Month: May 2011

Maldives will starve in three months: future Adhaalath head

Potential future President of the religious Adhaalath Party Sheikh Imran Abdulla has reportedly claimed that the Maldives will starve once the country exhausts its foreign reserve in three months.

Sheikh Abdulla told press that the party had been informed of this during a meeting with the Maldives Monetary Authority (MMA).

Sheikh Abdulla made the claims during an event at Kalaafanu school to announce that the party would be competing in the 2013 Presidential elections. He is currently running unopposed for leadership of the party, which is in coalition with the ruling Maldivian Democratic Party (MDP).

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Premature baby found in Coast Milk tin on Villingili

The corpse of a premature baby boy was discovered yesterday inside a Coast Milk tin on the island of Villingli, the second abandoned infant found in as many weeks.

Police Sub-Inspector Ahmed Shiyam told Minivan News that the dead child, believed by forensic examiners to have been born three months premature, was discovered in the discarded container near the powerhouse area of the island.

The baby was taken to Indira Gandi Memorial Hospital (IGMH) in Male’ for forensic examination before being buried, according to the police.

On May 5 a dead infant was been found in a plastic bag in the swimming track area of Male’. A medical examination later concluded that the baby’s had sustained cuts, bruises and other wounds.

Shiyam said that yesterday’s discovery of the dead infant on Villingli was not believed by police to reflect an escalating problem in the country concerning child abandonment or abortion.  However,  he said police did have serious concerns about the health implications for mothers of these abandoned children.

“Although we know this [abandonment] is happening, it is not something we believe is a growing issue. However, we request the public not support people who are thinking of abandoning a baby,” he said. “We are very concerned about the health of the mothers of these children, who are not receiving proper medical treatment or the drugs they may require for recovery.”

Police added that they had not yet made any arrests in connection with the discovery of either body and asked for members of the public with any possible information about the case to come forward.

In November last year another abandoned newborn was discovered alive in some bushes near the Wataniya telecommunications tower in Hulhumale’.

Abortion is illegal in the Maldives except to save a mother’s life, or if a child suffers from a congenital defect such as thalassemia. Several studies on HIV in the Maldives have identified risk factors including high levels of promiscuity and little use of contraception, and anecdotal evidence points overwhelmingly to a high rate of abortion.

In an article on the subject in 2009, Minivan News reported that many women unable to travel to Sri Lanka resort to illegal abortions performed by unskilled individuals in unhygienic settings.

Abortion-inducing pills and injections administered by amateur abortionists are one recourse while others turn to harmful vaginal preparations, containing chemicals such as bleach or kerosene. Although infrequent, some insert objects into their uterus or induce abdominal trauma, such is the stigma of having a child out of wedlock.

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Government invites IFJ to Maldives “to judge for itself”, after journalist body backs MBC

The Foreign Ministry of the Maldives has invited a delegation from the International Federation of Journalists (IFJ) to the Maldives “to judge [for themselves] whether the local media is able to meet the needs of the public it serves, and of freedom of expression in the Maldives.”

The invitation was given after the IFJ issued a statement supporting the transfer of assets of the Maldives National Broadcast Corporation (MNBC) to parliament’s Maldives Broadcasting Corporation (MBC).

The MNBC is a 100 percent government-owned corporation that controls the assets of the former State Broadcaster Television Maldives (TVM) and Voice of Maldives (VOM).

In April 2010 the then-opposition majority parliament triggered a tug-of-war for control of the state broadcaster after it created MBC, appointed a board, and then ordered MNBC transfer the assets to the new body. Following a refusal to do so by the President’s Office, a Civil Court ruling last week ordered the transfer take place within 20 days. The government has said it intends to appeal.

“The IFJ has consistently argued the case for public service journalism which is independent of state control and insulated from a dependence on advertising revenue which is known to often impair editorial independence,” said IFJ’s Asia-Pacific Director Jacqueline Park.

