PPM’s Abdulla Yameen takes up parliament minority leader role

Progressive Party of Maldives (PPM) Parliamentary Group Leader Abdulla Yameen has been confirmed as the minority leader of the People’s Majlis this morning by Speaker Abdulla Shahid, local media has reported.

With the PPM now recognised an an official party in parliament following the election of MP Ahmed Shareef to the Thimarafushi constituency last week, the former opposition party now holds the second highest number of MPs in the Majlis.  The PPM presently has 17 MPs, placing it behind only the Maldivian Democratic Party (MDP) in terms of the size of its parliamentary representation.

The majority leader within the Majlis remains the MDP Parliamentary Group chief Ibrahim ‘Ibu’ Solih.

In discussing the new formation of parliament, Speaker Shahid confirmed that the MDP presently holds 32 MPs in the Majlis chamber, while PPM holds 17 elected representatives, according to Haveeru. The Dhivehi Rayyithunge Party (DRP), which formerly held the minority leadership position, presently holds 15 MPs and the Jumhoory Party (JP) has three elected parliamentary members. The People’s Alliance (PA) has two MPs and the Dhivehi Qaumee Party (DQP) presently has a single elected representative in the Majlis.

Speaking in the Majlis today, Abdulla Shahid also confirmed that seven MPs currently stood as independents.

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Maldives, India and Sri Lanka conduct joint naval exercises

The Maldives, India, and Sri Lanka are to hold joint naval exercises over the next five days, according to the official website of the Sri Lankan Navy. The exercises, labelled “DOSTI – XI”, will be carried out in Maldivian waters.

The operations are being caried out with the aim of “strengthening bonds of friendship and enhancing mutual operational capability and cooperation. The exercise will focus on Maritime Search and Rescue, Marine Pollution Response and Boarding Operations,” the website says.

“Due to its geo-strategic significance, it is important for the Coast Guards of the three friendly countries to ensure the safety and security of the Indian Ocean for all sea-farers. The mutually beneficial exercise, therefore, will pay the way for launching coordinated efforts in times of crisis,” the site continues.

Maldives’ Defence Minister Mohamed Nazim visited India at the start of this month to discuss opportunities for greater military cooperation between the two South Asian nations.

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Maldives outlines maritime threats, solutions: DefenceWeb

The Maldives is facing a growing number of maritime threats, including piracy, illegal fishing, human-trafficking, drug-smuggling and gun-running. However, the archipelago is developing its ability to protect against any threat that may reach its shores, DefenceWeb reports.

To this end it has established joint maritime patrols with India and is setting up a coastal radar system and information-sharing network.

In a paper released during the Indian Ocean Naval Symposium (IONS) in Cape Town last week, the Maldives National Defence Force (MNDF) detailed the threats, challenges and responses to the issue of maritime security.  Due to its location in the Indian Ocean, the 1 190-island nation functions as a natural barrier between maritime traffic transiting through strategic gateways into the Indian Ocean such as the Malacca Straits, Strait of Hormuz and Bab-el Mandeb.

As a result, the Maldives faces a number of transnational criminal and piracy threats, including human-trafficking, drug-smuggling and gun-running.

Although drug-smuggling routes have been known to cross the Maldives for many years, extensive crimes mentioned above are not exclusively known to target the nation. However, the Maldives has experienced an influx of skiffs floating into its waters since December 2009. Today there are 40 suspected Somali nationals in the Maldives waiting to be extradited back, according to the IONS document.

The Maldives is also feeling the shift in piracy operations within its Exclusive Economic Zone (EEZ). In May and November of 2010 two merchant ships encountered pirates within the Maldivian EEZ – one was attacked and the other chased by pirates.

Recently, on March 26, 2012, a Bolivian flagged bulk-carrier, the MV Eglantine was hijacked inside the EEZ. To date no Maldivian vessels has been approached suspiciously nor been affected by piracy directly.
Apart from security threats, the Maldives also faces pollution and illegal fishing problems, which is of concern as it dependent on its natural beauty and resources to generate economic growth.

