Author: Neil Merrett

State Finance Minister requests Supreme Court review legitimacy of 11 opposition MPs

State Finance Minister Abbas Adil Riza has asked the Supreme Court to determine the legitimacy of 11 opposition Maldivian Democratic Party (MDP) MPs he alleges are in breach of the constitution.

Citing clause 74 of the constitution, Abbas told Minivan News he had filed a case invoking the Supreme Court’s authority to decide on the legitimacy of the opposition MPs, claiming that there was evidence to support allegations they had breached it.

The nature of the 11 MP’s alleged offences remain unknown, with Abbas declining to detail the exact charges at time of press.

The MDP today said that it had not been informed of the case against the MPs, but stressed concern over what it called the “fundamental problems” with the independence of the country’s courts and legal watchdog, the Judicial Services Commission (JSC).

A number of international institutions including the UN Special Rapporteur on the Independence of Judges and Judiciary, Gabriela Knaul, and the UK’s Bar Human Rights Commission, have recently expressed concern about the politicisation of the JSC and the legitimacy of the Hulhumale’ Magistrate Court it created to overhear a trial against former President Mohamed Nasheed.

Knaul herself also concluded as part of preliminary findings from an eight day fact-finding mission to the country this year that the judiciary has been “misconstrued and misinterpreted” by all actors including the courts themselves.

Judicial legitimacy

However, Abbas said he “did not regard” claims by UN Special Special Rapporteur Knaul or the MDP on the judiciary as legitimate, rejecting allegations of political bias in the country’s courts.

“Whenever the MDP has a trial go in their favour, the judiciary is legitimate. For rulings against them, it is bad,” he said. “Here in the Maldives, the constitution is our rule book.”

Abbas, who is also a spokesperson for President Dr Mohamed Waheed’s Gaumee Ithihaad Party (GIP), added that as there was “clear evidence” the 11 MDP MPs mentioned in the case had breached the constitution, the Supreme Court was duty bound to investigate.

However, he said that the names and alleged misdemeanors of the 11 MPs would only be revealed during the course of the case.

According to Abbas, the case was hugely important for the country owing to a lack of “moral guidelines” outlining behaviour of MPs.

MDP response

MDP MP and Spokesperson Hamid Abdul Ghafoor said he had not been informed of the case filed by Abbas at time of press, but guessed that those targeted would be MDP members who presently had cases filed against them either in the country’s courts or with the Maldives Police Service.

“Police right now have cases against against a third of the MDP’s MPs,” he said. “Eleven sounds like the number of MPs who have been charged for taking part in protests and things like that.”

Hamid added that the party was particularly concerned about the case concerning “fundamental problems” it held with the country’s judiciary – pointing specifically at the JSC’s failure to follow article 285 of the constitution regarding the reappointment and vetting of judges appointed by former President Gayoom. He added that the party was also concerned about the JSC’s composition and conduct.

Hamid added that as a member of parliament’s Independent Oversight Committee charged with investigating the nation’s judiciary, there would be a further conflict of interest should he himself be among the 11 MPs charged.

Hamid was arrested in November last year during a special operations carried out by police on the island of Hodaidhoo in Haa Dhaal Atoll.

Police at the time said they found large amounts of “suspected” drugs and alcohol upon searching the island with a court warrant.

Also among those arrested during the raid was MP Adbulla Jabir, formerly of the JP, who has since rejoined the MDP.

No confidence motion

Earlier on Monday, a no-confidence vote was suspended against Jumhoree Party (JP) MP and resort tycoon Gasim Ibrahim’s position on the Judicial Services Commission (JSC).

MP Gasim is to stand as a direct rival against former President Mohamed Nasheed in elections scheduled for later this year

The JSC itself appointed three judges to oversee the trial of former President Mohamed Nasheed on charges that he illegally detained a senior judge during his presidency. All trials over the judge’s detention were suspended earlier this month pending a High Court ruling on the legitimacy of the bench of the Hulhumale’ Magistrate Court conducting Nasheed’s trial.

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Ministers slam Nasheed for “bluffing” over guesthouse commitments

Former President Mohamed Nasheed’s pledge to expand guest house tourism in the country has been strongly criticised by senior government figures, who accuse him of lacking sincerity and “bluffing” over his commitments to mid-market tourism.

State Minister for Finance Abbas Adil Riza and Minister for Tourism Ahmed Adheeb both this week slammed Nasheed, claiming guesthouse bed numbers more than doubled last year after President Dr Mohamed Waheed came to power.

The ministers, who represent the government-aligned Gaumee Ithihaad Party (GIP) and  the Progressive Party of Maldives respectively, also criticised Nasheed over previous remarks he made in international media calling for a boycott of the country’s tourism sector.

However, Nasheed’s Maldivian Democratic Party (MDP) has claimed that after reintroducing the guesthouse concept to the Maldives during its administration, the party’s latest manifesto gave further importance to growing mid-market tourism.  The MDP claims such growth will be vital to tackling what it called a “total disconnect” between the lucrative island resort model and local people.

With the inclusion of development of small and medium businesses – particularly in the emerging guesthouse sector – in a “mini-manifesto” drawn up by the MDP, mid-market tourism has emerged as a key potential issue for elections in September 2013.

Bed numbers

Speaking to Minivan News, Abbas Adil Riza accused Nasheed of lying in regards to his commitments to mid-market tourism development, criticising him for a wider failure to protect small and medium businesses in the country.

“My concern is that Nasheed is bluffing. Between 2009 to 2011, there were 16 new guest houses built,” he said, claiming these properties amounted to some 180 tourism beds.

