Author: Neil Merrett

Maldives without budgetary provisions to cover GMR’s US$800m compensation claim

Financial authorities in the Maldives have said no budgetary provisions presently exist to cover an estimated US$800 million in compensation being sought by Indian infrastructure group GMR after the government abruptly terminated its agreement to develop Ibrahim Nasir International Airport (INIA).

Finance Minister Abdulla Jihad told Minivan News today that no mechanism was currently budgeted should the Maldives face a multi-million US dollar bill for evicting GMR, but stressed it was not for the company to decide on any eventual payment.

GMR has said that the proposed US$800 million claim was based on its “provisional estimates” and that the company had also taken into account the Maldives’ ability to cover such payments if compensation was awarded by the Singaporean courts overseeing arbitration.

However, Jihad today played down fears that any potential fine could prove perilous for the Maldives’ economy, as well as attempts to reduce its spiralling budget deficit, stating that any possible fines would be set by the Singaporean arbitration court hearing the dispute.

“We will deal with the matter when we know the amount of compensation to be paid,” he said. “GMR cannot decide, it will be down to the court [hearing the arbitration].”

Jihad also claimed that there had been no communication between GMR and the Maldives government over compensation as the matter was presently being dealt with through arbitration.

“There has been no communication [with GMR] over the levels of compensation,” he said.

Budget battle

With the compensation case pending, the Maldives government is this month attempting to reduce its spending as it also faces calls to cover debts from its neighbours and pressure from the International Monetary Fund (IMF) to reduce a ballooning fiscal deficit and protect dwindling state reserves.

The Indian government last month requested that the Maldives repay US$100 million in treasury bond funds by February 2013 – a matter it claimed was not related to a diplomatic row over the airport dispute at the time. Local media has previously reported that state reserves could fall to just US$140 million (MVR2.2 billion) once the payments are settled.

It is amidst these budgetary challenges that GMR has said it was seeking up to US$800 million in compensation following the termination of its US$511 million concession agreement signed under the former government back in 2010.

“Preliminary estimate”

GMR’s chief Financial Officer (CFO) Sidharath Kapur told Minivan News today that the sum was a “preliminary estimate” based on a number of factors including investments made by the company, debt equity and loss of profits as a result of the contract termination.

Kapur added that on Tuesday (December 11) the company had communicated with Maldives Ministry of Finance by sending an official letter outlining its concerns that the contract had been “wrongfully” terminated without respect for the agreed procedures.

Speaking to the India-based Economic Times newspaper today, Government Spokesperson Masood Imad suggested GMR had been a victim of failing to perform proper due diligence before signing a contract with the former government – which was ousted following a police and military mutiny in February 2012.

A particular point of contention for GMR during the contract’s lifetime was an Airport Development Charge (ADC) – a US$25 fee for outgoing passengers stipulated in the concession agreement – which was blocked by the then-opposition Dhivehi Qaumee Party (DQP) in the Civil Court on the grounds that it was a tax not authorised by parliament.

Former President Nasheed’s administration chose to honour the original contract, and instructed GMR to deduct the ADC revenues from the concession fees due the government, while it sought to appeal the Civil Court ruling.

However, the Nasheed government fell in February 2012 and the opposition inherited the result of its court victory, receiving a succession of bills from the airport developer throughout 2012, despite the government’s insistence that the January 5 letter from MACL outlining the arrangement was no longer valid.

Government spokesperson Imad alleged that the ADC dispute has resulted from a lack of transparency by the former administration. “We feel the former government should have been transparent with GMR on the ADC issue,” he was quoted as telling the Economic Times today.

However, Kapur rejected the governments’ claims, stressing that its tender agreement to develop INIA had been overseen by legal and financial experts including the International Finance Corporation (IFC), a World Bank entity, as well as the certified approval from the former Attorney General Ahmed Ali Sawad.

“The IFC had clearly said that there are no further approvals required for the ADC. We were in compliance with all laws and all approvals had been taken as backed by the then attorney general of the Maldives,” he said. “Beyond that, what further due diligence could we do? Any international bidder would have taken comfort in that level of due diligence.”

With GMR’s calls for compensation currently being heard by the Singaporean judiciary, Kapur said the company believed there was a high probability it would be awarded financial remuneration to be paid by the Maldivian government.

Pointing to the verdict given by the Supreme Court in Singapore earlier this month, Kapur said that in allowing the Maldives government to expropriate the airport, the provision of compensation was required to be given to the company.

“What the appellate court has said is that appropriate compensation must be paid.  [The Maldives government] have the right to do as they wish as long as compensation is paid, this is binding on the Maldivian government,” he said.

