Amendments to banking law sent to committee

Amendments to the Banking Act of 2010 submitted on behalf of the government by Progressive Party of Maldives MP Ali Arif was sent to committee for further review at today’s sitting of parliament.

The amendment bill (Dhivehi) was sent to the economic affairs committee with 55 votes in favour and none against.

During the preliminary debate, most MPs stressed the importance of improving the financial sector and allowing new commercial banks to open.

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Former police commissioner calls for independent inquiry into jailbreak

Former Commissioner of Police and Jumhooree Party (JP) MP Abdulla Riyaz has called on the government to form an independent commission of inquiry to look into the escape of two convicts from Maafushi jail on Friday (October 17).

“I believe the [escape] of those who should be kept apart from society was due to the failure of an institution to properly fulfil its legally mandated responsibility,” Riyaz said during debate on an urgent motion submitted by Maldivian Democratic Party (MDP) MP Imthiyaz Fahmy at today’s sitting of parliament.

The MP for Kinbidhoo also advised strengthening the prisons department and ensuring that it is able to function professionally, claiming that the post of its highest-ranking official had changed three times during the past year.

Competent persons should be appointed to such posts, Riyaz continued, adding that he had confidence in the ability of the security services to find the escaped convicts.

In an appearance on state broadcaster Television Maldives on Sunday night (October 19), Home Minister Umar Naseer revealed that investigations were ongoing to determine whether prison guards were complicit in the escape.

“Nothing we have so far found in the investigation indicates any negligence or involvement of prison guards. However, if such a thing comes to our notice, we will take immediate action,” he said.

Debate

Opposition MPs meanwhile contended that the government’s “negligence and irresponsibility” allowed the dangerous criminals to break out from a high security prison.

Introducing the motion, Imthiyaz said the Maldives National Defence Force’s (MNDF) appeal for MPs to stay in at night was indicative of the prevailing state of fear and the government’s loss of control over “terror activity in the Maldives.”

“We believe this is an alarm bell for the loss of domestic security,” the MP for Maafanu North said.

Imthiyaz’s early day motion or motion without notice was accepted for debate unanimously with 53 votes in favour, which opened the People’s Majlis floor for a one-hour debate.

Public fears over personal safety and security was “a characteristic of a failed state.,” Imthiyaz continued.

Referring to the suspected abduction of Minivan News journalist Ahmed Rilwan, Imthiyaz noted Home Minister Umar Naseer’s acknowledgement of the involvement of gangs in Rilwan’s disappearance.

Weeks before Rilwan went missing, Imthiyaz said MDP had alerted the government to the actions of a vigilante group who abducted several young men in June.

The release of suspects who attacked an MDP rally in Addu City was a further sign of the state of the nation, Imthiyaz continued.

“But the government said at the time that the case would be investigated with the utmost seriousness. Police were also attacked,” he said.

“They were caught redhanded from the scene of crime with their faces covered and with wooden planks and iron rods in their hands. But they were all released in less than 24 hours.”

MDP MP Eva Abdulla noted that four murders and more than 30 violent assaults have taken place since the end of Ramadan.

“Death threats have been sent to about 15 journalists and 16 MPs as well as our families,” she said.

Moreover, she added, the main opposition party’s office was torched, crude oil was thrown on the residence of former President Mohamed Nasheed, and the car of MDP Chairperson Ali Waheed’s was vandalised.

“This is the state of the country today. This is one side of the news,” she said.

On the other hand, Eva continued, media reports have revealed that police are unable to identify the source of the death threats, a suspect arrested after a machete was buried in the Minivan News office door was released by the court, and eyewitnesses to violent assaults are scared to testify in court.

Pro-government MPs meanwhile criticised the MDP government’s track record and referred to the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed, the arrests of then-opposition MPs Abdulla Yameen and Gasim Ibrahim, and inmates setting fire to the Maafushi jail on two occasions in 2009.

Hoarafushi MP Mohamed Ismail claimed that the MDP government released 700 dangerous convicts.

MP Ahmed Nihan, parliamentary group leader of the ruling Progressive Party of Maldives (PPM), alleged that the MDP formed a “big cell” within the party to create ties with inmates following the prison riot in September 2003.

