Maldivian ship’s captain threatened with drowning over unpaid salaries: crew member

Indian crew members aboard a Maldivian cargo vessel docked in Dubai have threatened to drown the ship’s captain over unpaid salaries, fellow workers have alleged in local media.

Six of the Maldivian crew aboard the Waadhee Progress vessel, currently docked at a harbour in Dubai, claim to have been continuously threatened by Indian crew members for the past three months.

A crew member told the Sun Online news agency yesterday (January 4) that the foreign nationals working on the ship were unhappy with the situation as they had not been paid for an entire year.

The crew member further alleged that the foreign crew had threatened to drown the ship’s captain if the alleged issue of outstanding salaries were not paid by the end of today (January 5).

Police Spokesperson Sub-Inspector Hassan Haneef told Minivan News that authorities were looking into the matter, but had received little information on the vessel’s situation at present.

A crew member working aboard the Waadhee Progress has told local media that due to the vessel’s current location, it was hard to clarify the exact situation on-board.

He further alleged that an assault between the foreign crew on a previous occasion had left a fellow employee with stab wounds.

“We also haven’t received our salaries for as long as [the foreign crew]. They are threatening us. They carry knives and iron bars. The last thing they said was that the captain will be drowned if the salaries are not paid by the end of tomorrow,” the Maldivian crew member claimed.

“We are scared, haven’t even been sleeping. The company has said that they have contacted the coast guard and the police and they are looking into it. But we are still in the same situation. We have, sort of, been hijacked.”

Maldives National Defence Force (MNDF) Spokesperson Colonel Abdul Raheem said that the country’s coastguard had received no information regarding the incident at present.

“This matter will probably be taken up by the respective foreign ministries in Dubai and Maldives. I should imagine the Transport Ministry will also be looking into the matter,” Raheem told Minivan News.

The Dubai Maritime City Authority (DMCA) was not responding to calls from Minivan News at the time of press.

State Transport Minister Mohamed Ibrahim said that he was still involved in “airport matters” when contacted today, and was unable to comment on the issue, forwarding Minivan News to other sources in the ministry.

Meanwhile, an official from Waadhee Shipping and Trading – the company who own Waadhee Progress – told local media that the company had been informed of the situation and were looking into it.

Minivan News was awaiting a response from the company at time of press.

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Vessel sunk and five injured after two separate boat collisions in Male’

Three boats have been damaged and another vessel sunk following two separate collisions in Male’ over the last 24 hours, authorities have confirmed.

The Maldives Police Service (MPS) has reported that a total of five people had received minor injuries as a result of the two separate collisions that occurred in the capital on Wednesday (January 3).  The first of these collisions occurred near the city’s T-Jetty, while the second crash occurred at the airport ferry terminal area, according to police.

Both collisions involved ferries operated by Maldives Transport and Contracting Company (MTCC), which today announced that it would not be reviewing its current operations, instead favouring increased staff training.

MTCC Executive Ismail Fariq told Minivan News that despite the incidents, there had been no changes to the schedule of its services, with all ferry operations running as “normal”.

“As we understand, the MTCC captain controlling the Hulhumale’ ferry was acting in accordance to regulation. There was no fault on our side,” Fariq said in regard to the airport ferry terminal collision.  “The traffic between these two islands is extremely high, and there is only one entrance and exit to the Hulhule’ and Hulhumale’ terminal.”

Fariq said that while there have been no changes to operations since yesterday’s collision, the company would be conducting “ongoing” sessions of additional training for captains.

The extra training was started last month following another incident involving a speedboat service operated by the MTCC.

“We are also hoping to negotiate with the city council and other public bodies to try and have a different entry point for the terminals, although this will be a long term goal of ours,” added Fariq.

An official from MTCC told local newspaper Haveeru yesterday that one of the collisions occurred yesterday when an airport ferry “backed up” while the MTCC vessel was entering the harbour.

Police reported at the time that five passengers aboard the airport ferry had to be taken to hospital following the collision. Police Spokesperson Hassan Haneef told Minivan News today (January 3) that all of the five injured passengers had now been discharged from hospital.

According to police reports, the earlier incident involved a collision between an MTCC ferry travelling from Villingili and a cargo boat carrying goods called Mihiri, causing the latter to sink.

Police confirmed today that there had been no reported injuries and that investigations into the incident were “underway”.

Speaking about the incident, Fariq said he believed poor visibility had resulted in the collision, however the company is still waiting for an official report from the police.

“If you are on the ferry, it is very difficult to see what is going in and what is coming out of the jetty. Our Villingili ferry had come over to Male’ and was waiting to come in when it collided with the cargo boat.

“There wasn’t much damage to either vessel from where they struck, so we think that the cargo boat may have also hit the rocks causing it to sink,” Fariq alleged.

Last month, an MTCC express speedboat and another vessel belonging to the Bandos Island Resort and Spa property collided, leaving a Finnish tourist dead and nine other people injured.

The incident led to the temporary suspension of an express speedboat service between Hulhumale’ and Male’ operated by the Maldives Transport and Contracting Company (MTCC).

