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Standing committee proposes merging MP living allowance with basic salary

The Standing Committee of the Parliament has decided to propose that the Public Finance Committee cancel the living allowance of MVR20,000 (US$1,297) paid to MPs, recommending that the amount be added to their basic salary instead.

MPs currently receive a basic salary of MVR42,500 (US$2,756) and a living allowance of MVR20,000 (US$1,297). They also receive an additional allowance of MVR20,000 (US$1,297) for attending committee meetings, although some MPs have declined from taking it. The total average monthly earnings for an MP comes to MVR 82,500 (US$5,350).

Chair of the Standing Committee, Jumhooree Party (JP) MP Abdulla Abdul Raheem stated, “Article 102 of the Constitutions says that the parliament can decide on these salaries. That is why the committee is making this recommendation to the Public Finance Committee.”

Article 102 of the Constitution states: “The president, vice president, members of the Cabinet, members of the People’s Majlis, including the speaker and deputy speaker, members of the judiciary, and members of the independent commissions and independent offices shall be paid such salary and allowances as determined by the People’s Majlis.

Abdul Raheem further stated that although the basic salary would then increase to MVR62,500 (US$4,053), the take-home pay would be less than that for an average MP.

“An MP will be getting a take-home pay of MVR58,135 (US$3,770), while the Deputy Speaker will get MVR71,000 (US$4,604) and the Speaker will get MVR73,150 (US$4,744). An MP’s pay has to be equal to that of a High Court judge, while the deputy speaker’s salary is equivalent to the pay of a Supreme Court judge. The Speaker will be paid at the same level as the Chief Justice of the Supreme Court,” Abdul Raheem explained.

“We have not really increased our salaries. We are just streamlining decisions on the matter which have been previously made in parliament. We will not be taking a penny more than now. It is only the salary structure that we are altering.”

When asked about the impacts the change in amount of the basic salary would have on pensions, Abdul Raheem responded saying “No change will come to it at all. Yes, the living allowance will be merged and made as part of the basic salary. However, the pensionable pay will remain at MVR42,500.”

Meanwhile Dhivehi Rayyithunge Party (DRP) MP Abdulla Mausoom told Minivan News today that he personally did not support the living allowance amendment.

“The public is often concerned about MPs’ salaries and privileges. I don’t think the parliament should be so often adjusting our pay in this manner. DRP always gives its members a free whip as far as MP’s privileges are concerned, so I can confidently say that I will not support this change,” he said.

Mausoom added that if the living allowance was merged with the basic salary, one notable impact would be that the take-home salary of an MP would be somewhat decreased.

“Seven percent of basic pay is deducted as pension, and then the state matches it with an equal part. If the living allowance is included in the basic pay, it would then become part of the pensionable wage.”

“It’s not about whether the pay is going higher or lower. I don’t think we should keep on adjusting our pay up or down,” Mausoom said.

Minivan News tried contacting MP Ahmed Nazim and MP Ahmed Amir. Both members were not responding to calls at the time of press.

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Male’ could face street light black out over unpaid electricity bill, city mayor claims

The city of Male’ could face its street lights being “switched off” should an outstanding MVR 3.9 million (US$ 254,569) electricity bill fail to be paid by December 27, Male’ City Council (MCC) Mayor ‘Maizan’ Ali Manik has said.

The outstanding payment owed to State Electricity Company Limited (STELCO) by the MCC threatens to leave all council owned properties and utilities –which includes street lights – without power, Manik today claimed (December 22).

Earlier this week, unpaid bills to telecommunication service provider Dhiraagu resulted in the MMC having its telephone and internet services disconnected by the company.

STELCO have since denied claims that they will cut the MCC’s power, but has stated that the company “cannot say what will happen if the bill remains unpaid”.

Speaking to Minivan News, Mayor Manik blamed the Finance Ministry for the lack of payment, claiming that the government body had failed to release the funds despite the MCC completing all relevant documents needed to do so.

“I sent a letter to the [Finance] Ministry last week following one the MCC received from STELCO saying they will cut our electricity if the bill is not paid.

“When I spoke with [Minister of Finance and Treasury] Abdulla Jihad yesterday, he gave me no reason as to why the payments had been delayed. He must have known about the bills because of all the letters we have sent him.

“He told me that both the STELCO and Dhiraagu bills will be paid tomorrow (December 23),” claimed Manik.

Finance Minister Abdulla Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at time of press.

