Author: Ahmed Naish

Maldives not obliged to consult neighbours before joining China’s Silk Route, says foreign minister

The Maldives, as an independent and sovereign nation, is not obliged to consult other countries before making foreign policy decisions, foreign minister Dunya Maumoon told the People’s Majlis today.

The foreign minister appeared in parliament to respond to a question tabled by opposition Maldivian Democratic Party (MDP) MP Ahmed Nashid concerning the Maldives’ participation in the Chinese ’21st Century Maritime Silk Route’ initiative.

President of the People’s Republic of China Xi Jingping has called on the Maldives “to get actively involved” in the creation of a maritime trade route linking China to the east coast of Africa and the Mediterranean.

Nashid, MP for Shaviyani Komandoo, asked whether neighbouring countries in the Indian Ocean were consulted before the decision was made.

“If we join this project, is it likely that the longstanding close relations we have with neighbouring countries could be adversely affected?” he asked.

In response, Dunya noted that the agreement signed with the British in 1965 to secure independence “states in clear language that the Maldives is not obliged to consult or seek consent or approval from any other nation to implement Maldivian foreign policy.”

Former Presidents Ibrahim Nasir and Maumoon Abdul Gayoom did not join any “military or political alliance” during the Cold War, she added, out of fear of losing the independence gained in 1965 as the Maldives would be obliged to consult major powers before making foreign policy decisions.

“We should all know that the interest of any foreign country should not take precedence over Maldivian national interest,” she said.

MDP MP Ibrahim Mohamed Didi – a retired brigadier general – asked whether relations with India could deteriorate if Chinese naval activity is conducted in a Maldivian port, which would threaten Indian “geopolitical interests”.

Dunya declined to answer citing national security concerns and advised raising the issue through parliamentary committees.

Asked if India has expressed concern with the decision, Dunya said the Indian government also welcomed the Silk Route initiative during Chinese President Xi’s visit to New Delhi in September.

Foreign policy

Dunya said President Abdulla Yameen’s foreign policy was based on Article 115(d) of the Constitution, which states that the president has a duty “to guarantee the independence and territorial integrity of the Maldives, and to promote respect for national sovereignty in the international community.”

The government decided to participate in the Silk Route initiative as it would promote national interest and benefit the Maldivian people through trade and commerce, she said.

Dunya referred to a joint communique issued during President Xi’s state visit in the Maldives in September, which declared that the Maldives “welcomes and supports the proposal put forward by China to build the 21st Century Maritime Silk Road, and is prepared to actively participate in relevant cooperation”.

Fostering ties with South Asian countries and ensuring national security was one of the most important aims of the government’s foreign policy, she continued, noting that Maldivian security was intertwined with Indian Ocean regional security.

The Maldives would consult all nations and work together to ensure regional security and stability, she assured.

Former President Mohamed Nasheed has criticised the decision to join the Silk Route initiative, contending that it would threaten Indian Ocean security and risk putting the Maldives in the middle of war or disputes between Asian powers.

China’s rising economic presence in the Indian Ocean region has stoked concerns in New Delhi that China is creating a “string of pearls” to encircle India, including Chinese investments in ports and other key projects in Sri Lanka and Pakistan.

Asked if closer ties with China would adversely impact relations with India or Japan, President Yameen told reporters upon returning from a visit to China in August that Sino-Maldives economic cooperation would not affect “the very friendly, close relations with India”.

“All these projects are also open to India and we are doing a lot of diplomatic work with India,” he said, referring to his administration’s decision not to sign a Status of Forces Agreement (SOFA) with the United States as an example of cooperation.

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Public debt to reach MVR31 billion by end of 2014, reveals finance minister

Public debt is expected to reach MVR31 billion (US$2 billion) or 67 percent of GDP at the end of 2014, Finance Minister Abdulla Jihad has revealed.

“Despite achieving economic progress, the Maldivian economy is fragile and the Maldives’ financial situation is not in the most appropriate state at present,” Jihad cautioned in his budget speech at parliament today.

“The main reason for this is the year on year increase of the budget deficit and the state’s debt because of expenditure being higher than state revenue in recent years,” he explained.

The country’s balance of payments worsened and foreign currency reserves dwindled as a result of both the persisting fiscal deficit as well as outflow of foreign currency, Jihad added.

