Tag: people’s majlis

Majlis passes record MVR 17.95 billion budget

The People’s Majlis has passed a record MVR 17.95 billion (US$ 1.16 billion) budget today.

Out of the 72 MPs present, 55 voted for the budget, two voted against and 11 abstained.

The budget deficit now stands at MVR1.3 billion (US$84.3 million). Recurrent expenditure accounts for over 70 percent of the budget.

President Abdulla Yameen Abdul Gayoom had initially proposed a MVR 17.5 billion (US$ 1.1 billion), but the People’s Majlis Budget Committee brought a number of amendments, first increasing the budget to MVR 18.3 billion (US$ 1.19 billion) and later reducing it to MVR 17.8 billion.

However, during Wednesday’s budget debate, opposition Maldivian Democratic Party (MDP) MPs complained about lack of development funds for their constituencies. The committee met that night and increased the Public Sector Investment Program’s budget to MVR 260.5 million (US$ 16.9 million).

The Budget Committee had also added MVR 171.1 million (US$ 11 million) to the budget of the state’s independent institutions.

At today’s sitting, 27 budget recommendations were passed. These include a proposal by Jumhooree Party (JP) leader Gasim Ibrahim to reallocate MVR 122.5 million (US$ 7.9 million) from the Finance Ministry’s contingency budget to the independent state institutions.

MDP MP Ahmed Sameer’s proposal to reallocate MVR 7.1 million (US$ 460,440) from the Finance Ministry’s contingency budget to the health sector also passed.

According to the budget report, 44 percent is allocated for social development, 21 percent for public services, 15 percent for loan repayments and 9 percent for economic development.

The central bank Maldives Monetary Authority (MMA) and opposition MPs have expressed concern over tenuous revenue raising measures in the budget.

These include hiking Tourism GST from 8 percent to 12 percent, revising import duties, continuing tourism bed tax for one more year, raising airport departure charge for foreign passengers from US$ 18 to US$25, leasing 12 islands for resort development, introducing GST for telecommunication services and obtaining resort lease payments as a lump sum.

Several of these proposals require revising existing legislation.

Meanwhile, the World Bank has warned the Maldives’ economy is at risk due to excessive state expenditure and methods used to finance the deficit.

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A short constitutional history of the Maldives

December 22, 2013 marks the 81st anniversary of the proclamation of the Maldives’ first parliament. The following article was prepared by the People’s Majlis secretariat.

The first written Constitution of the Maldives was codified in the early twentieth century, on December 22, 1932 during the thirtieth year of the reign of Sultan Mohamed Shamsudeen Iskandar III.

A thirteen member committee began work on drafting the constitution on March 22, 1931. The acting Governor of Ceylon Bernard H. Bourdill provided technical expertise in its composition. A first draft was completed on June 16, 1931.

With the ratification of the first Constitution of the Maldives on December 22, the first semblance of representative government came into effect. A set of credentials for the King was established – these states the King must be sane man, be of the Sunni Muslim faith and be from the ruling family. A cabinet of ministers and a parliament comprising forty seven members was also established.

The first constitution had 92 articles and a bill of rights guaranteeing equality before the law, freedom from arbitrary arrest and torture, protection of private property, freedom of expression, association and press, and a pension after 25 years of service to the state.

Though a milestone, historical records note that the Maldives’ first Constitution failed within nine months of ratification.

The newly established People’s Majlis passed 40 laws during its short tenure. The new legislation established fines, penalized theft and as- sault, created a state trading company and regulated foreign trade through a Foreign Investments Act and Freighters Act. The new laws angered the public and influential foreign traders in the Maldives. Foreign traders who had a monopoly on imported food started a series of strikes on 26 July 1933, demanding that the new government’s policies be repealed.

The result of the ensuing food insecurity was a public revolt. The founders of the constitution were banished to Colombo and the constitution was amended to 84 articles in June 1934. The Maldives’ first constitution was reduced to 80 articles in 1937 and finally suspended shortly after World War II broke in 1940. A special Majlis at the time stated, “The Constitution and General Provisions have been annulled as they do not fit the Maldives’ situation.”