While expecting a favourable outcome in its calls for compensation, Kapur added that the company was aware of the Maldives’ present financial vulnerabilities as well as its ability to cover any such payments.

“The possibility of getting compensation is high, but [the Maldives government’s] ability to pay is unknown,” he said.

Kapur added that in other international tribunal cases such as this, there were a number of methods that a court can use to ensure compensation is implemented. However, he said it was still too early to speculate on what form these methods may take in the case of the INIA dispute.

“Specific mechanisms”

Meanwhile, in a letter sent to the Maldives’ Ministry of Finance and Treasury, Andrew Harrison, CEO of the GMR Male International Airport Limited (GMIAL) that ran INIA under the agreement, reiterated the company’s argument that there had been “specific mechanisms” established to terminate the contract under specified circumstances.

“There is no suggestion that any of the circumstances arose,” the letter was reported to have read, according to the Economic Times.

Harrison was also said to have claimed that despite the present government’s stand that the contract was “void ab initio” or invalid from the beginning, the government “also warranted and specifically represented that the Concession Agreement was valid, legal and binding.”

“Further, as part of the closing of the financial transaction on 28 December 2010, the then Attorney General of the Maldives rendered a formal legal opinion confirming that the Concession Agreement was lawful,” the letter was said to state.

Minivan News was trying to obtain a copy of the letter at the time of press.

Smooth takeover

Management of INIA was taken over by the state-owned  Maldives Airports Company Ltd (MACL) on Saturday (December 8 ) after the Singaporean Supreme Court had overturned an injunction blocking the Maldivian government from voiding its concession agreement with GMR.

Both GMR and the MACL have this week praised the management handover as “going smoothly” as the government began planning for the future of INIA beyond the aborted privatisation plan. The termination of GMR’s contract officially ended the largest single foreign investment project in the country’s history.

On Tuesday (December 11), the Maldives cabinet recommended the formation of a government-owned company to run Ibrahim Nasir International Airport (INIA)

Looking towards the future of the airport, the cabinet recommended that Male’ International Airport Ltd be formed with 100 percent government shares, while claiming full authority to operate and develop INIA through a special contract with the Maldives Airports Company Ltd (MACL).

Speaking to Indian media earlier this week, President Dr Mohamed Waheed Hassan Manik has dismissed suggestions that China urged the Maldives to push out the Indian company.

“The only significant cooperation we have with China at this time is through development assistance… like building the museum, housing projects. I don’t think India should worry about it at all,” Waheed was quoted as saying in the Hindu newspaper.

The claims were made as Maldives Defence Minister Colonel (Retired) Mohamed Nazim departed to China for a five-day official visit said to be focused on securing its assistance in developing the Maldivian military.

The President had claimed that the Maldives was presently “not looking for a foreign investor” to develop the international airport, with the government announcing that it was undecided on whether any new privatisation agreement would be sought in future.

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“Pathetic state of judiciary”, religious intolerance Maldives’ major human rights failures: Dr Shaheed

Former Foreign Minister and UN Special Rapporteur on Human Rights in Iran Dr Ahmed Shaheed has welcomed the Maldives’ selection as a Vice President of the UN’s Human Rights Council for 2013, stating that the nomination can help strengthen society against domestic abuses.

Speaking to Minivan News by e-mail today, Dr Shaheed said significant human rights concerns remained in the Maldives, including the “pathetic state of the judiciary”, lack of an educational focus on rights, and little scope for “informed discussion” on religious freedom.

However, Dr Shaheed added that the Maldives’ election to the council reflected the strong reputation of its diplomats over the last six years in “championing” human rights causes, even despite developments such as February’s controversial transfer of power that saw a new government installed following a police and military mutiny.

“If you look at the Maldives’ voting record in Geneva and in the Third Committee in New York, it is as if there has been no change in the government in Male’. The Maldives still supports country-specific mandates, country-specific resolutions, and progressive positions in human rights debates, including on issues of defamation of religion,” he said.

“The Maldives will continue to get challenged in places like the Human Rights Committee but in the political councils of the world, the spokespersons for the Maldives continue to be professional diplomats, and they are doing a good job to limit the influence of radical Islamists on foreign policy.”

News of the Maldives’ election to the Human Rights Council was broken yesterday by the Reuters news agency, which noted that the country had the same day been criticised for its stance on banning religious freedom in a report compiled by the International Humanist and Ethical Union (IHEU) NGO.

The IHEU, which describes itself as an “umbrella organisation embracing Humanist, atheist, rationalist, secularist” organisations around the world, yesterday published its report, ‘Freedom of Thought 2012’ , which details international examples of discrimination against non-religious people.

