Politics – Page 515 – Minivan News

Four taxation bills sent to committee

Four bills of the government’s economic reform package were sent to a parliamentary sub-committee for further review yesterday.

The four pieces of legislation would together introduce a five percent general goods and service tax (GST), an income tax, a corporate profit tax and excise import duties for most items from January 1, 2012.

All four bills received on average higher than 50 votes from the 72 MPs present and voting. To expedite the legislative process, an 11-member sub-committee was chosen to review the bills with five MPs of the ruling Maldivian Democratic Party (MDP), three MPs of the opposition Dhivehi Rayyithunge Party (DRP), Jumhooree Party (JP) Leader Gasim Ibrahim, one MP of the minority opposition People’s Alliance (PA) and Dhuvafaru MP Mohamed Zubair as an Independent MP.

Presenting the income tax bill on behalf of the government yesterday, MP Ilyas Labeeb said that the economic reform programme was now being implemented with the introduction of direct taxation in the Maldives for the first time.

“The bill I’m presenting today is the personal income tax,” he began. “Income tax will be taken from individuals whose total monthly income from their salary or other sources exceed Rf30,000 (US$1,900). The tax will be taken from income above that amount.”

All citizens and non-citizens who earn their income in the Maldives will be eligible for the tax. For naturalised citizens and residents, income earned abroad will be taxable as well.

Ilyas explained that the income tax would be progressive and divided into five tax brackets, whereby people with higher income would pay higher rates.

The tax rates are set at three percent for monthly incomes between Rf30,000 to Rf40,000; six percent for incomes between Rf60,000 and Rf100,000; nine percent for incomes between Rf100,000 and Rf150,000; and 15 percent for Rf150,000 and higher.

The legislation specifies 15 sources of income that would be considered taxable, Ilyas continued, while Zakat funds (alms for the poor), pension contributions, interest payments and capital allowance or investment would be exempt from taxation.

Individuals would meanwhile be required to submit an annual personal income tax statement.

If passed, the income tax law will come into effect on January 1, 2012.

Ilyas observed that the introduction of a 3.5 percent tourism goods and services tax (TGST) in January this year had revealed that the country’s GDP per capita was closer to US$4,060 than the previous estimate of US$2,840.

“We learned that the Maldivian economy is such that each citizen should get close to Rf5,000 (US$300) a month,” Ilyas said. “[But] the country’s wealth is shared by disproportionately few people. One in four people do not make even Rf1,000 (US$60) a month.”

Ilyas urged opposition MPs to set aside political differences “to save future generations from indebtedness.”

As a result of deficit financing by both the current and former governments through foreign loans, printing local currency and sale of T-bills, the state is in debt to the tune of Rf18 billion (US$1.4 million).

Meanwhile at a press briefing outside parliament today, DRP Leader Ahmed Thasmeen Ali said that the party gave its MPs a free whip to vote on the taxation bills.

“We cannot make a final decision without listening to what the government has to say about reducing total state expenditure and without looking into the details of the bills, such as how the money taken from the people would be spent,” he said.

The main opposition party however decided yesterday not to impose a three-line whip on proceeding with the tax bills at the committee stage, Thasmeen said.

“Our final decision will be made after the bill is accepted based on how it is shaped in the final stages,” he explained. “We will question the government during [the committee review] process and they will not get our cooperation unless they are ready to shape the bill the way we want.”

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DRP to reject Dr Didi’s reappointment as Fisheries Minister

The main opposition Dhivehi Rayyithunge Party (DRP) will vote against approving the reappointment of Dr Ibrahim Didi as Fisheries Minister, DRP Leader Ahmed Thasmeen Ali declared today.

Dr Didi, newly-elected President of the ruling Maldivian Democratic Party (MDP), was appointed Minister of Fisheries and Agriculture by President Mohamed Nasheed this morning, one year after Dr Didi resigned along with the entire cabinet.

Speaking to press outside parliament today, Minority Leader Thasmeen said that the DRP decided not to endorse the appointment as Dr Didi was among seven ministerial appointees who did not receive parliamentary consent in November.

