Month: June 2010

Island Aviation Services Rf100 million shortfall to be covered by government

The government will cover the Rf100 million annual shortfall projected for Island Aviation Services (IAS) from the privatisation of Male International Airport, according to company managing Director Ibrahim ‘Bandu’ Saleem. “We are a government company controlled by government policies.”

“It is not a loss, actually. It is a shortfall of Rf100 million annually. That means we are making profits. We are paying dividends to the Finance Ministry. But we are short of cash for our operations.” The government will provide a monthly instalment of around Rf8 million.

Saleem added that “the turbulence” was caused by delays in opening new resorts set for 2008-2010. “The resorts did not open when we brought aircraft after making contracts based on that. So we are short of cash because we have to settle the aircraft loan. That is not something we can do alone. Our operations will improve when the resorts open,” he said. Projected revenues “vanished in a puff of smoke” when Seenu (Addu) atoll Herathera resort stopped operations in mid 2009. “That shortfall is plugged by other operations.”

“We are increasing fares by Rf50 every six months,” said Saleem. “That is not a secret… but when we consider the reality, Island Aviation is the cheapest on per kilometre basis.”

Fares must increase because the prices of engine spare parts increase by 10 percent annually, and also due to inflation, Saleem explained.

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US$150,000 allocated by UNDP for community based projects in 2010

US$150,000 has been allocated by the UNDP for community based projects in 2010 delivering biodiversity conservation, climate change mitigation, protection of international waters, prevention of land degradation and elimination of persistent organic pollutants. The amount will increase to US$200,000 in 2011.

The programme will help more vulnerable areas and communities to overcome local environmental problems, says UNDP Resident Representative Andrew Cox.

Community based organisations, NGOs, small businesses, youth groups and academic and scientific groups are invited to make proposals, which must be in line with the Country Programme Strategy developed for Maldives.

Despite a maximum of US$50,000 being allocated for projects for up to 24 months, most applications are expected to be for lower amounts. Planning grants of up to US$2,000 may be issued to enable people and groups to develop proposals that serve as precursors for full scale projects.

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Sheikh Nasrulla signs with MDP

The Secretary General of the Maldivian Democratic Party (MDP) Ahmed Shah has confirmed that Sheikh Nasrulla Mustafa has signed to join the party.

Shah said Sheikh Nasrulla was “a well educated and very capable person”, and that his decision to sign with MDP was a major progression for the party.

”He signed the application form last week and it has now been sent to Elections Commission (EC) for approval,” Shah said. ”Then he will officially be a member of MDP.”

Sheikh Nasrulla declined to comment on this story, instead recommending that Minivan News clarify his application with the EC.

”If I applied and if the EC approved [my application] then I will be a member of MDP,” said Sheikh Nasrulla, when asked to confirm his application.

Religious website Raajjeislam reported that Sheikh Nasrulla had recently declared that the purpose of forming political parties and NGOs was to create splits in a society, and these institutions were therefore against the principles of the as-salaf as-saliheen (the earliest converts to Islam).

The website also said that Sheikh Nasrulla has in his sermons claimed that voting was not allowed in Islam, and that it was an ‘enmity’.

Raajjeislam’s report claimed that the government was attempting to trying to displace the Islamic Minister Dr Abdul Majeed Abdul Bari  and State Islamic Minister Sheikh Mohamed Shaheem Ali Saeed from their posts.

According to daily newspaper Haveeru, the Islamic Ministry has recently restricted Sheikh Nasrulla from using microphones inside mosques to deliver sermons, which Sheikh Nasrulla claimed was preventing him from preaching.

Haveeru reported that the restriction was put in place by the Islamic Ministry because of “numerous complaints” the Ministry had received.

Sheikh Nasrulla  has reportedly disputed the lectures of other prominent Islamic scholars during his sermons, including Dr Zakir Naik, who recently visited the Maldives.

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The Police are the law enforcement agency, not Islamic Ministry and Fiqh Academy: Islamic Minister Baari

The Islamic Ministry and the Fiqh Academy are not law enforcement or investigative agencies, but serve as advisory bodies to relevant government offices, said the Minister of Islamic Affairs Dr. Abdul Majeed Abdul Baari while answering questions from MPs in the Majlis yesterday.

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Demands for exclusive licence delay establishment of Islamic bank in the Maldives

The Maldives Monetary Authority (MMA) has confirmed that two banks have applied for the licence to establish an Islamic bank in the Maldives.

The first proposal is a public private partnership (PPP) between a multinational company and the Maldives government, and the second is for a PPP between a UAE company and the Maldives government.

The Finance ministry says that the new bank will focus on issuing loans to businesses, and the government is hoping that services will be extended to the atolls as well.

Both the government and the licence seekers are responsible for the delay in establishing an Islamic bank, according to Finance minister Ali Hashim. “Each party wishes to get an exclusive license but the government cannot give an exclusive license to any party. So the negotiations have dragged on and this has delayed the process,” the minister explained.

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SAARC Summit – new road and convention centre for Addu atoll

The hosting of the next SAARC Summit in southern Maldives is the subject of government consultations in Male, according to reports claiming that senior government officials, the State Minister for South Province Mohamed Naseer, and citizens of the southern province have attended the meetings.

The construction of a convention centre in Addu atoll, and a new road, were also discussed.

People attending the meetings believed that it would be better if the convention centre could be built so it could be converted into a single hall once the SAARC Summit is over.

The Summit budget is expected to be US$10 million, and the government of Maldives hopes it will be raised from friendly countries and donors, says the President’s Office press secretary Zuhair. The government has begun fundraising for the event, he added.

“We have already got some kind of assistance from donors which could be utilised for the SAARC Summit. When these donations are connected with the projects for the Summit, we hope that the total budget for the meeting can be reduced,” says Zuhair.

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Police regulations need Majlis scrutiny – amendments to Police Act proposed

All police regulations would need Majlis approval in amendments to the Police Act proposed by MP for Fares-Mathoda, Ibrahim Muththalib.

Police can amend regulations at any time, and such unconditional powers are not necessary, says Muththalib.

According to the new proposals, police regulations on Using Weapons, Police Immunities and regulations concerning the Police Integrity Commission, would have to be sanctioned by the Majlis.

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President Nasheed attending climate change conference in Italy

President Nasheed is attending a climate change conference in Italy, as well as an investment forum, and conducting more negotiations concerning Bikoka University’s proposed extension in the Maldives, according to the President’s Office press secretary Mohamed Zuhair.

Miadhu Daily reports that the cost of President’s visit is being covered by the organisers of the meeting – Italy’s Centre for a Sustainable Future and the Italian government.

President Nasheed will also call on the President of Italy and hold discussions with senior officials of the Italian tourism sector.

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