The Civil Court today rejected a case filed on behalf of a civil servant challenging the legality of controversial Rf20,000-a-month committee allowances for MPs.
A group of concerned civil servants filed the case on behalf of Maah Jabeen, Seenu Maradhoo Fenzeemaage, arguing that releasing funds for committee allowance without reimbursing civil servants for amounts deducted from their 2010 salaries violated constitutional provisions on fairness and equal treatment.
On 26 September, the civil court issued an injunction prohibiting the Finance Ministry from releasing funds to parliament until the court delivered a judgment on the case.
In October 2009 – almost a year into the new administration – unpopular pay cuts of up to 15 percent for civil servants were enforced as part of austerity measures to alleviate the country’s ballooning budget deficit.
The austerity measures were met with a severe political backlash. In December 2009, the opposition-controlled parliament added Rf800 million (US$62 million) to the 2010 state budget, including the restoration of civil servant salaries to previous levels.
In January 2010, however, the Ministry of Finance and Treasury refused to restore the salaries after just three months of the cost-cutting measure.
After weeks of legal wrangling with the parliament-appointed Civil Service Commission (CSC), the ministry accused the independent commission of hiding “a political agenda”, and in February 2010 filed a case with the police asking them to investigate it on suspicion of trying to topple the government “and plunge the Maldives into chaos.”
At the height of the dispute in early 2010, permanent secretaries at ministries were ordered to submit different wage sheets by both the Finance Ministry and the CSC.
In April 2010, the Civil Court ruled that Finance Ministry did not have the legal authority to overrule the CSC. Although the government contested the ruling and refused to restore salaries to previous levels, the High Court upheld the lower court ruling in May this year.
Meanwhile in the verdict issued today, the Civil Court noted that the state had appealed the High Court ruling at the Supreme Court, which has since agreed to hear the case.
The court ruled that there were no legal grounds to order the Finance Ministry not to release the funds to parliament as the two budget items in question were “not in the same state or condition.”
Civic action
After parliament’s Public Accounts Committee decided to issue the committee allowance as a lump sum of Rf140,000 as back pay for January through June, a loose association of concerned citizens launched a campaign noting that the state had a staggering fiscal deficit of Rf1.3 billion (US$85 million) as of the first week of September.
Neither lawyer from the civic action campaign was available for comment today.
Some sources have meanwhile criticised the MPs for comparing their salaries and privileges to those of United States congressmen.
“You can’t do that, the two countries are too different,” said No MP Allowance Media Coordinator Hamza Khaleel.
“The salary difference between the highest-paid civil servant and a congressman in the US is 175%, while in the Maldives it’s 365%,” Khaleel pointed out. “Our MPs get as much as MPs in Sweden, but our GDP is nowhere near Sweden’s.”
NGOs have retreated from the issue in recent weeks, but No MP Allowance, a group of concerned citizens which operates primarily through social media outlet Facebook and has almost 3000 members, has been networking to protest the allowance since February. Khaleel said the group is the “single largest civil movement for this issue.”
“You can see that our Facebook page is very active. All of the members might not show up to protest but they are writing letters and suggesting ideas, so you can see that they are involved,” said Khaleel.
Khaleel noted that MP opposition and negative media have deterred the group from publicising its plans, but he said media coverage lately had improved.
Upon hearing of the court’s verdict today, Khaleel said No MP Allowance’s campaign did not depend on a court ruling but on the constituents’ opinions.
“If you ask the MP’s constituents, they will say that the MPs aren’t doing as much as they could have. Very few MPs have taken up issues that are community-focused,” he said.
“Our main focus is still to get constituents to write to their MPs asking them not to take the allowance. We have drafted sample letters that we are distributing for signatures, and will collect and deliver to the MPs. We represent the constituents, if they are not satisfied then we still have work to do,” Khaleel said.
President Mohamed Nasheed’s energy advisor Mike Mason has unveiled the technical and economic justification for transforming the Maldives into a solar-powered nation.
“I have the oily rag job,” said the former mining engineer, speaking at Soneva Fushi’s Slow Life Eco Symposium about the government’s ambition to generate 60 percent of the country’s electricity needs through solar. “It’s a bit like trying to build a complex aircraft while the captain’s trying to fly it.”
