Category: Politics

Elections Commission looking into MDP’s revolution calls

The Elections Commission (EC) has confirmed it is investigating calls made by the Maldivian Democratic Party (MDP) earlier this month to try and overthrow the current government through an ‘Ingilaab’ (revolution).

Former President Mohamed Nasheed on December 11 called for a “revolution” to overthrow the administration of President Dr Mohamed Waheed Hassan, claiming it is the only way to have a government that is “by the people”.

The motion was later passed the same day by the National Council of the MDP at Kulhudhuhfushi in Haa Dhaal Atoll.

Vice President of the Elections Commission Ahmed Fayaz stated today that the commission had received a complaint concerning the MDP’s motion, and hence had begun looking into the matter.

“Our in-house legal team is working along with an external firm of lawyers who sometimes provide legal advice to our commission. The commissioners will be discussing the matter only when the legal team finishes their review,” he said.

Fayaz further added that he did not know when the commission would be able to come to a decision on the matter, saying it all depended on how fast the legal team manages to review the matter.

Fayaz said that the legal team would need to review the definition of what an ‘Ingilaab’ or revolution is, and what the constitution and accompanying laws and regulations stated on the matter before deciding whether or not action needed to be taken against MDP.

“We cannot comment on what the outcome may be before the legal review is completed. We don’t even know yet what action, if any, will have to be taken against the MDP,” Fayaz said.

MDP Spokesperson Hamid Abdul Ghafoor defined ‘Ingilaab’ as bringing about a change. He declined from commenting on the complaint currently being looked at by the EC.

The complaint is reported to have been registered with the EC earlier this month by Ibrahim Manik of Henveiru Finifenmaage Aage.  Manik was reported to have requested at the time that action be taken against the MDP’s plans for a revolution “at the earliest”.

“Since my mind believes that the MDP National Council’s decision to topple the government through a revolution may weaken the country politically, socially, economically and in the area of military defences, and the country may be faced with an unrecoverable loss, I am pleading with your commission with respect, love and affection to take necessary action against this without the slightest delay,” local media reports Manik to have said in his letter to the EC.

Meanwhile, former President and interim President of the Progressive Party of Maldives (PPM) Maumoon Abdul Gayoom has previously labelled the MDP’s resolution to bring about a revolution as a “criminal offence.”

Gayoom further said at the time that MDP’s announcement to commit the offence must be met with the due penalty, adding that the idea to orchestrate a revolution could not be entertained, stating: “It is an offence to even speak of such a thing.”

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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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Home minister confident ahead of parliamentary no-confidence vote

Home Minister Dr Mohamed Jameel Ahmed has said he expects to successfully defend himself within the People’s Majlis against a no-confidence motion submitted this month by the opposition Maldivan Democratic Party (MDP).

Local media reported Friday (December 21) that Parliamentary Speaker Abdulla Shahid has sent the required 14-day notice to Dr Jameel informing him of a second no-confidence motion submitted by the MDP against him.

The motion was forwarded by the opposition party over allegations the home minister had failed to control civil peace and order in the country. A previous motion submitted by the MDP against Dr Jameel was withdrawn by the party for unexplained reasons.

Earlier this month, parliament also tabled a no-confidence motion filed against Defence Minister Colonel (Retired) Mohamed Nazim, despite a Supreme Court injunction ordering parliament to halt all pending no-confidence votes.

The People’s Majlis secretariat revealed at the time that Defence Minister Nazim has been given the required 14-day notice and his ministry also duly informed by Speaker Abdulla Shahid. A no-confidence motion against President Dr Mohamed Waheed Hassan is also in parliament awaiting scheduling.

Confirming that the 14 day notice ahead of the second no-confidence vote against him had now been received, Dr Jameel claimed he expected to successfully defend himself from the motion, as would other senior government representatives.

“[The no-confidence motion] is part of a democratic process that the government of the day must always be prepared to face. I feel it’s equally vital for those of us sitting in the government to inform the public and People’s Majlis of our performance and decisions.”