The DRP Leader argued that Dr Didi “lacked sincerity” for accepting the post after pledging to devote all his time to managing the party in his campaign for the MDP presidency.

“What he said [during the campaign] implied that persons in high posts could not sufficiently fulfill the responsibilities of the MDP presidency,” Thasmeen said. “What he said also implied that he would not accept a senior post that would make it difficult to work [as MDP president].”

Thasmeen urged “other opposition parties working with us” to vote with the DRP to reject Dr Didi’s reappointment.

Asked whether the party would approve the President’s nominee for Defence Minister, Tholhath Ibrahim, Thasmeen said that a decision would be made after evaluation by committee.

Dr Didi’s case was meanwhile “a matter of principle” as his appointment had already been rejected: “We do not accept the President appointing someone parliament has already rejected.”

The DRP MP for Kendhoo noted that the party had voted against the reappointment of former Attorney General Dr Ahmed Ali Sawad for a second time.

Speaking to Minivan News today, Dr Didi said that the stated reasons for the DRP’s decision not to endorse his appointment was “completely without substance.”

“For the leader of the DRP to raise the issue on behalf of the MDP is questionable,” he said. “Is Thasmeen a member of the MDP?”

Dr Didi added that MDP members would not object to his reappointment as the decision was made by President Nasheed, “who is the leader of the MDP.”

Acting MDP Chairperson “Reeko” Moosa Manik has meanwhile congratulated Dr Didi on his reappointment to the cabinet.

Dr Didi insisted that his acceptance of the post did not contradict any campaign pledges.

“What I said was that I would not accept any political post that would hinder my work as MDP president,” he explained. “I was at the MDP office even this afternoon.”

He added that the ministerial duties would not create “any difficulty” to management of the party: “I’m the one who would know how I should plan my time.”

The DRP’s decision not to approve the President’s nominees was “very irresponsible,” Didi continued, as “they have not given a substantial reason for the rejection.”

Didi dismissed Thasmeen’s contention that the decision to reject the reappointment was a question of principle: “By ‘principles’ what he really means is ‘politics,'” he said.

“[When parliament rejected seven ministers in November] they were not able to show any evidence that I had failed to perform my duties as a minister” he stressed. “None of the reasons they have given relate to my performance [as former Fisheries Minister].”

The government wanted to work with “a strong and competitive opposition,” said Didi, “but the lack of such an opposition party continues to pose many serious challenges for us.”

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PA split from DRP forces reworking of committee composition

Speaker Abdulla Shahid urged parliamentary group (PG) leaders today to agree upon a revised composition for standing committees by the end of the day, following official notice of the People’s Alliance’s (PA) split from the main opposition Dhivehi Rayyithunge Party (DRP).

“Due to this change, according to the rules of procedure we have to carry out the task of allocating members to the Majlis’ standing committee,” he said, appealing for the parties to determine the composition by the end of the day. “A month and a half of this session has passed without any committees functioning.”

Shahid noted that with the opposition coalition dissolved, 24 MPs remained to the DRP after the departure of PA’s seven MPs.

Article 101(b) of the parliamentary rules states the number of MPs each party has “should be taken as the basis” for determining the composition of committees.

Prior to the split, the combined strength of the DRP-PA entitled the opposition coalition to 39 percent of each of the 11-member committees, or four seats in each committee.

The ruling Maldivian Democratic Party (MDP) with its 34 MPs meanwhile commands five seats (45 percent) in each committee.

MP Ibrahim ‘Ibu’ Mohamed Solih, parliamentary group leader of the MDP, told Minivan News that PG leaders met today and “have reached an agreement.”

“I hope that it will be announced tomorrow,” he added.

Ibu Solih revealed that the ruling party had not demanded control of specific committees.

“In some committees, we have even let go of one of our five seats,” he said. “In any case, I hope the decision will be announced tomorrow.”

Much of the current parliament session that began in June has been consumed by disputes over committee composition, which was sparked by the defection of opposition MPs to the ruling party during the May recess.

