Month: September 2012

Progress on GMR project awaits ACC investigations

President of the Anti Corruption Commission (ACC) Hassan Luthfee has said there may be an extended delay before work is resumed on GMR’s development of Ibrahim Nasir International Airport (INIA).

“It will take some time. It is not easy for us to finish it,” said Luthfee.

CEO of GMR Maldives Andrew Harrison last week said that no work had been completed on the site since August 2.

Work was initially halted due to issues relating to missing permits – an issue which Harrison said had now been resolved.

Luthfee said today that the government was now waiting for the ACC to finish its three cases concerning the Indian infrastructure company’s deal which was signed under the presidency of Mohamed Nasheed in 2010.

At US$511 million deal represents the largest foreign investment deal in the country’s history.

Luthfee refuted local media reports that two of the three cases will be completed by this Saturday.

“We have started the investigations and analysed the agreements and maybe we will finish our first reports in two weeks,” said Luthfee.

Luthfee was also keen to correct media reports that the ACC had requested a foreign expert to help specifically with the GMR investigations.

He stated that the ACC had been seeking an expert for assistance with all of the commission’s work but had struggled to accommodate one within the current budget.

Luthfee also added that the investigation would be conducted in conjunction with the Auditor General (AG) in order to give the process “greater transparency.”

Following a Supreme Court ruling on a separate case last week, Luthfee argued that the ACC was powerless without greater powers to prevent corruption.

“In other countries, Anti Corruption Commissions have the powers of investigation, prevention and creating awareness. If an institution responsible for fighting corruption does not have these powers then it is useless,” he said.

President’s Spokesman Abbas Adil Riza, who was not responding to calls at time of press, told local media yesterday that the government would not be able to take any decision regarding the GMR project until the ACC’s investigations were completed.

“ACC’s decision on the issue is very important for the government; it would assist the government in resolving this issue. There’s no legal action the government can take otherwise,” Abbas told Sun Online.

In June, pro-government parties re-affirmed a joint 2010 agreement calling for nationalisation of the airport.

The leader of one of these parties, Gasim Ibrahim of the Jumhooree Party (JP), was quoted in local media yesterday as saying he would oppose the GMR deal for as long as he lived.

These comments closely followed media reports that GMR had terminated the credit facility of Gasim’s Villa Air company after it had amassed MVR 17 million ($US1.1million) in unpaid bills.

There was no one from Villa Air available for comment at the time of press.

Fellow national unity government party, the Dhivehi Qaumee Party (DQP), filed a case last November against the introduction of an Airport Development Charge (ADC) which had been key to financing the project.

The DQP also produced a document criticising the deal and drawing parallels between foreign investment and colonialism.

After the Civil Court ruled the ADC an illegal tax, the Nasheed government reached an interim arrangement whereby GMR would deduct the lost revenue from the concessionary payments owed to the government.

This issue has become a major point of friction with the new government which subsequently declared this interim arrangement illegal also.

Transport Minister Dr Ahmed Shamheed, also not responding to calls today, met with India’s Civil Aviation Minister last week, informing him of the issues with the GMR project.

“The Civil Aviation Minister talked about this issue in detail, while we were on the subject of foreign investments. Until now, the Indian government had been aware only that the Maldivian government has an agreement with GMR. So we took the opportunity to explain the problems associated with this agreement. It was a good chance to inform them of this,” Shamheed told Sun Online.

Whilst Shamheed visited India, President Dr Mohamed Waheed Hassan, was in China where as well as meeting with prominent businessmen, he told the China-Eurasia Economy Development and Cooperation Forum that the Maldives was “open for business”.

The government recently sent a statement to the Commonwealth Ministerial Action Group (CMAG), arguing that the stigma of being on the group’s investigative agenda was deterring foreign investment in the country.

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We will take action against those involving children in begging: Ministry of Gender, Family and Human Rights

The Ministry of Gender, Family and Human Rights has released a statement regarding the issue of children being involved in street begging.

