Cabinet accedes to New York Convention

It was decided yesterday in the Cabinet meeting that the Maldives should accede to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the New York Convention.

The New York Convention was adopted by the UN in 1958 which deals with international arbitration; a means of alternative dispute resolution in the areas of international trade and commercial transactions.

According to the Constitution, the Cabinet must send the matter to Parliament. The treaty will only come into force if and when it is approved by the People’s Majlis.

Cabinet members noted that the Convention would provide legislative standards for the recognition of arbitration agreements.

It was also suggested that accession to the Convention would create an “investor-friendly environment” in the Maldives.

Likes(0)Dislikes(0)

Parliament paralysed by punch-up pandemonium

Parliament was cancelled today by Speaker Abdulla Shahid, after DRP MP Ahmed Mahlouf reportedly approached MDP MP Alhan Fahmy, tapped him on the shoulder and informed him he was sitting in a DRP seat.

MPs from the major parties leapt to the defence of their respective party members, and the chamber quickly degenerated into a brawl.

Fahmy recently switched to the MDP from the DRP after being suspended from the DRP for voting against the party on the issue of a no-confidence motion against foreign Minister Dr Ahmed Shaheed. Mahlouf was particularly vocal regarding Fahmy’s decision to cross the floor, at one stage describing the MP for Seenu Feydhoo as a “political prostitute”.

After the battle, MPs were displaying their injuries to journalists outside parliament.

“They tried to attack us by force, try to create fear in the chamber. We are not afraid of them,” said DRP MP Ali Waheed, sporting a bandaged wrist. He would not say who attacked him, but said “everyone came after me because I am the tallest MP around.”

Mahlouf, he claimed, was punched in the lips.

“We are ready to fight back. As deputy leader of the party, my duty is to defend my party members,” Waheed said.

Staff at ADK hospital confirmed that MDP MP Shifaq Mufeed had been discharged after he was allegedly punched in the eye. Waheed, however, maintained that Mufeed’s injury was the product of make-up applied by MDP parliamentary group leader ‘Reeko’ Moosa Manik, a former movie star.

“We have a video of him without any damage before he went into the office of the MDP parliamentary group leader,” Waheed said, “and with a lot of injuries to his face afterwards. Reeko is a former movie star, and I congratulate him on the high quality of his make-up skills.”

Neither Fahmy or Mahlouf were responding to calls at time of press.

Stop the session

The chamber erupted during a debate on the report submitted by parliamentary finance committee calling for the dismissal of the Auditor General over charges of corruption.

The charges were made in a letter sent to the committee by former Anti-Corruption Commission member Hassan Luthfy.

“[MDP] disrupts parliament if there is anything not to their pleasure,” said Ahmed Nazim, deputy speaker and chairman of the finance committee.

“This will bring parliament to a total standstill, because the DRP will not back down on this one, and we cannot submit another committee report until we have concluded this one because they go in sequence.”

Mahlouf’s behaviour towards Fahmy “was probably uncalled for”, he said, “but the MDP members were protesting and not allowing anyone to talk. Mahlouf went up and told him he was talking from ‘one of our seats’.”

Nazim is himself no stranger to charges of corruption, recently pleading not guilty when charged with conspiracy to defraud the former ministry of atolls development.

At a press conference in August last year, Chief Inspector Ismail Atheef said police had uncovered evidence implicated the former Atolls Minister Abdullah Hameed, Eydhafushi MP Ahmed “Redwave” Saleem, former director of finance at the ministry, and Nazim in fraudulent transactions worth over US$260,000 (Mf 3,446,950).

Meanwhile, Auditor General Ibrahim Naeem told the press on Sunday that the charges against him, which have now been forwarded to the Prosecutor General’s office, were “made by people attempting to harm [my] office because we are trying to bring all the [stolen] money back into the country.”

However Nazim said the committee’s four members were unanimous that the Auditor General was guilty and called for his dismissal.

MDP MP Ahmed Easa said the party’s concern was not the corruption case against the Auditor General, “but a procedural issue.”

“Nazim did not get the approval of the committee,” he said, claiming that key MDP members of the committee received text messages from parliamentary staff informing them that the meeting at which the findings of the sub-committee was discussed had been cancelled.

“Staff are informed by the chairman,” he said.

At today’s sitting, Hinnavaru MP Ibrahim Mohamed Solih said the committee had not “completed the process” in compiling its report.

Solih said the letter from Luthfy in June last year was never officially entered in the Majlis records and parts of its annex were missing when the committee first set down to deliberate.

Moreover, said Solih, when the committee later decided to summon the Auditor General and members of the Anti-Corruption Commission, DRP MP Abdullah Abdul Raheem withdrew his motion to recommend a no-confidence vote.

