Author: Daniel Bosley

Vice-president announces unlimited health insurance from January 1

Vice President Dr Mohamed Jameel Ahmed has announced the government’s intention to introduce unlimited health insurance – ‘Husnuvaa Aasandha’ – on January 1.

Speaking at the launch of the government’s 100 day manifesto for the Ministry of Health, Jameel promised that the government’s pledge to provide a General Practitioner for every family would also be introduced in the new year.

One month on from the inauguration of President Abdulla Yameen, the government has produced similar 100 day roadmaps in a number of departments, including transport, immigration, and the security forces.

The current scheme – introduced under the administration of President Mohamed Nasheed – set a limit of MVR100,000 (US$6,485) annually for health services for all Maldivian nationals from hospitals and health centres operated by health corporations as well as private hospitals and clinics.

The initial scheme soon proved costlier than the government had envisioned, however, with hundreds reaching their entitlement limit within just a few months. Rocketing demand for services saw a reported 7000-8000 people using the scheme every day, at a cost of up to MVR3 million (US$194,552).

Caps were subsequently introduced on medicines and certain services provided in private clinics and hospitals as well as fees introduced for services at private clinics.

Vice President Jameel said last night called on the private sector to aid the government in providing affordable healthcare.

A recent World Bank report noted that a total of 276,033 citizens – around 84 percent of the population – had used the Aasandha service in its first year, representing about 2.8 percent of 2012’s GDP.

“Overall, a total of about 3.6 million transactions were recorded in the first year that represented an average 13.2 transactions per patient, a relatively high figure for a country with a predominantly young population and limited availability of medical service providers,” said the World Bank.

The same report – the ‘Maldives Development Update’  – described the country as “spending beyond its means”.

At present, public debt stands at an “unsustainable” 81 percent of GDP, the report stated projecting the debt will rise further to about 96 percent by 2015.

The World Bank saw the fiscal sustainability of the Aasandha scheme as its major challenge, offering a series of recommendations to achieve this.

“Substantive savings could be achieved without significantly compromising coverage and quality of services by re-designing the scheme with a focus on provider incentives.”

The World Bank went on to suggest that the bulk purchase of essential and generic drugs could reduce the costs of the scheme, as could tighter controls on overseas treatments.

Jameel has previously acknowledged that a lack services has forced many Maldivians to live abroad for medical purposes, pledging chemotherapy in the public Indira Ghandi Memorial Hospital, as well as nine dialysis units.

He has also promised that screening to diagnose cervical cancer would be introduced under a government insurance scheme.

Jameel had previously stated that the specifics of the government’s health proposals would begin “as soon as we get the budget for it”. The details of the 2014 budget continue to be discussed in the Majlis, with the final draft due to be presented to the full chamber at the end of the week.

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Revenue raising measures remain biggest obstacle to budget, says Finance Minister

Finance Minister Abdulla Jihad has said that new revenue raising measures remain the biggest obstacle to the passing of the new budget.

He has, however, expressed his opinion that the collection of lease extension payments up-front – anticipated by the government to raise MVR1.2billion (US$77million)- would not be a problem.

“I don’t think it is a problem because we are giving them for 99 years – that’s quite a long time,” Jihad told Minivan News today. “The property belongs to everyone – it’s the people’s property.”

Maldives Association for Tourism Industry Secretary General Ahmed Nazeer reportedly told the Budget Review Committee yesterday that he anticipated that 50 percent of resort owners would refuse to pay the sum up front.

When asked for additional opinion on the proposed budget today, Nazeer told Minivan News that he felt it would be inappropriate to give further comment whilst the budget was still under review.

The Finance Minister was able to confirm that the government had requested approval for three loans – totalling MVR814million (US$52million) – from the Majlis, of which MVR453million will go towards budget support.

Earlier this month, the Auditor General suggested Jihad had foregone the mandatory parliamentary approval when obtaining MVR300million (US$ 19.45 million) worth of budget support from the Bank of Maldives in May 2012.

Jihad responded that the onerous procedural obligations were circumvented in order to avoid an impending financial disaster.

