Author: JJ Robinson

Government underestimating tourism economy by more than US billion, claims economist

The Maldives has significantly underestimated the value of tourism to the local economy by over a billion dollars, according to a report by economics lecturer and Assistant Manger of the Maldives Monetary Authority (MMA)’s Monetary policy and Research Division, Ibrahim Ameer.

In the first month following the introduction of 3.5 percent Tourism Goods and Services Tax on the tourism sector, the Maldives Inland Revenue Authority (MIRA) collected US$7.2 million from 800 of the 871 registered tax payers.

“This means the whole tourism industry’s revenue (market value) would amount to approximately US$210.0 million for the month of January and approximately US$2.5 billion for the whole year,” observes Ameer.

In comparison, the government’s official figure for the total market value of all goods and services produced in the country – not just tourism – is US$1.5 billion.

In his report, Ameer recalculates the budget deficit based on updated GDP figures and concludes that the deficit sits at nine percent, “as opposed to 17 percent of GDP in 2010 as per government authorities.”

“I suspect these underestimated figures are used by the authorities to prolong the preferential treatment Maldives has and in some cases continues to receive as a [former] Least Developed Country (LDC),” Ameer surmises, suggesting that “ our country’s problems are primarily a case of the state’s inability to collect revenue through taxation rather than a budget deficit.”

“It should be agreed that as the country marches towards full democratization, with new independent statutory institutions, local and atoll councils and increased civil service salaries, the country needs to rethink it tax policy,” Ameer states.

In an agreement reached with the International Monetary Fund (IMF) last week, the Maldives has committed to:

  • Raise import duties on pork, tobacco, alcohol and plastic products by August 2011 (requires Majlis approval);
  • Introduce a general goods and services tax (GST) of 5 percent applicable to all sectors other than tourism, electricity, health and water (requires Majlis approval);
  • Raise the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013 (requires Majlis approval);
  • Pass an income tax bill in the Majlis by no later than January 2012;
  • Ensure existing bed tax of US$8 dollars a night remains until end of 2013;
  • Reduce import duties on certain products from January 2011;
  • Freeze public sector wages and allowances until end of 2012;
  • Lower capital spending by 5 percent

Comparison figures Ameer provides for corporate, income and GST/VAT tax regimes regionally and around the world, show the proposed figures for the Maldives are substantially lower.

India, for example, has a 25 percent business profit tax (BPT), individual income taxes of 0-30 percent, and a GST of up to 12.5 percent. Pakistan has a 35 percent BPT, 7.5-35 percent income tax and a GST of 17 percent. Barbados, another tropical island tourism destination, collects a BPT of 25 percent, income tax of 25-25 percent and a GST of 15 percent.

In his conclusion, Ameer argues against substantial cuts of the Rf12 billion state budget, noting the impossibility of reducing that to match the government’s present RF7 billion in revenue, and presses for the careful introduction of taxation.

“We could save some expenditure through cutting waste, prioritising projects and eliminating corruption. On the other hand, we must all agree that in certain areas wage and salaries given are very low compared to many countries,” he suggests.

As a result, “it is difficult to retain skilled and highly educated people in the country. This is why we see so many bright Maldivians leaving the country to work abroad. In the education sector, where the future of the country is molded and where the bright and the best are needed to teach future generations, the remuneration is pathetically low. The average wage for leading teacher with a Master’s degree is Rf 8354 (US$540).”

“The academic and education sector should be highly competitive and more rewarding if we are to build a better future and save ourselves from the sort of ‘brain-drain’ that we cannot afford. The situation is more or less the same with the healthcare sector of this country, with many of the brightest doctors and nurses opting for work abroad in countries as diverse as New Zealand and Canada,” Ameer observes.

He notes that the disproportionately high rents in Male’ swallowed 70-80 percent of the income of many residents in the city, “and as a result, disposable income is lower than it should be to encourage a more competitive market place and economy.”

“Because only Male’ is equipped with all the necessary facilities, like education and health care, more than one third of the population is living here. This creates irreparable social and economic damage,” Ameer claims.

Much of the visible development in Male’ he claims is the a result of a “coffee-shop bubble, a smokescreen that is bound to burst dragging the economy into depression.”

