Author: Luke Powell

Opposition expresses concern at defence spending hike in 2013 budget

Additional reporting by Ahmed Naish.

Budget Review Committee Member and Maldivian Democratic Party (MDP) MP Mohamed ‘Colonel’ Nasheed has revealed his party held “concerns” over the level of increased defence spending in the recently approved 2013 budget.

The 2013 state budget included a 14 percent increase to the 2012 defence budget that stood at MVR 797.9 million (US$51.7 million).

Amidst attempts to reduce the state’s budget deficit, MVR 130 million (US$8.6million) had been allocated to defence spending, bringing the total to MVR 930.9 million (US$60.3 million) for this year.

Authorities claim that the increased spending for the year is needed to cover additional duties such as the transfer of aviation security under the Ministry of Defence.

Through the budget review committee’s evaluation of the state budget, MP Nasheed claimed  that he and other members of the MDP had raised questions regarding the increase in the defence budget.

“While we understand national security is paramount, we did find the 14 percent increase to the defence budget a bit fishy,” he claimed. “We [MDP budget review committee members] raised questions regarding our concern over the increase, but unfortunately we do not have the majority on the committee.”

In order to reduce the budget deficit, the budget review committee made cuts of MVR 1.6 billion (US$103.7 million) to the MVR 16.9 billion (US$1 billion) state budget proposed by Finance Minister Abdulla Jihad. Parliament eventually passed an amended MVR 15.3 billion (US$992 million) state budget.

According to the Budget Review Committee report, the Maldives Monetary Authority (MMA) advised the committee to reduce total expenditure to MVR 15 billion and attempt to reduce public debt.

Despite the recommendations, Defence Minister Mohamed Nazim this week defended the MVR 130 million increase,  telling Minivan News that the money was needed to accommodate the newly established Aviation Security Command.  The operations have been put under the Ministry of Defence and National Security.

President Dr Mohamed Waheed Hassan Manik announced the establishment of the Aviation Security Command On Tuesday (January 1) in order to formulate aviation security policies and procedures.

Aside from undertaking new responsibilities under the Aviation Security Command, Defence Minister Nazim said additional improvements for Maldives National Defence Force (MNDF) personnel welfare were also being sought.

“We are also looking to improve accommodation for MNDF personnel, and we will be looking to open an operating theatre and Intensive care unit in the military hospital,” said Nazim.

When asked as to why the military hospital needed to be expanded given the size of the MNDF, Nazim said that uniformed personnel waiting in line to receive treatment at the other two hospitals in Male’ wasted valuable service time.

“The hospital is not just utilised by the military, it is also used by the police force and immigration and customs officers,” he added.

When addressing the issue of increased defence spending within the budget, Dhivehi Rayyithunge Party (DRP) MP and budget review committee member Dr Abdulla Mausoom said that national security was an important consideration needing to be made.

“You are talking about national security, and now aviation security for a whole country. Yes the budget is more than reasonable. The DRP is under no influence from the government and this time we are not concerned over the increase in the defence budget,” Mausoom said.

New uniforms and new accommodation for MNDF

Speaking at a ceremony on Monday (December 31, 2012) to unveil new uniforms for naval officers, Defence Minister Nazim said that efforts were underway to arrange accommodation for more officers at MNDF centres.

“Equipment has been purchased to arrange accommodation for officers. After the repairs, more officers will get accommodation in the next three months,” Nazim was quoted as saying.

The new accommodation would be provided at the MNDF Bandaara Koshi and Kalhuthu’kala Koshi in Male’, Nazim said.

Nazim said that efforts were also being made to arrange for low cost medical treatment for MNDF officers and their families overseas.

Providing accommodation to MNDF officers was discontinued as part of cost-cutting measures implemented by the administration of former President Mohamed Nasheed.

During last month’s budget debate, parliament’s Majority Leader, MDP MP Ibrahim Mohamed Solih, criticised the Finance Minister for failing to mention in his budget speech plans to hire 864 new police and army officers.

MP Solih, parliamentary group leader of the MDP (MDP), noted that the wage bill would shoot up 37 percent in 2013 compared to the previous year.

Echoing the concerns of the parliamentary group leader, MDP MP Eva Abdulla revealed that MVR 6 million (US$ 389105) was added to the budget of the Maldives National Defence Force (MNDF) following the controversial transfer of presidential power on February 7.

Former President Nasheed has alleged that he was forced to resign from office under “duress” in the wake of a police mutiny on February 7. Eva raised concerns that the police and army have hired 250 and 350 new staff respectively under the new government.

Consequently, both institutions found to have spent more than MVR 75 million (US$4.8 million) in addition to the approved budgets for 2012, she claimed.

Eva observed that the increase in the government’s wage bill of 37 percent was approximately MVR1.7 billion (US$110 million), which was also the amount allocated for harbour construction in the 2013 budget.

These funds should instead be spent for “harbours, education, sewerage and housing,” she argued.

