Maumoon Hameed fails to receive enough votes to secure PG role

The full floor of the People’s Majlis today rejected the president’s nominee for the vacant Prosecutor General’s (PG) position, Maumoon Hameed, four months after he was initially put forward.

After beginning late due to an insufficient number of MPs present to form a quorum, MPs present voted in favour of appointing President Abdulla Yameen’s nephew by 36 votes to 17 – three votes short of the total majority needed to approve a new PG.

Meanwhile, all MPs present today approved the appointment of Dr Azeema Adam to the post of Governor of the Maldives Monetary Authority.

Maldivian Democratic Party (MDP) Spokesman Hamid Abdul Ghafoor – who voted against Hameed’s appointment today – suggested that the failure to secure their nominee could have been a result of poor organisation on the part of the ruling Progressive Party of Maldives (PPM), or perhaps a sign of further discord within the pro-government coalition.

“MP Gasim Ibrahim [Jumhooree Party leader] was openly lobbying against the PG nominee 30 min before vote but voted with PPM”, claimed Hamid, noting the conspicuous absence of a number of prominent government-aligned MPs today.

Tension within the Progressive Coalition has been evident since before last month’s polls, with overlapping candidacies and competition for the Majlis speaker’s position – openly coveted by Gasim – contributing to rumours of a rift.

Both the President’s Office and PPM spokesmen were unavailable for comment at the time of press.

The PG’s position has been vacant since former PG Ahmed Muiz resigned from the post prior to a scheduled no-confidence vote last November. The opposition MDP brought the motion after suggesting Muizz had failed to take action against security forces who mutinied on February 7, 2012.

The Majlis’ oversight committee earlier this month recommended Hameed not be approved for the position, with committee chair Rozaina Adam telling Minivan News that the nominee had failed to meet the group’s assessment criteria.

The oversight commission had previously delayed proceedings in order to seek public opinion on Hameed’s appointment, taking the decision far beyond the thirty days the constitution allows for the post to remain vacant.

This extended delay brought the PG’s Office – temporarily headed by Deputy PG Hussain Shameem – into conflict with the Criminal Court, which had refused to accept new cases before being repeated requests from the Supreme Court to resume normal practice.

Shameem continues to maintain that the Criminal Court has rejected around one third of cases forwarded, on questionable grounds, though the court has told local media that these cases were in fact ‘returned’ for amendments.

While pro-government parties hold a slight majority in the current parliament, last month’s election for the 18th Majlis – scheduled to begin on May28th – saw the Progressive Coalition win 53 of 85 seats on offer.

A number of post-election acquisitions has since assured the group of a two thirds majority in the new session, making it possible that the government will forward Hameed’s name again, suggested Hamid.

Lawyer Maumoon Hameed is the son of the Gayoom administration’s Atolls Minister Abdulla Hameed, and the nephew of incumbent President Yameen and ruling Progressive Party of Maldives leader Maumoon Abdul Gayoom.

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Umar calls on coalition to downsize democracy using “super majority”

Minister of Home Affairs Umar Naseer has said the democracy imported from the west with the 2008 constitution is too big for the Maldives and and needs to be fitted to the country’s laws and the constitution.

Speaking at an event held at Thajuddin School last night to celebrate the Jumhooree Party’s (JP) parliamentary election success, Umar called on all MPs-elect from ruling coalition to assist in bringing this change using the parliamentary “super majority”.

“The result of having huge democracy coat is, you step on it when you are walking. And it’s sleeves are too long. So we need to re-size and fit this coat,” he said.

“Those who got elected [to the parliament] from Jumhooree Party, PPM [Progressive Party of Maldives] and MDA [Maldives Development Alliance], I request [you] to resize this coat so it would fit better. Some minor adjustments to laws are required to achieve that.”

Umar said the laws and regulations have “surrounded and tied up” the judicial system and that this makes it difficult for the state to move.

He also said that sloppy and slow-moving laws have become an obstacle in controlling the drug abuse issue and in penalising people arrested for drug-related and other crimes. He described the legal difficulties as being “stuck legal traffic”.

Umar noted that the “super majority” in the parliament is a golden opportunity for the ruling coalition to develop the country.

