Category: Politics

No response to requests for Commonwealth assistance with inquiry, alleges Foreign Ministry

The Foreign Ministry has issued a statement in Dhivehi claiming the Commonwealth had not answered the government’s requests seeking expertise for the Commission of National Inquiry (CNI).

The CNI was set up by President Dr Mohamed Waheed Hassan to investigate the controversial change of power on February 7 which the ousted Maldivian Democratic Party (MDP) maintains was a coup d’état orchestrated by remnants of the former dictatorship, funded by several resort interests and carried out by mutinous police and military units.

The Commonwealth Ministerial Action Group (CMAG) on April 16 challenged the independence of the commission, urging the government “to review immediately the composition and terms of reference of the Commission to make it genuinely independent, credible and impartial. CMAG reiterated the Commonwealth’s offer to provide assistance in this regard.”

However in its statement yesterday, the Maldives Foreign Ministry claimed “when the inquiry commission was set up on February 22, this ministry requested the Commonwealth for expertise. This ministry sent the terms of reference for such an expert to the Commonwealth. However, the Commonwealth has not sent an answer to the request to this day.”

“The Maldivian government has previously agreed to the Commonwealth Ministerial Action Group’s call for international expert assistance as per the CMAG statement. Hence, the Maldivian government requests an international expert for the inquiry commission in the near future with Commonwealth’s support,” the Ministry stated.

Spokesperson for the Commonwealth Secretariat, Richard Uku, said that CMAG had noted during its teleconference on March 15 that while the CNI had commenced work, “it had failed to secure cross-party support.”

“[CMAG] Ministers acknowledged that international assistance had been requested, and noted that the Commonwealth could be of potential assistance,” Uku said.

Following a visit to the Maldives by the Secretary-General’s Special Envoy, Sir Donald McKinnon, the Commonwealth had discussed the provision of a senior judicial advisor to the CNI, Uku explained.

“Draft terms of reference for the adviser were agreed with the Government of Maldives, and preparations made for the selection and placement of a Commonwealth adviser. However, by this time it had become amply clear that the existing composition of the Commission did not enjoy broad political acceptance. The Secretary-General’s Special Envoy consequently focused his discussions with parties on attempting to facilitate agreement on this matter,” he said.

“At their meeting on 16 April, CMAG ministers were concerned that the Government had not made any moves to revise the composition of the CNI in a manner that would enhance its credibility. CMAG accordingly asked for the composition and terms of reference of the CNI to be reviewed in order to make them generally acceptable.

“Pending such a review,” he concluded, adding that the Commonwealth remained “ready to assist the Commission as soon as broad-based political agreement is reached on its composition and terms of reference.”

Rising rhetoric

In its concluding statement on April 16, CMAG warned of “stronger measures” against the Maldives “should the composition and terms of reference of the Commission not be amended within four weeks in a manner that is generally acceptable and enhances its credibility.”

Uku told Minivan News last week that while the Secretariat would not speculate about what “stronger measures” might entail, a range of options were available to CMAG “including suspension from the Councils of the Commonwealth”.

Figures in the new government and MPs of the new ruling coalition have reacted angrily in parliament and in local media to the deadline, possibility of Commonwealth suspension and accompanying international censure.

Haama Daily reported State Minister for Foreign Affairs and daughter of former President Maumoon Abdul Gayoom, Dunya Maumoon, as questioning CMAG’s impartiality, claiming their response was based on “incomplete information” and stating that it was “very apparent that CMAG is not aware of Maldives’ laws and regulations.”

President Waheed’s political advisor, Ahmed ‘Topy’ Thaufeeq, posted on Twitter that the Commonwealth “has no right to call on Maldivian govt to hold ‘early’ elections against the country’s constitution.”
“CMAG can take whatever action it wants if the Maldives does not hold early elections against its constitution. Go ahead if that is democracy,” Thaufeeq stated.

State Minister for Tourism, Ahmed Shameem, was reported in newspaper Miadhu as accusing the Commonwealth of showing contempt for the Maldives constitution, claiming that “some entities of the United Kingdom are trying to shatter the Islamic unity of the country.”

“Everyone wants their puppet to rule the country. Nasheed ruled Maldives as a puppet of the United Kingdom. Nasheed is ready to destroy the Islamic unity of Maldives,” Miadhu reported Shameem as saying.

State Minister for Fisheries, Fuwad Gasim, also alleged in Miadhu that “Most foreign ministers sitting in CMAG would not even know the colour of the Maldivians.”

“A group like that all of a sudden releases a statement listening to only one party through a teleconversation and comments on issues. This is not how responsible organisations do things,” Fuwad claimed.

Fuwad said that a statement released by the Commonwealth after “thoroughly considering what has happened in Maldives” would “differ a lot from the original statement.”

“There are countries in the Commonwealth that know what happened on February 7, and haven’t said it was a coup,” he said.

Fuwad added that India had been observing the events from the day they unfolded, and that all political leaders were in touch with Indian High Commissioner D M Mulay.

“They were regularly updating Mulay about the events,” he said. “So I believe Mulay had been observing the events of February 7 and he would have said whether it was a coup or not. India was the first country to recognise the new government, so how could we give credibility to a report made by those who were  too far away?”

Meanwhile, speaking in parliament today, Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed called on the government to preemptively withdraw from the Commonwealth.

“There is no reason to have international relations with a group like this, who don’t even know how to ensure justice, he said. “I propose to disaffiliate ourselves from the Commonwealth for now.”

MP Muththalib from the Adhaalath Party accused CMAG of being “a weapon used to destroy the religion of this country.

“I do not believe CMAG has any right to call on us to hold early elections. We should consider the countries that are doing things for us,” he said.

“If the current government feels that disassociating with CMAG or the Commonwealth is the best thing for this country, I am in full support for this Majlis to pass such a motion.”

The MDP released a statement claiming it was concerned that attempts to discredit international bodies locally would lead the Maldives down the path of international isolation – “the route of Myanmar’s junta, or Zimbabwe or Fiji” – and reiterated its calls for Dr Waheed to step down and trigger early elections under the Speaker, or agree to amend the Constitution to provide for early elections before the end of 2012.

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MPs debate leaving Commonwealth

Members of parliament backing President Mohamed Waheed Hassan have called on the state to withdraw the country’s membership from the Commonwealth, during a debate on a resolution forwarded today.