He noted that the dramatic increase of expenditure on public sector wages, subsidies, and social security programmes was also responsible for the fiscal imbalances.

Expenditure on state employees in 2014 would reach MVR15.8 billion (US$1 billion), Jihad observed, while MVR3.2 billion (US$207 million) would have been spent on subsidies and social security benefits.

Out of every MVR100 collected as revenue or income, Jihad explained that MVR40 was spent on employees and MVR22 on social protection and subsidies.

Consequently, the government was facing serious difficulties in “managing the state’s cash flow and financing the budget” as well as securing loans for budget support, Jihad said.

The budget was mainly financed by selling and rolling over treasury bills (T-bills), he said, which involves repayment at high interest rates.

According to the central bank, the total outstanding stock of government securities was MVR13.6 billion (US$881 million) at the end of September.

“The growth in government securities was contributed by the increase in the amount of T-bills issued by the government to manage its cash flow requirements,” reads the Maldives Monetary Authority’s (MMA) latest monthly economic review.

Targeting subsidies

In May, Jihad continued, the government ceased obtaining funds from the central bank to finance the budget and the inflation rate has remained low as a result.

The government has also decided to freeze hiring new employees in 2015 in favour of conducting training programmes and optimising productivity. The defence minister last week criticised civil servants, saying they were providing “poor service” to the public.

Parliament needed to pass legislation on the state’s wage policy for a lasting solution to discrepancies in pay among state institutions, Jihad suggested.

He 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.

The government was also working on revising the Aasandha health insurance programme – expanded by the current government – to ensure sustainability, he added, in addition to plans to target food subsidies in 2015.

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

The MMA had previously warned that shortfalls in revenue and overruns in expenditure could jeopardise the country’s debt sustainability.

The International Monetary Fund (IMF) has also recommended targeting subsidies to the poor.

“The electricity subsidy is one that goes to even the richest strata of society. Basic food subsidies are being enjoyed now by the resorts, and never mind the resorts, are being enjoyed by wealthy foreign visitors who stay at the resorts,” Dr Koshy Mathai, resident representative to Sri Lanka and Maldives, told MPs on the public accounts committee in February.

“That to us seems like a totally unnecessary policy.”

He added that “substantial savings” could be made from the budget by targeting subsidies to those most in need of assistance.

Despite the cost-cutting measures, Jihad cautioned today that the government’s recurrent expenditure could not be reduced while people reside in 188 geographically dispersed islands.

Providing services to small populations was difficult and costly, he observed, stressing the importance of formulating and implementing a population consolidation policy.

On plans to tackle the high rate of unemployment, Jihad noted that MVR332 million (US$20 million) was allocated in the 2015 budget for higher education programmes, with special emphasis on training doctors and health sector professionals.

The implementation of the government’s economic policy – with the introduction of special economic zones – would spur job creation and attract foreign investment, he added.

Jihad appealed for support from MPs for the government’s proposed revenue raising measures, warning that public services could be disrupted if anticipated revenue is not realised.

“The estimated budget for 2015 is a budget that lays the foundation to build the future of the current generation and future generations,” he said.

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Finance minister presents record MVR24.3 billion state budget to parliament

Finance Minister Abdulla Jihad submitted an estimated 2015 state budget of MVR24.3 billion (US$1.5 billion) for parliamentary approval today – 35 percent higher than this year’s record MVR17.96 billion (US$1.16 billion) budget.

“The estimated budget deficit for 2015 is MVR1.3 billion [US$84 million],” Jihad said in his budget speech at today’s sitting of parliament.

“This is 2.5 percent of GDP. The deficit is to be financed by MVR1.1 billion [US$71 million] estimated from foreign parties and MVR223 million [US$14 million] estimated from domestic finance.”

After expressing fears in August that the deficit for this year would spiral to MVR4 billion – or 10 percent of GDP, Jihad told MPs today that the 2014 deficit was expected to be just MVR1.6 billion (US$103 million) as a result of compromises by parliament to the government’s revenue raising measures.

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

Salaries and allowances for state employees accounts for 26 percent of the total budget, Jihad noted, followed by social security and welfare (13 percent) and administrative costs (8 percent).

