“Teaching Excellence Awards” in eight categories were handed out at a ceremony last night to celebrate Teacher’s Day.
The categories included best pre-school teacher, best secondary school teacher and best teacher for children with special needs. The recipients were awarded a monetary gift of Rf30,000 (US$1,945).
Speaking at the ceremony, President Mohamed Nasheed said that teachers played the most important role in the country’s development.
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(0)The Maldives Inland Revenue Authority (MIRA) has decided to conduct a nationwide campaign to raise public awareness of the newly-introduced General Goods and Services Tax (G-GST).
Sun Online reported that 13 teams from MIRA would be visiting 20 atolls in the coming days to inform the public and help businesses register with the tax collection authority.
The Maldives National Chamber of Commerce and Industries (MNCCI) meanwhile filed a case at the High Court last week seeking a temporary injunction to halt the implementation of the GST Act. The group of businessmen argue that a number of provisions in the Act were unconstitutional.
However the High Court informed the appellants to correct errors in their case forms and re-submit it. The first hearing is likely to take place next week.
Read the MIRA FAQ on GST here.
(0)Dislikes(0)The Maldives showed interest in increasing investments from Sri Lanka at the fourth annual meeting of the Sri Lanka, according to the Maldives Bilateral Business Council of the Ceylon Chamber of Commerce.
Among the investments discussed were construction, transport and energy. Officials also discussed expanding a credit line beyond fruits and vegetables for Sri Lankan exporters, reports Lanka Business Online.
An expanded credit line could allegedly broaden business opportunities in the Maldives and alleviate the Maldives’ current difficulties with a foreign currency shortage, council president Hussain S. Hashim allegedly said.
The council, which was formed in 2007, addresses business relationships between the two countries. The Maldives imports Sri Lankan textiles, clothing, jewellery, produce and tea, and exports a variety of fish products as well as cement clinker to its neighbour.
(0)Dislikes(0)The Maldives Police Service signed a Memorandum of Intent (MoI) with the US government on Tuesday to “enhance the abilities of the law enforcement agencies of the government of Maldives to deter terrorists and terrorist groups from engaging in international terrorist acts.”
The MoI was signed by Commissioner of Police Ahmed Faseeh on behalf of the government while the Ambassador of the United States of America, Patricia Butenis, signed for the American government.
According to a police press statement, the US State Department would be providing assistance to the Maldivian police under its anti-terrorism assistance programme.
The purpose of the MoI is to establish a mechanism for local law enforcement to cooperate with the US government in counter-terrorism activities, the statement said.
(0)Dislikes(0)The viability of the Maldivian tuna fishing industry is being threatened by the mass harvesting of fish stocks by foreign fishing vessels just outside the country’s exclusive economic zone (EEZ), Minivan News has learned.
Fishing is the Maldives’ second largest industry after tourism, and the country’s largest employer. The sustainability of centuries-old ‘pole and line’ fishing methods is not only considered a source of national pride, but also attracts buyers from premium supermarkets in the UK and Europe.
“We have noticed a decline in skipjack tuna due to the operation of purse seniers, mainly French and Spanish, along our EEZ,” Fisheries Minister Dr Ibrahim Didi tells Minivan News. “We have heard they are using FADS (Fish Aggregation Devices) across a very big area.”
Purse seining is a fishing method whereby a vessel deploys an enormous net to encircle and capture entire schools of fish at once. The method is very cost effective but indiscriminate, and generates a large amount of bycatch.
It is particularly efficient used in conjunction with FADs. Fish such as tuna are naturally attracted to the floating object, such as a buoy, typically fitted with a sonar device capable of determining the quantity of fish below, and a satellite uplink that communicates this to the nearby fishing vessel. The vessel’s net does not discriminate between the predators and scavengers attracted by the target fish population around the FAD.
“Nothing escapes,” says Solah Mohamed, Head of Production for the Maldives’ Felivaru fish cannery, which was opened in 1982 in collaboration with a Japanese company.
“Just outside the Maldivian EEZ are thousands of FADS, with sonar and live tracking systems. There are so many deployed that the natural migration of the skipjack is changing,” he says. “Fish that are supposed to migrate into Maldivian waters are being stopped because so many FADS are deployed.”
Solah claims the FADs are deployed by purse seines belonging “mainly to Spain, France and Japan, and also Iran.”
The Maldivian fishing fleet is simply unable to compete due to its reliance on pole and line fishing methods, says Solah, “one of the most sustainable methods of fishing.”