On 23 April 1942, Sultan Hassan Nooradeen sent a 17 article constitution to the Majlis saying he wanted “a suitable constitution to exist in the Maldives.”

The “small constitution” handed the powers of the state to the monarchy, the foreign minister, and the People’s Majlis. The People’s Majlis was reduced to 6 appointed members and 27 elected members. The second constitution was amended in 1951 and reinstated freedom from arbitrary arrest and banishment and freedom of expression, speech and association. The 34 member People’s Majlis’ term was set to five years.

In 1950, the People’s Majlis voted to abolish the monarchy and institute a republican government in the Maldives. A public referendum endorsed the change and a third constitution on 1 January 1953 established a presidential system of government in the Maldives for the first time.

The new democratic constitution comprising 30 articles established a president to be elected through a direct vote, a judiciary appointed by the president and a bicameral legislature – an 18-member senate and a 47 member House of Representatives.

The new constitution also limited the presidential term to five years, but appointed Al-Ameer Mohamed Ameen Dhoshimeyna Kilegefaanu as the first president of the Maldives. For the first time in Maldivian history, a woman was elected to the parliament.

However, the Maldives’ first republic was short-lived. A revolution on August 21, 1953 abolished the Republic. The country reverted to a Sultanate on January 31, 1954. The change was followed by the ratification of the fourth Constitution of Maldives on March 7, 1954. The fourth constitution declared the Maldives to be an “elected monarchy.”

A unicameral legislature was reinstated with 54 members, of which 6 were to represent the king, 46 to represent the people and two to represent businessmen. Only Maldivian men could vote to elect the People’s Majlis.

Shortly after the Maldives won independence from the British Empire, the fourth constitution was repealed and a Second Republic was established under the rule of President Ibrahim Nasir in 1968. The new constitution declared: “The Maldives is an independent and free state.” According to the fifth constitution, the president of the Maldives was to be elected through a secret vote of the 54 member People’s Majlis.

In 1980, the second president of the second republic Maumoon Abdul Gayoom called for a special constitutional assembly consisting of cabinet ministers and People’s Majlis members to amend the new constitution.

After an 18-year long process, the fifth constitution of the Maldives was amended for the fourth time. Notable amendments included clauses permitting any individual who wished to stand for presidency to submit an application to the People’s Majlis. The Majlis would then choose a candidate who then had to be approved through a public referendum.

In September 2003, unprecedented anti-government riots broke out in Male, sparked by deaths of four prison inmates. The September riots came shortly after the Majlis had unanimously endorsed President Gayoom as the sole candidate for a record sixth term in office.

In October 2003, Gayoom was elected by 90.3 percent of the popular vote. In his inaugural address, Gayoom promised various political reforms. Gayoom’s first steps were to institute a human rights commission in 2003 to investigate abuses and to establish a constitutional assembly in May 2004 to draft a democratic constitution.

The constitution was to guarantee separation of powers and a multi-party democracy.

The constitutional assembly—the People’s Special Majlis— consisted of 29 appointees, along with 42 elected members of the regular Majlis and a further 29 elected members.

The drafting process was slow with rival political parties at loggerheads over several issues including the opposition proposed adoption of a parliamentary system in the Maldives. A public referendum was called in August 2007, and 60 percent of the public backed a presidential system of government.

The sixth constitution of the Maldives, ratified in August 2008, introduced a whole new set of democratic rights, enshrined the separation of powers and introduced mechanisms for accountability and transparency. It paved the way for Maldives’ first multi-party elections in October 2008.

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Committee recommends increasing 2014 budget to MVR18 billion

The People’s Majlis Budget Committee has recommended raising the proposed 2014 state budget from MVR17.5 billion (US$ 1.1 billion) to MVR18 billion (US$1.2 billion) despite concerns over prospective revenue raising measures.

The latest recommendations will have to pass on the Majlis floor, with the final report being sent to People’s Majlis Speaker Abdulla Shahid on December 21.

President Abdulla Yameen proposed a record MVR17.5 billion budget shortly after assuming power. The budget has a projected deficit of 2.2 percent, with over MVR3 billion (US$ 224 million) is to set to come from new revenue raising measures that require amendments to legislation.