Last year the Maldives spent 16 percent of its GDP on fossil fuels, making the country staggeringly vulnerable to even the tiniest oil price fluctuations and adding an economic imperative to renewable energy adoption.
Mason evaluated available renewable alternatives to diesel and concluded that solar was the most abundant, cost-effective and realistic resource to exploit.
“We can forget ocean currents for now,” he said, explaining that as the currents were wind driven and therefore seasonal, marine current generators would only generate significant electricity for half the year.
Ocean thermal was “very exciting”, Mason observed, although he noted that Soneva Fushi bore the scars of a failed ocean thermal project: “I suggest we wait for someone else to pioneer this,” he said.
Biomass generation “fits us rather well”, as even if the most expensive form of biomass was imported from Canada it would represent 50-66 percent the current cost of diesel.
“It is cheap but can only be used at scale, such as Male’ and possibly Addu,” he said.
Wind and solar
That left wind and solar, the potential for which was “fascinating”.
The challenge with wind, however, was that it was inconsistent, and there were large periods of the year with little resource available.
“What do you do in the eight months without enough wind?” Mason asked, displaying wind data collected in the country’s north.
“What you do is put up solar. In that case, why bother to put up wind at all? With solar the sun rises every day – it is wonderfully predictable.”
The trick was going to be to transform solar from a green, niche, “subsidy hungry creature, to something so obvious that the current government of the time sees it as a sensible and intelligent thing to do. The reality is that it is easy to get to 30-40% emission reduction, but getting beyond first stage to the 80-90 percent that has been proposed by cabinet will be more difficult.”
Mason collected data concerning the cost of generating electricity using diesel at 100 of the country’s inhabited islands, “as I felt there was not enough data available”, and found staggering levels of inefficiency.
The numbers, he said, “are really scary. At best it costs 28-29 cents to produce a kilowatt hour, but at the top right of the graph it is costing 77 cents per kilowatt hour. Anything beyond 28-29 cents for a big island and 32-33 cents for a small island is just money being burned.”
The Maldives could quickly and easily save US$0.5-1 million dollars a month “simply by fixing power stations by doing boring, sensible stuff.”
“Diesel engines are designed to work at their rated power – they like going flat out. The moment you back off by half, you end up with a less efficient engine. Many islands have power stations with engines out of proportion to the size of the island’s energy needs – in some cases they are running at 15-25 percent capacity. That is a real cost we have.”
Mason then displayed a graph detailing the cost of providing solar, and observed that the cost plummeted quickly when it came to providing 30-40 percent of the country’s energy needs but sharply increased thereafter to a point where it was less competitive.
The challenge, he explained, was storage – how to retain electricity to operate devices such as lights, fridges and air-conditioners at night.
“Energy storage is the big hole in our story here. The key for me is to reach that 80 percent goal without the [cost] graph rising beyond where it is today,” Mason explained.
Using data detailing the energy use patterns of the island of Maalhos in Baa Atoll, Mason observed a high variability in power demand. Introducing solar without storage – “from panel to fridge” – would complicate that by requiring more flexibility from the existing power plant.
Energy Advisor Mike Mason
“Stick a solar panel on [Maalhos] and you can generate 29kw at midday with zero demand [on the powerplant]. But the maximum you need from the powerplant [without solar] is 42kw. This is a fundamental problem – the more solar you get, the more we have to get the power stations right.”
The cost of providing solar electricity straight from the panel was far below the cost of using diesel on any island, including Male’. On Maalhos, by pointing the solar panel in the same direction all day, “you can meet midday demand easily. But between 6-11 am in the morning, and after 2pm in the afternoon, you still need to meet the cooling load of fridges and air-conditioners.”
Mason had two suggestions – the first was to use (more expensive) tracking solar panels that would follow the sun and extend the daytime period in which demand could be met using solar. This would also generate the maximum yield from each panel, mitigating another problem – space.
“The challenge will be getting tracking to work in a hot, humid, salty environment,” he acknowledged, particularly if the panels were mounted in shallow lagoons.
The cost of providing electricity from solar in conjunction with current commercially available battery technology was not much different from existing diesel arrangements on many islands, Mason observed. “You lose 20 percent of the electricity putting it in and taking it back out, and it is expensive to fix. It’s not good enough.”
However on Maalhos, Mason noted, 28 percent of the electricity demand was for cooling.
