Business & Tourism – Page 40 – Minivan News

Maldives’ currency reserves “dwindling to critical levels”: World Bank

Currency reserves in the Maldives have “dwindled to critical levels”, according to the World Bank’s bi-annual South Asia Economic Focus report.

The report highlighted that growth in South Asian countries – including the Maldives – is still below pre-economic crisis levels.

“Much of the recent slowdown in economic growth can be attributed to stagnating investment,” the World Bank stated in its findings. “Economic recovery could falter in the absence of a stronger investment climate.”

South Asian countries are “now more vulnerable” due to widening current account balances, slowing foreign direct investment, and persistently high inflation that has “limited the ability” of central banks to counter economic downturn via monetary policies.

Rising imports, and the Maldives dependency on those imports, also leaves the country more vulnerable to commodity price increases, argued the findings.

“Countries will need to improve their business climate to attract the private sector investment needed for these new entrants to find productive jobs, thereby reducing poverty and boosting shared prosperity,” said Martin Rama, Chief Economist for the South Asia Region at the World Bank.

Improving tax revenue collection and curbing energy subsidies are required for further progress to be achieved.

Maldives Monetary Authority (MMA) statistics released in January 2013 indicated that gross state reserves have shrunk to MVR 4.9 billion (US$317.7 million).

This is essentially only enough for one month of imports.

Between November and December 2012, reserves dropped 14 percent, or MVR 849.7 million (US$55 million). In comparison with the start of 2012 – when the State reserve was MVR 5.3 billion (US$343 million) – January 2013 had seen an eight percent decline.

MMA statistics explained that the reason for the downward slide at the end of 2012 was due to depletion of state funds in local and foreign banks, according to local media.

The ballooning 2012 budget deficit alerted the International Monetary Fund (IMF), which previously expressed concern that without raising revenue and cutting expenditures, the country risked exhausting its international reserves and sparking an economic crisis.

Finance Minister Abdulla Jihad told MPs in December 2012 that additional revenue was needed to finance the fiscal deficit and rein in soaring public debt, which was projected to reach MVR 31 billion (US$2 billion) or 82 percent of GDP by the end of 2013.

The governor of the country’s central bank said back in May 2012 that the Maldives was facing its worst economic crisis in recent memory.

Fiscal responsibility

Despite parliament recently rejecting an increased airport service charge, legislation on fiscal responsibility submitted in 2011 by former President Mohamed Nasheed’s government was passed with 42 votes in favour and 10 against at a sitting of parliament on April 15.

If the bill is ratified, the government would be prohibited by law from obtaining loans after January 1, 2016, in order to finance recurrent expenditure or loan repayments.

The bill also sets limits on government spending and public debt based on the proportion of GDP, mandating the state to not allow public debt to exceed 60 percent of GDP.

Borrowing from the central bank or MMA should not exceed seven percent of the projected revenue for the year, while such loans would have to be paid back in a six-month period under additional finance conditions outlined under the recently approved legislation.

Moreover, a statement outlining the government’s mid-term fiscal policy must be submitted annually to parliament at the end of the financial year in July.

The current government has pointed the finger at the previous administration for the current budgetary issues, whilst simultaneously implementing a series of policies which have added to its financial obligations.

These deficit expanding policies have included promoting 1000 police officers, the hiring of 110 new police officers, and a reinterpretation of the legal provision for the payment of resort island lease extensions which had cost the government MVR92.4million (US$6million) already in comparison with the same point last year.

The government also chose to reintroduce MVR100 million (US$6.5 million) fishing subsidies and to reimburse MVR443.7 million (US$28.8 million) in civil servant salaries, reversing measures implemented during the previous government’s own austerity drive.

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Finance Minister confident MPs will back wider revenue measures

Finance Minister Abdulla Jihad has expressed confidence that MPs will approve a raft of measures to raise state revenue, even after they narrowly rejected government proposals to increase an airport service charge yesterday (April 16).

Hiking the airport service charge from US$18 to US$30 for international passengers was among a raft of measures proposed by the Finance Ministry within the estimated 2013 budget in order to raise MVR 1.8 billion (US$116 million) in new income.

The finance minister told MPs in December 2012 that additional revenue was needed to finance the fiscal deficit and rein in soaring public debt, which was projected to reach MVR 31 billion (US$2 billion) or 82 percent of GDP by the end of 2013.

After yesterday’s rejection of the service charge increase, Jihad told Minivan News that he was of the belief parliamentarians would back other proposed measures that he has previously claimed will be vital in balancing the state budget.

These measures include hiking Tourism Goods and Services Tax (T-GST) to 15 percent, introducing GST for telecom services, and “selectively” reversing import duty reductions.

Despite expressing optimism that these reforms would be passed, Jihad stressed that he had personally received no feedback from MPs or political representatives regarding the exact level of support for such measures at time of press.

During the parliamentary debate on increasing the airport service charge this week, MPs of the opposition Maldivian Democratic Party (MDP) and government-aligned Progressive Party of Maldives (PPM) both opposed the proposed hike.

MPs of both the majority and minority parties alleged that President Dr Mohamed Waheed planned to use an expected MVR185 million (US$12 million) from raising the departure tax to finance his presidential campaign before the increase was rejected.