The ministry has said it will take legal action against those responsible for involving children in begging, and those who allow children to stay unaccompanied in the premises of the local market .

The ministry expressed concern that street vendors in the local market have young children, some of school-age, accompanying them. The statement says they find the issue further worrisome as they have noticed that arguments are common there, and foul language is often used in the presence of minors.

The statement further notes that they have observed children playing in the sun, taking meals and sleeping in the same area. The ministry notes that these actions may have a negative effect on the child’s growth and behaviour, and as such are risks to their safety, health and physical well-being.

The ministry further states that exposing children to such environments would have a detrimental impact on their education and upbringing. It states that this bringing up children in this manner is against the law, referring to the Child Protection Act.

The Ministry of Gender, Family and Human Rights was unable to further comment on the issue at time of press.

Minivan News reported in January that a number of elderly people had been forced out of home and had begun sleeping in the local market.

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CoNI report causes predictable outrage: The Guardian

“When is a coup not a coup? This vexed question has been exercising the citizens of the Maldives ever since their first democratically elected president, Mohamed Nasheed, was driven from office in February amid a violent rampage by police mutineers,” writes Simon Tisdall for the UK’s Guardian newspaper.

“His successor, former vice-president Mohamed Waheed, claims to hold power legitimately. Opponents including members of Nasheed’s Maldivian Democratic party (MDP) say Waheed now oversees a “police state” and warn of deepening political rifts and ever greater human rights abuses.

The crisis that erupted in the Indian Ocean republic eight months ago caused widespread alarm. Nasheed, a former political prisoner, was voted into office in 2008 after 30 years of autocratic rule by Maumoon Abdul Gayoom.

The result was widely hailed as a triumph for democracy. But the old regime took defeat badly. Resentment turned into open revolt after Nasheed ordered the detention of the chief justice of the criminal court, who was suspected of obstructing investigations into bribery and corruption allegations involving former regime figures.”

Read more

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MP and councillor charged over February 8 arson attacks not present for court hearing

An MP and a Addu City Councillor both facing charges over alleged involvement in a series of arson attacks on February 8 this year did not attend a Criminal Court hearing of their cases today.

MP Mohamed Rasheed and Addu City Councillor Ahmed Mirzad were reported not in attendance during today’s court hearing as an official chit could not be delivered to either of the men, according to the Sun Online news service.

The two men are among 40 suspects currently facing trial over allegations of involvement in attacks on several state buildings during unrest and violent clashes with authorities that occurred in the country’s second city on February 8.

Local media has said that 32 of these suspects were in attendance for the trail today,with Sun reporting that hearings within the 12ft by 13ft court room could only be held three suspects at the time.

A court official told Sun Online that the majority of the eight suspects who had failed to attend today’s trial had not reportedly received their respective chits – mostly as a result of working abroad.

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Maldives’ political situation “very positive”: new US Ambassador

New US Ambassador to Sri Lanka and the Maldives, Ambassador Michele J Sison, on Sunday presented her credentials to President Mohamed Waheed Hassan, and met with the Maldivian press.

Ambassador Sison replaces Ambassador Patricia A Butenis. She was previously US Deputy Ambassador in Iraq, as well as Deputy Ambassador in the United Arab Emirates.

She has also worked as Principal Deputy Assistant Secretary in the Bureau of South Asian Affairs, providing broad policy oversight of US relations with Pakistan, Afghanistan, Bangladesh, India, Nepal, and Sri Lanka.

Ambassador Sison on Sunday morning met with President Waheed, Vice President Waheed Deen and Minister of State for Foreign Affairs Dunya Maumoon, and said she looked forward to meeting the Foreign Minister at a later stage.

“I have been reading about the Maldives for quite some time and am impressed by the warm welcome I received this weekend,” she said.