After a number of post-election defections, the Progressive Coalition has swelled to 57 members of the expanded 85 member Majlis, with 37 Progressive Party of Maldives members, five from the Maldives Development Alliance and 15 from the JP.

Speaking after the Home Minister yesterday evening , JP leader Gasim Ibrahim – who chaired the People’s Special Majlis which drafted the constitution – said the coat of democracy is perfectly fit for Maldives and the constitution does not require any amendments.

He said what is needed is for the person implementing the law to know how to do it.

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Gasim warns government against betraying coalition, says JP sidelined from victory rally

Speaking at the Jumhooree Party (JP) parliamentary election victory rally ‘Dhivehi Rayyithunnah Saabas’ last night the party leader Gasim Ibrahim warned that failing to fulfill coalition promises would be bad.

Gasim said that he had been doing everything President Abdulla Yameen has asked of him and that he expects the ruling coalition not to betray the promises made amongst the allies.

Stating that things should not be forgotten, and that promises should be fulfilled, Gasim said any failure to do so would “result in zero”.

The JP leader noted that while his party was promised 35 percent in the government, only 29 political appointments have been allocated to them so far.

“For example, if the government is making 400 political appointments, 29 is not 35 percent of that amount. [If it is 35 percent] there would be more. But if 29 appointments is 35 percent [of political appointments] then we are content.”

“But if we consider this figure, it should definitely reach 100. If this is not the case [we have to] look in to this,” Gasim said.

Gasim argued that the JP had lost ten seats in the parliamentary elections due to some “other reasons”, the details of which he said he does not want to delve into. Otherwise, he argued, the party could have won in 25 out of the total 28 constituencies in which he competed.

Gasim has earlier said that leading figures from the Progressive Party of Maldives (PPM) competed as independents in eight of the 28 constituencies allocated for JP under the coalition seat allocation deal. Pro-coalition Adhaalath Party – sidelined from the deal – also ran in constituencies allocated for both the PPM and JP.

Earlier this month the ruling progressive coalition led by President Yameen’s PPM held a rally to mark the parliamentary election victory, but the JP was not present at the event.

Explaining JP’s absence, Gasim said said yesterday that it was not a coalition event but a PPM event. He said no JP members were given the opportunity to speak at the rally – “not even to give words of thanks”.

He said the PPM leadership refused a request to alter the rally agenda to allow JP members to speak.

The JP backed PPM the second round of presidential election 2013 after failing to reach a deal to contest with a single candidate in the re-run of the first round. The JP backing was essential for President Abdulla Yameen’s win over Maldivian Democratic Party’s Mohamed Nasheed in the second round.

Since the coalition government was formed – with the JP promised 35 percent in the government- the two parties have faced a number of major disagreements, though both have denied claims of a rifts in the coalition.

A major poing of contention was during the budget allocation last December when President Yameen requested that the PPM decide upon the details of the budget. JP leader Gasim said his party was not consulted regarding the budget and proposed a number of amendments.

More recently, both parties decided to field separate candidates for the position of parliament speaker creating further tensions within the coalition.

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PG office presses corruption charges against Supreme Court Justice Ali Hameed

The Prosecutor General’s (PG) office has pressed corruption charges against Supreme Court Justice Ali Hameed Mohamed over the illegal transfer of credit from his state-funded mobile phone in 2010.

A media official from the Criminal Court told Minivan News today that the court has yet to make a decision on hearing the case.

Cases filed by the PG office are scrutinised in the order of submission “to make sure all the paperwork is complete and that there are no missing documents,” he explained.

The process normally takes “two to three days,” the media official said.

The case against Justice Hameed – accused of abuse of authority to benefit a third party – was sent to the PG office in July 2013 by the Anti-Corruption Commission (ACC) after investigating allegations in the 2010 audit report of the Department of Judicial Administration.

Auditors found that a Supreme Court Justice transferred MVR2,223 (US$144) from his state-funded mobile phone on different occasions during 2010.

According to the audit report, the interim Supreme Court bench on October 23, 2008 decided to provide for each justice “a post-paid line, a phone and to pay the phone bill without a set limit out of the court’s budget”.

“From October 2008 to December 2011, a total of MVR281,519.71 (US$18,256) was spent on phone bills,” the report stated.

