Author: Eleanor Johnstone

Maldives a proud part of ICC: Ghafoor

The Maldivian government has said it supports the mandates and standards of human rights and legal processes held by the International Criminal Court (ICC) in conjunction with the United Nations Charter.

Gender violence and social unrest were among the issues raised during the session.

Permanent Representative Ghafoor Mohamed addressed the Tenth Session of the Assembly of State Parties to the ICC last week. The session began in New York City on December 12 and will conclude on December 21.

Reaffirming the Maldives’ commitment to the Rome Statue, Ghafoor said the country is “proud to be among the group of countries who have committed themselves to combat impunity, in respect of international law and to provide justice to those victims who have often been forgotten in the labyrinths of diplomacy.

“We strongly believe that the rule of law in societies, at all levels is a crucial ingredient to the realization of socio economic objectives, and a reinforcement of core democratic principles. We are a strong supporter of the International Criminal Court and its conformity with the United Nations Charter in strengthening the rule of law and the respect for human rights”, he stated.

Reflecting on the protests and revolutions unfolding in the Middle East and North Africa, Ghafoor pushed for governments to carefully consider their peoples’ voices and visions for their states.

The Maldives demonstrated its commitment to democracy during the Arab Spring and recently over the Syrian revolution.

The Maldives was one of the first three countries to recognise Libya’s National Transitional Council (NTC) as Libya’s sole legitimate representative. In a letter sent to chief Mustafa Abdul Jalil, expressed the President’s hope that Libya would “emerge as a free and democratic country, in which fundamental human rights can be enjoyed by all.”

Earlier this month, the Maldives exercised its powers as a member of the United Nations’ Human Rights Council to help convene a UN Emergency Session on human rights in Syria. The Maldives supports increased foreign intervention regarding the state crackdown on civilian protestors.

However, Maldivian police have lately extended controversial blogger Ismail ‘Hilath’ Rasheed’s detention over his role in a peaceful silent protest for religious tolerance without charges.

On the other hand, religious Adhaalath party has agreed to meet with ruling Maldivian Democratic Party (MDP) to discuss issues surrounding the upcoming protest to defend Islam, scheduled for December 23. MDP is meanwhile planning to hold a counter-rally on the same day.

Gender crimes were also raised as an issue of high importance.

“Gender crimes are one of most heinous forms of crimes against humanity and it is imperative that the Court continues its case law and jurisprudential work,” Ghafoor said.

A related topic was recently raised in the Maldives when UN Human Rights High Commissioner Navi Pillay called for a moratorium on flogging of women as a punishment for extra-marital intercourse. The punishment is primarily administered to females in the Maldives, where paternity tests are unavailable.

Minister of Foreign Affairs Ahmed Naseem rejected Pillay’s view on the grounds that Islamic law is inarguable.

This is the first time the Maldives has participated in an Assembly of State Parties to the ICC since acceding to the Rome Statue earlier this year. Other new members include the Philippines, Cape Verde and Vanuatu.

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Independent MP proposes amendment to “defend” local businesses from airport developer

Kulhudhuffushi-South Independent MP Mohamed Nasheed has proposed an amendment to the Business Registration Bill in a bid to reserve airport shops and services for local ownership.

India infrastructure giant GMR currently claims exclusive rights to certain duty free items to be sold at Ibrahim Nasir International Airport (INIA), he said.

“My view is that GMR’s role has shifted from management to ownership,” Nasheed told Minivan News. “This is all about excessive and detrimental penetration into the local economy.”

A parliamentary committee is reviewing the bill and its proposed amendment.

In response to inquiries from Minivan News, GMR issued the following statement: “As part of the concessionaire we follow the terms and conditions of the agreement between the government of the Maldives and us and expect the government too to abide by it.

“The concessionaire agreement grants and specifies entitlement to directly or concession out retail activities at INIA.”

GMR is currently leasing Ibrahim Nasir International Airport (INIA) for a 25-year development project. Upon assuming management of the airport earlier this year, all airport shop contracts were set to expire on December 31, 2011 as per an earlier agreement with Maldives Airline Company Limited (MACL), with the exception of Spice Island.

