Author: JJ Robinson

US Assistant Secretary of State urges opposition and government to cooperate on solving economic challenges

The US Assistant Secretary of State covering South Asia, Robert Blake, visited the Maldives yesterday during a tour of the region, and urged the government and the opposition to cooperate in finding a solution to the country’s economic challenges.

“As in many young democracies, the transition to a functioning system of checks and balances between different branches of government is very challenging,” Blake said.

Blake said that he had discussed with President Mohamed Nasheed the steps the Maldives was taking to try and stabilise the economy and reduce the budget deficit, and urged the opposition to involve itself in finding a solution.

“It is very important for them to come together and for [the opposition] to come up with an alternative – if they have an alternative – and negotiate an agreed plan. It is most important to continue momentum, reduce the deficit and put the economy on a firmer financial footing, while at the same time continuing the process of strengthening democracy.

“I encourage the government and opposition to work to together to try and tackle the prblems the Maldives is facing. Even in an older and more established democracy such as our own, politicians can find it difficult to work together across party lines in a spirit of fairness and bipartisanship, for the sake of governing well. But when they do, everybody benefits.”

Blake said he was encouraged during his meeting with the President that Nasheed had “reaffirmed his commitment to freedom of assembly”, and noted that despite the country’s political “growing pains”, “the Maldives’ international influence far exceeds its size, particularly in multilateral organisations such as the UN and its human rights council.”

He thanked Nasheed for the Maldives’ votes concerning Syria, Libya and Iran, and noted that he had “become one of he world’s leading climate change advocates, with a flair for drawing attention to the critical impact climate change is having on island nations.”

US-Maldives cooperation extended to visits by figures from the US legislature, student exchange programs, visiting American Muslim speakers, and military collaboration on security and training, he noted. Blake suggested further cooperation with the new Maldives National University, with faculty visiting from US universities.

Blake also spoke briefly on the successful US assassination of Osama Bin Laden in Pakistan, explaining the State Department’s decision to issue a worldwide caution for American citizens.

“I think difficult to predict [the reaction],” he said. “It is reasonable to assume that Al-Qaeda will try to retaliate for the loss of its leader, and we wanted to make sure people were aware of this development, especially in areas where there is already anti-American sentiment.”

Blake left for Sri Lanka last night, visiting USAID-supported programs and meeting with local leaders in Kilinochchi and Mullaitivu.

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Economy’s pigeons come home to roost

The stated cause of the opposition-led protests in Male’ – the party claims the rallies are “youth led”, however opposition politicians are a leading fixture at the demonstrations – is the increase in the cost of living due to the government’s recent decision to implement a managed float of the rufiya, within a 20 percent band of the pegged rate of Rf 12.85.

An ongoing dollar shortage, reluctance of banks to exchange local currency, and a flourishing blackmarket that reached Rf 14.2-14.8 to the dollar, culminated in mid-April with the government finally acknowledging that the rufiya was overvalued – after a short-lived attempt to crack down on ‘illegal’ exchanges.

High demand immediately led to most banks and companies dealing in dollar commodities – such as airline ticketing agents – to immediately raise their rate of exchange to the maximum permitted rate Rf15.42.

With the Maldives almost totally reliant on outside imports, including fuel and basic staples such as rice, the government’s decision has effectively led to a 20 percent increase in the cost of living for most ordinary Maldivians.

Moreover the Maldivian economy is dependent on oil to such an extent that is spends a quarter of its GDP on it – US$245 million – the vast majority on marine diesel, making imported energy one of the single largest drains on the country’s economy.

Customs documents obtained by Minivan News in January showed that Maldives was spending almost US$100,000 more per day more on fossil fuels than it was in the summer of 2010. At that time, oil was US$86 a barrel. By the same calculations but with today’s oil price, the Maldives is paying an additional US$450,000 per day for oil compared to summer prices last year.

Amidst rising commodity costs and external pressures, the country’s insistence on maintaining a fixed rate while increasing government spending had late last year begun to affect shop shelves and raise the ire of the International Monetary Fund (IMF), which delayed the third tranche of its funding due to “significant policy slippages” concerning the government’s failure to curtail spending. That amount in itself was not substantial, but the IMF is used as a financial bell-weather by most major donors.

