Day: August 1, 2012

GMR presents government with US$1.5 million bill for Q2, as ADC dispute sent for arbitration

An ongoing dispute between Ibrahim Nasir International Airport (INIA) developer GMR and the incumbent Maldivian government concerning a US$25 Airport Development Charge (ADC) has been referred to a court of arbitration in Singapore.

The government-owned Maldives Airports Company Limited (MACL) faces a US$1.5 million shortfall in concession fees owed to the airport developer for the second quarter of 2012; the legacy of an opposition-sponsored Civil Court case in late 2011 that scuttled the airport’s ability to charge the ADC as stipulated in its concession agreement.

GMR signed a 25 year concession agreement with former President Mohamed Nasheed’s government to upgrade and manage Ibrahim Nasir International Airport (INIA). Under the concession agreement, a US$25 Airport Development Charge (ADC) was to be levied on all outgoing passengers to part-fund the US$400 million development – the country’s single largest private investment.

However, while in opposition, the Dhivehi Qaumee Party (DQP), led by Dr Hassan Saeed, now President Dr Mohamed Waheed’s special advisor, and Dr Mohamed Jameel, now Home Minister, filed a successful case in the Civil Court in December 2011 blocking payment of the ADC on the grounds that it was effectively a tax not approved by parliament.

Nasheed’s government as a stopgap measure agreed to deduct the ADC from the concession fees payable by GMR, while it sought to appeal to verdict.

As a result, Dr Waheed’s government received only US$525,355 from the airport for the first quarter of 2012, compared to the US$8.7 million it was expecting, at time the country is facing a crippling budget deficit, a foreign currency shortage, plummeting investor confidence, spiraling expenditure, and a drop off in foreign aid.

According to financial statements sent to MACL and released to local media, in the second quarter of 2012, GMR deducted the ADC revenue of US$7.1 million from total revenues of US$5.6 million, leaving the government with a bill for US$1.5 million.

Managing Director of MACL Mohamed Ibrahim told local newspaper Haveeru that the government would not pay the amount, alleging that GMR’s deduction of the ADC from the revenue was illegal.

In its defence, MACL has said that its board of directors had been reformed with the arrival of the new government, and a decision made to annul the old board’s agreement to deduct the ADC revenue.

The government meanwhile sought to invalidate the GMR contract – and the clause invoking arbitration – by challenging the handling of the bidding process by the International Finance Corporation (IFC), a member of the World Bank group and the largest global institution focused on private development sector in developing countries.

“The advisory work was supported by AusAid (Australia), the Ministry of Foreign Affairs of the Netherlands, and DevCo. DevCo is a multi-donor program affiliated with the Private Infrastructure Development Group and funded by the UK’s Department for International Development, the Ministry of Foreign Affairs of the Netherlands, the Swedish International Development Agency, and the Austrian Development Agency,” the IFC explained, following a visit by the delegation in June to address the government’s concerns.

Following the first quarter deduction, GMR announced an employee benefits scheme converting 50 percent of employee salaries to US dollars from July onwards, and a one-percent profit-share.

Around the same time, the company sought to compromise with government by offering to exempt Maldivian citizens from paying the ADC. However, the Transport Ministry continued to demand that the infrastructure giant repay the US$8.2 million deducted.

Several pro-government parties – including the Dhivehi Rayithunge Party (DRP), Dhivehi Qaumee Party (DQP), People’s Alliance (PA) and Jumhoree Party (JP) – meanwhile advised President Waheed that they continued to endorse an agreement signed in June 2010 calling for the airport to be taken back from GMR and nationalised.

The relationship between the airport developer and the government soured further last week after the government temporarily called for a halt to work on the new airport terminal, alleging it had “violated rules and regulations” by not acquiring certain permissions from the Civil Aviation Authority.

“When the government decides that a project be stopped, we will make sure this happens,” President’s Office Spokesperson Abbas Adil Riza previously told Minivan News. “GMR have not discussed the construction with relevant authorities.”