The services were restarted later the same month follow a review of guest safety procedures.

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ACC files ADC case with Prosecutor General’s Office

The Anti-Corruption Commission (ACC) has filed a case with the Prosecutor General’s (PG) Office today over the decision to allow infrastructure group GMR to deduct a court-blocked Airport Development Charge (ADC) from concession fees owed to the state.

The deducted concession fees were to have been paid to the state-owned Maldives Airports Company Limited (MACL).

As part of the filed case (Dhivehi), the ACC is seeking reimbursement of MVR 353.8 million (US$22.9 million) from former MACL Chair Ibrahim ‘Bandhu’ Saleem and former Finance Minister Mohamed Shihab over the alleged misuse of authority it claimed had led to significant financial loses for the state.

The ADC issue had been a key point of contention between GMR and the administration of President Dr Mohamed Waheed Hassan Manik before his government opted last month to void a sovereign agreement with the India-based infrastructure group to develop and manage Ibrahim Nasir International Airport (INIA).

When contacted by Minivan News today, a PG’s Office spokesperson confirmed that the ACC case had been received, but could not provide any further details on the matter while its investigations were taking place.

The spokesperson claimed that under normal procedure, whether a case was submitted from an institution like the ACC or the Maldives Police Service, the PG’s Office would review all details before deciding whether to move ahead with a prosecution.

ACC case

According to the case filed by the ACC, former Finance Minister Shihab stands accused of misusing his ministerial authority to benefit a third party by allowing GMR to deduct the ADC and insurance charges from concession fees it owed MACL between October 2011 and September 2012.

Shihab was not responding to calls from Minivan News at time of press.

The ACC has also accused former MACL Head Saleem of allowing GMR to deduct the ADC through a consent letter signed in violation of the company’s rules. According to the ACC’s case, normal procedure for MACL would be to have the company’s Board of Directors pass a resolution allowing for consent to be given to deduct the ADC.

Airport Development Charge

In late 2011, the then-opposition Dhivehi Qaumee Party (DQP) filed a successful Civil Court case blocking GMR from charging an ADC – a US$25 charge for outgoing passengers stipulated in its concession agreement with the government – on the grounds that it was a tax not authorised by parliament.

Former President Mohamed Nasheed’s administration chose to honour the original contract, and instructed GMR to deduct the ADC revenues from the concession fees due to the government through state-owned MACL, while it sought to appeal the Civil Court ruling.

However, the Nasheed government fell a month later and the opposition inherited the result of its court victory, receiving a succession of bills from the airport developer throughout 2012, despite the government’s insistence that the January 5 letter from MACL outlining the arrangement was no longer valid.

In the first quarter of 2012, the government received US$525,355 of an expected US$8.7 million, after the deduction of the ADC. That was followed by a US$1.5 million bill for the second quarter, after the ADC payable eclipsed the revenue due to the government.

Combined with the third quarter payment, the government at the time of the GMR contract termination owed the airport developer US$3.7 million.

GMR attempted to compromise by offering to exempt Maldivian nationals from the ADC.

The offer was claimed to have had been personally mailed by GMR Chairman G M Rao to President Waheed. However, GMR later claimed to have received no response from the government on the matter.

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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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PPM has “maturity” to hold competitive internal elections: Ahmed Adheeb Ghafoor

Minister of Tourism, Arts and Culture Ahmed Adheeb Ghafoor has claimed that the government-aligned Progressive Party of Maldives (PPM) has the “maturity” to hold competitive internal elections without divisive splits among its members.

Internal elections for the PPM’s senior posts are due to take place at its long-delayed national congress scheduled between January 17 to January 19, 2013.  The congress will then be followed by primaries to decide who will stand as the party’s presidential candidate during general elections expected next year.

Adheeb, who is one of three candidates contesting for two vice president roles in the PPM, said that the party – unlike some of its political rivals both within government and opposition – was capable of demonstrating a “strong” and “competitive” internal democracy that also allowed younger people like himself to stand for key positions.

His comments were made as PPM MP and Parliamentary Group Deputy Leader Ilham Ahmed alleged that the party has pressured him to stop standing as a third candidate for the two vice presidential roles.  Two other fellow candidates contesting for the position withdrew their names last week.

Ilham has claimed PPM figures were attempting to prevent him from contesting for the party’s vice president seat to ensure only two candidates – Adheeb and MP Abdul Raheem Abdulla – remained in contention.

“It’s really sad that the party’s senior members are orchestrating an attempt to get rid of me,” Ilham was quoted as telling local newspaper Haveeru on Saturday (December 29).

Earlier this month, the PPM unveiled the candidates for several of its key senior posts with interim leader and figurehead, former President Maumoon Abdul Gayoom the only candidate for party president.  However, a number of candidates were announced to be standing for two available deputy leader posts in the party.

