Month: November 2012

Tourism growth slowed to less than one percent in 2012: Finance Ministry

The government’s forecast for economic growth in 2013 is 4.3 percent, following a slowdown to a projected 3.4 percent in 2012, according to an economic and fiscal outlook by the Finance Ministry introducing the state budget (Dhivehi) proposed for next year.

Tourism was especially hard hit in 2012, with growth falling from 15.8 percent in 2010 and 9.1 percent in 2011, to an expected 0.7 percent in 2012.

The original forecast for economic growth in 2012 was 5.5 percent.

An International Monetary Fund (IMF) mission said in a statement earlier this month that economic growth slowed to three and a half percent this year on the back of “depressed tourist arrivals earlier in the year and weak global conditions,” which have been “only partially offset by strong performance in construction and fisheries-related manufacturing.”

The IMF mission forecast “a modest recovery” for 2013 and beyond.

The Finance Ministry’s statement on the economic outlook for the next three years meanwhile explained that the Maldivian economy dipped into recession in 2009 following the global financial crisis in the previous year.

However, the economy rebounded with 7.1 percent growth in 2010 and 7 percent in 2011.

“While [real GDP] was projected to increase in 2012, the main cause of the economic slowdown compared to 2011 was the weakening of the tourism sector during the year,” the Finance Ministry stated.

While the tourism industry grew by 15.8 percent in 2010 and 9.1 percent in 2011, the industry’s growth in 2012 was expected to be 0.7 percent.

The two main reasons cited by the Finance Ministry for the anaemic growth were “the political turmoil the country faced in February” and a decline in the average number of nights tourists spend in the country “as a result of a decline in the average number of days a tourist spent in the Maldives.”

On average, tourism accounted for 28 percent of GDP during the past 10 years.

The main drivers of growth in 2012 were a booming construction industry and growth in manufacturing and fisheries.

Fisheries, manufacturing and construction

The volume of fish catch has been steadily declining for the past seven years. While approximately 185,000 tonnes of fish were caught in 2006, the number dropped to about 70,000 tonnes in 2011.

During the past five years, the value of the fisheries industry declined from MVR 489 million (US$31.7 million) to MVR 321 million (US$20.8 million) with a corresponding fall of 3.3 percent of the economy to 1.1 percent in 2012.

As a result of opening up the country’s Exclusive Economic Zone (EEZ), the industry’s productivity was expected to rise by 9.7 percent in 2012.

However, as fishing in the Indian Ocean was not expected to improve in coming years, the Finance Ministry has forecast the real GDP of the fisheries sector to decline by 1.3 percent in 2013.

Estimated real GDP for the manufacturing industry – fisheries products, foodstuff, furniture and cement – was meanwhile MVR 998 million (US$64.7 million) in 2012, up from MVR 850 million (US$55.1 million) the previous year.

Fisheries-related products accounted for the largest share of the manufacturing industry.

Following 19 percent growth in 2011, the construction industry was expected to have grown by 16 percent in 2012.

“The main reason for the large growth of the sector in 2011 and 2012 was the development of new resorts in 2011,” the Finance Ministry observed, adding that resort development accounted for 50 percent of construction in the Maldives.

Meanwhile, in the retail and import business sector, customs statistics for the first eight months of 2012 showed that the value of goods imported (adjusted for inflation) was 22 percent higher than the same period in 2011.

The real GDP of the business sector in 2012 was an estimated MVR 875 million (US$56.7 million).

Deficit and debt

The Finance Ministry also revealed that nominal GDP in 2011 was MVR31,447 million (US$2 billion) while the estimate for 2012 was MVR34,148 million (US$2.2 billion).

Real GDP in 2011 was MVR20,461 million (US$1.3 billion). Nominal GDP per capita in 2012 was estimated to be MVR 80,260 (US$5,206) per annum.

Real GDP measures the value of all goods and services produced in a country expressed in the prices of a base year – 2003 in the Maldives.

According to the Finance Ministry, the medium term target of the government was meanwhile reducing the fiscal deficit “to pave the way to conduct social and economic programmes” and regain the confidence of international financial institutions.

While a budget deficit of 9.7 percent was forecast 2012, the Finance Ministry said the figure was expected to reach 12.6 percent of GDP by the end of the year.

“The projected deficit in the estimated budget proposed for 2013 is 6.1 percent of GDP,” the Finance Ministry stated. “In the medium term, the budget deficit can be lowered to 1.9 percent of GDP in 2015.”