Abbas said that in 2012 alone, the number of guesthouse beds available to tourists in the country had almost doubled as a result of programs implemented by the Waheed government to provide smaller-scale loans leading to 37 guest houses being developed.

“During Nasheed’s administration, outsiders were given public land and there was no funding supplied,” he said. “After February 7, we gave small-scale loans to 37 individuals.”

Abbas also accused former President Nasheed of failing to support small and medium enterprises and local industry in general.

He added that small and medium scale businesses had to be set up in harmony with local culture and traditions, particularly on small islands.

“He can’t just say that he is the champion of these things,” Abbas added.

Boycott concerns

Traditional holiday staples for large numbers of tourists coming to the Maldives, including being able to wear bikinis and drinking alcohol, are not permitted by law on local islands that are classed as being inhabited.

Speaking to local media, both Abbas and Tourism Minister Adheeb have hit out at claims by the MDP published in international media last year calling for travellers to boycott Maldives tourism.

Adheeb told Sun Online that Nasheed had not made sense by previously calling for the promotion of guest houses in the build up to this year’s presidential election after calling for a boycott last year.

“President Nasheed had made a global call to boycott Maldives tourism, and now he is calling to promote guest house businesses, targeted at Maldives tourism. This does not make sense,” he was quoted as saying.

Nasheed last year called for a tourism boycott of the Maldives, as he continued to question the legitimacy of the government of President Waheeed – his former vice president.

However, these calls were soon dropped by Nasheed and supporters of the now opposition MDP.

The Ministry of Tourism last year fell short of its stated aim of welcoming one million visitors to the country during 2012, citing difficulties resulting from media coverage of political turmoil following the change of government that brought President Dr Mohamed Waheed to office.

However, authorities in the country have since pledged to surpass the one million visitor goal in 2013, claiming late last year that the “hard days” were over for tourism in the country following 2012′s political turmoil.

Despite this stance, as part of a so-called silent protest at this year’s ITB event, anti-government campaigners distributed leaflets entitled ‘the cloudy side of life‘ – a play on the country’s official ‘Sunny Side of Life’ tourism slogan to draw attention to alleged human rights violations under the new government.

“Paradigm shift”

MDP MP and Spokesperson Hamid Abdul Ghafoor responded that Nasheed’s government had sought to reintroduce and expand guest houses in the Maldives – a development the party claimed was needed to bring a “paradigm shift” in general thinking and economic development in the Maldives.

After 40 years of concentrating primarily on exclusive island-based resort tourism, Hamid accused former President Maumoon Abdul Gayoom during his 30 years of power of creating a “total disconnect” between local people and the country’s famous high-end tourism product.

“They local people Islamic rhetoric while talking something very different to tourists,” he claimed.

Pointing to the ‘mini-manifesto’ released by the MDP in the build up to this year’s elections, Hamid claimed that was capacity for an additional 600,00 tourists to travel to the Maldives annually, yet there was not enough options to accommodate them.

“All across this country, you see that many islands are ready for [middle-market tourism]. There are impressive cafes. People who have worked in the tourism industry are setting up businesses based on their experiences,” he said. “Tourism is very much a business we know and some of these places are quite sophisticated.”

As part of the MDP’s election pledge, Hamid claimed that some MVR120 million was set to be pledged as part of a policy to provide “seed money” to help establish guest houses and supporting industries.

He said that guest houses have always been a central policy of the MDP to support national development.

By comparison, Hamid claimed that before coming to power, the previous government under former President Gayoom had tried to paint tourism on local islands as “haraam” to discourage interest and investment.

He claimed such a strategy was overseen by certain resort owners and tourism magnates alleged by the MDP to being central in bringing the present government to power on February 7, 2012.  Nasheed himself resigned following a mutiny by sections of the police and military.

Both Nasheed and the MDP have continued to contend that the transfer of power was a “coup d’etat”, despite the findings of a Commonwealth-backed Commission of National Inquiry (CNI) last year.

Responding to the party’s previous reported support for a tourism boycott, MP Hamid claimed the party had always committed itself to what it called selective boycotts – rather than calling for tourists to outright reject the destination.

“We are not saying that all resort operators are bad. But some of them were directly involved in the coup and have sought to exploit their positions,” he said.

Hamid denied the party had sought to boycott the industry outright, claiming instead to be targeting resort owners that he alleged ran their businesses unethically in the style of “cartels”.

Nasheed’s tourism potential

Just last month, in an open-editorial piece reprinted in Minivan News, former President Nasheed claimed that only 50 people directly profited from the resort industry in the Maldives, limiting what he claimed were a wealth of economic and social policies.

“What the average Maldivian wants is basic. We want a way to increase our income. We want to broaden our narrow financial horizons through development.

It is not that we lack this capacity to develop. We have plentiful natural resources. If we settle for the current economic status quo, believing that what we have now is the limit to what we are entitled to, it will mean that our true wealth potential remains untapped,” he wrote at the time.

“What the MDP and I have always pointed out is this basic fact: we want to develop. To upgrade beyond the current status quo. The ordinary Maldivian’s complaint is that of poverty, of financial anxiety. We want a wallet with the wads; we want to realise that financial progress is possible. The political office is a place that should offer solutions to these complaints. This is its responsibility and obligation.”

Meanwhile, an island owner involved in the country’s burgeoning mid-market holiday sector last week slammed new regulations imposing financial restrictions on tourism joint venture projects with the government, claiming the legislation outright excludes small and medium-scale investors.