Charge sheet

The Bar Association of Maldives last week called for the suspension of Justice Hameed pending an investigation into his alleged appearance in a series of sex tapes that emerged online last year.

After the sex tapes of Hameed engaging in sexual relations with three prostitutes in a Sri Lankan hotel room surfaced in May 2013, the judicial oversight body, Judicial Services Commission (JSC), set up committees to investigate the case twice – in May and December 2013.

Both subcommittees unanimously recommended the JSC suspend Hameed pending an investigation.

However, in July 2013, the JSC disregarded the recommendation citing lack of evidence, while a JSC decision on the December subcommittee’s recommendation is still pending.

Meanwhile, the 2010 audit also discovered that MVR13,200 (US$856) was spent out of the apex court’s budget to repair a state-owned car used by an unnamed Supreme Court Justice, later revealed in the media to be Justice Hameed.

According to the police report cited by auditors, the driver of the justice’s car was responsible for the accident, which occurred on January 23, 2011.

However, the official driver insisted the car was undamaged when he parked and left it the previous night.

Despite the findings of the audit report, in March 2011 the Supreme Court dismissed allegations of corruption reported in local media regarding phone allowances and use of court funds to repair Justice Hameed’s car.

Moreover, in September 2011, the ACC began investigating allegations that over MVR50,000 (US$3,200) of state funds was spent on plane tickets for Justice Hameed’s official visit to China in December 2010.

The complainant alleged that Hameed also visited Sri Lanka and Malaysia both before and after his trip to China to attend a conference by the International Council of Jurists.

A return ticket on a direct flight from Malé to Beijing at time cost MVR16,686 (US$1,080).

Furthermore, in May 2012, the ACC revealed that Justice Hameed was among three sitting judges illegally occupying state-owned apartments.

The commission contended that a decision by parliament’s finance committee to allow the judges to purchase the flats in Sina-Male’ contravened the Judges Act and the constitution.

The ACC explained that it investigated a complaint alleging three senior judges were occupying state-owned apartments while simultaneously receiving living allowances.

The flats were leased during President Maumoon Abdul Gayoom’s administration by the former Justice Ministry and High Court under terms that would see the now-defunct ministry and High Court gain ownership upon completion of full payment

The three judges had reportedly been paying rent for the flats in the government-owned Sina-Malé apartment blocks when the committee decided to grant them ownership upon completion of full payment.

The ACC found that the Finance Committee’s decision to register the flats to the judges was in violation of article 102 of the constitution and article 38 of the Judges Act as well as section 100(a)(11) of the parliamentary rules of procedure.

Article 39(b) of the Judges Act states that judges in the same court shall be given the same amount as living allowances and prohibits “different kinds of living allowance or benefits for different judges.”

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Home Ministry publishes list of detention centres four days after deadline

The Ministry of Home Affairs has published a list of detention centres four days after a legally-mandated deadline elapsed.

The home minister was required by the the recently passed Anti-torture Act to make public a list of prisons and detention centres where individuals are held in state custody.

The anti-torture law that came into effect on March 22 stipulated that the list must be publicised within 15 days (before April 6).

The document (Dhivehi) released last night (April 10) listed 29 detention centres, including the main prison on Maafushi island, the low-security facility on Himmafushi, the Malé jail, custodial centres in the capital and Dhoonidhoo as well as 18 police stations across the country.

An official from the home ministry told Minivan News yesterday that the delay in publishing the list was due to difficulties obtaining information from other state institutions.

Human Rights Commission of Maldives (HRCM) member Jeehan Mahmoud said it was “disheartening to know that the first violation under this act has been by the state.”

A reminder was sent to the ministry in writing before and after the deadline passed, Jeehan noted.

The HRCM would decide on a course of action following a meeting of the commission’s five members, she added.

Overall responsibility for implementing the new law was entrusted to the HRCM, which was legally empowered to take direct action against offences specified in the legislation.

The Home Ministry was also required to compile a report on the detention centres to be submitted to the HRCM within seven days of publishing the list.

Article 23(g)(3) of the act states that the penalty for failing to submit the report would be imprisonment of between one to three years.

Criminal offences specified in the law are to be investigated by the commission and forwarded to the Prosecutor General’s Office for prosecution.

