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Projects awarded to MTCC increases fourfold

The state-owned Maldives Transport and Contracting Company (MTCC) has said that the number of projects awarded to the company has increased fourfold in the first quarter of 2014 compared to the same period last year.

MTCC revealed in its first quarterly report for 2014 made public yesterday that 18 projects have been awarded to the company this year while only four were awarded in the first quarter of 2013.

While the company completed several harbour and construction projects this year, MTCC noted that difficulties in importing construction material from India had stalled progress.

Among the projects completed by the MTCC during the first quarter included a harbour construction project in Faafu Bilehdhoo, deepening of a channel in Haa Alifu Kelaa, harbour construction in Laamu Kunahandhoo, and development of the Thaa Thimarafushi Domestic Airport.

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Tourist arrivals increase six percent in March

Tourist arrivals in March increased six percent in annual terms but declined five percent in monthly terms, reaching 105,560 guests during the month, according to the Maldives Monetary Authority’s (MMA) monthly economic review released yesterday (April 30).

“The annual increase was due to the rise in the number of arrivals from China which offset the decline in arrivals from Europe,” explained the central bank’s monthly update of “developments in key economic sectors”.

Total bednights meanwhile rose two percent in annual terms, “while the average duration of stay declined marginally.”

The occupancy rate also decreased slightly compared to March 2013, falling to 82 percent. The report noted that the operational capacity of the tourism industry rose during the review month.

The Tourism Ministry meanwhile revealed yesterday that tourist arrivals in the first quarter of 2014 increased 9.7 percent compared to the same period of 2013, reaching a total of 321,561.

Europe retained the largest market share, accounting for of 51.3 percent of all arrivals to the Maldives with a total of 321,561 tourists during the first quarter of the 2014, the Tourism Ministry stated.

Asia and the Pacific recorded a growth rate of 24.4 percent at the end of first quarter of 2014, bringing in an additional 26,606 tourists to reach a total of 135,839.

The region accounted for 42.2 percent of arrivals to the Maldives at the end of first quarter of 2014.

According to the Tourism Ministry, the Chinese market expanded by 24 percent with an additional 16,960 tourists compared with the same period of 2013.

Statistics from the Tourism Ministry show that 331,719 Chinese tourists visited the Maldives last year, which was a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

The Maldivian economy is largely dependent on tourism, which accounted for 28 percent of GDP on average in the past five years, and generated 38 percent of government revenue in 2012.

Inflation

Meanwhile, in the second largest industry, the volume of fish exports as well as earnings “fell significantly by 80 percent and 66 percent respectively” compared to March 2013.

The decline was accounted for by the fall in the volume of and earnings from “fresh, chilled or frozen tuna exports.”

“The International Monetary Fund (IMF) commodity price index fell marginally in monthly and annual terms during March 2014,” the central bank noted.

“The monthly decline was mainly due to the fall in both petroleum and metal prices which off set the increase in food prices during the review month.”

The price of crude oil in March 2014 was US$104 per barrel.

The inflation rate in the Maldives meanwhile decelerated to 2.3 percent in March from 3.4 percent the previous month.

“This was largely contributed by the slower growth in food prices, especially fish, and also due to the moderate growth in the prices charged for housing and utilities,” the report explained.

“Similarly, the rate of inflation declined marginally in monthly terms during March 2014, which was also due to the slower growth in fish prices.”

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Nasheed warns of “imminent sovereign debt crisis”

Former President Mohamed Nasheed has warned of a sovereign debt crisis if the Maldives is forced to pay US$1.4 billion in compensation to GMR over the abrupt termination of a concession agreement to develop Ibrahim Nasir International Airport (INIA).

Nasheed also reiterated calls for the government to reverse the decision to cancel the contract in December 2012.

“The Maldives is now known around the world as a country that doesn’t keep its promises or honour the contracts. The airport fiasco will hit each and every Maldivian because banks won’t lend money and companies won’t invest in our country without demanding much higher rates of interest,” Nasheed was quoted as saying in a press release issued yesterday.

“By now, Maldivians should have been looking forward to a world-class, new airport, to rival Kuala Lumpur, Singapore, and Hong Kong. Instead we have nothing but an abandoned building site. The actions of President [Abdulla] Yameen and [Dr Mohamed] Waheed have caused this crisis and Maldivians will be paying for their recklessness for decades to come” he added.

The press statement insisted that international best practices were followed in the bidding process – which was overseen by the World Bank’s International Finance Corporation (IFC) – while the Anti-Corruption Commission (ACC) has since ruled out corruption in the airport deal.

Nasheed’s remarks comes on the heels of the opposition Maldivian Democratic Party (MDP) – of which he was recently appointed acting president – threatening to terminate any new agreements concerning the airport should the party regain power.

Failure to reinstate the airport development contract would cause the Maldives to “suffer unforeseeable risk and irrevocable harm,” the party said in a statement yesterday.

Compensation owed “in any case”

Following President Abdulla Yameen publicly conceding that the Indian infrastructure company was owed compensation, GMR said it intends to stick to the US$1.4 billion compensation claim.

