Ahmed Naish – Page 13 – Minivan News

Parliament removes its requirement to authorise government loans

Parliament passed amendments to the Public Finance Act today reversing changes brought to the law in 2010 requiring parliamentary approval for obtaining loans, providing sovereign guarantees, and leasing or selling state assets.

During the final debate at today’s sitting of the People’s Majlis, opposition Maldivian Democratic Party (MDP) MP Ibrahim Mohamed Solih said he believed the government should have “the power and discretion” to obtain loans and conduct its programmes.

However, the MDP parliamentary group leader objected to scrapping a provision in the public finance law that prohibits expenditures in excess of funds allocated in the annual budget.

If Article 34(b) is abolished, Solih said the finance minister would not have to ensure that spending was in line with the budget approved by parliament.

If MVR800 million (US$51.8 million) was allocated to the police, Solih explained that the finance minister could approve MVR1 billion (US$64.8 million) for the institution.

“The purpose of passing the budget would be completely lost if this article is abolished,” he said.

Following the debate, the government-sponsored amendments (Dhivehi) were passed with 41 votes in favour, 25 votes against, and one abstention.

While Jumhooree Party MP Hussain Mohamed proposed adding clauses to require the government to provide information concerning loans and financial assistance to parliament within 45 days, neither amendment passed after pro-government MPs voted against the proposals.

The MP for Mathiveri had argued that the current law would not hamper the daily functions of the government as a decision to take a loan or provide a sovereign guarantee would not be made “one morning at the office”.

On the issue of delays in securing parliamentary approval, Hussain noted that the economic affairs committee completed its review of the amendments in two and a half hours.

“So what is the delay here? [The amendments] will be passed today. It has probably been just a week since it was submitted,” he said, noting that pro-government MPs were in the majority.

He further urged pro-government MPs to read Majlis minutes from 2010 to see how then-opposition leaders spoke in favour of the amendments.

Progressive Party of Maldives (PPM) MP Jameel Usman meanwhile said parliament unduly assuming executive powers would pose difficulties in providing services to the public.

“Our responsibility should not be stopping things but monitoring,” he said.

Restrictive

Last week, Finance Minister Abdulla Jihad told parliament’s economic affairs committee that the government faced serious difficulties due to the requirement to seek parliamentary approval before obtaining loans.

Similar requirements did not exist in any other country, he added.

Jihad referred to a loan obtained from the Bank of Maldives during President Dr Mohamed Waheed’s administration without parliamentary approval as Majlis was in recess at the time and the funds were needed to pay salaries of government employees.

In December 2013, the Auditor General’s Office revealed that President Waheed’s administration violated finance laws in securing a domestic loan worth MVR300 million (US$ 19.45 million) from the Bank of Maldives (BML) for budget support.

Meanwhile, in May, President Abdulla Yameen suggested that the requirements of the public finance law were hampering the functioning of the executive.

The government was forced to seek parliamentary approval “even for a MVR1,000 (US$65) loan,” he said.

Yameen contended that laws imposing “various restrictions” on the executive were passed by the previous People’s Majlis due to the “irresponsibility” of the former head of government.

The passage of the amendments in 2010 prompted the en masse resignation of former President Mohamed Nasheed’s cabinet on June 29, 2010 in protest of the opposition’s alleged obstruction and “scorched earth” policy.

While former Special Majlis MP Ibrahim Ismail ‘Ibra’ characterised the amendments as the “grand finale of decimating the executive,” the Nasheed administration filed a case at the Supreme Court contesting the constitutionality of some provisions.

Yameen, who was leader of the minority opposition People’s Alliance at the time, said Nasheed’s “selling off of state assets and giving up uninhabited islands” had prompted the opposition’s actions.

“When many such actions that were harmful to the public occurred, a group of people advocating as the people’s representatives – myself included – determined things that cannot be done without a say of the parliament and passed a law called the Public Finance Act to hold the government accountable,” he had said in May.

Following the controversial transfer of power in February 2012, the new administration – made up of former opposition parties – sought to reverse the restrictions concerning the sale and lease of state properties.

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More than seven Maldivians fighting in foreign civil wars, reveals home minister

More than seven Maldivians are currently fighting in foreign civil wars, Minister of Home Affairs Umar Naseer revealed at the People’s Majlis today.

