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State cannot afford subsidies for fishermen: Finance Minister Inaz

Finance Minister Ahmed Inaz told parliament today that the state would have to reduce other subsidies to issue Rf100 million (US$6.4 million) as oil subsidies for fishermen.

Responding to a query during Minister’s Question time at the first sitting of this year’s final session of parliament, Inaz explained that parliament had approved reducing amounts from other budget items to free up funds to subsidize oil for fishermen.

“It would have been easier if parliament had decided to reduce from a particular item,” he said, noting that potential items included subsidies for water, oil and foodstuffs as well as state benefits for persons with special needs.

“If we cut any of the [budget] items, we would be cutting basic needs,” he said. “The Majlis has not asked the government to cut any particular item so the government cannot cut any item and hasn’t been able to find a fair way to issue subsidies for fishermen.”

Inaz noted that there were other government policies geared towards assisting fishermen and developing the industry.

The Finance Minister added that the 2011 budget was structurally in deficit and oil subsidies could be issued after new tax revenue is collected.

The oil subsidy was added to the budget by parliament when it approved the 2011 state budget in December last year.

During today’s debate on a binding resolution proposed by MP Riyaz Rasheed to compel the government to issue the fishermen’s subsidy, opposition MPs insisted that delays to releasing the funds were “unacceptable” while the government was continuing its “wasteful and useless expenditures.”

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DRP condemns Gayoom’s remarks on losing ground to MDP

Dhivehi Rayyithunge Party (DRP) has condemned its erstwhile ‘Honorary Leader’ and former President Maumoon Abdul Gayoom for saying the ruling Maldivian Democratic Party (MDP) outpaced the main opposition party while it was “in a slumber.”

Speaking at a rally in Thaa Atoll Guraidhoo on Saturday, Gayoom reportedly said that the MDP became both the largest political party and the majority party in parliament after the new DRP leadership took over.

In a statement put out yesterday, the DRP said Gayoom’s remarks concerning the party were misleading and “contained serious lies.”

Among the alleged falsehoods, the statement noted that the MDP came to power in 2008 after defeating Gayoom, who was DRP’s presidential candidate and ‘Zaeem’ at the time.

“One of the main reasons for DRP having to face one of its biggest defeats and MDP coming to power and causing despair for most citizens was the fact that the whole presidential campaign was run by Gayoom’s eldest son Farish Maumoon as a family matter,” it reads.

It adds that while the DRP under the leadership of Ahmed Thasmeen Ali emerged successful in the past two elections, “we note with regret that the party was unable to win a single election under President Maumoon’s leadership when it was in the government.”

On the loss of MPs in parliament, the statement noted that former President Gayoom lost majority control in the past despite the presence of eight appointed MPs after brother Abdulla Yameen left the DRP with a number of MPs.

Moreover, the statement continues, it was “questionable today” whether the Z-faction’s public criticism of the DRP leadership and “pointing accusatory fingers at the DRP, the party’s leadership, MPs, councillors, senior members sweating to enliven the party in the islands and the party’s common members” was in the service of “the nation and religion.”

The statement concludes by saying that since infighting among the opposition would benefit the ruling party, “it has become clear to the public today that such actions shows the lack of truthfulness and sincerity of the people around President Maumoon.”

Gayoom meanwhile returned to Male’ today after visiting islands in Laamu and Thaa atolls to promote the incipient Progressive Party of Maldives (PPM) and recruit new members.

The former DRP Zaeem was quoted in local media as saying that the DRP lost ground to the ruling party because of “lack of effort and attention” by the new leadership.

“We cannot achieve anything in the political arena in such a state,” Gayoom said. “That is why we are forming this party. We are forming PPM for a noble purpose.”

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Internet expands opportunities for Maldivian artists

Opportunities for Maldivian artists have been expanded by the Maldivian Artists Directory, an internet platform for artists to share, showcase and market their talents and interests. The directory was developed by the Ministry of Tourism, Arts and Culture with the support of the United Nations Development Project (UNDP) Male office and the National Centre for the Arts (NCA).

Artists who meet directory criteria may register on-line with a resume and contact information. Criteria vary by artistic category, and may include publication to an internet forum and community involvement. Artistic categories are performing, music, literary, visual and traditional.

“We believe the Directory will also provide opportunities for artists to better market themselves and their products as well as seek interested audiences and those wishing to commission artworks or invest in arts projects,” the ministry said in a press release.

The ministry intends for the directory to “help in defining a distinct Maldivian identity as manifest in the arts practices and traditions of the Maldives, both old and contemporary,” while making these cultural aspects more accessible to tourists.

The Ministry of Tourism, Arts and Culture recently joined International Federation of Arts Councils and Culture Agencies (IFACC), a network connection arts councils and ministries worldwide.

