August 2012 – Page 15 – Minivan News

Finance Ministry proposes drastic austerity measures to Parliament

Parliament’s Finance Committee last week received a proposal from the Finance Ministry which, if accepted, would save MVR2.2billion (US$143million).

The austerity measures include raising Tourism Goods and Services Tax (TGST) to 15 percent, terminating electricity subsidies in Male’, increasing import duties on alcohol and imposing a 3 percent duty on oil, “reforming” the Aasandha health insurance scheme, and reducing the budget of every Ministry and independent institution by 15 percent – among other measures.

If successfully carried out the Ministry’s proposals would halve this year’s budget deficit, currently projected to reach MVR9.1billion (US$590million).

The original budget for 2012 envisioned that revenue would rise to MVR11.4billion (US$740million) with expenditure anticipated to be MVR14.5 billion (US$941million). This would have resulted in a budget deficit of around MVR3billion (US$194million), representing 10 percent of GDP.

However, the revised figures provided by the Finance Ministry have shown that revenue will only be MVR8.4billion (US$545million) for this year with actual expenditure rising to around MVR18 billion. The ensuing deficit would represent around 28 percent of the nominal GDP for 2012, which was predicted to be MVR31.7billion (US$2billion).

This ballooning deficit has alerted the IMF which has expressed concerns that without raising revenue and cutting expenditures the country risked exhausting its international reserves and sparking an economic crisis.

The Maldives Monetary Authority’s (MMA) most recent statistics show that the country’s gross international reserves had decreased by 2 percent in the 11 months up to May before dropping by a further 6 percent between May and June this year.

The MMA’s data shows this figure to represents around ten weeks worth of imports in the Maldives, a country which relies heavily on imports, spending around two thirds of its real GDP on foreign goods each year.

The current government has pointed the finger at the previous administration for the current budgetary issues whilst simultaneously implementing a series of policies which have added to its financial obligations.

These deficit expanding policies have included promoting 1000 police officers, doubling of the budget of the Maldives Marketing and Public Relations Corporation (MMPRC) to MVR69.3million (US$4.5 million), hiring of 110 new police officers, and a reinterpretation of the legal provision for the payment of resort island lease extensions which had cost the government MVR92.4million (US$6million) already in comparison with the same point last year.

The government also chose to reintroduce a MVR100 million (US$6.5 million) fishing subsidies and to reimburse MVR443.7 million (US$28.8 million) in civil servant salaries, reversing measures implemented during the previous government’s own austerity drive.

The raft of measures currently being considered by the Finance Committee represent the most comprehensive effort thus far to reign in the deficit.

Austerity Measures

The proposed measures for reducing state expenditure were published in local newspaper Haveeru. They include discontinuing electricity subsidies in Male’ City which, where around one third of the nation’s population live, saving MVR135million (US$8.7million).

Reducing the state’s offices budget by up to 15 percent is expected to save MVR1.5billion (US$97million) and was first suggested by Finance Minister Abdulla Jihad in May. Jihad mentioned at the time that a pay review board would be convened in order to “harmonise” the pay of government appointees.

The document received by Haveeru revealed details that this pay review body will seek to restructure pay schemes in order to save MVR100million (US$6.5 million). It also emerged that MVR300million (US$19.5million) could be saved by introducing a recruitment freeze in the civil service.

The austerity plan also includes a reform of the Aasandha national health care scheme, the cost of which promised surged ahead of its MVR720million (US$46.7million) budgeted allowance shortly after its introduction in January. After discussions with the government, the Aasandha company has decided to share the costs of private treatments with patients.

The Finance Ministry predicts that reform of the Aasandha scheme can save the government MVR200million (US$12.9million).

Revenue raising

Proposed revenue raising measures include raising the import duty on oil, upon which the country relies heavily for fuel, to three percent. MMA figures show that the price of crude oil has decreased 15 percent in the 12 months leading up to June whilst the domestic price had remained the same with the exception of diesel which increased in price by 2 percent.

Import duties are also to be raised on items whose value exceeds MVR6.4million (US$41million) as well as on liquor imports. The duty on both of these items had been raised as part of the amended Export Import Act in December of last year which saw duties on pork and alcohol products, used exclusively by the resorts, go up by 42 percent.

