Tag: parliament

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MP Riyaz Rasheed of the Dhivehi Qaumee Party (DQP) has withdrawn a government-sponsored amendment to the Tourism Act to keep a US$8 bed tax in place beyond 2013, citing lack of support from parties in the ruling coalition.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

President Dr Mohamed Waheed has today commenced a visit to the islands of Dhanbidhoo and Kunahandhoo in Haddhummathi Atoll.

According to the President’s Office website, harbour projects for the two islands will officially be inaugurated by Dr Waheed during his visit.

Last Thursday (April 11), the president commenced a tour of North Maalhosmadulu Atoll in order to review the progress of island developments in the area.  The visits come ahead of presidential elections scheduled for September this year.

However, President Waheed’s electioneering has come under strong criticism from the government-aligned Progressive Party of Maldives (PPM) MPs in parliament this week.

MP Ali Arif accused the president of discontinuing public services and development projects, while using state funds to finance his election campaign, during a parliamentary session on Monday (April 15).

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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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Speaker Shahid resigns from DRP, “one can read between the lines,” claims MDP

Speaker of Parliament Abdulla Shahid has today confirmed his resignation from the government-aligned Dhivehi Rayyithunge Party (DRP) amid rumours of his defection to the opposition Maldivian Democratic Party (MDP).

“As of today I have resigned from DRP. I shall continue to avail every opportunity to serve our nation and its people,” Shahid tweeted today.

However, Shahid declined to comment on speculation that he would be defecting to the MDP.

“I have left DRP as I’ve announced via Twitter.  Other than that, I have no comment today,” he said via SMS.

DRP Spokesperson Zeena Zahir confirmed to local media today that Shahid’s resignation letter was submitted to the party’s office.

Speaking at a rally in Addu City last night, MDP MP Ali Waheed claimed that Shahid would move to the former ruling party.

Meanwhile, MDP Spokesperson MP Hamid Abdul Gafoor told Minivan News that, “Shahid resigned from DRP and he has not denied a possible switch to MDP, but he has not announced such a switch officially either.”

“It is speculated and he has assisted us [the MDP] a lot, but I can’t say for sure because we are very hands off. It is his decision to make,” Hamid added.

“A meeting between Shahid and MDP may occur April 19 but it’s not confirmed,” he said. “Although everyone is being very coy, one can read between the lines.”

Local media reported recently that three other DRP MPs – MP Mohamed ‘Colonel’ Nasheed, MP Ali Azim and MP Hassan Adil – were also preparing to join the opposition.

The supposed reason for their defection, as reported in local media, was a clash among the party’s MPs.

Media reports also speculated that Shahid’s resignation and the possible defections of MPs resulted from the fallout of  a clash within the DRP parliamentary group over its wavering stand on no-confidence motions against Home Minister Dr Mohamed Jameel Ahmed.

A source in the MDP alleged to Minivan News that DRP Leader MP Ahmed Thasmeen Ali brokered a “last minute deal” with the government in exchange for DRP MPs abstaining in the no-confidence votes.

Newspaper Haveeru meanwhile reported today that Shahid signed for MDP yesterday (April 14) and that an official announcement would be made at a rally planned for the weekend.

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Reports of Speaker Shahid, DRP MPs’ defection to MDP unconfirmed

Rumours that Speaker of Parliament Abdulla Shahid and two other government-aligned MPs, Alhan Fahmy and Abdulla Abdul Raheem, have joined the opposition Maldivian Democratic Party (MDP) are being widely circulated by local media.

Minivan News was unable to confirm the reports at time of press as Speaker Shahid and the other MPs were not responding to calls. The DRP has acknowledged the rumours, but has said it has not been officially informed of the switch.

Local media has also reported that government-aligned MPs Mohamed ‘Colonel’ Nasheed, MP Ali Azim and MP Hassan Adil are also preparing to join the opposition.

Speaker Shahid, Ali Azim and Nasheed are all from government-aligned Dhivehi Rayithunge Party (DRP). The supposed reason for their defection, as reported in local media, was a clash within the party’s parliamentary group over its stand on recently scheduled no-confidence motion against Home Minister Mohamed Jameel Ahmed.

A source in the MDP familiar with the matter alleged to Minivan News that the defection of the MPs was prompted after DRP Leader MP Ahmed Thasmeen Ali brokered a “last minute deal” with the government in return for DRP not voting against the minister.

According to a 2010 report by former Auditor General Ibrahim Naeem, loans totalling Rf1 billion taken out by Fonadhoo Tuna, a company owned by Thasmeen at the time, and luxury yachting company Sultans of the Sea, connected to the party leader, had yet to see any repayments.

Together the loans accounted for 13 per cent of the total amount loaned by the bank in 2008. Naeem commented at the time that defaults on bank loans issued to “influential political players” could jeopardise the entire financial system of the country.

