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Parliament committees reconstituted with over half the session consumed

MPs have been selected for standing committees today following yesterday’s 61-3 vote to approve a compromise over the reworked composition agreed upon by parliamentary group (PG) leaders.

The three dissenting votes were cast by Independent MPs Ahmed Amir and Ahmed “Redwave” Saleem along with Nolhivaram MP Mohamed Nasheed of the ruling Maldivian Democratic Party (MDP).

MPs of the Dhivehi Rayyithunge Party’s (DRP) Z-faction, Ahmed Mahlouf, Ilham Ahmed and Afrashim Ali, were notably chosen by the split main opposition party for the coveted ‘241’ Security Services Committee – the Z-DRP MPs disrupted last week’s sitting in protest of the previous compromise reached by PG leaders, which would have given the MDP a voting majority on the now-opposition controlled committee.

As a result of the drawn out dispute over committee composition – sparked by the defection of two opposition MPs to the ruling party in May – parliamentary committees have remained stalled since the current session began in June.

The second session of parliament this year is meanwhile due to end next month as Majlis breaks for recess at the end of August.

Apart from authority to summon state officials and conduct inquiries, parliamentary committees are tasked with reviewing and finalising legislation as well as evaluating the President’s nominees to the cabinet, independent institutions and foreign missions.

Four out of 14 bills proposed by the government as part of its economic reform package were sent to committee on Monday while debate on the rest is set to continue next week.

Among the economic reform legislation on the agenda today were proposed laws for business registration, real estate, inheritance, business partnerships and company rules as well as a bill to abolish the Foreign Investment Act of 1979.

Revised committee composition : –

1. Rules Committee – five seats for the Maldivian Democratic Party (MDP); five seats for the Dhivehi Rayyithunge Party (DRP); one seat for People’s Alliance (PA); Eydhafushi MP Ahmed “Redwave” Saleem as the Independent MP

2. Public Accounts Committee – five seats for MDP; four seats for DRP; one seat for PA; one seat for Dhivehi Qaumee Party (DQP)

3. Economics Committee – five seats for MDP; three seats for DRP; one seat for Jumhooree Party (JP); Meedhoo MP Ahmed “Sun Travel” Shiyam and Eydhafushi MP Ahmed “Redwave” Saleem as the Independent MPs

4. Social Affairs Committee – four seats for MDP; three seats for DRP; two seats for PA; one seat for JP; Velidhoo MP Ali Mohamed as the Independent MP

5. Independent Institutions Committee – five seats for MDP; four seats for DRP; one seat for PA; Kulhudhufushi South MP Mohamed Nasheed as the Independent MP

6. Government Oversight Committee – four seats for MDP; four seats for DRP; one seat PA; one seat for JP; one seat for DQP

7. National Development Committee – five seats for MDP; three seats for DRP; one seat for PA; Kudahuvadhoo MP Ahmed Amir and Kaashdihoo MP Ismail Abdul Hameed as the Independent MP

8. National Security Committee – five seats for MDP; three seats for DRP; one seat for PA; Dhuvafaru MP Mohamed Zubair and Guraidhoo MP Ibrahim Riza as the Independent MPs

9. General Affairs Committee – five seats for MDP; three seats for DRP; one seat for PA; Kudahuvadhoo MP Ahmed Amir and Dhuvafaru MP Mohamed Zubair

10. Petition Committee – five seats for MDP; three seats for DRP; one seat for PA; one seat for JP; Kaashidhoo MP Ismail Abdul Hameed as the Independent MP

11. Privileges Committee – five seats for MDP; three seats for DRP; one seat for PA; one seat for JP; Guraidhoo MP Ibrahim Riza as the Independent MP

12. Ethics Committee – five seats for MDP; four seats for DRP; one seat for PA; Velidhoo MP Ali Mohamed as the Independent MP

13. ‘241’ Security Services Committee * – five seats for MDP; three seats for DRP; one seat for PA; one seat for JP; one seat for DQP; Guraidhoo MP Ibrahim Riza and Kaashidhoo MP Ismail Abdul Hameed as the Independent MP

* Article 241 of the Constitution states, “A committee of the People’s Majlis shall be established to exercise continuing oversight of the operations of the security services. The committee shall include representation from all the different political parties within the People’s Majlis.” Unlike the other 12 standing committees, which has 11 seats, the 241 committee has 13 seats.

