Category: Politics

Speaker calls on Majlis to speed up legislative duties as president opens parliament

As the People’s Majlis today reconvened for the first time in 2011, the Parliamentary Speaker Abdulla Shahid called on MPs to speed up the rate in which they worked to pass legislation with a very “busy” session ahead.

Shahid’s comments were made after President Mohamed Nasheed opened the year’s first parliamentary session with an address to MPs on the current state of national finances and developments.

Nasheed used his annual address in order to play up what he saw as “marked improvements“ in various national sectors, as well as warning of the need for further national budget cuts and unity amongst MPs in relation to recently formed local councils over the year ahead.

“The most important accomplishment is the establishment of local councils. Obviously, there are obstacles in the management of some of these councils,” Nasheed said during his opening remarks. “The government’s aim is to solve these complications in introducing decentralisation in a manner that does not compromise the features of a unitary state stipulated in the Constitution.”

The Presidential Address is required under the constitution to be given during the first meeting of the Majlis each year.

Nasheed claimed in the speech that he hoped that competitive parties would “not deliberately participate” in trying to sabotage the role of local councils, in reference to disputes over the location of some Atoll Council offices this week.

Speaking to Minivan News after the address, Abdulla Shahid, the Parliamentary Speaker and MP for the opposition Dhivehi Rayyithunge Party (DRP) said that today’s meeting of the Majlis was solely for delivery of the Presidential address. He added that no administrative duties were therefore carried out at the sitting.

Shahid claimed that DRP leader Ahmed Ali Thasmeen – as the head of the country’s largest political opposition – would be providing the response of his party to the president’s speech within 14 days as allowed under law.

However, in reflecting on the work ahead for Parliament when it meets next on 8 March, Shahid claimed that vital bills related to the country’s Penal Code and judiciary were among key early acts that he hoped to see passed within the Majlis.

Yet, the agenda for the next Majlis sitting expected to be unveiled within the next 24 hours, Shahid claimed that parliament had a full schedule ahead on the back of what he called a busy session last year.

As such, the parliamentary speaker added that parliament needed to speed up its work rate in the year ahead and could not afford to relax while a number of important bills had yet to be passed.

Shahid accepted however that there were challenges in passing laws, particularly in translating bills from their original English form, made in consultation with “overseas experts”, into Dhivehi to gain approval through the Majlis.

“When we look at the original English documents [of bills] they make a lot of sense,” he said. “Sometimes it is when these documents are translated into Dhivehi that they don’t always make much sense. There is a lot of work that needs to be done.”

Speaker encouragement

However, the speaker claimed that he was encouraged by the work of the parliament during 2010, despite partisan infighting that led to the resignation of the country’s cabinet at protest at so-called scorched earth politics adopted by some MPs.

“The amount of work concluded by parliament last year is quite remarkable,” Shahid claimed. “The passing of 42 bills out of a total of 52 that were submitted was quite good I think.”

The sentiments appeared to be shared by President Nasheed who believed the Majlis has helped bring about a number of improvements for infrastructure and development in the country despite overall differences.

“2010 was a year of achievement in many areas,” he said, during the speech.

Economy

Taking the economy as an example of the developments, the president claimed that after the previous budget was delivered back in December 2009, the country’s financial deficit was about Rf3.8 billion – amounting to 18.7 percent of the country’s Gross Domestic Product (GDP). Nasheed said that despite expenditure being higher than revenue on the back of recent budget cuts, the deficit as of the latest budget delivered in December 2010 was down 2.3 percent to 16.4 percent of total nationa GDP, amounting to Rf3.1 billion.

“By the end of 2010, the income revenue of the government amounted to Rf6 billion.” he said. “By 2010, the government had estimated recurrent revenue of Rf9.1 billion.”

While continuing to address financial developments, Nasheed said that the government would also aim to try and increase the value of Maldivian currency by strengthening existing monetary regulations.

“Additionally, we need long and mid-term measures for effective solutions to the economic infrastructure. According to the Strategic Action Plan, recurrent expenses and income are required to be kept in line with national income,” he said. “The government had made several efforts to achieve this target, including corporatising and privatising government services.”

In addressing the passing last year of taxation structures such as a Business Profit Tax and a Maldives Tourism Goods and Services Tax (GST), the president thanked parliament for supporting these bills.

Nasheed claimed in addition that small and medium enterprises would also continue to receive financial assistance from the government under a programme of soft loans and other financial packages designed to try and compliment schemes like business development centres.