“The issue is that purse seines have become so efficient – and their sizes are becoming huge – as large as 100-400 tons. They say the sonar detects dolphins, but I don’t think it sounds very effective. Sharks, dolphins, turtles – they take everything. I doubt they can be bothered to sort it all out before pulling it on board.”
The under-resourced Maldivian coastguard is unable to monitor the vastness of the Maldivian EEZ, and local fishermen rarely go beyond the 100 nautical miles (the EEZ is 200 miles).
However the issue is not one of legality or of policing capacity. Many vessels at least in the EU fleet are fitted with vessel tracking devices ensuring they do not stray into Maldivian waters. But in international waters, almost anything goes – and seeking to hold foreign countries to account for over-exploitation is near impossible.
“We may as well be under siege,” a senior government source told Minivan News, of the ring of vessels surrounding the country.
Officially, the government is more diplomatic. “This is happening on the high seas and not in our EEZ, so there is very little we can do to raise our concerns,” says Fisheries Minister Dr Ibrahim Didi.
“Purse seiners are operating without limitation in the Indian Ocean near our EEZ, and the Indian Ocean Tuna Commission (IOTC) has not taken any measures against it.
“Since we became a full member of the IOTC we have tried to raise the issue and talk with neighbouring countries to take a joint stand. But the IOTC is dominated by European countries.”
Solah from Felivaru has observed the same problem: “We are just becoming a full member, but Japan, Spain and France are big players in the Commission. I have been to one of their conferences and I feel that their voices are heard more than those of the coastal islands. They have more expertise and they can put forward more resolutions, more numbers – we simply don’t have the expertise to beat them.”
Last gasps of the tuna catch
Meanwhile, the pole and line catch in the Maldives is in decline.
Felivaru’s Deputy General Manager Mohamed Waheed observes that the Maldivian tuna catch has fallen from “very high” figures in 2005-2006 “to now less than it was in 1995-1996.”
“The main thing is that the pattern of fishing changed. May to August is the low season, but we can usually still catch fish in the southern waters of the country. But this season it did not happen – we had hardly any fish in the north, and very little in the south.”
The foreign purse seines have not reported a declining catch, notes Solah.
“In commercial fishing we talk about ‘catch’ and ‘effort’,” he explains. “The Maldivian catch is going down but according to the IOTC, the purse seine catch is stable. This means the purse seines have hugely increased their effort.”
Value-adding means employment
Felivaru buys fish from local fishermen, canning, labelling and adding value to the commodity prior to export. The company has high demand for its product from upmarket UK supermarkets such as Waitrose, but has been forced to scale down its production lines because it just cannot buy enough fish.
“We are now processing 15 tonnes per day. We can go up to 50 tonnes if we can get the fish – but our cannery has had to scale down because we don’t get enough,” says Solah.
That has impacted employment: “At the beginning of 2008 we employed 1100 employees,” says Waheed. “Four years later we’re down to half that – 550 workers. And all these people are going to lose their jobs when the fisheries collapse.”
“Maybe tourism brings the most money to the country, but fisheries still provides most of the jobs. It accounts for more than half the employment of the entire country,” he explains.
A question of economics
Former head of the Maldives Industrial Fisheries Company (MIFCO), Adhil Saleem, now the country’s Transport Minister, attributes the decline in local fisheries to the industry’s struggle to meet global pressures and remain competitive.
He espouses a pragmatic, free market view. Marketing the Maldives’ pole and line fishing as a premium ‘eco’ brand pleases environmentalists and looks fine on paper, he explains, “But our gains in the market are eaten up by the supermarkets, because they are the only outlets marketing the product. ‘Maldivian fishermen saving the world’ does not fetch a premium, because as much as they talk about it, the world is not prepared to pay for eco-friendly fishing.”
Saleem contends that small rises in ocean surface temperatures due to climate change are driving fish deeper, further reducing the stocks within reach of the traditional pole and line method.
“Our method only works near the surface,” he says. “But with changes in weather and sea temperature, fish will not surface.”
“At the same time, look at the way we fish – most countries do multi-day trips, sticking with the same school of fish until it is fished out. Our fishermen fish for bait early in the morning, and then in the afternoon if they are lucky they find a school of tuna, fish it and then leave. The next day they make a wild guess as to where it has gone, and hope they get lucky.
“I also get the feeling that because of the high price we get, our fishermen are not putting in their best efforts. At Rf 25-30 (US$1.6-2) a kilogram, in the south it’s not uncommon for a fisherman to be on Rf 11,000 (US$720) a month. The mentality is: ‘I have enough for today, so I can relax. I don’t need to think about tomorrow.’”