The report, which was welcomed by UN Special Investigator on Freedom of Religion and Belief Heiner Bielefeldt, concluded that the Maldives did not prohibit discrimination on a religious basis, while also making practising Sunni Islam compulsory for Maldivian citizens wishing to vote or stand for office.

Pointing to prominent cases of discrimination, the IHEU highlighted the case of 37 year-old Mohamed Nazim, who in 2010 faced public calls for his execution after standing in front of a crowd of 11,000 people in Male’ and declaring himself “Maldivian and not a Muslim”.

After two days of religious counselling in police custody, Nazim repented before television cameras at an Islamic Ministry press conference and gave Shahada – the Muslim testimony of belief.

The report also highlighted the case of 25 year-old air traffic controller Ismail Mohamed Didi, who was found hanged from the control tower of Male’ International Airport in an apparent suicide.  He had previously sought asylum in the UK for fear of persecution over his stated lack of religious belief.

“Ismail Mohamed Didi faced the same choice as Mohamed Nazim: believe or die. He chose death,” the IHEU stated.

Speaking to Minivan News, IHEU Communications Officer Bob Churchill said the NGO did have some concerns over the Maldives’ election to the Human Rights Council considering its attitudes to non-Muslims and non religious peoples.

However,  Churchill added that the Maldives was not the first country to hold such a position in the UN council while also having questions over its own work on human rights abuses.

The IHEU added that the report has been put together in order to stand as a reference for alleged abuses of non-religious peoples on countries all over the world.

Churchill suggested that the high-profile focus may help “shine a light” on wider abuses occurring in the country and allowing for some form of redress.

However, in the case of the Maldives, where the country’s religious ideals are enshrined in its constitution, Churchill accepted that effecting any sort of change would be much harder.

“However, just because an issue is a sovereign matter and has a vocal majority it does not mean that people are not suffering,” he said. “People at present are having to hide their beliefs for fear of oppression.”

“Good reputation”

Despite the concerns of the IHEU, Dr Shaheed said he was optimistic about the Maldives’ new role on the council.

“The Maldives [UN] delegation still enjoys a good reputation in Geneva and is still playing a very constructive role. I believe the position would militate in favour of improving the domestic human rights situation,” he said. “I would like to congratulate Ambassador Iruthisham [Adam] and her team for this fine achievement.”

Addressing the issue of freedom of religion in the Maldives, which he stressed was a fundamental human right, Dr Shaheed said that any nation choosing to impose any particular faith on its people or discriminate along the same lines would face “stiff international opposition”.

“A number of NGOs have been raising the issue of religious intolerance in the Maldives, and the notion of sovereignty does not trump human rights obligations. There is indeed scope for informed discussion in the Maldives on religious freedom,” he said.

“Perhaps a good place to start would be to lift the ban on the book co-authored by Dr Hassan Saeed – the current Special Advisor to President Waheed – which argues that there is no apostasy in Islam. This is a position that is upheld by a growing number of reputable scholars in the Islamic world and elsewhere.”

“Biggest breakthroughs”

Beyond the issue of religion, Dr Shaheed claimed that the Maldives had over the last decade pressed ahead with a number of significant developments in bringing the country in line with human rights regulations.

“The biggest breakthroughs, in my view, were the ratification of the core international human rights treaties, and the establishment of an independent human rights commission, as well as freedom of the press, and the separation of powers,” he said, but emphasised that there remained room for improvement.

“The major failures include the pathetic state of the judiciary, which is not only corrupt, but also coming under the influence of radical Islam, even to the extent of violating codified laws of the Maldives and clear international obligations,” Dr Shaheed added.

“Disregard for rule of law has also meant that a culture of impunity is deeply entrenched, rendering many of the human rights of the people meaningless. It is also very disappointing that respect for human rights has not been made mainstream in our education system, because human rights safeguards are not only about litigation and legislation, but also about ideas and values, which are formed and transmitted through the education system.”

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Public must question government and Majlis representatives: UN resident coordinator

UN Resident Coordinator for the Maldives Andrew Cox has called on the public to be better informed of issues facing their communities, while listening “to different voices and views”, questioning elected representatives and making their voice “count” in a statement issued to mark Human Rights Day.

According to the UN, this year’s Human Rights Day is focused mainly on the Universal Declaration of Human Rights, which is said to outline provisions on freedoms of association, expression and opinion, as well allowing for participation within government either individually or through an elected representative.

Cox’s statement emphasised that millions of people worldwide had exercised these freedoms by taking to the streets, not just in trying to express their thoughts and aspirations, but to make sure their voice counted.