Defence budget breakdown

Of the MVR930.9 million assigned for the military, MVR 805.4 million (US$52.2 million) is to be spent on military defence and MVR 125.5 million (US$8.1 million) on civil defence, according to the defence budget proposal last month.

Moreover, defence expenditure under the Public Sector Investment Projects (PSIP) include MVR 3.1 million (US$201,000) for the construction of a troops accommodation building in Gaaf Dhaal Thinadhoo and MVR 1.9 million (US$123,216) for a military barracks in Laamu Kadhdhoo.

Following the controversial transfer of presidential power in February, where sections of the police and military mutinied against the former government, an allowance of military personnel pending for more than two years was disbursed in a single payment by the Waheed administration.

Local media reported at the time that some officers had received over MVR6000 (US$390) in accrued allowances, although a total figure spent on the pay out, or how many officers received the allowances, was not stated.

MVR 1.1 billion has been budgeted to pay salaries and allowances for 7,108 personnel in the uniformed bodies.

The figure in the 2012 budget was MVR 999 million for 6,244 army and police officers.

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Preparations for presidential elections underway: President Waheed

President Dr Mohamed Waheed Hassan Manik has assured the public of a “free and fair” presidential election in 2013 as part of his New Year statement.

Waheed used his address to announce that preparations for the 2013 presidential elections were already underway and that the government intended to take “all necessary measures” to ensure a fair election.

Following political tension in the nation following the controversial transfer of power on February 7, 2012, President Waheed said it would be vital in the build up to this year’s election for society to put aside its differences.

“As we prepare for the upcoming elections, I urge the people to strengthen the harmony and unity that have existed in the Maldivian society over the years, and not to allow anyone to disrupt this social harmony,” he said.

“The year 2012 saw major challenges, especially in the political challenges, in the country. It was, however, a year in which steps were taken with patience to maintain the security, safety and harmony of the country and its people,” he said.

The President assured the public that the government intended to improve both the general welfare and security of the people within the capacity of the budget passed by the People’s Majlis on December 27.

“The government will continue to create a safe society with reduced crimes. I call upon the people of the Maldives to put national interest ahead of their political interests,” Waheed added.

President Waheed’s government was brought to power on February 7 last year following a controversial transfer of power later deemed legitimate by a Commonwealth-backed Commission of National Inquiry (CNI).

However, Dr Waheed’s predecessor, former President Mohamed Nasheed, has questioned the CNI’s findings, alleging that he was forced to resign from office under “duress”.

Concerns about the CNI’s conclusions were also raised last month by former Human Rights Minister Fathimath Dhiyana Saeed after she was dismissed by the present government back in November.

“Stolen democracy”

In his own New Year statement, former President Nasheed claimed that democracy had been “stolen” from the public by individuals looking to “further their narrow political ambitions”.

“We have seen a worrying return of police brutality and state-sanctioned violence and intimidation. With this we saw an increase in violent crimes including the tragic murder of Member of Parliament and Islamic scholar Dr Afrasheem Ali, fatal attacks on a journalist and members of public of whom some are children,” Nasheed alleged.

The former President claimed the country had been reported in the world’s newspapers for “all the wrong reasons” and that the Maldives is no longer the “successful Muslim democracy” it once was.

“Instead, the media has been full of stories about human rights abuses, coup d’etat and the government’s disastrous foreign policy decisions that forced out the largest foreign direct investor in the Maldives,” Nasheed added.

“I hope that this year, we will see a genuinely free and fair election, in which everyone is allowed to compete.”

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Maldives to implement smoking ban from New Year’s Day

Individuals caught smoking in ‘tobacco-free zones’ such as cafes and public places risk a MVR 500 (US$32) fine under new regulations to be implemented from tomorrow (January 1, 2013).

The ‘Regulation of Determining Tobacco Free-Zones’ (Dhivehi) prohibits smoking inside cafes, tea shops, restaurants, public places where people usually gather in numbers, parks and all government buildings.

Public Health Programme Coordinator at the Centre for Community Health and Disease Control (CCHDC) Dr Fathmath Nazla Rafeeq told Minivan News today that notices were expected to be put up around Male’ to inform the public of tobacco-free zones in the city.

Dr Rafeeq added that designated “social areas” including the artificial beach area in Male’, are also set to become no-smoking areas.

“Male’ City Council (MCC) has made a list of these [public] areas where smoking is forbidden and we are expecting the council to announce these areas. It is expected that island councils are to do the same outside of Male’.  If a member of the public sees someone smoking in a tobacco-free zone, there will be a contact number on the no-smoking notices that they can notify the police with,” Rafeeq said.

The CCHDC estimates that roughly 44 percent of the total population of the Maldives uses tobacco – mainly through smoking.  Despite the high number of smokers in the country, Dr Rafeeq claimed that the majority of comments received by the CCHDC from the public were in favour of the regulation.