The committee reshuffle was necessitated when the MDP became the majority party with 34 seats.

As all eight Independent MPs had a voting record favoring either the government or opposition, the parties had to agree upon which Independent MP would sit on which committee.

After weeks of forced cancellations and wrangling at the negotiation table, parliamentary group leaders reached a compromise to allow the opposition to retain control of the influential Public Accounts Committee and Government Oversight Committee.

The ruling party meanwhile won provisional control of the coveted ‘241’ Security Services Committee with MPs Ismail Abdul Hameed and Ali Mohamed chosen among three Independent MPs on the committee.

MPs of the DRP’s breakaway Z-faction however objected to both the compromise and the nature of the sitting where it was voted through, vowing to disrupt future sittings in protest.

Defending the party leadership at the time, DRP MP Rozaina Adam told press that the party had “sacrificed” its slots on some committees to allow Independents and DQP MP Riyaz Rasheed to have a seat.

Rozaina explained that two of the Independent MPs on the 241 committee were “two MPs that both sides believe to be neutral.”

Revised composition of the most influential standing committees as agreed upon on July 5,

Public Accounts Committee – five seats for MDP; four seats for DRP-PA; one seat for Dhivehi Qaumee Party (DQP); Eydhafushi MP Ahmed “Redwave” Saleem as the Independent MP

Economics Committee – five seats for MDP; three seats for DRP-PA; one seat for Jumhooree Party (JP); one seat for DQP; Kaashidhoo MP Ismail Abdul Hameed as the Independent MP

Independent Institutions Committee – five seats for MDP; five seats for DRP-PA; Kulhudhufushi South MP Mohamed Nasheed as the Independent MP

Government Oversight Committee – five seats for MDP; five seats for DRP-PA; one seat for JP

National Development Committee – five seats for MDP; five seats for DRP-PA; Meedhoo MP Ahmed Shiyam Mohamed as the Independent MP

National Security Committee – five seats for MDP; four seats for DRP-PA; Dhuvafaru MP Mohamed Zubair and Guraidhoo MP Ibrahim Riza as the Independent MPs

Ethics Committee – four seats for MDP; four seats for DRP-PA; one seat for JP; Meedhoo MP Ahmed Shiyam Mohamed and Kudahuvadhoo MP Ahmed Amir as the Independent MPs

’241′ Security Services Committee – four seats for MDP; two seats for DRP-PA; one seat for JP; one seat for DQP; Guraidhoo MP Ibrahim Riza, Velidhoo MP Ali Mohamed and Kaashidhoo MP Ismail Abdul Hameed as the Independent MP

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DRP Leader Thasmeen “failed as majority leader”: MP Mahlouf

MPs of the opposition Dhivehi Rayyithunge Party’s (DRP) Z-faction are in the process of joining forces with minority opposition parties People’s Alliance (PA), Jumhooree Party (JP) and Dhivehi Qaumee Party (DQP) to form a new “opposition parliamentary group.”

After months of internal strife within the DRP, coalition partner People’s Alliance (PA) broke its agreement with the largest opposition party this week at the behest of the Z-faction, threatening DRP Leader Ahmed Thasmeen Ali’s status as the minority leader of parliament.

Formerly the majority leader, Thasmeen became minority leader at the beginning of the current parliament session in June when the ruling party secured 34 seats, making the parliamentary group leader of the Maldivian Democratic Party (MDP), Ibrahim Mohamed Solih, the new majority leader.

Z-DRP MP Ahmed Mahlouf told Minivan News that the new parliamentary group will consist of MPs from PA, JP, DQP and a few Independent MPs along with about 11 DRP MPs disaffected with Thasmeen’s leadership.

“We will appoint a leader and deputy leader for the new parliamentary group very soon,” he revealed.

The DRP MP for Galolhu South added that embattled DRP Leader Thasmeen was “welcome to join” the new group.

“But it was Thasmeen’s failure that led us to form this opposition parliamentary group, he failed us as the Majority Leader,” Mahlouf said.