“Human rights are claims and expectations of every man, woman and child that their governments not interfere in some kinds of activities (respect); safeguard them from abuse (protect); and provide basic conditions to enable everyone to achieve their greatest potential (fulfill),” he stated.

Taking the Maldives as an example, Cox stated that like many democratic countries worldwide, it was vital that everyone was allowed to have a voice without exception – including women, persons with disabilities, children, and other vulnerable groups and marginalised communities.

“Every Maldivian has the right to have their voice heard and to have a role in making decisions that shape their local communities, as well as shape the Maldives into the kind of country they want to live in,” he said.

“As we approach an important election year in this country’s fragile path of democratic progress and development, I hope all Maldivians will make your voices count on the issues facing the well-being of your communities, especially women. Not realizing the full potential of women in public life is simply a loss that the country cannot afford at this critical stage.”

Cox also called on the public to better inform themselves of key issues affecting their lives and communities, as well as listening to differing opinions in order to be better able to held elected representatives on both sides of the country’s political divide to account.

“It’s your right,” he concluded.

Acting Minister of Gender, Family and Human Rights Dr Mariyam Shakeela, who also serves as Minister of Energy and Environment, was unavailable for comment when contacted by Minivan News today.

Her predecessor, Dhiyana Saeed, was sacked last month, shortly after her husband, MP Abdulla Jabir challenged the legitimacy of President Mohamed Waheed Hassan’s government, alleging the country was being run as a police state.

Saeed had previously alleged that the arrest of Jabir on an island along with senior figures from the opposition Maldivian Democratic Party (MDP) over alleged possession of drugs and alcohol had been “politically motivated”.

MDP criticism

Last month, the UN in the Maldives came under strong criticism from the opposition Maldivian Democratic Party (MDP), which claimed the local office of the NGO had remained “shamefully silent” over alleged human rights abuses flagged by other organisations.

“While the IPU, CMAG, Canada, the Human Rights Committee, the EU and certain international NGOs such as Amnesty International and the International Federation for Human Rights have expressed varying degrees of alarm at the Maldives’ backsliding on democracy and human rights, others including the UN Resident Coordinator and the Office of the High Commissioner for Human Rights have remained shamefully silent,” MDP spokesperson Hamid Abdul Ghafoor claimed at the time. “To remain silent in the face of injustice is to be an accomplice to that injustice.”

The Office of the UN Resident Coordinator later responded to the MDP’s allegations by defending its activity in the Maldives and reiterating its “strict impartiality toward political parties”.

“As a trusted partner, the UN has spoken repeatedly in public and in private over the course of several years and three governments on democracy, development, and human rights. Most recently, the secretary-general spoke of the need for political dialogue, national reconciliation, and respect for the constitution. He called on all parties to exercise maximum cooperation and restraint,” the NGO stated.

Back in July 2012, a Maldivian government delegation sought to defend the Maldives’ human rights record and commitment to the International Covenant on Civil and Political Rights (ICCPR) before the UN Human Rights Committee (UNHRC).

The delegation was questioned on a number of specific issues relating to alleged torture of prisoners, the use of judicial flogging as a punishment, freedom of religion – which is outlawed in the country – the death penalty and the conduct of the nation’s judiciary.

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Maldives airport operator praises “smooth” handover as government remains undecided on INIA future

The Maldives Airports Company Limited (MACL) has said there has been no disruption to services at Ibrahim Nasir International Airport (INIA) after it resumed management of the site from infrastructure group GMR on Saturday (December 8 )  – a claim backed by several resort operators and airlines.

Indian-based GMR yesterday handed INIA over to the state-owned Maldives Airports Company Limited (MACL) after the Maldivian government had voided its concession agreement, giving the company seven days to leave the country.

The sudden eviction of the developer – which won a 25 year concession under the former government to manage and upgrade the airport – scraps the project, which at US$511 million was the single largest foreign investment in the Maldives.

Upon reclaiming management of the airport yesterday, MACL Managing Director Mohamed Ibrahim told Minivan News that the handover had gone “smoothly”, with INIA continuing to operate over the last 24 hours as it had done under GMR.

“We have the same staff and equipment here as before [the handover]. Two years back we handed over the same equipment to GMR and there has been no discontinuation of service,” he said.

As part the GMR’s concession agreement, aside from developing an entirely new airport terminal building, the company had also undertaken work to renovate and update INIA’s existing terminal structures and operations – including retail and baggage handling facilities.

With MACL once again managing the site, a senior services manager for one of the largest airlines presently flying to the Maldives told Minivan News that it had experienced “no issues at all” in terms of operating in and out of the country since the handover.

