Month: September 2011

Christchurch College at Oxford University to offer environmental studies scholarship to Maldivians

The Maldives High Commission in the UK has signed a memorandum of understanding (MoU) with Christchurch College at the University of Oxford to provide an annual scholarship for a Maldivian student.

The co-funded scholarship will be for one student to undertake postgraduate study in the field of Environmental Sciences, who would otherwise be unable to afford an Oxford education, with a place at Christchurch College.

In a statement, the Foreign Ministry noted that the scholarship “was initially discussed during President Nasheed’s visit to Oxford University in December 2010 and has now materialised into a wonderful opportunity for outstanding Maldivian students.”

“The scholarship will encourage Maldivians to study in the field of Environmental Sciences with a view to enhancing the Maldives’ capacity to manage the specific threats the country faces
from climate change. On completion of their studies the scholars will return to the Maldives with exceptional expertise in this field.”

The formal MOU with was signed at High Commission in London by High Commissioner Farahanaz Faizal, and Simon Offen, Vice President Christchurch Association and
Deputy Development Director.

Speaking at the signing ceremony, Dr Faizal said “this a momentous day for the Maldives as it represents a valuable opportunity for young Maldivians to gain access to a world leading institution, shaping the great minds of tomorrow.”

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UNDP to fund six part TV series on economic issues

The United Nations Development Programme (UNDP) and the Ministry of Economic Development (MED) have signed an agreement to run a six-episode TV programme focusing on national economic issues
from October 5.

The Maldives Economic Forum, or ‘Dhivehinge Igthisaadhee Sallaa’, aims to bring to the masses, economic policy analyses and discussion forums on topical economic issues, UNDP said in a statement.

“The aim of the discussions, lead by academics, experts, policy makers and practitioners, is to educate the masses on issues surrounding economic development, presented from an analytical and educational perspective using simple explanations and free from political partiality.”

The objective, UNDP stated, was to “Enhance dialogue and wider participation in the discussions of economic development issues in the Maldives, develop interaction and the exchange of information between the government and non-government agencies, private sector, academic institutions and other stakeholders working towards similar development goals in the Maldives.”

The first programme will be broadcast on MNBC One on October 5 at 11:00pm, and thereafter run weekly.

The economic issues to be discussed over the six different sessions include; Forum 1: Increasing the role of tourism in local livelihood development; Forum 2: Development of Micro, Small and Medium Enterprises sector; Forum 3: Role of saving and investment; Forum 4: Unemployment trends among youth; Forum 5: Women entrepreneurship and participation in economic activities; and Forum 6: Innovation.

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PPM Submits 3600 forms to Elections Commission

The Progressive Party of Maldives (PPM) has submitted 3600 forms to the Elections Commission, 600 more more than the amount required to register a political party.

Media Coordinator of PPM and MP Ahmed Nihan said there were many more party registration forms filled which had not been submitted today, so as to hasten the registration procedure.

“If too many registration forms are submitted at once it will take a long time for the Elections Commission to approve all the forms. We just want to hasten the registration procedure and finish it soon so we can get on with our next steps,’’ Nihan said.

Nihan claimed that “many Maldivian Democratic Party (MDP) members” and members from other parties have signed up for former President Maumoon Abdul Gayoom’s new party, PPM.

‘’The additional 600 forms were because sometimes due to information errors or other errors forms get rejected, so as a backup to replace any form that might get rejected,’’ Nihan said adding that he believes that “all forms are genuine”.

Nihan said today at the Elections Commission building none of the commission members showed up to meet the senior PPM figures, and said he regretted the incident.

‘’When some particular persons go to register a political party, the commission members take them to the hall and serves food and juice with a warm welcome. It is very unfair,’’ He said. ‘’It is we who appointed them for the commission and today the commission members were like a selfish soothsayer who pops his head out from the window when a normal person goes to see him.’’

He said that several parliamentarians and other senior figures in the PPM went today to the parliament to submit the relevant forms. Currently there were 14 MPs in the party and “very soon” the number would reach 20 or 21, he added.

President of the Elections Commisison Fuad Thaufeeq today told Minivan News that it was true that no commission member met with the PPM delegation.

‘’The commission has always treated all political parties equally and has applied the same procedure on all the parties, we always meet with senior officials of parties when the first 50 forms are submitted to the commission, and we met with senior officials from the PPM when they submitted the first 50 forms,’’ Fuad said.

Fuad explained that the forms will always be received by the staffs at the reception.

‘’The next time commission members meet with senior officials will be the day when the registration process is concluded and the 3000 forms are approved,’’ he said. ‘’That is the procedure we apply for all the political parties.’’

He said that the commission was free from influence and pressure and could not be pressured or influenced.

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MDP calls for “justice” for Maafushi deaths

The ruling Maldivian Democratic Party (MDP) has called for “just punishment” to be meted out to senior officials of the previous government culpable in the custodial death of Evan Naseem on September 19, 2003.

