Cabinet resigns in protest over opposition MPs “scorched earth” politics

The entire cabinet of the Maldives has resigned in protest against “scorched earth politics” of the opposition-majority parliament, leaving only President Mohamed Nasheed and Vice President Mohamed Waheed Hassan in charge of the country.

Cabinet members handed Nasheed their letters of resignation this afternoon at 5:00pm in front of assembled press at the President’s Office, shortly after the weekly cabinet meeting.

Unusually, the four hour meeting was adjourned at two hours and reconvened in the President’s residence, Muleeage.

“The Majlis (parliament) is preventing the cabinet ministers from performing their legal obligations. Majlis members are behaving against the spirit and the letter of the Constitution,” the President told the media after the meeting.

“So I appeal with the honorable members of the Majlis not to muddy the waters for governance in this country and to lend us their cooperation.”

Attorney General Husnu Suood said parliament was making the country “ungovernable”.

“Every passing week, there is another attempt by opposition MPs to wrestle more control from the executive,” Suood said.

“The opposition MPs are operating a ‘scorched earth’ policy, trying to stop the government from doing any work to help the people. We have told the President that we cannot continue to work like this,” said Foreign Minister Dr Ahmed Shaheed, in a press statement.

Finance Minister Ali Hashim accused opposition MPs of “obstructing the business of government” by “awarding themselves powers to appoint members to independent institutions”, when this was “clearly a prerogative of the President.”

“They have declared that the government cannot raise any loans from abroad or rent any government or state asset without their say-so. And they are threatening Ministers with no confidence motions on spurious grounds,” he added.

In addition to revisions of the financial regulations, last week, parliament voted through amendments to the Civil Service Act to transfer powers of appointing members to the independent commission to a parliamentary committee.

Opposition MPs arrested

Shortly after the press conference concluded, Minivan News learned that the police and the Maldives National Defence Force (MNDF) had arrested the leaders of several opposition parties, including Jumhooree Party (JP) leader MP Gasim Ibrahim and People’s Alliance (PA) leader MP Abdulla Yameen (DRP), who have reportedly been taken to the prison on Dhoonidhoo island.

Sub-Inspector Ahmed Shiyam said “police are not saying anything officially at the moment,” but suggested Minivan News could “probably report what people are saying.”

Police and MNDF are meanwhile on high alert, while DRP supporters gathered at the artifical beach area outside the party’s headquarters. Reports around 9:00pm suggested rocks had been thrown, while sensitive areas around the President’s residence and the Majlis were sealed off by police and army roadblocks.

Meanwhile, the MDP National Council adopt a resolution to terminate its coalition agreement with Gasim’s Republican Party and recommend the dismissal of the party’s political appointees to President Nasheed.

The President’s Press Secretary Mohamed Zuhair told Minivan News that a police and MNDF investigation of corruption in the Majlis (parliament) would likely lead to “seven or eight parliamentary by-elections.”

“There have been allegations of corruption and attempted bribery, and allegations of certain threats against the state made by ministers,” Zuhair said.

He added that the government had “full confidence” in the state and deputy ministers, civil service and the permanent secretaries to keep the country running following the resignation of the ministers.

“Their resignation forces me to investigate using the police and the Maldives National Defence Force,” the President said, noting “I am Chief of the Armed Forces.”

Nasheed said amendments to the state finance laws passed by parliament yesterday, which requires any decisions relating to the leasing of state assets to be sent to parliament for approval, “was done in the self-interest of certain MPs. You cannot run the government like that.”

The President acknowledged that there would be “difficulties” faced by the people in the absence of cabinet ministers, “but it is the parliament who brought us to this situation.”

After the press conference, President Nasheed walked to police headquarters and requested police investigate the case.

Opposition reaction

Umar Naseer, Deputy Leader of the opposition Dhivehi Rayyithunge Party (DRP) which has the most number of seats in parliament in conjunction with its coalition partner the People’s Alliance (PA), said it was “really good that the cabinet ministers finally realised they were incapable.”

”The government along with the cabinet ministers was unable to govern the country,” Umar Naseer said. ”Now it is only the president and vice president [in charge], and how can they both do something they were unable to do with ministers.”

“Tomorrow President Nasheed will resign,” Umar Naseer predicted. ”Now it is the time to hold mid-term elections.”

He said this afternoon’s decision brought the current government to the brink of becoming a dictatorship.