Similarly, the general manager of a resort in Male Atoll also stressed that there had been no disruptions to service.

“Certainly so far there has been no impacts on our arrivals or departures, things seem to have gone smoothly,” the general manager said.

Future direction

When contacted about the future for the airport post-GMR, the President’s Office today told Minivan News that no decision had yet been taken on when – or if – the country would look to tender a new privatisation agreement for the site.

“Nothing of that kind has been decided,” said President’s Office Media Secretary Masood Imad.

Asked as to what action would be taken over the existing structures put in place by GMR before work on its proposed new terminal was halted over a permit dispute earlier this year, Masood questioned why the President’s Office had been contacted over the technical “nitty gritty” of the airport.

“We don’t micromanage all aspects of the airport, these are questions for the Transport Ministry,” he said.

Development conference calls

Meanwhile, the religious Adhaalath Party, which forms part of the government coalition of President Dr Mohamed Waheed Hassan, today called for a national level conference to be held on how INIA should be developed and operated in future.

Speaking at a press conference, party President Sheikh Imran Abdullah told local media that the airport development should not be delayed, calling for a conference to be held to air opinions on how best to proceed in future – not ruling out foreign expertise if needed.

“All people involved in this sector should come together soon for a national conference, the result of which should be a vision of how the airport should be operated in the future,” he was quoted by Sun Online.

Sheikh Imran was not responding to calls from Minivan News at time of press.

In recent months, the Adhaalath Party has been among several key government-aligned parties working to oppose the GMR agreement.

Sheikh Imran has previously predicted there would be “some unrest and damage” should the GMR deal be annulled, but nonetheless urged people to come out and support the calls for nationalisation.  The GMR deal was a 25 year concession agreement, with the airport still belonging to the government.

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Divers continue search for Chinese tourist missing from Maldives resort

Coastguard divers are trying to locate a Chinese tourist reported missing from the Bandos Island Resort and Spa property since Thursday (December 6).

Maldives National Defence Force (MNDF) Spokesperson Colonel Abdul Raheem said that a diving team was conducting further searches of the area surrounding the resort to try and locate the tourist, identified as a female Chinese national who had been staying at the resort.

When contacted by Minivan News today, a spokesperson for Bandos Island Resort and Spa said it would not be making any comments on the matter at present, asking to be contacted in 24 hours time.

“It is not possible for us to comment today, our manager is not on duty,” said a representative for the property’s marketing department said.

Police Spokesperson Sub-Inspector Hassan Haneef was not responding to calls from Minivan News at the time of press.

Boat collision

Details of the search operation were announced after a male tourist from Finland was killed last Sunday (December 2) when an express speedboat service to the island of Hulhumale’ collided with another vessel belonging to the Bandos Island Resort and Spa.  Nine local people were also injured in the collision.

The Honorary Consul of Finland in the Maldives confirmed this week that it was assisting the resort property in working to arrange repatriation of the tourist, while investigations by police and transport authorities continue into the matter.

Following the collision on Sunday, a spokesperson for the Maldives Transport and Contracting Company (MTCC) said it had temporarily suspended its express speedboat service between Hulhumale’ and Male’ while it reviewed guest safety procedures.

“We believe we need to do some work on safety,” a company spokesperson told Minivan News. “We will be working with transport authorities, the Maldives National Defence Force (MNDF) and the police on the matter and will resume the services after that.” Dhoni services will continue to run between Male’ and Hulhumale’ as normal, the MTCC added yesterday.

Danger awareness

Over the last 12 months, tourist deaths – usually while snorkelling – have been disproportionately higher among Chinese tourists, which now account for a majority of Maldives tourist arrivals even compared to traditional European markets.

Mohamed Ibrahim ‘Sim’ from the Maldives Association of Tourism Industry (MATI) previously told Minivan News that Chinese guests in particular needed to be made more aware of the dangers of snorkelling in the Maldives, “because it is a totally different environment than what they are used to.”

Back in October, police said that a 26 year-old male from China staying at Alif Dhaal Atoll Vakafaru resort was suspected to have died in a snorkelling accident at the property.

Meanwhile in January, two Chinese nationals on vacation at separate island resorts in the Maldives were found dead within 48 hours of each other.  Authorities said they suspected both incidents were the result of snorkelling accidents.

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Maldives omitted from 2012 global corruption index due to “insufficient data”

The Maldives has been omitted from Transparency International’s global Corruption Perception Index (CPI) for 2012 after it failed to receive required data from one of the three sources used to determine how it fares against other nations in terms of transparency.

