Category:

Maldives pays final respects to Nelson Mandela

Minister at the President’s Office Hussain Shareef has paid final respects to former South African President Nelson Mandela on behalf of the Maldivian people.

The former president lay in state in Pretoria for three days, before being flown to his home town of Qunu for burial. A reported 100,000 people journeyed to see the president as he lay in the Union Buildings of the country’s administrative capital.

Shareef offered condolences to Mandela’s family on behalf of President Abdulla Yameen and Vice President Dr Mohamed Jameel Ahmed – both of whom had signed the Maldives’ own book of condolences for the leader Yameen described as“the greatest statesman the world has seen”.

Yameen ordered the Maldives national flag to be flown at half-mast the weekend following Mandela’s passing.

Likes(0)Dislikes(0)

Week in review: December 8 – 14

This week saw the repeatedly delayed budget introduced to the People’s Majlis. Coming in at MVR17.5billion rufiya, the budget – purportedly revised to incorporate President Yameen’s austerity measures – eclipses all previous spending programmes.

A report from the World Bank made clear the tough task the new government faces in nursing the economy towards good health. The report stated that the Maldives continues to spend “beyond its means”.

Noted areas of excess include a high civil service wage bill, with the World Bank suggesting that the government’s short term financing measures risked further damaging the economy.

The exploitation of the country’s persistent shortage of dollars by criminal elements was exposed this week as police reported the activity of thieves masquerading as legitimate exchangers of currency.

When accused of illegally obtaining a budget support loan, recently reappointed Finance Minister pleaded desperation. Abdulla Jihad argued that he had sidestepped the onerous approval procedure to avoid a financial catastrophe in May 2012.

Yameen took fitful steps towards fulfilling his campaign’s austerity pledges this week, ordering the reduction of salary for two grades of state minister – though the cut was only around 12.5 percent instead of the 30-50 mooted before the election.

Similarly, the new government appeared to have reneged on its pledge to provide cash-handouts to old-age pensioners – opting for an insurance scheme instead.

Government performance

Former President Maumoon Abdul Gayoom, however, appeared pleased with his half-brother’s performance thus far, praising his handling of Indo-Maldivian relations while the Defence Minister discussed enhanced military cooperation with Indian counterparts.

The indistinct ‘National Movement’ this week suggested ulterior motives in the bureaucratic thwarting of its plan to celebrate the eviction of Indian infrastructure giant GMR, whose deal to develop the international airport was prematurely terminated twelve months ago.

Elsewhere, the coalition member Adhaalath Party, quashed rumours that it had parted ways with Yameen’s government this week, despite previous reports that it intended to campaign independently in the upcoming local and parliamentary elections.

The ‘roadmaps’ for the first one hundred days of the government continued to be drawn this week, with comprehensive lists now produced in the areas of  transport, health, and immigration.

Whilst the Transport Ministry has promised finished plans for the redevelopment of Ibrahim Nasir International Airport, the health minister talked of significant changes to the IGMH public hospital.

The police service also joined in the policy pledging, with its own promises to improve its service and to build public trust in the institution. The Police Integrity Commission this week suggested that the prosecutor general assist in this task by prosecuting two officers it had found to have been negligent during the arson attack which destroyed Raajje TV in October.

The vacancy at the head of the PG’s Office did not stop the filing of charges in the 8 year old ‘Namoona Dhoni’ case. Pro-democracy activists – prevented from reaching Malé for a national demonstration – now face fresh charges of disobeying lawful orders.

Trust between the Supreme Court and the judicial watchdog appeared scant this week as the Chief Justice baulked at the JSC’s re-shuffling of a number of senior judges. Members of the JSC were later reported to have rejected Chief Justice Faiz’s legal objections.

Corruption and human rights

Confidence in the transparency of the public in public institutions also appeared to be on the wane this week, as Transparency Maldives’ Global Corruption Barometer (GCB) survey revealed that 83 percent of its sample felt corruption to have increased or stayed the same over the past two years.

Despite only appearing mid-table in the list of organisations perceived as being corrupt, the MNDF reacted disproportionately to the local media’s reporting of the survey, labelling CNM’s article on the survey “highly irresponsible journalism”.

The Anti Corruption Commission announced the discovery of graft in the capital’s largest housing programme. The highest number of bribes reported in the GCB was in the area of land services.

