Adhaalath welcomes talks: Shaheem

Adhaalath Party chief spokesperson Mohamed Shaheem Ali Saaed today said the party would accept government requests for talks over “Defend Islam” protest planned for next Friday, December 23.

Shaheem claimed that the government’s lack interest in a dialogue has created negative tension around the protest, Haveeru reports.

“Adhaalath Party will always accept any requests made by the head of state to discuss a state affair. But the government has so far failed to hold such discussions and the failure of this forced the coalition partners of the ruling MDP [Maldivian Democratic Party] to abandon it,” Shaheem was quoted as saying.

Shaheem further said the protest aims to peacefully prevent the arrival of religions other than Islam in the Maldives, and not to invite the Shari’ah-based penalties of stoning, hand cutting and execution.

Ruling Maldivian Democratic Party (MDP) this week announced plans to hold a counter-demonstration on December 23 against what appeared to be aggressive requests from Adhaalath at the time.

Human Rights Commission of the Maldives (HRCM) is currently attempting a peaceful resolution of the dispute, reports Haveeru.

“We are concerned about losing the peace and harmony in the country. We are negotiating with the organisers of the religious protest and those who are planning to demonstrate against them,” commissioner Mariyam Azra told the local media.

The outcome of HRCM’s negotiations are expected to be released on Monday.

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Red Bull Air Race entertains Friday crowds

Hundreds gathered on Male’ yesterday to watch Red Bull Air Race champion Péter Besenyei perform air stunts in a specially-designed plane over the Ekuevni Stadium area.

The event was organised by Euro Marketing Pvt Ltd, the sole distributor of energy drink Red Bull in the Maldives.

Hungarian national Besenyei, age 55, is a skilled aerobatics pilot and eight-time air race world champion. Since being approached by Red Bull in 2001, Besenyei has developed the company’s air racing competition and formulated the sport’s rules and regulations.

The Red Bull Air Race was first held in Zeltweg, Austria in 2003. International pilots compete against the clock on obstacle courses of pylons, or “air gates.”

An air race was originally scheduled for December 17 over Hulhumale’, however due to the boat traffic in the area authorities could not approve the event, Euro Marketing Managing Director Ali Waseem informed Minivan News.

Renowned Russian base jumper Valerie Rozov had also planned to perform a jump into Male’, but technical difficulties have forced Euro Marketing to re-schedule the event for next year.

“We will be hosting events in Male’ and from North to South of the country throughout 2012, including go-cart competitions and bicycle tournaments,” Waseem said.

Waseem noted that turnout for the air show was “very good,” and said Euro Marketing is seeking other events suitable to the nation’s island geography.

Head of Operations Lawrence Miranba previously told Minivan News that Euro Marketing booked the show “to bring an international event into the Maldives.”

“We are looking to create smaller events as well,” said Miranba at the time. “For instance, there’s a remote controlled plane group in Hulhumale’. We haven’t finalised anything yet, but we’d like to do something with them.”

Famed local bodu beru group Harubee performed at this weekend’s event, while a street style football competition and remote-controlled airplane race engaged onlookers throughout the show.

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Comment: Islam to be an election issue?

With two events in as many weeks, the Maldives has been making news both on the home front and in the global arena, for reasons that had been better left untouched.

Coming as they did after the successful SAARC Summit in the southern Addu City, these developments have the potential to become a major political and poll issue ahead of the presidential elections of 2013, if the current trends remain un-reversed.

The first incident flowed from the SAARC Summit itself. Forgetting that Pakistan too was an ‘Islamic State’, religious fundamentalists in Addu ransacked the SAARC memorial erected by Islamabad for depicting what they claimed were idolatrous, ‘un-Islamic’ symbols.

Customary as Pakistani memorials have mostly been, this one carried a bust of Mohammed Ali Jinnah and the nation’s flag. At the foot of the pedestal were reliefs of archaeological finds from the Indus Valley Civilisation sites in the country.

Fundamentalists, first in Addu and later in the political capital of Male, claimed that a relief motif represented Lord Buddha. They burnt the whole monument one night and took away the rest. It is as yet unclear if their protests were only over the presence of a perceived representation of Lord Buddha, who is worshipped in many of the SAARC member-nations, or it also related to Jinnah’s bust, as worshipping fellow-humans was also banned in Islam.