Following the second quarter deduction, the airport developer declined to comment, as the matter “has been referred for arbitration by the parties.”

“GMR Male’ International Airport Pvt Ltd has made the said adjustment as per the concession agreement,” a spokesperson said.

The concession agreement includes an option for the government to buy out the contract from the developer, however the cost is likely to reach upwards of several hundred million dollars.

President’s Office Spokespersons Abbas Adil Riza and Masood Imad had not responded at time of press.

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Word Federation of Trade Unions (WFTU) expresses concern over MPL’s “attack” on ports workers

The World Federation of Trade Unions (WFTU) has expressed concern over reports of government owned Maldives Ports Ltd’s (MPL) “infringement of trade union rights and freedoms,” and has called on President Mohamed Waheed Hassan to immediately terminate its “attack” on members and the leadership of the Maldives Ports Workers Union (MPWU).

In a letter on July 23, WFTU General Secretary George Mavikos said the organisation was “deeply concerned” over MPL rights violations.

These included the dismissal of six members of the MPWU, suspension of 49 of its members, reassignment of many ports workers to other ports on different islands and verbal warnings to 27 works and the threats and harassment against the President of MPWU Ibrahim Khaleel.

Khaleel had previously told Minivan News the government company mainly targeted employees who supported the ousted Maldivian Democratic Party (MDP).

“They send people with cameras to MDP protests to check which MPL employees take part in the protests,” he said.

Mavikos urged President Waheed “for the immediate termination of this attack against the members and the leadership of the Maldives Ports Workers Union, the reinstatement of the dismissed and suspended workers, the reassignment of the workers in their original working place as well as the termination of the threats against the President of the Union.”

The WFTU is the oldest international trade union organisation with 82 million members in 120 countries, and “struggles against capitalism and imperialism for a society without exploitation of man by man.”

It is also the founder of the International Labor Organisation (ILO). The Maldives became a member of the ILO in May 2009.

The MPWU on July 12 had accused MPL of violating employee rights, alleging the state-owned company had unfairly dismissed six employees due to their political activism.

In his letter to MPL CEO Mahdi Imad, Khaleel said: “Although the constitution guarantees freedom of expression and freedom of assembly, it is now common within MPL to stop employees from expressing certain political views, and violate the Employment Act by unfairly dismissing employees and transferring employees to different departments without prior warning or explanation of any offense committed.”

MPL must “respect an employee’s right to exercise freedoms granted in the constitution and by participating in political activities in his or her free time” and must withdraw blocks on “social media including facebook, twitter and gmail,” Khaleel added

In response, Imad in a letter on July 16 accused the MPWU of dividing employees and promoting the interests of a certain political party and threatened to take action against the union.

“We have received reports that the union is attempting to divide employees and promote the interests of a certain political party. Hence, I order and advice you not to do so. If this happens in the future, we will have to take action against you,” he said.

Further, access to social-networking sites had been blocked because they “often propagate un-Islamic, sinful activities and propagate the interests of Jews,” Imad said.

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Canadian government’s statement “misleading”, “one-sided”: Maldives Foreign Ministry

The Maldivian government has expressed “disappointment” over a “misleading” statement by the Canadian Foreign Ministry, which accused it of threatening to arrest its political opponents with a view to eliminating former President Mohamed Nasheed’s candidacy in an upcoming election.

Canadian Foreign Minister John Baird, a member of the Commonwealth Ministerial Action Group (CMAG), issued a statement on July 27, in which he stated “It is clear that the arrests of senior officials of the Nasheed government are politically motivated. Such actions are completely unacceptable and must be reversed.”

“The threats of the present government to arrest its opponents, including former President Nasheed – the only democratically elected president in the last four decades – so as to prevent his candidacy, undermine that government’s credibility and violate its undertakings to the Commonwealth Ministerial Action Group,” Baird said.

“The Maldives has been given the benefit of the doubt by the Commonwealth so far. Continued intimidation, illegal arrests and other authoritarian tactics by the present government may require the Commonwealth to consider a different approach, in our view.”

