Category: Politics

Nasheed warns of “imminent sovereign debt crisis”

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

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

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

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

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

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

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

Compensation owed “in any case”

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

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

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

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

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

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

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

“Sovereign debt”

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

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

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

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

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

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

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

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

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

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

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

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

A step backwards

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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MDP calls for GMR reinstatement

Opposition Maldivian Democratic Party (MDP) has called for the reinstatement of the airport development contract with Indian GMR Infrastructure and warned the party will terminate any new agreements if it comes to power.

“The MDP immediately calls on the Government of Maldives that instead of repealing the annulled agreement in order to award it to another party, to render it to its original benefactor. The failure to conduct this repeal would allow Maldives to suffer unforeseeable risk and irrevocable harm,” the party said in a statement today.

“[T]his party on this day hereby resolves that any government formed by this party shall annul all corrupt agreements made by this government regarding the airport and render it back to whom it is rightfully due.”

The warning comes following President Abdulla Yameen Abdul Gayoom’s call for new airport developers at an investment forum in Singapore.

The GMR, in consortium with Malaysia Aiports, narrowly won the International Finance Corporation (IFC) managed bid for the airport in 2010, and signed the agreement with Maldives Airport Company Ltd (MACL) under the former government of Mohamed Nasheed.

However, following a nationalist campaign to evict GMR and Nasheed’s ouster in February 2012, new President Dr Mohamed Waheed Hassan declared GMR’s concession agreement ‘void ab intio’ (invalid from the outset) in December 2012, and gave GMR seven days to leave the country.

After Singaporean court upheld the government’s decision, the GMR filed a claim for US$ 1.4 billion in compensation from the Maldives – a figure that eclipses the annual state budget. Arbitration proceedings are now underway in Singapore.

Yameen has conceded the government must compensate GMR, but said the company is only owed US$ 300 million.

The MDP noted an Anti Corruption Commission (ACC) investigation had confirmed the GMR agreement to be corruption free and said the agreement had been made according to legal and international best practices.

The ACC noted an MACL managed airport would raise US$ 254 million in 25 years while the GMR consortium would bring in US$ 534 million.

“For these reasons the MDP Government, having found that the best advantage for the Government of Maldives would be to privatise the airport, it was assigned to GMR with the benefit and wellbeing of Maldivian people in mind; where it was impliedly and manifestly known that the matter was undertaken not for political gain but rather for the public good,” the party said.

“Notwithstanding this, those in the opposition at that time not only distorted the facts completely to the people; but the consecutive coup government that followed unscrupulously annulled the Airport Agreement. MDP is adamant to the fact that their position did not consider the wellbeing of the nation and its people.”

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Maldives should repeal the death penalty – UN Human Rights office

The United Nations Human Rights Office (OHCHR) on Tuesday voiced deep concern about a new regulation in the Maldives that effectively overturns a 60-year moratorium on the use of capital punishment in the country and allows for children as young as seven to be sentenced to death.

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

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

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

“According to the new regulation, minors convicted of intentional murder shall be executed once they turn 18. Similar provisions in the recently ratified Penal Code, allowing for the application of the death penalty for crimes committed when below the age of 18, are also deeply regrettable,” Shamdasani said.

Under international law, those who are charged and convicted for offences they commit while they are under 18 years of age should not be sentenced to death or life imprisonment without possibility of release, the spokesperson added.

Government support

Speaking at a press conference last week, Minister of Home Affairs Umar Naseer said the chances of killing an innocent person after completing all the procedures in the regulation – titled “procedural regulation on investigating and penalising the crime of murder” – was “far-fetched” and “almost impossible”.

With the new regulation, the president will no longer have this authority if a person is sentenced to death for murder by the Supreme Court, Naseer noted.

Although the death penalty has proven to be a contentious issue, Naseer assured the international community that the Madlives has a firm reason to continue with the ruling.

“There will be some parties who will be concerned about this. Concerned countries, concerned NGOs. Some counties are not too pleased with it [death penalty, but we will know about the issue of executing people in this country, the overcrowding of prisons in this country, how much the criminal environment is more lively in this country. And we are a hundred percent Islamic country and there are certain values that we all believe in,” Naseer said.

Meanwhile, President Abdulla Yameen Abdul Gayoom has called for the death penalty to be put into practice in the Maldives from as early as July 2013.

The half brother of former autocratic ruler Maumoon Abdul Gayoom, first told media of his “change of heart” while speaking on the program Voice of Maldives on July 22 2013.

Yameen explained that although he had not been not an advocate of the death penalty, he now believed it must be implemented to save Maldivian society from commonplace murders that have become too commonplace.

“Murder has to be punished with murder,” Yameen said.

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Minivan News journalist among RSF’s 100 information heroes

Minivan News journalist Mariyath Mohamed has been named an “Information Hero” by Reporters Without Borders (RSF) on the occasion of World Press Freedom Day (May 3).