It was possibly not without reason that subsequent to the destruction and disappearance of the Jinnah statue, fundamentalists also targeted the Sri Lankan monument, a replica of the nation’s ‘Lion’ emblem. Investigators have to find out if this attack had anything to do with the Buddhist character of Sri Lanka, or was aimed at defusing the embarrassment flowing from the earlier attack on another ‘Islamic Republic’, where again fundamentalism and religious extremism were thriving — targeting not just the immediate neighbourhood but the rest of the world at large.

In contemporary context, Pakistan, along with neighbouring Afghanistan, are considered the global capitals of fundamentalism, from where Maldivian groups are perceived as deriving their strength. In Pakistan, unlike the other two nations, certain State agencies are believed to be aiding, abetting and funding fundamentalist efforts — and for carrying the message to the rest of South Asia and outside, too. Thus the contradiction in the fundamentalist attack on the Pakistan monument was palpable.

A full month after the SAARC Summit, local media reported that the Nepalese monument for SAARC too has been ‘stolen’. They quoted officials to say that the ‘theft’ had taken place when the police on guard duty were in between shifts. With three such desecrations, the authorities, if is said, were considering the wisdom of shifting all SAARC monuments to a central place in Addu and providing 24-hour police security.

Uni-faith character and flogging

The fundamentalists got another shot in the arm not long after when the visiting UN Human Rights Council (UNHRC) chief Navneetham Pillay questioned Maldives uni-faith character that did not accept non-Muslims as citizens.

Addressing the People’s Majlis, or Parliament, only a week after Indian Prime Minister Manmohan Singh became the first overseas dignitary to do so, Pillay also questioned the Maldivian law on flogging of women, describing it as inhumane and violating of international commitments by the nation. She called for a national debate.

Since Pillay’s visit, local media has come up with a belated news report, citing a lower court ruling, that growing beard was close to being a religious obligation for males in the country.

According to the daily newspaper Haveeru, Magistrate Ibrahim Hussein in Maafushi, Kaaf Atoll, had overturned a Department of Penitentiary and Rehabilitation Services (DPRS) regulation that instructs its male employees to shave their beards. The DPRS has since challenged the ruling, as the magisterial verdict of March 2 has held that the regulation contradicts with Islamic principles, and cannot be made in a 100 percent Muslim country such as Maldives.

Though wholly unexpected, and possibly taken aback after the monument-burning, the government of President Mohammed Nasheed did not lose much time in expressing regret to the governments of Pakistan and Sri Lanka. It also arrested two persons for the desecration of the Pakistani monument.

The public postures of rival political parties however surprised many. President Nasheed’s Maldivian Democratic Party (MDP) was not as unequivocal as the rest. It was only to be expected under the circumstances, and also given his pro-liberal attitude and public image but individual MPs did declare that there was no question of permitting the practice of other religions in the country.

The opposition parties at one stage seemed to be competing with one another in expressing their solidarity with the Islamic forces. Fundamentalist Adhaalath Party (AP), which had left the government only recently over religious issues, wanted customs officials who had cleared the ‘banned monument’ into the country sued.

A section of the Progressive Party of Maldives (PPM), founded recently by those owing allegiance to former President Maumoon Gayoom, was shriller. Undiluted as yet, a party leader described the two arrested persons as ‘national heroes’ and wanted PPM to defend their case/cause.

Other parties, including the Dhivehi Rayyithunge Party (DRP) with Thasmeen Ali, a former running-mate of Gayoom in the 2008 presidential race, could not be seen as being left far behind. Some of them, including a section in Gayoom’s PPM, sought to draw a distinction between fundamentalism and modern-day issues of sovereignty, in this regard, arguing that installation ofidolatorous monuments and statues challenged the sovereign right of the Maldivian State, including Parliament, to frame a Constitution and laws that reflected the people’s sentiments – and enforce them, too.

Pillay’s utterances, which she repeated at a news conference in Male, revived the argument even more, as political parties felt uncomfortable about commenting unfavourably an issue involving fellow nations like Pakistan and Sri Lanka. To them, the former was an Islamic nation as Maldives, and the latter, the closest neighbour and economic partner, too. Unacknowledged, they were also concerned about possible retaliation in Sri Lanka, where a large number of Maldivians reside, for work, studies or medical care, or use as a transit-point to travel to the rest of the world.