Saleem believes the Maldives will eventually have no choice but to begin purse seining, augmenting traditional fishing know-how with technology such as aerial surveys to share with local fishermen sightings of birds circling the schools.
“The Maldives can certify pole and line fishing, while simultaneously conducting purse seining,” he says. “We need field officers to go on board and teach multi-day fishing techniques, such as using lights at night to catch squid and reef fish so that when they come back they have something to sell.”
Thailand tramples Maldives canning industry
As for Felivaru, the Maldives has to come to terms with the fact that it now competes in a global marketplace, and that maintaining such a level of industry is not economically competitive, Saleem suggests.
“If [Felivaru] is unable to compete in the global market it would be better to do something else. Do we ask why Airbus has not built a manufacturing plant in the Maldives? If [fish canning] is a matter of national pride, then so is having a nuclear plant.”
Based on an island in the north of the Maldives, Felivaru is faced with the high logistical costs of feeding and accommodating large numbers of staff, which other canneries in South Asia do not have to contend with.
“The main problem is that Felivaru is an old factory, and secondly the labour cost in the Maldives is very high compared to Sri Lanka or even Thailand,” adds the Fisheries Minister, Dr Didi.
“There is also a problem of quantity and [consistent supply]. If they are running a factory they require a certain amount of fish per day, which is not economic or feasible as the pole and line method means our fishing is seasonal. Felivaru has four production lines, but I doubt they have ever used more than 1-2 lines because not enough fish is available.”
Saleem adds that the Felivaru cannery “has expanded in the north, while the fish are in the south. It would be better for them to operate in Galle in Sri Lanka where they would not have pay the extra costs such as accommodation.”
The outsourced model has been embraced by Felivaru’s competitor, Kooddoo Fisheries, which now exports pole and line tuna caught in the Maldives to the Thai Union cannery in Thailand for processing and export to UK supermarkets such as Sainbury’s and Marks & Spencer (M&S). Kooddoo also buys cheaper purse seines-caught tuna, then processes and sells it to the Maldivian market at a cheaper price point, undercutting Felivaru. The company has recently opened a shop in Male’ and launched a marketing blitz.
“In Male’ we can buy fish caught one-by-one in an eco-friendly manner for Rf 18-19 (US$1.2). We can also buy an imported can of the same fish caught with purse seines for Rf 11 (US$0.70),” says Saleem.
“Instead we should eat the Rf 11 tin and export the Rf 19 tin to increase the amount of foreign currency available. The Maldives, Japan and India are not bothered about pole and line – it is only fashionable in Europe.”
Felivaru’s Solah complains that this approach forces the cannery to compete for the dwindling supply of fish with companies that are simply exporting the raw commodity without adding value.
“The government should be encouraging the fisheries industry to remain in the Maldives, because if the fish stay it means jobs and wealth stay in the country,” Solah argues.
“It is really sad to see the label on these cans that reads ‘Maldivian pole and line tuna’, complete with a picture of a Maldivian island, next to ‘Packed in Thailand’. Who is checking how much the Maldives supplies, compared to how many cans come out of Thailand? They can buy 1000 tons of Maldivian pole and line fish, and supply 2000 tons of Maldivian ‘pole and line fish’ to UK supermarkets. There is no regulatory board monitoring them.”
Saleem argues that Felivaru “cannot expect fish to be sold to it at a subsidised rate. Kooddoo is exporting because the price is better. The companies would not export if Felivaru was prepared to pay world market rates – they just wouldn’t, because of the increased cost of shipping.”
Solah concedes that the Thai Union cannery can afford to pay more for unprocessed fish, even including transport costs, because of the operation’s economies of scale, cheaper labour and lower overheads.
“People are willing to pay more for a premium pole and line product, but currently there is no disincentive to export unprocessed fish,” he says. “Government policy should be to add value while the fish is in the country, and to make sure there is enough fish available to run the factories inside the country at full capacity before exporting it.”
Sustainability sells, says Sainsbury’s
Minivan News contacted Sainsbury’s supermarket in the UK, which sells the Thai-processed product marketed as Maldivian pole and line tuna.
“The pole and line method is recognised as the most responsible fishing method for catching tuna mainly as a result of minimising bycatch in the fishery,” explained Sainsbury’s Aquaculture and Fisheries Manager, Ally Dingwall.
