Nexbis to seek legal redress for “irreparable damage to reputation and brand name”

Mobile security solutions vendor Nexbis has announced it will be taking legal action against parties in the Maldives, claiming that speculation over corruption was “politically motivated” in nature and had “wrought irreparable damage to Nexbis’ reputation and brand name.”

“Although we understand that the recent media frenzy and speculation of corruption are politically motivated in nature and not directly related to Nexbis, it has had an indirect impact on our reputation and brand name,” the company said in a statement provided to Minivan News.

“Nexbis’ shareholders own and manage multi-trillion dollar assets globally and will not jeopardise their reputation for an investment return,” the company stated.

The Malaysian-based technology firm signed a concessionaire contract with the Department of Immigration in October 2010, to install an advanced border control system that is had said would collect and store biometric data on expatriate workers and eliminate abuse of (easily forged) paper documentation.

The government has struggled to tackle the problem of foreign worker exploitation. There are believed to be 100,000 foreign workers in the country – almost a third of the country’s total population – but no data is available on how many are illegal.

International agencies have taken a dim view of the problem, most notably the US State Department, which last year placed the Maldives on its tier two watch-list for human trafficking. Minivan News reported in August 2010 that the exploitation of Bangladeshi workers alone was an industry was worth at least US$43.8 million a year, rivaling fishing as a source of foreign exchange.

Following the signing ceremony with Nexbis, the Anti-Corruption Commission (ACC) announced it had received “a serious complaint” regarding “technical details” of the bid, and issued an injunction pending an investigation into the agreement.

“On the very day we signed the contract, barely hours, maybe minutes later, the ACC had drafted a letter saying there were suspicions of corruption involved with the decision,” Minivan News was told by an Immigration Department source, who asked not to be identified.

Nexbis shares immediately dropped 6.3 percent on the back of the ACC’s announcement.

Last week, facing political pressure ahead of the local council elections, President Mohamed Nasheed upheld the ACC’s request that the roll-out of the technology be postponed.

The ‘stop-work’ order amounts to an indefinite hold on the project, with little optimism for a quick outcome. The ACC has not completed an investigation since 2008.

In its statement, Nexbis noted that the system and related technologies to be installed in the Maldives “have been implemented in over 100 locations worldwide including the Americas, Europe and Asia and comply with ICAO (International Civil Aviation Organisation) and other international standards.

“Nexbis is an international company with strict internal policies that conform to International Anti-Corruption laws and strictly enforce the policy. All Nexbis staff have strict government security clearance to carry out national security projects.”

The company stated that it was invited along with other Malaysian companies to invest in the Maldives during a government road show, and was shortlisted for the Immigration Border Control System (MIBCS) tender after making an expression of interest in February 2010, together with several other companies.

“Subsequent to that, Nexbis together with the other shortlisted companies were invited to respond to the RFP (request for proposal),” the company stated. “Nexbis followed the strict and transparent submission and evaluation process requirement of the government of Maldives and emerged as the successful bidder for the project in a public opening of the bid together with all the other bidders.”

Those bidders, Nexbis said, were informed that they would be subject to both a technical evaluation by the Immigration Department and an independent financial evaluation by both the Ministry of Finance and the Tender Board.

“The contract negotiations involved lawyers from the Attorney General’s office, Immigration, as well as the Ministry of Finance prior to a unanimous conclusion by all parties and final sign off by the Attorney General’s office of the Government of Maldives,” Nexbis stated.

On October 17, 2010, Nexbis signed a concession agreement with the Department of Immigration to implement an Immigration Border Control System (MIBCS) under a BOT (Build, Operate and Transfer) arrangement. This allowed the system to be installed at no upfront cost to the government, while Nexbis would levy a fee on work visas issued over the lifespan of the agreement.

The concessionaire contract, Nexbis noted, “is legally binding and Nexbis will exhaust all avenues to ensure that its interest is protected in this matter.”