MCC “long history” of debt

STELCO Media Co-ordinator Abdulla Nazir meanwhile said that MCC had a “long history” of outstanding payments, adding that the stated figure of MVR 3.9 million was only part of the overall debt owed to the company.

“STELCO has received no money so far. There are many months of outstanding debt from MCC, more than the MVR 3.9 million we have asked for.

“While we have received no statement or payment from the Finance Ministry, we have received a letter from MCC dated December 19. They said their bills have been sent to the Finance Ministry, and they have asked the ministry to settle the outstanding payments,” Nazir told Minivan News.

However, Nazir denied Manik’s claims that STELCO had warned the MCC it faced having electricity disconnected. However, in accordance to STELCO’s regulations, Nazir stated that any public or private organisation failing to pay its electricity bills was at risks of having its power cut off.

Dhiraagu debt

On Thursday (December 20), local media reported that Dhiraagu had disconnected all phone and internet services it provided to the MCC due to unpaid bills.

MCC member Ibrahim Shajau claimed that over MVR 400,000 (US$ 26,109) is owed by the council to Dhiraagu, alleging that the Finance Ministry had failed to release the funds.

“We have sent all relevant documents to Finance Ministry. It’s up to [them] to pay the money. Dhiraagu said that Finance Ministry had not paid the money,” he told Sun Online.

Dhiraagu Marketing and PR Ibrahim Imjad Jaleel told local media that the services were disconnected after advising the council on numerous occasions to pay their bills.

“We disconnected the services today after giving them time even today to pay the bills after the offices opened.  We had to cut off our services after their failure to pay any amount after several days of discussions. We are trying with our customer even now, to find a way to resume the services,” he said.

Earlier in October, STELCO disconnected the power supply to state broadcasters Television Maldives (TVM), Voice of Maldives (VOM) as well Male’ City Council over a failure to pay overdue bills.

MCC member Ibrahim Shujau told newspaper Haveeru back in October that the delay in settling the bill was again down to the Finance Minsitry.

STELCO permit dispute

STELCO and MCC clashed earlier this month when the electricity company filed a case with the Civil Court requesting it invalidate MCC’s decision to disallow issuing permits to the company.

In a statement released Wednesday (December 12), the state electricity provider stated that the lawsuit was filed because the MCC had blocked the company from providing some of its services, resulting in disruption for customers in the capital.

The disallowed permits are needed to provide electrical services to properties around the capital.

STELCO has argued that the MCC’s decision lacked any legal grounds and therefore requested the court to decide if the decision was valid or not. It also requested the court invalidate a letter sent to STELCO by the MCC informing it of the decision, so that it could resume its services.

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“Be strong”: President Waheed’s brother tells former President Nasheed

Naushad Waheed, former Deputy High Commissioner to the UK and brother of President Dr Mohamed Waheed Hassan, has urged former President Mohamed Nasheed to “be strong” in a public message published yesterday (December 21).

The message came after Nasheed was prevented from the leaving the country to visit his ill father in Bangkok, Thailand.

“Be strong. Waheed will know you will be very sad when he stops you travelling [on] this trip,” he wrote.

While in jail under the autocratic rule of former President Maumoon Abdul Gayoom, Naushad noted that Gayoom had refused to allow him to attend his mother’s funeral.

“So Waheed is following all the footsteps from Golhaboa [derogatory term for Gayoom]. Revenge is the only word for them. Be strong,” Naushad wrote.

Naushad, a famous artist, was first arrested in 1999 following publication of a cartoon in a magazine called Hukuru. Two years later, he was arrested for criticism of the Gayoom administration and found guilty of treason.

He was sentenced to 15 years in prison. Naushad became Deputy High Commissioner to the UK following Gayoom’s defeat in the October 2008 presidential election.

He later resigned from the post following the transfer of presidential power on February 7 and called on his brother to follow suit.

Meanwhile, President Waheed met former President Gayoom at Muleeage on Wednesday night. Gayoom told local media that “nothing special” was discussed and that the meeting was “just a friendly visit.”

Gayoom reportedly claimed that the pair were “old friends.” PPM Deputy Leader Umar Naseer meanwhile said the party’s interim leader and figurehead met President Waheed “frequently” for “lunch or dinner.”

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“Technical problem” prevented former President Nasheed from leaving, Immigration Department claims

Former President Mohamed Nasheed was prevented from leaving the country yesterday (December 21) to visit his ill father in Bangkok, Thailand due to a “technical problem,” the Department of Immigration and Emigration has claimed.