DRP MPs Mohamed Nashiz and Ali Azim were summoned to court in November 2012 regarding the debts, just as parliament was voting to determine whether no-confidence motions against ministers could be taken in secret.

Those summons were in relation to a Civil Court ordering Mahandhoo Investments and Kabalifaru Investments – two companies with ties to DRP Leader Ahmed Thasmeen Ali – to repay millions of dollars worth of loans to the Bank of Maldives Plc Ltd (BML). The verdict was also upheld by the High Court in October 2011.

MP Azim alleged at the time that President Mohamed Waheed Hassan and other senior members of the executive had approached him, offering to cancel the court summons if he agreed to vote for the secret balloting in a way they preferred.

According to the MDP source, ahead of the no-confidence motion on April 8 the DRP had “in principle agreed” to vote against the minister, but had changed their minds at the last minute. Speaker Abdulla Shahid was “left no choice but to call off the session”.

Shahid called off the parliamentary session following point of orders taken by opposition MDP MPs over the issue of the secret ballot, which the Supreme Court had overturned despite parliament’s earlier vote in favour.

Upon concluding the session Speaker Shahid announced that the matter raised by MDP MPs regarding Supreme Court’s decision had been sent to parliament’s General Affairs Committee. He said the committee will review the decision and begin working the following day.

Despite the rumours, the DRP MPs have been in no hurry to confirm the reported switch.

Speaking to Minivan News, MDP Spokesperson MP Hamid Abdul Ghafoor claimed that “a re-alignment in favour of the opposition is definitely happening”.

“I can confirm you as I am a parliamentarian myself that several parliamentary groupings who previously stood behind the old dictatorship are slowly dismantling now. They have now started to realise that backing an old dictatorship is wrong,” said Ghafoor. “I can guarantee you that a re-alignment is definitely happening and dismantling of the old dictatorship is imminent.”

However Ghafoor declined to reveal the names of those MPs involved in the claimed switch.

Dhivehi Rayithunge Party (DRP) Deputy Leader Ibrahim Shareef said the party had received no official confirmation that Speaker Shahid or any of the party’s MPs had resigned from the party or were  looking to switch to the MDP.

However, Shareef said he could not rule out the possibility of such a switch in the current political climate, citing that political defections “occur very fast in this country”.

“Anything is possible” he admitted. “As far as we are concerned, there are a lot of rumors right now about a political switch.”

Should the defections happen as rumored, the number of opposition MDP MPs will be 35 – just 4 MPs short of the parliament’s simple majority required for the dismissal of cabinet ministers and pushing through legislation.

Parliament breakdown by party (prior to rumoured defection of five DRP MPs):
MDP 29
PPM 19
DRP 11
JP 3
PA 1
DQP 1
Independent – 11
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Parliament postpones no-confidence votes against Home, Defence Minister over issue of secret ballot

Parliament called off scheduled no-confidence votes set to be taken today (April 8 ) against Home Minister Mohamed Jameel and Defense Minister Mohamed Nazim, after Maldivian Democratic Party (MDP) MPs objected to the vote not being made in secret despite a parliamentary decision otherwise.

The Supreme Court in March struck down the amendment to parliament’s standing orders that allowed no-confidence votes to be made through secret ballot, declaring the amendment unconstitutional. The majority opinion of the Supreme Court contended that the move contravened article 85 of the constitution as well as parliamentary principles and the norms of free and democratic societies.

During today’s parliament session, Deputy Parliamentary Group Leader of MDP, MP Ali Waheed, contended that the Supreme Court’s ruling itself had been unconstitutional as it had exceeded its own mandate as under the constitution parliament is deemed a separate power of the state – which the Supreme Court does not have the jurisdiction to meddle with.

Waheed also warned that the MDP would not allow the speaker to go forward with the vote without making it a secret ballot.

Several other opposition MPs argued that government-aligned Dhivehi Rayithunge Party (DRP) was prepared to vote with the opposition should the ballot be a secret ballot, giving the vote the 39 MP majority needed for it to pass.

However, Deputy Parliamentary Group Leader of DRP MP Abdulla Mausoom denied the claim stating that the party’s stand was to abstain from the vote.

Mausoom told local media outlet Sun Online that the party had come to the decision in an attempt to prioritise national interest ahead of party politics and to prevent chaos and confusion among the public.

During the debate on the vote, members of the government-aligned Progressive Party of Maldives (PPM) spoke in favour of both Jameel and Nazim claiming that the vote was a tactic employed by the opposition to intimidate and harass the ministers.

Speaking during the debate, former Interim Deputy Leader of PPM, MP Abdul Raheem Abdulla said that Jameel a remarkable background and was one of the most educated and able ministers in the current government.

He also said that PPM was defending the Minister not because the party felt that the government of President Mohamed Waheed Hassan was doing any good, but because PPM MPs loved the nation and its well being.