“I am sure once our side of the story is heard by the Majlis, the concerns and charges raised in the motion will become clearer and will be seen as baseless. It’s important in such a motion, in my opinion, to appear in the Majlis and fully cooperate with this democratic exercise,” he told Minivan News.

Dr Jameel added that the would not comment on whether he felt the MDP could garner enough support for the motion, referring the question to the opposition party.

MDP allegations

After last week submitting the bill, which was backed by 17 of MDP MPs, the opposition party accused the Home Minister of  failing to control law and order in the country and therefore holding ultimate responsibility for the loss of eight lives.

The MDP further referred to an incident in which a police officer struck a speeding motorcyclist with his baton.  The action caused the vehicle – alleged to have been driven by a suspected robber – to collide with another man’s motorcycle and killing him.

Police at the time did not reveal the involvement of the police officer in the death of the bystander. Video footage of the incident was subsequently leaked to the media.  The MDP alleged that Home Minister Jameel had tried to cover up police involvement in the death.

MDP MP and Spokesperson Hamid Abdul Ghafoor claimed there was sufficient support in the Majlis to back the three no-confidence motions the party submitted against Dr Jameel, President Waheed and Defense Minister Nazim.

“We believe it is possible and necessary to [pursue the no confidence motions]. If you look at all cases, it is quite clear that all have acted unconstitutionally. This applies to all three cases,” he said.

In light of the government’s recent decision to terminate a sovereign agreement with India-based infrastructure group GMR over developing Ibrahim Nasir International Airport (INIA), Ghafoor contended that sufficient support remained in parliament to vote against the government in all three cases.

“We believe there are enough sensible MPs who understand the need for a legal ouster of an unelected executive,” he claimed.

Ghafoor added that the party was confident that a majority of MPs would not continue to allow what he alleged was the growing role of radicalism within the executive’s decision.  He contended this influence had been seen in the government’s attitude against not only parliament, but foreign investment in the form of GMR.

“You have a government without any democratic mandate taking major decisions against parliament and foreign investors,” he added.

Earlier this week, government-aligned Progressive Party of Maldives (PPM) Parliamentary Group Leader and MP Abdulla Yameen alleged in local media that any damage to relations between India and the Maldives following the GMR contract termination had been the result of the actions of the National Movement.

The National Movement is made up of several representatives in the coalition government of President Waheed, notably including the religious conservative Adhaalath Party (AP).

During an interview with private broadcaster DhiTV on Tuesday (December 18), Yameen claimed that the airport was not withdrawn from GMR due to the pressure of National Movement, which had strongly opposed the deal, but rather a unanimous decision by the coalition government.

However, Yamin alleged that during rallies held by the National Movement, some participants spoke in a tone about GMR and the airport development that might have caused diplomatic issues with India.

According to Sun Online, Yameen was also quoted as claiming that the ongoing protests and rallies being held by the National Movement were unnecessary.  He added that the Maldives might have to face difficulties due to the recent activities of the National Movement.

Days earlier, National Movement steering committee member and Minister of State for Finance Abbas Adil Riza said efforts would be taken to “break up” parliament should its dispute with the Supreme Court over holding temporary secret ballots for upcoming no-confidence votes continue.

However, speaking on December 9, government-aligned Dhivehi Rayyithunge Party (DRP) MP Abdulla Mausoom stated there was no ‘spirit’ within his party to support the no-confidence motion against Defence Minister Mohamed Nazim.

Mausoom said although the DRP would support no-confidence motions against cabinet ministers where it thought such actions were justified, he believed the party would not back the Maldivian Democratic Party (MDP) in trying to remove Nazim as defence chief as part of what he believed was a “personal vendetta”.

Mausoom contended that, for the vote against Defence Minister Nazim at least, the MDP would not be able to pass such “personal vendetta-based motions” and repeated his claim that the motion lacked sufficient grounds to be supported.

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Standing committee proposes merging MP living allowance with basic salary

The Standing Committee of the Parliament has decided to propose that the Public Finance Committee cancel the living allowance of MVR20,000 (US$1,297) paid to MPs, recommending that the amount be added to their basic salary instead.