The Economic Ministry today announced that GMR Male’ Retail has been registered in the Maldives. It is one of two locally-registered businesses under the corporation’s name.

Nasheed said his proposal refers to “duty free, customs clearance, cargo clearance, and the management of bonded warehouses,” industries which he believes can safely be trusted to Maldivian ownership.

“I have always objected to divesting ownership of Maldivian businesses with foreign investors when the business is within the local capacity and competency,” he explained.

“I respect that there are some areas of business and industry in which the Maldives has neither capacity nor competency. But the enterprises covered in my proposal have traditionally been local affairs. There is no reason to exclude them now simply as perks for foreign investors.”

Nasheed pointed out that many Maldivian businesses grew up around and depend on airport operations. Maldivian Island Aviation has allegedly lost business since the transfer of management, while the group running the Commercially Important Persons (CIP) lounge is now defunct.

In November of this year, GMR announced its intention to take control of cargo handling services starting in 2012. The move has allegedly forced Maldivian businesses Freight Forwarding Services and Bonito Group to lay off several employees.

In recent news, the Alpha MVKB duty-free shop at the airport was forcibly vacated by GMR and Customs officials eight months after GMR’s original notice. Rulings from the Civil and High courts upheld GMR’s right to terminate the shop’s contract, however company CEO Ibrahim ‘MVK’ Shafeeq has launched a protest under the slogan ‘Go GMR Go!’

“I understand the contractual obligation on the government’s part, and I respect the bidding process and the business competition that comes with it,” Nasheed reflected. “The airport is a gateway for tourism, but GMR’s excessively favorable terms are excessively disadvantageous to Maldivians.”

The Maldivian government signed a 25-year contract with GMR on 28 June 2010.

Under the contract the Maldivian government receives:

  • A sum of US$78 million as advance payment which is to be deducted from the profit due to government.
  • 1% of the Gross Revenue in the first four years (2010-2014) and 10% of the Gross Revenue from the general business in the remaining years.
  • 15% of the Gross Fuel Sales in the first four years and 27% of the Gross Fuel Sales in the remaining years.
  • GMR is also to invest US$375 million over a period of 25 years in construction of the new terminal.

Nasheed claimed that the government saw the GMR deal as an income generating source to solve income problems at the time. “But the deal wasn’t revised over the years,” and GMR has meanwhile made significant profits from jet fuel sale.

“GMR gets its fuel from State Trading Organisation (STO). STO rates have remained the same over the past year, however GMR’s rates have been raised twice.” He added that landing and airline fees have increased, and voiced concern that the price hike would deter business.

Meanwhile, GMR has recently opened a 30-office Airline Offices Complex, and several airlines including Ethihad and Hainan have lately begun services to Male’.

The Business Registration bill reserves certain areas of business for local owners. Nasheed said his proposal aims to enlarge that domain by two to three commodities.

“I intend to use my role as a parliamentarian to propose this amendment,” he said. “It’s just an initial step for the proposal, and I’m not sure whether it will survive the whole process. But I’m hopeful and I feel good about having done it.”

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Blogger arrested as police investigate both protests

Controversial blogger Ismail ‘Hilath’ Rasheed was arrested this evening for his involvement in last Saturday’s ‘silent protest’ for religious tolerance, which turned ended in violent after several individuals attacked the group with stones. Hilath was taken to the hospital with head injuries.

According to the Sub Inspector Ahmed Shiyam, Hilath was arrested under a Criminal Court order issued today.

Rasheed’s arrest follows the blocking of his blog by the Communications Authority of the Maldives (CAM) on the order of the Ministry of Islamic Affairs. The Ministry made the request on the grounds that the site contained anti-Islamic material.

Police are currently interrogating some of the approximately 30 individuals who gathered at Artificial Beach on Saturday. Calls for an investigation of the protest were made by religious conservative Adhaalath party, NGO Jamiyyathu Salaf, and ruling Maldivian Democratic Party (MDP) MP ‘Reeko’ Moosa Manik.

While pursuing its investigation of the protest for religious tolerance, police have also summoned the developer of the website 23December.com, which this week published slogans calling for the murder of anti-Islamic activists in what organisers later described as a “technical mistake”.