Budget support

The budget-support loan will come from the Bank of Ceylon, whilst additional loans await approval from Denmark’s Nordea Bank (€2.5million) for the upgrading of Malé’s electricity grid, and OPEC (US$20million) for sewerage projects.

After details of the high interest to be paid on the Bank of Ceylon’s loan emerged, Jihad last week use the term “beggars cannot be choosers,” noting that the Maldives has no choice but to borrow from commercial banks at high interest rates.

“We could go to Bank of New York, but they will not lend to us. The best bet now is Bank of Ceylon,” he said.

An agreement to receive 50 million yuan (US$ 8.2 million) in development aid from the Chinese government has already been approved this month, whilst Indian media has reported that President Abdulla Yameen’s state visit will see the resumption of a currently-dormant standby-credit facility.

The Budget Review Committee is expected to conclude deliberations upon the 2014 budget by December 20-21, explained Jihad, after which it will be sent to the full floor for further consideration.

Discussion of revenue raising measures is scheduled for Wednesday (December 18).

Similar issues

Failure to realise new streams of revenue, alongside an inability to curb expenditure saw the previous government – under which Jihad also served as finance minister – forced to divert capital expenditure to recurrent costs.

The proposed budget for 2014 is a record MVR 17.5 billion (US$1.1 billion), with a 6.7 percent growth in total expenditure mainly due to a MVR 1.1billion (US$72,687,239) increase in recurrent costs, accounting for over 73 percent of outgoings.

Both Jihad and Maldives Monetary Authority Governor Dr Fazeel Najeeb have told the Majlis committee that the proposed 2014 budget must be reduced if the government’s new revenue streams were not realised, with Jihad targetting the billion dollar tourism industry.

“The main revenue generator is tourism. From where else can we generate extra revenue? I don’t believe that we are presently charging taxes that are too high for the tourism sector,” local media reported him as saying yesterday.

The proposed revenue raising measures will provide the state with a total of  MVR3.4billion (US$ 224million). However, the People’s Majlis will need to amend laws including revisions to tax laws and import tariffs to realise the expected revenue.

Proposed measures include raising Tourism Goods and Service Tax by 50 percent, delaying the abolition of tourism bed tax, raising airport departure charges for foreign passengers by 28 percent, and leasing a further 12 islands for resort development.

In his inauguration speech, Yameen warned the country’s economy was in “a deep pit” and pledged to reduce state expenditure. Local media reports quote Yameen saying he would cut expenditure by amounts varying between MVR 1 billion and 4 billion.

A World Bank report on the state the Maldives’ economy last week described the country as “spending beyond its means”.

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MNDF gifted helicopter as ties with India continue to grow

The Government of India has gifted the Maldives National Defence Force (MNDF) an advanced light helicopter, with local media media declaring a “new chapter” in Indo-Maldivian defence ties.

The Hindu reported Nazim as stating that the gift was “paving the way for further strengthening of ties between both countries.”

The helicopter was officially handed over by Indian Southern Naval Command officer Vice Admiral Satish Soni to the MNDF’s Brigadier General Ali Zuhair – the second such award after a similar gift in 2010.

The Maldives’ Minister of Defence Mohamed Nazim – currently on an official visit to the Maldives northern neighbour – officially unveiled the colours of the aircraft. The helicopter will reportedly be manned by an Indian flight crew for search and rescue operations, and surveillance within the Maldives EEZ.

The Times of India reported Satish as praising the Maldives contribution to security in the Indian Ocean region, citing the MNDF’s frequent assistance in anti-piracy operations.

Nazim’s trip precedes that of newly elected President Abdulla Yameen, who is scheduled to visit India on his first official state visit on December 22.

Yameen’s attempts to enhance bilateral ties after a fraught period in the pair’s diplomatic history were recently lauded by former President – Yameen’s half-brother and party leader – Maumoon Abdul Gayoom.

Indian media has suggested that Yameen’s visit will see the re-opening of a standby credit facility which had seemingly been frozen during the relationship’s nadir in 2012.

The most recent installment of India’s pledged budget support stalled just stays before a concerted – and often xenophobic – campaign against the development of Malé’s international airport culminated in the eviction of Indian company GMR.

