parliament – Page 7 – Minivan News

MPs debate restricting constitutional rights after arrest

The People’s Majlis yesterday accepted legislation that proposes restricting the constitutional rights to remain silent and retain legal counsel for suspects arrested for violent assault.

Presenting the amendments (Dhivehi) to a 2010 law banning “threats and carrying dangerous weapons and sharp objects” on behalf of the government, Progressive Party of Maldives (PPM) MP Ibrahim Didi said “special measures” were needed to curb increasing violent assaults, to ease the public’s fear and anxiety, and to establish public order and safety.

Opposition MPs contend that the changes are unconstitutional, suggesting that the government was blaming a lack of legislation for its failure to curb violent crime.

The amendments state that suspects arrested for assault with sharp objects or dangerous weapons could not exercise the right to remain silent “to any extent”.

Police could also question the suspect if he or she is either unable to have an attorney present within six hours or waives the right to retain legal counsel.

Moreover, the suspect could only consult a lawyer in the presence of a police officer for the first 96 hours after the arrest.

The legislation states that the rights of the accused would be narrowed in reference to Article 16(a) of the Constitution, which states that the rights and freedoms contained in chapter two could be limited by a law enacted by the People’s Majlis “only if demonstrably justified in a free and democratic society.”

While Article 49 of the Constitution states, “No person shall be detained in custody prior to sentencing, unless the danger of the accused absconding or not appearing at trial, the protection of the public, or potential interference with witnesses or evidence dictate otherwise,” the amendments state that the court must consider the criminal record of the accused, police intelligence reports, and other information submitted by police.

Additionally, the legislation stipulates that the Prosecutor General’s (PG) Office must press charges within 15 days of the arrest and the court must conclude the trial and deliver a verdict within 30 days of the case being filed.

In determining guilt, the court shall consider as evidence confessions or statements given at court, audio or video recordings of statements made by the accused to his or her lawyer, autopsy reports, and forensic evidence.

Attorney General Mohamed Anil revealed the government’s intention to narrow the constitutional rights at a press conference in October after a spate of violent assaults in the capital – which police said was a series of gang reprisals – saw three young men stabbed to death.

Speaking at a party rally earlier this week, PPM Parliamentary Group leader Ahmed Nihan reportedly said that the government would not stand to see young people labelled as gangsters.

Several incidents of gang violence have meanwhile occurred in recent weeks. Earlier this week, an 18-year-old was arrested after entering Billabong International High School with a machete during a gang fight.

Anil noted that the proposed amendments would specify harsher penalties for violent assault as the penalties in the current penal code were “far too lenient.”

The amendments propose the death penalty for premeditated murder in a violent assault using a dangerous weapon or sharp object as well as jail terms of up to 20 years for other offences specified in the law.

Following preliminary debate at yesterday’s sitting, the amendment bill was accepted with 66 votes in favour and five against and sent to the national security committee for further review.

“Incompetence and corruption”

Opposition Maldivian Democratic Party (MDP) MP Imthiyaz Fahmy – who voted against the amendments – told Minivan News that the obstacle to securing convictions for violent crimes was “incompetency and corruption within the criminal justice system.”

“When the government completely failed in tackling crimes that have gone out of hand they now blame it on legislation,” he contended.

“And true to their old style, the accused are to be beaten into confessing.”

Prior to the adoption of the new constitution in August 2008, the vast majority of convictions were based on confessions extracted during police interrogation and the police were often accused of torture and coercion.

During the parliamentary debate, PPM MP Ibrahim Didi said some cases were stalled at court for up to six years while the amendments would expedite the process and prevent the accused intimidating witnesses.

Several MPs objected to suspects being able to remain silent after committing serious crimes and insisted that violent crimes could be reduced if the bill is passed into law.

PPM Ahmed Thoriq suggested some rights guaranteed in the constitutional were unsuited to the Maldives.

Jumhooree Party Ali Hussain, however, contended that while fundamental rights and freedoms could be narrowed, completely depriving individuals of the right was unconstitutional.

PPM MP Mohamed Nasheed argued that preventing suspects from consulting a lawyer in private for four days was excessive and advised reducing the period to 36 hours.

