Author: Ahmed Rilwan

National debt set to rise to MVR92,196 per head warns MMA

The Maldives Monetary Authority – the country’s central bank and banking regulator – has published its professional opinion on the 2014 budget, painting a dark outlook and proposing urgent measures to prevent the economy from plunging further into debt.

The document was prepared upon an official request from the People’s Majlis, which is set to consider the spending plans when they emerge from committee on Saturday (December 21).

In the document, the MMA warned that the national debt is estimated to rise from MVR27.7 billion in 2013 to MVR31.5 billion in 2014 – equating to MVR92,196 per head.

Forecast GDP growth rate for 2014 is 4.5% – lower than the average of past ten years.

Inflation can be sustained at 4%, but this will depend on changes in the world market, stated the authority

Despite pledges to reduce state expenditure, the government returned a record MVR17.5 billion budget for consideration by the Majlis this month.

Subsequent recommendations in committee have seen the likely figure to rise to MVR18 billion.

Reducing government expenditure

Rising government expenditure was cited as the biggest challenge for the country right now. The agency advised the government to reduce recurrent expenditure to MVR10.2billion from its current level or MVR12billion, offering the following recommendations to do so:

  • Ensuring government subsidies are carefully targeted to the rightful persons.
  • Downsizing the state apparatus to one that’s appropriate for the Maldives’ size and income – including downsizing of parliament, councils, and independent institutions.
  • Finding ways of reducing recurrent expenditure and improving governance – suggesting the combination of local, parliamentary, and presidential elections was suggested.
  • Stop spending on government-run companies from the budget,  or dissolve such companies.
  • Don t proceed with projects (e.g. in contractor finance basis) unless funds have been secured or guaranteed.
  • Reduce debt, turn existing short-term debts in to long-term ones – for instance, by selling long-term foreign bonds at a small interest rate rather than depending on the domestic market for financing debt.
  • Prepare to implement the Fiscal Responsibility Act in 2014.

Finding better ways of financing the deficit

The document stated that the government had been financing the budget deficit mainly by taking short-term loans, selling treasury bills and treasury bonds, and by the MMA itself printing money. Instead of managing this deficit through a market mechanism, the government has resorted to dealing with it mainly through printing cash.

Overdrawing from the state’s Public Bank Account (PBA) to accommodate government spending has significantly increased the flow of the rufiyaa in the economy. The authority stated that this has reduced the foreign exchange reserves to dangerous levels – just two months of imports by the end of October 2013.

It was also noted that the increased flow makes it difficult to stabilise the foreign exchange rate.

According to the authority the PBA overdraft facility was misused by the government, using it to finance long term budget deficit even though it was intended to manage cash flow within a short period of time (a few weeks).

The amount overdrawn from PBA started increasing in October 2012 and reached MVR2.5 billion by 9 December 2013.

The MMA advised the state to pay all due treasury bills, treasury bonds and PBA overdrawing debts to the authority, whilst also noting that the MVR945 million required to pay for this had not been included in the proposed budget.

New revenue raising measures and legal changes

One of the key points highlighted throughout the document was the importance of implementing the new revenue raising measures – most of which is hoped to come from advance payments from resort lease extensions – which account for 23% of the total revenue in the budget.

If these measures are not implemented, the budget cannot cater for the recurrent expenditure and the estimated budget deficit for 2014 will increase from MVR886.6 million to 4.4 billion (11% of GDP), the MMA warned.

The MMA requested the state to proceed with amending the laws necessary for implementing new revenue increasing measures as soon as possible, and asked to find ways to generate an income from various industries instead of depending only on tourism for revenue.

Another notable recommendation was the reduction of the number of foreigners working in the country in order to create a more favorable balance of payments situation.

Read the full document (dhivehi) here.

Likes(0)Dislikes(0)

HRCM introduces benchmark for migrant worker rights

Coinciding with the International Migrants Day, the Human Rights Commission of the Maldives (HRCM) has launched a national benchmark for protecting migrant worker rights.

The benchmark was launched by HRCM President Mariyam Azra and Deputy Minister of Human Resources, Youth and Sports Naaif Shawkath at a ceremony held at Nasandhura Palace Hotel today.

Officials from various stakeholder institutions such as the Maldives Police Service and the Immigration Department were present at the ceremony, later taking part in a forum to discuss the utilisation of this benchmark in their work.