International human rights day was observed by the government and civil society in the same week the president ratified the country’s first anti-human trafficking bill. Whilst welcoming the new law, both the Human Rights Commission and the immigration department suggested that institutional strengthening would need to accompany a successful anti-trafficking policy.

Finally, this week saw the release of a United Nations Population Fund report, calling on the state to review existing practices related to sexual behaviour within the judicial process, law enforcement, education and health sectors.

The report stated reproductive health services ought to be expanded to non-married couples as evidence makes clear that the assumption sex does not, or should not, occur outside of marriage is increasingly out of step with social realities.

Likes(2)Dislikes(0)

Government reneges on cash handouts for pensions, offers insurance scheme instead

The government will provide the previously pledged old-age pension of MVR5000 per month (US$325) through an insurance scheme rather than in cash handouts, Finance Minister Abdulla Jihad has told the People’s Majlis Budget Committee.

However, individuals over 65 will continue to receive the current monthly pension of MVR2300 ($149) next year, a Finance Ministry official told Minivan News.

In addition to raising the pension from MVR2300 to MVR5000, President Abdulla Yameen had made last minute promises including “unlimited” health care under the state’s health insurance scheme Aasandha, designating a general practitioner to each family, creating 94,000 new jobs, providing MVR10,000 (US$650) for fishermen regardless of fish yield, and MVR8000 (US$518) for farmers.

Speaking at a Budget Committee meeting, Jihad said: “I do not think the current budget includes elderly benefits. The president has decided to do that through an insurance mechanism.”

In November, Fisheries Minister Dr Mohamed Shainee said the government will not be handing out cash to fishermen, but would introduce an insurance scheme whereby fishermen will be asked to pay a monthly premium of MVR500 (US$ 32) during the fishing season to gain MVR10,000 (US$ 650) during the off-season.

“There is a lot of support for the policy from fishermen. This will incentivise the fishermen. They catch more than MVR10,000 on good fishing days. But if the weather is bad or if the catch is low, there is a degree of despair. We are providing an incentive to overcome this despair to get ready for the next fishing season,” Shainee told local media.

The government will need to start a roster of fishermen, and divert funds from the MVR100 million (US$6.5 million) fuel subsidy to set up the insurance scheme, he added.

The insurance scheme offers come amidst a looming financial crisis. The World Bank has warned the country’s economy is at risk due excessive state expenditure. Further, the government is pursuing untenable financing measures that pose “macro-risks” including possible devaluation of the rufiyaa, the World Bank said.

At present, public debt stands at an “unsustainable” 81 percent of GDP, but is projected to reach 96 percent by 2015, the World Bank said.

Despite promising to curb state expenditure on assuming office, Yameen has only made modest cuts such as halving the presidential salary and reducing the salaries of state and deputy ministers.

Further, the government on Tuesday proposed a record MVR 17.5 billion (US$ 1.1 billion) budget with a projected deficit of 2.2 percent. Over 70 percent of the budget accounts for recurrent expenditure.

Of the MVR 17.5 billion, only MVR 500 million (US$ 32 million) will be spent on new development projects while MVR 400 million (US$ 26 million) will be spent on fulfilling Yameen’s presidential pledges, Jihad told the budget committee.

The government plans to plug the deficit by borrowing from commercial banks. The government has proposed obtaining a US$25 million from the State Bank of India to finance the projected deficit of MVR886,622,881 (US$ 57,201,476).

The parliament’s Finance Committee last week recommended the Majlis approve a US$29.4 million loan from the Bank of Ceylon for budget support for the current year.

The loan which carries a grace period of one year is to be paid back in monthly installments of US$ 490,000 at an interest rate of 8 percent.

Quoting the saying “beggars cannot be choosers,” Jihad said the Maldives has no choice but to borrow from commercial banks at high interest rates.

“We could go to Bank of New York, but they will not lend to us. The best bet now is Bank of Ceylon,” he said.

“The risk factor is high in the Maldives so some parties are increasing the interest rates. So if we have political stability in the Maldives, it is possible [the interest rate] may decrease. It will not happen all of a sudden but it will get better when that risk decreases in the future,” he added.

Likes(0)Dislikes(0)

Gayoom commends Yameen’s efforts to improve strained Indo-Maldives relations

Leader of the the Progressive Party of Maldives (PPM) and former President Maumoon Abdul Gayoom has commended President Abdulla Yameen’s efforts to improve strained bilateral relations with India.