Developer Ali Ahsan told Haveeru that police wanted to understand who was responsible for the website’s conception, development and published material.

“The police also questioned whether those inappropriate phrases or those slogans [calling for the killing of people] were present when the information was published on the website,” he said.

Ahsan, who also edits online publication DhiIslam, said police had confiscated the hard drive used for the development of 23December.com, Haveeru reports.

The investigation into the aggressive error began yesterday, when police questioned Adhaalath Party President Sheikh Imran Abdulla and Civil Coalition official Abdulla Mohamed over the death threats.

Sheikh Imran and Mohamed did not speak directly to the press, however their lawyer, former State Minister of Islamic Ministry Sheikh Mohamed Shaheem Ali Saeed, confirmed that police asked them about the slogans published on the website.

Shaheem said that slogans calling for murder were not on the website when it was launched, adding that the “content were manipulated by some people spying on the website”.

Abdullah, who is the lead organiser of the the protest, also told Minivan News on Tuesday that the team had not seen the slogans calling for murder until the day after the launch. ”We corrected the mistake as soon as it was brought to our notice,” Abdullah said.

He said the slogans were earlier attributed as a “mistake on technical team’s side” after they identified some loop holes in the website security, adding that their “suspicions were confirmed” when the website was hacked on Tuesday morning.

President’s Office Press Secretary Mohamed Zuhair today issued a statement blaming organisers of the 23 December demonstration for disrupting public order to achieve “hidden agendas”.

He said he not believe that removing the violent slogans from the promotional website was sufficient proof of non-violent intentions.

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Moosa calls for investigation of protesters who called for religious tolerance

MDP MP ‘Reeko’ Moosa Manik has called for an investigation of the “silent protest” for religious tolerance, held last weekend at the Artificial Beach.

The religious Adhaalath Party and NGO Jamiyyathu Salaf have also asked the police to investigate the participants.

The group, who dubbed themselves ‘Silent Solidarity’, issued a press release following the event stating that the cause of the gathering was “to make the Maldives and the international community aware of the rising religious intolerance in the Maldives, and to condemn the constitutionally-endorsed suppression of religious freedom. It is also intended to denounce the increasing use being made of Islam as a tool of political power.”

The actual protest, held on International Human Rights Day, turned into a bloody affair when controversial blogger Ismail ‘Hilath’ Rasheed was struck on the head with a stone. The other 15-30 protestors were also attacked.

Moosa has said that the protests should be treated in the same way that slogans calling for the murder of non-Muslims, published “by accident” yesterday on the Maldivian website 23December.com, are being investigated by police.

The website is currently organising a protest to “defend Islam” on December 23. The ruling Maldivian Democratic Party (MDP) recently announced its intention to hold a counter-rally on the same date.

According to Haveeru, Moosa said the rising number of religious activities are the “first in a series of events conspired to create chaos in the Maldives”. He insisted that the protest threatens national security, and admitted that MDP’s decision to protest against the religious rally would create further problems.

Press Secretary Mohamed Zuhair today said that those organising the public demonstrations to protect Islam had a “hidden agenda”, and had “increased the scale of danger to public order”.

According to a statement published on the President’s Office website, Zuhair claimed religious scholars Sheikh Adam Shameem bin Ibrahim and President of Adhaalath Party Sheikh Imran Abdullah had publicly associated their names and images with the 23December.com website. He believed that their reputations as respectable scholars were at risk over the affair.

Although the violent slogans were removed and said to be the result of hacker activity – at one staged blamed on intelligence officials – Zuhair called the removal “meaningless, because newspapers and internet websites are usually published as daily editions.”

The publishers have not refuted their violent objectives by simply removing the slogans published on their inaugural edition, he added.

Head of the National Security Committee and Thodoo MP Ali Waheed noted that the cases were of national interest and would be put on the agenda soon.

Moosa further claimed that the religious agitation was a reaction to the country’s successful tourism industry. “The Maldives’ tourism industry’s growth has attracted the foreign eye”, and foreigners are joining hands with locals to create national instability, he claimed.