The tourist industry will be similarly hard-hit by the proposals to raise Tourism Goods and Services Tax (TGST) to 15 percent. The IMF had previously urged the government to double the 6 percent tax levied on all goods and services sold in resorts with Tourism Minister Ahmed Adheeb announcing his intention in May to consult the tourism industry.

Minivan News discussed the potential increase with several resort managers at the time, and was told that an increase would have “serious ramifications” for certain sections of the market. One manager said that the fixed term contracts many resorts have with operators meant that increases to T-GST would have to be absorbed from revenue, resulting in potential cutbacks to staff or services.

Visitors to the Maldives could also be affected by the proposed increase in the Airport Service Charge from US$18 (MVR277) to US$30 (MVR462).

Further rises to the tax levied on luxury items would be accompanied by the introduction of taxes to the sale of flats and on telecoms service in the Finance Ministry’s plan.

The visa fee paid by foreigners working in the Maldives is also slated to see be increased by MVR150 (US$10). Estimates of expatriate workers are be as high as 110,000 although the same estimates suppose that around half to be undocumented.

Despite the recent suspension of sittings of the full Majlis, the Finance Committee continues to hold meetings as normal.

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MNDF training island of Thanburudhoo to be developed as resort

Maldives National Defense Force (MNDF) has confirmed plans to develop a tourist resort on the island of Thanburudhoo, currently being used by the military for training and recreational purposes.

The confirmation comes just a week following the registration of the MNDF Welfare Company, created in a bid to generate income to fund welfare services for the armed forces by investing in various businesses, including the tourism sector.

Speaking to Minivan News on Sunday, Lieutenant Abdullah Ali explained that the MNDF is not going to play any direct role in the development of the resort, and that the island would be leased to a third party.

He claimed that the concept of developing the training island as a tourist resort was approved by the former government in 2010, but that work had stalled “for various reasons”.

“However, we have started that process again, and the discussions are continuing,” Lieutenant Ali said.

He also added that the MNDF Welfare Company is “going to be involved” in the project.

“MNDF Welfare Company is going to do tourism, real estate and other potentially lucrative businesses in the future. Our aim is to help reduce state expenditure by self-generating revenue to fund welfare services of the defense force.” Ali observed.

Former Tourism Minister Dr. Mariyam Zulfa confirmed to Minivan News that the Maldivian Democratic Party (MDP) government endorsed the Thanburudhoo project back in 2010, but said the President Mohamed Nasheed’s administration had never decided to involve the Defense Ministry or MNDF’ in the project.

“MDP believes in a center right system where the government has little or no control over the economy and promote privatisation. Defense Ministry or MNDF – whichever name u call it – it is still the government. So we would of course never support them to be involved in the project.” Zulfa observed.

She added: “As you know during Former President Maumoon Abdul Gayoom several uninhabited islands were given to various ministries. So the only reason Defense Ministry’s name appeared in the documents was because the island was registered under the ministry.”

Dr. Zulfa stated that the proposal was initially submitted by individual named Dr Gunnar Lee-Miller, who proposed to develop Thanburudhoo as a surfing resort. The nearby waters host beautiful dive sites and a popular surf-break, which attract many local and foreign surfers.

“We though it was a good proposal and supported it at the time, but the lease transfer was not signed,” Former Tourism Minister contended. “However, I don’t have any details of what happened with the project, following the MDP’s ousting from power on February 7.”

Minivan News contacted Gunnar Lee-Miller seeking to verify whether he was still negotiating with the authorities to secure the island, however Lee-Miller said that it was “not a good time” and hung up the phone. Further attempts to seek comment were met with no response.

Lee-Miller is identified as the President of Telos Investment, a private investment holding firm based in Singapore. The firm is leading the Five Islands project, which involves the development of three integrated resorts over five islands and nine square kilometres of lagoon in Gaafu Dhaalu Atoll. The project was contracted to the company under former government’s Corporate Social Responsibility(CRS) scheme, in return for establishing high-end sporting facilities in the country.

A speaker profile for Lee-Miller on the website of the Hotel Investment Conference Asia Pacific (HICAP) states that the developer “was recently appointed Senior Advisor to the Maldives National Sports Council assisting in all national sport and sport tourism development projects.”

Surfer controversy

Several local surfers have meanwhile raised concerns on social networks, claiming that the Thamburudhoo project involved dredging and reclaiming the surrounding area of the island reef, which would destroy the popular surfing spot.