The following month, the Indian High Commission in Malé publicly aired a list of consular grievances including persistent discrimination against Indian expatriate workers, a failure to reciprocate generous visa processes for Indians in the the Maldives, and threats made against diplomatic personnel.

Largesse from other regional powers has also come in the form of Chinese development aid, with 50 million yuan (US$ 8.2 million) promised for development projects within weeks of Yameen’s November 16 election victory.

The MNDF’s official website has reported that the award of the helicopter was part of its roadmap for the first 100 days of the Yameen administration. Other aims include the establishment of a justice system within the – recently fratricidal – organisation, and the conducting of international training with its Indian counterparts.

Meeting with Indian Defence Minister A.K. Anthony last week, Nazim discussed increasing cooperation between the armed forces of both countries and  advancing medical facilities and expertise in the MNDF through training medical specialists.

Anthony 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.

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Week in review: December 8 – 14

This week saw the repeatedly delayed budget introduced to the People’s Majlis. Coming in at MVR17.5billion rufiya, the budget – purportedly revised to incorporate President Yameen’s austerity measures – eclipses all previous spending programmes.

A report from the World Bank made clear the tough task the new government faces in nursing the economy towards good health. The report stated that the Maldives continues to spend “beyond its means”.

Noted areas of excess include a high civil service wage bill, with the World Bank suggesting that the government’s short term financing measures risked further damaging the economy.

The exploitation of the country’s persistent shortage of dollars by criminal elements was exposed this week as police reported the activity of thieves masquerading as legitimate exchangers of currency.

When accused of illegally obtaining a budget support loan, recently reappointed Finance Minister pleaded desperation. Abdulla Jihad argued that he had sidestepped the onerous approval procedure to avoid a financial catastrophe in May 2012.

Yameen took fitful steps towards fulfilling his campaign’s austerity pledges this week, ordering the reduction of salary for two grades of state minister – though the cut was only around 12.5 percent instead of the 30-50 mooted before the election.

Similarly, the new government appeared to have reneged on its pledge to provide cash-handouts to old-age pensioners – opting for an insurance scheme instead.

Government performance

Former President Maumoon Abdul Gayoom, however, appeared pleased with his half-brother’s performance thus far, praising his handling of Indo-Maldivian relations while the Defence Minister discussed enhanced military cooperation with Indian counterparts.

The indistinct ‘National Movement’ this week suggested ulterior motives in the bureaucratic thwarting of its plan to celebrate the eviction of Indian infrastructure giant GMR, whose deal to develop the international airport was prematurely terminated twelve months ago.

Elsewhere, the coalition member Adhaalath Party, quashed rumours that it had parted ways with Yameen’s government this week, despite previous reports that it intended to campaign independently in the upcoming local and parliamentary elections.

The ‘roadmaps’ for the first one hundred days of the government continued to be drawn this week, with comprehensive lists now produced in the areas of  transport, health, and immigration.

Whilst the Transport Ministry has promised finished plans for the redevelopment of Ibrahim Nasir International Airport, the health minister talked of significant changes to the IGMH public hospital.

The police service also joined in the policy pledging, with its own promises to improve its service and to build public trust in the institution. The Police Integrity Commission this week suggested that the prosecutor general assist in this task by prosecuting two officers it had found to have been negligent during the arson attack which destroyed Raajje TV in October.

The vacancy at the head of the PG’s Office did not stop the filing of charges in the 8 year old ‘Namoona Dhoni’ case. Pro-democracy activists – prevented from reaching Malé for a national demonstration – now face fresh charges of disobeying lawful orders.

Trust between the Supreme Court and the judicial watchdog appeared scant this week as the Chief Justice baulked at the JSC’s re-shuffling of a number of senior judges. Members of the JSC were later reported to have rejected Chief Justice Faiz’s legal objections.

Corruption and human rights

Confidence in the transparency of the public in public institutions also appeared to be on the wane this week, as Transparency Maldives’ Global Corruption Barometer (GCB) survey revealed that 83 percent of its sample felt corruption to have increased or stayed the same over the past two years.

