GST open for public discussion

Maldives Inland Revenue Authority (MIRA) has made its upcoming Goods and Services Tax (GST) regulation available for public opinion.

The regulation goes into effect on October 2. It will open for public opinion on the MIRA website until Wednesday evening, Haveeru reports.

The regulation was made according to suggestions from the business community, and includes procedures on levying the goods and services tax.

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Findings in Huraa drowning investigation revealed to families

The Education Ministry has shared the results of its investigation into the drowning accident in Kaafu atoll Huraa with families of the deceased. The accident left four students and a principal of Hiriya School dead earlier this month.

Details of the investigation have not been released to the public.

The Ministry did issue a statement recommending schools amend their budgets to accommodate a program which would establish safety measures, implement precautionary measures at campsites jointly with relevant authorities, and familiarise management officials and employees with these measures by the end of the year, Haveeru reports.

Police are continuing their investigation of the incident. Sub-Inspector Ahmed Shiyam said investigators are taking care to respect families and friends involved.

“The police are doing a very detailed investigation, and we are respecting the victims’ families, students, teachers and classmates. We have to give them time to recover, so we are not forcing them to participate more than they are willing to at this time,” said Shiyam.

Shiyam said evidence from the site of the incident and nearby Huraa island has been gathered and is being processed. He said the investigation will be done as soon as possible.

Minister Shifa Mohamed, School Board Chairperson, Deputy Education Minister Dr Abdulla Nazeer and Dr Abdul Muhsin Mohamed, who chaired the committee tasked to investigate the accident, also met with the families of the deceased, reports Haveeru. Education Minister Abdullah Nazeer assured the families that the recommended measures would be implemented.

The Education Ministry had not responded to inquiries at time of press.

Nashath Saeed of Meenaz/Gaaf Alif atoll Dhehvadhoo, Mariyam Naaz of Suvaasaage/Haa Alif atoll Hoarafushi, Aishath Shaaniha of Handhuvary Villa/Raa atoll Rasmaadhoo and Mariyam Shaiha of Maafannu Moisha and Principal Ali Nazim drowned during a Fisheries Science field trip to the campsite in Huraa.

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Inflation in Male’ reaches nearly 10 percent: NPD

Inflation reached nearly 9.94 percent in Male’ in August compared to the same period last year, according to statistics from the National Planning Department, driven largely by increases in the price of fish.

According to the Consumer Price Index (CPI) figures, the price of fish rose 47 percent, followed by tobacco and betel (25 percent). Food prices rose 17 percent overall.

Skipjack tuna prices declined sharply in August, but other tunas, smoked fish and reef fish prices increased by more than 90 percent since July 2011. Local chili prices increased by 60 percent.

The change in the price of fish was the main factor behind the rise in inflation over the past year, CPI statistics show.

Recreation, culture, and housing equipment had a reverse effect on inflation annually with an average decrease of 0.37 percent.

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Q&A: UN Ambassador Abdul Ghafoor Mohamed

Abdul Ghafoor Mohamed is the Maldives Ambassador to the UN and was defacto non-resident Ambassador to the US, prior to the recent appointment of Ahmed Sareer to the position. He speaks to Minivan News about the Maldives-US relationship, climate politics and the challenges facing the country with the introduction of new interpretations of religion.

JJ Robinson: Why do you think countries such as the US and UK are interested in the Maldives considering it is such a small and remote nation?

Abdul Ghafoor Mohamed: Right now small states make up a substantial part of the international community and they have a loud voice. They not willing to sit back and take what comes, they are making their presence known and making waves, trying to assert their rights as they become more confident.

As they become more experienced in international affairs, they are becoming a much bigger presence than before. Sometimes small states are also able to act in ways larger, more powerful states are unable – other countries are much more wary of positions taken by larger states.

Small states have the opportunity to speak more openly and frankly on issues in an objective manner. I think when our views are consistent, eventually the international community does recognise that here is a country that does its homework and tries to be responsible within the resource constraints it has.

In particular the Maldives has undergone tremendous changes in the last few years; changes that present a symbol of hope for many other countries. The Maldives is a small island Muslim country, with relations with the Commonwealth and a wide range of membership which helps it have access to a large pool of friends, and the views of countries. It is also a founding member of SAARC, and although the Maldives and Bhutan are the smallest SAARC states, both played an important role in shaping its direction, especially this year as we take up the chairmanship.