According to the commission, the purpose of having such a benchmark is to encourage protection of the rights of migrant workers and to provide a guideline highlighting the basic human rights principles to be followed.

It is based on the constitution of the Maldives, the Universal Declaration of Human Rights, the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families (ICRMW) and other human rights conventions to which the Maldives is a party.

While most of these standards are already obligations on the state, the benchmark itself is not something state institutions are obliged to follow, though the commission members noted the government’s willingness to accept it.

Speaking at the launching ceremony, commission member Jeehan Mahmood said she hoped all institutions would use it as a tool for protecting the rights of migrant workers. She noted the positive response from these institutions in meetings held within past few days to discuss the benchmark’s use in their work.

Advising the government in “formulation of laws, regulations and administrative codes concerning the promotion of a high regard for human rights and the protection and sustenance of such rights” is stated as a key function of the commission in the Human Rights Commission Act.

Speaking at the benchmark launching ceremony Deputy Minister Naaif advised all relevant institutions to accept the benchmark, and thanked HRCM for developing it. He said following it will standardise the work of all institutions.

In a press release issued today, the HRCM called on the state to facilitate implementation of  the recently ratified Anti Human Trafficking Act and reiterated their call to ratify and implement ICRMW as as soon as possible. The Maldives has agreed to ratify and implement this convention on various occasions.

The HRCM has cited the issue of healthcare as major challenge for undocumented migrant workers living in Maldives. According to a video presentation given at the ceremony, such workers hesitate to see a doctor even if they can afford to.

The video also showed that, out of all complaints submitted to the commission regarding rights of migrant workers, 68 percent of cases involved non-payment of wages, unfair expulsions, and the failure to provide food and shelter. 18 percent of cases were said to concern health issues while in detention.

Among other complaints received by the commission are the withholding of travel documents and work visas, refusing leave from work, and the termination of employment contracts without prior notice.

While there is no accurate official figures of the migrant worker population in the Maldives, the highest estimates suggest that it crossed the 100,000 mark in 2011, whilst the number of undocumented migrant workers have been placed as high as 44,000.

These numbers indicate that migrant workers might now represent more than one third of the total population.

The country was this year kept on the US State Department’s Tier Two Watch List for Human Trafficking for the fourth consecutive year, with promises that demotion to the third tier would be guaranteed in 2014 without significant progress being made.

Likes(0)Dislikes(0)

Defense minister returns from India with gifts and reassurances

Minister of Defence and National Security Mohamed Nazim has returned from his five day official visit to India bearing gifts and reassurances of better defense cooperation and hope for improved bilateral relations.

A major highlight of the trip was India’s gift to Maldives military, a locally manufactured ‘Dhruv’ Advanced Lightweight Helicopter (ALH). The Helicopter the second India has gifted – will reach Maldives in two months.

India also assured the delivery of a landing craft within this period – promised during Nazim’s previous visit to India as President Dr Mohamed Waheed’s Defence minister. During that visit, nine months ago, India promised seven new radar systems, in addition to three radar systems India had already gifted to the Maldives.

Nazim also addressed specific issues of concern that had emerged during the previous administration’s period of weakened ties with India.

The shortage of construction material imported from India following a special quota for Maldives being revoked in February 2013, and the difficulties in acquiring medical Visa for Maldivians traveling to India were discussed.

Both issues will be discussed further during President Yameen’s official visit to India early next year.

Nazim’s visit – from 11-15 December – was prompted by an invitation from his counterpart AK Anthony. During the visit, Nazim met many senior government officials, amongst them Minister of Home Affairs Sushilkumar Shinde, Minister of External Affairs Salman Khurshid, National Security Advisor Shivshankar Menon, Chief of Army Staff General Bikram Singh, Chief of Naval Staff Admiral DK Joshi and Chief of Air Staff Air Chief Marshal NAK Browne.

Nazim requested Indian assistance to acquire equipment and training for disaster management and fire and rescue services – a coast guard vessel for patrolling the Maldives’ EEZ (Exclusive Economic Zone) and an auxiliary vessel to improve logistical support across the country.

Training opportunities were also sought in other areas such as aviation security, pilot training, air traffic control training, MBBS and specialist medical training.

During the visit, the Maldives defense minister informed Indian officials of the progress of the Composite Training Center being constructed at Maafilaafushi (Lhaviyani Atoll) with Indian financial assistance.  A ten-story building for the Coast Guard and the Ministry of Defense and National Security also is all set to be built at the current Coast Guard Building’s location with Indian grant aid.