The resolution that sparked the debate was forwarded by Maldivian Democratic Party (MDP) MP Ibrahim ‘Bonda’ Rasheed, “condemning” the current government’s failure to adhere to the calls of Commonwealth Ministerial Action Group (CMAG) concluding statement on the Maldives, notably the call for early presidential elections in 2012.

The CMAG statement also noted that it will consider “further and stronger measures” against the Maldives unless the composition of its Committee of National Inquiry (CNI) was revised in the next four weeks.

Withdrawing Commonwealth membership

Speaking in the debate, Dhivehi Qaumee Party MP Riyaz Rasheed called for the Maldives to withdraw membership from the Commonwealth “for now”.

“We don’t want to, but there is no reason to have international relations with a group like this, who don’t even know to ensure justice,” he said. “I propose to disassociate  ourselves from the Commonwealth for now,” The MP said.

MP Rasheed has been highly critical of the Commonwealth and also Queen Elizabeth, who is the ceremonial head of the Commonwealth.

During a diatribe on DhiTV in March, he argued that the British public had funded the Maldivian Democratic Party (MDP) in return for the establishment of churches in the Maldives, and also alleged that the UK hated the Maldives for gaining its independence.

Rasheed went onto criticise Queen Elizabeth stating, “After 50 years, the English Queen, she is physically challenged. But she is still the Queen, and if she wants she can remove the Prime Minister. Where is democracy? Where is democracy? That is not a democracy.”

Also speaking in the debate, MP Muththalib from the government-allied and religiously conservative Adhaalath Party, said that international organisations should ensure that their calls fitted with the constitution of the country and Islamic virtue.”

“CMAG should not be a weapon used to destroy the religion [Islam] of this country. The United Nations and all the other international organisations including the United States and India have accepted this government, “ he claimed.

“I do not believe CMAG has any right to demand our country hold early elections. Also, we should consider those [countries] that do things for us,” he added.

Muththalib said he would fully support the Maldives’ withdrawal from the Commonwealth if the government of President Waheed Hassan felt it was in the best interests of the county.

“If the current government feels that disaffiliating with CMAG or the Commonwealth is what is best for this country, I am in full support for this Majlis to pass such a motion,” he reiterated.

Deputy Parliamentary Group leader of former president Maumoon Abdul Gayyoom’s Progressive Party of the Maldives (PPM), Ilham Mohamed, stated that there were no stipulations in the Constitution calling for an early election, and that one could only be held after amending the constitution.

He argued that that the Maldives should “immediately” withdraw its membership with the Commonwealth.

“I am saying this very clearly. I call on President Mohamed Waheed Hassan, who is in charge of this state, to carry out what ever necessary measures that needs to be taken to disaffiliate from the Commonwealth. We are ready to part with Commonwealth,” MP Mohamed said.

MP Mohamed sent a warning to the current government stating that the the government decides to hold early elections, his party would withdraw its support to the government.

“Elections will be held on 2013. Or else we won’t be supporting the government. [No one] can hold an election before 2013. I am saying it very clearly. Be it Commonwealth or any other country that calls for it, no one can hold an early election,” he said.

MDP response

MDP MPs argued that the government should adhere to the calls of CMAG and that early elections should be held in 2012.

The opposition MPs also expressed concern that an inter-governmental organisation such as the Commonwealth had said that it would consider taking action against the Maldives.

Speaking in the debate, MDP MP Eva Abdulla, who was recently elected to the Inter Parliamentary Union (IPU)’s standing committee on Women Parliamentarians, stated that CMAG did not represent the foreign ministers of just nine countries but rather the entire 54 countries of the Commonwealth.

MP Abdulla also stated that when government officials said that the members of CMAG did not even know the “skin colour” of the Maldivians, such a statement was also directed at individuals such as the Foreign Minister of Bangladesh.

“When we make such statements we are not harassing the Ministers, but our own peaceful relations with neighboring countries,” she said.

She also reiterated that if the Commonwealth suspended the Maldives, it would have a great impact on the ordinary citizens of the country.

MDP MP Abdul Ghafoor Moosa, of the Kulhudhuffushi North constituency, said that the Maldivian people had come to a “fork in the road” over the issue of early elections. He also stressed on the importance of adhering to the calls of Commonwealth.

“We don’t have the capacity to stand up against international bodies such as the Commonwealth, ASEAN and the SAARC. If we stay ignorant [of the calls of Commonwealth] in our greed for power, the ordinary citizens of this country will suffer,” Ghafoor said.

MDP MP Mohamed Riyaz during the debate expressed concern that some parliamentarians were accusing the Commonwealth of trying to destroy the Islamic faith of the Maldives. He also expressed concerns about possible impending Commonwealth action against the Maldives.

Earlier, President Waheed’s spokesperson Abbas Adil Riza told Minivan News that although the government was not currently seeking to reassess its Commonwealth membership, it was concerned over the language in the CMAG statement.

“We condemn the language used and the foreign minister has conveyed this as well,” he said. “If this language continues, we will look to consider our position [in the Commonwealth],” said Riza at the time.

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Covering Kaashidhoo’s ‘buy-election’

When I arrived on Kaashidhoo Island on the evening of Friday April 13, the constituency’s parliamentary by-election campaign was already going full swing.

A billboard of Jumhooree Party (JP) candidate Abdulla Jabir, as tall as the island’s coconut palms, dominated the harbor front. Numerous red flags in support of Jabir and yellow flags in support of Maldivian Democratic Party’s (MDP) Ahmed ‘Dhonbiley’ Haleem were strung from every harbor light, tree and café on the beach. The island rang with the cacophony of campaign music and speeches.

The crescent shaped island of Kaashidhoo lies 88 kilometers north of Malé city. Densely forested, it is home to a population of 1700 people, most of them farmers. Together with Gaafaru Island to the south, Kaashidhoo Island comprises one of the 77 parliamentary constituencies in the country. Its previous MP, Ismail Abdul Hameed, was removed from his seat in February 2012 after being found guilty of corruption.

My colleague Daniel Bosley and I had come to observe the by-election, scheduled for the following day, April 14.

During our two day visit to Kaashidhoo, we gathered testimonies from islanders which revealed a culture of extensive vote-buying. Instead of winning votes on the strength of their legislative agendas, islanders told us both candidates handed out cash, often in the form of investment in local businesses and financial assistance for medical expenses.

We had hitched a ride to Kaashidhoo with Dhonbiley’s campaign team. The speed boat was full of burly young men who said they were Dhonbiley’s security.