Secretary General of Maldives Association of Tourism Industry (MATI) ‘Sim’ Mohamed Ibrahim said the recent political and religious activity has not affected foreign investment or tourism.

“By and large, the Maldives is peaceful and a good place to invest,” he said.

He said MATI is not taking a stand on the issue.

“All people have the right to express themselves according to their constitutional rights. All we are saying is that you have to present a balanced picture of what’s going on. There is enough written about the Maldives for people to decide for themselves” if and how to invest, he said.

Foreign travelers and investors are not concerned about the politics on Male’ and other islands, Sim explained.

“The question for them is, how safe are their investments and how safe are they on resorts,” which Sim said “exist by themselves.” He added that an investor’s chief concern is whether the Maldives’ legal system enables or protects his/her business.

“The Maldives’ system still makes it very difficult for foreigners who want to invest,” Sim observed. Under the current system, investors wade through “layers and layers of bureaucracy” involving multiple ministries and councils.

“You would assume that foreign investment could be handled by the Ministry of Economic Development, or that a Foreign Investment Services bureau would allow someone to do everything in one go,” Sim suggested. “But often, people are referred to a website for information. Now, it takes time for paperwork to be processed, and too many people are needed to make a decision. It’s very discouraging to an investor,” he said.

Formerly, foreign investment was handled under Invest Maldives. Since the company drifted into an inoperative stasis following the successful GMR bid, Sim said no other government group has actively promoted foreign investment in the Maldives.

“MMPRC [Maldives Marketing and PR Corporation] is in charge but it is hard to see them carrying the Maldives’ banner and selling the various products Maldives offers,” he claimed.

“Environment is the main selling point for the Maldives, and you don’t need to do much to sell that. But someone needs to build confidence and value among investors.”

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MVK to protest against GMR following eviction of Alpha MVKB duty free shop

MVK Maldives is organising a protest against airport developer GMR at 8:30pm on Thursday evening in Male’, following the eviction of the company’s duty free shop from Ibrahim Nasir International Airport (INIA).

“We are just demonstrating our opinions and dislike of what GMR has done to us and to get public responses,” said MVK CEO Ibrahim Shafeeq.

The protest comes after the High Court upheld an earlier Civil Court ruling that GMR’s termination of its contract with Alpha MVKB Duty-Free was lawful.

The High Court noted that GMR gave notice on March 1 and, as per the agreement, the contract terminated on March 31. As no party could extend the termination notice, the court concluded that MVK had no right to remain at the airport without approval from GMR. Alpha MVKB was originally leased for 10 years under an agreement between MVK and Maldives Airports Company Limited (MACL), with a one month termination clause, the court noted.

On December 4, GMR officials began dismantling a temporary wall outside the Alpha shop and packing up the shop’s contents. Customs officials intervened to oversee the management of the shop goods, which included alcohol products.

Shafeeq claimed that GMR’s actions were “unprofessional”, and he further demanded an apology from Minivan News claiming that its coverage of GMR’s eviction of Alpha MVKB had damaged his reputation.

“What GMR has done is without my permission and without consultation of Customs. They broke into our premises and were stealing our goods and we don’t know where they are now,” he alleged.

“They ransacked the place, we don’t know what they did with the goods, they are under Customs’ purview. We don’t know where the goods are.”

Asked what he hoped to achieve at tomorrow’s protest, Shafeeq replied “Achieve? To get the public opinion on whether we are right, or they are wrong.”

A petition is currently being circulated to register public support for MVK’s cause. The Alpha shop’s General Manager Ahmed Nazim told Haveeru that 30 such papers have been set up outside the MVK office at the Carnival area.

MVK was reported in Haveeru as having provided financial backing to the ruling Maldivian Democratic Party (MDP). Shafeeq confirmed the relationship, but said that the planned protest had no political connotations.

“This is nothing to do with any political party. It’s just with MVK employees and the people who are with MVK, who like us, and will sign a petition.”

MVK currently employs “close to 500 employees in Addu, Fuvahmulah, and Male’,” Shafeeq said.

“We are the major supplier for the Maldives hotel industry,” he claimed, adding that the company did not have plans to open another shop.