“I had a think about storage. We could use really cold water refrigerated during the day, and use that to drive air-conditioning and fridges at night. This applies as much to resorts as it does home islands.”
This innovation would drop the cost to the level of the country’s most efficient diesel generators, Mason explained. For those powerplants currently running at 77 cents a kilowatt, “this is an opportunity to print money – and there aren’t many of those available to the government.”
Challenges
The major problem was obtaining the capital, Mason said, estimating that such an overhaul for the nation would cost US$2-3 billion, “although half of that would come from the tourist industry.”
“With renewable energy, on day 1 you buy 25 years of electricity. It might be cheap, but you still need enough cash on day 1.”
Attracting the investment in a country such as France or Germany would be “a no brainer”, Mason said, however because of the Maldives turbulent political history and fiscal deficit, it had a very weak credit rating.
“There is a shortage of knowledge and skills as well,” he said. “We need an energy technology support unit, and an energy finance corporation that can for this project provide guarantees and get countries to underwrite us. We do not want to be reliant by subsidies.”
In response to a question regarding the planned Gaafaru wind farm, Mason acknowledged the build, own and operate agreement STELCO had signed with Chinese wind turbine manufacturer XEMC to develop a 50mw wind farm at Gaafaru was a potential commercial pressure for adopting solar.
Under this agreement, a backup liquefied natural gas (LNG) plant would also be built, capable of providing up to 30 megawatts on windless days, or when there is not enough wind to meet demand.
Minivan News raised concerns in an article published in April 2010 that according to figures published in a 2003 report by the US National Renewable Energy Laboratory (NREL), North Malé Atoll had an annual average wind speed of 4.9 m/s (17.7 km/h), while a 2005 report by the American Wind Energy Association (AWEA) described the minimum average wind speed needed to run a utility-scale wind power plants as 6 m/s (21.6 km/h).
Mason described the contract as crafted with “more enthusiasm than technical involvement”, and noted that an LNG plant put out 92 percent of the emissions of a diesel plant “of the kind that STELCO already run very well.”
“A single cycle gas turbine of the kind described is very efficient but does not have the flexibility [required]. There is a technical challenge. We need to think about how we integrate things before we sublet the parts, so my instinct is that the contract will not be enacted in form presented.”
Speaking of the solar plan, now backed at least by data if not the finance, a senior government official remarked that the plan to turn to solar was “no longer froth. There’s a shot of espresso in the cappuccino now.”
The Maldives has meanwhile become the first country to crowdsource its renewable energy plan on the internet.
Forum topics in the comprehensive crowdsourcing project include solar and wind technology, energy storage, system control and demand management, novel technologies (including marine current and ocean thermal), biomass power generation, and finance.
Under each topic the Maldives appeals for expert assistance on several technical questions, around issues such as the use of solar panels in corrosive environments, the economics of tracking or fixed solar panel systems, and the viability of low velocity wind turbines.
Dr Abdul Majeed Abdul Bari was reappointed Minister of Islamic Affairs this morning, less than a week after he resigned from the position in the wake of the religious conservative Adhaalath party’s decision to sever its coalition agreement with the ruling Maldivian Democratic Party (MDP).
Dr Bari told Minivan News last week that he resigned “out of respect” for his party’s decision.
While both Dr Bari and State Islamic Minister Sheikh Hussain Rasheed Ahmed were asked to resign by the Adhaalath Party as they could “no longer represent the party in this government”, the latter issued a statement saying he would not resign unless he was asked by President Mohamed Nasheed.
Speaking to press at the Islamic Ministry today, Bari claimed that he accepted the post “as an individual” after “98 percent” of the people he consulted with – including religious scholars, businessmen and members of the general public – had advised him to do so.
Bari explained that he did not resign out of dissatisfaction with the government or difficulties in performing his duties, insisting that he accepted the post again “as a second opportunity to serve the nation.”
President Nasheed had welcomed Bari’s decision to accept the post while remaining a member of the Adhaalath Party, he said, insisting that he had no intention of resigning from the party.
Bari added that he expected Adhaalath Party to be “satisfied” that a member of the party would be filling the post of Islamic Minister.
Bari went on to criticise the party’s decision to sever the coalition agreement, claiming that a decision had been made before the consultation council held a meeting.