Capital expenditure meanwhile accounts for 30 percent of the budget, Jihad continued, which includes MVR6.3 billion (US$408 million) for the Public Sector Investment Programme (PSIP) and loan repayment.

The forecast for government income or revenue is MVR21.5 billion (US$1.3 billion), Jihad said, including MVR13 billion (US$843 million) in tax revenue, MVR6.8 billion (US$440 million) in non-tax revenue, and MVR1.7 billion (US$110 million) in free aid.

Jihad noted that MVR3.4 billion (US$220 million) is anticipated from new revenue raising measures, which includes revisions of import duty rates from July onward, the introduction of a ‘green tax’, fees from investments to special economic zones, income from the home ownership programme, and leasing 10 islands for resort development.

Fund allocations

The MVR2.9 billion (US$188 million) allocated for the education sector is 32 percent higher than 2014, Jihad continued, which includes higher expenditure on scholarships, student loans, training programmes, financial assistance for pre-schools, and the cost of implementing the new national education curriculum.

The MVR2.1 billion (US$136 million) allocated for the health sector is 21 percent higher than 2014, Jihad noted, while MVR3.2 billion (US$207 million) was allocated for social security and subsidies provided by the National Social Protection Agency, including MVR1 billion (US$65 million) earmarked for the MVR5,000 (US$324) a month pension for the elderly and MVR750 million (US$48 million) for the unlimited Aasandha health insurance programme.

Some 52 programmes would be conducted to upgrade three hospitals to tertiary level and develop infrastructure in regional hospitals and island health centres, he noted.

While MVR90 million (US$5.8 million) was allocated for fisheries and agriculture, Jihad said MVR50 million (US$3.2 million) was allocated for providing financial assistance for small and medium-sized enterprises.

“As development of Maldivian youth is one of the most important pledges of this government, MVR300 million [US$19.4 million] has been budgeted to conduct different programmes aimed at youth,” Jihad said, which was 55 percent higher than 2014.

Funds have also been earmarked for the celebration of the 50th anniversary of independence, Jihad noted.

Notable PSIP projects include the development of the Ibrahim Nasir International Airport (INIA), the Malé-Hulhulé bridge project, the Indira Gandhi Memorial Hospital (IGMH) renovation project, water and sewerage projects for 66 islands, coastal protection for 22 islands, 23 new harbour construction projects and 38 ongoing harbour projects, and waste management projects in 105 islands.

Funds have also been allocated in the budget for a renewable energy project expected to commence next year, he added.

A total of MVR695 million (US$45 million) was earmarked for housing programmes, Jihad continued, which includes the construction 1,985 housing units in Hulhumalé.

In addition to a project to resolve flooding in the capital, Jihad said 15 road construction projects in other islands were included in the budget.

2014

While the projected deficit for 2014 was MVR1.3 billion, Jihad said the deficit at the end of the year would be MVR1.6 billion (US$103 million) as a result of compromises by parliament to the government’s revenue raising measures.

A proposed Tourism Goods and Services Tax hike was delayed from July to November while the reintroduction of the US$8 bed tax was delayed by a month.

While the finance ministry anticipated payments for resort lease extension fees in full, parliament revised the budget for the fees to be paid in instalments over 18 months.

Jihad meanwhile noted that the International Monetary Fund’s (IMF) global economic outlook released in October predicted economic growth in 2014 and 2015 after the recovering from the global financial crisis and recession of 2007 to 2012.

Accordingly, domestic economic growth in 2014 was expected to be 8.5 percent, Jihad said, while the forecast for 2015 is 10.5 percent – driven by tourism, telecommunications, and transport.

The tourism industry is expected to grow by 8 percent with 1.5 million tourist arrivals, he added, while the inflation rate has meanwhile remained steady at 1.4 percent as of September.

On the balance of payments, Jihad revealed that the current account deficit would reach US$290 million or 10 percent of GDP, although it is projected to decrease to US$215 in 2015.

The official reserve at the end of 2014 is expected to be US$445 million – projected to rise to US$460 million next year.

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Almost half of civil servants earn less than MVR5,000 a month

Almost half of the country’s civil servants earn a monthly salary of less than MVR5,000 (US$324), statistics from the Civil Service Commission (CSC) have revealed.

While the number of government employees who earn up to MVR4,499 a month increased from 9,914 in May to 11,000 in September, the number of employees who earn between MVR5,000 and MVR10,000 (US$ 648) decreased from 14,380 in May to 13,580 in September.