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Maldives government denies US$160 million arbitration talks with Axis Bank

The Attorney General (AG’s) Office has denied receiving any notice of arbitration from Axis Bank, one of the lenders backing a US$511 million airport development project voided by the government late last year.

In November 2012, President Dr Mohamed Waheed’s government declared void a concession agreement signed by the previous government with Indian firm GMR, to manage and build a new terminal at Ibrahim Nasir International Airport (INIA), and ordered the company to leave the country within seven days.

Following the decision – later cleared by Singapore’s Supreme Court – project lender Axis Bank announced its intention to seek a repayment of loans taken out for the project, which were guaranteed by the Ministry of Finance and approved by the AG’s Office under the former government.

“Arbitration process”

The India-based Financial Express publication reported yesterday (April 5) that Axis Bank had initiated an arbitration process with the Maldives government as part of efforts to recover loans granted to GMR with an estimated value of US$160 million (MVR 2.4 billion).

Ahmed Usham, Deputy Solicitor General for the AG’s Office, told Minivan News today that although some discussions had been held with Axis Bank, there had been no notice of arbitration given to the state by the finance group over the loan issue.

“We have requested some documents from [the bank] and we are set to meet with them after receiving these,” he said.  “There has been no talk of arbitration.”

Usham added that the documents requested from Axis Bank by the AG’s Office pertained to loans taken from GMR as part of the INIA development.

Acting Minister of Finance Ahmed Mohamed said he too was not aware of any arbitration hearings concerning Axis Bank, or even if talks had been held on the matter.

“All I am aware of is that there was a teleconference held Thursday (April 4),” he stated.

GMR arbitration

The government meanwhile is set to participate Wednesday (April 10) in the preliminary hearing of a separate arbitration case with GMR over the decision to void its airport concession agreement .

Authorities have previously told local media that the meeting, scheduled to take place in London, was not an official arbitration hearing, but rather a means to outline the timeline for both parties to present their case. Once the process for the arbitration is agreed, official hearings are expected to begin in Singapore.

According to the Attorney General’s office, the Maldives will be represented by Singapore National University Professor M Sonaraja, while former Chief Justice of the UK, Lord Nicholas Addison Phillips, will represent GMR.

The arbitrator mutually agreed by both GMR and the government is retired senior UK Judge, Lord Leonard Hubert Hoffman.

Concession agreement

In 2010, GMR-Malaysia Airports Holdings Berhad (MAHB) consortium, the government of former President Mohamed Nasheed and Maldives Airport Company Limited (MACL) entered into a 25-year concession agreement worth US$511 million (MVR 7.787 billion) – in which the GMR-MAHB Consortium was contracted with the management and upgrading of Ibrahim Nasir International Airport (INIA) within the 25 year contract period.

However in November 2012, the government of President Dr Mohamed Waheed Hassan Manik declared the developer’s concession agreement void and ordered it to leave the country within seven days.

A last minute injunction from the Singapore High Court during arbitration proceedings was overturned on December 6, after Singapore’s Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

GMR is seeking US$800 million in compensation for the sudden termination, while the Maldivian government is contending that it owes nothing as the contract was ‘void ab initio’, or invalid from the outset.

If decided in GMR’s favour, the outcome of the case could potentially see the Maldives facing sovereign bankruptcy, with millions of dollars in additional debt emptying the state’s already dwindling reserves, crippling the country’s ability to obtain further credit, and potentially sparking an economic or currency crisis.

If decided in the Maldives’ favour the case risks setting a legal precedent for effective nationalisation of foreign investments signed under previous governments, and placing existing investors further at the mercy of the country’s turbulent politics.

Kuwaiti interest

Discussing the future of INIA on Thursday, President Waheed was reported in local media as stating that authorities in Kuwait had expressed an interest to “assist in the development” of INIA, following a recent official visit to the country.

“Kuwait is really interested in the airport. It’s because we have received a great deal of assistance from the Kuwait Fund to develop the airport so far. They are well aware of it,” he was quoted in newspaper Haveeru as saying.

“They really believe that we have managed to develop the airport with the assistance of Kuwait. So there is a lot of interest. They are very happy that the government has now taken the initiative to develop the airport.”

President’s Office Media Secretary Masood Imad said he was in a meeting and unavailable for comment when contacted by Minivan News.

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President “unaware of any illegal activities” as Artur brothers investigation continues

President Dr Mohamed Waheed has told local media he was not aware of any danger posed by the presence in the Maldives of two Armenian nationals identified as the Artur brothers, as police continue to investigate the duo’s operations locally.

Controversy has surrounded the presence of Margaryan and Sargayan Artur in the Maldives, primarily based around concerns over their alleged links to criminal activities in Kenya.

On Tuesday (April 2), parliament passed an extraordinary motion concerning the presence of the two foreign nationals in the Maldives, expressing concern that an alleged connection between certain cabinet ministers and the two men posed a “direct threat to national security”.

The President’s Office has maintained there is little information about the nature of the two foreign nationals’ business interests in the Maldives, claiming that the uncertainty about them extended to the exact pronunciation of the Artur name.

Asked about the controversy today, President Waheed told reporters he received no intelligence so far linking the Artur brothers to any criminal activity in the country, adding that much of his knowledge on them was based on local media reports.

“I know that they are in Maldives. I’m also looking into it,” he was quoted he told local media after returning to Male’ from an official visit to Kuwait.

“I didn’t know that they were engaged in any illegal activities,” President Waheed stated, after admitting the government were told by authorities of the brother’s presence in the country earlier this year.