The Finance Ministry proposed MVR 1.1 billion (US$71.3 million) as foreign loans and MVR 1.1 billion (US$71.3 million) as domestic finance to plug the budget deficit in 2013.

While tax revenue from T-GST, GST and import duties collected in 2012 was lower than forecast, the Finance Ministry revealed that income from Business Profit Tax (BPT) was 80 percent higher than expected.

At the end of 2012, the government would have received MVR 1.3 billion (US$84 million) as BPT while the forecast was MVR763.6 million (US$49.5 million).

Presenting the 2013 budget to parliament on Monday, Finance Minister Abdulla Jihad said revenue forecast for 2013 was MVR 12.9 billion (US$836 million), including MVR 1.8 billion (US$116 million) expected as a result of implementing proposed revenue raising measures.

However, most of the proposed measures – such as hiking T-GST and introducing GST for telecom services – would have to be approved by parliament through amendments to the relevant laws.

More than MVR 200 million (US$12.9 million) was estimated as GST receipts from telecom services in 2013.

The Finance Ministry also revealed that the ‘total external public and public guaranteed debt’ was estimated to reach MVR 13.7 billion (US$888 million) in 2012.

Of the MVR 4.1 billion (US$330 million) of the loan assistance spent in 2012, more than 50 percent was from multilateral financial institutions and 28 percent from bilateral donors.

A total of MVR 1.9 billion (US$123 million) from loan assistance has been spent for various projects in 2012 while the rest was spent for budget support.

As of September 2012, MVR 561 million (US$36.4 million) has been received as budget support – US$16 million from the Asian Development Bank and US$20 million from a standby credit facility extended by the Indian government.

Moreover, the government spent more than MVR 1 billion (US$64.8 million) in 2011 and MVR 1.1 billion (US$71.3 million) in 2012 to service foreign debts as interest and repayments.

The figure was expected to remain the same in 2013.

In addition, the government spent MVR 660.5 million (US$42.8 million) in 2011 and MVR 2 billion (US$129.7 million) in 2012 to service domestic debts.

The figure for domestic debt was expected to decline to MVR 1.1 billion (US$71.3 million) in 2013 as payment for US$ 100 million of government bonds sold to the State Bank of India in Male’ – amounting to MVR 771 million (US$50 million) as repayment for a second tranche – has been pushed back to 2014.

Similarly, repayment of three ways and means treasury bonds to the Maldives Monetary Authority (MMA) or central bank amounting to MVR 951 million (US$61.6 million) has also been pushed back.

Government spending on loan repayment and interest payments was expected to reach MVR 3.1 billion (US$201 million) in 2012.

Including an estimated MVR 13 billion (US$843 million) in domestic debt, the total public debt is expected to reach MVR 27 billion (US$1.7 billion) in 2012 and MVR 31 billion (US$2 billion) in 2013 – 82 percent of GDP.

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Police disclose details of raid on local drug network seizing nine kilograms of drugs

Police have discovered more than MVR 1 million during an operation to thwart a local drug network.

Police today held a press conference and disclosed details of a special operation conducted to disrupt the operation.

Drug Enforcement Department (DED) Deputy Head Sub-Inspector Fareed Ismail said that police and customs officials had followed the crew of ‘MSV Silver Cloud 49’ since it arrived to the Maldives.

The drugs were unloaded from the boat yesterday morning to deliver to six Maldivians waiting for them at Boduthakurufaanu Magu, police said. Police said the drugs included hashish oil and heroin.

Fareed told the press that five Maldivians and six expats were arrested in the raid.

According to police, one of the suspects was arrested on allegations that he was the ringleader responsible for trafficking illegal drugs into the Maldives.

Police said the man was arrested while he was inside a room ot Kunnumalaage in Maafannu ward.

When police officers searched Kunnumalaage they discovered more than MVR 1 million, US$11,318, EUR 39,725 and currencies of 11 other nations, police said.

Police searched other houses in connection with the case including Coconut House in Mahchangolhi Ward and Moonlight View in Galolhu Ward.

According to police, officers discovered a further MVR 134,050, US$2200 and tools used to pack drugs in Coconut House.

The police have also released the video footage of the operation.

Yesterday Deputy Police Commissioner Hussain Waheed tweeted that the street value of the drugs discovered during the operation would reach over MVR 10 million (US$648,000).