“Significant” impact

Jihad today expressed concern that the Majlis’ rejection of hiking the airport service charge would significantly impact state revenues.

Speaking to newspaper Haveeru, Jihad said that budget forecasts has been designed with the increased airport charge in mind, with yesterday’s vote meaning a “significant amount” of funds would be lost from state revenue.

“If the amendments for the import duty are not passed, we will find it extremely difficult to manage the budgets of institutions. So it’s critical that the parliament expedites work on the bills and support them,” he was quoted as telling local newspaper Haveeru.

Jihad later told Minivan News that longer-term tax measures were already being considered as an alternative to cover any shortfall as a result of the airport charge not being increased.

He also did not rule out the possibility of resubmitting a proposal to increase the airport service charge at a later date – although no such decision had been made as yet.

The Parliamentary Group leaders of the country’s largest two parties could not be reached for comment today on the finance minister’s claims.

Maldivian Democratic Party (MDP) Parliament Group Leader Ibrahim Mohamed Solih (Ibu Solih) had his phone switched when contacted by Minivan News. Solih’s PPM counterpart, presidential candidate Abdulla Yameen, was not responding to calls at time of press.

MDP MP and Spokesperson Hamid Abdul Ghafoor claimed the party would look to review all measures proposed in parliament to try and increase revenue on a “case-by-case” basis.

However, he claimed that the opposition party remained “skeptical” about any financial measures being proposed by the administration of President Waheed, accusing the government of pushing the country towards bankruptcy.

Fiscal responsibility

Despite rejecting an increased airport service charge, legislation on fiscal responsibility submitted in 2011 by the previous government was passed with 42 votes in favour and 10 against at a sitting of parliament on Monday (April 15).

If the bill is ratified, the government would be prohibited by law from obtaining loans after January 1, 2016 to finance recurrent expenditure or loan repayment.

The bill also sets limits on government spending and public debt based on proportion of GDP, mandating the government to not allow public debt to exceed 60 percent of GDP.

Borrowing from the central bank or Maldives Monetary Authority (MMA) should not exceed seven percent of the projected revenue for the year, while such loans would have to be paid back in a six-month period.

Moreover, a statement outlining the government’s mid-term fiscal policy must be submitted annually to parliament at the end of the financial year in July.

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GMR-Maldives arbitration to begin mid 2014: Attorney General’s Office

The Attorney General’s (AG’s) Office has confirmed that an arbitration case concerning the government’s decision to void its concession agreement with Indian Infrastructure giant GMR will begin by the middle of next year.

Deputy Solicitor General Ahmed Usham today told Minivan News that both parties had agreed to commence proceedings by the middle of 2014 and were now waiting on arbitrators to confirm the exact schedule for when their respective cases would be presented.

The initial agreement was reached after representatives for the state and GMR met in London, England on April 10 for a preliminary procedural meeting. A timetable was agreed upon for holding hearings over the cancellation of a US$511 million contract to develop and manage a new terminal at Ibrahim Nasir International Airport (INIA).

Usham said that the hearing in London last week had been focused solely on establishing a timetable for when arbitration will begin proper in Singapore.

“It is quite straight forward in these procedural hearings. We discussed the schedule for hearings, such as when cases would be presented, as well as when parties can reply and make counter claims,” he said. “These arbitrators are quite busy, so it can be difficult to manage time in their schedules.”

The AG’s Office has previously claimed that the Maldives will be represented by Singapore National University Professor M Sonaraja, while former Chief Justice of the UK, Lord Nicholas Addison Phillips, will represent GMR.

The arbitrator mutually agreed by both GMR and the government is retired senior UK Judge, Lord Leonard Hubert Hoffman.

Concession agreement

In 2010, GMR-Malaysia Airports Holdings Berhad (MAHB) consortium, the government of former President Mohamed Nasheed and Maldives Airport Company Limited (MACL) entered into a 25-year concession agreement worth US$511 million (MVR 7.787 billion). The agreement charged the GMR-MAHB Consortium with the management and upgrading of INIA within the 25 year contract period.

However, in November 2012, the government of President Dr Mohamed Waheed Hassan Manik declared the developer’s concession agreement void and ordered it to leave the country within seven days.

A last minute injunction from the Singapore High Court during arbitration proceedings was overturned on December 6, after Singapore’s Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

GMR is seeking US$800 million in compensation for the sudden termination, while the Maldivian government is contending that it owes nothing as the contract was void ab initio – meaning the contract was invalid from the outset.

Should the argument of void ab initio fail, the government has claimed the second legal grounds on which it would argue in favour of termination of the contract would be that the contract had been ‘frustrated’.

‘Frustration of a contract’ is an English contract law doctrine which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party’s principle purpose for entering into the contract.

“The government has given a seven day notice to GMR to leave the airport. The agreement states that GMR should be given a 30 day notice but the government believes that since the contract is void, it need not be followed,” said then Attorney General Azima Shukoor.

The awarding of the bid in 2010 was overseen by the World Bank’s International Finance Corporation (IFC), which the Waheed government has accused of being “negligent” and “irresponsible”.

Should the matter be decided in the government’s favour, uncertainty remains as to the potential impact on foreign investor sentiment given the prospect of sudden asset seizure under the ‘void ab initio’ precedent.