Responding to a query during minister’s question time from former police commissioner and Jumhooree Party MP Abdulla Riyaz about the ministry’s efforts to prevent Maldivians joining civil wars in foreign nations, Naseer said police were monitoring persons with extremist religious views.

“In such cases, persons attempting to leave abroad with the intention of joining civil wars have been stopped with court orders and prohibited from leaving,” he said.

“And the passports of some people have been withheld for a period determined by the court.”

Maldivian jihadis have also been brought back to the country with help from foreign law enforcement agencies, he added.

However, police faced difficulties in proving guilt at court of persons intending to join foreign civil wars, he continued, suggesting that the evidentiary standard should be lowered for terrorism cases.

Police were also working with the Islamic ministry to provide religious counselling and advice to discourage Maldivians from flying overseas to fight in civil wars, Naseer said.

Efforts were meanwhile underway to establish an efficient mechanism for taking action based on intelligence information, Naseer said.

While neighbouring countries provide assistance in returning Maldivians intending to travel for jihad, Naseer said the government was unable to bring back Maldivians who have made their way into Syria.

The government is studying a recently-approved UN security council resolution on foreign terrorist fighters, Naseer said, and would comply with obligations.

A strategic action plan is also being implemented to combat religious extremism, he added, which involved prevention of radical views in public schools.

Asked about efforts to prevent recruitment in the country, Naseer said the government has banned independent prayer congregations across the country.

Naseer denied claims by opposition Maldivian Democratic Party (MDP) MP ‘Reeko’ Moosa Manik that Maldivian students who went to Sudan through the Islamic ministry in 2012 are involved in violent conflicts.

He also denied MDP MP Abdul Bari Abdulla’s allegation that government ministers were involved in a “network” for recruiting Maldivian jihadis with help from foreign terrorist organisations.

Police intelligence officers were constantly monitoring alleged recruitment efforts, Naseer said, insisting that foreign terrorist organisations or religious extremists would not be able to interfere in domestic affairs.

“The number of Maldivians participating in foreign wars would be proportionately much lower than large European nations,” he said.

Islamic State

Last month, a jihadist media group called Bilad al-Sham – which describes itself as ‘Maldivians in Syria’ – revealed that a fifth Maldivian had died in Syria.

Earlier in the month, Sri Lankan police detained three Maldivians who were allegedly preparing to travel to Syria through Turkey.

The three – two men aged 23 and 25, and a woman aged 18 – were from the island of Madduvari in Raa atoll and were released from custody upon being brought back to the Maldives.

The incident followed reports of a couple from Fuvahmulah and a family of four from Meedhoo in Raa atoll traveling to militant organisation Islamic State-held (IS) territories to join the fighting in Syria and Iraq.

A UN report obtained by the UK’s Guardian newspaper earlier this month observed that foreign jihadists were now travelling to Syria and Iraq on “an unprecedented scale”.

The report mentioned the Maldives as one of the “unlikely” places from which IS supporters have emerged.

Meanwhile, a protest march took place in the capital, Malé, in September, with around 200 participants bearing the IS flag and calling for the implementation of Islamic Shariah in the Maldives.

In late August, Foreign Minister Dunya Maumoon issued a press statement condemning “the crimes committed against innocent civilians by the organisation which identifies itself as the Islamic State of Iraq and the Levant or the Islamic State of Iraq and Syria.”

Dunya’s remarks followed Minister of Islamic Affairs Dr Mohamed Shaheem Ali Saeed’s declaration that the ISIS would not be allowed to operate in the Maldives.

“ISIS is an extremist group. No space will be given for their ideology and activities in the Maldives,” Shaheem tweeted on August 24.

Shaheem had also appealed for Maldivians to refrain from participating in foreign wars and has recently defended the government’s record on extremism before the Majlis.

The Maldivian Democratic Party (MDP), however, promptly put out a statement questioning Shaheem’s sincerity, suggesting that the words had not been backed up with concrete action by the government.

Former President Mohamed Nasheed has claimed that up to 200 Maldivians are on jihad, alleging that a vast majority of them are ex-military – a claim vehemently denied by the security services.

“Radical Islam is getting very very strong in the Maldives, their strength in the military and in the police is very significant. They have people in strategic positions within both,” Nasheed said in an interview with UK’s Independent newspaper.