Raheem Abdulla also applauded the minister for his “remarkable reforms” brought to the police institution, claiming that the police force “was a mess” during former President Mohamed Nasheed’s administration.

Speaking in the debate, MP Ali Waheed questioned the Home Minister as to why the police were excessively spending public funds on fireworks and celebrations when the country’s largest hospital IGMH did not even have enough doctors.

Meanwhile Independent MP Alhan Fahmy stated that although he did not question Jameel’s academic qualifications, he argued that the minister had failed in executing his duties and accused him of being negligent in looking into police misconduct.

Responding to the allegations levied against him, Jameel told parliament that the no-confidence motion filed against him by the MDP MPs lacked any basis.

Jameel, former Justice Minister during President Maumoon Abdul Gayoom’s administration, claimed that allegations against him were “misleading and politicised” and that the motion was put forth to achieve “political leverage”.

“When I took over as the Minister, the whole police institution was in a mess. I cannot fix everything in a year. Under my leadership, the role of the police has been expanded throughout the country. Demonstrations can now be held anywhere in the country peacefully,” he said.

Jameel also contended that police are now more professional and do not discriminate when executing their duties and responsibilities.

Order in the chamber was lost halfway through the morning session after Defence Minister Mohamed Nazim entered the parliament floor wearing his military colours.

Opposition MDP MP Mohamed ‘Kubey’ Rasheed took a point of order contending the parliamentary regulation did not allow Defense Minister – who was accompanied by his lawyer and the Deputy Attorney General – to enter the parliament floor with military colours.

Several other MPs also joined Rasheed in protest and the session had to be suspended for few hours.

Before the break, MPs decided to hold the debate on Defence Minister’s impeachment behind closed doors.

The parliament session reconvened at 1:00pm and when Speaker Abdulla Shahid called for the vote, MDP MPs began protesting, claiming that the vote should be a secret ballot.

After several failed attempts by the Speaker to calm the MPs, the session was cancelled. Speaker Shahid also announced that the matter raised by MDP MPs regarding Supreme Court’s decision had been sent to parliament’s General Affairs Committee.

Speaker Shahid stated that the committee with review the decision and will begin its work on Tuesday.

In October last year, the MDP submitted its first motion against Home Minister Jameel over concerns from the party of what it called an “unprecedented” increase in murders and assault in the Maldives since the transfer of power.

Despite the MDP withdrawing the no-confidence motion against the home minister a month later in November for an unexplained reason, a second no-confidence vote was submitted by the party in December.

A statement issued by the MDP accused Jameel of failing to control civil peace and order in the country, which it said had led to the loss of eight lives.

The MDP further referred to an incident in which a man on a motorcycle was killed after a police officer struck a second motorcyclist with his baton, causing him to collide with the first.

The MDP alleged that Home Minister Jameel had tried to cover up police involvement in the death.

A no-confidence vote was also due to be taken against Jumhoree Party MP and resort tycoon Gasim Ibrahim’s position on the Judicial Services Commission (JSC), which has come under fire internationally amid questions over its conduct and impartiality.

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Parliament to hold no-confidence vote against Home Minister Jameel, Defence Minister Nazim, JSC member Gasim Ibrahim

Parliament has scheduled a series of no-confidence votes for tomorrow concerning Home Minister Mohamed Jameel, Defence Minister Mohamed Nazim and JSC member Gasim Ibrahim.

Parliament rules state that a minimum of 39 votes are required to successfully pass a no-confidence vote against a government minister. The opposition MDP currently has 29 MPs, short 10 votes of the required majority.

While the Progressive Party of the Maldives (PPM) has said it will back the trio, the DRP, which has 15 MPs, has said the party will “decide tomorrow”.

Following the scheduling of the vote, President Mohamed Waheed Hassan told local media that he was confident that the government-aligned parties would “defend” his ministers from impeachment.

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Dhivehi Qaumee Party (DQP) to join coalition with President Waheed’s Gaumee Ithihaad Party (GIP)

The Dhivehi Qaumee Party (DQP) will join the coalition with President Mohamed Waheed Hassan Manik’s Gaumee Ithihaad Party (GIP).

DQP decided on the coalition during a council meeting held April 3 that included Waheed’s Special Advisor, DQP President Dr Hassan Saeed and DQP Vice President and Home Minister Dr Mohamed Jameel Ahmed, reports local media.

The DQP committee will also “make arrangements” to strengthen the coalition with the QIP.

This follows GIP’s announcement last Thursday (March 28) it plans to form a coalition with the religiously conservative Adhaalath Party (AP).

Neither AP or GIP presently have any elected members in parliament.

Previously Jameel took part in Progressive Party of the Maldives (PPM) Presidential candidate Abdulla Yameen’s campaign.

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