Related to this story

AG seeks to strengthen prohibitions on carrying of sharp weapons

Five injured in spate of street violence in Malé

Gang assault with machete in Billabong high school

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Majlis approves nominees to Police Integrity Commission, Elections Commission

The People’s Majlis today approved President Abdulla Yameen’s nominees to fill vacancies in the Police Integrity Commission (PIC) and the Elections Commission (EC).

Following evaluation by the independent institutions committee, MPs approved Adam Saeed Moosa to the PIC with 62 votes in favour, two votes against, and two abstentions.

Saeed was a senior official at the PIC. Following approval of his nomination, the president’s second nominee – Fathmath Minhath – was not put to a vote.

Meanwhile, of three nominees to fill two seats on the EC, parliament only approved Amjad Musthafa, from Gaaf Alif Maamendhoo Alivilaage, with 63 votes in favour, one against, and five abstentions.

Former EC Secretary General Asim Abdul Sattar received 23 votes in favour and 47 against while Aishath Hafeez received 22 votes in favour and 47 against.

The committee, however, had awarded Asim the highest marks with 91.4 points following its evaluation.

The five year terms of two current commissioners – Mohamed Farooq and Ali Mohamed Manik – are due to end on November 24.

Amjad’s appointment would still leave three vacancies on the five-member commission. Former EC Chair Fuwad Thowfeek and Deputy Chair Ahmed Fayaz were stripped of their seats by the Supreme Court in March this year.

Parliament subsequently approved Ismail Habeeb to the EC to replace a commissioner who resigned due to poor health – ensuring a three-member quorum for the parliamentary polls to be held as scheduled on March 22.

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Government proposes import duty hike for oil, staple foodstuffs

The government has proposed raising import duties for staple foodstuffs and oil to 10 percent to raise additional revenue anticipated in the record MVR24.3 billion (US$1.5 billion) state budget for 2015.

Amendments (Dhivehi) submitted to the Export-Import Act on behalf of the government by Maldives Development Alliance MP Mohamed Ismail proposes raising import duties from the current zero rate to 10 percent for rice, flour, wheat, and sugar as well as oil or petroleum products.

Additionally, the bill proposes raising custom duties for tobacco from 150 to 200 percent and raising the duty for a single cigarette to MVR1.25.

The government has also proposed imposing a 20 percent custom duty for luxury cosmetics and perfume and a 200 percent custom duty for land vehicles such as cars, jeeps, and vans.

However, the bill proposes scrapping import duty for luxury yachts imported for tourism businesses.

The stated purpose of the amendment is revising import duty rates in light of “price changes in the global market”.

The latest monthly economic review from the Maldives Monetary Authority noted that “the International Monetary Fund (IMF) commodity price index fell in both monthly and annual terms in September 2014, by 4 percent and 9 percent, respectively.”

“The monthly and annual decline in commodity prices was attributed to the decline in petroleum, metal and food prices. The price of crude oil fell by 4 percent in monthly terms and by 12 percent in annual terms and stood at US$95.9 per barrel at the end of September 2014,” the review stated.

About 30 percent of the Maldives’ GDP is spent on importing fossil fuels. In 2012, US$ 486 million was spent on oil imports, and the figure is estimated to rise to US$700 million by 2020.

According to the Maldives Customs Service, of the MVR7.2 billion (US$466.9 million) worth of goods imported in the first quarter of 2014, one-third was spent on petroleum products.

Finance Minister Abdulla Jihad meanwhile told parliament’s budget review committee last week that the government was considering increasing custom duties “mostly for luxury items, or items that are harmful to the environment or health.”

Jihad had said the items under consideration were tobacco, perfume, and vehicles.

Other revenue raising measures

In his budget speech to parliament, Jihad also revealed plans to revise the electricity subsidy, which he said currently benefits the affluent more than the needy.

Targeting the electricity subsidy to low-income families or households would save 40 percent of the government’s expenditure on the subsidy, Jihad explained.

Jihad told the budget review committee that the government anticipates MVR533 million (US$34.5 million) in additional revenue from revising import duties, which was among five revenue raising measures proposed with next year’s budget.