The government’s unwillingness to face the political difficulties inherent in its budget deficit of 21 percent – the legacy of a 400 percent increase in civil service expenditure since 2002 and a hot printing press – was compounded by the addition of an extra layer of local government added to the state payroll, and the country’s graduation from the UN’s ‘Least Developed Country’ status to ‘Middle Income’, and the loss of concessional credit and certain trade concessions.

In an article for Minivan News, Director of Structured Finance at the Royal Bank of Scotland Ali Imraan observed that ‘growth’ in the domestic economy had been driven by the public sector and “paid for by printing Maldivian rufiya and clever manoeuvres with T-Bills, which the government has used since 2009 to be able conveniently sidestep the charge of printing money. In simple terms: successive governments printed/created money to drive domestic economic growth.”

Imraan pressed for the Maldives to invest in private sector revenue growth “rather than building airports on every island”, and implement a progressive taxation system targeting high earners in the interest of income equality. He also urged the Majlis to uphold the constitutional stipulation whereby MPs – such as those with business interest in the tourism sector – removed themselves from voting on issue in which they had a vested interest, and further suggested that the government resolve the matter of stalled tourism developments “awarded to parties with no money or track record.”

“Moratoriums on lease payments or debt repayments may look innocuous enough, but they rob the country of vital growth opportunities and hence ultimately rob the people. We should not stand for it,” he said.

Imraan’s latter suggestion proved somewhat prescient when the Tourism Ministry renewed the lease for Hudhufushi in Lhaviyani Atoll, despite the resort island’s owner owing more than US$85 million in unpaid rent – most of it fines for non-payment.

The government’s decision to implement a managed float of the currency came as a least one local sales agent for international airlines operating in and out of the Maldives closed its doors to customers, blaming an inability to pay the airlines because of a lack of US dollars circulating within the economy.

Parallel economy

The Maldives’ profitable tourism industry is considered to be indirectly responsible for 70 percent of the country’s GDP, and certainly the vast majority of its foreign currency earnings.

However historically little of the industry’s financial success has reflected on the Maldives’ domestic economy, with the inflow of money limited to the flat rate bed tax, import duties and worker salaries – most of that in rufiya.

With the introduction this year of a 3.5 percent tourism goods and services tax, a business profit tax and a revision of the rents paid for resort islands, the government now has a number of economic levers it can pull to increase revenue in the future.

However it has struggled to explain that to people now paying 20 percent extra for basic commodities – an affront to the MDP’s pledge to reduce the cost of living – and seems have been caught unawares by this week’s populist protests.

Both factions of the opposition have meanwhile seized the political opportunity to take the focus off the party’s internal troubles, but have offered few alternatives beyond demanding the government “reduce commodity prices”.

“I believe a lot of people are very unhappy with rising prices. People are asking the government to bring down the prices,” opposition Dhivehi Rayyithunge Party spokesman Ibrahim ‘Mavota’ Shareef told Minivan News.

“It has been a sudden and tremendous jump and people were not prepared for it. This feeling is shared across party lines.”

Shareef accused the MDP of financial mismanagement and recklessly increasing spending, without investing “in productive resources that ensure future revenue for the country, and reducing expenditure in areas that do not affect the people – such as foreign missions.”

“They need not reduce the civil service, because these are the lowest paid government employees and reducing their numbers would have not tangible effect. But the top players in government – the political positions – and positions in the paper companies created by the government are many areas [that can be reduced],” Shareef claimed.

“Before the tsunami the country’s finances were very well managed, and even after the tsunami, given the circumstances, they were well managed. Tourism infrastructure was damaged, islands needed reconstruction and in some cases resettlement. We had to spend a lot of money, and increased the budget from Rf4 billion to Rf5.5-6 billion. It was still a manageable level, and although it was not the best option we had no choice at the time,” he claimed.

The opposition – and the Civil Service Commission (CSC) – for much of last year opposed the reductions in the 21,000-strong civil service demanded by the IMF, with the issue becoming mired in the court system.

The opposition contested that it is unfair to reduce the number of civil servants while increasing the number of political appointees. While the government now has only 170 political appointees on its books, Shareef claimed “they do not show up on paper because of the paper companies the government created in the name of corporatisation to try and fool the International Monetary Fund and the World Bank. I don’t think a country of this size – 350,000 people – needs to have so many political appointees.”