Nasheed was told by immigration officials on Friday morning that his passport was held because of a court order by the Hulhumale’ Magistrate Court that had been sent to the department on December 18 imposing a travel ban on the former president.

The formerly ruling Maldivian Democratic Party (MDP) presidential candidate is currently on trial at the Hulhumale’ Magistrate Court over charges of illegally detaining Chief Judge of the Criminal Court Abdulla Mohamed in January this year.

However, on December 18, the Hulhumale’ Magistrate Court authorised the former President to travel overseas between December 19, 2012 and January 6, 2013. The letter granting permission to travel was signed by Magistrate Hussain Mazeed.

Following the incident on Friday morning, the Hulhumale’ Magistrate Court confirmed to local media that the Immigration Department was informed of the decision on December 18.

In a statement later in the day, the Immigration Department said the court order lifting the travel ban was received and entered into the system.

However, Nasheed was told his passport had been withheld due to a “technical problem with the system,” the Immigration Department claimed.

“The issue has now been identified and fixed a short while ago,” the statement read. The department did not elaborate on the nature of the “technical problem”.

Controller of Immigration Dr Mohamed Ali told Minivan News today that the system error “affected both arrivals and departures from 7:30am to about 2:00pm.”

He added that the incident involving the former President was “the only case” of a passport being held due to the disruption.

“The system at airport did not show the release, while the release was entered on Wednesday (December 18). It was a simple system dependent decision by the duty officer at that time.  We have apologised to [Nasheed] and all who were affected and even have a letter sent to him assuring that he can leave during the specified period,” Dr Ali said.

However, the Immigration Controller told newspaper Haveeru on Friday that Nasheed’s passport was held due to a court order.

“He cannot leave until the court orders [the passport] to be released. When he wants to go somewhere, the court will instruct us to release it within a certain period,” Dr Mohamed Ali was quoted as saying.

Nasheed was reportedly due to leave for Bangkok on a private visit ahead of his father’s surgery.

Former President Nasheed’s office meanwhile issued a statement contending the move blocking the former President’s departure was in violation of the constitution.

The statement noted that article 128 of the constitution entitles former Presidents to “the highest honour, dignity, protection, financial privileges and other privileges entitled to a person who has served in the highest office of the land.”

Moreover, article 41 of the constitution guarantees “the freedom to enter, remain in and leave the Maldives” to every citizen.

“This office condemns in the harshest terms the act by the current government to deliberately obstruct President Nasheed from leaving the country for his father’s operation,” the press release stated.

It added that the Immigration Controller’s claims in the media that a travel ban had been imposed by a court order on December 18 was a “deliberate falsehood.”

The Hulhumale’ Magistrate Court informed Nasheed’s lawyers on Friday afternoon that the Immigration Department was sent the court order lifting the travel ban.

The statement called on the government to “respect the constitution and immediately cease these attempts to harass and hassle President Nasheed.”

The former President’s office also called on the Hulhumale’ Magistrate Court to take action against the Controller of Immigration for making false claims regarding the court.

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Ahmed Sareer takes up Maldives Permanent Representative role at UN

Ahmed Sareer has taken up the role of the Maldives Permanent Representative to the United Nations on Thursday (December 20) after presenting his letter of credence, local media has reported.

Sareer, who was appointed to the permanent representative role by President Dr Mohamed Waheed Hassan earlier this month, was officially confirmed in the position at a ceremony overseen by UN Secretary General, Ban Ki-moon at the organisation’s headquarters.

In a Foreign Ministry statement seen by local newspaper Haveeru, Sareer praised the UN for its ongoing role in the Maldives pushing for national developments in areas such as human rights and climate change.  He also welcomed the UN’s role in providing the nation with technical assistance such as with the upcoming presidential elections scheduled for next year.

Sareer has previously served as the Maldives’ High Commissioner to Bangladesh.

Sareer’s name was earlier forwarded earlier this year for parliamentary approval as a replacement for Abdul Gafoor Mohamed, who resigned from the UN post over concerns about February’s transfer of power.

Gafoor announced his intention to resign from the post live on Al Jazeera’s ‘The Stream’ programme shortly after the resignation of President Mohamed Nasheed.

“I believe the new president should have the opportunity to have his views and policies presented to the world community through representatives who serve him without equivocation or reservation,” Gafoor told Al Jazeera at the time.

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Government cannot accommodate MVR2.4billion budget reduction: Jihad

Finance Minister Abdullah Jihad has said the government cannot accommodate MVR2.4billion (US$156 million) worth of cuts to the proposed state budget as recommended this week by a parliamentary committee review.