The forecast for additional revenue from the new measures is MVR3.4 billion (US$220 million), including US$100 million expected as acquisition fees for investments in special economic zones and MVR400 million (US$25.9 million) from the sale and lease of state-owned land.

The other measures were introducing a green tax of US$6 per night in November 2015 and leasing 10 islands for new resort development.

An amendment (Dhivehi) to the Tourism Act has been submitted by Progressive Party of Maldives MP Abdulla Khaleel on behalf of the government for introducing the green tax.

The government has also decided to waive import duties for construction material and capital goods imported for resort development and provide sovereign guarantees for loans.

Meanwhile, at the ongoing budget debate, opposition Maldivian Democratic Party MPs have criticised plans to hike import duties while providing concessions to wealthy resort owners.

The burden of higher prices due to higher tariffs would be borne by the public, the MPs argued, contending that the government’s economic policies would benefit the rich at the expense of the poor.

“Our question is why shouldn’t an income tax be introduced? When MDP submitted an income tax bill to parliament it wasn’t passed. But we are telling this government to introduce an income tax and [tax] the affluent as well,” said MDP MP Eva Abdulla last week.

US$6 green tax to be introduced from November 2015, says tourism minister

Government submits revenue raising bills to parliament

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Government submits revenue raising bills to parliament

The government has submitted two bills to parliament for introducing a green tax and revising import duties to raise additional revenue anticipated in the 2015 state budget.

The President’s Office explained in a press statement on Thursday (November 13) that the government submitted amendments to the Tourism Act to introduce a US$6 per day ‘green tax’ on tourist establishments with the exception of guesthouses.

“The government decided to introduce this tax, as the Maldives is a tourist destination and the lack of a safe waste management system is adversely affecting tourism industry, to pave the way for the establishment of an adequate environment-friendly waste management system, to make Maldivian tourism an environment-friendly industry, and to provide an environment-friendly service to tourists,” the statement read.

The amendment also specifies the powers of the Maldives Inland Revenue Authority to collect the green tax, the statement added.

Tourism Minister Ahmed Adeeb told the press last week that the green tax would be levied in November 2015 – 11 months after the abolition of the bed-tax, which will continue to be charged at US$8 a night until the end of this month.

Adeeb insisted that the green tax would not hinder the demand from tourists – especially from Europe – who would become “champions” of the Maldivian environment by paying the tax.

While some resort owners have suggested that the combination of the bed tax with the rise in Tourism Goods and Services Tax (T-GST) to 12 percent this month has affected bookings, Adeeb vowed there would be no further hikes in T-GST during the current administration’s five-year term.

Opposition MPs have meanwhile sought assurances from the government that proceeds from the green tax would be used to finance environmentally sustainable infrastructure projects such as sewerage and coastal protection in the islands and not for the state’s wage bill.

In his budget speech to parliament earlier this month, Finance Minister Abdulla Jihad noted that MVR3.4 billion (US$220million) was forecast from new revenue raising measures, which also includes acquisition fees from investments to special economic zones (SEZs), income from the home ownership programme, and leasing 10 islands for resort development.

Import duties

The government also submitted amendments to the Export-Import Act to revise customs duties or tariffs to reflect “changes in the price of import goods in the global market,” the President’s Office stated.

In April, parliament approved import duty hikes for a range of goods proposed by the government as a revenue raising measure.

Jihad meanwhile told the budget committee last week that the government was considering increasing custom duties “mostly for luxury items, or items that are harmful to the environment or health.”

The cabinet’s economic council has not yet finalised the import duty or tariff revisions, Jihad noted, though he did reveal that the items under consideration include tobacco, perfume, and vehicles.

Tariffs for tobacco would be raised from the current 150 percent to 300 percent, 100 to 150 percent for cars, and zero to 10 percent for perfume, Jihad said.

Asked if higher custom duties would lead to higher prices, Jihad said the impact on the inflation rate would have to be studied for a proper assessment, which would take time to complete.

At parliament’s budget debate last week, Maldivian Democratic Party (MDP) MP Eva Abdulla criticised the proposed import duty hikes, noting that the government has decided to waive tariffs for construction material or capital goods for new resorts with development stalled due to financial constraints.

