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Government unveils integrated resort project at World Travel Market

The Maldives Marketing and PR Corporation (MMPRC) has unveiled its integrated resort development project at the World Travel Market in London this week.

Representatives from the Maldivian government’s tourism promotion department – as well as local tour operators – are taking part alongside 146 representatives from 54 countries.

“A press conference was held on the first day of the fair, where the highlight of the conference was the recently launched Integrated Resort Project which was disseminated to the audience,” read an MMPRC press release.

The new scheme, described as ”communal tourism development” or “vertical tourism” by President Abdulla Yameen is being overseen by the MMPRC.

Sixteen bids were reported to have been received earlier this year for the first 20 plots made available as part of the Thumburi guest house island project – designed to attract small and medium business to an industry dominated by high-end island resorts.

Also present in London this week are representatives of the Maldives Association of Travel Agents and Tour Operators (MATATO), which is acting as an associate partner for the second year.

“This partnership opens new doors for MATATO members,” explained the association – the only Maldivian group to be given associate partner status.

”We believe that the growth and sustainability of our members, local travel agents and tour operators and other industry stake holders, require continued exploration and networking efforts in the emerging markets along with strengthening the presence in the lucrative markets for Maldives.”

The World Travel Market was launched in 1980, and has grown from 350 exhibitors to around 5,000 and 50,000 participants – agreeing deals worth $3.7 billion last year alone.

The Maldives tourism industry welcomed over one million tourists for first time in 2013, with the government expecting the 1.5 million arrivals in 2015.

The MMPRC visited China last month in an effort to further boost the now-dominant Chinese market, which makes up over 30 percent of the market share.

Recent statistics show that visitors from the UK – traditionally one of the largest sources of tourists to the Maldives – rose to 8 percent of the total in the first three quarters of 2014.

“The Maldives delegation will be meeting with the Top Travel Agents and Travel trade media to identify opportunities to build strong ties between two countries and to identify strategies to increase the number of tourist arrivals from UK,” said the MMPRC today.

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Suspect acquitted of Ayyube murder

The Criminal Court on Sunday (November 2) acquitted Mohamed Fauzan of murdering Ali Hassan ‘Ayyube’ in Dhaalu Kudahuvadhoo in January 2012.

The court decided that the evidence submitted by the prosecution was insufficient to prove Fauzan was guilty of murdering the 76-year-old.

In March 2013, two minors charged with Ayyube’s murder pleaded guilty to aiding the murder in court. The two minors were charged with spying on Ayyube before the murder, and assisting the assailants to hide the murder weapon.

The Juvenile Court subsequently sentenced the pair to death.

Ayyube’s body was discovered with multiple stab wounds in an abandoned house on Kudahuvadhoo on January 8, 2013. Police arrested six individuals in connection to the case.

The victim had previously been accused of using sorcery on Fauzan’s 37 year-old mother. She was reported missing at 2am on December 4, 2011 and her body was found floating in Kudahuvadhoo lagoon later that morning.

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Finance minister presents record MVR24.3 billion state budget to parliament

Finance Minister Abdulla Jihad submitted an estimated 2015 state budget of MVR24.3 billion (US$1.5 billion) for parliamentary approval today – 35 percent higher than this year’s record MVR17.96 billion (US$1.16 billion) budget.

“The estimated budget deficit for 2015 is MVR1.3 billion [US$84 million],” Jihad said in his budget speech at today’s sitting of parliament.

“This is 2.5 percent of GDP. The deficit is to be financed by MVR1.1 billion [US$71 million] estimated from foreign parties and MVR223 million [US$14 million] estimated from domestic finance.”

After expressing fears in August that the deficit for this year would spiral to MVR4 billion – or 10 percent of GDP, Jihad told MPs today that the 2014 deficit was expected to be just MVR1.6 billion (US$103 million) as a result of compromises by parliament to the government’s revenue raising measures.

Recurrent expenditure in 2015 is expected to be MVR15.8 billion (US$1 billion) or 65 percent of the budget, he explained.