Referring to the arson attacks on February 8, 2012, Nihan alleged that the MDP had “sponsored terrorism”.

While the current administration should bear responsibility for the prison break, Nihan assured that the government would control jails.

“People escape from jail in all countries of the world,” he said, adding that he was pleased some MDP MPs were willing to assist and cooperate with the government.

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Government oversight committee asked to investigate rising airline fare

Parliament’s government oversight committee has been asked to investigate rising airline ticket prices after summoning officials from the government regulatory body.

The issue was raised at today’s meeting of the committee by Jumhooree Party MP Ilham Ahmed, who reportedly said that a number of Maldivians traveling to India and Sri Lanka for medical treatment were affected by the abrupt increase in airline fare.

Another issues raised at the meeting included looking into a case of an Imadhudheen School teacher who allegedly bullied a grade three student.

The female teacher reportedly returned to work last week after the Ministry of Education lifted her suspension. While the ministry has compiled a report based on its investigation, the Teachers Association of Maldives has defended the accused, contending that the allegations against her did not warrant suspension.

Progress into the police’s investigation into the disappearance of Minivan News journalist Ahmed Rilwan was also raised at the meeting.

Meanwhile, Chair Riyaz Rasheed – deputy parliamentary group leader of the ruling Progressive Party of Maldives – declined to put either issue to a vote, saying he would clarify information regarding the proposals.

Parliament is due to resume sittings next month after a one-month recess.

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Law amended to prevent passports being held without court orders

Parliament has passed an amendment altering the immigration law to prevent the holding of passports without a court order.

The amendment was submitted by ruling Progressive Party of Maldives MP Ibrahim Riza, and was passed by a total of 65 votes.

Under the amendment, Article 5(b) of the Immigration Act has been made void.

Article 5(b) of the current Immigration Act stipulates that a passport can be held for a maximum of seven days on request of the police authorities even without a court order. If passports are to be held for a period extending seven days, it must be done so under a court order.

A police media official stated that the change in law will not present any difficulties to the services as their normal procedure is to obtain court orders before requesting that any passports be held or travel bans imposed.

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Criminal Court rules charges of sending threats to MP Rashad not proven

The Criminal Court has ruled that charges Mohamed Raaif of Henveiru Blue Mead sent death threats to Thulaadhoo constituency MP Nazim Rashad have not been proven.

The case was lodged after Nazim Rashaad received death threats in August 2011.

The court’s ruling reads that based on the fact that Raaif pleaded not guilty, and taking into account witness statements, the court decided that the charges could not be proven.

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JP reverses stance as parliament begins voting on SEZ bill

The Jumhooree Party (JP) has today changed its stance on the controversial special economic zones (SEZ) bill, opting to support the government in the Majlis.

In the last parliamentary session prior to the recess, parliament has begun voting on the bill with the JP issuing a three-line whip to its 12 MPs in support of the legislation.

The party’s leader Gasim Ibrahim, who has previously spoken publicly against the bill, has recently claimed to have been the victim of government attempts to impede his various business interests.

The Majlis voted to continue today’s session until all 200 of the proposed amendments have been voted on – most submitted by the opposition Maldivian Democratic Party (MDP).

The MDP had proposed to return the bill to a committee for further review, although this proposition failed with 57 of 73 parliamentarians present voting against it.

While the MDP has submitted over 180 amendments, the JP has also submitted about ten amendments, with the ruling Progressive Party of Maldives (PPM) submitting a similar number, local media reports.

The MDP has contended that an SEZ law would pave the way for money laundering and other criminal enterprises, undermine the decentralisation system, and authorise a board formed by the president to “openly sell off the country”without parliamentary oversight.

The government, however, maintains that SEZs with relaxed regulations and tax incentives were necessary both for foreign investors to choose the Maldives over other developing nations and to launch ‘mega projects,’ which President Abdulla Yameen has said would “transform” the economy through diversification and mitigate the reliance on the tourism industry.

PPM Parliamentary Group leader Ahmed Nihan is reported in local media as having criticised the MDP for submitting “a large number of bills with the intention of creating long delays”.

Three line whip

Despite Gasim’s previous public opposition to the bill, the JP today announced today that it would enforce a three-line whip in voting for the SEZ bill.