Asked for her early impressions of the country’s political situation and stability, Sison said it was “very positive. You have democratic institutions in place, you have a vibrant and dynamic media, all of the ingredients are there.”

“What troubles me, and I’m sure troubles the Maldivian people at this point, is that recent events have contributed to a slowdown in the normal political life of the country – for example the vital work of the Majlis. I know we all want to see the political system able to proceed so that important legislative drafts can be discussed and debated and normal political life moves forward in a productive manner.”

Sison said she was encouraged by the work of the current leadership dialogues, “which have the potential for real progress as the country moves towards elections, and I hope will smooth the way for the Majlis to move forward.”

Sison confirmed that she had read the report produced by the Commission of National Inquiry (CNI) into the circumstances surrounding February 7’s controversial transfer of power, and noted that the US had “very publicly welcomed the release of the report.”

“I did receive a copy and highlight the summary for my staff. It was a subject of intense interest in Washington,” she said.

Sison said the US had “publicly commended the commission’s co-chairs for their leadership and commitment to a thorough and what we feel was an inclusive review process.”

“We consistently called for all Maldivians to respect the findings of the report. Now we look forward to the implementation of the recommendations and call on all to respect the findings and exercise restraint, and continue the vibrant political expression in the Maldives and channel it in a productive and non-violent manner.”

Sison however refrained from stating whether this stance meant the US would back the Maldives’ government’s bid to be removed from the agenda of the Commonwealth Ministerial Action Group (CMAG), the Commonwealth’s human rights and democracy arm.

“I know that the issue is very topical right now, and I’ve [received] various views from political actors and will continue to seek input,” she said.

Asked whether the US was concerned about a broad shift in Maldivian foreign policy from Western allies towards China, Sison responded that “a very simple answer is that the US, as a friend of the Maldives, is encouraged that Maldivian foreign policy is growing in terms of representation and cooperation.”

In her address, Sison noted that key areas of bilateral cooperation would include “furthering the hopes and dreams of youth and women. I really do believe that the US has a useful role to play in the Maldives, particularly in the maritime security, economic and education sectors.”

She announced the imminent arrival of a senior US educator who would be working with the Ministry of Education “on curriculum development and the general professional development of Maldivian educators.”

Ambassador Sison also remarked on the US’s training of the Maldivian police, which she noted would be “very visible this month” as the trainers focused “on the importance of community policing and protection of human rights.”

The US is currently providing US$7.1 million towards an integrated water resource system on Lhaviyani Hinnavaru and Haa Alif Dhihdhoo islands.

It is also contributing US$20,000 in funding towards cultural preservation and the restoration of pre-Islamic artifacts in the National Museum, which were destroyed by a mob that broke into the building amid February 7′s political turmoil.

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Bangladesh media reports SAARC summit uncertainty following regional unrest

Political unrest in the Maldives and Nepal during 2012 has set back preparations for the 18th summit of the South Asian Association for Regional Cooperation (SAARC), Bangladesh-based media has reported today.

According to The Daily Star newspaper, the next summit meeting for the heads of Afghanistan, Bangladesh, Bhutan, India, Nepal, Sri Lanka, Pakistan and the Maldives had been scheduled to be held in Kathmandu during May 2013.

However, the chances of meeting such a date are now alleged to be unlikely over reports that no preparatory work has been undertaken by Nepalese authorities.

Citing unnamed “diplomatic sources”, the Daily Star has claimed that the postponement of an inter-summit session of the organisation’s council of ministers by the Maldives – in its position of current SAARC Chair – had further set back Nepal’s own preparations.

“The Maldives, the current SAARC Chair, is also in serious political crisis following the alleged ouster of Mohamed Nasheed as president of the country in February last,” wrote the newspaper.

The inter-summit session is reported to have been required under the SAARC Charter to be held six months after the organisation’s previous summit in order to finalise the dates, venue, and agenda of its next meeting.

