Day: January 4, 2012

Government lifts week-long ban on resort spas, massage parlors

The government has lifted a controversial nationwide ban on spas and massage parlors with immediate effect while it awaits a ruling from the Supreme Court over the legality of spa operations and sale of pork and alcohol in resorts.

The announcement was made by President Mohamed Nasheed during a press conference today at Kurumba Island Resort, the country’s first resort which opened in 1972.

The week-long ban, which has made headlines in both local and international media, was lifted “because the government does not want the economy to suffer any damage during the time Supreme Court takes to come to a decision,” President Nasheed said.

Sale of pork and alcohol would also continue while other goods and services “such as casinos” demanded by the tourists, said Nasheed, would be allowed under the Contraband Act of 1975 until a judicial declaration is reached.

As the Maldivian constitution states that “Islam shall be one of the basis of all the laws of the Maldives” and prohibits the enactment of any laws “contrary to any tenet of Islam”, Nasheed said that the Tourism Ministry requested advice on legality of spa operations and sale of pork and alcohol at the recently-concluded ‘Islamic Scholars Symposium.’

However the scholars recommended that the government seek a judicial declaration, he revealed. Nasheed urged the apex court to settle the dispute in the near future.

Asked if the ban was necessary, Nasheed responded that the move was prompted by allegations made at the December 23 ‘Defend Islam’ demonstration.

Nasheed also dismissed opposition parties’ contention that the government should bear full responsibility for the economic consequences, arguing that “in a democracy, it is difficult to decide who’s responsible”, though conceding that the tourism sector’s reputation has been damaged in the process.

“We wanted to impress upon everyone where the opposition’s demands were ultimately going to end,” Nasheed explained.

The government’s ultimatum “woke the nation from its slumber and sparked a healthy national debate about the future direction of the country,” he insisted.

“The extremist demonstration on 23 December attracted a sizeable crowd. But their radical demands awoke the silent majority who categorically reject extremism,” Nasheed said.

The reason Maldives tourism industry have flourished for years, said Nasheed, is because the sector has been “free from religious fundamentalist demands.”

Referring to controversy over allowing Israeli airlines to operate flights to the Maldives, President Nasheed said that the tourist arrivals would be adversely affected “if we start saying that only certain nationals or certain airlines can come to Maldives,” noting that a sizable portion of tourists were Jewish.

The government’s decision rests on a decision made by parliament on recommendations by its National Security Committee, he said.

The December 23 religious rally organised by a coalition of NGOs and opposition parties was the “biggest use of religion as a political tool” in Maldivian history, Nasheed contended.

“We all must know such fundamentalist demands will damage the Maldives tourism industry’s [image] in the international community,” he said. “News will not always reach the international community in the way we prefer.”

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President ratifies Pre-school Administration Act

President Mohamed Nasheed has ratified legislation on pre-school administration passed by parliament on December 21 in its final session of 2011.

“The Pre-School Administration Bill states the policies regarding the expansion and growth of pre-school education in the country, with the State’s full involvement, as well as the contribution of City Councils and Island Councils, private corporations and organisations, and private individuals,” reads a statement by the President’s Office.

The legislation also stipulates that the government should “encourage and facilitate” the institution of pre-schools in all inhabited islands of the country.

The Act specifies procedures for establishing a pre-school system to enroll children four to six years old.

Under the new law, parents would have the option of enrolling children aged two and a half years in pre-school programmes.

The law also states that children must be provided equal opportunity through the pre-schools and instructed in Islamic studies.

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GMR and government to seek “win-win situation”: Razee

Infrastructure company GMR has said it will deduct revenue received from collecting a US$25 (Rf385.5) Airport Development Charge (ADC) from every passenger departing on an international flight from the concession fee to be paid to the government.

GMR informed Maldives Airports Company Limited (MACL) last Thursday of its decision. MACL officials had not responded to inquiries at time of press.