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High Court orders stay of Thulhaadhoo by-election

The High Court yesterday ordered a stay of the by-election announced by the Elections Commission (EC) for August 20 to replace dismissed Councillor Umaira Abubakur.

The appeal court ordered EC to postpone the by-election until the court ruled on the legality of her dismissal, which was contested by the opposition Dhivehi Rayyithunge Party (DRP) on behalf of its councillor.

Umaira was dismissed for failing to attend ten consecutive council meetings while she was attending a training workshop for newly-elected councillors.

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Z-DRP opens new office for former President Gayoom

The opposition Dhivehi Rayyithunge Party’s (DRP) Z-faction opened its new office in Male’ this morning for use by the party’s ‘Honorary Leader’ (Zaeem) former President Maumoon Abdul Gayoom.

Gayoom told press at the function that a number of people from Male’ and the atolls had requested meetings with him and invited party members and supporters to seek appointments at the new Z-DRP office.

Speaking at the opening ceremony, Gayoom expressed gratitude to benefactors who arranged to pay rent as well as salaries for staff. The former president also thanked DRP Deputy Leader Ilham Ahmed and Umar Naseer for their efforts.

The Z-DRP office is located on Bodhuthakurufaanumagu a short distance from the official DRP office. The party marks its sixth anniversary today with separate events by the two factions led by the former president and his successor Ahmed Thasmeen Ali.

To kick off the activities of the new opposition coalition after breaking off from the main opposition DRP, the Z-faction announced a rally tonight at artificial beach, with former President Gayoom in attendance.

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Deputy Speaker Nazim appointed Opposition Parliamentary Group Leader

A new coalition of opposition MPs from the Peoples Alliance (PA), Dhivehi Rayyithunge Party (DRP)’s Z-Faction, Jumhoory Party (JP) and Dhivehi Qaumee Party (DQP) last night appointed the new group’s leader, deputy leaders, spokesperson and whips.

Deputy Speaker of Parliament and PA MP Ahmed Nazim was chosen as the leader of the Opposition Parliamentary Group.

DQP MP Riyaz Rasheed and Z-DRP MP Ilham Ahmed were appointed as deputy leaders of the parliamentary group while Z-DRP MP Ahmed Mahlouf was appointed spokesperson.

Z-DRP MP Hamdhoo Hameed was appointed as the “government watch” and PA MP Abdula Azeez Jamal Abu Bakur, Z-Faction MP Ali Arif, MP Ahmed Nihan, MP Abdul Muhsin, MP Mohamed Rafeeq and independent MP Ibrahim Riza were appointed as whips.

Deputy Leader of DRP Ahmed ‘Mavota’ Shareef meanwhile told Minivan News that the current political situation of the Maldives was very fluid.

“Today everyone needs power and to get that power one might do anything, be it out of the law or within the law,” Shareef said.

Shareef predicted that according to the way things were going, DRP MP Ahmed Thasmeen Ali “will not lose the position of minority leader in parliament.”

“We do not support the policy of the government, that is why DRP is here, and we will only support people that support the policy of DRP.”

Announcing the decision to create the new opposition parliamentary group, MP Mahlouf said Thasmeen was also welcome to join the opposition parliamentary group.

Thasmeen did not respond to Minivan News at time of press.

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Alidhoo resort staff on strike over unpaid wages

Maldivian staff working at Alidhoo Resort in Haa Alifu Atoll have declared themselves on strike claiming that the management of the resort had not paid them salary for last month.

The resort is operated by Yacht Tours, owned by local businessman and former MP Abdulla Jabir.