The 100 information heroes “are a source of inspiration to all men and women who aspire to freedom. Without their determination and the determination of all those like them, it would be simply impossible to extend the domain of freedom,” said RSF’s Secretary General Christophe Deloire.

The RSF commends Mariyath’s coverage of the growing influence of radical Islamist groups in the Maldives in the aftermath of the controversial transfer of power in February 2012.

“I feel both honoured and humbled to receive recognition of this scale. My intention has always been to bring controversial issues to the notice of the world, and prompt discussions on the issues both locally and globally. Due to the nature of the topics, there is often as much opposition, and threats, as support. I believe we cannot make a difference unless more of us take up the challenge and speak out,” Mariyath said.

During the first five months of 2013, she was constantly followed, threatened and attacked – on one occasion by men with a steel bar.

“Your sister has hanged herself and we can help you to do the same,” an anonymous letter slipped under her door in early 2013 read.

Mariyath’s coverage of a 15- year old rape victim who was sentenced to 100 lashes shocked the international community led to the sentence being rescinded.

The list of 100 information heroes comprises women and men of all ages (25 to 75) and 65 nations.

“This initiative aims to show that the fight for freedom of information requires not only active support for the victims of abuses but also the promotion of those who can serve as models,” the RSF said.

The list includes varied figures such as Anabel Hernandez, the author of a bestseller on the collusion between Mexican politicians and organized crime, Ismail Saymaz, a Turkish journalist who has been prosecuted a number of times for his reporting, and Gerard Ryle, the head of International Consortium of Investigative Journalists for contribution to the emergence of global investigative journalism.

Glenn Greenwald and Laura Poitras, US citizens who were responsible for revealing the mass electronic surveillance methods used by the US and British intelligence agencies are also named.

In recent years, Maldivian journalists have come under growing threat with two journalists surviving murder attempts in 2013 and 2012.

In February 2013, opposition aligned broadcaster Raajje TV reporter Ibrahim ‘Asward’ Waheed was nearly beaten to death, whilst the station’s offices and equipment were destroyed in an arson attack in October.

In June 2012, two men slashed freelance journalist and blogger Ismail ‘Hilath’ Rasheed’s throat with a box cutter. Hilath is currently seeking political asylum abroad.

The RSF has ranked Maldives 108 on its World Press Freedom Index in 2014, marking a decline in press freedom for the third consecutive year. Fiji, at 107, experienced a coup in 2006, and the Central African Republic, at 109, is in the midst of a civil war following a coup in 2013.

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Audit reports released in first quarter revealed illegal expenditure worth MVR2.2 billion

Audit reports released in the first quarter of 2014 reveal financial transactions worth MVR2.2 billion (US$142 million) were conducted illegally by state institutions and corporations, according to the quarterly report (Dhivehi) of the audit office made public yesterday (April 29).

In the 14 audit reports released between January and March, the auditor general recommended recovering MVR294 million (US$19 million) from the officials responsible for the illegal expenditure.

These included MVR256.9 million (US$16.6 million) worth of unpaid dividends owed by state-owned corporations, MVR1.2 million (US$77,821) paid out as allowances to soldiers studying in the Maldives and overseas in addition to their basic salary, MVR166,324 (US$10,786) owed by an atoll councillor for residing in the atoll house free of charge, MVR23,927 (US$1,551) spent on plane tickets for a minister, and several millions owed by the Works Corporation.

The 14 reports covered the financial years 2011 and 2012 for a number of government ministries and companies, including the Defence Ministry, Finance Ministry, Civil Aviation Ministry and the Works Corporation.

The quarterly report noted that the auditor general also recommended that the Anti-Corruption Commission (ACC) investigate several cases of alleged corruption and embezzlement flagged in the 14 audits, which uncovered 163 instances of illegal expenditure or violations of public finance regulations.

In an appearance on state broadcaster Television Maldives in January, Auditor General Niyaz Ibrahim asserted that releasing audit reports was “futile” as the accountability process has so far failed.

While the audit office’s role was to conduct audits and review financial statements, Niyaz noted that the office was not legally empowered to file cases at court to recover funds or hold officials accountable for lapses.

Niyaz insisted that there was no political motive behind the timing of damaging audit reports, noting that the audit office adheres to a timetable or schedule shared with a parliamentary committee.

He also assured the public that the audit office was free of undue influence from any state official.

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Malé night market to continue despite alleged corruption

The Malé night market will continue despite the Anti Corruption Commission’s (ACC) instruction not to continue with the deal, the Malé City Council has said.

Deputy Mayor Shifa Mohamed told Minivan News their legal advisors had told them that the ACC does not have the authority stop the agreement with GoMedia from going ahead.

“They asked us to stop certain things, but it has to be finalised from the court,” Shifa said.

“So according to legal officers the Supreme Court has taken a role in saying the ACC is not a place to stop any projects,” she stated.

