Author: Neil Merrett

Supreme Court demands “free and fair” polls, while EC states no changes to voter registry

Download an English translation of the Supreme Court verdict

The Elections Commission (EC) has said no changes will be made to the voter registry for this month’s presidential election, following a Supreme Court order issued yesterday (September 2) demanding all institutions ensure free and fair polls.

Despite some political parties standing in the election having raised  several concerns over about the EC’s ability to oversee free and fair polls, the commission today stressed that its registry and schedule for Saturday’s voting was going forward as planned with international and local monitors poised to monitor proceedings.

The Supreme Court yesterday ordered all relevant authorities ensure a free and fair presidential election on Saturday (September 7), with the EC remaining duty bound to address any possible errors regarding details on the voter registry.

The order was made in response to a case filed by a senior Progressive Party of Maldives (PPM) member Ahmed Zaneen Adam questioning the EC’s capabilities to oversee a free vote.

Zaneen was today quoted in Sun Online as claiming that an additional 10,000 eligible voters would now be able added to the final electoral register without having to re-register with the EC as a result of the Supreme Court order.

PPM Mp Ahmed Nihan and vice presidential candidate Dr Mohamed Jameel Ahmed were not responding to requests for information at time of press.

No amendments

EC President Fuwad Thowfeek told Minivan News that in line with the Supreme Court’s ruling, the commission was committed to following electoral regulations but stressed that no amendments would be made to the final registry.

Thowfeek added that he had no knowledge of the additional 10,000 people wishing to vote in the upcoming poll, as referred to by Zaneen in local media.

“We have not been asked to make any changes to the [voter registry] and I believe the 10,000 people he mentioned are [Zaneen’s] own opinion. The voter list has now been finalised,” he said. “The Supreme Court has asked us to follow the laws on holding an election and this is what we are doing.”

Thowfeek added that the election was moving ahead as scheduled with ballot boxes and other necessary equipment including emergency lights, ink and paper all being taken to polling booths across the country in preparation for voting.

Alongside to the voter registry, the EC said it would also be working to keep pens provided at polling booth’s “safe” after the PPM and Jumhoree Party (JP) expressed concern this week over the possible use of ‘disappearing-ink pens’ to adversely alter the outcome of the election.

Thowfeek reiterated that while the EC would be providing voters with standard ballpoint pens at polling booths, voters concerned over the use of invisible ink could bring their own stationery to vote.

“Actually, it was a PPM member who showed one of these [invisible ink] pens to the media. This is the only one we have seen,” he said.

Thowfeek added that although pens inside poll booths will be monitored in order to try and prevent any tampering, he added that the public were requested not to accept any pens from people outside the polling booths.

“We have said that it may be best for voters to bring their own pen,” he added.

Thowfeek said that with hundreds of international and local observers overseeing Saturday’s vote representing NGOs, political parties and other institutions, the EC would be requesting that only one representative per group be allowed into the polling area at a time.

He stressed that all observers would be forbidden from touching ballot boxes or papers.

However, Thowfeek said that registered observers would be able to request that election officials address any concerns about vote counting once polls had closed on Saturday.

“They can for instance request to slow down the count if it is being done too quickly,” he said.

Download an English translation of the Supreme Court verdict

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Government seeking “longer-term” finance to plug revenue shortfall as 2013 sales of T-bills double

The government has said it hopes to secure longer-term financing to plug a shortfall in annual revenue that has seen the number of 28-day Treasury Bills (T-bills) sold by the state almost double in July 2013, compared to the same period last year.

According to the Maldives Monetary Authority (MMA) monthly review for August 2013, sales of T-bills for July 2013 has risen by 95 percent year on year.

The MMA stated that there had been a 163 percent in 28 day T-bills by July 2013 compared to the same time last year, despite sales of T-bills with a maximum maturation period of three month and six months declining by 63 percent and 83 percent respectively. Sales of T-bills were up 35 percent for July 2013 over the previous month, according to the MMA’s figures.

T-bills are sold by governments all over the world as a short-term debt obligation backed by sovereign states. In the Maldives, they have a maximum maturity of six months, in which time they must be repaid.

Budget issues

Finance Minister Abdulla Jihad told Minivan News this week that the state’s increased reliance on T-bills between July 2012 and July 2013 reflected the current difficulties faced by the government in trying to raise budgeted revenue during the period.

