Tag: Villa

Tax authority removes freeze on Villa Group accounts

The tax authority has removed a freeze on Jumhooree Party leader and tourism tycoon Gasim Ibrahim’s Villa Group accounts in yet another indication of a thaw in relations between the opposition and the government.

A senior government official told Minivan News that the Villa Group had submitted a plan to pay the US$90.4million claim within two years.

“The Villa Group initially denied that had to make any payments. But now Villa Shipping has agreed to pay the government. That’s why MIRA [Maldives Inland Revenue Authority] has removed the freeze,” they said.

MIRA froze the accounts of Villa Shipping and Trading in May after the Tourism Ministry annulled several agreements on properties leased for tourism development and claimed the company had failed to pay rents on some of the properties since 2006.

The 90.4million claim includes US$75.5million as a fine.

The opposition says the move was an act of reprisal after Gasim’s JP split from the ruling coalition and allied with the Maldivian Democratic Party (MDP) in an anti-government campaign.

Several opposition politicians including ex-president Mohamed Nasheed was arrested and sentenced to jail shortly after the formation of the new alliance.

After months of street protests, historic anti-government marches, and mounting diplomatic pressure, Nasheed was transferred to house arrest in late June and preparations are now underway for talks.

Speaking to Haveeru today, Gasim maintained that his company did not owe any money to the state, but said he had no choice but to make the payment.

“We are having to do this this because our cases at the courts are still pending. We had no choice to do this until the court reaches a decision. If there is any justice in Maldives, I am sure I would not have to make the payment,” Gasim said.

The Villa conglomerate – which operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport and education – previously said the claim is unlawful and is contesting it at the civil court.

The civil court had rejected a request for a stay order on paying the fine until the courts uphold the claim.

Villa Group says the claim has cost the company a US$80million loan. It had struggled to pay the salaries of some 5000 employees following the accounts freeze.

In mid-June, Gasim announced that he will retire from politics once his term as Maamigili MP expires in 2019. The long-time presidential hopeful also said he will no longer contest in presidential elections. The government with opposition backing has now amended the constitution to set new age limits of 30-65 years for the presidency, meaning Gasim will be ineligible for the 2018 presidential elections. He will be 66 then.

The JP is in disarray. Two senior party officials fled the country after they were charged with terrorism over a historic anti-government protest on May 1.

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Court issues arrest warrant for Gasim

The criminal court has reportedly issued an arrest warrant for Jumhooree Party (JP) leader Gasim Ibrahim.

Local media reported last night that police had sought the warrant to arrest the business tycoon over allegations of funding the May Day anti-government mass rally.

The opposition MP and chairman of Villa Group is currently out of the country.

A police media official told Minivan News that police could not reveal information on arrest warrants for specific individuals.

“But we are seeking arrest warrants related to the May Day protest,” the official said.

Nearly 200 protesters were arrested from the 20,000-strong demonstration on May 1, including main opposition Maldivian Democratic Party (MDP) chairperson Ali Waheed, Adhaalath Party leader Sheikh Imran Abdulla, and JP deputy leader Ameen Ibrahim.

The arrest warrant follows the tax authority freezing the bank accounts of several companies owned by Gasim over allegedly unpaid rent and fines. The government has, however, denied the opposition’s claim of unfairly targeting Gasim’s business interests.

A day before the May Day rally, tourism minister Ahmed Adeeb accused Gasim of funding the protest “while hiding in Bangkok” and hiring Sheikh Imran under “a contract” to topple the government.

Gasim promptly denied the allegation in a tweet. He had reportedly traveled to Thailand ahead of the protest.

Imran and the other leaders of the allied opposition parties are being held in remand detention for 15 days. They are accused of inciting violence against the government during the May Day rally.

On May 1, opposition protesters called for the release of imprisoned ex-president Mohamed Nasheed and ex-defence minister Mohamed Nazim.