Investigations

President’s Office Spokesperson Masood Imad said that while police were currently in the process of investigating the activities of the Artur brothers in the Maldives, there was no information linking the two foreign nationals to any criminal operations in the country.

Police spokesperson Hassan Haneef told Minivan News that police investigations were continuing to determine if the two foreign nationals had been conducting any illegal activities in the country.  He added that no details into a “critical” ongoing case could be given at present.

However, a BMW car belonging to a company called ‘Artur Brother World Connection’ and registered for use in the Gaafu Dhaalu area was reportedly seized by authorities in Male’ today.

Haneef previously confirmed that police were aware of the Artur brothers presence in the Maldives back in January. He said authorities had contacted “relevant government authorities” at the time to inform them of the Artur brothers’ alleged links to drug trafficking, money laundering, raids on media outlets, dealings with senior government officials and other serious crimes in Kenya.

Minivan News understands that relevant authorities, including the Maldives National Defense Force (MNDF), Ministry of Home Affairs, and the President’s Office were officially informed in January of the presence of the Artur brothers, even as Tourism Minister Ahmed Adheeb signed a letter seeking residency permits for the pair.

Import business

Local media reported that a company registered locally as the “Artur Brothers World Connection” has secured an import license and brought goods into the country after the tourism ministry had granted both men a foreign investment permit.

“We have learned that they had imported some goods under that license. We haven’t been able to determine what those items are. It is not something the Ministry keeps track of. We have to find that out from the customs,” Finance Minister Ahmed Mohamed told Haveeru.

Immigration Controller Mohamed Ali has previously told local media that Artur Sargasyan left the Maldives on Sunday (March 31). Sargasyan first entered the Maldives on a tourist visa in August 2012 and returned again in October, Dr Ali said.

Meanwhile, photos of the Arturs in the company of Tourism Minister Ahmed Adheeb and Defense Minister Mohamed Nazim emerged on social media last weekend, apparently taken during the Piston Motor Racing Challenge held on Hulhumale’ between January 25 and 26.

One photo showed Artur Sargsyan next to Adheeb and Nazim, while another has him apparently starting one of the motorcycle races at the event, which was organised by the Maldivian National Defence Force (MNDF).

Another image showed Sargsyan at the red carpet opening for the Olympus Cinema.

Denials

Defense Minister Nazim and Tourism Minister Adheeb have denied any involvement with the pair.

Speaking to Minivan News this week, Adheeb reiterated that he had no personal links with the Artur brothers, whom he said had now left the country on his recommendation.

According to Adheeb, the Artur brothers had previously invested in the country through a registered joint venture company with members of the opposition Maldivian Democratic Party (MDP).

Adheeb said he “advised them to leave peacefully and they agreed to sort out their visa and leave. They have now left.”

Parliamentary motion

Submitting a motion to parliament on Tuesday about the Artur’s presence in the Maldives, opposition Maldivian Democratic Party (MDP) MP Imthiyaz Fahmy raised concerns about their alleged connections with ministers Nazim and Adheeb.

“The Artur brothers are a direct threat to national security since they are – true to their old style and from the experiences of other countries – directly linked to the top government officials including Mr Mohamed Nazim who is both the Defense Minister and the acting Transport Minister, as well as Mr Ahmed Adheeb who is the Tourism Minister,” Fahmy told Minivan News.

Fahmy said the Artur brothers were believed to have carried out “all sorts of serious illegal activities internationally” and that the Maldives “is incapable of handling these notorious conmen from Armenia. They are capable of taking local criminal gangs to different heights.”

Fahmy explained that immigration laws do not permit entry into the Maldives if the visitor is “even suspected” of being involved in human smuggling or trafficking; may be [considered] a national threat, or otherwise may commit crimes against the state.”

“Given all these facts – and that the Artur brothers are  world-infamous for carrying out criminal activities of this sort – they were allowed into the country and seen publicly with top government officials,” Fahmy added, alleging that the pair have three meetings with Adheeb and Nazim on Hulhumale’ and on Club Faru.

The extraordinary motion passed with 27 votes in favour to 10 against.

Meanwhile, Kenyan media has this week media reported that the brothers’ practice of publicly ingratiating themselves with senior government officials appeared not to have changed.

“The Arturs’ mode of operation where they show up in the company of top and well-connected government leaders appears to have been replicated in the Maldives. Their presence in the Maldives comes days after ousted leader Mohammed Nasheed expressed fear over his life,” reported Kenya’s Daily Nation publication.

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New financial restrictions on tourism development exclude small and medium-scale investors: developer

An island owner involved in the country’s burgeoning mid-market holiday sector has slammed new regulations imposing financial restrictions on tourism joint venture projects with the government, claiming the legislation outright excludes small and medium-scale investors.

Speaking on condition of anonymity, the island owner alleged that the recently implemented amendments to the Tourism Act served to “shut the door” on small and medium-sized investors.

The Ministry of Tourism, Arts and Culture told Minivan News that the regulations were required in order to ensure future developments in the country were financially viable and that investors could guarantee a project’s completion.

However, the regulation is expected to favour much larger-scale investment projects such as resorts, to the detriment of mid-market tourism, claimed the island owner.

“The real issue here would be that only those with very high net worth can be venture partners with government. Very, very few tycoons are in that wealth bracket,” the source said.

“[Former President] Nasheed’s government tried to be inclusive in offering business opportunities. This regulation is exclusive and shuts the door for medium to small-size investors to partner with the government.”

Joint venture regulation

Published in the Government Gazette Volume 42, number 17 – dated January 28, 2013 – the regulation requires any joint venture partner working with the state on a tourism projects to have a minimum financial worth of US$300 million  and make a minimum initial capital investment of at least US$100 million.