Those earning between MVR10,000 and MVR15,000 (US$972) increased by 30 percent in September while those who earn higher than MVR15,000 rose by 96 percent.

Speaking at a three-day conference organised jointly by the CSC, Anti-Corruption Commission, and the Auditor General’s Office last week, Defence Minister Colonel (Retired) Mohamed Nazim criticised civil servants for providing “poor service” to the public.

Most civil servants have poor attendance records, arrive at work late, do careless work, and take leave or holidays excessively, Nazim said, which were “unacceptable.”

Recent statistics from the CSC showed that civil servants rose from 24,742 in May to 25,010 in September – representing over seven percent of the population.

Female civil servants outnumber males, with 13,280 women and 11,730 men, while 35 percent of government workers are based in the capital Malé.

The highest number of civil servants work under the Ministry of Education (9,955), followed by the Ministry of Health (7,090) and local councils (4,454).

Nazim suggested that the “only solution” to the shortcomings of the civil service was bringing amendments to relevant laws in order to ensure employees could not take leave for four or five months a year.

Aside from pay rises and promotions, Nazim said employees could also be motivated to work better as a team, advising reforms to rules for promotions to provide incentives to civil servants.

Reviewing the organisational structure of offices could also improve efficiency, he added.

“I would like to believe that employees of the civil service can get the public’s love and respect when they work for it,” he said.

Addressing foreign participants of the conference in English, Nazim said the “key role of the civil service is to provide public service in an efficient and empathetic manner.”

With democracy in the Maldives “in its infancy,” Nazim said the country was facing “multi-faceted” and “increasingly complex” challenges and stressed the importance of reforming the civil service.

He urged participants of the conference to consider “the geographical nature of the Maldivian archipelago and the nature of service we have provided while addressing the challenges and reforming the civil service structure.”

According to the CSC, the purpose of the conference was improving the service offered to the public and focused on three main themes.

“They were organisational development and review, human resource management and development, and establishing a civil service with integrity,” the CSC explained in a press statement.

Former chairman of India’s Union Public Service Commission Professor Dev Prakash also took part in the conference, delivering  the keynote speech.

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Adeeb denies corruption allegations as MDP calls for prosecution

Tourism Minister Ahmed Adeeb has denied allegations of corruption in a special audit report of the Maldives Marketing and Public Relations Company (MMPRC) while the opposition has called on the prosecutor general to press charges.

The report (Dhivehi) – made public on Thursday (October 30) – implicated Adeeb in corrupt transactions worth US$6 million between the MMPRC and the Maldives Ports Limited (MPL) and the Maldives Tourism Development Corporation (MTDC).

The MMPRC obtained MVR77 million (US$5 million) from MPL to be paid back in dollars and US$1 million from MTDC as a loan, which was immediately transferred to two companies – Millenium Capital Management Pvt Ltd and Montillion International Private Ltd, both with ties to Adeeb.

Speaking at a press conference at private broadcaster DhiTV’s studio last night (October 31), Adeeb insisted that the MVR77 million was not a financial loss to the state, noting that US$3 million has been repaid to MPL with the remainder due in December.

“Under my [tenure] as tourism ministry, in order to avoid state companies going into the dollar black market, I have obtained dollars for the state from one state company to another, the tourism industry, and various private parties,” Adeeb said.

Adeeb claimed to have arranged for local businessmen to purchase treasury bills worth MVR800 to 900 million as of October 2013 to ease the government’s cash flow problems.

The agreement between MMPRC and MPL was approved by the respective boards of the state-owned enterprises, the ruling Progressive of Party of Maldives’ (PPM) deputy leader stressed.

The MVR77 million from MPL was not embezzled or misappropriated, he insisted, claiming that the government routinely converts rufiyaa into dollars through private parties.

On the allegation that the tourism ministry awarded an italian-owned company an island for resort development to pay back US$2.25million of the US$6million MMPRC owed to MPL and MTDC, Adeeb claimed that Dhaalu Maagau was used as a picnic island by PPM MP Ahmed Nazim’s friends.

The former deputy speaker of parliament had repeatedly sought to secure the island, Adeeb said, dismissing the allegation that the Italian paid the lease rent for the island through Adeeb’s father’s Montillion company.