“Nexbis’ international lawyers have been building a libel and defamation case since the media frenzy to enable legal proceedings against certain individuals and institutions that have wrought irreparable damage to Nexbis’ reputation and brand name,” the company stated.

“In addition, we will be suing for compensation for collateral and consequential damages that arise as a result of direct or indirect implied allegations by individuals or institutions. We have gathered significant and indisputable information to mount a successful case and will be taking action.”

Mohamed Zuhair, Press Secretary for President Mohamed Nasheed, said “I agree that this is a negative development, and that Nexbis should consider going to court seeking redress [for the] delays.”

“The ACC has only said that there were ‘instances and opportunities’ where corruption could have occurred, but said they were not sure if it did happen and issued an injunction.”

The President, Zuhair emphasised, had “simply stated that he will cooperate with the ACC”, and “has not insinuated that corruption is involved [in the Nexbis deal].”

He added that the country’s independent institutions – and its judiciary – had been formed during an opposition majority.

“For all the government’s good intentions, the independent institutions have yet to do anything to accelerate the government’s efforts to provide prosperity for the public,” he claimed.

Zuhair pressed for patience, noting that “it is difficult for the government at the timebeing, during local council elections. These are problems not unique to the Maldives, and foreign investors should take heart in the democratic process we have brought in. On a good day, the ACC is in favour of foreign investment.”

He acknowledged the scope of the problem that the agreement was intended to address.

“Expatriate workers get hit twice – they pay agents in the country of origin, then come and pay an agent here, or even the employer. It is illegal and it has been going on for 30 years – there is now an ingrained culture [in the Maldives] of taking advantage of the hiring of expatriate workers to make money from them.”

“I am confident justice will prevail,” he added.

Minister of Economic Development Mahmoud Razee acknowledged that the situation with Nexbis was “unwelcome”, but said the Ministry “believes investors conduct due diligence on political risks in an emerging democracy with a lot of fluidity.”

“The government of the Maldives will continue to promote democracy and stabilise the economy to attract investors,” he said.

Nexbis appeared less convinced, and warned of potential ramifications to foreign investment in the Maldives should investors become collateral damage in local politicking.

“The ultimate collateral damage will be to the Maldivian public in the long term as international investors will shy away from the country unless commitments made are honored,” the company said.

“A single default in the government’s commitment will have a long and lasting effect including a significant re-rating of the investment risk of the country.”

The Anti-Corruption Commission (ACC) was not returning calls despite numerous attempts over several days.

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Moral in the political plight of former President’s classmates, says MDP

The collapse of longstanding dictatorships in Tunisia and Egypt, leaders of which were classmates of former Maldivian President Maumoon Abdul Gayoom, carried moral lessons for the Maldives, claimed Maldivian Democratic Party (MDP) parliamentary group leader ‘Reeko’ Moosa Manik.

”Today the citizens of Arab countries have stood up against their leaders – classmates of [former President] Maumoon, in fact – who were practicing dictatorship like Maumoon,” said Reeko Moosa. ”Take a look at the situation in Tunisia, take a look at the situation in Egypt, where Maumoon received his education.”

Moosa said the citizens of the Maldives should “see the moral” in the situation in these countries.

”The citizens of the Maldives should see the moral in the situation in these countries, ahead of the local council elections, and should not let Maumoon’s regime reinstate their power,” Reeko Moosa said. ”I call citizens of the Maldives to take a look at the situation in these Arab countries  as an example.”

Minivan News attempted to contact DRP MP Ahmed Nihan for a response, but he had not replied at time of press.

If the opposition won the local council elections, Moosa claimed that the situation of the Maldives was likely to become that of Tunisia and and Egypt. If the citizens wished to uphold democracy and not let a dictatorship return in the Maldives, people should vote for MDP in the local council elections, he contended.

President Mohamed Nasheed has meanwhile spoken to opposition leader in Egypt, Mohamed El Baradei.

”Egyptians would have taken note of the lessons learnt from the Maldives, in their own struggle for democracy,” Nasheed said.