In a press release to mark the eighth anniversary of the watershed incident, the MDP noted that President Mohamed Nasheed had called on doctors to determine Evan Naseem’s cause of death before the death certificate was signed.

The MDP statement reiterated the party’s call for trials to be conducted against prison guards or National Security Service (NSS) officers believed to have tortured and abused inmates.

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“No new significance” in Sri Lankan money laundering busts, say local police

Sri Lankan police are  investigating a large-scale money laundering case based in Colombo, that reportedly extends to the Maldives.

Local police representatives say no significant case has been filed with Maldivian authorities so far.

According to local media, money was being transferred from the Maldives to various illegal money transfer agents in neighboring Sri Lanka. The money is suspected to be used for such criminal activities as purchasing and distributing narcotics and other contraband.

Last week, Rs. 81.76 million (Rf11.4 million) was seized at Sri Lanka Customs, the largest amount of foreign currency to be detected at Bandaranaike International Airport (BIA). Haveeru reports that dollars from Australia, Canada and the US, as well as sterling pounds, Kuwaiti dinars, UAE Dirhams, Saudi Riyals, Swiss Francs and Euros were included in the stash.

Local police reported no case being lodged regarding the money laundering circuit in Colombo, and cautioned that the information that was given to local media regarding the transport of finances from the Maldives might not be reliable.

Officials did say that money laundering has been a problem in the Maldives. Police Sub-Inspector Ahmed Shiyam said that “the issue of money laundering in the Maldives is growing, and credit cards are being abused more.”

An official from the Fraud and Financial Branch said there have been suspicions of money laundering, but charges can not be pressed for that alone. “Individuals have been charged for drug possession, which might be related to money laundering, but we are currently unable to prosecute someone for money laundering alone. We plan to work on that in the future,” he said.

International Monetary Fund (IMF) reports state that money laundering became a bigger concern internationally post-9/11, when it became heavily linked to terrorism. Although many countries have since adopted IMF anti-money laundering (AML) policies, few have developed legislation to enforce these guidelines.

The latest IMF review of Sri Lanka, dated 2008, indicated that AML standards were adopted by signature but that legislation was not in place. A 2011 review of the IMF program found that international organizations were cooperative, but did not indicate that individual governments and banks had adopted AML procedures.

Sri Lankan police have conducted raids on unauthorized money transfer agencies in the past few weeks, reports Haveeru. Earlier this month the Colombo Fraud Bureau, an arm of the Sri Lankan police force, arrested several suspects and seized approximately Rs. 9 million (Rf1.25 million) in foreign currency, Haveeru reports.

Four key Maldivian narcotics peddlers who were busted by Maldivian authorities in June for their involvement in the smuggling of narcotics via Colombo to Male since 2005 had allegedly used a prominent money transfer agency in Colombo, reports Haveeru.

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ITEC Day 2011 to be celebrated in Maldives

The Indian Technical and Economic Cooperation (ITEC) Program will celebrate ITEC Day 2011 in the Maldives this year.

The Indian government launched ITEC in 1964 to promote bilateral cooperation and technical assistance to partner countries, of which the Maldives is one. The program provides economic expertise, manpower, skills and technology with the 156 countries that are friendly to India.

The High Commission of India has organized the event to foster positive relations between former ITEC scholars from India and the Maldives.

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Three men accused of Hoarafushi hostage murder face terrorism charges

The Prosecutor General (PG)’s Office today pressed criminal charges against three persons accused of murdering 61 year-old Hussain Mohamed after taking him hostage and robbing him on Hoarafushi in Haa Alifu Atoll.

Hussain, a prominent businessman known as ‘Hussainbe’, was found dead inside an abandoned house in September last year.

The PG’s lawyer told the judge that the three of them stole more than Rf 100,000 and US$1000 in cash but the three denied the charges, according to local media.

Police at the time said they believed that year-old Hussain Mohamed may have been murdered.

An official from the island office had told Minivan News that the body was discovered by the caretaker of the building that night.

“There were no injuries on the outside his body,’’ said the island official. ‘’He is from another island but has lived in Hoarafushi for a long time.’’

Local media reported that Manik’s hands were tied behind his back with rope, and that the body was lying on the ground in a prone position when discovered.

The island official said that it had rained heavily the previous evening, and that “nobody goes out in the rain. The streets would probably have been empty.”

The sale of oil in Hoarafushi in Haa Alifu ceased following the death of the prominent businessman.

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Amana Takaful seeking to “kick start” Maldives stock market with landmark IPO

Sharia-compliant insurance company Amana Takaful will issue 800,000 shares in an initial public offering (IPO) on the Maldives Stock Exchange (MSE).

In a first for the country, 20 percent of the shares will be made available to expatriates and 15 percent to overseas applicants. The remaining 65 percent will be offered to Maldivians.

The Sri Lanka-based company hopes to generate Rf16 million (US$1.4 million) in proceeds through the IPO, by selling shares at a low issue price of Rf20 (bundled in packages of 25).

