What’s on sale? A night at Ungulhey

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Malé’s night market through photographer Munshid Mohamed’s lenses.

The biannual street market, dubbed ‘ungulhey bazaar,’ is known for large crowds and a variety of merchandise, including clothes, kitchen accessories and pets.

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Maldivian economy grew by 8.5 percent in 2014, says MMA

The Maldivian economy grew at 8.5 percent in 2014, the central bank has said. Growth was driven by a solid increase in tourist arrivals and the strong recovery of the construction sector.

The government’s fiscal performance in 2014, however, was weaker than anticipated due to shortfalls in revenue and overspending on recurrent expenses, the Maldives Monetary Authority said in its Annual Economic Review.

The International Monetary Fund (IMF) in March provided a much lower figure of five percent for economic growth, and highlighted the need for improved data collection on macroeconomic statistics.

According to the MMA, the government’s total debt reached 65 percent of GDP in 2014, while the fiscal deficit stood at MVR1.6billion or 3.4 percent of GDP, higher than the estimated MVR1.3billion or 2.8 percent.

The tax authority has meanwhile collected MVR951.3million (US$61.9million) in tax revenue in March. The figure is 2.7 percent higher than forecasted as several tourism companies had paid late land rents and fines after the Maldives Inland Revenue Authority (MIRA) froze the accounts of some 20 businesses in April.

MIRA has received MVR 5.61 billion (US$ 360 million) in revenue this year, an increase of 27.3 percent compared to 2014. The tax authority, however, did not state if revenue collection meets targets.

Robust growth

Some 1.2million tourists brought in an estimated US$2.6 billion to the Maldives in 2014. Arrivals grew by 7 percent and was largely driven by arrivals from China. European arrivals recorded a marginal growth due to a decline in Russian tourists.

The growth in bed nights stood at 4 percent – slight lower in magnitude than the growth in arrivals – reflecting the decline in average stay from 6.3 days in 2013 to 6.1 days in 2014. The downward trend in average stay, which has become more marked since 2009, is due to a shift in the composition of inbound tourist markets towards countries such as China, the MMA said

Meanwhile, total tourist revenue remained buoyant and grew by 13% (20% growth in 2013) to reach an estimated US$2.6 billion during 2014. The significant difference between the growth in revenue and bednights may reflect the increase in tourist expenditure on high-end services in the industry, the MMA said.

Airline movements by international carriers, such as Mega Maldives, Cathay Pacific and budget airlines such as Tiger Airways, also increased during the year, and facilitated the growth in tourist arrivals.

Three new resorts were opened, increasing total registered number of resorts in the Maldives to 112. Registered guesthouses reached a total of 216. Some 80 new guesthouses were registered at tourism ministry, but only a total of 95 in operation.

The construction sector bounced back from two consecutive years of negative growth. The revival was mainly due to the ease in obtaining construction materials after India waived restrictions on the export of stone aggregate to in March 2014. This allowed the resumption of large-scale public sector infrastructure projects and major housing projects, the MMA said.

The fisheries sector declined by 6 percent,  following a strong growth of 8 percent in 2013, due to a decline in fish catch, and also because of the significant dip in international tuna prices.

The fishing industry in the Maldives represents about one percent of GDP in 2014. It accounted for 10% of total employment in 2010. Export revenue from fish and fish products accounts for 47 percent of merchandise exports.

Poor fiscal performance 

The government collected some MVR14.5billion in revenue in 2014. But total revenue fell short of the target as some of the new revenue measures planned in the budget did not materialize.

The implementation of of a T-GST hike – from 8 percent to 12 percent – was delayed from July 2014 to November 2014; tourism tax, initially anticipated to be collected throughout the year was only collected from February to November.

There was a “considerable shortfall” from the lease period extension fee collected during the year. The lump-sum resort acquisition fee from the 12 new islands planned to be leased out for resort development did not materialize either.

As a result, total revenue was MVR351.0 million less than budgeted and amounted.

The total expenditure of MVR16.5 billion was slightly lower than budgeted, but only because the government stopped spending on development projects and redirected funds to financing recurrent expenditure.

In the banking sector, the main area of concern continued to be credit risk, as indicated by the high level of poor-quality loans. Non-performing loans “remain a concern with a ratio of 16 percent,” the MMA said.

Gross international reserves increased to US$614.7 million at the end of the year. Out of this, usable reserves accounted for US$143.9 million. The “marked expansion” owed to the improvement in foreign currency receipts of the government, the MMA said.

 

 

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New law excludes migrant workers from Ramadan bonus

Amendments passed today to the Employment Act excludes Muslim migrant workers from a Ramadan bonus, but state employees will now receive an increased payout of MVR3,000 (US$194).

