP) MP Alhan Fahmy has said that he believes senior officials of the current government was behind a knife attack on February 1 that left the opposition MP’s left leg paralysed.

Speaking at the last sitting of the 17th People’s Majlis today, the outgoing MP for Feydhoo noted the violent attacks on MPs during the past five years of multi-party politics and fledgling democracy, including the brutal murder of Progressive Party of Maldives (PPM) MP Dr Afrasheem Ali.

Both MPs and the public were left in a state fear by the attacks on parliamentarians, Alhan said.

Alhan was stabbed in Malé on the evening of February 1, 2014, while at the Breakwater cafe in the artificial beach area of the capital.

The results of the final MDP parliamentary primaries were officially revealed the same day, with Alhan losing the Feydhoo constituency seat to Mohamed Nihad, who received 316 votes to the incumbent’s 154.

After the results of the primary contest emerged, Alhan alleged irregularities in the vote via social media, declaring his intention to challenge the outcome.

Two suspects – Mohamed Sameeh of Shiny, Fuvahmulah, and Mohamed Naseem, of Ulfamanzil, Hithadhoo – were arrested by the police in connection with the case.

The case against the two suspects have since been forwarded to the Prosecutor General’s Office for prosecution.

Alhan has had a chequered recent past with the MDP, rejoining the party in June last year after an apparently acrimonious departure in April of the previous year. Then party vice president, Alhan was ejected – alongside then party President Dr Ibrahim Didi – after the pair publicly questioned the party’s official interpretation of the February 7 ousting of President Mohamed Nasheed.

The Feydhoo MP subsequently organised a rally – sparsely attended – calling for the freeing of the MDP from its talismanic leader Nasheed. Alhan’s soon joined the government-aligned Jumhooree Party,

Alhan was initially elected to parliament on a Dhivehi Rayithunge Party (DRP) ticket, making him one of the few MPs to have been a member of almost every major political party represented in parliament, barring the DRP’s splinter party, the Progressive Party of the Maldives (PPM).

He was dismissed from the DRP in 2010 for breaking the party’s whip line in a no-confidence vote against then Foreign Minister, Dr Ahmed Shaheed

Last August, Alhan was summoned by police in connection with the alleged blackmailing of Supreme Court Justice Ali Hameed, using footage of the judge having sex with two foreign women said to be prostitutes.

The MP tweeted a screenshot of a text message he claimed had been sent to his mobile phone by Superintendent of Police Mohamed Riyaz. The text read: “Alhan, will make sure you are fully famed (sic) for blackmailing Justice Ali Hameed. You don’t know who we are.’’

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Criminal Court refusing to accept serious cases, Deputy PG tells MPs

Deputy Prosecutor General (PG) Hussain Shameem has told MPs on parliament’s independent institutions committee that serious cases are pending at the PG office due to Criminal Court’s procedure on accepting cases.

Serious cases of corruption, drugs and child sex abuse had not reached trial because the Criminal Court was refusing to accept the cases, he said.

The court was informing the PG office that cases should be filed at the magistrate court on the home island of the accused, Shameem explained, noting that magistrate courts could not hear drug cases and that in most cases the suspect was residing in the capital.

The Criminal Court in December last year suspended all ongoing cases and decided not to accept new cases filed by the PG office, claiming the court cannot proceed with trials in the absence of a PG.

In February this year, the Criminal Court started accepting new cases after the Supreme Court issued a second ruling ordering the court to uphold the rule of law.

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Parliament approves hiking airport service charge to US$25

Parliament today approved legislation to raise the airport service charge from departing foreign passengers to US$25 from July onward as part of the current administration’s revenue raising measures.

The amendment bill submitted on behalf of the government by Progressive Party of Maldives MP Abdul Azeez Jamal Abubakur was passed with 32 votes in favour.

The government anticipates over MVR100 million (US$6.4 million) in additional revenue from the increased departure tax.

Parliament has also approved other revenue raising measures proposed by the government, including hiking import duties, reintroducing the bed tax until the end of November, raising the Tourism Goods and Services Tax (T-GST), and introducing GST for telecommunications services from May 1.

A proposal by the administration of former President Mohamed Waheed to raise the service charge to US$30 was narrowly defeated in April 2013.

The 1978 law imposing the airport service charge on departing passengers was first amended under the Maldivian Democratic Party government 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.