Speaking to local news agency Haveeru, Gayoom said the president’s official visit to India from 23-25 December will be a successful one and that he hopes India will make some “good arrangements” regarding issues of concern for Maldivians. He noted that he himself has talked on such issues with Indian officials he met, and that Maldivians need to lend a “friendly hand” to India.

Indian Prime Minister Manmohan Singh’s invitation for the visit came in reply to a letter reassuring the strengthening of relations with India under the new administration.

Meanwhile, Minister of Defense and National Security Colonel (ret.) Mohamed Nazim along with a senior military delegation is on an official visit to India, responding to an invitation from his Indian counterpart Mr A.K. Anthony.

According to the Ministry, Nazim will discuss Indian assistance in developing the Maldives National Defense Force (MNDF), the Senahiya Military Hospital, and for “boosting up” investments started with India’s help.

Defense cooperation between both countries was highlighted during the meeing. Four Indian military ships have visited and conducted joint military exercises in the Maldives within the past three months, whilst Indian newspaper “The Hindu” reports that India will gift a second Advanced Lightweight Helicopter (ALH) during Nazim’s current visit.

The two defense ministers discussed increasing cooperation between the armed forces of both countries and  advancing medical facilities and expertise in the MNDF through training medical specialists and assigning Indian Armed Forces medical specialists. Indian defense minister announced that all MNDF personnel will now be eligible for treatment in Armed Forces medical institutions in India for major surgeries and for treatment of major and serious illnesses.

Under Dr Mohamed Waheed’s administration – in which President Yameen’s PPM was a coalition member – bilateral relations with India were heavily damaged, particularly following the premature cancellation of Indian Infrastructure company GMR’s $511 million airport project in 2012.

A number of issues that might have affected the relations were highlighted by India, among them exploitation of Indian workers, discrimination, reopening of cases relating to sentenced Indian prisoners, visa fees charged from Indians, and the issue of dependent visa for old parents of Indian employees.

India later imposed restrictions in issuing medical visas for Maldivians, an issue Gayoom hopes will be resolved with the President’s first official trip overseas.

Likes(1)Dislikes(0)

Cabinet split into economic and social councils

President Abdulla Yameen has divided his cabinet ministers into two sub groups – categorized as the Social Council and the Economic Council, the President’s Office has today revealed.

The Social Council is compiled of the Minister of Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed, the Minister of Education Aishath Shiham, Minister of Environment Thoriq Ibrahim, and the Minister of Gender and Health Mariyam Shakeela.

According to council member Shaheem, it will be headed by Vice President Mohamed Jameel Ahmed.

While this still leaves eleven other cabinet members, the compilation of the Economic Council has not been announced yet.

President’s Office Spokesperson Ibrahim Muaz Ali was not responding to calls at the time of press.

Likes(0)Dislikes(0)

Government continues plans for first 100 days

Twenty-six days into the administration of President Abdulla Yameen, state institutions have been unveiling plans to commence or to resume projects within a 100 day period of the government’s November 17 inauguration.

A number of ‘roadmaps’ have emerged in the transport, health, and immigration. Similar lists of projects have also been devised for customs, the police, and the military.

Transport and communication

On December 8, the Transport and Communication Ministry revealed that it would finish drafting plans and begin the groundwork within a 100 days to develop the Ibrahim Nasir International Airport (INIA) to be able to cater to 5 million passengers.

Plans were also made to introduce the nighttime landing of flights in Thimarafushi and Fuvahmulah airports within this period.

In the field of land transportation, the ministry pledged to improve local ports, connect islands via seaplane transport and to improve ferry services between atolls.

There are further plans to establish a broadband internet policy and to provide fast-speed internet to all inhabited islands. Besides this, the plan also includes the introducing number portability between the two telecom service providers currently available in the country.

Transport Minister Ameen Ibrahim said that the government’s object was to make the Maldives the most advanced among the SAARC countries in the field of communication.

The government has also announced its intention to build a bridge between Hulhule’ – the airport island- and capital Male’, and have requested proposals from interested companies.

Health

Just a week after the new administration was established, Vice President Dr Mohamed Jameel Ahmed announced that the government had begun to solve issues in providing health services to the people.

Visiting the sole state-owned hospital – IGMH – in capital city Malé on November 24, Jameel announced that the government would begin fulfilling its health policies “as soon as we get the budget for it”, adding that this would include revamping the Aasandha insurance scheme and training nurses and doctors.

Early in December, prior to the appointment of a health minister, President’s Office Minister Abdulla Ameen announced that chemotherapy treatment for cancer patients would be introduced within the first one hundred days.