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Foreign terrorist organisations planning to topple government, claims Nasheed

Foreign terrorist organisations are planning to overthrow President Abdulla Yameen’s government with help from elements of the police and military, former President Mohamed Nasheed has claimed.

“The government of our country is on the edge of being toppled. Foreign terrorist organisations and domestic institutions are carrying out this work swiftly together,” Nasheed said at a gathering of the opposition Maldivian Democratic Party (MDP) last night near the Hulhumalé ferry terminal in Malé.

The opposition leader accused President Yameen of attempting to conceal the alleged efforts from the public, which Nasheed said would not benefit either Yameen or the Maldives.

The MDP would remain vigilant and watch developments closely, he said, adding that the party did not want any harm to befall the nation.

In late September, Commissioner of Police Hussain Waheed dismissed allegations of links between Maldivian security services and foreign terrorist organisation as false and intended to bring disrepute to the police and military.

Waheed said such claims were harmful to national interest, adversely affects the economy, and could incite unrest and strife among the public.

Allegations that damage national interest and threaten national security would be investigated, Waheed warned, and “necessary action would be taken.”

Waheed’s remarks followed Nasheed claiming in an interview with the UK’s Independent newspaper that the vast majority of Maldivians fighting in Syria and Iraq were ex-military.

Following the opposition Maldivian Democratic Party’s claim in May that extremist ideologies were prevalent in the security services, the defence ministry dismissed the allegations as both “baseless and untrue” and intended to “discredit and disparage” the military.

The Maldives Police Service (MPS) meanwhile issued a press release on September 18 condemning Nasheed’s allegations in the Independent.

While police estimated that about 24 persons with links to militant jihadist organisations might be active in the Maldives, MPS insisted that none of them were police officers.

“And the police leadership has always been working to ensure that such people are not formed within the police,” the statement read.

Police urged all parties to refrain from making false statements “to gain the public’s support, achieve political purposes, or win approval from foreign nations”.

Police and gangs

Nasheed meanwhile went on to say that the unexplained disappearance of Minivan News journalist Ahmed Rilwan109 days ago symbolises the extent to which security and personal safety have been lost.

The police had solved only 53 of the 465 cases filed this year, Nasheed claimed.

The reason police are unable to properly investigate the cases was due to the involvement of police officers in most of the cases, he alleged.

Elements of the police and military were tied to criminal gangs in Malé, he continued, which were in turn connected to foreign terrorist organisations.

“We see all the dark activities happening in the Maldives going on through this connection,” he said.

Nasheed had previously suggested that radicalised gangs were behind the recent “atrocities” in the capital, noting that extremist religious indoctrination of youth was a relatively recent phenomenon in the Maldives.

He further claimed that many young men from criminal gangs were seen in a protest march held in Malé on September 5 with participants bearing the militant organisation Islamic State (IS) flag and calling for the implementation of Islamic Sharia.

Of the approximately 150 participants, Nasheed had said most were “active in gangs.”

Referring to a bomb threat made to a Flyme passenger flight this week, Nasheed noted last night that the incident occurred a year after a Flyme flight departing to Gaaf Dhaal Atoll Kaadehdhoo was delayed after a group threatened to hijack the plane.

“But police did not investigate the case,” he said, adding that the threats should be taken seriously.

“Our Maldives is under a dark cloud. Our Maldives is on the edge of a dangerous pit,” he said.

The MDP was forced to take to the streets once more because of President Yameen’s “carelessness and arrogance” in response to Rilwan’s disappearance, Nasheed said.

The party would not back down in efforts to hold the government accountable and push for good governance, he added.

Nasheed also claimed that an internal opinion poll conducted by the government revealed that its support among the public was below 25 percent.

The MDP’s victories in recent by-elections has shown that a majority was behind the opposition party, he contended.

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PG to appeal Criminal Court’s dismissal of terrorism cases

The Prosecutor General (PG) Office will appeal the Criminal Court’s dismissal of terrorism charges against 89 defendants from the island of Thinadhoo in Gaaf Dhaalu atoll, PG Muthaz Muhsin has told local media.

On Saturday (November 22), Criminal Court Chief Judge Abdulla Mohamed dismissed the cases after state prosecutors failed to attend a hearing scheduled for 10:00am.

Muhsin said the PG’s Office was informed of the hearing after 2:30pm on Thursday via a fax and were unable to make arrangements, though lawyers working on the case have told Minivan News that the hearings had been scheduled in advance for 10am every day – including Saturdays – for the duration of the trial.