Mahlouf told Minivan News yesterday that 11 of the party’s MPs met with MPs of the minority opposition parties and an independent MP Saturday night “to discuss how to move forward.”

Parliamentary procedure prevented the Z-DRP MPs from forming a new party, Mahlouf claimed, but he speculated that the MPs would potentially leave the main opposition and operate either as independents, or join one or other of the opposition aligned parties.

If that scenario were to happen, the DRP would be reduced to 13-15 MPs and Thasmeen would no longer be minority leader, as the the new opposition PA-JP-DQP alliance would number 21-22 MPs.

Thasmeen has meanwhile hit out at the PA’s decision this week to split with the DRP. The PA had claimed lack of cooperation and “initiative” by the DRP leadership in holding the government accountable as the main reason for the decision.

The DRP leader told local media this week that the PA had to “take responsibility for the weakening of the opposition” due to the dissolution of the coalition.

Appearing on private broadcaster DhiTV last night, PA Leader Abdulla Yameen however contended that the termination of the coalition agreement did not entail “any disadvantage or loss to opposition parties.”

Yameen, half-brother of former President Maumoon Abdul Gayoom and potential presidential candidate for 2013, explained that the party would still vote with the DRP to hold the government accountable.

“PA did not break the coalition to support MDP,” he said. “PA parted ways [with the DRP] because we believe that under our new management we can improve efforts to hold the government accountable.”

The opposition MP for Mulaku noted that six months had passed since the PA announced its decision not to follow the DRP’s whip line.

He added that the PA had voted with the DRP “91 percent of the time.”

Yameen said that “any weakening of the opposition” occurred “when the DRP-PA coalition was at its strongest.”

“The opposition parties were weakened when the [concession agreement to hand over management of the Male’ International Airport to Indian infrastructure giant] GMR issue emerged,” he claimed. “I was arrested. [JP Leader] Gasim [Ibrahim] was arrested. Where was DRP then? What hardship did they have to bear? No DRP senior officials were arrested.”

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Z-DRP requests PG investigate MDP MPs’ “act of terrorism”

Opposition MPs met with Prosecutor General (PG) Ahmed Muiz today to request criminal charges be pressed against MPs of the ruling Maldivian Democratic Party (MDP) for bolting the chamber doors and “hijacking parliament” on July 13.

Speaking to press outside the Prosecutor General’s Office, MP Ahmed Mahlouf said that the opposition MPs considered the incident an “act of terrorism” and “a serious criminal offence.”

“In addition, because neither the army nor police took any action against MDP members protesting outside the parliament building, where gatherings are illegal, we also submitted that complaint,” he said.

He added that the MPs requested an investigation into MDP activists locking parliament gates with chains “as a serious issue.”

Speaking to Minivan News today, MP Ibrahim ‘Ibu’ Mohamed Solih, parliamentary group leader of the ruling party, said that the opposition MPs’ decision to take matters up with the PG was “regrettable.”

“There are internal arrangements [within parliament] to deal with such matters,” he explained. “If there was an issue of privileges or ethics, we have a privileges committee and an ethics committee that can investigate [complaints].”

Ibu Solih insisted that there was no criminal element to the disturbances in parliament last week.

Z-DRP MPs Mahlouf, Ilham Ahmed, Ali Arif and Ahmed Nihan were joined at the meeting this afternoon by MPs of the minority opposition Jumhooree Party, People’s Alliance and Dhivehi Qaumee Party.

Mahlouf told reporters that “rocks and water bottles” hurled into the building caused harm to both MPs and officers of the Maldives National Defence Force (MNDF).

He claimed that PA MP Abdul Raheem Abdulla was hit by a rock while an MNDF officer’s eyes were “seriously hurt” by a projectile.

The DRP MP for Galolhu South noted that neither the MNDF nor police moved to offer protection to Deputy Speaker Ahmed Nazim “an hour and a half after the hijacking.”

“After the sitting finished, for the security forces to stand by and do nothing while the Deputy Speaker and MPs were hijacked in there is a very serious problem,” he said.

