Category: News in Brief

STO purchases new oil shipment

The State Trading Organisation (STO) has purchased a 7000-ton oil shipment after settling overdue payments, easing fears of the country running out of oil by next week.

STO Managing Director Shahid Ali told newspaper Haveeru today that the oil shipment had been held up in Dubai after the government-owned company was unable to make outstanding payments to foreign oil suppliers.

The 7000 tons of oil began loading yesterday after STO paid US$7 million to the suppliers, Shahid said.

The shipment includes petrol, diesel and jet fuel, he added, which was enough to last for a week.

STO was hoping to order a further 9,000 tons for US$8 million tomorrow, Shahid said.

While the government provided US$3.5 million to import the new stock, the rest was arranged by STO.

The company faced financial constraints and difficulties paying foreign suppliers due to more than MVR600 million owed to STO by other government companies and institutions.

Meanwhile, STO reportedly owes US$140 to foreign oil suppliers, which it is paying in instalments.

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MBC audio cable severed during parliament committee meeting

An audio cable of the Maldives Broadcasting Company (MBC) was severed during a meeting of parliament’s Independent Institutions Committee yesterday (November 4).

The meeting held to hear Prosecutor General Ahmed Muiz’s response to a no-confidence motion was disrupted by MPs of the government-aligned Progressive Party of Maldives, Jumhooree Party (JP), and Dhivehi Qaumee Party.

According to a statement by the parliament secretariat, the Maldives National Defence Force (MNDF) has been asked to investigate the incident.

Following the cancellation of a parliament sitting on September 23 amidst chaos in the chamber, opposition-aligned Raajje TV showed video footage of JP MP Ilham Ahmed, also the party’s deputy leader, take out what appeared to be a plier from his pocket and cut a cable.

A cable of the state broadcaster was also severed during a live telecast of a committee meeting in January 2012, briefly interrupting the live coverage.

Following the incident, MP Ilham was accused of cutting the cable by MPs of the Maldivian Democratic Party.

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Government signs service agreement with Tatva for waste management project

The Finance Ministry has signed the service agreement for a renegotiated waste management contract with India-based Tatva Global Renewable Energy last week.

Newspaper Haveeru reported that the government will pay MVR8million as a mobilisation fee to commence the waste management project within 45 days under the service agreement signed on Thursday (October 31), which includes all the details for implementation.

The company has been provided a 700,000 square foot plot in Thilafushi as well as the garbage trucks used by the Male’ City Council. While Tatva will dispose of garbage collected at the waste dump in Male’ under the first phase of the project, the company will begin providing a garbage collection service to households in the capital under the second phase.

Each phase is expected to take 18 months for completion.

The previous administration of former president Mohamed Nasheed signed an agreement with Tatva in May 2011 as part of efforts to generate power from recycling waste gathered from Male’ as well as surrounding inhabited and resort islands.

However, by December last year, President Dr Mohamed Waheed’s administration had announced it was in the process of renegotiating Tatva’s agreement in a bid to replace the deal with what Environment Minister Dr Mariyam Shakeela at the time called a “mutually beneficial” agreement.

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Chinese tourist drowns near Vilamendhoo resort

A Chinese tourist staying at the Vilamendhoo Resort in Alif Dhaal atoll drowned while out swimming yesterday (November 4), local media reports.

A source from the resort told CNM that the body of the drowned man was discovered in the afternoon and police were duly informed.

Last week, the body of a 25 year-old Chinese tourist staying at Alsana Velaavaru Resort was found floating in the sea near the resort.

Tourist deaths – usually while snorkeling – are disproportionately higher among Chinese tourists, which now account for a majority of Maldives’ tourist arrivals, compared to the traditional European market.

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MMA governor warns of having to print money

Maldives Monetary Authority (MMA) Governor Dr Fazeel Najeeb has warned that the central bank would be forced to print money to arrange funds for the State Trading Organisation (STO) to resolve a looming oil payment crisis.

Dr Najeeb told CNM yesterday that money would have to be printed if STO’s efforts to secure the funds through banks were unsuccessful.

STO MD Shahid Ali told parliament’s Finance Committee last week that the government-owned company needed to clear US$7 million out of a US$20 million debt owed to foreign oil suppliers to be able to import a new shipment.

“We estimate that the stock could run out by [November] 10 or 11 if a new stock is not brought in,” Shahid told MPs.

Finance Minister Abdulla Jihad told the committee that he had asked the MMA to provide MVR50 million to STO but was told that the central bank could only arrange for MVR20 million as the public bank account was overdrawn.

Shahid Ali told Minivan News on Sunday that the MMA had committed to financing the overdue payments although the “exact amounts have not been agreed upon.”