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Comment: And the killer is…

This article first appeared on DhivehiSitee. Republished with permission.

The government knows who killed MP Afrasheem Ali.

The Minister of Home Affairs Mohamed Jameel Ahmed has appeared in the media twice in the last week to repeat the claim. Both times he stopped short of sharing the knowledge with the public.

The first time was on 24 November, when Haveeru reported Jameel as saying “MP Afrasheem’s murderer has been found”. The only thing he shared with reporters, however, was his incredulity that the murder had been premeditated in great detail. He observed gravely:

This is a matter of serious concern.

In another Haveeru piece, on the same subject the same day, Jameel also implied that the murder involved  politicians with money and violent gangs of disaffected youth, all with the potential to be hired hit men. Again, he chose not to reveal who was involved in the suggested assassination.

Although Jameel said the killer has been found but, according to Police Commissioner Abdulla Riyaz, the investigation is ongoing. He was on-message with Jameel, though, when it came to government policy for sharing information with the public:

…details will be revealed as soon as it is time to reveal them.

From the very beginning, the murder of MP Afrasheem has been more than about the murder of MP Afrasheem. Within hours, he was being eulogised as ‘one of the greatest scholars we have ever seen’. His funeral was a State sponsored spectacle, aired live on ‘TVM’. Afrasheem’s family was invited to the Majlis so he could be honoured and his beneficiaries financially compensated.

When investigations began, the FBI was reported to be helping. Until now, however, the only visible sign of FBI’s involvement has been a typical ‘information leading to the arrest’ reward worth MVR50,000.

This is not to say the FBI has not been of any use to the government. President Waheed is holding up FBI involvement as the reason people should believe in the impartiality of the investigation.

“When agencies like these are involved, you can be sure it’s all very professional,” he said recently. Good for Waheed that not many Maldivian government supporters have heard of General Petraeus, or of the FBI  and the Patriot Act.

With or without FBI help, the police took into custody six people in connection with the murder. Several were MDP activists. None of them have been charged, but their detention period continues to be extended every 15 days. Only one person arrested after the murder, Mariyam Naifa, was released. The police never gave a reason for her arrest, and imposed extra-legal conditions on several personal liberties before freeing her.

Then followed a period of almost complete silence about the murder. It was ‘broken’ in late October, with this  news briefing which revealed:

…200 items are being investigated in the forensic lab and more than 300 hours of CCTV footage have been collected as evidence.

Apart from this, the only things police could confirm with certainty were that Afrasheem had been murdered, and that the body was really Afrasheem’s.

The police also used the news conference to announce a change of approach to their investigations. Whereas previous cases had emphasised speed—as in lawyer Najeeb’s case—now the emphasis would be on caution. This was an emphatic sign that police were going to take their own sweet time telling the public what happened.

Then, on 11 November, former President Mohamed Nasheed very publicly criticised the investigation. MDP followed Nasheed’s speech with a request for a parliamentary review of the investigation. It was as if a sleeping dog had been kicked in the balls. Jameel quickly deviated from the official line of ‘this can take forever’ to declare ‘the killer has been found.’

This also when his press conferences began to sound like a promotional gig for a Hitchcock movie. He has since appeared several times to tell the public he knew, but was not telling, who killed Afrasheem.

This morning, Haveeru  ran a new update of the non-story. Jameel is very ‘disconcerted’ by former President Nasheed’s remarks that he thinks police are biding their time in order to pin the murder on an MDP member. Nasheed also said he suspects that ‘the right time’ will be as close to the by-election on 1 December to elect Afrasheem’s replacement as possible.

Jameel dismisses Nasheed’s accusations as dangerous impediments to justice. Here is in the words of Haveeru, what Jameel said next:

Jameel further added that the people of Ungoofaaru must secure Afrasheem’s seat in Parliament to a member of his party and described it as a duty of the Ungoofaaru constituency people.

Did he really say that it was ‘the duty’ of the people of Afrasheem’s constituency, his home island, to make sure PPM retained its seat? Straight after dismissing Nasheed’s allegations that he is attempting to influence the election?

As always, Haveeru lent support to the government line with an opinion piece asking people to see MDP’s accusation of bias in the investigation in the same light as their accusations of bias against CoNI. That is to say ‘baseless’.