Asked if any MP was directly prevented from leaving the chamber that day, Mahlouf said that he “tried to get out [of the chamber] but couldn’t do it.”

“My grandmother was at the ICU at the time and I couldn’t go there,” he said. “We couldn’t even go to the toilet. We have videos of all of this and we have even shared some with the media.”

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TEAM urges employers to pay allowance before Ramadan begins

Tourism Employees Association of Maldives (TEAM) has urged employers to pay Ramadan Allowances prior to the beginning of the month as stated in the Employment Act.

‘’We call on all employers to pay the Ramadan Allowance they are obliged to pay in the Employment Act, to be paid before the beginning of the month of Ramadan,’’ TEAM said in a press release .‘’Article 51[a] of the Employment Act states that each year, prior to the beginning of the month of Ramadan, one third of the employee shall be paid as Ramadan Allowance.’’

TEAM expressed concern that some of the employees working in the tourism sector have not received last year’s Ramadan Allowance.

‘’We also call on all employees to work to have the Ramadan Allowance paid,’’ TEAM added.

Vice President of TEAM Mauroof Zakir told Minivan News that TEAM’s press release was not only targeted at employers in the tourism industry but to all employers.

‘’It is a right of all the Muslim employees and it is also mentioned in the Employment Act,’’ Mauroof said.

Mauroof expressed concern that although the Ramadan Allowance was introduced in 2008, there have been some employees that were not receiving the allowance.

‘’We have received information that 12 tourist resorts in the Maldives have not paid Ramadan Allowance to their employees last year,’’ he said. ‘’Following an amendment presented by the Maldivian Democratic Party (MDP) MP Ahmed Easa, now all employees earning less than Rf2000 are supposed to be paid Rf2000 as Ramadan Allowance according to the Act, and we urge all employees working in all the sectors not only tourism sector, to work to have it.’’

Mauroof said he did not wish to reveal the names of the resorts that have not paid last year’s Ramadan Allowance.

”It would be better not to mention their names, just not yet,” he added.

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DRP-PA split could see rise of new opposition majority

The decision by the People’s Alliance (PA) to split from the opposition Dhivehi Rayithunge Party (DRP) could redraw the political boundaries in parliament.

The PA decided on July 13 to break the longstanding coalition agreement, with the backing of DRP MPs loyal to former President Maumoon Abdul Gayoom collectively known as the party’s Z-faction.

“I believe it is a good move. Since Ahmed Thasmeen Ali’s leadership there has been no cooperation with the PA,” said Z-DRP MP Ahmed Mahlouf. “Nothing has been done with the PA for the past two years – they were just told how to vote.”

Mahlouf told Minivan News that 11 of the party’s MPs last night met with the opposition-aligned Jumhoree Party (JP), the Dhivehi Qaumee Party (DQP) and an independent MP “to discuss how to move forward.”

Parliamentary procedure prevented the disaffected MPs from forming a new party, Mahlouf claimed, but he speculated that the MPs would potentially leave the main opposition and operate either as independents, or join one or other of the opposition aligned parties, and had discussed the appointment of a parliamentary group leader.

If that scenario were to happen, the DRP would be reduced to 13-15 MPs and Thasmeen would no longer be minority opposition leader, as the the new opposition PA-JP-DQP alliance would number 21-22 MPs.

Asked whether this move would leave Thasmeen open to cooperation with the ruling Maldivian Democratic Party (MDP), Mahlouf alleged that “Thasmeen and [Speaker] Abdulla Shahid have already been helping President Mohamed Nasheed for two years. The separation won’t change that.”

“I don’t think he will join them though – Thasmeen will want to run in the Presidential elections,” Mahlouf predicted.

The MPs affiliated with the Z-DRP include Ilham Ahmed, Ahmed Mahlouf, Ahmed Nihan, Ali Arif, Abdul Muhsin Hameed, Dr Afrashim Ali, Hamdhoon Hameed, Yousuf Naeem and Mohamed Rafeeq Hassan.