The CPI ranks 176 nations in terms of their perceived corruption. States such as Denmark and Singapore rate at the top, while nations such as Zimbabwe and Somalia fall at the bottom of the index.

Last year the Maldives found itself placed 134 on the CPI, a slight improvement on 2010, despite continued fears of a “systemic failure to address corruption” by Transparency Maldives, the NGO’s local affiliate.

Transparency Maldives Project Director Aiman Rasheed told Minivan News that the Maldives’ failure to be included within the 2012 CPI “would raise a few eyebrows” internationally.

However Rasheed said that he did not expect there to be a significant detrimental impact in how the nation was already perceived by financiers, investors and other development groups.

“We have been included [on the CPI] for the last few years in 2011, 2010 and 2009, so I don’t think the ranking for this year will have been a big departure from these,” he said, adding that the challenges facing the country as a result of corruption still existed in 2012.

Rasheed said the CPI was a composite index based on information from a number of sources including the World Bank. He explained that of the three sources on which the Maldives’ CPI position was determined, the Asia Development Bank (ADB) had this year not supplied the required information needed by Transparency Maldives to compile its findings.

“We don’t have any reason for why this has happened and I would not wish to speculate,” he said.

However, a source with knowledge of the matter told Minivan News on condition of anonymity that there could be a number of reasons for the ADB failing to provide information on the Maldives.  These reasons were said to include a possible failure by the government over the last 12 months to provide statistics and figures to the ADB.

The ADB was not responding to calls from Minivan News at time of press.

Questioned as to how the country’s omission from the 2012 index would reflect on Transparency Maldives’ own work, Project Director Rasheed said it would be vital to clearly communicate with international groups the reasons for not being included this year.

“It does present us with some challenges. We have to hope people understand that there was insufficient information received,” he said.

Transparency Maldives last year alleged that the Maldives continued to be rated as having more perceived corruption that many other neighbouring countries, a situation linked to what it claimed was a lack of accountability and transparency across the country’s judiciary, parliament and members of the executive. The NGO maintained that last December that there remained a “systemic failure” within the national mechanisms established to bring accountability to the branches of state.

Just last month, a senior legal official who served under the current and former administrations has claimed the country’s legal system is wide open to corruption by allowing individual judges to schedule court hearings at their whim.

The legal figure, who has been involved in some of the country’s highest profile cases heard in recent years, told Minivan News it was “quite evident” that the lack of a centralised system for scheduling legal hearings was not only resulting in massive inefficiency, but also allowing for corruption within the country’s court system.

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State Environment Minister plays down budget dispute, alleges media “misunderstanding”

State Minister for Environment and Energy Abdul Matheen Mohamed has played down a report that his department yesterday slammed the proposed state budget for neglecting the “fundamental rights” of Maldivians, claiming there had been a “misunderstanding” with local media.

The Sun Online news agency yesterday reported that senior environment ministry officials had raised fears before the Majlis’ National Development Committee that it had been allotted an insufficient budget for proposed water and sewerage projects needed across the country.

Environment Ministry Permanent Secretary Ahmed Saleem was quoted as claiming that some 15 projects proposed by his department had been excluded from the budget is being debated within parliament this week. These projects were said to deal with issues including waste management, as well as supplying water and sewerage systems to more islands around the Maldives.

Saleem was reported as saying that complaints over the matter had also been sent to Finance Minister Abdulla Jihad, who had in turn had responded that any amendments to the budget would have to be made through the Majlis with support of MPs.

Both finance chief  Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at the time of press.

Speaking following yesterday’s meeting with the National Development Committee, Permanent Secretary Matheen claimed that Saleem’s reported comments had been the result of a “misunderstanding” by its author.  He alleged that the journalist had focused on a few points of a long meeting with the committee.

While Matheen said that there were some “concerns” about the present status of the budget allocated to the Environment Ministry, he that alleged the article’s conclusions were “very misleading”.

“The budget issue is very sensitive right now, so i’m afraid I cannot make any comments about the matter at present,” he said. “The islands are all asking what they will have from the ministry.”

Matheen added that he was presently unable to comment on the exact nature of the “misunderstanding” contained within the Sun Online report due to the fact discussions on finalising the state budget were ongoing.

Jumhoree Party (JP) MP Hassan Adil, a member of the National Development Committee, was unavailable for comment when contacted on the challenges in trying to balance ministry expenditure in the current economic climate, asking Minivan News to call this evening. However, Adil was not answering calls at the time of press.

Budget discussion

Presenting the budget to parliament last week, Finance Minister Jihad explained that next year’s budget deficit was to be financed with MVR 971 million (US$62 million) as budget support and MVR 1.3 billion (US$84 million) from Treasury bill (T-bill) sales.