The government has since changed tactics, offering incentives to civil servants as young as 18 to leave the state payroll.

Under the scheme, the application deadline for which was May 31, civil servants and government employees are eligible for one of four retirement incentive packages: no assistance, a one time payment of Rf 150,000 (US$11,700), a payment of Rf 150,000 and priority in the small and medium enterprises loan scheme (for those 18-50 years of age), or a lump sum of Rf 200,000 (US$15,600) and priority in government training and scholarship programmes (for those 18-40 years of age).

The move to incentivise the departure of civil servants is likely to draw further support from the IMF, which has finished its Article IV consultation and may be weighing up the provision of further support.

Meanwhile, the government is unable to respond to demands from the constituency to reduce commodity prices without explaining the complexities of the situation it finds itself in. Yet neither is it realistic “to pin our hopes on some sort of tourism growth bonanza in the short term,” wrote Imraan. “We might as well play the Euro lottery every week if this is the only plan.

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Osama bin Laden killed in Pakistan by US forces, says Obama

US President Barack Obama has declared the death of Osama bin Laden at the hands of US forces.

In a live broadcast to the US on Sunday night, Obama claimed that an intelligence lead in August 2010 had culminated in the tracking of bin Laden to Abbottabad, a town north of Islamabad in Pakistan far from the tribal belt where the US has been searching for the fugitive.

“It was far from certain, and it took many months to run this thread to ground. I met repeatedly with my national security team as we developed more information about the possibility that we had located bin Laden hiding within a compound deep inside of Pakistan. And finally, last week, I determined that we had enough intelligence to take action, and authorised an operation to get Osama bin Laden and bring him to justice,” Obama said.

“A small team of Americans” engaged bin Laden in a firefight, killing him. No US or civilian casualties were reported, and bin Laden’s body was recovered.

A US official told Associated Press that “We are assuring [his body] is handled in accordance with Islamic practice and tradition.”

Counter-terrorism cooperation with Pakistan “help lead us to bin Laden and the compound where he was hiding,” Obama said.

“We must also reaffirm that the United States is not – and never will be – at war with Islam,” he added. “Bin Laden was not a Muslim leader; he was a mass murderer of Muslims.  Indeed, al Qaeda has slaughtered scores of Muslims in many countries, including our own.  His demise should be welcomed by all who believe in peace and human dignity.”

Reaction

Crowds immediately gathered outside the gates of the White House singing the country’s national anthem, while news networks reported a “party atmosphere” spreading throughout the country.

British Prime Minister David Cameron said that confirmation of bin Laden’s death should  “bring great relief to people across the world”.

“Osama Bin Laden was responsible for the worst terrorist atrocities the world has seen – for 9/11 and for so many attacks, which have cost thousands of lives, many of them British,” the PM said.

A Western diplomat based in Islamabad told the UK’s Guardian newspaper that bin Laden’s death was a “game changer” for US foreign policy in Afghanistan and Pakistan.

“I’m overjoyed, but what this exactly means is really not clear,” the diplomat said.

A number of analysts speculated that while bin Laden’s death was a significant symbolic victory for the US, it was unlikely to hamper al Qaeda’s operations as bin Laden was no longer involved in the day-to-day functioning of the terrorist organisation.

The US State Department meanwhile issued a travel alert to all US citizens warning of an outbreak of anti-American violence in the wake of bin Laden’s death.

“Given the uncertainty and volatility of the current situation, US citizens in areas where recent events could cause anti-American violence are strongly urged to limit their travel outside of their homes and hotels and avoid mass gatherings and demonstrations,” the State Department said.

US Assistant Secretary of State for South Asia, Robert Blake, is currently in Male’ for meetings with political leaders and civil society.

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UN war crimes report on Sri Lanka foreign policy challenge for Maldives

The Sri Lankan government is grappling with the political fallout of a leaked UN report accusing it – and the Liberation  Tigers of Tamil Eelam (LTTE) rebels – of potential crimes against humanity in the closing days of the civil war.

The report on the final stage of the war between LTTE and the Sri Lankan authorities was leaked to the media, containing allegations, among others, that the army shelled hospitals, UN facilities and aid workers with the International Committee of the Red Cross (ICRC). The report further alleges that the government intimidated and in some cases silenced the media, even abducting journalists in “white vans”.