This is part of the government’s plan all along to pre-empt any criticism of the results when they are finally rolled out. Waheed had begun preparing for just such an eventuality by referring to the FBI presence as ‘proof of integrity’. Any criticism of the investigation from now on could and would be labelled as ‘the unreasonableness of MDP.’

Whatever about the motive of Afrasheem’s killer, it has been clear from the beginning that it is politics dictating the official response to his killing.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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HRCM calls for end to discrimination against foreign workers following murder of Bangladeshi

The murder of a Bangladeshi worker has prompted the Human Rights Commission of Maldives (HRCM) to call for an end to discrimination against foreign workers.

HRCM condemned the killing of 25-year-old Bangladeshi worker, Muneerul Islam, who was found stabbed to death on Monday (November 28).

A statement from HRCM pointed out that Maldivians fail to recognise the significant contribution foreign workers make to the economic development of the country.

HRCM further stated that all humans – regardless of country or race – have the right to human rights, and called for the authorities to bring those responsible to justice.

Muneerul Islam was found murdered in his apartment located on the sixth floor of a building on Chaandhanee Magu, Male’s main tourist strip.

Earlier this year a senior Indian diplomatic official in the Maldives expressed concern over the ongoing practice of confiscating passports of migrant workers arriving to the country from across South Asia – likening the practice to slavery.

The Maldives has come under strong criticism internationally in recent years over its record in trying to prevent people trafficking, with the country appearing on the US State Department’s Tier Two Watch List for Human Trafficking three years in a row.

In the report, the Maldives is mainly flagged as a destination country for victims of labour exploitation, particularly from Bangladesh and to a lesser extent, India, but was also noted as a destination for sex trafficking.

Police have said that the murder of the Bangladeshi national is a “serious case”, but said no arrests had been made.

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Cabinet voids US$511 million GMR contract, gives airport developer seven day ultimatum to leave

Additional reporting by Neil Merrett and Mohamed Naahii.

The Maldivian cabinet has declared the agreement with Indian infrastructure giant GMR to develop Ibrahim Nasir International Airport (INIA) void, and has given the company a seven day ultimatum to leave the country.

“The government has given a seven day notice to GMR to leave the airport. The agreement states that GMR should be given a 30 day notice but the government believes that since the contract is void, it need not be followed,” said Attorney General (AG) Azima Shukoor.

During a press conference on Tuesday evening, Shukoor stated that the government reached the decision after considering “technical, financial and economic” issues surrounding the agreement.

The attorney general claimed the government had obtained legal advice from “lawyers in both the UK and Singapore as well as prominent local lawyers – all who are in favour of the government’s legal grounds to terminate the contract.”

“We also got advice from both local and international lawyers in the Maldives Airports Company Limited (MACL),” she added.

Shukoor said the government had two legal grounds to terminate the contract: one in which the government believed the contract was ‘void ab initio’ – meaning to be treated as invalid from the outset; and the second being ‘frustration’, an English contract law doctrine which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party’s principal purpose for entering into the contract.

“The contract is governed by the English contract law. The government believes that the agreement is void ab initio meaning the contract was void from the beginning or the contract is frustrated,” she said.

She added the termination of the agreement was a “purely legal decision” and did not have any connection with the recent series of anti-GMR protests headed by the religious Adhaalath Party (AP).

The decision was, Shukoor insisted, made “professionally” and after “thorough research”.

Shukoor also claimed the government was going to initiate the arbitration process in Singaporean Courts and had already informed its decision to both GMR and MACL.

Asked how the government planned fund the estimated US$700 million in compensation for terminating the contract, Shukoor declined to speak of the sum of money but expressed “full confidence” in winning a court battle.

“We were advised by very professional lawyers including Queen’s Counsels (QC). We have full confidence in winning the case,” she said.

“We do not intend to share all our legal arguments in this press conference. Please do respect that decision,” she added.

“Completely irrational”: GMR

GMR has slammed cabinet’s decision as “unilateral and completely irrational”.

“This unlawful and premature notice on the pretext that the concession agreement is ‘void’ is completely devoid of any locus standi and is therefore being challenged by the company before the competent forums. The company disputes that the concession agreement is ‘void’,” GMR said in a statement.

“The company would further like to state that it has taken all measures to continue operations at the Ibrahim Nasir International Airport thereby ensuring that this vital gateway to Maldives is kept open.