‘Missed opportunity’, says President

Historically, Maldives was home to Dravidian people from south India and also Sri Lankans. Before the arrival of Islam in the atolls-nation in the twelfth century when it was adopted by the ruler and his subjects soon enough, Buddhism was the dominant religion.

As critics of the Addu attacks point out, the National Museum in Male, built by the Chinese in recent years, houses Buddhist artefacts from that era. Maldivian history also has it that among the earlier non-Islamic, non-Buddhist rulers were women — thus possibly explaining relative liberalism to date, barring of course flogging for extra-marital relationship.

Even granting that the Addu incidents were a stand-alone affair, the Pillay controversy, identifiable with the UN system, has triggered calls for condemnation of the parent-organisation. Fundamentalist protestors shouted slogans outside the UN office in Male soon after the Addu incidents.

For starters, Maldivian parliamentarians in general and the mild-mannered Speaker Abdullah Shahid in particular would be uncomfortable until a future guest had completed his or her address to the People’s Majlis, if and when invited.

Answering criticism in this regard, Speaker Shahid said that he too was not privy to what Pillay intended saying. Fresh to such engagement with visiting dignitaries as much to the rest of the democratic scheme, Maldivian parliamentarians had possibly taken Prime Minister Singh’s address as the standard practice. Pillay may have now set them thinking.

Sometime after the dust from the Pillay fiasco had begun settling down, President Nasheed provoked fellow-Maldivians into a national discourse by declaring that “Our faith should not be so easily shaken” by utterances of the Navi Pillay kind.

“To build a nation, we should all have the courage, the patience and the willingness to exercise our minds to its deepest and broadest extent,” the local media quoted him as saying at an official function. By coming down heavily on Pillay’s suggestions, the President said elsewhere that Maldives might have “missed an opportunity” to demonstrate the nobility of the Islamic Sharia.

“We should have the courage to be able to listen to and digest what people tell us, what we hear and what we see,” said Nasheed, adding that Maldivians should not be “so easily swayed and conned. For that not to happen, we have to foster in our hearts a particular kind of national spirit and passion. This national spirit is not going to come into being by not listening, not talking and hiding things, [but] by clearly and transparently saying what we think in our hearts, discussing its merits among us and making decisions based on [those debates].”

Given his democratic credentials and the tendency to throw up issues for national discourse through his weekly radio address, President Nasheed’s observations did not raise hell as his detractors would have hoped for. Nor did it stir the nation into a discourse as he may have hoped for.

However, attackers did take on others, and physically so. A small group of pro-tolerance protestors under the banner of ‘Silent Solidarity’ were stoned by unidentified men when they gathered for a rally, advocating openness to all faiths in the aftermath of Pillay’s advocacy.

Even as the controversy over the Pillay statements was unfolding, Foreign Affairs Minister Mohammed Naseem lost no time in trying to smoothen out the ruffled Opposition feathers. “What’s there to discuss about flogging?” Minister Naseem was reported as saying, “There is nothing to debate about in a matter clearly stated in the religion of Islam. No one can argue with God.”

The Minister clarified that Maldives had submitted certain reservations to the international conventions that Pillay had referred to, including the provisions on gender equality and freedom of religion. “On these points the country could not be held legally accountable by an international body,” he said further.

Islamic Minister, Dr Abdul Majeed Abdul Bari, a renowned religious scholar, lost no time in calling for the removal of idolatrous SAARC monuments. Later after the Pillay controversy, he said that Sharia could not be made a subject of debate.

A representative of the fundamentalist Adhaalath Party who chose to return to the government after the party had pulled out, Dr Bari appealed to the people not to vandalise symbols of other religions. He referred to what he claimed was a retaliatory attack on a local mosque in Addu City and quoted the Quran 6:108, which reads “And do not insult those they invoke other than Allah, lest they insult Allah in enmity without knowledge. Thus We have made pleasing to every community their deeds. Then to their Lord is their return and He will inform them about what they used to do.”