Mahlouf noted that joining another party would also involving discussing potential Presidential candidates once the party lines were redrawn.

Addressing concerns raised yesterday by DRP MP Abdulla Mausoom – that the representation of constituents in strong DRP areas such as Laamu Atoll who elected opposition coalition MPs would effectively become PA electorates – Mahlouf said that such islands “voted for the PA because President Gayoom asked them to do it. Even now Zaeem is with the PA, they are working together. Voters in Laamu didn’t vote for Thasmeen – they voted for Gayoom.”

The redrawing of party lines will likely affect the controversial compromise on the composition of committees, which led to fistfights in parliament last week.

Article 101(b) of the parliamentary rules of procedure states the number of MPs each party has “should be taken as the basis” for determining the composition of committees.

The DRP-PA coalition, with 39 percent of seats in parliament, were therefore entitled to four seats in each of the 11-member standing committees.

The rules also states that Independent MPs should be given equal opportunity to select a committee of their preference.

Meanwhile, a statement released by PA yesterday notes that the proposal to break the coalition agreement was put forward by members of the parliamentary group.

“Following discussion on the issue by the PA council, as the DRP leadership elected during its 2010 congress has not given priority to adhering to the coalition agreement, the council members noted three main points,” it reads.

The PA council accused the DRP leadership of not putting “a substantial effort into maintaining the DRP-PA coalition” and failing to adhere to “the spirit of the [coalition] agreement.”

Moreover, the DRP leadership did not “take initiative for the many efforts needed to hold the government accountable” while also not supporting or backing “the efforts of other opposition parties.”

It adds that DRP Leader Thasmeen did not adequately shoulder responsibility and take initiative as befits the majority leader of parliament when the opposition coalition controlled a narrow majority.

“PA council members also took note of the serious divisions within DRP and the failure to resolve the disputes as well as splits between DRP members in parliament and the failure to appropriately enforce the party’s whip line,” the party said.

The PA observed that “as a result of matters deteriorating to the point where DRP MPs cannot communicate with the leadership,” the party doubted that it could “perform the hard and noble work” of holding the government accountable.

The PA council members further noted that “senior figures of the Z-DRP faction that works closely with the PA” had urged the minority opposition to split with the DRP.

Following a compromise reached over the revised constitution of standing committees, DRP Deputy Leader Ilham Ahmed, affiliated with the Z-faction, publicly called on the PA to sever ties with the main opposition party.

DRP Leader Thasmeen acknowledged to Haveeru today that the decision would weaken the opposition, and said that “both sides failed to comply with the agreement.”

“I don’t think dissolving the agreement would make much of a difference now. As far as I’ve noticed, both sides failed to keep up with the agreement,” Haveeru reported Thasmeen as saying.

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Government pursues Sri Lanka currency exchange as devaluation deadline passes

Maldivian financial authorities are reportedly in negotiations with Sri Lanka to try and establish a currency swap mechanism in an effort to stabilise the value of the rufiya against the US dollar – a move opposition MPs claim is at best, a short-term relief.

Sources linked to the country’s financial sector have told Minivan News that a deal between the Maldives Monetary Authority (MMA) and the Central Bank of Sri Lanka was “in the pipeline” in order to try and create a system for a direct exchange between the rufiya and the Sri Lankan rupee.

Mahmood Razee, the Maldives’ Economic Development Minister, did confirm that talks were taking place over a possible exchange movement with Sri Lanka, reflecting the government’s intentions to try and stabilise the local currency against high demand for the dollar.

While claiming to welcome government initiatives for economic stabilisation, a spokesperson for the opposition Dhivehi Rayithunge Party (DRP) said that although a currency exchange may provide “short-term” relief for dollar demand, the government would be required to show shrewd financial management to maintain confidence in the rufiya in the long run.

Income aims

The currency swap is the latest development in the government’s plan to boost income of foreign money that has maintained a lucrative blackmarket for the US dollar in the country. Three months ago, the government began pursuing a controversial plan to devalue the rufiya. The local currency, which was pegged at an exchange rate of 12.85 to the dollar since July 2001, was this year amended to within 20 percent of this figure to try and bridge a limited national supply of foreign money in circulation.