“It is almost the end of this month and Ramadan is coming up – we have to send money to our families back on the islands and we are really broke,” said a staff member working in the resort.

He claimed allowances of the staffs working in the resort had not been paid for the last three months, including service charge and overtime.

“Last week we spoke with the management about our salaries and they said we will be paid today, and today they said they will pay us next Monday,” he said. “Now we are not very confident with this management so we have decided to continue this strike until they pay us.”

The management first told staff that the payments were delayed because the chairman of the company was not in the Maldives, he continued.

“When he came back, they said the banks were not giving money to the resorts – how can we believe them now?” the staff member said.

He claimed that expatriates working on the island had not received their salaries for the past three months.

“They want to join us in the strike but they fear that they might be fired and sent back to their countries,” he said, adding that the expats were supporting the strike although they were not physically involved.

Vice President of Tourism Employees Association of Maldives (TEAM) Mauroof Zakir told Minivan News that TEAM was not officially involved in the strike.

“TEAM has decided not to participate in any strike that is conducted without informing TEAM prior to the commencement of the strike,” Mauroof said. “However, we have given Alidhoo staff instructions.”

Mauroof said TEAM made the decision in a recent meeting because “whenever the strike reaches an uncontrollable status, that’s when the staff see TEAM, and when it reaches that situation it is very hard for us to solve the issues.”

Chairman of Yatch Tours Abdulla Jabir told Minivan News that the delay was caused because he was not in town.

“It will be arranged sometime today,” he said. “The payments were delayed because I was not here.”

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Expatriate worker dies of dengue

An expatriate worker has died of dengue haemorrhagic fever, after being infected on Konottaa in Gaaf Dhaal Atoll.

The 37 year-old Indian national died during treatment at Thinadhoo Regional Hospital.

“He died of dengue shock syndrome less than three hours into treatment,” hospital overseer Aminath Abdul Hakeem told Haveeru.

Five more workers from the island tested positive to the disease, and were treated at the hospital.

Meanwhile, a team from Thinadhoo was dispatched to destroy breeding grounds and fog the island, which is being developed as a resort.

Nine people have died of the mosquito-borne disease this year.

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Expenditure on political appointees two percent of state wage bill, says Finance Ministry

Expenditure on 244 political appointees in the executive branch is two percent of the state’s wage bill or Rf99 million (US$6.4 million) a year, according to official figures released by the Ministry of Finance and Treasury.

The Rf1.6 billion (US$103 million) of annual spending on 20,476 civil servants meanwhile accounts for 39 percent of total state expenditure on salaries and allowances, followed by 24 percent for uniformed bodies (5,949 police and army officers), 17 percent for local councils (1,091 elected councillors), 10 percent for independent institutions (1,904 employees) and five percent for the judiciary (1,461 employees).

Annual expenditure on parliament (211 employees) accounts for two percent while administrative staff at the President’s Office (186 employees) represent one percent of the total wage bill.

A press statement issued by the ministry today notes that the figures were made public because “misleading statements” were being made about government spending.

“The economy has been adversely affected as a result of the state budget deficit in past years,” it reads. “One thing to be noted is the significant increase of recurrent expenditure compared to revenue. Recurrent expenditure is 12 percent above the government income forecast for 2011. Moreover, 49 percent of the state’s recurrent expenditure is spent on salaries and allowances for state employees.”

“Tip of the iceberg”

Speaking to Minivan News today, MP Dr Abdulla Mausoom of the opposition Dhivehi Rayyithunge Party (DRP) said that expenditure on political appointees in the executive was “just the tip of the iceberg.”

“The whole country was corporatised,” he explained. “There’s a roads corporation and all sorts of corporations. The people appointed to the boards of these corporations are all purely political appointees. They were appointed directly by the President to promote a political agenda.”

He added that the corporations were created “to give political posts to [ruling Maldivian Democratic Party] MDP activists.”

Moreover, said Mausoom, the corporations have “taken millions of dollars in loans to give salaries to these MDP activists.”