”The President said he would launch an investigation using Police and the MNDF. That means he will probably arrest senior opposition leaders – I am not afraid of it.”

Umar added that however much he wished otherwise, “according to the constitution the president cannot dissolve parliament.”

DRP MP Ahmed Nihan described the incident as “an international joke” that “proved the government has failed.”

”For instance: three boats are competing in a race, and one of the boat’s crew abandons their vessel leaving only the captain and his first mate,” said Nihan. ”The current government does not have the majority support of the people.”

The arrest of Yameen and Gasim was “autocratic” and “a very ugly act”, Nihan said, adding that “President Mohamed Nasheed is worse than Adolf Hitler.”

Appearing before press at an impromptu press conference this evening, DRP Leader Ahmed Thasmeen Ali denied that the parliament had acted unconstitutionally.

The MP for Kendhoo argued that the government could have filed cases at the Supreme Court to decide on constitutional matters submit issues of in lieu of the mass resignations.

Thasmeen said the sudden arrests of MPs was not in the public interest, adding that the resignations showed that the government had ‘failed.’

Deadlocked

Parliament voted 47-11 yesterday in favour of an amendment bill that would allow them to veto every lease or loan agreement made between the government and an overseas party, allowing them to effectively prevent the government from privatising assets such as Male’ International Airport.

On Sunday a signing agreement between the government and GMR Infrastructure-Malaysia Airport Holdings to manage Male’ International Airport was scuttled in front of the waiting media, after a reported dispute among board members of the incumbent Maldives Airport Company Limited (MACL) over who would sign the document.

That evening, four opposition parties including the DRP, PA, JP and DQP signed an agreement to oppose the airport deal on nationalistic grounds, and the following day parliament passed the amendment bill allowing the Majlis to veto any such project.

The government nonetheless reshuffled the MACL board members and proceeded with the signing ceremony on Monday evening. However today it was reported that the opposition parties had filed a civil court action seeking an injunction to block the deal going ahead.

Sources in the President’s Office suggested “this was probably the straw that broke the camel’s back” and led to this evening’s Executive outburst against the Majlis.

Other possible causes include a recent no-confidence motion levelled at Education Minister Dr Mustafa Luthfy by Independent MP Ibrahim Muttalib, after the Ministry’s steering committee proposed make the Islam and Dhivehi subjects optional at A-Level.

Former Auditor General Ibrahim Naeem, who had previously released audit reports alleging rampant corruption in the former government, was also dismissed by parliament shortly after announcing a financial audit of current and former government ministers, including former President Maumoon Abdul Gayoom. However the Anti-Corruption Commission (ACC) reported to parliament that Naeem had misused a government credit card to purchase transport and a tie, and he was removed from office.

Last year a no-confidence motion against the Foreign Minister Dr Ahmed Shaheed was narrowly defeated, after the government sought to renewed diplomatic relations with Israel.

Note: Minivan News apologises for earlier disruption to the site following publication of this report. At peak demand we were receiving 200 requests a second, critically overloading the website’s database.

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President’s speech on the resignation of cabinet

The following is a literal Dhivehi-English translation of the President Mohamed Nasheed’s speech to the media at the President’s Office on Tuesday afternoon, announcing the resignation of his cabinet members.

Today I meet the Maldivian media because the ministers of the government have noted that they are unable to fulfill their responsibilities according to their oath.

All the members of the cabinet are saying that they do not receive any cooperation from the Majlis, that many members of the Majlis are not acting in line with the spirit of the constitution and that they are also violating the articles of the constitution.

Believing a huge majority is with them, and through this majority members of the parliament are violating the very spirit of the constitution we are trying to implement and enforce.

The ministers have said that they are finding it extremely difficult to carry on with their responsibilities, and that therefore they wish to resign until the Majlis acts in a different manner.

All the members of the cabinet are requesting this, so today in accordance with the constitution which reads that after I receive the resignation of all cabinet ministers, myself and vice president Dr Mohamed Waheed Hassan Manik will only remain in the cabinet.

I assure the citizens that this government’s one and only aim and goal is to serve the people. This government was formed to establish a system which listens to the voice of the people, and to establish a system which fulfills the needs of the people according to their pulse and also to follow up with that system of governance.

So I request the honorable members of the Majlis to not cloud the atmosphere of governance in the country and to lend me their cooperation while continuing with their work.

I am obliged to look into the complaints made by the members of the cabinet about the Majlis members, therefore today I will start looking into them and I shall do everything possible, in the boundaries of the law, to look into these complaints and issues.