Media coverage around the issue of sustainability in fisheries meant it was “increasing in the public consciousness in the UK,” she said.
“The Maldives is associated with a pristine environment and clear, clean waters which deliver great quality tuna, and this is clearly attractive to consumers.”
The supermarket regularly audited its supply chain and was able to trace its products to the capture vessel via the batch code, she said.
“Sainsbury’s have had tuna products packed in the Maldives in the past but encountered logistical difficulties in supply. We are reviewing the situation at present with a view to recommencing an element of our supply from Maldivian canneries,” Dingwall explained. “Our suppliers of products such as sandwiches and sushi which contain tuna as an ingredient are already sourcing pouched, pole and line caught tuna from Maldivian processing establishments.”
Yet while the Maldivian fishing industry grapples with the pressures of climate change, globalisation and appeasing Big Grocery, the ring of foreign purse seines sieging the country’s EEZ are, according to the IOTC, scooping up tuna to the tune of US$2-3 billion a year.
“By catching fish one by one we are using a bucket to scoop from the well, while the rest of the world is pumping,” says Saleem. “It is going to finish – and we will not have got our share of the catch.”
On this, Solah agrees.
“If the Indian Ocean fisheries collapse, the European, Japanese, Chinese and Iranian vessels can go to other oceans. But what can we do? This is the only industry we know. We have to negotiate and beg other countries to please stop, because this is killing us.”
(0)Dislikes(0)Renowned Qari (Quran reciter) Hussain Thaufeeq has been charged with possession of pornographic material by the Prosecutor General’s Office, on top of multiple counts of child molestation.
The Criminal Court held the first hearing of the pornography charges this morning.
Deputy Prosecutor General Hussain Shameem confirmed to Minivan News today that additional charges had been pressed against the famed teacher.
“Police discovered [the pornographic material] on his computer,” he said.
Qari Thaufeeq, widely considered to be the best Quran reciter in the Maldives, was arrested in August last year on allegations of sexually abusing a number of under-aged girls.
Police Sub-Inspector Ahmed Shiyam told Minivan News at the time that Thaufeeq was arrested in connection with “many” child sex offences against girls, “some cases going back a long time.”
Prior to his arrest, Thaufeeq hosted a daily Quran teaching programme with school children on state television every night after Maghrib prayers. He also led Friday prayers and conducted religious sermons.
Under the Child Sex Offenders (Special Provisions) Act of 2009, the penalty for child sex abuse is 10-14 years but can be extended to 15-18 years if the accused was in a position of trust with the children he allegedly abused.
In child sex abuse cases, the court usually exercises its authority to conduct closed hearings, excluding journalists and the public from observing the trial.
While the Criminal Court initially extended Thaufeeq’s detention in police custody to 15 days following his arrest on August 17, 2010, the court later transferred to the Qari to house arrest.
Thaufeeq was also sacked from his post at the Centre for the Holy Quran by the Islamic Ministry after it received reports of misconduct.
(0)Dislikes(0)The Finance Ministry today rejected implications that yesterday’s release and recall of the controversial Rf20,000-a-month committee allowances against a court injunction was a mistake which had caused confusion in the government.
“I don’t think it’s a mix-up,” said State Minister of Finance Ahmed Assad today. Assad was unclear about the court injunction.
“Releasing that sort of money is not a big procedure, I think this is just people trying to follow the general rules and experiencing an administrative error,” he said.
Assad didn’t believe anyone deserved blame, and said that “if anything, it is the ministry at large that was at fault.”
Local daily Haveeru yesterday reported that the allowances had been issued “by mistake.”
Finance Minister Ahmed Inaz had not responded to Minivan inquiries at time of press.
The court injunction, which was issued on September 26, ordered the Finance Ministry not to release funds for the committee allowance until the court rules on a case filed on behalf of a civil servant, contending that the allowance could not be given before deducted amounts from civil servants salaries were paid back.
The injunction has since been appealed by the Attorney General’s Office at the High Court, which is due to hold a first hearing on Sunday.
Parliamentary privileges
Meanwhile parliament yesterday debated a motion without notice proposed by Vilufushi MP Riyaz Rasheed claiming that a civic action campaign launched by concerned citizens in late August violated MPs’ special privileges.
MDP MP Ahmed Easa told Minivan News yesterday that colleagues had said the allowance was being released to the parliament secretariat, but he was told that it had been held back by the Minister of Finance.
“I don’t think there was any wording, anything in what the court said indicating that they couldn’t release the money,” said Easa. “But no money has been going in to my account today, I can tell you that.”