“We understand there will be people who do not like the new rules and there has been some concern raised over its implementation, but most of the people we have spoken to, which includes many cafe owners, have told us they are very positive about the regulation,” she added.  “Now might be a good time for people to make ‘quitting smoking’ a new year’s resolution.”

According to the 2009 Maldives Demography and Health Survey (MDHS), 42 percent of people in the between the ages of 20-24 are smokers in the country.  The same figures indicate that 20 percent of Maldivians aged 15-19 years also smoke.

In order to provide smokers with advice on how to quite smoking, Dr Rafeeq added that the CCHDC will be printing and distributing booklets on the subject in the new year.

“Smoking regulations have successfully been implemented in countries all over the world. If it can work in countries like India, where there is a large and diverse population, it can definitely work here,” she added.

Effect on business

Under the new regulation, cafes and restaurants will be able to provide designated smoking areas within their premises upon application of a licence from the Ministry of Health.

Businesses wishing to apply for the licence will have to pay MVR 1000 (US$64) for the privilege. The type of smoking area permitted will depend on the establishment, according to the CCHDC.

“The regulation states that establishments defined as an ‘open space’ can have have a designated open air area for smoking, whereas businesses defined as a ‘closed space’ will need to designate a separate smoking room,” Dr Rafeeq said.  “According to the regulation, a closed area is defined as a space connected by at least two walls and a roof. Unfortunately this might mean that some “closed space” businesses may require some modifications to their premises that they will have to pay for.”

The regulation further states that if the owner of a premises does not put up a sign board to inform customers that smoking is disallowed, the Ministry of Health has the authority to fine the venue MVR 500 for a first warning.  Additional fines of MVR 5000 (US$3200) would then be charged by the ministry in case of any subsequent failures to display the required signs.

Should the owner of an establishment allow smoking in such places without authority they can be fined MVR 1000 (US$64), according to the regulation.

When asked of the potential negative impact the new regulation could have on independent businesses, Dr Rafeeq said that research had suggested that cafes and restaurants could experience an “initial decline” in business following the implementation of the new rules.

“There has been some concern raised from local cafe and restaurant owners, but we have carried out thorough research on the matter by looking at how similar smoking restrictions have affected businesses in other countries,” she said.  “Our research shows that while businesses may suffer slightly to begin with, eventually businesses will see the benefits regulation brings.”

Maldives National Chamber of Commerce and Industries (MNCCI) Vice President Ishmael Asif was not responding to calls from Minivan News at the time of press.

Public opinion

Ahead of the implementation of the new regulation, smokers and non-smokers interviewed by Minivan News expressed mixed views on the restrictions.

“Smoking is dangerous not just to yourself, but to everyone around you. I’m glad the government is finally taking the lead to make a place this small safer health-wise,” a non-smoking 31-year-old civil servant explained.

Meanwhile, a 19-year-old male living in Male’, who did not wish to be named, said it was his individual freedom to smoke wherever he liked and that the new regulation will “force” smokers to break the law.

“[The regulation] is a very bad thing. It’s our freedom to smoke anywhere we like, and it’s others freedom to stay away from the smoke if they are getting disturbed,” he added.

“Regulations could be made allowing people to smoke in the public and non-smokers can move away from the smoke.”

While not objecting to allowing smoking at specific premises, a 38 year-old female accountant from Male’ told how she believed larger public areas should become ‘tobacco-free zones’.

“To be honest, I don’t mind people smoking on streets or cafes, but it’s difficult when people smoke in crowds such as at gatherings or music shows of sports events,” she said.

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MVR 15.3 billion state budget might not last until end of next year: Finance Minister

Finance Minister Abdulla Jihad has claimed that the MVR 15.3 billion (US$992 million) state budget approved by parliament this week might not last until the end of 2013 – requiring supplementary finance for the state.

Parliament reduced Jihad’s proposed budget of MVR 16.9 billion (US$1 billion) by more than MVR 1 billion (US$64.8) before passing it on Thursday (December 27).

Jihad told local media today that a supplementary budget may have to be implemented at some point next year should the funds allocated by parliament not be enough to cover expenses.

Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Mausoom today told Minivan News that concerns expressed by Jihad concerning the budget were “reasonable” given that the Finance Minister had originally requested a larger figure to see out state spending for the year.

“For the government to function properly I would not be surprised if they need the supplementary budget to be introduced. If it is, I should imagine it will be in the last quarter of 2013, after the election,” said Mausoom.

Earlier this month, Parliament’s Budget Review Committee had proposed MVR2.4billion (US$156 million) worth of cuts that some of its members claimed had been made had largely by reducing “unnecessary recurrent expenditures” within the budget.

However, the budget was eventually passed with MVR 1 billion (US$64.8) in cuts by 41 votes in favour, 28 against and no abstentions. The opposition Maldivian Democratic Party (MDP) MPs voted against the budget.

Jihad today told Sun Online that with services being provided by the government having doubled, it would become more difficult for the government to manage its budget.