Canada’s statement preceded a rally by former President Maumoon Abdul Gayoom’s government-aligned Progressive Party of the Maldives (PPM), at which senior party figures blasted the government for not being able to “put down” Nasheed “and his 200 hounds”, and called for the ousted President to be “put in solitary confinement”.

On July 24, former Justice Minister under Gayoom and current Home Minister Dr Mohamed Jameel, described Nasheed, his party and the Raajje TV station as “enemies of the state.”

“We will take action against whoever incites violence against the police, no matter who it is or what kind of position they hold or have held in the past,” Jameel vowed.

Following Nasheed’s resignation under controversial circumstances on February 7, the Criminal Court issued a warrant for Nasheed’s arrest.

Nasheed’s government had detained Chief Judge of the Criminal Court Abdulla Mohamed, accusing him of “taking the entire judicial system in his fist” in order to protect the remnants of Gayoom’s administration from prosecution for corruption and human rights abuses.

The warrant was never acted on by the police, amid tense confrontations outside Nasheed’s residence.

However police this week ordered Nasheed to attend police headquarters on August 2, to answer allegations in a tapped phone conversation that he had request supporters “fight back” against police.

“The Waheed administration is currently demonstrating a clear pattern of abuse of power and tactics aimed at removing President Nasheed from the upcoming Presidential race,” claimed MDP Spokesperson, MP Hamid Abdul Ghafoor, who was himself recently arrested.

“The letter to summon President Nasheed is baseless and fails to state any specific charges. The letter refers indirectly to attacks on police, vandalising of police property and claims that their observations have led them to believe President Nasheed is responsible for such events.

“This summons is an attempt by the Government to thwart the progress of the Commission of National Inquiry and former President Nasheed’s participation in upcoming elections. Furthermore, members of the security forces have openly issued death threats to President Nasheed.

“In the absence of any specific criminal charges, “we are of the opinion that the only safe course of action will be for President Nasheed to provide a written statement without physically entering the police station,” Ghafoor said.

However in its response to the Canadian government, the Maldives’ Foreign Ministry said it “would like to make it very clear to the members of the international community that the government has not arrested, nor has it made any threat of arresting, its political opponents.” the Maldives Foreign Ministry responded.

Instead, the Ministry stated, “it is the prerogative of the Prosecutor General to decide on whom and when to charge an individual of criminal offence.”

“As part of a reform programme launched in 2004, the Maldives adopted a new Constitution with clear separation of powers between the executive, judicial, and legislative branches of government.

“The Constitution also established several new State-bodies, such as the Prosecutor General, and the Human Rights Commission of Maldives. These institutions are fully independent from the Executive branch of the government, and indeed assert their independence.

“Now that these institutions are independent, everyone, including our valuable friends in the international community, should be prepared to accept the decisions of these institutions,” the Ministry said.

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“Administrative issue” behind delayed civil service wage payments: Finance Minister

Finance Minister Abdulla Jihad has said that delays in paying wages to some state employees was the result of an “administrative issue” with the Bank of Maldives (BML) that was expected to be resolved by today.

Jihad told Minivan News that there were no issue maintaining civil servant salaries, adding that BML had been unable to credit accounts for the last few days. A BML spokesperson today responded that the company was “not aware of any such issues” concerning payments being made to accounts it held.

Meanwhile, several island councils have said they had not had any issues with providing wages to their staff.

Economic situation

The Maldives government last week said it was working on overcoming “economic difficulties” to cover several months of outstanding premium payments resulting from the Aasandha universal healthcare programme. Authorities are presently facing a 27 percent budget deficit that has already drawn concern from the International Monetary Fund (IMF).

Besides a crippling budget deficit, the Maldives is also facing a foreign currency shortage, plummeting investor confidence, spiraling expenditure, and a drop off in foreign aid.

Late last month the Finance Ministry also ordered all government institutions to immediately reduce their budgets by 15 percent.

However, Jihad denied that the present economic situation was adversely impacting the state’s ability to provide wages to civil servants this month.

