Author: Neil Merrett

Police urge caution following false officer report

Police have warned the public to be vigilant against individuals falsely posing as its officers following an isolated incident outside a bank in the capital this week.

Police Sub-Inspector Ahmed Shiyam told Minivan News that the Maldives Police Service had issued a warning against so called “fake” police after it received a report from a member of the public that claimed they had been approached outside a bank by a man claiming to be an officer.  The so-called police officer was alleged to have offered the person  assistance with money they were carrying.

“An individual approached a member of the public saying he was a police officer and offered to assist in transporting their money,” he said.  “This occurred near a bank and we are urging the public to be aware of these type of things.”

Shiyam added that the individual was not wearing a police uniform, though he was dressed smartly and looked “decent”, according to the report of the incident.  When asked about the identity of the individual who was alleged to have posed as a police officer, the sub inspector said that the incident was at present believed to be an isolated event and not an ongoing criminal endeavor.

However, police stressed that the any member of the public being approached by an officer should ask for their name, proof of identity and a follow-on phone number to verify if they are a law enforcement official.

“We do offer to escort the public with amounts of money, but only when they officially request support first,” he said.

Shiyam added that official officers would also wear full police uniform.

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Visit to Fares-Maathoda shows challenge of decentralised development

In the final part of a special report from the island of Fares-Maathoda, Minivan News looks at the challenges for communities developing beyond Male’s glance as they attempt to switch to decentralised governance and overcome their natural vulnerabilities.

Sitting in Gaafu Dhaalu Atoll, the conjoined landmasses making up the island of Fares-Maathoda present an environment that has seen little of the economic and infrastructure changes witnessed in the population hubs in North Male’ atoll.

Yet like everywhere else in the Maldives, the formation of island and Atoll councils following nationwide local elections in February 2011 has raised new challenges to bring about change on a more decentralised basis.

However, some opposition politicians believe that the government was “not fully prepared” in its plans to devolve power locally, and that has caused friction between the government and local councils over what exactly their roles and responsibilities are in relation to overseeing potential changes.

For the residents of Fares-Maathoda and the five-member council elected to serve them, these changes include a proposal to use aid funds from Denmark to try and offset continued flooding resulting from drainage and waste management issues as part of wider development aims.

Ibarahim Shareef, spokesperson and deputy leader for the Dhivehi Rayyithunge Party (DRP) told Minivan News that he believed a combination of a lack of experience among elected councillors and obstruction by central government was limiting the roles of individually elected councils to oversee and deal with projects such as development.

“There is disagreement over the role of councils and what duties are being issued to them. Our country is disintegrating around us,” Shareef claimed, accepting that divisions between the present and previous leaderships of his own party had added to the partisan atmosphere of the country’s political backdrop.

“We should get all the parties including the government and opposition groups to stick together and try and resolve the differences like this issue.”

Speaking earlier this month during a visit to Fares-Maathoda, two islands that were linked together in the 1990s by reclaiming area between them – a move that exacerbated flooding problems – UN Resident Coordinator Andrew Cox said he believed that environmental and development facing the country required cooperation from all stakeholders in light of decentralised government.

“What seems to be the case at the moment is that the decentralised structures [island and Atoll councils] are developing and that’s fine. But what that means at the moment is that until things become clearer in some of the areas where we need to work, we need to stay closely connected with everybody. Yet we appreciate the need for strong coordination,” he said.

“In the end, you need the right environment if you are going to attract large-scale funding. In actual fact for the money to come to the Maldives there needs to be a favourable environment for that and even more so there needs to be a good investment environment, because that’s the way that you are going to do large-scale projects.”

Cox was on Fares-Maathoda alongside representatives from the Ministry of Finance and Treasury, the Ministry of Housing and Environment, the National Office and the United Nations Office for Project Services (UNOPS) to meet with local councillors and outline how Danish donor aid for funding climate change adaptation would be allocated on the island.

Pointing to a sea-wall development riddled with flags, displaying the yellow of the MDP on one side and the blue of the DRP on the other, Cox suggested that was a powerful reflection of the country’s partisan political functioning and the challenges it created for decentralising aid distribution.

“You have the blue on one side and the yellow on the right, which typifies the Maldives more than anything else,” he added.

However, Cox claimed that rather than acting as a test for the viability of other collaborations with recently appointed local councillors in delivering aid, Fares-Maathoda represented the need for “development best practice” and how best to try and mitigate detrimental environment and economic factors over partisan thinking.

“In the end, people involved in a project need to be involved in its decision making. That’s the bottom line, so frankly I think if you succeed, you succeed and it’s good for development and everyone who is involved can take credit,” he said. “But if you fail, it’s important to know why you failed. Then you try and reflect that back when you expand an approach outwards than you better find a way of taken advantage of that knowledge and understanding and don’t do it again.”

However, Ibarahim Shareef said he believed that in opting to decentralise power following February’s elections, President Mohamed Nasheed and his fellow MDP members had been “shocked” by the number of island councils seats that fell to opposition parties like the DRP.

Shareef claimed that he believed the government was now aiming to try and centralise power in an apparent reversal of its original intentions.