Nazim however claimed that the report had been submitted according to new rules of procedure, and that MDP’s response was a cynical attempt to disrupt the chamber so no vote could be taken.

The situation is unlikely to unravel soon, and already text messages calling for rallies and protests have begun circulating. Groups of MDP activists engaged in a running protest this afternoon around parliament, pursued by police, scenes likely to continue as parliament tries to resolve its deadlock tomorrow.

“It was sad to see such pictures in parliament,” noted Ali Waheed. “But we are ready to get dirty if that is what it takes to clear this mess.”

Web of corruption: the story so far

At a DRP rally last night, MP Ahmed Nihan pledged that the Auditor General would be removed from his post and would have to “pack his belongings” before 2.30pm.

Meanwhile, at an MDP rally, ‘Reeko’ Moosa Manik called on party members to protest outside independent commissions to demand action against senior officials of the former regime accused of corruption, gross misappropriation and embezzlement.

He added it would take months to summon all complicit to court as they included the former president’s family, in-laws and associates.

“It would take more than 48 hours to read the verdict against even one of them because of all their theft,” he said.

The debate over the past two sittings proceeded intermittently as MDP MPs continually raised points of order claiming procedural violations and irregularities in the compilation of the report.

However, the Speaker ruled that as the case had not yet reached court, he had to table the report in the agenda.

Maafanu West MP Abdullah Abdul Raheem, who originally proposed the motion of no-confidence, accused MDP MPs of trying to “sabotage” the sitting and prevent the vote.

Presenting the report yesterday, Nazim said a sub-committee was formed to investigate the allegations against the Auditor General in a letter sent by former ACC member Hassan Luthfy.

The committee confirmed that the allegations in the letter were based on a report compiled by the ACC in June 2009 after reviewing financial records and documents at the Auditor General’s Office, he said.

There were four main allegations against Naeem: forging receipts to show that he paid for a trip to Baa atoll Thulhaadhoo; using office credit cards for personal purchases; purchasing health insurance through the office although it was included in his salary; and creating a “slush fund” of Rf6 million from the office budget for personal expenses.

After the subcommittee submitted its findings, Nazim continued, two motions were forwarded.

While MDP MP Ibrahim Mohamed Solih proposed summoning the auditor general, DRP MP Abdullah Abdul Raheem proposed a motion that the committee should recommend a vote of no-confidence.

Article 218 of the constitution states the Auditor General can be removed on the grounds of misconduct, incapacity or incompetence if “a finding to that effect by a committee of the People’s Majlis […] and upon the approval of such finding by the People’s Majlis by a majority of those present and voting.”

Although Raheem later withdrew his motion, Nazim said it was done after the committee voted to pass it.

“Therefore, Abdullah Abdul Raheem’s claim that he took it back is a definite falsehood. It is misleading. It is being done by people who don’t want this to go ahead and wants to keep the auditor general in his post,” said Nazim.

Nazim was shouted down by MDP MPs who raised points of order, left their seats and engaged in acrimonious arguments with opposition MPs.

Nazim said Naeem wrote to the Bank of Maldives himself to get a Visa Credit Card and an American Express Credit Card, both with credit limits of US$10,000.

Although Naeem himself wrote the offices’ operating manual, said Nazim, the auditor general used both cards for personal use without reimbursing the office 14 months after the expenses.

The subcommittee found that Naeem spent Rf91,000 from the Visa Card and Rf422,000 from the American Express Card.

Further, Nazim said Naeem transferred Rf6 million from the office account at the Maldives Monetary Authority (MMA) to a BML account for personal use.

But, he added, the finance committee had ordered the account to be closed when it finalized the state budget for 2010.

Naeem’s actions were in violation of several provisions of the state’s finance and asset regulations, he said.

Further, the ACC had noted that a Sony VIAO laptop Naeem purchased in Singapore was paid for by the office and import duties were not paid.

Nazim concluded by proposing the motion approved by the committee to call a vote of no-confidence.

In the ensuing debate, MDP MPs said the report was intended to discredit Naeem and the audit reports he issued that alleged rampant corruption under the former government.

DRP MP Ahmed Nihan meanwhile observed that Naeem showed up first in Google searches for “corrupt auditor general”.

Naeem was nominated by former president Maumoon Abdul Gayoom and approved by a DRP-dominated Majlis.

Likes(0)Dislikes(0)

Parliament accepts Decentralisation Bill

Parliament has unanimously accepted the Decentralisation Bill in yesterday’s sitting, reports Miadhu.

MPs voted to send the bill to be reviewed by an eleven-member committee, which was proposed by DRP MP Mohamed Mujthaz.