He added that with only “a few people” in the private sector were interested in purchasing the short-term debt obligation, T-bills has been sold as part of wider investments made by the state through the country’s pension fund.

Jihad stressed that although there had not been an increase in state expenditure over the last twelve months, the increased reliance on T-bills by the state arose partly from having to repay US$100 million in treasury bonds to the Indian government by February 2013.

He also raised concerns over a lack of parliamentary approval for numerous revenue raising measures.

Parliament in April rejected government-sponsored legislation to raise the airport service charge to US$30, which was among a raft of measures proposed by the Finance Ministry in the estimated 2013 budget to raise MVR 1.8 billion (US$116 million) in new income.

Other proposed measures include hiking Tourism Goods and Services Tax (T-GST) to 15 percent from July 2013 onward, leasing 14 islands for resort development, introducing GST for telecom services as well as oil, and “selectively” reversing import duty reductions.

Without such measures introduced, Jihad said that the Maldives had relied on 28 day T-bills, which were being sold as a means to “roll over” debt one month at a time.

“We are trying to have banks get longer-term finance such as T-bills at present,” he said.

According to the MMA, the Maldives fiscal deficit for 2013 was estimated to have fallen from MVR 4.3 billion or 13 percent of national GDP in 2012 to MVR1.3 billion in 2013 – four percent of current GDP.

A total of 62 percent of the current deficit – which reflects the total amount of government expenditure that exceeds its earnings – is expected to be covered through foreign financing. The remaining 38 percent will be covered through T-bills and “other means,” added the financial report.

The findings have been met with criticism from the opposition Maldivian Democratic Party (MDP), which has questioned why there had been an increased reliance on short-term financing through T-bills considering total state revenue rose 16 percent over the last 12 months based on MMA findings.

Mahmoud Razee, former Economic Development Minister under the previous government, claimed that it was important to understand that T-bills should only be used by the state to help cover its operational expenses, rather than serve as a long-term means of financing.

“With income tax revenue having increased according to the Maldives Inland Revenue Authority (MIRA), why have [T-bill sales] gone up? Under the MDP government we were using T-bills to meet our cash flow,” he said. “This had nothing to do with the fiscal deficit.”

Razee argued that while the former government had itself sought foreign loans to balance the financial deficit while in power, the administration of former President Mohamed Nasheed had worked to avoid relying on T-bills for longer-term financial concerns like balancing the national fiscal deficit.

“The moment T-bills are increased, this directly affects loans that banks are able to give to the private sector, leading to the cost of borrowing increasing,” he said.

Razee claimed that the MDP government had attempted to try and extend income tax reforms introduced during its time in office to further boost revenues – a plan he said was cut short by the controversial transfer of power on February 7, 2012.

“Beyond appropriate” spending

The Finance Ministry last month said it has managed to reduce state spending over the last twelve months, despite the MMA raising fears over the current “beyond appropriate” levels of government expenditure had led to a vicious cycle of borrowing.

Finance Minister Jihad at the time told Minivan News that efforts had been successful over the last twelve months to curb recurrent government expenditure, while its borrowing had at the same time remained consistent.

In April, the government announced it was suspending state-financed development projects to curb outgoings.

The suspension of development projects was taken after the state was found to have exhausted its annual budget for recurrent expenditure (including salaries, allowances and administration costs) in the first quarter of 2013.

The decision was made the same month that currency reserves in the Maldives were found to have “dwindled to critical levels”, according to the World Bank’s bi-annual South Asia Economic Focus report.

The government has since requested parliament approve a US$29.4 million loan from the Bank of Ceylon to finance the 2013 budget approved by parliament.

In July, the President’s Office also confirmed that discussions had been held with Saudi Arabia to secure a long-term, low interest credit facility of US$300 million to help overcome the “fiscal problems” facing the nation.

Parliamentary approval will be needed to obtain either of the loans, the Finance Ministry has previously confirmed.

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PPM unveils economic plan, to release full manifesto in “days”

The Progressive Party of Maldives (PPM) has said it expects to release its full manifesto both in print and online in the next 48 hours.

After the party yesterday (August 30) unveiled its economic policy, PPM Youth Wing President Dhunya Maumoon was quoted as saying that a full manifesto document would be available to the public in the next “couple of days”, according to local newspaper Haveeru.

