Expatriate workers becoming “very desperate” in wake of blackmarket dollar crackdown

Low-wage expatriate workers in the Maldives are becoming increasingly desperate in the wake of a government crackdown on the blackmarket exchange of rufiya into US dollars.

Many of the country’s 100,000 foreign workers, particularly a large percentage of labourers from Bangladesh, are paid in Maldivian rufiya by their employers and are forced to change the money on the blackmarket at rates often several rufiya higher than the government’s pegged rate of Rf12.85, before sending the money to their families.

Banks have been reluctant to sell dollars at the pegged rate in more than token quotas for much of the last year, a symptom of the ongoing dollar shortage – even those with dollar accounts have reported difficultly withdrawing cash at the counters without appropriate connections within financial institution.

Several expatriate workers Minivan News spoke to expressed frustration that banks were refusing to exchange rufiya to dollars, only to hand over money to local residents next in the queue.

A well-known figure in the Bangadeshi community, Saiful Islam, who has been in the country for 28 years, told Minivan News that many people were becoming “very desperate.”

“They are struggling to get money remitted to relatives and parents at the other end. This is a very desperate situation for them,” he said.

“There are some people who work in resorts and who are paid in US dollars who travel to Male’ and sell them at a much higher price than the government’s [pegged rate] of Rf12.85, sometimes as high as Rf14 or Rf15. There are people who are so desperate they will buy dollars at any price because they have no other choice,” Islam said.

“Without taking this demand into consideration, I don’t think a crackdown will work. I don’t think it is unfair to abide by the rules when you are in another country, however that changes when people become desperate – look at people in Libya, do you think they will apply by the government’s rules and regulations?”

“There needs to be an outlet where they money can be changed to US dollars, even 50 percent of it. Otherwise, why are they here? They have a big family at the other end who depend on their income.”

Unable to change money legitimately and under pressure to provide for families at home, and unable to leave due to the expense of air travel, debts owed to unscrupulous recruiters or common practices such as employers holding workers’ passports until the conclusion of their contract, many workers are functionally left without options other than to risk arrest.

Bangladesh’s High Commissioner to the Maldives, Rear Admiral Abu Saeed Mohamed Abdul Awal, acknowledged the problem was one that ”all expatriates face, because all their revenue is earned in local currency, but when they go to pay remittances it must be paid in dollars.”

The crackdown, Awal said, was the government’s prerogative, “however our concern is the payment of expats in local currency. There needs to be a proper government arrangement for repatriating salary.”

“This has become a pressing problem and a serious concern, however the availability of dollars is a longstanding issue. The issue of dollar scarcity is an internal matter for the Maldives.”

The President’s Press Secretary Mohamed Zuhair told Minivan News that there was an “expatriate element” to the dollar shortage faced by the Maldives due to the high numbers of “illegally-employed workers buying dollars on the blackmarket and transferring them overseas.”

Zuhair claimed that every expatriate arriving in the Maldives came in on a contract “stating what currency he would be paid in. The onus is on the employer to pay in US dollars.”

“If [the worker] accepted a contract paid in rufiyaa, then if he wants to send dollars back to his country he will have to change it at the bank when and if that is possible, or on the blackmarket [and risk arrest]. Banks have a quota at which they sell dollars based on need and supply.”

Zuhair said the police crackdown targeting the illegal sale of dollars by both licensed and unlicensed vendors had made “considerable progress, with two arrests.”

“The government hopes [the crackdown] will stabilise the dollar market, black or otherwise, and create a scenario whereby the dollar dips so anyone hoarding dollars will release their reserves,” he said. “We have the numbers and the numbers are clear: we have enough dollars in the country.”

Meanwhile, Zuhair said, the government was seeking to replace the Governor of the Maldives Monetary Authority, Fazeel Najeeb, “who has not effected any changes to rectify this situation.”

“Najeeb is known to be affiliated with the People’s Alliance (PA) party and its leader, Abdulla Yameen, the former Minister of Trade and half brother of the former President. He is said to be a guarantor of the former regime and retains tight control of the MMA,” Zuhair alleged.

“From the government’s point-of-view the MMA needs to be much more involved in the current situation, rather than the Governor being away on study leave. It has not released a single piece of regulation to address this issue.”

Islam meanwhile pointed out that the government had long been stating it intended to reduce the number of expatriates working in the Maldives – currently a third of the total population – “but we do not see this happening in practice.”

“Every day a lot of people are still coming into the country, on tourist visas from countries such as Sri Lanka and India,” he said. “There are very few genuine tourists arriving from Bangladesh, mostly they are on work permits. Why are they being allowed in without any work being attached to the work permits?”

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Proposal to lower legal age of juveniles to 16 may contradict UN convention, warns HRCM

The Human Rights Commission of the Maldives (HRCM) has met with opposition Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahlouf after he presented an amendment to the law on protection of the rights of children redefining all persons above the age of 16 to adults.