The regulation, entitled the “Procedure to Follow Where the Government Undertakes Joint Venture Investment in Islands or Land”, allows a company with at least a 10 percent share held by the state to develop a resort from land set aside for tourism use, such as a picnic island.

Land used for water sports or diving would also be included once the lease for the area is acquired by a joint venture company.

“Notwithstanding that section five of the Maldives Tourism Act states that islands and land for development as tourist resorts shall be leased to the party that submits the best-qualified bid in respect of such islands or land in accordance with pre-established procedures in a public tender held by the Ministry of Tourism; the same section states that those Islands or land in which the Government makes an investment wholly or in joint venture shall be exempted from the Procedure provided therein,” the regulation reads.

“Therefore the object of this procedure is to determine the procedure to follow in that prescribed exemption status. Uninhabited islands or land may be leased to a company created under a joint venture with the Government for tourist resorts, tourist hotels and marinas development pursuant to this Procedure.”

An unofficial English translation of the regulation can be read here.

Development safeguards

Minister of Tourism, Arts and Culture Ahmed Adheeb told Minivan News this week that the regulation was needed to safeguard future resort development, claiming opportunities would continue to exist for small and medium investors in the tourism sector through sectors such as guest-houses and safari boats.

With what he called a “limited” number of islands presently available in the country to be developed as resort properties – a major earner for the Maldives government both in terms of lease payments and Tourism Goods and Services Tax (T-GST) – Adheeb said the regulation was already bringing in large-scale investment.

“We already have a Qatar-based group interested in the resort business here and they have signed a memorandum of understanding (MOU) on this,” he said. “We are now looking to find a suitable location for them.”

Adheeb claimed the legislation was particularly important considering the  number of pending tourism development projects approved under the former government that failed to be completed – resulting in an overall loss to the country’s economy as a result. He said that the regulation approved back in January would ensure a more “strategic” solution to finding investment partners to ensure financial returns on tourism projects.

Adheeb said that the regulations applied to land such picnic islands that were effectively being used “almost as a resort”, such as areas licensed to serve alcohol to tourists, something not allowed on islands designated as “inhabited”.

“The only difference [to these islands] is that tourists cannot sleep there for the night,” he said. “Now they can stay there the night, but [operators] have to pay land rent. It is to stop the concept from being abused.”

The tourism minister said that picnic islands open to the Maldivian public would not be affected by the regulation and would continue to be accessed and used by local people.

“Picnic island”

Speaking to Minivan News, former Tourism Minister Dr Mariyam Zulfa said the concept of a “picnic island” dated back to the 30-year rule of former President Maumoon Abdul Gayoom.

She said the Gayoom administration had opted to lease islands either for tourism – such as through the development of exclusive resort properties – or tourism-related purposes.

While islands leased for tourism went through a bidding process, land provided for tourism related purposes was said to have been provided on an “ad hoc” basis at the tourism ministry’s discretion, according to Dr Zulfa.

“These were often leased for the purposes of day picnics for tourists, safe harbours and other ancillary facilities of resorts,” she stated. “These islands were only for the use of those persons allowed by the leaseholder (and not available for public use). These islands came to be known as ‘picnic islands’, leased by the Ministry of Tourism.”

Dr Zulfa claimed that the method of providing land for tourism related purposes during the Gayoom-era meant that there had been a lack of regulation for how much an individual party paid to lease such islands.

“Originally these were leased at rates that were not based on a uniform formula and it was very difficult to justify as to why one party had an island for, say US$2,000  a month and others for double that or sometimes more,” she added.

“What has happened traditionally is that some of the leaseholders started building rooms on some of these islands for tourists and very soon some islands became, for all intents and purposes, a tourist resort but without being registered as one and of course without being registered for the taxes that were attached to tourist resorts.”

Under the Nasheed government, Zulfa claimed the former administration attempted to introduce “a fair and just” formula allowing “picnic islands” to be converted legally into tourist resorts at the leaseholder’s request in partnership with the government.

“Thus the uniform formula of US $600,000 per square hectare and all the other conditions were stipulated in our regulations and picnic island lease holders were invited to become legal – if they so required, and without involving the bidding process. These islands are very different to islands leased by other ministries as tourism legislation – and tourism tax, I might add – applies only to islands leased by the Tourism Ministry.”

She added that land leased for public purposes such as picnics by other ministries would not be affected by the Tourism Act.

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Early withdrawal proposals “detrimental” to survival of pension scheme, regulator claims

Proposed amendments to the country’s pension system allowing workers to make early withdrawals from their retirement funds will compromise the entire scheme, the scheme’s regulatory body, the Capital Market Development Authority (CMDA), has warned.

CMDA Director General Mariyam Visam today told Minivan News that the proposed amendments to allow public and private sector staff to make early withdrawals from their pension schemes to cover costs of pilgrimages, home finance and starting businesses creates a “fundamental problem” that potentially could invalidate the program’s long-term sustainability.

The comments were made in response to Civil Service Commission (CSC) claims that a majority of public sector workers were in support of the proposed amendments to the Pension Act forwarded by Guraidhoo MP Ibrahim Riza – while also backing additional mechanisms for early withdrawals.

According to local media, the purposes by which early withdrawals could be made under the MP’s amendments include funding a Hajj pilgrimage, undertaking higher education, property building, seeking medical treatment abroad or establishing a businesses.

Sun Online has reported that the amendments would also allow individuals who had completed a contracted term or anyone elected to public office to withdraw funding to set up a business after their term was finished.