Here’s a country that has had no political parties in its entire history. It went from an autocratic monarchy to an autocratic presidency. Although we moved from a sultanate, it was in some ways a change in name rather than a change in psyche, for the people and those in government.

Consequently it was a very difficult change to multiparty democracy, with new novel concepts such as independent institutions, and a President more constrained than the heads of governments we are used to having.

Yet despite the turmoil, I think the Maldives has showed that through dialogue and robust engagement, you can change a government through the ballot box. It is a credit to both the former President and the serving President that they were able to manage the transition so smoothly, given the potential for disruption.

JJ: Do you hold to the view that the Maldives is in some ways two years ahead of the current turmoil in the Middle East, and could perhaps set an example for some of these countries?

AGM: Yes and no. Yes in the sense that there are certain similarities: it was the ordinary people, and not just the poor and uncared for. It was the educated middle class and youth who took the lead in bringing the changes to the Maldives. And they demanded their rights on the streets.

But the Middle East is large and the countries complex, and a lot more people have vested interests in what happens there. We should note the success of the Maldives, in part because of the support and encouragement the international community gave to it. I’m not saying they interfered, but they certainly encouraged a democratic transition. They were engaged with both the government and the opposition, and keen to ensure the unrest did not become too costly, as a country that is dependent so much on tourism – peace and stability are important to the Maldives.

There are certainly things that can be learned from the Maldives’ experience. One of the things is the fast pace at which we moved, which made it very difficult to complete the institutions in time. Most people need time to adjust to the new thinking and new concepts.

In the Maldives we are lucky to have a homogenous religion and race, whereas in many Middle Eastern countries you have tribes and different religious and racial backgrounds. For them to come together to make sure a new political framework protects all the interests of this people may by more challenging than in the Maldives.

JJ: Since the Maldives joined the UN Human Rights Council, have you observed a difference in the way in which the Maldives is regarded and its diplomatic position?

AGM: The Maldives has always been fairly well received. We have good standing as a country run quite stably and with good development. Whatever problems we have had we have kept to ourselves.

The fact that we moved in 30-40 years from one of the least developed 16 countries to being a graduated non-LDC (least developed country) by end of first decade of the 21st century, means not only we but the last government achieved some things quite well.

The new government has taken a much more active position and is willing to be engaged with the international community even on issues of controversy, speaking its mind quite frankly.

This is the first time ever the Maldives is holding a position of this nature in the international arena. We have never been a member of a UN institution. We came in with a lot of good will because of our established record of engagement and a record of openness and transparency. We are one of the few countries which has a standing invitation to special rapporteurs.

We are also one of the few small countries – and a Muslim country – with a permanent presence in Geneva. As there are often misunderstandings about human rights instruments and values by the West and Muslim countries, many saw us, and we certainly promote ourselves, as a country that can provide a bridge for these views, as well as provide a voice for smaller states on the Council.

JJ: A US State Department cable leaked by Wikileaks documents your meeting with the State Department in February 2010. During the meeting, Assistant Secretary of State Robert Blake asks if the Maldives required “quiet US assistance” to take up the Human Rights Council position. Was that offer taken up, and what was the extent of US support for the Maldives in entering the Human Rights Council?

AGM: As a small country we didn’t have resources to run an election campaign in the way larger countries can run. Our record is of making ourselves heard and meeting as many ambassadors as possible, letter writing campaigns, and using our embassies in other parts of the world. Ministers also made contact at any international meetings.

Our campaign went on at a persistent and consistent level that didn’t cost us, because we didn’t have any money. We were obviously happy with the support that anyone extended to us, be it the US, UK or Canada. Most Western countries saw us as a moderate country that could play a constructive role.

While we appreciated the offer of help we were very keen to ensure than nobody viewed the Maldives as being sponsored. It was a conscious decision by the government because we felt we had a constructive role to play. We got 185 votes – the maximum number we could get.

JJ: The Maldives was running against Iran?