Dr Bari’s junior colleague and State Minister for Islamic Affairs, Sheikh Rasheed Hussein Ahmed, had a different take on the former’s suggestion for the host nations to take back the monuments. A former president of the Adhaalath Party and native of Addu Atoll who has chosen to stay back in the government (though the party has no parliamentary representation under the Executive Presidency), Dr Rasheed seemed to concur with the official position that it was improper for Maldives to suggest such a course. At the outset thus he indicated the need for securing all SAARC monuments in a common place at Addu. The media has reported that the government was looking at the option in the aftermath of the attack on the Nepalese monument.

Nation-wide protest on cards

Unimpressed by the government’s explanations, if any, the opposition parties have independently or otherwise, extended their support to over 125 non-government organisations (NGOs) that have called for a nation-wide protest on religious issues on December 23.

Some in the opposition, including one-time Minister and presidential aspirant, Jumhooree Party founder Gasim Ibrahim, see in the Addu affair and the Pillay statements a governmental conspiracy aimed at twin-goals –of, allowing other religions into the country and at the same time dilute the Sharia as is being practised in Maldives.

As observers point out, for the past over two years, the government of President Nasheed has been giving a handle to fundamentalist elements to make a hue and cry, every now and again.

Starting with the government’s decision to accept a Guantanamo Bay detainee at the instance of the US, inviting Israeli doctors, farm experts and now their airline, considering permission for liquor sale and consumption in inhabited islands, starting with the national capital of Male’, seeking to make the study of Islam and the national language, Dhivehi, optional for A-Level students, they say, the Nasheed leadership has been seeking to dilute Islamic traditions and practices, one after the other. On the economic front, they have added the IMF-induced reforms and the ‘managed float’ of the dollar to the ‘conspiracy’.

On the one hand, the emergence of one religion-related controversy after another, almost at periodic intervals, has the potential to keep fundamentalism alive, and possibly expanding to take extremist colours, if only over time. On the other, the ever-expanding political support-base that such issues have been attracting confers on the more identifiable practitioners, greater and otherwise unintended legitimacy that is otherwise lacking. Greater legitimacy could strengthen their political cause and electoral presence, as the Adhaalath Party has proved in the local council polls of March 2011. The party materialised unexpected gains in the council polls, limited still as they were. Continued irrelevance on the electoral front, as happened in the presidential polls of 2008, could strengthen the resolve and determination to adopt a more extremist course.

The formation of the PPM and its political identification with the AdhaalathParty for now on the religious front has the potential to keep fundamentalist issues on the fore of the nation’s political and electoral agenda, during the run-up to the presidential polls of 2013. Shriller these sections become, in an attempt to take the elections out of better debatable issues like democracy and economy, greater will be the claims to mass-representation for their otherwise limited support-base. When, where and how the former would drown the latter, if it came to that, is hard to predict at the moment, given in particular the vastness of the nation in terms of the logistical nightmare that an election campaign faces and the prohibitive expenses that it entails. Thus Islam also becomes the first and natural choice to unite the divided Opposition in electoral terms.

President Nasheed’s camp is hopeful of his winning re-election in the first round in 2013. Yet, some voices in his MDP are already talking in public about his scoring 40-per cent and above, much less than the 50-per cent victory-mark and far lower than the 60 per cent his campaign-managers say he was sure to win. With Gayoom and his family ties to the PPM needing no reiteration, some observers think, talking about the ‘misrule’ from the past could help the Nasheed candidacy, particularly if the party were to stick to its new-found Adhaalath ally, for the second round.

From the opposition camp, too, there are hopes that focussing on religion-based issues, rather than those of democracy, economy and family rule, would take their campaign away from further internal strife within parties like DRP and PPM – and among the larger numbers, too.

Yet the official DRP opposition sounds relatively uncomfortable flagging religious issues compared to larger political and economic issues. The DRP’s weakened DQP (Dhivehi Quamee Party) has been focusing on such issues, and is now credited with obtaining a civil court order restraining the Indian infrastructure major GMR Group from collecting a higher $25 entry-fee at the Ibrahim Nasir International Airport (INIA) at Male, for which it has a 25-year modernisation and maintenance contract.