“The Maldives Journalists’ Association (MJA), an IFJ affiliate, has placed on record its belief that the empowerment of the autonomous corporation [MBC], which has been designated as a public service broadcaster under Maldives’ national law, is key to raising awareness during a challenging time of transition for the Indian Ocean republic.”

The Foreign Ministry claimed that “Unfortunately the current MBC Board was appointed at a time when the opposition majority of the People’s Majlis was being used for obvious political reasons.”

“However, the government looks forward to the day when the MBC can function as an independent, impartial and objective State broadcaster, backed by an independent and well-respected Board.”

The Maldivian media – including MNBC – is frequently accused of overt political bias favouring one or other of the major political parties, a legacy of decades of autocratic governance and a state-controlled media establishment.

Several opposition-allied MPs and businessmen remain key owners of much of the country’s private media, and visiting journalism trainers have voiced concerns from young Maldivian journalists that senior editorial management obstruct them from reporting ethically.

Iraq Editorial Manager for the Institute of War and Peace Reporting (IWPR), Tiare Rath, observed in September 2010 following a series of journalism workshops that “one of the major issues all my students talked about is resistance among newsroom leadership – editors and publishers.”

“Even if the journalists support and understand the principles being taught, they consistently tell me they cannot apply them,” Rath said.

“This is a very, very serious problem that needs to be addressed.”

Inviting the IFJ to the Maldives, the Foreign Ministry said it requested that the IFJ “only uphold the very principles they espouse when they report on the situation on the ground. In this regard, perhaps it would be useful for the IFJ to send a delegation to Male’.”

Minivan News is currently seeking a response from the IFJ to the Foreign Ministry’s invitation.

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President talks business tax increases as part of economic reform plans

President Mohamed Nasheed has pledged further economic reforms including the planned implementation of a general business profit tax in July and the possible increase of the Tourism Goods and Services Tax (GST) from six percent to 3.5 percent.

Speaking yesterday during his weekly radio address, the president claimed that serious reorganisation of state finances was needed as the Maldives graduates from the UN’s list of nations with Least Developed Country status.

This reorganization strategy includes a managed float of the rufiyaa to effectively devalue the currency against the US dollar .  The move was designed to try and allow the local currency to be traded within 20 percent of the pegged rate of Rf12.85 – a decision that has led to ongoing protests in Male’, said by organisers to be focused on escalating living costs.

“Reducing public expenditure and increasing state revenue to reduce budget deficit; stopping money printing to prevent devaluation of currency due to increased  supply; and corporatising government services to increase participation of efficient private parties,” were outlined by the president  as the government’s key aims for the economy.

In order to meet these goals, Nasheed claimed that the government would look to begin collecting business profit tax from the private sector on July 18 as well as trying to impose a minimum wage for local people.

In addition, the president also claimed that he was considering increasing the Tourism Goods and Services Tax, which was first implemented as of January 1 this year, to six percent from the introductory rate of 3.5 percent.

Criticising national spending policies under former President Maumoon Abdul Gayoom, Nasheed claimed that his government had reduced a budget deficit that stood at about 30 percent of the nation’s GDP back in 2008 to just above 10 percent at present.

While generally supporting initiatives to reduce costs that have led to ongoing public protests in the country, the Treasurer of The Maldives National Chamber of Commerce and Industry (MNCCI), Ahmed Adheeb Abdul Gafoor, said that the the planned addition of a minimum wage and a Goods and Services Tax (GST) on all enterprises operating in the country needed to be gradually implemented.

Speaking earlier this month, Abdul Gafoor claimed that gradual introduction of taxes would be vital to ensure the nation’s fledgling economy can cope with any potential changes.

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President claims MDP parliamentary majority as DRP MP Ali Waheed signs with MDP

Just a day after resigning from the opposition Dhivehi Rayyithunge Party (DRP), MP Ali Waheed was last night welcomed to the Maldivian Democratic Party (MDP) by President Mohamed Nasheed, who claimed Waheed’s decision had handed the party a parliamentary majority and the capability to push ahead with proposed reforms.