MPs currently receive a basic salary of MVR42,500 (US$2,756) and a living allowance of MVR20,000 (US$1,297). They also receive an additional allowance of MVR20,000 (US$1,297) for attending committee meetings, although some MPs have declined from taking it. The total average monthly earnings for an MP comes to MVR 82,500 (US$5,350).

Chair of the Standing Committee, Jumhooree Party (JP) MP Abdulla Abdul Raheem stated, “Article 102 of the Constitutions says that the parliament can decide on these salaries. That is why the committee is making this recommendation to the Public Finance Committee.”

Article 102 of the Constitution states: “The president, vice president, members of the Cabinet, members of the People’s Majlis, including the speaker and deputy speaker, members of the judiciary, and members of the independent commissions and independent offices shall be paid such salary and allowances as determined by the People’s Majlis.

Abdul Raheem further stated that although the basic salary would then increase to MVR62,500 (US$4,053), the take-home pay would be less than that for an average MP.

“An MP will be getting a take-home pay of MVR58,135 (US$3,770), while the Deputy Speaker will get MVR71,000 (US$4,604) and the Speaker will get MVR73,150 (US$4,744). An MP’s pay has to be equal to that of a High Court judge, while the deputy speaker’s salary is equivalent to the pay of a Supreme Court judge. The Speaker will be paid at the same level as the Chief Justice of the Supreme Court,” Abdul Raheem explained.

“We have not really increased our salaries. We are just streamlining decisions on the matter which have been previously made in parliament. We will not be taking a penny more than now. It is only the salary structure that we are altering.”

When asked about the impacts the change in amount of the basic salary would have on pensions, Abdul Raheem responded saying “No change will come to it at all. Yes, the living allowance will be merged and made as part of the basic salary. However, the pensionable pay will remain at MVR42,500.”

Meanwhile Dhivehi Rayyithunge Party (DRP) MP Abdulla Mausoom told Minivan News today that he personally did not support the living allowance amendment.

“The public is often concerned about MPs’ salaries and privileges. I don’t think the parliament should be so often adjusting our pay in this manner. DRP always gives its members a free whip as far as MP’s privileges are concerned, so I can confidently say that I will not support this change,” he said.

Mausoom added that if the living allowance was merged with the basic salary, one notable impact would be that the take-home salary of an MP would be somewhat decreased.

“Seven percent of basic pay is deducted as pension, and then the state matches it with an equal part. If the living allowance is included in the basic pay, it would then become part of the pensionable wage.”

“It’s not about whether the pay is going higher or lower. I don’t think we should keep on adjusting our pay up or down,” Mausoom said.

Minivan News tried contacting MP Ahmed Nazim and MP Ahmed Amir. Both members were not responding to calls at the time of press.

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

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

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

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

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

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

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

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

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

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

MCC “long history” of debt

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

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

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

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

Dhiraagu debt

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

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

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

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

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

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

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

STELCO permit dispute

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

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

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

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

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“Technical problem” prevented former President Nasheed from leaving, Immigration Department claims

Former President Mohamed Nasheed was prevented from leaving the country yesterday (December 21) to visit his ill father in Bangkok, Thailand due to a “technical problem,” the Department of Immigration and Emigration has claimed.

Nasheed was told by immigration officials on Friday morning that his passport was held because of a court order by the Hulhumale’ Magistrate Court that had been sent to the department on December 18 imposing a travel ban on the former president.

The formerly ruling Maldivian Democratic Party (MDP) presidential candidate is currently on trial at the Hulhumale’ Magistrate Court over charges of illegally detaining Chief Judge of the Criminal Court Abdulla Mohamed in January this year.

However, on December 18, the Hulhumale’ Magistrate Court authorised the former President to travel overseas between December 19, 2012 and January 6, 2013. The letter granting permission to travel was signed by Magistrate Hussain Mazeed.