The devaluation stance was welcomed at the time by the International Monetary Fund (IMF), yet was domestically met with derision by opposition politicians and a week of public protests across the capital during April over fears about the resultant rises in living costs.

Despite accusing certain opposition parliamentarians of manipulating protests and media coverage for their own political gain, financial authorities requested patience for three months for the dollar demand and supply to stabilise – a deadline that passes this month.

With local news reports claiming the local currency was trading at up to Rf16.5 to the dollar on the country’s black-market, Mahmood Razee said at the time that authorities could consider additional support measures such as currency exchanges if its stabilisation aims were not met.

While discussions are said to have been ongoing for sometime over trying to establish methods to exchange currencies with other nations, a report in the Pakistan Observer newspaper today cited Razee as claiming discussions were very much continuing between finance heads in Sri Lanka and the Maldives.

However, a source with knowledge of the discussions who wished to remain anonymous told Minivan News that “figures” at the very top level of the MMA were involved in ongoing talks with the Central Bank of Sri Lanka to provide a currency exchange system.

Talking to Minivan News today, Razee confirmed that talks were ongoing, though he said he was unsure as to what stage they had currently reached. The economic development minister claimed that although the currency exchange talks had begun before the decision to devalue the rufiya, he added that it did form part of the government’s response for trying to balance local dollar demand.

However, with the initial three-month target period to introduce economic stabilisation now passed, Razee said that he believed the finance ministry was limited at present in terms of additional support measures that could be introduced to the economy, particularly during the low-tourism season and its impact on government earnings.

“At present, I’m not so sure the Ministry of Finance will be able to undertake any urgent [new] measures to ensure stabilisation,” he said. “It would be more difficult at the moment to introduce these measures due to the low tourism season.”

Since January this year, the government had pledged to try and balance its books with a focus on generating direct revenue through the gradual introduction of taxation schemes. These schemes have included a Business Profit Tax scheduled to be launched this week for higher income enterprise and the tourism Goods and Services Tax (GST) introduced over the new year.

DRP Spokesperson Ibrahim ‘Mavota’ Shareef claimed that although the opposition party welcomed stabilisation measures from the government, it did not believe that longer-term measures had been successfully planned by authorities to bridge the dollar demand. However, Shareef said that the black market was testament to the fact that dollars did exist in the country, but that they required sufficient management to ensure they are finding their way into wider circulation.

“Any measures that encourage financial stabilisation we would welcome. This is more a national than political issue. But we do not see [stabilisation]happening yet,” he said. “If we are all spending more than we earn, especially the government, then we cannot balance the economy. These currency swaps are a short-term solution to achieve this.”

Claiming that the government had shown limited long-term measures to protect the economy, Shareef said he believed that there was a danger many local people would not want to keep savings in the form of rufiyaa as a result of “deceptive” government policy. “When the government said that three months of the [rufiyaa float] policy would bring stabilisation people believed them,” he said.

Yet with government earnings expected to increase on the back of taxation drives, Shareef said that there were reasons to believe stabilisation was possible and that the tourism industry was a strong example of where sufficient foreign currency revenue could be generated.

“This depends though if the market is well managed. When the government first decided to manage the ruifya float [devaluing the currency against the dollar] they should have calculated the availability of foreign currency,” he said. “Dollars are clearly available on the black market and it is the duty of the government to supply them to [society].”

As such, Shareef claimed that it was therefore the government’s responsibility to have managed the devaluation “properly”, alleging that it had instead hoped for a positive outcome for finance rather than ensuring correct measures were available.

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“You cannot eat democracy – but taxes can buy food”: President Nasheed

Extracts from President Mohamed Nasheed’s speech at the book launching ceremony of “The Maldives’ Journey to Democracy” by Mohamed Abdulla Shafeeq.