Meanwhile, UK television network Channel 4 last week said it will air what it claims is “probably the most horrific” footage the station has ever shown, after obtaining “trophy” videos of what it claims are Sri Lankan war crimes.

According to the network, footage obtained by the station includes “extrajudicial executions filmed by Sri Lankan soldiers as war trophies on their phones; the aftermath of shelling in civilian camps and hospitals alleged to have been deliberately targeted by Sri Lankan government forces; dead female Tamil fighters who appear to have been systematically raped; and pictures which document Tamil fighters alive in the custody of Sri Lankan government forces and then later dead, apparently having been executed.”

The director of ITN productions, Callum Macrae, told the UK’s Guardian newspaper that the filmmakers had “trawled through hours of devastating imagery shot by Tamils under attack and Sri Lankan soldiers as war trophies. The claims made by eyewitnesses in the film appear to be illustrated in each case by video footage or still images.”

The Sri Lankan government has reportedly complained to the UK’s media regulator Ofcom regarding the station’s intention to air the footage.

Channel 4’s announcement comes a week after a UN report on the closing days of the war between the Tamil Tigers and the Sri Lankan authorities was leaked to the media, containing allegations, among others, that the army shelled hospitals, UN facilities and aid workers with the International Committee of the Red Cross (ICRC). The report further alleges that the government intimidated and in some cases silenced the media, even abducting journalists in “white vans”.

“The government says it pursued a ‘humanitarian rescue operation’ with a policy of ‘zero civilian casualties’. In stark contrast, the Panel 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,” the report reads.

“Despite grave danger in the conflict zone, the LTTE refused civilians permission to leave, using them as hostages, at times even using their presence as a strategic human buffer between themselves and the advancing Sri Lanka Army. It implemented a policy of forced recruitment throughout the war, but in the final stages greatly intensified its recruitment of people of all ages, including children as young as fourteen. The LTTE forced civilians to dig trenches for its own defenses, thereby contributing to blurring the distinction between combatants and civilians and exposing civilians to additional harm. All of this was done in a quest to pursue a war that was clearly lost; many civilians were sacrificed on the altar of the LTTE cause and its efforts to preserve its senior leadership.

A former UN spokesperson for the UN in Sri Lanka was reported in the UK’s Independent newspaper as saying that the report “damns the government of Sri Lanka’s so-called war on terror, which incidentally killed many thousands of civilians. The Tamil Tigers were equally rotten in their disdain for life.”

Sri Lankan media has meanwhile been busily criticising the veracity of the report, the UN panel involved, and UN Secretary-General Ban Ki-moon himself.

Yesterday, Ki-moon announced that he would welcome a mandate from the UN Human Rights Council, Security Council or General Assembly to launch an international war crimes investigation into the final two years of Sri Lanka’s civil war, as per the recommendation of the UN report.

Such a mandate would require consent from the Sri Lankan government – unlikely, given that it has labelled the report as “fundamentally flawed and patently biased” – or through a decision by the UN’s 192 member states.

The US Embassy in Sri Lanka has also privately expressed concerns about the Sri Lankan government’s actions during the closing days of the war.

In a leaked US Embassy cable sent on January 15 2010, Ambassador Patricia Butenis remarked there was a clear “lack of attention to accountability” following the mass killings of Tamils in the final days of the war, a situation she described as “regrettable” but unsurprising.

“There are no examples we know of a regime undertaking wholesale investigations of its own troops or senior officials for war crimes while that regime or government remained in power,” Butenis said in the cable.

“In Sri Lanka this is further complicated by the fact that responsibility for many of the alleged crimes rests with the country’s senior civilian and military leadership, including President Rajapaksa and his brothers and [then] opposition candidate General Fonseka.”

The UN report and subsequent international furore likely to be generated in the wake of the Channel 4 program places the Maldives in a difficult position, between its stated (and much promoted) human rights agenda, and its national and economic interest.

Sri Lanka is one of the Maldives’ key economic and regional partners, and a major transit hub for both trade and tourists visiting the country. President Mahindra Rajapaksa extended the Maldives a US$200 million credit line in November, and even travelled to the Maldives to mediate a dispute between the ruling Maldivian Democratic Party and opposition Dhivehi Rayyithunge Party (DRP) in July last year. President Mohamed Nasheed subsequently attended Rajapaksa’s swearing in ceremony.