The President’s Office said that during the conversation Nasheed spoke about the struggles Maldivians endured to hold the country’s first  democratic elections in 2008.

”President Nasheed said he was deeply concerned to hear that Mr El Baradei remained in detention under house arrest in the Egyptian capital, Cairo,” said the President’s Office. ”The President pointed out to Mr El Baradei that Maldivians have always loved freedom and thus Maldivians will always support those who are peacefully advocating for political freedom in Egypt.”
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Charges against Sheikh Fareed “political matter, not a religious issue”

The President of the Islamic Foundation of the Maldives (IFM) Ibrahim Fauzy has called on the authorities to withdraw charges against Sheikh Ibrahim Fareed Ahmed, after he appeared in the Criminal Court charged for violating the former Religious Unity Act.

The Court alleged that Sheikh Fareed had preached on some islands without permission from the government authorities in 2007.

Sheikh Fareed was summoned to the Criminal Court today and was given the chance to respond to the charges.

”The former Religious Unity Act is contradictory to the new constitution, it is not acceptable to charge Sheikh Fareed over this issue,” said Fauzy. ”It is all related to politics. The former government confiscated his permission to preach, and later he only spoke at political rallies when he was in the ruling Maldivian Democratic Party (MDP).”

Sheikh Fareed was arrested alongside many MDP delegates while he was aboard a boat traveling from Thinadhoo in Gaafu Dhaalu Atoll in the year 2007, said Fauzy.

”Perhaps he sometimes gave advice to people at political rallies, but that cannot be considered preaching,” he said. ”It is a political matter, not a religious issue.”

Sheikh Fareed told Minivan News today that he was not sure about the nature of the charges against him.

”They are saying that I preached without the permission of authorities,” said Sheikh Fareed. ”I have requested the Criminal Court provide me details of the case.”

Sheikh Fareed said that he could only be certain of the case when he received the documents from the court.

On January 25, 2007, local newspaper ‘Miadhu’ reported that Sheikh Fareed was arrested moments after he walked out of ‘Ibrahimi Mosque’ after concluding Isha preayers.

Miadhu then reported that he was arrested for allegedly taking part in a demonstration that took place in Male.

Later on March 17, 2007, Miadhu reported that he was released from house arrest, kept in Maafushi jail for a few days, and then returned to house arrest.

Furthermore, Sheikh Fareed was arrested several times during the former regime for his participation in anti-governmental protests.

According to the local media, he was also once charged with terrorism but was released after the court found him innocent.

In 2007 he was the former vice president of MDP religious council but resigned after alleging that the party was against Islam.

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Democratic Maldives an important global symbol: US State Department

The Maldives is a powerful symbol of a tolerant and democratic Muslim society, US Deputy Secretary of State James Steinberg said yesterday during a visit to the country.

Steinberg was responding to a question regarding the extensive US interest in a such a small and isolated island nation in the middle of the Indian Ocean – an interest apparently not extended to nearby countries such as the Seychelles.

“We have very practical interests in common, such as dealing with the challenges of climate change and piracy – security in this region is of enormous importance to us,” Steinberg said, in likely reference to US military interests in Diego Garcia, south of the Maldives.

However as importantly, Steinberg said, the Maldives’ embrace of democracy showed that convictions such as democracy and freedom of expression “are universal values that transcend culture, history and religion.”

“The Maldives comes from very different traditions and history, but people here aspire to the same goals that people around the world aspire to. That’s a powerful symbol, and shows that these are not just American ideals or Western ideals, but universal ideals,” he said.

Such a symbol, he explained, was of great value to the State Department.

“As I travel around the world and see the different ways in which different societies and cultures interpret democracy and human expression, I can point to the Maldives as an example – that’s as important as the practical cooperation.”

The Maldives, he explained, represented an emerging model for “a tolerant and democratic Muslim society”, and “could have enormous influence in the thinking of countries around the world, as you try to build this new model.”

