Day: March 30, 2010

Politicians sponsoring gang violence, say police

The Maldives Police Service (MPS) has claimed some politicians are using gangs to cause unrest, intimidate people and attack opponents.

Police said that last week’s violent political clashes between major political parties, Maldivian Democratic Party (MDP) and Dhivehi Rayyithunge Party (DRP), were tied to gang violence.

Police Sub-Inspector Ahmed Shiyam confirmed that “police have learned some politicians have used gang members to create unrest.”

He said that while the MPS currently could not disclose the names of politicians linked to inciting gang violence, he assured that police “will take legal action against people suspected of being involved in recent violent demonstrations and attacks.”

Minivan News spoke to three gang members on 25 March, two of whom said although they were generally uninterested in politics, they had received financial support from politicians who would pay them for protection and to attack their opponents.

Better things to do

Shiyam added that because members of the special operation had been forced to concentrate on containing the political violence, there had been a corresponding spike in gang violence, burglary and street theft.

All of these had fallen when the special operations team began their work earlier this month, he said.

Shiyam said the special operation had returned to its work again in full force.

Last week, Deputy Commissioner of the MPS Mohamed Rishwan also said the recent political violence was hampering work and diverting resources from the special operation to curb gang-related crimes.

“As a consequence a large number of officers had to stop their work and interrupt their service to the people to go out to control and watch over political activities,” Rishwan said.

Press Secretary for the President’s Office Mohamed Zuhair said police acknowledgement of politically-motivated gang violence was “a very serious statement [by police].

He noted that members of the MDP have previously accused senior DRP-PA politicians of being connected to gangs, “but police saying it makes the matter more urgent and credible.”

During his opening speech to the Maldives Donor Conference 2010, President Mohamed Nasheed referred to the matter, stating: “I don’t care whether you are a gangster, or whether you are a senior politician controlling the gangsters – if you attack, or orchestrate attacks, this government will take appropriate legal action.”

Zuhair said he hoped police would forward the relevant cases to the Prosecutor General so that they could be resolved in the courts.

Spokesperson for the MDP, Ahmed Haleem said “violence was normal under the previous regime, and DRP are doing the same thing now.”

Haleem said the DRP was trying to harm the country by trying to “stop aid and funds” from international donors.

He said the MDP was “a bit concerned” about politicians being tied to gang violence, “because some DRP MPs are physically involved in violence.”

DRP Vice President and Spokesperson Ibrahim Shareef said the party performed “peaceful protests, not the inciting of violence”, and said police would be making statements “based on their opperational experience.”

“Many DRP meetings have been disrupted by MDP activists, who attack with stones and swords,” Shareef said, adding that shops and houses of DRP members had also been vandalised in the violence over the weekend.

“We are constantly receiving threatening calls from the MDP,” Shareef said, adding that “the ruling party should be more responsible and should not use the gangs.”

“There is a lot of gang violence connected to MDP, and I am worried that it is difficult to control our own activists because they have no protection.”

“If people see the ruling party is inciting violence,” Shareef warned, “the country will lose its peace.”

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Human rights NGOs criticise spread of “perverse thinking and ignorant practices”

A coalition of human rights NGOs have issued a statement noting “with concern and regret” that certain preachers “have recently begun to portray Islam as a religion that demeans women and children.”

“Religious sermons that portray and speak of women as people who exist simply to gratify the sexual desires of men, on earth and in paradise, fail to take into consideration the respect and honour granted to women in Islam,” the NGOs claimed.

“We believe that the message perpetuated through sermons that the purpose of achieving paradise is to engage in sexual acts forbidden on earth, and to enjoy pleasures forbidden on earth, is the work of some people to impress upon the public that Islam is a backward religion.”

The NGOs’ statement, signed by the Maldivian Detainee Network, Transparency Maldives, Rights for All, Maldives Aid, Madulu, Democracy House and Strength of Society, claimed that “all Abrahamic religions uphold the dignity and respect of all human beings, and Islam in particular provided protection and safety for women and children who were being abused in Arab societies, [that were] entrenched in the ignorance of dark ages.