Foreign Minister Dr Abdul Samad Abdulla and President’s Office Spokesperson Abbas Adil Riza were not responding to calls from Minivan News at the time of press.

The previous SAARC summit meeting was held back in Addu Atoll in November 2010.

During the summit, former President Mohamed Nasheed identified several key issues to be addressed including trade, transport, economic investment, security against piracy, climate change and good governance.

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Chinese aid not limited to US$500 million loan: Waheed

Speaking upon his return from China yesterday, President Dr Mohamed Waheed Hassan told reporters that Chinese aid to the Maldives will not be limited to the US$500million (MVR7.7billion) loan finalised last week.

Waheed revealed that the Chinese government had pledged to make all necessary aid available to the Maldives, including assistance with road and shipping development, reported Haveeru.

The President expressed his hope that his meeting with Chinese businessmen would result in harbor development projects in the Maldives.

Regarding China’s view on Maldivian politics, Waheed noted that the Chinese were amongst the first nations to recognise his unity government.

“The Chinese Prime Minister personally told me that he had full confidence and support for the Maldivian government,” Waheed was reported as saying.

When speaking with Xinhua before his trip, Waheed praised China’s policy of non-interference in foreign affairs.

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Arrival of sniffer dogs delayed

The Indian High Commission in Male’ has told local newspaper Haveeru that there will be a delay in the introduction of sniffer dogs to combat drug trafficking.

Despite a request last June from the Maldives Police Service (MPS), an official from the High Commission said that the MPS had told them that the appropriate environment in which to keep the animals was not yet ready.

Police media official Sub Inspector Hassan Haneef told the paper that the plan will still go ahead with the assistance of the Indian government.

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US dollar exchange rate could hit MVR 20 by year’s end, warns JP Leader Gasim Ibrahim

Local business tycoon, media owner, MP,  Jumhoree Party (JP) leader and member of the Judicial Services Commission (JSC), Gasim Ibrahim, has warned that the dollar exchange rate of the Maldivian rufiya may rise to MVR 20 by the end of the year – a 25 percent increase.

Speaking at a press conference on Sunday, Gasim told local media that the main reason for the Maldivian currency to go down was “selling Ibrahim Nasir International Airport to GMR, selling the shares of Dhiraagu, and the Maldives Water and Sewerage Company.’’

Gasim claimed the three companies were now taking US$2 billion dollars out of the country annually.

At the press conference, Gasim – who also operates domestic airline Villa Air, under the FlyMe brand  – alleged the former government had not awarded the airport to GMR in a way that would benefit the citizens, and expressed concern over increased fuel prices and landing fees.

Gasim’s comments follow GMR’s suspension of Villa Air’s credit facility due to unpaid bills of MVR 17 million (US$1.1 million) for fuel, ground handling and passenger service fees, according to local media reports on Saturday.

His concern over currency devaluation follows the former government’s managed float of the rufiya within a 20 percent band of the pegged rate of MVR 12.85.

In April last year, then-Finance Minister Ahmed Inaz explained that the government decided to change the fixed exchange rate to a “managed float” to shape government policy towards increasing the value of the rufiya and ultimately bring the exchange rate down to MVR 10 – an oft-repeated pledge of former President Mohamed Nasheed.

The worsening balance of payments deficit could not be plugged without allowing the market to set the exchange rate, Inaz continued, adding that through lowering the fiscal deficit and spurring private sector job growth “a path would open up for us to reach the lower band (MVR 10.28).”

“My estimate is that it will take about three months for the market to stabilise and reach a balanced [exchange] rate,” he said.

Following this decision of the former government the then opposition Dhivehi Rayyithunge Party (DRP), which has since divided into two factions, held protests in the streets of Male’ against the decision.

The International Monetary Fund (IMF) however praised the Maldives’ decision to effectively devalue its currency as a  “bold step by the authorities [representing] an important move toward restoring external sustainability.”

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