PPM Presidential Candidate Abdulla Yameen is the last individual contesting the election on September 7 not to have launched his full manifesto.

His rivals; MP Gasim Ibrahim of the Jumhoree Party (JP); President Dr Waheed – standing as an independent – and former President Mohamed Nasheed of the Maldivian Democratic Party (MDP) have all released blueprints for their respective plans if elected to office.

Yameen – half brother of former autocratic President Maumoon Abdul Gayoom – has this week nonetheless detailed key factors of the PPM’s economic policy should he become head of state.

According to Sun Online, the policy will include attempts to lower current interest rates on loans for develop tourism or fisheries businesses. He expressed concern that while interest on loans was offered by the country’s banks at a rate between 10 to 12 percent, members of public with savings in these same banks were receiving between three to four percent of their deposited funds.

Yameen was quoted pledging to try and curb the difference between the costs associated with borrowing and saving in the Maldives in line with other countries.

Current tourism Minister and PPM Deputy Leader Ahmed Adheeb also helped unveil the party’s economic policy, pledging to oversee “serious changes” to the country’s economy at macro-level.

According to Sun Online, Adheeb unveiled the party’s plan to launch ‘economic regions’, while also showing videos detailing several harbour constructions and a proposal for an airport in Kulhudhuffushi.

Minister Adheeb was not responding to calls at time of press, while Minivan News was awaiting a response from PPM MP Ahmed Nihan concerning the party’s manifesto launch.

Despite holding the largest number of MPs of any party serving in President Waheed’s coalition government, PPM Leader former President Gayoom earlier this week expressed concern that the Maldivian economy had been “seriously damaged and destroyed”.

He argued that Yameen was the only presidential candidate with the required experience to bring economic stability to the country.

JP manifesto

Speaking during the launch of its own manifesto earlier this month, the JP, led by business tycoon and MP Gasim Ibrahim, claimed it expected to finish above the Progressive Party of Maldives (PPM) in the first round of the upcoming presidential election, before securing a second round victory.

JP Policy Secretary Mohamed Ajmal has said the party’s manifesto included a pledge for a ‘holistic’ approach to taxation, promising to introduce income and capital gains tax, and increase taxation of the wealthy.

This would include reducing the 60-70 percent of national income devoted to recurrent expenditure to 40 percent, by investing in local infrastructure and raising revenue through the private sector.

The JP has also launched a ‘Religion and Nationalism’ policy, pledging to strengthen Islam in the Maldives, including the establishment of an Islamic University, introducing Arabic as a teaching medium, strengthening relations and donor ties with other Islamic nations, and making the Quran a mandatory school subject.

Forward with the nation coalition

Meanwhile, President Mohamed Waheed’s ‘forward with the nation’ coalition, which claims to have been the first party to fully outline its election plan after rolling out its policies in July and early August – has outlined four key campaign focuses based around Islam, social protection, education and environment.

Among the incumbent’s pledges are plans to establish “floating hospitals” in the north and south of the country, a 50 percent reduction in household energy bills, opportunities for empowering women along with the provision of social protection and education and vocational training for Maldivians up to 18 years of age.

MDP manifesto ‘Costed and budgeted’

The opposition MDP has published what it calls a ‘Costed and Budgeted’ manifesto, including plans to establish 51,000 job opportunities, a savings scheme for higher education, a student loan scheme, a MVR2000 (US$129) allowance for every single parent and person with special needs, and an allowance of MVR2300 (US$149) for the elderly.

Former President Nasheed also pointed out the importance of introducing a development bank in the Maldives during a rally to launch the full document on August 24.

“Take a look, this manifesto will not contain even a single policy which has not been accounted for. Even if we are asked to submit a budget to the parliament by tomorrow, we are ready to do so,” he said during the launch.

The party has separately unveiled policies based around expanding mid-market tourism through focusing on supporting guesthouses on inhabited islands, and a specific youth development plan focused on sports and entertainment.

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Immigration Department denies vital components missing from replacement border system

The Department of Immigration and Emigration has rejected accusations that a replacement border control system provided by US authorities will not be fit for purpose without “enhancements” currently being made to the technology.