“Hence, to render commonplace the perverse thinking and ignorant practices of those days in the name of Islam would be to facilitate similar ignorance and malice.”

The NGOs criticised the Ministry of Islamic Affairs “for not working in their full capacity to regulate or halt the views and acts propagated by those who endorse extreme views,” and requested that government play its “important role” in countering these types of views “propagated in the name of Islam.”

The statement comes after President Mohamed Nasheed was heavily criticised by the religiously conservative Adhaalath Party for “trying to convey irreligious views to the beloved Muslim citizens of the Maldives” during his weekly radio address.

In his address, the President noted that “a large number of young women and young men are requesting that the government obstruct and stop these things from happening.”

“We have freedom of expression; if you are unhappy with views expressed by one group, in my mind the intelligent thing to do is for another group to express the contrary view, a second opinion, or alternative views,” he said. “People can then choose the path they believe.”

However a statement from the Adhaalath party said that the president’s remarks about giving public space to views opposed to the tenets and commandments of Islam were tantamount “to a call for allowing them.”

“In this 100 per cent Islamic country, for the president to call for views opposed to Islam is something that the Adhaalath party is extremely concerned about,” the party said.

“People should only talk about Islam with full religious knowledge. Talking about religious tenets and judgments without proper knowledge is prohibited in Islam.”

The Adhaalath party called on the president to “not be swayed by those who believe irreligious philosophies or the anti-Islamic rhetoric of those opposed to Islam, and not to give opportunity for any religion other than Islam in this country.”

In his opening address to the Maldives Donor Conference 2010, President Nasheed revealed he had “often been criticised by liberal Maldivians because I refuse to censor religious groups.”

“My point is this: the ends do not justify the means,” he told the donors. “People with broader viewpoints must become more active, to create a tolerant society.”

The president revealed that a group of 32 concerned young people had recently visited him, “furious about the rise in extremism.”

“To my mind, these are just the sort of people who need to reclaim civil society, if they want to foster a more open-minded society,” Nasheed said. “Liberally-minded Maldivians must organise and reclaim civil society if they want to win this battle of ideas.”

Sheikh Abdulla Jameel told Minivan News today that when giving a sermon, “we have to tell it as it is.”

”Whether people like it or not, we can’t add or remove anything,” he said. “Nobody can change something stated in the Qur’an, and in the Qur’an it says that no one can [challenge] the orders of God or the Prophet Mohammed (PBUH).”

The Ministry of Islamic Affairs declined to comment in the absence of Minister Dr Abdul Majeed Abdul Bari, who is currently visiting Saudi Arabia, and State Minister Mohamed Shaheem Ali Saeed, who is in the United States.

Local Islamic NGO Jamiyathul Salaf also did not respond to Minivan News’ enquiries at time of press.

Politics and religion

The Maldivian Democratic Party (MDP) issued a statement yesterday in support of the President, condemning the Adhaalath party for “using religion as a [political] weapon”.

“For the Adhaalath party to falsely accuse the president after remaining silent when the Dhivehi Rayyithunge Party (DRP) obstructed and stopped a religious sermon organised by MDP last Thursday night, 25 March 2010, causing a disturbance and spilling the blood of many Maldivian citizens, casts doubt on their intentions,” the party said.

The MDP acknowledged that Article 1 of the Religious Unity Act, stating that Maldivian citizens are followers of Islam, belonging to the same sect and sharing one nationality, was “essential for protecting Maldivian independence and sovereignty and ensuring peace and security”, and that promoting religious unity among Maldivians “is obligatory upon both the government and the people.”

Regarding the President’s comments in his radio address and speech at the donor conference, “the party believes that [the president’s] intention was to share some people’s opinions with the public and give an opportunity for religious scholars to clarify the issue.”

Instead of addressing the opinions expressed by the young people who visited the President, the MDP said, “the Adhaalath party falsely accused the President of expressing views contrary to Islam and made political rivalry their main concern.”

