Author: JJ Robinson

MMC pulls magazine, forwards Sun brothel expose to Prosecutor General

An undercover account of Male’s illegal brothel scene, dubbed ‘Operation Sunset’, has landed Sun in hot water with the Maldives Media Council (MMC) for its lurid details of the experience.

The stories, which initially appeared in Sun’s magazine, reportedly involved three Sun journalists visiting massage parlours in Male’ and soliciting sex from the women in an attempt to expose illegal brothels operating in the capital.

The stories have sparked a public debate on morality and journalism, and prompted the Maldives Media Council (MMC) to call an urgent meeting and demand that the offending edition be pulled from circulation.

Versions of the stories were also published on Sun Online’s website, and are now the site’s most viewed. A source within Sun Online told Minivan News that the content was edited and toned down prior to appearing on site.

Police Sub-Inspector Ahmed Shiyam said claims made in the article that the operation was conducted with the assistance of police were untrue.

“They called the police media section and said they were checking these places to see if anything illegal was taking place, but they didn’t say how. They have provided no information on these places to police,” Shiyam said, adding that police had also received complaints from the public over the story.

Shiyam confirmed that the case had been sent to the Prosecutor General’s office by the MMC, but did not say whether the subject of the investigation would be the journalists involved, the publication or the alleged brothels.

“We are waiting for the PG to request us to start an investigation,” he said.

President of the MMC Mohamed Nazeef said the council had never before received such a significant volume of complaints following the publication of a story.

“[The complaints] were mainly about the style of presentation, so we decided to ask them to pull the magazine,” Nazeef said, adding that the matter had been forwarded to the Prosecutor General’s office “because of the police issues involved.”

The MMC’s policy was to step back when other authorities became involved, he said.

“We have been very cautious because we do not want to kill investigative journalism in the Maldives or undermine the reporting of serious issues,” he said. “But the problem was the style of writing – it was not professional, and the editor has to take responsibility. These are young journalists with little training, and the editors are senior people who have put them in a bad position by saying they have paid [for sexual services].”

Nazeef said he had spoken to the executive editor of both publications, Ahmed ‘Hiriga’ Zahir, and ascertained that the original article was published in the magazine due to some internal misunderstanding.

“I got the feeling that they asked these boys to do this and write about the experience,” Nazreef said. “I think this is an issue of training. We need to run a course in investigative journalism, perhaps bring in a CNN journalist to talk to them, and offer training on how to cover protests, possibly with someone from the Western Australian police [who trained police in the Maldives].”

Zahir told Minivan News he had no official comment on the matter, and referred Minivan News to the editor of Sun Magazine, Shinan Ali. Ali was not responding at time of press.

The Maldives Journalists Association (MJA), of which Zahir is President, has meanwhile issued a statement stating that while some of words and phrases used in the article were “inappropriate for Maldivian society”, the MMC’s decision would “narrow the opportunity for investigative journalism in the Maldives.”

The MMC could have resolved the issue without forwarding the case to the Prosecutor General, the MJA suggested, as illegal prostitution in the Maldives was “something the public needs to be made aware of.”

Lawyer and former Attorney General Dr Ahmed Ali Sawad suggested to Minivan News that while the media was free to pursue the truth in the Maldives, it was still bound by the need for “ethical” conduct in doing so.

“I believe investigative journalism is about unraveling the truth and truth is protected by law. Our constitution and the democratic system we are working to establish is designed to protect journalists who reveal the truth,” he said.

“Responsible investigative journalism implies not being accountable to the consequences of the revealed truth, but to the ethical propriety [standards] of the revealing of the truth,” he said.

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Champa Moosa “an environmental criminal”, claims EPA, while police interrogate authority’s former Director General

The Environmental Protection Authority (EPA) has labelled local business tycoon Mohamed ‘Champa’ Moosa an “environmental criminal” for irreversibly damaging the island of Thun’bafushi and the marine ecosystem of Thun’bafalhu.