“Local people have been in a long struggle for democracy, yet some are now questioning the wisdom of supporting democratic reform,” he said. “They have not got empowerment at the level they expected.”

Shareef said that despite these uncertainties regarding the exact role of local councils, everyone involved in the process of decentralisation needed to work together to set out what powers councillors did and did not have in order to function properly.

“It is in everyone’s interests to ensure they are working properly,” he claimed.

In a bid to try and help coordinate the development projects undertaken by local councils such as those bought forward by UN aid, the President’s Office announced the formation of seven national offices back in March that it claimed were not related between some isolated disputes with local councils.

Speaking from Fares-Maathoda during the UN visit, Mohamed Shareef, Deputy Minister of State for the Upper South Province national office, claimed that government coordination remained vital to ensure all councillors are sufficiently trained to oversee development and aid in the future.

Speaking to Minivan News, Mohamed Shareef said he believed that criticism of the national offices stemmed from incorrect presumptions that the government was acting against its own decentralisation plans by giving the president more power over the country.

To try and offset these criticisms the national office has said it is offering training programmes across the country in places like Thinadoo and Addu City that aim to provide information to councillors and outline their responsibilities.

“Councillors have come from many different walks of life, but many haven’t been in administration or management, so they are very new to these procedures and understanding them,” said Shareef. “They keep saying that there are no procedures, but it is just a matter of understanding what the procedures are. So we have to keep on running training programmes. The government has a very extensive programme to try and make the councillors and the public aware of the system.”

With the councils now in place, Shareef said that these training programmes would be vital to try and ensure the success of decentralisation. However, he accepted that there was a notable difference of opinion between whether more details and information should have been given to candidates and the public before electing councillors or whether the system should be fleshed out afterwards.

Despite criticisms that more education for the public and councillors on the exact purpose of decentralisation in the Maldives should have been in place before voting began, the national office claimed that it believed the best way – as has happened – was to start the programme and learn along the way.

“I think if we had earlier tried to make people understand what [the government] were trying to do, it would have been a difficult process. On the other hand, if you have bought the system and make everyone learn by experience it might have been easier for us – it could be debated either way,” Shareef said. “We were in need of immediate change that was for sure. So we wanted a change to be implemented and it was done very quick.”

In terms of main challenges facing national offices like those in the Upper South Province, Shareef said that the cost of running five member councils across the country was definately a concern.

“We have a very poor income and the country is very small in terms of people and resources. We can discover new resources in terms of tourism but the challenge lies in the expense of bring about these changes [local councils]. It is an expensive process.”

Shareef claimed that the national councils would ultimately like to see more responsibility being taken by local councillors in dealing directly with donor agencies such as the UN over development and aid projects, while it held a light coordination role in instead.

“This would allow the direct impact [of these funds] to be felt more closely by the councils. Otherwise we should have a major role. It’s not very easy for the government agencies,” he said. “In terms of being more responsible, I think the councils can very much have a role in making the maximum use of aid coming in.”

Mohamed Shareef added that the belief of the national councils was that training projects would be at the heart of granting more development roles to local councillors in the future.

“The vision of the government is that we are going to have a very big leap in terms of development by having decentralisation. So the councils need to be very responsible and capable if they want to take up these challenges,” he said. “It all depends on how capable the councils are. In one way it’s a big relief for the government that there are councils and governors who are interested in dealing with them. For the government, it doesn’t make it very easy, but it’s the way they want to go forward I guess.”

Ultimately, Shareef said that the main plan in the long-term for each council would be to have them become more technical and development orientated rather than trying to serve a particular party political interest.
“That was the stand with which the councils came into their position, but still we have some way to go to get the councils to realise they are a technical and development body and not a political body.”

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Fisheries ministry accepts need for regional collaboration in changing marketplace

Maldivian authorities say they are ready to join the Indian Ocean Tuna Commission (IOTC) despite initial reluctance, as a changing agricultural situation within local waters requires a more active role in outlining possible quotas and regulations.

Hussain Rasheed Hassan, Minister of State for Fisheries and Agriculture told Minivan News that with the Maldives currently responsible for fishing between a quarter to a fifth of the Indian Ocean’s skipjack tuna catch, the country was now waiting for parliamentary approval to join the tuna commission, which serves as an intergovernmental agricultural organisation.

Having spent two years collaborating with the IOTC regarding possible membership into the group, Hassan claimed that the move was not in contradiction to planned aims of selling more sustainable fish supplies or outlawing harvesting species such as sharks. Instead he claimed it reflected wider aims to work under guidelines set out in an EU initiative to combat illegal, unreported and unregulated fishing (IUU).

“In the past, we have been very reluctant to become a member of the IOTC, I guess for a number of reasons,” he said. “One [reason] is that we were afraid that by becoming a member, the IOTC will dictate how much fish [the Maldives] can harvest.

As a major stakeholder in supplying skipjack tuna from the Indian Ocean, the state minister claimed that there had in the past been fears that becoming a full IOTC would allow other to enforce quotas on the size of the Maldives’ catch of the fish leading to some hesitation by government in acting in this way.

However, Hassan claimed that the situation has changed very much of late in regards to capturing Indian Ocean tuna, particularly in terms of species such as yellowfin that he said were considered to be at stake throughout the region.