JP spokesperson Ali Solih told Minivan News that the party has not been able to confirm if the warrant has been issued, but “we can’t say it won’t happen under the present circumstances.”

Solih accused the government of attempts to “intimidate” political opponents and “create fear among the public.”

He noted that Gasim’s support was crucial for president Abdulla Yameen’s victory in the 2013 presidential election.

“Is this is the reward for all the work Gasim did to bring this government?” he asked.

Following a fact finding mission last month, Amnesty International expressed concern with the “rapidly deteriorating” human rights situation in the Maldives.

“There’s a climate of fear spreading in the Maldives, as safeguards on human rights are increasingly eroded. The authorities have a growing track record of silencing critical voices by any means necessary – be it through the police, the judicial system, or outright threats and harassment,” Amnesty’s Maldives researcher Abbas Faiz told the press in New Delhi.

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Government freezes Villa accounts

The central bank has frozen the accounts of several companies owned by opposition Jumhooree Party (JP) leader Gasim Ibrahim, over a US$90.4 million payment allegedly owed as unpaid rent, fines and interest on several properties leased for tourism.

The Villa group has refused to make the payment and is contesting the tax authority’s claim at the civil court. Gasim has accused the government of unfairly targeting his business interests.

The Villa group operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport and education. Only the accounts of companies which hold the properties were frozen. They are Villa Shipping, Villa Holidays, Gazeera Pvt Ltd and Maanenfushi Pvt Ltd.

Villa officials on Tuesday told local media the accounts slated to be frozen are empty.

But the Maldives Inland Revenue Authority (MIRA) says the government can suspend all services to the company, including customs clearance and foreign work visas, if it is unable to recover owed sums through the frozen accounts.

MIRA issued the US$90.4 million notice in February after the tourism ministry terminated agreements for several properties leased to Villa and subsidiary companies for resort development.

The move followed Gasim’s JP forming an alliance with the main opposition Maldivian Democratic Party. However, the government denies the opposition’s accusations of unfairly targeting Gasim’s business interests.

The properties at stake were leased under a settlement agreement signed with the tourism ministry on December 12, 2013, less than a month after president Abdulla Yameen took office.

Some 27 cases challenging the termination of the agreements and MIRA’s notice as well as appeals of the civil court’s refusal to grant stay orders are ongoing at court.

Villa – which won the tax authority’s “Ran Laari” award last year as one of five companies that paid the highest amount to the state – insists it does not owe any money to the state.

The notice for payment expired on April 18, but MIRA did not freeze the company’s accounts saying the move may negatively affect the Maldivian economy, local media reports.

The Villa group has previously said freezing its accounts will “send shockwaves” through the Maldivian economy.

“It is not only Villa’s shareholders’ and the company’s rights that are lost [if bank accounts are frozen]. The rights of a lot of employees who work at the company, small and medium-sized businesses dependent on this company, guests who have made bookings at our resorts, tour operators, and many other people, would also be lost,” Villa Group’s executive director Shimad Ibrahim had said.

The Villa group employs over 5,000 people.

The central bank has also frozen the accounts of JH Resorts Pvt Ltd, the Maldives Tourism Development Corporation, Asia resorts, Yacht Tours Pvt and Medhufushi and the accounts of AAA Pvt Ltd.

Since the notice was issued, Gasim has not been seen in opposition protests or made any comments over a crackdown on the opposition, including the arrest of JP deputy leader Ameen Ibrahim on May 2.

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Civil Court orders halt to seizure of lands allocated to Gasim’s Villa company

The Civil Court has ordered the Ministry of Tourism halt all proceedings regarding the seizure of uninhabited islands and lagoons granted to Villa Hotels and Resorts Private Limited.

Villa – owned by Jumhooree Party (JP) leader MP Gasim Ibrahim – requested the stay order after the government’s decision to hand back the uninhabited islands and lagoons given to the company as compensation for the nationalisation of several development projects, including Kadhdhoo airport

According to the order, although the government has said Villa can be compensated for the seizure of the islands and lagoons, the areas were handed over due to the government’s inability to bear the burden of a financial or monetary compensation.