Stating that the lack of the service forced many Maldivians to live abroad for medical purposes, Ameen said that the introduction of chemotherapy facilities in the country was crucial. He added that screening to diagnose cervical cancer would also be introduced -both under a government insurance scheme.

Echoing Ameen’s assurances of fast development to IGMH, Health Minister Mariyam Shakeela said at a press conference held today that the government was drafting a policy to “bring major development to IGMH in a very short period of time to an extent never before seen”.

She said that this included a complete renewal of the management figures at the hospital.

The minister further revealed that the government had decided to transfer specialist doctors to the atolls for a period of time which would be allocated by the ministry.

Shakeela stated that funds for development are included in the budget, and that the government is also seeking aid from international donors for some of the projects. She hoped that such developments would  lead to “decreasing the burden on Aasandha”.

Shakeela promised that the full 100 day programme would be revealed next week.

Immigration

Immigration Controller Hassan Ali announced on December 5 that the institution’s biggest focus in the first 100 days of Yameen’s government would be to control the issue of illegal immigrants.

The plan itself includes work to offer illegal immigrants a chance to change employees, and increasing the number of illegal immigrants who will be deported in 2014.

The immigration controller also revealed plans to establish an online system of obtaining work visas from Kulhudhuhfushi, establishing a single office to deal with all migrant related work, and a mechanism where e-passports can be issued from two areas of the country.

Customs, Police and Military

The Maldives Police Services has also created a roadmap of goals they will work to achieve in the first 100 days of the Yameen administration.

On December 9, police revealed that the foremost goal in this roadmap is to complete investigation of 80 per cent of ongoing cases – the total amount of which was not specified – and to forward them to the Prosecutor General’s office.

Other goals include completion of investigation into small and petty crimes within a 30 day period, pre-emptive identification and intervention in cases of intention to commit crimes, and the setting up of additional security cameras in Male’ and Addu City.

Police will also be working to eradicate sexual abuse of children, and to establish what they have termed ‘be ready camps’ to achieve this goal in two atolls.

Facilitating youth employment by helping to get sea vessel driving licences, increasing women’s employment in the policing field to 50 percent, and the establishment of a juvenile detention centre is also included among the listed aims.

The roadmap also includes internal work like the establishment of a new system to address complaints against police officers, the creation of a police clinic for health support to officers and their families, and the compilation of a four-year strategic plan on professional development of the force.

Police, together with customs, have also initiated programs to tackle the illegal import and abuse of narcotics and serious and organised crimes.

Customs – which has also revealed a roadmap for the same period – have on December 12, expressed concern that budget limitations may prove to be an obstacle in the realisation of their goals.

Commissioner General of Customs Ahmed Mohamed stated that the budget cuts would affect the institution’s reaching of its objectives, including the provision of more convenient online services.

Maldives National Defence Force (MNDF)’s 100 day strategic plan includes the submission of various amendments to relevant laws – including the Armed Forces Act and Narional Security Act – to the parliament, and the establishment of a ‘justice system’ within the force.

The plan further consists of a variety of other projects, including the addition of a helicopter and landing crafts to its fleet, and the establishment of fire stations in the islands of Kahdhoo and Naifaru.

The military intend to lay the foundation for a new eight story building where the current Coast Guard offices are, to conduct additional international training for officers – especially with the Indian Army, to provide medical care at low fees for general citizens at the Senahiya military hospital, and the establishment of a day care centre for the use of officers and families.

Likes(0)Dislikes(0)

Finance Minister joins ruling Progressive Party of Maldives

Recently reappointed Finance Minister Abdulla Jihad has joined President Abdulla Yameen’s Progressive Party of Maldives (PPM), becoming the second cabinet member to join the party this week.

Defence Minister Mohamed Nazim – also reappointed to his position after Yameen’s recent inauguration – announced his decision to join the PPM yesterday, commenting on social media that he had opted to join what he viewed as the most democratic party in the country.

Jihad told local media that his decision had come after a request made by former President  and Leader of the PPM Maumoon Abdul Gayoom.

He also revealed that the finance minister position in the cabinet had been reserved for a PPM member. The PPM is currently the second largest political party in the Maldives, both in terms of party members and MPs.

“My decision was based on President Maumoon’s request. I have always been of PPM’s ideologies and philosophies,” Jihad told Sun Online.