Banzai Bongo, a well-known local surfer, wrote on Facebook: “This is going to affect the natural current flow of the surrounding waves such as Jailbreaks, Honkies, Sultans and Pasta. Moreover, it will destroy dive spots around this area. So the government’s best interest is to annihilate our natural resources which includes world class surf sites and dive sites.”

Bongo called for surfers to “save these waves like we all stood against the state and saved the Trestles. Save it for or children, save it for the future.”

The Maldivian Surfing Association (MSA) said it would be issuing an official statement.

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Government presses terrorism charges against 21 MDP protesters over February 8 unrest

The Prosecutor General has pressed Terrorism charges against 21 Maldivian Democratic Party (MDP) protesters for damage to state property on February 8, for allegedly setting fire to the court and police station in Addu City.

Nationwide protests erupted on February 8 following the controversial transfer of power the previous day. Former President Mohamed Nasheed resigned amid a police and military mutiny, and later alleged this was under duress.

The protests were sparked after a brutal police crackdown on large numbers of demonstrators who attempted to enter Republic Square that afternoon, including the former President, MDP MPs and supporters.

Dramatic footage of the crackdown was filmed by international media outlets such as Al-Jazeera, while other footage shared on social media showed police kicking and beating protesters on the ground. Many of the injured were women.

A Minivan News reporter who was injured in a baton charge, at the time described the involvement of former President Maumoon Abdul Gayoom’s ‘Starforce’ officers: “They were beating old women with batons,” he said. “It was just like the old days.”

The protests spread across the country, with demonstrators targeting police and court buildings. Police officers were in some instances evicted from islands. The worst of the destruction occurred in Addu City, the country’s second most populated area after Male’, and an MDP stronghold.

A police crackdown followed in Addu, and was the subject of a report by international human rights organisation Amnesty International.

In one instance, security personnel “reportedly entered the MDP office in Hitadhoo, where more than a dozen women protesters had run for shelter. They chased the women into the storage room of the building and began to beat them,” Amnesty reported.

“Amnesty International learned that one woman had her arm twisted and sprained when MNDF soldiers grabbed her. They then took her glasses off, forced her to open her eye and sprayed it with pepper spray. She said they pressed her against the wall and kicked her with their boots.

“Another woman said that they began to beat her on her breast, repeatedly shouting they would see to it that she does not breast feed again. A third woman showed her badly bruised arm where she said that soldiers had severely and repeatedly beaten her.”

Amnesty noted that both sides had blamed each other for promoting violence, and that human rights in the Maldives “have become heavily politicised.”

In a statement today, the Criminal Court said the 21 protesters were accused of vandalising the Police Station at Addu, vandalising the Police School, the Addu City Court, and the Prosecutor General’s Office at Addu City on February 8.

The Criminal Court said that they were charged according to Anti-Terrorism Act article 2[f][g] and article 6[b].

On February 8, the [olice station on Milandhoo in Shaviyani Atoll and the station on Velidhoo in Noonu Atoll were reportedly taken over by MDP supporters.

In March, Police Sub-Inspector Ahmed Shiyam confirmed the arrest of 17 people on Thinadhoo in Gaafu Dhaalu Atoll, who were involved in vandalising property and creating unrest in the island on February 8.

‘’Those people are people whom we have pictures and video footage of their involvement in the incidents that day,’’ Shiyam said at the time.

In April, the President of the Police Integrity Commission (PIC) Shahindha Ismail told the Parliament’s Independent Institutions Oversight Committee that police actions on February 8 were unlawful, and that police officers had used undue force to disperse the Maldivian Democratic Party (MDP) demonstration.

In May police said they have concluded investigation into arson attacks against government offices and the police station on Thinadhoo in Gaafu Dhaalu Atoll on February 8, and sent the names of 108 persons to the Prosecutor General’s Office.

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Four Seasons launches local surf championship trophy

Local surfers will compete alongside six big international names during the Maldives Domestic Champions Trophy, to be hosted by the Four Seasons Kuda Huraa Resort from August 27 to September 2.

Last year’s title was won by veteran Australian surfer Mark ‘Occy’ Occhilupo, who will this year seek to defend his title from 1989 world champion Martin Potter, three times world champion Tom Curren, 2007 longboard world champion Phil Rajzman, two times world champion Damien Hardman and 2005 female world champion Chelsea Hedges.