“The situation is pretty bad,” a curly-haired man had told us. He estimated there were more than 30 policemen on the island for the vote. The night before, a fight had broken out between Jabir and Dhonbiley’s supporters, leading to one man’s arrest.

The by-election was the first poll since the controversial transfer of power on February 7. The MDP alleged President Mohamed Nasheed had been deposed in a coup d’état, and had called for fresh elections.

New President Dr Mohamed Waheed Hassan’s administration meanwhile maintained that the country’s institutions, including the elections commission, were not ready to hold free and fair elections. Hence for many, the by-election was a test of the country’s capacity to hold peaceful polls.

Our contact on Kaashidhoo was 18 year-old Ahmed Fazeel*, a student living in Male’, who greeted us when we arrived. He told us we would have to wait for accommodation as the island’s guest-houses and rented rooms were full for the night.

Resort workers and islanders living in Male’ had come back to Kaashidhoo for the vote. Fazeel said more than eight speedboats had ferried people from Male’ to Kaashidhoo that day alone. As we sat in Fazeel’s front yard among stone-apple and mango trees, he told us tensions were high on the island.

“There’s a lot of conflict. Political competitiveness has become extreme to the point people are at each other’s throats,” Fazeel said. “I will vote for Dhonbiley because he gave my aunt medical assistance.” His aunt has a common blood disorder in the Maldives, Thalassemia.

In the distance we saw JP leader and business tycoon Gasim Ibrahim leading a march of men, women and children clothed in red, chanting slogans in support of Jabir. Gasim and Jabir had laid the foundation for a city hotel to be built on the island.

Local media had reported the hotel was a Rf 34 million (US$2.2 million) investment. Jabir pledged the hotel would be completed within 18 months and that a Kaashidhoo-based company would manage the hotel. He had also established a state-of-the-art football pitch on Gaafaru Island on April 9.

“We cannot trust Jabir, he has laid many foundations like that, in his previous constituency as well,” Fazeel’s uncle Mohamed Saleem* told us. Smoking a cigarette, he said he had initially supported Jabir. The MDP had fronted Jabir as a candidate until he swapped parties after the transfer of power.

“Jabir only donated six-air conditioning units to the mosque. But Dhonbiley donated over Rf 100,000 (US$6500) rufiya,” Saleem continued. “Also, Jabir first said he will build a resort, then said a 5-star luxury hotel, and now it’s simply a guesthouse.”

That night we met Mohamed Shahid* an MDP supporter, in a dimly-lit cafe for dinner. A TV on the cafe wall showed scenes of yellow-clad MDP supporters marching in support of Dhinbiley through the narrow streets of Kaashidhoo.

Shahid, 21, made a living from diving for sea-cucumbers. For him, the biggest problem the island faced was a lack of job opportunities.

“The people of this island will vote for money, they don’t have any principles,” Shahid said. “The problem is that people want to force you to vote for who they support. Everyone should have the right to vote for whoever they want,” he told us. “Arguments within families have gone to the point that people are losing face.”

“Both parties are handing out cash, in the guise of extending assistance for medical care. Some people even use the money for drugs.” Shahid said.

He said heroin addiction rate was high among Kaashidhoo’s youth population.

Shahid said he had at first supported Jabir. “But Jabir does not fulfill his promises. He first approached the youth cub, Ekuverige Tharika, and gave the club Rf 20,000 (US$1300). Nothing else. But Dhonbiley gives us coffee, petrol for motorbikes and phone credit. It’s very easy. Even the island’s harbor was started under President Mohamed Nasheed,” he said.

The harbor had been damaged in the South Asian tsunami of 2004, and construction of a new harbor had started in 2012.

After dinner, we ventured out through the sandy streets of the island. Candidates had to cease campaigning for votes by 6:00pm on the eve of polling; hence, the island was fairly quiet. However, people continued to mill around the campaign offices.

Outside Jabir’s brightly lit campaign office, we met Mariyam Sheeza* , 31, who told us she supported Jabir because he had promised to bring development to Kaashidhoo.

“Jabir is building a guesthouse. We only have agriculture on the island. But this hotel will create jobs, especially for women,” she said. Sheeza said she had four children to support and the guesthouse would give her the opportunity to earn some money.

“Dhonbiley does not check on the people. He does not know if the people have a second meal in a day or whether we sleep on the floor or on mattresses,” she said. Moreover, she said Dhonbiley only worked for MDP supporters’ benefit.

“When MDP was in power, 388 farmers asked for subsidies, but Dhonbiley gave subsidies to only 150 farmers. The subsidies were only given to MDP supporters. We don’t know what happened to more than Rf 22,000,” she said.

“Dhonbiley ate the subsidies,” shouted a group of men lounging on joalis within the campaign office. At that point, a lanky man came up to us and said JP leader Gasim Ibrahim had invited us in. As we walked in, he showed me a large bloody graze on his arm. He had sustained the injury in the previous night’s scuffle. “MDP paid Rf 2000 (US$130) to some young man to beat me up,” he told me.

Gasim, a hefty bespectacled man and one of the country’s wealthiest resort tycoons, was sitting with a group of men at a broad white table under a white canvas canopy strung with red and green flags. Women served juice, eggs dyed red and sausages to supporters. Gasim said he was confident of Jabir’s win the next day.

“Jabir has already performed in Majlis. He was an MP during the formulation of the constitution. He is successful and courageous. He came with a manifesto to the people to create job opportunities and development,” he told me.

“Dhonbiley has failed in everything in his life, even running a business. People do not accept MDP anymore. They are not religious. They want to destroy this country’s Islamic social-fabric,” he said.

Gasim had been involved in the MDP’s formation, but after being jailed in 2004 he had defected to President Maumoon Abdul Gayoom’s party, and took up the position of Gayoom’s finance minister. He ran for presidency in 2008, and supported Nasheed against Gayoom in the second round of elections after no candidate managed to garner more than 50 percent of the votes.

He had served as Nasheed’s home minister for 20 days but quit, criticising Nasheed for being authoritarian.

“They are irreligious. Maldivian citizens do not support that. They cannot build idols here. Nasheed was in power by spending a lot of money, and by coercing and intimidating people. The people appreciate what we are doing for them. We know the people’s needs. We know this island needs agriculture, the other one needs fisheries, and what the youth want,” he told us. He predicted Jabir would win with over 80 percent of the votes.

Voting day arrived on Kaashidhoo with a brief but heavy rain storm. We saw Jabir, a short dark man, pass by in a car. He waved hello to us as we sought shelter under a broad Hirundhu tree on the harbor front. Daniel and I were looking for a cafe for breakfast when the storm had hit. We also saw a white van with four police officers passing by. When the rain thinned, we headed to an open air cafe near MDP’s main campaign office for breakfast.