If decided in GMR’s favour, the outcome of the case could potentially see the Maldives facing sovereign bankruptcy, with millions of dollars in additional debt emptying the state’s already dwindling reserves, crippling the country’s ability to obtain further credit, and potentially sparking an economic or currency crisis.

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Female participants in Maldives tourism training declining: Four Seasons Hotels

The Four Seasons Hotels group has encouraged the government to promote technical and vocational training “much more aggressively”, while also expressing concern at declining female participation over the last decade in its apprenticeship program.

Four Seasons has graduated 288 apprenticeship students in the Maldives over the last 12 years, with 47 youths completing the latest program in 2013. However, only one female graduated from the scheme today during a special ceremony held in the capital Male’, while two women are enrolled in the 2014 program.

Four Seasons Resorts Maldives Regional Vice President and General Manager Armando Kraenzlin explained to Minivan News today (April 13) that the number of female apprenticeship program participants has been declining over the last 10 years.

“We never had many participants – 5 to 7 per batch – but it used to be easier [to recruit women] about ten years ago. Unfortunately, numbers have dropped,” he said.

Kraenzlin said he believed the declining number of women in the training program could be the result of more jobs being available outside of the tourism sector, or parents hesitating to let their daughters work at resorts.

“We are talking to government ministries and the press to promote idea of ladies working,” he added.

Also present at today’s ceremony, Education Minister Dr Asim Ahmed told Minivan News that he believed female participation in the tourism sector and Four Seasons apprenticeship program was increasing.

“Last year’s program had one woman, whereas two are enrolled in the 2014 batch. This is gradual improvement, although much less than we would like,” he said.

The small, insular Maldivian island environment instills very close family ties, which makes it difficult for parents to allow their children to leave and “stay long periods in a hotel”, according to Ahmed.

“The culture here is for children to grow up and grow old in same house,” he claimed.

“In the Maldives, you go to work [at a resort] and live there. It’s a very difficult thing to get your head around.”

Ahmed explained the nationwide need for women and parents to be more aware about the conditions of female employees working at resorts, particularly in terms of accommodation arrangements.

“It is important parents buy into this and believe resort work is beneficial and reliable [for their daughters]. The other challenge is we have to provide child care and other facilities that will release the women to go and work,” he added.

Tourism Minister Ahmed Adheeb told Minivan News that he believed women were not participating in the industry because families were adhering to the “past culture” of keeping children at home, in addition to being concerned about where their children would be living.

“Females are leaders in the houses. The men go out to work,” said Adheeb.

“Kids grow up and take care of their parents. In many cases, when boys get married they go to the girl’s house to live, because parents like to keep their daughters with them.

“This is why especially parents don’t want their daughters to go and work,” Adheeb added.

“Radical change”

Earlier this year, Maldivian Democratic Party (MDP) MP and Spokesperson Hamid Abdul Ghafoor told Minivan News that he believed a “radical change to the tourism approach” was needed in the country.

“Resorts must have close-by islands with flats so employees can go home to their families [after completing their shifts],” Hamid said.

Additionally, he believed the response rate for tourism training programs was decreasing in the country because Maldivian parents were discouraging children from participating due to “religious xenophobia”.

Hamid also accused the religious conservative Adhaalath Party (AP) of propagating the view that “anyone who is not a Muslim is an enemy”.

“I’ll probably be the next Dr Afrasheem Ali for saying this, but maintaining this hate of the ‘other’ is very dangerous and not discussed openly. This confusion has to be sorted. It’s a race against time and ideas,” he stated.

Adhaalath Party President Sheikh Imran Adbulla was not responding to calls at time of press.

Public vs private programs

During the graduation ceremony for this year’s apprentice trainees held at Mandhu College in Male’ today, Kraenzlin praised the skills of the latest batch of participants, emphasizing that “the Maldivian work ethic is among the highest I’ve observed in my career”.

“It is very exciting to see what a well spent year can do in the life of a young person,” he added.

“Training young people requires commitment and resources. Resorts taking in the minimum number of apprentices a year and certifying them successfully should be supported, recognized and incentivised,” Kraenzlin said.

“We encourage govt to promote Technical and Vocational Education Training (TVET) performance objectives much more aggressively. It’s a great system. In this way hundreds of vocational training positions can be created. We think it’s not that difficult.”

Tourism Minister Adheeb and Education Minister Ahmed also both praised the apprenticeship program for its development of young people in the Maldives.

“This corporate social responsibility effort takes a big burden from the government to the private sector,” stated Adheeb, during his commencement speech.

“All other resorts and general managers should follow the example of Armando [Kraenzlin] and the Four Seasons,” he added.

Minister Ahmed echoed these sentiments stating, “this is an important program for the rest of the tourism industry to emulate”.

Additionally, both ministers mentioned the STEP program, a training and education initiative launched this January for ‘O’ level graduates as part of a collaborative endeavor between the Education Ministry, Tourism Ministry, and Ministry of Human Resources Youth and Sport. Some 15 partner resorts are also included in the scheme, according to the Education Ministry.