An immigration source speaking on condition of anonymity last week told Minivan News that the Personal Identification Secure Comparison and Evaluation System (PISCES) – provided free of charge by the US government – was not an adequate replacement for the previous system provided by Malaysia-based Nexbis.

The PISCES system would only provide one of several functions afforded by the “total solution” installed by Nexbis under an agreement recently scrapped by the government, alleged a local source experienced in working with both border control systems.

“Nexbis provided a total solution that not only allowed for checking of biometric data, but would also be used to process visas and work permits,” the source claimed at the time.

Enhancements underway

Chief Superintendent of Immigration Zubair Muhammad today confirmed that enhancements were continuing to be made to the functionality of the PISCES since its installation as a direct replacement for the Nexbis system earlier this month.

Asked for more details on the nature of changes being made to PISCES, Zubair responded that a press conference had been scheduled for Sunday (September 1) at which representatives from the Ministry of Defence, the National Centre for Information Technology (NCIT) and immigration officials would discuss the ongoing work.

He also declined to provide details on whether any Immigration Department systems would have been affected by the changeover from the dismissed Nexbis technology at the present time.

Immigration Controller Dr Mohamed Ali meanwhile declined to comment on the PISCES technology when contacted today, and Defence Minister Mohamed Nazim had not responded at the time of press.

Nazim earlier this month claimed that both US and local authorities were continuing to develop PISCES since its introduction at Ibrahim Nasir International airport (INIA) to ensure it could meet the technical criteria required by immigration officials in the country.

“During training [to use the system], we realised that we needed to do enhancements,” he said at the time.

Asked if the country’s border controls could be open to abuse while these enhancements were being implemented, Nazim had responded that several amendments were expected to have been completed over the last week.

Immigration Department Spokesperson Ibrahim Ashraf at the time said that the country’s border controls had been transferred from Nexbis’ technology to Pisces without many issues.

He added that PISCES was nonetheless reliant on data from the Nexbis system, with technical staff from the Malaysian firm and the immigration working on transferring the necessary information.

Nexbis agreement

Nexbis’ border control system, used at Ibrahim Nasir International Airport (INIA) since September 2012, was replaced on August 20 following the government’s decision to terminate its concession agreement for the use and management of the system.

Nexbis has rubbished the Maldivian government’s reasons for terminating their agreement to build and operate a new border control system, accusing human traffickers – fearful of a more comprehensive system – of being behind the decision.

In June, the Maldives was placed on the US State Department’s Tier Two Watch List for Human Trafficking for the fourth consecutive year.

The PISCES system, designed by US tech firm Booz Allen Hamilton, has already been implemented in numerous other countries around the world, including Pakistan, Afghanistan, Iraq, and Thailand.

Nexbis’s statement also took issue with Defence Minister Nazim’s claims that the installation of its system was causing “major losses” to the state – this claim was reported in local media on August 6 when the Malaysian company was informed it had 14 days to vacate the country.

The company argued that its system was also installed and operated free of charge, and that the US$2.8million it had billed the government was the amount due for the arrival and departure of foreigners as per the original agreement.

The Nexbis deal has been dogged by allegations of corruption since it was agreed under the government of former President Mohamed Nasheed in 2010.

The failure of the Anti-Corruption Commission (ACC) to conclusively prove foul play in this respect has exonerated Nexbis from such charges, the company has claimed.

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Jumhoree Party rejects accusations of campaign bribery

The Jumhoree Party (JP) has rejected accusations of directly giving money or any other incentive to the public during campaigning for the upcoming presidential election, after several rivals raised concerns.

Both the Progressive Party of Maldives (PPM) and the Maldivian Democratic Party (MDP) have slammed the JP this week, accusing senior campaigners in the party of directly providing money and goods to the public to try and buy votes.

JP Deputy Leader Dr Ibrahim Didi today told Minivan News that “no donations” had been made through the campaign offices of its presidential candidate Gasim Ibrahim or his coalition partners ahead of polling, scheduled for September 7.

He insisted that although donations such as scholarships and school equipment had continued to be given through the Villa Foundation – a charity established by Gasim – these were not political gestures.

Didi claimed that, as well as sending some 200 Villa scholars abroad, the foundation – which is run separately from the JP – had for decades been providing vital equipment to schools and health centres across the country independently of the JP.

