Ahmed Naish – Page 79 – Minivan News

Government inherited outstanding debts of US$446 million, says Finance Minister

The former government left a dispersed outstanding debt of US$446.5 million owed to foreign and local banks, Finance Minister Ahmed Inaz informed MPs today during Minister’s Question Time in parliament.

In response to a query by Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed about the amount of loans obtained by the previous and incumbent governments, Inaz revealed that as of April 30 2011, the new administration has taken loans amounting to US$196.4 million.

“Out of that, US$5.1 million has been paid back in accordance with the agreement,” he said. “Therefore, the total dispersed outstanding amount is US$191.2 million.”

Inaz stressed that the loans of both governments were being paid on schedule “without any default.”

Outstanding debts of the previous government included a loan obtained for a fisheries project in 1979, Inaz said.

Asked by MP Abdulla Yameen – leader of minority opposition People’s Alliance – if the figures provided included receipts from sale of treasury bills, Inaz explained that “the total figures I’ve provided do not include treasury bills because the question today was about loans, which is different from securities.”

The total domestic debt in November 2008 – including T-bills issued by the former government – when the new administration took office stood at Rf809 (US$52.4 million), Inaz revealed.

“As of July, 2011, there is now Rf4.9 million (US$317,700) as total debt in T-bills,” he said, adding that parliament approved a budget with Rf1.3 billion (US$84 million) from issuance of T-bills to cover recurrent expenditure.

Inaz noted that the state budget passed by parliament in past years was structurally in deficit, with expenditure outstripping revenue: “To solve this, the tax bills proposed by the government has to be passed and I hope the honourable Majlis will solve this,” he said.

Jumhooree Party (JP) Leader Gasim Ibrahim – who as Finance Minister oversaw the expansionary fiscal policies – meanwhile asked to clarify if the total outstanding debt of the former government included foreign loans to assist victims displaced by the December 2004 Asian tsunami.

According to a UNDP paper on the Maldives’ debt sustainability published in December 2010, “as a percentage of GDP, public debt levels have almost doubled from 55 percent in 2004 to approximately 97 percent in 2010.”

“Public debt service as a percent of government revenues will more than double between 2006 and 2010 from under 15 percent to over 30 percent,” the paper noted. “The IMF [International Monetary Fund] recently classified the country as ‘at high risk’ of debt distress. From a human development perspective, the extent to which increased debt service obligations may put at risk key social and infrastructure expenditures give serious cause for concern.”

In May, 2011, the IMF warned that the Maldives “continues to suffer from large fiscal and external imbalances.”

The IMF agreed to a “medium-term” policy from the government to reduce its budget deficit “substantially”, “both through additional revenue measures – which would require the support and approval of the Majlis – and through expenditure restraint.“

“The authorities have introduced an initial voluntary separation plan for government employees and are continuing their detailed analysis of the public service, with an eye toward right-sizing government over the medium term,” the IMF noted.

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Maldivian fishermen to teach pole-and-line method to Seychellois, says President Nasheed

A bilateral agreement has been reached for Maldivian fishermen to instruct the Seychellois in environment-friendly pole-and-line fishing methods, President Mohamed Nasheed told press yesterday upon his return from an official visit to Seychelles this month.

President Nasheed explained that the Seychellois fisheries industry was based on long-line fishing by licensed foreign parties, with an annual catch of 250,000 tonnes compared to 140,000 tonnes per annum in the Maldives.

Long-line fishing and bottom trawling in the Indian Ocean has adversely affected fishing in the Maldives, which has been declining steadily for the past eight years.

“Our thinking was to carry out discussions with the Seychelles government for the Maldives to help introduce pole-and-line fishing to the Seychellois people,” he said.

While about 25,000 Maldivians were employed in fishing with 5,000 privately-owned fishing boats, Nasheed continued, the Seychellois were not involved in the local fishing industry in the country.

“We believe that if this is done, the Seychelles government could easily stop issuing [fishing] licenses without any loss,” he said. “The Seychelles government has agreed for Maldivian fishermen to go to Seychelles, fish there and teach pole-and-line fishing skills to the Seychelles people.”