The burden of higher prices of goods due to higher custom duties would be borne by the public, she argued.

Eva noted that Jihad told the budget committee of plans to increase import duty for foodstuff and petroleum products.

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MDP says poorly prioritised 2015 education budget will lead to corruption

The Maldivian Democratic Party (MDP) has said that the poorly prioritised education sector of the 2015 state budget is structured in a way which will eventually lead to corruption.

While speaking at a press conference, MDP education and training committee chair and former education minister Dr Musthafa Luthfee criticised the allocation of a large budget to the education ministry without proper planning.

“A lot of money from the budget has been allotted to the education ministry,” claimed Dr Luthfee. “This includes the salaries of eight new political figures to be hired to the ministry bringing the total of political figures to 20.”

MDP’s budget review committee earlier this week previously accused the 2015 state budget of being ‘aimless’ and criticised it heavily for not being goal-oriented.

The record MVR 24.3 billion (US$ 1.58 billion) proposed budget for 2015 is currently at the committee stage in the Majlis, where today’s session was held behind closed doors for the first time in the legislature’s history.

Dr Luthfee today claimed that the education budget of MVR2.45 billion (US$ 160 million) had no connection whatsoever to the government’s manifesto which had promised to bring ‘innovative’ changes to the sector in the upcoming year.

Education minister Dr Aishath Shiham last week said “significant changes” had been brought to the education sector during the first year of the current administration, including introduction of Quran as a subject for grades one to seven, Arabic language in 20 schools, and vocational training.

A volunteerism programme and a new “vocational education stream” would also form a major part of next year’s plans for the sector, she added.

Malé City Council Deputy Mayor Shifa Mohamed – herself a former minister of education – alleged that the government had not budgeted the required MVR532 million (US$34.5 million) needed to raise the salaries of teachers despite promises made by both President Abdulla Yameen and Vice President Dr Mohamed Jameel Ahmed.

The Teachers Association of Maldives (TAM) has threatened to stop work numerous times this year, demanding the government to reform the education system and to settle the pay discrepancies.

After a full strike appeared inevitable in September, discussions with the government appeared to have gained results, with TAM expressing confidence that the president was attending to the issue.

The MDP education committee also expressed concern over the MVR481 million (US$31.25 million) increase in the recurrent expenditure of the ministry while questioning the need for 2,159 new staff to be hired under the ministry.

“Current teacher to student ratio stands at 1 to 9. We don’t understand the need to increase the number of teachers while the current teachers are not getting proper pay and the schools are in need of new facilities,” said Shifa.

The government currently employs just under 25,000 civil servants, representing over seven percent of the population. Finance minister Abdulla Jihad told the public accounts committee last month that government would freeze recruitment for 2015 in a bid to control spending.

Shifa today commented on the lack of allocated funds for the government’s promises to provide Arabic language as an additional subject in all schools and to ensure that Quran education is included in all stages of education.

The education committee’s vice-chair, Shaifa Zuabir expressed the committee’s concern over promises to make the Maldives Polytechnic a central hub in training the 95,000 individuals who are to be provided with employment during President Yameen’s government.

“95,000 individuals are to be trained from Maldives Polytechnic,” said Shaifa. “Yet we see the Government has only assigned a mere MVR 13.4 million (US$ 870,000) to Maldives Polytechnic.”

MDP Vice-Chair Ahmed Ali Niyaz claimed the 2015 budget is not different from those during former president Maumoon Abdul Gayyoom while stating the budget ‘serves for administrative purposes alone

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Budget debate begins in parliament

The budget debate began in parliament today with opposition MPs criticising higher taxes and pro-government MPs praising planned capital investments.

Progressive Party of Maldives (PPM) MPs contended that the budget would bring “revolutionary” changes to the economy and spur growth, noting that recurrent expenditure of MVR15.8 billion (US$1 billion) would be covered by government income or revenue of MVR21.5 billion (US$1.3 billion).

The MVR6.3 billion (US$408 million) allocated for the Public Sector Investment Programme (PSIP) – 24 percent of the budget – would see an unprecedented number of infrastructure projects launched in 2015, the ruling party MPs said.