“To achieve sustainable development we need to see past supermarkets, boutiques and coffee shops in every corner,” he suggests.

“The wealthy need to realize that it is more lucrative to have businesses that decline, over our dependence on imports. The present business model increases imports and puts more pressure on the foreign exchange. It only widens the disparity between the rich and the poor when there is a negative impact on the economy.”

Read the full report

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“A demoralised opposition, even divided, is not making things easy for the government”: Daily Mirror

A legislative deadlock involving the Executive and Parliament on the one hand, and the Executive and the Judiciary on the other, both leading to a serious and a series of constitutional crisis kept Maldivian politics and politicians on their toes for most of 2010, writes Sathiya Moorthy for Sri Lanka’s Daily Mirror.

“Now in the third year of its five-year term, the government of President Mohammed Nasheed ‘Anni’ has tied itself down in a fiscal situation through an IMF-driven ‘managed float’ of rufiyaa, the local currency. The government says that the consequent steep increase in prices was unavoidable but would stabilise within three months.

“A demoralised opposition, even when remaining divided, is not making things easy for the government. Their protest rallies drew crowds for a few days in a row with the police having to disperse them forcibly. Though the government blamed them on the opposition, particularly the divided Dhivehii Rayyithunghe Party (DRP) founded by former President Maumoon Gayoom, sections of the local media said apolitical youth were seen in good numbers.”

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IMF approves three year programme as Maldives commits to new tax regime

The International Monetary Fund (IMF) has given preliminary approval for a three year economic programme in the Maldives, after the government agreed to “a package of policy reforms that will help stabilise and strengthen the Maldives’ economy.”

The IMF has spent two weeks in the Maldives meeting with President Mohamed Nasheed, Minister of Finance and Treasury Ahmed Inaz, Governor of the Maldives Monetary Authority Fazeel Najeeb, senior government officials, donors and the Majlis.

“The Maldives’ economy is growing robustly on the back of strong tourist arrivals, but it continues to suffer from large fiscal and external imbalances,” the IMF observed in a statement.

“The Maldives has recently faced challenges with respect to inflation, but there is no indication that inflationary momentum has risen. The introduction of the exchange rate band was a welcome step, but it needs support from a tightening of fiscal and monetary policies. The mission and the authorities agreed that such a tightening of policies would be important to promote fiscal and external sustainability, continued growth, and low inflation.”

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.

“Monetary policy would be tightened to complement fiscal adjustment, counter inflation, improve confidence in the rufiya, and support international reserves. Gradual accumulation of international reserves, along with the fiscal space created through debt reduction, would reduce Maldives’s vulnerability to external shocks. Financial sector reforms will support the soundness of the banking system and increase the depth of the foreign exchange and financial markets.”

The IMF observed that if approved by the IMF’s Executive Board, the Maldives’ subscription to the program would likely encourage other key donors to contribute further financial support.

Speaking at a joint press conference held by the Finance Ministry and the Maldives Monetary Authority (MMA), Finance Minister Ahmed Inaz acknowledged that previous concessions made by the government with the IMF – such as reducing the public sector wage bill, “didn’t materialise because some of them were not politically possible in the country at the time.”

“But given the current situation we are hopefully the proposed medium-term measures we are proposing will be possible when [parliament] sessions resume.”

According to Inaz, under the new IMF program the Maldives has committed to:

  • Raise import duties on pork, tobacco, alcohol and plastic products by August 2011 (requires Majlis approval);
  • Introduce a general goods and services tax (GST) of 5 percent applicable to all sectors other than tourism, electricity, health and water (requires Majlis approval);
  • Raise the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013 (requires Majlis approval);
  • Pass an income tax bill in the Majlis by no later than January 2012;
  • Ensure existing bed tax of US$8 dollars a night remains until end of 2013;
  • Reduce import duties on certain products from January 2011;
  • Freeze public sector wages and allowances until end of 2012;
  • Lower capital spending by 5 percent

“This is not about how much we get from IMF or donor agencies, this is something we been advocating, even if we have not been heard,” said Inaz. “We have always been saying that the deficit should be balanced with additional revenue measures.”

Cutting the deficit by sacking state employees – current 75 percent of the state budget – was not possible at the moment, he said, “although we are trying our best with redundancy payments.”