Jihad confirmed to newspaper Haveeru yesterday that MVR59 million had been made available to STO with more funds to be arranged on Thursday, which would enable the company to import a fuel shipment this week.

The MMA governor meanwhile revealed at parliament last week that the public bank account was overdrawn by MVR1.5 billion (US$97 million) as a result of having to finance government expenditure.

“When we have to accommodate every request by the government we are forced to act completely against the MMA law,” he said, referring to printing money and dipping into foreign currency reserves.

While short-term overdraws from the public bank account to manage the government cash flow was not a concern, Dr Najeeb told MPs that it was instead being used as a means to finance the budget deficit and print money.

Excess rufiyaa in circulation would worsen the dollar shortage and stoke inflationary pressures, he cautioned, explaining that “every MVR100 printed is added to the total [local currency] chasing the dollars.”

Deficit monetization – printing money to plug the fiscal deficit – was ceased by the previous administration in late 2009 in favour of issuing treasury bills and bonds while the MMA introduced open market operations to mop up excess liquidity.

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Azima appointed special advisor to President Waheed

Less than one week after being removed from her position as Attorney General, Azima Shukoor has been appointed as Special Advisor to President Dr Mohamed Waheed.

The Maldivian Democratic Party had filed a no-confidence motion against Azima, arguing that she had demeaned the constitution, parliamentary powers and the integrity of the Attorney General’s post by advocating against the Elections Commission in September’s vote annulment case.

The appointment comes despite President Waheed’s term being constitutionally scheduled to end in just seven days. Whilst the Supreme Court has suggested he could legally continue in his role until a replacement is selected, the Majlis passed a motion last week providing for the speaker of the house to take over during any interim period.

Waheed himself has said that he does not wish to stay in office past the November 11 deadline. The re-scheduled election is due to take place this Saturday (November 9).

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International Democratic Union condemns “undemocratic” actions of police

The International Democratic Union (IDU) has released a statement condemning the “authoritarian”, “unconstitutional and undemocratic” role of the police in the cancellation of the October 19 presidential election.

“The IDU calls upon the President of the Maldives, the Government and all other political parties to ensure that the Elections Commissioner is empowered to hold a free and fair election to elect a new President immediately without interference from governmental authority,” read a press release from the group’s Executive Committee.

The IDU is a collection of over 54 centre-right political parties from around the globe who meet to discuss and exchange policy ideas. The group’s leadership includes former Australian Prime Minister John Howard and current UK Foreign Secretary William Hague.

The statement also expressed concern regarding potential restrictions on international election observers by the Government of Maldives.

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Prosecutor General asked to submit response in writing after havoc in committee meeting

A meeting of parliament’s Independent Institutions Committee held today for the Prosecutor General (PG) to respond to a no-confidence motion was called off after disorderly conduct from MPs of the government-aligned Progressive Party of Maldives, Jumhooree Party (JP), and Dhivehi Qaumee Party.

A motion was passed with the support of Maldivian Democratic Party (MDP) and Dhivehi Rayyithunge Party MPs to ask PG Ahmed Muiz to submit his defence in writing by 9pm tonight.

The pro-government MPs contended that the proceedings were in violation of parliamentary rules and harangued Chair MP Ahmed Sameer. MPs Riyaz Rasheed, Ilham Ahmed, Ali Arif, Abdul Muhsin Hameed and Ahmed Amir banged saucers and cups on the table and raised their voices.

JP Deputy Leader Ilham played music on his phone and held it up to a mic.

The MDP filed a no-confidence motion against Muiz last month claiming that the PG had failed to prosecute police officers who mutinied against the former government and assaulted protesters.

Today’s meeting was held after Muiz asked for more time to respond to the charges last week saying he had been on his annual leave when he received the summons to attend the committee.

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Health Minister Dr Jamsheed resigns

Health Minister Dr Ahmed Jamsheed resigned from the cabinet last week.

President’s Office Media Secretary Masood Imad told local media that Jamsheed resigned to assume a post at the World Health Organisation (WHO).

According to a statement by the President’s Office today, President Dr Mohamed Waheed “thanked him for his valuable services during his tenure as the Health Minister towards the development of the health sector.”

Minister of Gender, Family and Human Rights Dr Aamal Ali has been appointed the Acting Minister of Health.

Dr Jamsheed was appointed health minister on February 12, 2012 following the controversial transfer of presidential power five days earlier. He was serving as the Chief Operation Officer at the ADK private hospital after resigning from the director general post at the Centre for Community Health and Disease Control (CCHDC).

With Dr Jamsheed’s resignation, the posts of Attorney General, Home Minister, Foreign Minister and Health Minister are currently vacant with a week left for the expiration of the current presidential term.

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