Despite only appearing mid-table in the list of organisations perceived as being corrupt, the MNDF reacted disproportionately to the local media’s reporting of the survey, labelling CNM’s article on the survey “highly irresponsible journalism”.

The Anti Corruption Commission announced the discovery of graft in the capital’s largest housing programme. The highest number of bribes reported in the GCB was in the area of land services.

International human rights day was observed by the government and civil society in the same week the president ratified the country’s first anti-human trafficking bill. Whilst welcoming the new law, both the Human Rights Commission and the immigration department suggested that institutional strengthening would need to accompany a successful anti-trafficking policy.

Finally, this week saw the release of a United Nations Population Fund report, calling on the state to review existing practices related to sexual behaviour within the judicial process, law enforcement, education and health sectors.

The report stated reproductive health services ought to be expanded to non-married couples as evidence makes clear that the assumption sex does not, or should not, occur outside of marriage is increasingly out of step with social realities.

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President cuts ministers’ pay as part of austerity drive

President Abdulla Yameen has informed state ministers that their pay will be cut in accordance with the government’s plans to reduce state expenditure.

Local media has reported that all deputy and state ministers will have their salaries reduced from  MVR35,000 to MVR30,000, and from MVR46,000 to MVR41,000, respectively, reports local media.

“President’s decision comes under the government’s policy to reduce expenses. He plans to do a lot more in this regard,” President’s Office Spokesman Ibrahim Muaz told local media.

The wage reductions represent an average cut of around 12.5 percent for these political appointees – a group whose pay Yameen had pledged to slash by 30-50 percent during the presidential election campaign.

Muaz was not responding to further queries at the time of press.

The President’s Office website currently lists the executive as having 46 deputy ministers, including Abdulla Waheed and Abdul Haleem Abdul Gafoor who were today appointed to the Transport and Finance Ministries, respectively.

The number of state ministers currently stands at 31, with three new ministers – Dr Hala Hameed (Ministry of Health), Hassan Shah (Ministry of Environment and Energy), and Mohamed Anees (Ministry of Transport) – appointed within the past 24 hours.

The potential savings could remove MVR385,000 (US$25,000) from the creaking state budget – submitted to the Majlis this week at a record MVR17.5 billion (US$ 1.1 billion), with a projected deficit of 2.2 percent of GDP.

The rise in total expenditure from MVR16.4 billion to MVR17.5 (US$ 1.1 billion) is mainly due to a MVR 1.1billion (US$72.6million) increase in recurrent expenditure, which continues to account for over 73 percent of the state budget.

In his inauguration speech, Yameen warned the country’s economy was in “a deep pit” and pledged to reduce state expenditure. Local media reports quote Yameen saying he would cut expenditure by amounts varying between MVR 1 billion and 4 billion.

Immediately after being sworn in on November 17, Yameen announced he and his vice president – Dr Mohamed Jameel Ahmed –  would be fulfilling his campaign promise of only taking half of the MVR100,000 (US$6500) salary afforded to the head of state.

“The reason behind this is that Dr Jameel and I both live a simple life. No matter what has been said about us we are not wealthy. We want to be an example to others and lead by example,” Yameen said.

During the election campaign, Yameen also promised reduce the salaries of independent institutions – a step he described as pivotal for the country to avoid a sovereign default.

Following this week’s announcement of next year’s proposed budget, local media reported independent institutions as telling the Majlis budget review committee that the projected cuts would leave it unable to pay salaries.

The reduction in minister’s pay closely follows the release of a World Bank report noting that the Maldives was “spending beyond its means”.

According to the report, an already excessive wage bill ballooned by 55 percent in 2013 due to the Supreme Court ordered back payment of salary cuts, and salary increases for the police and military.

The Maldives has one of the highest percentages of government employees to population of any country in the world, at around 11 percent. During his election campaign, Yameen promised to further increase the salaries of civil servants.

In order to finance the deficit, the World Bank report suggested that the Ministry of Finance and Treasury was undertaking measures that “pose macro risks” and have led to “significant accumulation of debt in a short period of time.”

At present, public debt stands at an “unsustainable” 81 percent of GDP, the report stated. The World Bank projects the debt will rise further to about 96 percent by 2015.