We sat down near a group of three boys heckling a mute man to vote for MDP. A short-haired white-shirted boy said, “Jabir is a dog! What has he ever done for you?” Another threatened, “We buy coffee for you, we buy cigarettes for you. We will cut you off if you don’t vote for MDP.”

A few minutes later, Dhonbiley walked in for breakfast with MP Ahmed Easa and a group of his supporters.

“The problem is the current government came to power through a coup,” the tall former football star told us. “They want to delay early elections. They want to try and show the international community the atmosphere is not right. Tension is high. Jabir’s supporters have sprayed graffiti calling me a bastard.”

He pointed to graffiti on the building next to the cafe. The words had been sprayed over. I recalled a banner I had seen the night before that proclaimed Dhonbiley had been banished for fornication.

“My supporters have reached the limit of their patience, but I have told them to keep calm,” he told us, and said he was confident of a win that day. He also claimed Gasim had walked through the island the night before handing out Rf 4000 (US$260) for votes.

After Dhonbiley left, we overheard the boys at the next table on the phone, requesting their breakfast be put on the MDP’s bill.

The rain left shallow puddles on the sandy street that quickly disappeared in the sweltering heat. Daniel and I arrived at the polling station at around 9am. Two booths had been set up at the Kaashidhoo School and voters queued peacefully under the shade of a tree in the school yard. Two policemen sat a few meters away from the voters.

Outside, both candidates had set up exit poll booths under wide parasols, and were crossing off people who had voted. The booths were also serving drinks to supporters.

Outside the polling booths we met Aisha Mohamed*, a skinny scarf-clad girl with a mole on her cheek, wielding a large Nikon camera. Aisha, 24, was a photographer, and supported the MDP. Her dream was to open a photography studio on Kaashidhoo.

“People have to go to Male’ to take passport photos for ID cards and passports. So we asked Jabir to invest in lighting equipment and he offered a partnership,” Aisha said.

“But when he changed parties, I did not want to vote for him. I cannot change my party like I change my clothes. So the investment fell through,” she said.

Aisha took us to a juice shop near the school, which served the popular Jugo juice, a cold fruity-flavored, sugary sweet milk-blend. The shop’s owner, Amjad* offered us free drinks and said he was serving free drinks to MDP supporters. When I asked him why, he said that Dhonbiley had invested in a deep freezer for the shop.

By midday, most of the island’s registered voters had cast their ballots. The streets were calm, an atmosphere of expectancy prevailed throughout the island. The police presence was palpable. Aisha, Daniel and I saw Jabir standing in view of the school near the island’s health centre. He said he was confident of a win but declined to comment further. Outside the health centre, Aisha introduced us to her eldest brother Ahmed Azeez*, 53, a JP supporter.

Azeez worked as a laborer at the health centre. He earned Rf 3000 (US$195) per month.

“I support Jabir because he gave my daughter return tickets to India for a medical trip and Rf 10,000 (US$650) for expenses. Since she was 11 years-old, she has had lesions on her skin. She is 24 now, and she has two children. We still haven’t found a cure,” he said. He also said he hadn’t been able to gain any assistance from the government’s free health-care scheme Aasandha.

Later Aisha told me when Jabir had been the MDP candidate she had contacted Jabir for the medical assistance.

“I asked my brother to vote for Dhonbiley. But he refused. But we could have gotten that assistance from Dhonbiley too,” she said.

* Names changed

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Budget deficit “substantially” underestimated while spending still unaddressed: IMF

The Maldives has “substantially understated” its budget deficit, the International Monetary Fund (IMF) has warned, by underestimating its spending and “probably” overestimating tax revenues.

“Moreover, not all of the financing for even the approved budget has been identified, and additional risks exist as well – including the need to clear reported unpaid bills carried over from 2011 and the possible loss of lease extension payments (Rf 700 million, or US$42.4 million) assumed in the budget,” the IMF’s mission chief for Maldives, Jonathan Dunn, told Minivan News.

While the 2012 budget put the deficit at less than 10 percent of GDP, “the IMF team sees the figure as more likely to be 17.5 percent of GDP, and perhaps larger than this,” Dunn said.

“The financing gap for 2012 is thus at least 7.5 percent of GDP, or about US$160 million, and possibly substantially larger than this,” he added.

As a result, economic growth and stability in the Maldives were unlikely to be maintained “in the medium term” unless the government substantially cuts spending.

Meanwhile, government revenue for the first quarter of 2012 has fallen 15.5 percent below projections, the Maldives Inland Revenue Authority (MIRA) has reported.

Revenue from tourism land rents fell 18.6 percent on the previous quarter, however the largest contributor to the drop were the new government’s changes to resort lease extension payments, which saw a 76.1 percent drop in revenue below projected figures.

Inflation meanwhile spiked 13.4 percent in February, with the price of food increasing 28 percent.

Government revenues for the quarter has nevertheless increased 76.2 percent compared to the same period in 2011, “mainly because of the significant increase in Business Profit Tax (BPT) and Goods and Services Tax (GST) collections”, MIRA noted: Rf 361.7 million (US$23.4 million) and Rf 721.9 million (US$46.8 million) respectively.

However, Dunn warned that revenue collection by MIRA “does not provide a full picture of total revenue performance in the country.”

“Revenue from import duties – previously the single largest revenue – collected by Customs and is not reported by MIRA. Due to implementation of the 9th Amendment to the Maldives Export Import Act, revenue collection from import duties is expected to decline substantially in 2012, fully offsetting the increase in tax revenues from GST and BPT.”

Solutions?

Dunn observed that printing money would only facilitate the much-larger-than-expected 2012 fiscal deficit.

“This, in turn, would imply that national imports would be substantially larger than expected, because in the Maldives, where most goods are imported, almost any spending by either the government or the private sector turns, directly or indirectly, into import demand,” he noted.

As a result, the imbalance between the demand for dollars and the supply would become even larger, “and the MMA would likely have to supply dollars from its own reserves to meet the shortfall.”

“Usable reserves at the MMA are low, so if the fiscal gap this year is financed via money creation, it is likely that the MMA’s usable reserves would soon dry up,” he said.

Another option, Dunn suggested, was for the Maldives to borrow more money. However borrowing from domestic sources “will be difficult to achieve, as it is unclear whether the banks have much more appetite for buying treasury bills.”