“Because the budget is reduced, it will become difficult to manage expenses at a certain point. We think that a supplementary budget has to be introduced,” he was quoted as saying.

Due to the amendments in the budget made by the parliament, Jihad said the state had been forced to reduce spending. According to the Finance Minister, talks have already taken place with various offices to reduce their budgets.

“We don’t have any other choice. Due to the amendments brought into areas that were planned for further revenue generation, we have to reduce the expenses,” Jihad told Sun Online.

Jihad, State Finance Minister Abbas Adil Riza and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at time of press.

Budget amendments

The estimated MVR 15.3 million budget was passed by parliament with eight additional amendments at Thursday’s sitting.

Amendments voted through included the scrapping of plans to revise import duties on oil, fuel, diesel and staple foodstuffs, as well as any item with import duty presently at zero percent.

An amendment instructing the government to conduct performance audits of the Human Rights Commission and Police Integrity Commission and submit the findings to parliament was passed with 53 votes in favour, ten against and four abstentions.

Amendments proposed by MDP MP Ali Waheed to shift MVR 100 million (US$6.5 million) to be issued as fuel subsidies for fishermen and MVR 50 million (US$3.2 million) as agriculture subsidies from the Finance Ministry’s contingency budget was passed with 68 votes in favour.

A proposal by Dr Maussom to add MVR 10 million (US$648,508) to the budget to be provided as financial assistance to civil society organisations was passed with 57 votes in favour and three against.

Budget cuts

The Budget Review Committee approved cuts of MVR 1.6 billion (US$103.7 million) to Jihad’s proposed state budget of MVR 16.9 billion, however added MVR 389 million (US$25.2million) for infrastructure projects on islands.

On the measures proposed by the Finance Ministry to raise revenue, the committee approved revising import duties, raising the Tourism Goods and Service Tax (T-GST) from eight percent to 12 percent in July 2013, increasing airport service charge from US$18 to US$25, leasing 14 islands for resort development and imposing GST on telecom services.

The Finance Ministry had however proposed hiking T-GST from 8 to 15 percent in July 2013 and raising airport service charge or departure tax from US$18 to US$30.

Rightsizing the public sector to reduce deficit

Aidst proposals to balance state spending during 2013, recommendations to reduce the public sector wage were made by the Auditor General and submitted to parliament prior to the budget being passed.

Auditor General Niyaz Ibrahim observed that of the estimated MVR 12 billion (US$778 million) of recurrent expenditure, MVR 7 billion (US$453.9 million) would be spent on employees, including MVR 743 million (US$48 million) as pension payments.

Consequently, 59 percent of recurrent expenditure and 42 percent of the total budget would be spent on state employees.

“We note that the yearly increase in employees hired for state posts and jobs has been at a worrying level and that sound measures are needed,” the report (Dhivehi) stated. “It is unlikely that the budget deficit issue could be resolved without making big changes to the number of state employees as well as salaries and allowances to control state expenditure.”

Following the report, the The Budget Review Committee made cuts to overtime pay (50 percent), travel expenses (50 percent), purchases for office use (30 percent), office expenditure (35 percent), purchases for service provision (30 percent), training costs (30 percent), construction, maintenance and repair work (50 percent) and purchase of assets (35 percent).

The committee estimated that the cuts to recurrent expenditure would amount to MVR 1 billion (US$64.8 million) in savings.

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Nexbis to challenge termination of Border Control System project

Additional reporting by Ahmed Naish.

Nexbis has said it will challenge parliament’s decision instructing the government terminate a Border Control System (BCS) project signed under the previous administration.

The Malaysia-based IT group has said it will seek a court injunction preventing any attempts to cancel the agreement whilst court hearings over the contract were still ongoing.

Speaking to local media on Tuesday (December 25), Home Minister Dr Mohamed Jameel Ahmed claimed the government would respect parliament’s unanimous decision to halt the BCS project agreement with Nexbis.

Dr Jameel told local newspaper Haveeru that it was “difficult to come up with an exact figure at present” for the level of compensation the government would potentially have to pay Nexbis after prematurely terminating a contract with the company.

The home minister was not responding to Minivan News at the time of press.

Yesterday’s vote on the deal was taken after Parliament’s Finance Committee claimed there had been foul play in the agreement signed between Nexis and the Maldives immigration department.

Prior to the parliamentary vote, an official spokesperson for Nexbis told Minivan News on December 23 that the company would “challenge” any decision by the Majlis to halt the BCS contract while court hearings were continuing in the country.

“We are asking the Supreme Court to intervene with the decision as we have come to be aware that the contract cannot be legally terminated if there is an ongoing legal case. Presently we have legal cases in the Civil Court, the High Court and the Supreme Court,” the Nexbis source added.

Meanwhile, Director of the Department of Judicial Administration Ahmed Maajid today (December 26) confirmed that to his knowledge, Nexbis was currently involved in ongoing cases within the Maldives’ judicial system.