“Our hand line fishermen are targeting these fish. But in the Indian Ocean as a whole, these species are considered overexploited. There was talk that we should have a fish quota for that and we want to be included in these discussions and decision making,” he said. “If we are outside this process we will not be able to say what we want and we will not be able to influence the decision making process of the IOTC. That is not a very good position for the Maldives.”

Hassan claimed that the obtaining membership to the IOTC was also a key requirement of meeting the European IUU regulations, which he said were being sought by major import markets for tuna like the EU and demand cooperation with regional fisheries management organisations.

“It is a market demand really. A lot of our buyers are telling us that we are a major player and should become a member of the IOTC,” he added. “They want us to ensure management measures are put in place and they want us to have a more proactive role in the organisation.”

Just last year, the Maldives government had courted threats from some conservation groups that the country’s fisheries faced being boycotted by certain major UK retailers over a decision to adopt long line fishing alongside the perceived environmentally friendly, yet lower yield, pole and line methods.

The use of the long line system has itself continued to divide opinion with groups like the Maldives Environmental Protection Agency (EPA) claiming last March that there were both “good and bad implications” to adopting the practice.

“It is obvious that long line fishing will definitely catch some un-targeted fishes, like sharks and turtles,” EPA director Ibrahim Naeem said at the time.

By the end of March last year, the Cabinet opted to allow long line fishing of yellowfin tuna and bigeye tuna for Maldivian vessels after discussing a paper submitted by the Ministry of Fisheries and Agriculture claiming such a move would improve yields from the fisheries sector, which has worsened significantly since 2006.

Senior Research Officer at the Ministry of Fisheries and Agriculture, Hussein Sinan, said at the time that long line fishing was “far better for targeting yellowfin and bigeye tuna.”

Hassan claimed that a key interest of the government in looking to long line methods was to try and ensure that the 15,000 to 16,000 people estimated to be employed directly within the fisheries sector remained employed.  The state minister added that it was therefore vital to ensure that effective management was put in place around the region to ensure sustainable prospects for fishing.

“We have been a pole and line fishing nation for at least a thousand years, so we cannot afford to give up our interest in this fishing and our culture. So we have got to maintain this for the foreseeable future,” he said. “Unless we can provide alternative and better employment opportunities for people we must remain a significant fishing nation.”

In order to provide the best price from fishermen, Hassan said that adding value to fish being caught in the country was not just linked to processing, but also in the quality of the produce from the way it has been caught.

“There may be an environmental value that you can add to it. I believe that having a sustainable pole and line fishery we are adding value [to the sector],” he said. “There is a huge demand for pole and line fish in the European market, especially the UK. For canned tuna there is a huge demand for pole and line fish and the reason is that the UK buyers have seen how sustainable and environmentally friendly the way we are catching it is. It is small scale and has very insignificant impact on the environment.”

Hassan said that although the government was limited in the amount of financial support it could offer fishermen to help try and manage more sustainable and added value fishing, the Maldives was at the same time working to introduce long line fishing through licensing agreements.

According to the state minister, these agreements have already led to foreign long line fishing in the Maldives being stopped last April.

While Hassan said that there was after this point no legal foreign fishing using long line methods in the country, he added there had also been a loss of opportunity for local business, where fish was being caught on licence and then processed and exported.

“What we are trying to do – and it is in the government manifesto – is to try and encourage the private sector to establish a local long line fleet. So the government is not buying vessels and supplying them, but we are encouraging private parties to acquire oats and start a long line operation,” he said.

Foreigners would therefore continue to be allowed to work on fishing vessels in the country under contract, but the boats themselves would required to be Maldivian owned and managed.

As part of this wider long line pledge, Hassan claimed that authorities were calling on a number of measures to try and prevent creatures that are not allowed to be caught and harvested such as sharks being taken from the seas by accident.

The state minister said that long line fishermen were purposefully being made to aim below 60 metres under the water where sharks and other outlawed creatures were not so abundant and would ensure that the practices were being monitored as required under international standards.

“We are very confident that this will mitigate the by catch issues and we will change regulations if necisary based on the outcomes and results of our long line fishing,” he said. “we are a relatively resource poor country. There is a huge potential under the [60 metre] thermaclime, which is yellowfin tuna and bigeye tuna that right now we are not targeting through hand and line fishing.”

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Focus on “direct revenue” needed as state earnings increase, says Razee

The country’s Economic Development Minister has called for a greater focus on introducing new “direct revenue” streams like taxation to the country to try and balance national income even as the government reports an increase in income.

Mahmood Razee said he believed that increased government earnings between January and March 2011 should be seen as an encouraging development in the country for both public and private finance, with initiatives like the tourism Goods and Services Tax (GST) introduced in January expected to be rolled out across other national industries.

However, he stressed that more cash generating measures would be needed by the state to balance the country’s books.

The claims were made as the Maldives Inland Revenue Authority (MIRA) recorded a 59 percent increase in government first quarter income on the back of new initiatives like the tourism GST.

The Maldives has come under huge pressure in recent years from financial institutions like the International Monetary Fund (IMF) to try and reduce extensive state spending, resulting in a large deficit between income and expenditure that the government’s Finance Ministry have claimed to be trying to address.

