Author: Daniel Bosley

‘Small justice served to small states’: Waheed speaks at UN

“Small justice is being served for a small state,” President Dr Mohamed Waheed Hassan has said during the meeting of the 67th UN General Assembly.

“It is regrettable, but true, that some powerful international actors have come out in public and instructed the Maldives to take certain measures contradictory to our laws,” he said.

The President’s speech came during a high level meeting designed to reaffirm global commitment to the rule of law in order to further the UN’s goals of international peace, human rights, and development.

“We believe that the story of the Maldives needs to be told. It is a lesson to be learnt by other small states. The application of the rule of law is to protect the smaller and the weaker; to prevent small justice being served to small states,” said the President.

“The world’s small states cannot afford to be complacent. Our experience in dealing with the powerful international actors in the past few months has not been pleasant. If we do not stand up, and draw your attention to the injustices, the next could be one of you,” Waheed said.

A draft declaration agreed upon at the meeting included the recognition that the rule of law applies to all states equally.

Referring to the requests received from the international community during this year’s political turmoil in the Maldives, Waheed said that “powerful international actors” had instructed the Maldives to take certain measures contradictory to its laws.

“We were asked bring to an end a Presidential term and hold elections even if they were not allowed under the Constitution. We were asked in no uncertain terms to abide by such instructions even if it meant amending the Constitution,” Waheed told the meeting.

“We are being asked to withdraw certain criminal cases filed by independent state bodies for crimes as serious as the armed forces abducting and keeping in isolation, a serving judge. We were told to take these measures for the good of the country,” he continued.

The most notable group’s calling for early elections following the controversial resignation of President Mohamed Nasheed in February came from the European Union (EU) and the Commonwealth.

“When we questioned these instructions, the Maldives was labelled as an uncooperative State, casting doubt on the country’s democratic credentials. We were placed on an international watch-list, without due process,” said Waheed.

Commonwealth experience

Waheed’s visit to New York will also see him attend the Commonwealth’s Ministerial Action Group (CMAG) meeting which is scheduled to deliberate upon whether the Maldives will be kept on its investigative agenda.

The government has persistently questioned CMAG’s ability to place the country on this list of nations – reserved for those suspected of violating the Commonwealth’s core values.

Following last month’s Commission of National Inquiry (CNI) report, which appeared to have absolved the current administration of being involved in what had been termed by many a coup, the government has again strongly urged its removal from the agenda.

The composition of the CNI itself was amended after pressure from the Commonwealth.

Waheed’s speech reiterated arguments made in a government statement sent to CMAG earlier this month.

“These are clearly punitive measures against a country whose economy is dependent on its image. The labelling has resulted the Maldives losing significant investments, external loan financing, and foreign tourist arrivals into the country,” he said.

“This has also encouraged domestic unrest. It has choked the country’s governance system and crippled our infant democracy,” Waheed added.

The Maldives’ tourist industry figures show that growth has continued this year, with arrivals increasing by 2.9 percent up to August compared with the previous year.

However, 2012’s year on year growth has slowed significantly when compared with last year’s rate of 18 percent at the same point.

China, whose growing tourists to the Maldives offset falling arrivals from Europe, agreed a package of concessional loans and aid worth US$500million earlier this month.

Concerns over investor confidence in the country have become focused on the airport development deal with Indian company GMR – the largest in the nation’s history. Pro-government political parties have repeatedly called for the airport’s nationalisation.

Significant investment in the renewable energies sector was also said to have been lost this year as a result of the country’s political instability.

“As one of the smallest countries in the world, there is very little we could do politically to counter the pounding that we are subjected to by some international partners. We lack the political and economic might of the larger states to counter the weight of these international players. There is no recourse available for small states like the Maldives. We were not given a fair hearing, or the benefit of doubt,” Waheed said.

“We do recognise that international organisations play a valuable and indispensable role in promoting the rule of law. Small states, like the Maldives, value our membership of international organisations. We depend on them to advance our interests and values. We expect them to work with us in promoting the rule of law.”

International Spokesman for Nasheed’s Maldivian Democratic Party (MDP) Hamed Abdul Ghafoor described the speech as a “sob story”.

“CMAG is saying that there are severe structural deficiencies in the country’s democratic institutions. Waheed has taken advantage of this,” said Ghafoor.

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Inhabited islands need to be halved: Housing Minister

Minister of Housing and Infrastructure Dr Mohamed Muizzu has told local media that the number of populated islands in the Maldives needs to be reduced by half as part of a national resettlement policy.

“The inhabited islands in the Maldives need to be reduced. This cannot be attained within one or two days. It can take up to 10 years,” Muizzu was quoted as saying.

The minister reportedly revealed details to carry out this strategy with a combination of subsidies and housing for those willing to move from smaller to larger islands.