Other bills

A raft of other bills were also passed at today’s sitting of the People’s Majlis, including a bill on the state wage policy that was vetoed by former President Waheed in December 2012.

The legislation proposes the creation of a five-member National Pay Commission chaired by the finance minister with part-time members to determine salaries and allowances for the public sector and authorise pay rises.

The bill stipulates that the commission must consider the cost of living, inflation and the consumer price index in determining wages.

Moreover, salaries should incentivise government employees to work in islands with small populations.

The commission would also formulate standards and rules for determining the state’s pay scale or appropriate salaries based on qualifications and nature of employment.

Legislation on sole proprietors and business registration submitted by the administration of former President Nasheed in 2011 as part of an economic reform package was also passed today.

According to the draft legislation on business registration, the bill seeks to ensure that businesses, partnerships and cooperative societies operating in the Maldives are properly registered; specify what kind of businesses must be registered along with procedures for registration; and oblige businesses to submit information to the Registrar of Businesses.

The bill was also vetoed by President Waheed in April 2012 citing “socio-economic” concerns.

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Parliament approves import duty hikes

Parliament has approved amendments to the Import-Export Act to raise import duties on a range of goods as part of the current administration’s revenue raising measures.

The amendment bill submitted on behalf of the government by MP Mohamed Rafeeq Hassan was passed with 34 votes in favour and 19 against at yesterday’s sitting of the People’s Majlis.

Once the amendments (Dhivehi) are ratified by the president, a 15 percent tariff will be reintroduced for construction material, articles of apparel and clothing accessories, silk, wool, woven fabrics, cotton, man-made filaments, wadding, special yarns, twine, cordage, ropes, cables, carpets and other textile floor coverings, lace, tapestries, trimmings and embroidery.

Tariffs will also increased from the current zero percent to five percent for sugar confectioneries and diesel motor oil and raised from 10 to 15 percent for organic chemicals and compounds of precious metals, rare-earth metals, radioactive elements or isotopes.

Custom duties for vehicle seat covers will be raised from 35 percent to 75 percent.

While custom duties for organic and chemical fertilisers and pesticides as well as for live chickens, ducks, turkey, quail, and chicks will be eliminated, duties for polythene bags and items that contain hydrochlorofluorocarbons (HCFCs) will be hiked to 400 percent and 200 percent respectively.

The tariff hikes reverses changes brought to the law when import duties for most items were eliminated in late 2011 by the administration of former President Mohamed Nasheed ahead of the introduction of a Goods and Services Tax (GST).

Import duty was also eliminated for food items – with a few exceptions such as bananas, mangoes, watermelons, and papaya to protect the local agriculture industry – as well as for construction material, fabrics and garments, paper and books, environment friendly goods, paints, floor coverings, footwear, steel, medicine, medicinal machineries and products, fertilisers, electric vehicles, cosmetic goods and domestic appliances.

During yesterday’s final debate on the government-sponsored amendments, MPs of the opposition Maldivian Democratic Party severely criticised the indirect tax hikes, contending that the burden of increased prices of goods would be borne by ordinary citizens.

In a press statement yesterday, newly-appointed Maldives Monetary Authority Governor Dr Azeema Adam predicted a rise in the inflation rate as a result of hiking tariffs.

The central bank previously estimated the inflation rate to hold steady at four percent as global commodity prices were expected to decline this year.

The Maldives Customs Service meanwhile revealed last week that revenue in March increased by 12 percent compared to the same period in 2013 on the back of a 30 percent increase in imports.

“Total revenue collected in March 2014 was MVR 139.7 million, while it was MVR 124.8 million in March 2013,” MCS said in a statement.

“Importation of fuel (such as diesel, petrol and jet fuel) shared 36 percent of total imports in March, twice the value of food items imported during the same period. Third most imported category of goods in March was machinery and electronics which accounted for 15 percent of total imports in March.”

Exports, however, dropped by 65 percent last month compared to the same period last year, which was “linked to the 97 percent reduction in the volume of exports by the state-owned Kooddoo Fisheries Maldives Ltd, whose main export is Frozen Skipjack Tuna to Thailand.”

Customs also revealed that imports in the first quarter of 2014 amounted to MVR7.1 billion, which represented an 11 percent increase compared to the first quarter of 2013.

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