The decision was reached unanimously in a parliamentary group meeting, according to JP MP Abdulla Riyaz.

Previously, the party leader Gasim had boycotted the committee reviewing the legislation,warning that an SEZ law would facilitate massive corruption and threaten independence.

The change in the party’s stance closely follows the state’s cancellation of various business agreements made with the JP leader’s business Villa Enterprises.

On Monday (August 25), the Civil Aviation Authority downgraded Gasim’s Villa International Airport based on the MP’s constituency island of Maamigili to domestic status.

Similarly, on August 14 the government terminated an agreement with Villa Air to develop and manage the regional airport on Gaaf Dhaal Kaadehdhoo, while the fisheries ministry has also decided to reclaim Laamu Atoll Baresdhoo from Villa, stating that the company had not used it for the agreed purpose.

President Yameen has denied that politics has played any part in the recent reversals to Gasim’s business interests.

Maamigili MP Gasim has also been in receipt of death threats in recent weeks, with the party releasing a statement suggesting rival politicians were behind this intimidation.

“The death threats are being issued to Honourable Gasim Ibrahim by those displeased or threatened by his efforts in the People’s Majlis, the media, and various other arenas for the benefit and wellbeing of the Maldivian people, in a planned attempt to intimidate him and push him back politically with politicians behind these threats,” the JP contended in an August 17 press statement.

Following Gasim’s crucial decision to support Yameen’s 2013 presidential election bid, his party joined the PPM and Maldivian Development Alliance in contesting the March parliamentary polls as part of the Progressive Coalition,

The PPM severed its coalition agreement with the JP in May, however, after Gasim stood for post of Majlis speaker despite the PPM fielding its senior MP Abdulla Maseeh Mohamed. The JP has since sought reconciliation.

The remaining Progressive Coalition members control 48 seats in the 85-member People’s Majlis.

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Housing Minister informs parliament of work conducted within 2014

Minister of Housing and Infrastructure Mohamed Muizzu was summoned for questioning in the People’s Majlis today, informing MPs that the ministry has concluded work on building jetties in 13 islands and reclamation of land in three islands within the year.

He revealed that the government has plans to build jetties in a total of 22 islands within a period of two years and that all of it will be funded by the state budget.

Muizzu further revealed that construction of houses in Gemanafushi – required after the relocation of the people from Dhiyadhoo – has also been completed except for one building.

Further plans were revealed to reclaim land on the island of Dhaandhoo for the construction of a football stadium. The minister stated that the work will be contracted to MTCC as soon as the project is approved by the Ministry of Finance and Treasury.

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MDP submits over 300 amendments to SEZ bill

The opposition Maldivian Democratic Party (MDP) has submitted more than 300 amendments to the government’s flagship special economic zone (SEZ) legislation, currently in the final stage of the legislative process.

Briefing the press on the proposed revisions (Dhivehi) yesterday, MDP MP Rozaina Adam appealed for the public and local councils to urge pro-government MPs to vote for the amendments.

The ruling Progressive Party of Maldives (PPM) and coalition partner Maldives Development Alliance (MDA) have 48 seats in the 85-member People’s Majlis.

The MDP contends that an SEZ law would pave the way for money laundering and other criminal enterprises, undermine the decentralisation system, and authorise a board formed by the president to “openly sell off the country” without parliamentary oversight.

The party also objects to exempting investors from paying import duties or taxes for 10 years as well as allowing companies with foreign shareholders to purchase land without paying sales tax.

The government, however, maintains that SEZs with relaxed regulations and tax incentives were necessary both for foreign investors to choose the Maldives over other developing nations and to launch ‘mega projects,’ which President Abdulla Yameen has said would “transform” the economy through diversification and mitigate the reliance on the tourism industry.

Following the submission of a report (Dhivehi) by the economic affairs committee after reviewing the legislation, the third and final reading of the bill began at today’s sitting of parliament.

MDP MPs proceeded to propose and second the amendments, which would be put to a vote individually ahead of a final vote on passing the bill.

Amendments

MDP MP Ibrahim Shareef explained yesterday that the main changes proposed to the bill include removing a provision to allow companies with a 49 percent stake held by foreign shareholders to purchase land.