Adeeb also pledged to release his financial statement to the media on Sunday (November 2) and denied failing to declare assets.

According to the audit report, Adeeb has failed to declare assets as stipulated by Article 138 of the Constitution since he was appointed tourism minister in 2012.

Counter-allegations

When the US$6 million corruption scandal first surfaced in May, Adeeb told Minivan News that the “defamation attempt” was linked to his refusal to support certain individuals for speaker and deputy speaker of the 18th People’s Majlis.

Minivan News understands MP Ahmed Nazim was involved in leaking documents related to the case to online news outlet CNM, which first broke the story of the Anti-Corruption Commission (ACC) investigating the transactions.

Nazim’s passport was withheld last week, but he left the country on the date the court order was issued.

In May, Adeeb confirmed to Minivan News that two repayment cheques dated May 10 and 15 bounced due to insufficient funds.

The MTDC’s US$1 million had been reimbursed, Adeeb said, while MPL had been paid one-third of the owed amount in dollars. The remaining two thirds are due in June, he added.

At last night’s press briefing, Adeeb alleged “extraordinary ties” between Nazim and Auditor General Niyaz Ibrahim.

Following his refusal to support Nazim for the deputy speaker’s post, Adeeb said Nazim threatened to put out audit reports implicating him as well as family members in corrupt dealings.

Moreover, the auditor general’s office neither sought a statement from him nor posed any questions regarding the transactions, Adeeb said.

“I am most saddened that professionals, specialised people, are brought in between our political rivalry in the political arena,” he said.

“Unconstitutional”

The opposition Maldivian Democratic Party (MDP) meanwhile released a press statement yesterday condemning the government’s “unconstitutional” and “unlawful” attempts to replace the auditor general before the end of his seven-year term.

Last week, parliament passed amendments to the Audit Act requiring the president to reappoint an auditor general within 30 days of ratifying the amendments.

President Abdulla Yameen ratified the amendments on Thursday.

The MDP contended that the auditor general could only be removed from office through the process specified in the Constitution, which was “(a) on the ground of misconduct, incapacity or incompetence; and (b) a finding to that effect by a committee of the People’s Majlis, pursuant to article (a) and upon the approval of such finding by the People’s Majlis by a majority of those present and voting, calling for the Auditor General’s removal from office”.

The attempt to remove the auditor general shows the level of corruption in the current administration, the press release stated, adding that the government was undermining independent institutions.

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Tourist arrivals register 10 percent growth in three quarters of 2014

Tourist arrivals in the first three quarters of 2014 registered a 10.1 percent growth compared to the same period last year, reaching a total of 901,004 guests by the end of September, the Ministry of Tourism has revealed.

Visitors from Asia and Pacific countries accounted for 50 percent of all arrivals during the first nine months of the year.

However, the ministry noted in a statement last week that “the pace at which arrival from the region was increasing have slowed down since June.”

“While the region enjoyed a robust growth of 22.3 percent at the end of first two quarters of 2014, growth rate slowed down to 17.3 percent by the end of the third quarter of 2014,” the ministry explained.

“The region injected 53,454 tourists to the total arrivals to the country during the month of September, summing up the total arrivals from the region to 450,296 by the end of the period from January to September 2014.”

China (31.8 percent), India (3.5 percent), Japan (3.1 percent) and South Korea (2.7 percent) were the leading markets from Asia and the Pacific region, the ministry revealed, with Australia (1.6 percent) “emerging as a potential market from this region.”

“The Chinese market, registered a negative growth (-1.7 percent) for the first time in September 2014 since becoming the number one market in 2010. However, the market ended up with a healthy 14.8 percent growth at the end of the period from January to September 2014 with a total of 286,838 tourists.”

Tourist arrivals from Europe meanwhile increased 1.6 percent in the first three quarters compared to the same period in 2013, reaching 386,914 visitors.

“In terms of individual markets from Europe, leading markets were Germany (7.7 percent), the United Kingdom (7.4 percent), Russia (5.7 percent), Italy (4.8 percent) and France (4.2 percent),” the ministry revealed.

Arrivals from the Americas registered a strong growth of 25.2 percent in September with double digit growth rates recorded from all major markets in the region.

