Police dogs to be used at airport and seaports

Police are planning to conduct operations to combat drug smuggling using its new dog squad at the country’s airports and seaports.

The Maldives Police Service signed Memorandums of Understanding with the ports authority, airports company, immigration department, and the customs authority yesterday to use the sniffer dogs to locate drugs.

The MoUs outline mechanisms for relaying information, conducting joint operations, and sharing resources, according to police.

In an exclusive interview with Minivan News last year, home minister Umar Naseer said tackling the country’s entrenched drug problem was his main priority and vowed to “seal” the gateways to the Maldives.

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Malé port to operate around the clock from midnight tonight

Maldives Ports Ltd (MPL) will provide services 24hrs a day from this evening onward in order to increase efficiency, local media has reported.

“MPL’s aim is to give the fastest service to the public from the closest locations. Almost all of the ports around the globe are currently working for 24 hours. This change is also an attempt to fit into that trend”, Head of Corporation Services, Ibrahim Afzal told local media.

MPL is now recruiting for additional staff to cover the extra duties as the facility in the capital, Malé, will no longer close between 11pm and 7:30am reported Haveeru.

General Manager of the Cargo Department of MPL Mohammed Hashim noted that outside pickup services should also adapt to this new shift pattern, suggesting that the MPL may provide this service if necessary.

Malé commercial harbour handled 580 ships in 2012 carrying over 1million tonnes of freight.

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SEZ bill designed to incentivise investment, says Economic Development Minister

The special economic zone (SEZ) bill submitted to parliament last week is designed to incentivise foreign investment with special privileges and tax exemptions, Economic Development Minister Mohamed Saeed has said.

Speaking at a press conference this morning, Saeed said the current administration’s objective was introducing new industries in order to overcome the dependence on the tourism industry, which was vulnerable to external shocks and global events.

The Maldives had to “outperform competitors” by offering incentives so that investors would choose the country over business hubs such as Dubai, Oman, Qatar, Singapore or Hong Kong, Saeed said.

According to the draft SEZ legislation (Dhivehi), investors would be exempted from paying either import duties for capital goods brought in for the development, supervision, and operation of the zone or business profit and withholding taxes.

Moreover, investors in the SEZ will be exempted from paying goods and services tax for a 10-year period.

Additionally, a board of investment – chaired by a minister – established by the law would have the authority to lease land to foreign companies for 66 years while local companies would be able to purchase land.

Saeed said he expects the SEZ bill to become the first piece of legislation to be passed by the 18th People’s Majlis, which began its five-year term last month.

Mega-projects

The Maldives became the number one destination worldwide for “lifestyle holidays” because resorts were developed in the early 1970s as “a kind of special economic zone,” Saeed contended.

While the tourism industry was the main source of foreign currency at the moment, Saeed said the government did not believe that other industries were “alien” or unsuited to the Maldives.

Saeed suggested that the turnover from new industries set up in the SEZs could be two or three times higher than tourism.

“That is because all the large developing economies of the world are near the Maldives. For example, China and India,” he said.

Referring to the government’s ‘iHavan’ transshipment port mega-project, Saeed noted that the Maldives is strategically located astride major sea lanes in the Indian Ocean, through which cargo ships carry US$79 trillion worth of goods from East to West and vice versa annually.

Nine ships an hour travel through these channels, he added.

“Lagoons with the natural depth needed to service those ships is found in this region only in the Maldives,” he said.

While other countries would have to dredge to build ports, Saeed said the Maldives has “wave-free natural ports” that could provide services such as offshore docking facilities throughout the year.

“If turnover from tourism is US$2.5 or US$3 billion [annually], when a shipping industry with offshore docking, bunkering and bulk-breaking facilities is set up in the Maldives – one of the world’s most spacious ports – then consider the benefits. For example, consider the turnover, the GST [goods and services tax] of the turnover, [and other] taxes,” he explained.

The iHavan or Ihavandhippolhu Integrated Development Project involves a transshipment port facility, airport development, a cruise hub, yacht marina, bunkering services, a dock yard, real estate, and conventional tourism developments.

“Freeholds”

The SEZ legislation envisions nine economic zones across the country, including an industrial estate zone, export processing zone, free trade zone, enterprise zone, free port zone, single factory export processing zone, offshore banking unit zone, offshore financial services centre zone, and a high technology park zone.