Progressive Party of Maldives (PPM) MP Mohamed Ali had proposed changing the mandatory Ramadan bonus from one-third of the monthly salary to a flat rate of MVR3,000 for all Muslim workers in the Maldives.

The 2008 employment law previously entitled all Muslim workers in the Maldives to a sum no less than one-third of their monthly salary for the month of fasting, with a minimum of MVR2,000 (US$129) and a maximum of MVR10,000 (US$645).

But the amendments approved today leave it to the discretion of employers in both the public and private sectors to pay the Ramadan bonus to Muslim migrant workers. If employers opt to pay the bonus, expatriate workers must also be paid MVR3,000.

The amendment bill was proposed to equalise the Ramadan allowance as staff in higher paying jobs receive a significantly higher bonus.

The Dhuvafaru MPs’ bill was also changed to exempt the private sector from the new rule for a year.

Private businesses will have to pay the MVR3,000 bonus to Maldivian employees for next year’s Ramadan.

The bill was passed unanimously with 60 votes in favour at today’s sitting of parliament. Main opposition Maldivian Democratic Party (MDP) MPs also voted in favour of the bill.

During today’s debate, some MDP MP objected to excluding Muslim migrant workers from receiving the allowance.

MP Eva Abdulla contended that the move amounts to “discrimination” against foreign workers, noting that the majority of Bangladeshi workers in the Maldives were Muslims.

On social media, Human Rights Commission of Maldives vice president Ahmed Tholal also said that excluding expatriate Muslims “goes against the principles of non-discrimination and equality.”

Several pro-government MPs, however, defended the changes, arguing that expatriates are not entitled to the same benefits as the local population in most other countries.

There are some 124,000 migrant workers in the Maldives. A sizeable percentage comes from Muslim-majority Bangladesh. 

PPM MP Jameel Usman’s proposal to make the Ramadan bonus to expatriates discretionary was passed unanimously with 55 votes in favour.  

MDP MP Mohamed Abdul Kareem had proposed paying MVR5,000 as the Ramadan bonus for all Maldivian employees, but his amendment was defeated 42-13 during today’s sitting.

During the debate on the amendments last week, both pro-government and opposition MPs expressed concern with private businesses having to raise additional funds to pay the mandatory MVR3,000 with Ramadan just over a week away. 

MP Ahmed Nihan, parliamentary group leader of the PPM, announced plans to equalise the Ramadan bonus last month. 

Nihan said at the time that MVR36 million (US$2.3million) in extra funding would be needed to increase the Ramadan allowance for all state employees. The current budget for Ramadan allowance stands at MVR92 million (US$5.9million).

Statistics published by the Civil Service Commission (CSC) shows almost half of the country’s 24,742 civil servants are paid less than MVR4,999 (US$ 324) a month. 

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Police officer in charge of Dhoonidhoo put detainees to work

A police officer, who was in charge of the Dhoonidhoo Island remand center, has been accused of putting several detainees to work, pocketing funds and giving special treatment to several suspects arrested in serious crimes.

Sub- Inspector of police Mujathaba Zahir is accused of letting several suspects out of their cells and letting them roam around the island, the Anti- Corruption Commission (ACC) has said.

He accommodated several in special barracks with a television, and allowed them to eat with police officers at the mess room.

Some suspects were let out of their cells even though the police had not completed investigations.

Some detainees were made to work on a warehouse for the Police Cooperative Society (Polco). Mujthaba also had detainees extract toddy from coconut palms and made coconut sugar, which he then sold on the market.

The sales were not documented, the ACC said.

Mujthaba also obtained money and gifts from several companies contracted for work on Dhoonidhoo, including a catering company, in the guise of improving services on the island. But there is no account of how funds were spent, the ACC said.

He is also accused of providing unlawful benefits to those he put to work. But he is also accused of taking MVR10,000 (US$645) earned by some detainees in the guise of buying a fishing net from India. He never returned the money.

The anti- corruption watchdog’s investigation revealed five other officers at Dhoonidhoo had assisted Mujathaba with the unlawful activities. The ACC has also recommended disciplinary action against two more senior officers for failing to put a stop Mujathaba’s activities.

Mujathaba is also accused of listing several contract workers on Dhoonidhoo as police officers and billing the police for their food.

During the ACC investigation, Mujthaba claimed he acted with the blessings of his superiors and for the benefit of the remand center. But the police have denied authorizing any of Mujthaba’s actions.

The ACC has recommend the Prosecutor General’s Office charge Mujthaba with three counts of abuse of authority and one count of depriving the state of monetary benefit.