“Hopefully 1350 [voluntary redundancies will bring us Rf101 million in savings next year, but that not enough. State revenue has to increase with the new constitution. We hope the Majlis will approve these bills, and we hope much of the burden of the deficit will be released in 2012.”

Governor of the MMA Fazeel Najeeb acknowledged that “there will be some eyebrows raised and some reservations on the measures – this is inevitable in any country changing its taxation regime.”

“There are instabilities and I hope these will be short term. But I think what we are doing is in the interest of the economy and will bring it out of the mess it is in. I think it is necessary that we act together now,” Najeeb said.

The IMF package, he noted, represented “a joint commitment by the Ministry of Finance and the central bank: a state affair in the interests of the economy and the country.”

“Everybody in the country realises and recognises that there needs to be a change in the status quo. The status quo is a fiscal stance that is unmanageable.”

Asked whether he felt the new taxes were likely to be passed by parliament, “I think when it comes down to the details of what and how the legislation takes shape, that should be left to Majlis. What I can say is that status quo needs to change, and I don’t think this can be only reduction [in expenditure]. There needs to be a considerable amount of income increase. A combination of revenue as well as expenditure.”

Until recently the government was publicly calling for Najeeb’s dismissal by the Majlis due to a perceived lack of cooperation on tackling the currency crisis facing the country.

Asked if the IMF deal represented a new era of cooperation, Najeeb said the MMA “is always willing to cooperate with the government. There are issues on which we professionally disagree, but that shouldn’t be interpreted as lack of cooperation.

“We will continue to cooperate as we have done before, and whenever we are called upon to participate in press conferences such as this one, we will do it. We will leave it at that.”

State Minster for Finance Ahmed Assad said that despite media efforts “to sensationalise” the relationship between the MMA and the government, “we are not going to fight in public. Any fight will be within the walls of the MMA, or the Ministry of Finance. Because these are technical policy issues on which we don’t agree.”

“The MMA is not elected by the people and is not responsible [for the economy] – it is the President who heads the government and therefore the responsibility falls on the government to point the economy in the right path,” Assad said.

“Therefore whatever we do, the MMA is there to support us. If we’re wrong they’re there to criticise us. If we choose the right path their sole goal is to assist us. There are times that we disagree but that is purely professional. We should not have a hostile attitude towards this.”

Assad observed that even with the new taxes proposed by the government, the Maldives was still had the most generous tax system in the region – even compared with other island nations, and neighbouring countries such as India and Sri Lanka.

“We can’t say taxes are exorbitantly high and will bring total destruction to the industry,” he suggested.

The President’s Press Secretary Mohamed Zuhair meanwhile said the agreement with the IMF represented “a vote of confidence” in the government’s handling of the economy.

“We inherited huge amounts of debt and millions of dollars in unpaid bills from the former administration but have nevertheless managed to cut the budget deficit in half, bring down inflation and raise government income to put our economy on a steady path to prosperity,” Zuhair said.

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Desire for democracy fundamentally a need for justice: President Nasheed

Germany will provide Rf 6 million (US$390,000) over the next two years for the expansion of the UNDP’s Access to Justice project in the Maldives.

Speaking at a signing ceremony held in the President’s Office today, attended by most cabinet members, German Ambassador to Sri Lanka and the Maldives Jens Plötner said it was Germany’s “firm conviction that without a functioning justice system there can be no democracy.”

“In the recent history of the Maldives a few brave women and men fought for democracy, citizens of the country then conquered democracy through the ballot box, but to keep democracy it takes justice – without that people will very quickly lose faith in democracy and the system,” Plötner said.

“We ourselves as a country with a tragic history, after two world wars, lost faith in ourselves. We didn’t know what to be proud of any more given what had been committed in German name.

“What finally emerged was that we were proud of the justice system we have today in Germany. We followed constitutional patriotism, because we are proud of the way law and right is delivered in Germany. This is the essence of the hard lessons we have learned through two world wars started in our name.”

Himself a former student of law, Plötner observed that the concept itself was “something very abstract and philosophical.”

“But it is also about men and women sitting there in impressive robes in big buildings, and breaking high principles down to day-to day-sentences for somebody smashing up a car – or something more awful.