Maajid added that on a legal basis, the contract between Nexbis and the government could not be terminated until all proceedings involving the company were concluded.

“There is a provision in the Judicature Act under Law 22, 2010 that basically states no public body can terminate a contract with a company that is involved in judicial proceedings in the courts,” he said,

“The government has made their decision based on the the Majlis’ vote. But the legality of that decision can be challenged at the Civil Court if Nexbis submit a case. They have a constitutional right to do so.”

The MVR 500 million (US$39 million) BCS project moved ahead this year after a series of high-profile court battles and delays that led Nexbis to last year threaten legal action against the Maldivian government should it incur losses for the work already done on the project.

The Malaysia-based mobile security provider has come under scrutiny by political parties who claim that the project is detrimental to the state, while the Anti-Corruption Committee (ACC) has alleged corruption in the bidding process.

Nexbis has denied any allegations of wrong doing within its contract.

Unanimous vote

Amidst these concerns, parliament voted unanimously yesterday (December 25) to instruct the government to terminate the border control project agreement with Nexbis.

All 74 MPs in attendance voted in favour of a Finance Committee recommendation following a probe into the potential financial burden placed on the state as a result of the deal.

Presenting the Finance Committee report to the floor, Chair MP Ahmed Nazim explained that the “main problem” flagged by the ACC was that the tender had not been made in accordance with the documents by the National Planning Council authorising the project.

The documents were changed to favour the chosen party and facilitate the deal, Nazim said, which the ACC considered an act of corruption.

Regarding allegations of corruption within the contract, the Nexbis source told Minivan News that the company is “systematically denying” any allegations of corruption, adding that if there was any foul play within the contract “we were unaware of it”.

Nazim stressed that the Finance Committee inquiry focused on the financial burden on the state and had discovered that the government would have to pay US$166 million to Nexbis over the course of the agreement.

Conversely, he claimed that the Maldivian government would only earn US$8 million as royalties during the agreement period.

Nazim noted that the Finance Ministry informed the committee that it was yet to receive a copy of the agreement two years after it was signed.

The Finance Ministry has also not included any funds in either the 2012 or 2013 budgets to pay for the project.

Nazim also accused the then-attorney general of “negligence” in the deal as he had not provided an official legal opinion to the Immigration Department in writing.

Recommendations by the former attorney general to amend the agreement could not be found in the documentation, he added.

Nazim said the Finance Committee concluded therefore that the best course of action would be to terminate the Nexbis agreement and install a different border control system at the earliest date.

Following the Finance Committee decision, the budget review committee has included a recommendation compelling the government to terminate the Nexbis agreement.

The Finance Committee also recommended terminating the agreement over concerns it contained clauses to waive taxes to the company, Nazim said. He noted that imposing or waiving taxes was a prerogative of parliament under article 97(d) of the constitution.

During the ensuing debate, MPs from both the formerly ruling Maldivian Democratic Party (MDP) and government-aligned parties spoke in favour of terminating the agreement.

Along with the decision to terminate the Nexbis deal, the government of President Dr Mohamed Waheed Hasaan Manik late last month also opted to void an airport development agreement with India-based infrastructure group GMR.

The GMR contract, a 25-year agreement to develop and manage an entire new terminal at Ibrahim Nasir International Airport (INIA), was the single largest foreign investment project in the country’s history.

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Finance minister claims “cash flow” issues behind delay in clearing Male’ City Council utility debts

Finance Minister Abdulla Jihad has claimed that a delay in clearing debts owed to various utility providers by Male’ City Council (MCC) is the result of a “cash flow” issue facing his department.

On Saturday (December 22), the MCC revealed that it owed an outstanding electricity bill of MVR 3.9 million (US$ 254,569) to the State Electricity Company Limited (STELCO).

A further MVR 400,000 (US$ 26,109) is also owed by the MCC to telecommunication service provider Dhiraagu, who earlier this week disconnected all telephone and internet services in the council’s offices.

Finance Minister Jihad yesterday (December 24) blamed “cash flow” issues for his ministry’s failure to clear the MMC’s debts.

“We are in the process of relieving the funds, however we have had some cash flow issues and that is why there has been a delay in the clearing the MCC’s debt.

“We are working to clear the debt in the next couple of days,” Jihad told Minivan News.

Asked yesterday whether the government lacked the money to repay the bills, Jihad replied: “The government has to manage the cash flow, they make the payments. There is a cash flow issue.”

MCC Mayor ‘Maizan’ Ali Manik Manik previously claimed that the outstanding payment owed to STELCO by the MCC threatens to leave all council owned properties and utilities – including street lights – without power.

Speaking to Minivan News today (December 25) Manik said that he had personally told members of the Finance Ministry to make a “settlement” with all the utility companies that are currently owed money.

“I told the ministry that if they don’t have the cash flow to pay these debts, then they should speak to Dhiraagu and STELCO and make a settlement,” he said.