Amana Takaful’s board of directors announced the IPO on Monday afternoon at the Nasandhura Palace Hotel.

CEO of Amana Takaful Maldives, Hareez Sulaiman, said the IPO would “change the way the Maldivian Stock Exchange operates as this will be the first time that Maldivians, expatriates and foreigners will be able to purchase securities in a Maldivian listed company.”

The decision to price the shares low “at a price affordable to any average Maldivian” also promised to “be a kick starter for an active stock market which may benefit the entire economy at large,” the company said in an accompanying statement.

The company expects the Sharia-compliant nature of its business to be a key attraction in the market, it noted in its prospectus, with the “growing religious awareness within the domestic market further reinforcing [Amana Takaful Maldives’] decision to embark on expanding its shareholder base in the Maldives.”

Globally, Director of Amana Takaful Osman Kassim, also chairman of the first licensed Islamic bank in Sri Lanka, Amana Bank, explained that Islamic finance was “a phenomenon worth 1.4 trillion and growing at a rate of 20 percent annually.”

It functioned, he explained, through the prohibition of riba, or interest.

“Taking a return without participating in the risk of the return is not allowed, be it 1 percent or 99 percent. Any additional revenue is riba,” he said. “Even if you give a loan and he gives a gift, and is not in the habit of giving a gift, that is also riba.”

Islamic finance in its current form emerged 40 years ago, Kassim explained, first in Egypt and the Arab Emirates.

“It promises to be a just system. Interest is oppression – the charging of something where nothing is due,” he said, noting that in the wake of the global financial crisis, “All major banks now have Islamic financing products, and the more adventurous have their own Sharia Councils.”

Certain terminology used in Islamic finance was now routinely used in normal banking, he said, also observing a rise in financial offerings that were all but labelled Sharia-compliant.

In its IPO prospectus, the company predicted strong potential growth on the back of a higher disposable income as the rufiya eased against the dollar, brought on by a “significant” decrease in the cost of imports.

The key areas of the Maldivian economy – fishing and tourism – had shown strong growth, the company noted. Tourist arrivals grew 18 percent in 2010, while bed nights grew 13 percent even as capacity grew by almost 3000 beds to roughly 24,000.

Fishing was a key area of interest to the company given the high number of insurables. The industry had registered a slight decline in productivity in recent months, the prospectus noted, but nonetheless annual fish purchases had increased 29 percent and fish exports by volume had risen fourfold. Higher prices had led to 77 percent increase in monthly earnings.

The company has set a target of 30-40 percent growth in the Maldives, identifying a key market as the local, atoll and city councils following the government’s policy of decentralistion.

“Considering the current trends in religious conciousness, it is generally believed that the level of awareness and preference for investing in Sharia- compliant investments would be greater at the grassroots level,” the company noted.

It also indicated its intention to offer a micro-insurance product in the Maldives targeting the expatriate market.

The IPO will open on September 20 and close on October 19. The company has pegged a minimum subscription of Rf 2.4 million (US$156,000) or 15 percent to proceed with the IPO.

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Two ton shipment of new five rufiya notes “routine”, says MMA

A shipment of newly-printed five rufiya notes brought in last week is part of a “routine” process and not intended to finance either the fiscal deficit or government expenditure, the Maldives Monetary Authority (MMA) has said.

According to a press statement issued by the MMA yesterday, the stock of five rufiya notes was running low and the new notes would be stored at the state treasury.

“This is routine work, every now and then we print different notes when the stock runs low,” explained MMA Executive Director Abdul Hameed Mohamed. “We print notes as often as is necessary. We are surrounded by water, fishermen handle it, it gets lost and sometimes we have to replace these old notes.”

Abdul Hameed stressed that the new notes would have “no effect on circulation” as it will be stored in the treasury and that there would be “no increase in the money supply.”

“As you know, the central bank in any country always prints money to replace damaged notes,” he said. “Replacing notes is something we do daily.”

Local media reported today that the shipment of new notes was brought in 40 boxes weighing 2.4 tons on an Emirates flight that landed on the morning of September 13.

“The MMA has brought in newly printed money while President Mohamed Nasheed has signaled that money might have to printed if the reduced amounts from civil servants salaries had to be given back,” reads a report on Sun Online.

Abdul Hameed speculated that “the only reason this has become news is because of the President’s remarks.”

In late 2009, the current administration ceased deficit monetization – printing money to finance the fiscal deficit – and the MMA introduced open market operations to mop up excess liquidity.

MMA Governor Fazeel Najeeb told press in August 2009 that printing local currency in previous years had led to the current dollar shortage as “there is too much rufiya chasing too few dollars.”

Prior to 2009, the MMA printed new money to issue loans and overdrafts to plug the expanding budget deficit – stoking inflationary pressures due to excess local currency in circulation.

Meanwhile in lieu of printing money and accumulating domestic debt, in December 2009 the new government began issuing US dollar denominated treasury bills to finance the deficit.

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