Salaries and allowances for state employees accounts for 26 percent of the total budget, Jihad noted, followed by social security and welfare (13 percent) and administrative costs (8 percent).

Capital expenditure meanwhile accounts for 30 percent of the budget, Jihad continued, which includes MVR6.3 billion (US$408 million) for the Public Sector Investment Programme (PSIP) and loan repayment.

The forecast for government income or revenue is MVR21.5 billion (US$1.3 billion), Jihad said, including MVR13 billion (US$843 million) in tax revenue, MVR6.8 billion (US$440 million) in non-tax revenue, and MVR1.7 billion (US$110 million) in free aid.

Jihad noted that MVR3.4 billion (US$220 million) is anticipated from new revenue raising measures, which includes revisions of import duty rates from July onward, the introduction of a ‘green tax’, fees from investments to special economic zones, income from the home ownership programme, and leasing 10 islands for resort development.

Fund allocations

The MVR2.9 billion (US$188 million) allocated for the education sector is 32 percent higher than 2014, Jihad continued, which includes higher expenditure on scholarships, student loans, training programmes, financial assistance for pre-schools, and the cost of implementing the new national education curriculum.

The MVR2.1 billion (US$136 million) allocated for the health sector is 21 percent higher than 2014, Jihad noted, while MVR3.2 billion (US$207 million) was allocated for social security and subsidies provided by the National Social Protection Agency, including MVR1 billion (US$65 million) earmarked for the MVR5,000 (US$324) a month pension for the elderly and MVR750 million (US$48 million) for the unlimited Aasandha health insurance programme.

Some 52 programmes would be conducted to upgrade three hospitals to tertiary level and develop infrastructure in regional hospitals and island health centres, he noted.

While MVR90 million (US$5.8 million) was allocated for fisheries and agriculture, Jihad said MVR50 million (US$3.2 million) was allocated for providing financial assistance for small and medium-sized enterprises.

“As development of Maldivian youth is one of the most important pledges of this government, MVR300 million [US$19.4 million] has been budgeted to conduct different programmes aimed at youth,” Jihad said, which was 55 percent higher than 2014.

Funds have also been earmarked for the celebration of the 50th anniversary of independence, Jihad noted.

Notable PSIP projects include the development of the Ibrahim Nasir International Airport (INIA), the Malé-Hulhulé bridge project, the Indira Gandhi Memorial Hospital (IGMH) renovation project, water and sewerage projects for 66 islands, coastal protection for 22 islands, 23 new harbour construction projects and 38 ongoing harbour projects, and waste management projects in 105 islands.

Funds have also been allocated in the budget for a renewable energy project expected to commence next year, he added.

A total of MVR695 million (US$45 million) was earmarked for housing programmes, Jihad continued, which includes the construction 1,985 housing units in Hulhumalé.

In addition to a project to resolve flooding in the capital, Jihad said 15 road construction projects in other islands were included in the budget.

2014

While the projected deficit for 2014 was MVR1.3 billion, Jihad said the deficit at the end of the year would be MVR1.6 billion (US$103 million) as a result of compromises by parliament to the government’s revenue raising measures.

A proposed Tourism Goods and Services Tax hike was delayed from July to November while the reintroduction of the US$8 bed tax was delayed by a month.

While the finance ministry anticipated payments for resort lease extension fees in full, parliament revised the budget for the fees to be paid in instalments over 18 months.

Jihad meanwhile noted that the International Monetary Fund’s (IMF) global economic outlook released in October predicted economic growth in 2014 and 2015 after the recovering from the global financial crisis and recession of 2007 to 2012.

Accordingly, domestic economic growth in 2014 was expected to be 8.5 percent, Jihad said, while the forecast for 2015 is 10.5 percent – driven by tourism, telecommunications, and transport.

The tourism industry is expected to grow by 8 percent with 1.5 million tourist arrivals, he added, while the inflation rate has meanwhile remained steady at 1.4 percent as of September.

On the balance of payments, Jihad revealed that the current account deficit would reach US$290 million or 10 percent of GDP, although it is projected to decrease to US$215 in 2015.