Dr Muizzu was not responding to calls at time of press. However he was reported as saying that relocation would only occur if the majority of an island’s population consented to being transferred, requiring cooperation with local councils.

Haveeru today reported that Haa Alif Molhadhoo Island Council had accused the government of informing the council that its population of 400 would be relocated to nearby Dhihdhoo island without prior consultation.

Muizzu has denied this, reiterating the intention to seek consensus on any consolidation projects whilst highlighting the efforts made to facilitate the potential move.

“We are hoping to start a new housing project in Dhihdhoo in the next two months. Those units will be set aside specially for those moving into Dhihdhoo and would be completely free. There’s no need to even pay rent,” he told Haveeru.

There were also protests against the potential transfer of the population of Rinbudhoo in Dhaalu Atoll earlier this month.

With a total population of nearly 350,000, dispersed over 196 inhabited islands spread over a distance of more than 600 miles, the Maldives is one of one of the world’s most dispersed countries.

Dispersed populations and small island communities have been long recognised as key challenges to the sustainable social and economic development of Maldives.

Both the former Minister for the (now defunct) Atolls Development Ministry and current Vice President, Mohamed Waheed Deen, and Special Advisor to the President, Dr Hassan Saeed, have spoken publicly about the economic importance of population consolidation since the new government came to power.

“Without population consolidation we cannot achieve sustainable economic development,” Deen contended, speaking to the media in April just after taking office.

“Population consolidation needs to start so we can deliver public services fairly to all people as well realising economies of scale in delivery. This cannot be just an aspiration; action has to start now,” Hassan explained in a comment piece for local newspaper Haveeru in June.

The Vice President also expressed his long term vision for economically viable population distribution in the country – going far beyond Muizzu’s aim of bringing the country’s inhabited islands to just under one hundred.

“I envision that people of Maldives will live in 25 to 30 islands. Each island will be of twice that of Hulhumale’. Around 60,000 to 70,000 will live on each island. This is a dream I see. I will try to make this dream come true.”

Muizzu yesterday stated his belief that repopulation will enable the government to better provide for people’s basic constitutional rights with regards to medical care, education, housing and travel.

Studies by the Ministry of Planning and National Development for the most recent National Development Plan (NDP) found strong links between social vulnerability and population size.

With higher rates indicating greater vulnerability based on a composite of twelve living standard dimensions, populations of less than 200 had an average of 5.3 on the Human Vulnerability Index (HVI), islands with more than 2000 inhabitants had an average of 2.4, whilst those with over 4000 had an average of 2.1.

The seventh NDP also found that the average income of islands hosting those displaced by the 2004 tsunami rose by 30 percent within 6 months.

Currently, around 130 islands have populations less than a 1000, and others between 1000-6000, while Male’ accounts for one third of the total population, where the density of the population is over 40,000 per square kilometres.

The government’s repopulation policy signifies a renewed ambition to follow through on the much awaited population strategy that has been discussed for a quarter-century, but has fallen short of making any significant outcomes.

Resettlement of nearly 17 islands were reportedly under review during former President Maumoon Abdul Gayoom’s last term in office, but confronted by the 2004 Tsunami and the pre-2008 democratic reforms, population consolidation plans lost emphasis.

The talks ultimately disappeared from the table under the administration of former President Mohamed Nasheed, which lobbied for a national transportation network between the islands to boost connectivity and economic progress.

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CMAG will not remove Maldives from agenda without guarantees: Dr Shaheed

“If the Commonwealth Ministerial Action Group (CMAG) agrees to remove the Maldives from its agenda – and it’s a big ‘if’ – it will be based on guarantees of free and fair elections next year in which Nasheed could participate,“ said former Foreign Minister and UN Special Rapporteur on Human Rights, Dr Ahmed Shaheed.

Shaheed explained that he had been in contact with a number of ministerial delegations from the group, receiving assurances that the Maldives would not be removed from the agenda without “very good assurances” that human rights norms would be adhered to.

Home Minister Dr Mohamed Jameel Ahmed has today said that any direct conditions set by CMAG could infringe upon the sovereignty of the Maldives, telling Minivan News that nothing along these lines had been conveyed to the government by CMAG.

After the release of the Commission of National Inquiry (CNI) ruled that February’s transfer of power was constitutional, prominent members of the government have argued that the country be removed from CMAG’s investigative agenda.

Conversely, members of the now-opposition Maldivian Democratic Party (MDP) have been lobbying for the Maldives to stay on the group’s agenda, arguing that questions still remain over the country’s ability to adequately observe the values of the Commonwealth.

This campaigning has taken former President – and current MDP presidential nominee – Mohamed Nasheed, to the UK this week, where he met with Foreign Secretary William Hague and asked him to back calls to ensure continued Commonwealth oversight of the Maldives.