“We would also like to inform all that this action by the government of the Maldives is in complete disregard of and has been done during the pendency of arbitration proceedings in the designated tribunal in Singapore. We are therefore taking all measures to ensure the safety of our employees and safeguard our assets. We are confident that the stand of the company will be vindicated in every way.”

Speaking to Minivan News, GMR Executive Vice President & Group Head of Corporate Communications, Arun Bhaghat, said the only reason for the decision as stated in the government’s letter was that the airport development charge had been ruled unleviable by the Civil Court, and therefore the entire contract was void.

In late 2011 the then-opposition Dhivehi Qaumee Party (DQP) filed a successful Civil Court case blocking GMR from charging an Airport Development Charge (ADC) – a US$25 charge for outgoing passengers stipulated in the concession agreement – on the grounds that it was a tax not authorised by parliament.

Nasheed’s administration chose to honour the original contract, and instructed GMR to deduct the ADC revenues from the concession fees due the government, while it sought to appeal the Civil Court ruling.

However, the Nasheed government fell a month later and the opposition inherited the result of its court victory, receiving a succession of bills from the airport developer throughout 2012, despite the government’s insistence that the January 5 letter from MACL outlining the arrangement was no longer valid.

In the first quarter of 2012 the government received US$525,355 of an expected US$8.7 million, after the deduction of the ADC. That was followed by a US$1.5 million bill for the second quarter, after the ADC payable eclipsed the revenue due the government.

Combined with the third quarter payment due, the government now owes the airport developer US$3.7 million.

“The net result of this is that the Maldivian government now has to pay GMR for running the airport. On this basis it is likely that the Maldivian government will end up paying about MVR 8 billion (US$519 million) to GMR for the duration of the contract,” wrote Dr Hassan Saeed, DQP Leader and President Mohamed Waheed’s Special Advisor, in a recent appeal to Indian Prime Minister Manmohan Singh calling on him to cancel the Maldives’ agreement with GMR and warning the Indian PM of “rising extremism” as a result of the GMR deal and anti-Indian sentiment.

GMR attempted to compromise by offering to exempt Maldivian nationals from the ADC, with GMR Chairman G M Rao personally mailing Waheed with the offer, but claimed to have received no response from the government.

“This is by far the single largest foreign investment in the Maldives at US$511 million – in today’s figures, 40-50 percent of the Maldives’ GDP,” observed Bhaghat, adding that the company was supremely confident of defending its legal position.

“We have no plans to go. We have 23 more years here,” he said, vowing that the cabinet’s decision would have “no effect” on the operation of the airport.

“The defence force in this wonderful country is well geared to ensure smooth operation of the airport,” Bhaghat told Minivan News.

India backs GMR: “All necessary measures”

The government of India “proposes to monitor the situation in Maldives closely and is prepared to take all necessary measures to ensure the safety and security of its interests and its nationals in the Maldives,” India’s Ministry of External Affairs has meanwhile said in a statement.

“We have noted the decision by the Government of Maldives to terminate the agreement with the GMR Group to manage the Male International Airport. It would be recalled that the consortium consisting of GMR and MAHB (Malaysian Airport Authority) had been awarded the contract to manage the Male’ International Airport concession through a global tender conducted by the International Finance Corporation (IFC), Washington, a member of the World Bank.

“As the Advisor to the Government of Maldives, the IFC has stated that it has complied with Maldivian laws and regulations and followed international best practices at each step of the bidding process to ensure the highest degree of competitiveness, transparency and credibility of the process,” the statement read.

“The investment by GMR represents the single largest foreign direct investment in the history of Maldives. The decision to terminate the contract with GMR without due consultation with the company or efforts at arbitration provided for under the agreement sends a very negative signal to foreign investors and the international community. The Government of India would continue to remain engaged with the Government of Maldives on this issue, and would expect that the Government of Maldives would fulfil all legal processes and requirements in accordance with the relevant contracts and agreement it has concluded with GMR in this regard.”

“Destabilising the country”: MDP

The Maldivian Democratic Party (MDP) has meanwhile accused cabinet of destabilising the country by attacking foreign investment and supporting “extremist” rhetoric.

“This decision is bad for tourism, bad for the economy and bad for the Maldivian people,” said former President Mohamed Nasheed.

“Waheed’s government has cynically used xenophobia, nationalism and religious extremism to attack GMR, the country’s largest foreign investor. This will put off potential investors for decades. Waheed is leading the Maldives down the path to economic ruin,” he stated.