The islands and lagoons that had been ordered to be returned are Thaa Atoll Elaa, Raa Atoll Maanenfushi, Gaafu Dhaal Atoll Gazeera, Kaafu Atoll Maadhihgaru lagoon, and Vaavehdhi lagoon.

Speaking at a joint rally of JP and Maldivian Democratic Party (MDP), Gasim stated that “the Maldivian people will not allow injustice” and reiterated calls for the charges against MDP leader and former President Mohamed Nasheed to be dropped.

“Forget it, nobody can push us back, we will be in the service of the Maldivian people. We will defend the fundamental rights and freedoms of the constitution”, Gasim said.

The JP’s opposition to key government legislation last year saw Gasim suffer setbacks to his businesses, as well as physical threats against his person – both of which the party blamed on Gasim’s former political allies.

“You can seize everything, take it. Take it. After all, things can only be taken from people who have them,” he told attendees of the joint rally of Maldivian Democratic Party (MDP) and JP held on February 5, 2015.

“Yameen, do not think that a well-built man can come and shoot me with a gun. No, No, No. I am not afraid even one bit.”

President Abdulla Yameen has denied Gasim’s business reversals were a result of political events, stating that all businesses were treated equally under the law.


Related to this story

Gasim defiant as opposition sign agreement to defend Constitution

MDP and JP reach agreement on defence of Constitution

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Maamigili Airport returns to international status

Villa Airport, also known as Maamigili Airport, has been upgraded to an international airport just 23 days after it was downgraded to domestic status.

Speaking to local news outlet Vnews, Managing Director of Villa Air Rilwan Shareef said that the airport was downgraded after the government pointed out some security concerns which needed to be addressed by the airport.

“We have been reinstated because we have addressed those issues,” said Shareef.

The downgrading of the airport coincided with Jumhooree Party leader and Villa Group owner Gasim Ibrahim boycotting the committee stage of President Abdulla Yameen’s ambitious special economic zones (SEZ) bill.

After saying that the law would enable the SEZ board “to sell off the entire country in the name of economic zones”, Gasim’s party subsequently issued a three-line whip to its MPs to support the bill.

President Yameen has denied any political motive in the downgrading of the airport stating that, even though Gasim is the biggest business man in the Maldives, “he will be equal before the government in upholding rules”.

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Maamigili airport downgraded to a domestic airport

The airport on the island of Maamigili in Alif Dhaal atoll operated by Jumhooree Party (JP) Leader Gasim’s Ibrahim’s Villa Air has been downgraded to a domestic airport, reports local media.

An official from the Civil Aviation Authority told online news outlet CNM that Villa Air had not made the necessary improvements for designation of international airport status.

Earlier this month, the government terminated an agreement with Villa Air to manage and develop the Kaadehdhoo regional airport while the fisheries ministry decided not to renew the lease of an uninhabited island given for agricultural purposes to Gasim’s Villa company.

President Abdulla Yameen had denied that the decisions were intended to “impede” the JP leader’s businesses following severe criticism of the government’s flagship special economic zone legislation.

The agreement with Villa Air to operate the airport for a period of 50 years was signed during the final days of former President Dr Mohamed Waheed’s administration.

Former Transport Minister Dr Ahmed Shamheed – filling a JP slot in cabinet at the time – was sacked in November 2012 after extending the lease of the privately-owned airport in Maamigili for 99 years.

In March 2013, Dr Shamheed told Minivan News that President Waheed wanted “credit” for extending the Maamigili airport lease.

Despite the dismissal, the decision was not reversed and Shamheed was replaced by JP Deputy Leader Ameen Ibrahim, who signed the Kaadehdhoo agreement on behalf of the government on November 6.

Following his third-place finish with 23.37 percent of the vote in the November 2013 presidential election, Gasim initially announced that the JP would remain neutral.

