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Vice president continues search for investors during China visit

President Dr Mohamed Jameel Ahmed has attended the 9th China-South Asia Business Forum during his official visit to China, reiterating the government’s focus on increasing foreign investments and strengthening the economy.

Speaking at the event, Jameel stated that his government prioritised economic transformation, youth empowerment, and domestic security, read a statement on the official President’s Office website.

He further spoke of the government’s aim to encourage foreign investment and capital in order to implement the Yameen administration’s economic development programmes and projects.

President Abdulla Yameen has promised a number of ‘mega projects’ during his term, pledging legislation to create a more welcoming investor climate, and organising a landmark investment forum in Singapore in April in order to find potential foreign investors.

The vice president further stated that corporate China has shown interest in engaging in infrastructure development projects in the Maldives. He assured Chinese investors that the government would do all possible to ensure a “flexible and efficient investment climate”.

To this end, the government last week introduced legislation to create special economic zones (SEZ) in strategic locations, with Economic Minister Mohamed Saeed – also present on the China trip – suggesting that the move might help the country end its reliance on tourism.

Jameel noted that China has been the number one tourism market for the Maldives since 2010, predicting that the number of Chinese arrivals – accounting for one in every four tourists in 2014 – will continue to grow.

During the trip, Jameel has also attended the 2nd China-South Asia Expo, where he repeated his belief that foreign investment is crucial for economic growth, private sector development and wealth creation.

“Our government firmly believes that broad based, private sector-led growth is essential to achieving faster development progress and to transform the economy from where it is today,” he is quoted as saying.

The details of some of the ‘mega projects’ were explained to the Chinese audience, with Jameel discussing the  ‘iHavan’ project – a regional development project in the northern atolls, potential oil and gas exploration projects, and plans to redevelop the Ibrahim Nasir International Airport.

Last month, the Maldives Airports Company (MACL) signed an agreement with China’s state-owned engineering and construction company, Synohydro, to build a US$9 million parking apron at the Ibrahim Nasir International Airport.

In addition to the forums, Jameel also paid a visit to the Governor of Yunnan Province, H E Mr Li Jiheng.

At the meeting, discussions were held with regard to areas where the countries could increase cooperation, with the governor pledging to work with the Maldives to strengthen cooperation in a number of fields including renewable energy, science and technology, tourism, connectivity, economy and trade.

He further discussed the strengthening of bilateral ties with Vice Premier of China H E Wang Yang.

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PPM denies using presidential residence for party functions

Functions of the ruling Progressive Party of Maldives (PPM) held at the official presidential residence Muleeage are not funded from the state budget, President Abdulla Yameen has said.

Speaking to the press at a PPM event in Muleeage on Thursday night (June 5), President Yameen reportedly said he did not believe using the official residence for meetings or party activities amounted to misuse of state resources.

The president’s remarks followed Auditor General Niyaz Ibrahim’s insistance last week that state property could not be used for party activities.

Niyaz told local media that Muleeage could only be used either for functions held by the president or the first lady in their official capacity or for meeting invited guests.

Recent signing ceremonies to welcome high-profile new members to the ruling party – most recently Independent MP Abdulla Khaleel and Environment Minister Thoriq Ibrahim – have been held in Muleeage.

President Yameen told reporters Thursday night that while he respected the auditor general’s opinion he did not believe using Muleeage for party functions was a problem.

“No money from the government’s budget or Muleeage budget is spent for any work done here. If there’s a tea or anything else here, we make the expenses outside the budget. So this is not a resource that is consumed,” Yameen was quoted as saying by newspaper Haveeru.

Yameen said he meets members of the public as well as MPs at Muleeage, adding that meeting MPs at the President’s Office to discuss parliamentary affairs would be “too official.”

“If expenses are not made from the government budget, it would be best if the place [Muleeage] is not made too much of an issue,” he suggested.

After assuming office in November, President Yameen had announced that he would continue to live in his private residence. However, the budget allocated for the official residence was increased by MVR2 million (US$130,208) in the state budget for 2014 – rising to MVR19.1 million (US$1.2 million).

In April this year, parliament approved amendments to to the law governing renumeration and benefits for the president and vice president making it mandatory for the state to cover expenses of the pair’s private residences should either choose not to live in the official residences.

“Biased and misleading”

Meanwhile, the PPM also put out a press statement last week contending that the auditor general’s remarks were biased, misleading and politically motivated.

“This party’s activities have not been held in the president’s official residence Muleeage so far,” the party claimed.

The party also contended that the president holding meetings in Muleeage with various individuals could not be considered “a political party activity.”

Alleging that a number of party activities and functions – without the participation of the president – had been held in Muleeage during the administration of former President Mohamed Nasheed, the PPM noted that “the auditor general had not said anything about it” at the time.

