Tag: parliament

President sends letters to three MDP MPs requesting “clarification” of corruption allegations against government

President Mohamed Nasheed has sent letters to Maldivian Democratic Party (MDP) MPs Ahmed Rasheed, Mohamed Musthafa and Shifaq Mufeeq, requesting they clarify corruption allegations made recently against the government.

According to the President’s Office, the Nasheed requested the MPs send details and evidence related to the corruption allegations as soon as possible, and urged their cooperation.

Mustafa told Minivan News that he had received the letter sent by the President and that he would share all the information he had, as requested by the president.

‘’These corruption allegations have become a national issue and the President is obliged to investigate it,’’ Mustafa said. ‘’I believe that when the president makes a request, we are obliged to share whatever information he wishes. There are many corruption allegations against senior officials of MDP and some serious allegations that we cannot share with the media right now,’’ he claimed.

“We will be sharing this information later,” he said, adding that he would reply to the president’s letter.

Several MDP MPs have recently alleged in parliament that there were corruption allegations in the government and that these should be investigated and stopped.

On November 21 during a debate in parliament MDP MP Shifag accused MDP Chairperson and MP ‘Reeko’ Moosa Manik of corruption.

He claimed that excavators sent by Moosa’s Heavy Load Company to the SAARC Summit preparations were not usable, but that Moosa was paid millions of rufiya in lease payments for the excavators that he was not entitled to receive.

MDP MP Ahmed Rasheed claimed that same day in parliament that there was corruption in the government to a level that was ”concerning and dangerous.”

Ahmed Rasheed was not in town and was not available for a comment, while Shifag was in a committee meeting and was unavailable for a comment.

Moosa also said he was in a meeting and was unable to comment.

Last week Transparency International revealed that the Maldives had risen slightly to rank 134 in the organisation’s Corruption Perception Index (CPI).

The country scored 2.5 on a scale of 0 (highly corrupt) to 10 (very clean), placing it alongside Lebanon, Pakistan and Sierra Leone.

The score however is a mild improvement on 2010, when the Maldives was ranked 143th and below Zimbabwe. The Maldives still rated as having higher perceived corruption than many regional neighbours, including Sri Lanka (86), Bangladesh (120) and India (95).

Project Director of Transparency Maldives, Aiman Rasheed, warned that the ranking could not be compared year-to-year, especially in the Maldives where there were only a three sources used to determine the index (India has six).

“Corruption in the Maldives is grand corruption, unlike neighbouring countries where much of it is petty corruption,” Rasheed said. “In the Maldives there is corruption across the judiciary, parliament and members of the executive, all of it interlinked, and a systemic failure of the systems in place to address this. That why we score so low.”

Faced with such endemic and high-level corruption, it was “up to the people of the Maldives to demand better governance”, he said.

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Parliament sitting cancelled for lack of quorum

Deputy Speaker Ahmed Nazim cancelled today’s sitting of parliament after 40 minutes stating that MPs “deliberately” left the chamber to force a loss of quorum.

After ringing the quorum bell and waiting five minutes when the number of MPs in attendance fell below the 20 needed for a quorum, Nazim said quorum was lost because MPs intentionally left the chamber.

“Since MPs do not want the sitting to go ahead I have decided to end today’s sitting now,” he announced at 9.42am.

Today’s sitting was called off shortly before preliminary debate was due to commence on a resolution proposed by Jumhooree Party MP Ahmed Moosa regarding the leasing of uninhabited islands in Lhaviyani atoll.

Prior to the presentation of the resolution by the Kurendhoo MP, Education Minister Shifa Mohamed answered queries from MPs for thirty minutes during the Minister’s Question Time, usually the first order of business for parliament sittings.

Since the beginning of the final session of the year in October, parliament was deadlocked for three weeks over a dispute concerning the right of convicted MP Ismail Abdul Hameed to attend sittings until the Supreme Court ruled on his appeal of the Criminal Court verdict.

While the past three sittings were adjourned before time due to loss of quorum after the 12.30 break, a total of 11 sittings out of the 18 held so far were disrupted and cancelled for lack of quroum, with some sittings lasting less than two hours.

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Parliament rejects formation of Women and Children’s Affairs committee

A resolution to create a parliamentary committee on Women and Children’s Affairs was voted down in today’s session.

The resolution, submitted by Thulusdhoo MP Rozaina Adam, was approved by 26 of 55 MPs and rejected by 29. There was one absention.

According to Haveeru, some members justified their rejection on a lack of precedent–Parliament does not have permanent committees for specialised groups–and said that admitting one such group plans would require plans be made for fishermen and farmers.