In addition to appealing the dismissal, Muhsin said the cases would be resubmitted to the Criminal Court today.

Last week, the chief judge ordered 55 defendants be held in detention pending the outcome of the trials, claiming the accused were intimidating witnesses. All have subsequently been released.

The court had earlier ordered the detention of 17 of the 89 defendants, all of whom were released following the dismissal of the cases on Saturday.

Defence lawyers described the judge’s decision to hold the accused in custody as “most usual” as the identities of state witnesses were not disclosed and had their voices disguised in order to protect their identity.

The 89 defendants faced terrorism charges for allegedly setting fire to the island’s police station, court building, and several police vehicles during nationwide unrest on February 8, 2012 in the wake of former President Mohamed Nasheed’s controversial resignation the previous day.

Acts of arson are considered terrorism under the Terrorism Prevention Act enacted by the administration of former President Maumoon Abdul Gayoom. The offence carries a jail term of between 10 to 15 years.

Around 80 people from Addu City are also currently facing terrorism charges in relation to unrest in the southernmost atoll on February 8.

The opposition Maldivian Democratic Party has accused the government of selectively prosecuting dozens of the party’s members and supporters in Addu City and Thinadhoo.

The party has also criticised the use of a single judge – Abdulla Mohamed – in all the cases related to the February 8 unrest, calling the entire process “highly politically motivated”, noting that police officers who committed crimes on February 6, 7, and 8 were not being prosecuted.

On February 8, 2012, riots spread across the country following a brutal crackdown on an MDP march in the capital.

Thousands of MDP supporters took to the streets of Malé in a protest march after Nasheed declared his resignation the previous day had come “under duress” in a “coup d’etat” instigated by mutinying police officers of the Special Operations (SO).

Following an investigation, the Human Rights Commission of Maldives concluded that the heavy-handed police crackdown on the MDP walk was “brutal” and “without warning” while the “disproportionate” use of force left dozens of demonstrators injured and hospitalised.

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MMA warns of shortfalls in revenue due to ad hoc policy changes

The Maldives Monetary Authority (MMA) has advised against making ad hoc changes to policies outlined in the 2015 state budget that could affect projected revenue and expenditure.

“If policies are changed the budget deficit would increase and become difficult to finance,” the central bank cautioned in its professional opinion (Dhivehi) on the budget, which was made public on Thursday (November 20) after media was excluded from parliament’s budget committee’s meeting with the MMA governor last week.

The MMA recommended ensuring that forecast revenue would be realised in full if policy changes become necessary during the year.

While the budget included a ‘green tax’ for tourists of US$10 per day, Tourism Minister Ahmed Adeeb later announced that the government has decided to lower the rate to US$6 and exempt guest houses.

The MMA recommended introducing the tax before November 2015 as planned in order to raise the income anticipated in the budget.

During the budget debate in parliament last week, minority leader Ibrahim Solih questioned whether the MVR21.5 billion (US$1.3 billion) revenue forecast in the budget could be realised.

While MVR340 million (US$22 million) was forecast as income from the green tax in the last quarter of 2015, Solih observed that the decision to lower the rate and delay implementation would lead to a revenue shortfall of about MVR300 million (US$19.4 million).

The MMA also advised against launching infrastructure projects without securing financing.

Following its annual Article IV consultation, the International Monetary Fund (IMF) advised last week that “large capital investments should only be embarked upon when full financing is secured at affordable costs and the growth benefits clearly outweigh the costs.”

The MMA meanwhile recommended targeting subsidies to the needy from January 2015 onward.

Finance minister Abdulla Jihad noted in his budget speech to parliament that targeting the electricity subsidy to low-income families or households would save 40 percent of the government’s expenditure on the subsidy.

In May, MMA Governor Dr Azeema Adam called for “bold decisions” to ensure macroeconomic stability by reducing expenditure – “especially the un-targeted subsidies”.

Deficit financing

The central bank also recommended implementing a population consolidation policy in the medium-term in order to “reduce state expenditure and provide services to the public in a sustainable way”.

Additionally, the MMA suggested that 85 MPs in the People’s Majlis and more than 1,000 councillors were disproportionately high and advised revisions to the framework of governance.

The current model of more than 1,000 elected councillors approved in 2010 by the then-opposition majority parliament was branded “economic sabotage” by the Maldivian Democratic Party government, which had proposed limiting the number of councillors to “no more than 220.”