At the same time the Maldives is a vocal member of the UN Human Rights Council and an avid proponent of human rights, with the Foreign Ministry only recently declaring that it was severing diplomatic ties with the Libyan government due of “clear evidence that the Gaddafi regime is guilty of crimes against humanity and war crimes.”

It is not inconceivable that were the UN’s case to gather momentum and international public opinion, the matter could go to vote and the Maldives could be compelled to publicly defend its neighbour from the international community.

President Nasheed’s Press Secretary Mohamed Zuhair emphasised that the Maldives saw the end of both the terrorist attacks and the civil war in Sri Lanka as “a very positive development.”

“The government has very close ties with [Sri Lankan President] Rajapaksa,” Zuhair said. “Our position is that the Maldives has very good relations with neighbouring countries, and has hundreds if not thousands of years of trade and bilateral relationships with Sri Lanka.”

The post-war situation, he suggested, was “fluid”.

“I’m concerned the UN report is a bit 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.”

If an investigation was to take place, Zuhair suggested, “it should happen in an independent manner, with reconciliation on both sides.”

The Maldives’ Foreign Minister Ahmed Naseem is currently in the UK and was not responding at time of press.

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Gaddafi’s son and grandchildren killed in NATO strike

The youngest son of Libyan President Muammar Gaddafi and three of the ruler’s grandchildren were killed last night in a NATO airstrike, Libyan authorities have claimed.

Libyan government spokesperson Moussa Ibrahim said Gaddafi and his wife, who were present in the building, were unharmed in the attack that claimed the life of Saif al-Arab Gaddafi.

“We think now it is clear to everyone that what is happening in Libya has nothing to do with the protection of civilians,” Ibrahim told international media.  “This is not permitted by international law. Nato does not care to test our promises, the west does not care to test our statements. Their only care is to rob us of our freedom.”

NATO and the defence ministries of countries involved in supporting Libyan regime change did not immediately comment on the attack. The UN resolution 1973 made in March does not explicitly permit or prohibit assassination of military leaders – Gaddafi is the de-facto head of the country’s armed forces – but it is mandated to use “all necessary measures” to protect civilians.

Fighting for key towns and oil ports continues as Gaddafi’s forces clash with NATO-backed rebels based in the eastern city of Benghazi. On Friday aid ships were blocked from docking at the port of Misrata – the scene of some of the civil war’s most vicious fighting – while coalition warships cleared mines laid by Gaddafi’s military.

Last month the Maldives suspended diplomatic ties with the Libyan government as Western powers increased military pressure on President Muammar Gaddafi’s regime.

“Following the recognition of the TNC, the suspension of diplomatic relations with the pro-Gaddafi regime is based on the continuing deteriorating human rights and humanitarian situation in Libya, and increasingly clear evidence that the Gaddafi regime is guilty of crimes against humanity and war crimes,” the Maldives Foreign Ministry said in a statement.

The statement came after the US accused Gaddafi of using human shields and cluster bombs against his own population in Misrata.

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Gayoom loses defamation case over NYT “looters” article

Former President Maumoon Abdul Gayoom has lost a long-running defamation case against the editor of Miadhu newspaper Abdul ‘Gabey’ Latheef.

Gayoom sued Latheef over an article published on June 13, 2010 which referenced allegations of corruption against the former President made in a New York Times (NYT) report.

That story was based on an audit report of former Presidential palace Theemuge, published by Auditor General Ibrahim Naeem, a damning indictment of the former government’s spending habits.

These, according to the NYT article, included an estimated “US$9.5 million spent buying and delivering a luxury yacht from Germany for the president, US$17 million on renovations of the presidential palace and family houses, a saltwater swimming pool, badminton court, gymnasium, 11 speed boats and 55 cars, including the country’s only Mercedes-Benz.”

“And the list goes on, from Loro Piana suits and trousers to watches and hefty bills for medical services in Singapore for ‘important people and their families. There was a US$70,000 trip to Dubai by the first lady in 2007, a US$20,000 bill for a member of the family of the former president to stay a week at the Grand Hyatt in Singapore. On one occasion, diapers were sent to the islands by airfreight from Britain for Mr Gayoom’s grandson.”