The EPA on Thursday fined Moosa the maximum penalty of Rf100 million (US$6.5 million) for conducting dredging and reclamation works in the area without an Environmental Impact Assessment (EIA).

Director-General of the EPA Mohamed Zuhair has reportedly resigned over the matter. Furthermore, Police Sub-Inspector Ahmed Shiyam confirmed to Minivan News that Zuhair had been taken in for questioning regarding an undisclosed investigation. Zuhair was not responding at time of press.

Director of the EPA Ibrahim Naeem told Minivan News the area had been irreversibly damaged and a large reef habitat destroyed.

Sharks left in a foot of tepid water

“This was originally a reef ecosystem with a small sand bank in the middle, but he has been dredging the island without any clearance and the changes are now irreversible,” Naeem said.

After three surveys of the area, the EPA had assessed the damage as amounting to Rf2,230,293,566 (US$144.6 million), not including the impact of sedimentation from the dredging which can smother coral kilometres from the site.

A foreign consultant who was involved in surveying the island told Minivan News that the area “seems to have been used as a dumping ground.”

“There were what looked like hundreds of used car batteries, waste metals and oil drums leeching into the marine environment,” the consultant said.

“We were looking at the effect of the dredging on sedimentation, and there were no water quality tests done. But you can just imagine what it would have been like with all the batteries and waste metals.”

Images of the island obtained by Minivan News showed discarded piles of rubbish and batteries, old earthmoving machinery rusting in the sun, and half a dozen reef sharks in a tank containing a foot of tepid water.

While the unauthorised reclamation works are several years old and have been a subject of EPA concern for some time, Naeem explained that the procedure and mechanism for calculating and issuing fines was only established in February this year.

The Environmental Protection Act already states the requirement for an EIA assessment and the illegality of conducting works without acquiring one, but does not outline how this should be penalised. Naeem noted that the EPA had lost court battles on the specifics prior to the introduction of the new framework in February.

“We now calculate environmental damage caused by [unauthorised] dredging at Rf65,000 (US$4200) per square metre,” Naeem said, “but Rf100,000 million is the maximum fine.”

Fines were open to appeal and negotiation, Naeem said, suggesting that “this is likely to happen in this case.”

Piles of rubble and old machinery

Moosa could also request the EPA resurvey the damaged area, Naeem  said, although he noted that the EPA had already surveyed the area three times, most recently in March.

Ali Rilwan of Environmental NGO Bluepeace expressed concern that the EPA’s previous issuing of fines for environmental damage was sporadic, and those that were issued were often unpaid “or the day afterwards, pardon is given.”

The EPA’s lack of independence from the executive also “raised doubts” as to whether fines were politically motivated – Moosa’s business interests include private broadcaster DhiTV, which the ruling Maldivian Democratic Party (MDP) has previously criticised for being heavily aligned to the opposition.

“The Environmental Act does not conflict with the Constitution, but the EPA should be an independent body like the Human Rights Commission,” Rilwan said.

“It should be an independent agency autonomous from the government staffed by academic professionals, rather than civil servants and ministers. Because of the current setup, we do have doubts [over its independence].”

A building on the island used for storage

Naeem responded that while he did not know if there was a political element to the decision to fine Moosa a week before the government was seeking to push through major economic reforms in parliament, “what we do know is that Champa has definitely done this without a license or any form of clearance.”

“I don’t know if there is a political element – but he has committed a crime, and we have to take our responsibility towards the environment seriously,” he said.

Minivan News contacted Champa Moosa for comment but he had not responded at time of press.

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Tourism business worth US$2.5-3 billion, not US$700 million as thought, says President

The tourism industry in the Maldives is worth three to four times more than previous estimates, President Mohamed Nasheed acknowledged during a press conference this morning with journalists, ministers and industry leaders.

“Previously we had thought tourism receipts for the country were around US$700 million. But since collection of the 3.5 percent Tourism GST it has come to light that the figure is around US$2.5-3 billion,” President Nasheed said.