Incidentally, this means that GMR’s projected revenues will fall short by $25 million a year, and the group, it is reported, intends appealing the lower court order. In a way, the court order may have taken the arguments against the GMR contract further away from the hands of fundamentalist groups.

When the contract issues first came up before parliament and public arena in 2009, when it was signed, sections within the undivided DRP of the time, and a few others in the opposition had raised legal, constitutional and procedural issues. They had argued that involving any foreign company in airport modernisation would challenge Maldivian sovereignty. The debate lingers.

For all this however, mainstreaming of fundamentalist ideas and politics may have positive fallout, however limited, under a guided process. Mainstreaming of extreme viewpoints in other democracies has often led to moderation, if only over time. Over the short and the medium terms, sections of the polity with strong and extreme viewpoints have often tended to push their agenda, convictions and beliefs, whether in government or outside. As an Islamic democracy, Maldives is uniquely placed – and could thus become a test case, too.

The question is if the nation can allow itself to be one, now or ever. In a country, where religious moderation has been the hallmark of the society for centuries, the reverse should also be true. Allowing for evolutionary processes to take shape would be a better option rather than imposing externally-induced debates and changes on an otherwise moderate and harmonious society, it is said.

Over the past years, there have been reports of Maldivian youth attending Pakistani madrasas where they were reportedly being taught not just religion and theology but also jihadimilitancy. A 2009 report said that close to a dozen Maldivian youth were among the jihadi militants captured by the US-led forces along the Pakistan-Afghanistan border, and that they had confessed to being trained in Pakistani madrasas.

The attack thus on the Pakistani monument in Addu City thus raises questions about the authorship of fundamentalism in Maldives, but at the same time also highlights the possible consequences of either course, for Maldives in particular and neighbouring nations, otherwise.

Either way, it is felt that any Islam-centric campaign for elections-2013 would keep the fundamentalists going. They would be targetting larger stakes and goals. Considering that the Maldivian state structure and institutional mechanisms, starting with the national police force, are ill-equipped to address such issues and concerns with any amount of clarity, certainty and work-plan, in terms of intelligence-gathering and dissuasive power at the grassroots-level, President Nasheed, it is said, would be handing himself a tougher task than already in his second term, if his leadership does not drag the nation away from Islam as an election issue.

Deferring such a predicament, either for the self or for successors might still be in his hand, instead.

The writer is a Senior Fellow at the Observer Research Foundation

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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UNDP and government sign US$8.5 million project to provide freshwater

The Ministry of Housing and Environment and the United Nations Development Program (UNDP) have signed a US$8.5 million project to provide “climate smart freshwater solutions” to three densely populated islands.

According to a press release issued by UNDP on Thursday, fresh water will be provided to Ihavandho in Haa Alif atoll, Mahibadhoo in Alif Dhaalu atoll and Gadhdhoo in Gaafu Dhaalu.

Minister of Housing and Environment Mohamed Aslam said that the three islands were chosen after stringent selection criteria, primarily based on their populations and the severity of water scarcity – however, all the islands face clean water shortages, Aslam said.

The project is funded by the Adaptation Fund of United Nations Framework Convention on Climate Change and will be implemented jointly by the government, UNDP and the United Nations Office for Project Services (UNOPS).

The project is undertaken with a “view on country-wide replication and upscaling in the future” press release reads.

“The funds will pay for the establishment of integrated and resilient water supply systems; increase total freshwater storage capacity; and improve the quality of harvested rainwater in the target islands. Similarly, communal rainwater storage schemes will be strengthened, and additional production capacity for desalinated freshwater will be installed to provide backup capacity in times of water stress,” according to the UNDP.

“Artificial groundwater recharge will be enhanced to improve the quality and quantity of water stored in the natural aquifer, and contamination of household effluents will be reduced to prevent damages to the sensitive reef ecosystem”.

Speaking at the project signing ceremony Officer-in-Charge of UNDP, Sanaka Samarasinha said that the “access to water is a fundamental human right, and considering the hardships communities face accessing fresh water in the country, this project will provide clean water to more than 6700 people over the coming months,” said

Undp noted that all the islands in the country do not have a “functioning water supply and distribution network that can ensure sufficient supply of safe freshwater during dry periods” – except Male’, Vilingili and Hulhumale’.