The new layer of government introduced with the first local council elections in February 2011 cost the state US$12 million a year with a wage bill of US$220,000 a month.

Recurrent expenditure in 2015 is meanwhile expected to be MVR15.8 billion (US$1 billion) or 65 percent of the budget.

Referring to the proposed tax and tariff hikes in the budget, the MMA suggested that businesses were not able to adequately prepare or plan accordingly when new taxes are introduced with each year’s budget.

Taxation on businesses should be planned at least three years in advance and should not be raised in that period, the central bank recommended.

The MMA also recommended changing short-term debt to long-term and to cease depending on the domestic market to finance deficit spending in favour of “selling long-term foreign bonds at low interest rates”.

In his budget speech, finance minister Jihad revealed that public debt is expected to reach MVR31 billion (US$2 billion) or 67 percent of GDP at the end of 2014.

According to the central bank, the total outstanding stock of government securities was MVR13.6 billion (US$881 million) at the end of September while the outstanding stock of treasury bills sold in the domestic market was MVR10 billion (US$648.5 million) as of November 6.

“This year we estimate that MVR1.2 billion worth of T-bills have been used by the state for finances. In 2015, it will be MVR440 million,” Jihad told the budget committee earlier this month.

Rolling over T-bills was proving to be a “nightmare” as the finance ministry has to plead with banks for extension of repayment periods, Jihad said.

While the government proposed raising MVR112.3 million from the domestic market to finance the deficit, the MMA revealed that the figure reached MVR1 billion during the year.

The MMA noted that reliance on commercial banks to finance deficit spending would squeeze lending to the private sector.

In its concluding statement, the MMA stressed that expenditure should not exceed budgeted amounts and income should be collected in full if the government was to achieve it economic policy objectives.

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MPs debate restricting constitutional rights after arrest

The People’s Majlis yesterday accepted legislation that proposes restricting the constitutional rights to remain silent and retain legal counsel for suspects arrested for violent assault.

Presenting the amendments (Dhivehi) to a 2010 law banning “threats and carrying dangerous weapons and sharp objects” on behalf of the government, Progressive Party of Maldives (PPM) MP Ibrahim Didi said “special measures” were needed to curb increasing violent assaults, to ease the public’s fear and anxiety, and to establish public order and safety.

Opposition MPs contend that the changes are unconstitutional, suggesting that the government was blaming a lack of legislation for its failure to curb violent crime.

The amendments state that suspects arrested for assault with sharp objects or dangerous weapons could not exercise the right to remain silent “to any extent”.

Police could also question the suspect if he or she is either unable to have an attorney present within six hours or waives the right to retain legal counsel.

Moreover, the suspect could only consult a lawyer in the presence of a police officer for the first 96 hours after the arrest.

The legislation states that the rights of the accused would be narrowed in reference to Article 16(a) of the Constitution, which states that the rights and freedoms contained in chapter two could be limited by a law enacted by the People’s Majlis “only if demonstrably justified in a free and democratic society.”

While Article 49 of the Constitution states, “No person shall be detained in custody prior to sentencing, unless the danger of the accused absconding or not appearing at trial, the protection of the public, or potential interference with witnesses or evidence dictate otherwise,” the amendments state that the court must consider the criminal record of the accused, police intelligence reports, and other information submitted by police.

Additionally, the legislation stipulates that the Prosecutor General’s (PG) Office must press charges within 15 days of the arrest and the court must conclude the trial and deliver a verdict within 30 days of the case being filed.

In determining guilt, the court shall consider as evidence confessions or statements given at court, audio or video recordings of statements made by the accused to his or her lawyer, autopsy reports, and forensic evidence.

Attorney General Mohamed Anil revealed the government’s intention to narrow the constitutional rights at a press conference in October after a spate of violent assaults in the capital – which police said was a series of gang reprisals – saw three young men stabbed to death.

Speaking at a party rally earlier this week, PPM Parliamentary Group leader Ahmed Nihan reportedly said that the government would not stand to see young people labelled as gangsters.

Several incidents of gang violence have meanwhile occurred in recent weeks. Earlier this week, an 18-year-old was arrested after entering Billabong International High School with a machete during a gang fight.

Anil noted that the proposed amendments would specify harsher penalties for violent assault as the penalties in the current penal code were “far too lenient.”