MDP MP and Spokesperson Hamid Abdul Ghafoor told Minivan News that disputed contracts could be unravelled through a legal process, but said the executive’s decision to void the contract and evict the country’s single largest foreign investor was not backed by any law.

“If cabinet has now decided to revoke the contract, who is going to execute the order? The contract is bound under international law. The case is still being heard by a court of arbitration in Singapore,” Ghafoor said.

“Will police be executing this order to reclaim the airport, or will it be Islamist elements? This is an executive decision that is being taken without any legal or political backing.”

Maldives National Defence Force (MNDF) Spokesperson Colonel Abdul Raheem said the military was “not involved” in the airport issue: “We will however, continue to take care of security [at the site] and look after it,” he said.

Police Spokesperson Sub-Inspector Hassan Haneef told Minivan News that any decision to enforce the decision would have to be directed by the President’s Office.

Decision prompted by “extremists”

Ghafoor claimed that threats of direct attacks on foreign investors reflected what he was the growing role of extremist Islamic thinking within the most senior decision making of the present government.

Raising concerns over the legality of voiding the GMR contract, Ghafoor pointed to recent comments in local media by the government-aligned religious Adaalath party, whose president Sheikh Imran Abdulla was yesterday quoted as threatening to “invade the runway” should the government not renege on the airport agreement.

“The deal was done very transparently, and [the government] have never been able to prove any wrongdoing,” Ghafoor claimed. “Yet, what is most worrying is that we have the cabinet of what we believe is an illegitimate government that is being influenced by extremist influences.”

Ghafoor alleged that the government’s decision over the GMR issue was being driven by former President Maumoon Abdul Gayoom’s Progressive Party of Maldives (PPM), Adhalaath Party President Sheikh Imran and fellow party member and Minister of Islamic Affairs, Sheikh Mohamed Shaheem Ali Saeed.

“We are now seeing the government partnering with and backing the rhetoric of a movement led by an Islamist group, it is very apparent what is going on here,” he said.

MP Ghafoor further claimed that parliament had, as of this evening, received no information on the decision to renege on the GMR agreement, adding that several no-confidence motions against senior government figures including President Waheed were scheduled.

“What is going on right now is a shift in parliament,” he said.

Ghafoor also claimed that beyond the potential legal and economic ramifications of reneging on the sovereign agreement with GMR, rumours of a Chinese intermediary stepping in to cover possible financial consequences could significantly affect the Maldives internationally.

“In terms of geopolitics, we are hearing about a Chinese connection to the [airport issue] that does not put the country in a comfortable position,” Ghafoor claimed. “Ideologically and culturally we have much closer ties to India than China.”

Returning from a visit to China back in September, President Dr Mohamed Waheed Hassan told reporters that Chinese aid to the Maldives would not be limited to a US$500million (MVR7.7billion) loan finalised earlier this year.

Waheed revealed at the time that the Chinese government had pledged to make all necessary aid available to the Maldives, including assistance with road and shipping development, local media reported at the time.

Regarding China’s view on Maldivian politics, Waheed noted that the Chinese were amongst the first nations to recognise his unity government.

“The Chinese Prime Minister personally told me that he had full confidence and support for the Maldivian government,” Waheed was reported as saying.

However, the Maldives government this evening dismissed suggestions that China would be taking a role in any future airport development.

“On this matter, China is as far away from the airport development as is physically possible,” said Presidents Office Media Secretary Masood Imad.

Troubled airport agreement

The agreement with the GMR-Malaysia Airports Holdings Berhad consortium was signed on June 28, 2010 with the Nasheed administration, following a bidding process conducted by the World Bank’s International Finance Corporation (IFC).

The GMR-MAHB consortium narrowly beat Turkish-French consortium TAV Holdings-Aéroports de Paris Management (ADPM), scoring a final Net Present Value (NPV) score of 495.18 to the runner up’s 454.04 at conclusion of the bid.

GMR’s win was based on playing to the government’s highest-scoring factors – fuel share revenue and upfront payment – at the expense of non-fuel related airport revenue.

As part of its successful bid, GMR paid the government US$78 million and 1 percent of non-fuel revenue and 15 percent of fuel revenue for 2011-2014, increased to 10 percent and 27 percent respectively for 2015-2025. The developer at the time anticipated that additional services and duty free development for the country’s well-heeled clientele, as well as the Maldives’ tourism growth potential, would offset the risks of the higher fuel share.