Discussions also took place over the possibility of establishing a trans-national shipping line comprising the Indian Ocean island states of Maldives, Seychelles, Mauritius, Comoros Islands and La Reunion, President Nasheed revealed.

A team with officials from the five nations is to be formed with a view to forming a joint shipping line with a board representing all the countries, Nasheed said.

“The third point we discussed with the Seychelles government was to import goods jointly,” he said, adding that a mechanism for joint imports would significantly lower the prices of oil, foodstuff and pharmaceuticals.

Nasheed also noted the remarkable economic recovery of the Seychelles following the turnaround of its economic policies – which was faced with similar macro-economic challenges as the Maldives – including foreign exchange, market liberalisation and floating of the rupee.

President Nasheed said that the Maldives can learn from the Seychelles’ successful economic reform activities and recovery following its debt crisis in 2008.

Speaker Abdulla Shahid – who participated in the visit along with senior MPs of the ruling Maldivian Democratic Party – meanwhile discussed the possibility of forming an inter-parliamentary organisation for Indian Ocean island states.

President Nasheed however added that the “main purpose” of the official visit was to attend the opening of the Indian Ocean Island Games of 2011 and provide support and encouragement to the Maldivian sports teams, which was one of the largest delegations from the country for an international sporting event.

The competitions at the games include football, basketball, volleyball, swimming, laser sailing, badminton, weight lifting, boxing, table tennis, cycling, and judo.

Maldives is participating in the basketball, volleyball and badminton events. The national football team drew its first two matches against Mauritius and Comoros and are due to face host nation Seychelles tonight at 7:00pm local time.

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95 percent of juvenile offenders school dropouts, reveals Juvenile Justice report

The vast majority of juvenile offenders reported to the Juvenile Justice Unit (JJU) between April 1 and June 30 this year do not attend school, according to a report released by the JJU this week.

Of the 22 minors aged 16 to 18 referred to the unit in the three-month period, 95 percent had dropped out of school at the eighth or ninth grades while most do not live with their parents.

“It is possible that the children living under the care of other guardians for the purpose of studies or other reasons and not living with their parents could be a reason leading them to commit crimes,” the report notes.

It adds that the most children prone to delinquency belonged to gangs and were deprived of access to education and recreation facilities suitable to their age.

While the most common offences by juveniles include violent assault, drug abuse and theft, two of the 22 juveniles offenders were involved in a murder case.

The majority of arrests were meanwhile made in the capital Male’.

As part of its restorative justice mandate, the JJU isolates juvenile offenders at the Correctional Training Centre in Feydhoo Finolhu for rehabilitation programmes designed to reform delinquents.

The centre was opened on July 26, 2010 with 14 children and accredited educational courses on offer.

Offending children released from the centre are monitored with the help of Family and Children Centres in the atolls, the report notes, but lack of job opportunities remained “a major challenge.”

A draft Juvenile Justice Bill has meanwhile been sent to the Attorney General’s Office to create a legal framework to honour the country’s commitments under international conventions.

The legislation would establish a juvenile justice system separate from the criminal justice system for adults to “provide the special protection and assistance due to children.”

According to the report, a life-skills training and parental skills training programme with UNICEF assistance is due to be launched this year for JJU staff.

“Following [the training programmes], students and parents will be offered training and information,” it reads. “In addition, a feasibility study is to be conducted this year on community based rehabilitation with the help of a foreign consultant.”

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MPs clash over maritime agreement with Sri Lanka

MPs clashed today over a motion without notice calling on the government to terminate a reported agreement with Sri Lanka to allow its vessels passage across Maldivian waters, raising fears of increased illegal fishing in the country’s economic zone.

The motion was proposed by MP Ali Saleem of the opposition Dhivehi Rayyithunge Party (DRP) in the wake of reports in the Sri Lankan media about the maritime agreement and contradictory statements by Fisheries Minister Dr Ibrahim Didi and President’s Press Secretary Mohamed Zuhair in the local media yesterday.

“Parliament has to look into what is hidden behind this,” said Saleem in his opening remarks. “Did you know that even if Sri Lankan fishing vessels traveling to the Arabian sea are carrying sharks or fish catch, there is no way to know because of this agreement signed yesterday?”