“This debt path is unsustainable and suggests there is little room for additional borrowing,” the report warned.

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Anti-trafficking act greeted with caution by HRCM

The Human Rights Commission of Maldives (HRCM) has welcomed this week’s ratification of the Anti-trafficking act, despite reservations about the legislation itself and the state’s capacity to enforce it.

“It covers many acts of exploitation that will now be considered as offences and it also has penalties in the act for those who commit the crime of human trafficking,” said HRCM member Jeehan Mahmoud.

Earlier this week, the government announced the ratification of the bill, which had been passed in the Majlis on December 3.

Assistant Controller Ali Ashraf has also described the new legislation as “an excellent piece of work”

A President’s Office press release stated that the new legislation clearly defined human trafficking as an offence in the Maldives.

The main objectives of the Anti-Human Trafficking Act were subsequently listed as:

• Preventing trafficking of persons through and across the Maldives

• Establishing the crimes of trafficking in persons and prescribing punishments

• Providing for prosecution of perpetrators of trafficking in persons

• Providing protection and assistance to victims of human trafficking

• Promoting and protecting the human rights of trafficked victims

• Engaging in cooperation with local and international NGOs working against human trafficking

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.

Both Jeehan and Ashraf, however, maintained reservations regarding the efficacy of the act in the absence of specific definitions of offences and in its failure to include human smuggling.

“We wanted to identify specific acts. In our experience, if specifics are not detailed there is a chance that the offences go without prosecution when they get to the courts,”said Jeehan.

Similarly, Ashraf noted that the failure to include the category of smuggling in the act – different to trafficking in that individuals give a measure of consent to be transported illegally – made it very likely that offenders will be able to evade prosecution.

“The definition of trafficking can be twisted so easily,” warned Ashraf.

Jeehan noted that those smuggled were as vulnerable to exploitation by their handlers as those trafficked.

International pressure

In ratifying the bill, President Yameen has fulfilled one of the recommendations given by the US State Department earlier this year to avoid a downgrade to Tier 3 – the lowest rung on the department’s scale.

Relegation to Tier 3 is reserved for states who are neither meeting the minimum requirements to eliminate trafficking, nor are making concerted efforts to do so. The State Department revealed  in June this year that, despite being spared the downgrade to Tier 3 this year, the country would be ineligible for such a reprieve in 2014.

US diplomat Luis CdeBaca – speaking at the launch of the US’s most recent human trafficking report – said that the guarantee of a downgrade had been introduced to prompt action in countries who had been “getting comfortable being on Tier 2 Watch List, doing a minimum amount.”

Jeehan argued that such international pressure had played a “key role” in paving the way for the new legislation, expressing her belief that the move will be viewed positively by international observers.

The Maldives’ downgrading from the Tier 2 watchlist – where it has remained for four years – could potentially leave it open to non-humanitarian and non-trade international 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.

The Maldives expatriate worker population is estimated by some sources to be as high as one third of the population with the majority coming from Bangladesh. Bangladeshi authorities temporarily halted worker migration to the Maldives earlier this year in order to check on worker eligibility.

Under the previous government, the Immigration Department had targeted the return of 10,000 unregistered workers by the end of 2013.

Institution building

Jeehan today noted that much work was still needed to build the capacity of state institutions in order to adequately fight trafficking.

“Very little has been done to build the capacity of state officials to counter human trafficking. One thing definitely needed is to build the capacity of state institutions,” said Jeehan.

The capacity of the country’s border control infrastructure to adequately deal with trafficking has been questioned in recent months, following the decision of the previous government to replace border control system offered by Malaysia’s Nexbis company with the US PISCES system.

During the legal wrangles that dogged the Nexbis deal from its initial agreement, the company’s Vice President suggested that groups backing the country’s lucrative human trafficking industry could be seeking to stymie the introduction of its BCS to undermine national security controls.

Ashraf stated that the capacity to meet the requirements of the new legislation was there, but that a number of amendments would be needed to make it fully workable – including special visas for trafficking victims.