The Maldivian Surfing Association (MSA) will meanwhile host a surfing competition to select local champions, who will then compete under the same world-class standards as the world champions with equal commentary, computer scoring and judging criteria.

The surfers will compete in four-man event heats to qualify for the final – a MVR 25,000 (US$1620) showdown for the title of Four Seasons Maldives Domestic Champions Trophy 2012.

Mark Winson, general manager of Tropicsurf – the event’s organiser – noted that “some of the best surfers in the lineup are locals, that’s for sure. Unlike other country’s surf scenes where the surfing community is very concentrated, here world class waves are scattered all across the country.”

“Some of the best surfers live a long way from Male’ and rarely get to see athletes like the six world champs featured this year. It will be great to see 20 of the country’s best surfers congregate at Thamburudhoo on the 27th for the MSA trials, eight of whom will surf in the Domestic Champions Trophy alongside the world champions.”

Tropicsurf’s Founder and Director, Ross Phillips, “was among the first to pioneer surfing in remote parts of the Maldives over 15 years ago with a dream of a locally driven sustainable surf movement in the country,” Winson noted.

“These days the MSA has grown and matured into a vibrant surfing association committed to developing the sport of surfing in the Maldives. We see the Domestic Champions Trophy as an opportunity not only for competition, but also to share some administrative components of event management with the MSA committee,” he said.

Intrepid surfers from around the world have become one of the core markets driving mid-market guest house tourism across the Maldives, and the country is becoming increasingly well known as an ‘undiscovered’ surfing destination – at least compared to famous beaches in places such as Hawaii, Indonesia, and Australia.

“The Maldives’ warm water, perfect waves and friendly people make it the ultimate destination for the travelling surfer,” observed Winson, asked to describe the country’s appeal.

“The Maldives is a surfer’s paradise, but a family paradise too. Non-surfers are catered to in every fashion imaginable and there is an accommodation option for everyone, ranging from luxury resorts such as Kuda Huraa to three star surf camps for the budget traveller. The waves are plentiful and varied to suit a wide range of abilities and craft. Here you’ll find your surfing nirvana!”

Winson added that the competition would showcase both the Maldives “and its world-class waves” – last year’s event was widely publicised in international surf media, due in large part to the participation of Occhilupo, Hardman, world longboard champion Josh Constable, four-time world champion Mark Richards, two-time world champion Nat Young, and seven-times female world champion Layne Beachley.

Occhilupo only narrowly defeated Beachley in the single fin division, after Beachley knocked out Hardman in the semi-final, and Occy defeated Constable.

Despite the camaraderie between the champions and the affable atmosphere aboard the nearby Four Seasons Explorer Catamaran, there was, Beachley told Minivan News, a very strong competitive undercurrent.

“When you’re surrounded by world champions there is a mutual respect because we know what it takes, but when we’re paddling out no one’s there to lose,” she said.

“It’s very competitive. No guy wants to lose to a girl. The boys are amped. Their pumped up, even if they’re pretending to play it down.”

The Four Seasons Maldives Domestic Champions Trophy will take place at Four Seasons Resort Kuda Huraa from August 27 to September 2, 2012, Four Seasons Maldives Domestic Champions Trophy will be held at Four Seasons Resort Kuda Huraa from August 27 to September 2, 2012, alongside the Four Seasons Maldives Surfing Champions Trophy.

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Vice president’s party talks solely focused on resuming Majlis: President’s Office

Talks scheduled this week between senior parliamentary representatives and Vice President Mohamed Waheed Deen will be focused solely on trying to find a resolution to the ongoing suspension of the Majlis, the President’s Office has said.

However, the opposition Maldivian Democratic Party (MDP) today accused government representatives of giving “conflicting” messages after contending that an agreement had been made for discussions to also focus on facilitating early elections to resolve the deadlock surrounding the controversial transfer of power on February 7.

Government Spokesperson Abbas Adil Riza told Minivan News today that talks at the President’s Office scheduled for 11am on Tuesday August 14, were being held at the request of Parliamentary Speaker Abdulla Shahid following the suspension of the People’s Majlis late last month.