The motion states that there was room to suspect “the beginning of hidden deals” behind the agreement and asks to clarify which maritime law facilitated the arrangement of vessels informing the Sri Lankan embassy 48 hours in advance to ensure safe passage.

In the ensuing debate, MP ‘Colonel’ Mohamed Nasheed of the ruling Maldivian Democratic Party (MDP) suggested that “it would be better for us to find out accurate information on the matter” if fears of illegal fishing had resulted from misinformation.

DRP MP for Mathiveri Hussein Mohamed called on the government to inform the public of “measures to protect Maldivian fishing areas and incomes of local fishermen if this [maritime agreement] is going forward.”

DRP MP Ali Arif argued that Maldivian foreign policy should remain “non-aligned” and neutral as “a small authorisation like this” could threaten “hundreds of years of independence.”

“Because the Sri Lankan government authorised many MDP activities in that country before the 2008 election when MDP was formed, I believe this is a gift to them in return for that,” claimed Jumhooree Party (JP) MP Ibrahim Muttalib.

The government’s foreign policy was threatening sovereignty and independence, Muttalib continued: “We heard recently that from now on we will vote the way India wants at the UN. This is slavery, this is enslavement,” he said.

MDP MP Mohamed Shifaz meanwhile concurred with other MPs that the Maldives did not have the capacity to monitor foreign fishing vessels. All MDP MPs agreed with the consensus view that unmonitored illegal fishing posed dangers to the local fishing industry.

DRP MP Leader Ahmed Thasmeen Ali noted that Sri Lankan trawlers had been found fishing illegally in Maldivian waters in the recent past.

“And it is a fact accepted by all our fishermen that our country, our government, does not have the capacity to identify, locate and stop foreign vessels illegally fishing in our seas,” he said, warning that the new maritime agreement would further complicate monitoring of the economic zone.

Thasmeen added that Sri Lankan fishing vessels were known to engage in shark fishing, which results in dwindling fish stocks.

There must be “broad consensus” before such a maritime agreement was signed, the opposition leader said.

MDP MP for Billedhoo Ahmed Hamza however pointed out that previous government in 1982 had acceded to the UN Convention on Law of the Sea, which stipulates that foreign vessels must be granted passage across territorial waters for sea travel.

While the convention allowed “innocent passage,” said Hamza, fishing by such vessels was strictly prohibited.

Hamza urged MPs to continue the debate after seeking official documentation to determine whether the maritime agreement with Sri Lanka was required by the UN convention.

“Why are we concerned about passage across Maldivian waters? [Because] we are talking about at least 424 nautical miles [of territory from the shore],” said DRP MP for Kelaa Dr Abdulla Mausoom.

While innocent passage was not an issue, said Mausoom, “history shows for certain” that Sri Lankan vessels would fish in Maldivian waters as trawlers from the neighbouring country had been detained by the authorities in the past.

MDP MP Ilyas Labeeb meanwhile accused the previous government of “selling the EEZ [Exclusive Economic Zone]” to enrich senior officials of the regime.

“We do not want to do anything that could harm Maldivian fishermen,” he said. “Before this government, fishermen got Rf3 or Rf4 for a kilo of fish. Now fishermen are glad that they get Rf20 or Rf30 [for a kilo].”

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Central and southern atolls hit by high swells

South and central atolls in the Maldives have been hit by high swell waves in the past 48 hours, according to the Maldives Meteorological (MET) Service, causing minor flooding in some islands.

A duty forecast officer at the MET department said that islands in Addu, Gaaf Alif, Gaaf Dhaal, Thaa, Laamu and Raa Atolls were affected by the swells but not much damage had been reported.

“It happens every year but we have not noticed a pattern in this year’s incidents so far,” he explained.

The forecast officer added that while some swells might hit central and south atolls today, the waves are expected to subside in coming days.

According to MET, highest tide levels is expected between 4:30pm and 8.30pm today.

The island of Fares-Maathoda in Gaaf Alif Atoll, one of the islands struck by high swells, suffered minor flooding yesterday as waves broke over the island.

