May 7, 2012 – Minivan News

Stop buying iPads, computers and phones, ACC tells government

The Anti Corruption Commission (ACC) has ordered the Finance Ministry to cancel plans to buy computers, iPads and phones for government ministries, claiming that only the People’s Majlis can approve ministerial salaries and benefits.

The Finance Ministry on April 30 released a circular approving the purchase of mobile phones, computers, and iPads for ministers from state funds allocated to the respective ministries. Furthermore, the finance ministry said the treasury would cover up to Rf 4000 (US$260) in monthly payments for ministers’ phone bills.

However, the ACC has told the Finance Ministry that no state institution could approve salaries and benefits for its staff, claiming that the task fell under Majlis’ jurisdiction.

“Article 102 of the Constitution authorizes the People’s Majlis to allocate salaries and benefits for the President, Vice-President, Judges, Members of Parliament and staff of the state institutions. Instead of state institutions deciding for themselves on matters within Majlis jurisdiction, we have ordered the Finance Ministry on May 7 to approve such benefits through the Majlis,” an ACC statement read.

“We would like to remind you the Auditor General has repeatedly criticized such actions in his audit reports and called on state offices not to do so without Majlis authorization. Further, when this commission asked the Majlis for advice on phone allowances, the Majlis Finance Committee told us in a letter on 30 March 2011 to act according to the salary structure approved by the Majlis on 28 December 2011 until the Majlis decides otherwise,” the statement noted.

The Auditor General Ibrahim Niyaz last week released a report on the Department of Judicial Administration (DJA) noting that between October 2008 and December 2011, Supreme Court judges had paid their phone bills amounting to RF 281,519 (US$18,280) from the state budget, despite the fact that the parliament had not allocated phone allowances to the judges.

Niyaz has recommended the amount be reimbursed and that the granting of phone allowances be determined by the parliament.

The Supreme Court on 16 May 2011 released a statement claiming that no Supreme Court judge had received phone allowances, after local media accused judges of misappropriating state funds for phone allowances.

Meanwhile, Chief of the IMF mission in the Maldives, Jonathan Dunn, warned parliament in April that if the country does not reduce its expenditure, it risks running out of reserves and miring the country in poverty.

Furthermore, the Majlis Finance Committee last week has projected that the Maldives budget deficit will reach 27 percent of the GDP by the end of year 2012, a 175 percent increase on earlier forecasts.

Government spending in 2012 is expected to increase by almost 24 percent, reaching Rf17.45 billion (US$1.13 billion) at the end of the 2012, while government revenue for 2012 will be Rf2.6 billion (US$168.6 million) less than the projected amount of Rf10.87 billion (US$704 million) – a 23 percent plunge.

With the shortfall of revenue and increased government spending, Head of the Majlis’s Financial Committee, Deputy Speaker and People’s Alliance (PA) MP Ahmed Nazim observed that the budget deficit will exceed from Rf 3.9 billion (US$ 252 million) to Rf9.1 billion this year (US$590 million), amounting to 27 percent of the country’s GDP.

Finance committee member and MDP MP for Kulhudhufushi, Abdul Ghafoor Moosa, told reporters that unplanned spending on police and military personnel and planned reimbursement of civil servants pay cuts in 2010, are both significant causes for rising costs to the government.

He observed that the largest shortfall in revenue is a direct result of the US$135 million pulled out from the budget with new government’s recently revised policy on lease extension payments for resort islands.

Maldives Inland Revenue Authority (MIRA) anticipated receiving a total of Rf375 million (US$ 24 million) for lease extensions, however the income received dropped to Rf23 million (US$1.5 million) as a result of the decision to accept the lease extension fees in an annual installment instead of a lump sum as decided by former administration.

The loss of concession fees from Ibrahim Nasir International Airport (INIA), the result of a successful Civil Court case to block the Airport Development Charge (ADC) filed by the Dhivehi Qaumee Party (DQP) while it was in opposition, also saw the government receive only US$525,355 from the airport for the quarter, compared to the US$8.7 million it was expecting.

The government-aligned PA’s Deputy Leader Nazim however contended that the 23 percent drop in government income was caused by unrealised revenue from privatisation schemes and a shortfall of Rf 166.7 million and Rf435 million (US$28 million) from the projected dividends of Dhiraagu and import duties respectively.

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Amnesty, NGOs concerned about Maldives PR “whitewash”: Independent

An international lobbying firm, based in London, has accepted a commission to boost the reputation of the regime that toppled the first democratically elected President of the Maldives, writes Oliver Wright for the UK’s Independent newspaper.