The watchdog has recommended that Mujthaba’s accomplices – chief station inspector Abu Bakr Ali, station inspector Abdulla Waheed, superintendent Hussein Rasheed, Sargent Athif Naeem and chief station inspector Maumoon Jaufar – be prosecuted for abusing their powers.

The ACC has also advised the police to take disciplinary action against two officers in charge of POLCO – chief superintendent Abul Rahman Yusuf and Inspector Ilyas Rasheed.

In November last year, the Maldives Police Service revealed that 23 officers were deemed unsuitable to perform their job as officers of the law and fired.

While 257 complaints were lodged against police officers, disciplinary actions were taken against 115 officers.

In May last year, a police officer was arrested while attempting to smuggle drugs into Malé custodial detention center.

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Concern over Sheikh Imran and Nasheed’s health

Concern is growing over the health of opposition leaders in custody. The Adhaalath Party president Sheikh Imran Abdulla’s family have said the government is attempting to weaken him physically and psychologically, while under police custody.

Meanwhile, ex-president Mohamed Nasheed’s lawyers say he is being denied access to specialist medical attention despite recommendations from doctors.

He is serving a 13-year jail sentence on a terrorism conviction, relating to the detention of a judge during his tenure.

The opposition leader’s lawyers said doctors at the Maafushi Jail health center and at a Malé military clinic in May recommended that he get a MRI scan. But the government has not authorized the scan, lawyers said in a statement today.

Nasheed’s lawyers also said they were denied their weekly visit with Nasheed today.

“The government suddenly cancelled this visit today without any rationale, via a phone call to the lawyers. Since President Nasheed’s transfer to Maafushi, his access to lawyers have been restricted by the government,” the statement said.

Sheikh Imran is also charged under the 1990 Anti-Terrorism Act, but with threatening to harm police officers and inciting violence at a historic anti-government protest on May 1. He has pleaded not guilty to the charges.

The criminal court last week ordered police to hold Imran in pre-trial detention until the conclusion of his terrorism trial.

Imran was brought to the AMDC clinic in Malé today. He was also taken to see a doctor the previous day and on the night of June 7 as well.

Imran was suffering from body aches as he was forced to sleep on a small bunk in a warm, mosquito-infested cell, the family member told CNM. The cell has a fan but the electricity is periodically cut off, the family member claimed.

Imran was first arrested on the night of May 1 and held in remand detention for 26 days. Hours before the criminal court ordered his release on May 27, the High Court overturned the criminal court’s May 17 ruling to keep Imran in police custody for 10 days.

The appellate court ordered his transfer to house arrest, noting that Imran has diabetes and that tests conducted following his arrest showed high levels of blood pressure, cholesterol, and urine acidity.

A doctor had also recommended that Imran should not sleep on hard surfaces due to a spinal injury.

Minivan News is awaiting a response from the home ministry.

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President nominates former ruling party MP to human rights watchdog

President Abdulla Yameen has nominated former MP Shifaq Mufeed ‘Histo,’ Aishath Afreen Mohamed, and Aminath Eenas to the Human Rights Commission of Maldives (HRCM).

President’s office spokesperson Ibrahim Muaz Ali said the three nominees have been sent to the parliament for approval.

Mufeed represented the mid-Fuvahmulah constituency as a Maldivian Democratic Party (MDP) MP in the 16th People’s Majlis. He joined the Progressive Party of Maldives (PPM) in May 2012, several weeks after the ousting of the MDP government on February 7, 2012.

In July 2013, Mufeed quit the PPM and joined the Jumhooree Party and backed its candidate Gasim Ibrahim in the 2013 presidential election.

He did not seek re-election in the May 2014 parliamentary elections and went back to the PPM in March 2015.

Afreen is a former HRCM staff member and the wife of PPM Fares-Maathoda MP Hussain Mohamed Latheef. Eenas works at the gender department.

Some 33 interested candidates submitted applications to the president’s office before a 3:00pm deadline yesterday.

The president’s office invited applications last week as the five-year terms of three members are due to expire in August.

The three members are HRCM president Mariyam Azra, vice president Ahmed Tholal, and Jeehan Mahmood.

PPM MPs have previously accused Tholal and Jeehan of bias towards the opposition MDP, an accusation the pair deny.

The PPM and coalition partner Maldives Development Alliance (MDA) control a comfortable majority in the parliament with 48 seats in the 85-member house.

In September last year, the Supreme Court initiated suo moto proceedings against the HRCM and charged its members with undermining the constitution and sovereignty of the Maldives by spreading lies about the judiciary in its Universal Periodic Review submission to the UN Human Rights Council.