“Some of these people are not qualified at all,” he claimed. “There are people who have been made Managing Directors who cannot even read an MoU [Memorandum of Understanding] written in English.”

Dr Mausoom argued that the majority of senior officials in the corporations were filling “useless posts.”

The Public Accounts Committee (PAC) of parliament had requested information about expenditure on corporations, he continued, but the figures had not been provided.

“Most of them don’t even show up at the office,” he said. “Every day between sunrise and sunset, a new post is created in these corporations.”

“Distortions”

Finance Minister Ahmed Inaz however dismissed Dr Mausoom’s contention as “an attempt to distort” the information made public today.

Inaz insisted that senior officials of corporatised entities were not paid salaries or allowances out of the government’s wage bill.

The Finance Minister explained that state-owned enterprises such as the State Trading Organisation (STO) were managed as businesses and paid their employees from income raised through their operations.

“Other corporations such as Dhiraagu pay dividends to the government,” he said.

While subsidies were granted to the State Electricity Company (STELCO), Inaz said that the government’s policy was to switch to targeted subsidies for the poor.

“What would happen if we suddenly brought a speeding motorcycle to a halt?” he asked, referring to public companies. “It will slide off the road and crash.”

On the cost of political appointees, the Finance Minister argued that two percent of the wage bill was “a negligible amount.”

“Say for example that we eliminated all political posts and only President Nasheed is left in the executive,” he said. “Reducing or eliminating two or three percent would not have a significant impact on state expenditure.”

Austerity battles

In August 2009, the government’s decision to introduce a raft of austerity measures – including unpopular pay cuts of up to 15 percent for civil servants to reign in the ballooning budget deficit – was met with fierce resistance from opposition parties.

The pay cuts sparked a protracted legal dispute between the Finance Ministry and the Civil Service Commission (CSC), which won a court case against the ministry in April 2010 to restore salaries to previous levels.

Meanwhile an internal World Bank report produced for the donor conference in May 2010 noted that increases to the salaries and allowances of government employees between 2006 and 2008 reached 66 percent, which was “by far the highest increase in compensation over a three year period to government employees of any country in the world.”

“Even before government revenues fell and when government revenues were at an all time high in 2008, the ratio of the wage bill to revenues at 46.5 percent was also at an all-time high (46.5 percent compared to an average of 38.1 percent between 2000 and 2007). When revenues plummeted in 2009, the share of the wage bill to revenues rose an astronomical 89 percent,” the report explains.

In April this year, the government launched a programme to incentive voluntary redundancy in the civil service.

Finance Minister Inaz told Minivan News in May that the programme “has to this date enrolled 800 people and already some of them have already been paid and moved out of the civil service. We hope over the next few weeks we will achieve our target of 1300.”

Inaz observed at the time that slimming down the civil service would not be easy: “The country’s employment has been totally dependent on the government. It is a very big change, and we have said we want the government to be a policy maker, a regulator, but not doing business, so jobs are created in the private sector.”

State wage expenditureAnnual expenditure on salaries and allowancesPercentage of total wage bill or expenditure on employees
Civil servants or employees under the executive (excluding political appointees and councillors)Rf1,596,029,00739 %
Uniformed bodiesRf1,001,489,48624 %
Political appointees in the executive branchRf99,178,9802 %
Administrative staff at the President’s OfficeRf27,326,7301 %
CouncilsRf717,250,03017 %
JudiciaryRf210,282,4635 %
People’s Majlis or legislative branchRf79,210,7182 %
Institutions dependent on state budgetsRf393,620,94310 %
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Tour giant funding project to raise resistance of coral reefs in the Maldives

Travel giant Kuoni, the International Union for the Conservation of Nature (IUCN) and local environmental consultancy Seamarc have launched a comprehensive project to protect coral reefs and address the impact of climate change in the Maldives.

Speaking at the launch of the project this week at the Nalahiya hotel in Male’, Kuoni’s Head of Corporate Responsibility Matthias Leisinger observed that “tourism is like fire. You can cook with it, but it can also burn your house down.”