The official reserve at the end of 2014 is expected to be US$445 million – projected to rise to US$460 million next year.

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Auditor general’s position opened for applications

The President’s Office has this morning called for applications for the auditor general’s post after controversial changes to the Audit Act last week.

Incumbent Niyaz Ibrahim has told local media he will not be applying for the post, intending instead to challenge the constitutionality of the amendments which require the president to reappoint an auditor within one month.

The announcement was published in the government gazette today and will be open until 3pm on Monday, November 10. Forms are available on the President’s Office website.

The opposition Maldivian Democratic Party is also considering challenging the legality of the amendment, introduced as part of changes to legislation bringing statutes in line with the 2008 Constitution.

Proposing the motion, Progressive Party of Maldives (PPM) MP Ahmed Thoriq noted that the Audit Act was passed in 2007 before the ratification of the current Constitution and did not specify the responsibilities, mandate, qualification and ethical standards of the auditor general.

The amendment was passed last week, the same day the auditor general signed a damning report into an alleged US$6 million corruption scandal involving Minister of Tourism and PPM deputy leader Ahmed Adeeb.

Adeeb has labelled the report political motivated, suggesting an attempt to defame him by his political opponents.

Minivan News understands former Deputy Speaker and PPM MP Ahmed Nazim was involved in leaking documents related to the case to online news outlet CNM, which first broke the story of the Anti-Corruption Commission investigating the transactions.

In an interview with Haveeru yesterday, Niyaz denied being influenced by the Dhiggary MP Nazim, stating that their relationship during Nazim’d time as head of the Majlis’ financial committee was not in any way unusual.

Both Niyaz and his family have received death threat since the release of the report.

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Indian External Affairs Minister meets with Foreign Minister Dunya Maumoon

Indian External Affairs Minister Sushma Swaraj met with Foreign Minister Dunya Maumoon last night (November 3) during her transit halt in the Maldives on her travels back to India from Mauritius.

At the meeting both Ministers discussed matters of bilateral importance, including upcoming projects in the Maldives to be executed with India’s assistance.

Ms Swaraj also extended Victory Day greetings to all Maldivians – celebrated annually to commemorate the heroes who defended the country during the failed coup attempt in November 3, 1988 – while reiterating India’s strong commitment towards the prosperity, stability, and security of the Maldives.

India was the first to respond during the attack on the capital Malé by deploying 1500 paratroopers and 3 warships after a distress call from the then President Maumoon Abdulla Gayoom asking for assistance from India, UK, and the USA.

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President Yameen departs to two northern islands on an official visit

President Abdulla Yameen has travelled to Haa Alif Hoarafushi and Haa Dhaal Kulhudhuhfushi on an official visit today.

President Yameen is scheduled to officially launch the new sewerage system in at Hoarafushi and meet the citizens of Kulhudhuhfushi. He was accompanied on his visit by Environment Minister Thoriq Ibrahim and Tourism Minister Ahmed Adeeb.

While speaking to local news outlet Vnews, President’s Office Spokesperson Ibrahim Muaz said the president left on the official visit early this morning and is due to arrive back in the capital tomorrow.

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President thanks soldiers who fought for Maldives’ sovereignty on Victory Day

President Abdulla Yameen has extended his gratitude to soldiers and members of the public who have fought for the sovereignty of the country on the occasion of Victory Day.

The holiday is celebrated annually on November 3 to commemorate the failed coup by Maldivian political dissidents and Tamil mercenaries in 1988.

“The President said that the key to victory in the November 3rd terrorist attack was unity and harmony among the Maldivian people,” read a statement from the President’s Office.

President Yameen urged Maldivians to foster the spirit of cooperation and to defend the nation’s independence and sovereignty against enemies within who would seek to allow outside forces to influence the nation.

He also called upon Maldivians to stay away from irreligious activities and “disruptive” influences.

The attempted ousting of then President Maumoon Abdul Gayoom – President Yameen’ half brother – 26 years ago was repelled with a combined effort from the Maldives National Defense Force (MNDF) and Indian troops.