Pick up trucks with loudspeakers circled Male’ today calling on aiport employees and their families to join the protest.

GMR said the protest would not impact airport operations.

“We are continuing with business as usual, we have an airport to run and cannot stop our operations for this protest,” a spokesperson said.

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Border loopholes benefit human traffickers: Immigration Controller

“If one country has a loophole, all countries suffer,” said Immigration Controller Abdulla Shahid, referring to the Maldives’ lack of a border control system amidst rising concerns over human trafficking. “The present border control system is only helping human traffickers.”

Authorities have reported a daily increase in human trafficking to the Maldives, particularly in the case of expatriate workers. The industry has a calculated value of US$123 million, making it the second largest contributor of foreign currency.

“This is a serious issue, there are about 40,000 illegal workers in the Maldives right now,” said Minister of Foreign Affairs Ahmed Naseem. “A border control system would be useful, especially in the future for maintenance. But there is a lot to do within the country as well, and we are currently trying to address these matters.”

The Maldives currently uses an eight year-old, outdated border control system. Plans to upgrade to a modern system have been delayed for over a year on allegations of corruption.

In November 2010, the government approved a Rf500 million (US$39 million) Border Control System by Malaysia’s Nexbis Limited, proposed by the Department of Immigration and Emigration.

Shortly thereafter, the Anti-Corruption Commission (ACC) requested that the agreement be halted due to “a serious public complaint” alleging corrupt dealings. The President upheld the ACC’s request in January 2011, by in May the Cabinet approved the program.

The ACC subsequently renewed its concerns and filed a case at the Civil Court and submitted a report to the Prosecutor General’s (PG) office earlier this month. The report accuses Former Controller Ilyas Hussain Ibrahim and Director General of Finance Ministry, Saamee Aqeel, then head of the Tender Board, for allegedly abusing their authority for undue financial gain.

Nexbis threatened legal action over the delay, citing millions of dollars in losses over equipment already imported to the Maldives. Shahid noted that the equipment is still sitting in Customs.

Immigration matters

Shahid said the public misconception that Immigration is a mundane department doing no-brainer tasks has led to a general misunderstanding of need for a border control system.

“Immigration personnel have to be trained to detect forgery, to profile passengers–we recently had courses for officers on how to detect physical alterations like makeup.

“In general, the public is not aware of the system’s value. It is to everyone’s benefit, even distant countries, to have a strong border control system in the Maldives. Terrorism and human trafficking involve other countries and their borders. If we have good communication, starting at Immigration, and a system, then we have good results.”

Currently a passport check requires an individual to manually scan hundreds of photographs, Shahid said. Without the key components of a modern system – facial recognition, finger-print identification technology, and eye scans – “people who were deported on criminal violations can re-enter the country. If they have a new or fake passport, we rarely detect them with our current system,” Shahid explained.

“A passport is just a piece of paper nowadays. The modern system, with the recognition technology, is almost a 100 percent guarantee of proper identification,” he added.

Nearby Sri Lanka, Thailand and Malaysia have been using modern systems for years.

“I think the proof is strong enough”

Shahid believes that cases against Ibrahim and Aqeel will be difficult to ignore in a court of law.

When the Nexbis system was first considered, a proposal was sent by Immigration to the National Planning Council. According to Shahid’s review of the documents, the final contract drafted deviated significantly from the initial proposal.

“The proposed system could be implemented in six months for US$4-5 million, with the company charging a further US$150-200 thousand per year for maintenance,” he asserted.

“According to this, the Maldives would pay US$8 million in the first year to Nexbis. Over 20 years that would be US$4 million paid annually. That’s fair. But right now the Nexbis plan is one-third of the budget.”

Taxes are also a consideration, particularly given the high numbers of foreigners and expatriates traveling through the Maldives.

“In 2011 we are reaching 1 million foreign arrivals. If we charge US$2 for arrival and US$2 for departure, that’s US$4 per person. Annually, the government would collect US$4 million for Nexbis. It would break even.”

Nexbis proposed these charges as part of its 20-year contract with the government in 2010.

“This means that neither the government nor the Maldivian public have to pay in exchange for a state-of-the-art border security protection,” Nexbis earlier claimed.