However, as debate on the budget commenced yesterday amidst, regularly coming to a halt due to frequent loss of quorum – most MPs complained of the lack of funds allocated for development projects in their constituencies.  these projects included developments such as harbours, water and sanitation systems, additional classrooms and upgrades to health centres.

Meanwhile,  it was revealed last week that the proposed budget for defence expenditure for 2013 was found to be 14 percent higher than the funds allocated during 2012.

A total of MVR 930.9 million (US$60.3 million) was proposed for defence expenditure, which amounts to 5.5 percent of the total budget.

Balance of payments

With the Majlis currently contemplating the 2013 budget, an International Monetary Fund (IMF) mission to the Maldives last month noted that a ballooning fiscal deficit had “implied a rise in the public debt ratio, which now stands at over 80 percent of GDP.

According to the organisation, these developments also helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on MMA (Maldives Monetary Authority) reserves.”

The IMF forecast for the current account deficit was “nearly 30 percent of GDP this year.”

“Gross international reserves at the MMA have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” the IMF mission warned.

The mission recommended formulating “a realistic and prudent budget for 2013″ to rein in the fiscal deficit, suggesting hiking taxes and “selectively” reversing import duty reductions.

According to an overview of the economy presented by the Finance Ministry along with the state budget (Dhivehi) proposed to parliament last week, the current account deficit in 2012 was expected to be 27 percent of GDP.

Water shortages

Following water shortages that authorities said affected over 100 inhabited islands back in May, Addu City Mayor Abdulla Sodig at the time claimed financial support was the key challenge in ensuring sufficient supplies of drinking water to the public, even with the assistance of local resorts and the Maldives National Defence Force (MNDF).

Minivan News reported back in April that in the country’s southerly Addu Atoll, an estimated 90 percent of the local population were reliant on rainfall to bolster their drinking water supplies.

Numerous islands in the atoll are said to experience severe supply issues for drinking water annually as a result.

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Maldives resort arranging repatriation of Finnish tourist killed in speedboat collision

The body of a Finnish tourist killed this week in a speedboat collision near to Male’ will be repatriated “as soon as possible”, the Honorary Consul of Finland in the Maldives has said.

An as yet unidentified male from Finland, who was said to be holidaying in the country with his wife, was killed after an express speedboat service to the island of Hulhumale’ collided with another vessel belonging to the Bandos Island Resort and Spa on Sunday (December 2).

Nine local people were also injured in the collision.  One of the injured – a 29 year-old woman – suffered a severe head injury that was since said to have improved, according to authorities.

A spokesperson for the honorary consul confirmed to Minivan News that its representatives had met with the wife of the deceased and were presently trying to assist the resort in which the couple had been staying with arrangements to return the body home.

The spokesperson said that the consulate was unable to provide any information on the exact cause of death, adding that it was waiting on the details from an ongoing police investigation.

Local media, citing police sources, reported yesterday that the Finnish national had been thrown overboard following the collision and was said to have been found dead when retrieved from the water.

Police Spokesperson Sub-Inspector Hassan Ahneef was unable to clarify the reports, claiming that investigations were continuing into the matter.

Following the collision on Sunday, a spokesperson for the Maldives Transport and Contracting Company (MTCC) said it had temporarily suspended its express speedboat service between Hulhumale’ and Male’ while it reviewed guest safety procedures.

“We believe we need to do some work on safety,” a company spokesperson told Minivan News. “We will be working with transport authorities, the Maldives National Defence Force (MNDF) and the police on the matter and will resume the services after that.” Dhoni services will continue to run between Male’ and Hulhumale’ as normal, the MTCC added yesterday.

When contacted today, the MTCC said it would be issuing a statement on the matter once the details of its own internal investigation and the findings of the police has been completed.

Meanwhile, Bandos Island Resort and Spa, which operated the other speedboat involved in the collision, said it was “not in a situation to discuss the incident” until police have completed their investigations.

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DRP plays down warnings of political violence, but concerned over parliamentary “climate of fear”

The government-aligned Dhivehi Rayyithunge Party (DRP) has claimed that “bullying” by front-line activists of its coalition partners has created a “climate of fear” not conducive to holding “free and fair” votes in the People’s Majlis on key upcoming matters.

Speaking to Minvain News, DRP Deputy Leader Ibrahim Shareef stopped short of backing claims by the opposition Maldivian Democratic Party (MDP) concerning “threats of political violence against their lives and property by rivals”, believing the government was not directly involved in such acts.