An islander told Minivan News that the flooding was exacerbated by the reclamation of a shallow passage linking the two islands of Fares and Maathoda in the 90s to create a small harbour.

The resident of Fares-Maathoda explained that before the reclamation, waves would pass over the narrow passage of sea.

“But now that it is blocked, the waves break in the area and sometimes flood the island,” he said.

In April this year, 5 million Danish Krone (Rf12 million) was donated by the Danish government for climate change adaptation in Fares-Maathoda, including use of the funds to continued flooding resulting from drainage and waste management issues.

Meanwhile in a visit to the National Disaster Management Centre (NMDC) today to inquire after the damages caused by the waves, Vice President Dr Mohamed Waheed urged the relevant authorities to immediately report all occurrences of tidal surges and environmental hazards to the NMDC.

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UN Special Rapporteur appeals for cooperation of Iranian government

The new UN Special Rapporteur on Iran, former Maldivian Foreign Minister Dr Ahmed Shaheed, has appealed to the Iranian government to extend its full cooperation with his mandate after the Islamic republic refused to permit the Special Rapporteur to enter the country.

In July, Iran’s secretary general of the high council for human rights dismissed “the western-engineered appointment” of Dr Shaheed as Special Rapporteur as”an illegal measure,” according to the Tehran Times.

“Iran has no problem with the individual who has been appointed as the special rapporteur, but the appointment of a rapporteur on the human rights situation in Iran is unacceptable and Iran will not accept the decision,” Mohammad Javad Larijani was quoted as saying.

According to according to the UN Office of the High Commissioner for Human Rights (OHCHR), Dr Shaheed however expressed hope that “the Iranian authorities will view my mandate as a secure and legitimate space in which to take steps to comply with its international human rights obligations, as well as an opportunity to address the areas of concern communicated to Iran during its interactions with the international community on human rights issues.”

Dr Shaheed said on his first day as Special Rapporteur that the new mandate “provides an opportunity for Iran to engage on a range of human rights issues that have been raised by the international community.”

“I issued a written communication to the Iranian authorities to introduce myself and express my interest in visiting the country,” he said. “My first report shall be submitted to the sixty-sixth session of General Assembly, and I have sought meetings with the Iranian Ambassador to the UN Offices in Geneva ahead of that date to discuss a platform for cooperation in the months ahead.”

According to a statement by the OHCHR, Dr Shaheed is seeking cooperation of the Iranian authorities in the interest of fair and accurate reporting on its human rights situation, and developing constructive engagement between Iran and the UN human rights machinery.

“Every effort shall be made to demonstrate both the steps that the Iranian authorities can take to comply with Iran’s international obligations, as well as to draw attention to the grievances of those who feel victimized by alleged human rights violations,” Shaheed stressed.

Dr Shaheed resigned as Foreign Policy Advisor to the President this week before officially commencing his duties as Special Rapporteur on August 1, 2011. Prior to his appointment as the Special Rapporteur on the situation of human rights in Iran on June 17, 2011, Dr Shaheed served as foreign minister under both the incumbent and previous administrations.

In an interview with Minivan News following his appointment, Dr Shaheed conceded that the Iranian government’s refusal to allow the Special Rapporteur to enter the country was “a challenge, but by and large they come around in the end.”

“The last time a Special Rapporteur was in Iran was in 1996. Countries eventually come round, but it takes time,” he said. “The work of the special rapporteur is structured in such a way that even if a field visit is not possible the work can continue.”

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Land Act amendments to allow private ownership of land

Parliament began debate today on amendments proposed to the Land Act of 2002 to allow citizens to use land as a commercial asset.

Presenting the draft legislation on behalf of the government, MP Abdul Gafoor Moosa explained that the amendments would allow land to be bought and sold as privately-owned assets.

“In our long history, land was used as a gift given by the government to its supporters,” he said. “After [years of] distributing land like this in Male’, the new generation gets a plot the size of a bed. There is nothing left for tomorrow’s generation.”

The amendments would create a Land and Survey Authority to draw territorial charts, conduct surveys of land use and valuate property, he added, as well as a Registrar of Land to maintain a national registry.

“So those who want to mortgage land will know the value of their land and be able to mortgage it easily,” he said, adding that the new authority would be part of the civil service and answerable to a cabinet minister.