These candidates at the time included MP Ahmed Nihan, Hussain Manik, MP Ilham Ahmed, MP Moosa Zameer, MP Ahmed Mahloof, MP Abdul Raheem Abdulla, Tourism Minister Adheeb and former MP ‘Jausar’ Jaufar Easa Adam.

However, following the decision this week of MPs Mahloof and Nihan to withdraw from the race and lend support to Adheeb and MP Abdul Raheem Abdulla, only three people are now scheduled to contest for the PPM’s vice president roles.

“I’m getting calls from all over asking me not to withdraw my name. Many are also condemning Mahloof and Nihan for the decision to withdraw their names. I believe that their decision is politically very strange,” Ilham told the Haveeru newspaper. “When the number of candidates is down to three, pledging support for just two is like pointing the finger at me and asking the members not to vote for me. I wouldn’t have had any problems if they decided to back just one candidate.”

PPM MPs Ahmed Mahloof and Ahmed Nihan were not responding to calls at time of press, whist Minivan News was awaiting a response from fellow MP Ilham.

Principles

However, Tourism Minister Adheeb has rejected any accusation that the PPM was attempting to reduce the number of candidates standing for party vice president.  Adheeb claimed that he did not believe “anything was going on” in terms of senior PPM figures trying to influence the outcome of the upcoming primaries.

“I was surprised that the two MPs – [Mahloof and Nihan] – took their names out [of the contest] especially when they endorsed two other candidates in the election,” he said.

“However, my stand remains that I am standing for principals. I am currently in a political position and believe I can bring something to the second largest party [in terms of membership] in the country.”

With three competitors presently standing for the two vice president roles in the PPM, Adheeb said he believed there was room in the party for competition.

Ahead of the vote, Adheeb claimed that his relative youth and experience both as tourism Minister and the former head of the Maldives National Chamber of Commerce and Industry (MNCCI) would allow for different thinking within the party.

“With former President Gayoom’s experience of running the country, I think we would have a good partnership that would give more value to PPM,” he claimed.

Adheeb said that if he was able to win a vice president role within the PPM, he aimed to continue to advocate for what he called centre-right, business friendly positions, explaining his belief that political reforms made over the last decade had taken attention in the country away from “economic freedoms”.

The tourism minister said he would therefore pledge to pursue “neo-classical economic policies” that promoted, among other factors, a reduced role from government in shaping national finance policies.

The previous administration of Mohamed Nasheed had sought to introduce a number of reforms in taxation, notably in the introduction of a General Goods and Services tax and a Tourism Goods and Services Tax (TGST) over the last two years.

With his policies outlined for the upcoming vice presidential election, Adheeb claimed that he intended to see out the three candidate race and rejected the possibility of negative campaigning during the party’s internal elections.

“I would like to wish both Ilham Ahmed and Abdul Raheem Abdulla the best of luck,” he claimed.

“Too partisan”

Speaking to Minivan News last week, Dr Abdulla Mausoom, Deputy Leader of the fellow government-aligned Dhivehi Rayyithunge Party (DRP) claimed that the Maldives’ young democratic culture was at present too partisan for relying on US-style primary elections to decide on presidential candidates and other senior party roles.

Mausoom contended that there was a pattern of behaviour in the Maldives among candidates defeated in both parliamentary and council elections to contest independently – at times proving detrimental to their one-time party owing to a possible split within the voter base.

“Maldivians are not ready to accept defeats in internal primary elections. Even at presidential level, parliamentary level and council level, we are seeing that if [a person] loses in a primary, they contest the national election as an independent to prove the party members were wrong in deciding party candidate,” he said.

“In the 2008 United States presidential primaries, we saw Hillary Clinton and Barack Obama fiercely contesting for the Democratic Party’s presidential ticket. At the end, Obama won and Clinton backed him. That spirit of partisanship has not been seen here in Maldives,” Mausoom added.

“Primaries an essential and fundamental aspect of democracy”: MDP

Responding at the time, Hamid Abdul Ghafoor MP and Spokesperson for the opposition Maldivian Democratic Party (MDP) dismissed the notion that the Maldivian public were not “prepared” for internal elections.

“We believe that party primaries are an essential and fundamental aspect of democracy. The MDP has shaped up a good model in holding party primaries where all the elected officials generally should face a party primary before seeking re-election. Even I would have to face primaries before I could run for re-election to parliament,” he claimed.

According to Ghafoor, it was the MDP that introduced the mechanism of primaries into local party politics, a decision he believed had forced its rivals to reluctantly follow.

He added that the sentiments expressed by Dr Mausoom reflected the DRP’s founding by former President Maumoon Abdul Gayoom, who oversaw thirty years of autocratic rule that ended following the elections in 2008.

Ghafoor claimed that the DRP was still trying to cope with the changes bought about four years ago.

“I believe [Mausoom] and others who talk like that are talking for self-interest. They built their party on shaky grounds, and for them it is very difficult to keep up with us in terms of internal democracy within the party. We can understand that,” Ghafoor added.

Former President Gayoom opted to form the PPM following a public war of words with Ahmed Thasmeen Ali, his successor as head of the DRP.

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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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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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