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Fatal motorbike crash on Kulhudhufushi leaves one dead

A 21 year-old man was killed and an 18 year-old man was critically injured after a motorbike crash on the island of Kulhudhufushi island last night.

The motorbike crashed into a wall last night at about 3:55am in the morning, according to police.

Police identified the 21 year-old man as Ahmed Ibrahim and the injured man as Adam Sinah. Both are islanders from Kulhudhufushi.

Sinah is currently in Kulhudhufushi Regional Hospital’s ICU receiving treatment. Islanders prepared Ibrahim’s body to be laid to rest this afternoon after Asr Prayers, according to the Island Council.

According to a statement issued by police, the pair both suffered head wounds in the crash, and both bled from their nose and ears.

Upon receiving the reports, police officers attended the scene and found one victim’s body under the motorbike while the other person’s body was lying 14 feet away from the bike, said police in the statement.

Police said that both were unconscious when police arrived and  were immediately taken to Kulhudhufishu Regional Hospital, where Ibrahim was pronounced dead.

Police Sub-Inspector Hassan Haneef said police cannot disclose further information as the investigation continues.

Council Member of Kulhudhufushi Ibrahim Rameez told Minivan News that the accident occurred before 3:30am early in the morning.

‘’We do not know what they were up to but the accident occurred near the house of one person involved in the accident and it could be believed that they were on their way to his home,’’ Rameez said.

‘’The motorbike crashed into the outer wall of a house and there are signs where the bike hit,’’ he said, adding that the wall was not damaged.

Rameez said the council was informed about the incident at dawn.

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President makes Dhivehi book fair visit for Writer’s Day

President Dr Mohamed Waheed Hassan yesterday attended the 2012 Writer’s Book Fair, an event organised by the recently established Dhivehi Language Academy.

The president attended the event, which started last Wednesday (April 18), during its final day.

As part of his visit, which was scheduled to coincide with Writers’ Day, Dr Waheed spoke with participants about the books available for sale at the fair, the President’s Office has said.

The academy was inaugurated back in August last year in an attempt to to promote, preserve and study the origins and usage of the Dhivehi language .

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Malé power cuts to continue till May 8: “Just no other option”, says STELCO

Scheduled power cuts in Malé are likely to continue till May 8 as the State Electric Company Ltd (STELCO) struggles to meet increased demand for electricity during the hottest month of the year.

Speaking to Minivan News, STELCO spokesperson Ibrahim Rauf said the company is only able to generate 35 megawatts of electricity per day at present, and faces a shortage of  2.5 megawatts.

The shortage is due to a delay in completing the fourth power project which will add two generators, each capable of producing eight megawatts of electricity, to the company’s functioning 17 generators.

The fourth power project was scheduled to be completed by December 2011, but will now be completed in May and generators will be running by May 8, Rauf said.

Hospitals and government offices will not face power outages, he added.

Meanwhile, Environment Minister Dr Mohamed Muiz has ordered all government offices to keep air conditioning at 25 degrees centigrade in order to reduce overloading STELCO, local media reported. The move could save one megawatt of electricity, an amount that can serve 300 households per day.

“We have to cut electricity because there’s just no other option,” Rauf told Minivan News. Malé has faced almost daily power outages throughout April.

Power interruptions would only last for an hour he said, adding that households can check when their buildings were likely to face outages on STELCO’s website.

“If households and businesses spread out use of electricity, for example, by doing ironing or operating heavy machinery at night or during weekends instead of during peak hours, the demand for electricity will decrease. Then we can reduce the frequency of power outages,” Rauf said.

He identified peak hours to be from 10:00am to 12:00pm, and from 1:30pm to 2:30 pm. Only Malé has been affected. The city’s suburbs Villingili and Hulhumalé and industrial island of Thilafushi will not be affected, Rauf said.

Lack of rain and increased temperatures in April also bring severe water crises annually to many islands in the Maldives. Maldives National Defense Forces (MNDF) have previously said over 60 islands have reported water shortages. MNDF is now providing desalinated water to these islands.

Telecomm provider Dhiraagu’s internet services were also interrupted this weekend due to damage sustained to an underwater submarine cable.