“To do that you need good training, but that’s not enough. The judge and all those who work with him or her are such an essential element of democracy that they have to eat drink and breathe democracy every minute of the day. If they do that, democracy is stable.”

President Mohamed Nasheed said German support for judicial reform in the Maldives had its beginnings in a conversation with German Chancellor Angela Merkel last year.

“She was wondering what were our main challenges as we embarked on a new era of democratic governance,” Nasheed said.

“People’s desire for democracy in the Maldives was fundamentally because of a need for justice – things were often done unfairly and very harshly. That was a situation a fair number of us wanted to overcome. To that end we felt the first building block should be peaceful political activity. It took us a fair amount of time to do that, but we achieved it.”

Looking at the assembled ministers and political appointees, Nasheed said “a number of people in this room did not believe that political pluralism was appropriate for this society. We all had an idea of a singular form of government through which we might dispense justice as well as governance. But a few of us felt it was difficult to reinvent the wheel. We kept asking for political pluralism and parties, and finally we were successful.”

During the drafting of the new constitution, Nasheed acknowledged that “very little thought” was given to how the new judiciary was arranged, despite the urging of many lawyers in the system.

“When the powers were separated and the Maldivan Democratic Party (MDP) became the executive we came into a situation where the previous regime had a majority in the parliament.

“But in many minds the situation with the judiciary was far more worrying. Nothing had changed – we had exactly the same people, the same judges, the same manner of thinking and of dispensing justice.”

The constitution did not ask for an overhaul of the justice system, Nasheed noted, but it did ask for the formulation of a new Supreme Court bench.

“We ran into a number of difficulties. Firstly, the interim bench decided they were a permanent bench. That created all sorts of issues, finally to the extent that the executive had to step in and say ‘No, we have to have a new bench, and we are not going to open the Supreme Court without it.’”

It was, Nasheed admitted, “all very risky, challenging and difficult. But finally we came up with a bench – and with the support of every MP.”

However the Judicial Services Commission (JSC), tasked with regulated the judiciary, was a difficult task to reform “as the JSC as a whole was very imbalanced politically.”

“Again we are having to step in and we will reform the JSC, although not outside the framework of the constitution.”

Nasheed observed that the government’s new financial changes – such as the introduction of a new system of taxation, were “perhaps far more radical that introduction of political pluralism in the semi-liberal society that we had. Again there is the anger, antagonism, frustrations and uncertainties.”

The President said he felt the country was moving in the right direction, but expressed concern that the Maldives had slipped in the anti-corruption index.

“I like to think this is not because were more corrupt than we used to be, but rather that we have come to understand how corrupt we are through our new found freedom of expression – we are able to point fingers more readily, and the information available on corruption is far higher than it has ever been before.”

He noted that the government had 27 Auditor General reports detailing embezzlement and misuse of state funds “that we have done nothing with – partly because we need to strengthen our judiciary before we can embark on this.”

“We don’t want to go into a witch-hunt, or use the strong arm of the law, we want to use rationale and reason. We want to be able to prosecute, and dispense justice.”

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New7Wonders “infringing sovereign rights of Maldives” by keeping country in competition, claims MMPRC

The Maldives Marketing and PR Corporation (MMPRC) has issued a statement reaffirming the Maldivian government’s decision to withdraw from the New7Wonders competition.

The statement follows claims by the Geneva-based foundation’s head of communications, Eamonn Fitzgerald, that the Maldives was still in the competition “because the authority to withdraw a participant from the campaign is a decision for New7Wonders alone, not for any government agency.”

The government withdrew from the competition on May 18, after claiming that New7Wonders’ commercial entity, New Open World Corporation (NOWC), had solicited hundreds of thousands of dollars for the country “to compete meaningfully”.

“We no longer feel that continued participation is in the economic interests of the Maldives,” said State Minister for Tourism Thoyyib Mohamed, at the time.

The MMPRC today said that a second statement was necessary “to halt any further misrepresentation by the NOWC regarding the involvement of the Maldives in their competition.”

“After the many attempts by the MMPRC to negotiate and explain our financial situation requesting a reduction of the price to meaningfully compete and stay in the competition, we  are again perplexed to learn that the NOWC are considering taking a smaller sum of money from a third party in order to keep the Maldives in the competition,” the MMPRC stated.