Jeehan said the commission was monitoring the deadlines and would take action against violations, declining to comment on the possibility of pressing criminal charges against Home Minister Umar Naseer, who is currently overseas.

Opposition Maldivian Democratic Party MP Eva Abdulla – who submitted the bill to parliament – said it was “not surprising that a government controlled by the Gayoom family would be hesitant, even reticent to implement anti-torture legislation.”

Eva stressed that the law should be implemented on schedule in order to address the resurgence of custodial abuse.

“We are very concerned about reports of ill-treatment and physical abuse in the prisons again. The legislation needs to be implemented on schedule to address this and to address the feelings of past victims. Implementation needs to be flawless,” she said.

The HRCM meanwhile noted last month that incidents of torture in detention were on the rise while the UN Human Rights Committee in July 2012 said incidents of torture in the Maldives “appear systematic and systemic” and expressed “grave concern” over the low number of cases that have been investigated.
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Committee approves amendment for state to cover expenses of president’s and vice president’s private residences

A parliamentary committee has approved amendments proposed to the law governing remuneration and benefits for the president and vice president for the state to cover expenses of the pair’s private residences.

If the president and vice president choose not to live in the official residences, the amendments stipulate that the state should provide employees and cover other expenses out of the budget allocated for the official residence.

The amendments submitted by Progressive Party of Maldives (PPM) MP Riyaz Rasheed were sent to a select committee for review following preliminary debate on March 31.

The bill was sent to committee with 29 votes in favour and 17 against with no abstentions. While pro-government MPs voted in favour, MPs of the opposition Maldivian Democratic Party (MDP) voted against the legislation.

After completing the review process in two meetings, the seven-member committee voted unanimously to send the bill (Dhivehi) without any changes to the People’s Majlis floor, where it will be put to a vote.

In addition to Riyaz Rasheed, the select committee comprised of government-aligned Jumhooree Party (JP) MPs Ilham Ahmed, Hussain Mohamed, and Ahmed Sameer along with PPM MP Moosa Zameer, Maldives Development Alliance MP Ahmed Amir, and Adhaalath Party MP Ibrahim Muttalib.

The opposition MDP was not represented in the committee.

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

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

After assuming office, President Yameen announced that he would continue to live in his private residence while Dr Jameel moved into the official vice presidential residence, Hilaaleege.

However, despite Yameen’s decision, the budget allocated for the official residence was increased by MVR2 million (US$130,208) in the state budget for 2014 – rising to MVR19.1 million (US$1.2 million).

In December last year, Parliament’s Budget Review Committee Chair Gasim Ibrahim – leader of the JP – said the increased budget was necessary in case the president decides to move to Muleeage.

Highlighting the increased budget for Muleeage at the time, MDP Spokesperson Hamid Abdul Ghafoor described Yameen’s decision to live in his personal house as a “symbolic act.”

“Unlike in the past, even media points out inconsistencies in what leaders say and what reality presents these days. I do not believe the public will be deluded about any of this,” Hamid said.

“While Yameen might have thought his decision will get people thinking that he is a humble man, reality is that ultimately, the state is having to spend much more of its funds to maintain this decision of his. People are much more aware now than in previous PPM times. People can see he’s just trying to score political points.”

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MIRA to collect additional MVR110 million from telecoms tax

The Maldives Inland Revenue Authority (MIRA) expects to collect an additional MVR110 million (US$7.1 million) per year from taxes on the the telecommunications sector.

MIRA announced this week that telecommunications services will be subject to Goods and Services Tax (GST) – currently at 6 percent – from May 1.

The move comes as the government continues to introduce new revenue raising measure to address the MVR3.4 billion (US$224 million) shortfall in this year’s record MVR17.95 billion budget.

On Monday (April 14), the People’s Majlis is set to consider amendments to the Import-Export Act which propose raising custom duties on a number of items from the current zero rate to five, 10, and 15 percent or higher.

The items include diesel, sugar, sweets, cotton, rope, carpets, textiles, fur, man-made filaments, ready-made garments, and steel.

This week has also seen MIRA release its March revenue figures, which show an increase of 22 percent compared with the same month last year.

March’s figures were distorted, however, after after February’s GST payment date was extended into March as the deadline fell during a holiday.