STELCO is a state company which provides electricity to 50 percent of the population. The company owns 23 powerhouses in 23 islands.

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Covering Kaashidhoo’s ‘buy-election’

When I arrived on Kaashidhoo Island on the evening of Friday April 13, the constituency’s parliamentary by-election campaign was already going full swing.

A billboard of Jumhooree Party (JP) candidate Abdulla Jabir, as tall as the island’s coconut palms, dominated the harbor front. Numerous red flags in support of Jabir and yellow flags in support of Maldivian Democratic Party’s (MDP) Ahmed ‘Dhonbiley’ Haleem were strung from every harbor light, tree and café on the beach. The island rang with the cacophony of campaign music and speeches.

The crescent shaped island of Kaashidhoo lies 88 kilometers north of Malé city. Densely forested, it is home to a population of 1700 people, most of them farmers. Together with Gaafaru Island to the south, Kaashidhoo Island comprises one of the 77 parliamentary constituencies in the country. Its previous MP, Ismail Abdul Hameed, was removed from his seat in February 2012 after being found guilty of corruption.

My colleague Daniel Bosley and I had come to observe the by-election, scheduled for the following day, April 14.

During our two day visit to Kaashidhoo, we gathered testimonies from islanders which revealed a culture of extensive vote-buying. Instead of winning votes on the strength of their legislative agendas, islanders told us both candidates handed out cash, often in the form of investment in local businesses and financial assistance for medical expenses.

We had hitched a ride to Kaashidhoo with Dhonbiley’s campaign team. The speed boat was full of burly young men who said they were Dhonbiley’s security.

“The situation is pretty bad,” a curly-haired man had told us. He estimated there were more than 30 policemen on the island for the vote. The night before, a fight had broken out between Jabir and Dhonbiley’s supporters, leading to one man’s arrest.

The by-election was the first poll since the controversial transfer of power on February 7. The MDP alleged President Mohamed Nasheed had been deposed in a coup d’état, and had called for fresh elections.

New President Dr Mohamed Waheed Hassan’s administration meanwhile maintained that the country’s institutions, including the elections commission, were not ready to hold free and fair elections. Hence for many, the by-election was a test of the country’s capacity to hold peaceful polls.

Our contact on Kaashidhoo was 18 year-old Ahmed Fazeel*, a student living in Male’, who greeted us when we arrived. He told us we would have to wait for accommodation as the island’s guest-houses and rented rooms were full for the night.

Resort workers and islanders living in Male’ had come back to Kaashidhoo for the vote. Fazeel said more than eight speedboats had ferried people from Male’ to Kaashidhoo that day alone. As we sat in Fazeel’s front yard among stone-apple and mango trees, he told us tensions were high on the island.

“There’s a lot of conflict. Political competitiveness has become extreme to the point people are at each other’s throats,” Fazeel said. “I will vote for Dhonbiley because he gave my aunt medical assistance.” His aunt has a common blood disorder in the Maldives, Thalassemia.

In the distance we saw JP leader and business tycoon Gasim Ibrahim leading a march of men, women and children clothed in red, chanting slogans in support of Jabir. Gasim and Jabir had laid the foundation for a city hotel to be built on the island.

Local media had reported the hotel was a Rf 34 million (US$2.2 million) investment. Jabir pledged the hotel would be completed within 18 months and that a Kaashidhoo-based company would manage the hotel. He had also established a state-of-the-art football pitch on Gaafaru Island on April 9.

“We cannot trust Jabir, he has laid many foundations like that, in his previous constituency as well,” Fazeel’s uncle Mohamed Saleem* told us. Smoking a cigarette, he said he had initially supported Jabir. The MDP had fronted Jabir as a candidate until he swapped parties after the transfer of power.

“Jabir only donated six-air conditioning units to the mosque. But Dhonbiley donated over Rf 100,000 (US$6500) rufiya,” Saleem continued. “Also, Jabir first said he will build a resort, then said a 5-star luxury hotel, and now it’s simply a guesthouse.”

That night we met Mohamed Shahid* an MDP supporter, in a dimly-lit cafe for dinner. A TV on the cafe wall showed scenes of yellow-clad MDP supporters marching in support of Dhinbiley through the narrow streets of Kaashidhoo.