“I would say the Maldives changed to democracy with high hopes of citizens. And we began down that path with high hopes of the people. The question we ask today is whether those hopes have become a reality. Are we satisfied that we’ve got what we wanted?

I definitely was very much certain that the government will change. I became certain of this in 1990. I remember I wrote in a letter to someone at the time that this is something that I will do; that we can do this. We can change the government of the Maldives through peaceful political activity. There would be no need of a revolution or a coup. [We believed that] we could take courage and strength from each other, overcome our fears, and change the country through peaceful political activity.

Even back then, we thought and worried about how that change could be consolidated. The country has changed many times before. [Going] from one ruler to another is a change. However I cannot find a single ruler who was left alone after the change and not banished, his wealth and property confiscated, his wife and children, his whole family, hounded to the point where they were erased from the country. Not a single ruler.

All the rulers of Maldives were quite good. They did many services to the people. They facilitated a number of things to the people. However, it is very difficult to find a former ruler who was treated with proper kindness, with generosity and compassion, and in fairness.

Escaping that stamp became our main goal and purpose. [We wanted to see] how we could govern without torturing the former ruler, punishing him, confiscating his property, without arresting his wife and children, without destroying the lives of his in-laws and other relatives and family members.

Now, a lot of people tell me, ‘your mind is too young.’ That is something I’ve always heard. About how young my mind is; how I do not understand and how I want to do things too quickly. […] A lot of people were saying when we approached the parliamentary elections that if we did not round up and arrest everyone in the former regime, MDP would not get a single vote.

That is true. If we arrested half of the people contesting for parliament, they would not have won their seats. [They say that] we generously forfeited the parliament majority. That is an accusation levelled against me quite a lot these days. [That is] because we did not fight for justice and quickly conducted trials, many people walked free. A lot of people who committed injustices and violated the rights of the public were able to go free.

And not only did they go free. They came back again into the legislature. They won the Majlis majority. At the time, there were just 25 members of parliament to support our infant democracy, the Maldivian Democracy Party (MDP) or the newly-formed government. Opposition parties needed just one additional vote to overthrow the government.

Our government came into being within this halted state, facing these obstacles. Nevertheless, we were always striving towards our goal, with our purpose; to stay as we had resolved. That is to not violate rights; and not arrest and harm people.

Even as I say this, there passes many, many times, many moments, when there is pressure to arrest or [circumstances] that forces arrests [to be made]. There were other times when certain people were arrested for short periods. That is regrettable. I believe that we are able to bring the changes we want, the changes that we are seeing now, because we strive with tactfulness and patience.

If we had tried be the most superior, the most powerful, on the first day, if we still try to be, I would say Mohamed [Shafeeq] would not have been able to write this book even today. He would have to write flowery and golden praises of the newly-formed government. A government does not become dictatorial because of a person; but because of many, many things that develop around it, when it becomes entwined in it.

We wanted the democratic principles or democratic system we have attained for a very important purpose: that is for freedom of expression. However, freedom of expression is not something you can eat. Human nature might not suggest that a lot of people would come out and fight very hard for freedom of expression. In sum human beings strive for food, shelter, clothing. And to produce another human being.

We did not try to act, in any case, thinking in this narrow sense. Our purpose was always for democracy, to use democracy as a means. In itself, nothing happens when you only attain ‘democracy.’ We can only do something when we use democracy as the means.

This country’s government has always been protected by a small number of people. At times it might be two or three families, six tycoons and three or four prominent people in the island – such architects. Such groups have been able to keep hold of the country’s rule for thirty, forty, fifty years.

And so no matter how sincerely a ruler wants to push reforms, it becomes very easier to show the ruler that the reform is unacceptable, it would not be accepted by the people, it is the wrong thing to do, and it should not be done under any circumstances. I will give an example: tax. […] We know today that [the public is not opposed to taxation] using democracy, because democracy is the means through which we are able to have discussions; because freedom of expression allows us to have debates.

We are able to talk about increasing revenue, about taxation and all such matters only because we have democracy. Even if democracy is not something you can eat, the proceeds of taxation can be used for food.”

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