“We are expecting crediting to occur as of today,” he said. “This is just an administrative issue with the bank.”

Both Civil Service Commission (CSC) President Mohamed Fahmy Hassan and Parliamentary Financial Committee Head Ahmed Nazim were not responding time of press.

However, a number of island councils have maintained that they have continued to receive state funding without any interruptions.

An official for the North Ari Atoll island of Maalhos’ Council Secretariat told Minivan News this afternoon that he was not aware of any issues concerning paying staff salaries, which had so far been received on time each month.

In Haa Alifu Atoll, Utheemu Island Councilor Asrar Adam said the council also had not experienced difficulties with paying wages

“We have been paying the salaries of the staffs on the last day of each month always and this month’s salary have been paid,” he said.

Island Councilor of Raa Atoll Innamaadhoo claimed that during the time of former President Mohamed Nasheed, the council was given funding for its 2012 salaries in advance – therefore ensuring it did not have any issues in paying staff.

“When our president was here everything went fine, we don’t have to worry about the salaries of 2012,” he said.

State revenue

The Maldives Inland Revenue Authority (MIRA) last month published its second quarter report for 2012, detailing the majority of government revenue (with the exception of import duties).

The MIRA report highlights a 16.8 percent increase in revenue collected compared to the same period for 2011, attributable to the increase in tourism GST from 3.5 percent in 2011 to 6 percent in 2012.

Tourism land rent collected for the period was MVR 465.4 million (US$30.2 million)  – a drop of 24.9 percent that was 12.3 percent lower than expected.

Airport Service Charge revenue meanwhile fell 18.6 percent, to MVR 172 million (US$11.2 million).

Total revenue collection for the first half of the year was MVR 3.5 billion, an increase of 59.2 percent compared to the corresponding period of 2011, but 8.4 percent lower than projected.

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Raajje TV sue police over decision to “not cooperate” with station

Local TV station Raajje TV has announced that it will file a lawsuit against the Maldives Police Service (MPS) following their decision to not to cooperate with the Maldivian Democratic Party (MDP)-aligned TV station.

In a statement the station claimed that the actions of the police narrowed the constitutional right to freedom of expression and the station’s freedom to practice journalism, and said that the actions of the police were depriving its reporters of their constitutional rights.

The case was filed in the Civil Court, with a request for the court to issue an order to the police to resume their support and cooperation with the TV station, and to hold that its withdrawal was illegitimate.

Civil Court has also confirmed that they have received the case.

Speaking to local media, Deputy CEO of Raajje TV Abdulla Yaamin said that police were discriminating against the station in collusion with other media outlets by inviting them to police press conferences and providing information.

“Due to these reasons we filed a lawsuit to invalidate the police decision. Because of it, our journalists do not get protection from them anymore,” he said.

Raajje TV has also accused police of targeting, assaulting and harrasing its reporters during MDP’s protests.

A statement from Raajje TV on July 10 read: “Raajje TV journalists have been forced to live in fear as they have increasingly become targets of attacks by the national security forces, particularly the police service. The station also believes that these attacks and harassment has been the source of emotional distress and psychological damage to all Raajje TV employees.”

Last week police announced that they had stopped cooperating with Raajje TV, claiming that the opposition-aligned TV station was broadcasting false and slanderous content about police which had undermined their credibility and public confidence.

In a press statement released today, MPS stated that the decision was reached after the station had “deliberately and continuously broadcast false and baseless content with the intention to incite hatred” towards the institution.

“Also, Raajje TV’s broadcasting of false and baseless content about the police institution is seen to be carried out for the political benefit of certain parties and such actions neither fit in with the norms of professional journalism or the principles followed by media outlets of other democratic countries,” read the statement.

Controversial video

The decision from the police comes just a day after Raajje TV broadcasted CCTV video footage of some police officers, who the station alleged were “caught on video” while they were stealing petrol from a motorbike parked in a small road in Male’.

However police denied the allegations and condemned Raajje TV for spreading “false and untrue” information about them.