Opposition Maldivian Democratic Party (MDP) MPs, however, questioned whether MVR3.4 billion (US$220 million) anticipated from proposed new revenue raising measures could be realised in full during the year.

MDP MPs also argued that the public would have to bear the burden of higher prices caused by import duty hikes and claimed the budget was “discriminatory” as constituencies represented by opposition MPs were ignored.

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Four applicants for auditor general’s job

President’s Office Spokesperson Ibrahim Muaz has told local media that applications from four individuals have been received for post of auditor general.

While the application deadline ended on Monday, Muaz stated that the applications are currently being processed. He declined from providing any information regarding the applicants other than saying that none were females.

On October 29, the parliament approved an amendment proposed by ruling Progressive Party of Maldives (PPM) MP Ahmed Thoriq to the Audit Act enabling the president to reappoint the auditor general, four years before the end of the incumbent Auditor General Niyaz Ibrahim’s seven year term.

The recent amendment stipulates that the president must submit a nomination for the post to the parliament 30 days from the ratification of the act.

The amendment was passed despite the opposition Maldivian Democratic Party (MDP) members’ argument that it should not have been put to a vote as it allows the discharging of the incumbent without following the constitutional provisions for impeachment.

The amendment came into effect on the same day that the Auditor General signed a damning report into an alleged US$6 milllion corruption scandal involving PPM Deputy Leader and Minister of Tourism Ahmed Adeeb – a report Adeeb claimed was politically motivated.

Earlier in November, Niyaz Ibrahim told local media that he will not be reapplying for the post, and that instead he intends to challenge the constitutionality of the amendment in court.

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MPs quiz finance minister about revenue raising measures

MPs on the budget review committee quizzed Finance Minister Abdulla Jihad yesterday about revenue raising measures proposed within the record MVR24.3 billion (US$1.5 billion) state budget for 2015.

Briefing the committee yesterday (November 10), Jihad explained that MVR3.4 billion (US$220 million) in additional revenue is anticipated from raising import duty rates from July onward and introducing a ‘green tax’ for tourists.

Additionally, acquisition fees from investments to special economic zones (SEZs), income from the home ownership programme, and leasing 10 islands for resort development would help raise the forecast revenue.

The minister also told the committee that domestic debt had reached about MVR20 billion (US$1.2 billion)- 39 percent of GDP -making the rolling over of T-bills “a nightmare”.

The government was considering increasing custom duties “mostly for luxury items, or items that are harmful to the environment or health,” he said.

Tariffs for tobacco would be raised from the current 150 percent to 300 percent while duty would be raised from 100 to 150 percent for cars, and zero to 10 percent for perfume, Jihad said.

Asked if higher custom duties would lead to higher prices, Jihad said the impact on the inflation rate would have to be studied, which would take time to complete.

Jihad stressed that the government has ceased deficit monetisation – borrowing money from the central bank to finance the deficit – in May, as a result of which the inflation rate was reduced to 1.4 percent.

In April, parliament approved import duty hikes for a range of goods proposed by the government as a revenue raising measure.

Meanwhile, the forecast for income from SEZ acquisition fees is US$100 million, Jihad revealed, which is expected by August 2015.

A further MVR400 million (US$25.9 million) is forecast from leasing and sale of land from across the country, Jihad said – in particular, plots from unused reclaimed land in various islands.

The state-owned land designated for leasing or sale falls under three categories, he explained, which were residential, commercial, and industrial.

Moreover, 10 new islands would be leased next year for resort development, he continued, which would generate income for the government in the form of acquisition costs.

As an incentive or relief for new resorts with development stalled due to financial constraints, Jihad said the government would waive import duties for construction material or capital goods next year.

Tourism Minister Ahmed Adeeb revealed yesterday that a green tax of US$6 per night would be introduced in November 2015 and guest houses would be exempt from the tax.

Jihad said the income from the green tax would be used for water, sewerage, and coastal protection projects.

Of the proposed revenue raising measures, import duty revisions and introduction of a green tax would be subject to parliamentary approval, which the finance minister hoped would be granted as the budget was passed.

Legislative compromises to new revenue measures led Jihad to express fears in August that the predicted state deficit for 2014 would more than double in 2014.