“We want to be on someone’s agenda until the elections are through. That’s what we’re trying to do now. I have known William Hague for some time. I know they have difficulties as a government. They have to take on board everything and give proper consideration to the regional sensibilities of British intervention in the Maldives,” the UK’s Telegraph newspaper reported Nasheed as saying.

“But we feel now that they have an avenue to help the Maldives through the Commonwealth. What we are asking for is not the sun, the moon and the stars. What we are asking for is very natural and it can be done.”

Nasheed also spoke at the Royal Commonwealth Society on Wednesday, where he pushed for the Maldives to remain on the CMAG agenda, despite the CNI report’s findings.

“I am not for one second suggesting the transfer [of power] was legal… but we don’t have to go there to keep us on the CMAG agenda,” he continued, arguing that the persistent violations of the Commonwealth’s values was ample grounds to keep the country on the CMAG agenda, according to its revised mandate.

Jameel remained confident, however, that CMAG’s role in the this year’s political crisis ended with the CNI’s legitimisation of the current government: “We do not believe that CMAG will take any steps to exceed its mandate as it exercises a defined function.”

Shaheed’s comments regarding Nasheed’s ability to run in next year’s elections come as the government continues to pursue him through the courts, with prominent politicians stating a desire to see the former Amnesty International prisoner of conscience back behind bars.

On Wednesday evening, Nasheed acknowledged his fears of returning to prison.

“I don’t want to be there but we have to face reality of consequences and I don’t see the international community as robust enough to stop that happening – this is very sad… I might not be with you for the next few years but, rest assured, we will come back and democracy will reign in the Maldives again.”

Jameel today argued CMAG could not override domestic legal proceedings.

“The people have decided the criminal justice system of the Maldives. So no foreign party has the authority to dictate or ask to revise that process,” he told Haveeru, referring to charges against Nasheed in relation to the detention of Judge Abdullah Mohamed in January this year.

During his time in London, Nasheed also met with Richard Ottaway MP – Chair of the Foreign Affairs Select Committee, Alistair Burt MP – Parliamentary under-secretary of state at the FCO as well as MPs John Glen MP, Mark Menzies, and Karen Lumley.

A Spokesperson from John Glen’s office said that discussions had included the Commonwealth’s procedures in such cases as well as Britain’s role in dealing with the CNI report.

Dr. Shaheed spoke to Minivan News from London just before boarding a plane to New York, where he will be lecturing on human rights.

He has recently accepted a position at the University of Essex in the United Kingdom as visiting professor of human rights practice for the coming academic year. He will continue his work for the United Nations.

President Dr. Mohamed Waheed Hassan also left for the United States yesterday morning, where he will reportedly be attending the next meeting of CMAG on September 28, at which a decision on the removal of the country from the agenda is expected to be made.

Waheed will also be attending the 67th session of the United Nations General Assembly (UNGA) which opened last Tuesday.

Despite the Commonwealth Secretariat being based in London, for logistical reasons CMAG also meets annually in New York alongside the UNGA.

The previous teleconference meeting, earlier this month, was expected to produce a decision on whether to remove the Maldives from the agenda.

After an inquiry as to why no decision was made at the teleconference, following local media reporting technical problems, the MDP was informed that the CMAG ministers preferred to conclude such discussions face to face.

Shaheed suggested that Waheed’s attendance at the meeting could be taken advantage of by CMAG members to “wrest concessions” from the president.

He added that sending the president himself was a far better idea than sending other members of his cabinet who had “waged war” on CMAG.

No spokesperson from the President’s Office was responding to calls at time of press.

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Will accept “cover up” with CMAG as price for progress, Nasheed tells Royal Commonwealth Society

Additional reporting by Mohamed Naahee and Kylie Broomhall

“I beg the Commonwealth Ministerial Action Group (CMAG) not to deliberate on how power was transferred in the Maldives,” former President Mohamed Nasheed told the Royal Commonwealth Society yesterday.

“I will be party to the cover up because we want a better life. Because we want to move forward. Because we want development,” he said.

Nasheed addressed an audience at the Commonwealth Club in central London during his visit to the United Kingdom.

Despite his reservations regarding the decision of Commission of National Inquiry (CNI), whose report ruled the transfer of power to have been in line with the constitution, Nasheed said that he no longer expected the international community to say it was a coup or to attempt his reinstatement.

“I will not rely anymore upon international engagement in consolidating democracy. I have no antagonism or outrage towards the international community – nothing like that – it’s practically not possible for them to do it,” he said.

He told the audience that he had sent a letter to the Secretary General before the coup, asking for assistance in consolidating a democracy which he felt was “under stress”.