Steinberg expressed admiration for the “remarkable efforts” on the international stage “for such a small country at the early stages of economic and political development.”

The upcoming local council elections, he said, we an “important step” in building that democracy, “and we have confidence that they will be calm and respectful.

Speaking to press assembled at the American Centre in the National Library, Steinberg noted that freedom of expression was “the oxygen of democracy.”

Challenged as to whether this moral position contradicted the US government’s pursuit of Wikileaks founder Julian Assange, who published hundreds of thousands of State Department diplomatic exchanges in a call for greater political transparency, Steinberg replied that the State Department “has a legitimate interest in protecting the confidentiality of some of the conversations we have, not the least of which [concern] human rights when we engage with people who are persecuted.”

“We place high emphasis civil society – unlike in the Maldives where I can meet freely with civil society, there are other far more repressive countries where we have to meet in confidence. People take great risk to meet with us and share their ideas. There is a responsibility to protect those confidences – there is an appropriate place for confidentiality in government but we also believe in the maximum openness that can be achieved. We have a strong commitment to freedom of information, and President Obama has worked hard to reduce our reliance on classified information. That’s very important to us.”

Concerning the State Department’s listing of the Maldives on its tier two watch-list for Human Trafficking last year, two weeks after the Maldives was given a seat on the UN Human Rights Council, Steinberg reiterated that “we recognise there are challenges, particularly labour trafficking and making sure people seeking economic opportunity are not exploited.

“This region, quite frankly, has particular challenges in dealing with forced labour and related issues on trafficking. What we are looking for is a road-map and a way forward. The watch-list is not intended to punish, but to motivate efforts to go forward.”

Specific areas raised with the Maldivian government by the senior US diplomat included the challenges of economic development, the need to strengthen education and build educational opportunities, as well as the challenges of confronting growing extremism “and how we can help promote tolerance in the Maldives.”

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Egyptian army shows signs of supporting protesters against Mubarak

Journalist Robert Fisk writes from Cairo in the UK’s Independent newspaper that tank crews deployed to contain riots had begun to show solidarity with the demonstrators.

“Their crews, in battledress and smiling and in some cases clapping their hands, made no attempt to wipe off the graffiti that the crowds had spray-painted on their tanks. “Mubarak Out – Get Out”, and “Your regime is over, Mubarak” have now been plastered on almost every Egyptian tank on the streets of Cairo. On one of the tanks circling Freedom Square was a senior member of the Muslim Brotherhood, Mohamed Beltagi.

“Earlier, I had walked beside a convoy of tanks near the suburb of Garden City as crowds scrambled on to the machines to hand oranges to the crews, applauding them as Egyptian patriots.

“However crazed Mubarak’s choice of vice-president and his gradual appointment of a powerless new government of cronies, the streets of Cairo proved what the United States and EU leaders have simply failed to grasp. It is over.”

Read more

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Supreme Court invalidates two local council candidates

The Supreme Court has invalidated the candidacy of local council candidates Aseeth Thuafee, competing for Himandhoo in Alif Alif Atoll (as MDP), and Abdul Bari, who competed for Bodufolhudhoo in Alif Alif Atoll (as an independent).

Haveeru reported that Aseeth was invalidated because of a conviction for stealing an outboard motor, a crime for which he was sentenced to banishment for 13 months (unserved).

Bari had been convicted in 1994 for “treachery” of Rf 20,000, Haveeru reported.

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Eco film festival concludes in Male’

An environment-themed film festival was concluded yesterday after screening three days worth of films and documentaries from around the world for local audiences in Male’.

The Safe Planet Film Festival was held in collaboration between a number of parties including the Ministry of Housing and Environment and Indian environmental NGO Terre Policy. the festival showcased a number of films concerning environmental issues ranging in length from 30 second shorts to hour-long documentaries at the capital’s Olympus Theatre.

Other event organisers included the High Commission of India, the Maldives National Broadcasting Corporation (MNBC) and the Maldives Entertainment Company.