These development centres – set up in Kulhudhuhfushi and Hithadhoo – were designed to offer training in fishing, guest houses, handicraft and agricultural training amongst other disciplines.

“Important steps taken to eliminate obstacles facing those wishing to start a business, include enabling vital information, trade licenses and permissions to be submitted and received via the Internet,” Nasheed claimed in the speech. “These will be facilitated this year.”

Agriculture

In areas such as agriculture the president said that the government was focusing on a number of regulations outlining new guidelines for catch and exporting products aimed at improving the income within the fisheries sector.

“Last year, much work was also done to develop agriculture in the Maldives. In this regard, agricultural products of 3 islands were brought out to the market, by contracting tourist resorts and food supply companies,” he said. “Moreover, efforts were made to raise the prices of poultry farming and agricultural yield through the production and marketing of locally produced goods. In addition, Rf1.7m worth of goods were made available to farmers at reasonable rates and 1,932 farmers were trained in various aspects of agriculture.“

The president claimed that this focus had also allowed for the establishment of subsidies totaling about Rf50m in order to allow 25 islands to be sufficiently capable of regularly marketing produce grown there. The focus was also expected to be backed by an Agricultural School in Laamu Atoll Gan, according to Nasheed.

Tourism

In addressing plans for the country’s tourism sector, Laamu Atoll was also highlighted as a zone that would be developed to additionally host three to four star resort properties as part of stated aims to cater for more middle-market tourism.

The president also focused on national developments in the form of land reclamation and the construction of a number of airports that were started during the previous year.

“This would introduce even greater opportunities to all the islands in the region, and multiply economic activities,” he said. “The construction of an airport in Fuvahmulah is underway and the airport in Baa Atoll Dharavandhoo is likely to reach the stage of completion by the end of 2012.”

Developments at Gan International Airport were also touched upon in the speech in relation to a local joint venture between the existing site’s management, the State Trading Organization (STO) and the Maldives Airports Company. The president expressed hope that the partnership would lead to a boost in services in and out of Addu Atoll.

Transport

The issue of transport networks was also raised during the speech, with Nasheed stating that modernisation of transport systems between the country’s numerous islands and atolls was still being planned as a vital development challenge for Maldivians.

Infrastructure

Among planned infrastructure developments, the president claimed that the government remained committed to pledges to try and provide sewerage and drinking water, along with affordable housing wider to wider numbers of the population.

“We have commenced the project of building a total of 10,000 housing units, of which 4,150 have been contracted and 1,750 of which are currently under construction,” he said. “In order to resolve the issues of congestion and lack of housing in Male’, under the first phase of Veshifahi Male’ programme, application forms are being issued for those wishing for housing. The second phase of the Gulhifalhu Project is underway and the reclamation of the 50-hectare land is scheduled to begin next month.”

A further 298 housing units were also said to be in the course of being supplied to people in areas such as Gaaf alif Atoll who still required shelter following the 2004 Indian Ocean tsunami.

Environment

Alongside these infrastructure developments, the president also used his speech to touch upon the environmental programmes that he had been a vocal campaigner of internationally – such as the Maldives becoming a carbon neutral nation by 2020.

“Various efforts were exerted by the government last year to transform the Maldives into a carbon-neutral nation. In this regard, auditing of carbon present in the Maldives and the measure of greenhouse gases emitted into the atmosphere were identified,” he claimed. “It is highly essential that we embrace renewable energy and diversify sources and techniques used to generate renewable energy. The environmental changes instigated by the emission of greenhouse gases into the atmosphere are directly linked to the life of every Maldivian.”

The tourism industry was not deemed immune to the need for greater attempts at providing sustainable initiatives, with the president claiming that sub divisionary offices of the Environment Protection Agency (EPA) would be also be established to expand their presence and influence around the country.

Health

Looking at areas such as health, the president said that over 56,000 Maldivians had been signed up to the state run health insurance scheme known as Madhana, a figure that was expected to grow during the coming year.

“The government expended over Rf144m on social protection last year in an effort to assuage the public plight of having to depend on handouts for healthcare,” he said. “Work will continue this year on increasing the number of people registered under Madhana. The government’s aim is to raise the number of Madhana clients to nearly 100,000 by the end of this year.”

Nasheed also played up the developments such as Telelmedicine in his speech, a service he claimed was currently introduced in five islands to alleviate potential strain on medical services, with a further 34 islands expected to adopt the system in 2011.