“Implementation of the bill will require a lot of effort and coordination,” he added, revealing that the Department of Immigration, alongside the International Organisation for Migration, would be holding a training session for all immigration officials on December 15 for this purpose.

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Military labels global corruption survey a “baseless” attack on its reputation

The Maldives National Defence Force (MNDF) has labelled the results of Transparency Maldives’ recently released Global Corruption Barometer (GCB) survey “baseless”.

Criticising local media outlet CNM’s coverage of the report, the MNDF called it “highly irresponsible journalism to publish such news without verifying the facts of it. We also call on media to refrain from publishing such news in the future.”

The survey – reported widely across local media – revealed the results of a random sample of 1,002 people interviewed via telephone on their perceptions of corruption and bribery in the country.

Whilst not perceived by respondents to have been the most corrupt organisation in the country, the military appeared fifth on the list, with 34percent of those interviewed viewing the MNDF as ‘extremely corrupt’.

“While the Maldivian Army has a respectful, pride-filled history, and while every soldier in this force is one who prioritises the nation above self and works with heart and soul to serve this nation, we condemn acts of this manner which aims to hurt the institution’s reputation, create mistrust in the institution, and to incite hatred and discord in citizens’ hearts towards this institution,” responded the MNDF today (dhivehi).

The Majlis topped the GCB’s list with 60 percent feeling it to be ‘extremely corrupt’, followed by political parties (57 percent), the judiciary (55 percent) and the police (also 34 percent). The leading statistic featured in the report was that 83 percent of respondents felt that corruption had not improved – or had worsened – in the past two years.

Recently appointed Home Minister Umar Naseer last week sanctioned the removal of any material inciting hatred towards the police, who have made no comment on the GCB today.

Transparency Maldives’ Advocacy and Communications Manager Aiman Rasheed told Minivan News today that the survey was based on a globally accepted methodology.

“The GCB is reviewed by a panel of experts at Transparency International Secretariat, including independent experts. The methodology is sound.”

Rasheed noted that 79% of the people said that the MNDF was corrupt, up from 54% in the GCB published in Jan 2012.

“As to the reasons why, the perception of corruption is tied to the events and happenings in the country. The events in 2012 and 2013 may not have helped build confidence.”

“The important take away is that the perception of corruption in an institution is a measure of trust and confidence in the institution of MNDF,” added Rasheed.

The MNDF’s outburst marks the second time this month that the media has been attacked for reporting on the military. Last week, the Defence Ministry ministry threatened to take action against any media outlets attempting to criticise the military’s disciplinary policies.

A series of dismissals from within the military have followed the inauguration of President Abdulla Yameen, the election of whom came at the end of a protracted election process which, including one annulled vote and the extension of predecessor President Dr Mohamed Waheed’s term beyond the constitutionally mandated deadline.

During the electoral crisis, a letter signed by 17 high-ranking officers – which expressed concern over possible repercussions in the absence of a president-elect by the end of the presidential term on November 11 – was leaked on social media.

Mainstream media reporting of this letter prompted Defence Minister Mohamed Nazim – since re-appointed – to accuse those outlets concerned of illegally “sowing discord and disorder in the military”.

Several officers were suspended, demoted and transferred following the letter and the MNDF amended its regulations to punish any soldier who “incited upheaval and chaos.”

The following month, 73 mid ranking officers circulated an appeal calling on fellow soldiers not to obey any “unlawful” orders issued by President Waheed or his political appointees.

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India’s diplomatic course correction averts impasse: Russia and India Report

“Indian diplomacy averted an impasse in the ties with Maldives through a course correction through past several months,” writes Indian career-diplomat M.K. Bhadrakumar for the Russia & India Report.

Bhadrakumar compares recent elections in both the Maldives and Nepal, assessing their impact on India’s external relations.

“When the ‘pro-Indian’ elected president was overthrown in Male last year, Delhi took umbrage. Its fury was fuelled by the summary termination of a highly lucrative contract of an influential Indian firm for managing the Male international airport.

But Maldives pushed back and the futility of the pressure tactic compelled Delhi to rethink and change tack to an equidistant stance between the warring Maldivian political parties.