The amendments propose the death penalty for premeditated murder in a violent assault using a dangerous weapon or sharp object as well as jail terms of up to 20 years for other offences specified in the law.

Following preliminary debate at yesterday’s sitting, the amendment bill was accepted with 66 votes in favour and five against and sent to the national security committee for further review.

“Incompetence and corruption”

Opposition Maldivian Democratic Party (MDP) MP Imthiyaz Fahmy – who voted against the amendments – told Minivan News that the obstacle to securing convictions for violent crimes was “incompetency and corruption within the criminal justice system.”

“When the government completely failed in tackling crimes that have gone out of hand they now blame it on legislation,” he contended.

“And true to their old style, the accused are to be beaten into confessing.”

Prior to the adoption of the new constitution in August 2008, the vast majority of convictions were based on confessions extracted during police interrogation and the police were often accused of torture and coercion.

During the parliamentary debate, PPM MP Ibrahim Didi said some cases were stalled at court for up to six years while the amendments would expedite the process and prevent the accused intimidating witnesses.

Several MPs objected to suspects being able to remain silent after committing serious crimes and insisted that violent crimes could be reduced if the bill is passed into law.

PPM Ahmed Thoriq suggested some rights guaranteed in the constitutional were unsuited to the Maldives.

Jumhooree Party Ali Hussain, however, contended that while fundamental rights and freedoms could be narrowed, completely depriving individuals of the right was unconstitutional.

PPM MP Mohamed Nasheed argued that preventing suspects from consulting a lawyer in private for four days was excessive and advised reducing the period to 36 hours.

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Parliamentary budget debate concludes

Parliament’s budget debate concluded at yesterday’s sitting after 79 out of 85 MPs shared their thoughts on the record MVR24.3 billion (US$1.5 billion) state budget for 2015.

While opposition MPs criticised higher taxes, deficit spending and alleged discrimination in the allocation of funds, pro-government MPs praised planned capital investments and contended that the budget was balanced.

Speaking at yesterday’s sitting, Majority Leader Ahmed Nihan insisted that funds and development projects in the budget were fairly allocated and denied discriminating against constituencies represented by opposition MPs.

“We won’t see the colour pink in any part of this page,” the parliamentary group leader of the ruling Progressive Party of Maldives (PPM) said, referring to the party’s colour.

The MVR6.3 billion (US$408 million) allocated for the Public Sector Investment Programme (PSIP) – 24 percent of the budget – would see an unprecedented number of infrastructure projects launched in 2015, he said.

All MPs were invited to request infrastructure projects for their constituencies before the budget was submitted, Nihan noted.

The budget was formulated to fulfil campaign pledges of the PPM, he continued, and President Abdulla Yameen’s administration would deliver during the next four years.

He noted that President Yameen has launched a MVR200 million (US$12.9 million) loan scheme for young entrepreneurs and small and medium-sized businesses.

Other PPM MPs claimed that the budget would bring “revolutionary” changes to the economy and spur growth, noting that recurrent expenditure of MVR15.8 billion (US$1 billion) would be covered by government income or revenue of MVR21.5 billion (US$1.3 billion).

Minority opinion

At Monday’s sitting, however, Minority Leader Ibrahim Mohamed Solih questioned whether the MVR21.5 billion revenue forecast in the budget could be realised in full.

The parliamentary group leader of the opposition Maldivian Democratic Party (MDP) predicted that revenue in 2015 would not exceed MVR16.4 billion (US$1 billion), which would be 16 or 18 percent higher than total revenue collected this year.

However, state expenditure was projected to rise by 40 percent, Solih said, adding that the revenue would not be sufficient to cover recurrent expenditure of MVR15.8 billion and MVR1.3 billion (US$84.3 million) for loan repayment – leading to a deficit of about MVR600 million (US$38.9 million).

While MVR340 million (US$22 million) was forecast in the budget as revenue from introducing a US$10 ‘green tax’ in the last quarter of 2015, Solih noted that the government has decided to lower the amount to US$6 per day and delay implementation to November, which would lead to a revenue shortfall of about MVR300 million (US$19.4 million).

Public debt

Solih further contended that PPM MPs had falsely claimed that the MDP government inherited a national debt of MVR4 billion (US$259 million) from the previous administration in 2008.