I am the head of state of this country. I am also the head of the police and defense forces. I have put myself up to the task of leading this country to serve the people. We did not come to power with the intent to do whatever we would like to the extent we are able to do. So I am obliged to look into the complaints of the cabinet members and I assure the citizens that I will look into these complaints.

I intend to accept the letters from the ministers in front of all of you. I have not yet received their letters but the cabinet secretary had informed me that he had received the letters. So I ask the cabinet secretary to hand the letters over to me and afterwards I will answer your questions. A bit of time would be required for this (handing over the letters) but I cannot spend too much time on this today.

When the letters of the cabinet ministers are kept on this table, they have been accepted by me by default.

<President accepts letters of resignation>

Among all the letters I just have looked into, only the letter missing is that of Home Minister Mohamed Shihab, as he has mailed it since he is currently not in (Male’).

I sincerely and from the bottom of my heart, thank the cabinet ministers. The strength they have shown, the discipline and integrity they have maintained and their loyalty and readiness to serve this nation and to uphold the features and the spirit of the constitution, I believe never will be doubted by the citizens of this country.

In the history of this country, rarely does a minister resign. If cabinet ministers cannot fulfill their legal duties and responsibilities due to any reason, I do believe that they would have to think about it.

Today my responsibility is to look into the complaints right away. I will look into the complaints of the ministers and I will take necessary action afterwards. I assure this to all citizens of this country.

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Tsunami report identifies recovery aid failures in India and Sri Lanka

‘Lessons from Tsunami Recovery in Sri Lanka and India’ described as a ‘large and wide-ranging study of post-tsunami recovery’ by researchers from Monash and RMIT universities in Melbourne, Australia, has been released.

The report identifies ‘serious shortcomings in how international aid agencies dealt with local groups, leaving them poorly equipped to manage with long-term recovery efforts. The researchers say they’re already seeing many of the mistakes repeated in the wake of more recent natural disasters, with worrying consequences’, reports ABC Radio Australia.

Radio Australia transcript with audio link

Lessons from Tsunami Recovery in Sri Lanka and India – pdf file

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Male International Airport remains the property of the Maldivian people: Razee

Male International Airport remains the property of the Maldivian people under the leasing agreement with GMR, says the minister of civil aviation and communications Mahmood Razee in a Miadhu report.

The government still has influence over the airport’s management and all flights will be authorised by the government, he says. ‘Aeronautical’ fees will also be set by the government.

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Government signs Male International Airport to GMR-Malaysia Airports consortium

The government today signed a 25 year lease agreement with the GMR-Malaysia Airport Holdings consortium to develop and manage Male’ International Airport, hours after parliament voted in favour of a bill requiring parliamentary approval of lease transactions with overseas parties.

Chairman of the Privatisation Committee, Mahmoud Razee, claimed parliament’s decision today would not impact the signing “as it yet to be ratified by the president.”

The signing ceremony was scheduled for yesterday but was derailed at the eleventh hour after reported disagreements between board members of the Maldives Airport Company Limited (MACL), the organisation which currently manages the airport.

Minivan News understands the four MACL board positions were reshuffled by the government last night in an effort to proceed with the signing today, although this has yet to be officially confirmed – new chairman Ibrahim Saleem, also Chairman of the Maldives Tourism Development Corporation (MTDC), signed the contract today in place of former chairman Ibrahim Nooradeen.

An official of the President’s Office observed to Minivan News that as the MACL is a public company with 100 percent of its shares owned by the government, “it is the duty of the board to act in the interests of the major shareholder.”

Minivan News is currently seeking comment from the board members.

Under the new agreement, the consortium will establish a new local company to manage the airport which will be operated by Malaysia Airlines Holdings. The Maldives National Defence Force (MNDF) will remain in charge of security, and immigration will remain under government control. A briefing document obtained by Minivan News also indicates that the agreement comes with a clause that no staff can be made redundant for two years unless for “disciplinary or performance related reasons.”

The deal has proved controversial with four opposition parties signing a statement on Saturday evening condemning the decision on nationalistic grounds, arguing that handing management of the airport to a foreign company compromised the sovereignty of the Maldives.

Deputy Leader of the main opposition Dhivehi Rayyithunge Party (DRP), Ibrahim Shareef, said last week that the DRP would not honour “shady deals of this type” if it came to power in the next election, unless they were approved by parliament, while today another of the party’s deputy leaders, Umar Naseer, said the deal was “ridiculous” and would result in the dismissal of half the airport’s 3000 staff.