Secretary General Maleeh Jamal of the Maldives Association of Travel and Tourism Operators (MATATO) said yesterday that the association had been in contact with New7Wonders and was considering working on the event in the government’s stead, claiming that the competition promised “enormous return on investment”, and that “US$500,000 for such an award would be quickly recovered.”

The MMPRC today stated that “the democratically elected Government of the Maldives is the only legitimate authority to act in the name of the Maldives and its people”, as “NOWC originally sought acceptance and involvement of the Maldives in the competition with a government signature and payment.

“The Cabinet (not the MMPRC) has made the final decision to withdraw from the competition due to their findings. We feel that the continued participation of the Maldives in the NOWC competition is a matter entirely up to the democratically elected government of the country. Any infringement of this sovereign right, including continued disregard for our position on the matter, will leave us with no alternative but to seek legal recourse.”

In a recent opinion column for Minivan News, Fitzgerald argued that the MMPRC’s “unfounded complaints regarding the campaign sponsorship options have to be seen in light [of the] extraordinarily positive numbers.”

Fitzgerald referred to two “independent studies” he claimed estimated the economic benefit to each of the seven wonders as “US$1.012 billion”, and the total benefit to previous winners as “US$5 billion”.

The MMPRC stated that it “does not agree with the business arguments as quoted in the article for Minivannews.com. To imply that you can guarantee a positive response of an advertising campaign or PR stunt that is yet to happen is wholly unethical.

“The NOWC-commissioned reports and estimates cannot guarantee and secure a positive outcome for the Maldives. There are so many variable factors as to why marketing activities are successes or failures ‐ but no two scenarios are identical and so generalisations and assumptions should not be made when spending huge sums of the country’s money.”

The MMPRC highlighted several articles in the government’s contract with NOWC, noting that “the obligation to pay is determined and decided by [the Government of the Maldives] abilities and resources and that NOWC will respect this.”

“In light of our recent economic riots and financial crisis which was broadcast to the world, we feel that NOWC have totally disregarded our situation.”

The MMPRC further claimed that “despite our emails and answer phone messages to Fitzgerald, New7Wonders have refused to respond to our communications. We have also noted that their office premises appear to be empty and their colleagues with whom we previously had regular communications are no longer available.”

Fitzgerald said New7Wonders was reviewing the MMPRC’s statement, and confirmed that “all MMPRC messages to New7Wonders have been duly received and filed by us. As New7Wonders accepted the resignation of the MMPRC on May 17, this agency is no longer New7Wonders’s counterpart in the Maldives, so we have no reason to respond to it.”

He added that New7Wonders would issue a statement regarding the continued participation of the Maldives in the campaign on Thursday May 26.

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MATATO debating whether to continue New7Wonders campaign after cabinet’s withdrawal

The Maldives Association of Travel Agents and Tour Operators (MATATO) is considering offering to support New7Wonders to promote the Maldives in the competition, following cabinet’s decision to withdraw the country’s entry.

Announcing the decision last Wednesday May 18, State Minister for Tourism Thoyyib Mohamed said the Maldives was withdrawing from the competition “because of the unexpected demands for large sums of money from the New7Wonders organisers. We no longer feel that continued participation is in the economic interests of the Maldives.”

Sponsorship packages and funding of New7Wonders’ ‘World Tour’ event would have cost the Maldives upwards of US$500,000, tourism authorities estimated, not including the millions of dollars in licensing arrangements solicited from local airlines and telecom providers.

In an opinion column for Minivan News this week, New7Wonders’ Head of Communication Eamonn Fitzgerald emphasised that Maldives was still in the competition, “because the authority to withdraw a participant from the campaign is a decision for New7Wonders alone, not for any government agency.”

Secretary General of MATATO, Maleeh Jamal, said the association had been in contact with New7Wonders and was considering working on the event in the government’s stead.

The studies offered by New7Wonders promised an “enormous return on investment”, Jamal suggested.

“I think US$500,000 for such an award would be quickly recovered. Although the money was a concern, we had a fair chance of winning,” he said. “A lot of competing destinations, such as Australia and South Africa, are taking this competition very seriously.”

Sri Lanka had recently spent millions of dollars bidding to host the Commonwealth Games, he noted, as well as hosting a film festival.