According to the press release, water is scare in the islands due to climate change-induced decline of freshwater resources that is affecting the entire country. It further reads, the key problems pertaining to freshwater security relate to the management of increasingly saline groundwater and increasingly variable rainfall patterns.

“The project will provide a compound solution to a number of critical climate and non-climate-related problems and will be a suitable model for replication on other islands with similar vulnerabilities,” UNDPclaims.

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Police arrest four men for abducting, drugging and gang-raping 16 year-old girl

Police have arrested four suspects for the abduction and gang rape of a 16-year-old girl in a guest house in Male last weekend.

The girl was grabbed by the men while she was walking down the road around midday on December 11, forced into a car and taken to a guest house, Head of the Police Child Protection Unit, Superintendent Ali Shujau told the press on Thursday.

She was drugged by the men and gang raped, he said, adding that the men filmed the crime.

The four suspects were identified by the Police as 20 year-old Azmeel Ahmed of Hithadhooge, Seenu atoll Hithadhoo, 25 year-old Mohamed Azum of White Sea, Seenu atoll Maradhoo-Feydhoo, 19 year- old Ismail Muneez of Maafannu Hiyama and 21 year-old Ahmed Nabeeh Moosa of Maafannu Fennairu.

They all were arrested withing 34 hours after the police were alerted to the crime. All the suspects have previous criminal records for drug abuse and assaults, Shujau added.

According to the police the family reported the crime after the girl went home and told about it. Police did not reveal how the victim reached home.

Shujau noted that the girl could not give a clear statement of the attack, although she identified two of them by their “gang names”. He also added that it is too soon to say whether the attack was directed to her.

A similar case was also reported in March 2010, when group of 15 men abducted, drugged and gang raped a 20 year old girl on the island of Hithadhu in Addu City.

Shujau had earlier told the press that police investigations have revealed that school children aged 14 to 18 were being lured to guest houses by adults.

Police found that minors were sexually abused at guest houses after being lured through the internet, he said.

The reported sexual assaults on young girls, women and even female expatriate workers, has been on the rise at an alarming rate this year.

Police confirmed on Wednesday, that they had arrested four men on accusations of attempting to sexually assault a 15 year-old girl on Nolhivaramfaru in Haa Dhaalu Atoll. The girl fortunately escaped with no injuries, police said.

In October, police arrested two men and a minor on suspicion of raping an Indian nurse working in the island of Gulhi in Kaafu Atoll.

In another attack in September, group of five men including the chairman of an anti-drug NGO allegedly drugged and raped a 15 year old girl on the island of Guraidhoo in Kaafu Atoll.

In August police also arrested five men on the island of Innamaadhoo in Raa Atoll for allegedly raping a 16 year-old girl. While in the same month, an Indian gynecologist working at Hoarafushi Health Centre in Haa Alifu Atoll, was also attacked by a group of masked men at her house in August. She fought with the men and was able to escape.

A group of five were also arrested in May, on suspicion of gang raping an 18 year-old girl on Maabaidhoo in Laamu Atoll.

A 74-year-old woman was brutally raped by an alleged 19 year old on Hithadhoo in Addu City. She had to undergo surgery after the incident.

A 2006 study by the then Ministry of Gender and Family found that one in three Maldivian women aged 15-49 have experienced physical and/or sexual violence at some point in their lives, while one in five women in the same age group reported experiencing this from an intimate partner.

Moreover, one in six women in the capital Male’ and one in eight countrywide reported experiencing childhood sexual abuse under the age of 15 years.

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Independent MP proposes amendment to “defend” local businesses from airport developer

Kulhudhuffushi-South Independent MP Mohamed Nasheed has proposed an amendment to the Business Registration Bill in a bid to reserve airport shops and services for local ownership.

India infrastructure giant GMR currently claims exclusive rights to certain duty free items to be sold at Ibrahim Nasir International Airport (INIA), he said.

“My view is that GMR’s role has shifted from management to ownership,” Nasheed told Minivan News. “This is all about excessive and detrimental penetration into the local economy.”

A parliamentary committee is reviewing the bill and its proposed amendment.

In response to inquiries from Minivan News, GMR issued the following statement: “As part of the concessionaire we follow the terms and conditions of the agreement between the government of the Maldives and us and expect the government too to abide by it.