Gasim will stand in the election as the candidate for a coalition of parties including the JP, the religious conservative Adhaalath Party, and the Dhivehi Qaumee Party (DQP).

“Dumping money”

The PPM, whose presidential candidate Abdulla Yameen will be standing against Gasim next month, has alleged that the JP has been providing donations directly from its campaign office in the build up to September’s vote, effectively “dumping money” in certain parts of the country.

PPM MP Ahmed Nihan claimed that while he respected the work of Gasim’s Villa Foundation in the Maldives, there had been “very clear” attempts by the coalition of parties backing his election to offer voters financial incentives, particularly over the last one and a half months.

“I do not think it is the Villa Foundation that has been providing televisions and refrigerators to households,” Nihan said.

Nihan, who reiterated his respect for Gasim as a fellow parliamentarian and one of the country’s highest profile business figures, said that the level of donations being made by the presidential candidate and his supporters was “questionable” for a democratic system.

“One of Gasim’s main plus points is that he has lots of money. He is definitely using it,” he said.

Nihan accused Gasim of trying to financially influence voting, both for the upcoming election and during the country’s first multi-party democratic vote in 2008, arguing that a growing number of young voters between the ages of 19 and 35 years would be aware of attempts to influence them.

He argued that the PPM’s island council by-election victory against the JP in Nolhivaram in Haa Dhaalu Atoll on Saturday (August 24) had indicated that Gasim’s alleged spending and donations would not translate to polling success.

“We are running a democratic campaign. We don’t have the money to provide televisions and refrigerators like the JP,” he added.

Nihan alleged that the majority of Gasim’s political supporters were only interested in profiting from the tycoon by getting what he claimed was a “quick buck” ahead of voting, and cited his previous unsuccessful campaign to stand for the presidency in 2008.

“[These supporters] will abandon Gasim after the election just like what happened in 2008,” he said.

Gasim unsuccessfully contested in the 2008 presidential elections finishing the race in fourth place, with 15.2 percent of the total vote.

He finished behind candidates including then President Maumoon Abdul Gayoom, eventual winner Mohamed Nasheed, and the current JP running mate, Dr Hassan Saeed.

Official complaint

The opposition MDP, represented in the upcoming election by former President Nasheed, has filed a case with the country’s Elections Commission (EC) concerning campaigning by Gasim’s coalition.

MDP MP Hamid Abdul Ghafoor accused the JP of “unashamedly” trying to buy votes for the election.

“They believe this is how it has to be done. You give people things and they will vote for you,” he said. “They are oblivious to the fact that the world has changed. We are hearing that some people might accept money [they are offered by a candidate] and still vote for the candidate they want.”

The MDP also today criticised First Lady Ilham Hussain over reports in local media that she had donated MVR 100,000 (US$6500) to Mulaku School in Meemu Atoll, accusing her of trying to buy votes for President Dr Mohamed Waheed’s campaign.

Abbas Adil Riza, a spokesperson for President Waheed’s Gaumee Ithihaad Party (GIP) was not responding to calls at time of press.

Addressing complaints filed over campaign spending, Elections Commissioner  Fuwad Thowfeek today told newspaper Haveeru that any kind of donations by candidates contesting in next month’s presidential vote could potentially undermine the electoral process.

Thowfeek said that in light of allegations of bribery being raised with the commission, he believed it would be best to halt “social assistance” until voting next month had concluded.

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MDP cautious over police conduct as Commonwealth assigns election security consultant

The Maldivian Democratic Party (MDP) has expressed caution following the Commonwealth’s decision to assign a security expert to observe police conduct during the 2013 presidential election.

The opposition party this week questioned the Commonwealth’s previous lack of success in ensuring security force reforms, adding that it remained “highly suspicious” of Police Commissioner Abdulla Riyaz’s conduct in the build up to the election.

Police announced this week that the Commonwealth had appointed Eldred de Klerk to assist with ensuring election security, a decision they declared was in line with “international best practices” after requesting the intergovernmental organisation provide consultancy services.

Police Commissioner Abdulla Riyaz met with de Klerk in Male’ on Sunday (August 26) to discuss his planned work ahead of the election.

Minivan News understands a similar request was made to the UN, which opted instead to work with others members of the international community to try and ensure the “smooth running” of next month’s election. Despite rejecting the police service’s request, a UN source today said it appreciated the Commonwealth’s contribution.