”I was told that the government’s expenditure was too high, but I told them it was not that the expenditure was high, but that the revenue was too low. There are not many ways we can decrease the expenditure of the government,” Nasheed said.

Nasheed was speaking ahead of parliament’s resuming sessions next week, where the ruling Maldivian Democratic Party (MDP) hope their new voting majority will push through major economic reforms. Most ministers were in attendance, as well as senior industry figures including Jumhoree Party (JP) leader Gasim Ibrahim.

Secretary General of the Maldives Association of Tourism Industry (MATI), Sim Mohamed Ibrahim, suggested the US$2.5 billion figure was optimistic, “as a lot of it is guesstimate.”

“The TGST income is variable depending on season, occupancy and volume of business,” he explained. “If they are projecting the figures from Jan-March for the rest of the year, that is the biggest time of the year and the figure will be very rosy. It may be a few years before we can calculate this accurately.”

Nonetheless, “the government will have a lot more money at its disposal for national development,” Sim predicted.

“I don’t think traders will have any problem paying taxes so long as other charges and levies are lowered. What business needs is predictability – this has been lacking in the past, particularly the calculation of rent and lease periods. They need confidence in the system, and things to be spelt out clearly. I think this is now happening.”

Historically the government had derived most its revenue from import duties, followed by bed taxes on the resorts, President Nasheed explained, both of which ultimately be abolished in favour of a modern tax economy.

One impending change – which was not given a date – was the sale of land for commercial purposes, Nasheed said, with all land, including resort islands, becoming a tradeable commodity.

“Ultimately that is where we have to go. I understand that this not the law right now,” he said.

The Maldives currently does not recognise freehold land, and furthermore lacks a central register of land ownership. Currently land is owned by the government and leased to commercial operators, although these agreements can extend up to 99 years. Resort leases are shorter, but under the current government are extendable to 35-50 years when a certain percentage is paid upfront.

Sim observed that only 20 percent of resorts had invested in the longer leases, “either due to their income [required for the upfront payment] or because the banks aren’t lending.”

“[Land purchase] might be an advantage to the industry, as resort land has always been treated differently,” he said.

“It was briefly introduced in the past but was later revoked. Given the shortage of land in the Maldives, land ownership can be a touchy subject. But now it is possible for the government to reclaim land.”

Nasheed has previously observed that the government’s new financial changes, which include an income tax and a general GST it hopes to approve in parliament, were “perhaps far more radical that introduction of political pluralism in the semi-liberal society that we had.”

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UN Envoy claims Sri Lankan execution video authentic, depicts “war crimes”

Video footage purportedly showing Sri Lankan troops executing bound and naked Tamil dissidents in the closing days of the country’s civil war has been described as authentic by the UN’s Special Rapporteur on Extrajudicial, Summary or Arbitrary Executions, Christof Heyns.

The video was obtained in 2009 by the UK’s Channel 4 news network and aired in August that year. Heyns’ predecessor Philip Alston declared in January 2010 that “extracts” were genuine.

Heyns obtained and analysed a longer version of the video in consultation with a forensic pathologist, firearms expert and two forensic video analysts, and this week concluded that the footage was authentic.

The Sri Lankan government has maintained that the video is fake.

“What is reflected in the extended video are crimes of the highest order — definitive war crimes,” Heyns told the UN Human Rights Council in Geneva.

“I conclude on the basis of the extensive technical evidence we obtained from independent experts that what is depicted in the video indeed happened. I believe that a prima facie case of serious international crimes has been made.”

The Sri Lankan government has been under international pressure to submit to a war crimes investigation after a UN report published in April found “credible allegations, which if proven, indicate that a wide range of serious violations of international humanitarian law and international human rights law were committed both by the Government of Sri Lanka and the LTTE, some of which would amount to war crimes and crimes against humanity.”

Head of the Sri Lankan delegation to the UN Human Rights Council, Minister of Plantation Industries, Mahinda Samarasinghe, argued that the UN was usurping Sri Lanka’s own Lessons Learned and Reconciliation Commission (LLRC).