Low savings levels

CMDA Director General Visam said that the country’s pension system had been introduced in 2010 for public sector workers, with private sector employees being included in the scheme a year later.

With the system still “very new” to the Maldives, she claimed that the amount of savings available to the public would presently be very low, limiting payments that could be made at a time.

Visam claimed that any notion of allowing early withdrawals would create a “fundamental problem” for the future of Maldivian pensions, which requires long-term savings to help safeguard funds for the program.

“[Early withdrawals] serve to defeat the purpose of the whole system. By the time of retirement, a person is expected to have been making long-term savings so they will have decent benefits,” she said.

Visam added that a number of schemes were already in place in the Maldives to provide private funding opportunities for both private and public sector workers, while social security systems such as Aasandha were also available to cover medical costs at home or abroad.

She said that allowing for early withdrawals for these reasons would serve to be “detrimental” to the pension scheme, which would itself be vital for funding future investments in various sectors like infrastructure and education.

Public sector support

Speaking to Minivan News today, CSC Media Officer Ali Nizar said that since the introduction of the pensions program in 2010, civil servants had been required to pay the bulk of funds into the system compared to the private sector.

Nizar added that with a new bill being proposed in parliament on withdrawals, the CSC had sought to find out the views of public sector workers in some 80 ministerial and council administrations on whether they would support the amendments.

The majority of civil servants surveyed not only approved of the bill, but according to the CSC, public sector workers favoured further provisions, such as bringing the age of retirement down to 55, as well as allowing early withdrawals in areas of major expenditure such as funding the Umra pilgrimage.

Back in June last year, the CMDA raised concerns that a previously proposed amendment to reduce the eligible age for a basic pension from 65 to 60 years of age could damage the country’s economy, potentially adding MVR138 million (US$8.9 million) to the state budget.

The reduction of the age of eligibility from 65 to 60 years old was at the time seen as potentially increasing the number of those eligible to receive monthly pension payments by 33 percent.

Previously released UN figures estimate that the number of Maldivians over the age of 60 could be 25,000 by 2015. This could potentially leave the government with MVR690 million per year in pension payments compared with last year’s outlay of MVR420 million per year – an increase of 64 percent.

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Police seize 57 unregistered foreigners in market

The Maldives Department of Immigration and Emigration has said that 57 unregistered foreign workers detained by police today were currently being processed by authorities ahead of a decision on whether they will face deportation.

According to local media, the foreign nationals, all found working working in the fish and market areas of Male’, were detained by police in an ongoing operation undertaken in conjunction with immigration officials.

Police Spokesperson Chief Inspector Hassan Haneef was not responding to calls at time of press.

Immigration Controller Dr Mohamed Ali today confirmed that the unregistered workers were presently being held by the Immigration Department, but did not specify where they were being kept or their nationality.

“We will process them and whoever has to go will be sent back,” he said.

Dr Ali did not clarify if the unregistered workers were presently being kept at a recently opened immigration shelter intended to temporarily house unregistered and illegal immigrants.

Few details have been provided to media on the shelter, which opened back in February this year as the Maldives comes under increasing pressure to try and alleviate the number of unregistered workers in the country amidst wider fears concerning human trafficking.

The Indian High Commission in Male’ was not responding to calls at time of press on whether any of its nationals were among the unregistered workers. Meanwhile, High Commissioner of Bangladesh to the Maldives Rear Admiral Abu Saeed Mohamed Abdul Awal said he had received no information on the unregistered workers at time of press.

The Maldives has appeared on the US State Department’s Tier Two Watch List for Human Trafficking for three years in a row. Should it drop to tier three – the worst category- then the country is expected to face significant reductions in aid and potential travel restrictions on its citizens.

Last May, a total of 47 Bangladeshi nationals working for a local security firm were seized by the Department of Immigration as part of a wider crackdown on unregistered migrant workers.

Immigration officials at the time claimed that the company the men had been working for had been in operation for 10 -12 years, yet no information could be found on its operations during a subsequent investigation by authorities.

Government campaign

The government has in recent months launched a special campaign intended to raising awareness of the rights of foreign workers, while earlier this year ratifying eight “fundamental” International Labour Organisation (ILO) conventions intended to bring legislation on employee rights and trade unions in line with international standards.

However, independent institutions in the Maldives have maintained that the country – under successive governments – is yet to ratify a core convention on protecting migrant worker rights, while no legislation is in place to punish those involved in smuggling workers though the country’s borders.

The Prosecutor General (PG’s) Office has also confirmed that a lack of legislation has meant no cases have been prosecuted against human traffickers in the Maldives at present.

“Corrupt immigration practices”

In February, a Maldivian trade union alleged that corrupt immigration practices and the use of unregulated employment agencies by private and state employers was limiting efforts to curb abuse of migrant workers and prevent illegal practices such as retaining their passports.

The Tourism Employees Association of Maldives (TEAM) claimed that while companies are not permitted to retain the passports of foreign workers, some hospitality operators – as well as unregulated third party agencies and government ministries – are still keeping employee travel documents without consent.

At the same time, a source with knowledge of the current immigration system told Minivan News that the practice of retaining passports – a long-standing habit of Maldivian employers – was a key contributor to human trafficking in the country.

“This is a common practice seen all over the world. But it creates major problems. If a foreigner wishes to go to law enforcement agencies for assistance, they will be asked to identify themselves with a passport,” the source said.

Third party agencies appeared to want to keep the passports to be able to “manipulate” foreign workers for their own financial advantage, the source explained.