The year long Four Seasons Apprenticeship program was recognized as the Maldives’ first government accredited TVET certified apprenticeship scheme in 2010. Graduates are able to earn TVET, PADI divemaster, or Ministry of Transportation boat driving license certifications, the hospitality company claimed.

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New Indian High Commissioner emphasises “unshakable” relationship with the Maldives

The new Indian High Commissioner to the Maldives Rajeev Shahare has emphasised the “unshakable” long-standing relationship between between both countries during a meeting with local media yesterday (April 10).

The new commissioner, who speaks fluent Arabic, previously served in Saudi Arabia, Bahrain, Egypt, Yemen, Geneva, Mauritius, as well as held the position of Joint Secretary in the Indian Ministry of External Affairs’, West Asia North Africa division.

Shahare presented his credentials to President Mohamed Waheed Hassan Manik yesterday morning, before later discussing his initial observations on the country with local media.

“It is a great honour and privilege to represent the government of India in a country such as the Maldives. With its azure blue and turquoise water, this is a phenomenal God-gifted country,” he stated during yesterday’s media event.

“During my tenure, I will endeavor to further strengthen the relationship between India and the Maldives, which is already very strong with an unshakable foundation.”

“Highs and lows”

Shahare also stressed there had been no change in the relationship between the Maldives and India, despite media reports of increased tension between both nations in recent months.

“In any relationship there are highs and lows, but the relationship carries on its course normally,” he said.

“Engagement between the Maldives and India has been constant. We are pretty much on course.”

Shahare emphasised that the Maldives held a “special place in the hearts of Indians” given the deep historical ties, common language and ethnic background the countries share.

“India is home for many Maldivians, we share a strong ethnic affinity,” he said.

He claimed that India would continue to support the Maldives and provide for the country’s needs when requested.

“India has always been there for the Maldives. It is in a state of readiness to provide whatever the Maldives requires,” Shahare stated.

Shahare also thanked the Maldivian government for arranging the ceremony “in record time”, praising local authorities for their “magnanimity” in allowing him to meet senior government officials prior to presenting his credentials to the president.

Shahare has replaced former Indian High Commissioner D M Mulay, who left the Maldives last month to take the position as India’s Consul in New York.

Earlier this week, Mulay told the Times of India publication: “there is no expert on the Maldives in India and awareness regarding the country and its geopolitical situation is very low.”

He also emphasised the importance of understanding Maldivian political, economic and social changes which “may have a major impact on India”.

Referring to the large number of Chinese tourists outstripping Indian visits to the Maldives, Mulay stressed that “One must be aware about the clout of a country from which there is such a big tourist inflow”.

Mulay also discussed the “commensurate increase in the points of connectivity between the two countries”, adding that Indian investments in the Maldives are increasing.

Diplomatic strain

The Maldives’ relationship with India has appeared strained since the Waheed government’s decision last November to evict Indian infrastructure giant GMR from the country with seven days notice.

The US$511 concession agreement to develop Ibrahim Nasir International Airport was declared ‘void from the start’.

The government’s sudden eviction of the Indian investor did not appear on a list of 11 grievances handed to all senior Maldivian reporters by the Indian High Commission this January.

The list of Consular issues affecting the India-Maldives relationship included a number of concerns: discrimination against Indian expatriates, the keeping of passports of Indian nationals by employers, exploitation of Indian workers and repatriation of mortal remains. Threats towards the country’s diplomats, a disparity in visa charges between the two countries and the repatriation of salaries were also raised as issues.

The list’s release was followed by the Indian High Commission issuing a statement in early February slamming local media in the Maldives for “misrepresentation and twisting of issues”.

“The High Commission has noted a recent trend in a section of local media to publish negative, unsubstantiated reports, while blacking out objective and positive news on Indian issues,” the Commission said at the time.

Shortly thereafter, political parties supporting the current government of President Mohamed Waheed Hassan criticised the Indian High Commission for allowing former President Mohamed Nasheed to seek refuge inside its protected diplomatic territory for 11 days.

The Adhaalath Party (AP) later condemned the Indian High Commission and the Indian government “for assisting a criminal fleeing from trial”.

The AP was also a vocal opponent of GMR and the concession agreement signed by the previous government to develop Ibrahim Nasir International Airport. During one of the party’s rallies last year, several senior government figures mocked and insulted the former Indian High Commissioner D M Mulay calling him a “traitor to the Maldives”.

Home Minister Mohamed Jameel Ahmed also expressed his disappointment over the Indian government’s decision to provide refuge to Nasheed in the Indian High Commission. He said that attempts by any country to prevent a person from facing charges pressed by an independent Prosecutor General (PG), could be described as interfering domestic matters of a sovereign state, local media reported.

Following Nasheed’s exit from the High Commission and subsequent arrest on March 5, Indian Prime Minister Manmohan Singh highlighted “free, fair and credible” elections as the “best course” for overcoming political uncertainty in the Maldives.

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Maldives records double-digit tourist arrival growth during first quarter of 2013

Tourism arrivals to the Maldives during the first quarter of 2013 were up 14.6 percent over the same period last year, as declining Western European demand failed to offset growing interest in the destination from Asia and Eastern Europe.

According to official statistics, 293,112 tourists arrived in the country between January to March 2013. During March alone, 99,498 visitors were recorded in total – an increase of 30.1 percent on a year-on-year basis.