State debt

The outstanding stock of treasury bills (T-bills) is currently MVR10 billion (US$648.5 million), said the finance minister.

In his budget speech last week, Jihad observed that the state’s debt would reach MVR31 billion (US$2 billion) or 67 percent of GDP by the end of 2014.

Expenditure on state employees in 2014 would reach MVR15.8 billion (US$1 billion), Jihad observed, while MVR3.2 billion (US$207 million) would have been spent on subsidies and social security benefits.

Consequently, the government was facing serious difficulties in “managing the state’s cash flow and financing the budget” as well as securing loans for budget support, Jihad said.

According to the central bank, the total outstanding stock of government securities was MVR13.6 billion (US$881 million) at the end of September.

Spiralling debt is threatening “the economy’s health”, Jihad said yesterday, with the rolling over T-bills proving to be difficult as the ministry has to plead with banks for extension of repayment periods.

“For example, if MVR600 million matures this week and there is MVR700 million in the public bank account, if the MVR600 million is rolled over there’ll be MVR100 million. How can we run the state with that? It can’t be done,” he explained.

The solution was raising additional revenue by utilising resources such as uninhabited islands, he continued, and appealed for cooperation from parliament. Additionally, the government was trying to extend the periods for repayment of debt.

The interest rate for T-bills is currently 7.5 percent, Jihad said, down from 10 percent before the current administration took office.

“This year we estimate that MVR1.2 billion worth of T-bills have been used by the state for finances. In 2015, it will be MVR440 million,” he noted.

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Bill proposed to exempt domestic air travel from T-GST

MPs today debated amendments submitted on behalf of the government by the Maldives Development Alliance (MDA) MP Mohamed Ismail to exempt domestic air travel or ticket prices from Tourism Goods and Services Tax (T-GST).

The amendments (Dhivehi) to the GST Act of 2011 also proposed exempting goods sold at shops in resorts, guesthouses, and hotels that are exclusively for staff from the 12 percent tax rate.

A T-GST hike from eight to 12 percent – approved by parliament in February as part of revenue raising measures proposed by the government – came into effect on November 1.

Subsequently, local airlines Maldivian and Flyme imposed a 12 percent sales tax on ticket prices and increased airfare by about MVR32 per ticket.

“Now a [ticket] to a flight to Addu has gotten more expensive than a flight to Colombo. This is not, in any situation, how it should be priced,” former President Mohamed Nasheed told local media following the tax rise.

Presenting the legislation at today’s sitting of parliament, MP Mohamed Ismail said the purpose of the amendment bill was to exempt Maldivians from the tax hike.

While the bill was submitted on October 22 before the T-GST rise came into force, the MP for Haa Alif Hoarafushi noted that its inclusion in the agenda was slightly delayed.

The bill also states that any visitor who enters the country on a tourist visa shall be considered a tourist.

If the bill is passed into law, the GST rate for domestic airfare would be six percent.

The Maldives Inland Revenue Authority (MIRA) had anticipated MVR34 million (US$) in additional income as a result of the tax hike.

All MPs who spoke during the preliminary debate were in favour of the revision and the T-GST exemption for domestic air travel.

However, opposition Maldivian Democratic Party (MDP) MPs criticised the majority party or ruling coalition for approving the tax hike in February without the exemption for locals.

As the bill would have to be reviewed by committee before it could be passed, MDP MP Ali Nizar said the government had ample time to amend the law before November.

Jumhooree Party MP Faisal Naseem also noted that MPs would have known in February that T-GST would be charged for domestic airfare and goods sold for tourism workers.

“What I want to note today is, would we not have to propose an amendment again for a six percent refund?” the MP for Kaashidhoo asked.

If MPs wished to reimburse locals for the six percent extra charge, Faisal suggested adding a provision in the amendment bill during the committee stage.

He also called on MPs to expedite the legislative process and pass the amendment as soon as possible.

Following the preliminary debate, the bill was accepted unanimously with 60 votes in favour and sent to the whole house committee.

Introduced in 2011, T-GST generated around MVR2 billion (US$129 million) between January and September this year – equal to just under 24 percent of all government revenue.

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