AGM: We were not running against Iran at the later stage, as they graciously withdrew and made way for the Maldives to run the race uncontested. We appreciated that, because while we were trying to win we didn’t want anyone to feel we were running against a particular country. We felt we had a strong case in running for the election in 2010, because this was the first time the Maldives had run for a position on a UN body.

There are very few small nations in Geneva who can be in the council. We had a history of positive engagement, and we wanted to use our membership in the council to improve the human rights situation at home as well.

Locally, not everyone agrees with some of the concepts. Either they are misunderstood, or seen as threatening. Our membership on the Human Rights Council also makes it easier for us to lobby the domestic community.

JJ: Later in the leaked document, Special Envoy to facilitate the closing of the Guantanamo Bay detention camp offered the Maldives US$85,000 for the resettlement of a Guantanamo detainee.

AGM: This was at an informal level to see the possibility. With regard to the money offered to the government of the Maldives, this was to help the person settle in the Maldives, and for his upkeep. This was not prize money. Obviously housing a person in the Maldives, giving him a place to stay, trying to find him an employment opportunity – that is a cost, and obviously one the Maldives should not have to pay as we are doing a favour for the US.

JJ: What ultimately happened? Did the Maldives take the US up on that offer?

AGM: The matter became quite a stir in the country, and it later died down. To my knowledge there was been no transfer of prisoners from Guantanamo to the Maldives.

JJ: You also discussed the possibility of the US putting down US$50 million in climate change assistance, which the UK’s Guardian newspaper interpreted as in return for taking a particular position at the Copenhagen climate summit.

AGM: The Maldives was one of the few small countries that supported the Copenhagen Accord, because we felt that accepting Copenhagen was more helpful than not accepting it.

We also felt that if more states came on board, the likelihood that the commitments that were given would become reality much quicker. The government did try to encourage other small states to come on board. It was a catch 22 situation – some small countries wanted to wait and see commitments become reality.

The US felt that unless there were enough people committed to the Copenhagen Accord, it would be difficult to make money available. They have to sell the commitments to their people and Congress as well.

I remember the conversation. I said that if the US were to be more forthcoming with their commitments and put the money in, it may actually encourage small states to come on more quickly, because they would see there was value in taking on the Copenhagen Accord. It wasn’t just the Maldives – I was keen to see commitments available for small states, which would mean other small states would also benefit.

Even before my meeting with the State Department the President had written to many heads of state to try and encourage them to come on board. The Maldives sent its letter of acceptance of the accord immediately after the meeting.

Unfortunately there were allegations, but I can certainly say no money was exchanged for votes.

JJ: Did the US$50 million in climate assistance ever materialise?

AGM: I believe are a number of climate-related projects with which the US is now helping.

JJ: Do you think the Maldives’ international human rights agenda at times conflicts not only with the understanding of human rights here, but also the constitution?

AGM: I wouldn’t say conflicts. But I think there are various interpretations between those who are liberal and conservative in their interpretations. But it would be wrong to say a conflict as such. I think through dialogue and discussion we can find a common ground where human rights are universal.

JJ: This topic came up during your discussion with the US State Department – you mentioned the need for greater access in the Maldives to “Western liberal education” to counter some of the extremist views coming back from places such as Pakistan.

AGM: Again, different people interpreted the comment differently. Some people interpret it as though I was trying to stop Maldivian students from traveling to places like Egypt to study. I was not – the point I was making was that many of the educational opportunities we get are in the Middle East, and sometimes for free – especially in Pakistan, where the madrassas offer free education.

Given the limited resources many parents have, it is very appealing to send children, especially sons, to these places that offer free education – in religion. The Maldives has traditionally been a very religious country. There is a love of religion and a very strong identity held about being Muslim.

When they have an opportunity for free education in Islam, many parents send their children. We have also relied on scholarships from other countries to educate children in higher studies. The more we receive these from Western countries, the more children will come back and have an influence on society. Many leading public figures have been educated abroad.

The US was one of the prime sponsors of Maldivians some time back in the 80s – we had 50 plus students in the American University of Beirut in Lebanon. Some of the best and brightest of that generation were educated in Beirut.

So we are trying to encourage especially the US to grant more scholarships for Maldivian students. It is an expensive place to study, especially for undergraduates. We felt quite keenly the loss of opportunities in Beirut. We looked to revive such opportunities.