President Yameen had declared in April that the SEZ bill would become “a landmark law” that would strengthen the country’s foreign investment regime.

“What we would like to confirm for the foreign investors who come to the Maldives is that foreign investors should feel that Maldives is your second home here,” Yameen said at a function in Hulhumalé.

The SEZs would be “likened to cities in Dubai or the Emirates” and “the [business] environment we have in Singapore.”

The new law would enable investors to have “freeholds” in the country and allow investors “to engage in really, really long gestative projects,” Yameen said.

“We are embarking on an era of growth,” he said.

Moreover, addressing participants of the Maldives Investor Forum in April, Yameen had said his administration was “cognisant of the needs of our investors and the requirements to strengthen and redefine the legal and regulatory environment governing foreign investments.”

“To address investment climate and to facilitate mega investments with attractive incentive packages, a Special Economic Zone Bill will be tabled in the parliament soon. Additionally, the Foreign Investment Act and Companies Act are being revised to cater the ever increasing needs of the modern foreign investors,” he said.

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Government submits bill on special economic zones

A bill on establishing special economic zones (SEZ) to attract foreign investment has been submitted to parliament on behalf of the government by Progressive Party of Maldives (PPM) MP Ahmed Nihan.

The SEZ bill becomes the first piece of legislation to be proposed by President Abdulla Yameen’s administration to the 18th People’s Majlis, the newly-elected PPM parliamentary group leader tweeted on Thursday (June 5).

Speaking to reporters prior to departing to China on Wednesday night (June 4) to attend the Kunming Trade Fair, Economic Minister Mohamed Saeed explained that special economic zones would be established in the north, south and other “strategic locations.”

The SEZ bill is intended to expand the economy and could “bring an end to the dependence on tourism,” he said.

In addition to ports and light industries, Saeed said financial services and bunkering facilities would be made available at the zones.

“So the result of this would be the introduction of different industries to the Maldivian economy in addition to tourism,” he said, adding that the new enterprises could be more lucrative and beneficial than tourism.

Referring to the impact on the Maldives from the 2004 tsunami and the spread of the SARS virus, Saeed stressed the importance of diversification, as the Maldivian economy was vulnerable to external shocks due to the extreme dependence on the tourism industry.

He noted that economic development and job creation was the key focus of President Yameen’s election campaign.

The government conducted “a wide research” in drafting the bill, Saeed continued, and studied the practices of countries such as Dubai, South Korea, Mauritius, Cyprus, China, and Singapore.

The bill would “completely ensure investor protection,” he asserted.

Business-friendly laws were essential for attracting investors for mega-projects planned by the government, Saeed noted, such as the ‘iHavan’ transhipment port project.

The minister also expressed confidence that parliament would pass the bill without delay.

Vice President Dr Mohamed Jameel Ahmed meanwhile observed that the ruling party had a clear majority in parliament with a team of young MPs committed to the government’s economic agenda.

“Freeholds”

President Yameen had declared in April that the SEZ bill would become “a landmark law” that would strengthen the country’s foreign investment regime.

“What we would like to confirm for the foreign investors who come to the Maldives is that foreign investors should feel that Maldives is your second home here,” Yameen had said at a function in Hulhumale’.

The special economic zones would be “likened to cities in Dubai or the Emirates” and “the [business] environment we have in Singapore.”

The new law would enable investors to have “freeholds” in the country and allow investors “to engage in really, really long gestative projects,” Yameen said.

“We are embarking on an era of growth,” he said.

Other economic bills in the government’s legislative agenda include bills on foreign investment, insurance, consumer protection, corporate social responsibility and small claims as well as amendments to the Maldives Monetary Authority Act and the Pensions Act.

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Ports workers’ familes to receive monetary compensation from MPL

The Maldives Ports Limited (MPL) board last Thursday decided to pay MVR10,000 to the families of the workers killed in an accident on April 7, local media has reported.

In addition to the payment, the youngest child in both families will receive a monthly payment of MVR15,000 till they are eighteen years old.

Mohamed Nashid, 32, from Kudafary in Noonu atoll and Ibrahim Shareef, 36, from Malé were both killed when the crane’s wire snapped while loading a container onto the boat. The crane’s operator, Imran, fainted on seeing the incident and suffered minor injuries as a result.