Shahid, 21, made a living from diving for sea-cucumbers. For him, the biggest problem the island faced was a lack of job opportunities.

“The people of this island will vote for money, they don’t have any principles,” Shahid said. “The problem is that people want to force you to vote for who they support. Everyone should have the right to vote for whoever they want,” he told us. “Arguments within families have gone to the point that people are losing face.”

“Both parties are handing out cash, in the guise of extending assistance for medical care. Some people even use the money for drugs.” Shahid said.

He said heroin addiction rate was high among Kaashidhoo’s youth population.

Shahid said he had at first supported Jabir. “But Jabir does not fulfill his promises. He first approached the youth cub, Ekuverige Tharika, and gave the club Rf 20,000 (US$1300). Nothing else. But Dhonbiley gives us coffee, petrol for motorbikes and phone credit. It’s very easy. Even the island’s harbor was started under President Mohamed Nasheed,” he said.

The harbor had been damaged in the South Asian tsunami of 2004, and construction of a new harbor had started in 2012.

After dinner, we ventured out through the sandy streets of the island. Candidates had to cease campaigning for votes by 6:00pm on the eve of polling; hence, the island was fairly quiet. However, people continued to mill around the campaign offices.

Outside Jabir’s brightly lit campaign office, we met Mariyam Sheeza* , 31, who told us she supported Jabir because he had promised to bring development to Kaashidhoo.

“Jabir is building a guesthouse. We only have agriculture on the island. But this hotel will create jobs, especially for women,” she said. Sheeza said she had four children to support and the guesthouse would give her the opportunity to earn some money.

“Dhonbiley does not check on the people. He does not know if the people have a second meal in a day or whether we sleep on the floor or on mattresses,” she said. Moreover, she said Dhonbiley only worked for MDP supporters’ benefit.

“When MDP was in power, 388 farmers asked for subsidies, but Dhonbiley gave subsidies to only 150 farmers. The subsidies were only given to MDP supporters. We don’t know what happened to more than Rf 22,000,” she said.

“Dhonbiley ate the subsidies,” shouted a group of men lounging on joalis within the campaign office. At that point, a lanky man came up to us and said JP leader Gasim Ibrahim had invited us in. As we walked in, he showed me a large bloody graze on his arm. He had sustained the injury in the previous night’s scuffle. “MDP paid Rf 2000 (US$130) to some young man to beat me up,” he told me.

Gasim, a hefty bespectacled man and one of the country’s wealthiest resort tycoons, was sitting with a group of men at a broad white table under a white canvas canopy strung with red and green flags. Women served juice, eggs dyed red and sausages to supporters. Gasim said he was confident of Jabir’s win the next day.

“Jabir has already performed in Majlis. He was an MP during the formulation of the constitution. He is successful and courageous. He came with a manifesto to the people to create job opportunities and development,” he told me.

“Dhonbiley has failed in everything in his life, even running a business. People do not accept MDP anymore. They are not religious. They want to destroy this country’s Islamic social-fabric,” he said.

Gasim had been involved in the MDP’s formation, but after being jailed in 2004 he had defected to President Maumoon Abdul Gayoom’s party, and took up the position of Gayoom’s finance minister. He ran for presidency in 2008, and supported Nasheed against Gayoom in the second round of elections after no candidate managed to garner more than 50 percent of the votes.

He had served as Nasheed’s home minister for 20 days but quit, criticising Nasheed for being authoritarian.

“They are irreligious. Maldivian citizens do not support that. They cannot build idols here. Nasheed was in power by spending a lot of money, and by coercing and intimidating people. The people appreciate what we are doing for them. We know the people’s needs. We know this island needs agriculture, the other one needs fisheries, and what the youth want,” he told us. He predicted Jabir would win with over 80 percent of the votes.

Voting day arrived on Kaashidhoo with a brief but heavy rain storm. We saw Jabir, a short dark man, pass by in a car. He waved hello to us as we sought shelter under a broad Hirundhu tree on the harbor front. Daniel and I were looking for a cafe for breakfast when the storm had hit. We also saw a white van with four police officers passing by. When the rain thinned, we headed to an open air cafe near MDP’s main campaign office for breakfast.