“Even if it means saying that they will be paid in a month’s time, even a year’s time, anything is better than the current situation. I have a feeling we are going to be in darkness after December 27.”

Mayor Manik has previously told Minivan News on December 22 that MMC had filed all necessary documents and paper work with the finance ministry in order for the outstanding bills to be paid.

He claimed that having spoken to Jihad about the issue at the time, the finance minister had assured him that both the STELCO and Dhiraagu bills would be paid by his ministry on December 23.

However, STELCO Media Co-ordinator Abdulla Nazir revealed that as of December 23, no money had been deposited by the finance ministry.

Dhiraagu disconnection

On Thursday (December 20), local media reported that Dhiraagu had disconnected all phone and internet services it provided to the MCC due to unpaid bills.

MCC member Ibrahim Shajau claimed that over MVR 400,000 (US$ 26,109) is owed by the council to Dhiraagu, alleging that the Finance Ministry had failed to release the funds.

“We have sent all relevant documents to Finance Ministry. It’s up to [them] to pay the money. Dhiraagu said that Finance Ministry had not paid the money,” he told Sun Online.

Dhiraagu Marketing and PR Ibrahim Imjad Jaleel told local media that the services were disconnected after advising the council on numerous occasions to pay their bills.

“We disconnected the services today after giving them time even today to pay the bills after the offices opened. We had to cut off our services after their failure to pay any amount after several days of discussions. We are trying with our customer even now, to find a way to resume the services,” he said.

STELCO debt

Meanwhile, STELCO Media Coordinator Abdulla Nazir revealed that MCC had a “long history” of outstanding payments, adding that the stated figure of MVR 3.9 million was only part of the overall debt owed to the company.

“STELCO has received no money so far. There are many months of outstanding debt from MCC, more than the MVR 3.9 million we have asked for,” Nazir said. “While we have received no statement or payment from the Finance Ministry, we have received a letter from MCC dated December 19. They said their bills have been sent to the Finance Ministry, and they have asked the ministry to settle the outstanding payments.”

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“No choice” but to wait, Maldivians facing overnight queue for India medical visas

Maldivian citizens queuing outside the Indian High Commission in Male’ to obtain visas to travel for medical treatment in India have allegedly been told they must now wait until December 26 before any further paperwork can be processed.

This morning (December 24) individuals waiting outside the Indian High Commission building told Minivan News that they have “no choice” but continue to wait, after it was allegedly announced that no visas will be processed on December 25.

Earlier this month, the High Commission of India forewarned Maldivians that it would now take one week to process visas required to travel to India.

At 2:00am this morning (December 24),  Minivan News witnessed at least 30 Maldivians queued in the rain, waiting for the Indian High Commission building to open.

Male’ inhabitant Ihusaan Jaufar claimed he had been waiting for three days to pick up a medical visa so that an ill family member could receive treatment in India.

“We have been doing shifts so that we do not lose our place in the queue. Before we would make trips to India maybe ten times per year and it was easy, now it has become very difficult.

“They allow 53 passports to be processed each day, but some people are carrying four passports including their own, so rather than 53 people who have queued getting their visas, instead maybe only 10 or 12 are receiving their visas,” Jaufar said.

Maldivian nationals do not require a visa to enter India and stay for 90 days, however they are prohibited from revisiting the country within two months. Patients who need to return to India for health reasons then have to apply for a medical visa.

The Ministry of Foreign Affairs has advised Maldivians to try to obtain the relevant visas prior to their travel, after the Indian High Commission announced that visa-free travel facilities to India are valid for tourism purposes only.

Travel for medical, business or official reasons will require a relevant visa for those purposes, the Indian High Commission has stated.

At 10:30am today (December 24) the 30-strong queue still remained, however some within the queue had alleged they has been told by Indian High Commissioner D M Mulay that they would now have to wait until December 26 for their visas.  The high commission has denied any such claims were made.

Ahmed Didi, a Maldivian waiting in the queue today spoke of his frustration and concern for his family currently living in India.

“I have been waiting to get home for over a week and i’ve been in this queue for the last three days. I’m going to have to ask my friends if we can do shifts in queue so that we do not lose our place. It’s [the queue] going to be huge after 48 hours.

“It is frustrating as I need to get home. My wife is currently looking after my 74-year-old father who is paralysed and my son. She is struggling to cope without me there to help,” Didi said.

According to Didi, the High Commission is issuing tokens to people who can then have their visas processed. Didi claimed that for the last three days only 40 tokens have been issued per day, however this has now been increased to 53.

“The problem is that some people in the queue are holding multiple passports for friends and family. Fortunately the [Indian High] Commission has limited the number of passports per person to just three,” he said.

Didi claimed that earlier in the morning, Mulay had announced to the queue that he was working to resolve the issue and that it came down to a lack of cooperation from the Maldives government.

A source from within the Indian High Commission denied these claims, adding that “no such comment had been made”.