“I think a lot of these awards are, as a matter of fact, marketing tools. Not many people are going to go into detail as to whether the competition is democratic. What is important is how it can benefit the destination.”

Asked whether he predicted that MATATO would be able to negotiate a discount from New7Wonders following the government’s withdrawal, Jamal said the association had not yet discussed financial matters with the organisation.

“Some of our members have indicated that they would be willing to contribute financially and offer other support. The executive will meet and discuss it this week and decide whether to continue or discontinue,” he said.

Meanwhile Secretary General of the Maldives Association of Tourism Industry (MATI), Mohamed ‘Sim’ Ibrahim, said he had “no idea about New7Wonders, beyond that it has been going on for some time.”

“It sounds like a gimmick. I understood there was a lot of money involved,” he said.

“MATI will not support it financially. Like any other business people will have to judge if its worth it. We were never consulted on the matter and were never party to this – we like to keep away from things we don’t know about.“

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MDP one vote behind combined opposition, as MP Raheem joins party

Former opposition Dhivehi Rayyithunge Party (DRP) MP Abdulla Abdu Raheem has signed with the ruling Maldivian Democratic Party (MDP) after resigning from his previous party earlier this week.

Raheem marked his signing at an MDP rally yesterday with a speech in which he called for the government to resolve the country’s currency crisis by “getting rid of Maldives Monetary Authority (MMA) Governor, Fazeel Najeeb.”

”Instead of giving high priority to his responsibilities in that position, he gives priority to other things in life,” Raheem claimed.

Raheem’s joining the MDP follows in the footsteps of the former DRP Deputy Leader Ali Waheed, DRP Sports Wing head Hassan Shujau and deputy head Assad ‘Adubarey’ Ali, and leaves the MDP one vote behind the allied opposition parties.

With Raheem the MDP’s parliamentary group controls 35 votes, including MP ‘Redwave’ Saleem who has signed a coalition agreement to vote with the party.

The alliance of opposition parties, including the DRP, Jumhoree Party (JP), Dhivehi Qaumee Party (DQP) and the People’s Alliance (PA) control 36 votes, although given the present hostility between Gayoom’s faction of the DRP and that of Leader Ahmed Thasmeen Ali, this tally is less than assured.

Neither the MDP or the opposition parties control a brute voting majority of 39 in the 77 member Majlis, a situation with the potential to give the balance of power to the six independents: Ismail Abdul Hameed, Ahmed ‘Sun’ Shiyam Mohamed, Ahmed Amir, Ibrahim Riza and Mohamed Zubair.

Independent MP Mohamed Nasheed predicted that closely-fought bills – such as the government’s proposed income tax on those earning over Rf 30,000 – could potentially be swung by the independent votes.

“Since the parliament is going to be nearly equally divided between government and opposition, come June my inclination is that in matters where a clear parliamentary majority of 39 votes is required, responsible decision making from the independents will be crucial,” Nasheed told Minivan News.

MDP MP Eva Abdulla said the party was starting the next session of parliament “with an entire legislative package to implement the government’s economic policy, including a number of amendments as well as new bills, mainly taxation. “

While a number of MPs had already expressed opposition to the income tax bill, “these bills have been widely discussed with stakeholders and we feel the opposition is coming by and large from those still adamant on defending their own vested financial interests,” she said. “This is what they have done in parliament for the last two years.”

“We are confident that with the new majority not only can we pursue the legislative requirements of the government’s economic policy more smoothly, but also reverse some of the laws they had previously disfigured,” she said.

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“Courageous and exemplary work”: President dismisses JSC Velezinee

President Mohamed Nasheed has removed the President’s member of the Judicial Service Commission (JSC), Aishath Velezinee, from her post.

“There was no reason given. All I can say is that the President is extremely grateful for the courageous and exemplary work Velezinee has done,” said Nasheed’s Press Secretary Mohamed Zuhair, adding that a new member would soon be appointed.

Minivan News understands that Velezinee’s departure from the JSC may be part of a back room deal not unrelated to impending judicial reform, opposition MPs crossing the floor and the arrest of former government officials on allegations of torture.

Velezinee herself was not commenting on the decision.