“With just a couple of hundred tourists less than that of Americas, Middle East followed closely behind bringing in a total of 28,641 tourists at the end of the period from January to September 2014 accounting for 3.2 percent of all arrivals during the period,” the ministry noted.

“This region also posted a heavy growth of 20.5 percent during the month of September 2014 ending the period with a robust 16.9 percent growth.”

Meanwhile, one new resort – Loama Resort Maldives on the island of Maamigili in Raa Atoll – and seven new guest houses opened during September.

“With these new additions, the total number of registered establishments reached 488 with 30,893 beds at the end of September 2014,” the ministry noted.

“While the total number of registered resorts increased to 112 with 23,917 beds and guest houses increased to 195 with 2,723 beds, number of hotels and safari vessels remained at 18 and 163 with 1,542 beds and 2,711 beds respectively by the end of September 2014. At the end of this period on average there were 292 establishment with 26,905 beds in operation.”

Statistics show that total bednights during the period was 5.4 million, with an average occupancy rate of 74.6 percent – an increase of 1.6 percent compared with the same period in 2013. Average duration of stay remained steady throughout the January to September period.

Quarterly economic bulletin

The Maldives Monetary Authority’s (MMA) quarterly economic bulletin released last week meanwhile observed that the “favourable growth in the tourism industry during the year suggests that the arrival of a million tourists during one calendar year is likely to be achieved in 2014 as well.”

“Reflecting the growth in bed nights, total tourism receipts grew by an annual 12 percent during the first six months of 2014 and totalled US$1.3 billion,” the central bank revealed.

While the market share of Europe fell from 51 percent in the first half of 2013 to 47 percent in the same period this year, the MMA noted that arrivals from Germany and the UK increased.

“In particular, the sustained growth of arrivals from UK, with a market share equivalent to 8 percent, reflects its economic revival to pre-crisis levels,” the bulletin suggested.

“Other markets in Europe, however, indicated sluggish or negative growth in tourist arrivals, contributing to the overall marginal increase in arrivals from Europe.”

The MMA also observed that in the past five years “the development of guesthouses as a low cost accommodation option for tourists in local inhabited islands has gained significant momentum.”

The authority noted that the number of guest houses in the industry is now over 2,400

“As at the end of June 2014, the number of registered beds in the [guest house] industry is recorded to be over 2,400. While the bed capacity of guesthouses accounted for a mere 2 percent of the bed capacity of the industry as a whole in 2010, it has now come to represent 8 percent of the total bed capacity in tourism establishments,” the bulletin stated.

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“It’s cool at 25”: environment ministry launches energy saving campaign

Electricity used for air-conditioning accounts for 60 to 70 percent of energy consumption by households and offices in the Maldives, Minister of Environment and Energy Thoriq Ibrahim has revealed.

In his message on the occasion of World Energy Day yesterday (October 22), Thoriq noted that the slogan for the ministry’s campaign to conserve and reduce energy use is ‘It’s cool at 25’.

“Studies show that the most appropriate temperature for cooling buildings in the Maldives is 25 degrees celsius,” he said.

“Therefore, maintaining temperature at this level will benefit us directly and indirectly. My hope is for the Maldives to become an example for other countries in energy use.”

Thoriq noted that the Maldives had one of the highest rates of energy use per capita in the South Asia region, adding that the vulnerability of the economy to changes in the price of oil poses threats to “Maldivian sovereignty”.

Thoriq said energy security was essential for a developing country.

Individuals could also contribute to energy saving by using environment-friendly energy efficient appliances, he continued, which though expensive would reduce costs in the long-term.

The year-long ‘It’s cool at 25’ energy saving campaign was launched this morning at the head office of the State Trading Organisation (STO) in Malé.

Speaking at the launching ceremony, Thoriq said about MVR8,000 (US$519) – or seven percent – from electricity bills could be saved annually by raising the temperature on air-conditioning units.

For a household with three 9,000 BTU air-conditioning units, Thoriq said about MVR18,000 (US$1,167) a year could be saved by setting the temperature to 25 degrees celsius.

Moreover, a one percent reduction in oil imports would amount to US$5 million, Thoriq observed.

STO Managing Director Adam Azim meanwhile noted that a one percent reduction in electricity bills would result in enough savings to build homes for 75 families.