Over the last month, the tourism industry has faced several potential boycotts as a result of negative headlines, such as the controversial flogging sentence handed to a 15 year-old rape victim who admitted to having consensual sex with an unnamed man during a police investigation.

So far over two million people have signed an online petition backing a selective tourism boycott by Avaaz.org. The petition aims to launch a media campaign targeting local resort businesses to pressure key decision makers to push for legal reforms in how sexual offences are dealt with.

Similar boycott action has been threatened in China, where concerns over alleged discrimination of Chinese nationals by one resort operator created negative publicity for the Maldives across local press and social media services.

However, tourism authorities told Minivan News late last month that after a“challenging” 2012 following political upheavals – a much more optimistic outlook was expected for the industry over the next two years. The country is presently well on target to meet a one million visitor target that it failed to reach by the end of 2012.

Regional visitors

During the last three months, China has continued to remain the key driver behind growth in tourism arrivals. Some 70,570 arrivals were recorded for the first quarter of 2013, an increase of 51.2 percent over the same period last year. China accounted for 24.1 percent of all tourist arrivals to the Maldives between January and March, remaining the largest national market in terms of arrivals by over ten percentage points.

Total tourist demand from the Asia Pacific region was up for the quarter by 41.6 percent, amounting to 109,233 visitors, according to the statistics.

Meanwhile, European visitor numbers were up 0.3 percent over the same period last year, as demand from Central and Eastern Europe during the quarter rose by 24.2 percent – amounting to 39,273 people.

Russia remained the key market in the region, amounting for 8.3 percent of all arrivals to the Maldives over the first three months of the year. Visitor numbers from the country between January and March reached 24,255 people – up 21.8 percent over the same time last year.

In Western Europe, tourist demand fell 5.5 percent for the quarter, amounting to 69,747 visitors. This region still represented a 23.8 percent share of total arrivals to the Maldives for the first three months of the year.

During the same quarter, visitors from key markets including Germany and France fell by 2.6 percent and 11.3 percent respectively.

Elsewhere in Europe, arrivals from the United Kingdom and Italy – key traditional markets for the Maldives – were also down. Visitors from the UK for the first three months of the year fell by 7.6 percent to 22,550. Italy posted a 13.7 percent decline for the quarter – amounting to 23,247 guests.

In Africa, 1,588 people visited the Maldives during the quarter, up by 28.9 percent over the same period last year.

Across the Americas, demand rose by 31.8 percent for the first three months of the year, amounting to 8,006 people. Between January and March, 2013, Middle Eastern arrivals increased by 53.4 percent over the same period last year, with 6,665 visitors.

Optimism

Ahead of the release of the March 2013 statistics, Deputy Tourism Minister Mohamed Maleeh Jamal told Minivan News last month that the outlook for the year ahead was much more optimistic than in 2012. He pointed to protests in Male’ during the build up and aftermath of last year’s controversial transfer of power as a key difficulty faced by the industry last year.

With the bulk of protests following the change in government last year having been concentrated in the capital, Maleeh said that “false information” indicating that tourists staying at the country’s isolated island resorts would be affected by protests had since been dispelled.

However, in light of political uncertainty in 2012, the incoming government of President Dr Mohamed Waheed Hassan had sought to utilise public relations groups and advertising to try and offset the perceived impact of negative news headlines following the transfer of power.

This focus has included agreeing a US$250,000 (MVR 3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services, as well as signing a £93,000 per month (US$150,000) contract with public relations group Ruder Finn to try and improve the country’s image internationally.

Despite some challenges posed by a reduced state budget for marketing this year, Maleeh said authorities were continuing to press for private funding to help with mainstream ad pushes on services like CNN and the BBC.

“We hope to have an announcement by the middle of the year,” he said.

Maleeh added that between April to August this year, a number of foreign journalists from all over the world would be invited to take part in ‘familiarisation trips’, which were claimed to have proved “very effective” the previous year.

Efforts are also expected to be undertaken in china to provide promotional focuses in mainstream media, such as state broadcasters state broadcasters, to promote the destination with local assistance.

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“Anti-semitism, racism, xenophobia and religious intolerance” deeply entrenched in Maldivian political discourse: Dr Shaheed

Anti-semitism, racism, xenophobia and religious intolerance “are deeply entrenched” in political parties currently opposed to the Maldivian Democratic Party (MDP), former Foreign Minister in both Nasheed and Gayoom’s government, Dr Ahmed Shaheed, has said.

Dr Shaheed’s comments follow reports in local media summarising US Embassy cables first published by Wikileaks in 2009, and discussed during the then-opposition parliament’s efforts to impeach the foreign minister.

In particular, the Maldivian government’s engagement with Israel was the subject of a parliamentary debate November 9, 2009, in which Shaheed narrowly avoided impeachment following a no-confidence motion.

Opposition to the Maldives’ recognition of Israel was seized by then opposition groups in December 2011 as a sign of the Nasheed government’s “anti-Islamic” policies. The previously disparate parties formed the ‘December 23 coalition’, following a large rally in Male’.