Opposition parties at the time the agreement was signed – and are now in government following February 7’s controversial transfer of power – first opposed GMR’s development of the airport on nationalistic grounds, and then levelled numerous allegations against the company ranging from corruption to concerns that the deal would allow Israeli bombers to refuel en route to bombing Arab countries.

Further protests occurred in December 2011 after GMR ceased renewing lease agreements of several existing airport duty free operators, notably duty-free liquor store Alpha-MVKB.

The High Court upheld at the time that since GMR had given notice on March 1, 2011 and, as per the agreement, the contract had been terminated on March 31. The court concluded that MVK had no right to remain at the airport without approval from GMR, and began packing up the store’s contents on December 4. Following the eviction, MVK CEO Ibrahim Shafeeq accused GMR of breaking into his shop and stealing his stock, and then launched a ‘Go Home GMR’ protest.

As tension with the developer increased, President Waheed’s cabinet attacked the IFC as “irresponsible” and “negligent” in conducting the bidding process.

The IFC denied the accusations, stating that its advice was geared towards achieving the “objective of upgrading the airport and ensuring compliance with applicable international regulations” and providing the Maldives government “with the maximum possible revenue”.

The stand-off escalated in early August 2012 following a stop work order on the new terminal development, after the government alleged certain planning permissions had not been obtained from the Civil Aviation Authority.

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Negotiating a route into the Maldives tougher than for North Korea, record setting traveller claims

The first person to visit all 201 countries without using a plane has said he found gaining access to the Maldives far tougher than attempts to enter North Korea and Afghanistan.

Graham Hughes a 33-year-old from Liverpool, England, made it to the South Sudan capital of Juba yesterday (November 26), where he completed his journey.

Despite facing many questions on how he gained access to countries like North Korea, Iraq and Afghanistan, Hughes revealed that negotiating a route into the Maldives was far tougher, the Daily Mail reported.

Hughes used buses, taxis and trains to travel 160,000 miles across the world in 1,426 days, a voyage he claimed was budgeted at just US$100 a week.

He spent four days “crossing open ocean in a leaky boat” to reach Cape Verde, was jailed in the Congo accused of spying and was arrest trying to “sneak into” Russia.

Following the completion of his journey, Guinness has now confirmed that Hughes was the first person to have officially visited every nation on the earth without relying on an aircraft.

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Finance Ministry reveals plans to establish offshore banking

Economic authorities are planning to establish an Offshore Financial Centre (OFC) in the Maldives, Finance Minister Abdulla Jihad has revealed in local media.

The plans to establish an OFC in the Maldives were announced while the state budget was presented at the parliament.

According to Jihad, the purpose of introducing OFC facilities in the Maldives would allow for the generation of revenue outside of the tourism industry.

“Offshore financing can be successfully done in small island nations like the Maldives. Large banks around the globe have their interest in Maldives,” Jihad told Haveeru.

Jihad added that he had travelled to Mauritius to speak with officials from banks involved in offshore financing.

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State to decide on President’s ability to grant clemency to death row convicts

The state has been given the opportunity to respond over annulling the President’s ability to grant clemency to convicts on death row.

The High Court hearing gave the state the opportunity to decide over the matter of dismissing the authority given to President Mohamed Waheed Hassan Manik in accordance with the constitution.

The case submitted to the High Court states that the victim’s family has the power to pardon convicts in accordance to Islamic principles, while the death penalty can only be enforced with the unanimous consent of all heirs.

The case questioned why statements are taken from heirs if the President can ultimately decide on granting clemency to murderers, and that this could be considered as a violation of the rights given to the victim’s family.

The case states that article 268 of the constitution obliges all laws and regulations adhere to Islamic principles, while any law contradicting it will be void. It further states that under article 10 of the constitution, any law or regulation that defies the Islamic Shariah is forbidden.

Therefore, the case claims that the power afforded to the President to grant clemency is a violation of article 10 of the constitution. Furthermore, the clemency bill must not be a power afforded to the President under article 268 and that it must be annulled.

The case states that while the Maldives theoretically has a death penalty under Islamic Shariah, the last person to be judicially executed was Hakim Didi in 1953, who was executed by firing squad after being found guilty of conspiracy to murder using black magic.

State Attorney Usama Moosa said research has been conducted by the state and that the process is ongoing. Mossa added that because the case relates to capital punishment, the state had requested legal expertise from various persons.