These measures include hiking Tourism Goods and Services Tax (T-GST) from 8 to 12 percent, revising import duties, a continuation of the tourism bed tax, raising airport departure charge for foreign passengers from US$18 to US$25, leasing 12 islands for resort development, introducing GST for telecommunication services, and charging resort operators in advance for resort lease extensions.

The Ministry of Finance had proposed similar revenue raising measures the 2013 budget but was ultimately unable to obtain the expected revenue after the parliament rejected several measures – including increasing airport departure fees.

The MVR600 million (US$39 million) expansion is mainly to fund tourism promotion, Public Sector Investment Programmes (PSIP), and an increase to the budgets for the state’s independent institutions.

The Governor of the Maldives Monetary Authority (MMA) Fazeel Najeeb has expressed concern that the central bank may have to print money if expected revenue is not realised.

Najeeb told the People’s Majlis Budget Committee on Saturday (December 14) the government must not proceed with new development projects unless and until the new revenue is assured.

“If not, ultimately the government will come to the MMA to find the cash to proceed with those projects. And then again we have more rufiyaa in the economy to chase after the few dollars,” Najeeb said.

Several independent institutions including the Employment Tribunal, Judicial Services Commission (JSC), Department of Judicial Administration, Election Commission, Human Rights Commission, Anti- Corruption Commission, and the Prosecutor General had complained about the proposed budget cuts last week.

According to the Maldives Inland Revenue Authority (MIRA), the institution had asked for MVR73 million (US$4.7 million), but the Finance Ministry had reduced the figure to MVR 45 million (US$ 29 million).

Speaking at the Budget Committee meeting last week, the Commissioner General of Taxation Yazeed Mohamed said financial constraints had affected MIRA’s ability to collect taxes.

MIRA had set its own goal to collect MVR10 billion (US$648 million) in taxes this year, but would only able to collect approximately MVR 8.4 billion (US$ 545 million), Yazeed said.

While the Ministry of Finance estimates MVR10 billion (US$648 million) can be raised in taxes for 2014, MIRA believes it can collect over MVR11 billion (US$ 713 million) if the institution is granted adequate financial resources, Yazeed added.

Budget reductions will also affect MIRA’s ability to train employees, he said.

Meanwhile, the Elections Commission said the allocated MVR57 million (US$3.7 million) is not enough for the commission to hold the constitutionally mandated local council and parliamentary elections. The commission noted it still had over MVR29 million (US$1.9 million) in unpaid bills from the repeatedly re-scheduled presidential elections.

Only the Civil Service Commission expressed satisfaction with its allocated budget. The commission had asked for MVR28 million (US$ 1.8 million), before the Finance Ministry reduced the amount to MVR25.7 million (US$1.7 million).

Meanwhile, the World Bank has said that measures used by the government to finance the deficit – such as monetisation, the accumulation of unpaid bills, and the rise of short term debt through the sale of T-bills – posed “macro-risks” to the economy.

President Yameen has expressed concern over “extremely high” state expenditure and pledged to make cuts, though he has as yet only managed to make modest cuts such as halving the presidential salary and marginally reducing the salaries of state and deputy ministers.

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Malé City Council ordered to suspend projects

The Finance Committee of the People’s Majlis has ordered Malé City Council to suspend all projects except for basic service delivery, pending an investigation into the council’s conduct in leasing land.

“The Finance Committee has received reports the Malé City Council is acting in the interest of certain individuals in renting out land and awarding contracts for development of land,” the Finance Committee said in a statement today.

The decision passed with the unanimous support of the five members present and voting.

Meanwhile, the Anti- Corruption Commission (ACC) announced today that it has recommended charges be filed against two of the nine Malé City councilors and three council staff for conferring undue advantage in the awarding of a contract in the Vilimalé Safe Beach Project.

The two councilors are Deputy Mayor Ahmed Samah Rasheed and Ibrahim Sujau. The staff are Assistant Directors Mizhath Naeem, Aishath Jumana Mohamed Rasheed, and Abdulla Rameez.