Waheed, a former DRP deputy leader, yesterday signed up the party alongside Ahmed Assad ‘Adubarey’ and DRP Sports Wing Head, Hassan Shujau.

A senior MDP source told Minivan News that additional members of the party were talking with the MDP about signing, but were reluctant to abandon the troubled party in such a large group.

The opposition figures followed in the wake of former opposition MP Alhan Fahmy in an exodus to the other side of the country’s political divide.

DRP MPs including Ahmed Nihan, currently working closely alongside the Z-DRP faction of the opposition critical of party leader Ahmed Thasmeen Ali, claimed that the MPs were switching sides solely for financial payoffs, though an MDP official insisted no such transactions had taken place.

However, dismissed DRP Deputy Leader Umar Naseer has submitted a case to the country’s Anti-Corruption Commission (ACC) accusing the MDP of bribing opposition MPs to join the party.

Speaking during the rally held at Male’s artificial beach last night, Waheed reportedly accepted that he had criticised the president and the MDP in the past, but said that he now stood with them nonetheless.

“I was one of the strongest critics of President Nasheed,” he was reported as saying in newspaper Haveeru. “But I am right here at this podium; being able to criticise everyone is one of the fundamental aspects of democracy.”

Addressing the crowds afterwards, President Nasheed reportedly said that Ali Waheed would be welcomed to the party and could potentially take a senior position within the party following his switch.

Nasheed talked of the significance of having a political majority for the MDP and claimed that the party’s influence on parliament would need to be used responsibly and with respect to others in the Majlis.

Waheed along with DRP spokesperson Ibrahim ‘Mavota’ Shareef and opposition leader Ahmed Thasmeen Ali were unavailable for comment when contacted by Minivan News this morning.

Shareef has previously acknowledged that Waheed had served as a rising star in the DRP, and his loss would be a “great blow”.

Changing political landscape

The recent election of another former opposition MP – Alhan Fahmy – to the deputy leadership of the ruling party may be a key factor in luring ambitious MPs from the troubled opposition. However if rumours of money changing hands proved true, several MDP members have privately expressed concern that this risked unsettling grassroots members loyal to the ruling party from the beginning.

Further discontent is likely on the islands among those constituents who voted for a party, rather than the MP.

The MDP also risks importing potential skeletons into the party along with the MP, such as the case with former Dhivehi Qaumee Party (DQP) MP Hassan Adhil who is currently under house arrest and facing charges of child molestation.

Furthermore, the departure of MPs loyal to Thasmeen’s faction will place further pressure on the more prosaic side of the opposition, limiting its ability to resist the leadership ambitions of Gayoom’s far less compromising ‘Z-Faction’ and risks greater destabilisation of the opposition.

The MDP has however struggled to pass legislation in the opposition-majority parliament, and is fervently seeking to tip the balance in its favour and gain control of the legislature to push through difficult bills such as the revised penal code, evidence bill, and income tax for people earning over Rf30,000.

Taking control of parliament is a major victory for both the MDP and the government, and potentially marks the end of the ‘scorched earth’ politics in the Majlis that led to the en-masse resignation of cabinet ministers in July last year.

While the Maldives has a presidential system of government on paper, the constitution hands significant powers to parliament – particularly oversight of independent institutions. Control of the voting floor gives the MDP levers with which to address the challenges facing the judiciary and independent institutions in the country.

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Maldivian Red Crescent raises US$33,296 in donations for Japanese tsunami victims

The Maldivian Red Crescent has presented US$33,296 in donations from Maldivians to the Red Cross Society of Japan for victims of the tsunami and earthquake in March this year.

Donations would be used for search and rescue operations, and for providing aid to rescued victims, the MRC stated.

Funds were handed over by the Maldives Ambassador to Japan, Ahmed Haleel.