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Maldives inaugurates Italian university outpost

The Italy-based University of Milano-Bococca has inaugurated an outpost specialising in marine research in Magoodhoo, Faafu Atoll.

The site, which was opened yesterday by President Mohamed Nasheed, is said to reflect government aims to offer wider educational opportunities for pupils and students in the country.

Speaking at the launch, Nasheed claimed that beyond opening up opportunities for international students to study marine life in one of the world’s “most spectacular tropical ecosystems”, the outpost would also allow Maldivian students to benefit from international-standard educational facilities without leaving the country.

The University of Milano-Bicocca was established back in 1998 and offers students a number of courses ranging from disciplines such as economics and sociology to mathematics, physics and natural sciences.

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Arabs: The masters of their fate

Just two weeks ago, the authoritarian regime of Hosni Mubarak seemed as firm and immovable as the great timeless pyramids that symbolise his country of Egypt.

Today, the whole world is watching in suspended disbelief as tens of thousands of Egyptians openly defy Mubarak’s security forces – ignoring curfews, braving tear gas shells and water cannons, and tearing down giant posters of the powerful dictator that ruled over them for 30 years.

In parts of Cairo, law enforcement has melted away before the protestors, and the army has been called in to wrest back government control as Mubarak faces the largest public uprising since the Egyptian monarchy was overthrown in 1952.

Meanwhile, a sudden clamour for freedom is also posing serious challenges to despotic regimes elsewhere in the Arab world.

This unlikely revolution began with a humble Tunisian fruit-seller, Muhammad Al Bouazizi who, in desperation after policemen took away his wooden cart, doused himself in petrol and struck a match that would ultimately set the whole Arab world ablaze.

In the ensuing outrage, citizens rose up in revolt in Tunisia leading to an ignominious end to the 23 year old autocratic regime of President Zine Al Abidine Ben Ali.

The Tunisian president fled to Saudi Arabia with his family and close colleagues, where a Royal palace in Jeddah has reportedly been opened up to accommodate them.

A fascinating phenomena observed in this revolution is the manner in which a suppressed nation, long accustomed to arbitrary apprehensions and torture, could suddenly be overwhelmed by a single incident of tragedy – one moment of injustice that sent tremors throughout the population, leaving them seemingly immune to both pain and fear, as they took on a powerful, oppressive machinery.

The story is one that is intensely familiar to Maldivians. In 2003 the beating to death of Evan Naseem, an inmate of the Maafushi prison, sparked the first widespread riots in Male’.

As the unrest spread across the country, President Gayoom imposed a State of Emergency for the first time. However, it did little to bottle the popular grassroots revolution that successfully led to a new democratic constitution being adopted in 2008.

Egypt, on the other hand, has officially been in a State of Emergency since 1967, except for a brief 18-month period in 1980 and 1981; the Emergency was last extended by 2 years in May 2010.

Over 17,000 people are detained under the Emergency law in Egypt, and an estimated 30,000 political prisoners exist in the country. The Islamist Muslim Brotherhood, by far the most popular organised opposition party, has been branded a terrorist organization and remains banned in Egypt.

Surprisingly, even the Muslim Brotherhood appears to be struggling to catch up with the current mass protests that remain largely leaderless, but unabated in strength despite a death toll approaching 90.

For five whole days after the protests first started, no senior state official made a public appearance – an indication that the government was grappling with a response to the quickly unfolding revolution on the streets.

When Mubarak finally addressed the public in a pre-dawn speech aired on National television, it was with an air of hubris that characterises the 82 year old despot – he refused to budge, and sought to shift the blame to his nominal government cabinet, which he promised to replace by Saturday.

These actions are unlikely to satisfy the Egyptian protestors, and there might be more confrontation as Egypt prepares to flex its military muscle.

Another country living in a state of Emergency since 1992 is Tunisia’s giant neighbour, Algeria. In the aftermath of Tunisia’s successful revolution, protests have broken out all over Algeria – the largest uprising in two decades in a country that has witnessed a series of smaller protests in recent years.