The proposed law would introduce procedures for individuals and married couples to register state-owned land as personal property, Gafoor continued, which would provide “necessary security and protection for everyone.”

The government would also be legally empowered to seize plots that remain unused for five years, said Gafoor, while the current 15 percent tax on estate sales would be abolished.

Speaking in his weekly radio address on June 10, President Mohamed Nasheed argued that the proposed reforms to land transactions would increase the country’s wealth.

The government’s aim was to transfer land titles traditionally held by the state to individuals, said Nasheed, who would be encouraged to use the land as capital to increase their wealth.

Together with the amendments to the Land Act, the government has also proposed a bill on condominiums to create a legal framework to allow individual ownership of real estate or apartments in a single building. An additional bill on mortgages would meanwhile allow apartments to be mortgaged at the bank to obtain loans.

In the parliamentary debate today, MP Ibrahim Rasheed of the ruling Maldivian Democratic Party (MDP) observed that 80 percent of land in the Maldives was state-owned.

Rasheed urged MPs to pass the bill into as quickly as possible “to ensure for the Maldivian people their birth-rights.”

MPs of the opposition Dhivehi Rayyithunge Party (DRP), People’s Alliance (PA), Dhivehi Qaumee Party (DQP) as well as some Independents however argued that some provisions in the law conflicted with the Decentralisation Act by divesting authority from local councils.

DQP MP Riyaz Rasheed said that articles 86 through 89 of the bill were intended to “steal all the powers [afforded to local councils] in the Decentralisation Act.”

“What they’re trying to do is gift all the land in the country to these MDP people and their supporters,” he said.

Riyaz alleged that the government recently awarded a plot in Male’ to India for a new embassy building in exchange for “buying a few MPs for MDP.”

“I will dare to say this, what can you do about it, you can’t do anything,” he said. “The Maldives will soon become a small province of India, a small town. Our own identity is being taken from us and the whole country is going to become enslaved to them.”

The new administration has “sold all our assets” to India, he added.

PA MP Abdul Azeez Jamal Abubakur meanwhile concurred that the law would disenfranchise councils, recommending that experts be consulted during committee stage before the law is passed.

DRP MP Hassan Latheef suggested that the law should stipulate that councils must be consulted by the Land and Survey Authority before making decisions on land use in the islands.

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Resolution calling for investigation into alleged US$800 million illegal oil trade sent to committee

A resolution proposed by MP Mohamed Musthafa calling for an official investigation into an alleged US$800 million worth of illegal oil trade involving former President Maumoon Abdul Gayoom and MP Abdulla Yameen was sent to committee today.

The resolution was approved 52-11 and sent to the national security committee for further review.

In his closing statement, MP Musthafa of the ruling Maldivian Democratic Party (MDP) said that MP Yameen’s conceding during the debate last month that US$800 million worth of trade in oil did take place had “fulfilled the main purpose of my resolution.”

MP Yameen, who was chairman of the State Trading Organisation (STO) and long-serving Trade Minister under the previous government, however contended that the sale of oil to Burma was not illegal.

“This was done by forming a company in a country where such matters are most closely monitored,” he said. “That company is audited by STO auditors. An illegal business would not be allowed to operate in Singapore. This was not a secret trade.”

Musthafa however argued that Burma was under UN embargo at the time and “no ship registered at the International Maritime Organisation (IMO) could unload cargo at a [Burmese] port.”

As the Maldives was a member of IMO, said Musthafa, trading by sea with Burma would have been a violation of the organisation’s laws.

Musthafa added that the US Treasury Department had labelled one of the Burmese officials involved in the oil trade with STO as “the godfather of heroin.”

“The port of discharge is stated as Maldives,” he continued. “The goods are loaded at Singapore for Maldives, but at sea the ship is diverted to the Burma port.”

Musthafa alleged that there was “serious shipping fraud” involved in the trade.

“The ship owner wants the cargo and he’s told that he’ll have it only when he agrees to a clause in the agreement,” he explained. “The boat operator will say yes because he wants the cargo. The chart agreement states he would have to help ‘a sweet bill of lading.'”