Gayoom himself released a tweet yesterday thanking Jihad for his decision: “U will be a great asset to us”.

Likes(0)Dislikes(0)

President Yameen invited to visit Sri Lanka by Rajapaksa

President Abdulla Yameen has been invited to visit Sri Lanka by President Mahinda Rajapaksa.

The letter of invitation was given to Yameen today when Sri Lankan High Commissioner Dickson Sarathchandra Dela paid a call to the President’s Office today.

“The High Commissioner also praised the smooth and peaceful manner in which the presidential election was held in the Maldives,” the President’s Office reported.

Meanwhile, local media today reported that Maldivian tourists visiting Sri Lanks had increased by 83 percent in the 12 months leading to October this year. Sun Online reported that 46,805 Maldivians had visited Sri Lanks in the first 10 months of 2013.

After discussing the increasing bilateral relations in the fields of health, education, and security at the President’s Office today, Sarathchandra expressed Sri Lanka’s eagerness to work with the new Government of Maldives.

Yameen’s first official visit as president will be to India on December 22.

Likes(0)Dislikes(0)

President cuts ministers’ pay as part of austerity drive

President Abdulla Yameen has informed state ministers that their pay will be cut in accordance with the government’s plans to reduce state expenditure.

Local media has reported that all deputy and state ministers will have their salaries reduced from  MVR35,000 to MVR30,000, and from MVR46,000 to MVR41,000, respectively, reports local media.

“President’s decision comes under the government’s policy to reduce expenses. He plans to do a lot more in this regard,” President’s Office Spokesman Ibrahim Muaz told local media.

The wage reductions represent an average cut of around 12.5 percent for these political appointees – a group whose pay Yameen had pledged to slash by 30-50 percent during the presidential election campaign.

Muaz was not responding to further queries at the time of press.

The President’s Office website currently lists the executive as having 46 deputy ministers, including Abdulla Waheed and Abdul Haleem Abdul Gafoor who were today appointed to the Transport and Finance Ministries, respectively.

The number of state ministers currently stands at 31, with three new ministers – Dr Hala Hameed (Ministry of Health), Hassan Shah (Ministry of Environment and Energy), and Mohamed Anees (Ministry of Transport) – appointed within the past 24 hours.

The potential savings could remove MVR385,000 (US$25,000) from the creaking state budget – submitted to the Majlis this week at a record MVR17.5 billion (US$ 1.1 billion), with a projected deficit of 2.2 percent of GDP.

The rise in total expenditure from MVR16.4 billion to MVR17.5 (US$ 1.1 billion) is mainly due to a MVR 1.1billion (US$72.6million) increase in recurrent expenditure, which continues to account for over 73 percent of the state budget.

In his inauguration speech, Yameen warned the country’s economy was in “a deep pit” and pledged to reduce state expenditure. Local media reports quote Yameen saying he would cut expenditure by amounts varying between MVR 1 billion and 4 billion.

Immediately after being sworn in on November 17, Yameen announced he and his vice president – Dr Mohamed Jameel Ahmed –  would be fulfilling his campaign promise of only taking half of the MVR100,000 (US$6500) salary afforded to the head of state.

“The reason behind this is that Dr Jameel and I both live a simple life. No matter what has been said about us we are not wealthy. We want to be an example to others and lead by example,” Yameen said.

During the election campaign, Yameen also promised reduce the salaries of independent institutions – a step he described as pivotal for the country to avoid a sovereign default.

Following this week’s announcement of next year’s proposed budget, local media reported independent institutions as telling the Majlis budget review committee that the projected cuts would leave it unable to pay salaries.

The reduction in minister’s pay closely follows the release of a World Bank report noting that the Maldives was “spending beyond its means”.

According to the report, an already excessive wage bill ballooned by 55 percent in 2013 due to the Supreme Court ordered back payment of salary cuts, and salary increases for the police and military.

The Maldives has one of the highest percentages of government employees to population of any country in the world, at around 11 percent. During his election campaign, Yameen promised to further increase the salaries of civil servants.

In order to finance the deficit, the World Bank report suggested that the Ministry of Finance and Treasury was undertaking measures that “pose macro risks” and have led to “significant accumulation of debt in a short period of time.”

At present, public debt stands at an “unsustainable” 81 percent of GDP, the report stated. The World Bank projects the debt will rise further to about 96 percent by 2015.

“This debt path is unsustainable and suggests there is little room for additional borrowing,” the report warned.

Likes(0)Dislikes(0)