Thus, although the recent presidential election in Maldives produced a surprise outcome, Delhi could engage the new power centre with alacrity. President Abdulla Yameen accepted Prime Minister Manmohan Singh’s invitation to visit Delhi for his first overseas trip as head of state.

However, as any passionate reader of Joseph Conrad would vouchsafe, island states wear a deceptively languid look. There is that certain edginess in the air. Curiously, one major decision taken by the new government in Male is to introduce Arabic language in the curriculum of Maldivian schools. The political elites have not hidden their tilt toward ‘Islamization’ of the Maldivian society.

One way of looking at it is that this is only a variant of cultural nationalism, which is sweeping over the region – India included. But then, it also carries the subtle overtone of an attempt to differentiate the island nation from the ethos of the Indian subcontinent.”

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Transparency Maldives reveals growing perception of corruption

Transparency Maldives’ Global Corruption Barometer (GCB) survey has revealed that 83 percent of people surveyed felt corruption had increased or stayed the same during the past two years.

The survey of 1,002 people – randomly selected and interviewed by telephone – showed respondents to perceive the People’s Majlis as the country’s most corrupt organisation, with 60 percent feeling the legislature to be ‘extremely corrupt’.

Religious organisations were perceived as the least corrupt organisation, with 37 percent of those asked stating definitively that these organisations were ‘not corrupt’.

Speaking at today’s launch event, President of the Anti-Corruption Commission Hussain Luthfy expressed concern at the indicators, noting a clear lack of trust in state institutions.

With local council elections fast approaching, Luthfy pointed out that a failure to reform local government could also be considered corruption.

“In the past five years, the governance system has been so expensive it has impacted the basic public services. Harbors and schools are falling into disrepair.”

Luthy suggested that the current model “bleeds” MVR800 million from the state’s expenditure each year – nearly five percent of the most recently proposed budget.

When submitting the 2014 budget – currently undergoing revisions – Finance Minister Abdulla Jihad urged the state to reduce the size of local level government.

The current model of more than 1,000 elected councillors established by the Decentralisation Act passed in 2010 by the then-opposition majority parliament was branded “economic sabotage” by the incumbent Maldivian Democratic Party (MDP) government, which had proposed limiting the number of councillors to “no more than 220.”

Luthfy went on to urge more transparency within government companies in order to foster an atmosphere in which corruption can be addressed proactively. He suggested that government owned companies often pass resolutions to obstruct the ACC’s investigations.

In a separate statement today, Luthfy argued said the biggest obstacle to the ACC’s fight against corruption was the absence of an anti-corruption bill. He called upon the Majlis – currently considering such a bill – to take the initiative in fighting corruption.

Education

Today’s GCB launch was accompanied by the introduction of a corruption education pack, including five booklets intended to spread awareness of corruption and its impacts on society.

Whilst the GCB figures showed a strong belief that ordinary people could make a difference in the campaign against corruption – with 84 percent agreeing to this statement – the results revealed a lack of will to take action.

Asked if they would be willing to sign a petition asking the government to do more to fight corruption, 86 percent of those surveyed said they wouldn’t. 70 percent said they would not take part in demonstrations against corruption, whilst 61 percent refused to even to raise awareness of corruption through social media.

The most common area in which bribes were paid was said to be land services, with the most frequent reason for giving bribes being ‘to speed things up’.

Earlier this week the ACC alleged corruption in the award of apartments to individuals as part of the Veshifahi Malé housing programme, ordering the invalidation of 139 of the 448 successful applications.

891 GCB respondents stated that they would report an incident of corruption, although only 3 percent admitted to having personally paid a bribe. 85 percent of those who admitted to being asked to pay a bribe said they had refused.

The sample of people interviewed were predomantly male (66 percent) and from urban settings (65 percent). One quarter of respondents worked in the public sector, with 63 percent described as earning a ‘medium’ scale income.

Transparency Maldives, the local chapter of Transparency International (TI)describes the GCB as one of the tools it uses to better understand corruption.

The group’s most widely used indicator – the Corruption Perceptions Index  – was released last week. For the second consecutive year the Maldives was not ranked after TI was unable to gather the necessary data.

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