Obtaining foreign grants “would be helpful but is probably not realistic.” Foreign loans, meanwhile, “would have to be considered carefully, given that Maldives already has a very high debt-GDP ratio, but they may be needed in the short run to avoid the consequences of printing money.”

Dunn emphasised that the only sustainable solution was for relevant parties to rationalise the budget by boosting revenues and cutting expenditure, despite the political difficulties.

“These may be politically difficult measures, but the consequences of not reducing the budget deficit are likely to be even more difficult,” he warned.

Furthermore, ongoing dollar shortage would not be resolved while the Maldives continued to substantially increase spending, Dunn added.

The foreign currency crisis – the bane of many of the country’s importers, who are forced to use unofficial channels outside the banking system to obtain currency necessary to purchase overseas – was exacerbated by the number of unrestricted foreign exchange licenses issued to resorts and other private businesses, “without the requirement that they hold substantial capital to back up that business.”

This practice allowed such nonfinancial businesses to conduct large-value foreign exchange operations outside the banking system, “an unusual arrangement and sustains the parallel foreign exchange market,” Dunn noted.

“In a more typical situation, nonfinancial businesses [such as resorts] would have licenses only for the exchange of small-value cash transactions and would be required to channel large-value foreign exchange transactions through the banking system. In the case of Maldives, this would substantially increase liquidity in the official foreign exchange market,” he suggested.

However, “as long as the government continues to inject substantial amounts of new spending into the economy, the foreign exchange situation in the country will not be resolved.”

Growing expenditure

Dunn emphasised that “fiscal imbalances in the Maldives have been present for many years and that fiscal adjustment remains necessary”.

Faced with increasing pressure from the IMF to lower expenditure after failed attempts in 2010 to cut the salaries of civil servants – a maneuver blocked by the Civil Services Commission (CSC) and backed the then opposition – former President Mohamed Nasheed’s administration insisted that increased revenue from the new taxes would match expenditure, and boasted that the 2012 budget was the first in many years to balance income and expenditure.

Following the police mutiny and controversial change of government in what the MDP contends was a coup d’état, spending by President Dr Mohamed Waheed’s administration has escalated as it seeks to shore up support in a fractious political environment.

Newly-announced expenditure in the last few months includes:

  • The promotion of 1000 police officers – approximately a third of the force – and plans to both recruit 200 new officers in 2012 and appoint four new Assistant Commissioners;
  • Lump sum payment of two years of allowances to military personnel;
  • An unspecified amount for an international public relations firm, to combat negative publicity and “rally an alliance of support” in the international media following the controversial change of power and coverage of police crackdowns;
  • Rf 100 million (US$6.5 million) in fishing subsidies;
  • A proposal to create two new ministries, including the Ministry of Gender, Family and Human Rights, and the Ministry of Environment and Energy;
  • The reimbursement of Rf 443.7 million (US$28.8 million) in civil servant salaries from July 1, following cuts by Nasheed’s administration in 2010. In addition, civil servant working hours have been reduced to 8am-3pm;
  • The doubling of the budget for the Maldives Marketing and Public Relations Corporation (MMPRC) to US$S4.5 million.

Lost income has also increased, with MIRA warning in March of unrealised revenue from the new government’s recent decision to accept resort island’s lease extension payments in installments, an amendment that former Tourism Minister Dr Mariyam Zulfa contends was pushed through by several local resort owners with vested interests, that immediately cost the treasury US$135 million.

In March, MIRA anticipated receiving a total of Rf375 million (US$ 24 million) for lease extensions, however the income received dropped to Rf23 million (US$1.5 million) as a result of the decision.

Meanwhile today the publicly-owned State Trading Organisation (STO) dropped legal attempts to reclaim a US$1.2 million debt owed by the Meridian Services owned by MP Abdulla Riyaz of the new ruling coalition. The STO justified the decision in a letter to the court, by stating that it did not have enough board members to meet quorum and make decisions.

In a bid to address spiralling costs, the government is reviewing the Aasandha universal health scheme introduced by Nasheed’s administration on January 1 this year, which “is and will always be completely financially unsustainable in a country such as the Maldives”, according to President Waheed’s Special Advisor, Dr Hassan Saeed, in an article for newspaper Haveeru.

“The introduction of unrestricted, universal free healthcare with no agreed regulation or management was an act of folly, recklessness and irresponsible political immaturity that rivals any of the actions of Mr Nasheed’s administration,” Dr Saeed contended.

“And what’s more he knew this but still went ahead with it. And the consequence is that we now have the IMF breathing down our necks and a budget deficit that threatens to derail all government social programmes,” Dr Saeed wrote.

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Maldivian NGOs call for “immediate changes” to inquiry commission

Four NGOs working under the banner ‘Thinvana Adu’ (Third Voice) have urged President Dr Mohamed Waheed Hassan to “bring immediate changes to the Commission of National Inquiry (CNI) so that it gains public trust and confidence and is able to achieve its objectives.”

Transparency Maldives, Maldivian Democracy Network, Democracy House, and the Maldives NGO Federation, itself representing 59 organisations, joined forces to declare that they are “deeply concerned by the recent political polarisations in the society.”

The CNI came under fire last week from the Commonwealth Ministerial Action Group (CMAG) which released a statement giving the government four weeks to reform the body established to investigate the February 7 change of power lest CMAG consider “further and stronger measures”.

“The group was of the view that the Commission of National Inquiry, established to assess the events leading to the transfer of power on 7 February 2012, is not independent or impartial, and has failed to gain sufficient support in Maldives,” read the CMAG statement.

“What we see in the Maldives today is confrontation instead of political dialogue. Because of this political turmoil is increasing in the country,” said Aiman Rasheed, representing Transparency Maldives.

“Thinava Adu believes the citizens must know what happened. Citizens must know the truth. Maldives will find it difficult to take steps forward unless we know the answers. If the Commission of National Inquiry (CNI) remains the same as it is today, we believe the inquiry cannot proceed in a way that citizens can trust or accept,” he continued.

Thinvada Adu said that they had previously written to the President on February 29 regarding the CNI as well as meeting with him on March 7. In both instances, the concerns of the group were expressed to the President. These concerns were said to have been “well received” without anything being “translated into action.”

In a press conference this morning, Ahmed Nizam of the Maldivian NGO Federation said, “Political opinion has become divided into two main thoughts since the change of power on February 7 and consequent events. Hence, we believe a third voice is very important in coming to a resolution.”