Superintendent of Police Abdulla Navaz in a press briefing dismissed the claims and said that the video footage was showing the police carrying out their legal duty.

Raajje TV had twisted the details and information in their news report, which Navaz said showed police confiscating a five litre container of petrol from the road.

He also stated that the container was confiscated after police on patrol duty noticed that someone had connected a pipe to steal petrol from a parked motorbike in the road.

“It was decided that we would find the owner of the motor bike and hand over the things that were confiscated. The petrol container is also kept under police observation as evidence,” he said.

Navaz showed the media documents filed during the confiscation.

In the press briefing he expressed concerns over Raajje TV’s “irresponsible” actions and said that the police would file complaints with concerned authorities.

Demand for apology

Following the broadcast of the video, the Maldives Broadcasting Commission (MBC) sent a letter to the TV station stating that it had broadcast the content without checking its authenticity and was therefore ordered to apologise for their actions.

The MBC in the letter stated that following the broadcast of the video, police had denied the allegation and released details of the incident, but said the station had failed to inform the public of their error.

Raajje TV’s Deputy CEO Yaamin responded to the letter stating that the station had no intention of undermining the reputation of the police.

He also stated that the station had broadcast the entire recording of the police press briefing held to deny the allegations, giving them the opportunity to defend themselves from the allegations.

He also stated that police were very unresponsive to the queries of reporters from the station.

“They don’t give a proper response when we call to get a comment for a news piece. Even today, when our reporters went to cover the events where the murdered police officer was brought in Male, they sent us away saying that they cannot give us protection,” he said.

“Enemy of the state”

Following the murder of Lance Corporal Ahmed Haleem two days before, the government of President Mohamed Waheed Hassan alleged that that the TV station was responsible along with opposition Maldivian Democratic Party (MDP) for attacks on police.

In a joint press conference held on the same day, Home Minister Mohamed Jameel and Police Commissioner Abdulla Riyaz said that Raajje TV had spread “baseless allegations” about police brutality and the police role in the controversial change of government on February 7, thereby inciting and encouraging violence against the police and their families.

Jameel described MDP and Raajje TV as “enemies of the state,” while Riyaz said former President Mohamed Nasheed and senior MDP officials were behind the planning of psychological and physical attacks on the police.

“I note that former President Mohamed Nasheed is behind the planning of the attacks and damage caused to police property and repeated physical attacks on police officers,” Riyaz said.

Claiming Raajje TV’s reporting was “not responsible journalism,” Riyaz said that the station had spread baseless allegations regarding police brutality towards protesters and police role in the controversial change of government.

“Raajje TV has repeatedly attempted to defame and raise questions over police professionalism by broadcasting baseless allegations to create distrust towards the police,” he added.

He went on to refute the TV station’s CCTV video footage that suggested police had stolen fuel from parked motor cycles, claiming Raajje TV was attempting to falsely cast the entire police force as “brutal” and as “thieves.”

Raajje TV is one of the five private broadcasters of the country and is the only opposition-aligned TV station the country. The TV station has come under pressure and criticism from the government and political parties aligned to government for its opposition coverage.

The TV station first went on air as “Future TV” in 2008, but started broadcasting as “Raajje TV” in 2011. Its audience increased dramatically following the takeover of the state broadcaster by the police and military on February 7.

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Unrest rising with no reconciliation in sight: Eurasia Review

In the current tense situation prevailing in Male, one would have expected President Waheed to make the initial move towards reconciliation during the national day address last week on the 47th year of independence. It was not to be, writes Dr S Chandrasekharan for the Eurasia Review.

In his speech President Waheed appealed to the people to offer full cooperation to the State’s relentless peace efforts while maintaining high regard for the country’s laws and legislature. While highlighting the need to safeguard the religion, consolidating the military forces and further unifying people, a conciliatory gesture on his part would have gone a long way in defusing the current tensions.