Substantial savings have been made through STO’s ‘Save 50 million’ cost-cutting efforts, Azim said.

Renewable energy

In his Energy Day message, Thoriq also stressed the importance of using renewable sources of energy for sustainable economic development.

Last month, the energy ministry announced plans to generate 30 percent of electricity used during daylight hours in the 196 inhabited islands of the Maldives from renewable energy sources.

A function was held to mark World Energy Day yesterday on the island of Kudahuvadhoo in Dhaalu atoll to establish a 203 kilowatt photovoltaic (PV) system with assistance from the German government.

At the event, an agreement was signed between the environment ministry and GIZ (German Federal Enterprise for International Cooperation) to hand over the PV system.

According to the ministry, the government’s utility company – the Fenaka Corporation – would be responsible for operating and maintaining the system.

The Kudahuvadhoo island council meanwhile endorsed the ‘It’s cool at 25’ energy saving campaign before a children’s fair was held in the evening.

“In this fair prizes were awarded to children who took part in the activities like drawings related to energy efficiency,” explained the environment ministry. “In this fair, equipments related to energy day and energy efficiency were exhibited to the visitors.”

An awareness raising workshop for the public was meanwhile held today “to provide information on the PV system established in the island and the energy efficiency” with presentations given by the ministry and the Maldives Energy Authority.

Speaking at yesterday’s ceremony, Thoriq noted that 30 percent of GDP in the Maldives was used to import oil at a cost of US$500 million, which was “a challenge to reaching sustainable development” and “a major burden on the economy”.

Generating electricity from renewable sources would reduce the dependency on fossil fuels, Thoriq said.

Diesel fuel accounts for the bulk of the energy supply in the country – about 82.5% in 2009.

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.

Thoriq told state broadcaster Television Maldives (TVM) this week that solar panels would be installed in five islands in 2015, including a 1.5 megawatt PV system in Addu City and a 4 megawatt system in Malé.

The environment ministry was also studying the possibility of generating electricity through other renewable sources, Thoriq said, such as tidal energy and wind.

In January, a pioneering desalination project on the island of Gulhi, in Kaafu atoll became the first place in the world to produce desalinated drinking water using waste heat from electricity generation.

In August, the environment ministry announced a number of initiatives to minimise the country’s dependence on fossil fuels, including the Scaling-Up Renewable Energy Programme (SREP) set to “transform the Maldives energy sector.”

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Maldivians could be among first climate refugees, warns Nasheed

The Maldivian people will be among the world’s first climate change refugees due to sea level rise if global warming is not averted, former President Mohamed Nasheed has warned.

In his keynote address at the ‘International Bar Association’s (IBA) annual conference showcase session on climate change and human rights’ in Tokyo today, the opposition leader stressed that climate change is not an abstract concept to Maldivians but an existential threat.

“The inundation of the Maldives is just a generation away,” he warned.

“When I was elected president, I caused some controversy by saying we would someday have to leave our islands. I was hopeful then that we would be able to change the way our story ends. But I fear it is too late now for the Maldives.”

“The world has lost the window of opportunity to mend its ways. Big emitters have sentenced us. The world temperature will rise, and the seas will rise over our nose.”

Nasheed noted that Maldivians have lived in the Indian Ocean islands “scattered across our distant archipelago, for thousands of years.”

“When our islands succumb to the water, we will leave. We will take with us as much of our culture and customs as we can carry. Our stories, our history, our food; our distinctive language, and its beautiful script,” he said.

“But that will be nothing compared to what we leave behind. We will leave behind our homes. Our streets. Our buildings,” he continued.

“We will leave behind the beautiful Friday Mosque, carved out of coral stone three centuries ago. We will leave behind the trees we grew up with, the sands we played on, the sounds we hear every day. The sea will claim those things, and with it, the soul of a people.”

Nasheed recalled words of wisdom shared by an elderly woman he met on an island.

“‘Mr President we can move a people,’ she said; ‘but where will the sounds go? Where will the colours go? Where will the butterflies go?'”

If Maldivians become climate refugees, Nasheed said the exiled population would face “issues of citizenship, sovereignty, and even reparations.”

“Can you have sovereignty and dignity without land? Can an independent nation exist on foreign soil?” he asked.