Onus of proof

The Civil Court ruled today that as both articles were based on a state audit report, the information made public by the country’s first independent auditor general should be considered valid unless proven otherwise.

The court judgment added that there was no legal basis for individuals or media outlets to be held responsible for proving the truth or falsehood of an official audit report.

Delivering the judgment, Judge Mariyam Nihayath said that while the court believed the articles in question could be damaging to Gayoom’s reputation, information publicised in an audit report must be considered factual unless proven otherwise.

“Regardless of how damaging statements made or information provided is to the plaintiff’s honour or dignity, if the statement or information is true, [defamation law] states that it cannot be considered defamatory,” she said.

Latheef told Minivan News today that the court case was the first case Gayoom had lost in 32 years, and was a landmark case for freedom of the media.

“The media must be able to report on independent authorities such as the Auditor General’s Office or the Anti-Corruption Commission,” he said. “His lawyers said in court four or five times that they wanted to stop the media writing about these things.”

The court’s ruling meant that Gayoom was obliged to sue the source of the allegations, the Auditor General’s office, rather than the media that reported on it, Latheef said.

“[Gayoom] has been saying for three years he would take the Auditor General to court, but he hasn’t because he knows he will lose. But he thinks that, because I’m just an ordinary man, he can sue me,” he said.

Latheef said that one of Gayoom’s lawyers had approached him to settle out of court, but said he had refused as that would not have resolved the issue of media freedom at stake.

“They also approached me indirectly through some of my close friends to say why didn’t I settle and say sorry in court, and then they could support me. I said it was not compensation I needed.”

Latheef said Gayoom’s lawyers had told him after the verdict that they intended to appeal in the High Court.

“I am ready to go all the way to the Supreme Court,” said Latheef.

Gayoom’s spokesperson Mohamed ‘Mundhu’ Shareef had not responded to Minivan News at time of press.

Head of the Maldives Journalists Association (MJA), Ahmed ‘Hiriga’ Zahir, said he agreed with the ruling and felt that it was a good precedent for the country’s journalists.

“The NYT reported on the audit report and Mr Latheef reported on the NYT story. I agree with the court’s judgement,” Hiriga said, concurring that the media was not under obligation to prove the veracity of official government reports.

“The authenticity of the audit report is a different question, and the accusation is that the Auditor General was biased and that the report was politically motivated. That was the basis of the argument by Gayoom’s lawyer,” Hiriga said.

“Politically motivated”

The opposition have steadfastly maintained that the report was a politically-motivated attempt to sully the then-president’s reputation prior to the election. Naeem was however appointed by Gayoom.

“It is common knowledge that Naeem’s audit reports were both politically-motivated and riddled with inaccuracies. References from such documents are unbecoming of professional journalists, albeit the MDP government utilises them as handbooks to achieve their political objectives,” said the DRP in a statement following publication of the article.

“The MDP government, in an year and a half of searching through its ‘presidential commission’, has failed to find anything that they can pin against President Gayoom to defame his character. The MDP government will continue to fail in their sinister plots,” the DRP statement read.

“The DRP will take all necessary action to alert the international community to the government’s sinister motives behind the allegations against the former president. We condemn the government for its continued attempts to shroud its incompetence in running the country behind cheap propaganda gimmicks.”

Naeem’s tenure following publication of over 30 audit reports, alleging rampant corruption and “organised crime” by the Gayoom administration, was short-lived.

On March 24 last year, Naeem sent a list of current and former government ministers to the Prosecutor General, requesting they be prosecuted for failure to declare their assets.  Naeem cited Article 138 of the Constitution that requires every member of the Cabinet to “annually submit to the Auditor General a statement of all property and monies owned by him, business interests and all assets and liabilities.”

He then held a press conference: “A lot of the government’s money was taken through corrupt [means] and saved in the banks of England, Switzerland, Singapore and Malaysia,” Naeem said, during his first press appearance in eight months.

Five days later he was dismissed by the opposition-majority parliament on allegations of corruption by the Anti-Corruption Commission (ACC), for purportedly using the government’s money to buy a tie and visit Thulhaidhu in Baa Atoll.