Reaction to CMAG criticism

Ahmed Thasmeen Ali, leader of the coalition government’s Dhivehi Rayyithunge Party (DRP), responded to the CMAG report by saying that the group had based their report on incomplete information.

President’s Office spokesman Abbas Adil Riza last week said that the government did not understand CMAG’s criticisms and was requesting clarification over the required changes.

In response, the NGOs amended their CNI recommendations to include the following:

  • Members of the CNI must be persons of integrity and should be nominated from groups such as the Human Rights Commissions (MHRC), the Anti-Corruption Commission (ACC), the Police Integrity Commission (PIC), the Election Commission (EC), under the guidance of the Prosecutor General’s Office.
  • The mandate and scope of the CNI must be decided by agreement across the political divide.
  • The CNI must pool technical assistance for the international community to both expedite and give credence to the process.
  • There must be opportunity for observation of the process by international actors.
  • The CNI’s finding must be shared with the Parliament and independent state institutions as well as to the public.
  • The state and its institutions must cooperate and make sufficient resources available to the CNI.

All-Party talks

Thinvana Adu also focused on the importance of continued dialogue between political parties “without preconditions”. It was argued that, in order to resolve the current crisis, all parties must be permitted to join the discussions which must be attended by key decision makers.

The India-brokered all party talks have failed to build up momentum due to squabbles over the group’s composition and agenda. The MDP boycotted the first meeting on February 20, complaining that some of the parties represented had no democratic mandate, referring to representatives of former President Gayoom’s Progressive Party of the Maldives (PPM) who at the time of the first meeting had no official representation in the Majlis.

Any MP having switched allegiance to the PPM after its formation in October 2011 was technically classed as an ‘independent’ according to parliamentary regulations. The PPM has since won its first official seat in the Majlis with Ahmed Shareef, formerly Secretary General of the Elections Commission, winning the Thimarafushi by-election on April 14.

The MDP was present at the second round of talks, at which a tentative agenda was defined without specific prioritisation, before the PPM and Dhivehi Rayyithunge Party (DRP) walked away from the meetings following the MDPs refusal to allow the Majlis’s opening session to commence on March 1.

After the eventual opening of the Majlis on March 19, the talks did resume but the latest round, again, made no progress, this time the MDP calling for the inclusion of all registered parties. Today’s Thinvada Adu statement appears to be taking a similar line.

The group of NGOs also criticised the availability of the talk’s convener Ahmed Mujthaba whose absence from the country has delayed the talks on more than one occasion. Explaining his absence after the last session, Mujthaba told local paper Haveeru, “I did not plan my life with the knowledge of the events of February 7”.

Mujthaba had not responded at time of press.

The group also stated that decisions on early elections should be decided through “participatory, transparent, political processes, via discussions amongst political parties.” Aiman Rasheed of Transparency Maldives added that this entailed any decision between parties that did not contravene the existing legal or constitutional framework.

Regarding the long term recommendations of the group, it urged legislation to enable independent commissions of inquiry to function effectively. It urged state institutions to show greater leadership and commitment to responding to the current crisis.

The group also repeated calls for the support of the international actors in the “process of democratic consolidation”.

“It is a concern that in the absence of such guidance it will be a challenge to the national institutions to nurture the infant democracy of the Maldives,” the group said.

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STO withdraws US$1.2 million case against DQP MP Riyaz Rasheed’s Meridian Services

The government-owned State Trading Organisation (STO) yesterday withdrew a case worth more than a million US dollars lodged against Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed’s Meridian Services Private limited.

The case concerned an unpaid sum of money worth Rf 19,333,671.20 (US$1,253,804.88), regarding Meridian’s use of the STO’s credit facilities.

Civil Court Judge Abdulla Jameel Moosa ruled that the case was dismissed, in response to a letter sent by the STO requesting the case be withdrawn.

Judge Moosa in his verdict stated that the court had received a letter from the STO requesting the court withdraw the case.

The letter noted that there were decisions to be made by the STO’s board of directors, and that after the “change in government”, the board did not have a sufficient number of members left to meet quorum and hold a board meeting. Therefore, the board was unable to make the required decisions, the organisation stated.

The sum of money the STO sought from Meridian Services included a sum of Rf 18,949,473.20 (US$ 1,228,889.31) for the use of STO credit facilities in payment for fuel oil, and a sum of Rf 384,198 (US$ 24,915.56) as a fine for the failure to make the payments on the date agreed in the contract made between the companies.

Initially, STO and Meridian Services made an oil trade agreement on 31 March 2010, which gave Meridian Services a credit facility worth 20 million rufiyaa (US$ 1,297,016.86) for purchasing oil from STO, and that payments had to be made within a period of 40 days.

However, in August 2010, STO lowered its credit limit from Rf20 million to Rf10 million (US$648,508.43) and shortened the payment period from 40 to 30 days.

Meridian Services sued the STO for breach of contract claiming that STO had brought in the changes to the credit facilities without giving the required notice of one month, in the event that the STO decided to change the credit facility with regard to a policy change.

However, Meridian Services lost the case after Civil Court Judge Abdulla Jameel Moosa ruled in favor of STO, stating that the STO had not breached the contractual terms agreed between the parties and that the documents the STO had submitted to the court was evident that it had brought the changes in proper compliance with the agreement.

Speaking to Minivan News, former legal director of President’s Office and lawyer Hisaan Hussain questioned whether such a big case could be withdrawn without even a board resolution.

“We are not speaking of an ordinary company. This is a public company and its making such a decision without a board resolution is a huge concern,” she said.

“STO has public share holders; they have to be answerable to the share holders,” she said.

The STO is a major supplier of general goods and pharmaceuticals to the Maldives, as well as fuel. It also supplies aviation fuel to Ibrahim Nasir International Airport (INIA).

“Political Motive”

MP Riyaz Rasheed was a very vocal critic of Nasheed during his tenure as president. He at the time alleged that Nasheed’s government had attempted to ruin his business, and when the STO had initially reduced the credit facilities in August 2010, his business suffered significant losses and forced him to fire several employees.

Riyaz was not responding to calls at time of press.

With regard to the case, Maldivian Democratic Party (MDP) Spokesperson MP Imthiyaz Fahmy alleged that the decision to drop the case was politically motivated and that the STO’s making such a decision without a board resolution was part of an ongoing campaign to “cleanse” political figures affiliated to the current “coup regime”.