However, the JP’s council decided to endorse Abdulla Yameen against Maldivian Democratic Party candidate, former President Mohamed Nasheed, three days before the second round of the polls on November 16.

After the contesting the parliamentary polls in March jointly through the Progressive Coalition, the ruling Progressive Party of Maldives severed its coalition agreement with the JP after Gasim stood for post of Majlis speaker despite the PPM fielding its senior MP Abdulla Maseeh Mohamed.

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Politicians behind death threats to Gasim, claims JP

The Jumhooree Party (JP) has alleged that politicians are behind death threats sent to the party’s leader Gasim Ibrahim.

“We will take your life if you keep talking in the media,” and “We will wipe you and your family from Malé,” read the threats sent via text message to the business tycoon last week.

“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 a press statement yesterday (August 17).

The party expressed concern with the persistent threats and noted that Article 29 of the Constitution guarantees the “freedom to acquire and impart knowledge, information and learning.”

“And we note that these threatening messages are being sent at a time when the government and the ruling party have been directly targeting Honourable Gasim Ibrahim’s businesses, carrying out actions to hinder them and taking measures that are not being taken against other [businesses],” the press release stated.

Last week, the government terminated an agreement with Gasim’s Villa Air to manage and develop the Kaadehdhoo regional airport.

The Ministry of Fisheries and Agriculture meanwhile decided not to renew the lease of Laamu Baresdhoo, an uninhabited island leased to Gasim’s Villa company for agriculture.

Moreover, the fisheries ministry gave a 30-day notice to reclaim a plot of land in Gaaf Dhaal Hoadehdhoo leased to Gasim’s Horizons Fisheries.

President Abdulla Yameen has, however, denied “impeding” Gasim’s businesses, insisting that the decisions were made due to breach of contract.

In a letter to Commissioner of Police Hussain Waheed informing the authorities of the threats, Gasim reportedly revealed that the owners of the numbers from which the messages were sent has denied sending any texts.

Gasim suggested that the text messages could have been sent through the internet using a phone number duplicating software.

The business tycoon appealed for police to investigate the threats with “utmost seriousness.”

Following similar threats sent in June, Gasim objected to lack of security provided to MPs despite the death threats he received, noting that he has arranged for private bodyguards.

Maldives National Defence Force (MNDF) Spokesperson Major Hussain Ali told Minivan News today that “discussions” were currently taking place between the MNDF and the parliament secretariat regarding security arrangements for MPs.

Asked if MPs would have bodyguards from MNDF, the spokesperson suggested seeking the information from the People’s Majlis secretariat.

A media official at the secretariat, however, was unaware either of the present security arrangements or whether MPs had MNDF bodyguards.

Intimidation

Earlier this month, death threats were sent via text message from an unlisted number to six opposition Maldivian Democratic Party (MDP) MPs.

While one message threatened to kill MPs who “behave inappropriately,” the second stated that it would not be “a sin to kill those who challenge the word of Allah and call for religious freedom.”

“Afrasheem Ali was an example before your eyes,” it read, referring to the murdered moderate scholar and Progressive Party of Maldives MP.

Police confirmed at the time that the threats were being investigated but declined to reveal further details.

Parliament Secretary General Ahmed Mohamed told local media that MNDF were formally asked to provide security for MPs after a number of lawmakers made requests following the swearing-in of the 18th parliament.

MNDF had not responded as of August 3, he said. In July, Defence Minister Colonel (Retired) Mohamed Nazim assured that security would be provided to MPs and that recommendations for security provisions in the parliamentary rules – currently under review – had been shared with the speaker.

Article 105(b) of the Constitution states, “The security services of the state shall ensure the protection and safety of all members of the People’s Majlis.”

Meanwhile, a number of journalists have also received death threats in recent weeks, warning them against reporting on gang violence in the wake of a spate of stabbings in the capital.

An IT expert with experience in the telecommunications field explained to Minivan News at the time that it would be difficult to identify the culprit if the text messages were sent through an online mass text message service.