November 3, 1988

The attempt to overthrow Gayoom’s then-ten year regime was formulated in Sri Lanka by two Maldivians – Abdulla Luthfee and Sikka Ahmed Ismail Manik – who requested assistance from Tamil secessionist organisation the People’s Liberation Organisation of Tamil Eelam (PLOTE).

PLOTE reportedly provided the Maldivians with a raiding team of 80 mercenaries with which they sailed to the Maldives in sea trawlers, arriving in the capital Malé in the early morning hours of November 3, 1998.

After securing Hulhulé airport with little to no opposition, the rebels landed in Malé in front of MNDF headquarters where they met heavy resistance from Corporal Hussain Adam, a young officer who was guarding the main gate that morning.

Corporal Hussain Adam died from multiple gunshot wounds in a small guard post on the side of the gate from where he laid defensive fire, weakening the offensive until he ran out bullets. Corporal Adam died after calling out for more bullets so he could lay covering fire in order to enter the safety of the headquarters.

Meanwhile, President Maumoon requested assistance from numerous countries – including India, the UK and the USA – after having himself escaped a group of rebels sent to capture him. India was the quickest to respond to the distress call, deploying 1500 paratroopers to the Maldives.

The rebels quickly fell into disarray after the resistance from the MNDF gate and began looking for ways to escape the island. They eventually seized the vessel, MV Progress Light and started sailing towards Java before changing course towards Sri Lanka. They took with them a group of hostages, including the transport minister and his wife.

Progress Light was soon intercepted by Indian Navy vessels INS Godhavari and INS Betwa. After some resistance – including the murder of 5 hostages to discourage the strong offensive from the Indian Navy vessels – the rebels surrendered after their vessel sustained irreversible damage.

Prosecution and disappearance of Luthfee

Luthfee, along with the other Maldivians involved, was captured by the Indian Navy and handed over to the Maldivian Government who charged them with terrorism and sentenced them to death. The sentence was later amended after pressure from the Indian Government, with those charged receiving life imprisonment instead.

In 2010, however, Luthfee disappeared while in India for medical reasons. The home minister at the time, Mohamed Fayaz, told Minivan News that Luthfee was authorised to go to India in 2009 and was supposed to return by January 2010.

The Progressive Party of the Maldives, headed by former President Gayoom, accused then President Mohamed Nasheed’s administration of setting Luthfee free.

Current Home Minister Umar Naseer today expressed his confidence in finding Luthfee, suggesting that he was currently residing in Sri Lanka under a false identity.

“What happens is it’s different to hunt him down because it’s a foreign country. Our police officers have to go there and work. As far as I know, Luthfy was last seen in Lanka,” said Umar.

The Maldives Police Service has previously placed a bounty of MVR75,000 (US$4,870) on Luthfee’s head – to be given to anyone who aids the police in finding him.

In a testimony made public today by Haveeru, Luthfee accused the Senior Undersecretary of the Foreign Ministry at the time of the 1988 coup attempt, Ibrahim Hussein Zaki, of having prior knowledge of the attacks and of providing information of Gayoom’s travel schedule.

Zaki – also special envoy to President Nasheed – has denied the allegations, stating that he did not have any prior knowledge of the attacks and that he would hand himself to authorities for imprisonment if proven otherwise.

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Former President Nasheed to receive ‘Sylvia Earle Blue Mission’ award

Former President Mohamed Nasheed has departed for the United States this morning to accept the ‘Sylvia Earle Blue Mission’ award for 2014 in recognition of his climate change advocacy and efforts to raise public awareness.

According to the office of the former president, Nasheed will be presented the award at a ceremony in St Petersburg, Florida, on November 6. On the following day, the former president will deliver a speech on environment protection.

During the visit, Nasheed will also meet Dr Sylvia Earle, who was the first female chief scientist at the US National Oceanic and Atmospheric Administration.