“They are now cleansing all the corrupt politicians who were involved in bringing about the coup on February 7. They started doing this from day one. At first it was MP Ahmed Nazim [Deputy Speaker of Parliament], then MP Ahmed ‘Redwave’ Saleem and now it is MP Riyaz,” Fahmy said.

In late February the Criminal Court dismissed four cases of fraud against Nazim – an MP of the People’s Alliance formerly headed by Gayoom’s half brother, Abdulla Yameen – stating that his “acts were not enough to criminalise him”.

All four cases against Nazim concerned public procurement tenders of the former Atolls Ministry secured through fraudulent documents and paper companies, and included setting up several paper companies to win a bid worth US$110,000 to provide 15,000 national flags for the atolls ministry in 2003, and a similar tender worth US$92,412 to provide 15,000 national flags in 2005. A third count – conspiracy to defraud the ministry in 2003 in a similar manner to win a public tender for procuring US$115,758 worth of mosque sound systems – was also dismissed.

On February 28 the Criminal Court ruled that MP ‘Red Wave’ Ahmed Saleem – a member of Gayoom’s Progressive Party of the Maldives (PPM) – was not guilty in a corruption case filed by the state, accusing him of paying Neyza Enterprises Private Limited 50 percent of the money given to the former atolls ministry to buy sound systems for mosques in the islands.

Nasheed’s Maldivian Democratic Party (MDP) has alleged that key parts of the judiciary were in the hands of the supporters of former President Gayoom, “and now we are seeing the truth of that claim,” said the party’s spokesperson Hamid Abdul Ghafoor, following Saleem’s case.

“Dr Waheed’s regime is using the courts to settle old scores, to reduce MDP’s parliamentary majority and to wipe the slate clean for government supporters,” he claimed.

Fahmy today alleged that the courts were now “turning down cases against these people, even when the cases have been submitted by an independent auditor general.

“This is clear infringement of free and fair justice system. Now Riyaz is released from owing millions of rufiyaa to a public company, with public shareholders,” Fahmy said.

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MDP supporters march through Male’, condemn Speaker’s inaction

The Maldivian Democratic Party (MDP) on Friday marched through the streets of Male’ in support of this week’s Commonwealth Ministerial Action Group (CMAG) statement.

Former Tourism Minister Mariyam Zulfa said the march was intended to show that the people of the Commonwealth are ‘standing shoulder to shoulder’ in support of CMAG. The march was intended to demonstrate that the government’s claims the CMAG did not truly represent the people of the Commonwealth was incorrect.

CMAG met last Monday, calling again for early elections and threatening stronger measures should the government fail to improve the impartiality Committee of National Inquiry (CNI) the body assigned to investigate February’s transfer of power.

Zulfa reported that a group of around 10,000 people left the Usfangandu area at around 4:30pm yesterday, picking up more supporters as it progressed. The marchers were said to have returned to the Usfangandu area at around 6:45pm. Zulfa also reported simultaneous protests across the country.

At the start of the march, the group is reported to have headed towards the residence of the Speaker of the House Abdullah Shahid, where there was a brief pause while the protesters called for Shahid’s resignation. The group then continued past the Majlis, also stopping outside the residence of the Minister of Defence, Mohamed Nazim.

The MDP representation in the Majlis submitted a no-confidence motion against the speaker this week, arguing that Shahid had failed to follow parliamentary regulations consistently, and also that he had made decisions without adequately consulting all of the parties in the Majlis.

Zulfa explained the MDP’s belief that the speaker should have taken a leading role in pushing for fresh elections, citing the recent example of the coup in Mali, after which the speaker of the country’s legislature Dioncounda Traore assumed power and promised new polls.

“We have been very patient [with Shahid]. Now, instead of asking him for his leadership, we are asking him to resign,” said Zulfa. Responding to the president’s claim this week that early elections could be held in July 2013, Zulfa said: “We don’t call that early at all.”

“From the examples of other coup governments, we know that this is a stalling tactic,” said Zulfa.

July represents the earliest point that the president can move the elections forward under the current rules of the constitution.

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Commonwealth reiterates call for 2012 elections; government says July 2013

The Commonwealth has reiterated its call for early presidential elections in the Maldives before 2013, but said it will only consider “stronger measures” against the Maldives government should the administration fail to establish a “credible” independent Commission of National Inquiry (CNI).

President Mohamed Waheed Hassan last week responded that “early” elections would be held in July 2013, the earliest possible date allowed under the constitution, and pledged to continue working with the Commonwealth nonetheless.

Commonwealth Ministerial Action Group (CMAG) has warned it would take “stronger measures” against the Maldives government – which could potentially include suspension from the body – should the CNI’s composition and mandate not be amended within four weeks. CMAG also stressed that it saw ongoing talks between “senior” political representatives and early elections as the best way forward to maintain the country’s democratic transition.

The CNI was itself formed by Dr Waheed to independently verify the legitimacy of February’s transfer of power and the legality of his tenure as president, both of which are contested by the ousted Maldivian Democratic Party (MDP). The MDP contends that the CNI is stacked with supporters of former President Maumoon Abdul Gayoom, the country’s autocratic leader of 30 years who was displaced by Nasheed.

In a statement yesterday, the President’s Office claimed that the coalition parties making up Dr Waheed’s “national unity government” were all in support of elections being held in July 2013.

“The CMAG’s primary mandate is to defend the Constitutions of the Commonwealth member states, and the Maldivian Constitution is very clear on when Presidential elections can be held.  The government is confident that once the CMAG is fully aware of this, they will come out in support of July 2013 elections,” the statement read, also criticising the now opposition Maldivian Democratic Party (MDP) for demanding early polls.

“The MDP’s advocacy for elections earlier than July 2013 merely serves to highlight the persistent constitutional violations of the previous administration.”

The now opposition MDP, which maintains that Waheed was brought to power in a “coup d’etat”, has contended that elections could be held within several months should Waheed resign and hand his powers to Parliamentary Speaker Abdulla Shahid.

Under the constitution should Waheed resign, the Speaker would run an interim government for  maximum of 60 days followed by a presidential polls. Earlier, Waheed’s government disputed the “conditions” for an early election, on the basis of high political tensions, economic viability, capacity of the elections commission, and weak state of the judiciary.

The United States has since pledged US$500,000 in technical assistance for elections, to be made available from July 2012.

Several parliamentary by-elections were also held last weekend, in which candidates from pro-government parties came to power in the Thimarafushi and Kaashidhoo constituencies.