Following the incident on Friday morning, the Hulhumale’ Magistrate Court confirmed to local media that the Immigration Department was informed of the decision on December 18.

In a statement later in the day, the Immigration Department said the court order lifting the travel ban was received and entered into the system.

However, Nasheed was told his passport had been withheld due to a “technical problem with the system,” the Immigration Department claimed.

“The issue has now been identified and fixed a short while ago,” the statement read. The department did not elaborate on the nature of the “technical problem”.

Controller of Immigration Dr Mohamed Ali told Minivan News today that the system error “affected both arrivals and departures from 7:30am to about 2:00pm.”

He added that the incident involving the former President was “the only case” of a passport being held due to the disruption.

“The system at airport did not show the release, while the release was entered on Wednesday (December 18). It was a simple system dependent decision by the duty officer at that time.  We have apologised to [Nasheed] and all who were affected and even have a letter sent to him assuring that he can leave during the specified period,” Dr Ali said.

However, the Immigration Controller told newspaper Haveeru on Friday that Nasheed’s passport was held due to a court order.

“He cannot leave until the court orders [the passport] to be released. When he wants to go somewhere, the court will instruct us to release it within a certain period,” Dr Mohamed Ali was quoted as saying.

Nasheed was reportedly due to leave for Bangkok on a private visit ahead of his father’s surgery.

Former President Nasheed’s office meanwhile issued a statement contending the move blocking the former President’s departure was in violation of the constitution.

The statement noted that article 128 of the constitution entitles former Presidents to “the highest honour, dignity, protection, financial privileges and other privileges entitled to a person who has served in the highest office of the land.”

Moreover, article 41 of the constitution guarantees “the freedom to enter, remain in and leave the Maldives” to every citizen.

“This office condemns in the harshest terms the act by the current government to deliberately obstruct President Nasheed from leaving the country for his father’s operation,” the press release stated.

It added that the Immigration Controller’s claims in the media that a travel ban had been imposed by a court order on December 18 was a “deliberate falsehood.”

The Hulhumale’ Magistrate Court informed Nasheed’s lawyers on Friday afternoon that the Immigration Department was sent the court order lifting the travel ban.

The statement called on the government to “respect the constitution and immediately cease these attempts to harass and hassle President Nasheed.”

The former President’s office also called on the Hulhumale’ Magistrate Court to take action against the Controller of Immigration for making false claims regarding the court.

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Government cannot accommodate MVR2.4billion budget reduction: Jihad

Finance Minister Abdullah Jihad has said the government cannot accommodate MVR2.4billion (US$156 million) worth of cuts to the proposed state budget as recommended this week by a parliamentary committee review.

Speaking to Minivan News today, Jihad said that although there was room to reduce the proposed MVR 16.9 billion (US$1.1 billion) budget unveiled last month, the level of cuts recommended by Parliament’s Budget Review Committee were not feasible to run the state next year.

The parliamentary committee this week recommended an almost 15 percent reduction to state expenditure proposed for 2013 – resulting in a total budget of MVR 14.5 billion (US$947 million). The committee’s decision was met with mixed reactions from opposition and government-aligned parties who will vote on whether to approve the budget in parliament.

The committee opted to make cuts to the budget in line with recommendations from both the International Monetary Fund (IMF) and Maldives Monetary Authority (MMA) Governor Fazeel Najeeb as part of efforts to ensure a more manageable expenditure for next year.

A recent mission from the International Monetary Fund (IMF) had urged the government to implement a raft of measures to raise revenues, advising that strengthening government finances was “the most pressing macroeconomic priority for the Maldives.”

Some senior finance figures within the country confirmed to Minivan News this week under condition of anonymity that the reductions made by the budget committee were an “encouraging” development in trying to manage state expenditure, with the proposals likely to receive Majlis support.

However, Jihad said that the Finance Ministry was presently in discussion over potential cuts to state spending, maintaining that a budget of MVR 14.5 billion would not be acceptable to the state.

“If the government agrees to cut some of the budget, I don’t think we can go that level,” he said, adding that it remained too early to give an acceptable figure by which the state would approve budget reductions.