“Unless it came from a local IP address it would be almost impossible to trace it back. If they used anonymous proxy servers to send the texts it could be traced back to the SMS gateway, but no further,” he said.

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President Yameen denies “impeding” Gasim’s businesses

President Abdulla Yameen has denied politically motivated targeting of Jumhooree Party (JP) Leader Gasim Ibrahim’s business interests.

While an agreement with Gasim’s Villa Air to manage and develop the Kaadehdhoo airport was terminated due to failure to maintain safety standards, Yameen said the government decided not to renew the lease of Laamu Baresdhoo because agricultural work was not done on the island in accordance with the agreement.

“So even if it is the biggest businessman in the Maldives or anyone else, he will be equal before the government in upholding rules,” Yameen told reporters prior to departing to China on Thursday night (August 14).

Baresdhoo had been leased for 21 years, he noted, but “no work has been done there.”

“Baresdhoo is a huge island. If it had been taken for the tourism industry instead of being leased for agricultural work, millions of dollars would have been made,” Yameen said.

The government had formulated “sound” rules for leasing uninhabited islands during Ramadan, he explained, which stipulates that islands would be reclaimed if the purpose for which it was leased was not being fulfilled.

In the case of the Laamu atoll airport, Yameen said Villa did not maintain safety standards or take corrective measures within a specified period.

When safety measures are not taken, “it is the Civil Aviation Authority that has to bear responsibility for any problems that arise, isn’t it?”

“Exceptions” could not be made for violations of regulations, the president said.

The decisions were not intended to “impede” or hinder Gasim’s businesses, he insisted.

Yameen went on to say that there were islands leased for tourism development where no work has been done for eight to ten years.

The islands were leased to create job opportunities for people of nearby inhabited islands and generate tax revenue for the government, he said.

The moves by the government followed stringent criticism from the business tycoon of the government’s flagship special economic zone (SEZ) legislation at Wednesday’s sitting of parliament.

After boycotting the committee reviewing the legislation, Gasim warned that an SEZ law would facilitate massive corruption, threaten independence, and authorise a board formed by the president “to sell off the entire country in the name of economic zones.”

Threats to sue

In addition to the decisions concerning the Kaadehdhoo airport and Baresdhoo, local media reported that the fisheries ministry has given a 30-day notice to Gasim’s Horizon Fisheries Pvt Ltd to hand over a leased plot of land in Gaaf Dhaal Hoadehdhoo.

A letter informing the company of the decision – shared with local media – stated that Horizon had failed to complete work on a 3,000 metric ton cold storage unit, a factory, a harbour and a jetty in accordance with the lease agreement.

Moreover, the company had not begun work on a refrigeration system, ice plant, laboratory, fuel storage unit, water tank and an RSW vessel, the letter stated.

The company was told that the lease agreement would be terminated if corrective measures were not taken.

Meanwhile, in a press release on Thursday, the regional airports department under the tourism industry revealed that the decision to terminate the Kaadehdhoo agreement was made because Villa had failed to maintain standards mandated by the Civil Aviation Authority.

The Kaadehdhoo airport had been leased under a public-private partnership (PPP) project as its operation and development was a financial burden on the state budget, the press release explained.

However, deteriorating quality of service and lack of development defeats “the PPP’s purpose,” it added.

The agreement with Villa Air to operate the airport for a period of 50 years was signed during the final days of former President Dr Mohamed Waheed’s administration.

Former Transport Minister Dr Ahmed Shamheed – filling a JP slot in cabinet at the time – was sacked in November 2012 after extending the lease of the privately-owned airport in Maamigili for 99 years.

Despite the dismissal, the decision was not reversed and JP Deputy Leader Ameen Ibrahim, who signed the Kaadehdhoo agreement on behalf of the government on November 6, replaced Shamheed.