We sat down near a group of three boys heckling a mute man to vote for MDP. A short-haired white-shirted boy said, “Jabir is a dog! What has he ever done for you?” Another threatened, “We buy coffee for you, we buy cigarettes for you. We will cut you off if you don’t vote for MDP.”

A few minutes later, Dhonbiley walked in for breakfast with MP Ahmed Easa and a group of his supporters.

“The problem is the current government came to power through a coup,” the tall former football star told us. “They want to delay early elections. They want to try and show the international community the atmosphere is not right. Tension is high. Jabir’s supporters have sprayed graffiti calling me a bastard.”

He pointed to graffiti on the building next to the cafe. The words had been sprayed over. I recalled a banner I had seen the night before that proclaimed Dhonbiley had been banished for fornication.

“My supporters have reached the limit of their patience, but I have told them to keep calm,” he told us, and said he was confident of a win that day. He also claimed Gasim had walked through the island the night before handing out Rf 4000 (US$260) for votes.

After Dhonbiley left, we overheard the boys at the next table on the phone, requesting their breakfast be put on the MDP’s bill.

The rain left shallow puddles on the sandy street that quickly disappeared in the sweltering heat. Daniel and I arrived at the polling station at around 9am. Two booths had been set up at the Kaashidhoo School and voters queued peacefully under the shade of a tree in the school yard. Two policemen sat a few meters away from the voters.

Outside, both candidates had set up exit poll booths under wide parasols, and were crossing off people who had voted. The booths were also serving drinks to supporters.

Outside the polling booths we met Aisha Mohamed*, a skinny scarf-clad girl with a mole on her cheek, wielding a large Nikon camera. Aisha, 24, was a photographer, and supported the MDP. Her dream was to open a photography studio on Kaashidhoo.

“People have to go to Male’ to take passport photos for ID cards and passports. So we asked Jabir to invest in lighting equipment and he offered a partnership,” Aisha said.

“But when he changed parties, I did not want to vote for him. I cannot change my party like I change my clothes. So the investment fell through,” she said.

Aisha took us to a juice shop near the school, which served the popular Jugo juice, a cold fruity-flavored, sugary sweet milk-blend. The shop’s owner, Amjad* offered us free drinks and said he was serving free drinks to MDP supporters. When I asked him why, he said that Dhonbiley had invested in a deep freezer for the shop.

By midday, most of the island’s registered voters had cast their ballots. The streets were calm, an atmosphere of expectancy prevailed throughout the island. The police presence was palpable. Aisha, Daniel and I saw Jabir standing in view of the school near the island’s health centre. He said he was confident of a win but declined to comment further. Outside the health centre, Aisha introduced us to her eldest brother Ahmed Azeez*, 53, a JP supporter.

Azeez worked as a laborer at the health centre. He earned Rf 3000 (US$195) per month.

“I support Jabir because he gave my daughter return tickets to India for a medical trip and Rf 10,000 (US$650) for expenses. Since she was 11 years-old, she has had lesions on her skin. She is 24 now, and she has two children. We still haven’t found a cure,” he said. He also said he hadn’t been able to gain any assistance from the government’s free health-care scheme Aasandha.

Later Aisha told me when Jabir had been the MDP candidate she had contacted Jabir for the medical assistance.

“I asked my brother to vote for Dhonbiley. But he refused. But we could have gotten that assistance from Dhonbiley too,” she said.

* Names changed

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Budget deficit “substantially” underestimated while spending still unaddressed: IMF

The Maldives has “substantially understated” its budget deficit, the International Monetary Fund (IMF) has warned, by underestimating its spending and “probably” overestimating tax revenues.

“Moreover, not all of the financing for even the approved budget has been identified, and additional risks exist as well – including the need to clear reported unpaid bills carried over from 2011 and the possible loss of lease extension payments (Rf 700 million, or US$42.4 million) assumed in the budget,” the IMF’s mission chief for Maldives, Jonathan Dunn, told Minivan News.