“The concessionaire agreement grants and specifies entitlement to directly or concession out retail activities at INIA.”

GMR is currently leasing Ibrahim Nasir International Airport (INIA) for a 25-year development project. Upon assuming management of the airport earlier this year, all airport shop contracts were set to expire on December 31, 2011 as per an earlier agreement with Maldives Airline Company Limited (MACL), with the exception of Spice Island.

The Economic Ministry today announced that GMR Male’ Retail has been registered in the Maldives. It is one of two locally-registered businesses under the corporation’s name.

Nasheed said his proposal refers to “duty free, customs clearance, cargo clearance, and the management of bonded warehouses,” industries which he believes can safely be trusted to Maldivian ownership.

“I have always objected to divesting ownership of Maldivian businesses with foreign investors when the business is within the local capacity and competency,” he explained.

“I respect that there are some areas of business and industry in which the Maldives has neither capacity nor competency. But the enterprises covered in my proposal have traditionally been local affairs. There is no reason to exclude them now simply as perks for foreign investors.”

Nasheed pointed out that many Maldivian businesses grew up around and depend on airport operations. Maldivian Island Aviation has allegedly lost business since the transfer of management, while the group running the Commercially Important Persons (CIP) lounge is now defunct.

In November of this year, GMR announced its intention to take control of cargo handling services starting in 2012. The move has allegedly forced Maldivian businesses Freight Forwarding Services and Bonito Group to lay off several employees.

In recent news, the Alpha MVKB duty-free shop at the airport was forcibly vacated by GMR and Customs officials eight months after GMR’s original notice. Rulings from the Civil and High courts upheld GMR’s right to terminate the shop’s contract, however company CEO Ibrahim ‘MVK’ Shafeeq has launched a protest under the slogan ‘Go GMR Go!’

“I understand the contractual obligation on the government’s part, and I respect the bidding process and the business competition that comes with it,” Nasheed reflected. “The airport is a gateway for tourism, but GMR’s excessively favorable terms are excessively disadvantageous to Maldivians.”

The Maldivian government signed a 25-year contract with GMR on 28 June 2010.

Under the contract the Maldivian government receives:

  • A sum of US$78 million as advance payment which is to be deducted from the profit due to government.
  • 1% of the Gross Revenue in the first four years (2010-2014) and 10% of the Gross Revenue from the general business in the remaining years.
  • 15% of the Gross Fuel Sales in the first four years and 27% of the Gross Fuel Sales in the remaining years.
  • GMR is also to invest US$375 million over a period of 25 years in construction of the new terminal.

Nasheed claimed that the government saw the GMR deal as an income generating source to solve income problems at the time. “But the deal wasn’t revised over the years,” and GMR has meanwhile made significant profits from jet fuel sale.

“GMR gets its fuel from State Trading Organisation (STO). STO rates have remained the same over the past year, however GMR’s rates have been raised twice.” He added that landing and airline fees have increased, and voiced concern that the price hike would deter business.

Meanwhile, GMR has recently opened a 30-office Airline Offices Complex, and several airlines including Ethihad and Hainan have lately begun services to Male’.

The Business Registration bill reserves certain areas of business for local owners. Nasheed said his proposal aims to enlarge that domain by two to three commodities.

“I intend to use my role as a parliamentarian to propose this amendment,” he said. “It’s just an initial step for the proposal, and I’m not sure whether it will survive the whole process. But I’m hopeful and I feel good about having done it.”

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Customs investigates GMR eviction of Alpha MVKB

Maldives Customs Authority has said it will take “necessary legal actions” against GMR, which it claims illegally attempted to vacate Alpha MVKB Duty-Free shop at Ibrahim Nasir International Airport (INIA), reports local newspaper Haveeru.

Customs is investigating the case, an unidentified senior official reportedly told Haveeru.

After the attempted eviction on December 5, Customs Director Ismail Nashid told Minivan News that goods at duty free shops fall under Customs’ supervision and the “unsold goods can only be taken out of the shops with their permission”.

However, “GMR took out the goods without notifying us,” a separate Customs official told Haveeru today.