In June this year, President Yameen abolished the Ministry of Transport and Communication after dismissing Ameen – in the wake of the ruling Progressive Party of Maldives severing its coalition agreement with Gasim’s JP – and transferred both the Civil Aviation Authority and regional airports to the Ministry of Tourism.

In July, following threats by the JP to sue two of its MPs for switching to the PPM, Tourism Minister Ahmed Adeeb – also deputy leader of PPM – told newspaper Haveeru that the government was looking into cases where Gasim could be sued.

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Government takes back Kaadedhoo airport, uninhabited island from Gasim’s Villa Group

The government has terminated an agreement with Jumhooree Party (JP) Leader Gasim Ibrahim’s Villa Air to develop and manage the regional airport on Gaaf Dhaal Kaadehdhoo.

Director of Regional Airports Sami Aqeel told newspaper Haveeru that the agreement was terminated today because Villa breached its terms. Further details would be revealed to the press in a statement, he added.

Local media also reported today that the government has decided to reclaim the island of Baresdhoo in Laamu atoll from Villa. The uninhabited island had been leased to Gasim’s company for agriculture.

An official from the fisheries ministry told the local daily that the lease period had expired last month. He explained that the ministry has decided not to renew the lease because Villa had not done any farming on the island.

The ministry has decided to hand over the island to the tourism ministry to be leased for resort development, the official revealed.

The moves by the government comes on the heels of the business tycoon’s stringent criticism of the government’s flagship special economic zone (SEZ) legislation at yesterday’s sitting of parliament.

After boycotting the committee reviewing the legislation, Gasim warned that an SEZ law would facilitate massive corruption, threaten independence, and authorise a board formed by the president “to sell off the entire country in the name of economic zones.”

Business interests

Gasim’s Villa Group is one of the largest companies in the Maldives with the holding company Villa Shipping and Trading Pvt Ltd conglomerate operating businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport and education.

The agreement with Villa Air to operate the airport for a period of 50 years was signed during the final days of former President Dr Mohamed Waheed’s administration.

Former Transport Minister Dr Ahmed Shamheed – filling a JP slot in cabinet at the time – was sacked in November 2012 after extending the lease of the privately-owned airport in Maamigili for 99 years.

In March 2013, Dr Shamheed told Minivan News that President Waheed wanted “credit” for extending the Maamigili airport lease.

Despite the dismissal, the decision was not reversed and Shamheed was replaced by JP Deputy Leader Ameen Ibrahim, who signed the Kaadehdhoo agreement on behalf of the government on November 6.

Following his third-place finish with 23.37 percent of the vote in the November 2013 presidential election, Gasim initially announced that the JP would remain neutral.

However, the JP’s council decided to endorse Abdulla Yameen against MDP candidate, former President Mohamed Nasheed, three days before the second round of the polls on November 16.

After the contesting the parliamentary polls in March jointly through the Progressive Coalition, the ruling Progressive Party of Maldives (PPM) severed its coalition agreement with the JP after Gasim stood for post of Majlis speaker despite the PPM fielding its senior MP Abdulla Maseeh Mohamed.

In the wake of the coalition’s breakup, President Abdulla Yameen sacked Transport Minister Ameen and other JP political appointees, whilst cabinet ministers on slots assigned for the JP – Environment Minister Thoriq Ibrahim and Economic Development Minister Mohamed Saeed – joined the PPM.

Home Minister Umar Naseer – appointed as part of the coalition agreement with the JP – is meanwhile facing criminal prosecution on charges of disobedience to order.

Following the loss of two JP MPs last month, Gasim claimed at a press conference that the MPs had told him that the government had threatened to cease development of islands in their constituencies.

Gasim said he had heard that the pair were offered MVR10 million (US$648,508) each for the transfer. The PPM has denied offering any incentives to the MPs.

Gasim also claimed to have provided MVR20 million (US$1.2 million) as financial assistance to the PPM’s parliamentary campaign.

In July, the JP meanwhile announced its intention to sue two MPs who switched to the ruling PPM.

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