Apart from improving the military, Nazim’s main focus during the visit was on health security, especially regarding the development of MNDF’s ‘Senahiya’ military hospital – officially inaugurated by Indian Defense minister in September 2012.

Nazim sought Indian assistance in getting medical equipment such as CT scan and MRI machines for the hospital. India also agreed to deputise Indian Armed Forces medical specialists to Senahiya and other regions of Maldives in a near future.

Training of MNDF medical specialists was also discussed, while the Indian defense minister announced the opportunity for MNDF personnel to be treated for major surgeries and serious illnesses at India’s armed forces medical institutions

Likes(0)Dislikes(0)

“Right now decentralisation in this country is just for show”: Addu City mayor

Mayor of Addu City Abdulla Sodig has suggested the financial difficulties facing his council are a result of the failure to implement the decentralisation act properly.

“Right now decentralisation in this country is just for show,” Sodig told Minivan News.

“The government and Majlis need to resolve these issues if the citizens are to benefit from decentralisation in a meaningful way.”

Addu City will be hit hard by the government’s proposed budget cuts, said Sodig, expressing concerns that the proposed budget for the city is insufficient to adequately provide essential services.

From the MVR421.4million budget requested by the council for 2014, only MVR45.6million was allocated in the budget proposed by Ministry of Finance to the People’s Majlis.

According to the mayor, the initial amount proposed in July 2013 was MVR54.8 million, in response to which the council informed the ministry that MVR123.1 million would be required for recurrent and capital expenditure – excluding Public Sector Investment Programmes (PSIPs).

When the council again requested a minimum of MVR85 million, the ministry proposed a reduced amount of MVR45.6 million. Of this amount, MVR35.2 million was allocated for salaries, MVR5.7 million for pre-schools, and MVR3.7 million for council office administrative costs.

Sodig says this amount would not cover the expenses of repairing mosques and roads.

“Addu City roads are badly in need of repair, whenever it rains most roads are flooded” he said. No funds were allocated for road reconstruction and repair in 2012 or 2013, he added.

Funds for some services in the council’s mandate, such as maintenance of roads and mosques, are included in the budgets of the relevant state departments, Sodig noted.

“It is very difficult, time consuming and costly to carry out our obligations like this.”

The MVR45.6 million budget currently proposed by the ministry does not include any additional projects, for which the council had requested MVR291.9 million.

“The amount we requested includes money needed for land reclamation projects in Hithadhoo, Maradhoo, Maradhoo-Feydhoo and Feydhoo. It was initially included in the budget, but has been removed now” Sodig explained.

In 2013 MVR6 million was proposed for PSIP projects, but the council received no money when the budget was finalised. The land reclamation projects were first proposed in 2008 but have been repeatedly delayed.

The actual budget allocation for the council in 2013 was MVR33.7 million, though it reached MVR55 million by the end of the year. The council still has pending electricity bills and up to MVR3 million and MVR186,000 in phone bills.

“At the budget committee we requested at least MVR25 million to pay our pending bills and for other existing contracts such as security and legal services, and they said anything that is absolutely essential will be included” Sodig said.

In 2014 the Council will earn an estimated MVR12.9 million in land lease payments and other fees collected for services provided by the council. A number of issues with financial independence of local councils, however, makes it difficult for the money to be properly utilised.

In 2012, the Finance Ministry requested all local councils to deposit all their revenues with Maldives Inland Revenue Authority (MIRA) – a decision which Sodiq believes has discouraged local councils from investing in income generating programmes. Fees collected for public services provided with the council’s own resources are also collected by the central ministries.

Sodig blamed laws contravening the ‘Decentralisation Act’ as a primary cause for these issues.

Article 81 of the act requires national authorities to allocate an amount (decided by Ministry of Finance) from state facilities in which the council does not have any participation but are within it’s administrative area.

The mayor noted that no such payments have been made so far, and that some of the natural resources currently utilised by the state were sources of income for locals through traditional economic activity prior to their development for other purposes.

Likes(0)Dislikes(0)

Island council feared sheikh’s sermon would disrupt social harmony

Omadhoo Island Council stopped controversial preacher Sheikh Adam Shameem from delivering a religious lecture at the local mosque Saturday evening, fearing it might “disrupt the stability and social harmony of the island” reports CNM.