While preliminary figures had pegged the 2010 fiscal deficit at 17.75 percent, “financing information points to a deficit of around 20-21 percent of GDP”, down from 29 percent in 2009, the IMF has reported.

Razee claimed that the increases in government income was a step towards more balanced expenditure as the MIRA revealed that Rf947m was generated during the first quarter of 2011. These earnings were up by 21 percent on predicted incomes for the year and 59 percent over revenues taken during the same period in 2010. However, earnings from the tourism GST introduced from January 2011 onwards were not in place back in 2010.

Tax revenue over the quarter rose by 81 percent, aided mainly by the tourism GST, which generated an estimated Rf351m in February and March alone, up one percent on expected earnings, according to the MIRA.

Of these tax earnings, the financial report stated that Rf82m had been collected in the local currency, while the remaining Rf864m was collected in US dollars (US$67m).

The MIRA report added that government earnings from initiatives such as the switch of a tourism lease rent to a tourism land rent had seen non-tax revenue increase by 46 percent over the period, despite a 28 percent decline in royalties after recent amendments to the Fisheries Sector.

“With the change from tourism lease rent to tourism land rent, the revenue from [this amendment] has increased by 7 percent,” the report stated. “Additional revenue of Rf 146m has been received during this quarter from Resort Lease Period Extension following to the second amendment made to the Tourism Act.”

More Work

According to Razee, despite the increased revenue, more sources of income, particularly in terms of foreign currency, were needed to offset budgetary concerns.  This apparent need comes in light of a lack of US dollars being made available through Maldivian banks that this month saw a long standing Rf12.85 peg on the exchange rate controversially being amended within 20 percent above or below the figure.

“The solution is to look to more direct forms of revenue like the general GST, though there is still some way to go with work in trying to balance revenue with the expenditure side,” he said. “Additionally, when we look to taking [state] loans they will need to be able to build greater productivity and more investment into the economy.”

With the Finance Ministry aiming to introduce a general GST system beyond services and goods provided to holidaymakers, Razee believed that government’s recent experience with taxing tourism income had helped bring a much great understanding of the true state of the country’s finances.

“Obviously with the GST in place, we understand much better the exact tourism receipts being generated,” he said. “Without them, it was much harder to fully understand the revenues being generated.

Razee claimed that the implementation of the general GST tax would also require the private sector to be more “professional” in their accounting, in theory ensuring wider industry benefits in the long-term.

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Deputy speaker would “welcome” heightened transparency in the Majlis

Deputy Parliamentary Speaker Ahmed Nazim has claimed that he would welcome moves to promote transparency in the People’s Majlis, such as revealing the financial assets of MPs to the public, but added similar commitments would also be needed from the country’s judiciary and executive.

Speaking to Minivan News earlier this week, Nazim, who is also a serving member of the People’s Alliance (PA) party and the Majlis’ Public Accounts Committee, said he would “fully support” any initiative to improve the image of parliament such as providing details of the property and assets of MPs. However, the deputy speaker said he believed that the appointment of an auditor general, a position that has been vacant since March 2010 when Ibrahim Naeem lost a parliamentary no-confidence motion by 43 votes to 28, was needed to oversee such a process.

The claims were made as debate over whether MPs should publicly declare details of their assets and income was found to have reached an impasse, with opinion divided in the Majlis over whether doing so was a constitutional necessity.

The issue had also been raised by the political NGO, Transparency Maldives, which claimed that it was having difficulties in getting details on the assets and financial status of MPs despite parliament showing a generally more open attitude to supplying information.

The NGO, which operates a project called Parliament Watch alongside the Maldivian Democracy Network, believes that the right of the public to know the financial details of their elected representatives in the Majlis was “in the spirit” of the constitution. Transparency Maldives added that it believed that transparency within the actions and decision making of parliament had nonetheless improved in recent years despite possible concerns about MP finances.

Although the decision for public declarations of MPs’ financial statements was rejected this week, parliament also failed to agree to two additional recommendations that financial statements should be released only under a court order or to the public upon investigations by state institutions.

On Tuesday (April 19), Nazim in his capacity as deputy speaker of the Majlis, said the matter had been declared “void” on the basis that neither proposal was accepted by MPs, but he added that parliament’s Secretary General had sought counsel on the matter and would go ahead according to the “rules of procedure”.

Speaking before the vote, Nazim said that the issue had been sent to parliament by the Majlis’ secretary general over concerns about an isolated issue raised by the country’s Anti-Corruption Commission (ACC) in requiring the financial statements of one unidentified MP.

Under present standing orders that outline parliament procedure, the deputy speaker claimed that sitting MPs were required to provide information to the Majlis by the end of October each year detailing their annual finances between the twelve months from May 29 to May 28.

Nazim said that amidst the ensuing debate over whether these statements should be made freely available to the public, the decision to do would definitely serve to “improve the image of parliament.”

While provisionally welcoming the initiative, Nazim claimed that he believed the Majlis would only public release details of their financial status alongside a similar commitment by judges and senior cabinet ministers.

“It would be for the auditor general to collect this [financial] information from cabinet ministers, judges and government members,” he said, accepting that the position had been vacant for more than 12 months.