GMR planned to begin collecting the ADC at midnight on January 1 this year as per its contract with the Maldives government. Revenue was expected to amount to US$25 million (Rf385.5 million) in 2012, and would be put towards the ongoing development of Ibrahim Nasir International Airport (INIA).

However, a Civil Court ruling in December blocked the ADC on the grounds that it was identical to an existing Airport Services Charge (ASC) of US$18 (Rf277.56). The company’s shares on the Mumbai stock exchange subsequently fell 7.57 percent, India’s Economic Times reported.

The government subsequently appealed the case to the High Court. Meanwhile, GMR is not collecting the ADC.

Economic Development Minister Mahmoud Razee said that the concession agreement between GMR and the government assured each party a certain level of income.

“Because the ADC was included as revenue, until the matter is resolved any money that was going to be received from the ADC should be deducted from what GMR owes the government,” Razee explained.

Razee said that the Ministry of Finance will work with GMR and the government to resolve the matter, adding however that much of the decision rests on a verdict from the High Court.

He added that the related Amendment of Collection of Airport Tax (international travelers) Act 7/78 Bill is also before the Parliament, which is currently in recess until March.

Razee was optimistic about the outcome, however far in the future.

“The contract between the government and GMR allows for certain changes which are mutually respected and agreed upon by both parties,” Razee observed. “They will reach a win-win situation, even if some revenue is lost.”

GMR previously noted that the payment of a development fee was “a common concept in many airports globally”, particularly as a part of concession agreements where airports are privatised.

“The reason for the inclusion of ADC in many global concession agreements is to address the funding needs to meet the investment model required to upgrade and develop new airport facilities at significant costs,” GMR stated.

The company further claimed that the charge was included in the concession fee proposed between GMR and the government in 2010.

Meanwhile, in April India’s Supreme Court ruled against the charging of airport development fees which are not approved by India’s Airport Economic Regulatory Authority (AERA). However Delhi airport, developed by GMR, continued to charge the fee as GMR had obtained permission to collect the sum in 2010.

Speaking at the groundbreaking ceremony for INIA’s new terminal on December 19, President Nasheed said he wished to assure GMR that the government was “200 percent behind your contract, and every single other contract the government has signed with any other foreign party in this country. Not just contracts signed by our government, but also contracts that any ruler of the Maldives has signed with any party. We will honour it.”

The public response has not been so positive. Following GMR’s closure of duty-free shop Alpha MVKB, company CEO Ibrahim Shafeeq organised a protest under the slogan “Go GMR Go!” The protest was held on the grounds that the company was “demonstrating our opinions and dislike of what GMR has done to us and to get public responses,” Shafeeq told Minivan News at the time.

Kulhudhuffushi-South Independent MP Mohamed Nasheed also proposed an amendment to the Business Registration Bill in a bid to reserve airport shops and services for local ownership and “clip GMR’s wings”.

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Mohamed Shihab appointed Minister of Finance and Treasury

Mohamed Shihab, a member of ruling Maldivian Democratic Party (MDP), has been appointed as Minister of Finance and Treasury by President Mohamed Nasheed.

Shihab previously held the post of Political Advisor at the President’s Office. He has also served as Minister of Home Affairs under the current administration.

Presenting Shihab with his ‘Letter of Appointment’, President Nasheed emphasised his confidence in Shihab’s capability in executing the financial and economic reform policies of the country.

Mohamed Shihab assured the President that he would put forth his utmost effort as Finance Minister.

Parliament is expected to vote on the appointment when it returns from recess in March.

Previously a member of the MDP’s former coalition partner Jumhoree party, Shihab replaced Jumhoree Party Leader Gasim Ibrahim as Home Minister 21 days into the Nasheed administration.

In late 2010 the cabinet resigned en masse to protest the “scorched earth politics” of the opposition-majority parliament, which it accused of obstruction and attempting to wrest executive control.

Shihab was among seven ministers whose reappointment was rejected by parliament in November 2010. He has since been serving as Political Advisor to Nasheed.