Jihad yesterday told local media that the MVR 2.4 billion in cuts proposed by the Budget Review Committee would impact on the provision of healthcare and education – two areas he claimed had been “neglected” during the past two years.

However, the finance minister said today that the budget review committee had not suggested any specific areas or sectors where the budget needed to be cut, adding there had been “no mention” of further reductions to the health budget.

Speaking to Minivan News yesterday, MP Mohamed ‘Colonel’ Nasheed of the opposition Maldivian Democratic Party (MDP) said that the MVR 2.4bn in cuts had been made largely by reducing “unnecessary recurrent expenditures” within the budget.

Nasheed claimed that the committee had looked at specific areas of the budget where “fat” could be cut from state expenditure without directly impacting services.

“What we proposed was that there could be reductions to internal and external transport [for government employees],” he claimed. “We have big delegations going abroad at present. What we have called for is a 50 percent reduction of transport costs. It is not necessary to send 30 people abroad on trip. Five people could go for example.”

Another area Nasheed claimed cuts could be more easily made was in the purchase of new office furniture that could reduce spending by some MVR 451 million in line with the costs of supplies like stationary and paper. He claimed such expenses could be reduced through more effective online governance.

Cuts were also said to have to be made in the proposed provision of specific services to islands around the country, which Nasheed claimed had never been viable considering the current economic challenges facing the Maldives.

“[President Dr Mohamed Waheed Hassan] has made many lousy promises on his tours of islands for developments that cannot be granted. We cannot work from a fantasy budget,” he claimed at the time.

Civil servant salaries were not said to be included as part of the cost cutting, according to Nasheed.

DRP view

Despite Nasheed’s claims, the government-aligned Dhivehi Rayyithunge Party (DRP) has said that cutting the budget to MVR 14.5 billion from the proposed MVR 16.9 billion would impact the provision of government services and the functioning of independent institutions at a vital time.

DRP Deputy Leader and MP Dr Abdullah Mausoom claimed therefore that the party would wait for the government to decide whether it could function during 2013 with a reduced budget of MVR14.5 billion, before deciding whether to back the changes in the People’s Majlis.

“We need to know whether the government thinks it can manage to function with this MVR 14.5 billion. If it can then we would have no problem,” he told Minivan News yesterday.

Mausoom said that considering the cross-party composition of the Budget Review Committee that approved the cuts, support for the amendments in the People’s Majlis could prove likely.

Mausoom also contended that the “drastic” nature of the proposed reductions had raised concerns about whether funding would be distributed “fairly and equally”, as well as having a detrimental impact on the running of the state.

“It is a shame that such drastic reductions have been made. We have had a very different year [in 2012] to other years with the change of government. With 2013 set to be a presidential election year should the budget be squeezed as a result of political rivalry,” he stated.

Mausoom said that of noticeable concern was how the budget cuts may potentially impact the work of independent institutions that he said would be increasingly vital over the course of a contentious general election next year.

He added that a wide number of independent institutions in the country had already gone on record to address concerns about how the present budget would impact on their operations.

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State guarantee for GMR to obtain bank loans had no limits: Attorney General

Attorney General (AG) Azima Shukoor has claimed that a loan guarantee provided by the former government to infrastructure group GMR would have allowed the company to obtain finance without limitation.

According to local media, the attorney general has alleged that such a loan agreement would have contravened the country’s financial regulations unless approved by parliament at the time.

However, her claims have been dismissed by former Attorney General Ahmed Ali Sawad, who claimed that the agreement was conducted within state laws.  Sawad helped oversee the agreement between GMR and former President Mohamed Nasheed’s government back in 2010.

GMR’s concession agreement was terminated by the Maldives government  late last month after it decided – citing legal advice – that the sovereign contract was invalid from the outset.

Speaking to Parliament’s Public Accounts Committee yesterday (December 19), Shukoor revealed that the Maldivian state had agreed under the cancelled contract to act as a guarantor for all loans obtained by GMR under its agreement to develop Ibrahim Nasir International Airport (INIA).