“It is disconcerting to note the haste with which some have sought to usurp the government of Sri Lanka’s prerogative in deciding its domestic process,” Samarasinghe told the Council.

“We firmly believe that our home-grown process is capable of addressing the nuances of our unique situation.”

An international war crimes investigation can only be conducted on the invitation of the host government, or by the mandate of a UN body such as the UN Human Rights Council – on which the Maldives, Sri Lanka’s neighbour, ally and historical trading partner, sits.

During a recent press conference in Colombo, Foreign Minister Ahmed Naseem described the UN’s report into the country’s civil war as “singularly counterproductive.”

“The focus should now be on how the country can move forward,” Naseem said. “As a responsible member of the Human Rights Council, the Maldives believes it is imperative that the international community closely examine all aspects of the report before taking any further action.”

Upon the release of the report, President Mohamed Nasheed’s Press Secretary Mohamed Zuhair told Minivan News in April that the release of the UN’s document was belated.

“Why say it now? Why not when the war was going on? My point is that this report only appeared after the war was over. We support the Sri Lankan government’s desire for peace and harmony, and any government that brought about that peace should be held in high honour.”

Meanwhile, the Maldives Permanent Representative to the UN in Geneva, Iruthisham Adam, on Monday addressed the Human Rights Council by “welcoming recent global events which have promoted accountability and justice.”

It was, she said, “a momentous time for human rights around the world – a time for accountability for past crimes, and a time of hope for new beginnings.”

“The flight of former President Ben Ali from Tunisia, the arrest and prosecution of former President Mubarak and his associates in Egypt, the arrest of former President Gbagbo in Cote d’Ivoire, the death of Osama Bin Laden, and the recent capture of Rtako Mladic in Serbia all send out a powerful message to those who believe they can violate human rights with impunity,” Ambassador Adam said.

She expressed concern that, in some countries, “governments have chosen to use fear, intimidation, and state-sponsored violence to subdue protests – a response which not only violates international human rights law but one which is also doomed to failure.

“The more those governments try to tighten their control, the less control they will in fact have. The Maldives today renews its call for these governments to immediately stop using force, to listen to their people, and to begin genuine programmes of democratic and human rights reforms.

“In our globalised, inter-dependent world, those who would trample human rights, deny basic freedoms, and kill in the name of power or greed will ultimately be held accountable.

“No matter how high their walls, those who violate human rights will be brought to justice. These welcome developments across different continents are not only important as signals that impunity is, in the end, illusory; they are also important in that, by dealing with the past, by securing accountability and redress, the countries concerned are laying the foundations for a better future.”

Warning: some readers may find the following footage disturbing

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Police investigating 51 complaints of torture and wrongful imprisonment

Police are investigating 51 new complaints of torture and wrongful imprisonment after soliciting cases from an office in the Velaanage building.

The torture investigation committee led by former Defence Minister Ameen Faisal was formed by Presidential decree to investigate torture allegations against former government, and obtain information concerning prison torture carried out during both the current and former administrations.

The office was opened last week following the release of disturbing photographs of tortured victims in custody, and the arrest of former prisons chief Isthafa Ibrahim Manik, who has since been released to house arrest on order of the High Court.

The photos released so far include images of men tied to coconut palms, caged, and bloodied. One of the photos, of a prisoner lying on a blood-soaked mattress, has a 2001 date stamp.

Police Sub-Inspector Ahmed Shiyam said some of the complaints concerned “inhumane activities” and violations of human rights within the prison system, while others related to people “who were imprisoned for a long time without trial, or were kept in custody despite a court order [to the contrary].”

“Most occurred a long time ago, 20-30 years,” Shiyam said. None of the 51 complaints selected for investigation referred to incidents in the last two years, he confirmed, although the office was continuing to seek information on recent cases.

The prisons system has been under particular scrutiny following the disappearance in April of crucial files relating to an investigation into human remains found on the site of the former Gaamaadhoo prison.