The statement concluded by advising the Adhaalath party “to stop casting aspersions” on the president and “cease using religion as a tool to achieve political ends.”

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Government slams DRP letter to donor delegates as “kids’ stuff”

The Maldivian Democratic Party (MDP) has said the letter written by Dhivehi Rayyithunge Party (DRP) leader Ahmed Thasmeen, which he addressed to the participants of the Maldives Donor Conference, is nothing but “the ramblings of a delusional person.”

On 28 March Thasmeen wrote a letter criticising the current government’s economic policies, saying that the country was being “consumed in destructive politics,” and the opposition was constantly “intimidated and harassed.”

Minister of Foreign Affairs Dr Ahmed Shaheed said the government had “invited DRP leaders and a number of opposition MPs” to the Donor Conference, but “none turned up.”

He said the letter was “devoid of any real substance” and was “a luke-warm attempt” to call for a ban on aid.

“We are in a democracy and we do not hide from criticism,” Dr Shaheed said. “They wrote this assuming we wouldn’t pass it on to the donors. We have passed it on to the donors to expose what kind of stuff the opposition are made of.”

Dr Shaheed said the “transition from autocracy to democracy” was not expected to be easy, and although “there is instability, we are not consumed by destruction. They wish we were consumed by destruction.”

He said the opposition was not being restrained or harassed, pointing out that this is “the only time in the history of this country that there has not been a political opponent in detention.”

“The DRP always see the law as a weapon. Now they have removed the Auditor General from his office by using the law as a weapon.”

Dr Shaheed acknowledged that the government had criticised independent commissions such as the Human Rights Commission for the Maldives (HRCM), saying “they are not doing their job. And I think people have a right to tell others when they are not doing their job.”

He reiterated that the DRP is “still living with a mentality where they think nothing can be said about anybody else.”

Dr Shaheed said the opposition was “against privatisation. They have no idea what liberal means, or what the government needs. They are not listening to what the president is saying.”

On the claims of the incompetence of newly appointed members of government companies, he said the DRP is not indicating any measure to judge competency.

“There is this claim that if you are a political activist you don’t qualify for a job, but this is wrong.”

Dr Shaheed said the government was working hard to fully implement democracy in the country, and “we are the most transparent government this country has had. The most open government this country has had.”

He said that the current government chose to address issues openly in parliament, and not with violence.

“Parliament is a place, not to punch people and call them names, but to work together. The parliament is where the opposition has the road to engage.”

He added “the opposition has so many opportunities to contribute to policies. They should learn to use them.”

None of the delegates of the conference had made any reference to the DRP’s letter, he said.

“DRP is calling this government irresponsible in fiscal policies, and you have the IMF giving us a grant based on our fiscal policies. Who are [the donors] going to believe?”

Press Secretary for the President’s Office Mohamed Zuhair said the “DRP leader wanted delegates to know they are not happy with the government’s economic policy.”

He said the IMF had been especially supportive of the government’s economic policies, and had issued a number of statements commending the government.

“So the question was whether the delegates should believe the IMF and their reports, or whether they are to believe the opposition party leader Thasmeen…about whom there have been comments that he and his family have outstanding debts to the tune of US$100 million to the Bank of Maldives.”

Zuhair said the letter was distributed to all the delegates and no one had made any response.

He added that DRP members and the Speaker of Parliament Abdulla Shahid were invited to the opening session and “abstained from coming.”

Thasmeen told Minivan News today that as far as he knew, DRP members had been invited to the opening ceremony of the Donor Conference, but he did not attend because “as a member of Parliament, I had other engagements.”

He said the letter and dossier the DRP had produced for the delegates “was sent through the Ministry of Foreign Affairs” and had been distributed at the conference.

He added that since the letter was sent out, “we have been having discussions with members of some delegations, but it would not be appropriate for me to discuss what went on in the meetings.”

Thasmeen said “we value and appreciate and welcome any assistance in development, and hope [the pledges] are realised soon.”