Others pointed out that the government does not have a specific ministry for women and children.

A few MPs said one more permanent committee would hinder Parliament’s work.

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State budget for 2012 submitted to parliament

The state budget for 2012 was submitted to parliament today by Finance Minister Ahmed Inaz with a projected fiscal deficit of 9.7 percent, down from 21 percent in 2009, 16.1 percent in 2010 and 10.1 percent in 2011.

In his introductory statement, Inaz said the programme-based budget was prepared with special focus on producing results and maintaining recurrent expenditure in line with income.

“The programmes included in the budget are based on the Strategic Action Plan,” he explained. “Special attention has been given in the budget programmes to provide adequate and quality service to the public. The government’s aim is to match up the figures in the budget with development plans and ensure that all state expenditure is made to achieve a stated target.”

Steering committees have been formed to oversee the 31 programmes in the budget, Inaz continued, urging MPs to evaluate the progress of implementation over the course of the year.

Total expenditure out of the 2012 state budget is estimated to be Rf14.6 billion (US$946.8 million), representing an 18 percent increase from 2011.

With the enactment of taxation legislation under the government’s economic reform package, revenue is projected to increase 11 percent from 2011 to Rf10.8 billion (US$700 million) next year with tax revenue expected to account for Rf7.3 billion (US$473 million).

The resulting fiscal deficit is to be plugged with Rf1.9 billion (US$123 million) in foreign loan assistance, Rf2 billion (US$129.8 million) forecast as budget support, and Rf750 million (US$48.6 million) from privatisation proceeds and sale of treasury bills and bonds in the domestic market.

Among the programmes that account for the increase in government spending, said Inaz, include a universal health insurance scheme and construction of housing units with foreign loan assistance.

Inaz noted that Rf2.1 billion (US$136 million) was allocated for education – which includes the ‘Hunaru’ training programme, student loan schemes and projects for improving school infrastructure – and Rf100 million (US$6.8 million) as capital investment for health corporations along with Rf20 million (US$1.2 million) for local councils to strengthen the public health sector.

While 44 percent of recurrent expenditure will be spent on salaries and allowances for state employees, Inaz said the wage bill has been reduced as a result of the voluntary redundancy programme conducted this year and the transfer of civil servants to corporatised entities.

State benefits and subsidies meanwhile account for 30 percent of recurrent expenditure followed by 17 percent (Rf120 million or US$7.7 million) on administrative costs.

The government is currently undertaking a review with World Bank assistance to ensure that subsidies are “means-tested and targeted” in 2012, Inaz revealed.

Inaz observed that unlike previous years, state revenue in 2012 will cover recurrent expenditure while deficit spending will be on capital investments.

The Rf3.8 billion (US$246 million) allocated for capital expenditure and net lending in 2012 represents a 43 percent increase from 2011, Inaz noted, adding that “the main reason [for the increase] is the estimated rise in foreign aid and large projects” such as the construction of 500 housing units with loan assistance from the Indian Exim (Export-Import) Bank and 2,500 housing units with loan assistance from the Chinese Exim Bank.

“Although total expenditure will increase as a result of these projects, we believe it is one of the most important projects that should be undertaken right now as resolving the shortage of housing is also the solution to a number of social problems,” Inaz said.

Investment programmes in 2012 fall under two broad categories of climate change and adapation programmes – which includes coastal protection, harbour construction, land reclamation, investments in renewable energy as well as establishing water and sanitation systems – and socio-economic investment programmes such as the housing projects.

Reiterating that the main priority in formulating the budget was to ensure value for money spent in terms of providing services, Inaz however explained that “due to the present structure of the state, Rf32 out of every Rf100 is spent on salaries and benefits, Rf6 is spent on interest payments on loans and Rf13 is spent on administrative costs.”

“After spending Rf27 [out of every Rf100] on capital expenditures, there is just Rf22 left to spent on services that offer direct benefits to the public,” he said, adding that Rf22 out of every Rf100 had to be spent on loan repayments.

2011

As expenditure outstripped revenue by Rf3 billion (US$194.5 million) in the 2011 budget of Rf12.9 billion (US$836 million), Inaz said the deficit was plugged through foreign aid and loan assistance as well as proceeds from privatisation and sale of T-bills and bonds.

Government income is meanwhile expected to reach a record level of Rf9 billion (US$583.6 million) this year.

Based on current estimates, said Inaz, the economy grew by 7.5 percent in 2011 compared to 5.7 percent in 2010. The forecast for economic  growth in 2012 is however 5.5 percent.