Kuoni has conducted a similar project in Egypt, targeting the Red Sea. Such projects were, Leisinger said, investment by the company in the long-term sustainability of destinations and a tool well within the company’s business model.

The 100 year-old leisure travel operator employs 10,000 people across 40 countries, and had as a result of its breadth broadened its scope from travel and tour provision to “destination management”.

“Investment in corporate social responsibility is a long-term business tool,” Leisinger said. Tackling practices such as sex tourism, for instance, was also a way of protecting the company’s brand, he explained.

Ensuring that hotels had no waste on beach, that islands had infrastructure such as sewerage plants and that staff were treated fairly increased the quality of the company’s end product, which affected its bottom line, he explained.

One aspect of the project involves establishing waste management facilities on 10 inhabited islands near Kuoni resorts. According to the project synopsis, “islanders will be taught to segregate waste at household level and bins will be provided to store the waste separately until removal from the island. A once-off large clean up may need to be organised before implementation of the system as most islands have accumulated waste over time.”

As well as improving the environment of the local island and allowing the resort to tick one of its ‘corporate social responsibility’ boxes, the facilities will “reduce the waste that washes up on the shores of the resorts themselves.”

A key focus of the project is protection and management of the resorts’ housereefs, which are currently protected by law from all fishing activities apart from bait fishing, “and as such, these areas act as marine protected areas (MPA) by default.”

However few resorts employed marine biologists to manage the housereef and limit destructive activity, and many times the boundries were ambigious “which results in unacceptable use of the reefs by outsiders leading to conflicts between the resort and local people.”

Under the project, four resorts will trial an ‘MPA management plan’ involving ecologicial surveys and the use of a warden to “drive away intruders”.

The project will also include an extensive series of training sessions and workshops for resort staff and local communities, and including on the reporting and monitoring of coral bleaching.

Senior Advisor at IUCN Dr Ameer Abdulla explained that bleaching represented the expulsion of symbiotic plants from coral due to stress factors such as pollution, sudden changes in temperature and ocean acidification, making the coral vulnerable to algae.

“Eventually the reef disintegrates, with the loss of shoreline protection and tourism benefits,” he explained.

“A bleaching event in 1998 saw close to 100 percent mortality in some areas [of the Maldives],” he said. “It was 87 percent in the Great Barrier Reef in Australia, but because the area has been well managed the rate of recovery was very high.”

Tackling climate change was a broader problem requiring international effort, but local measures to reduce impacts and increase the resistance threshold of the reefs could “give the coral a fighting chance”, he explained.

Dr Abdulla noted concerns raised by dive staff at one resort that local fishermen had begun fishing for grouper on the resort’s house reef, but were unsure of their mandate and did not want to spark local conflicts.

A representative from the Ministry of Tourism, present at the launch, observed that such incidents were likely to increase “as stocks diminish elsewhere.”

The representative also noted new challenges arising with the changing market profile of tourism in the country – whereas visitors from European countries such as France and Germany responded well to requests to respect the natural environment, “the market is changing, and Chinese guests are walking on the reefs, catching and eating crabs… During a recent visit to Shanghai we tried to get the message across, but it’s a very different culture.”

A representative from the Marine Research Centre (MRC) retaliated that it was in the interests of the Tourism Ministry to legally mandate resorts “to take responsibility for the natural environment for the duration of the lease.”

Much of the country’s lucrative resort industry “remains very closed,” he observed.

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MP Yameen dismisses allegations of blackmarket oil trade with Burma

Minority opposition People’s Alliance (PA) Leader MP Abdulla Yameen called on the government today to investigate allegations of US$800 million worth of blackmarket oil trade by the State Trading Organisation (STO) while he was chairman of the state-owned enterprise.

During parliamentary debate on a resolution proposed by MP Mohamed Musthafa demanding an investigation into the allegations, Yameen conceded that STO did sell oil to Burma “but if you claim that the trade was illegal, you have to prove it first.”