Shahid also noted that GMR is expanding Ibrahim Nasir International Airport (INIA) to accommodate 3 million arrivals annually, indicating that revenue will increase.

Nexbis also planned to levy a US$15 fee for expatriate identification cards. With the current 100,000 registered expatriates, Shahid said, the company receives US$1.5 million annually from expatriate cards alone.

“Nexbis will get US$27.5 million in 2025, according to the current statistics,” he said. Calculating for a gradual increase of arrivals over the next 20 years, “the generated revenue could build an airport of GMR’s standards and implement an up-to-date border control system.”

According to Shahid’s calculations, the approximate cost in the first year of installment and operation (US$8 million) of a Nexbis-quality border control system is far lower than the cost proposed in the final contract (US$39 million).

Shahid earlier estimated that maintaining a free system given by a donor country would cost at most several hundred thousand dollars a year, and said he was unsure as to why such an agreement had ever been signed.

“I don’t know much about the details of the ACC’s report,” he concluded. “Since I saw the contract for the Nexbis system, my argument has always been that the amount charged is ridiculous. It should not be done and must be halted. It is wrong.”

Ilyas Hussain Ibrahim declined to comment on the grounds that the issue was “politically risky.”

The Nexbis case is currently the largest corruption case before the courts and PG, the ACC confirmed. While corruption charges are regularly issued in the Maldives, resolution at the PG level is not so common. Speaking to Minivan News on the occasion of International Anti-Corruption Day, ACC President Hassan Luthfee said that of the 16 cases filed with the PG this year, zero have been addressed.

Vice President Muaviz Rasheed today said the ACC had received no information from the PG, but was hoping for the Civil Court’s ruling by the end of this month.

“The Civil Court has not been cooperative with the ACC on all counts, however the hearings ended in late November and we expect a ruling within the month,” Muaviz said.

Banana republic?

Although Shahid is confident in the court, he is unsure when the Maldives will take actual steps towards updating its border control system.

Without local capacity and expertise to produce a state-of-the-art border control system, the Maldives would turn again to the international market. Shahid said there are many options: “we could go anywhere, we could even get it as foreign aid.”

But after the dealing with Nexbis, withstanding international scrutiny could be difficult.

“Nexbis sees the Maldives as a banana republic that it can squeeze money out of,” Shahid observed.

With a score of 2.5 on Transparency International’s Corruption Perception Index and ranking 134th out of 185 countries, the Maldives may not be so inviting to foreign investors.

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High Court rules against Alpha MVKB duty free shop

The High Court today backed the Civil Court ruling that GMR’s decision to terminate its contract with Alpha MVKB duty free shop at the Ibrahim Nasir International Airport in March was valid, and that MVK’s request to extend the notice until December 31 violated its contract with GMR.

According to the ruling, GMR had vacated the Alpha MVKB Duty Free Shop at Ibrahim Nasir International Airport (INIA) legally and according to the agreement between both companies.

The High Court noted that GMR gave notice on March 1 and, as per the agreement, the contract terminated on March 31. As no party could extend the termination notice, the court concluded that MVK had no right to remain at the airport without approval from GMR.

Alpha MVKB was leased for 10 years under an agreement between MVK and Maldives Airports Company Limited (MACL). The agreement requires the party wishing to terminate the agreement to give a one-month notice; the High Court stressed that both parties had that right.

The High Court also denied MVK’s request for a temporary order allowing them to run the duty free shop through December 31 on the basis that the case had been closed.

Airport shops contracted under Maldives Airports Company Limited (MACL) were allowed to remain in operation for one year after GMR took over airport management. As per the MACL contracts, all shop contracts will terminate on December 31 of this year.

GMR said it has given the required 90-day notice to all shops except Spice Island, which will remain in service. Plans for new shops are unclear, however GMR has said it welcomes any company offering a product appealing to locals and foreigners alike.

Minivan News made repeated calls to Alpha MVKB Managing Director Ibrahim Shafeeq, MVK  and Alpha MVKB offices, but had received no response at time of press.

GMR officials today said they could not issue a comment on the case until they received an official notice of the ruling.