Council member Mohamed Ibrahim was quoted as saying that the imam of the Friday Mosque Ahmed Ramzi had confronted a group of senior Maldivian Democratic Party (MDP) members from the island, saying that the party’s Mohamed Nasheed is a ‘laadheenee‘ [irreligious] person and that it was because of that he lost the presidential elections.

“They said he is a disbeliever. So, a senior MDP member said, even if the council gives permission, that lecture cannot be held on this island. From that point things got bad,” continued Ibrahim.

Haveeru reported that when the council asked for a formal request for permission, the organisers sent a text message to the council president saying the lecture would go on with or without the council’s permission.

The lecture on ‘backbiting’ was later held on the street, accompanied by a heavy police presence.

In May 2013 Sheikh Imran Abdulla and Sheikh Ilyas Hussein were obstructed from preaching in Vaikaradhoo, in Haa Dhaalu Atoll, whilst Kamadhoo Island Council – Baa Atoll – prevented Sheikh Nasrulla Ali from preaching. In Vaikaradhoo the sheikhs continued with Police protection in the presence of local opposition activists.

Current laws and regulations require religious preachers to obtain permission from local councils in order to preach at mosques in their administrative areas.

The ministry of Islamic Affairs, particularly the current Islamic Minister Sheikh Mohamed Shaheem Ali Saeed, have been trying to bring all affairs of the mosques under the ministry.

Sheikh Shameem, 37, studied at Jamia Salafiyya in Pakistan, Medina Islamic University, and has a Masters degree in Islamic Revealed Knowledge and Heritage from International Islamic University in Malaysia.

The Sheikh has attracted much controversy following his “mega-lecture” ‘Andalus‘ during the recent presidential elections, the live broadcast of which was interrupted by the national television for violating state broadcaster’s guideline.

The lecture, seen as highly political, was condemned by the MDP as “incitement of hatred among the public with the intention of influencing the election”.

Likes(0)Dislikes(0)

IOM conducts human trafficking workshop for police and immigration officials

International Organization for Migration has commenced a Human Trafficking training workshop for Police and Immigration officials.

The four-day workshop participants will be informed on internatinal best practice on conducting investigations and dealing with victim of human trafficking. The workshop will cover both labor and sex trafficking.

Assistant Controller of Immigration Ali Ashraf informed Minivan News last week that the training would help prepare immigration officials for the recently ratified anti-trafficking bill.

Those found guilty of human trafficking can now face up to 10 years for cases involving adults, which can be extended to up to 15 if children are involved. Accomplices to trafficking can also now receive a seven year sentence.

“Implementation of the bill will require a lot of effort and coordination,” said Ashraf.

The Maldives’ has remained on the US State Department’s Tier 2 watchlist for four years, being warned this year that only significant improvements in this area could save it from relegation to Tier 3 and potential sanctions.

A government-ordered report in 2011 revealed human trafficking to be the Maldives second most lucrative industry after tourism – worth an estimated US$123million a year.

Likes(0)Dislikes(0)

Maldivian student killed in Afghan blast

A Maldivian student, Amir Moosa, 31 from G.A Dhaandhoo was recently killed in a bomb blast in Afghanistan, the Island council has said today.

President of the Council Shuaib Abdulla said a family member of the deceased had reported his death in an Afghanistan bomb blast, although the incident is yet to be officially reported to the Council by his immediate family.

Shuaib said Amir has been studying in Pakistan for the past six years and many locals believe he was involved with Jihadi operations there. “According to a family members, when he calls home he would talk about Jihad and Independence of Palestine” Shuaib said.

The deceased’s sister told Sun Online that Amir had been killed two months ago, though the family themselves only received the news yesterday (December 14). She also denied that Amir held any extremist views.

However, local news website CNM quoted Amir’s mother as saying that he was living in Pakistan with his wife and four children (who are still in Pakistan) for higher education.

Amir’s family confirmed to CNM that he was visiting Afghanistan when the blast killed him. Maldives Police Service have not yet received any such reports.

Foreign Ministry officials were not available for comment at the time of press.

Maldives has been hit by a wave of religious extremism in the past few years. In September 2007 a home made IED was set off at popular tourist attraction in capital Male’, injuring 12 tourists.

Common threats against voices critical of radical Islamism were actualized with a brutal attempt on a journalist’s life in 2012. Ismail ‘Hilath’ Rasheed came just millimetres from death when assailants he would later allege to be Islamists slashed his throat just yards from his home.