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Third-grader allegedly beaten for refusing to attend class with a Barbie backpack

A third grade student at Iskandhar school in Male’ was reportedly beaten by his mother after refusing to enter the classroom with a pink ‘Barbie’ backpack, reports Haveeru.

The newspaper reported that many parents and children witnessed the scene, which occurred on Tuesday afternoon.

Principal of Iskandhar School Hussein Saeed told Haveeru that he had talked to the parent and learned that the boy was upset at being made to go to school with “a girl’s backpack”.

The school bought the boy a boy’s backpack and the child was now attending classes, the Principal said.

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Q&A: Finance Minister Ahmed Inaz

Finance Minister Ahmed Inaz was approved by parliament in late April 2011, replacing Ali Hashim who was among President Mohamed Nasheed’s cabinet ministers to be ousted by the opposition-majority parliament. He was approved just as the government implemented a managed float of the rufiya, and spoke to Minivan News about the recent and rapid changes to the country’s economy, the challenges it is facing and the future outlook.

JJ Robinson: An International Monetary Fund (IMF) mission is in town following the conclusion of the Article IV consultation last year. What is the current status of the government’s involvement with the IMF?

Ahmed Inaz: The IMF is discussing a new three program [with the government]. We are talking about structural adjustments that need to be brought in, and on the revenue side we are agreeing measures we foresee need to take in the next two years. We are trying to agree on the policy side.

They have their suggestions and recommendations and we have the policies the President is proposing, and we are trying to come a common agreement hopefully by the start of next week. I’m hopeful we will re-enter the program.

JJR: The IMF delayed the third tranche of funding in November last year citing “significant policy slippages” on behalf of the government. Did the third tranche get delivered?

AI: The question is not about that, the question is what can be practically done in this country. The new government came in with a new democratic setup, but not the budget to support that. The budget didn’t carry the cost of the new reforms.

It is not a matter of whether we can cut down expenditure – yes there are fat layers in the country, not only in the civil service, also in the judiciary and independent institutions. But the fundamental issue is that because of the democratic transition we have a state with recurrent expenditure higher than its revenue.

To make matters worse, the salaries of the state payroll are higher than our income. You can see where the problem lies.

What we foresee is that there are two ways in which we have to work to rectify this issue.

One is to trim the fat layer, by matching outputs with staff and increasing productivity.

The other thing is by increasing our revenue. We need to move from the current inefficient way of raising revenue – which bases revenue on import duties – to a more direct taxation policy.

We currently have the import duty which is a burden for businessmen, because they are taxed before they sell. We will abolish most duties, apart from those on items that are environmentally damaging, those that affect health, and other discouraged items.

The rest will be abolished and we will move into a direct taxation policy when the business profit tax starts in July. We have also started collecting revenue from a Tourism Goods and Services Tax (TGST), and we propose that we increase this as well as introducing a general GST for the public, and an income tax.

This would not be a payroll tax. It would be an income tax on people earning above Rf 30,000 (US$2300) per month. We think this is more justifiable.

Some may feel that this will collect only a very small amount of revenue – but this not just revenue from employment, but income from business dividends, house sales and so forth.

JJR: The former auditor general reported difficultly getting people to declare assets. Is this difficult with high net-worth individuals in the Maldives?

AI: One thing you have to understand is that this is a path other countries have walked. I remember when I was doing my graduate studies, even then we were talking about this. It was something the educated intellects were advocating. It never happened because there was no political willingness – willingness we now have.

I believe that once we start we will sort the rest of the issues. The TSGT is already being taken from big resorts as well as small guest houses on remote islands – very small businesses. They declare – amazingly, they declare.

I think this is something the country can take, and then we can move to rectify problems and perfect the system.

JJR: The general popularity of the idea seems quite sour with members of the opposition. How do you propose getting this tax through the opposition-majority parliament?