“This system would instead allow patients to benefit from the expertise and facilities of hospitals and doctors all across the world,” he said. “This service would be introduced in another 34 islands of the Maldives in the future.”

Two additional bills were also expected to be put in front of the Majlis during the coming year. According to the president, both the Health Service Bill and the Medical Negligence Bill were devised to bring important overhauls to the country’s medical services that he hoped would see them put in place as soon as possible.

Nasheed claimed that important breakthroughs had also been brought in by the Majlis in areas such as protecting rights for disabled people along with providing financial aid.

“In order to maintain social security costs at a sustainable level, a social security fund has been established and is being developed further to protect people from economic instability and insecurity,” he said. “A special budget has been allocated for this purpose.”

Education

The president claimed that “significant steps” had also been made by parliament during 2010 to finalise and roll out an amended national education programme including technical training and standards.

The measures, outlined under a new Education Bill had now been submitted to the Majlis. Despite the government’s intentions, Nasheed accepted that not all aims were as yet being made.

“Last year, I stated that our main goal for 2010 was to increase the percentage of graduates holding 5 [O-level] passes from 32 per cent to 41 per cent,” he said during the speech. “Even though this goal was not reached, the figure has now been increased to 35 percent. Performance improvements were achieved by 100 schools in 2010 over 2009. To sum up, the percentage of students who passed in 5 subjects has increased in those schools.”

The President also claimed that his government had also obtained the grandest achievement within the country’s academic history so far with the establishment of theMaldives National University.

“The university will serve the purpose of creating, preserving and disseminating knowledge and skills required for national development in cultural, social, economic and public spheres to safeguard the Maldives as a sovereign Islamic nation,” he said. “I take this moment to sincerely thank the honourable members of this Majlis for granting passage to the National University Act”

Religion

The president also used his speech to claim that 2010 had seen “notable achievements” within the Maldives in regards to strengthening religious awareness and rejuvenating Islam among the public.

To this end, Nasheed said that religious scholars had been used to provide sermons across the country, while additional mosques were constructed in 12 islands across the nation.

“Alms collection was also increased compared to last year, and the funds were used for major projects. 39 islands were selected for construction of new mosques this year, 21 of which would be funded by the state budget,” he said. “Construction of these mosques is set to begin this year, and work is being done to procure foreign assistance for the construction of another 18 mosques. In addition to those, I would like to highlight that the first Islamic bank to be established in the Maldives will be opened during this month.”

Crime

In relation to criminal activity in the Maldives, the president claimed that the number of crimes, at least reported, to the Maldives Police Service had fallen by eleven percent in 2011. Nasheed added that a new police strategy to run from this year until 2013 had also been put in place in order to try and focus additionally on emerging areas such as cyber crimes.  Drugs were said to remain a key focus for law enforcement officials.

“The efforts exerted by the government to prevent the illegal trafficking of narcotic drugs into the country have been rewarding,” said Nasheed. “This is evidenced by the reduction in the number of people reported for drug offences by 46 percent in 2010, compared with that of in 2009, according to recent Police records. Moreover, these records indicate a 40 percent reduction in the percentage of youth exposed and therefore, are highly susceptible to adopting the habit of drug abuse.”

Culture and sport

According to the president, another important area of focus for the country was deemed to be in the development of cultural and literary talent.

The inaugural Hay Festival Maldives, a sister event to the annual Hay Festival in Wales, UK, was seen as an important step in highlighting the works of local artists and writers alongside their international counterparts.

The president claimed that on the back of the event, the government was looking to try and develop local skills and talent with the aid of an Arts Council and Heritage Council during 2011.

Similarly, Nasheed praised developments made in the fields of national sports such as the success of the Maldives cricket team after its triumph in the ACC Trophy Challenge held in Thailand this year.

Gender

Raising the issue of equality, Nasheed said that significant steps had been taking to try and reduce gender discrimination.

“In this regard, a resort forum was held to promote products crafted by women and financial aid was rendered to organizations striving to encourage and emancipate women in our society to gain their rights and opportunities, and to extend and employ their potential in managing trade and businesses,” he said.

Security

Under plans outlined for the year ahead and beyond, the president said that the work of the country’s National Security Council was in the process of trying to be expanded. An office of a National Security Advisor had also been set up to extend this work including laying out marine security, identifying internal threats and improving bilateral relations.