“Ruder Finn has been condemned for taking the contract – thought to be worth £300,000 – to boost the image of the Maldives in the UK and America.

Mohamed Nasheed, the elected former leader, was made to quit in a military and police coup in February. He was replaced by Mohammed Waheed Hassan – who, it is claimed, is backed by the ex-dictator who ran the Maldives for 30 years.

In the weeks since the change of power, Amnesty International has denounced violence by the security forces against peaceful protesters. In March at least six protesters were injured, some seriously, when police and military officers attacked around 300 MDP protesters in the capital, Malé. Amnesty said this was part of a wider pattern of attacks on supporters of the former President Nasheed’s Maldivian Democratic Party.

In a pitch, won by Ruder Finn, the new Government said it was looking for a firm to provide both lobbying and public relations expertise. The new regime said it wanted to “renew the Maldives image in major countries” and create “an alliance of support for the Maldives.” It wanted to “seed” positive stories about the islands in the media.

It expected the company to “arrange briefings to build links at various levels with the UK, US and major European governments.”

It would also be expected to “leverage outcomes from relationships with governments, academics and NGOs”.

Abbas Faiz, South Asian researcher for Amnesty International, said it had significant concerns about the contract.

“If a government hires any firm to whitewash human rights violations with impunity we would be very concerned. I was in the Maldives in March and the level of atrocity that we witnessed was entirely different from what we were being told by the Government.

“We will be watching the activities of Ruder Finn… if we have concerns about their role we will be raising them.”

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Maldives signs aviation agreement with Bangladesh

The Maldives has signed an agreement with Bangladesh to expand aviation links between the two countries.

Head of the Maldives’ Civil Aviation Authority (CVA) Hussain Jaleel signed a Memorandum of Understanding (MOU) with Chairman of Bangladesh’s Civil Aviation Authority, Air vice Marshall Mahmoud Hussain.

“Under this Memorandum of Understanding airlines operating between both countries under the agreement can make 14 flight operations per week,” the CVA said in a statement.

“It allows airlines to make either Colombo or Chennai their third destination with consent to carry cargo and passengers from these two destinations as well. Cargo flight operators are also entitled to the same privileges under the agreement.”

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“Dire economic outlook” as budget deficit estimated to reach 27 percent of GDP

Parliament’s Financial Committee has projected that the Maldives budget deficit will reach 27 percent of the GDP by the end of year 2012, a 175 percent increase on earlier forecasts.

While the 2012 budget put the deficit at less than 9.8 percent of Gross Domestic Product (GDP), the figures revealed by the committee last week shows that the amount will increase up to a staggering 27 percent.

These figures confirm the International Monetary Fund (IMF)’s earlier warnings that the Maldives had “substantially understated” its budget deficit, by underestimating its spending and “probably” overestimating tax revenues.

Head of the Majlis’s Financial Committee, Deputy Speaker and People’s Alliance (PA) MP Ahmed Nazim, revealed to the reporters that government revenue for 2012 will be Rf2.6 billion (US$168.6 million) less than the projected amount of Rf10.87 billion (US$704 million) – a 23 percent plunge.

Meanwhile, government spending in 2012 is expected to increase by almost 24 percent, reaching Rf17.45 billion (US$1.13 billion) at the end of the 2012.

With the shortfall of revenue and increased government spending, Nazim observed that the budget deficit will exceed from Rf 3.9 billion (US$ 252 million) to Rf9.1 billion this year (US$590 million), amounting to 27 percent of the country’s GDP.

“The information shared by the Finance Minister Abdullah Jihad shows a dire economic outlook for the Maldives,” he warned, echoing the IMF’s recent predictions on the Maldives’ economic frailty.

Chief of the IMF mission in the Maldives, Jonathan Dunn, warned parliament in April that if the country does not reduce its expenditure, it risks running out of reserves and miring the country in poverty.

Although 2012 budget put the deficit at less than 10 percent of GDP, Dunn told Minivan News that “the IMF team sees the figure as more likely to be 17.5 percent of GDP, and perhaps larger than this.”

As a result of this, he warned that the economic growth and stability in the Maldives were unlikely to be maintained “in the medium term” unless the government substantially cut spending.

Dunn emphasised that the only sustainable solution was for relevant parties to rationalise the budget by boosting revenues and cutting expenditure, despite the political difficulties.

“These may be politically difficult measures, but the consequences of not reducing the budget deficit are likely to be even more difficult,” he warned.

New government increases spending

Despite urgent calls to reduce spending to curb widening deficits, parliament’s finance committee projects the government spending will have to be increased to cover additional costs which were not included in 2012 projections.