Thousands of demonstrators have also poured out onto the streets of Sana’a in Yemen, the poorest of all Arab countries, where half the population lives under $2 a day, that nevertheless spends 40 percent of its state budget on maintaining its military force – the second largest in the Arabian peninsula after Saudi Arabia. President Ali Abdullah Saleh of Yemen has been in power for 32 years; he also controls and heads the powerful military.

Indeed, the military has often been referred to as the backbone of Middle Eastern dictatorships. It has been the final instrument of power for several despots – notably illustrated by the fact that all four Egyptian Presidents since the overthrow of the monarchy have been military figures.

Hosni Mubarak’s grip on power may now depend entirely on the loyalty of the Egyptian military – the tenth largest in the world – of which he is the Commander-in-Chief.

It would be a loyalty well-earned, for Mubarak has spent generously on his armed forces; of the $1.55 billion aid granted by the US in 2010, $1.3 billion was spent on the military. Egypt is the second largest recipient of US military aid after Israel.

A leaked cable from the US Embassy in Cairo, nevertheless, suggests that the Egyptian military has gotten weak and fractious over the years.

While many analysts had deemed it unlikely for the military to side with the protestors, it is noted that the military prevented police from firing on demonstrators on Saturday – and soldiers could be seen publicly fraternising with demonstrators at the Ramses square in Cairo. The decision of the military could indeed decide the course of events in Egypt.

A loyal armed force helped the Iranian government crush the largest mass demonstrations since the Islamic revolution, in 2009. The pro-democracy movement, also known as the Green movement, threw up some vivid images of protestors trampling over posters of Supreme leader Ayatollah Ali Khamenei.

Club-wielding basij, a volunteer militia owing allegiance to the Ayatollah and the Revolutionary Guard, raided University campuses and broke up crowds while armed forces shot civilians in the street. Eighteen months later, the Iranian resistance appears to have been overcome.

On the other hand, intervention from the military saved the Tunisian revolution. The military refused to obey President Ben Ali’s orders to fire upon protestors, and reportedly even deployed army helicopters to protect demonstrators from government snipers positioned on rooftops. General Rachid Ammar, the head of the Tunisian military, also declined to occupy the newly vacant seat of power.

Winds of change are already blowing through the streets of a jubilant Tunisia, as the caretaker government has released hundreds of political prisoners, and vowed to lift restrictions on Islamist and Communist parties that were banned under the former regime.

It might be premature to say if this marks the beginning of a domino effect reminiscent of the serial collapse of the Communist regimes in Eastern Europe. Tunisia might very well be the Arabia’s answer to Poland, whose example led to a series of revolutions across Hungary, Czechoslovakia, Bulgaria and Romania, ultimately leading to the collapse of a once mighty Soviet empire.

The shared nature of Arab grievances and their mutual solidarity was strongly visible. Thousands of protestors in Amman, the capital of Jordan, were heard chanting “Egyptian nation, our beloved, your redemption is near!”

Protestors in Cairo carried Tunisian flags, a symbol of hope for a region that has for decades been plagued by corrupt, autocratic and oppressive regimes propped up and armed by rich Western interests; a region where many citizens have never experienced political freedoms.

Speaking to BBC radio, an Egyptian blogger reiterated that “All they’re asking for is for their voices to be heard, for their dignity to be respected and to have a humane life, and to have political freedom.”

Egypt, being the region’s foremost cultural, intellectual and political hub, will likely set an example for people in other countries like neighboring Libya, whose citizens have been living under the dictatorial rule of Muammar Al-Gaddafi for 42 years.

In the words of Victor Hugo, ‘One can resist the invasion of armies, but one cannot withstand an idea who time has arrived’.

Clearly, the time for change has arrived for Tunisia, and hope exists that Egypt, Algeria, Yemen and other Middle Eastern dictatorships will be dismantled and see the power returned to the people.

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