“I am not for one second suggesting the transfer was legal…but we don’t have to go there to keep us on the CMAG agenda,” he argued. “I am willing to cover up the coup with the CMAG, I am willing to be party to it. But I’m not willing to be a party to doing the same thing to another country.”

The former president expressed his view that the revised mandate of CMAG allowed it to work more pro-actively, and that the Maldives case represented a “golden opportunity” to deal with issues other than merely violent overthrows of governments.

He argued that the new mandate, agreed upon in Perth in 2011, gives the body scope to keep countries on the agenda if there are persistent violations of the Commonwealth’s core values or severe deficiencies in democratic institutions.

Nasheed, therefore, stated his belief that it was “rather silly that we are talking about being removed from agenda”.

He also pointed out to the UK government that there was nothing in the Commonwealth’s regulations that requires a nation to be a member CMAG in order to lobby for keeping others on the CMAG agenda.

“I believe most of you pay your taxes believing your governments will do something about these things,” he told the audience.

“Unfortunately, after the coup, the Commonwealth appears to have forgotten that it is a new Commonwealth, that it is a new CMAG.”

Speaking at a press conference this morning, State Minister for Foreign Affairs Dunya Maumoon expressed her confidence that the Maldives would be removed from the CMAG agenda at the group’s next meeting on September 28th.

She had previously joined fellow senior politicians in suggesting that the the Maldives should leave the Commonwealth if it was not promptly removed from the agenda.

Climate change, the judge, and Islamic radicalism

Before taking questions from the floor, Nasheed took some time to discuss the issue that brought him to the world’s attention before his ousting – climate change.

“Coup or no coup – I hope to continue talking on these subjects,” he said. “Small countries must focus again and again on climate change – that is the principle issue of the 21st century.”

Nasheed stated his belief that development could be achieved without increasing carbon emissions, arguing that advances in technology meant that it was still be possible for the Maldives to reach carbon neutrality by 2020.

The Maldives’ most ambitious renewable energy project, the Scaling-Up Renewable Energy Program (SREP) was due to be finalised on the day Nasheed resigned. The ensuing political instability in the country deterred potential investors, causing the deal to fall through.

The new government has continued to pledge its commitment to the environmental projects and yesterday received contributions from its international partners for three new schemes under the Climate Change Trust Fund (CCTF)

Pre-empting anticipated questions about the arrest of Judge Abdullah Mohamed, Nasheed expressed his regret but argued that he had no other options.

“[In response to questions] I would say it’s complicated – we’ve done it. This was the only gentleman that I ever arrested,” he said.

“That’s not the kind of thing you’re supposed to do as a president and that’s not the kind of thing you’re supposed to do in consolidated democracy but I thought that people would also try to understand what happened there,” he continued.

When asked about potential action against those implicated in a coup, should he return to power, Nasheed reiterated his commitment to searching for amicable ways of “settling scores”.

“We are not going to go for a witch hunt. If you want that, the people of Maldives must find someone else to do that,” he said.

One member of the audience asked Nasheed when he felt his former Vice President, Mohamed Waheed Hassan, turned against him.

Nasheed responded that he felt Waheed had switched sides very early on in his presidency: “It’s a beautiful way of becoming president and you must give credit to that”.

When the same person asked about Islamic fundamentalism in the Maldives, Nasheed expressed his fears that the country was becoming more radicalised every day.

“When you have weak government, they are having to rely on any bit of support they can get from any quarters. So, unlike us, this government seems to entertain the radicals,” he said.

“In fact,” continued Nasheed, “the core of the renegade soldiers in the Maldives National Defence Force (MNDF) were radicals. They came and joined the mutinying police, chanting ‘God is great’.”

“They are requesting for the military to grow their beards – I hope our military isn’t the biggest Al Qaeda cell in the Indian Ocean.”

Concluding his speech, Nasheed said that he expected he would be arrested in the near future.

“I don’t want to be there but we have to face reality of consequences and I don’t see the international community as robust enough to stop that happening – this is very sad… I might not be with you for the next few years but, rest assured, we will come back and democracy will reign in the Maldives again.”

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Climate Change Trust Fund receives money for new projects

The Maldives government and its international partners today announced the launch of three projects under the World Bank administered Maldives Climate Change Trust Fund (CCTF).

A total of US$8.5million has been contributed by Australian Agency for International Development (AusAID) and the European Union (EU) to the CCTF to assist with these projects.

The CCTF was established in 2010 after the signing of an MOU between the Maldives government, the World Bank Group and the EU with the aim of targeting solid waste management, capacity building for environmental management, and technical assistance for monitoring and managing key natural assets.

The projects announced today included the Ari Atoll Solid Waste Management Pilot (AASWM) and a project called Wetlands Conservation and Coral Reef Monitoring for Adaptation to Climate Change (WCCM).