Over 30 shipments went to Burma in 2004 alone, Musthafa claimed, adding that UN reports suggested that US$80 million worth of illegal oil trade at sea occurred daily, involving “corrupt government officials.”

Musthafa challenged Yameen to present 12 kinds of documents to the government to prove his innocence, including shipping documents, bank documents such as LCs (line of credit), board of resolution for forming MOCOM, documents of business transactions, tax receipts to the Singaporean government, purchase and sale contracts, bills of exchange submitted to the banks, account statements and logbooks, cargo manifests and bills of lading of the ships.

Musthafa suggested contacting the United Overseas Bank and Standard Chartered Bank to obtain the documents and seeking Interpol assistance for the investigation.

The Presidential Commission did not have the capacity to investigate fraud on such a scale, he said.

Abdulla Haseen, spokesperson of the commission, told local media last week that evidence gathered so far “suggest links between the trade and convicts serving prison sentences.”

Haseen claimed that attempts were being made to obstruct the investigation in the Maldives, “but given that investigations are being conducted abroad there is little chance for obstruction and thus we’re making progress.”

The commission was being assisted by forensic accountancy firm Grant Thornton, British law firm Lawrence Graham LLP, a Singaporean law firm and several other international organisations, he said.

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Government inviting foreigners to usurp Maldivian businesses, claims MP Muttalib

A business registration bill proposed by the government as part of its economic reform package is “a deceptive ploy” to “open up the country to foreigners”, warns MP Ibrahim Muttalib.

During today’s parliamentary debate, the Jumhooree Party (JP) MP argued that provisions in the legislation allowing foreign businesses to establish branches in the Maldives and requiring at least US$1 million as capital “proves that this bill was drafted to allow foreigners to easily do business in the Maldives.”

“Under this law, a person with US$1 million would be able to easily register a business in this country,” he explained. “Considering the state of the Maldivian people, there won’t be any businessman who has US$1 million at hand. [Foreign businesses] will be able to conduct wholesale business and sell day-to-day necessities.”

Muttalib added that local businesses that trade in footwear and garments “would not have US$1 million, except for a very few people.”

He urged MPs to consider the consequence of foreign businesses entering the footwear, garment and wholesale industry: “What is being done today is part of a neighbouring country’s efforts to open up this country for its citizens,” he said.

“The Indian government proposed opening up the service industry, tourism, travel agencies, construction, health industry, social security, financial industry, maritime travel, air travel and airplane repair under a SAFTA [South Asian Free Trade Association] agreement,” he claimed. “But because all our local industries opposed it the government has decided to do it under a law.”

While the bill specified businesses that could not be conducted by expatriates – such as fisheries, agriculture and selling commodities out of a private residence – all other kinds of businesses were “opened to foreigners” under the proposed law.

“Honourable Speaker, I do not want to live in this country as a third-class citizen,” he said.

Foreign businesses understood that a relatively small amount of capital was enough to “easily bribe officials” and secure investments such as uninhabited islands, Muttalib claimed.

According to the draft legislation, the purpose of the bill is to ensure that businesses, partnerships and cooperative societies operating in the Maldives are 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.

MP Abdulla Mausoom of the Dhivehi Rayyithunge Party (DRP) meanwhile expressed concern that allowing foreign businesses to establish branches in the Maldives could pose challenges to local industries.

Mausoom argued that the US$1 million stipulated as a minimum capital investment for foreign businesses was too low: “All around us, whether it’s India, Celyon [Sri Lanka], Singapore, Malaysia or Africa, are looking at the Maldives; [because] their countries are saturated they are ready to do business in Maldives.

“If we open up too easily like this, [foreign] businesses will pose serious challenges to our small businesses,” he said, suggesting more restrictions to protect local industries.

MP “Reeko” Moosa Manik, acting chairperson of the ruling Maldivian Democratic Party (MDP), noted that there were numerous unregistered businesses operating in the Maldives by foreign parties.

“In the woods in some islands, especially [Laamu Atoll], there’s even an immigration department,” he said, adding that he has learned of work visas approved for ten people under the name of one person. “There’s no particular business done by these people, in sum they’re involved in all business.”

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