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Police summon DRP MPs for questioning over parliamentary brawl

Police yesterday summoned Dhivehi Rayyithunge Party (DRP) Vice president and MP Ali Waheed, DRP Vice president and MP Ahmed Ilham and DRP MP Ahmed Mahloof to police headquarters for questioning regarding last week’s brawl in parliament.

Waheed told the press that he assumed the police had summoned him in order to congratulate him on the no-confidence vote against Auditor General Ibrahim Naeem.

He said that the police questioned him about several cases, ”including a gathering near the president’s official residence, Muleeage, and about the brawl in parliament. They put the blame on us for everything happening in Male’,” Waheed said.

He claimed the questioning was a result of President Mohamed Nasheed “trying to stop us from making the government more responsible.”

”He thinks we will be afraid and back off,” he said, ”but that encourages us more.”

He said it was the DRP MPs who should have summoned the police, and questioned why they were taken into police custody on Thursday night.

”The government is planning to stop our activities and threaten us,” he said.

Ilham and Mahlouf told the press they chose to remain silent.

Press secretary for the president Mohamed Zuhair said the government had no role in the police questioning or arrest of DRP MPs, and that anyone disturbing the peace of country could expect to be arrested.

”Police will arrest them if they see them indulging in violent activity,” Zuhair said. “They were throwing rocks and chairs at a peaceful religious gathering. It’s like throwing stones at a mosque – police can’t simply ignore the matter because the throwers are MPs.”

Zuhair said he wished to repeat a quote made by former president Maumoon Abdul Gayoom: ”No one is above the law”, and noted that the MPs were not arrested by ”temporarily kept in police custody.”

”The police will forward all the cases to the Prosecutor General when they have enough evidence,” he said.

”They are blaming president Nasheed just to gain political support, but the public won’t be fooled.”

Police Sub Inspector Ahmed Shiyam said the police was not just summoning the DRP MPs.

”We are investigating a case presented to us by the parliament,” Shiyam said. ”There are many independent MPs and MDP MPs to be brought for questioning.”

He said the details could not be given as police were currently investigating the case.

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Akon to perform live in “the biggest ever event in the Maldives”

Well known R&B singer Akon will perform a live show in the Maldives, after he was denied a visa in Sri Lanka because of a scene in one of his videos depicting a woman dancing around a Buddha statue.

Director of Platinum Entertainment Lasantha Samarasinghe, the company organising the ‘Super Fest 2010’ show, said it would be be held at the outdoor cricket stadium on the 23 April and would be “the biggest event ever held in the Maldives.”

“We are expecting 25,000 people to come to the show,” he said, including many tourists.

Samarasinghe said if this event was successful the company “will bring even more Hollywood superstars to the Maldives.”

Press secretary for the President Mohamed Zuhair said that the government had given the permission for the show to take place, saying it “fully supports these kinds of events.”

“It will promote the country’s tourism sector and provide a good opportunity for Maldivian singers,” he said.

Zuhair also said that President Mohamed Nasheed was keen to attend the show.

The show’s main sponsor will be Villa Television, with ‘official drinks’ provided VB Mart and Foco energy drink.

A Villa spokesperson claimed this was “the first time a superstar is performing in the Maldives.”

Tickets will go on sale from Friday.

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Comment: The Maldivian Economic Situation

Economics is often referred to as the ‘dismal science’, partly because it mostly concerns us when things start to go bad.

In this sense, economics is a lot like medicine or public health. And so it is highly appropriate that we start comparing economic remedies to medicine – like what the President did when he asked the donor community for a ‘spoonful of sugar to help the medicine go down’.

You may find yourself asking what exactly is the sickness for which we have to take such a bitter medicine. So what I will attempt to do in this first part of the article is to try and explain to you exactly what happened to our economy – in as plain, jargon-free, language as I can.

In the second part of the article (to follow soon) I will try and show you the remedies we need to take and to shed light on how to avoid getting into a similar mess in the future.

In order to understand our recent economic history, you must first know the three ways in which a government can affect the economy: fiscal policy (how much it spends from its taxes, revenues or borrowings) or monetary policy (how much money it prints) and exchange policy (how it allows goods and services to come in or go out of the country). So lets look at how our Governments – both Gayyoom and the MDP – have used these levers over the last few years.