According to the attorney general, this provision had been approved despite not being part of any senior finance agreement.

Shukoor added that under the primary agreement between the state-owned Maldives Airports Company Limited (MACL) and GMR, should MACL fail to make any repayments, the Maldivian state would have to cover any resulting costs.

“[The state] is not part of the senior agreement, thus to act as guarantor for loans obtained by another group – whether this was done with approval or not – would be to give a ‘blanket’ guarantee. I don’t think this can be permitted. I don’t believe that even the Public Accounts Committee would do that,” local media reported Shukoor as saying.

The agreement, which states that the Maldivian government is responsible for all loans obtained by GMR, was made with the approval of former Attorney General Sawad, Shukoor said.

According to Shukoor, Sawad had permitted the agreement in writing, concluding at the time that the deal would not result in any legal problems.

She also claimed that approving the agreement without parliament’s approval was in violation of the Finance Act.

“Financial guarantees given by the state should have limits. We are signing an agreement allowing future groups to obtain as much money as they want under our guarantee – I don’t believe that this is a valid legal concept,” Shukoor was reported to have said.

Responding to Shukoor’s comments, Sawad today told Minivan News that he “did not believe” there had been a violation of any law whilst he held the position of attorney general.

“I deny her claims, although I’m not actually sure what her claim is. I don’t think she knows what her claim is,” he said.

“She [Shukoor] needs to figure out if it was a guarantee or not a guarantee, because in the meeting she said that it ‘was a guarantee’ and then said that it was like a guarantee’.  Regardless of whether or not it was a guarantee, the whole thing is irrelevant as she has stated the GMR contract is void ab initio (invalid from the outset),” Sawad claimed.

GMR’s tender agreement to develop INIA was overseen at the time by legal and financial experts including the International Finance Corporation (IFC) – a World Bank entity.  The deal also obtained the certified approval of former Attorney General Sawad.

Attorney General Shukoor was not responding to calls from Minivan News at time of press.

Speaking to the committee yesterday, local media reported Shukoor as stating that Singapore’s Axis bank had permitted GMR to obtain loans worth $386 million, of which GMR had taken $165 million. Shukoor highlighted that should GMR fail to repay this loan, then the government would have been required to meet any resulting costs.

She stated that if the government found itself unable to pay back these loans, the image of the state will be damaged, leading to potential implications for securing future finance.

“When we think about taking legal action in relation to this matter, we see that the head state prosecutor has advised that signing that agreement should not cause any legal problems. So it becomes something the state has to honour,” she added.

Despite the former Attorney General approving the agreement, Shukoor stated that government has a strong legal argument over the loan issue, whereby under the Public Finance Act, the government cannot act as a guarantor without the parliament’s approval, which was allegedly not obtained.

“The State is acting as the guarantor to the loans taken based on the transactions between GMR and Axis Bank. I believe that is not something permitted under the Finance Act. It is like a blanket sovereign guarantee. We may not be able to classify it as a sovereign guarantee. But we are seeing an assurance given by the State,” Shukoor was quoted as saying by local newspaper Haveeru.

GMR bid qualification

Meanwhile, Chief Financial Officer (CFO) of GMR Airports Sidharath Kapur today rejected comments made by President’s Office Spokesperson Masood Imad in Indian media alleging that the company did not originally qualify as a bidder to develop INIA in a technical evaluation process.

Masood was quoted in the Business Today publication as claiming that the technical evaluation committee during the bidding process acted under pressure from former President Mohamed Nasheed, who then qualified the GMR Group for the project.

In response, Kapur said that the company had won the project in an “open and transparent” bidding process, stating that GMR had qualified in the technical, financial and legal evaluations.

Kapur noted that the bidding process was supervised by the International Finance Corporation (IFC), and that the IFC had successfully handled such public-private partnerships in the airport sector in many countries.

“While other bidders opted for the ‘earn and pay’ route, the GMR consortium adopted a ‘pay and earn’ strategy, and hence paid $78 million up front to the Government of Maldives,” he added.