One woman army

Velezinee became an outspoken whistle-blower on the JSC last year after claiming that her many letters of concern to parliament – which provides oversight on the independent commissions – were being ignored.

In early 2010, she set about publicly exposing the independent institution she claimed was operating “like a secret society” and serving as a “shield” for a judiciary that was “independent in name only”, and had tabled only several of the hundreds of complaints submitted against judges.

Using her access to court documents, Velezinee revealed that almost a quarter of the sitting judges had criminal records – ranging from theft to terrorism – and that an even greater number had not even completed grade 7 education. The only qualification of many was a ‘Diploma in Judging’ presenting to them by the former Ministry of Justice, Velezinee contested.

For the past 30 years judges effectively worked as the employees of those “hand-picked” by the former government, Velezinee explained – to the extent that failures to extend a particular ruling as required by the Ministry of Justice resulted in a black mark on the judge’s file.

“The only qualification it appears was a willingness to submit to the will of the government at the time – to follow orders,” Velezinee told Minivan News is a previous interview.

“Not everyone has the mindset to follow orders and serve in that kind of capacity. I believe it has excluded people with independent thinking, or the necessary legal knowledge – such people would take it as an insult for someone to order them how to decide a case.”

Velezinee’s concerns – met with noticeable silence from both the JSC and the then-opposition majority parliament – sparked her ‘Article 285’ campaign.

Article 285 was the Constitutional stipulation that the JSC determine before the conclusion of the interim period – August 7, 2010 – whether or not the judges on the bench possessed the characteristics specified by article 149: “the educational qualifications, experience and recognized competence necessary to discharge the duties and responsibilities of a judge, [and] high moral character”.

At the eleventh hour prior to the conclusion of the interim period, the JSC reappointed the vast majority of sitting judges for life in a surrepticious ceremony conducted behind doors that would have remained closed had Velezinee not rushed the podium.

“The JSC decided – I believe with the support of parliament – that the same bench will remain for the next 40 years, retitled as an ‘independent judiciary’,” Velezinee said following the reappointments.

She further alleged that senior members of the parliamentary opposition were present in the JSC office over the weekend prior to the interim period deadline, personally assisting the JSC secretariat with photocopying the letters of appointment.

“I’m telling you: this is big. What we are seeing is all interconnected – it is one big plot to try – in any way possible – to return power to the corrupt,” she told Minivan News in July 2010, noting that her concerns had led to her being labelled “the Article 285 madwoman” by not only the opposition.

Less than a year later, many of her allegations were independently corroborated by a report produced by the International Commission of Jurists (ICJ), which attended JSC sessions and criticised its independence.

The JSC, the report stated, “was unable to carry out its functions in a sufficiently transparent, timely, and impartial manner. To date, JSC decision-making has been perceived as being inappropriately influenced by a polarised political environment. Also troubling is that members of the judiciary have been subject to threats and intimidation as well as improper inducements by both governing and opposition party members.”

The JSC refused to table the ICJ’s report, and disputed having ever received it.

Towards the end of 2010 Velezinee upped her campaign to incorporate parliament, naming both opposition and independent MPs as being involved in what she described as “a silent coup” to deprive the country of an independent judiciary for the sake of providing continued judicial impunity to senior power brokers of the former administration.

The reason for that failure, she suggested, was a fear among leaders of the former administration “who are continuing with criminal activities they have allegedly been carrying out for a long, long time.”

“There is widespread public perception that certain members of parliament are behind all the serious organised crime going on in this country. This includes serious drug issues, gang violence, stabbings,” she alleged, in a previous interview with Minivan News.

“These are allegations only because they have never come up before a court of law in all this time.”

“It is a much discussed issue, but it has never come up in the courts. I can see now that perhaps it may be true – otherwise why prevent the formation of an independent judiciary? I don’t think they would have confidence that they would get away free,” Velezinee said, observing that former political figures such as attorney generals were now representing these MPs in court as their lawyers, “and, by and large, they win every case.”

“This is not such a far-fetched radical thought coming from me any more because of the things we have seen over the last year to do with politicians and judicial action. The courts are a playground for politicians and are not trusted by the general public. Parliament has failed, and there is no other institutional mechanism in this constitution for the JSC to be held to account.”