GMR directed Minivan to Customs over the issue. Customs did not respond to Minivan’s inquiries at time of press.

GMR began dismantling the Alpha MVKB Duty Free Shop, which sells alcohol, cigarettes, and watches, after “several notices” to vacate the area were “ignored” by the owners, GMR’s Head of Corporate Communications, Mahika Chandrasena earlier told Minivan News.

MVK has meanwhile decided to protest GMR’s management, in spite of rulings from the High and Civil courts that GMR’s termination of its contract with Alpha MVKB Duty-Free was lawful.

The High Court noted that GMR gave notice on March 1 and, as per the agreement, the contract terminated on March 31. As no party could extend the termination notice, the court concluded that MVK had no right to remain at the airport without approval from GMR. Alpha MVKB was originally leased for 10 years under an agreement between MVK and Maldives Airports Company Limited (MACL), with a one month termination clause, the court noted.

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Opposition calls for no-confidence motion against Economic Minister over ADC

The opposition has announced it will forward a no-confidence motion against Minister of Economic Development, Mahmoud Razee, for handing the airport to Indian infrastructure giant GMR.

The Civil Court last week ruled against GMR in a case filed by the Dhivehi Qaumee Party (DQP), challenging its right to collect a US$25 (Rf385.5) Airport Development Charge (ADC) and US$2 (Rf30.8) Insurance Charge from January 2012.

The DQP had claimed that a pre-existing Airport Service Charge (ASC) of US$18 (Rf277.56) invalidates the ADC, which was specified in the concession agreement signed with the government last year.

GMR shares on the Mumbai stock exchange fell 7.57 percent on the day of Civil Court ruling, which could potentially leave GMR facing an annual US$25 million shortfall, India’s Economic Times reported.

“GMR has been permitted to collect ADC and Insurance charge under the Concession Agreement signed between GMR-MAHB, Maldives Airport Company Limited (MACL) and The Republic of Maldives (acting by and through its Ministry of Finance and Treasury), and as such has set up processes for ADC collection from 1st January 2012 supported by an information campaign to ensure adequate awareness,” the company said in a statement following media reports of the ruling.

Villufushi MP Riyaz Rasheed alleged today challenged the legally of Razee’s signing of the document, claiming that it allowed GMR to “unlawfully tax” passengers, and claimed he was responsible.

Haveeru reported that the opposition parliamentary group allied against Razee included MPs from the Dhivehi Qaumee Party (DQP), Progressive Party of Maldives (PPM) and several independent MPs.

Razee said he was “waiting for the  awaiting the motion to be duly processed.”

“There’s nothing wrong or illegal about [the contract]. It’s up to the MPs to deliberate and decide what is to be done,” he said. “If there was anything illegal, then MPs should have had a look at it when it went through the Majlis. There were some issues that were sent to the Anti-Corruption Commission (ACC), which looked into it and things moved forward.”

Following the civil court ruling last week, President Mohamed Nasheed’s Press Secretary Mohamed Zuhair said he believed the government was obligated to appeal the ruling in the High Court. However neither Zuhair nor the Attorney General were responding to calls at time of press.

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Bids open for Addu Convention Center

Bidding documents for the management of Addu’s Equatorial Convention Centre have been purchased by Immigration Controller Abdulla Shahid, MVK Maldives and Singaporean PAVL Leo.

The documents will be sold until January 18 for Rf2,000 (US$129) for locals and Rf4,626 (US$300) for foreigners. Bids are due by January 19.

The three parties were announced at a pre-bid meeting at the convention center, attended by three other interested parties: Singapore-based Jason Globe Private Limited, local company Liko Travels Private Limited and Abdulla ‘Damas’ Solih of Karankaage/Seenu atoll Hulhudhoo.

Indian and Chinese companies are still expressing interest, reports Haveeru.

The center was built this year for the 17th annual SAARC Summit on a budget of Rf150 million (US$9.7 million). The area is to be developed under the Tourism Act and the Decentralisation Act.

The bid reportedly includes the 7.7 hectares of land on which the centre is built, the 21.2 hectares of pond area that surrounds the centre, and an additional 67 hectares of land on which to build a city hotel.

Addu City Council plans to hand over the centre to a winning party in February 2012. The projected time frame is 18 months.

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