Opposition Progressive Party of the Maldives (PPM) spokesperson Ahmed Mahlouf told Minivan News today the party would discuss the nomination in its parliamentary group before signalling its position.

“It is important to fill the post,” Mahlouf said, adding that “we don’t expect to have any difficulty discussing Shihab’s nomination.”

“I don’t think Shihab is coming from a background in finance, he has instead been Home Minister and an advisor,” Mahlouf explained. “But he is experienced in politics, he served in Parliament for 17 years, and he has been a speaker. I think we see him as someone we can communicate with easily.”

Mahlouf said Shihab’s communication skills were superior to those of former Finance Minister Ahmed Inaz, who he claimed did not have a good relationship with Parliament.

Calls to opposition Dhivehi Rayyithunge Party (DRP) were not answered at time of press.

Inaz
Picture from Manadhoolive.com.mv

Shihab’s appointment as Finance Minister follows the resignation of Ahmed Inaz, whose credibility was compromised when MDP activists found him in covert conference with Mulaku MP Abdulla Yameen of opposition Progressive Party of Maldives (PPM) in a non-residential poorly-lit area of Male’ at 12am.

Inaz was subsequently taken to MDP headquarters, where activists demanded his resignation. He resigned two days later along with the State Minister of Finance Ahmed Naseer.

Directly following the encounter MDP activists suggested that Yameen was attempting to bribe Inaz, while others believed it was a set-up.

In June 2010, Yameen was arrested on charges of bribery and attempting to topple the government. The Supreme Court however ordered his release.

Prior to the presentation of the Letter of Appointment, Mohamed Shihab took the oath of office of the members of the Cabinet before the Supreme Court Judge Abdulla Areef.

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Two injured in fire incident at sea

An engine caught on fire on a boat en route to Kulhudhufushi from Male’ at about 5pm today, injuring two passengers.

Local media outlets reports that the fire broke out aboard the ‘Raalhu’ vessel near Aarah in Male’ atoll. There were reportedly 175 passengers on board at the time.

According to the Maldives National Defence Force, an 80 year-old man broke his leg while a woman suffered minor burns.

The fire was put out at about 6.21pm and the boat was towed into the Male’ harbour around 6.30pm.

All passengers were evacuated and brought back to Male’ at 6.15pm.

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Man sentenced twice for same offence sues for Rf10 million in damages

A man sentenced by two different courts for the same offence has sued for damages in excess of Rf10 million, reports Haveeru.

Ali Shareef, of Laamu Gan Iruvai, was first sentenced by the island magistrate court for participating in an unlawful assembly in 2004 and fined Rf75.

However in 2007, Shareef was brought before the Criminal Court in Male’ on the same charge and sentenced to four months imprisonment.

Shareef served 61 days of the sentence in jail. The High Court has since overturned the Criminal Court verdict, which prompted Shareef to sue for Rf10.8 million in compensation for unlawful detention.

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Police suspect arson in Thimarafushi fire

Police have revealed that they suspect arson in a fire that broke out in a private residence in the island of Thimarafushi in Thaa atoll last night.

Sun Online reports a police media official as saying there was evidence of an attempted break-in before the incident occurred.

The fire was put out an hour later but had caused extensive damage to furniture and equipment in the house. No one was injured in the incident as the house was newly-built and uninhabited.

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Former Post Limited MD faces corruption charges

The Anti-Corruption Commission (ACC) has requested the Prosecutor General’s Office (PGO) to prosecute former Managing Director of the Maldives Post Limited (MPL), Mahudy Imad, for alleged abuse of authority.

In a press statement today, the ACC said it forwarded the case to the PGO on December 28 after completing an investigation into a complaint accusing Mahudy of using his influence to send an employee overseas for a law degree.

The complainant had alleged that funds were not allocated in the MPL budget for the course and that other employees were not invited to apply for it.

In its inquiry, the ACC found that Mahudy had abuse his authority to secure the course for the employee, who had reportedly been working at MPL as an administrative staff for less than a year before leaving to Malaysia for the course.

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