Chair of the Judges bench Abdul Rauf said that the case is not specific to capital punishment but it relates to clemency.

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JP MP Abdulla Jabir “confident” as secret voting for no-confidence motions passed again by Committee

Jumhoree Party (JP) MP Abdulla Jabir has revealed he is “confident” that the vote on secret balloting for no-confidence motions against the President will pass in parliament.

The Kaashidhoo MP’s comments follow Parliament’s General Committee’s decision to pass the proposed amendments to establish secret voting.

The same amendment was voted on just over a week ago in parliament, but was defeated by a narrow margin of 34 to 39 votes.

The proposed amendment to Article 167 of the Standing Orders states that secret ballots should be taken at the parliament and parliament committees for removing the President, Vice President and members of independent institutions from office.

General Committee Chairman Abdullah Abdul Raheem said that the bill was passed today with four votes in favour, out of the nine MPs present at the meeting. The remaining MPs did not participate in the vote.

The amendment was filed by Maldivian Democratic Party’s (MDP) Maanfannu-dhekunu MP Ibrahim Rasheed, who stated there is an importance to establish an independent and secure environment for members of parliament during voting.

JP MP Jabir further iterated the need for protection of MPs when voting, alleging that President Mohamed Waheed Hassan Manik is “unlawfully” operating the country and that the secret vote will protect MPs from abuse.

“I am confident [the vote] will pass, especially with all the developments that have taken place since the last vote. This brutal executive of the government that Waheed is operating is a military government now, and he is why this vote is being made,” Jabir told Minivan News.

MDP International Spokesman and MP for Henveiru South Hamed Adbul Ghafoor believes that the proposed amendment will obtain the full 39 votes, alleging that “cracks” are appearing in the Dhivehi Rayyithunge Party (DRP).

“The Progressive Party of Maldives (PPM) also voted to make the ballot secret at committee stage, and the parties who were involved in the coup are now becoming unstuck, we will get out 39 votes this time,” Ghafoor claimed.

“Politically motivated attempt to disrupt parliament  ahead of the vote”: MDP

A number of MPs were arrested prior to the previous vote on secret balloting, in what opposition parties alleged was an attempt to disrupt parliament ahead of the vote.

In a police raid on the island of Hondaidhoo in Haa Dhaal Atoll, both Jabir and Ghafoor were detained along with several opposition figures including former SAARC Secretary General and Special Envoy to the former President, Ibrahim Hussain Zaki, former Press Secretary Mohamed Zuhair and his wife Mariyam Faiz, for the alleged possession of alcohol.

Police claimed to have found large amounts of “suspected” drugs and alcohol upon searching the island.

The arrests were made “based on information received by police intelligence,” police said. Sub-Inspector Hassan Haneef told Haveeru that the suspects were arrested with alcohol and “hash oil”.

Following the arrests made around midnight, the suspects were taken to Kulhudhufushi in Haa Dhaal Atoll, and Zaki was hospitalised.

Despite a police attempt to extend the detention periods, both Jabir and Ghafoor were released by the Kulhudhufushi Magistrate Court.

In an investigation into allegations of police brutality towards MPs, a delegation from the Inter-Parliamentary Union (IPU) revealed that they found it “difficult” to believe the arrested MPs were not targeted for political reasons.

Philippine Senator Francis Pangilinan from IPU’s Committee on Human Rights of Parliamentarians, said: “The circumstances of the arrest are very worrying. An impressive team of unidentified police and an army of officers allegedly carried out the arrests, reportedly without a warrant and ill-treated the MPs.

“We are well aware that the consumption of alcohol and drugs is forbidden in the Maldives, but we find it difficult to believe in light of the circumstances and timing of the arrests that the parliamentarians were not targeted for political reasons.”

Days prior to the secret voting motion, DRP MPs Mohamed Nashiz and Ali Azim were ordered to appear in court over Funaddoo Tuna Products’s failure to repay loans worth MVR 117 million (US$7.5 million) to the Bank of Maldives.

Allegations made by DRP MP Ali Azim claim that the president and other senior members of the executive had approached him, offering to cancel the court summons if he agreed to vote for the secret balloting in a way they preferred.

Azim alleged that in addition to Waheed, his Political Advisor Ahmed Thaufeeq and Spokesperson Abbas Adil Riza had called him and made similar statements.

The court order was later cancelled, on the grounds that the judge presiding over the case was out of the country.

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