“No [financial] information has been put into the public domain, once this happens the Majlis would consider following suit.”

Presidential Press Secretary Mohamed Zuhair told Minivan News that ultimately, the decision on whether to make the financial statements of MPs available to the public was down to parliament itself and not related to the government.

“It all depends on how transparent they [parliament] wish to be,” he claimed. “There are opportunities to be accountable, yet holding back on these details might lead to allegations [of possible corruption].

When asked whether cabinet member were themselves considering or already required to reveal details of their earnings and assets, Zuhair added that the issue related to a very different kind of social contract that they were bound to.

“Government employees are banned from working in the public sector or within any positions that might create a conflict of interest,” he added.

Aiman Rasheed, Projects Coordinator for NGO Transparency Maldives, claimedthat MPs were generally operating in a much more transparent manner during the current parliament.  However, he added that while parliamentarians were not required to supply their financial statements to the public, choosing to do so would be more in the spirit of the constitution.

Through its work on the Parliament Watch project, Rasheed claimed that at present NGOs like Transparency Maldives were finding it very difficult to know which MPs submitted their financial statements to the Majlis by the required deadline of October, with requests for a detailed list of members still not being met.

“There is obviously a lot of discomfort about this in the Majlis,” he said. “But for the most part, documents [relating to MPs] are available. As far as we are concerned this parliament is really open.”

Despite welcoming possible improvements in the transparency of the Majlis, Rasheed said that the Parliament Watch project would be releasing a report in the next few months detailing its findings in trying to bring greater scrutiny to parliamentary records in relation to members’ attendances and work rates.

However, amidst the debates over public accountability in the Majlis, a number of MPs have raised criticisms of the role of media in shaping public perceptions of parliament and its work.

(Maldivian Democratic Party) MP “Reeko” Moosa Manik said this week that while he agreed with the constitutional principle of publicly declaring assets and wealth, it was not an advisable time to do so in “today’s political atmosphere.”

The MDP parliamentary group leader remains embroiled in an acrimonious feud with private broadcaster DhiTV, owned by business magnate “Champa” Mohamed Moosa.

Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed concurred with Moosa, claiming that parliament should be concerned about concerted efforts by some media outlets to “disgrace and humiliate MPs.”

“This is not being done by DhiTV’s owner or its management, we know that now,” he said. “But previously we believed that it was planned and carried out by the management there. But that is not the case.”

Echoing a claim made by several MPs in past weeks, Riyaz alleged that unsuccessful candidates for parliament and their family members or associates were behind hostile media coverage of parliament.

“In truth, when the financial status of MPs is made known, some MPs will be worried and others will embarrassed,” said minority opposition People’s Alliance (PA) MP Abdul Azeez Jamal Abubakur.

“That is, those who have a lot of money might be very worried and those who do not will be embarrassed. Therefore, at a time when our status is being revealed in the media, I don’t accept at all that these facts should be available to just anyone.”

Independent MP Mohamed Nasheed meanwhile argued that MPs should not shirk from their constitutional responsibilities by blaming the media. “We will answer in the media to the things said in the media,” he said.

Along with debates over accountability, Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Mausoom claimed yesterday that despite the cancellation of a scheduled meeting in the Majlis’ main chamber , work was still ongoing in the parliament, which he believed was playing its part in pushing legislation to allow law enforcement officials to deal with violent crimes, despite certain “public perceptions” to the contrary.

The opposition party MP claimed that parliament was stepping up its workload to ensure the government, as the country’s executive branch, had the right powers and capabilities to uphold the law.

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Transport authorities look to complete Israeli airline deal

Transport officials have confirmed that a subsidiary of Israel’s flagship airline El Al is in the process of starting services to the Maldives later this year, despite some fervent anti-Israel sentiment in the country and recent administrative difficulties between the flight operator and its parent company.

Transport Minister Adil Saleem told Minivan News that relevant authorities were currently processing a license for Sun d’Or International Airlines to begin operating to the Maldives after talks began last year. He claimed such a move would create opportunities for both Israeli tourists to visit the country as well as facilitate pilgrimages for Maldivians to mosques around Jerusalem and other parts of the country.

Sun D’Or International, which is wholly owned by Israeli transport group El Al, was reported to have ceased operations from April 1 this year after the country’s Civil Aviation Authority (CAA) ruled that it relied on its parent company to administer and provide infrastructure to its operations – a situation it deemed “unsatisfactory”.

In a report for the Reuters news agency, despite reservations raised by the CAA on the manner the company was being run, the Israeli Transport Ministry claimed that the aircraft, maintained by El Al , were “completely safe” and any reservations about Sun D’Or International’s operations related solely to “administrative issues”. The report quoted ministry officials as saying that El Al could continue to use the Sun D’Or brand name commercially, but could not continue to operate the airline as an independent company.

A spokesperson for El Al was unavailable for comment when contacted by Minivan News at the time of press, but Adil Saleem claimed that to his knowledge, negotiations to begin services to the Maldives had not been affected so far by the Israeli CAA’s decision.

“I am not presently on top of the latest developments [with the company], but I believe we have almost completed the licence process for the services, which are expected to begin in October.