While the 2012 budget put the deficit at less than 10 percent of GDP, “the IMF team sees the figure as more likely to be 17.5 percent of GDP, and perhaps larger than this,” Dunn said.

“The financing gap for 2012 is thus at least 7.5 percent of GDP, or about US$160 million, and possibly substantially larger than this,” he added.

As a result, economic growth and stability in the Maldives were unlikely to be maintained “in the medium term” unless the government substantially cuts spending.

Meanwhile, government revenue for the first quarter of 2012 has fallen 15.5 percent below projections, the Maldives Inland Revenue Authority (MIRA) has reported.

Revenue from tourism land rents fell 18.6 percent on the previous quarter, however the largest contributor to the drop were the new government’s changes to resort lease extension payments, which saw a 76.1 percent drop in revenue below projected figures.

Inflation meanwhile spiked 13.4 percent in February, with the price of food increasing 28 percent.

Government revenues for the quarter has nevertheless increased 76.2 percent compared to the same period in 2011, “mainly because of the significant increase in Business Profit Tax (BPT) and Goods and Services Tax (GST) collections”, MIRA noted: Rf 361.7 million (US$23.4 million) and Rf 721.9 million (US$46.8 million) respectively.

However, Dunn warned that revenue collection by MIRA “does not provide a full picture of total revenue performance in the country.”

“Revenue from import duties – previously the single largest revenue – collected by Customs and is not reported by MIRA. Due to implementation of the 9th Amendment to the Maldives Export Import Act, revenue collection from import duties is expected to decline substantially in 2012, fully offsetting the increase in tax revenues from GST and BPT.”

Solutions?

Dunn observed that printing money would only facilitate the much-larger-than-expected 2012 fiscal deficit.

“This, in turn, would imply that national imports would be substantially larger than expected, because in the Maldives, where most goods are imported, almost any spending by either the government or the private sector turns, directly or indirectly, into import demand,” he noted.

As a result, the imbalance between the demand for dollars and the supply would become even larger, “and the MMA would likely have to supply dollars from its own reserves to meet the shortfall.”

“Usable reserves at the MMA are low, so if the fiscal gap this year is financed via money creation, it is likely that the MMA’s usable reserves would soon dry up,” he said.

Another option, Dunn suggested, was for the Maldives to borrow more money. However borrowing from domestic sources “will be difficult to achieve, as it is unclear whether the banks have much more appetite for buying treasury bills.”

Obtaining foreign grants “would be helpful but is probably not realistic.” Foreign loans, meanwhile, “would have to be considered carefully, given that Maldives already has a very high debt-GDP ratio, but they may be needed in the short run to avoid the consequences of printing money.”

Dunn emphasised that the only sustainable solution was for relevant parties to rationalise the budget by boosting revenues and cutting expenditure, despite the political difficulties.

“These may be politically difficult measures, but the consequences of not reducing the budget deficit are likely to be even more difficult,” he warned.

Furthermore, ongoing dollar shortage would not be resolved while the Maldives continued to substantially increase spending, Dunn added.

The foreign currency crisis – the bane of many of the country’s importers, who are forced to use unofficial channels outside the banking system to obtain currency necessary to purchase overseas – was exacerbated by the number of unrestricted foreign exchange licenses issued to resorts and other private businesses, “without the requirement that they hold substantial capital to back up that business.”

This practice allowed such nonfinancial businesses to conduct large-value foreign exchange operations outside the banking system, “an unusual arrangement and sustains the parallel foreign exchange market,” Dunn noted.

“In a more typical situation, nonfinancial businesses [such as resorts] would have licenses only for the exchange of small-value cash transactions and would be required to channel large-value foreign exchange transactions through the banking system. In the case of Maldives, this would substantially increase liquidity in the official foreign exchange market,” he suggested.

However, “as long as the government continues to inject substantial amounts of new spending into the economy, the foreign exchange situation in the country will not be resolved.”

Growing expenditure

Dunn emphasised that “fiscal imbalances in the Maldives have been present for many years and that fiscal adjustment remains necessary”.

