Author: Ahmed Naish

MDP marks May Day with rally calling for introduction of minimum wage

The opposition Maldivian Democratic Party (MDP) marked May Day or Labour Day on Thursday (May 1) with a rally across Male’ and the signing of a petition calling for the introduction of a minimum wage.

Addressing participants of the rally at the conclusion of the walk across the capital, former President Mohamed Nasheed observed that ensuring worker’s rights was essential for economic development.

“We are raising our voices and calling for the establishment of a minimum wage to facilitate job opportunities for Maldivian workers. The number of foreigners in the Maldives who are made to work for a small wage is increasing daily,” Nasheed said.

The international community considered the Maldives a destination for human trafficking, he added, with Bangladeshi workers paid US$100 or US$150 a month.

While migrant workers were deprived of their rights, Nasheed said the situation deprived Maldivians of employment.

The main purpose of setting a minimum wage was providing job opportunities for Maldivians, he said, calling on pro-government parties to use their parliamentary majority to legislate for a minimum wage.

Nasheed went on to accuse the government of attempting to introduce “harsh practices” to the Maldives in a bid to consolidate power.

The former president called on Maldivian workers to “stand up for your rights.”

President’s Office Spokesperson Ibrahim Muaz meanwhile told the press on Thursday that the current administration would protect worker’s rights.

“Several workers lost their jobs due to political pressure during the MDP government. The present government will not discriminate based on political affiliations. We will work to make sure that every citizen, every worker is satisfied,” he was quoted as saying by Sun Online.

He added that President Abdulla Yameen would fulfil his campaign pledge to streamline the government’s pay structure to eliminate wage gaps between state institutions.

Meanwhile, in a statement on the occasion of Maldives Civil Service Day – which is also marked on May 1 – Civil Service Commission (CSC) Chair Dr Mohamed Latheef urged civil servants to speedily implement the policies and projects of the government regardless of political turmoil.

Dr Latheef noted that a civil service training institute was formed in 2009 to improve competence of government employees.

During the past year, he added, 66 courses were conducted with 1,838 participants from across the country.

As of March 2013, the number of civil servants in the Maldives stands at 24,951.

The opposition MDP meanwhile decided to mark Labour Day with a rally after the party’s national council adopted a resolution submitted by Youth Wing Leader Aminath Shauna last month.

The resolution stated that the party should organise a gathering to call for the introduction of a minimum wage as well as for the Maldives to sign the International Labour Organisation’s (ILO) Convention on Occupational Safety and Health.

The resolution noted that the MDP has been observing Labour Day since 2006 and that the Maldives became an ILO member state during the party’s three years in office.

Moreover, it added, Labour Day or May Day was declared a public holiday by President Nasheed while a Labour Tribunal to resolve employment disputes was established in December 2008.

Prior to the ousting of the MDP government on February 7, 2012, the resolution stated that a decision was made to introduce a minimum wage and a board was formed to monitor the policy shift.

However, “dictatorial habits” were returning with the current the administration allegedly violating the rights of workers and intimidating government employees, the party contended.

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JP reprimands former council member Fuad Gasim

The Jumhooree Party (JP) has condemned allegations by former council member Fuad Gasim concerning JP Leader Gasim Ibrahim’s ties with the opposition Maldivian Democratic Party (MDP).

State Minister for Health Fuad Gasim resigned from the JP council in protest on Friday after former President Mohamed Nasheed met Gasim Ibrahim and signalled the MDP’s support for the business tycoon’s bid to become the speaker of the newly-elected 18th People’s Majlis.

Fuad told Sun Online on Thursday (May 1) that the close ties between Gasim and Nasheed were unacceptable while the JP remained a part of the ruling coalition.

One of reasons he supported JP was its opposition to the MDP’s alleged “secular ideology,” Fuad said.

Fuad also criticised as “undemocratic” the JP’s selection of candidates for the March 22 parliamentary polls, claiming that the JP ticket was awarded to individuals who “pleased the leader.”