Abbas maintained that Tuesday’s talks would be focused solely on addressing parliament’s suspension rather than topics already agreed under the agenda of the all-party talks, which include issues such as early elections.

“This meeting is being held at request of the speaker as the various parties felt they needed to speak with the executive,” he claimed.

In a statement released today, the opposition MDP said the vice president had agreed to an offer to engage in dialogue to try and find what it called a way forward in the “current political crisis.”

“[President] Waheed’s government has assigned their Vice-President Mohamed Waheed Deen to participate in the talks agreed among leaders of political parties represented in parliament,” the statement read.

Speaker Shahid opted to suspend parliament “indefinitely” on July 31 after claiming that “an atmosphere of calm necessary to conduct sittings could not be assured” following confrontations between MPs in the Majlis chamber. Several sittings had been cancelled owing to disorder in the lead-up to the suspension amidst reports of MDP MPs confronting the speaker.

On Thursday (August 9), the now opposition Maldivian Democratic Party said that a date to resume parliamentary sessions was “yet to emerge”, though claimed it was confident discussions were on the right track.

MDP spokesperson and MP Hamid Abdul Ghafoor today claimed that the severity of the speaker’s decision to suspend parliament last month had effectively seen the country come to a political standstill.

“The party made it very clear at the time in a statement that we would not be cooperating with the Majlis unless we were able to address our grievances,” he said.

Ghafoor added that Tuesday’s talks between key parliamentary figures and the vice president would be aimed at addressing the issue of hosting early elections before those presently scheduled by the Waheed administration for July 2013.

Responding to President’s Office claims that only the issue of parliament’s suspension would be focused on in the talks, Ghafoor alleged that the party was continuing to receive inconsistent responses from the government.

“Right from the start of this process we have seen the government giving us conflicting messages,” he said. “We have chosen to ignore these contradictions for practical purposes.”

As such, the MDP claimed that its representative at the talks – MP Ali Waheed – would look to discuss issues including facilitating early elections.

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World famous eco-resort embroiled in local politics

The Soneva Group has composed a statement in response to allegations published in the UK media, that the head of the upmarket resort company, Sonu Shivdasani, had engaged a PR firm to “spruce up” the image of Dr Mohamed Waheed’s government.

The company’s flagship resort, Soneva Fushi in Baa Atoll, is known for its ecological innovation. It hosts the annual ‘Slow Life Symposium’, drawing environmental luminaries from around the world – including, last October, former President Mohamed Nasheed.

However, “No fan of [former President] Nasheed’s tax proposals, Sonu was keen to help the new administration spruce up its image,” alleged a recent column in the the UK’s Private Eye magazine.

The article contended that post February 7, an “unlikely alliance” had emerged between certain resorts – desperate to stabilise the sudden political instability for the sake of their bottom lines – and the new government, a loose alliance of ambitious political elements who came to power on a platform of Islamic conservatism.

“The reality is that the Maldives – already favoured by footballers, Russian gangsters and off-duty Israeli arms dealers – are an even harder sell since the coup has given us an unlikely alliance between hoteliers promoting bikini-clad, cocktail-fuelled luxury and a government that includes two imams, wants to bring back the death penalty and has done nothing about the destruction by supporters of the coup of the national museum’s entire pre-Islamic collection,” the article stated.

The article alleged that “in April [Shivdasani] e-mailed Britain’s well known PR guru Matthew Freud, saying: ‘I just spoke to President Waheed. He is happy to engage your services (for tourism PR) on a barter basis whereby Reethi Rah and Soneva Fushi would offer accommodation at our resorts in lieu of the barter. Did you manage to speak to Alan Leibman from One and Only?’” the column stated.

“Freud initially appeared thrilled at the prospect of free holidays: ’We greatly look forward to working with you and the president,’” it stated, apparently having obtained the relevant correspondence between the pair.

“But by the time President Waheed had got in on the act later in the month, writing to Freud: ‘We had discussed along with Sonu that a contract will be signed first among SixSenses, One and Only and Matthew to assist us with tourism promotion in the UK. Matthew will send us an outline a proposed activities as discussed’ – the legendary PR guru had developed cold feet: ‘I am sorry that the adverse political climate prevents us from being more directly involved but going to a doctor who will make you sicker is rarely a good idea.’”

In a counter statement from the group, obtained by Minivan News, the company sought to clarify the “facts” of the case.