However, Shareef claimed that rhetoric by front-line supporters of fellow government-aligned supporters like the Progressive Party of Maldives (PPM) had affected its decision yesterday to support a secret vote for a no confidence motion against President Dr Mohamed Waheed Hassan.

Other senior government figures are also set to face no-confidence motions in the next few weeks, including present Home Minister Dr Mohamed Jameel Ahmed, who today dismissed the MDP’s allegations as a politically motivated attempt to try and “paralyse” the running of the government.

“Such allegations are purely politically motivated and [serve] to cover up [the MDP’s] efforts to bring government to a halt. I do not believe that [the MP’s] allegation have anything to do with a threat of violence, rather, some members assert it as a cover up to hide their attempt to paralyse government,” he told Minivan News by SMS. “The state has already offered security to all members of the parliament.”

The MDP’s parliamentary group visited the Indian High Commission in Male’ yesterday to register concerns over alleged political violence facing MPs. The visit was made of ahead of its attempts to pursue no confidence motions against President Waheed and his deputy, Mohamed Waheed Deen.

Parliament voted yesterday 41-34 to approve amendments to the parliamentary rules of procedure to conduct no-confidence votes to impeach the President and remove cabinet members through secret ballot.  The vote passed after a similar proposition was narrowly defeated 39-34  last month.

Meeting with Indian high Commissioner D M Mulay yesterday, the MDP said it had been given assurances that its concerns of MPs facing violence towards themselves and their property had been forwarded to the Indian government.

India is itself presently involved in a diplomatic dispute with the Maldives over the government’s decision to terminate an US$511m contract signed with India-based Infrastructure group and reclaim the site despite an injunction from the High Court of Singapore.

“Prior to the motion to make the ballot for confidence motions secret, leaders of alleged usurper President Waheed’s political supporters, including fundamentalist Islamists with extremist intentions, had made a number of threats against MPs who would dare vote against the alleged usurper government,” the MDP claimed in a statement.

“In this regard, Adhaalath Party President Sheikh Imran Abdulla threatened physical force against MPs publicly saying that they would ‘chase and pursue MPs on the roads’.“

Registering its concerns with the Indian High Commission, the party alleged that MPs had also been targeted with violent acts including “baton beatings” and “surprise raids of their privacy”.

The MDP also raised the issue of the murder of PPM MP Dr Afraasheem Ali, who it claimed had allegedly been murdered for his “moderate religious views” and been previously threatened the government-aligned Adhalaath Party.

However, investigations are continuing into Dr Afrasheems death, with police having not yet officially confirmed any motive behind the murder.

The Maldives Police Service today refused to comment on media reports concerning the arrest of Abdulla Jaavid, son in law of MDP Chairperson Reeko Moosa Manik, in connection with the investigations into Dr Afrasheem’s murder.

Police Spokesperson Sub Inspector Hassan Haneef said he had no comment on the matter, adding that police were holding a press conference this afternoon.

Responding to the MDP’s allegations about increased political violence against MPs, DRP Deputy Ibrahim Shareef said that there was a large amount of “confusion” within the political arena at the moment. However, Shareef said he did not believe the government of President Waheed was directly attempting to “bully” MPs over how they chose to vote on key issues.

“I do not believe President Waheed or his government has such a plan,” he claimed. “There are of course threats of violence taking place on the streets right now.”

Shareef criticised both the MDP and PPM – the majority and minority representatives in parliament – for what he alleged were their use of tactics such as “activist” methods and violence to try and influence MP voting.

“We are a new democracy and people seem to believe that violence is part of the democratic way, they simply don’t believe they are acting in an unusual way,” he claimed.

Shareef maintained that recent rhetoric from some government-aligned parties towards parliament was tantamount to bullying, which he said had been the reason behind the party’s decision to encourage its MP to back a secret ballot against removing the president from office.

“Right now, we are under tremendous pressure and have sacrificed a lot. Under this bullying, parliament cannot conduct a free and fair vote, “ he claimed, pointing to rhetoric from some members of the PPM and other parties regarding parliament’s conduct and voting.

“Distrust”

Shareef also slammed the partisan nature of media in the Maldives for furthering to create distrust among the public over the work of MPs and “poisoning” the atmosphere in parliament.

Despite supporting the push for secret voting, Shareef said he hoped such votes would not become the normal course of procedure for parliament.

“[Secret ballots] should not be the norm, but in the current climate of fear we are seeing, this is an emergency situation,” he said. “We would of course prefer open votes, and I hope that [secret ballots] are only a temporary measure.”

Parliamentary Speaker Abdulla Shahid, PA MP Ahmed Nazim, and PPM MP and Spokesperson Ahmed Mahlouf were not responding to calls at time of press.

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