The press release went on to criticise the auditor general for not objecting to political party activities allegedly held at the Malé City Council premises as well as the use of the Dharubaaruge convention centre by protesters of the opposition Maldivian Democratic Party (MDP) in the wake of the controversial transfer of power in February 2012.

“Therefore, as this party believes that the interviews given by the auditor general to the media saying that the president’s official residence is being used for this party’s activities were biased and political, we express deep concern about the matter,” the press release stated.

The statement concluded by calling on the auditor general not to make statements without “properly considering the truth of the matter.”

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Housing Minister Muiz joins MDA

Housing Minister Dr Mohamed Muiz and Deputy Minister Abdulla Muttalib have signed for the Maldives Development Alliance (MDA), local media reports.

Muiz had been a senior member of the religious conservative Adhaalath Party (AP).

According to Sun Online – owned by MDA Leader Ahmed Siyam Mohamed – Deputy Minister of Education Ismail Shafeeu and former Kooddoo Fisheries Managing Director Mohamed Muttalib have also signed for the government-aligned party.

Following the expulsion of the Jumhooree Party from the ruling coalition, the MDA remains the only coalition partner of the ruling Progressive Party of Maldives.

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Government announces new political appointees

President Abdulla Yameen has this week announced a number of new political appointees.

Abdul Rasheed Nafiz has been reappointed as chairman of the Transport Authority – having been appointed to the post previously during President Mohamed Waheed’s administration before being removedby the current government in January.

Former parliamentarian for the Hanimaadhoo constituency Mohamed Mujuthaz has been appointed to the post of state minister at the President’s Office. Mujuthaz is a member of the ruling Progressive Party of Maldives (PPM).

Former footballer Shah Ismail has been appointed deputy minister of youth and sports. Shah served as the ministry’s sports advisor during the Waheed administration.

Meanwhile, the PPM’s Secretary General Mohamed Zuhair has been appointed deputy minister of finance and treasury.

Last week Yameen proposed three names as heads of diplomatic missions, nominating Abdulla Hameed as Non-Resident Ambassador to the United ‎Arab Emirates and the State of Kuwait, Dr Mohamed Asim as Non-Resident High Commissioner to ‎Bangladesh, and Ahmed Shiaan as Ambassador to Belgium and the European ‎Union, and as Non-Resident High Commissioner to the United ‎Kingdom.

Both the Bangladesh and the UK missions have had their resident high commissioners removed as the Foreign Ministry seeks to reduce costs.

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EPA against airport development on Farukolhu

The Environmental Protection Agency (EPA) has rejected a proposal to develop an airport on an environmentally sensitive area in Farukolhu Island in northern Shaviyani Atoll.

“We believe the damage caused to such an environmentally sensitive area does not justify the project,” EPA’s Director General Ibrahim Naeem told Minivan News today.

Farukolhu has extensive mangroves and is a nesting ground for several species of birds. Sharks and rays frequent the island’s bay for breeding.

In June 2013, Minister of Tourism Ahmed Adeeb and recently dismissed Minister of Transport Ameen Ibrahim leased out the island to Araam Travels Pvt Ltd to establish an airport.

The project – to be completed within 15 months – would boost tourism in the area, Adeeb said. He identified lack of transport infrastructure to be the biggest obstacle to tourism in Shaviyani Atoll.

The company was awarded Gaaf Alif Atoll Innahera Island for resort development under a public-private partnership agreement to subsidize the airport venture.

The US$ 4 million project was to reclaim 1.8 hectares from the island’s mangrove sites to construct airport runway. Generators, desalination plants, sewerage and drainage facilities and a jetty were also planned.

The EPA rejected the proposal based on an environmental impact assessment. Araam Travels can appeal the EPA’s decision with Minister of Environment and Energy Thoriq Ibrahim.

If the minister upholds the EPA’s decision, the government may have to designate another island for airport development.

According to local media, a company owned by Health Minister Dr Mariyam Shakeela’s husband, Mohamed Ibrahim Didi, owns a stake in Araam Travels.

The EPA recently halted reclamation in Dhaal Atoll Meedhoo Island for violating environmental regulations.

Established in 2009, the EPA functions under the supervision of a governing board within the Ministry of Environment and Energy. The agency has published a list of protected areas and a separate list of ‘environmentally sensitive areas.’

Local environmental groups have spoken out against the dredging of a mangrove site in Haa Dhaal Atoll Kulhudhuffushi Island for airport development.

There are nine airports in the Maldives, of which five are domestic airports.

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Political adjustments – The Weekly Review

May 31st – June 6th

Following the break-up of the Progressive Coalition, this week saw a resulting adjustment of party affiliations after an initial purge of Jumhooree Party (JP) appointees.