Meanwhile, the Human Rights Commission of Maldives (HRCM) has accused state and private sector employers in the country of lacking consistency in their efforts to address human trafficking, preventing “real” change in controlling illegal migration.

Speaking back in February 2013, HRCM member Jeehan Mahmoud told Minivan News that despite attempts under the present government to try and introduce new legislation, the Maldives had made little progress towards improving the treatment and rights of foreign workers over the last four years.

Addressing the current scope of unregistered foreign labour, Maldives Association of Construction Industry (MACI) President Mohamed Ali Janah said an estimated 40 percent of the foreign employees in the sector were thought not to be legally registered.

Considering these numbers, Janah said he could not rule out the involvement of organised crime in certain employment agencies, which supply a large amount of foreign labour to building sites in the Maldives.

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Maldives minister slams “dubious” motives behind Avaaz boycott campaign

Deputy Tourism Minister Mohamed Maleeh Jamal has slammed what he calls the “dubious” motivations behind an Avaaz.org petition calling for tourists to boycott the Maldives in protest over the sentencing of a 15 year-old rape victim to flogging, alleging the campaign is “politically motivated”.

While accepting a need for “capacity building” in parliament and other institutions, Maleeh said tourism had been a key driver in ensuring national development and democratic reforms for the last 40 years, granting the industry “sacred” importance in the Maldives.

“People should not be doing anything to damage the industry. In Switzerland, you would not see a campaign designed to damage Swiss chocolate. Likewise you would not see a German campaign to damage their automobile industry,” he said.

The comments were made as over 1.7 million people worldwide have signed a petition on the Avaaz site aiming to target the “reputation” of the Maldives tourism industry and encourage the dropping of charges against the 15 year-old rape victim, as well as wider legal reforms to prevent similar cases.

The girl was sentenced on charges of fornication after confessing to having consensual sex with an unknown man during investigations into her alleged abuse by her stepfather. The girl is also alleged to have been abused by a number of unidentified men on her island dating back to 2009, according to sources on the local council.

The government of President Dr Mohamed Waheed has pledged to appeal the sentence given to the minor by the country’s Juvenile Court, while also reviewing local laws to enact potential reforms of the use of flogging. No time-line for such reforms has yet been set beyond the commitment to hold talks.

Democratic path

In an interview with Minivan News today, Deputy Minister Maleeh argued that over the last 40 years, the tourism industry has been an intrinsic part of not only relieving poverty nationally, but also driving the country’s democratic transition process – leading eventually to elections in 2008.

Presidential elections are now scheduled for later this year in a highly-polarised political environment that follows a controversial transfer of power in February 2012 that saw President Waheed come to power following a mutiny by sections of the police and military.

Former President Mohamed Nasheed and his opposition Maldivian Democratic Party (MDP) have alleged that his government was ousted in a “coup d’etat”.  Nasheed has maintained these claims despite the findings of a Commonwealth-backed Commission of National Inquiry (CNI).

“Chaos and anarchy”

Considering the present political landscape, Maleeh claimed Avaaz.org had been deliberately “misinformed” in a politically motivated attempt to destabilise the government and tourism industry through negative media headlines.

“By misinformed, I mean that I don’t think they have taken the government’s stand into account, the president has already spoke on the issue , as has the attorney general,” he said. “I think that in time, Avaaz will be informed of this and will even be our partners.”

Maleeh criticised the intentions behind the campaign, alleging the petition was being used for political gain, rather than focusing on the welfare of the 15 year-old girl at the centre of the sexual abuse allegations.

“I would say the motivation [behind the campaign] is dubious. The problem ultimately needs to be addressed by the judiciary and parliament, not the tourism ministry,” he said. “We are in the middle of a successful democratic transition. Killing the most important industry in the country will not give way for reforms, but chaos and anarchy.”

Maleeh claimed that when accounting for the economic significance and societal benefits of tourism to the Maldives, the industry was very fragile.

He added that the tourism industry has ensured continued national developments in “the right direction” that had helped to alleviate general poverty and improve the quality of life in the country. Maleeh pointed to the availability of consumer goods such as like branded coffees and other foods and produce as an example of the quality of life.

Maleeh added it had been tourism that helped drive democratic developments in the nation, with international parties encouraging former president Maumoon Abdul Gayoom, who served as the country’s autocratic leader for 30 years, to undertake a path towards democratic reforms.

“In the last 40 years [since the introduction of tourism]. we have listened to groups like the World Bank and the United Nations World Tourism Organization (UNWTO),” he said.

Pointing specifically to reforms that had brought a new constitution to the Maldives in 2008, Maleeh said that rather than seeking a damaging boycott, international partners like the EU, the US and Australia had in the past engaged in dialogue instead.

“We have western-educated people here. We know there are issues in parliament and with capacity building that needs to happen. But we cannot be compared to a Middle Eastern country for example,” he said. “ We are a successful transitional democracy.”

“Concerted effort”

Maleeh said that after facing the impact of negative international and domestic headlines following the controversial transfer of power last year, the country had undertaken a “concerted effort” to promote the Maldives.

“Negative news needs to be minimised as I believe that tourism should be sacred here in the Maldives. In recent years, the democratic system has helped tourism, so we encourage openness and are not afraid of media.  What we want to see is correct information being out there. There needs to be more accountability with stories proven with facts,” he said.

“As far as the tourism ministry is concerned we don’t discriminate against any media. It is only those channels who call to boycott [the industry] that we would hesitate to speak to.”