AI: All the businessmen I have met – all the reasonable businessmen I have met – believe that the country has to move to a much more structured, predictable and more coherent system of governance. And to do that we need an economic system that supports social change, and supports the change we have brought politically.

To sustain their businesses it is important that they have social and political stability. It would be a grave mistake if one stands up and says they don’t support [income tax], because that will bring instability to the country and harm businesses.

The other thing is that once you have a system of redistributing wealth through direct tax, such as we are proposing, this is spent on infrastructure, welfare, education, transport – all of these things that directly benefit wealthy businessmen, because they don’t have to pay for it on an individual basis. So the cost of doing business will be lowered.

I believe MPs, businessmen and business-MPs will support this. Those I have met have given their full support – they just want to be consulted first.

JJR: Don’t you think that as a potentially populist issue this may become a victim of the country’s adversarial politics?

AI: I think the opposition is very mature. When we were in the opposition, then the opposition was very mature. I think they will choose the best for the country. We are doing the tough job here – by 2013 the game will be easier. We are laying the foundation for the country, not only by changing the political scenario but bringing huge economic changes. I think they will support it.

JJR: Back to the IMF. A theme in their reports last year – and also those of the World Bank – was that while the Maldives’ income might be increased gradually, the country’s immediate problem was the inflated state budget, leading to a high deficit, while the country was at the same time insisting on a pegged currency. The government’s attempt to introduce cuts last year were scuttled – in your mind what were the reasons for this?

AI: One thing was that the business profit tax was delayed in parliament – for reasons I don’t think I have to elaborate. The TGST we proposed was higher than what are getting now, and that has also had an impact on us.

Also we have to remember that the redundancy of the civil service is not an easy thing – the country’s employment has been totally dependent on the government. It is a very big change, and we have said we want the government to be a policy maker, a regulator, but not doing business, so jobs are created in the private sector.

I’m happy to say our redundancy program – with assistance from the Asia Development Bank (ADB) – has to this date enrolled 800 people and already some of them have already been paid and moved out of the civil service. We hope over the next few weeks we will achieve our target of 1300 – the idea is that they will retrained and not return to the government for at least three years.

JJR: A key criticism of the government’s economic policy from the opposition is its spending on political appointees.

AI: Out of total government expenditure, 75 percent is paying the payroll. The political appointees are three percent of that payroll.

I believe that any appointee, whether political, civil service or judicial – any unproductive appointee – is a burden on our system and we should make them redundant.

JJR: Enmity between the Finance Ministry and the Civil Service Commission (CSC) last year led to the ministry filing charges with police against the CSC, just as the cuts issue entered the court system. What is the relationship like now between the Ministry and the CSC?

AI: We are working very closely with them and they have been very cooperative on the redundancy issue.

JJR: A number of private sector businesses have expressed concern that while the Maldives Monetary Authority (MMA)’s decision to enforce the use of the rufiya for all transactions is fine when you have a freely-convertable currency, it presents a serious problem when the banks refuse to sell dollars to them.

AI: The government doesn’t print dollars, and the government doesn’t earn dollars, except for fees and taxes, which is a very small percentage of the total demand for dollars in the country. The dollars are earned primarily by the resorts and fish exporters.

What we want is a system where the foreign exchange system operates as a market. We have introduced a banded float [within 20 percent of the pegged Rf12.85 to the dollar]. What we want is that the dollar earners will sell this to the market, and within the next three months an equilibrium will be achieved.

I don’t mean a low rate – I mean an equilibrium. Once that is set and the speculation and market adjustment has competed, we will have addressed the fundamental reason as to why the black-market existed.

Firstly, because the existing laws and regulations were not enforced, and existing legislation relating to money changers legislation was not being enforced – we cannot have 220 money changers in the country. I have not seen this in other countries. They have to be proper money changers who have invested a certain amount of capital, just like the banks.

I emphasise this but I still don’t get the commitment I need from stakeholders to address it.