The figures show that 54.8 percent of revenue came from GST, which includes Tourism Goods and Services Tax (T-GST) – scheduled to rise from the current 8 to 12 percent in November this year.

Last month’s figures showed a marked improvement on the previous month’s collections after the Majlis’ failure to renew the tourism bed tax in December had resulted in reduced earnings during January (reflected in February’s collections).

After the Finance Minister Abdulla Jihad warned that this loss of income could amount to US$6million month, the decision was made to reintroduce the bed tax – charged at a flat rate of $8 per bed night – until November this year.

Bed tax amounted to over US$4.5 million in March, or 7.1 percent of MIRA’s collected revenue which came to MVR938.2 million. Over 75 percent of March’s income was received in US dollars.

The authority’s figures for 2013 showed an income of MVR8.7 billion – of which 60 percent was denominated in dollars.

Despite this foreign currency income, however, dependence on imported goods results in a persistent dollar shortage, with just 2.7 months worth of reserves remaining at the end of February.

Proposals to increase government revenue were debated during February’s emergency Majlis sessions which also resulted in the requirement that resort lease extensions be paid within 2 years.

Additionally, the government has suggested that the Airport Service Charge, which has seen MIRA collect US$7.9million from foreigners leaving the country this year, be increased by 38 percent.

A World Bank report at the end of 2013 urged the government to reduce spending in order reduce the “unsustainable” public debt which currently stands at 81 percent of GDP, and could rise to 96 percent by 2015.

“Maldives is spending beyond its means and financing the budget risks affecting the real economy,” the report said.

Meanwhile, the outgoing governor of the MMA in December called for the state to reduce expenditure and to cease from printing money.

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Night market contract terminated, ACC informs city council

The Anti-Corruption Commission (ACC) has informed Malé City Council that its agreement with Go Media Pvt Ltd for organising the annual night market in the capital was terminated last year.

In a press release yesterday, the commission noted that it had been informed by the previous city council on November 21 that the five-year contract with Go Media had been invalidated.

The ACC press statement comes after Go Media announced that this year’s night market will be held from May 1 to 10 at the tsunami memorial area with 460 tables and 62 tents.

Go Media General Manager Ibrahim Amir told local media that the company had not been informed of the termination, suggesting that this could only be done by a court following litigation.

The ACC has yesterday noted that it had received a copy of a letter sent to Go Media by the city council informing the company of the contract termination.

“And the council has been told that the commission believes that going ahead with the terminated contract would be unduly benefiting a particular party,” the statement read.

Go Media’s Amir revealed that 85 percent of stalls had been sold already, noting that preparations for the market were ongoing with the city council’s authorisation.

Mayor Mohamed Shihab meanwhile told the press that the night market will go ahead as scheduled as the council has not been ordered by any state institution to terminate the agreement.

The new council’s stance was to honour agreements entered into by the previous council, Shihab said, contending that the council could be sued if it terminated contracts on its own accord.

Shihab said, however, that the council would comply with instructions from relevant authorities to cancel any agreement.

“I am surprised that the ACC has not told us to terminate the agreement if there was corruption involved,” he was quoted as saying by newspaper Haveeru.

The mayor was unavailable for comment today.

Corruption

Earlier this month, the ACC asked the Prosecutor General’s (PG) office to press corruption charges against three ex-councillors as well as three senior staff over alleged abuse of authority in the awarding of the contract to Go Media.

Following an investigation – prompted by a complaint filed in March 2013 alleging corruption in the bidding process –  the ACC found that Go Media Pvt Ltd was registered eight days before the city council’s announcement seeking a party to organise the night market.

However, the council awarded full marks to the company for experience during its bid evaluation process, the ACC revealed.

While the committee that evaluated the proposal determined that Go Media’s team had experience in organising such events, the ACC noted that the company did not submit any documentation as proof of experience.

Moreover, the council’s request for information document did not state that marks would be awarded for experience.

Of the three ex-councillors facing corruption charges, Ibrahim Shujau and Ahmed Hameed ‘Fly’ were elected on Dhivehi Rayyithunge Party tickets in 2011 before defecting to the Maldivian Democratic Party (MDP) and the Jumhooree Party, respectively.

The third ex-councillor – former Deputy Mayor Ahmed Samah Rasheed – was elected on an MDP ticket.