In January this year Velezinee was stabbed three times in broad daylight while walking down Male’s main tourist street, on the same day that the High Court judges were due to be appointed.

“My first fear was that I would easily I bleed to death,” she told Minivan News, after she was discharged from hospital. “But I took a deep breath and realised I was alive. As soon as I realised this, the only thing I wanted to do was go and get the blood stopped and get to the Commission because this was the day of the High Court appointments, and I know they wanted me out of the way. I didn’t realise how serious the wounds were, I didn’t see them until two days later when I went for a dressing change.”

Many international organisations, including Transparency International and the ICJ, expressed “grave concern that the attack may be politically motivated.”

“There are honourable men in this country who are owned by others, and they may be put in a position where they believe they have to take my life. I knew there was a chance that I was risking murder, and I wasn’t wrong,” Velezinee told Minivan News, following her recovery. “It was only because of God’s grace that I survived.”

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Shifting loyalties: parliament lines redrawn as members cross floor

Dhivehi Rayyithunge Party (DRP) MP Abdulla Abdu Raheem has resigned from the party, following similar pattern to MP Ali Waheed who defected to the ruling Maldivian Democratic Party (MDP) after resigning from the party over the weekend.

As with Waheed, Raheem did not immediately state that he would be joining the MDP, however journalists reported witnessing Raheem leaving President Mohamed Nasheed’s residence of Muleeage yesterday afternoon.

The Maafannu-West MP told local media he had left the DRP on the urging of his constituents, and because “a few tycoons [in parliament] are opposing taxation”. Ali Waheed’s home constitutency of Thoddu also backed the MDP in the recent council election.

Raheem narrow defeated the Councillor for Maafanu West, Mohamed Falah, in the 2009 parliamentary election by a mere eight votes, after Maldives National Shipping Ltd Chairman and MDP member Mohamed ‘Sanco’ Shareef, who lost in the primary, competed as an independent and split the MDP vote.

Should Raheem follow in Waheed’s footsteps and join the ruling party, the MDP will establish itself as the largest single voting bloc in parliament with 34 members (35 including coalition signatory ‘Redwave’ Saleem).

This will exceed the opposition DRP-PA coalition’s 32 members (25 DRP, 7 PA).

However with the cooperation of allied parties including Gasim Ibrahim’s Jumhoree Party (3 MPs) and Dr Hassan Saeed’s Dhivehi Qaumee Party (1 MP), the opposition still control a narrow majority with 36 votes.

For an outright voting majority, either party needs to control 39 votes – giving great sway to the seven independents; six if Raheem join the MDP. Of Independent MPs Mohamed Nasheed, Ahmed ‘Sun’ Shiyam Mohamed, Ismail Mohamed Hameed, Ahmed Amir, Ibrahim Riza and Mohamed Zubair, Riza and Zubair have a voting history backing the DRP and MDP respectively, further increasing the sway of the other four.

Speaking at an MDP rally held on the weekend in honour of Waheed’s signing, President Mohamed Nasheed confidently proclaimed a parliamentary majority for the party and instructed the MPs to use it responsibly. However to obtain that majority, two more MPs would need to defect.

Local media has speculated that other MPs in the opposition may be considering crossing the floor, focusing on Yousuf Naeem, Mohamed Ramiz who has publicly denied the rumours, and Ali Mohamed who’s absence from the chamber notably and narrowly secured parliamentary endorsement of Home Minister Hassan Afeef.

Parliament sessions resume next month.

Shifting loyalties

  • Opposition support:
    Dhivehi Rayyithunge Party (DRP): 25
    People’s Alliance (PA): 7

    DRP-PA Coalition: 32

    Jumhoree Party (JP): 3
    Dhivehi Quamee Party (DQP): 1

    Total: 36

  • Government support:
    Maldivian Democratic Party (MDP): 33
    MP ‘Redwave’ Saleem (coalition agreement): 1

    Total: 34

  • Independents:
    Mohamed Nasheed
    Ahmed ‘Sun’ Shiyam Mohamed
    Ismail Mohamed Hameed,
    Ahmed Amir
    Ibrahim Riza (DRP leaning)
    Mohamed Zubair (MDP leaning)
    Abdulla Abdu Raheem (ex-DRP)
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