Moreover, he added, the meeting was held in violation of party rules and regulations as members were not informed of the items on the agenda. Dr Bari said he had argued against leaving the MDP-led coalition.
Adhaalath Party Spokesperson Sheikh Mohamed Shaheem Ali Saeed, who resigned as State Minister for Islamic Affairs last year, told Minivan News today that Dr Bari’s resignation was “a drama.”
“It was a drama he played so I would not like to comment on his action,” he said.
Adhaalath Party meanwhile issued a press statement today strongly condemning Dr Bari’s decision as going against “the spirit of the party’s constitution as well as the party’s decisions.”
“We also note that Dr Abdul Majeed Abdul Bari lied when he claimed to have assumed the post again after consulting with the party,” it reads, characterising the move as “lowly conduct” on the minister’s part.
The Criminal Court has sentenced a man to six months imprisonment after the police discovered two plastic sex toys inside his room.
The court identified the offender as Musthafa Hussein of Mahchangolhi Feyruge.
According to the Criminal Court, possession of objects shaped like sexual organs were prohibited under articles 4(c) and 13(c) the Contraband Act of 1975.
While article 4 of the Act states that pornographic material cannot be brought into the country, under article 13[c] images, sounds or videos depicting sexual activities as well as objects made to look like sexual organs shall be considered pornographic material for legal purposes.
Musthafa was therefore charged with possession of pornographic material.
The sex toys were discovered by police when they searched his room during a special operation on April 30, 2011.
The Fishermen’s Union has rejected Male’ City Council’s proposal to privatise the fish market on the grounds that the change would eliminate competition and complicate boat routines.
“We have to keep our system,” said union chairman Ibrahim Umar. “Privatising will make the operation too big.”
Umar said that 50 vessels currently come to Male’ each day to deliver fish, and that space is tight. Under the proposed plan, said Umar, fishermen would have fewer responsibilities in Male’s fish market but would be expected to make more frequent trips in and out of Male’s harbor.
“There isn’t room for that kind of traffic in the harbor. And there isn’t storage capacity for the extra fish that would be coming in,” said Umar.
According to Umar, the fish market currently enjoys a healthy level of competition.
“Every day the fishing is good, there is enough money, and there is even demand from other atolls for fish from Male’. Privatising the fish market will kill the competition because fishermen will have to sell at the same private rate. Bringing in more fish will also keep the price down, and there’s nowhere to keep it on Male’. We need to run this through the union,” he said.
Male’ Mayor ‘Maizan’ Ali ‘Alibe’ Manik said the plan to privatise is an effort to comply with World Health Organisation (WHO) standards, Haveeru reports.
“When we hand over the fish market for management, the fishermen will just have to bring the fish to the market and hand it over to those in charge of management. That way it saves the fishermen time, allowing them to set off fishing faster,” he said.
For Umar, the advantages were unclear.
“How will fishermen get paid? It will take longer if they aren’t selling the fish themselves,” he observed.
Addressing the issue of facilities, however, Umar said that an earlier proposal to build a fish harbour in Hulhumale’ was being revisited by the Ministry of Fisheries and Agriculture, the Ministry of Transport and Hulhumale’ Development Corporation (HDC).
In 2009, plans to build a fish harbour on Hulhumale’ were sent to the National Planning Council. The harbour was intended to expand and expedite the fishing industry, and reduce the pressure on Male’s market.
When the National Planning Council rejected the plan, however, Umar said there was a breakdown in communication and trust. “They weren’t talking to us, I found out through the Fisheries Minister that they had rejected the plan. There was no communication with [the union] about the plan or the finances.”
Umar said the union was told there was a lack of funds, but claimed that the International Fund for Agricultural Development (IFAD) had set aside money for the harbour. “I don’t know what happened with that money, we never got an explanation.”
In 2006, IFAD approved a post-tsunami recovery program in agriculture and fisheries. IFAD currently classifies the program as ‘ongoing’.
Minister of Fisheries and Agriculture, Ibrahim Didi, said the earlier financial problems have been resolved and the ministry is currently working with HDC to construct a fish harbour.
Didi said expanding work space is integral to privatising the fish market, which is growing.
“There’s already plenty of demand for the fish,” said Didi. “Privatising it would bring significant benefits to fishermen. They will have more access to the harbors, necessities such as ice will arrive on time, and things will happen more quickly.”