Speaking to Minivan News today, Jihad said that although there was room to reduce the proposed MVR 16.9 billion (US$1.1 billion) budget unveiled last month, the level of cuts recommended by Parliament’s Budget Review Committee were not feasible to run the state next year.

The parliamentary committee this week recommended an almost 15 percent reduction to state expenditure proposed for 2013 – resulting in a total budget of MVR 14.5 billion (US$947 million). The committee’s decision was met with mixed reactions from opposition and government-aligned parties who will vote on whether to approve the budget in parliament.

The committee opted to make cuts to the budget in line with recommendations from both the International Monetary Fund (IMF) and Maldives Monetary Authority (MMA) Governor Fazeel Najeeb as part of efforts to ensure a more manageable expenditure for next year.

A recent mission from the International Monetary Fund (IMF) had urged the government to implement a raft of measures to raise revenues, advising that strengthening government finances was “the most pressing macroeconomic priority for the Maldives.”

Some senior finance figures within the country confirmed to Minivan News this week under condition of anonymity that the reductions made by the budget committee were an “encouraging” development in trying to manage state expenditure, with the proposals likely to receive Majlis support.

However, Jihad said that the Finance Ministry was presently in discussion over potential cuts to state spending, maintaining that a budget of MVR 14.5 billion would not be acceptable to the state.

“If the government agrees to cut some of the budget, I don’t think we can go that level,” he said, adding that it remained too early to give an acceptable figure by which the state would approve budget reductions.

Jihad yesterday told local media that the MVR 2.4 billion in cuts proposed by the Budget Review Committee would impact on the provision of healthcare and education – two areas he claimed had been “neglected” during the past two years.

However, the finance minister said today that the budget review committee had not suggested any specific areas or sectors where the budget needed to be cut, adding there had been “no mention” of further reductions to the health budget.

Speaking to Minivan News yesterday, MP Mohamed ‘Colonel’ Nasheed of the opposition Maldivian Democratic Party (MDP) said that the MVR 2.4bn in cuts had been made largely by reducing “unnecessary recurrent expenditures” within the budget.

Nasheed claimed that the committee had looked at specific areas of the budget where “fat” could be cut from state expenditure without directly impacting services.

“What we proposed was that there could be reductions to internal and external transport [for government employees],” he claimed. “We have big delegations going abroad at present. What we have called for is a 50 percent reduction of transport costs. It is not necessary to send 30 people abroad on trip. Five people could go for example.”

Another area Nasheed claimed cuts could be more easily made was in the purchase of new office furniture that could reduce spending by some MVR 451 million in line with the costs of supplies like stationary and paper. He claimed such expenses could be reduced through more effective online governance.

Cuts were also said to have to be made in the proposed provision of specific services to islands around the country, which Nasheed claimed had never been viable considering the current economic challenges facing the Maldives.

“[President Dr Mohamed Waheed Hassan] has made many lousy promises on his tours of islands for developments that cannot be granted. We cannot work from a fantasy budget,” he claimed at the time.

Civil servant salaries were not said to be included as part of the cost cutting, according to Nasheed.

DRP view

Despite Nasheed’s claims, the government-aligned Dhivehi Rayyithunge Party (DRP) has said that cutting the budget to MVR 14.5 billion from the proposed MVR 16.9 billion would impact the provision of government services and the functioning of independent institutions at a vital time.

DRP Deputy Leader and MP Dr Abdullah Mausoom claimed therefore that the party would wait for the government to decide whether it could function during 2013 with a reduced budget of MVR14.5 billion, before deciding whether to back the changes in the People’s Majlis.

“We need to know whether the government thinks it can manage to function with this MVR 14.5 billion. If it can then we would have no problem,” he told Minivan News yesterday.

Mausoom said that considering the cross-party composition of the Budget Review Committee that approved the cuts, support for the amendments in the People’s Majlis could prove likely.

Mausoom also contended that the “drastic” nature of the proposed reductions had raised concerns about whether funding would be distributed “fairly and equally”, as well as having a detrimental impact on the running of the state.

“It is a shame that such drastic reductions have been made. We have had a very different year [in 2012] to other years with the change of government. With 2013 set to be a presidential election year should the budget be squeezed as a result of political rivalry,” he stated.

Mausoom said that of noticeable concern was how the budget cuts may potentially impact the work of independent institutions that he said would be increasingly vital over the course of a contentious general election next year.

He added that a wide number of independent institutions in the country had already gone on record to address concerns about how the present budget would impact on their operations.