Faced with increasing pressure from the IMF to lower expenditure after failed attempts in 2010 to cut the salaries of civil servants – a maneuver blocked by the Civil Services Commission (CSC) and backed the then opposition – former President Mohamed Nasheed’s administration insisted that increased revenue from the new taxes would match expenditure, and boasted that the 2012 budget was the first in many years to balance income and expenditure.

Following the police mutiny and controversial change of government in what the MDP contends was a coup d’état, spending by President Dr Mohamed Waheed’s administration has escalated as it seeks to shore up support in a fractious political environment.

Newly-announced expenditure in the last few months includes:

  • The promotion of 1000 police officers – approximately a third of the force – and plans to both recruit 200 new officers in 2012 and appoint four new Assistant Commissioners;
  • Lump sum payment of two years of allowances to military personnel;
  • An unspecified amount for an international public relations firm, to combat negative publicity and “rally an alliance of support” in the international media following the controversial change of power and coverage of police crackdowns;
  • Rf 100 million (US$6.5 million) in fishing subsidies;
  • A proposal to create two new ministries, including the Ministry of Gender, Family and Human Rights, and the Ministry of Environment and Energy;
  • The reimbursement of Rf 443.7 million (US$28.8 million) in civil servant salaries from July 1, following cuts by Nasheed’s administration in 2010. In addition, civil servant working hours have been reduced to 8am-3pm;
  • The doubling of the budget for the Maldives Marketing and Public Relations Corporation (MMPRC) to US$S4.5 million.

Lost income has also increased, with MIRA warning in March of unrealised revenue from the new government’s recent decision to accept resort island’s lease extension payments in installments, an amendment that former Tourism Minister Dr Mariyam Zulfa contends was pushed through by several local resort owners with vested interests, that immediately cost the treasury US$135 million.

In March, MIRA anticipated receiving a total of Rf375 million (US$ 24 million) for lease extensions, however the income received dropped to Rf23 million (US$1.5 million) as a result of the decision.

Meanwhile today the publicly-owned State Trading Organisation (STO) dropped legal attempts to reclaim a US$1.2 million debt owed by the Meridian Services owned by MP Abdulla Riyaz of the new ruling coalition. The STO justified the decision in a letter to the court, by stating that it did not have enough board members to meet quorum and make decisions.

In a bid to address spiralling costs, the government is reviewing the Aasandha universal health scheme introduced by Nasheed’s administration on January 1 this year, which “is and will always be completely financially unsustainable in a country such as the Maldives”, according to President Waheed’s Special Advisor, Dr Hassan Saeed, in an article for newspaper Haveeru.

“The introduction of unrestricted, universal free healthcare with no agreed regulation or management was an act of folly, recklessness and irresponsible political immaturity that rivals any of the actions of Mr Nasheed’s administration,” Dr Saeed contended.

“And what’s more he knew this but still went ahead with it. And the consequence is that we now have the IMF breathing down our necks and a budget deficit that threatens to derail all government social programmes,” Dr Saeed wrote.

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Housing Ministry accuses MCC of misleading the public in Huravee and Dharubaaruge dispute

The Housing Ministry has accused Male’ City Council (MCC) of misleading the public in laying the blame for potential service disruption following last week’s disputes solely at its door, according to Sun Online.

Last week the MCC was informed by the Housing Ministry that it’s Dharubaaruge staff were to be transferred to the ministry and a day later, that it had to vacate some of its offices in the Huravee building to make way for new government departments.

Following the latter incident, the MCC held a press conference in which it said: “These services [provided at the Huravee site] will be obstructed because of the Housing Ministry’s actions”.

The Housing Ministry rejected the claims made by the MCC that its actions were disrupting the Council’s provision of services.

“Following our request to vacate these premises, City Council told the media that this ministry obstructs public services provided by City Council – which is a purposeful attempt to mislead the public on this issue,” a Ministry statement is reported to have argued.

The Ministry is also reported to have said, “[We] made the request from City Council on two occasions, to hold discussions on the arrangements to be made following the transfer of employees [from Dharubaaruge] to this ministry, but [were] not met with a reasonable response from City Council.”

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