“People want to see justice for what happened,” a senior government source told Minivan News at the time. “Human remains were discovered and there is a strong reason to believe that something bad happened. However it looks like the investigation has been compromised.”

Police have since claimed that preliminary investigations revealed planned and systemic abuse of prisoners over a long period of time.

Several members of government, including President Mohamed Nasheed, maintain they were tortured in custody under the former administration.

Former President Maumoon Abdul Gayoom has denied allegations – among others – that incidences of torture occurred during his rule.

“All such allegations of corruption, mismanagement and misappropriation of funds and property are baseless and completely untrue, as are those of torture, repression, and unlawful detention during my presidency,” Gayoom said in a letter to UK Prime Minister David Cameron last year, dated October 17.

“Nearly two years after the MDP government assumed presidency, Nasheed and his government have failed to uncover a single shred of evidence to substantiate any of these allegations,” Gayoom said.

Cases of previous custodial torture can be reported to the government’s investigation committee on the 12th floor of Velaanage, by phone on +960 333 0584 or +960 333 0585, or island police posts.

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Israeli national carrier El Al requests permission to fly to Maldives

Israel’s national carrier El Al has formally applied to the Ministry of Civil Aviation to begin flying to the Maldives from December.

President Mohamed Nasheed’s Press Secretary, Mohamed Zuhair, said he believed the government was inclined to grant permission to the airline.

“Despite the reservations of the Adhaalath Party and other religious groups [in the Maldives], El Al flies to many Arab capitals and is even accessible to those people claiming to work against Israel, who seem to have no objections to it,” Zuhair observed.

He did acknowledge that permitting the airline to fly the Maldives represented “a political obstacle”, but suggested it was “one for the Adhaalath party to explain.”

“Maldivians have not been directly affected by any actions taken by Israel, and the Maldives is in fact involved in peace initiatives undertaken in the Middle East by the Maldivian government,” Zuhair said. “I don’t see the justification for not accepting an Israeli airline that is accepted by Arab states claiming to be victims of Israel.”

The religiously-conservative Adhaalath Party has declared it will terminate its coalition agreement with the ruling Maldivian Democratic Party (MDP) if it allows an Israeli airline to fly to the Maldives.

In an earlier statement on the matter in April, the party claimed there “were reasons” why out of the 50 Islamic countries, 48 had declined permission for El Al to operate.

“It is because Israel is the biggest enemy of the whole Muslim community, a country that has stolen the holy lands of Muslims, a country that is committing violence against the people of Palestine and as Israeli flights are targets of terrorist organisations, it raises security concerns,” the party said.

An earlier request by the airline’s charter subsidiary Sun D’Or was denied after Israel’s Civil Aviation Authority (CAA) revoked its license ruling that it was functionally indistinguishable from El Al.

The rebranding effort was an attempt by El Al to circumvent religious backlash from ultra-orthodox Israeli groups over operating flights on the Sabbath and religious holidays, which it claimed were leaving it unable to compete with other major carriers.

Strong anti-Israel sentiment persists in the Maldives. Visiting Israeli eye surgeons from the ‘Eyes from Zion’ NGO were in November met with protests and the burning of the Israeli flag in Male’s Republic Square. The Islamic Foundation NGO contested at the time that Israeli surgeons “have become notorious for illegally harvesting organs from non-Jews around the world.”

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Amnesty International gave imprisoned activists credibility as political refugees: Zuhair

The world’s largest human rights NGO, Amnesty International, celebrated its 50th anniversary over the weekend, marking half a century since a British lawyer named Peter Benenson campaigned for the release of Portugese students sentenced to seven years imprisonment for toasting liberty.

The Nobel Peace Prize-winning organisation counts three million supporters, members and activists in 150 countries and territories all over the world, and produces 400-500 reports on human rights every year.

Amnesty adopted current Maldivian President Mohamed Nasheed as a prisoner of conscience in April 1996 after he was sentenced to two years imprisonment on charges relating to his activities as a dissident journalist.