JJ: People talk here about views from overseas being brought back to the Maldives. To what extent do you think that the Arab or Saudi interpretations of religion have been brought to the Maldives in this way, and to what extent have they supplanted traditional Maldivian interpretations of Islam?

AGM: This is my own very personal opinion: our earliest scholars studied at Azhar University in Egypt, and they were highly regarded [back in the Maldives]. There is a strong connection between religion taught in Azhar university, and religion practiced in the Maldives.

The one book that taught religion to a generation of Maldivians was a religious book by Mohamed Jameel, the father of the former Foreign Minister Fathulla Jameel. He was known as the teacher of a generation in terms of educating the public in religion.

That was the basis. These days, with the advent of modern communications and transport, we have many people coming from many schools. Even in the Middle East you have many ways of teaching and practicing religion, from the Gulf states to the more conservative Saudi Arabia. When they come back, they bring their own views of Islam, and how they have been taught.

In some ways this is unfortunate in a society that has had a very strong accord with religion. People are coming back with different religious experiences, and when they try to practice it here it sows discord. We have always seen religion as a force that bound the people of Maldives together as one, we are now seeing it as a source of discord. And that is a pity.

We hope that rather than stick to dogmatic views, we will be able to stick to a point of view that brings us together as one. The more you study the more you become aware of the complexities – whereas when you have only the basics, you can accept unquestioningly. Now there are questions being asked – people are more willing to question religious and political leaders.

There is also the internet. But it takes a strong intellect and a very good sense of right and wrong to determine sense from nonsense on the internet.

JJ: With more people talking about this, questions being asked and different interpretations coming forward, does this not conflict with what you said earlier about the Maldives being a homogenous society with one interpretation of religion binding it together?

AGM: I think this is part of progress and development. People are becoming more open to new ways of thinking and alternative view points. I think it is becoming more mature. Even if we were to hold different views on religion, we are learning to disagree without being disagreeable.

JJ: What has been the impact of the Maldives’ graduation from the UN’s definition of a least developed country to a middle income country? Has this affected countries’ willingness to engage with the Maldives as a development partner? Does this risk the Maldives being cut off from support?

AGM: I don’t think we will be cut off. This a point we have with the international community. Although we graduated in 2011, this was not a cause for celebration because it meant we had more challenges. Many of the challenges we faced before we will continue to face as a developing island nation: our small resource base, our transport costs, our dependence on one or two resources, and vulnerability to what happens outside in tourism and fishing – we have little control over the world market.

We have a fairly small economy and we do not have the economies of scale. One of the things the donor countries promised was a smooth transition. The Maldives’ efforts during the LDC conference meant we were able to adopt a resolution on transition, which would continue to provide certain benefits to a country for three years, as well as call on donor countries to continue assisting with the transition.

The worst message the international community could give to other potential countries graduating would be to see us revert to an LDC. There should not be a fear of slipping back. There is a very ambitious document that came out in the LDC conference in Turkey, which pledged to graduate 10-12 countries in the next 10 year period. It is important that these countries welcome rather than fear graduation.

There should be certain benefits we receive after graduating and showing that we are on the right path, and a country worth investing in. Certainly we have challenges, but we also have opportunities, and become exploit to our benefit, and show we are successful, be our partner in development.

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Maldives appeals to world for technical help with carbon neutral plan

The Maldives has become the first country to crowdsource its renewable energy plan on the internet.

The current draft of the plan focuses on using solar energy to generate most of the country’s electricity and cut emissions by 60 percent before 2020.

The plan suggests that up to 80 percent of the electricity island communities use could be derived from renewable energy, without the cost of energy increasing.  The plan also proposes a shift to wind, batteries and biomass to complement solar power, retaining existing diesel generators for reserve power.

The Ministry of Economic Development revealed that economic modeling had shown that it was already cheaper to generate electricity from solar photovoltaic panels than from diesel on many Maldivian islands.

The direct cost of daytime solar PV is around US $0.21 per kilowatt hour, compared to $0.28 – $0.44 per kW/hour for existing diesel generators.

The cost of decarbonising the Maldives, which spends almost 25 percent of its GDP importing fuel, mostly on marine diesel, is estimated to be US$3-5 billion over the next 10 years.