The Big Wave

The key defining moment to start is the Tsunami of 2004 where we faced a previously unimaginable event that brought economic activity to a virtual standstill. The tsunami, however, happened in the context of two other very key social phenomena. Firstly, there was an emergence of a movement calling for political change that proved especially resilient and vocal. Secondly, there was a dramatic increase in global prices – food and oil prices especially.

The response to this was naturally a large spending program to rebuild the country. No doubt, the initial spending by the Government went to Tsunami affected purposes. However by 2006-07 the Government started doing two things.

First, it increased the size of the civil service from about 24,000 to about 32,000 people, and secondly increased their average salaries from about MRF3,000 to MRF11,000. As a result, government spending went from 35% of GDP in 2004 to about 60% of GDP in 2006.

I need to take a few more moments just to put this level of spending into perspective. Firstly, it is mentioned above that we expanded the civil service to be almost 32,000 people – that is almost 11 per cent of the total population of the country!

The comparative figure for other small island countries (like in the Caribbean) is at four per cent. Furthermore, the public sector wage bill (ie. all the salaries and allowances paid to this 11 per cent of people) accounted for almost 50 per cent of all our expenditure and almost 70 per cent of all our revenue.

Of course, all this expenditure is fine if we can actually pay for it. The question then becomes – where did the money for all of this increased expenditure come from?

It came from three sources – grants, loans and the additional revenue from leasing out a number of new resorts. The understandable impact this had on the supply of money was a three-fold increase.

One notable side-effect of this was a rising inflation of more than 20 per cent over the years: a factor that contributed to MDP making controlling inflation a major policy pledge. However all of this would have been manageable but for the third policy lever of a government – the exchange rate.

You would no doubt know that we in the Maldives have a pegged exchange rate – ie. it is fixed by a central authority to a specific currency at a specific value (in this case Rf12.85).

A policy of increasing public spending, and thereby increasing our supply of Maldivian rufiyaa AND keeping a fixed exchange rate, can only work if we also keep increasing our foreign currency stock. This is because the pegged exchange rate works on the assumption that if somebody comes to the MMA or Bank with any amount of rufiyya looking to buy US$, we should be able to cater to this.

With increased rufiyaa in circulation there was a large increase in demand for USD, but there was no real increase in supply of foreign reserves. This caused the ‘real’ exchange rate to shoot above Rf12.85, and thereby cause even worse inflation. As trust in the system started to disappear, those who actually had US$ no longer trusted to put the money into local banks.

All of this enormous stress on the system was there well before the greatest global economic collapse since the 1930s struck.

The Global Financial Crisis (GFC)

The two specific impacts of the GFC were two fold.

First there was a ‘credit crunch’ – the flow of finances between international banks stopped because none of the banks trusted each other. Financing to all those many resorts that were given out started drying up so our reserves fell even more. Secondly, tourist numbers started retrenching – and those tourists that did come spent a lot less.

It was about this time that the historic change in government took place and the MDP came to power. To their horror, they soon came to realize that they inherited a fiscal situation far worse than they had imagined.

This was due to the fact that government spending is often done through contracts that have long-term implications. Governments sign contracts that burden future governments to payments – both in terms of principal and interest payments.

The amount that the MDP government had to pay in interest alone – for projects that they themselves had nothing to do with – rose from three to eight per cent of GDP between 08-09.

Here therefore we need to introduce the final basic concept – that of the fiscal deficit. This simply is the difference between what we earn and what we spend divided by our GDP.

In 2008, this was at about -12.5 per cent, but the worrying thing was that given the fall in revenue projected by the GFC, this was projected to rise to almost 33 per cent in 2009.

Once again let’s put these figures in perspective. The highest the fiscal deficit reached in the USA – in 1945 straight after the Second World War – was at about 20 per cent.