In a press release issued on Thursday in response to Fuad’s remarks in the media, the JP stated that Gasim followed an “open policy” of holding discussions with leaders of all political parties upon request.

“Meeting a particular person from a particular political party does not diminish or undermine the religious and nationalist ideology accepted by the Jumhooree Party and the party’s leadership,” the statement read.

The JP statement revealed that Fuad Gasim was barred from some party offices about a month ago following complaints from female staff regarding his behaviour.

The complaints included allegations that Fuad was using female toilets, the statement explained.

Moreover, party members complained about Fuad while he was serving as the secretary general, it added.

The statement went on to accuse the former council member of campaigning against the JP’s candidate for the Nolhivaram constituency.

Fuad had met Gasim Ibrahim prior to the elections and demanded the JP ticket, the statement alleged.

Following Gasim’s refusal to award him the ticket, the JP claimed that Fuad had been slandering both the party and its leader.

The JP press release noted that Fuad Gasim remained in a government post designated for the party under the coalition agreement.

The post of Majlis speaker has meanwhile been a source of friction in the governing coalition. After Gasim expressed interest in the role, President Abdulla Yameen Abdul Gayoom declared that the speaker should be a member of the ruling party, which won the most number of seats in the March 22 polls.

The Progressive Coalition – made up of the ruling Progressive Party of Maldives (PPM) along with the JP and Maldives Development Alliance (MDA) – reached an agreement prior to the Majlis elections to divide the 85 constituencies among the coalition partners.

Following a joint campaign, the PPM won 33 seats along while the JP and MDA won 15 and five seats respectively.

The opposition MDP secured 26 seats while five independent candidates and one Adhaalath Party candidate were elected.

However, MDP MP-elect for the Thimarafushi constituency, Mohamed Musthafa, and three of the five independent candidates have since signed for the PPM.

The election of a new speaker through secret ballot is scheduled to take place at the first sitting of the 18th People’s Majlis on May 28.

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Tourist arrivals increase six percent in March

Tourist arrivals in March increased six percent in annual terms but declined five percent in monthly terms, reaching 105,560 guests during the month, according to the Maldives Monetary Authority’s (MMA) monthly economic review released yesterday (April 30).

“The annual increase was due to the rise in the number of arrivals from China which offset the decline in arrivals from Europe,” explained the central bank’s monthly update of “developments in key economic sectors”.

Total bednights meanwhile rose two percent in annual terms, “while the average duration of stay declined marginally.”

The occupancy rate also decreased slightly compared to March 2013, falling to 82 percent. The report noted that the operational capacity of the tourism industry rose during the review month.

The Tourism Ministry meanwhile revealed yesterday that tourist arrivals in the first quarter of 2014 increased 9.7 percent compared to the same period of 2013, reaching a total of 321,561.

Europe retained the largest market share, accounting for of 51.3 percent of all arrivals to the Maldives with a total of 321,561 tourists during the first quarter of the 2014, the Tourism Ministry stated.

Asia and the Pacific recorded a growth rate of 24.4 percent at the end of first quarter of 2014, bringing in an additional 26,606 tourists to reach a total of 135,839.

The region accounted for 42.2 percent of arrivals to the Maldives at the end of first quarter of 2014.

According to the Tourism Ministry, the Chinese market expanded by 24 percent with an additional 16,960 tourists compared with the same period of 2013.

Statistics from the Tourism Ministry show that 331,719 Chinese tourists visited the Maldives last year, which was a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

The Maldivian economy is largely dependent on tourism, which accounted for 28 percent of GDP on average in the past five years, and generated 38 percent of government revenue in 2012.

Inflation

Meanwhile, in the second largest industry, the volume of fish exports as well as earnings “fell significantly by 80 percent and 66 percent respectively” compared to March 2013.

The decline was accounted for by the fall in the volume of and earnings from “fresh, chilled or frozen tuna exports.”

“The International Monetary Fund (IMF) commodity price index fell marginally in monthly and annual terms during March 2014,” the central bank noted.