“Amnesty International considered his detention to be politically motivated and was concerned he would not receive a fair trial,” Amnesty said at the time. “Mohamed Nasheed attended several court hearings but the court did not come to a decision. Amnesty International is very concerned that despite release, Mohamed Nasheed’s ‘sedition’ charges have not been withdrawn “

In 2008, Amnesty issued a statement welcoming Nasheed as President of the island nation, and urged him to “make human rights a central part of his presidency.”

“The legacies of human rights abuses such as politically motivated arrests, torture, and unfair trials, will mar the Maldives’ human rights record if legislative reforms are delayed,” Amnesty noted, particularly the draft penal code which remains stalled in the parliament to this day.

“The new government must now end decades-long legacies of abuse of political power with no accountability for human rights violations such as politically motivated arrests, torture, and unfair trials,” Amnesty added, observing that human rights violations appeared to have “decreased significantly” in the last two years of Maumoon Abdul Gayoom’s 30 year administration.

Nasheed’s Press Secretary Mohamed Zuhair said today that Amnesty’s campaigning on behalf of the then political activist was vital in establishing his credibility with embassies and other international organisations, such at the UN’s Refugee Agency, which subsequently issued temporary travel documents to five Maldivian activists.

Amnesty’s campaigning on Nasheed’s behalf became especially invaluable after the office of the then opposition-in-exile in Colombo was raided by the Sri Lankan police, Zuhair explained.

“There was information sent by the Maldivian government that the MDP was storing illegal firearms in Colombo seeking to transfer them to the Maldives,” he said.

“Our office and houses were raided and I was roughly handled in front of my wife and children. The Colombo CID interrogated me about reports that we’d apparently been talking to pilots about doing the job, and at last these were proven to be false.”

Following the raid, four of the five political activists expressed doubt over their continued safety in Colombo and sought asylum in the UK. Of the five, Zuhair elected to remain in Sri Lanka “because I had faith in the Sri Lankan legal system, which was later [justified].”

Nasheed was detained in 2001 days after being elected to parliament, Zuhair noted, “on charges brought against him for petty theft from the demolished home of the former president, Ibrahim Nasir. These were mementos that were being thrown out as garbage, but he was thrown in jail on the pretext. The Minister of Home Affairs later acknowledged that nothing of value had been taken, after we argued in court that a price be fixed to the items.”

Nasheed was detained “on and off” 12 times, Zuhair said, and like many prisoners at the time, fell victim to institutionalised methods of punishment.

“He was handcuffed to his shins, and placed in a pillory (a series of hinged wooden boards locking the head and limbs from movement). He was also handcuffed to a hot generator for 14 days. In one instance, the guards mixed shards of glass into his food,” Zuhair claimed.

The credibility given by Amnesty to Nasheed as political prisoner allowed the opposition to organise outside the Maldives, Zuhair recalled, and pressured the introduction of greater human rights in the country.

“We are very grateful to them,” he said.

Amnesty’s current entry on the Maldives, last updated in May 2010, acknowledges ongoing concerns about parliament’s delay in enacting the draft penal code, and concern over the use of flogging as a punishment.

“An 18-year-old woman received 100 lashes on July 5, 2009 after being accused of having sex with two men outside marriage. Local journalists reported the woman fainted after being flogged and was taken to hospital for treatment,” Amnesty wrote.

“The woman, who was pregnant at the time of sentencing, had her punishment deferred until after the birth of her child. The court ruled the woman’s pregnancy was proof of her guilt. The men involved in the case were acquitted.”

In July 2010, Amnesty chided Nasheed’s government for the extra-judicial detention of opposition People’s Alliance (PA) MP Abdulla Yameen – Gayoom’s half-brother.

“The Maldives Government’s proposed reforms do have the potential to improve human rights protection, but this does not give them the right to arbitrarily detain opponents of those reforms. Instead, the government should seek international assistance to resolve this impasse,” Amnesty said at the time.