The HRCM, in its 2014 annual report, described the suo moto proceedings as the biggest challenge the watchdog has faced in its 11-year history.

The commission also noted that the Juvenile Court had accused them of making false allegations in a confidential report into a 15-year-old rape victim’s flogging sentence.

The Supreme Court and Juvenile Court’s charges affected the commission’s independence and ability to carry out its mandate, the report said.

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JP proposes all-party talks in first meeting with government

The opposition Jumhooree Party (JP) has proposed conducting all-party talks to resolve the ongoing political crisis at the first meeting between the opposition party and President Abdulla Yameen’s representatives today.

JP MP Abdulla Riyaz told Minivan News that the party proposed three other issues for discussion: freeing opposition politicians in jail or facing criminal prosecution within legal bounds, ensuring the independence of the judiciary, and protecting investors.

A second meeting has been scheduled for 3:00pm on Sunday to discuss the proposals.

President Abdulla Yameen had called for separate talks with the three allied opposition parties last month, but Riyaz said the JP today proposed setting up a “platform” for discussions among all political parties, including the ruling Progressive Party of Maldives (PPM).

The JP’s representatives for the talks are MPs Riyaz, Ilham Ahmed, Faisal Naseem, and Hussain Mohamed.

The government’s representatives include tourism minister Ahmed Adeeb, president’s office minister Mohamed Hussain Shareef ‘Mundhu,’ and environment minister Thoriq Ibrahim.

Mundhu told the press that the discussions took place in “a friendly atmosphere” and both sides agreed on how to carry the talks forward. The ministers will present the JP’s proposals to the president, he added.

All-party talks

The president’s official invitation for talks came after months of continuous protests over the imprisonment of ex-president Mohamed Nasheed and ex-defence minister Mohamed Nazim as well as a US$90.4 million claim on JP leader Gasim Ibrahim’s Villa Group.

The JP immediately agreed to sit down with the government without conditions.

Gasim has meanwhile been in Bangkok since late April. According to local media, the criminal court has issued an arrest warrant for Gasim on charges of financing a historic anti-government mass protest on May 1.

The JP’s deputy leader Ameen Ibrahim and council member Sobah Rasheed are accused of inciting violence at the May Day protest, and have been charged with terrorism. If convicted, they face between 10 and 15 years in jail.

Both Ameen and Sobah are out of the country. In a video message this week, Sobah said he is seeking political asylum.

President Yameen has meanwhile ruled out negotiations over Nasheed and Nazim’s release. His agenda focuses on political reconciliation, strengthening the judiciary and political party participation in socio-economic development.

The MDP has proposed Nasheed, chairperson Ali Waheed and MP Ibrahim Mohamed Solih as representatives. The Adhaalath Party proposed its president Sheikh Imran Abdulla, who is currently in police custody. He is also charged with terrorism over the May Day protest.

The government has rejected Nasheed and Imran as representatives.

Speaking to Minivan News today after Riyaz declared that the JP was not involved with the ‘Maldivians against tyranny’ alliance and the upcoming mass protest on June 12.

MDP vice president Mohamed Shifaz said that JP members were working with the alliance in their individual capacity. He noted that the JP had not formally joined the alliance or supported the May Day protest.

MDP MP Ibrahim Mohamed Solih meanwhile told the press this afternoon that all political parties should sit down together for the talks in order to ensure a positive outcome.

“We think that a good result can be achieved when parties of all ideologies sit at the same table for discussions as all parties were given the same agenda and they have the same concerns,” he said.

The newly-appointed British High Commissioner to the Maldives has also supported all-party talks.

“We think it’s important that talks involving all parties should take place. It seems to me to be logical that talks should take place involving all the parties together, both the party in government and parties in opposition,” James Dauris said in an interview with Minivan News during a two-day visit to the Maldives in May.

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Opposition to stage a sit-in on June 12

The opposition will stage a mass peaceful sit-in on the capital Malé’s thoroughfare Majeedhee Magu on June 12.

The sit-in signals a change in tactics by the Maldivians Against Tyranny coalition. The opposition’s first mass demonstration on February 27 ended abruptly at 6pm, while the second mass demonstration ended in a police crackdown when protesters attempted to take the restricted Republic Square on May 1.

MP of the main opposition Maldivian Democratic Party (MDP), Ibrahim ‘Ibu’ Mohamed Solih, said: “We are once again, taking to the streets to end tyranny. We cannot achieve our goals in one day with just one action. So on June 12, we will raise our voices again.”

Supporters are to gather at 8:30pm at the opposition’s campaign offices or Haruge at the Artificial Beach.