Earlier this month, Customs officials intervened when GMR officials began dismantling a temporary wall outside of the Alpha shop and packing up goods.

“Duty-free goods are Customs’ responsibility, and we will be involved in the process of opening or closing duty-free shops,” said Customs Director Ismail Nashid. “As for the goods involved, there are several options for the shop owner to choose from including importing the stock to the Maldives or selling it internationally.”

GMR officials earlier said that action was taken against the shop after several notices for evacuation had been ignored, thereby complicating the airport renovation schedule.

The airport renovation is the single largest foreign investment in the Maldives at US$400 million. GMR is upgrading the old terminal ahead of completing construction of the new terminal in 2014, and will operate the airport for 25 years under a concession agreement signed last year with the government.

GMR has faced repeated legislative battles since it entered the contractual agreement.

Opposition Dhivehi Qaumee Party (DQP) earlier filed a case challenging GMR’s right to collect a US$25 (Rf385.5) Airport Development Charge (ADC) and US$2 (Rf30.8) Insurance Charge commencing January 2012. The DQP had claimed that a pre-existing Airport Service Charge (ASC) of US$18 (Rf277.56) invalidates the ADC.

The Civil Court ruled against GMR on December 8 on the grounds that a clause in the concession agreement with GMR violated the Airport Service Charges Act of 1978, which was amended in 2009 to raise the charge to US$18 for foreign passengers and US$12 for Maldivians above two years of age.

The government has said it will likely appeal the lower court’s ruling, given its contractual obligation to GMR.

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Thai vessel stranded on reef facing daily Rf700,000 fine, oil spill risk

The owner of Thai fishing vessel that ran aground on the reef along Shangri-La Villingili Island Resort last month will today be issued a Rf700,000 (US$45,400) fine per day for failing to salvage the boat within the legal 25-day period.

Transport Minister Adil Saleem said the fine was within the legal limit of Rf1 million. The 25-day resolution period expired yesterday.

Saleem said removal of the “Emerald Reefer” was attempted once with a tug in Addu, “but apart from that we have seen no activity or movement.” He added that the Transport Authority earlier ordered the owner to have all oil and other hazardous materials removed, “but we haven’t seen anything done in that regard.”

The ministry planned to alert the City Council and Maldives National Defense Force (MNDF) later today to be prepared for potential leaks or problems relevant to the grounded boat.

Saleem said that the issue was being handled by the Transport Authority and the boat owner’s appointed agent in the Maldives, which has been responsive and cooperative. However, if the owner fails to pay the fines the boat will be sold.

The Transport Authority earlier received a letter from the vessel’s Maldivian agent claiming that the owner is not attempting to salvage the boat, Haveeru reports.

“Unless it’s salvaged, it won’t be sellable,” Saleem continued. “It could become a disaster. The boat is sitting on the reef and moving a bit with the water, so there could be damage. But it can’t become a shipwreck and sink to the bottom. If it can’t be safely removed or salvaged it will be a big chunk of metal.

“We hope to remove it, but we haven’t found a process yet to do it safely,” he concluded.

“Emerald Reefer” was in Maldives to buy fish from locals. Environmental Protection Agency (EPA) Deputy Director General Ibrahim Mohamed didn’t know if navigational hazards led the boat off course, but believed that the ship was unfamiliar with Addu’s few and narrow routes.

“Usually ship captains know the routes, and this boat does not appear to have taken a normal route,” he said. “In Addu, there are only a few entry and exit points. This will bring more awareness to other ships who travel through that area as well.”

Mohamed said it had been a while since a boat ran aground in the Maldives; “in Addu, this is new.”

The EPA is currently working with the Transport Authority to manage the issue and control the potential for environmental hazards. Mohamed said the EPA has assessed the impact and is reviewing possible solutions, and will carry out a more extensive review next week with the coast guard.

“We advised the company to move the ship,” said Mohamed. “We have no idea of the damage.

“There is a lot of oil stored in the ship, but there is no risk yet. Unless the ship is damaged it is unlikely that oil will get into the reef area. But rough seas are rocking the vessel on the corals, so we expect to see some damage there.”