The Vilimalé Safe Beach Project had sought a contractor to keep the Vilimalé beach area, jetty, and lagoon clean and promised to provide adequate workspace.

The winning bidder had asked for two beachfront blocks to build administrative offices and establish a business at the site in order to sustain the project.

However, the ACC said it does not believe the Malé City Council’s promise of workspace allows for land to be granted to carry out for-profit activities.

The commission notes that all bidders except the winning bidder believed the workspace simply meant land on which to store equipment.

The bid evaluation committee justified their decision by arguing that the winning bidder had proposed a much lower price. However, the commission said that if other bidders had known the promised workspace could be rented out or used for profit, then it is possible that they may have proposed lower prices as well.

Hence, “other bidders did not receive opportunity to compete fairly,” the ACC said.

The ACC recommends the Prosecutor General pursue criminal charges for conferring undue advantage under Article 12 (a) in the Prevention and Prohibition of Corruption Act of 2000.

A study conducted by advocacy NGO Transparency Maldives has found 83 percent of people surveyed felt corruption had increased or stayed the same during the past two years in the Maldives.

According to the survey, the most common area in which bribes were paid was said to be land services, with the most frequent reason for giving bribes being ‘to speed things up’.

Earlier in December the ACC alleged corruption in the award of apartments to individuals as part of the Veshifahi Malé housing programme, ordering the invalidation of 139 of the 448 successful applications.

Elections for the Malé City Council are to be held on January 18.

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President forms anti-trafficking steering committee

President Abdulla Yameen has formed an “Anti-Trafficking Steering Committee” as required by the new Anti Human Trafficking Act.

The members of the committee are;

1. Abdulla Saeed, Supreme Court Judge
2. Jeehan Mahmood, Member of Human Rights Commission
3. Mariyam Zoona, Deputy Director at the Ministry of Youth and Sports
4. Aisha Naeem, State Attorney at the Attorney General’s Office
5. Mahmood Saleem, Assistant Public Prosecutor Grade 3 at the Prosecutor General’s Office
6. Mohamed Shifan, Deputy Chief Immigration Officer at the Department of Immigration and Emigration
7. Khadeeja Najeeha, Assistant Director at the Ministry of Foreign Affairs
8. Hassan Habeeb, Assistant Commissioner of Police
9. Mohamed Maseeh, Chief Superintendent at the Maldives Customs Service
10. Aishath Nafaa Ahmed, Assistant Director at the Ministry of Youth and Sports
11. Sheikh Hussain Rasheed Yoosuf, Inspector General of Correction Service at the Ministry of Home Affairs
12. Ali Waheed, Deputy Minister of Islamic Affairs
13. Muruthallah Moosa from the Advocating the Rights of Children (a local NGO)

A member from the People’s Majlis will also sit in this committee. As per article 62 of the Act, this committee will be responsible for overseeing the implementation of the Act, and advising the president on matters related to it’s implementation, and coordinating programs related to countering human trafficking.

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Supreme Court accepts case to disqualify MP Thasmeen

The Supreme Court has accepted a case filed by Progressive Party of Maldives (PPM) council member and prominent lawyer Mohamed ‘Wadde’ Waheed regarding the disqualification of Dhivehi Rayyithunge Party (DRP) Leader and MP Ahmed Thasmeen Ali from parliament.

Waheed claims Thasmeen had not paid back a MVR 1.9million (US$124,513) loan to Parliament Deputy Speaker Ahmed Nazim in accordance with a Civil Court ruling.

The Civil Court ruling required the repayment of MVR320,000 (US$20,779) each month for six consecutive months to clear the debt by April 2012, but Thasmeen only settled the debt in July 2012 after the High Court upheld the Civil Court’s ruling.

The Supreme Court in October stripped opposition Maldivian Democratic Party (MDP) MP Ali Azim and Dhivehi Rayyithunge Party (DRP) MP Mohamed Nashiz over decreed debt. The pair were guarantors for five credit facilities worth MVR117 million (US$9 million) issued to Funadoo Tuna Products by the Bank of Maldives (BML).