“The investments will largely pay for themselves because the Maldives would save huge sums of money on oil imports,” the Ministry of Economic Development observed in a statement.

The Renewable Energy Investment Office, based in the Ministry of Economic Development, was established to help combat global warming. Last week it opened an internet forum for local and international groups and individuals to advise the Maldives’ plan to develop solar energy, which has been approved by the Cabinet.

“The government has limited experience working with renewable energies because these are relatively new technologies to the Maldives,” noted Minister for Economic Development, Mahmoud Razee.

“We have published our investment framework online and highlighted areas where we require feedback and help. We are crowd sourcing our energy plans and inviting the whole world to help us,” Razee said.

A more detailed plan will be submitted again in February, with details on investment strategies, explained Razee.

“Maldives is the first country to do this on a global scale and over the internet. This shows that we are innovative and willing to share by working with other countries on this issue, which affects everyone. Also, it shows that we are willing to be as transparent as we can,” Razee said.

Forum users must register with their real name and submit identification information before contributing, and they will be asked a series of questions to confirm that they are qualified to share their expertise. The forum rules encourage debate, but note that comments that “are deemed offensive or inappropriate, or don’t relate to the question” will not be published.

The forum rules further requests that “criticism of a proposal has to be supported by offering a better alternative, with a clear idea of cost and practicality,” in order to be useful.

The goals of the plan, Razee stated, were to free the country from the uncertainties and costs of its oil dependency, and to demonstrate global leadership in the fight against climate change.

“While we are working now on the initial production planning and development we will also be looking to use local and international expertise to develop storage capacity,” Razee said, acknowledging that storage was a primary concern.

While the Maldives has abundant sunlight during the day, the battery technology required for large-scale power generation at night is extremely expensive.

“Right now, we aren’t looking at storage because it would double the cost in this current economic environment. Technology is evolving reasonably rapidly though, and in five or ten years we think that providing storage will more affordable,” Razee said.

“Batteries are used at night, and as we know a lot of electricity is generated then. So we will need to address the issue of storage and how to provide energy at night within our larger goals.”

Forum topics in the comprehensive crowdsourcing project include solar and wind technology, energy storage, system control and demand management, novel technologies (including marine current and ocean thermal), biomass power generation, and finance.

Under each topic the Maldives appeals for expert assistance on several technical questions, around issues such as the use of solar panels in corrosive environments, the economics of tracking or fixed solar panel systems, and the viability of low velocity wind turbines.

Visit the forum (English)

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Maldives director of Amana Takaful resigns weeks before IPO

Director of the Maldives branch of Amana Takaful, Hassan Ali Manik, has resigned his post scarely a week after the company announced the launch of a landmark IPO on the local stock exchange.

Manik’s resignation will take effect from the 21st of September. In a statement, Amana Takaful said Manik was tendered his resignation “citing business and personal commitments”.

The company did not announce a replacement.

Sharia-compliant insurance company Amana Takaful will issue 800,000 shares in an initial public offering (IPO) on the Maldives Stock Exchange (MSE).

In a first for the country, 20 percent of the shares will be made available to expatriates and 15 percent to overseas applicants. The remaining 65 percent will be offered to Maldivians.

The Sri Lanka-based company hopes to generate Rf16 million (US$1.4 million) in proceeds through the IPO, by selling shares at a low issue price of Rf20 (bundled in packages of 25).

CEO of Amana Takaful Maldives, Hareez Sulaiman, said the IPO would “change the way the Maldivian Stock Exchange operates as this will be the first time that Maldivians, expatriates and foreigners will be able to purchase securities in a Maldivian listed company.”

The decision to price the shares low “at a price affordable to any average Maldivian” also promised to “be a kick starter for an active stock market which may benefit the entire economy at large,” the company said in an accompanying statement.

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First international fast food chain opens in Maldives

President Mohamed Nasheed attended the official opening of Marrybrown, a halal Malaysian fast food chain and the first international fast food chain to come to the Maldives.

The Marrybrown franchise currently operates in 15 countries worldwide. The restaurant in the Maldives was established by Lily International Private Limited, a leading business venture in the Maldives.