“This action plan will be devised within 90 days forward,” the president added. “For the first time in the Maldivian history, Maldivian soldiers will participate in the UN Peace Keepers’ regiment under a contract to be signed this year.”

Political privileges

In discussing the controversial Privileges Bill that the Majlis had attempted to pass at the end of last year within the budget, the president said that he felt that revisions needed to be urgently considered in line with recommendations he had provided.

“I regard it as being highly important that the members of the Majlis receive their necessary privileges and protection,” Nasheed said. “During the history of 77 years of the Majlis, there have been several circumstances under which some respected members of the Majlis, either incumbent or resigned then, had to face various contemptible consequences concerning politics, justice and other controversies.”

In considering these potential difficulties, the president asked parliament to consider a Privilege Bill that was provided under an established and legitimate law.

Judiciary

Nasheed added that with democracy being a key aim of his government, ensuring efficient division of the different branches of the state were a key part of these goals. Amidst recent concerns addressed by some bodies like the International Commission of Jurists (ICJ) that the nation’s judiciary may not be working independently, Nasheed said he believed the role of the Majlis in trying to ensure this was increasingly important.

“A noteworthy example is the establishment of important offices that come under the judicial system in the Maldives last year,” he claimed.

“Today, my main appeal is for you endeavor to instill trust and faith in the judicial system of the Maldives and in the work of parliament. I appeal for unity in the national interests and prioritize constructive judgment and wisdom to allow for peace, progress and order in our country, without being associated with those seeking abrupt opportunities to disrupt and topple the government.”

The full address can be read here.

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Supreme Court ruling does not mean Kaafu and Shaviyani Atoll office can be relocated, says AG

Attorney General, Dr Ahmed Ali Sawad, has told Minivan News that a Supreme Court verdict overruling “contradicting” court orders issued by island courts over the relocation of some Atoll Council offices did not mean that the issue was as yet resolved.

”It [the Supreme Court decision] is a different ruling because two courts of the same level have issued two different court orders on the same issue,” said Dr Sawad. ”The real issue over the legality of the relocations still needs to be addressed within the Thulusdhoo Island Court and Shaviyani Funadhoo Island court.”

The Supreme Court of the Maldives has recently invalidated court warrants issued by the Kaafu Atoll Maafushi Island Court and Shaviyani Atoll Milandhoo Island Court that were deemed to have contradicted earlier rulings by local magistrates over the location of council offices.

This court actions occurred this week as the government come into conflict with members of Shaviyani Atoll and Kaafu Atoll councils over the decision to move their administrative offices to different locations. The government has claimed that the decisions were not within the legal powers of councilors.

The Atoll Councilors of Shaviyani Atoll moved from their Administrative Office in Milandhoo to a building in Funadhoo, which was formerly used as Atoll Office of Shaviyani Atoll. Kaafu Atoll Councilors moved from an assigned Atoll Office in Maafushi to a building in Thulusdhoo, which was also formerly used as the Atoll Office of Kaafu Atoll.

The government opposed these actions, sending police to the islands over concerns that the buildings were its own assets and needed protection.

The case was then brought in front of Funadhoo Magistrates Court, which ruled that the Administrative Office should be located in Funadhoo. This occurred two days before the Milandhoo Magistrate ruled that Administrative Office shall be in Milandhoo.

Likewise in Thulusdhoo, the island court of Thulusdhoo ruled that the Administrative Office shall be in Thulusdhoo, before the Maafushi Island Court ruled in favor of retaining the Administrative Office in Maafushi.

The Supreme Court said that after one court has ruled on a case, another legal institution of the same level had no authority to overturn that ruling. This made the later rulings invalid according to the Supreme Court.

Meanwhile, the High Court also concluded that there was no capacity for an appeal requested by the Attorney General to rule that the court order of Thulusdhoo Court.

The High Court said that there was no reason to believe that the actions of Thulushoo Court were against the law or correct procedures.

Recently Shaviyani Atoll Council’s Vice President Mohamed Arif has said the best way to solve the issue was by handing over the case to a higher court of law, ”as it is a legal issue.”

The Home Minister also told media this week that the government would let the country’s higher-level courts decide the matter.

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DRP and MDP clashes leave 10 police officers injured

Protests held last night by the main opposition Dhivehi Rayyithunge Party (DRP) and ruling Maldivian Democratic Party (MDP) erupted into violent confrontations around the capital of Male’, leaving four police officers badly injured and six others with minor injuries.