In recent months, the Maldives has seen a number of protests against Israel and its foreign policy along with claims by one former opposition party leader that the privatisation of Male’ International Airport would allow for Israeli bombers to go out of their way to refuel in the Maldives on their way to attack its neighbours in the Middle East. Saleem said he had taken such controversies on board.

“The [transport] department has gone through their procedures that it goes through with any airline planning to operate to the Maldives.  As Transport Minister I have looked at this like with any other airline,” he said. “Some Maldivians see Israel as controversial over the issue of Palestine. Yet Palestine accepts Israel as a state, benchmarking the point that I don’t see why we should not allow these flights.”

Saleem said that the Maldives already played host to a number of Israeli tourists at its resorts and that the airline would allow for a greater influx of guests to the country’s tourism industry.

The Transport Minister added that it had also become fashionable for some Muslims to travel to ancient mosques in Medina and Jerusalem, with the deal potentially allowing for local companies to provide pilgrimages to these sites.

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Parliament cancelled over ‘lack of work’

Today’s main parliamentary session was cancelled the basis of there being no work on its agenda.

Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Mausoom has meanwhile claimed that the Majlis was nonetheless “on track” with its legislative duties and was being unfairly criticised for a perceived spike in gang violence across the country.

Speaking to Minivan News, Dr Mausoom claimed that despite the cancelation of a scheduled meeting in the Majlis’ main chamber today, committee work was still continuing in the parliament, which he believed was playing its part in pushing legislation to allow law enforcement officials to deal with violent crimes, despite certain “public perceptions” to the contrary. The opposition party MP claimed that parliament was stepping up its workload to ensure the government, as the country’s executive branch, had the right powers and capabilities to uphold the law.

While alleging that current statistics indicated that there were an estimated 460 people on the country’s streets who should be held in custody over their suspected involvement in criminal activity, Mausoom said he believed that national media had incorrectly created an impression that potential parliamentary failings were solely responsible.

“There are people who have been sentenced [for criminal behaviour] that are currently out on the street. There is a public perception that a lack of legislation has led to this,” he said. “The media perception is that more legislation is needed to do their work and that they have to be detained somehow. However, I do not think this is the case.”

Mausoom said that the formation by the president of a National Crime Prevention Committee and the passing during the current parliamentary session of a number of bills, such as measures to punish individuals carrying items that can be used as weapons, served to highlight that the Majlis was working to try and deal with public concerns about gang violence and other major crimes.

“MPs and opposition parties have made agreements to try and work together to ensure major bills are passed quickly,” he said. “Two of the bills currently in the Majlis relate to criminal process and witness protection, but these will take time as they are very technical.”

Mausoom added that he understood possible frustrations from the public that parliament’s main session had been cancelled and would not reconvene till next week after Deputy Speaker Ahmed Nazim said that certain MPs wishing to present bills to the floor were unavailable to do so today.

However, Mausoom claimed that “public perceptions” about the cancellation of today’s main session and wider concerns that MPs may not be acting professionally were failing to address wider societal problems concerning crime that he believed represented a failure of the government to deal with the issue.

“The Majlis is not the executive [governing] branch, we are the legislative branch,” he said. “My question to the government would be; what is the missing piece of legislation that is preventing you from doing your jobs and protecting people?”

Mausoom’s comment come after parliamentary speaker and fellow DRP MP Abdulla Shahid told Minivan News last month that he believed that while the Majlis had become much more productive in the number of bills and legislation it was passing, the institution had still failed to live up to public expectations.

“The three branches of government are trying to deal with a situation where, as in any transition, the expectations of the public are at a very high level. When you have a new democracy come in, citizens will be wanting things to change overnight. [These expectations] have been seen in many countries,” the speaker said at the time. “The challenges that we have here – with the judiciary and parliament – are not because we are unable to perform, but that we are unable to perform to the expectations of the people.”

Shahid accepted that subjects such as outlining a clear and clarified penal code, as well as an Evidence Bill to support judicial reform and policing, were vital areas needed to be addressed by MPs, with partisan behaviour between rival parties within the Majlis creating the impression that there was no interest in having such bills passed.

In order to facilitate a faster moving reform of criminal legislation, Shahid claimed that talks had been opened during March between the various political stakeholders required to finalise any agreements.

“I met with party leaders and also the chair of all the committees yesterday (March 30). There is the general desire amongst the leadership to find ways of increasing the productivity rate of the house. We feel even though we continue to do work ahead of what any other parliament had done, still we are far behind in meeting the public’s expectations,” he added.  “The reality is that we need to meet these public expectations. The committee chairs have given me an agreement that they will try and finds ways of fast tracking many of the bills, while political parties supplied an agreement that on issues on which they may disagree, they will endeavour to deal with the technical and more mundane bills faster.”

Aside from MPs working along partisan lines, Shahid said that the issue of language was another significant challenge for members to overcome – especially in translating very technical proposals relating to legal definitions into Dhivehi from other languages.

While other Commonwealth countries were able to take existing legislation and adapt the document accordingly, the Speaker took the example of the Penal Code. In its original English draft, put together by Professor Paul Robinson at the University of Pennsylvania Law School, the code was said to have perfect sense, yet the Speaker said it did not translate directly into the Dhivehi language.