The committee members includes Rozaina Adam, Mohamed Mujaathaz, Abdulraheem Abdulla, Hamid Abdul Ghafoor, Ahmed Sameer, Rugiyya Mohamed, Gasim Ibrahim, Hassan Adhil and Ibrahim Riza.

The Majlis also approved the drug bill. Some MPs said they did not want to establish an independent Drug Court, and the Vice President should be included in the National Drug Council.

The bill has been sent to Social Affairs Committee for further deliberation and revision.

Likes(0)Dislikes(0)

President ratifies Tax Administration Bill

President Mohamed Nasheed has ratified the Tax Administration Bill on 18 March.

The bill was passed in Parliament on 8 March 2010, and has now been published in the government gazette.

The Act establishs an independent legal entity know was the Maldives Inland Revenue Authority (MIRA).

MIRA will implement laws and policies on taxation and will also be responsible for collecting taxes payable to the State.

There will be a board of directors appointed within 60 days of the establishment of MIRA. They will be responsible for formulating the policies of MIRA.

There will also be a Tax Appeal Tribunal which will oversee tax-related cases. The tribunal must be established within 90 days of the ratification of the bill.

Likes(0)Dislikes(0)

Ministry of Finance asked to provide list of political appointees

Minister of Finance and Treasury Ali Hashim was asked today to provide the Parliament with details of the number of political appointees, their titles and salaries under the current government.

Independent MP Mohamed Nasheed requested the information from the minister.

He said there had been a “war on words” regarding the number of political appointees in both the former and current governments, with some people saying there were as many as 600 appointees while others claimed there were fewer than 300.

“There has always been a comparison between this government and the previous one,” Nasheed said, referring to one of the things the Maldivian Democratic Party (MDP) criticised most about the former government: that it was =‘top heavy.’

Nasheed said he did not ask Minister Hashim for a list of cabinet members or even for the VP’s salary, only for the number of appointees, but the minister “is providing more than I asked for.”

State Minister of Finance Ahmed Assad said the Ministry of Finance would provide Parliament with the list of appointees soon since “there is no reason to withhold it.”

Whether or not the list would become a matter of public knowledge, he said, was “for Parliament to decide.”

Dhivehi Rayyithunge Party (DRP) MP Visaam Ali said the DRP was “really concerned” about the number of political appointees under the current government.

She said she was not only concerned about the government being “top heavy” but was worried because “they advocated different views” during their election campaign in 2007.

“What they are doing is different to what they promised the people,” Visaam said. “They promised the people an MDP government would be different.”

She added that the number of political appointees is even “worse than under the previous government” and there are more political appointees now earning higher salaries that they were under Gayoom’s government.

MDP Spokesperson Ahmed Haleem said government appointees “are not an issue” for the party, but issues dealing with civil servants were a major priority.

Haleem said during the 2007 presidential campaign, MDP had told the people they wanted the government of Maldives to be smaller.

“The former government had over 1,000 political appointees,” claimed Haleem. “Now we have just over four hundred.”

Likes(0)Dislikes(0)

Amendments to Armed Forces Act dismissed by Speaker

Parliament has thrown out the proposed amendments to the Armed Forces Act, put forward last week.

The Majlis was stalled last Wednesday after two contradictory amendments to the Armed Forces Act were proposed.

The first amendment came from Dhivehi Rayyithunge Party (DRP) MP for Manimaadhoo Amhed Mujthaz, proposing Parliament should ultimately have the power to approve or deny the president’s choice for army chief.

The second amendment came from Maldivian Democratic Party (MPD) MP Mariya Didi, which was meant to counteract DRP’s proposal.

MDP’s proposal sought the Act to remain unchanged, and for President Mohamed Nasheed to have sole discretion in appointing or dismissing the army chief.

DRP’s amendment was tied at 35 on each side and was settled by Speaker of the People’s Majlis Abdulla Shahid, who cast his tie-braking vote in favour of DRP.

However MDP’s subsequent amendment passed at 35-33 votes, causing both contradiction and chaos.

“The Constitution allows me to vote only if there is a tie,” Shahid said, adding that he should not comment on the issue since his role was an impartial one.

Shahid said he “consulted the two major parties [DRP and MDP] and the leaders advised me to throw out the amendments” and leave it open for the process to be started again.

He said he thought the amendments would be resubmitted in the future, but were currently no longer on the floor.

Mariya Didi said “now the bill is as it was before,” noting that “the Speaker has exercised his discretion” and decided the bill should not be considered at this time.

“You don’t make bills and pass legislation to cater only for that day, but for the situation to be better in the country,” Mariya said.