Police Sub-Inspector Ahmed Shiyam believed that police had generally managed to keep protesters – thought to represent both the MDP and DRP – apart during violent confrontations, without resorting to measures such as using tear gas to disperse crowds.

However, he confirmed that the police had suffered both serious and minor casualties in trying to subdue violence among sections of the protesters alleged to represent both parties.

The evening’s protests had began peacefully with a DRP rally being held outside the party’s head office near the artificial beach in Henveiru.

Earlier in the day, the DRP’s former Deputy Leader Umar Naseer had told the media that he expected police would begin using tear gas to try and suppress a planned march around Male’.

Following the rally, some of the protesters present were then thought to have moved towards the national flag in ‘Jumhoory Maidhan’.

However, riot police obstructed the route used by the DRP supporters as they neared the residence of President Mohamed Nasheed at Muleeage, according to the Maldives Police Service.

Eye witnesses who spoke to Minivan News claimed that DRP supporters had tried to break through police lines in an attempt to enter the restricted areas to protest.

MDP activists around that time were also reported to have gathered in front of the residence of Former President Maumoon Abdul Gayoom. The MDP protesters were reported to have called for Gayoom’s arrest, as well as accusing the DRP of attempting to gather at an area restricted for political gatherings.

Afterwards, local press reports said that DRP supporters had travelled towards former president Gayoom’s home where MDP activists were also gathered.

Police said that activists of both parties clashed and threw stones that resulted in injuries to both police and supporters.

The Protests were said to have officially ended when MDP supporters left the area around 2:00 am in the morning.

Local media have reported that while supporters from both parties were believed to have been involved in the violence, some windows of the former president’s residence were broken.

However, Sub-Inspector Shiyam said that the police had not received any reports of vandalism to the property.

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National office formation not a response to council disputes, government claims

The formation of seven national offices to oversee government projects at regional and local level is not a response to ongoing disputes with some councils following decentralisation, the President’s Office has today said.

The administrative structures of the seven national offices were formed by members of the cabinet yesterday to oversee developments within seven regions across the country to try and coordinate national developments within newly decentralised councils. The councils were themselves established after last month’s local elections.

Administering these local councils has already led to problems in some areas, with police being called in to try and work through disputes concerning the government and newly elected local councils over whether they have the right to relocate their offices.

Some opposition parliamentarians today moved to criticise the formation of the administrative offices as a contradiction to the purpose of decentralizing power to allow councils to meet specific needs of their constituents.

However, the President’s Office has said that the formation of these administrative centres were constitutionally required and not a response to developments this week that saw confrontations with police at the islands of Thulusdhoo and Funadhoo.

Press Secretary for the President Mohamed Zuhair said that the seven offices were established as stipulated under Article 71 of the Decentralisation Act as a means to oversee government development programmes and ensure budgets were being met by councils.

As a result of the formation of these offices, the President’s Office said that the cabinet had decided that all activities of the city, island and atoll councils formed during last month’s local elections were conducted through the offices.

While all these councils at “ground level” were able to meet and deliberate on local matters that affected their constituents, Zuhair said that they “technically remained” part of the national executive when it came to overseeing national developments set out by the government.

“There are budgeted programmes for each island that the government has decided to extend nationally,” he said.

Zuhair added that these seven regional offices would therefore work to oversee the administrative functions of decentralized government and any national developments undertake locally.

According to the President’s Office, the session saw the cabinet appoint individual personnel to oversee each regional office. These positions included:

• Mohamed Hunaif as Minister of State for the Upper North Province and head of the National Office for the Upper North Region

• Ali Niyaz as Deputy Minister of State for the North Province and head of the National Office for the North Region

• Hussain Irfan Zaki as Minister of State for the North Central Province and head of the National Office for the North Central Province

• Ibrahim Mohamed as Deputy Minister of State for Central Province and head of the National Office for the Central Region

• Ahmed Mujuthaba as Minister of State for the South Central Province and head of the National Office for the South Central Region

• Mohamed Shareef as Deputy Minister of State for the Upper South Province and head of the National Office for the Upper South Region

• Ahmed Adhham as Deputy Minister of State for the South Province and head of the National Office for the South Region

Although not directly related to disputes this week between the government and local councils, the president’s press secretary claimed that the offices were a means of overseeing councils were accountable nationally.

According to Zuhair, decentralisation resulting from local elections held on 5 February did not equate to granting individual councils the power to act as independent federal states.