Speaking briefly to the media following the signing, Managing Director of GMR Infrastructure Sri Pathi hinted acknowledgement of the controversy, stating that “airports always belong to the people – never to us.”

“Please don’t think we came here to take over the airport,” he said. “We perhaps become the trustees – but emotionally in terms of ownership it belongs to the people. We are of course here to invest our money and make a business deal on the best terms possible – but the airport still belongs to the people. We make a commitment that we will operate the airport to the best international standards that we can, and prove to you that the trust you place in us will never be betrayed.”

Managing Director of Malaysia Airports Holdings, Basheer Ahmed, noted that the majority Malaysian-government owned company managed 39 airports in Malaysia and several overseas, including airports in Hyderbad and Delhi.

“Every country needs an excellent airport because it is the visitor’s first impression,” he said.

The briefing document obtained by Minivan News contains forecasts of the government’s expected earnings (reportedly provided by GMR) from the airport over the lifespan of the contract. It reveals that a majority of the predicted revenue, a major factor in calculating the NPV (net present value) used to determine the successful bid, derives from the 27 percent fuel revenue share once the airport is completed in 2014:

  • 2015-2020: 12.8m gross + 74.25m fuel = US$87.05m per year
  • 2020-2025- 17.02m gross + 90.99m fuel = US$108.01m per year
  • 2025-2035 – 20.43 gross + 108.27m fuel = US$128.7 m per year

The document contrasted this with the dividends paid to the government by MACL over the last three years, noting that the majority of the dividends paid in 2008-2009 were achieved “by taking a loan.”

  • 2007 – 2.3 million
  • 2008 – 13.3 million
  • 2009 – 5.05 million

On the suggestion that MACL should be allowed to raise finance and invest in the upgrade itself, a predicted US$300-400 million, the document noted that MACL “already has debts of Rf 600 million (US$46.69 million)” and would be unable to obtain further leverage “without a sovereign guarantee – simply not allowed due to the IMF measures.”

airportsigning2
The airport was signed to GMR-MAH late this afternoon.

Meanwhile, daily newspaper Haveeru featured an interview with the Turkish-French consortium TAV-ADPM, who have reportedly expressed dissatisfaction of the bid evaluation process “and urged for a re-evaluation of the bids.”

“The newspapers started reporting that GMR won the bid even though we were not told the party who won the bid. We faced many problems, since the two companies in our consortium are also listed in stock exchange,” Haveerru reported head of the consortium, Gusiloo Betkin, as saying. “It cannot be said that a certain party won the bid without signing the concession agreement.”

Betkin expressed disbelief to Haveeru that the GMR-MAH bid could offer the government 27 percent of fuel trade “without facing any loss. We are a party that provides services to 170 million passengers annually in 39 airports. We also have experience in fuel trade,” Betkin told the newspaper.

TAV-ADPM had offered 16.5 percent of fuel trade to the government, he noted, the highest deemed feasible, and that at 27 percent, flight arrivals to the Maldives would be affected by rising fuel prices.

“The main thing is the fuel. If the fuel prices are high, no one will take in fuel from there – Maldives will lose that income. The airlines will also focus to other destinations,” Betkin told Haveeru.

The government’s Net Present Value calculations:

  • TAV-ADPM
    Upfront fee: US$7m
    Variable concession fees share – non fuel – 2011-2014: 31%
    Variable concession fees – fuel – 2011-2014: 16.5%
    Variable concession fees share – non fuel – 2015-2025: 29.5%
    Variable concession fees – fuel – 2015-2025: 16.5%
    NPV: 454.04
  • GMR-MAH
    Upfront fee: US$78m
    Variable concession fees share – non fuel – 2011-2014: 1%
    Variable concession fees – fuel – 2011-2014: 15%
    Variable concession fees share – non fuel – 2015-2025: 10%
    Variable concession fees – fuel – 2015-2025: 27%
    NPV: 495.18
  • Unique-GVK
    Upfront fee: US$27m
    Variable concession fees share – non fuel – 2011-2014: 27%
    Variable concession fees – fuel – 2011-2014: 9%
    Variable concession fees share – non fuel – 2015-2025: 9%
    Variable concession fees – fuel – 2015-2025: 9%
    NPV: 266.94
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