Easa elaborated on the allowance, saying that the amount of staffing support and allowances other government branches received justified MPs accepting the proposed allowance.
“The MP point of view is that some of the independent wages and allowances are greater than MPs. The MPs are expected to do research and other duties, but we don’t have an office, a supporting staff, a phone allowance, a travel stipend to visit constituents or other things to support our work. Seven percent of our salary is taken out for a pension fund, and Male’ is an expensive place to live,” said Easa.
Easa said he will accept the allowance, but pointed out that he had always objected to it in parliament on the grounds that all payrolls should be streamlined.
“But if these other government groups are taking an allowance, why not the MPs? This is a democracy, so I always respect the majority decision.”
Lawyer Mohamed Shafaz Wajeeh, one of two lawyers involved in the civil case, argued that the number of people benefiting from the allowance does not justify the sum released, which amounts to Rf18 million (US$1.1 million).
“It’s greed. Just greed,” Shafaz said. “MPs and higher-ups in the government are probably more aware of their own power than they should be. The thinking behind this goes against everything we know.”
Shafaz suggested the government consider other options, such as releasing the allowance in installments to lighten the burden on the state budget and other subsidiaries.
“But I’m not sure how much political will there is to do this. Everyone says the allowance is a good idea.”
Civil society
Although members of the civil sector earlier issued a statement objecting to the allowance, which they called “a gross injustice to the Maldivian people,” they have not articulated an official position on the issue of late.
Maldives Democracy Network (MDN) Director Fathimath Ibrahim Didi said that individuals in the organization were involved at the beginning, but that they did not represent MDN.
“Now, I think there may be a group working against the allowance, but it is loosely formed involving people from NGOs, lawyers and individuals,” she said.
Transparency Director Ilham Mohamed told Minivan News that a volunteer team was addressing the matter, but that large protests had not been organized among local non-government organizations (NGOs).
“I believe there may be sporadic gatherings in different places,” said Mohamed. “I do know that the NGOs that were involved in the original statement opposing the MP allowance are unified on this issue.”
“Symbolic”
The decision to approve the Rf20,000 (US$1200) monthly allowances in December 2010 was met with protests and widespread public indignation. However in June this year, parliament rejected a resolution proposed by opposition Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahlouf to scrap the allowance.
Meanwhile the current civic action campaign was prompted by parliament’s Public Accounts Committee (PAC) deciding in late August to to issue a lump sum of Rf140,000 (US$9,000) as committee allowance back pay for January through July this year.
Article 102 of the constitution states that parliament shall determine the salaries and allowances of the President, Vice President, cabinet ministers, members of parliament, members of the Judiciary, and members of the independent institutions.
The Rf20,000 allowance was initially approved on December 28, 2010 as part of a revised pay scheme recommended by the PAC.
During yesterday’s debate on a privileges motion regarding the anti-committee allowance campaign, MP ‘Colonel’ Mohamed Nasheed, a member of the PAC, explained that the committee felt that MPs should earn a higher salary than High Court judges.
“But even then the honourable members of the Public Accounts Committee believed that MPs were receiving a sufficiently large salary in relation to the country’s economic situation,” he said, adding that a decision was made to institute a “symbolic” committee allowance.
“The thinking at the time was to give it to MPs who attend committee meetings as a very symbolic thing, for example one laari or 15 laari. But to ensure that take-home pay for MPs would be Rf82,500,” he said.
However, he continued, this “noble effort” became politicised and the subject of “an anti-campaign programme.”
Colonel called for legal action against the activists “when they go beyond the boundaries of free expression” and the right to protest, claiming that MPs’ families and children had been targeted.
Echoing a claim made by a number of MPs yesterday, Colonel said none of his constituents had asked him to decline the allowance.
(1)Dislikes(0)Sri Lanka will provide security from its Special Task Force (STF) units for the South Asian Association for Regional Cooperation (SAARC) summit to be held in Addu City this November.
STF is an elite special forces unit of the Sri Lankan police which was formed in 1983, and focuses on counter-terrorism and counter-insurgency operations. It was the lead unit engaged with the Tamil Tigers during the Sri Lankan civil war.
The Foreign Ministry and the Maldives National Defense Force (MNDF) confirmed today that STF will be sending police dogs to support unidentified security matters.
“Previously, security dogs were allowed at the international airport, I’m not sure if they are still there but Maldivian law allows dogs to be used for security measures,” said MNDF Spokesperson Abdul Raheem.