These expenses include food subsidies worth Rf270 million (US$17.5 million), electricity subsidies worth Rf250 million (US$16.2 million), capital expenditure by government institutions Rf735 million (US$47.6 million) and an allocation of Rf200 million (US$12.9) to the Aasandha Health Insurance scheme’s budget, according to Nazim.

Visiting Hirimaradhoo island last weekend, President Waheed said he would allocate Rf 30 million (US$1.9 million) in the 2013 state budget for development.

A total of Rf3.4 million (US$220,500) is also said to be allocated as benefits to former President Mohamed Nasheed of Maldivian Democratic Party (MDP) which alleges that Nasheed was ousted in a coup on February 7.

However, committee member and MDP MP for Kulhudhufushi, Abdul Ghafoor Moosa, told reporters that unplanned spending on police and military personnel and planned reimbursement of civil servants pay cuts in 2010, are both significant causes for rising costs to the government.

The government-aligned PA’s Deputy Leader Nazim however contended that the the 23 percent drop in government income was caused by unrealised revenue from privatisation schemes and a shortfall of Rf 166.7 million and Rf435 million (US$28 million) from the projected dividends of Dhiraagu and import duties respectively.

He noted that the committee has decided to increase the treasury bond limit up to Rf1 billion following a request by the Finance Ministry to increase the limit from Rf727 million to Rf 1.5 billion. The ministry says that all monetary transactions will be halted if the limit is not extended, according to Nazim.

The IMF’s Dunn has however stated that further domestic borrowing “will be difficult to achieve, as it is unclear whether the banks have much more appetite for buying treasury bills.”

Meanwhile, in a bid to address spiraling costs, the committee is reviewing the Aasandha universal health scheme to block the Rf200 million extension of its budget, cut the budget of all institutions by 10 percent to save nearly Rf 1.5 billion, and save a further Rf300 million by issuing a moratorium of the further employment of staff. These measures will reduce state costs by Rf 2.2 billion (US$142 million), Nazim estimated.

However, recently released figures from Finance Ministry show that between January 1 to April 26, state expenditure exceeded over Rf 4 billion (US$259 million) while the income remained at Rf 2.10 billion (US$136 million), a deficit of Rf 1.5 billion (US$100 million).

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Female police officer attacked near MDP protest area

A female police officer was attacked on Friday night while she was waiting near a food cart on Boduthakurufaanu Magu with friends, police have said.

In a statement, police said the officer was attacked by people gathered near ‘Usgandu’, an area given by Male City Council to the Maldivian Democratic Party (MDP) to conduct political activities, following the dismantling of their protest site at the tsunami monument by authorities.

Police said the incident occurred at about 9:20pm on Friday night while the officer was not in police uniform.

According to the police, the woman suffered injuries to her back and chest and was admitted to ADK hospital for treatment.

Police are trying to determine the persons responsible for this attack, police said.

Speaking at a meeting held with police officers and Maldives National Defence Force (MNDF) officers last Saturday night at Kulhudhufushi in Haa Dhaalu Atoll, President Dr Waheed Hassan Manik said the police and army had been having hard time over past three months, and that the government understood that it needed to increase the security of police and army officers, their property and families.

Newspaper ‘Haveeru’ reported Waheed as telling the police and army officers that he appreciated the work of security forces, and condemned accusations made by people against police and army officers as an attempt to cause public disturbance.

In the meeting, Dr Waheed also assured the police and army that he and his cabinet ministers would not give any unlawful orders to the security forces, reported Haveeru.

In March, two police officers, one male and a female, were attacked by a group of people while they were patrolling on the roads near Nalahiya Hotel in Maafannu Ward.

They were admitted to hospital for treatment, according to police.

Three men were also alleged to have entered a policeman’s house with knives.

In the same month a group of two men attacked a police officer and his two brothers on the island of Gemanafushi in Gaafu Alifu Atoll.

Police at the time stated that two men assaulted the police officer and fled, and an hour later stabbed the officer’s younger brother in the head and another of his brothers in the stomach.

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Ruling coalition’s attacks on international community “irresponsible”: Thinvana Adu

Thinvana Adu, a coalition of Maldivian NGOs, have sent an open letter to the country’s political leaders, including President Dr Mohamed Waheed Hassan, voicing concern over what they describe as “irresponsible” allegations made against international bodies seeking to mediate in the current political dispute.

The open letter argues that assistance from the international community is vital in consolidating the rule of law in a young democracy such as the Maldives.

In response to strong criticism of the role the Commonwealth is playing in Maldivian politics from some political leaders, Thinvana Adu has argued that international interest and concern in the Maldives is normal and should not be perceived negatively.