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid,” the company said in a statement on Friday (April 26).

Asked by reporters a day earlier if he was confident the outcome of the arbitration would be favourable for the Maldives, President Yameen said: “The reality we have to accept is that a government with full sovereign powers made an agreement with a foreign party and leased [the airport]. This is a government, and what preceded this was a government as well. So believe we have to pay them some kind of financial compensation.”

If the judges on the arbitration panel accept the government’s arguments for nationalisation or expropriation, Yameen said the compensation owed to GMR could be smaller.

“We’re going to have to provide compensation in any case,” he conceded.

Yameen however contended later that GMR was owed US$300 million as compensation for its investment as well as upgrades to the airport.

Yameen had previously said that the out-of-court settlement sought by GMR was too high, and that he would await the outcome of the arbitration proceedings, which could take up to another two months.

“Sovereign debt”

The US$1.4 billion sought by GMR at the Singapore Court of Appeal for “wrongful termination” of the 25-year contract exceeds the annual state budget whilst the national debt is expected to rise to MVR31 billion (US$2 billion) this year.

Nasheed meanwhile warned that “the consequences of the outcome of the arbitration will drive the Maldivian economy to the brink, leading to major sovereign debt crisis.”

The statement noted that estimated GDP for 2014 was US$2.5 billion with an external debt of US$868 billion while the Maldives presently “receives less than US$30 million in grant aid.”

“Coupled by the budget deficit and domestic debt crisis, we are looking at a heavy burden on our children and grandchildren. It would mean by the end of 2014, debt will increase from 25 percent of GDP to 88 percent of GDP,” it added.

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“Highly politicised and corrupt” judiciary unfit to decide life and death: Maldivian Democracy Network

The Maldivian Democracy Network (MDN) has condemned the Maldivian government’s decision to implement the death penalty in a press release issued on Wednesday.

The MDN expressed “great concern” over the move to break a sixty-year de facto moratorium on the death penalty in the country. New regulations allow for children as young as seven to be sentenced to death.

“Given the state of the Maldivian judiciary, which is also perceived to be highly politicised and corrupt, it is most concerning that as grave a matter as life and death of humans is to be decided by it,” the MDN stated.

Adopted on April 27, the new regulation provides for the use of the death penalty for the offence of intentional murder, including when committed by individuals under the age of 18. The age of criminal responsibility in the Maldives is ten, but for hadd offences, children as young as seven can be held responsible. Hadd offences include theft, fornication, adultery, consumption of alcohol, and apostasy.

The MDN’s statement closely follows a statement by the Office of the High Commissioner for Human Rights (OHCHR) in which the organization called for the practice to be abolished.

“We urge the Government to retain its moratorium on the use of the death penalty in all circumstances, particularly in cases that involve juvenile offenders and to work towards abolishing the practice altogether,” said Ravina Shamdasani, spokesperson for the OHCHR.

“We equally encourage the Government to repeal the new regulations and other provisions that provide for the death penalty,” she told reporters.

A step backwards

The regulation on the implementation of the death penalty and the penal code pushes the Maldives backwards in an age when several countries in the world, including Muslim nations, are moving away from it, the MDN said.

The lack of legislation on evidence, witness protection and criminal procedures lead to a systematic failure to do justice and as a result innocent lives may be lost, the organization noted.

“The Maldivian criminal justice system lacks crucial legislation on evidence, witness protection and criminal procedures, leading to structural gaps and systematic failures to do justice as independent observers have noted in the past.

“A catastrophic result of this may be the loss of an innocent life, which is neither replaceable nor correctable.”

The MDN also highlights the possibility for minors to be sentenced to death as a major concern, and violation of the minor’s rights.

“We are also deeply concerned the regulation violates the rights of the child. Under the Convention on the Rights of the Child and International Covenant on Civil and Political Rights, a death penalty may not be imposed for a crime committed by a person under 18 regardless of his/her age at the time of the trial or sentencing or of the execution of the sanction.

“In addition to this, research shows that capital punishment does not deter murder any greater than the threat and application of lesser punishments. Maldivian Democracy Network implores the government to reconsider the decision to implement the death penalty in the Maldives, and make meaningful efforts towards prevention of crime and the protection of human life,” the statement concluded.

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President’s Office removes ‘socially unacceptable’ film awards pictures from website

The President’s Office has removed “socially unacceptable” pictures taken at Tuesday’s Maldives Film Awards from its website.

Presidential Spokesperson Ibrahim Muaz Ali told Minivan News the pictures had been removed on Wednesday evening following local media and social media criticism of “pictures against social norms.”

President Abdulla Yameen Abdul Gayoom and Defense Minister Ahmed Nazim attended the event held at the Olympus Theater in Malé. The ceremony was broadcast live on state broadcaster Television Maldives (TVM).

“We felt these pictures should not be on the President’s Office website. They are against social norms,” Muaz said.

Muaz refused to provide further details on which pictures were removed. But Minivan News understands they were of female film stars in revealing clothes.

Some commentators criticized the photos on religious grounds, while others pointed to the administration’s “hypocritical” treatment of female detainees arrested from a music festival on Anbaraa Island and accused of wearing revealing clothing on April 18.