Foreign Ministry Spokesman Ibrahim Muaz Ali also denied allegations of conflict between the government and the Indian High Commission, stating that the foreign ministry was doing its best to help those waiting for a visa.

“There is no lack of cooperation between the Indian High Commission and the Foreign Ministry, we are having regular meetings to discuss the [visa] issue.

“We have a separate desk within the Indian High Commission building that is helping to deal with Maldivian citizens looking to obtain visas,” Muaz said. “We are trying to prioritise based on medical needs. For example, yesterday we had a man come through who needed urgent treatment for cancer and we were able to speak with the Commission to have his medical visa processed quicker.”

Despite the claims, Former President Mohamed Nasheed has alleged in local media today that the current approvals required for medical travel to India were a direct response to the Maldives government’s decision to terminate a sovereign agreement to develop Irahim Nasir International Airport (INIA).

India-based infrastructure group GMR had signed an agreement with Nasheed’s government back in 2010 to develop and manage INIA over a 25-year period. The government of Dr Mohamed Waheed Hassan Manik opted late last month to declare the agreement void and gave the developer seven days to leave the country.

Visitor numbers

Times of India (TOI) reported that a total of 54,956 Maldivians visited the country in 2008, 55,159 in 2009 and 58,152 in 2010.

S Premkumar, Chief Exective Officer of  (CEO) Apollo Hospitals – a major hospital chain based in Chennai –  was quoted in the TOI as claiming that  some 300 Maldivian nationals were treated in Chennai hospitals each year. “They usually come for neurosurgery, and orthopaedic, cardiology and robotic gyneacology procedures,” he told the publication.

On December 20, First Secretary of the High Comission S C Agarwal, told local media that the change in procedure was not new, adding that there had only been a change in the “interpretation” of the agreement signed between India and Maldives in 1979.

“The agreement that grants 90 days free visa for Indians and Maldivians came into effect in 1979. But we have been really flexible in the interpretation of the agreement.

“We have not been questioning the purpose of travel of Maldivians to India. But unfortunately the reverse is not true. The Maldivian authorities have enforced the agreement in the strictest of terms. Nearly 50 Indians are denied entry, detained and deported every year,” Agarwal was quoted as saying in newspaper Haveeru.

Agarwal told local media that India has now “agreed” with the interpretation of the 1979 agreement in accordance to that of the Maldives government.

“We have been flexible in implementing the agreement since 1979. Such flexibility has not been reciprocated by Maldives,” he added.

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Chinese companies have discussed Maldives’ satellite slot: former communications minister

Defence Minister Mohamed Nazim met with two Chinese companies interested in launching and operating a satellite designated for the Maldives during a recent visit to China, former Minister of Communication Dr Ahmed Shamheed has claimed.

Shamheed told Minivan News today that the Maldives government was potentially entitled to an “orbital slot” for a satellite from the International Telecommunication Union (ITU). However, because the Maldives’ currently lacks the capabilities to launch and operate a satellite, the state would have to lease out the slot to an external party.

Earlier this month (December 12) the Communications Authority of Maldives (CAM) announced that it was looking to find a partner in order to form a venture for the operation of a satellite serving the Maldives.

The announcement was made at the same time that Defence Minister Colonel (Retired) Mohamed Nazim was on an official five-day visit to China, where he signed a military aid agreement with Chinese National Defence Minister General Liang Guanglie.

According to Shamheed, Defence Minister Mohamed Nazim has already been approached by various Chinese companies who have expressed interest in the satellite venture.

“At first, I had been involved in casual meetings with these companies, but now it seems to getting more serious. Nazim had even questioned as to why we have not yet signed an agreement with them,” Shamheed alleged.

Defence Minister Mohamed Nazim was not responding to calls from Minivan News at time of press.

Orbital slot

The former transport and communications minister said that in his view, the best option would be to lease the “orbital slot” only after the Maldives was officially awarded the space by the ITU.

“Operating a satellite is not an easy thing to do, and [the Maldives] does not have the facilities to do such a thing. The best plan would be to get the slot and then to sell it to whomever we wanted. I don’t understand why we have to agree to anything right now,” Shamheed said.

However, he warned selling the slot to a Chinese company before the ITU had awarded the space to the Maldives could result in “external” influences swaying the decision.

“If we sell the slot right now to a Chinese company there could be problems. We don’t know who influences the ITU or who could be involved behind the scenes, if we sell the slot now it might mean that our orbital slot is revoked,” added Shamheed.

Deputy Transport Minister Ishaq Ahmed told local newspaper Haveeru on Friday (December 21) that two Chinese companies have expressed interest in launching and operating a satellite designated for the Maldives.

However, he added that the government did not wish to sell the slots specifically to Chinese companies , adding there had been no official transactions made so far.

An expert committee will evaluate proposals and select a party, he explained.