Kapur also attacked the present government’s handling of the GMR issue, alleging that the resulting arbitration case to decide on compensation owed to the company from the contract cancellation could have serious financial ramifications for the nation.

“Compensation believed owed to GMR due to the illegitimate cancellation of the contract by the government of Maldives may put a significant and avoidable financial burden on the people of Maldives,” he stressed to Business Today.

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Decision to halt live programme not politically motivated, state broadcaster claims

The Chief Operating Officer (COO) of state broadcaster Television Maldives (TVM) Mohamed ‘Mondhu’ Asif has said that yesterday’s decision (December 19) to cease transmission of the live show ‘Thafaas’ was not politically motivated.

Speaking to Minivan News Today, Asif dismissed allegations circulating on social media alleging that the programme was halted following a direct order from Dr President Mohamed Waheed Hassan, claiming the decision was taken over a violation of “editorial policy”.

“I can confirm you that no order was sent from either President Waheed or any governmental authority. We are now an independent television station as under the Maldives Broadcasting Corporation Act,” he said.

Asif admitted that the programme had been halted during a live telecast, but claimed the decision was made over concerns that the show’s content had violated the station’s editorial policy.

“We had done that previously as well. As a principle, in a live television programme, if [the show’s content] violates the editorial policy set out by the company, we would usually halt the telecast of that programme,” he explained.

Asked if any action may be taken against members of staff over the issue, Asif explained that TVM had only decided to halt the yesterday’s live broadcast at present. He added that TVM management would need to assess in future how guests were briefed over what they could and could not speak about on the state broadcaster.

During the terminated broadcast, Feydhoo constituency MP Alhan Fahmy and Progressive Party of Maldives (PPM) council member and a local lawyer Ibrahim ‘Wadde’ Waheed had been invited to reportedly discuss current parliamentary issues.

Twitter response

Despite Asif’s claims that the show was taken off air in line with concerns over editorial policy, the host of the ‘Thafaas’ show, Ali Shamin, yesterday used his personal twitter account tweeted to claim – “I’m done with this, it’s all politics,”.

One of the guests, MP Alhan Fahmy responded to the tweet urging Shamin to “make it clear” for the public about what happened.

“[Please] make it clear to the public. [People] need to know what happened! [Don’t] worry about the job,” read MP Fahmy’s twitter response to Shamin’s tweet.

Speaking to Minivan News, Communications and Advocacy Manager of local NGO Transparency Maldives, Aiman Rasheed Ibrahim said that the NGO had noticed that “an incumbent government had always had the opportunity to unduly influence the content of the state media [in the country]”.

Transparency Maldives had previously conducted a media monitoring programme back in 2011.

“Perhaps the new legislation may mean state influence may not be as extreme as was the case prior to the ratification of the legislation, but the ground reality is that an incumbent government has always had the opportunity to unduly influence the content of the state media,” Rasheed suggested.

When contacted by Minivan News today MP Alhan Fahmy said that he was very busy and had already given information about the matter to private broadcaster Raajje TV.

The MBC has been previously involved in a protracted legal battle against former President Mohamed Nasheed’s administration over whether the executive – via the Maldives National Broadcasting Corporation (MNBC) – or parliament should have responsibility for overseeing state media.

The MNBC was established by Nasheed to run the state media, removing its employees from the jurisdiction of the Civil Service Commission (CSC). In 2010, the then-opposition majority parliament created MBC and demanded the transfer of MNBC’s assets to the new body, which Nasheed’s government refused to do, alleging political partiality on behalf of the MBC board.

Following the controversial transfer of power that saw President Mohamed Waheed Hassan take office in February, MBC was granted control of the state broadcaster.  On February 7, the channel – then called MNBC one – was renamed TVM.

Meanwhile, fellow state broadcaster Raajje Radio was re-branded as Voice of Maldives. TVM and Voice of Maldives were used as the names for the two channels during the autocratic 30-year rule of former President Maumoon Abdul Gayoom.

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