Maldives at a crossroads: Selina Mohsin

“Street protests, unruly mob violence, nightly raids and destructive slogans against the ruling party have put the first democratic government of Maldives in a vulnerable position,” writes former Bangladeshi High Commissioner to the Maldives, Professor Selina Mohsin, in the Daily Star.

“The devaluation of the currency has provided an opportune moment [for the opposition] to protest against the government and create a smokescreen over their own political wrangling. They claim that the government is responsible for financial mismanagement and reckless spending without investing in productive resources. The youth are being used as pawns and the recent unrest has been termed by the opposition parties as youth movement reminiscent of political movements in the Middle East.

“For their own vested interest opposition parties appear to have incredibly short memories. Most have forgotten that in 2008 the World Bank stated that Maldives was in a volatile economic situation. The budget deficit stood at 31 percent of the GDP, inflation at 12 percent and the economy was reeling from massive fiscal expansion with the government’s wage bill increases. When President Nasheed came to power after the first multi-party democratic election, the World Bank noted that Nasheed had inherited the worst economic situation that any country faced since the 1950s.

“Recently, after international media coverage of days of violent demonstration across the capital Male’, countries that have tourists travelling to the Maldives have warned their citizens of security problems. Maldives was identified by Hong Kong as ‘amber’ after several nights of severe protests. This threat indicator now ranks the Maldives alongside Israel, Iran, Indonesia, Russia and Pakistan. China’s Xinhua news agency reported a government spokesperson as saying that those who plan to visit the Maldives or are already there should “monitor the situation and exercise caution.” Chinese tourist constitutes the largest number of arrivals and is a major emerging market. This increase in recent years has offset a decline in European tourism due to global recession of 2008.

“A dialogue was held a few days back by representatives of the government and party youth leaders. It was unsuccessful. The youth leaders demanded further reforms to reforms that have already been undertaken. To ask for the moon is a means of thwarting any useful dialogue.

“It appears that the current unrestrained demonstrations are not merely against a rise in the costs of living but to bring the government of President Nasheed down. Such is the peril of democracy.”

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Cabinet caps expatriate remittances, as blackmarket reaches Rf17

Cabinet will impose a limit on the amount of money that can be remitted by expatriate workers in the Maldives, in an attempt to increase the dollars circulating in the economy.

The government said the decision, reported in the government gazette and published in Haveeru, was intended to reduce the amount of money send overseas by those working in the country illegally. Previous estimates have put the number of illegal workers at up to half the total expatriate population of the Maldives.

Those that exceed the limit, and organisations providing the transfer facility, would face a fine.

Most banks already place a limit on the amount of rufiya that can be transacted into dollars and transferred out of the country.

Haveeru meanwhile reported that a blackmarket for dollars had resurfaced with prices reaching Rf16.5, as banks were still unable to meet demand for dollars. The highest amount permitted under the government’s band is Rf15.42 to the dollar.

“It’s difficult to buy dollars, even if you’re willing to pay Rf17 for it. Banks don’t issue dollars either,” a local businessman told Haveeru.

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Park Hyatt opens 50 villa resort on Hadahaa

The Park Hyatt resort on Hadahaa in Gaafu Alif Atoll has opened 50 luxury villas to visitors, emphasising privacy, comfort and environmental sensitivity.

A statement from the resort said services include a five star dive centre, Mandara spa and a “leisure concierge” offering excursions and activities.

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Bangladeshi scholar to deliver sermon for expatriate workers

Bangladeshi scholar Mufti Anwar Hussein has been invited to the Maldives by the Islamic Ministry to deliver sermons for the country’s large expatriate population.

The Ministry’s Director General at the ministry, Ahmedulla Jameel, told Haveeru that the sermons would be in the Bengali language and would focus on the social problems that are on the rise among the Bangladeshis living in the Maldives.

The sermons will be delivered on Thursday and Friday at mosques in Male’, Hulhumale, Villingili and Thilafushi.

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Health Ministry raises private clinic charge concerns

The Maldives Ministry of Health could be set to reprimand certain private medical clinics that are claimed to have increased their consultation charges without its permission as the value of rufiyaa falls against the US dollar.

Haveeru has reported that the ministry has raised concerns that some clinics had failed to seek permission from the country’s health officials before increasing their consultation prices from the previous rate of Rf200 by up to 50 percent in certain cases.

According to the paper, Director General of Health Services, Dr Ibrahim Yasir, said that the ministry would be investigating these consultancy costs and could potentially move to fine and revoke licenses from certain private clinics that were deemed to not be working within their remit by hiking prices.

Despite the criticisms over charges, the ministry was said to accept that the cost of imported medical consumables had risen on the back of a changing dollar exchange rate.

Yasir claimed to the paper that in light of amendments to the exchange rate, it would be reviewing submissions by private clinics that are seeking to increase their charges accordingly.

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PA Secretary General appointed to Elections Commission

The Secretary General of the People’s Alliance (PA), the party of the former President’s half brother Abdulla Yameen, has been appointed the General Secretary of the Elections Commission (EC).

Ahmed Shareef Adam was appointed to the post out of 25 applicants who applied.

“Only five applicants fit the criteria devised by the commission. Out of them, one did not fit the criteria already set under the regulation of the commission and another application was withdrawn. So we interviewed only three applications, out of whom Shareef scored the highest and got the job,” the EC’s Executive Director Ismail Habeeb told newspaper Haveeru.

The PA announced that Shareef was resigning from his post at the party following his appointment.

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Government owes us Rf443 million: Civil Service Commission

The government owes Rf443 million (US$34 million) in unpaid salaries and allowances to civil servants following yesterday’s High Court upholding of a Civil Court ruling that salaries be restored to pre-cut levels and the balance repaid.

The Civil Service Commission (CSC) took the Finance Ministry to court last year after it refused to restore the salaries in January 2010 following three months of austerity measures.

The International Monetary Fund (IMF) has pressured the government to reduced its civil service spend to reduce its deficit. The government has not said whether it plans to appeal.

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