“There are fundamental flaws in the Maldives criminal justice system, leading to unfair trials. There is no unified definition of a criminal offence in the Maldivian law, which consists of acts of parliament, Shari’a edicts, and regulations passed by the ministries.”

The Maldives has since ascended to a seat on the UN Human Rights Council. Yet human rights concerns remain in the country about the efficacy of the criminal justice system, the prevalence of human trafficking – resulting in the country being placed on the US State Department’s tier two watch list – and an ongoing “culture of torture” the government has at times acknowledged continues to pervade both the police and prisons system.

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Foreign hotel and resort workers concerned over financial changes

Expatriate resort workers have expressed confusion over new regulations restricting monthly remittances to 100 percent of workers’ salaries, which they fear may may leave them unable to take supplementary income, such as tips and service charges, out of the country.

The government has said the decision, published in mid-May in the government gazette, was intended to reduce the amount of money sent overseas by those working in the country illegally, either without a work permit or by taking jobs ‘on the side’.

Workers exceeding the limit, and organisations providing the transfer facility, would face a fine.

However, in many of the country’s resorts, service charges and ‘unofficial’ tips can amount to up to 70 percent of a worker’s total income.

“If the transfers are limited to salaries then the tips and service charges will be considered illegal money,” one foreign worker, a guest relations officer (GRO), told Minivan News. “For me that is 75 percent of my income.”

The GRO added that due to the isolation of some resort properties, workers would be unable to reach a bank every month to send their income home.

“There is one ferry a week [to an island with a bank], but not my home branch. To go to Male’ the flight costs US$200 – I can’t transfer money every month, and I can’t spend all my money in the Maldives,” she said.

A lack of information outside local media reports in Dhivehi meant that many foreign staff were in the dark over the pending changes.

“Nobody is sure what is going on. This [lack of confidence] may encourage people to take their money out of the system altogether,” she predicted.

Several foreign workers Minivan News spoke to at a hotel near Male’ also expressed confusion and frustration over what they feared could be a financial impracticality to continuing to work in the Maldives. They noted that the hotel was to begin paying all staff in rufiya, following the Maldives Monetary Authority (MMA)’s recent announcement that it would enforce transactions in the country’s legal tender.

Minivan News contacted a range of authorities dealing with monetary policy, but was unable to get a clear indication of what the regulations would mean for foreign workers.

State Minister for Finance Ahmed Assad and Minister for Economic Development Mahmoud Razee both said they were not in a position to clarify the matter and referred Minivan News to the MMA.

Assad suggested that while the Ministry published official notices in Dhivehi, employers had a duty to keep their foreign employees informed of the implications of any changes to policy.

Assistant Manager of the MMA’s Monetary Policy and Research Division, Ibrahim Ameer, told Minivan News that he understood the regulations were currently pending with the Ministry of Human Resources and that income from resort workers would be taken into consideration, however he noted claims in media reports on the regulation that only basic salaries could be remitted.

A spokesperson for the Ministry of Human Resources meanwhile referred Minivan News to Deputy Minister Hussain Ismail, who was not responding at time of press.

Head of the Tourism Employee Association of the Maldives (TEAM) and Maldivian Democratic Party (MDP) MP Ahmed Easa told Minivan News that the organisation had met with the MMA when the regulations were being drafted and that he understood workers would be able to send their full incomes overseas on presentation of their work visa to the bank.

“The idea is to stop illegal workers from remitting money,” he said. “I think it is tied to income rather than salary, as long as the proper documents are provided. It should not be a problem so long as workers have a work permit. That’s what I have been told, and I haven’t received any complaints yet.”

However, earlier reports on the regulation have suggested it would encompass not just illegal workers, but those taking on ‘unofficial’ extra work – a common practice for many of Male’s expatriate workers, some of whom are paid as little as US$70 a month for full-time construction work. In many cases, this is despite reported promises of salaries of up to US$400 by unscrupulous employment brokers, who charge poor and illiterate people in countries such as Bangladesh fees of between US$3000-4000 to come and work in the Maldives.