Currently the legal age of children is all persons above the age of 18.

”In yesterday’s meeting the commission discussed the challenges that we may face in protecting and upholding the rights of children,” the HRCM said in a statement. ”The commission highlighted the importance of providing many of the rights mentioned in the law on protection of the rights of children to all persons below the age of 18.”

HRCM also requested that all persons below the ago of 18 should have all the rights mentioned in the UNICEF’s Convention on the Rights of the Child (CRC).

Mahlouf presented an amendment to parliament to designate only persons under the age of 16 years as juveniles last week, lowering the age limit by two years.

”The purpose of changing the age is due to the significant increase in involvement of minors in crimes sinister in nature, and they cannot be sentenced to the full extent as they are considered minors,” said Mahlouf. ”Although they are considered as minors, they are sometimes very dangerous.”

Mahlouf said he has noted that children of the age 16-18 are more likely to be engaged in criminal activities because many finished their ordinary level education at the age of 16, and most of them did not prefer further studies which was leading them to the wrong path.

Speaking at a DRP rally Mahlouf said according to information he gathered to draft the bill, more than 600 young people have committed or have assisted committing assaults.

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MDP MPs refusing to accept committee allowance

Maldivian Democratic Party (MDP) MPs are coming forward to declare they would not accept a Rf20,000 committee allowance on top of their salaries, if approved by parliament in the controversial MP Privileges Bill.

The MPs came forward in support of the party’s Chairperson MP Mariya Ahmed Didi, who yesterday withdrew her resolution to cut the allowance after the MDP Parliamentary Group voted in its favour.

“I was not at that meeting but I bowed to the party’s rules and took it out,” Mariya told Minivan News yesterday, adding that she had informed parliament that she did not wish to receive the allowance herself.

MDP’s internal branches were today criticising their parliamentary group following the decision.

Official website of MDP today carried a statement that MDP MPs Eva Abdulla, Hamid Abdul Gafoor, Ilyas Labeeb, Mohamed Gasam, Mohamed Nazim and Ibrahim Rasheed had also announced that they did not support the committee allowance and would not accept it.

Following Mariya’s withdrawal of the resolution opposition Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahlouf resubmitted it.

“I was the first one to raise it before Mariya, but the Speaker [DRP MP] Abdulla Shahid went with Mariya’s changes, perhaps because of the factional fight [the opposition] is having. When Mariya withdrew it I resubmitted it.” Mahlouf said yesterday.

Increasing MP salaries by Rf 20,000 would be a huge blow to parliament’s credibility, Mahlouf said, “as the public do not believe we are working to their expectations.” he said.

MDP MP Ahmed Easa also said he did not support the committee allowance, but he said the MPs who did support the committee allowance “have reasonable points.”

”It’s true what they say, MPs have so much to do with their salary each month. People can’t even imagine how many calls a MP receives each day asking for help,” Easa explained. ”Anyone in trouble from a area will run to their MP first, MPs have to lend money for people in need of medication, even for reasons such as people coming to get money to pay the school fees of their children.”

Easa also explained that most of the MPs were not from Male’, which forces them to live in rented apartments.

”As everyone knows, a standard apartment’s rent in Male’ will be Rf10000-20000 (US$750-US$1500), and what about all the phone calls that MPs have to make, that costs an additional Rf5000 (US$375) each month, and what about their family, wife and kids?” he asked, claiming that MPs “have to spend most of their salary on society.”

”As for me, there has never been a month that I have saved any amount of money in my bank account. I am ready to provide any document necessary to prove it,” he said.

However, Easa said due to the economic condition of the Maldives it was not wise to increase the salaries of MPs or any other institution of the government.

”The government’s recurrent expenditure may rise over 80 percent next year which means there will be only 20 percent of the budget to spend on development,” Easa said.

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Criminal Court extends detention of MP Adil to 15 days

The Criminal Court last night extended the detention of Maldivian Democratic Party (MDP) MP for Maradhoo Area Hassan Adhil to 15 days, following his arrest yesterday on charges of child molestation.

The Criminal Court asked police to hold Adhil in detention at a location determined by the Home Ministry, after a closed hearing to which journalists were denied access.

Police Sub-Inspector Ahmed Shiyam confirmed that Adhil’s detention was extended and that the MP was in police custody.

Yesterday morning an arrest warrant was issued by the Criminal Court for the arrest of the former opposition-aligned Dhivehi Qaumee Party (DQP) MP, who jumped to the ruling MDP in September last year.

Following the signing, Adhil claimed he had switched parties “not by anyone, I took this step because of the pulse of the people.”

”I believe that the government is conducting many development projects at a high speed, and I signed with MDP for the development of my area at the request of [my constituents].”

Leader of the DQP Hassan Saeed declined to comment on Adhil’s decision at the time.

Report of the investigation of the MP appeared in newspaper Haveeru last month, which based the story on a source within the Human Rights Commission of the Maldives (HRCM). However HCRM President Maryam Azra denied knowledge of the investigation and the story was removed from Haveeru’s website.