Following the fatal incident the Ministry of Transport has announced an infrastructure and operations audit for of all commercial harbours in the the country.

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Authorities failed to address safety concerns before deadly crane accident, says Port Worker’s Union

Following the death of two port workers last night (April 7), the Maldives Ports Workers Union (MPWU) has said that staff had repeatedly complained that the boat and the crane involved were unsafe.

Port workers, including the winch men, had reportedly complained that the boat concerned was not safe and that the rollers (a part of the crane) had not been serviced.

Mohamed Nashid, 32, from Kudafary in Noonu atoll and Ibrahim Shareef, 36, from Malé were both killed when the crane’s wire snapped while loading a container onto the boat. The crane’s operator, Imran, fainted on seeing the incident and suffered minor injuries as a result.

Maldives Ports Limited (MPL) has said that all safety requirements had been met, and that the port adhered to international safety standards.

Head of the MPWU Ibrahim Khaleel has said, however, that “employees are in a state of fear.”

“MPL has failed to address any complaints, and furthermore blacklists any employees who complain claiming they are against the government and the management.”

“We have not yet been able to identify who should bear responsibility for the accident,” stated Khaleel, adding that the Transport Ministry must bear some responsibility as it has to do routine inspections on the vessels.

CEO of MPL Mahdi Imad said at a press conference today that all port staff are insured and trained under ILO’s port training. The ships and cranes are checked once a year, he noted, and when the containers were being unloaded all safety requirements were met.

Tragic accident

The ship, named the Morning Viship, had been travelling from Cochin, India, where it had reportedly been shored and renovated.

According to Khaleel, the container fell while a crane was loading it ontothe boat. Reports stated that a piece of the crane’s equipment cracked, causing a flying piece of metal to strike the two MPL staff below, one on the head and the other on his back.

Mohamed Nashid, father of two, was killed instantly from the impact, suffering massive head injuries. Meanwhile, Ibrahim Shareef – a father of three – died while being treated at IGMH for severe skull and back injuries.

The crane operator Imran, fainted upon seeing the accident, with authorities struggling to remove him from the controls as he remained unconscious for an hour after the incident. He suffered minor injuries, and was taken to the ADK hospital for treatment.

Additionally, MPL Cargo Department General Manager Mohamed Hashim contended that such accidents were rare at the Malé business port with just four in MPL’s history. Safety classes and training were conducted regularly for MPL staff, he added.

While Imad and Hashim insisted that safety measures were up to the International Labour Organisation (ILO) standards, newspaper Haveeru has reported an unnamed MPL staff as claiming that mandatory safety officers were not present last night when the incident occurred.

“Safety officers came to the scene of the incident after more than 30 minutes. And ILO standards state that everyone at the scene must be given counselling after such a serious incident. But nothing like that has been done either,” the anonymous employee was quoted as saying.

The MPWU also contended in a press release today that none of the previous incidents were adequately investigated and that no corrective measures were taken. The union called on authorities for full investigation and to provide compensation to victim’s families.

Hashim said the transport authority and the marine police have launched an investigation, and that MPL operations are suspended until tomorrow while Police have cordon off the business port compound for their investigation.

In an appeal to the public, the Police have appealed to people not to share the victims’ dead bodies on social media. “Such acts deepen the pain of the victim’s families and friends,” the police stated.

MPL’s Imad said that work had been suspended today for an investigation, and will restart at 7:30am tomorrow morning. He confirmed that the MPL will bear all the costs for the two men’s children until they are 18.

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Customs cease services at ports failing to meet international standards

Ports that fail to meet certified international standards will no longer have services provided by the Maldives Customs Service, local media has reported.

According to the Sun Online news service, customs authorities have said that services to Thilafushi and other regional ports deemed failing to meet the required standards have already ceased.

Before a port can commence operations it will now be required to obtain a permit, local media has said.

To be eligible for a permit the port must be registered at the Transport Authority as a private port facility and must also meet the requirements stipulated in the laws and regulations of customs.

According to local media, customs authorities have said that ports will be given the permit after they present documents showing how much of the port has been surveyed, as well as a schedule and plan for completing all pending work.

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