The government last year agreed a US$250,000 (MVR 3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services, as well as signing a £93,000 per month (US$150,000) contract with public relations group Ruder Finn to try and improve the country’s image internationally.

For the coming year, Maleeh added that the Maldives was again seeking similar support from private groups to engage in high-profile marketing efforts with media organisations like CNN and the BBC to try and push the Maldives unique selling points – namely “sun, sea, sand and spa”.

He added that with the expected introduction of new high-profile hotel chains to the country’s resort industry, including Louis Vuitton Moët Hennessy (LVMH), there was strong potential for positive international headlines in the media.

With a reduced promotional budget available for the coming year, Maleeh added that regardless of the allegiance of the next government, consistency needed to be seen in the country’s promotional budget to better plan future campaigns.

Accepting the potential budgetary challenges ahead, Maleeh said he believed that the Maldives tourism industry had become adept at promoting itself even with limitations, pointing to the growing importance of social media services like Twitter and Facebook to destination marketing – especially in terms of photo sharing.

“The Maldives stands at an advantage in that no one can take a bad picture here,” he said.

Addendum: Avaaz Executive Director Ricken Patel sought to justify the organisation’s petition in a subsequent comment piece published in Minivan News.

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President Waheed to form election coalition with religious conservative Adhaalath Party

President Dr Mohamed Waheed has announced plans to form a coalition between his Gaumee Ithihaad Party (GIP) and the religious conservative Adhaalath Party (AP), ahead of presidential elections scheduled for later this year.

Writing on his personal Twitter account Thursday (March 28), President Waheed welcomed the support of the  AP, while expressing hope other undisclosed parties would be making similar announcements at a later date.

The AP tweeted the same day that its council have approved the coalition with the current president ahead of the September this year.

By yesterday (March 29), the AP tweeted that it aimed to “form a large, strong coalition” including other parties in the country to try and provide stability and prosperity in the Maldives following the presidential race.

The AP, one of five parties in the country meeting a recently approved regulation requiring any registered political body to have 10,000 registered members, is part of the coalition government of President Waheed following the controversial transfer of power that brought him into office in February 2012.

Both Adhalaath and GIP do not presently have any elected members in parliament.

The religious conservative party was previously a coalition partner in the government of former President Mohamed Nasheed, later leaving the government citing concerns at what it alleged were the irreligious practices of the administration.

This led the AP in December 2011 to join then fellow opposition parties – now members of Waheed’s unity government – and a number of NGOs to gather in Male’ with thousands of people to “defend Islam”.

During the same day, Nasheed’s MDP held their own rally held at the Artificial Beach area in Male’ claiming his government would continue to practice a “tolerant form” of Islam, reminding listeners that Islam in the Maldives has traditionally been tolerant.

“We can’t achieve development by going backwards to the Stone Age or being ignorant,” Nasheed said at the time.

Shortly after coming to power in February 2012, flanked by members of the new government’s coalition, President Waheed gave a speech calling on supporters to “Be courageous; today you are all mujaheddin”.

GIP Spokesperson Abbas Adil Riza, President’s Office Media Secretary Masood Imad and President of the Adhaalath Party Sheikh Imran Abdulla were not responding to calls regarding the coalition announcement today.

Diverging opinions

Despite the agreement to cooperate between the two parties, Waheed and the AP differ in their reaction to the recent controversial sentencing of a 15 year old rape victim to 100 lashes for fornication with another man.

President Waheed’s  stated on his official Twitter account at the time: “I am saddened by the sentence of flogging handed to a minor. Govt will push for review of this position.”

The Foreign Ministry subsequently expressed “deep concern by the prosecution and the Juvenile Court’s sentence to flog a 15 year-old girl on the charges of pre-marital sex.”

“Though the flogging will be deferred until the girl turns 18, the government believes she is the victim of sexual abuse and should be treated as such by the state and the society and therefore, her rights should be fully protected. The Government is of the view that the case merits appeal. The girl is under state care and the government will facilitate and supervise her appeal of the case, via the girl’s lawyer, to ensure that justice is done and her rights are protected,” the Ministry stated.

The President’s Office also recently announced it was looking at the possibility of bringing about reform to potentially bring an end to the use of punishments like flogging in the country’s justice system.

However the Adhaalath Party has publicly endorsed the sentence, stating that the girl “deserves the punishment”, as outlined under Islamic Sharia.

The party, members of which largely dominate the Maldives’ Ministry of Islamic Affairs, stated that the sentence of flogging had not been passed against the minor for being sexually abused by her stepfather, but rather for the consensual sex to which she had confessed to having to authorities.

“The purpose of penalties like these in Islamic Sharia is to maintain order in society and to save it from sinful acts. It is not at all an act of violence. We must turn a deaf ear to the international organisations which are calling to abolish these penalties, labeling them degrading and inhumane acts or torture,” read a statement from the party.

“If such sinful activities are to become this common, the society will break down and we may become deserving of divine wrath,” the Adhaalath Party stated.

Coalition potential

Of the parties yet to announce candidates to stand during the upcoming presidential elections, Dr Hassan Saeed, Leader of the government-aligned Dhivehi Qaumee Party (DQP) and People’s Alliance MP Ahmed Nazim were not responding to calls regarding President Waheed’s announcement today.

Earlier this month, the government-aligned Dhivehi Rayithunge Party (DRP) ruled out a coalition with the Progressive Party of Maldives (PPM) ahead of elections, despite being open to collaboration with other parties.

Both the PPM and DRP serve within President Waheed’s national unity government.

The DRP has also previously ruled out a collaboration with the opposition Maldivian Democratic Party (MDP).

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