The motion to dismiss Naeem was put forward by the parliamentary Public Accounts Committee (PAC), chaired by Deputy Speaker and member of opposition-allied People’s Alliance (PA), Ahmed Nazim, who the previous week had pleaded not guilty to charges of conspiracy to defraud the former Ministry of Atolls Development while he was Managing Director of Namira Engineering and Trading Pvt Ltd.

Nazim was today dismissing claims from opposition MPs that he has dodged Criminal Court summons regarding the matter eight times to date.

The parliament has meanwhile yet to approve a replacement auditor general, with the finance committee refusing to endorse any of the candidates put forward so far by President Mohamed Nasheed.

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Fees paid “in full and complete compliance with the concession agreement”: GMR

GMR Male International Airport (GMIAL) today sought to clarify the payment of the airport service charges, fuel re-export royalty and concession fees to the government, following reports in newspaper Haveeru that it was undergoing a tax audit due to “inconsistencies”.

Commissioner General of Taxation Yazeed Mohamed was reported in Haveeru as saying that the Maldives Inland Revenue Authority (MIRA) was conducting an audit of the payments as “we looked into the speculations and found that there are some issues with the amounts paid.”

Yesterday, Haveeru reported the Managing Director of the Maldives Airports Company Limited (MACL) Mohamed Ibrahim as saying that the concession fee GMR had paid was US$2.6 million less than predicted.

“The payment was made in the first week of this month. We have informed the company that the amount does not match our estimations. The Finance Ministry has also informed the company that the actual amount would be more than that,” Ibrahim was reported as saying.

GMIAL issued a statement today claiming that concession fees up until March 31 had been paid “in full and complete compliance with the concession agreement.”

“MACL had certain observations to which GMIAL responded on April 11. MACL has not approached GMIAL with any further comments on the issue,” the statement read.

GMIAL further claimed the airport service charge was collected from airlines on behalf of the government until March 31 and paid to the MIRA on April 24, while the fuel re-export royalty was paid to MIRA on April 24 “as per the terms of the fuel re-export agreement.”

“GMIAL has not received any official communication from MIRA, other than acknowledgement of receipt, in relation to the above,” the statement concluded.

Speaking to Minivan News today, MIRA’s Director of Assessment and Audit Aiman Ibrahim said that the audit was “routine, as conducted for all tax types” and that the only inconsistency was that the airport service charge payment “was lower than our forecast.”

“Our forecast for the first three months, based on arrival and departures and factored into our 2011 budget, was that the airport service charge revenue would be US$4 million. The payment for November 25 to March 31 was US$3.9 million, so either there has been an underpayment or our forecasts were optimistic,” Ibrahim said.

The confusion was complicated, he said, “by an administration failure on behalf of the government. The Ministry of Finance was not aware it was supposed to be receiving the money. There is also conflict in the concession agreement: the agreement itself states that the [airport service charge] is to be paid monthly, but an annex in the agreement says payments are to be made on a quarterly basis. GMR had been keeping the money in a separate bank account.”

MIRA had not formally notified GMIAL that it was being audited, he said, as it was a routine audit and no notification was required unless further documentation from GMIAL was required.

GMR had met with MIRA today, Rasheed added, “and were very cooperative. They were concerned about the negative publicity.”

Indian infrastructure giant GMR, in consortium with Malaysia Airports Holdings Berhad (MAHB), last year won a bid to develop and manage Male’ International Airport under a 25 year concession agreement which includes a spend of almost US$400 million on a new terminal.

Under the agreement the consortium paid the government US$78 million upfront, and will pay one percent of its profits and 15 percent of fuel trade revenue until 2014. From 2015 it will pay the government 10 percent of airport profits and 27 percent of the fuel trade until 2035.

The agreement has been a major point of contention with the political opposition in the Maldives, which opposed it on nationalistic grounds.

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Maldives’ oil spend spikes in line with world oil prices

Saudi Arabian oil exporter Aramco has expressed unease about the global economy as oil prices have continued to rise, as unrest drops the rate of production in Africa and the Middle East.

Prices reached US$124 a barrel yesterday, after peaking earlier this month at US$127. Worldwide output fell 700,000 barrels in March amid ongoing political turmoil in Libya, Yemen, Syria, Nigeria and the Ivory Coast.