“And what restitution, if any, can be made for the damage done to us – damage we warned about, but did not cause? I fear that these questions will be answered one day, not in the abstract, but in a court of law. And I fear that we, the people of the Maldives, will be the star witness.”

In lieu of environmental protection, Nasheed said Maldivians are looking to the international community for legal protection and to “help us prosecute those responsible after the fact, if they will not accept responsibility before it.”

Nasheed welcomed a recent report by the IBA on climate justice, which he said showed “the clear connections between climate change and human rights”.

Cautious optimism

While it may be too late to stop climate change, Nasheed said there was still hope that it could be slowed down by changing the world economy.

“Our starting point should be our end goal: a zero-carbon economy. Rather than aiming to limit climate change to within a tolerable level, we should just stop polluting. In the Maldives, we had a plan – approved by the World Bank – to go completely carbon neutral by 2020,” he said.

“On a global level, studies suggest a net-zero emissions economy is possible by 2050 – a timeline that is consistent with preventing the most dangerous climate change.”

While markets have failed to place a price on carbon, Nasheed said the “disruptive brilliance of the tech sector” could be harnessed to “the clean energy ambitions of environmental movement.”

“Six years ago, the ‘App Store’ didn’t exist; last year, it made $10 billion in sales. Today, most of us carry more computing power in our pockets than the Apollo astronauts took to the moon,” he observed.

“These kind of exponential leaps are happening in the energy industry, too. The first hybrid car was launched in 1997; today, more than 9 million have been sold. Since 2008, the price of solar modules has dropped by 80 percent.”

On climate change adaptation, Nasheed observed that coral reefs and mangroves worked as natural defences against the 2004 Indian Ocean tsunami, suggesting that corals could be genetically modified and strengthened.

Nasheed went on to criticise UN climate negotiations, which he contended “have been been stuck in a rut, with countries hiding behind labels, and few showing leadership.”

“It may be too late to save homelands in Kiribati, or Tuvalu, or the Maldives,” he said.

“It may be too late to save the species which depend on stable temperatures, clean air, or placid seas. But it is not too late to change our ways.”

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Supreme Court enacts new regulations on flogging

The Supreme Court has enacted new regulations on the enforcement of flogging sentences, specifying conditions and criteria for meting out the Islamic Sharia punishment.

The regulations (Dhivehi) made public yesterday state that the offender must be of sound mind, must not be pregnant, and must not have an illness that could endanger his or her life due to flogging.

Moreover, a sentence for flogging must be implemented after the convict has either exhausted the appeal process or declined to appeal the verdict in the specified period.

Speaking at a ceremony held last month to mark the anniversary of the Criminal Court, Chief Judge Abdulla Mohamed revealed that 37 flogging sentences remained unenforced due to alleged lack of cooperation from the relevant authorities.

If the offender is a deaf mute or does not speak Dhivehi, the regulations state that the court should seek a statement through a translator.

The court must also appoint a competent “special employee” to implement flogging sentences.

If the offender is under age when the verdict is delivered, the regulations state that the sentence must be imposed when the offender turns 18 years of age.

Section 222 of the regulations on conducting trials would be abolished once the new regulations come into force.

According to statistics from the Department of Judicial Administration, almost 90 percent of those convicted of fornication or pre-marital sex in 2011 were female.

Of 129 fornication cases in 2011, 104 people were sentenced, out of which 93 were female. This included 10 underage girls, 79 women aged 18-40, and four women above 40 years.

In response to a Minivan News report in 2009 of an 18 year-old woman fainting after a 100 lashes, Amnesty International called for a moratorium on the “inhumane and degrading punishment.”

Of the 184 people sentenced to public flogging in 2006, 146 were female, making it nine times more likely for women to be punished.

In November 2011, UN High Commissioner for Human Rights Navi Pillay urged the authorities to impose a moratorium on flogging and to foster national dialogue and debate “on this issue of major concern.”

“This practice constitutes one of the most inhumane and degrading forms of violence against women, and should have no place in the legal framework of a democratic country,” the UN human rights chief told MPs during a maiden visit to the Maldives.

Her remarks sparked protests by Islamic groups outside the UN building and drew condemnation from the Islamic Ministry, NGOs and political parties.

In August 2013, a flogging sentence of a 15-year-old girl rape victim convicted of fornication was overturned following an international campaign.

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