The Maldives Police Service earlier this month launched an operation to send large numbers of police officers to islands in preparation for the presidential election with the stated aim of ensuring voting goes peacefully.

Riyaz is also the subject of an ongoing Police Integrity Commission (PIC) investigation over whether he contravened regulations on political neutrality by publishing a letter written by a third party on Twitter urging officers to “say no” to former President Mohamed Nasheed.

The PIC has maintained that it had received no formal complaints concerning the tweet, but was instead investigating the case on the commission’s “own initiative”.

Contacted today on the status of its investigation into the post, the PIC said it was not the commission’s policy to give details of an ongoing case, while also declining to provide a time-line for whether such a “complicated” matter would be finished before September 7.

In July, Commissioner Riyaz said his institution would continue to refuse any orders it deems “unconstitutional”, after expressing concerns over leaked proposals allegedly devised by the MDP to reform the country’s security forces.

Party reaction

MDP MP Hamid Abdul Ghafoor said the party was cautious at the Commonwealth’s decision to provide an elections security consultant after it’s lack of success in ensuring the police reforms called for in the Commission of National Inquiry (CoNI) report it had backed.

“We will have to wait to find out if the Commonwealth is actually trying to help diffuse mutinous elements [in the police],” said Ghafoor.

The CoNI report was mandated to ascertain the truth behind the MDP’s allegations that former President Mohamed Nasheed was forced to resign from office on February 7, 2012, due to a “coup d’etat”, after sections of the police and military mutinied against the government.

While the CoNI report concluded there was “no coup, no duress and no mutiny” behind the change of government, the findings did urge changes to the country’s judiciary, legislature, certain independent institutions, and the police service.

The MDP added that it currently had no plans to meet with the Commonwealth’s election security consultant despite its concerns.

“It would be up to the consultant to come and talk with us,” Ghafoor said. “All we know is, if police try to cause any disruption during the election, all hell is going to break loose.”

Despite the MDP’s concerns, PPM MP Ahmed Nihan said the party welcomed the Commonwealth’s appointment of a security specialist to assist with ensuring election security ahead of what was likely to be a “highly competitive election”.

Nihan said that although police should have no role in running the election or visiting polling stations – unless required by the country’s Elections Commission (EC) – it was important that officers were present in case of significant disruption.

“Things can go wrong in any given circumstance,” he said, reiterating concerns expressed earlier this week by his party that “major incidents” on the day of voting could compromise a free and fair vote.

Elections Commission criticism

The PPM maintained that it was more concerned with the competency of the country’s EC and its commissioner Fuwad Thowfeek ahead of next month’s vote – rather than security issues with the police.

Nihan maintained that the PPM, along with election rival the Jumhoree Party (JP), were more concerned at what it alleged was the “mishandling” of the upcoming election by the EC, expressing particular concern over whether the commission’s president was fit for the post.

He accused the EC over the last two and a half months of failing to address the party’s concerns about holding free and fair polls, claiming it “could have done better”, while also questioning the timing of allowing IT experts from India to be programming software for the commission. Nihan accused the EC of only offering rebuttals to the party’s concerns.

However, EC President Fuwad Thowfeek this week told Minivan News that he had met with a PPM delegation several times in the build up to voting, providing what he called detailed queries to their questions.

“Every time [the EC has met with the PPM] we have very clearly explained everything to them, answered all their queries and gave very detailed responses to them,” he said. “But there are some demands that we cannot meet. For example, one of their demands was to see our IT section. They wanted to see the hardware and software of our network system, which we cannot do and we are not ready to do for the safety and security of our system.”

The Maldives NGO Federation last week expressed concern that political parties were attempting to discredit the Elections Commission (EC) by inciting hatred toward the institution in an effort to obstruct the holding of a free and fair presidential election.

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MMA slams state spending as government claims expenditure curbed

The Finance Ministry has said it has managed to reduce state spending over the last twelve months, despite the Maldives central bank raising fears over the current “beyond appropriate” levels of government expenditure.

Finance Minister Abdulla Jihad has told Minivan News yesterday that efforts had been successful over the last twelve months to curb recurrent government expenditure, while its borrowing had at the same time remained consistent.

According to Jihad, the government’s decision in April to suspend state-financed development projects had also helped to curb outgoings as the country looks to secure foreign finance for the purpose of budget support.