“The monthly decline was mainly due to the fall in both petroleum and metal prices which off set the increase in food prices during the review month.”

The price of crude oil in March 2014 was US$104 per barrel.

The inflation rate in the Maldives meanwhile decelerated to 2.3 percent in March from 3.4 percent the previous month.

“This was largely contributed by the slower growth in food prices, especially fish, and also due to the moderate growth in the prices charged for housing and utilities,” the report explained.

“Similarly, the rate of inflation declined marginally in monthly terms during March 2014, which was also due to the slower growth in fish prices.”

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Nasheed warns of “imminent sovereign debt crisis”

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

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

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

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

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

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

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

Compensation owed “in any case”

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

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

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

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

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

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

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

“Sovereign debt”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Parliament approves hiking airport service charge to US$25

Parliament today approved legislation to raise the airport service charge from departing foreign passengers to US$25 from July onward as part of the current administration’s revenue raising measures.

The amendment bill submitted on behalf of the government by Progressive Party of Maldives MP Abdul Azeez Jamal Abubakur was passed with 32 votes in favour.

The government anticipates over MVR100 million (US$6.4 million) in additional revenue from the increased departure tax.

Parliament has also approved other revenue raising measures proposed by the government, including hiking import duties, reintroducing the bed tax until the end of November, raising the Tourism Goods and Services Tax (T-GST), and introducing GST for telecommunications services from May 1.

A proposal by the administration of former President Mohamed Waheed to raise the service charge to US$30 was narrowly defeated in April 2013.

The 1978 law imposing the airport service charge on departing passengers was first amended under the Maldivian Democratic Party government and raised to US$18.5 for foreigners.

The imposition of a similar Airport Development Charge (ADC) of US$25 by Indian infrastructure group GMR was previously a major point of contention for the Waheed administration, which terminated the concession agreement with the GMR-led consortium to modernise the airport in December 2012.

Other bills

A raft of other bills were also passed at today’s sitting of the People’s Majlis, including a bill on the state wage policy that was vetoed by former President Waheed in December 2012.

The legislation proposes the creation of a five-member National Pay Commission chaired by the finance minister with part-time members to determine salaries and allowances for the public sector and authorise pay rises.

The bill stipulates that the commission must consider the cost of living, inflation and the consumer price index in determining wages.

Moreover, salaries should incentivise government employees to work in islands with small populations.

The commission would also formulate standards and rules for determining the state’s pay scale or appropriate salaries based on qualifications and nature of employment.

Legislation on sole proprietors and business registration submitted by the administration of former President Nasheed in 2011 as part of an economic reform package was also passed today.

According to the draft legislation on business registration, the bill seeks to ensure that businesses, partnerships and cooperative societies operating in the Maldives are properly registered; specify what kind of businesses must be registered along with procedures for registration; and oblige businesses to submit information to the Registrar of Businesses.

The bill was also vetoed by President Waheed in April 2012 citing “socio-economic” concerns.

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Home Minister Umar Naseer pleads not guilty to charges at Criminal Court

Home Minister Umar Naseer denied charges of ‘disobedience to an order’ at the first hearing of his trial at the Criminal Court today.

Judge Abdulla Didi told Naseer’s lawyer to respond to the charges at the next trial date, according to local media.

Naseer is accused of calling for 2,000 volunteers on January 23, 2012 to storm the Maldives National Defence Force (MNDF) headquarters with 50 ladders during the two weeks of protests sparked by the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed.

On the night in question, Umar told anti-government demonstrators in front of the Maldives Monetary Authority building that they should use tactics to tire out the soldiers on duty before climbing into the military barracks, at which point “the people inside will be with us.”

“From today onward, we will turn this protest into one that achieves results,” Naseer had said.

“We know how people overthrow governments. Everything needed to topple the government of this country is now complete.”

After he was questioned by the police in September 2012, Naseer told the press that “there will be no evidence” to prove he committed a criminal offence.

“In my statement I did not mention where to place the ladders or where to climb in using the ladders.” Naseer had said.