Secondly, the monetary regulation states that rufiya is the legal tender for all transactions, with the exception of the government’s collection of taxes and fees. I think we should enforce this irrespective of the sector. We should have rufiya prices – what other country has prices in another country’s currency?

You can still pay in dollars – but this is the exchange rate. For [the customer] it may still seem as though you are paying in dollars, but the transactions are actually happening in rufiya. In Colombo you pay in local currency, even if you use your credit card. We need to have that enforcement irrespective of the sector.

In the medium term we need to address the budget deficit, especially recurrent spending, which has to be matched with income. A state cannot be operated without matching recurrent expenditure to its income – that is madness. A state has to have a prudent economic system – capital expenditure can still be borrowed, because future returns are there.

We working with the ministries to streamline and reduce the deficit in the budget. Next year we are hoping to have a balanced budget.

JJR: The opposition-majority parliament has substantially added to the last two budgets submitted by the government, and the President has been compelled to ratify these. How do you deal with this?

AI: We are trying to work on the legal side as well as the practical, and make sure this is enforced – at least that recurrent expenditure and income is matched, and that any additional bill passed during that particular year is supported with a revenue measure.

They can’t just simply tell us to pass a budget, and then pass bills giving us additional expenditure – every bill comes at a cost. What we propose is that they think about this and rectify it – this is very important.

The third long term goal is increasing productivity and exports, to make sure that whichever government is in power, our manifesto continues and the country can move forward. We need exports to be increased, and earn dollars. Long term, that is the only solution to counter this [economic situation]. In the long run there should be a regulatory framework that supports this.

JJR: Speaking of the regulator, where does the Maldives Monetary Authority (MMA) fit into this? It was only recently that the government was calling for the resignation of MMA Governor Fazeel Najeeb for failing to help address the situation.

AI: I don’t want to dwell on that. For me the governor – whoever is there – I should work with them. What I want is the regulations to be there. For example, the devaluation of the currency within this 20 percent band – that has to be supported.

Once we make a decision, such as the devaluation, we cannot go back. The fundamental health of the economy told us that we had to do this. The President met with the MMA Board, which advised, and a decision was made. It is not time for us to affect the confidence of the economy – an economy cannot survive without confidence. That is the crucial factor an economy needs – and state institutions need to ensure that confidence is there.

JJR: If the government was convinced that the value of the rufiya was going to fall somewhere within that band, why not float the currency altogether?

AI: The reason what that if we float the currency it would have short-term consequences and immediate jumps. A band means the government will defend that band – that is what we are doing with the weekly auction of dollars to the banks.

Secondly we have numbers from the TGST income that suggest we have been underestimating our economy. By having our policies in place – productivity increasing policies and growing additional exports – we are confident we can pull the value of the rufiya down to 10 in the long term – that is our aim. It is not a joke.

JJR: There is a lot of concern, particularly in resort circles, that the new policy restricting expatriate remittances will reduce the willingness of people to work in the Maldives. What was the logic behind that decision?

AI: We understand that expatriate employees are very important. We will never hurt them and we will ensure that their interests are protected. The regulation that the Ministry and MMA are working on will only limit repatriation of what they earn legally under their contract. If they remit more, obviously they will have been earning illegally.

They are living and spending in the Maldives as well – but they can still repatriate up to what they earn. What we are trying to do is limit illegal workers [remitting dollars out of the country].

JJR: If at the same time you are enforcing use of the rufiya when there is some doubt as to whether you can walk into a bank and exchange that into dollars to remit it overseas – does that not impact confidence in the economy?

AI: We believe the market is currently unstable because of the changes we have brought, and that these changes will take three months for the various variables to work. In that period the government will work with the MMA to ensure that stability exists.

There will be a lot of low confidence and instability, and that will not only be felt by the expatriates. All our imports and consumables, medicine, education – is imported. But we are confident we can get through this.

JJR: Potential foreign investors looking at the economy and observing the recent changes may be unsettled by this instability. How do you address this concern?