“What we are saying is, that it is for the president to decide which state owned buildings shall be used for council offices as stipulated under the constitution,” he added.

However, the formation of the national offices was met with criticism by Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahlouf who said that opposition parliamentarians would oppose the cabinet on the issue through the courts if necessary.

“It can’t be done,” Mahlouf said in regards to the formation of the seven offices. “We went through the [local council] elections to give power to the people. No government authority can stop or control work [of the councils].”

With the majority of councils under control of the DRP and other opposition parties outside of the major residential municipal regions of Male’ and Addu Atoll, Mahlouf claimed that he believed opposition parties would oppose the national offices.

“[The decision] may go to the courts. It is something we would support. There is no need to send the police,” he said, pointing to this week’s disputes over council offices.

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Umar Naseer expects upcoming DRP protest to end with tear gas

Umar Naseer, former deputy leader of the Dhivehi Rayyithunge Party (DRP), has said the opposition party will hold a protest in Male’ tonight from 9:00pm in order to demonstrate against the perceived unlawful actions and “torture” practiced by the current government.

”The government has been constantly violating the laws, religion and has been trying to over power the local councils,” Naseer claimed. ”After the protest, we have scheduled a march around the streets.”

The claims come as political parties have this week become embroiled in disputes over the legitimacy of some local councils opting to move the location of their offices without government approval.

Naseer said that all the country’s political parties were officially invited to join its protest over the issue and also called on as many citizens as possible to join in.

The former deputy leader who was dismissed from the party in December claimed he expected the protest would likely end with authorities using tear gas.

”We call on police not to follow any unlawful orders, we know that the government have been punishing police for not obeying their unlawful orders,” said Naseer. ”We are very pleased to know that Deputy Police Commissioner Rishwan was suspended for rejecting an unlawful order, it was a good example.”

He also criticized the government for not taking ” action against any senior government officials who are alleged to have been found posing naked in pictures and video files, but taking action on journalists who reported it.”

DRP MP Ahmed Mahlouf said the intention of the protest was to defend the laws and to ”make things go right.”

”All the good things we brought to the country has been turned upside down today,” Mahlouf said. ”Tonight, we are coming out to make them right again, to uphold the religion and democracy.”

Mahlouf referred to the conflict in the islands and said it was an ”additional circle to the chain of the current government’s torture.”

”If we have to, we will not hesitate to go near Muleeage or near the Home Minister’s house,” said Mahlouf.

Mahlouf said that many police officers were encouraged not to follow “unlawful orders” after the alleged suspension of the Deputy Police Commissioner. Police have yet to officially confirm whether Deputy Commissioner Rishwan had been suspended.

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PA to boycott Presidential address to parliament

MPs from the People’s Alliance (PA) party have said they will boycott the speech to be given by President Mohamed Nasheed at the first parliamentary session of 2011.

”PA believes that the Presidential address Nasheed gave during the first sitting of the first session of 2010 was not given as stated in article 84 of the constitution,” said the PA in a statement.

Article 84 of the constitution says that at the beginning of the first parliament session of each year, the President shall address the Majlis on the state of the country, as well as present proposals for trying to improve the nation.

The PA stated that rather than giving Nasheed’s presidential address as a speech based on the state of the nation and proposals to improve the state, his last opening address was based on threatening opposition figures.

”The presidential address was a hopeless speech, thus a speech that threatened the citizens,” said the party in the statement.

PA alleged that the president had attempted to smear the respect and sanctity of parliament and also attempted to make the pubic lose confidence in their the MPs.

The party recalled the arrest of Jumhoory Party leader and MP Gasim Ibrahim, as well as PA Leader and MP Abdulla Yamin, claiming the president misused the power of the Maldives National Defence Force (MNDF) to detain them.

Criminal charges against the opposition Dhivehi Rayyithunge Party (DRP) MPs Ali Waheed and Mahlouf were said to be politically motivated, the party alleged.

”Moreover, he [the president] made false accusations about MPs, made the entire cabinet resign, called MPs ‘wild animals’, attempted to run the government with a cabinet that does not have the consent of the parliament and made the parliament face obstacles in conducting its work fully,” claimed the PA. ”[Nasheed] gave warnings about all this during his presidential address [in 2010].”

The PA also claimed that the current government has always violated the constitution and laws.

Press Secretary for the President Mohamed Zuhair told Minivan News that the decision of the opposition parties were against the national spirit.