Dr Shaheed said “Growing extremism hurts the Maldives rather than anybody else, because whenever a state is unable to deliver what is in the public interest due to intimidation from others, it is the state that suffers.”

“The growth of extremism itself has numerous causes, but none of it is linked to government policy towards Israel or Palestine,” he added.

Many Maldivians firmly believe that policies pursued by Israel affect their solidarity with Arabs and other Muslims, Dr Shaheed explained.

“We care about how Israel treats the Palestinian people, because we care about the safety of the Muslim holy places under Israeli jurisdiction, and because we need to have a dialogue with Israel communicating our interests and concerns on these matters regularly,” he said.

More space for civic reasoning in Maldivian politics is needed for the Maldives to “behave like the rational nation-state, with friendship towards all, that we claim we are,” he said. “Silence may be golden but dialogue is the miracle tool of diplomacy.”

In the original cable referred to by Sun Online, Dr Shaheed told then US Ambassador Robert Blake that he believed “radical clerics ignited a reaction” among the Maldivian population and this was “a lot, but not a genuine undercurrent.”

Dr Shaheed “highlighted that former President Nasheed pledged to “renew ties” with Israel in his September 24 (2009) UN General Assembly speech,” that the Maldives Defense Minister and Minister for Natural Disasters would visit Israel later that year, and both nations “have already signed agreements on health, education, and tourism”.

Speaking to Minivan News, Dr Shaheed said he believed MDP’s rivals considered the cables “the perfect fog-machine to distract any discussion of bread and butter issues in the campaign.”

“Many in the Maldives see the Palestinian-Israeli dispute in religious terms, and religious sensitivities are played up during election time,” he added.

The Ministry of Foreign Affairs meanwhile told Minivan News the Maldives is “not against Israel”.

“The Maldives’ government always supports Palestinian citizens to have their freedom and urges this in the United Nations,” said Foreign Ministry Spokesperson Muaz Ali.

“This does not mean Maldives is against Israel,” he said.

“Anti-semitism, racism, xenophobia and religious intolerance”

“Neither former President Maumoon Gayoom nor former President Mohamed Nasheed divided the world into a Dar al- Harb and a Dar al- Islam as in classical Islamic international relations theory, which is what the Salafists in the Maldives want to do,” stated Shaheed.

Shaheed explained that “anti-semitism runs deep in certain sections of Maldivian society”, highlighting as an example an article published in Dhivehi on local news website Dhi-Islam in January 2011, reporting on the agreements made between the Maldivian and Israeli government.

“Under this heinous agreement, these people have thrown the little children and the youth of the Maldives, as well as the country’s education sector and the health sector and many other matters, into the lap of the evil Zionist Israelis, who, as we have been informed through the seven heavens, will never wish anything but evil for Muslims,” the article reads.

“Jews have even historically been an evil people who have been cursed because they had killed prophets and spread corruption on earth, and that they are the biggest enemies of Muslims is proven by the teachings of the Holy Quran and forms of the core beliefs of Muslims. This agreement will impose pressures to prevent the dissemination of these teachings,” it adds.

The report claims that Jews have falsely exaggerated “incidents” of torture and killings during the Holocaust “to inculcate sympathy towards Israel in the minds of Maldivian youths; to convince the Maldivian youths that the jews are the victims of oppression and to make them blind and insensitive to the occupation of Palestine, the seizure of Muslim holy lands, and the endless oppression the jews inflict on the inhabitants of the land.”

“This agreement is high treason or the highest form treachery against the noble Islam and Maldivian identity, upon which this country is founded. It is a matter far more dangerous and grave than can be treated lightly,” said the report.

Historical Maldivian – Israeli relations

There is no document to support the claim that Maldives ever severed diplomatic relations with Israel, in Maldivian or Israeli records, explained Dr Shaheed.

Instead, what appears to have happened is a downgrading of the relationship where no Maldivian president since the early 1970s has been willing to receive an Israeli ambassador formally in his office.

The Maldives voted at the UN to accept the legitimacy of Israel, on December 17, 1991, at the request of then President George Bush, by repealing the 1975 UN resolution equating zionism with racism.

“The Maldives was not alone in changing its policies towards Israel – there were a number of Organisation of Islamic Cooperation (OIC) states doing the same thing, or had even restored full diplomatic relations,” said Dr Shaheed.

“Under Gayoom, the Maldives categorically accepted the two-state solution. All of these actions were firmly grounded in international law and state practice,” he added.

The Maldivian government discussed the question of restoring ties with Israel following the Oslo Accord agreement in 1993, which established a peace process framework to resolve the Palestinian-Israeli conflict.

Israel agreed to recognize Yasser Arafat as its partner in peace talks and essentially exchanged land for peace. The Palestinians in turn recognized Israel’s right to exist while also renouncing the use of terrorism and its long-held call for Israel’s destruction.

The Gayoom cabinet agreed on a three-stage restoration of ties with Israel, beginning in June 1994. The Maldivian government “agreed to recognize Israeli passports and ended the travel ban” during stage one, explained Shaheed. Shortly thereafter stage two saw trade and commercial relations were fully restored. Restoring political ties occurred during stage three, with regular meetings at senior diplomatic levels, between 1995 to 2008.