“We have had difficulties this year with spending, so we have taken these initiatives,” he said.

The suspension of development projects was taken after the state was found to have exhausted its annual budget for recurrent expenditure (including salaries, allowances and administration costs) in the first quarter of 2013

The decision was made in same month that currency reserves in the Maldives were found to have “dwindled to critical levels”, according to the World Bank’s bi-annual South Asia Economic Focus report.

State borrowing

Jihad said that state borrowing had remained consistent over the last year, after the Waheed administration had paid back US$100 million in treasury bonds to Indian authorities by a requested date of February 2013.

Earlier this month, President Waheed pledged that the country would be in a position to restart development projects next year as a result of his government repaying bills incurred through the previous administration’s borrowing.

While President Waheed had previously said he would not resort to borrowing from foreign governments in order to finance his administration, Jihad today confirmed the state was “moving ahead” with efforts to secure credit from overseas sources in Saudi Arabia and Sri Lanka.

Earlier this month, the government requested parliament approve a US$29.4 million loan from the Bank of Ceylon to finance the 2013 budget approved by parliament.

In July, the President’s Office confirmed that discussions had been held with Saudi Arabia seeking a long-term, low interest credit facility of US$300 million to help overcome the “fiscal problems” facing the nation.

Parliamentary approval would be required for the credit facility before it could be obtained by the government, Jihad added.

Vicious cycle

Governor of the Maldives Monetary Authority (MMA) Dr Fazeel Najeeb  (August 23) was quoted in local media as warning that “excessive” government expenditure was directly responsible for the country’s present economic issues.

Speaking during a function to celebrate three years since the formation of the Maldives Inland Revenue Authority (MIRA), Dr Najeeb claimed that increased government expenditure required large amount of loans that would put the country in a vicious lending cycle.

He also expressed concern at a perceived slow down in the country’s private sector and bank investments increasingly in government Treasury Bills (T-bills).

“The value of Rufiyaa is dropping because government accounts do not have the money, because it is a necessity to print large quantities of money,” he was quoting as saying by Sun Online.

Najeeb said that a long-term economic stability plan would be needed in the country as part of attempts to increase foreign investment, reduce inflation, and curb printing of the Maldivian Rufiyaa in order to calm an increase in prices.

“The plan shall include new foreign investments, aim to reduce inflation, decrease the printing of money and cease it altogether. This will decrease the pressure on the Rufiyaa”.

Minivan News was awaiting a response from Dr Najeeb at time of press.

Waheed Administration’s spending

In July 2012, the Finance Ministry instructed all government offices to reduce their budgets by 15 percent, with only 14 of 35 offices complying by the given deadline.

However, the Finance Ministry in the same month announced its intention to reimburse civil servants for the amount deducted from their salaries in 2010 as part of the previous government’s austerity measures.

The deducted amounts, totaling MVR443.7 million (US$28.8 million), were to be paid back in monthly instalments starting immediately.

Meanwhile, the original budget proposed by the state for 2013 had also included salary increases for military and police officers as well as plans to hire 800 new officers for the security services.

Combined with the transfer of about 5,400 employees in the health sector to the civil service, some MPs at the time estimated that the state wage bill would shoot up by 37 percent.

Parliament eventually passed a MVR15.3 billion (US$992 million) state budget on December 27 last year, after it was reduced by more than MVR1 billion (US$64.8 million) from the MVR16.9 billion (US$1 billion) proposal previously submitted by the Finance Minister.

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Commonwealth unveils 17 member observer group for presidential election

Former Prime Minister of Malta Dr Lawrence Gonzi is to head a 17 member Commonwealth group arriving in the Maldives on August 31 to observe the upcoming presidential election.

The group, constituted by Commonwealth Secretary-General Kamalesh Sharma, is mandated to “observe and consider all aspects of the electoral process” on September 7 to ensure it is held in compliance to agreed standards for fair polling.

It was confirmed by the Maldives Election’s Commission late last month that observers from both the Commonwealth and EU would be monitoring the election. Representatives from other local groups and institutions have also pledged to observe the vote.

The Commonwealth Observer Group, scheduled to arrive in the Maldives later this month, is expected to be in the country until September 14.