State Minister for Home Affairs Ahmed Adil said he personally thought giving the power to parliament was “a dangerous move” and the motives for the proposed amendments were “purely political”.

He said the fact that the amendments were thrown out showed “the country is moving in the right direction.”

Adil added the Parliament “should not put their hand in the judiciary or executive branches” and each branch should remain independent of the other.

Likes(0)Dislikes(0)

Parliament stalled by contradicting proposals to amend Armed Forces Act

Two contradicting amendments to the Armed Forces Act of Maldives were proposed at the People’s Majlis yesterday.

In May last year, Kulhudhufushi South MP Mohamed Nasheed submitted two bills to amend the Armed Forces Act and Police Act, respectively.

If passed, the president would need approval from the parliamentary committee on security services before appointing or dismissing the heads of both the army and police.

During the final reading of the bill yesterday, Dhivehi Rayyithunge Party (DRP) MP for Hanimaadhoo Ahmed Mujthaz proposed an amendment which would require parliamentary approval for the appointment of the army chief.

Currently, only President Mohamed Nasheed has the power to appoint or dismiss high-ranking military officials.

If the bill is passed with the amendment, a Majlis committee will review the president’s nominee, and he or she will be approved by a majority vote on the floor. If the president wants to dismiss the army chief, the same committee will evaluate the reasons and present a report to the floor before a vote.

After the vote on the amendment was tied at 35 on each side, Speaker Abdullah Shahid cast the tie-breaking vote, siding with DRP’s proposal to make parliamentary approval mandatory.

Another amendment to the bill was proposed by Maldivian Democratic Party (MDP) MP Mariya Didi which would counteract the DRP amendment.

Didi proposed that the power to appoint and dismiss the army chief should remain solely under the president’s discretion. This amendment passed at 35-33 votes.

Press Secretary for the President’s Office Mohamed Zuhair said “the president should have the discretion to choose the army chief”, adding that the bill was only passed because “the speaker took their side—he belongs to DRP.”

He said the president’s point of view was that “it is dangerous to politicise the defense forces,” and he hoped the “Majlis will come around to that [same] view.”

Zuhair noted that in a “worst-case scenario, the President will send [the bill] back for reconsideration.”

State Minister of Defense, Muiz Adnan, said “the president is the Commander-in-Chief and according to the Constitution he should have the power to make decisions.”

When asked why this amendment had been proposed in the first place, DRP MP Rozaina Adam said “if the president was treating everybody fairly, it wouldn’t be a problem.”

She said it became an issue “because we don’t trust the government to protect everyone’s rights.”

MDP MP Sameer said his party is not making any comments since the amendments are still being considered by the speaker. But in his own opinion, “the president should have the power.”

He said the speaker is “supporting the parliament having the power”, support he called “a conflict of interest” because “we know he is picking sides when he is meant to be impartial.”

The sitting was stopped when numerous MPs raised points of order after the conflicting amendments were passed.

Parliament will renew the issues on Monday, when the speaker will decide if there will be another vote or if he has made a decision on the issue.

Likes(0)Dislikes(0)

Bill on government preschools to appear before parliament

A bill governing pre-schools has been presented to parliament by Independent MP Ahmed Shiyam and was accepted by all 64 members present.

If the bill is approved the government would assume responsibility for funding the country’s preschools, which are now largely privately operated.

Deputy Minister for Education Shifa Mohamed said preschools were very important as they represented the first stage of education.

But she also noted that it was very difficult for the government to handle and develop preschools at a time when it was focusing on widening the availability of higher education.

”It would be very difficult for the government to handle the preschools as the country’s economic condition is also not very good, and I do not think the approved budget would be sufficient,” Shifa said.

She called on the MPs to include sufficient funding in the budget and increase it as necessary.

Press Secretary for the President’s Office Mohamed Zuhair said the government supported the preschool bill, approved by the majority of MDP MPs as well.

”Every one dollar spent on preschool education represents seven dollars saved in secondary,” he explained.

Likes(0)Dislikes(0)

Tax administration bill passed

Parliament yesterday passed legislation on the administration of taxation, the first of two bills proposed by the government to introduce corporate profit taxes.

Of the 70 MPs present and voting, 67 voted in favour, two voted against and one abstained. The bill was passed with 15 amendments proposed by MPs.

The legislation specifies taxpayers, exemptions and penalties for tax evasion. Presenting the bill in July last year, Finance Minister Ali Hashim said taxes will be levied on all profit-making businesses, including income from rent and government enterprises will not be excluded.

The legislation was formulated after extensive discussions with the Asian Development Bank, local businesses and other stakeholders, Hashim said.

Likes(0)Dislikes(0)