In June this year, the Arts Development Fund was set up by the Ministry of Finance and Treasury. Criteria to award funding and other support was also set up, and the ministry will be helping local artists organize fund raisers.

Plans for an arts council are underway, however the ministry has delayed submitting the act stipulating these plans to Parliament “because of the present climate which we foresee as more conducive later in the year.”

The ministry has asked President Mohamed Nasheed to appoint a council with the minister’s advice. Of the appointments, however, those for theatre and drama, film making, literature, visual arts, music and crafts will be appointed independently.

Applications for the directory are available on-line.

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Maldives a tourism leader in Asia-Pacific region

The Maldives was among the most popular destinations in the Asia/Pacific (APAC) region for the month of July, with a 27 percent increase in visitors.

Hong Kong followed closely with a 22 percent increase in visitors.

“Even during times of economic uncertainty, the Asia/Pacific region continues to perform strongly, reinforcing its image and position as a powerhouse of international travel and tourism,” said Pacific Asia Travel Association (PATA) Strategic Intelligence Centre director, John Koldowski.

Asia Pacific (APAC) tourism destinations continue to see an upward trend in visitors annually. July 2011 saw a seven percent regional rise in arrivals compared to the same month in 2010.

Although Japan suffered a 36 percent drop in July arrivals, allegedly due to the earthquake and tsunami, Northeast Asia on the whole saw a six percent gain on July 2010. The Pacific, meanwhile, experienced a 3 percent drop in foreign arrivals in July 2011.

A Care Ratings Maldives report recently stated that Maldives tourism has made an impressive comeback since the 2009 global recession, and investment from China and India is expected to surpass precedents in coming years.

This year, the Maldives reached 700,000 arrivals by September. According to Tourism Ministry statistics, 19.9 percent of these arrivals were Chinese.

The increased activity within the APAC region could have a cultural impact at home. “Maldivian staff are more familiar with Western culture,” said Maldives Association of Travel Agents and Tour Operators (MATATO), Mohamed Maleeh Jamal. “Many speak Italian, French, German. So, the shift required to cater to more Asian guests and customers has lead many Maldivians working in the industry to familiarize themselves with Chinese, Japanese and Korean languages and cultural practices.”

Jamal pointed to the 2004 tsunami as the turning point for the Maldives’ tourism market.

“Before then, tourism was dominated by western European countries, and travel companies in China and the Middle East had limited access. Resorts were reaching occupancy levels regularly, and so expansion was not necessary,” said Jamal.

After the tsunami, however, interest from western Europe declined and the tourism sector was forced to work more closely with neighboring countries and their travel agencies. “The Maldives was also receiving complaints that the market wasn’t diverse enough,” said Jamal.

Jamal added that China is an important trading partner for the Maldives, and there was room to expand the business relationship.

But the Maldives has several advantages in the Chinese market. “All countries want to get tourists from China, and the Maldives has an advantage,” said Jamal. “It carries an image of paradise islands and tropical vacations, which is very appealing. In addition, the Maldives is becoming a celebrity hot spot. Given the celebrity worshiping culture that is increasingly common in China, the Maldives is very appealing.”

Jamal commented that Sri Lanka is trying hard to compete with the Maldives’ market.

Tourism is the largest contributor to Maldives’ GDP and foreign currency, accounting for 70 percent of the national GDP indirectly. Maldives Marketing and Public Relations Corporation (MMPRC) aims to draw 1 million tourists to the Maldives by the end of 2012.

PATA international visitor arrival figures suggest that improved economic stability is bolstering APAC’s tourism trend.

According to Care Ratings, Foreign Tourist Arrivals (FTA) surged this year as China’s economy flourished and European economies made a slow comeback. Chinese tourists are projected to account for 15 percent of Maldives FTA by 2020.

But PATA studies note that the source market is shifting into northern Europe and Asia.

Koldowski pointed to a 50 percent increase in Russian arrivals so far this year, and a 14 percent jump in South Asian arrivals in July with 90,000 more visitors than the same month in 2010.

Southeast Asian arrivals to the region grew by 12 percent during the same time frame.

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High Court warns of in absentia verdict after MPs fail to show

The High Court yesterday warned that it would issue a verdict in absentia in the appeal of a Civil Court order for Mahadhoo Investments to repay a Rf600 million (US$39 million) loan to Bank of Maldives if representatives of the company fail to appear for the next hearing.

Newspaper Haveeru reported that according to presiding Judge Abdulla Hameed, the last hearing on Thursday was cancelled at the company’s request and rescheduled for yesterday.

The company and its guarantors – Alifushi MP Mohamed Nashiz, brother of Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali, DRP MP for Mid-Henveiru Ali Azim and Ahmed Rasheed of Maafannu Rafeeguge – had appealed a Civil Court verdict ordering the company to repay the loan.