“So what President Nasheed said at the UN – and that was my formulation – was that Maldives wanted friendly relations with all states in the General Assembly,” said Dr Shaheed.

“This does not and has not prevented Maldives from criticizing actions of UN member states when they violate peremptory norms of international law, but Nasheed was not going to divide the world into the good the bad and the ugly,” he declared.

In recent years, attitudes toward Israel have greatly fluctuated with collaborative engagement by the Maldivian government being countered by some anti-semitic ‘blowback’ from elements within Maldivian society.

In February 2010, a team of experts from the Israeli Foreign Ministry are training 35 Maldivian officials in emergency preparedness, with a focus on the management of mass casualties.

Later that year, in November, the Islamic Foundation of the Maldives (IFM) called on the government to break off all diplomatic ties with Israel, a day after Indira Gandhi Memorial Hospital (IGMH) announced that a team of seven Israeli doctors is due to arrive in the country to treat patients at the government hospital for a week.

The IFM reiterated calls to the Maldives government to “shun all medical aid from the Zionist regime” with a team of seven Israeli eye surgeons due to arrive in December 2012, claiming that Isreali doctors and surgeons “have become notorious for illegally harvesting organs from non-Jews around the world.”

The following month, Founders of the IFM NGO claimed that although they do not believe in “hysterical outbursts” and theories of an imminent “Jewish invasion” in the country, a week of anti-Israel protests and flag burning across Male’ has reflected “strong dissatisfaction with the government’s open attitude” to the Jewish state.

In May 2011, Ahmed Naseem became the first Maldivian Foreign Minister to visit Israel.

However, in September 2011, Deputy Leader of the Adhaalath Party Dr Mauroof Hussein has called for alarm after alleging that a delegation from an Israeli company, Teshuva Agricultural Products, was due to arrive in the Maldives to assess the country’s agricultural potential. The Israeli agricultural delegation that was supposed to arrive on Filadhoo cancelled the visit after the islanders warned that they would not let the delegation go further than the jetty.

In December 2011, Minister of Islamic Affairs Dr Abdul Majeed Abdul Bari requested parliament endorse a resolution forbidding the government to establish ties with Israel.

While in April 2012, MPs passed a resolution preventing Israeli national airline El Al from operating scheduled flights to the Maldives until Majlis’ National Security Committee completes further investigation into the matter. El Al applied to the Ministry of Civil Aviation in May 2011 requesting permission to fly to the Maldives starting in December 2011.

There was no direct flight from Israel to Maldives between 2009-2011, so the Maldives was “not able to maximize the benefits from the growing Israeli market,” Dr Shaheed remarked.

“Maldives could have significantly increased the direct income and benefits from Israeli tourism by accepting direct flights from Israel, resulting in a longer holidays and greater expenditure in Maldives while still making the holiday comparatively cheaper for the visitor,” he added.

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Maldives Media Council submitting case against President’s Office “to create a free media”

The Maldives Media Council (MMC) has voted to submit a case against the President’s Office to “create a free media” in light of the discriminatory treatment of Raajje TV.

The President’s Office is violating equal rights by not inviting the opposition-aligned TV station Raajje TV to events and has not been adhering to the MMC’s requests that it give equal opportunities to all media, the MMC Secretariat told Minivan News (April 9).

The case will be submitted to the Prosecutor General’s (PG) office April 10.

“MMC members have voted to submit the case. Members have a strong feeling that it is a necessary step to take in order to create a free media in the Maldives,” said the MMC Secretariat.

The MMC has been very active the past two months trying to solve these problems and is now sending the case to the PG, Raajje TV Deputy Chief Executive Officer Abdulla Yamin told Minivan News.

The President’s Office has not been inviting Raajje TV to press conferences, has denied reporters entry press events in the President’s Office, and has not sent the channel any government press statements, Yamin claimed.

The President’s Office also asked government ministries and state-owned companies not to give information to Raajje TV and for these companies to stop providing private sponsorship to the media outlet.

Yamin said that they had observed this treatment was particular only to their channel.

“The President’s Office said they have not invited us because it is their privilege to decide whether to invite Raajje TV or not,” said Yamin.

“We are talking about rights granted in the constitution, not a privilege. There must be a situation [in the Maldives] where independent media can run.

“Article 28 of the constitution guarantees the right to freedom of the press and article 29 assures the right to freedom of information,” Yamin declared.

Yamin explained that the MCC had acted as a mediator to try and resolve the lack of cooperation shown by the President’s Office to Raajje TV.

“The President’s Office said if we do certain things they will cooperate. However, then the President’s Office is forcing their influence on our editorial policy,” said Yamin.

“We are not going to negotiate our constitutionally guaranteed right to information,” he added.

Ongoing government discrimination

Raajje TV filed a case against the President’s Office in the Civil Court in September 2012, complaining that the station had been boycotted from official events. Yamin expects the civil court to issue their verdict later this week.

Raajje TV also submitted a case to the parliamentary committee on government accountability regarding the president’s office discriminating against the media outlet. Parliament invited the president’s office to attend the committee twice, but never received a response, according to Yamin.

Additionally, Raajje TV lodged a complaint against the Maldives Broadcasting Commission (MBC) with the Anti Corruption Commission (ACC), alleging it was “using its power to give benefits” to other TV channels by providing them funding.