The speaker’s comments were generally shared by certain local NGOs like Transparency Maldives, which claimed that it believed parliament was additionally failing to meet its responsibilities as set out in the national constitution.

Aiman Rasheed, Projects Coordinator for Transparency Maldives, told Minivan News earlier this month that although it accepted that there had been improvements within the effectiveness of the Majlis concerning the amount of legislation passed, the NGO was concerned that parliament had failed to work independently and pass vital bills such as a national Penal Code.

“Shahid is right when he says that parliament has failed to meet public expectations,” he claimed at the time. “It is not just in meeting public expectations that the Majlis has failed in, but constitutional expectations as well.”

Rasheed said that although parliament was holding the president and the executive accountable for their actions, he believed that there was a failure to review legislation in terms of financial and political impacts before it was being passed from parliamentary committees back to the Majlis.

Rasheed said that the NGO had spoken with 15 MPs from across a number of political parties including the Maldivian Democratic Party (MDP) and the DRP as part of a project called Parliament Watch designed to try and put a spotlight on governance and political decision making. From these discussions, Rasheed claimed that the NGO had uncovered a wide consensus of concerns over parliament’s ability to review and research the legislative process.

“All the parliamentarians that we have spoken to said that they believed that the current set up is not sufficient for parliament to meet its constitutional requirements,” he said. “There is no proper system of review mechanisms [within parliament].”

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Airport developer concedes certain “mistakes” made amidst service improvement aims

The CEO of Male’ International Airport, which is currently operated by Indian infrastructure group GMR, has said that although the company had made certain mistakes in terms of its finance policy of late, management was confident of learning from them to deliver significant changes to the site over the next three months.

Andrew Harrison, who took the CEO position at Male’ international Airport when GMR took control of the site in November, told media today that despite significant work already underway on overhauling behind-the-scenes operations, he was still learning how to deal with stakeholders like airlines and exporters at the site.

The week has threatened to be potentially difficult for GMR, with reports emerging in the press of the company’s alleged plans to increase land lease rent at the airport by 50 percent – the first such price change enacted in a decade. News of the announcement had led some local airlines and a number of import companies raising concerns at the reported increases and the possible impacts on their operations.

Harrison nonetheless claimed that he hoped the public, as well companies working with the airport operator, would soon see more of the changes resulting from its investment in the form of operational and aesthetic improvements at the existing terminal.

“People are expecting to see a lot of change immediately, the change does take a little time, but actually there is a lot of work going on behind the scenes. What we will now see over the next three months is rapid progress where the changes will be more visible to the public,” he said.

“We had, through our concession agreement, been given a mandate to improve levels of service in the existing terminal areas, so this was focused on baggage processing time and baggage delivery time and the checking of passengers. What we are recognising is that people have much greater expectations, so we are spending more money than we are required to in terms of the concession agreement to actually make [the terminal] a much nicer environment.”

The pledge comes as newspaper Haveeru this week reported that airlines such as Island Aviation and seaplane group Trans Maldivian Airlines were concerned at how the implementation of future rent raises could impact on their operations.

Some importers working for the tourist trade have also told Minivan News that they have faced a sudden “100 percent increase” in charges for containers that they need to hire at the airport for their stock.

One importer and supplier of alcohol to a number of tourist properties in the Maldives, who wished to remain anonymous, told Minivan News that a number of the company’s business peers had looked to form a committee over concerns at rate hikes they claim have been deemed “non-negotiable” by GMR.

According to the supplier, the airport operator had acted “unprofessionally” in suddenly announcing that the monthly rates for 70 feet containers at the site were being doubled, meaning certain companies potentially face an additional bill of up to US$45,000 a year to work from the site.

Although the supplier said that they were being given a month to rewrite terms and conditions within new contracts that they were unhappy with, the container rent was seen as a “non-negotiable issue.”

In today addressing the issue of lease rent specifically for local airlines, Harrison denied that any official price had been set, adding that negotiations were now being held with key lease holders like Island Aviation and the company’s sea plane operators over cost amendments that he said remained fully open to negotiation.

Amidst press reports about certain concerns by some lease holders over the potential rise in airport rent and the possible impacts on their operations, Harrison stressed that in future, the company would aim to learn lessons and consult stakeholders “much in advance of any envisaged changes”.

However, the Male’ International Airport CEO claimed the company would still aim to push ahead with adjusted charges in areas such as land lease rent to ensure changes could continue to be funded at the airport.  Harrison claimed that this rate increment would remain one of a “few” financial changes expected to be needed at the airport at present.

Though he did not confirm when the decision to potentially amend rent rates had been decided, Harrison claimed that GMR was working from a long-term development and cost plan set out in its original concession agreement.

“I want the airport to be profitable, but I want it to be responsibly profitable, because with those profits we are able to do many things including the development of the airport ongoing. [By] November 15 2011, most of this work will be done, but actually we will continue, it won’t end. There will continuous improvements all the time,” he added. “These improvements have a cost to them, so we need to have a business model that is responsibly profitable and trying to be responsibly profitable means that when you have different ways of doing things, you must engage your stakeholders in dialogue. We didn’t fix a [rent] price.”