“Instead of fostering hatred among the people toward the international community, the Thinvana Adu group urge the government, stakeholders, and political actors to strengthen relations with international community to achieve sustainable development,” the letter said.

“In a globalised world, one country’s interest is of another country’s concern. No country can remain isolated from the world, especially a country like the Maldives, a country that is economically vulnerable,” it continued.

Ahmed Nizam, spokesman for the Thinvana Adu coalition, said that the open letter hoped to address the “anti-foreign sentiment” that the group had observed in the parliament.

“We feel that most countries in the Commonwealth are friends in the region too. Being a small country with a small population, we are dependent on other countries,” said Nizam.

“Anti-foreign sentiment”

Criticism over the role of the Commonwealth Ministerial Action Group (CMAG) began shortly after its first statement in March when it called for “the earliest possible expression of the will of the people was required to establish universal faith in the legitimacy of those who govern the [Maldives].”

This statement provoked an “astonished” response from the government. PPM MP Abdul Raheem Abdulla said, “[the] statement is biased and that it harbours the interests of a particular individual”.

State Minister for foreign affairs Dhunya Maumoon added: “My hope is that the UN and other neighbouring countries help the Maldives on its request. It is not for them to impose their interests on us.”

CMAG’s April statement brought even heavier criticism of the government which, in turn, prompted a greater backlash from coalition politicians. The composition and impartiality of the government body tasked with investigating February’s change of power, the Committee of National Inquiry (CNI) was strongly criticised.

CMAG’s threat of “further and stronger measures” should the CNI not be revised within four weeks of the April 16 statement was met with criticism of CMAG’s research methods and arguments that it had not provided assistance when requested.

On April 23, Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed, voiced his support for the country’s withdrawal from the Commonwealth.

“There is no reason to have international relations with a group like this, who don’t even know how to ensure justice,” he said. “I propose to disaffiliate ourselves from the Commonwealth for now.”

After statements from former President Maumoon Gayoom suggested a “rethink” of the Maldives’ need to be part of the Commonwealth Riyaz was joined by Ahmed Ilham of Gayoom’s Progressive Party of Maldives (PPM) in submitting a bill to withdraw from the organisation.

The bill was submitted on April 29 and had not been considered by the Majlis before it broke for a month’s recess last week although the leader of the Dhivehi Rayyithunge Party (DRP) Ahmed Thasmeen Ali, a member of the government’s coalition, declared that his party would not support the bill.

Speaking shortly after being sworn in as Vice President, Mohamed Waheed Deen, said last month that, although the government intended to cooperate with the Commonwealth, he added a warning that outside interference in the Maldives’ domestic affairs would be seen as an “attack on our independence and national sovereignty”.

Voices of dialogue

The repercussions of dislocation from the Commonwealth were described to Minivan News recently by the New Zealand geopolitics consultancy, 36th Parallel Assessments.

The consultancy discussed the case of Fiji, which was suspended from Commonwealth in 2009 after its failure to restore democracy following a military takeover. The group described an “estrangement” from western aid and technical programmes and a shift in attitudes toward investment in the country, citing tourism as a prominent example.

“[Fiji’s] brand of authoritarian government caused aid donor nations and bodies (most significantly donor funds from the European Union) to be cut. Donors became reticent to commit development funds to Fiji, and indeed the Commonwealth member states in the Pacific region used this withdrawal of aid funds as a lever to pressure Fiji to return to democratic rule,” explained Selwyn Manning of 36th Parallel.

Thinvana Adu, whose name translates as ‘Third Voice’, comprises Transparency Maldives, Maldivian Democracy Network, Democracy House, and the Maldives NGO Federation which itself represents 59 organisations.

The letter urged politicians to refrain from isolationism and to work in the best interests of the country rather than personal self-interest.

Instead, the group argues that as much assistance as possible ought to be sought from the international community.

Since the civil society coalition was formed, it has met with government and opposition politicians from both the government coalition as well with Commonwealth, United Nations, and European Union representatives.

The group had hoped to act as observer on the CNI but has decided to step back whilst the appropriate composition of the commission is determined. Nizam explained that the group will write to the CNI today, expressing their continued desire to observe once the CNI is reformed.

The groups professed aim is to enhance dialogue across the political divide that it feels has grown wider since February 7.

The group hopes to hold a public forum at the end of the month which will enable an open discussion of the most important issues afflicting the country.

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President establishes two new ministries in healthcare shake-up

President Mohamed Waheed Hassan has abolished the Ministry of Health and Family in favour of two new separate ministerial bodies.

The Ministry of Health and the Ministry of Gender, Family and Human Rights have both now been established following the abolition of the previous healthcare body.