This incident happened just a few months after a mob of religious extremists destroyed priceless Buddhist statues in the National Museum.

In early 2010, then-Vice President Mohamed Waheed Hassan Manik expressed concern about young Maldivians being recruited by militant groups in Pakistan and Afghanistan to wage ‘jihad’, a claim reiterated by top level officials including former President Mohamed Nasheed.

Likes(0)Dislikes(0)

President forms anti-trafficking steering committee

President Abdulla Yameen has formed an “Anti-Trafficking Steering Committee” as required by the new Anti Human Trafficking Act.

The members of the committee are;

1. Abdulla Saeed, Supreme Court Judge
2. Jeehan Mahmood, Member of Human Rights Commission
3. Mariyam Zoona, Deputy Director at the Ministry of Youth and Sports
4. Aisha Naeem, State Attorney at the Attorney General’s Office
5. Mahmood Saleem, Assistant Public Prosecutor Grade 3 at the Prosecutor General’s Office
6. Mohamed Shifan, Deputy Chief Immigration Officer at the Department of Immigration and Emigration
7. Khadeeja Najeeha, Assistant Director at the Ministry of Foreign Affairs
8. Hassan Habeeb, Assistant Commissioner of Police
9. Mohamed Maseeh, Chief Superintendent at the Maldives Customs Service
10. Aishath Nafaa Ahmed, Assistant Director at the Ministry of Youth and Sports
11. Sheikh Hussain Rasheed Yoosuf, Inspector General of Correction Service at the Ministry of Home Affairs
12. Ali Waheed, Deputy Minister of Islamic Affairs
13. Muruthallah Moosa from the Advocating the Rights of Children (a local NGO)

A member from the People’s Majlis will also sit in this committee. As per article 62 of the Act, this committee will be responsible for overseeing the implementation of the Act, and advising the president on matters related to it’s implementation, and coordinating programs related to countering human trafficking.

Likes(0)Dislikes(0)

Gayoom commends Yameen’s efforts to improve strained Indo-Maldives relations

Leader of the the Progressive Party of Maldives (PPM) and former President Maumoon Abdul Gayoom has commended President Abdulla Yameen’s efforts to improve strained bilateral relations with India.

Speaking to local news agency Haveeru, Gayoom said the president’s official visit to India from 23-25 December will be a successful one and that he hopes India will make some “good arrangements” regarding issues of concern for Maldivians. He noted that he himself has talked on such issues with Indian officials he met, and that Maldivians need to lend a “friendly hand” to India.

Indian Prime Minister Manmohan Singh’s invitation for the visit came in reply to a letter reassuring the strengthening of relations with India under the new administration.

Meanwhile, Minister of Defense and National Security Colonel (ret.) Mohamed Nazim along with a senior military delegation is on an official visit to India, responding to an invitation from his Indian counterpart Mr A.K. Anthony.

According to the Ministry, Nazim will discuss Indian assistance in developing the Maldives National Defense Force (MNDF), the Senahiya Military Hospital, and for “boosting up” investments started with India’s help.

Defense cooperation between both countries was highlighted during the meeing. Four Indian military ships have visited and conducted joint military exercises in the Maldives within the past three months, whilst Indian newspaper “The Hindu” reports that India will gift a second Advanced Lightweight Helicopter (ALH) during Nazim’s current visit.

The two defense ministers discussed increasing cooperation between the armed forces of both countries and  advancing medical facilities and expertise in the MNDF through training medical specialists and assigning Indian Armed Forces medical specialists. Indian defense minister announced that all MNDF personnel will now be eligible for treatment in Armed Forces medical institutions in India for major surgeries and for treatment of major and serious illnesses.

Under Dr Mohamed Waheed’s administration – in which President Yameen’s PPM was a coalition member – bilateral relations with India were heavily damaged, particularly following the premature cancellation of Indian Infrastructure company GMR’s $511 million airport project in 2012.

A number of issues that might have affected the relations were highlighted by India, among them exploitation of Indian workers, discrimination, reopening of cases relating to sentenced Indian prisoners, visa fees charged from Indians, and the issue of dependent visa for old parents of Indian employees.

India later imposed restrictions in issuing medical visas for Maldivians, an issue Gayoom hopes will be resolved with the President’s first official trip overseas.

Likes(0)Dislikes(0)