”It is the constitutional duty of the president, not something that is initiated by the government,” said Zuhair. He added that the President will give his presidential speech regardless of whether members of the opposition boycotted it.

Zuhair said ”that means the opposition started to use National Ceremonies as political tools.”

”If they boycott the presidential address, they are betraying the citizens,” he said. ”They are the symbols of the citizens.”

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Economic stability threatened by “significant policy slippages”, warns IMF

The Maldives has suffered “significant policy slippages” that have undermined the country’s capacity to address its crippling budget deficit in 2011 and beyond, the International Monetary Fund (IMF) has warned, in a statement concluding its Article IV consultation with the Maldives.

“On the expenditure side, there have been no net fiscal savings from public employment restructuring, public sector wages will be restored to their September 2009 levels earlier than expected, and the new Decentralisation and Disability Bills will lead to considerable spending increases,” the IMF stated. “Also, the Business Profit Tax will come on stream eighteen months later than planned.”

The IMF warned that the Maldives economy was presently unsustainable, on the back of “expansionary fiscal policies” from 2004 which left the country especially vulnerable to the decline in tourism during the 2008-2009 recession.

The country’s financial deficit exploded on the back of a 400 percent increase in the government’s wage bill between 2004 and 2009, with tremendous growth between 2007 and 2009. On paper, the government increased average salaries from Rf3000 to Rf11,000 and boosted the size of the civil service from 24,000 to 32,000 people – 11 percent of the total population of the country – doubling government spending from 35 percent of GDP to 60 percent from 2004 to 2006.

While preliminary figures had pegged the 2010 fiscal deficit at 17.75 percent, “financing information points to a deficit of around 20-21 percent of GDP”, down from 29 percent in 2009, the IMF reported.

The IMF said that while it recognised “the difficult political situation facing the authorities”, “decisive and comprehensive adjustment measures” were required to stabilise the economy, allow sustainable growth and reduce poverty. In particular, it raised concern about the “lack of significant progress in public employment restructuring.”

“Efforts to strengthen the financial sector and improve the business climate will also be critical,” the IMF said, noting that private sector credit had all but stalled. However it generously conceded that the pace of adjustment “should take into account political constraints.”

The IMF’s Mission Chief to the Maldives, Rodrigo Cubero, told Minivan News that while the government had introduced the core components of a modern tax regime that would begin generating revenue from this year, these achievements were offset by new spending on legislative reforms such as the decentralisation act.

“We see bringing the fiscal deficit down as the key macroeconomic priority for the Maldives,” Cubero said. “A large fiscal deficit pushes up interest rates, thereby undermining private investment and growth, and also drives up imports, putting pressure on the exchange rate and inflation, all of which hurts the Maldivian people, particularly the poor.”

“Further efforts are still needed to reduce the fiscal deficit. Those efforts should comprise further tax reforms as well as measures to reduce expenditure and to improve the channelling of social expenditures to the needy.”

He would not be drawn into the politics of the Maldives’ economic situation, “but what we can say with confidence is that broad political support will clearly be needed both to design an economic programme and to carry it out as planned. That is why we also support as broad a spectrum of consultations with different stakeholders as possible.”

Graduation impact

The Maldives graduated in January 2011 from the UN’s ‘Less Developed Country’ designation to ‘Middle Income’, a move which reduces its access to certain concessional credit and donor aid.

Cubero said that as far as the IMF was concerned, “the Maldives remains eligible to the IMF’s concessional financing under the Poverty Reduction and Growth Trust (PRGT). The IMF follows its own rules and procedures to determine PRGT eligibility; the criteria include income per capita, market access, and short-term vulnerabilities.”

The Maldives had, he said, “made significant economic progress in recent decades, allowing it to reach middle-income status. However, given the large public debt and still very large fiscal deficit, it is very important that the financing terms for the Maldives’ public borrowing remain as favourable as possible. While reducing the fiscal deficit is imperative to maintain debt sustainability, favourable financing conditions would also help keep debt manageable.”

Confidence

In its report, the IMF was broadly confident that the Maldives could stabilise its economy in the medium term, due to the tight monetary policy of the Maldives Monetary Authority (MMA) in mopping up excess liquidity, as well as the passing of the Business Profit Tax and a Tourism Goods and Service Tax.

The economy had rebounded strongly after shrinking 2.25 percent in 2009, and GDP growth for 2010 was an estimated 4.75 percent, the IMF said, with an expected inflation rate of five percent in 2010.