According to Harrison, the potential increase in land rates from US$6 per square metre to US$9 for the same area were primarily expected to impact the operations of Island Aviation and the airport’s two seaplane operators with discussions already underway with them in addressing the issues.

A spokesperson for island Aviation confirmed to Minivan News that the company was currently in a “dialogue” with GMR though no out come had as yet been reached.

In trying to allay fears of further cost rises for stakeholders, Harrison claimed that he hoped to try and address the airport’s partners and customers like suppliers and service operators differently over future notices of change.

“I think one of the lessons that we are also learning is that people would like to have this dialogue much in advance of any envisaged changes. So what we are saying is that, ‘right, we have done a range of changes, let’s stop there now,’” he said. “Anything we want to do let’s have a discussion well in advance to understand the impact of changes we well make.”

Harrison took the example of requirements for new VIP and other lounges at the airport that had been requested by airlines to bring them up to the standards expected from “premium passengers”. The airport CEO said that he expected about US$500,000 to be spent on the project in total to try and meet the demands of airline companies.

“In this business model, what we’re trying to see is how much has to be spent and how which will be recovered in the time available. Don’t forget, this terminal has a life of about two and a half years before we move over to the new terminal and on the basis of that can we stay within the existing costs,” he said. “On the basis of that, can we stay within the existing costs? If we can’t what will be the difference [in charges]? Let’s discuss this with the airlines first before we announce, publish or indicate anything.”

In future, Harrison claimed that the company would try and change its current system of issuing communication about proposed changes before starting dialogue with the companies involved, claiming he would look for “better ways” to do things.

Alongside the issues of rent, Harrison conceded that he was not entirely happy with the manner that the company had reacted to a decision by the Maldivian government last week to amend an longstanding set US dollar exchange rate of Rf12.85 to within 20 percent above or below the figure to attempt to alleviate shortages of the currency.

“We’re human beings and sometimes we don’t always get it right. One example of where we didn’t get it right was that as soon as the announcement came from the Maldivian Monetary Autjority (MMA) about floating the exchange rate, we issued a communication announcing an exchange rate of Rf15.42 [to the US dollar],” he said. “That was incorrect of us to do so quickly. We didn’t need to do it. We could have waited to find out what financial institutions such as the banks were going to do before we did that. I have issued a further communication indicating that we will take the best available rate made by the three banks here in the Maldives.”

An interview Minivan News conducted with airport CEO Andrew Harrison last month about his experiences in the Maldives and plans for the airport can be read here.

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Public Accounts Committee summon decision makers over dollar rate revamp

The parliamentary Public Accounts Committee has today summoned members of government and the Maldives Monetary Authority (MMA) to present the research behind a recent decision to amend the set US dollar exchange rate of Rf12.85 to within 20 percent of the figure.

Ahmed Nazim, MP for the People’s Alliance (PA) party and a member of the Majlis’ Public Finance Committee, has said it is scheduled to meet with members of the government and the MMA at 4.15pm this afternoon in order to get an insight into the research and statistical information that led to them taking the decision.

Nazim claimed that under its mandate, the Public Finance Committee was not in a position to call for any amendments to the president’s decision to amend the exchange rates, which have reportedly led to banks charging Rf15.42 a dollar to customers – a rate thought to have exceeded prices offered on the formerly institutionalised blackmarket.

The new exchange rates bought into effect as last week were claimed by President Mohamed Nasheed to ensure “longer term prosperity” in the Maldives.  The decision was praised from the International Money Fund (IMF) as being a “bold step” towards providing more sustainable finances.

Such praise came as the country’s Economic Development Minister, Mahmoud Razee, argued that the artificially fixed Rf12.85 exchange rate on the dollar has meant there was little certainty of the exact value of the Maldivian currency in the present market.

However, this so-called dollar float has also led to derision and protests from different factions representing the main opposition Dhivehi Rayyithunge Party (DRP) as well as criticisms from some private sector economists that the measures still fail to address the high levels of state expenditure that threaten to shatter any attempts to balance national finances.

Despite the committee itself not being able to propose any amendments to the national interest rate, Nazim said the meeting was needed to ensure the reasons for taking the decision to amend interest rates were just.

“We have been following this [exchange rate] decision and we knew what the situation was.  The committee just want to make sure the correct legal steps were followed,” he said.  “We just have to make sure that they have done good analysis and are aware of the fiscal impact of their decisions in the long term.”

Nazim added that relevant authorities had already responded to the committee ahead of a deadline set for midday yesterday (April 17) to supply data related to the exchange rate decision.

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

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

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

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

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

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

A local financial expert working in the private sector, Ahmed Adheeb, had also warned that a shortage of foreign currency would reduce the prospect of foreign investment, because of the difficulty of repatriating profits to other countries.

“Dhiraagu, for instance, is probably having a lot of difficulties repatriating dividends to Cable&Wireless,” Adeeb said. “This can lead to a fall in investor confidence. When that happens, foreign investors will either try to exit or stay away. We will only see foreign investment that earns dollars, such as resorts.”

The problem would soon lead to inflation and difficulties importing essentials such as fuel and medicines, he suggested, and could potentially have a major impact if the State Trading Organisation (the country’s primary importer) found itself unable to acquire foreign currency.

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