“We have not decided to give it to a particular country. I’ve learned that it is a Chinese company does this for [Sri] Lanka now. Therefore it is likely that another Chinese company could be interested in the Maldives. All countries would have an opportunity in this. They should come with the best proposal,” he was quoted as saying.

Ishaq denied the Transport Ministry was planning to sell the slot to a Chinese enterprise.

He explained that obtaining the slot would be up to the chosen party and that the ITU informed the ministry that the process could take two years.

The request for proposal (RFP) was announced with a view to commencing the project soon, he added.

CAM previously announced that the satellite project will be carried out in three phases whereby an orbital slot is to be secured, before manufacturing and launching the satellite itself. The final stage will involve the commercial operation of the satellite.

Local media reported that the CAM had stated the importance of a satellite was increasing “by the day”, following a surge in broadcasters within the country.

The authority stated that spending money on foreign satellite service providers is a financial burden and that its excessive capacity can be utilised commercially to generate money for the country.

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Male’ could face street light black out over unpaid electricity bill, city mayor claims

The city of Male’ could face its street lights being “switched off” should an outstanding MVR 3.9 million (US$ 254,569) electricity bill fail to be paid by December 27, Male’ City Council (MCC) Mayor ‘Maizan’ Ali Manik has said.

The outstanding payment owed to State Electricity Company Limited (STELCO) by the MCC threatens to leave all council owned properties and utilities –which includes street lights – without power, Manik today claimed (December 22).

Earlier this week, unpaid bills to telecommunication service provider Dhiraagu resulted in the MMC having its telephone and internet services disconnected by the company.

STELCO have since denied claims that they will cut the MCC’s power, but has stated that the company “cannot say what will happen if the bill remains unpaid”.

Speaking to Minivan News, Mayor Manik blamed the Finance Ministry for the lack of payment, claiming that the government body had failed to release the funds despite the MCC completing all relevant documents needed to do so.

“I sent a letter to the [Finance] Ministry last week following one the MCC received from STELCO saying they will cut our electricity if the bill is not paid.

“When I spoke with [Minister of Finance and Treasury] Abdulla Jihad yesterday, he gave me no reason as to why the payments had been delayed. He must have known about the bills because of all the letters we have sent him.

“He told me that both the STELCO and Dhiraagu bills will be paid tomorrow (December 23),” claimed Manik.

Finance Minister Abdulla Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at time of press.

MCC “long history” of debt

STELCO Media Co-ordinator Abdulla Nazir meanwhile said that MCC had a “long history” of outstanding payments, adding that the stated figure of MVR 3.9 million was only part of the overall debt owed to the company.

“STELCO has received no money so far. There are many months of outstanding debt from MCC, more than the MVR 3.9 million we have asked for.

“While we have received no statement or payment from the Finance Ministry, we have received a letter from MCC dated December 19. They said their bills have been sent to the Finance Ministry, and they have asked the ministry to settle the outstanding payments,” Nazir told Minivan News.

However, Nazir denied Manik’s claims that STELCO had warned the MCC it faced having electricity disconnected. However, in accordance to STELCO’s regulations, Nazir stated that any public or private organisation failing to pay its electricity bills was at risks of having its power cut off.

Dhiraagu debt

On Thursday (December 20), local media reported that Dhiraagu had disconnected all phone and internet services it provided to the MCC due to unpaid bills.

MCC member Ibrahim Shajau claimed that over MVR 400,000 (US$ 26,109) is owed by the council to Dhiraagu, alleging that the Finance Ministry had failed to release the funds.

“We have sent all relevant documents to Finance Ministry. It’s up to [them] to pay the money. Dhiraagu said that Finance Ministry had not paid the money,” he told Sun Online.

Dhiraagu Marketing and PR Ibrahim Imjad Jaleel told local media that the services were disconnected after advising the council on numerous occasions to pay their bills.

“We disconnected the services today after giving them time even today to pay the bills after the offices opened.  We had to cut off our services after their failure to pay any amount after several days of discussions. We are trying with our customer even now, to find a way to resume the services,” he said.

Earlier in October, STELCO disconnected the power supply to state broadcasters Television Maldives (TVM), Voice of Maldives (VOM) as well Male’ City Council over a failure to pay overdue bills.

MCC member Ibrahim Shujau told newspaper Haveeru back in October that the delay in settling the bill was again down to the Finance Minsitry.

STELCO permit dispute

STELCO and MCC clashed earlier this month when the electricity company filed a case with the Civil Court requesting it invalidate MCC’s decision to disallow issuing permits to the company.

In a statement released Wednesday (December 12), the state electricity provider stated that the lawsuit was filed because the MCC had blocked the company from providing some of its services, resulting in disruption for customers in the capital.

The disallowed permits are needed to provide electrical services to properties around the capital.

STELCO has argued that the MCC’s decision lacked any legal grounds and therefore requested the court to decide if the decision was valid or not. It also requested the court invalidate a letter sent to STELCO by the MCC informing it of the decision, so that it could resume its services.

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