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MACL Managing Director appointed as Transport Minister

President Mohamed Waheed has appointed Mohamed Ibrahim as Minister of State for Transport and Communications after removing him from his Managing Director post at Maldives Airports Company Limited (MACL).

Replacing Ibrahim as MD of MACL is Dr Ibrahim Mahfooz, who has served as the Chief Internal Auditor of State Trading Organisation (STO) for the last 16 years.

Mohamed Ibrahim will be taking over from Acting Transport Minister Mohamed Nazim.

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AG drafts bill outlining executing death sentence, favours lethal injection

Attorney General Azima Shukoor has drafted a bill outlining how the death sentence should be executed in the Maldives, with lethal injection being identified as the state’s preferred method of capital punishment.

Shukoor today held a press conference to provide local media with information about the bill, which is also to be opened for public comment.

The Attorney General’s Office has said that it has looked to procedures followed by Egypt, Malaysia and the US in carrying out the death sentence, while also obtaining the opinions of religious scholars and lawyers when drafting the bill.

With the bill favouring the use of lethal injection to execute suspected criminals, Shukoor said the proposals would be open for public comment for one month.

Court procedure

In the case of a suspected murder trial, the bill drafted by Shukoor obliges the accused to be represented by a lawyer during their trial.  In any case where the accused refuses to have a lawyer, the bill would require the state to provide legal representation for the respondent.

According to the new bill, when the Criminal Court proceeds with a murder case, it would need to have a bench consisting of three judges, one of whom has to have studied Islamic Sharia.

The bill would also oblige the High Court to have a panel of five judges overhearing murder cases, with the Supreme Court required to have a panel of seven judges.

According to the bill, any death sentence cannot be executed without the final judgement of the Supreme Court.

Photographing and filming of any execution carried out by the state would also be deemed unlawful under the attorney general’s proposals.

Should a suspect who is a minor, pregnant or in a critical medical condition be found guilty of murder, the bill states that the execution shall be delayed.

Shukoor also included an article concerning the authority currently given to the Head of State to commute death sentences to life sentences.  The bill noted that AG’s Office needed further time review the matter as the opinions of different experts were inconsistent on the president’s prerogative to commute sentences.

According to the bill, a suspect found guilty of murder would also be provided with the opportunity to meet his family on the day of execution and say their last words.

In October this year, the government has announced its intention to introduce a bill to the People’s Majlis in order to guide and govern the implementation of the death penalty in the country.

“It is currently a punishment passed by the judiciary and a form of punishment available within the penal system of the Maldives,” said Home Minister Dr Mohamed Jameel Ahmed at the time.

“But for full guidance and matters governing the matter, legislation is required,” he added.

The last person to be judicially executed in the Maldives was Hakim Didi, who was executed by firing squad in 1953 after being found guilty of conspiracy to murder using black magic.

Statistics show that from January 2001 to December 2010, a total of 14 people were sentenced to death by Maldivian courts.

However, in all cases, the acting president has commuted these verdicts to life sentences.

Judicial concerns

Speaking to Minivan News earlier this month, former Foreign Minister and UN Special Rapporteur on Human Rights in Iran Dr Ahmed Shaheed identified the “pathetic state of the [Maldives] judiciary” as one of the key human rights concerns he believed needed to be addressed in the country.

“[The judiciary] is not only corrupt, but also coming under the influence of radical Islam, even to the extent of violating codified laws of the Maldives and clear international obligations,” Dr Shaheed claimed yesterday.

“Disregard for rule of law has also meant that a culture of impunity is deeply entrenched, rendering many of the human rights of the people meaningless.”

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State guarantee for GMR to obtain bank loans had no limits: Attorney General

Attorney General (AG) Azima Shukoor has claimed that a loan guarantee provided by the former government to infrastructure group GMR would have allowed the company to obtain finance without limitation.

According to local media, the attorney general has alleged that such a loan agreement would have contravened the country’s financial regulations unless approved by parliament at the time.

However, her claims have been dismissed by former Attorney General Ahmed Ali Sawad, who claimed that the agreement was conducted within state laws.  Sawad helped oversee the agreement between GMR and former President Mohamed Nasheed’s government back in 2010.

GMR’s concession agreement was terminated by the Maldives government  late last month after it decided – citing legal advice – that the sovereign contract was invalid from the outset.

Speaking to Parliament’s Public Accounts Committee yesterday (December 19), Shukoor revealed that the Maldivian state had agreed under the cancelled contract to act as a guarantor for all loans obtained by GMR under its agreement to develop Ibrahim Nasir International Airport (INIA).