In his speech at the opening ceremony, the president thanked Lily International for its various contributions to Maldivian businesses since the 1980s.

The president also noted that the Maldivian lifestyle is changing to accommodate businesses enterprises such as Marrybrown, and that steps are being taken by the government to facilitate competition in the open market. The president said necessary legal amendments such as tax and state income laws were being made, and hoped more service enterprises would be established in the Maldives.

Marrybrown Chairman Lawrence Liew said the chain caters to a general population. “We have something different for everyone at a reasonable price in a clean environment. Our kids play centre creates a positive family space,” he said.

President Nasheed eats the inaugural fried chicken burger

After a moment of technical difficulties, Marrybrown opened its doors to the president, the press and the public. The President tasted the chain’s first fried chicken burger in the Maldives alongside franchise and government officials, and was given a tour of the facility which includes an air conditioned interior dining and play area and an upper open air veranda.

Families flocked to the restaurant doors for the next few hours, eager to acquire the free fried chicken meals that were being distributed in honor of the occasion.  A chipmunk mascot in a signature pair of green overalls welcomed children to the event outside, while groups were let in in stages to avoid crowding.

“The menu for Maldives was specially designed over the last six months by our chefs, and is a combination of Malaysian and Maldivian cuisines,” Co-Founder and Group Management Director Nancy Leiw told Minivan News.

When asked about the health value of the fast food menu, Leiw claimed Marrybrown “delivered all the necessary nutrients.”

“It’s a very balanced diet. Think about a burger. You have your carbohydrates, your protein, the lettuce gives you valuable vitamins and minerals, you have everything you need.”

Burgers are served with tomato and chili sauce packets and soft drinks.

Liew said that the franchise owner is “an ambitious businessman”, and that Marrybrown will be expanding business in the Maldives. “We don’t just serve food, we serve people. We will be providing opportunities in employment, business management, and local development,” she said.

The Marrybrown opening was facilitated by Malaysian staff, who will train Maldivian employees to “pass on our expertise and style of customer service,” said Liew.

The franchise’s nationality bore special connotations for the Maldives. “Malaysia is Muslim, and the Maldives is Muslim. We share a special synergy in Islam,” said Liew. “This synergy will allow us to work together in productive ways to create new opportunities for growth in line with our shared cultural standards.”

Liew noted that Marrybrown is celebrating 30 years of operation this year, and will be holding promotions and fundraising events for local charities and businesses throughout the year.

Marrybrown plans to open several more restaurants in the Maldives in the near future.

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Convict released under “Second Chance Programme” arrested for drug dealing

An inmate released under the “Second Chance Programme” to be reintegrated into society was arrested on Tuesday on suspicion of dealing drugs.

Haveeru reports State Minister for Health Lubna Zahir Hussein as saying in a press conference last night that the convict would be returned to jail if he was found guilty.

Lubna stressed that the government planned to share details of the ongoing programme with the media, including cases of convicts relapsing into crime.

Five convicts released under the programme were previously apprehended after testing positive for drug use. While three of them are to be sent to detoxification centres, clinical assessments were pending for the remaining two.

State Minister for Home Affairs Mohamed ‘Monaza’ Naeem said last week that the 134 convicts released so far under the programme are being monitored under a special mechanism.

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President inaugurates first training course of “skills programme”

President Mohamed Nasheed has inaugurated the first course of the government’s Rf360 million national “skills programme” intended to train 8,500 youth for skilled employment.

Speaking at a ceremony at the Post Office workshop area this morning, Nasheed observed that the main impediment for employment or job creation in the Maldives was the lack of skilled workers.

There were 12,000 expatriate workers with some skills earning between Rf90,000 and Rf100,000 a month, said Nasheed, adding that 30 percent of working age youth in the Maldives could not find jobs.

The first course under the programme is being conducted by the Centre for Career and Technical Education (CCTE) to train 100 youth in heavy load vehicle operations. In addition to 60 participants to be trained in Male’, the course will also be conducted in Haa Dhaal Kulhudhufushi in the north and Gaaf Alif Villigili in the south with 20 participants each.

Participants in the various training programmes for youth would meanwhile be paid a monthly allowance of Rf2,000.

Earlier this week, the government contracted five parties to conduct training programmes for 645 youth.

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