On the tourism industry, which accounts for 70 percent of GDP, Inaz said arrivals were expected to have risen 21 percent in 2011 from the previous year.

As of the end of September, tourist arrivals are 17.7 percent higher than 2010.

Although fish catch by volume rose 3.9 percent from 2010 in the first seven months of the year, Inaz said the Maldivian fisheries industry was not expected to improve in the next two years with the continuing decline of fishing in the Indian Ocean.

The introduction of long-line fishing and development of an aqua-culture and mari-culture industry was important to raise productivity, Inaz suggested.

With imports expected to rise in 2012, Inaz said the current account deficit will increase from 26 percent of GDP in 2011 to 28 percent next year.

To plug the widening current account deficit, said Inaz, economic policies in the budget were geared towards increasing exports and growing small and medium-sized businesses.

Inaz explained that the worsening balance of payments was tied to the ballooning fiscal deficit since 2005, which increased local currency in circulation and resulted in an “unstable foreign exchange market” and the creation of a black market for dollars.

In addition to tightening fiscal policy and rationalising expenditures, Inaz said money changers had to be regulated and the use of Maldivian rufiyaa as the legal tender should be enforced.

Expressing concern that 47 percent of transactions in the domestic economy were made through other currencies, the Finance Minister called on the Maldives Monetary Authority (MMA) as the country’s central bank to take measures to enforce the use of rufiyaa as legal tender.

A senior government official meanwhile told Minivan News that the government was still waiting on the income tax bill to be passed by parliament. The proposed tax will apply only to those who earn over Rf 30,000 a month (US$2000).

“It is not significant in terms of revenue, but it is important in terms of governance as it gives us the full picture,” the source said. “It will enable a full system of reporting and close loopholes that allow people to pass off business income as their own.”

The 3.5 percent tourism goods and services tax will be raised to six percent next year.

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Parliament passes bill on protection of trees

Parliament today passed a bill on protection of trees and foliage to govern rules for quarantining and sent a bill on small and medium-sized businesses to committee for further review.

However a bill proposed by opposition MP Mohamed Mujthaz to extend the lease of resorts with stalled development by two years with suspended rent was rejected.

A proposal by Thulusdhoo MP Rozaina Adam to form a new standing committee on women and children’s affairs was debated after the General Affairs Committee Chair MP Nazim Rashad presented the committee’s report on the proposal.

Preliminary debate also continued on an amendment proposed by MP Hassan Latheef to the Civil Service Act.

The beginning of today’s sitting was delayed until 11am due to power shortages in the building. Several committee meetings scheduled for the morning were also cancelled due to the problem.

Following voting at 1.30pm, the sitting had to be adjourned at 1.53pm due to loss of quorum.

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Parliament summons Education Minister for questioning over Huraa drownings

Parliament yesterday summoned Education Minister Shifa Mohamed to question her about the Huraa drowning incident in which four students and the principal of Hiriya school died.

Police have meanwhile concluded their investigation into the incident and have sent the case to the Prosecutor General.

Shifa told Minivan News that  she was questioned about the incident itself, and about how the Education Ministry had reacted in order to avoid such incidents from reoccuring.

”I told the parliament committee that the Education Ministry conducted an investigation, which has been now concluded and sent to the Human Rights Commission of the Maldives (HRCM), police and other institutions,” she said. ”Police have concluded their investigation into the matter and sent it the Prosecutor General.”

Parents of the students had requested the Ministry not reveal the investigation report at the time because its potential political misuse would make it harder for parents to move on, she said.

She also revealed that there were four expat teachers involved in the incident who had been banned from leaving the country until the case was finalised.

”I asked the Permanent Secretary of the Education Ministry to take action against any civil servant that they found to have neglected their duties,” she said.

Police Sub-Inspector Ahmed Shiyam said the police investigation into the incident has been concluded.

”We cannot give further details of the case, the PG will decide whether or not to forward the case to the court,” he said.

Deputy Prosecutor General Hussain Shameem told Minvian News that the case with the PG’s office, which was  currently studying the investigation report to determine if it could be forwarded to the court.

He declined to give details of the investigation.

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Parliament passes bill reducing, eliminating import duties

Parliament today passed a bill proposed by the government under its economic reform package to amend the Export-Import Act of 1979 to reduce and eliminate import duties for a wide range of goods.

The amendment bill was passed today with unanimous consent of 60 MPs present and voting.

Among the items for which custom duties would be eliminated include construction material, foodstuffs, agricultural equipment, medical devices, passenger vessels and goods used for tourism services.