AASWM will assist in reducing greenhouse gas emissions and damage done to the local marine environment in the western atoll.

“The success of the pilot project is expected to bring about the participation of the remaining inhabited islands of Ari Atoll, particularly those where IWMCs were built with prior funding from EU”, said Bernard Savage, EU’s Ambassador to the Maldives.

Australia’s new High Commissioner to the Maldives, Robyn Mudie described the benefits of the WCCM scheme.

“Sustaining wetlands and coral reefs is a cost-effective strategy for climate change adaptation with strong benefits for disaster mitigation, ecosystem conservation and economic growth”, she said.

The WCCM will work with resorts in North and South Male’ atolls to demonstrate the way in which monitoring techniques can help in targeting conservation efforts.

“The WCCM being implemented in Fuvahmulah of Gnaviyani Atoll, Hithadhoo of Addu Atoll and Alif Alif Ukulhas Island in North Ari Atoll will benefit its 22,000 inhabitants enabling the local governments to implement a clear strategy for wetland management, drainage management, ecotourism and community rainwater harvesting,” read today’s joint press release.

“These three projects will be particularly useful in the context of the decentralized governance framework and public private partnerships. Once piloted and proven successful, the models could be scaled-up and replicated across the country,” it added.

The final project announced today will attempt to provide an annual 300MWh of renewable energy via solar voltaic systems and energy efficiency measures for the people of Thinadhoo Island in the Gaafu Dhaalu Atoll.

“Independence from carbon-based fuels, if achieved through energy efficiency improvements and use of indigenous renewable energy resources has important energy security co-benefits as it will avoid fossil fuel imports that cost Maldives 20 percent of its GDP, annually”, said Dr. Mariyam Shakeela, Minister of Environment and Energy.

The Maldives’ most ambitious renewable energy project, the Scaling-Up Renewable Energy Program (SREP), fell through after political instability in the country deterred potential investors.

Climate change governance

The World Bank’s original objectives for the trust fund’s programme included strengthening government leadership and increasing the country’s institutional capacity to deal with climate change issues.

Following the announcement of these projects, local civil society group Transparency Maldives (TM) told Minivan News of its concerns regarding the CCTF financing agreement.

“We welcome the utilisation of the funds from the CCTF for the benefit of the people, but we note that the Financing Agreement of CCTF was signed in January 2011 and, as the Auditor General’s report for 2011 has identified, there are considerable delays as well as waste involved in CCTF,” a spokesperson said.

“This points to weaknesses in climate governance in the Maldives,” they added. “At the same time, we are deeply concerned by the constant change of institutions or creation of new institutions or inaction of existing ones. This increases risks of corruption.”

The spokesperson expressed their concerns that the civil society and the public were not more involved in the conception and planning of climate change projects.

TM established the Climate Change Integrity Project (CGIP) last year in order to help ensure that financing for climate change projects is transparent, equitable, and free from corruption.

“These three projects will be particularly useful in the context of the decentralized governance framework and public private partnerships. Once piloted and proven successful, the models could be scaled-up and replicated across the country,” said today’s EU, World Bank and AusAID press release.

The current government has been criticised by members of the opposition Maldivian Democratic Party (MDP) for what it views as attempts to undo the decentralisation measures taken during its time in office

Following the decision last April to re-centralise health and utility service, party member Aminath Shauna said that it was impossible to effectively implement country-wide services from the capital.

“They want to re-establish a relationship of dependency between the islands and Malé. Their intent in this is to consolidate power,” said Shauna.

Similarly, party’s spokesman Hamid Abdul Ghafoor last month stated his belief that public-private partnerships (PPP) initiated under the MDP government have been suspended “in the interest of preserving the status and wealth of few local wealthy businessmen.”

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Four Seasons Maldives wins prestigious Conde’ Nast travel awards

Four Seasons Hotels and Resorts CEO Katie Taylor yesterday received two prestigious Conde’ Nast World Savers Awards, on behalf of the company’s resorts in the Maldives.

Four Seasons Kuda Huraa and Landu Giraavaru resorts have been awarded the Conde’ Nast World Savers Awards in the categories of ‘Wildlife Conservation’, as well as the overall ‘Doing it all’ award.

“It’s in Four Seasons’ DNA to take steps to support the local community and environment in every destination where we operate; our social and environmental efforts in the Maldives date back to 1998,” said Regional Vice President of Four Seasons Resorts Maldives, Armando Kraenzlin.

Four Seasons Maldives also came runner up in the ‘Education’ category, one of six areas of social responsibility judged by an independent panel, which also include ‘Preservation (Environment and Cultural)’, ‘Health Initiatives’ and ‘Poverty Relief’.