Mission Blue is a global initiative of the Sylvia Earle Alliance – which was formed in response to Sylvia Earle’s 2009 TED Prize wish – and currently includes over 90 ocean conservation groups and organisations.

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MDP may challenge constitutionality of amendment to Audit Act

The opposition Maldivian Democratic Party’s (MDP) parliamentary group has decided to make a recommendation to the party’s national executive committee (NEC) to challenge the constitutionality of amendments brought to the Audit Act last week.

“The NEC will make a decision tomorrow,” MP Rozaina Adam said at a press conference this morning.

Under Article 143 of the Constitution, the Supreme Court and High Court has the jurisdiction “to enquire into and rule on the constitutional validity of any statute or part thereof enacted by the People’s Majlis.”

Rozaina argued that the amendment stipulating that the president shall reappoint an auditor general within 30 days was unconstitutional.

Progressive Party of Maldives (PPM) MP Ahmed Thoriq had proposed adding a clause to the audit law stating that the president shall nominate for parliamentary approval an individual or individuals to the post of auditor general within 30 days of ratifying the amendments.

The amendment was passed with 36 votes in favour and 22 against at Wednesday’s (October 29) sitting of parliament.

At today’s press conference, MP Imthiyaz Fahmy meanwhile stressed the importance of the public protesting the unconstitutional move.

Imthiyaz said he had learned that parliament’s Counselor General Fathmath Filza had also advised Speaker Abdulla Maseeh Mohamed that the amendment was unconstitutional.

President Abdulla Yameen ratified the amendments less than 24 hours after it was passed, he noted.

Imthiyaz said the haste with which the amendment was passed and ratified shows the PPM government’s eagerness to replace the auditor general following allegations of corruption made against the party’s deputy leader – Tourism Minister Ahmed Adeeb – in a special audit report of the Maldives Marketing and Public Relations Company (MMPRC).

Meanwhile, Auditor General Niyaz Ibrahim told newspaper Haveeru last night that he would also contest the constitutionality of the amendment at the Supreme Court.

The amendment contravenes the process specified in the Constitution for the appointment and removal of the auditor general, Niyaz contended.

Article 218 of the Constitution states that the auditor general could be removed from office “(a) on the ground of misconduct, incapacity or incompetence; and (b) a finding to that effect by a committee of the People’s Majlis, pursuant to article (a) and upon the approval of such finding by the People’s Majlis by a majority of those present and voting, calling for the Auditor General’s removal from office”.

Niyaz told the local daily that he does not intend to remain in the post even if the Supreme Court strikes down the amendment.

Following the release of the MMPRC special audit report, Niyaz revealed that death threats were sent to both himself and his family. Niyaz is currently on leave.

During last week’s parliamentary debate, PPM MP Thoriq said he proposed the amendment with reference to Article 211(b) of the Constitution, which states, “A statute shall specify the responsibilities, powers, mandate, qualifications, and ethical standards of the Auditor General.”

Thoriq noted that the Audit Act was passed in 2007 before the ratification of the Constitution the following year and did not specify the responsibilities, mandate, qualification and ethical standards of the auditor general.

PPM MP Ibrahim Waheed has meanwhile told local media that the post of auditor general became vacant with the president’s ratification of the amendments.

Waheed contended that as Niyaz was appointed under the 2007 audit law, a new auditor general must be appointed in accordance with the Constitution following the amendments to the Audit Act.

Article 210 of the Constitutions states, “The President shall appoint as Auditor General a person approved by a majority of the total membership of the People’s Majlis from the names submitted to the People’s Majlis as provided for in law.”

Waheed argued that Niyaz was appointed in the absence of a law passed after the adoption of the Constitution in August 2008.

“So the legal obligations and responsibilities of the present Auditor General will stop. And if he is willing to go ahead, he also has to apply to the post just like others. An Auditor General will be appointed under this constitution after the parliament approves the name sent by the president,” he was quoted as saying by Sun Online.

The 17th People’s Majlis had unanimously approved former President Mohamed Nasheed’s nomination of Niyaz Ibrahim to the post of auditor general in May 2011.

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