“That was domestic debt. The state’s total debt was MVR10 billion [US$648 million] at the time,” he said.

Moreover, the MDP government spent MVR2 billion (US$129.7 million) in 2009 and MVR1.5 billion (US$97 million) in 2010 to settle unpaid bills from the previous government, Solih said.

When the MDP government was ousted in February 2012, Solih said debt had reached MVR21 billion – about MVR3.6 billion a year for three years – which grew to about MVR25 billion (US$1.3 billion) during President Dr Mohamed Waheed’s two years in office.

However, state debt would reach about MVR32 billion (US$2 billion) – 67 percent of GDP – at the end of 2014, Solih noted, which means MVR7 billion (US$453.9 million) has been accumulated in debt during the current administration’s first year in office.

“So instead of pointing fingers at each other let’s all work together to solve this,” he said.

Solih also accused the government of spending millions in excess of the budget approved by parliament for 2014, which was done in violation of public finance laws.

Nihan, however, disputed the figures yesterday and claimed that a national debt of MVR24,000 per capita at the end of former President Maumoon Abdul Gayoom’s 30-year reign had risen to MVR100,000 at the end of former President Mohamed Nasheed’s three years in power.

The state’s expenditure rose dramatically in the aftermath of the December 2004 tsunami, Nihan said, which included repairing damage caused to infrastructure and assist displaced persons.

Instead of apportioning blame for driving up the state’s debt, Nihan said the responsibility of MPs and the government was saving the nation from debt.

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President Yameen launches MVR200 million ‘Maldives Youth Entrepreneurship Programme’

President Abdulla Yameen launched the ‘Get Set – Maldives Youth Entrepreneurship Programme’ at a function held last night to mark ‘National Youth Day.’

According to the President’s Office, MVR200 million (US$12.9 million) worth of loans would be provided through the initiative to encourage entrepreneurship among youth and assist the development of small and medium-sized enterprises (SMEs).

“Two individuals may jointly apply ‎for loans to start up their businesses under this scheme,” the President’s Office explained in a statement.

“The recipients of the ‎scheme will be granted soft loans, along with the required technical ‎assistances through business incubation programmes.”‎

In his speech at the function, President Yameen pledged to help all young job seekers secure employment, adding that enough job opportunities were currently available for skilled youth.

“However, Maldivian youth should have the courage to remain in a job,” he said.

Yameen referred to a report released by the International Labour Organisation (ILO) two years ago, which found that the number of unemployed youth worldwide was 750 million or 16 percent.

The number of youth worldwide who earn less than US$2 a day was meanwhile 230 million, he noted.

At present, he continued, youth is synonymous with unemployed, homeless, and indebted.

However, the “strong, potent power” of youth could be “harnessed” to change the course of a nation, he said.

“The slogan I choose during the presidential election was ‘where there is life, there is hope’,” he said.

Efforts were underway to fulfil the Progressive Party of Maldives’ campaign pledge to create 94,000 jobs in five years, he said.

The government would establishe sports arenas in islands with a population in excess of 2,000 people by the end of 2015, Yameen pledged, which would include facilities and infrastructure for most sports played by Maldivian youth of both genders.

The government has allocated MVR300 million (US$19.4 million) in next year’s budget to conduct programmes aimed at youth, he noted, which Yameen said he considered “an investment”.

The government was also focused on rehabilitating wayward youth, he continued, and called on youth leaders to “harness positive energy” to enact “positive change” and “build the nation”.

The current administration believed Maldivian youth were “resourceful, innovative and productive,” he said.

Speaking at a function held last week to celebrate TC Sports Club’s promotion to the football first division, President Yameen said politicians would be “forced to walk down the path shown by youth”.

The government was erasing or expunging police records of youth who have served sentences under an inititiatve to provide employment opportunities, he said.

In July, Home Minister Umar Naseer told parliament that criminal records of more than 2,000 youth had been cleared.

A 2012 report on gang culture in the Maldives noted that lack of employment opportunities was one of the main reasons young people join criminal gangs.

Criminal records even for minor offences are not cleared for five years, the report noted.

Meanwhile, the Prosecutor General’s (PG) Office revealed earlier this month that it has declined to prosecute 56 first offenders as of the last week of October – part of the office’s ‘second chance programme’.