Shujau meanwhile contested in last month’s parliamentary elections as the MDP’s candidate for the Galolhu South constituency, losing to incumbent MP Ahmed Mahloof.

None of the 11 councillors of the Male’ City Council elected in February 2011 were re-elected in the second local council elections that took place on January 18.

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Government to address pay discrepancies as civil servants plan strike action

The Maldives Civil Servants’ Association (MCSA) has discussed a potential strike on April 20 should the government fail to address its concerns – mainly concerning pay discrepancies.

“First we want to find a solution through dialogue with the government. After that, if we have to, we will go on strike. And we are confident if we go on strike ninety percent of civil servants will support it,” MCSA President Mohamed Shaugee said.

Stating that the past three governments and parliament should take responsibility for the delay in setting a minimum wage, Shaugee said “the state as a whole has failed”.

President Abdulla Yameen is concerned about the issue of pay discrepancies and will find a solution through discussions with relevant parties, President’s Office Spokesperson Ibrahim Muaz Ali has said today.

“This is not a president who makes decisions based on his personal views alone. There will be discussions. The views and sentiments of the civil servants, doctors, and everyone will be considered in reaching a decision in this matter,” said Muaz.

Civil Servants’ Strike

“Even the Civil Service Commission has failed to protect the rights of civil servants and ensure there is no discrimination [with regards to pay],” said the MCSA’s Shaugee.

“We have discussed this with them, and they said they are working on resolving it. But it is hard to believe as we have been talking about this for the past six years.”

Responding to the civil servants’ plans to go on strike, the Civil Service Commission (CSC) issued a press release today reminding workers of the mandatory steps to be taken prior to a strike, which include filing a complaint with the Labor Relations Authority and giving written notice to the employer three days prior to any strike.

Employees who contravene this regulation can be fined between MVR10,000 – 50,000.

The Teachers Association Maldives (TAM) which led the teachers’ black protest earlier this week  has also threatened to go on strike as a last resort in their fight to resolve pay discrepancies.

President of the association Athif Abdul Hakeem said that, while no official discussions have taken place with the government since the protest, the teachers’ steering committee and focal points will meet this Friday to decide their course of action.

“We have been talking about [minimum wage] since the association was formed in 2008. We have been focusing on two major issues, one is resolving pay discrepancies. Equal pay. Second issue is improving the education sector in general, including resources, training and standards of teachers,” said President of TAM Athif Abdul Hakeem.

Athif noted that with parliament majority, the government can easily change things if there is a political will.

“If [President Yameen] wants to do those things for us, the means are there now. I believe it can be done and it should be done.

The demand for a minimum wage has been raised by Tourism Employees Association of the Maldives (TEAM) as well.

Minimum wage

The Employment Act of 2008 mandated the establishment of  a salary advisory board shall be established to advise the government on the appropriate minimum wage, though no government has yet fulfilled this requirement.

The pay advisory board had been established in September 2008 by President Maumoon Abdul Gayoom and again in January 2009 by President Mohamed Nasheed, with no minimum wage resulting.

In May 2011, Nasheed announced his intention to set a minimum wage within a year, reconvening the pay advisory board.

Shortly after Nasheed’s initial promise, a number of business groups led by representatives of the Maldives Association of Construction Industry and the Maldives Association of Tourism Industry met to discuss the issue, determining that a minimum wage was “not important for the Maldives at the moment.”

Speaking at the press conference organised by the business groups, leader of the Jumhooree Party and Chairman of Villa Group Gasim Ibrahim said that setting a minimum wage suddenly without a good policy would destroy industry.

His thoughts were echoed by Ahmed Shiyam, Chairman of Sun Siyam resorts and leader of the Maldives Development Alliance.

Similar comments were made by current Deputy Leader of PPM Ahmed Adeeb, who at the time spoke as the treasurer of Maldives National Chamber Of Commerce and Industry.

Adeeb said that it would create great challenges for businesses if an equal minimum wage is set for both migrant workers and locals.

In December 2012, parliament passed a bill on the state wage policy which promised to resolve public sector pay discrepancies through the creation of a National Pay Commission.

The bill is still in the parliament’s economic committee, however, after being sent back for reconsideration by President Dr Mohamed Waheed, after issues were raised regarding which branch of the state would determine wages.

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