The Maldives Broadcasting Commission (MBC) was contacted by the ACC regarding the matter, but did not respond, according to Yamin.

“The MBC have not done anything regarding our right to information. They should be working on these issues to make sure rights are assured,” said Yamin.

Minister of Home Affairs Mohamed Jameel Ahmed previously named Raajje TV as an “enemy of state” in a press conference held in July, the same day on which the Maldives Police Services publicly stated its refusal to provide cooperation or protection to the channel.

Raajje TV also filed a case against the Maldives Police Services in September 2012 over their decision to deny cooperation or protection to the channel. In February 2013, the Civil Court ruled that the decision by the Maldives Police Service to cease cooperating with Raajje TV was unconstitutional.

Dismissing the police argument that it had the sole discretion to decide who to invite to press conferences and functions, the court stated that the action more resembled a deliberate attempt to limit the constitutional rights of freedom of expression, freedom of media and the right to information.

Raajje TV believes this verdict will apply to the President’s Office as well.

“If the court is fair and balanced a similar verdict will come. I believe the court won’t be that corrupt because the constitution and laws are clear. It’s written in black and white,” Yamin said.

Raajje TV is one of the five private broadcasters in the country and is the only television station aligned with the opposition Maldivian Democratic Party (MDP). The TV station has come under substantial pressure and criticism from groups including the government and political parties aligned with it.

RaajjeTV has been the subject of continuous verbal attacks by the state following the transfer of power in February.

In early August 2012, Raajje TV’s control room was sabotaged by intruders.

Press freedom organisation Reporters Without Borders at the time condemned this attack, stating “This targeted and well-prepared operation was the foreseeable culmination of the new government’s escalating verbal attacks on Raajje TV. How the authorities respond will be seen as a test of their commitment to media pluralism.”

The President’s Office Media Secretary Masood Imad and the Maldives Broadcasting Commission were not responding to calls at time of press.

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Foreign workers locked in house after allegedly “refusing to work and attempting to flee”

Police have discovered six foreign workers locked in a house after they were reportedly accused “of refusing to work and attempting to flee”.

All six of the male workers were found in a house located in the Male’ neighbourhood of Henveiru, according to local media.

While responding to a report made by a foreigner, the police discovered the the workers at approximately 10:30am Monday (April 8).

As the foreign workers exited the house, spectators claimed the workers had refused to do their jobs and as a result had not been receiving their salaries. The man responsible for the workers was also present, reported local media.

Immigration Controller Dr Mohamed Ali told Minivan News that police were investigating the case and would report back to the Department of Immigration and Emigration.

“We are working on it,” Ali said.

Police Spokesperson Chief Inspector Hassan Haneef was not responding to calls at time of press.

The workers’ nationalities, the conditions of their employment and housing have yet to be confirmed.

Migrant workers

Last week the Department of Immigration said 57 unregistered foreign workers were detained by police on April 1 and were being processed by authorities ahead of a decision on whether they will face deportation.

In February, a Maldivian trade union alleged that corrupt immigration practices and the use of unregulated employment agencies by private and state employers was limiting efforts to curb abuse of migrant workers and prevent illegal practices such as retaining their passports.

The Tourism Employees Association of Maldives (TEAM) claimed that while companies are not permitted to retain the passports of foreign workers, some hospitality operators – as well as unregulated third party agencies and government ministries – are still keeping employee travel documents without consent.

At the same time, a source with knowledge of the current immigration system told Minivan News that the practice of retaining passports – a long-standing habit of Maldivian employers – was a key contributor to human trafficking in the country.

In May 2012, a total of 47 Bangladeshi nationals working for a local security firm were seized by the Department of Immigration as part of a wider crackdown on unregistered migrant workers.

Immigration officials at the time claimed that the company the men had been working for had been in operation for 10 -12 years, yet no information could be found on its operations during a subsequent investigation by authorities.

In 2010, it was claimed that the exploitation of foreign workers in the Maldives rivals fishing as the most profitable sector in the Maldivian economy after tourism.

Human trafficking

The Maldives has appeared on the US State Department’s Tier Two Watch List for Human Trafficking consecutively for three years. Should the Maldives drop to tier three – the worst category – then the country is expected to face significant reductions in aid and potential travel restrictions on its citizens.

The Maldivian government recently launched a special campaign intended to raise awareness of foreign workers’ rights, while earlier this year eight “fundamental” International Labour Organisation (ILO) conventions were ratified in order to bring legislation on employee rights and trade unions in line with international standards.

However, independent institutions in the Maldives have maintained that the country – under successive governments – has yet to ratify a core convention on protecting migrant worker rights, while no legislation is in place to punish those involved in smuggling workers though the country’s borders.

The Prosecutor General (PG’s) Office has also confirmed that a lack of legislation has meant no cases have been prosecuted against human traffickers in the Maldives at present.

Meanwhile, the Human Rights Commission of Maldives (HRCM) has accused state and private sector employers in the country of lacking consistency in their efforts to address human trafficking, preventing “real” change in controlling illegal migration.

In January, President Waheed expressed concern about the rising number immigrants in the Maldives, claiming that the “foreign influence” threatens the country’s “Maldivianness”.

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