After the ruling Progressive Party of Maldives (PPM) followed through on threats to remove JP members – the most notable being Transport Minister Ameen Ibrahim – Environment Minister Thoriq Ibrahim announced his decision to switch to the PPM.

After having picked up three of the five MPs elected as independents since the March elections, the PPM rounded off their new signings this week with Nilandhoo MP Abdulla Khaleel.

This addition brings the party’s parliamentary group up to 38 MPs, giving it a simple majority alongside its remaining ally, the Maldivian Development Alliance.

A final report from the EU’s Majlis election observers this week called for adapted legislation to clear up the issues of jurisdictional overlap and campaign financing which blighted recent polls.

While the Majlis made preparations for the assembly of its standing committees this week, former President Mohamed Nasheed told diplomats in Colombo that a constitutional adjustment to a parliamentary model of governance would resolve the perennial issue of failed coalitions.

Nasheed also made known his intention to stand for the Maldivian Democratic Party leadership in August, prompting senior member ‘Reeko’ Moosa Manik to reiterate calls for new leaders to emerge.

The Syrian civil war continued to force itself onto the agenda, literally in the case of an anti-war hacker who infiltrated over 100 hundred government websites in what experts saw as a result of poor security measures.

Less direct threats to the country were depicted by Home Minister Umar Naseer during Martyrs’ Day, suggesting that the country ought to be prepared for “invisible” threats to its nationalism and its faith.

The government’s rhetoric and response to recent news of home-grown jihadis prompted accusations that it was tacitly supporting such activity, as did the invitation of controversial  Sheikh Ibrahim Shameem Adam to the police force’s Martyrs’ Day event.

The jihadi Bilad Al Sham Media group continued to reveal details of Maldivians fighting in Syria – mocking the police’s attempts to investigate, while an MoU signed with the UN will see Maldivian troops deployed in peacekeeping missions over the next two years.

Elsewhere, the police launched a special operation to crack down on a spate of robberies while the Supreme Court upheld a prior decision to reinstate an officer dismissed in relation to a rape case.

After investigations into the police’s handling of the Anbaraa, Amnesty International called for an investigation into allegations of brutality, and Hope for Women expressed outrage at the publication of an article in local media which suggested underage girls were voluntarily engaging in prostitution.

The government this week rejected claims of negligence at Fuvahmulah Hospital after a series of disturbing mishaps within a few days.

Responsibility for the failure of Laamu Gan’s sewerage system was also deflected by government departments after the local council accused it of offering on assistance in what it labelled a “health disaster”.

In Malé, the city council revealed it was relying on private donations to pay for pre-Ramadan mosque repairs after the government had failed to provide the required funds.

In other news, the President’s Office assured that asylum seekers breaching Maldivian law abroad would be assured of prosecution upon their return to the country.

President Abdulla Yameen’s promise to create a more business-friendly environment for foreign investors moved a step closer with the introduction of the special economic zones bill.

Yameen pledged respect for the local ecosystem during any prospective development projects during a speech to mark World Environment Day.

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Government submits bill on special economic zones

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

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

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

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

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

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

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

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

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

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

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

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

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

“Freeholds”

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

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

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

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

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

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

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BML and Islamic Bank offer advise for Maldivians travelling abroad

The Maldives Islamic Bank has announce provisions to sell US dollars to Maldivians travellign abroad, while the Bank of Maldives (BML) has advised those journeying abroad not to carry cash.

A press release from the Islamic Bank said that, from today (June 5), customers with a valid air ticket and national ID could purchase up to US$500.

A heavy import-export imbalance in the Maldives results in a perennial foreign currency shortage, while a dominant tourism sector – which deals almost exclusively in US dollars – results in a weak local currency.

BML has meanwhile advised customers that using its debit and credit cards abroad is recommended.

BML has found that some customers become frustrated if their debit or credit card appears to have been declined when abroad. Cards will almost always be accepted if the amount being transacted is within the cardholder’s limit.

BML visa debit card holders can currently withdraw up to US$200 a day, while point of sale transactions have a US$400 limit, explained today’s press release.

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Maldivians in Ukraine taken to safety with Indian assistance

Eighteen Maldivians living in Luhansk, Ukraine were today transported to Kiev following escalated violence in the region, the Ministry of Foreign Affairs has said.

According to the ministry the transportation was carried out with assistance from the Indian government.

“Following the violence in Ukraine, Ministry of Foreign Affairs is closely monitoring the situation of Maldivians living there with a special attention to their safety, ” read a statement.

Speaking to ‘Haveeru‘ today, the Indian High Commissioner to the Maldives, Rajeev Shahare said that it was proof that “India is always prepared at every instance Maldives seek assistance”.

He told Haveeru that Indian Embassy in Ukraine has arranged accommodation for Maldivians and that if further assistance is required India will provide that as well.

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