Obama’s hugely expensive budget this year will increase his to just over 11 per cent. In Sri Lanka, the IMF refused financing to the current President because his latest fiscal deficit reached 10.5 per cent!

However way you look at it, we are in a desperate, desperate situation.

Don’t Blame it on the Sunshine

A key question you may therefore have is – who is responsible for this mess? Was it pure malice? Incompetence? Or did we just get unlucky?

Those who seek to justify the acts of the former regime would say that yes, they expanded the domestic money supply, but what you must also keep in mind is that they had just successfully bidded out 60+ resorts.

Even if you take a conservative estimate, we are talking about almost US$3 billion of investments.

Even assuming 50 per cent Maldivian staff, this is about 7,200 new jobs in the resorts alone. The total bed capacity increase was expected at 12,000 – so that is about US$4.2 million PER DAY in revenue. As such, an expansionary fiscal and monetary policy was justified on grounds of the revenue, returns and most importantly, reserves from this resort expansion. They could never have been expected to foresee the Global Financial Crisis coming.

On the other hand, critics would argue that in the years of Gayyoom’s presidency, especially in his last two years, rational economics was not the order of the day. Rather, the preoccupation of the regime was to stay in power at all costs.

If that meant bringing 10,000 extra staff and increasing their salary four-fold, as well as signing up to countless and often pointless public expenditure projects by borrowing large sums of money at exorbitant interest rates – so be it.

Critics would argue that if the Government were interested in anything other than self-preservation, they would have at least invested the money more wisely. It was reckless spending for purely political aims with no thought to the future health or wellbeing of the economy.

My own personal viewpoint is that we should leave the blame game for another day – if we take it up at all. The challenges to our economy, and by definition our fragile democracy, are far too great to waste time pointing fingers. I understand that political points have to be scored, but there are no elections in sight for at least 3-4 years.

We have arrived at a situation where we need to politically co-exist if we are to heal our economy. For now, leave aside your talk of past corruption or the future hell that awaits us if we do not veil our sisters. We have jobs to create, youth to educate, industries to develop and opportunities to exploit. I for one would like to look back on these days as a time when we all, blue and yellow supporters alike, did some pretty remarkably constructive things in the Maldives.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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Australian architects design floating skyscrapers for the Maldives

Australian architects have proposed floating skyscrapers to be built in the Maldives in an attempt to combat rising sea levels.

The designs, named ‘Maldives Floating States’, were submitted as part of the 2010 Skyscraper Competition organised by eVolo architecture magazine. They made the finals but did not get into the top three.

Architects William Fong, Joshua Loke and Livee Tan proposed that, in case rising sea levels were to flood all of the Maldives, the entire population could be relocated onto 1,000 metre tall floating structures.

They believe this way, the people of the Maldives could continue to live in “its own waters” and not lose its culture and heritage.

They have called their designs “engineering marvels of buoyancy and height” with the proposed structures to be anchored to the sea floor more than 1,000 metres below the surface.

To accommodate growing population, they suggest the towers’ height can be increased or new towers can be built, “like reclamation, only floating.”

In early March, the government signed an agreement with Dutch Company Dutch Docklands to build a floating golf course and and hotel.

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Details of funds pledged at Donor Conference will only be available with donor’s consent

World Bank Country Director for Sri Lanka and the Maldives, Naoko Ishii, said details of the pledges made at the Donor Conference would only be released with consent from the donors.

Speaking at a press conference after the closing session of the conference yesterday, Ishii said some countries did not want to publicly announce the exact figures of their pledges.

She added that many of them had internal procedures which prevented them from announcing the figures at this time, and they needed to discuss and approve the pledges in their home countries before announcements were made.

Senior government officials said many countries’ fiscal years did not begin in January, like Australia and Japan, for example, which meant their pledges would not come into force until the beginning of their new fiscal year.

President Mohamed Nasheed said this year’s pledges surmounted the amounts of previous years because the international donor community did not have faith in the previous government.

He added that donors are confident of the democratic system of the Maldives and the support from the World Bank and International Monetary Fund (IMF), making this year the most successful Donor Conference to date.

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