“Sonu Shivdasani does not have a political relationship with President Mohamed Waheed, their interaction revolves specifically around environmental and ecological issues,” the Soneva statement read.

“In addition to former President Mohammed Nasheed, President Mohamed Waheed demonstrated an active level of support and interest in Soneva Fushi’s sustainable practices during his vice presidency. He attended both the 2010 and 2011 SLOWLIFE Symposia at Soneva Fushi.

“President Mohamed Waheed’s interest in environmental issues has remained consistent; it is on these grounds and issues that he and Sonu Shivdasani have interacted since his assumption to the Presidency.”

The company claimed that the discussion between Freud PR and President Waheed had concerned the PR firm’s Director, Arlo Brady, “who is associated with the Blue Marine Foundation.”

“The discussions focused on creating the World’s largest Marine Reserve in the country and other environment initiatives. I offered Freud PR complimentary accommodation at Soneva Fushi in return for their support of the government with this campaign and other environment initiatives in the country that were discussed,” the Soneva statement read.

A source within the Soneva Group described the situation as “a bloody mess”.

Shivdasani “completely fell for Waheed’s line that Nasheed didn’t resign under duress” and had – unsuccessfully – asked a number of PR agencies to set up interviews for the new President, Minivan News was informed.

The source surmised that Shivdasani had “innocently, stupidly, somehow believed Waheed”, and “gone out of his way to help [the new President].”

Soneva’s statement meanwhile disputed the resort’s motivation to support the new government based on supposed plans to amend a corporate tax bill implemented by Nasheed, as, “to the best of my knowledge, there are no plans by the current President Mohamed Waheed to reduce or eliminate this tax.”

Following the controversial transfer of power the Maldives now faces spiralling budget deficit of 27 percent, an ongoing foreign currency shortage, plummeting investor confidence, spiraling expenditure, and a drop off in foreign aid.

A proposal by the Finance Ministry last week to curb impending economic crisis included raising the tourism goods and services tax (TGST) to 15 percent, among other measures. Several resort managers told Minivan News earlier this year that a sudden TGST increase would have to be taken out their margins due to contractual commitments with tour operators, following the International Monetary Fund (IMF)’s demand that this be raised to 12 percent.

“To the best of my knowledge, President Mohamed Nasheed did not have plans to raise further taxes from resorts in the Maldives,” the Soneva statement read.

“There were discussions about taxes being introduced on other industries in the Maldives as well as the introduction of an income tax on Maldivian nationals. Neither of these would impact Soneva or I as we are not involved in other businesses in the Maldives,” it added.

Soured relationships

Sonenva Fushi’s Slow Life Symposium in October attracted an array of high profile business, media and environmental figures including Virgin head Richard Branson, actress Daryl Hannah, star of films including ‘Blade Runner’, ‘Kill Bill’ and ‘Splash’; Ed Norton, star of films including ‘Fight Club’ and ‘American History X’; Tim Smit, founder of the Eden Project; Mike Mason, founder of Climate Care, one of the world’s first carbon trading companies; and British author, journalist and environmental activist Mark Lynas.

Branson waded into Maldivian politics on his blog on February 24, calling on President Waheed to “do the right thing” and hold free and fair elections before the end of the year.

It was, Branson wrote to Dr Waheed, “completely astounding that you have been part of an overthrow of a democratically elected government that has effectively let the old regime back into power.”

“Knowing you, I would assume that you were given no choice and that it was through threats that you have ended up in this position,” Branson said. “I do very much hope that was the case rather than you doing it of your own free will.”

Days later, Branson wrote another entry, saying that he had spoken on the phone to Dr Waheed, who told him he had appointed “a respected person” to examine the truth of what caused President Nasheed to “resign”.

“He says that he didn’t know who issued an arrest warrant for President Nasheed after he left office but that it had been rescinded within 48 hours. He is determined to be an honest broker, to be seen to be one, and to get everyone’s confidence. He said that he offered to bring in people from President Nasheed’s party but they refused to join.

“He also pointed out that President Nasheed’s party had been a minority party and had only been in power due to the support of others. It would be for those others, and the electorate to decide who rules in the future. He ended by pledging elections in July of next year – in line with the constitution – once confidence has been restored,” Branson wrote.