“Stronger measures”

The exact nature of the “stronger measures” that could be taken against the Maldives remains vague, but could include suspension from the group. Fiji – another island nation – was expelled by the Commonwealth in 2006 following a military coup. The Maldives has meanwhile been suspended from participation on CMAG.

“Each country situation that CMAG has considered in the past has had its own particular characteristics. It would not be fair to compare one situation against the other,” said Commonwealth Secretariat Spokesperson Richard Uku.

“CMAG has always sought to engage constructively with member states, and the Maldives is no exception. We would not like to speculate about what ‘stronger measures’ might be considered by CMAG if warranted, but a range of options is available to CMAG, including suspension from the Councils of the Commonwealth.”

Former High Commissioner Dr Farahanaz Faizal, who attended the CMAG meeting, has previously said that the nature of the “stronger measures” proposed against the government could potentially have serious ramifications for the Maldives ongoing membership in the Commonwealth.

Though she was not present herself at the time, Dr Faizal was led to understand that, when questioned about the possible nature of further action against the government, the meeting’s chair suggested that suspension of the Maldives from the Commonwealth would be pursued if concerns over the CNI were not met.

Despite having previously accused the Commonwealth of showing “bias” towards the MDP in calling for early elections, the government has said it remains committed to being a member of the Commonwealth.

“We wish to continue to be members in the organisation, but we only would do so under the regulations of our constitution,” President’s Office spokesperson Abbas Adil Riza said earlier this week.

Asked at the time if he was confident the government could satisfy the calls from CMAG relating to the impartiality of the CNI, Abbas again said that it would first be important to clarify what exactly was expected of President Waheed’s administration.

Ahmed Thasmeen Ali, leader of the government-aligned Dhivehi Rayyithunge Party (DRP), reportedly criticised CMAG’s investigation this week as being “incomplete” and “failing to address the views of the Maldivian people”.

Commonwealth obligations

Secretariat Spokesperson Uku claimed that the organisation’s “experience” had shown no member state wished to be placed in such a situation as to be suspended from the group.

“Commonwealth membership carries political, economic and social benefits for member states and is valued by our member states. It also carries obligations about adhering to certain fundamental political values,” he said.

“Suspension from the councils of the Commonwealth has practical ramifications in terms of a member state being excluded from official Commonwealth meetings at various levels and being barred from receiving new technical assistance in many areas.”

EU backing

Representing 54 nations, the Commonwealth’s stance on the Maldives is a bellweather for the rest of the international community. The European Union told Minivan News this week that it continued to back CMAG and its Special Envoy Sir Donald Mckinnon in pursuing early elections and an independent inquiry.

An EU spokesperson said that considering the Maldives’ recent political upheaval, it was working with the Commonwealth and UN over issues such as judicial reform. The issue of judicial reform was initially raised by former President Mohamed Nasheed, and ultimately led to his detention of Chief Criminal Court Judge Abdulla Mohamed, who Nasheed’s government alleged “held the entire criminal justice system in his fist”.

The EU spokesperson claimed that discussions on judicial matters had already been held with the Maldives minister of State for Foreign Affairs, adding that the country had also reportedly asked for Commonwealth assistance.

Former President Nasheed came under international scrutiny for detaining Criminal Court Chief Judge Abdulla Mohamed in the run up to his controversial resignation on Febraury 7 – a resignation he subsequently said was made under “duress”.

The former government detained the judge, who stands accused of several charges of misconduct, on suspicion that he was abusing his position and acting as a threat to national security. Nasheed’s government sought to resolve the impasse by appealing for help from the international community.

In a recent interview Nasheed told Time magazine that he believed the international community had been “very late” in providing meaningful assistance in assisting with the crisis.

Responding to the claims, the EU spokesperson said that the organisation had been approached “only a few days” before Feb 7 to provide assistance.

“Events then overtook Nasheed’s request,” the spokesperson said.

Government supporters are now pushing for Nasheed to face criminal charges for the arrest of the judge, which would potentially scuttle his election campaign.

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Former President Nasheed meets Indian politicians, journalists

Former President Mohamed Nasheed has met with journalists, think tanks and political and industry leaders during a visit to India to build support for early presidential polls in the Maldives.

Nasheed alleges that he and his party were ousted in a bloodless coup following a police mutiny on February 7.

The Washington Post carried Nasheed’s warning that in the absence of early elections, “Islamic radicals are gaining strength in the Maldives.”

The Adhaalath Party – a former coalition partner of Nasheed’s party – won no parliamentary seats and performed poorly in the presidential elections, “but after the coup, they have three portfolios in the cabinet, they are calling the shots in the military, and they are consolidating their position,” the Washington Post reported Nasheed as saying.

Given his government’s liberal approach to government, Nasheed expressed disappointment at the reaction of powers such as the United States to his ousting.

“We did so much to make the Maldives more liberal,” Nasheed said. “The United States could have held onto their horses for a few minutes and just asked me. To so quickly recognise the status quo, that was very sad and shocking.”

According to the Hindu, Nasheed claimed to have received a seven-page document from military intelligence services a week before the coup, warning of a plot by the former President Maumoon Abdul Gayoom to overthrow his government, “However, the officer concerned was promptly replaced [by the Army],” the paper reported.

“When I went to the military’s headquarters [on February 7], it turned out everyone was on leave; there were only about 200 people there. The 200 people there were not willing to defend the elected government; the generals, bar two, were supportive of Mr Gayoom,” Nasheed told the paper.

Nasheed said he had rejected the use of firearms by a group of loyal supporters: “I knew that was going to end either with many deaths or with my being lynched,” he said. “So I agreed to resign.”

Nasheed suggested that the international community could influence the new regime by implementing travel sanctions against senior figures, reported AFP, as “many of them have second homes in Europe.”

During his visit to India, Nasheed called on the Indian private sector to continue to invest in the Maldives, but emphasised that a stable democracy was in the interest of foreign investors.

“We want to be responsible. Even though we have been ousted in a coup, [the MDP] want to encourage businesses to continue to invest in the Maldives,” Nasheed said.

Nasheed will be meeting Indian political leadership, including Indian Foreign Secretary Ranjan Mathai, on April 23, and potentially Prime Minister Manmohan Singh, according to Indian media reports.

“We want more Indian assistance in bringing democracy back,” Nasheed told the Times of India. ”I think [elections in] August is reasonable. The more time you give the present dictatorship, the more entrenched they will get; and hence early elections are very important. The dictatorial and military regime, backed by Gayoom, should end at the earliest and should be replaced by a government elected by the people,” he said.

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