As for the ongoing dollar shortage, while the IMF did not actively advocate a revision of the pegged exchange rate, it did call for “continued discussions between the authorities and the staff on this issue while being mindful of the risks involved and the impact on the poor.”

“The MMA continues to ration the supply of foreign exchange to banks, while fully meeting the demand from the central government and some state-owned enterprises,” the IMF stated. “Dollar shortages persist, and the parallel market premium has increased somewhat.”

In November 2010 the IMF delayed a disbursement under the second review of its program with the Maldives, ahead of the 2011 budget.

The delay, Cubero explained at the time, was due to the “fiscal slippages” caused by insufficient progress towards reducing the wage bill and passing tax legislation – most significantly, the Business Profit Tax.

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Adhaalath Party calls on Home Minister to withdraw Deputy Commissioner suspension

The Adhaalath Party (AP) led by Sheikh Hussein Rasheed has called on the country’s Home Minister to immediately withdraw the alleged suspension of Police Deputy Commissioner Mohamed Rishwan after media reports yesterday claimed that he had been punished for not following orders to take control of the Thulusdhoo Atoll Council’s office.

Both Police and Home Minister Hassan Afeef have yet to officially confirm whether reports of the suspension are true, yet politicians have now moved to criticize the alleged decision to reprimand Rishwan.

”We call on Hassan Afeef to leave the military dictatorship characteristics and to follow the feelings of the citizens,” said the Adhaalath Party in statement on their official website.

The reports relate to ongoing disputes between the government and some local councils over the legality of decisions to relocate their offices.

Beyond criticism of Home Minister Afeef, the party also praised Deputy Commissioner Rishwan for having shown “a great example.”

”The courage you [Rishwan] has shown for the sake of the citizens and to uphold the law is something that we will never forget,” said the Adhaalath Party in the statement.

”We call on the police not to let anything happen against the laws.”

Among changes occurring to the country, the Adhaalath Party said the most important of these was the decentralised administration ushered in by last month’s local council elections.

”As a matter of fact, it is a great change, however, the image we saw in some areas were totally different,” said the party. ”Home Minister Afeef has been trying to get police illegally involved in these issues occurring in some areas.”

The party accused the current government of manipulating the police for their own ends and violating human rights and laws.

However, Afeef yesterday told Minivan News that the position of Deputy Commissioner “is not given by me and [the matter] is not related to me.”

Police Sub-Inspector Ahmed Shiyam said he could not comment on the issue or confirm whether the reports appearing in local media were true.

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“Best solution” is to let court of law decide relocation controversy, says atoll council

Shaviyani Atoll Council Vice President Mohamed Arif has claimed that newly appointed councilors did not decide to move their administrative office to Funadhoo in Shaviyani Atoll by themselves, but rather they ”decided to do as the laws state.”

During the first meeting of Shaviyani Atoll Council held last Saturday (26 February), it was decided to move their administrative office to Funadhoo from Milandhoo in Shaviyani Atoll.

Arif said that the relocations were based on requirements outlined under national law regarding local councils and that only a superior court should rule on their legality.

However, the Home Ministry has stated that the council did not have the authority to decide where the administrative office will be held on the back of decision by other councilors also deciding to relocate an office based in Maafushi to Thulusdhoo.

Police have today sent officers to surround the Administrative Office in Funadhoo in order ”to watch over the building and any assets in it” according to Sub-Inspector Ahmed Shiyam.

”The councilors are inside the building. We are there to watch over the building,” he said. ”We also appeal everyone to respect the decision of the island court.”

Milandhoo Island court and Funadhoo Island court have each issued warrants regarding the issue.

Milandhoo Court yesterday ruled that the Administrative office of the Council should be in Milandhoo, while Funadhoo Court ruled in favor of having the Administrative Office in Funadhoo, a decision Mohamed Arif has asked police to uphold.

“Police have to respect the two court rulings, why do they have to follow only one ruling,” he said.

Arif added that the police were active in the island wearing full riot gear that he claimed had caused issues such as psychologically affecting children and women on the island.

”Just imagine what it would be like to see a huge police squad in riot gear for small children who have never witnessed something like this,” Arif said.

”They [the police] are not doing anything, they are just waiting outside the Atoll office in Funadhoo.”

Arif said the local council believes that the best way to solve the relocation issue will be to let a superior court of law solve the issue.

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