According to the attorney general, this provision had been approved despite not being part of any senior finance agreement.

Shukoor added that under the primary agreement between the state-owned Maldives Airports Company Limited (MACL) and GMR, should MACL fail to make any repayments, the Maldivian state would have to cover any resulting costs.

“[The state] is not part of the senior agreement, thus to act as guarantor for loans obtained by another group – whether this was done with approval or not – would be to give a ‘blanket’ guarantee. I don’t think this can be permitted. I don’t believe that even the Public Accounts Committee would do that,” local media reported Shukoor as saying.

The agreement, which states that the Maldivian government is responsible for all loans obtained by GMR, was made with the approval of former Attorney General Sawad, Shukoor said.

According to Shukoor, Sawad had permitted the agreement in writing, concluding at the time that the deal would not result in any legal problems.

She also claimed that approving the agreement without parliament’s approval was in violation of the Finance Act.

“Financial guarantees given by the state should have limits. We are signing an agreement allowing future groups to obtain as much money as they want under our guarantee – I don’t believe that this is a valid legal concept,” Shukoor was reported to have said.

Responding to Shukoor’s comments, Sawad today told Minivan News that he “did not believe” there had been a violation of any law whilst he held the position of attorney general.

“I deny her claims, although I’m not actually sure what her claim is. I don’t think she knows what her claim is,” he said.

“She [Shukoor] needs to figure out if it was a guarantee or not a guarantee, because in the meeting she said that it ‘was a guarantee’ and then said that it was like a guarantee’.  Regardless of whether or not it was a guarantee, the whole thing is irrelevant as she has stated the GMR contract is void ab initio (invalid from the outset),” Sawad claimed.

GMR’s tender agreement to develop INIA was overseen at the time by legal and financial experts including the International Finance Corporation (IFC) – a World Bank entity.  The deal also obtained the certified approval of former Attorney General Sawad.

Attorney General Shukoor was not responding to calls from Minivan News at time of press.

Speaking to the committee yesterday, local media reported Shukoor as stating that Singapore’s Axis bank had permitted GMR to obtain loans worth $386 million, of which GMR had taken $165 million. Shukoor highlighted that should GMR fail to repay this loan, then the government would have been required to meet any resulting costs.

She stated that if the government found itself unable to pay back these loans, the image of the state will be damaged, leading to potential implications for securing future finance.

“When we think about taking legal action in relation to this matter, we see that the head state prosecutor has advised that signing that agreement should not cause any legal problems. So it becomes something the state has to honour,” she added.

Despite the former Attorney General approving the agreement, Shukoor stated that government has a strong legal argument over the loan issue, whereby under the Public Finance Act, the government cannot act as a guarantor without the parliament’s approval, which was allegedly not obtained.

“The State is acting as the guarantor to the loans taken based on the transactions between GMR and Axis Bank. I believe that is not something permitted under the Finance Act. It is like a blanket sovereign guarantee. We may not be able to classify it as a sovereign guarantee. But we are seeing an assurance given by the State,” Shukoor was quoted as saying by local newspaper Haveeru.

GMR bid qualification

Meanwhile, Chief Financial Officer (CFO) of GMR Airports Sidharath Kapur today rejected comments made by President’s Office Spokesperson Masood Imad in Indian media alleging that the company did not originally qualify as a bidder to develop INIA in a technical evaluation process.

Masood was quoted in the Business Today publication as claiming that the technical evaluation committee during the bidding process acted under pressure from former President Mohamed Nasheed, who then qualified the GMR Group for the project.

In response, Kapur said that the company had won the project in an “open and transparent” bidding process, stating that GMR had qualified in the technical, financial and legal evaluations.

Kapur noted that the bidding process was supervised by the International Finance Corporation (IFC), and that the IFC had successfully handled such public-private partnerships in the airport sector in many countries.

“While other bidders opted for the ‘earn and pay’ route, the GMR consortium adopted a ‘pay and earn’ strategy, and hence paid $78 million up front to the Government of Maldives,” he added.

Kapur also attacked the present government’s handling of the GMR issue, alleging that the resulting arbitration case to decide on compensation owed to the company from the contract cancellation could have serious financial ramifications for the nation.

“Compensation believed owed to GMR due to the illegitimate cancellation of the contract by the government of Maldives may put a significant and avoidable financial burden on the people of Maldives,” he stressed to Business Today.

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