Under these two new bodies, Dr Ahmed Jamsheed Mohamed will retain his post as Minister of Health, while Dhiyana Saeed will head the Ministry of Gender, Family and Human Rights.

Saeed, former SAARC Secretary General and wife of recently-elected Jumhoree Party (JP) MP for Kaashidhoo, Abdulla Jabir, resigned from her SAARC position after criticising former President Mohamed Nasheed for the arrest of Chief Criminal Court judge, Abdulla Mohamed. Saeed was youngest SAARC Secretary General ever appointed and the first female.

Both new ministers conducted their respective oath of office today in-front of Supreme Court Judge Abdulla Areef, according to the President’s Office.

The ministerial changes were made a week after the government announced the abolition of the country’s Health Service Corporations. President Waheed said the service facilities provided by the corporations would be brought under control of the Ministry of Health.

The decision was taken by the cabinet based on the experiences of previous government health policy over the last three years, the government stated. The government claimed that a number of “challenges” needed to be faced in providing healthcare across the country’s atolls.

Just last month, the government announced that 30 state companies providing provincial health and utility services would be abolished to try and streamline various public services.

Seven health corporations charged with overseeing regional medical services were also dissolved in favour of returning their functions to the Ministry of Health and Family.

The now opposition Maldivan Democratic Party (MDP) criticised the decision as reversing the decentralisation policy that had been undertaken in recent years.

“Maldives’ geographical fragmentation means one central board or company will find it impossible to effectively monitor and deliver services in an equitable manner,” former President Nasheed’s former Policy Undersecretary Aminath Shauna told Minivan News at the time.

Regional hospitals

Mohammed Abdul Samad, temporary manager for Gan Regional Hospital in Addu Atoll, told Minivan News Thursday that he personally welcomed the decision to abolish the Health Service Corperations.

Samad claimed that despite the relative success in recent years of Maldives health policy in areas such as cutting infant mortality rates, the quality of health services had been generally declining.

“We are desperately in need for urgent supplies like certain injections. We have so many pending bills and the government has had to arrange money for us,” he said.

Samad, who said he was temporarily overseeing operations at Gan Regional Hospital, added that he therefore welcomed the decision to have the Ministry of Health oversee the former Health Service Corporations’ work.

He also claimed that the government would be better able to provide more technically-experienced health staff rather businessmen to oversee hospital operations.

Samad added that Gan Regional Hospital presently faced significant problems in paying off debts relating to much needed drug supplies.

He claimed that the Health Ministry faced major challenges in relation to hiring trained medical staff at hospitals around the country. Taking the example of Gan Regional Hospital alone, Samad said the site presently had the need to employ additional specialist staff like a second gynaecologist to meet local patient demand, though added that management were unable to find suitable candidates.

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Government to shun service providers not registered under GST scheme

Government authorities are being urged not to obtain goods or services from businesses that have failed to register for the Goods and Services Tax (GST).

A new Finance Ministry circular has said government offices must not conduct business or sign contracts with enterprises not registered with the Maldives Inland Revenue Authority (MIRA), according to local media reports.

The circular has been signed by the present Finance Minister Abdulla Jihad.

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Police arrest 27 year-old in connection with vandalism of VTV

A 27 year-old man was arrested on Saturday night for his suspected involvement in the vandalism of Villa TV (VTV), a private TV station owned by resort tycoon, MP, Judicial Services Commission (JSC) member and Jumhoree Party (JP) Leader Gasim Ibrahim.

Police identified the man as Ahmed Naeem of Ladhumma house in Henveiru ward.

Another 26 year-old man surrendered himself to police after officers started looking for him regarding his involvement in the same case.

Police identified the man as Hussain Farushaan of Hulhudhoo in Seenu Atoll and said he went to the police station of his own accord on Wednesday night.

In a statement police said they were still trying to identify more persons that were involved in vandalising the VTV building during protests on March 19.

On March 19, President Dr Waheed Hassan Manik delivered his opening address to parliament amid widespread anti-government demonstrations, after the Maldivian Democratic Party (MDP) took to the street to prevent him from giving the speech. Violent clashes between police and protesters and sparked major unrest in the capital Male’.

Waheed delivered an abridged version of his speech amid heckling from MDP MPs.

Police told the press at the time that 80 men, 13 women and six minors were arrested in connection with the unrest on the day.

According to police, 11 police officers were injured in the protests, and one who suffered serious injuries was sent abroad for treatment.

Police Superintendent Ahmed Mohamed recently said that the attack on VTV was itself an act of terrorism and that those involved should receive “the harshest punishment possible”.

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