MDP Chairperson Mariya Ahmed Didi told Minivan News yesterday that if Adhil was found guilty “then of course the party should [take action]. The party does not condone such acts. But we should only speculate after the court has come to a verdict.”

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Laamu Atoll Council goes to court to reclaim assets

Laamu Atoll Council has filed a case in the Civil Court against the government in a bid to reclaim the council’s assets, after it was requested by the National Office to hand over the assets to other authorities.

President of the Council Ibrahim Naseer told Haveeru that the council had not yet handed over the assets,

“The Decentralisation Act stipulates that the assets, formerly under the Atoll Office, would be transferred to the council,” he claimed.

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Maldives climbs to fourth in “Seven Wonders” competition

The Maldives has climbed to fourth place in a competition to be named as one of a “New Seven Wonders of Nature” after having fallen down the rankings in January this year.

The Maldives Tourism Promotion Board (MTPB) said it had been working at international travel shows and other events to try and boost its standing in the competition, whose finalists are expected to be announced on November 11 this year by Switzerland-based organiser New Open World Corporation, according to Haveeru.

Along with the Maldives, 28 destinations are competing within the competition, which organisers claim is 90 percent based on international voting and 10 percent on responses from within the host nations themselves.

Back in January, the MTPB had said that the country had fallen to fifth place in the competition after having been previously placed third.

According to the event organisers, the “New Seven Wonders” programme is operated under two distinct arms as both a Foundation and a commercial operation.

Along with the not-for-profit New7Wonders Foundation, the group has claimed to have transferred its commercial operations to its licensing group, New Open World Corporation, which it has said is needed to cover costs.

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Democracy not the Maldives’ only game in town: Himal

Two years after the current Maldivian government assumed power, democracy most certainly has not become ‘the only game in town’, writes Azra Naseem for Himal magazine.

“Ample evidence has emerged during this short period that other currencies of power, deeply embedded in socio-cultural norms formed over centuries of varying types of authoritarian governance, are still very much in circulation in the country. These forms of power most clearly and commonly manifest as clientelism and patriomonialism, where power is exercised through informal networks based on political favours, connections between friends, family and a clique of elite individuals and groups. Such networks of informal power exist in perpetual tension with the official institutions of democracy. In the Maldives, they have created an atmosphere that discourages popular participation, makes a mockery of the rule of law, renders problematic the delivery of public services, discourages both domestic and foreign investment, and is highly conducive to corruption, rent-seeking and other forms of abuse.

“Three months into 2010, the Majlis passed a no-confidence motion against the then-auditor general, Ibrahim Naeem, over allegations of corruption. Naeem was at the time involved in high-profile investigations of members of the former regime for alleged embezzlement of millions of (US) dollars from state funds. The charges, for which the Majlis eventually removed Naeem from office, accused him of using a state credit card to buy a tie and charter a boat for a domestic trip. All MPs from the ruling Maldives Democratic Party (MDP) voted against the motion, but former President Gayoom’s Dhivehi Rayyithunge Party (DRP) holds the Majlis majority, with the People’s Alliance, led by Gayoom’s brother, MP Abdulla Yameen. Several MDP MPs alleged the accusations against Naeem were politically motivated, but without a Majlis majority, failed to prevent Naeem’s removal from office. With Naeem gone, the cases he was investigating disappeared from the public domain.

“Both the law community and the media have been notably lax in taking issue with the lack of an independent judiciary. This silence exposes the most inexplicable features of the Maldives’ new democracy; it is also one of its most dangerous. The Maldivian media is an interesting beast, the make-up and characters of which is yet to be analysed in any depth despite the explosion in media outlets and output with the transition to democracy. It was only recently, in February this year, that the Maldives Media Council, established in May 2010, got around to adopting a code of ethics for the country’s media professionals. Prior to this, only the state-owned broadcaster, MNBC, possessed a written code of ethics, and that was only published in mid-2010.

“Very interesting in the context of media-judiciary relations is a provision in the Media Council’s Code of Ethics banning the media from publishing any material that contradicts or questions the findings of an official investigative body or the ruling of a court. Only legal or professional experts or academic analysts are allowed to publish such commentary, according to the Code. This raises two possibilities: the Maldivian Media Council does not regard local journalists as professionals with the ability to critique or question a court ruling; or two, it regards court rulings as beyond scrutiny.

Full story

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President appoints members of Maldives Broadcasting Commission

President Mohamed Nasheed has appointed members to the Maldives Broadcasting Commission following their approval by parliament.

Members appointed were: Badhuru Naseer, Aishath Hana, Mohamed Shaheeb, Mariyam Shauqy, Ibrahim Ashraf, Moomina Adam and Abdulla Shujau.

Letters of appointment were presented at a ceremony held yesterday, during which the President emphasised the important of the media to governance and development, and urged the commission to take no action that would constrain media freedom.

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