A record 111 applications which were received this year for the luxury travel magazine’s awards, which are now in their sixth year.

A press release from Four Seasons explained that the company’s coral reef regeneration project, now in its 15th year, had become one of the most successful in the world.

The project started after 1998’s major El Niño–event destroyed most of the country’s shallow reef coral and has been assisted by marine consulting firm Seamarc since 2004.

Four Seasons also runs a Hospitality Apprenticeship Scheme in the Maldives which this year will offer 50 young Maldivians a year’s vocational training in food and beverage preparation, service, maritime transport, housekeeping and guest services, PADI dive master and water sports.

The program, which has been operating for a decade, is open to young Maldivians aged 17-20, with O-level certifications and has seen more 265 young Maldivians graduate, said the company’s release.

Earlier this year Four Seasons Kuda Huraa worked with the local community of neighbouring Bodu Huraa and pest control consultant Trudy Rilling-Collins to introduce sustainable and environmentally-friendly mosquito control procedures.

Four Seasons stated that they had also contributed to projects involving two resort water-bottling plants, plant nurseries, local education and awareness outreach programs, health initiatives in support of local islands, support for local artisans, teachers and the Manta Trust charity.

Whilst the company was receiving its awards at the Lincoln Center in New York, Four Seasons Kuda Huraa were conducting a climate change workshop focusing on coral reefs and tourism, hosted by Seamarc marine biologist Patrik Svensson.

“Moving forward, the team at Four Seasons Resort Landaa Giraavaru is committed to working closely with local communities and agencies to ensure that the Baa Atoll World Biosphere becomes a world-class example of its kind, while at Kuda Huraa, the focus is very much on continuing to develop the Maldivian Sea Turtle Conservation Programme,” continued the release.

Earlier this week, Sylvia Jagerroos – a marine biologist working with Four Season’s partner Seamarc – discovered a dismembered turtle on the uninhabited island of Funadhoo in Baa Atoll, one of the country’s 14 priority nesting beaches legally protected under Maldivian law.

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Bahraini company interested in Cable & Wireless’ Dhiraagu shares

Dhiraagu’s leading shareholder, Cable and Wireless Communications (CWC), has received an offer from a Bahraini company regarding its Monaco & Islands business unit.

This section of the multinational’s portfolio – one of four regional units – consists of Monaco, the Maldives, the Channel Islands, the Isle of Man, the Indian and Atlantic Oceans, and Africa.

The company has released a press statement confirming the approach.

“Cable & Wireless Communications Plc today confirms that it has received an approach from Batelco Group regarding a possible transaction involving its Monaco & Islands business unit,” read the statement.

“At this point, there can be no certainty that the discussions will lead to a transaction,” it added.

CWC took a controlling stake in Dhiraagu, the Maldives’ largest telecommunications company in 2009 when former President Nasheed’s government sold 7 percent of its shares, giving the British-based firm a controlling stake in the company.

Then-opposition parties criticised the sale, arguing that the acquisition of large stakes of domestic companies by foreign investors was bad for the country.

Similar arguments have been levelled against the development of Ibrahim Nasir International Airport (INIA) by Indian company GMR, sparking fears that foreign firms will be deterred from investing in the Maldives.

CWC now controls 52 percent of Dhiraagu’s shares,with the government holding just under 42 percent as of March this year.

Dhiraagu is currently the largest company on the Maldives Stock Exchange (MASEX) by market capitalisation after listing in January this year.

CWC’s 2011/12 financial report showed that it made $586million in pre-tax revenue from it ‘Monaco & Islands’ interests – 83 percent of this pre-tax revenue came from the company’s interests in Monaco, the Maldives and Guernsey.

The report mentioned that, despite strong growth which saw the Maldivian Rufiyya (MVR) revenue increase by 3 percent, the free float of the currency resulted in a 14 percent loss compared with the previous year’s US Dollar (USD) revenue.

The April 2011 decision to allow the MVR to be traded within 20 percent of the pegged rate of MVR12.85 to the USD effectively devalued the currency as the exchange rate rose quickly to MVR15.42 to the USD without moving since.

Praised by the International Monetary Fund (IMF) as “an important move toward restoring external sustainability,” although some local experts described the decision as “high risk” and “unpredictable”.

“CWC has long been seen by analysts as wanting to sell its island assets, as well as its unit in Macau, given its longer term strategy of focusing on its core business in the Caribbean,” said Britain’s Financial Times .

Batelco (Bahrain Telecommunications Company) operates in Jordan, Kuwait, Saudi Arabia, Yemen, Egypt and India, as well as its home market.

The Financial Times reported that the company was seeking to expand its foreign investments after its domestic subscribers and profitability had dipped, citing stiff local competition.