On the other hand his position is seen to have hardened. On 17th July he said that he ( he meant his party) will not participate in the All Party talks while the MDP continues to going back to street protests in Male. Earlier the President’s spokesperson condemned the MDP protests as “acts of terrorism.”

President’s Adviser Dr. Saeed who holds a very important post and who is expected to show some restraint declared very categorically that there is no benefit in continuing the “All Party Talks” and does not believe that Nasheed’s participation would reap any benefit!

Earlier the chairman of the All party talks- Ahmed Mujuthaba announced that 16 previous attempts at talks among the top political leaders had not resulted in any breakthrough! It looks that the talks have been given a decent burial. So much for the Indian initiative!

In the last few days, over 200 protestors have been arrested and this included many MDP MPs and even a former cabinet minister. Many of those released after arrests have been ordered to remain indoors in the evening and the night till the next morning! Quite a strange order!

Not all the protests have been peaceful either. In many instances the protestors are seen to have broken the barricades and rushed towards the security forces. The security forces have also been subjected to verbal and filthy abuses.

The Police are also seen to be using “pepper spray” indiscriminately. There is a video footage doing the rounds showing the security forces aiming the spray at Nasheed! The government has publicised the statements of the bodyguards provided by the government from the forces that they did not see any spray being aimed at Nasheed. They have to say this if they are to keep their jobs!

With the government pushing for prosecution of Nasheed, the latter has called on all the population to be present at the trial to witness what happens in the court while alleging that he whole case is being politically motivated.

The MDP has already declared that it will not participate in an election where its presidential candidate ( here Nasheed) is prevented from contesting.

An unfortunate incident of a killing of a lance corporal of Maldivian police by a criminal while he was being arrested is being given a political twist by none other than the Home minister himself that the MDP protests and abuse of Police by the demonstrators have led to the killing!

UK Foreign Office Spokesman Alistair Burt made a very balanced statement. He said -” I call on all sides to show restraint in the interest of achieving a sustainable political solution to Maldives’ recent problem. Protests must be peaceful and security forces’ response should be professional and proportionate. Violence and any cases of excessive use of force should be investigated and those responsible held to account.”

The Special Envoy of the Commonwealth made a similar call for restraint. He expressed his concern at ‘rising political tension’ in Maldives and specifically over the ongoing protests and criminal charges filed against Nasheed. He called for dialogue among political parties urging all parties to show restraint and restore calm.

The European Union made a similar observation. Their High Representative said – continued political unrest, heavy-handed response of security forces and charges filed against political leaders will only lead to further deterioration of the political climate of the country and will adversely affect the lives of all Maldivian citizens.

India on its part has also called for restraint and dialogue. These appear to have fallen on deaf ears of both sides.

Read more

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Two Pakistani nationals fined MVR 100,000, sentenced to life for drug trafficking

The Criminal Court today sentenced two Pakistani nationals to 25 years prison and fined the pair MVR 100,000 (US$6666) each.

The pair were given a month to pay their fines.

The court identified the two Pakistanis as Ishfaq and Imthiyaz Khan.

The Criminal Court ruling said that on February 12 of this year the pair arrived in the Maldives around 12:51am early morning on Sri Lankan Airlines flight UL107.

Imthiyaz and Ishfaq both confessed that they had swallowed a large amount of illegal drugs in bullet-sized packets. When the drugs found inside their body was tested it was showed to be containing Diamorphine, a substance found in heroin is banned under section 1 of the Drug Act.

The court determined that both men had violated the Maldives Drug Act and sentenced them accordingly.

Last Wednesday, the Criminal Court sentenced Ali Ugail of Hulhudhoo in Addu City after the court found him guilty of trafficking illegal drugs into the Maldives.

The court said Ugail arrived to the Maldives on March 29 on Air India Flight number AI263 carrying 76 bullet-sized packets containing Diamorphine.

Ugail confessed to the crime in court and was also sentenced  to 25 years and a fine of MVR 100,000.

Police statistics issued today by the Statistics and Analysis Unit show that in the first 10 days of Ramadan, 63 drug-related cases were filed by police.

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