Diesel prices increased by 50 laari

The State Trading Organisation (STO), the main supplier of petroleum and gas in the Maldives, has increased the price of a diesel litre by 55 laari to Rf8.20.

Shahid Ali, CEO of STO, told Miadhu that the increase was made in response to the rising price of oil in the world market.

He added STO tries to maintain a low retail price but there has been an increase of US$4 per barrel over the past two days.

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11 projects completed

The ministry of home affairs has revealed that 11 projects have been completed under the public sector investment programme (PSIP) while seven were underway, reports Miadhu.

The projects include an island office and a guesthouse for Haa Dhaal Nolhivaramfaru, atoll offices for Raa and Faafu atolls, an island office and fire station for Seenu Maradhoo and the fire station of Gnaviyani Fuahmulah.

The projects were part of the 2006 to 2008 PSIP, which included five island offices, two atoll offices, two guesthouses, five mosques and six regional fire stations. The total cost of the projects was estimated at Rf70 million (US$5.4 million).

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New ADK hospital building to open next year

The new eight-storey ADK Hospital building will be operational next year.

According to Miadhu, construction work on the building is already complete.

The new hospital would have 43 private rooms and provide many services which is expected to ease the pressure on the only two hospitals in Male’.

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New recruiting policy could lead to doctor shortage

The health ministry has asked Indhira Ghandhi Memorial Hospital (IGMH) to recruit doctors without offering them a migration allowance.

The migration allowance is a very important factor in attracting foreign doctors to the Maldives.

Miadhu reported that Dr. Mohamed Razi, senior medical officer at IGMH, said he was concerned that low salaries for doctors combined with the cancellation of the migration allowance would make it very difficult to employ doctors.

IGMH and other hospitals were struggling due to the shortage of doctors, he said.

Razi said he believed IGMH would be able to increase salaries and benefits to doctors once it was privatised.

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Government withdraws decentralisation bill

The government has withdrawn the bill on decentralised administration after parliament reached an impasse on the controversial model of provinces in the proposed legislation.

At today’s sitting of parliament, Speaker Abdullah Shahid said the president’s office sent a letter informing him of the decision.

“Since it has become difficult to continue Majlis sittings due to disagreements among MPs on the bill on decentralised administration and as the public and political parties have requested that it be withdrawn, the president’s office said the bill was withdrawn to be submitted again in the first Majlis session of 2010 after making amendments following consultations with the public and political parties,” he said.

Intractable

Four sittings have been cancelled over the past three days after the opposition-dominated committee selected to review the legislation presented its report with an amendment to scrap provinces.

The third and final reading of the bill where MPs propose and vote on amendments could not be continued after heated rows, points of order and unsuccessful negotiations forced the speaker to call off sittings.

Over 700 amendments were tabled, the majority from MPs of the ruling Maldivian Democratic Party (MDP) to reverse the changes made by the committee.

While MDP MPs argued the opposition was infringing on the government’s prerogative of implementing its agenda, MPs of the Dhivehi Rayyithunge Party (DRP) maintained that dividing the 21 administrative areas to seven provinces was unconstitutional.

Under the government’s bill, they argued, an atoll council would be elected from a province that includes three or four atolls, leading to unequal representation.

Islanders from the less populous atolls would have to travel to the province capital for essential services, they said.

Moreover, the legislation would give provincial state ministers undue authority and influence over elected councils, including the power to dissolve the bodies.

Chapter eight of the constitution stipulates that “the administrative divisions of the Maldives shall be administered decentrally”, while giving the president powers “as provided in law, to create constituencies, posts, island councils, atoll councils and city councils”.

Article 230(c) states “the jurisdiction and characteristics of constituencies, posts and councils created to provide for decentralised administration shall be specified in law”.

Economies of scale

Speaking at the inauguration of the Maldives National Defence Force (MNDF) Male’ Area last night, President Mohamed Nasheed defended the government’s decentralisation policy.

Concentration of power and development in Male’ has led to congestion and neglect of the atolls, said Nasheed, adding devolving decision-making powers were necessary for the equitable distribution of wealth and prosperity.

But, he added, it was the government’s responsibility to pursue decentralisation in a manner agreed upon by all parties.

While he respected the DRP’s main proposal, the government believed electoral constituencies should be grouped together for administrative purposes.

The president said 54 per cent of the people endorsed the MDP manifesto and its policy of dividing the country into seven regions or provinces.

“It was impossible for a single island or atoll to develop in the manner in which a province could develop exploiting 40 per cent of its income and natural resources,” he said. “Decentralised governance through regionalisation will not be a win for any specific political party. In reality it will be a victory for the Maldives.”

Economies of scale would only be possible through the creation of provinces, he argued, and the government’s legislation proposed granting authority of 40 per cent of a province’s income to the councils.

Economies of scale refer to the benefits of large scale operations when more units of a good or service can be produced while decreasing the average cost of production.

Public interest

When parliament resumed at 2.30pm yesterday, MDP MPs as well as the Republican Party and Dhivehi Qaumee Party (DQP) MPs urged the government to withdraw the legislation.

Maamigili MP Gasim Ibrahim, the sole representative of the Republican Party, said the bill should be withdrawn in the interests of social harmony and allowing parliament to proceed with other legislation.

Supporters of the two main parties gathered outside parliament to protest yesterday, leading to the arrest of activists from both sides. However, all who were taken into custody have since been released.

Gasim urged the president to exercise article 115(p) of the constitution and hold a public referendum on the issue of provinces.