“This was done by forming a company in a country where such matters are most closely monitored,” he said. “That company is audited by STO auditors. An illegal business would not be allowed to operate in Singapore. This was not a secret trade.”

Yameen added that STO senior officials alleged to be involved in the oil trade were still employed by the government: “They are now in high posts in the MDP,” he said.

“So if you dare to investigate this, by all means go ahead,” he continued. “I encourage that this be investigated. The other thing I want to say is that I have now become impatient. Even if they stack US$800 million worth of documents on one end of the scale, there is no way they would be able to prove [any wrongdoing].

“The documents are with the government. We did not take documents home with us when we left office,” he said.

Yameen, brother of former President Maumoon Abdul Gayoom and long-serving Trade Minister in his cabinet, claimed that the administration possessed a list of senior officials of the previous government who had purchased assets overseas.

“The government will have that list now,” he said. “Why is it that they won’t make it public? I know that this work was done under the World Bank’s stolen assets recovery programme [StAR]. This list will have people who are now helping this government, not anyone else. Why don’t you release the list?”

The MP for Mulaku claimed that the government has paid “over a million dollars” to forensic accounting firm Grant Thornton, without uncovering any evidence to implicate Yameen.

“In such investigations, forensic accountants are given two or  three weeks to complete their work,” he said. “[But] this has now been dragged out for over a year.”

Yameen said that he was “ready to sue” for defamation if a final report “under seal and signature of Grant Thornton” was made public.

“But there’s no way to file this suit because no official document has been released,” he continued. “All that’s been released are draft reports without any signature or seal that can be taken to court.”

Yameen added that “the US$800 million worth of trade was done with back-to-back LCs (lines of credit) in Singapore based on trust between one bank and another.”

“All the bank documentation is there,” he said, claiming that Grant Thornton had cleared out all the “invoices and documents” from STO Singapore so that “there’s not even one photocopy left.”

“How can eight or nine years worth of documents of a government company be taken like this?” he asked. “I know this for a fact.”

The right of individuals to be considered innocent until proven guilty was “a sacred provision” in the Maldivian constitution, he said.

During the heated debate that followed, Former Finance Minister Gasim Ibrahim urged the government to allow the allegations to be investigated either by police or the Anti-Corruption Commission (ACC) as “they are the institutions that are legally empowered to conduct investigations.”

“I don’t believe this case should be debated in parliament,” said Gasim, arguing that the constitution protected the rights of the accused.

MP Eva Abdulla of the ruling Maldivian Democratic Party (MDP) meanwhile observed that the audit report of the State Trading Organisation (STO) had noted that about Rf11 million (US$80,000) in local currency was released to Emerald Resort Pvt Ltd as loan facilities between April 1, 2003 to April 3, 2005 to be paid back in US dollars.

“The same report noted that STO imported medical equipment without a bidding process at a much higher price than [the equipment] was available for,” she continued.

Eva also referred to the audit reports of the Maldives Customs Service, which revealed that luxury yachting company Sultans of the Seas in 2007 had forged documents to evade import duties for a yacht.

“After that the audit report of the presidential palace Theemuge noted that Rf104 million was given out as assistance,” she said. “From that, 50,000 Singapore dollars were spent for medical assistance to the [former President’s] family members. And US$20,000 for a member of the People’s Majlis. And so on until Rf100 million was reached. It’s not just the US$800 million dollar case we want to investigate. We want this to be looked into.”

The MDP MP for Galolhu North revealed that the Presidential Commission was currently investigating over 25 similar cases of corruption and misappropriation of state funds by the former government.

“Honourable Speaker, whether it is me [facing corruption allegations], the Deputy Speaker, the leader of a fragmented and unraveling party, the brother of a deposed ruler, we want to make certain that these investigations will go ahead and that we can have justice,” she said. “We want to stop looking back as a nation and breathe freely. We can only do that when we face these cases of corruption and find out the truth.”

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