“Bahraini companies have suffered amid political unrest in the Gulf state that led to widespread protests and a security crackdown,” the paper added.

The company’s shares on the Bahrain Bourse have fallen nearly 13 percent so far this quarter.

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Attorney General asks for Supreme Court to decide jurisdiction on GMR

The Attorney General Azima Shukoor has said she will ask the Supreme Court to rule on whether the laws of the Maldives can be applied to the government’s agreement with GMR concerning the development of Ibrahim Nasir International Airport (INIA), local media has reported.

Shukoor, who was not responding to calls at the time of press today, said a request was sent following the release of a Supreme Court statement yesterday.

“It is against the International laws and the United Nations Charter that any action that undermines any sovereign right of a sovereign state, it is clear that courts of a sovereign nation has the jurisdiction to look into any matter that takes place within the boundaries of that state as according to the constitution and laws of that state,” read the statement.

“Even though a contract has an arbitration clause giving right to arbitrate in a foreign court does not limit a local courts jurisdiction to look into the formed contract, and it is clear that such limitations are in violation of UN Charters principles of sovereign equality, principle of sovereign non intervention within domestic jurisdiction, principle of self determination rights,” read the statement.

Shukoor told Haveeru that if the case could be dealt with by the Maldivian courts, the process would become much easier.

However, she also expressed her confidence that government would be successful in the arbitration case regarding the Airport Development Charge, which was file by GMR in Singapore.

“We can win the case at the Singapore Arbitration even by biding our time. It is quite certain,” she told Haveeru.

The original agreement, argued Azima, was drafted under UK law although both sides agreed to settle any disputes through third party arbitration.

Arbitration

Third party arbitration is often used in order to gain impartial decisions from international experts whilst avoiding the uncertainties and potential limitations of local courts.

One of the world’s leading arbitration companies, the Singapore International Arbitration Centre (SIAC) gives a number of examples of why Singapore is frequently chosen for international arbitration.

Number one in its list is the country’s strong reputation for neutrality, currently placed fifth in Transparency International’s Corruption Perceptions Index, behind New Zealand, Denmark, Finland and Sweden

The Maldives is currently placed 134th in this list alongside Eritrea, Pakistan, and Sierra Leone.

The Maldives judicial system has also faced issues regarding its political independence since the adoption of the 2008 constitution.

A recent report by the International Federation for Human Rights (FIDH) said that “different sections of the judiciary have failed to become fully independent and still lack adequate expertise.”

“According to testimonies from members of the judiciary met by the FIDH team in Male’, under the successive administrations, no political party has actually ever shown any willingness to establish an independent judiciary since each seems to benefit from the existing system,” said the report.

“Moreover, the judiciary is allegedly under the influence of the business sector. For instance, the member of the JSC appointed by the Majlis is also one of the main business tycoon of the country. His presence in the body overseeing the conduct of judges, as well as the general pressure imposed upon the business sector on the judiciary, has therefore been subjected to controversy,” it concluded.

Both civil society groups as well as the current government have acknowledged the need for stronger independent institutions in the country.

President of the Anti Corruption Commission (ACC) Hassan Luthfee told local media yesterday that one of its three cases regarding the GMR deal was nearing completion.

Luthfee, who has recently questioned the ability of the ACC to fulfil its mandate, told Minivan News last week that a high profile case such as this was not easy for the institution to finish which was likely to result in delays.

“Even an international organization such as the International Finance Corporation (IFC) had provided expertise in this case. So when such an allegation of a major criminal offence has been made we must probe the matter quite extensively. This is by far the most high profile and sensitive case. So we must be certain,” he told Haveeru yesterday.

The IFC was forced to defend itself this week after being described by senior cabinet figures as “irresponsible and negligent” during the INIA bidding process.

Shukoor had said last week that as long as the agreement between GMR and the government is not invalidated, the agreement would be “legally binding” despite a “majority of the people” who wish to “terminate the agreement immediately”.

She also expressed the government’s concern about the effect on investor confidence that may result if the agreement was terminated.

Independent MP Mohamed Nasheed today told local media that, despite indicating its willingness to do so, the Majlis had not at present become a party to the 1958 New York Arbitration Convention which deals with the recognition and enforcement of arbitration awards.

Nasheed argued that the Maldivian constitution requires citizens to act in accordance with international conventions which have been backed by domestic legislation.

He added, however, that the Maldives’ Arbitration Act was still in the committee stage.

Nasheed was not responding to calls at the time of press.

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Self-exiled blogger Hilath speaks at UN Human Rights Council

Maldivian journalist and blogger Ismail ‘Hilath’ Rasheed last week spoke at the United Nation’s Palace of Nations during the 21st session of the Human Rights Council (HRC).