The group’s work will be overseen by a Commonwealth Secretariat support group, led by Nishana Jayawickrama, head of the intergovernmental organisation’s Asia/Europe Political Affairs Division.

According to the Commonwealth, the seventeen member panel consists of:

  • Group Chair Dr Lawrence Gonzi
  • Hugh Craft, former Australian diplomat
  • Bruce Hatch, Canadian elections expert
  • Elizabeth Ohene, former minister and media expert in Ghana
  • Navin Chawla, India’s former Chief Election Commissioner
  • Prof Lisa Ann Vasciannie, Jamaican governance expert
  • Yusmadi Yusoff, former Malaysian MP
  • Notemba Tjipueja, Namibian Elections Commission Chair
  • Maryan Street, New Zealand MP
  • Prof Attahiru Jega, Nigerian National Electoral Commission Chair
  • Zobaida Jalal, former minister in Pakistan
  • Dr Alphonse Gelu, Registrar of Political Parties in Papua New Guinea
  • Hendrick Gappy, Seychelles Electoral Commission Chair
  • Ms Lindiwe Faith Mokate, South African Human Rights Commission
  • Andi Schubert, Sri Lanka youth representative
  • Prof Sylvia Tamale, Ugandan gender expert
  • John Turner, UK elections expert

In a statement, the Commonwealth said the observer group will work impartially and independently, conducting itself in line with the International Declaration of Principles for Election Observation.

As well as making possible recommendations on how to strengthen the electoral framework in the Maldives for future voting, the observers will also submit a report on the 2013 presidential election to both Commonwealth and Maldives authorities.

Local observers

Earlier this month, both the opposition Maldivian Democratic Party (MDP) and Human Rights Commission of the Maldives (HRCM) announced plans to station election observers in specific areas of the country.

The MDP has pledged to place more than a thousand election observers throughout the country, an average of four observers per ballot box.

Meanwhile, the HRCM will reportedly be stationing its own election observer teams in 10 regions of the Maldives to monitor polls.

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Two vessels including MNDF boat sunk near to capital

Two vessels including a coastguard boat have sunk in waters near to Male’ over the last 24 hours, while an airport ferry travelling to the capital has also run aground off Funadhoo oil jetty due to adverse weather affecting many parts of the country.

Maldives National Defence Force (MNDF) Spokesperson Colonel Abdul Raheem confirmed that the coastguard has yesterday (August 23) received reports of a fishing vessel sinking around 14 nautical miles from Male’ as it tried to return to the capital during “bad weather”

He added that a small MNDF boat, later sent to assist the fishing vessel, also sank as a result of the harsh weather conditions – although both crews were later successfully evacuated by authorities.

According to Colonel Raheem, the MNDF has today located the sunken coastguard vessel, which was being returned to Male’ at the time of press.

Local media reported that the fishing vessel, identified as Rabeeu, had started sinking at about 6:00pm yesterday after a large wave flooded the craft’s engine area.

A total of 11 crew were on the boat at the time, according to Sun Online.

The MNDF confirmed that the coastguard had also provided assistance during a separate incident yesterday where an airport ferry travelling a short distance from Hulhule’ to Male’ ran aground after experiencing engine troubles.

Authorities said that high winds had led to the boat being swept into the reef area of Funadhoo. No serious casualties were reported.

Colonel Raheem said that the MNDF were not today advising against sea travel, despite these incidents, as conditions were reported to be calmer.

However, he stressed the importance for boat operators and members of the public to ensure all boats had sufficient safety equipment for passengers and crew.

Weather patterns

The Maldives Department of Meteorology (Met Office) today said that it had not taken the decision to issue any weather warnings over the last 24 hours, although it did expect continued heavy showers in parts of the country, specifically in southern atolls.

A Met Office spokesperson said that wet weather was expected to continue at least for the next two to three days across the country.

The department today however said it had not been informed of a tornado that was reported to have struck the island of Milandho in Shaviyani Atoll yesterday evening.

According to police, this adverse weather occurred at about 8:00pm yesterday.

No serious injuries were reported to authorities, although the tornado was found to have  damaged trees and school buildings on the island, as well as to motorcycles parked by the local medical centre, according to the police website.

The Met Office was forced to issue a temporary ‘yellow warning’ earlier this month, advising the public against travelling by sea where possible as rough weather again struck the islands.

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