CEO of Aramco Khalid al-Falih told an industry gathering in South Korea that “We are not comfortable with oil prices where they are today… I am concerned about the impact it could have on the global economy.”

The Maldivian economy is dependent on oil to such an extent that is spends a quarter of its GDP on it – US$245 million – the vast majority on marine diesel, making imported energy one of the single largest drains on the country’s economy.

Customs documents obtained by Minivan News in January showed that Maldives was spending almost US$100,000 more per day more on fossil fuels than it was in the summer of 2010. At that time, oil was US$86 a barrel.

By the same calculations but with today’s oil price, the Maldives is paying an additional US$450,000 per day for oil compared to summer prices last year.

In Male’, the increase in price has compelled the State Electric Company Limited (STELCO) to increase the fuel surcharge component of its electricity prices, with Haveeru reporting a STELCO official as acknowledging an increase in complaints about the cost of their bills price. The fuel surcharge reached Rf 1.41 per kilowatt hour in March, dropping slightly to Rf 1.27 in April.
“The rise in fuel prices leads to an increase in the fuel surcharge, which eventually push the electricity charges up,” the official said.
The Maldives has meanwhile pledged to become carbon neutral by 2020, but little has been done to wean the country from the growing financial burden of its oil addiction.

In a previous interview with Minivan News, President Nasheed’s Energy Advisor Mike Mason suggested that spiralling oil costs could prove to be a strong argument for a return to sailing.

“I think there is a huge opportunity to take a knowledge of sail, wind and current – the thinking that has served the Maldives well for 2000 years – and apply modern technology such as solar to create a new transport paradigm. A sailing vessel with a modern hull, utilising modern technology can reach 30-40 knots, and would greatly reduce the reliance on diesel,” Mason said at the time.

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Journalist, 14 year-old boy and senile old man among Guantánamo detainees, leaked dossiers reveal

A trove of over 750 US military dossiers on Guantánamo detainees leaked to international media, including the New York Times and the Guardian, have revealed that many inmates were kept incarcerated for years on flimsy evidence, or information extracted under torture.

Many incarcerated were victims of circumstance, including an 89 year-old Afghan villager suffering from senile dementia who had “suspicious phone numbers” in his house, a 14 year-old kidnap victim “with possible knowledge of local Taliban leaders”, and a journalist for al-Jazeera.

The latter was imprisoned for six years during which time he was interrogated “on the al-Jazeera news network’s training programme, telecommunications equipment, and news-gathering operations in Chechnya, Kosovo and Afghanistan.”

The documents also include a summary of evidence against former Maldivian Guantánamo detainee Ibrahim Fauzee, dated 2004.

According to the document, Fauzee was arrested in Pakistan while he was living in “a suspected al Qaida safehouse.” His telephone number was “ found in terrorist detainees’ pocket litter”, and “the detainee’s point of contact telephone number was associated with a Sudanese teacher who assisted Arabs traveling to training camps in Afghanistan.”

Fauzee was subsequently released and transferred to the Maldives on March 11, 2005, where he now heads the Islamic Foundation NGO.

The documents also reveal that that US authorities privately listed the Pakistani Intelligence Service (ISI) as a terrorist organisation alongside groups such as al-Qaida, Hamas and Hezbollah, and that US authorities relied heavily on evidence obtained under torture from a small number of detainees.

Other indicators used as an assessment of terrorist potential included possession of a Casio F-91W digital watch, which “was known to be given to the students at al-Qaida bomb-making training courses in Afghanistan [during] which the students received instruction in the preparation of timing devices using the watch.”

US President Barak Obama vowed to close the controverisal military prison but has been unable to transfer the remaining 172 detainees. The Maldives was last year in negotiations to accept several inmates, with leaked diplomatic cables revealing that the country was offered US$85,000 to assist with the “resettlement expenses” of an inmate.

Those who remain include the severely-tortured, informers requiring protection, and group of Chinese Uighur minority Muslims.

The leaked dossiers are among hundreds of thousands leaked to Wikileaks last year, allegedly by US soldier Bradley Manning, who remains in custody.

In a response to the Guardian, the Pentagon criticised the release of the documents, claiming that “the situation with the Guantánamo detention facility is exceptionally complex and releasing any records will further complicate ongoing actions.”

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