The dollar crisis in the Maldives has brought to the fore the remitting of salaries by expatriate workers.  In a recent report, Ameer from the MMA noted that “each expatriate worker will on average remit US$100 per month to their countries. That is US$8 million per month and US$96 million a year. This is an amount that can and should be mitigated.”

Easa told Minivan News that the Human Resources Ministry, “to be honest, has nothing to explain. The Maldives can’t afford this, and we have to have rules to stop the existing open environment.”

The Immigration Department meanwhile reported that the number of expatriates in the country would reach 100,000 by June, after increasing by 10,000 in just three months. The report came as the Ministry of Human Resources published regulation permitting the recruitment of domestic servants without a quota.

The payment of salaries to foreign workers in rufiya is also a concern raised by foreign workers, concerned at their inability to convert the local currency to dollars.

“It may be difficult at this time, but the MMA is reinforcing a law from the early 1980s,” Easa noted. “All these years the MMA has not enforced the law. Right now we have a shortage of foreign exchange, and [expatriates] might face difficultly for a couple of months. But the country doesn’t have a choice.”

TEAM’s Vice President Mauroof Zakir acknowledged receiving concerns from resort workers regarding payment in rufiya.

“We received complaints where workers wanted salary in dollars in instances where the business is earning dollars,” he said, adding that this was already the case for many executive staff who had money paid into accounts outside the Maldives.

Furthermore, Zakir noted complaints from staff who’s wages were now being paid at a rate of Rf 10.42 to the dollar – the minimum rate following the government’s float of the rufiya within a 20 percent band of a pegged Rf12.85 – despite bank rates sitting at Rf 15.42.

“They don’t know the rate at which management is getting dollars,” he said. “I think it is a big concern that the government is not doing anything to raise awareness [for expatriate workers], apart from releasing statements to local media in Dhivehi.”

During a recent interview with Finance Minister Ahmed Inaz, Minivan News questioned the enforcement of rufiya at a time when there was doubt as to whether this could be exchanged into dollars, and the impact this would have on confidence in the Maldivian economy.

“We believe the market is currently unstable because of the changes we have brought, and that these changes will take three months for the various variables to work,” Inaz acknowledged.

“There will be a lot of low confidence and instability, and that will not only be felt by the expatriates. All our imports and consumables, medicine, education – is imported. But we are confident we can get through this.”

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Cabinet decision not a green light for Nexbis project, says Immigration Controller

Cabinet’s decision last week to review the stalled Nexbis project did not necessarily mean it was going ahead, said Immigration Controller Abdulla Shahid today.

The Build, Operate and Transfer (BOT) agreement with the Malaysian-based mobile security solutions provider was to upgrade border security in the Maldives and facilitate the identification and tracking of expatriate workers without the use of potentially-forged paper documents.

However the day after the October 2010 signing of the concessionaire contract, the Anti-Corruption Commission (ACC) announced it had received “a serious complaint” regarding “technical details” of the bid, and issued an injunction pending an investigation into the agreement citing “instances and opportunities” where corruption may have occurred.

Nexbis shares immediately plunged 6.3 percent on the back of the ACC’s announcement. The company subsequently issued a statement claiming that speculation over corruption was “politically motivated” and had “wrought irreparable damage to Nexbis’ reputation and brand name.”

“Nexbis’ shareholders own and manage multi-trillion dollar assets globally and will not jeopardise their reputation for an investment return,” the company said at the time.

Shahid said today that following the Cabinet decision the Immigration Department would be “looking into the ACC’s concerns and negotiating with Nexbis.”

“Cabinet did not say the project would proceed, but have announced that it would be reviewed. The ACC’s initial position was that the project would be re-tendered with the consent of Cabinet.”

Shahid acknowledge threats of legal action from Nexbis, but observed there was “nothing we can do on this issue – it was the ACC that intervened.”

He predicted that it would be “some time” before the review was completed.

Local media has claimed that key technical components, such as facial recognition, were missing from the project.

Minivan News is currently seeking comment from Nexbis.

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