The High Court judge reportedly said yesterday that he did not wish to dismiss the case as the court had neared a verdict. If the case is rejected without a verdict, the company could file it again.

BML lawyer Mazlan Rasheed argued that the bank would face more difficulties in getting the loan payment if the court dismissed the case.

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Painting of MDP parliamentary group sold for Rf400,000

A painting of the Maldivian Democratic Party (MDP) parliamentary group featuring President Mohamed Nasheed at the Craft and Arts Exhibition that opened Saturday has been sold for Rf400,000 (US$25,940).

The painting from Dharumavantha School arts teacher Hemanth Kumar was purchased less than 24 hours after the exhibition began by a member of the public named Mohamed Fazlan.

Hemanth, an Indian national who has been working at the public boys school for seven years, told local daily Haveeru that the suggestion for the painting came from Nolhivaram MP ‘Colonel’ Mohamed Nasheed. “But the concept for the painting was mine,” he said.

Half of the proceeds from the sale would be donated to the school, he added.

The exhibition was organised jointly by the Education Ministry and the Education Development Centre on the occasion of this year’s Teacher’s Day with 19 schools participating.

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Parking garages to relieve Male’ congestion

Four parking buildings for motorcycles and cars are to be built on Male to relieve congestion, said Galolhu-South councillor Ibrahim Shujau. Work is said to begin soon.

The council allegedly discussed erecting one parking garage at the now-vacant parking lot Maafannu Laamige, west of Theemuge, reports Haveeru.

The locations of the other three buildings require the National Planning Council’s permission.

Shujau told local media that the council plans to charge a parking fee for both cars and motorcycles. He added that the parking garages would make streets more comfortable for pedestrians and drivers.

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MNDF deserters sacked

The Maldives National Defence Force (MNDF) has sacked the 13 servicemen who deserted their posts last week, releasing them without honors.

MNDF has said the servicemen violated their legal agreement with the state, under which the servicemen trained and educated, reports Haveeru.

According to Article 32(b) of the Armed Forces Act, a serviceman is deemed absent without leave when he fails to report for work for 14 days without permission, or objects to report for work as requested by a superior during an emergency.

Officials have said court cases will be filed against some of the servicemen, Haveeru reports.

MNDF identified the sacked deserters as Corporal Ibrahim Azum, Staff Sergeant Hassaan Hameed, Lieutenant Kashif Hilmy, Private Rilwan Rasheed, Corporal Mohamed Imad, Lance Corporal Mohamed Abdu Rahman, Private Abdulla Shahfath, Private Mazin Mohamed, Private Mohamed Hameed, Private Shaamee Saeed, Lance Corporal Abdul Hameed, Private Mohamed Abdul Kareem and Sergeant Ali Ashraf.

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MMC members received almost Rf 1 million in illegal “living allowances”, finds Auditor General

Members of the Maldives Media Council (MMC) have been illegally receiving a living allowance of Rf 7500 (US$500) in addition to their monthly salaries, according to an audit report for the year prepared by the Auditor General’s office.

The Auditor General’s report noted that the article 19[a] of MMC Act states that salaries of Council’s Chair, Vice Chair and members shall be determined by the parliament, and that the salary for the council member determined by the parliament on January 2011 was Rf 8000 (US$533) for the Chair of the Council, Rf 6500 (US$433) for the Vice Chair, and Rf 5000 (US$333) for each council member.

The report observed that council members started receiving the allowance on January 20, 2011, after the Chair of the Council sent a signed memo to the council’s corporate affairs unit.

The Auditor General at the time was aware of the matter and forwarded the case to the Anti-Corruption Commission (ACC) and on February 17, 2011, the ACC sent a letter to the council asking it to stop claiming the allowance until the ACC concluded the case.

‘’On February 20, the council members held their 7th meeting of the year and in the meeting all members voted that there was no reason why the council should follow instructions as in the letter sent by the ACC,’’ the audit report noted.

On April 20 council members decided not to receive the allowance, after they were asked by ACC to discontinue a second time. The MMC then sent letters to council members asking them to return the amounts they had received as living allowances – by now a total of almost a million rufiya, in addition to their salaries.

According to the Auditor General’s report, the council members did not receive the living allowance for six months from May to August. However a lump sum for six months worth of the living allowance sum was included in council members’ salaries for August – a total of Rf 45,000 (US$2900) for each council member.

The report also stated that by the end of August the council had spent a total Rf9 00000 (US$60,000) on paying members living allowances.

The Auditor General’s report stated that the living allowance was an illegal expense, despite parliament approving the MMC’s budget including the allowance, and noted that the MMC had behaved inappropriately for an institution that was required by nature to have the trust and confidence of the public.

Chair of the MMC Mohamed Nazeef told Minivan News that the issue “had been solved”, and that “some” of the council members had now returned the money they received as living allowances.

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