The women were wrapped in sarongs when they were presented at the Criminal Court for remand hearings.

Comparing the film awards and Anbaraa music festival, one Facebook commenter said: “When the girls wore shorts and danced at Anbaraa it became a problem. But its OK when adult women wear revealing clothes and when some dance infront of political leaders. Raid Olympus just as they raided Anbaraa. This is why I say how they do things do not make sense.”

One commenter on Channel News Maldives said they were saddened by President Yameen’s presence at the event, while another said: “Those who raised their voices and cried in the name of religion and nation are now speechless, their voices silenced, mute.”

Facebook user, Shifa Aishath, called for Home Minister Umar Naseer’s resignation: “Girls wearing shorts needed sarongs to cover them. What about the so-called celebrities? End discrimination! Umar resign!”

Political Analyst Azra Naseem said the treatment of the young people on Anbaraa Island “is a supreme example of the hypocrisy that defines Maldives.”

“It is one of the worst kept secrets of Maldivian politics that most of the Maldivian cabinet, and a substantial number of parliamentarians in the Majlis all drink alcohol and/or take recreational drugs. Several government Ministers not only drink but also facilitate parties and raves for young people they know. On the more sleazy side of things, several do so with the goal of getting sexual favours from young people in exchange for the illegal substances provided,” she said in a comment piece.

Referring to the Criminal Court’s stalling of a court case against MP Ahmed ‘Sun Travel’ Shiyam and state failure to investigate Supreme Court Judge Ali Hameed’s alleged appearance in a series of sex tapes, Azra said: “And the hypocrisy of those meting out such punishment, while happily indulging in worse behaviour themselves, boggles the mind perhaps even more than some of the substances said to have been available at Anbaraa could have.”

In May 2013, the police detained a 16 year old girl in Malé for “dressing inappropriately.”

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Strong wind and heavy rain forecast over the next 24 hours

Heavy rain and thunderstorms are expected over the central and southern areas from 10:00 a.m. to 10:00 p.m. today, Maldives Meteorological Service (MMS) has said.

Thunderstorms are expected over the area between Haa Alif and  Gaafu Dhaalu atoll today (May 1), and the MMS have issued a White Alert.

In addition, the Met Office has forecast strong winds and heavy rain in most parts of Maldives within the next 24 hours.

The country is expected to experience winds up to 40 mph hour during storms. Northern atolls can expect heavy gusts at speeds of 15 miles per hour (mph) during showers and southern atolls can expect winds between 10 mph and 20 mph during showers, according to local media Sun Online.

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Suspect in custody over Hulhumale’ stabbing

Police have taken a 20-year-old male suspect into custody yesterday in relation to a stabbing in Hulhumale’ on Monday night (April 26), local media reports.

Ibrahim Ausham, 25, was treated at the Hulhumale’ hospital after he was reportedly stabbed four times near the ‘China flats’ in Hulhumale’.

Police declined to reveal further details as the case was under investigation.

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GST from telecommunication services comes into effect

A six percent Goods and Services Tax (GST) on telecommunication services come into effect as of 12:00 a.m. today, May 1, 2014.

The eleventh amendment bill to the Goods and Services Tax Act, allowing the collection of a 6 percent taxation on telecommunication services, was published in the Government Gazette on March 25.

The tax applies to all communication services except for postal services provided by a postal service provider registered with the relevant Government authority or State institution, according to the Maldives Inland Revenue Authority (MIRA) website.

The tax for telephones will be included in the telephone bills, or added to the top-up vouchers.

The introduction of telecom GST was an initiative taken by the new government to increase revenue.

The State’s principal tax collector, MIRA estimates to gain MVR 110 million through Goods and Services Tax this year, reported local media Sun Online.

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Revenue collected by customs increased 17 percent in first quarter

Total revenue of the Maldives Customs Service (MCS) in the first quarter of 2014 increased 17 percent compared to the same period the previous year.

The MCS revealed yesterday that a total of MVR424.9 million worth of custom duties and other charges – fees and fines – was collected in the first quarter this year while MVR363.3 million was collected in the first quarter of 2013.

“The total CIF [cost, insurance and freight] value of goods imported has also increased by 11 percent during 2014Q1, when compared to 2013Q1,” MCS said.

“Total imports measured MVR7.2 billion during 2014Q1, while it was MVR6.5 billion during the same period last year.”

One-third of the MVR7.2 billion worth goods imported during the first quarter represented importation of petroleum products.

“The second most imported category of goods was food items, which accounted 20 percent of total imports, followed by machinery and electronics which shared 14 percent of total imports,” MCS noted.

“Exports, on the other hand, have declined by 25 percent  during 2014Q1, compared to 2013Q1. Total FOB value of goods sold abroad valued MVR 752.5 million in 2013Q1. However, this figure decreased to MVR 562.2 million in 2014Q1. Approximately 70 percent of goods imported during 2014Q1 were sourced from 5 countries and 64 percent of goods exported from Maldives were bought by 5 countries.”

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