“Based on his personal reputation I believe he’s sincere in wanting to do what’s right for the country and return it to a true and lasting democracy.”

A few days later, Branson wrote a third post, resuming his first call “for early elections “as soon as feasibly possible”.

“Having listened to both sides, it does seem wise for an election to take place as soon as is feasibly possible so that the people of the Maldives can begin to put this ugly chapter behind them,” Branson wrote.

Lynas – another Slow Life participant who also worked as Nasheed’s Climate Advisor – was quick to condemn Dr Waheed’s new government, claiming that his “lack of democratic legitimacy” had lost the Maldives’ its voice at international climate negotiations.

“Waheed and his representatives have no moral authority because they were not elected, have strong connections with corrupt and violent elements of the former dictatorship, and took power in the dubious circumstances of a police coup,” Lynas argued.

“The Maldives has lost many years of work already – it has little credibility left with donors or international investors. Investors and donors alike are looking for stability and strong governance – and they will not get either of those whilst the political system is essentially deadlocked between competing parties, with regular protests and ensuing police violence.

“In climate terms the Maldives is well on its way to becoming a failed state – I see no prospect of it achieving Nasheed’s 2020 carbon neutral goal, even if that goal is still official policy,” Lynas said.

“I think time has basically run out now – unless there are early elections quickly and a legitimate government re-established there is no real prospect of resurrecting the Maldives’ leadership on climate change.”

Yet another Slow Life participant, Mike Mason, who worked pro bono as Nasheed’s Energy Advisor, resigned following Nasheed’s ousting despite being asked by Waheed to remain.

“I don’t think Dr Waheed is a bad man – actually I like him a lot personally,” he wrote, in an email to an official in the Trade Ministry obtained by Minivan News.

“However, he has done nothing to assure me that this is really a democratic process. Rather, my intelligence tells me this is a Gayoom inspired coup with Dr Waheed as an unfortunate puppet.

“Even if I did work with Waheed, I couldn’t deliver the plan now [because of falling] investor confidence,” he subsequently told Minivan News. “[The perpetrators] have destroyed US$2-3 billion worth of investment and condemned the country to an unstable economic future based upon diesel.”

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MDP denies involvement in Hulhumale’ demonstration against VP, pledges commitment to talks

The Maldvian Democratic Party (MDP) said it remains committed to ceasing street demonstrations in order to facilitate talks with government-aligned parties, playing down fears that protests by a number of “individuals” against the vice-president on Thursday could derail negotiations.

MDP spokesperson and MP Hamid Abdul Ghafoor claimed today that the party had not been behind demonstrations held Thursday (August 9) on the island of Hulhumale’ during a visit by Vice President Mohamed Waheed Deen. Ghafoor added that there had been no official communication from the government so far following these demonstrations with regard to stopping talks between the country’s political leaders.

Since the controversial transfer of power that brought President Dr Mohamed Waheed Hassan into office on February 7, former President Mohamed Nasheed has alleged he was removed from office in a “coup d’etat”. The allegations have lead to months of political uncertainty across the nation, resulting last month in the indefinite suspension of parliament.

Less then 24 hours after welcoming the MDP’s decision to suspend ongoing street protests against the government to “facilitate meaningful political dialogue” with the coalition government, the President’s Office yesterday told local media it might reconsider participation in talks following demonstrations held Thursday (August 9) in Hulhumale’.

President’s Office spokesperson Abbas Adil Riza was quoted by the Sun Online news service as saying that the government’s decision to participate in fresh talks had “to be reconsidered”, alleging the MDP had been directly involved in the protests that reportedly saw offensive language used against the vice president.

Both Abbas and President’s Office Media Secretary Masood Imad were not responding at time of press.

Thursday’s demonstrations were directly targeted at a visit by Vice President Deen, who was in Hulhumale’ to attend the opening ceremony of the State Trading Organisation (STO)’s new futsal field.

Police spokesman Hassan Haneef told Minivan News today that eight people had been arrested in relation to the incident, with seven having been released at the time of press. Haneef said that the suspect’s had been arrested over charges including blocking the vice-president’s car, and “disobeying and disturbing” police as they performed their legal duties.

However, MDP MP Ghafoor claimed that the party had not been involved in organising demonstrations against the vice president, contending that the reaction of Abbas in local media had been a “knee-jerk response to a minor incident”.