The opposition is protesting over the jailing of ex-president Mohamed Nasheed and ex-defence minister Mohamed Nazim in rushed trials criticised for apparent lack of due process.

The tax authority’s decision to freeze Jumhooree Party leader Gasim Ibrahim’s businesses over a US$90.4 million claim is another key concern. The MP’s Villa Group claims the fine is unlawful and is contesting it at the civil court.

“We will gather at the Haruge, walk to Majeedhee Magu and stage a peaceful sit-in. We will raise our voices. Depending on the results, we will, if we have to, take to the streets again,” Ibu said.

The coalition consists of MDP, the religious conservative Adhaalath Party, members of the JP and defectors from the ruling Progressive Party of the Maldives.

JP members were absent at today’s press conference.

Two JP officials who played a lead role in the coalition, deputy leader Ameen Ibrahim and council member Sobah Rasheed, left the country shortly before terrorism charges were pressed over the May Day protest.

Adhaalath Party president Sheikh Imran Abdulla, also charged with terrorism, is in police custody until the trial ends.

Independent MP Ahmed Mahloof said today: “We must not fall back to the government’s, President Yameen’s intimidation. We will not fall back. The [government] is attempting to jail those who come out with us on charges of terrorism, but I for one, I will remain steadfast.”

Nearly 200 people were arrested at the May Day protest, the largest number of arrests from a single protest in a decade. An additional 15 were arrested on charges of assaulting a police officer.

The police have since obstructed the coalition’s attempts at street protests by limiting protests to the pavements, banning the use of speakers beyond 11pm, and requiring permission for the use of four-wheeled vehicles in protests.

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Parliament to consider age limits for the presidency

The parliament today accepted for consideration a constitutional amendment proposing an age limit of 30 to 65 years for the president and vice president.

Government-aligned MP Mohamed Ismail’s bill has fuelled speculation of President Abdulla Yameen planning to replace Vice President Dr Mohamed Jameel Ahmed with tourism minister Ahmed Adeeb, who is now 33 and ineligible for the position.

Presidential candidates must be 35 years of age, according to the constitution.

Dismissing the “rumours” last month, Adeeb told Minivan News that he has “no interest at this stage.”

Presenting the bill to parliament today, MP Ismail said its purpose is “facilitating opportunities for youth.” The Maldives Development Alliance (MDA) MP said he proposed the 65-year cap as the president should be “young, intelligent, daring, active, and energetic.”

He noted that 65 years is the retirement age in the Maldives. A 70-year-old or 80-year-old would find it difficult to fulfil the responsibilities of the office, Ismail contended.

The amendment bill was accepted with 44 votes in favour, five against, and sent to a parliamentary committee for review.

A three-quarters majority or 64 votes will be needed to amend the constitution. The Progressive Party of Maldives (PPM) and coalition partner MDA controls 48 seats in the 85-member house.

The ruling coalition will need the backing of the opposition Maldivian Democratic Party (MDP) or Jumhooree Party (JP) MPs to pass the amendment.

Several JP MPs voted in favour of the bill.

If passed, the amendment will bar JP leader Gasim Ibrahim from contesting the next presidential election. The business tycoon will be 66 in 2018.

During the preliminary debate today, opposition MPs argued that it should be up to the public to decide whether a presidential candidate is too young or old for the presidency.

MP Ibrahim Mohamed Solih, parliamentary group of the MDP, said he favoured lowering the age limit to 18 years, but objected to the 65-year age limit.

MDP MP Imthiyaz Fahmy said the constitution should not be amended to serve the interests of an individual. But PPM MPs denied that the amendment was “tailor-made” for Adeeb.

JP MP Ali Hussain said constitutional amendments should only be proposed after reaching a consensus among political parties. No democratic country has an upper age limit for the president, he said.

MP Ahmed Nihan, parliamentary group leader of the PPM, said the majority party will decide its stance following discussions, but said he personally supported it. Other pro-government MPs also backed the amendments in their “individual capacity.”

PPM MP Abdul Raheem Abdulla said amending the constitution might be necessary “under some circumstances” to allow the president to replace a “disloyal” vice president.

“I’m not saying at all that we are trying to bring a particular person to the vice presidency. But if it has to be done, the PPM parliamentary is ready,” he said.

Last month, newspaper Haveeru suggested that the ruling coalition might also amend the constitution to authorise the president to appoint or dismiss his deputy.

The relationship between President Abdulla Yameen and Dr Jameel is reportedly under strain. His cousin, Mohamed Maleeh Jamal, was dismissed from the cabinet last month. The government did not provide a reason for the dismissal.

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