If convicted, Naseer faces banishment, imprisonment or house arrest not exceeding six months or a fine not exceeding MVR150 (US$ 10) under article 88(a) of the penal code.

The case against Naseer was submitted to the Criminal Court by the Prosecutor General’s office in December 2012 after police concluded their investigation.

The 22 consecutive nights of protests by the then-opposition in January 2012 culminated in the resignation of President Mohamed Nasheed on February 7 in the wake of a violent mutiny by riot police officers.

Speaking at a Progressive Party of Maldives rally days after the controversial transfer of presidential power, Naseer claimed he had warned the president’s closest aides that Nasheed could “lose his life” if he did not comply with the ultimatum to resign.

Naseer said he told the president that he could “either surrender with bloodshed or surrender peacefully”.

Naseer also told Australia’s SBS Dateline programme that he was organising the protests from a “command centre” and that he feared for Nasheed’s life.

In January 2013, Naseer said the ousting of the Maldivian Democratic Party government was the result of “planning, propaganda and a lot of work.”

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GMR holds to US$1.4 billion compensation figure

GMR is sticking to the US$1.4 billion compensation claim for the abrupt termination by the Maldivian government in December 2012 of a concession agreement to develop the Ibrahim Nasir International Airport (INIA).

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid. Thus, GMR’s claim is $1.4 billion,” Indian media reported the Bangalore-based infrastructure giant as saying in a statement on Friday (April 25).

GMR noted that the Maldivian government had acknowledged for the first time that the company was owed compensation.

Prior to departing for Singapore on Thursday, President Abdulla Yameen told the press that the government would have to pay compensation to GMR upon conclusion of the arbitration process currently underway.

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

He added that the government’s objective in the arbitration hearings was to lower the compensation amount.

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

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

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

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

Despite the pending arbitration decision, expansion and development of INIA was among the five mega-projects for which the government was seeking investors at the Maldives Investment Forum held in Singapore’s Marina Bay Sands yesterday.

President Yameen also met officials of the Beijing Urban Construction Group yesterday, who “expressed their interest in engaging in the infrastructure development of the [INIA],” according to the President’s Office.

Void ab initio

In December 2012, the administration of former President Dr Mohamed Waheed voided the 25-year concession agreement with the GMR-led consortium.

The US$511 million contract awarded by his predecessor former President Mohamed Nasheed – following a bidding process overseen by the World Bank’s International Finance Corporation (IFC) – was the largest foreign direct investment in the country’s history.

Waheed’s government – of which President Yameen’s Progressive Party of Maldives was a coalition partner – declared the contract ‘void ab initio’ – invalid from the outset – and gave the company seven days to leave the country.

After GMR received a stay order for the eviction from the Singapore High Court, the government successfully appealed the injunction at the Singapore Supreme Court.

Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

At a press conference in the wake of the airport takeover, Finance Minister Abdulla Jihad – who retained his post under the new administration – said that the Maldives would pay whatever compensation was required “however difficult” while Attorney General Azima Shukoor expressed hope that the compensation would be lower than anticipated.

A special audit conducted by the Auditor General’s Office in early 2013 found that as of October 31, 2012, GMR Male’ International Airport (GMIAL) had completed 25 percent of the refurbishments and upgrades to INIA planned for the end of 2014, and had been invoiced by its contractor for US$69 million.

“Significant progress had been made in some areas – for example, 87 percent of the material for land reclamation had been dredged,” the report (English) stated.

“In the meantime, all work on the ground on the improvement to the airport has ceased. Sensitive elements of the new structures that had been planned by [GMR] are incomplete and exposed to the weather and at risk of damage – possibly closing off the option of re-using these elements to reduce the cost of any future development of the airport,” the report concluded.

After examining the bidding process, the audit report stated that evidence to back allegations of “improper interference” during technical bidding process “is not conclusive on this point”, and deferred the matter to the Anti-Corruption Commission (ACC), which ruled out corruption in June 2013.