The Civil Court in 2012 authorised BML to seize the assets mortgaged for the loans, which included Funadoo island, a yacht, and the Reethi Beach Resort following non-payment of the loan.

Supreme Court Justices Abdulla Saeed, Adam Mohamed Abdulla, Ali Hameed Mohamed and Dr Ahmed Abdulla Didi voted to strip Azim and Nashiz of their seats citing Article 73(c) of the constitution which states: “A person shall be disqualified from election as, a member of the People’s Majlis, or a member of the People’s Majlis immediately becomes disqualified, if he has a decreed debt which is not being paid as provided in the judgment.”

However, Chief Justice Faiz and Justice Abdulla Areef ruled that the guarantors would only have to bear responsibility if the debt could not be settled by selling the mortgaged assets.

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President seeks Majlis approval for international treaties

President Abdulla Yameen has asked the People’s Majlis’ approval to sign three international treaties.

In a letter to the Majlis today, Yameen asked the Majlis to approve the Maritime Labor Convention and the Supplement to the United Nations Convention Against Transnational Organized Crime.

Yameen also requested Majlis’ approval to join the Organization for the Network of Aquaculture Centers in Asia and the Pacific.

The request has now been forwarded to the Majlis’ National Security Committee.

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Government delays revisions to budget for third time

The Ministry of Finance and Treasury has delayed submitting revisions to the 2014 state budget for the third time.

On October 30, Minister of Finance and Treasury Abdulla Jihad presented a MVR 16.4 billion budget for 2014 with a projected deficit of 2.5 percent of GDP to parliament.

However, with the inauguration of President Abdulla Yameen Abdul Gayoom on November 16, opposition Maldivian Democratic Party (MDP) called for the state budget to be revised to include the Progressive Party of the Maldives’ (PPM) campaign pledges.

Jihad – who was reappointed under President Yameen – asked the People’s Majlis budget committee to allow the government to present a revised budget on November 25. The budget committee has suspended work until a new budget is submitted.

The Finance Ministry then delayed submitting revisions until November 28. The government was unable to meet its own deadline and further delayed submissions to today.

Local media reports the government is facing difficulties in cutting costs and will present revisions on December 5.

Yameen has expressed concern over the economic vulnerability of the Maldives and pledged to reduce state expenditure by MVR 1 billion.

“State debt is sky high. The state budget’s expenses are extremely high. Hence, we have to prioritise reducing state expenditure. I will start work very soon to reduce budget expenses,” Yameen said during his inauguration speech.

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Cabinet approval scheduled for December 29

Parliamentary approval for President Abdulla Yameen Abdul Gayoom’s 15 ministers will be scheduled for December 29, People’s Majlis Speaker Abdulla Shahid has said.

Shahid appealed to the Majlis’ Government Oversight committee to conclude its report on the proposed cabinet by December 23 in order for the December 29 vote to proceed.

Chair of the Government Oversight Committee MP Ali Waheed said the committee has started the vetting process for ministers and will commence debate on the proposed cabinet on December 15.

Yameen’s 15 member cabinet includes seven incumbents. They are Finance Minister Abdulla Jihad, Minister of Health and Gender Dr Mariyam Shakeela, Minister of Defense and National Security Colonel (Rtd) Mohamed Nazim, Minister of Transport and Communication Ameen Ibrahim, Minister of Tourism Ahmed Adheeb, Minister of Housing and Infrastructure Dr Mohamed Muizzu, and Minister of Islamic Affairs Dr Mohamed Shaheem Ali Saeed.

The opposition Maldivian Democratic Party had tabled a no confidence motion against Defense Minister Nazim in the last days of Dr Mohamed Waheed’s presidency.

The new appointments are Umar Naseer as Minister of Home Affairs, Dr Aishath Shiham as Minister of Education, Dunya Maumoon as Minister of Foreign Affairs, Dr Mohamed Shainee as Minister of Fisheries and Agriculture, Mohamed Saeed as Minister of Economic Development, Mohamed Maleeh Jamal as Minister of Youth and Sports and Thoriq Ibrahim as Minister of Environment and Energy.

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