Youth awards

At last night’s event, President Yameen also presented ‘National Youth Awards’ for 2013 and 2014 to “nine individuals and two NGOs for their outstanding accomplishments in the ‎areas of sports, journalism, Dhivehi linguistics, events management, fashion ‎design, and social service.‎”

“The National Youth Awards 2014 was presented to 4 individuals and two ‎NGOs for their ‎outstanding accomplishments in the areas of sports, ‎creative writing and social service,” the President’s Office noted.

The recipients included national football team captain Ali Ashfaq, who recently won the Malaysian league’s ‘Foreign Player of the Year’ title.

PG announces policy for not prosecuting first time offenders

Yameen Abdul Gayoom identifies youth and economy as key focus for primary campaign

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Government proposes import duty hike for oil, staple foodstuffs

The government has proposed raising import duties for staple foodstuffs and oil to 10 percent to raise additional revenue anticipated in the record MVR24.3 billion (US$1.5 billion) state budget for 2015.

Amendments (Dhivehi) submitted to the Export-Import Act on behalf of the government by Maldives Development Alliance MP Mohamed Ismail proposes raising import duties from the current zero rate to 10 percent for rice, flour, wheat, and sugar as well as oil or petroleum products.

Additionally, the bill proposes raising custom duties for tobacco from 150 to 200 percent and raising the duty for a single cigarette to MVR1.25.

The government has also proposed imposing a 20 percent custom duty for luxury cosmetics and perfume and a 200 percent custom duty for land vehicles such as cars, jeeps, and vans.

However, the bill proposes scrapping import duty for luxury yachts imported for tourism businesses.

The stated purpose of the amendment is revising import duty rates in light of “price changes in the global market”.

The latest monthly economic review from the Maldives Monetary Authority noted that “the International Monetary Fund (IMF) commodity price index fell in both monthly and annual terms in September 2014, by 4 percent and 9 percent, respectively.”

“The monthly and annual decline in commodity prices was attributed to the decline in petroleum, metal and food prices. The price of crude oil fell by 4 percent in monthly terms and by 12 percent in annual terms and stood at US$95.9 per barrel at the end of September 2014,” the review stated.

About 30 percent of the Maldives’ GDP is spent on importing fossil fuels. In 2012, US$ 486 million was spent on oil imports, and the figure is estimated to rise to US$700 million by 2020.

According to the Maldives Customs Service, of the MVR7.2 billion (US$466.9 million) worth of goods imported in the first quarter of 2014, one-third was spent on petroleum products.

Finance Minister Abdulla Jihad meanwhile told parliament’s budget review committee last week that the government was considering increasing custom duties “mostly for luxury items, or items that are harmful to the environment or health.”

Jihad had said the items under consideration were tobacco, perfume, and vehicles.

Other revenue raising measures

In his budget speech to parliament, Jihad also revealed plans to revise the electricity subsidy, which he said currently benefits the affluent more than the needy.

Targeting the electricity subsidy to low-income families or households would save 40 percent of the government’s expenditure on the subsidy, Jihad explained.

Jihad told the budget review committee that the government anticipates MVR533 million (US$34.5 million) in additional revenue from revising import duties, which was among five revenue raising measures proposed with next year’s budget.

The forecast for additional revenue from the new measures is MVR3.4 billion (US$220 million), including US$100 million expected as acquisition fees for investments in special economic zones and MVR400 million (US$25.9 million) from the sale and lease of state-owned land.

The other measures were introducing a green tax of US$6 per night in November 2015 and leasing 10 islands for new resort development.

An amendment (Dhivehi) to the Tourism Act has been submitted by Progressive Party of Maldives MP Abdulla Khaleel on behalf of the government for introducing the green tax.

The government has also decided to waive import duties for construction material and capital goods imported for resort development and provide sovereign guarantees for loans.

Meanwhile, at the ongoing budget debate, opposition Maldivian Democratic Party MPs have criticised plans to hike import duties while providing concessions to wealthy resort owners.

The burden of higher prices due to higher tariffs would be borne by the public, the MPs argued, contending that the government’s economic policies would benefit the rich at the expense of the poor.

“Our question is why shouldn’t an income tax be introduced? When MDP submitted an income tax bill to parliament it wasn’t passed. But we are telling this government to introduce an income tax and [tax] the affluent as well,” said MDP MP Eva Abdulla last week.

US$6 green tax to be introduced from November 2015, says tourism minister

Government submits revenue raising bills to parliament

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