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“Yonder lies the greener pastures”: President Yameen inaugurates investor forum in Singapore

President Abdulla Yameen inaugurated the Maldives Investment Forum at Singapore’s Marina Bay Sands today with assurances to potential investors of the government’s commitment to fostering a business-friendly environment.

In his keynote address at the event, President Yameen said his administration was “cognisant of the needs of our investors and the requirements to strengthen and redefine the legal and regulatory environment governing foreign investments.”

“To address investment climate and to facilitate mega investments with attractive incentive packages, a Special Economic Zone Bill will be tabled in the parliament soon. Additionally, the Foreign Investment Act and Companies Act are being revised to cater the ever increasing needs of the modern foreign investors,” he said.

“Investment registration and facilitation has also been strengthened recently, with structuring of Invest Maldives as a one-stop shop for investment promotion, registration and facilitation.”

Over 160 companies and close to 200 representatives from 16 countries were present at the first overseas investor forum organised by the Maldives, Yameen noted, expressing gratitude for the “overwhelming support received for this forum.”

The new government has “embarked on an ambitious economic agenda to transform the economy” with the goal of becoming “a resilient, diversified high income economy in the next decade,” the president said.

He added that the government was committed to exploring “openings for increasing foreign investment flows to non-traditional sectors to lift Maldives beyond the image of a picturesque postcard.”

Yameen suggested that the success of the tourism industry over the past 40 years was due to “ingenuity, private enterprise and a liberal policy environment for foreign investments”.

Mega-projects

The projects for which the government was seeking investors were “designed to position Maldives to take advantage of its strategic location as a hub and gateway for commerce, innovation and creativity, linking rest of the globe with South Asia,” he explained.

Briefing participants on the five mega-projects envisioned by the government, Yameen said that the Ihavandhippolhu Integrated Development Project or iHavan “provides immense potential to capture substantive share of the trade and commercial opportunities in the South Indian Ocean and capture the trade flows crossing the seven degree channel.”

The government hoped to “engage private investors in the delivery of key pieces of infrastructure,” he said.

The other mega-projects or infrastructure development plans were concentrated in the Greater Male’ region, Yameen noted, which included the Hulhumale’ Youth City with further land reclamation and a maritime seaport project.

“With these investments, we foresee the region surrounding the Male’ City emerging as a vibrant commercial hub in the region,” he said.

The other mega-projects include the expansion of the Ibrahim Nasir International Airport (INIA), relocation and expansion of the central port to Thilafushi, and exploration for oil and gas.

Concluding his remarks, Yameen thanked foreign investors and senior businessmen from the Maldives for their “support and presence” at the forum, which gave the government “comfort and confidence” in its economic and trade policies.

Yameen said he hoped the forum would serve as “an avenue for enhancing understanding of the investment environment and opportunities in Maldives.”

He went on to congratulate Economic Minister Mohamed Saeed and his team for organising the forum and expressed gratitude to the key sponsors.

“Yonder lies the greener pastures,” he concluded by saying.

Yameen’s remarks were followed by presentations on the five mega-projects, a question and answer session with government ministers and speeches by Stephen Ho, President of Starwood Asia Pacific, Akhil Gupta, Chairman of Blackstone India, and William Ellwood Heinecke, CEO of Minor International.

President Yameen also launched the new Invest Maldives website at the forum this morning.

In his speech at the inauguration ceremony, Economic Development Minister Saeed revealed that the government was planning to hold a second investor forum in Shanghai, “the commercial capital of China.”

Moreover, at a press conference held at the forum, Tourism Minister Ahmed Adeeb reportedly revealed that the government has decided to lease islands for resort development for 99 years instead of the 50-year lease period at present.

Legislation will be submitted to parliament to authorise the extension, he said, which was intended to gain investor confidence.

Meanwhile, prior to departing for Singapore yesterday, President Yameen told the press that the government was certain it would have to compensate Indian infrastructure giant GMR for the premature termination of the concession agreement to develop and manage INIA.

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

The US$511 million contract awarded by the administration of former President Mohamed Nasheed was the single largest foreign direct investment in the Maldives’ history.

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