Shifa referred to a Supreme Court verdict in September 2013 in which the apex court said the ACC does not have the authority to stop a contract between the Maldives government and a Malaysian mobile security firm Nexbis to establish a border control system.

The ACC is consequently planning to take legal action against the Council and GoMedia.

Speaking to Vnews, ACC President Hassan Luthufee said that the Go Media agreement should not be followed by any means and that the agreement’s maintenance was a direct attempt to abet a criminal offense.

“We have forwarded the Go Media case to PG (Prosecutor General) Office for prosecution. If the present Malé City Council members are speaking with this intent, we have to investigate and prosecute them as well,” Luthufee said.

Council disputes corruption allegations

The ACC had stated that the agreement made between Malé City Council and Go Media was compiled in manner that favored some parties and paved way for possible corruption.

However, Shifa yesterday stated that investigations into corruption had not been carried out sufficiently, and questioned the thoroughness of the ACC’s research.

“The Major has sent letter telling [ACC] to redo the whole investigation,” revealed Shifa.

“When the ACC started looking there was one single letter, by a single councilor. The ACC have not really gone into depth,” she added. “They need to check all the documents.”

The arrangements for the market are well underway with many of the stalls already let out to traders, and stopping the plans now could damage many small business owners, Shifa said.

GoMedia has rented out 450 stalls and three canteens at the rate of MVR 4000 (US$ 259) each.

“Small business have already bought tables,” she explained, “we should not disappoint them. We have to consider the fact that agreement was signed.”

“The ACC’s main responsibility is to check if the project is going on properly,” Shifa continued.

She explained that any grievances the ACC may have should be put forth to the Prosecutor General.

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Nasheed backs Gasim for Speaker

Opposition leader Mohamed Nasheed has declared support for Jumhooree Party (JP) Leader Gasim Ibrahim as Speaker of the newly elected People’s Majlis.

Speaking to the media following a meeting with Gasim on Monday night, Nasheed said his Maldivian Democratic Party (MDP) parliamentary group will make a final decision on behalf of the party.

“Our party will decide on this matter on discussion among its members, within the National Executive Council. Tonight, I met Gasim and we held discussions in a very friendly atmosphere. So I hope the outcome will be beneficial to both parties,” Nasheed said.

Gasim placed third in the 2013 presidential elections and successfully sought a revote. After Gasim placed third for a second time, Nasheed sought his backing for the second round. However, the JP decided to back Progressive Party of the Maldives’ (PPM) candidate Abdulla Yameen Abdul Gayoom.

On its presidential win, the PPM and JP formed a coalition – the Progressive Coalition – along with two smaller parties. The coalition fielded joint candidates in the parliamentary elections in March. The PPM won 33 seats, the JP 15 and the MDP 26.

Tension has risen within the coalition on the question of which party should control the Speaker’s position.

Nasheed told the media that he agreed to support Gasim without any conditions and that there were benefits for the MDP and the JP from supporting Gasim as Speaker.

Gasim said all parties must come together and discuss over important issues in a democracy.

He told the press he will hold discussions with President Yameen to obtain backing from the PPM for his Speaker bid.

Meanwhile, former President Maumoon Abdul Gayoom, who is also PPM’s honorary leader spoke to newspaper ‘Haveeru’ at the airport after arriving from Srilanka and said that the normal procedure followed when appointing a Speaker of the parliament in most countries was selecting someone from the party that has the most number of MPs.

Gayoom said that PPM had not decided on the issue and will hold more discussions within the party in the upcoming days.

He also said that Gasim had told him about his interest in becoming the Speaker of parliament and said that he had not agreed to it.

In March 2014, President Abdulla Yameen said that PPM will forward its own candidate for the position of speaker of the People’s Majlis.

Parliament should be an institution that “sincerely and responsibly” fulfils the duty bestowed by the public, Yameen told his supporters in speaking at a rally at the time to celebrate the Progressive Coalition’s garnering of a 53 seat majority in Majlis elections.

“For this reason, our party wants the speaker’s post in the next People’s Majlis,” he said during the rally.

Previously, local media reported PPM MP Ahmed Mahloof as saying that both he and fellow re-elected PPM MP Ahmed Nihan had pledged to support Gasim’s candidacy for speaker while negotiating during the 2013 presidential election.

Mahloof suggested that the nomination of a PPM candidate would be likely to cause a rift within the Progressive Coalition, and would be a decision he would find difficult to support

The election of the new speaker – a position that was held by the MDP’s Abdulla Shahid in the previous parliament session – is scheduled to take place through a secret ballot of MPs at the first sitting of the new session.

Majlis regulations note that the speaker “shall be the highest authority of the People’s Majlis responsible for the conduction of all matters pertaining to the People’s Majlis including the administration, the sittings and the committees of the People’s Majlis in accordance with the Constitution and the Regulations.”

The speaker is also charged with preserving “order and decorum” within the Majlis, as well as observance of the institution’s regulations.

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