The article would be changed to allow such companies to lease the land in lieu of ownership, he noted.

Moreover, a provision allowing leasing of land to foreign companies for 99 years would be revised to reduce the lease period.

The party further proposed adding a provision to require 75 percent of jobs in the SEZs to be reserved for Maldivians.

In line with Article 41 of the Constitution, Shareef said an amendment was proposed to require “fair and adequate compensation” to be paid for private property acquired by the state.

The MDP also proposed scrapping Article 74 of the draft legislation, which allows up to 40 percent of any zone to be tourist-related development with tax and duty exemptions.

Moreover, Shareef said an amendment was proposed to prevent resorts under development from being declared an SEZ.

Amendments were also forwarded for mandatory consultation with local councils ahead of declaring any region under council jurisdiction an SEZ.

On provisions for offshore banking, Shareef noted that an amendment was proposed for the Maldives Monetary Authority or central bank to exercise oversight over the financial services.

MDP MP Ibrahim Mohamed Didi – a retired brigadier general – meanwhile proposed an amendment banning any form of gambling or casinos in the SEZs.

He also proposed outlawing the construction of churches or temples for the worship of other religions as well as any such congregation in the SEZs.

Shareef contended that the party’s amendments would not obstruct the operation of the zones “fairly and without corruption in a way that would benefit the country”.

MP Rozaina explained that the other amendments were intended to hold the government accountable through parliamentary oversight.

An amendment was proposed requiring parliamentary approval for the president’s appointees to the investment board.

Moreover, amendments were proposed to include either an opposition MP or one member from each political party represented in parliament on the investment board.

Responding to opposition criticism of the SEZ bill last week upon returning from a visit to China, President Yameen noted that the constitution allows for “freeholds” and leasing of land for 99 years.

Article 251(b) of the Constitution states, “A foreign party shall not receive a lease of, or be given in any other way, any part of the territory of the Maldives for a period exceeding 99 years.”

Large foreign investments of US$300 to US$400 million would not be made if the lease period was any lower, Yameen argued, adding that “freehold rights” were offered for 99 years in developed nations.

Referring to the ‘iHavan’ transhipment port project  in Ihavandhippolhu, Yameen noted that the creation of SEZs would involve significant land reclamation while other areas that would be designated as SEZs were presently not utilised.

“So if it is MDP or anyone else talking about it, we are going to go forward with this work. God willing, it will go forward. And God willing, the special economic zone bill will be passed,” he said.

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MP Riyaz Rasheed withdraws amendments to law on privileges and protection for former presidents

Progressive Party of Maldives (PPM) MP Riyaz Rasheed has withdrawn amendments proposed to the Privileges and Protection for former President’s Act of 2009.

At today’s sitting of parliament, the PPM parliamentary group deputy leader said he decided to withdraw the bill as it required revision, adding that he would resubmit during the next session after the upcoming one-month recess.

The amendment proposed denying financial benefits and protection for former presidents if they are either convicted of a criminal offence or encourages an act that threatens Maldivian sovereignty and independence.

Similar amendments proposed by the Vilufushi MP twice before had been rejected by the previous parliament.

The 2009 law stipulates a monthly allowance of MVR50,000 (US$3,243) for a president who has served one term.

Before declaring his intention to withdraw the amendments, Riyaz suggested it could be beneficial to allow the bill to be debated on the People’s Majlis floor to “recall” the alleged misdeeds of former President Mohamed Nasheed and the Maldivian Democratic Party (MDP) government.

He went on to allege that the party was behind all the murders that have occurred in the Maldives, prompting MDP MP Ibrahim Shareef to object with a point of order.

PPM MPs were using the Majlis floor as “a political podium,” Shareef said.

Following the controversial transfer of presidential power on February 2012, the government had questioned Nasheed’s eligibility for state benefits on the grounds that he had not completed a full five-year term in office.

In June 2012, MDP MP Ahmed Hamza revealed that the state had spent MVR1.3 million (US$84,300) on healthcare costs for former President Maumoon Abdul Gayoom and his wife from 2010 to April 2012.

In November 2012, Riyaz threatened to sue the finance minister and attorney general for providing state benefits to former President Nasheed.

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