AI: The current government is a centre-right government, and we are opening our doors to an unimaginable level for foreign investment.

We will not be treating foreign investors different from local businesses. We will not put in unreasonable controls on the economy, and we will make sure foreign investors are consulted, as with the locals.

We have not done this in the past.because we have been very tightly focused on politics as well as the economy, and haven’t been able to communicate as much in English perhaps as we should have.

I believe [foreign investors] have confidence in our economy, and we will ensure their investments are protected in this country, and that wel continue to have policies to encourage further investment. This country does not have a solid financial sector so we need foreign investors very much. That is understood by the current government, and the policy is to attract foreign investors.

JJR: So economy before politics from here on in?

AI: Yes. Until the next election!

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Ali Waheed resigns from DRP, while MDP plans signing ceremony

Deputy Leader and MP of the opposition Dhivehi Rayyithunge Party (DRP) Ali Waheed has submitted his resignation letter to the DRP Office this morning, amid rumors that he is about to join ruling Maldivian Democratic Party (MDP).

Relevant sources have confirmed to Minivan News that Waheed submitted his resignation to the DRP Office this morning, and that the MDP will hold a special ceremony tomorrow night where Waheed will sign with the MDP.

Ali Waheed has not been responding to calls from any media since rumours of his decision began to circulate last weekend. He has so far only said that if he makes a political decision, he will make it publicly to the media and the people.

A senior MDP official speaking on condition of anonymity told Minivan News that Waheed will join MDP tomorrow night, “along with two other DRP MPs.”

He also claimed that the MPs were not joining the MDP for money, as claimed by the opposition’s Gayoom faction MP Ahmed Nihan earlier this week.

”They decided to join the MDP because of the internal conflict in their party,” the source said. “The MPs feel worried and insecure, so they are moving towards a direction where they have a future,” he said. ”Due to this internal conflict in the party the MPs on the side of DRP Leader Ahmed Thasmeen Ali in particular are very concerned. Those MPs did not shift sides for cash, they are very loyal to Thasmeen.”

He said that Thasmeen and former President Maumoon Abdul Gayoom will try and hold the remaining MPs in the party, but said that the MPs were “very concerned and worried about their future.”

”If Gayoom wants to run for the presidency during the next elections, he will have to do it right, according to the party’s charter,” the source said.

DRP Deputy Leader and Spokesperson Ibrahim ‘Mavota’ Shareef recently told Minivan News that rumours of Waheed’s impending departure were “propaganda to try to discredit some of us in the party.”

“Ali Waheed is a rising star with widespread support, and it would be a great blow to the party if he were to leave,” Shareef acknowledged.

Thasmeen meanwhile told Minivan News that he would not believe Waheed had joined MDP until he saw it actually happen.

Changing political landscape

The recent election of another former opposition MP – Alhan Fahmy – to the deputy leadership of the ruling party may be a key factor in luring ambitious MPs from the troubled opposition. However if rumours of money changing hands proved true, several MDP members have privately expressed concern that this risked unsettling grassroots members loyal to the ruling party from the beginning. Further discontent is likely on the islands among those constituents who voted for a party, rather than the MP.

The MDP also risks importing potential skeletons into the party along with the MP, such as the case with former Dhivehi Qaumee Party (DQP) MP Hassan Adhil who is currently under house arrest and facing charges of child molestation.

Furthermore, the departure of MPs loyal to Thasmeen’s faction will place further pressure on the more prosaic side of the opposition, limiting its ability to resist the leadership ambitions of Gayoom’s far less compromising ‘Z-Faction’ and risks greater destabilisation of the opposition.

The MDP has however struggled to pass legislation in the opposition-majority parliament, and is fervently seeking to tip the balance in its favour and gain control of the legislature to push through difficult bills such as the revised penal code, evidence bill, and income tax for people earning over Rf30,000.

Control of parliament would also give the MDP levers with which to address the challenges facing the judiciary and independent institutions in the country.

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