However, the bill was passed with an amendment to charge a Rf10,000 (US$650) annual fee for passenger vessels and no change to tariffs for spare parts. While import duties were eliminated for construction material such as cement, glass, tin, aluminium, plywood and plastic fittings, an import duty of five percent will be levied on tiles, which was reduced from the previous 25 percent.

Import duty was 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 would still be levied on bananas, papaya, watermelon and mangoes as a protectionist measure for local agriculture. Areca-nuts would have duty reduced from 25 percent to 15 percent.

Import duties for tobacco would be 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 total of Rf2.4 billion was projected as income from import duties in the 2011 budget. With the passage of the amendment bill today and ratification by the President, the figure is expected to decline to Rf1.8 billion next year. The shortfall is to be covered by Rf2 billion in tourism goods and services tax (T-GST) and Rf 1 billion as general goods and services tax (G-GST) revenue.

MDP parliamentary group leader MP Ibrahim Mohamed Solih was not responding to calls at the time of press.

PPM Media Coordinator and Vili-Maafanu MP Ahmed Nihan told Minivan News today that all members of the party’s parliamentary group voted in favour of the bill and stressed the importance of “providing relief to businesses” paying GST on top of custom duties.

“By this vote today, we have answered the MDP’s allegations that we tried to stop Majlis sittings to prevent this bill from being passed,” he said.

Speaker Abdulla Shahid and the ruling party should bear full responsibility for the cancellation of nine sittings over three weeks, Nihan said, as the dispute over the convicted Kaashidhoo MP’s attendance could have been avoided.

The PPM council member condemned the ruling party’s “efforts to blame the Majlis cancellation on opposition parties.”

“PPM will support any measure that will provide relief to the public,” he said, adding that the party would “very closely monitor” pricing by retailers following the elimination of import duties.

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Parliament deadlock continues

A third consecutive week of parliamentary sittings have been cancelled over an ongoing dispute over the attendance of Independent MP Ismail Abdul Hameed, who was convicted of corruption on August 29.

The last sitting on October 24 was cancelled after heated arguments between opposition and ruling party MPs over the Kaashidhoo MP’s right to participate in sittings until he exhausted the appeal process.

The High Court has since upheld the Criminal Court verdict.

Meanwhile a statement put out by the secretariat on Sunday explained that this week first sitting yesterday was called off as Speaker Abdulla Shahid’s efforts to resolve the dispute through discussions among parliamentary group leaders have been so far been unsuccessful.

The statement noted that according to article 74 of the constitution, “Any question concerning the qualifications or removal, or vacating of seats, of a member of the People’s Majlis shall be determined by the Supreme Court.”

The Supreme Court meanwhile concluded hearings today on a case filed by a private party over Hameed’s seat. According to the Majlis secretariat, Speaker Shahid has written to the Chief Justice requesting the case be expedited so that sittings could go ahead.

According to local media reports, the Supreme Court today heard from third parties who had entered into the case.

The statement however noted that committee meetings, where legislation is reviewed and stakeholders are consulted, have been taking place.

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MP beaten and handed to police semi-naked after alleged extra-marital affair

Independent MP Ahmed Amir was assaulted by a group of people around 3:00am in the morning last Thursday, following allegations that the MP for Kudahuvadhoo was caught with a married woman in a residence in the Maafanu ward of Male’.

The MP was reportedly severely beaten and handed over to police semi-naked before dawn on Thursday, and has now flown to Sri Lanka for treatment.

Police Spokesperson Sub-Inspector Ahmed Shiyam told Minivan News that MP Amir insisted that the allegations against him were completely false.

“The [attackers] called police at the time, so officers went there and brought MP Amir in for questioning,” Shiyam explained. “Both parties have reported the same case differently, MP Amir said he was stopped and attacked while he was passing by, while the group claims that he slept with the wife of another man.”

Amir had bruises on his face and suffered other injuries, he added, stating that police were investigating the case.

A ruling party MP told Minivan News today on condition of anonymity that the incident occurred when MP Amir was caught with the woman by her family.

“Then they attacked him and this really happened, according to what I know,” he said.

MP Amir was meanwhile was unavailable for comment as both his mobile numbers were temporarily disconnected.

Amir however told local media that he was grabbed by a group of men while passing by a road near Indira Gandi Memorial Hsopital (IGMH), taken inside a room, stripped and beaten up.

Amir claimed the attackers robbed him of his mobile phone and wallet before turning him in to police.

Secretary General of Parliament Ahmed Mohamed told Minivan News that Amir was not arrested and police therefore did not inform the secretariat about the incident.

According to parliamentary rules of procedure, police have to inform the parliament if they intended to arrest an MP and escort him to parliament sittings before a court decided on his or her case.

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