The article authorises the president to hold referendums “on issues of national importance”.

Vilufushi MP Riyaz Rasheed of the DQP reiterated the MDP criticism of the committee, invoking parliamentary rules of procedure that state committees could not make amendments that conflict with or negate the purpose of a bill.

“Therefore, considering the public interest and the rivalry of the two political parties, I would say the best thing would be for the government to take this bill back,” he said.

MDP parliamentary group leader “Reeko” Moosa Manik said the amended bill presented by the committee did not resemble the one proposed by the government at all.

Moosa called upon the government to withdraw the bill as it would not be able to pursue its policies or deliver on its promises with the committee’s version of the legislation.

At today’s sitting DRP MPs blamed the government and the MDP parliamentary group for the failure to pass the decentralisation bill as the constitutional deadline for local elections had elapsed in July.

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Valencia wants Heena as coach

Club Valencia are hoping to sign Ismail Asif, popularly known as “Kuda Heena”, as their coach for the next season.

Kuda Heena, who spent the best days of his playing career at Valencia, is currently the technical director of All Youth Linkage, AYL.

According to Haveeru, Kuda Heena is choosing not to stay with AYL due to financial issues.

Haveeru reported that AYL has failed to pay Heena and many other players.

After an illustrious playing career spanning 15 years, Heena went on to start his coaching career.

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Lunar eclipse tonight

The Maldives is among the countries to experience a lunar experience on the eve of the new year.

The eclipse will occur at 11pm tonight, but astronomers say it might not be fully visible till around 12.20am.

Other countries that will experience the eclipse are Sri Lanka, parts of the United States, Australia, South Africa, Indonesia and much of the European and Arctic regions.

The eclipse would last for about an hour, experts said.

The Maldives is also set to experience a solar eclipse on January 15, 2010.

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MNDF Male’ area inaugurated

The Maldives National Defence Force (MNDF) Malé Area was inaugurated by President Mohamed Nasheed yesterday.

The Male’ area is being formed as part of the MNDF decentralising its operations.

The president highlighted the importance of decentralising MNDF into different area commands. As a result, he said, army officers could now work closer to their families.

The president also mentioned the economic benefits to the local communities from the MNDF bases.

He said Rf65 million, spent annually on salaries, healthcare and catering for MNDF staff, would directly benefit the local economies.

MNDF have already established an area command centers in southern, central and northern parts of the country.

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Civil servants’ salaries to be restored

The Civil Service Commission (CSC) has decided to restore salaries and allowances of civil servants to its levels before the pay cuts enforced in October.

A circular issued by the commission yesterday states that the cuts were made on the request of the president and the finance ministry, which informed CSC it did not have enough funds in the budget for employees’ remuneration.

“Since the finance minister had estimated in the state budget for 2010 submitted to the People’s Majlis that government revenue would exceed Rf7 billion (US$544 million) and because the commission does not believe reduction of civil servants’ salaries for three months could be prolonged as a measure due to the economic circumstances facing the country…the commission has decided that civil servants will receive the full salaries determined for their posts from 1 January 2010,” it announced.

It adds that government offices and departments have been informed of the decision.

Following negotiations with the finance ministry in September, the CSC imposed pay cuts under clause 43(c) of its regulations, which authorises the commission to alter salaries subject to a three-month review based on “special economic circumstances”.

When pay cuts of up to 20 per cent were enforced in October, the commission and the finance ministry agreed that the economic circumstances would be considered over when the government’s annual income increases beyond Rf7 billion.

Special circumstances

Speaking to Minivan News today, Adam Zahir, a member of the executive committee of the Maldives Civil Servants’ Association, said parliament made amendments to include additional funds in the budget to restore salaries and the CSC has now said it will follow the budget.

Parliament passed the budget for 2010 with an additional Rf617.6 million (US$48 million) to restore the salaries.

“I believe we have now got 100 per cent guarantee that salaries will be restored,” he said. “But, with the way things have been going, we will believe it when it happens.”

MPs had informed the association that were enough funds in the original budget to pay the salaries, he continued, but now it has been confirmed “in a more certain and transparent way”.

Zahir said the association found it hard to accept the “special economic circumstances” because of the government’s actions and failure of either independent institutions, parliament or the judiciary to enforce similar pay cuts.

The administration continuing to make political appointees “showed that the money was there”.

Moreover, he said, both MPs and independent institutions have refused to accept the special circumstances and the government has not adequately proven that the situation warranted the austerity measures.

“So we don’t believe it because the people who would know these things best don’t believe it either,” he said.

Austerity measures

In August, the government announced it would be introducing a raft of austerity measures, including reduction of overtime, cutting down the number of overseas trips and releasing government rented properties where possible, to alleviate an inherited budget deficit.

In addition to civil service wage cuts, the president said he planned to halve the 32,000-strong civil service by 2011.

Both decisions caused an angry backlash from opposition parties who petitioned the CSC to refuse the wage cuts, which they argued would adversely impact the lives of many citizens.

In his maiden speech at the 64th UN General Assembly on Thursday, President Mohamed Nasheed said the Maldives had “suffered badly” from the global economic recession.

“Moreover, since assuming office, it has become clear to us that in the run-up to last year’s election, the former government engaged in highly irresponsible economic policies in the hope of buying their way to victory,” he said.

Nasheed said government planned to tackle the economic crisis by reducing the civil service, privatising public utilities, and promoting private enterprise and trade.

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