“The dogs will clear the same areas as the event and other security forces, but I can’t say what they will be looking for,” he added.
Dogs are considered haram in Islam, and are prohibited as domestic pets in the Maldives. An exception was made for drug-sniffing and security dogs at Ibrahim Nasir International Airport, however sources familiar with the issue say local staff were unable to provide proper care for the dogs and they fell ill.
Allegations of religious intervention were denied.
President’s Office Press Secretary Mohamed Zuhair told Minivan News that the STF dogs would not be an issue for the SAARC event. “We had dogs earlier for security without any trouble, I don’t see why anybody should object because the government has officially employed dogs before,” he said.
All countries participating in the SAARC convention are providing security forces. According to Zuhair, Bangladesh has donated trucks to the army, India is contributing police forces, and equipment with an estimated value of US$400,000 will be arriving from Pakistan in the next few days.
China will provide CCTV equipment for surveillance.
“It’s a well-integrated and cooperative effort with MNDF and all participating members,” said Zuhair, who pointed out that Addu was a unique site for an event of this magnitude.
“The last SAARC was held in Male’, but this time the event will be spread across several islands. Transportation logistics will be different,” said Zuhair.
Raheem said security preparations are under way for SAARC, and that MNDF “is sure that things will be to our satisfaction.”
Heads of state from the region will be attending SAARC, several of which are currently high-profile figures in the international community.
“We have to look at this as a high-risk event. Some heads of state are high-risk, but we are treating each and every head of state as high-risk to ensure their security,” said Raheem.
Local media reports that STF forces have been having special training programs in the Sri Lankan capital Colombo to prepare for the Addu event.
Correction:
The previous version of this article stated that Pakistan would provide US$4,600-worth of equipment to the SAARC summit security measures.
It should have read, “equipment with an estimated value of US$400,000 will be arriving from Pakistan in the next few days.”
(0)Dislikes(1)The government’s decision to offer 15 percent of its shareholdings in local telecom giant Dhiraagu for sale to the general public is intended to benefit foreign parties, the incipient Progressive Party of Maldives (PPM) alleged today.
At a press conference this afternoon, PPM Spokesperson MP Ahmed Mahlouf claimed that the party has learned through “inside information” that the government planned to sell a large portion of the shares up for sale through the Initial Public Offering (IPO) to British company Cable & Wireless, which currently owns the majority stake of Dhiraagu.
The government sold seven percent of its shareholding in Dhiraagu to Cable & Wireless in 2009 for US$40 million.
“While claiming to sell 15 percent to Maldivian citizens what they’re doing now is selling shares to Cable & Wireless again,” Mahlouf said. “We received inside information long ago that a large part of that 15 percent is going to be bought by Cable & Wireless.”
The MP for Galolhu South expressed concern with the shares being open for purchase by both foreigners and international companies.
He added that the Maldivian people would have to face “the bitter consequences” of the Maldivian Democratic Party (MDP) government “selling off state assets built up by the former government through a lot of hard work.”
Economic Development Minister Mahmoud Razi however dismissed the allegations as completely unfounded.
“Why would we register with the CMDA (capital market development authority) and go for an international public offering if we wanted to do that?” he asked. “We’ve already sold them the majority stake.”
If the government wished to sell shares to C&W, he added, there would be “no need of a charade.”
In a press release issued after a ceremony to launch the IPO this week, Dhiraagu stated that 11,400,000 ordinary shares having a nominal value of Rf2.50 each at the offer price of Rf80 per share would be made available to the public.
The subscription period will open on October 25 and close on November 30. Formed in 1988 as a joint venture between the government and Cable & Wireless, Dhiraagu has since invested US$155 million in developing its network and operations within the Maldives. The company employs more than 600 people, 99 per cent of whom are Maldivians.
Speaking at the IPO launching ceremony Tuesday night after releasing the Dhiraagu prospectus, President Mohamed Nasheed said the government’s aim was to divest its remaining 33 percent to the public at a later date.
The MDP government’s policy was to ensure that the government would no longer be involved in business, said Nasheed, reiterating the government’s commitment to free market principles and economic liberalisation.
“The government is very much certain that profits increase manifold when the government is not involved [in doing business],” he said. “This became most clear when the airport was privatised. Did you know that before [Indian infrastructure giant] GMR took over [management of] the airport, in the year that the government received the highest amount from the airport company to the state budget, it was Rf100 million (US$6.4 million). Usually it is Rf75 million (US$4.8 million). This year the government will receive Rf600 million (US$39 million).”
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