Didi said development of Hulhumale’s fish harbour has priority, and plans for other fish harbours will be considered accordingly.
According to Didi, President Mohamed Nasheed’s plan will distribute fishing components such as ice, oil and parts to different interested parties. Didi said the approach would improve facilities.
“If the different components of the fishing industry are spread out among interested parties working with a commercial interest, then business will move very fast because there will be a real business interest.”
The City Council earlier told Haveeru that the goal of privatising the market was to improve selling procedures, not to increase profits. Representatives said the union’s response would affect planning.
Council representatives and officials familiar with the proposal had not responded to inquiries at time of press.
The government expects the fiscal deficit to have fallen to a single digit at the end of the year, below the previous forecast of 11 percent of GDP, President Mohamed Nasheed said in his weekly radio address on Friday.
“The budget deficit as a percentage of GDP or national productivity has been estimated for next year at [budget] meetings with ministers and heads of government offices,” he said. “From that estimate we know that government expenditure has been substantially reduced in a number of different areas. For this year, we forecast a budget deficit of 11 percent. We have noted now that it has been reduced by three or four points.”
The government hoped that the fiscal deficit would be below 10 or “a single digit figure” when it is calculated at the end of the year, he said.
The budget deficit, which stood at just 1.9 percent of the economy in 2004, expanded to 7.3 percent in 2006 and ballooned to 23.9 percent in 2007, according to the International Monetary Fund (IMF).
The fiscal deficit exploded on the back of a 400 percent increase in the government’s wage bill between 2004 and 2009, with tremendous growth between 2007 and 2009. On paper, the government increased average salaries from Rf3000 to Rf11,000 and boosted the size of the civil service from 24,000 to 32,000 people – 11 percent of the total population of the country – doubling government spending from 35 percent of GDP to 60 percent from 2004 to 2006.
While preliminary figures had pegged the 2010 fiscal deficit at 17.75 percent, “financing information points to a deficit of around 20-21 percent of GDP”, down from 29 percent in 2009, the IMF noted in March this year.
“We see bringing the fiscal deficit down as the key macroeconomic priority for the Maldives,” the IMF’s Mission Chief to the Maldives, Rodrigo Cubero, told Minivan News at the time. “A large fiscal deficit pushes up interest rates, thereby undermining private investment and growth, and also drives up imports, putting pressure on the exchange rate and inflation, all of which hurts the Maldivian people, particularly the poor.”
“Further efforts are still needed to reduce the fiscal deficit. Those efforts should comprise further tax reforms as well as measures to reduce expenditure and to improve the channelling of social expenditures to the needy.”
Meanwhile in a booklet issued to media titled “the DRP’s response to the government’s economic nuisance package,” the main opposition Dhivehi Rayyithunge Party (DRP) strongly objected to a bill on fiscal responsibility currently before parliament.
The DRP also noted that provisions on imposing limits to government spending would only come into force after 2013.
“In the past three years, the MDP [Maldivian Democratic Party] government earned billions of rufiya by selling off state assets, facilitating business opportunities for their friends and introducing new taxes,” the DRP said. “Nonetheless, while the health sector, the education and overall standard of living has gone from bad to worse, it is unclear how the government spent the billions and billions of rufiya it received.”
President Mohamed Nasheed inaugurated a city council programme last week to plant trees in the congested capital city for “a greener, shadier, and more peaceful Male’.”
Speaking at a ceremony on Thursday, President Nasheed underscored the progress of the government’s flagship “Veshi Fahi Male'” housing programme, revealing plans to build more flats in an additional six areas of Male’.
Under the greenery programme meanwhile, the city council plans to plant 600 trees on both sides of the main thoroughfare Majeedhee Magu.
While the Indian High Commission has donated 10,000 trees, the council has also been receiving donations from islands, individuals and businesses.
President Mohamed Nasheed has relocated the Head Office of Northern Utilities Ltd. to Felivaru of Lhaviyani atoll.
The relocation of this and other utility head offices is meant to bring service providers closer to their clients, the people.
Under a current relocation plan, the government is moving head utility offices from their Male’ bases to the provinces they serve.
In his speech at Felivaru on Thursday, President Nasheed noted that the seven utility companies established in the country’s seven provinces had been successful, and thanked directors and board members of Northern Utilities Ltd. for their efforts.
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