In a side event dedicated to the Maldives, Hilath spoke of his fears of rising fundamentalism in his home country and called for the international community to keep a close watch on the Maldives to ensure the protection of human rights and democratic freedoms.

“Maldives may be a small country but it is not insignificant. It lies at a strategic crossroads and the cultural and political invasion of Maldives by Saudi-funded Wahhabi extremism will definitely have regional and global repercussions,” said Hilath.

Hilath was forced to flee the Maldives earlier this year after an assassination attempt left him within millimetres of death when a group of men slashed his throat just yards from his home in Male’.

Hilath later attributed the assassination attempt to Islamic radicals who had threatened his life on numerous previous occasions.

As well as making international headlines, Hilath’s case has been championed by both Reporters Without Borders (RSF) and, more recently, by the International Federation for Human Rights (FIDH).

Both organisations called for an immediate investigation into the attack, the latter criticising the authorities for failing to adequately investigate the incident.

“Until 2003, for the past 800 years, the Maldives had been a moderate and liberal Islamic country,” said Hilath, whose speech is also available on his blog which has been blocked by the authorities since November.

“However, in the last years of [Maumoon Abdul] Gayoom, due to poverty and oppression, and also as a result of the forced imposition on the Maldivian people of Gayoom’s own version of Islam, extremism took a hold, and though it is still a minority, it is a very vocal and formidable one that both [Mohamed] Nasheed’s and [Mohamed] Waheed’s governments have been unable to tackle,” he continued.

“But a stark difference has been that while Nasheed’s government officially acknowledged there was an extremist problem in Maldives, Waheed is refusing to acknowledge the problem. While Nasheed sought to keep extremism in check by bringing them into his government, in the form of the Adhaalath Party, Waheed came into power on the back of extremism, and therefore is giving free reign to extremists,” said Hilath.

Prior to this year’s transfer of presidential power, Hilath suffered a fractured skull after an attack during a silent protest in support of religious tolerance last December.

He was later arrested in relation to the protest after the religiously conservative Adhaalath Party (AP) wrote a letter to the police.

This prompted Amnesty International to declare him a prisoner of conscience and to demand his immediate release.

The 2008 constitution defines the Maldives as a one hundred percent Sunni Islamic nation and makes observance of the faith a prerequisite of citizenship.

“What is worrying is that while Nasheed allowed extremists to spread their propaganda through private channels, Waheed’s government is directly sanctioning the promotion of the extremist agenda through official religious channels,” said Hilath.

“The Adhaalath Party, under whom extremists operate, and under whose umbrella the Islamic Affairs Ministry has been under both Nasheed and Waheed, is now using Friday prayer sermons, also known as khuthubas, to spew bigotry, mysogyny, homophobia, xenophobia, racism, sexism and other sorts of discrimination, and to issue fatwas or religious rulings proclaiming the arts and humanities, such as photography, art, music, singing, dancing and acting as haram or sinful,” he added.

Two days after Hilath’s speech in Geneva, the Islamic Ministry distributed a circular calling for the banning of mixed gender dancing.

This news put the Maldives in the global media spotlight for the second time this month after the sentencing of a 16 year old girl to 100 lashes for fornication – in accordance with Islamic Sharia – had already made international headlines.

Last Friday also saw a gathering of religious protesters outside of the United Nations (UN) building to register their anger at the anti-Islamic film “Innocence of Muslims”.

Protesters burned the American flag and waved banners, one of which read “Maldives: Future graveyard of Americans and Jews”.

Repeated chants were heard urging President Waheed to return America’s US$20,000 contribution to restore the historical Buddhist artifacts in the museum, which were destroyed by a mob of vandals during February’s political turmoil.

Some protesters stated that if the idols were restored, they would promptly destroy them again.

In response to the issue of dancing, President’s spokesperson Abbas Adil Riza told the Associated Free Press (AFP) this week that the circular was not legally enforceable and that the Maldives would always be “a very tolerant society”.

“It is deeply regrettable that both Nasheed and Waheed have done little or nothing to curb extremism as every political party in Maldives seems afraid of extremists,” said Hilath.

“What is really depressing now is that since Waheed’s government is backed by Islamic extremists, who in turn have been backed by rogue police and military officers, extremists are now acting with impunity,” he added.

“The only hope we have in saving the Maldives is by the international community keeping a close watch. I, therefore, welcome UN Human Rights Commissioner Ms. Navi Pillay’s decision to assign a Human Rights Advisor to the Maldives as rising Islamic extremism is causing serious setbacks to human rights, freedom of expression and democracy in the Maldives,” he said.

After visiting the Maldives last November, Pillay called for a moratorium on corporal punishment and criticised the Muslim-only clause in the constitution.

Protesters subsequently gathered outside the UN building, calling for Pillay’s own arrest and flogging.

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