“I have read comments about this in the media, but we have not heard anything official from the government on [stopping talks],” he said. “It appears that a sporadic incident has been used as an excuse by some to criticise us because of a couple of angry activists. We have stopped our street demonstrations as we promised, but individuals will still get upset in the current political environment.”

Ghafoor added that he believed it was unlikely that the actions of independent demonstrators would set back wider-efforts to attempt to find a resolution the present impasse between the MDP and government-aligned parties.

“This is not a culture we have had before 2008, but people are now free to come out and speak their mind about concerns they have,” he said. “This just appears to be people being over-sensitive regarding minor incidents.”

Demonstration concerns

The unity government’s insistence on an end to the MDP’s continued demonstrations before discussions could resume had been outlined in the agenda of the all-party roadmap talks. Of a six point agenda agreed upon by participants, public order and stability were one of the first points to be addressed.

However, during the most recent round of all-party talks in June, the list of demands presented to the MDP by government-aligned groups were claimed to be lacking in seriousness. The 30-point list presented to the opposition party included demands to desist from using “black magic” and “erotic tools” as well as walking in groups of more than ten.

Since that time, the MDP has continued regular demonstrations, particularly in the capital Male’, where consecutive nights of protests in July resulted in violent clashes between protesters, security forces and journalists.

The immediate aim of inter-party discussions, however, would be to agree upon an arrangement which might allow the reopening of the People’s Majlis, which was suspended last month after angry confrontations between opposing MPs and the Speaker of the House.

The Speaker Abdulla Shahid invoked his authority to suspend sessions indefinitely if he felt dialogue between party leaders was necessary to restore calm to proceedings. Government-aligned parties have been critical of the role they allege MDP MPs played in stymieing the work of the People’s Majlis.

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MDP to mark ‘Black Friday’ anniversary

The former ruling Maldivian Democratic Party (MDP) has announced that it will mark the eighth anniversary of ‘Black Friday’ August 13, 2004 with a special rally and photo exhibition on Monday night.

The spontaneous gathering of the public at the Republic Square on August 12 and 13, 2004 against the regime of former President Maumoon Abdul Gayoom was a watershed event in Maldivian history.

The unprecedented 22-hour pro-democracy demonstration was quashed in a brutal crackdown on the afternoon of August 13 by the former National Security Service (NSS).

Shortly after the crackdown and arrest of scores of demonstrators, President Gayoom declared a state of emergency, which lasted two months.

In August 2005, then-Chairperson of MDP, former President Mohamed Nasheed, was arrested on the first anniversary of Black Friday during a vigil at the Republic Square.

According to the party website, the rally planned for Monday night to mark the anniversary will feature a video presentation about torture.

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Hassan Saeed assesses six months of Waheed’s presidency

“Any attempt to review Dr Waheed’s half year in the presidency should bear in mind the challenges he faced and the past behaviours of his predecessor that he avoided adopting himself. Only thereafter will we be able to fully assess any material advances his presidency brought,” writes President Waheed’s Special Advisor and leader of the Dhivehi Qaumee Party (DQP), Dr Hassan Saeed for Haveeru.

“Dr Waheed was called in to office in a most unusual manner. The day after he took the oath of office, his predecessor claimed that he had resigned at gunpoint.

To anyone who was not aware of the character of the people involved, this chain of events might not sound like a normal governmental transition.

Perhaps understandably, some international organizations were soon demanding answers to why this change had happened with some people in them questioning the legitimacy of his rule. I’m sure everyone will recall attitudes in the international community shifted back and forth over those early weeks.

As a small country, the Maldives relations with its neighbours and with international institutions are vitally important. Clearly as a result of this a significant percentage of Dr. Waheed’s time was spent on addressing the concerns raised. This work has in recent months stabilized with the establishment of the Commission of National Inquiry (CoNI).

CoNI was not just established to respond to international opinion, but also to demonstrate that the Government could be transparent to its own people. Having set this up in the most professional and impartial manner, one would have hoped that the natural reaction from all sides of the argument would have been to wait for its outcome.

However that was not to be the case. Nasheed and his supporters have been out on the streets creating havoc and committing crimes. Security forces have had to spend a lot of time attending to these activities at a time when the public has been demanding the government does more in addressing crime and punishing criminals in response to recent high profile cases of murder.”