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Proposed switch to generic drugs would improve transparency of medical system, say doctors

A proposal currently under review would allow doctors to provide medication directly from health centers, bypassing the prescription process which often leads patients on a wild goose chase around Male’s pharmacies.

State Health Minister Ibrahim Waheed yesterday announced that the proposal is being discussed with health corporations, and that prescriptions could be ruled out by next June at the earliest.

He further suggested that a large pharmacy would be established in every atoll hospital, and would supply products to other health centers across the atolls.

Health Minister Aminath Jameel reportedly did not respond to most questions posed by MPs regarding health corporations at a committee meeting yesterday. Speaking to Minivan News today she said the proposal fell under the ministry’s remit but that she did not have the details and was unable to comment.

Other officials and offices at the Health Ministry had not responded to phone calls at time of press.

Generic drug-based systems which include hospital-centered distribution are commonly practiced in other countries, sources say.

The World Health Organisation supports the use of generic drugs, particularly in developing countries.

In a speech earlier this year, WHO Director General Dr. Margaret Chan said, “Generic products are considerably less expensive than originator products, and competition among generic manufacturers reduces prices even further. Generics serve the logic of the pocket. An affordable price encourages good patient compliance, which improves treatment outcome and also protects against the emergence of drug resistance.”

CEO of Indira Ghandi Memorial Hospital (IGMH) Cathy Waters said the hospital had not been officially informed of the proposal, but noted that pharmacies were generally not well-stocked and that there were multiple available brands.

Medical Director at Male’ Health Service Corporation Dr Robert Primhak said he “would welcome an improvement in pharmaceutical supply and prescribe system.”

According to Primhak, doctors currently prescribe drug brands rather than generic medications. Shifting to a generic drug-based system would mean that a list of nationally-approved drugs would be available for the first time in hospitals, clinics and pharmacies, a “major improvement” that would improve the medical system’s transparency.

However, such a shift would also require “robust quality control” and a centralised import and supply system, Primhak said.

These reforms could take the edge off of the medical import and supply business.

“There’s no business advantage in stocking medications that are not commonly used,” Primhak explained. “For example, a baby who is born with a heart problem needs a specific drug to keep a vessel open. We might get that case three times a year. But instead of stocking these specialised drugs which are only rarely used, the retailers prefer to stock common drugs and brands that will sell, because they know that they can get a turnover.

“The drugs that are imported are the ones they want to sell, not the ones we want to prescribe.”

MPs yesterday voiced concern that the proposed system would incur huge losses for pharmaceutical importers.

Minivan News asked Primhak if medical decisions in the Maldives were driven by business interests and ought to be re-directed towards serving the people. “Yes, to both points,” he said.

Chief Operating Officer at ADK Hospital and former head of the Center for Community Health and Disease Control (CCHDC), Ahmed Jamsheed, believes the proposed change would engender a stronger monitoring system by default.

“The new system would move towards generic drugs which would make it easier to monitor drug quality and standards, and bring down the price,” he said.

It would also improve patient convenience. “Now, a medication prescribed by a doctor in ADK may not be available in the hospital pharmacy, so the patient has to hop around to different pharmacies to get the prescription filled.”

Jamsheed believes the change would benefit the Maldives’ medical system but agrees that the focus should be on people, not corporations.

“Currently, there is a big network of pharmacies, most of which are privately owned. It is known that most pharmacies are poorly monitored, and the authorities are unable to control them. Many prescription-only drugs not meant for over-the-counter sale are actually available to anyone who asks. That carries a huge risk for the patient community.”

Usually, Jamsheed said, a small country like Maldives only needs one or two sources for importing the drugs. But he said the MPs have a point: standardised markets don’t foster high profit margins. “But at the end of the day, the government has to consider whether the system is best for the country and its people,” he observed.

Under the proposed 2012 state budget, Rf2 billion is allocated to the health sector; Rf638 million of that amount is to be used for developing mechanisms providing easy access to health care. Another Rf543 million is designated to developing atoll health centres under Public Private Partnership.

The budget also allots R720 million to the universal health insurance scheme, due to take effect in January 2012, while Rf100 million is to be spent on health corporations’ capital investments, which are made to improve their services.

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