Government cannot pay state salaries without Indian cash: Finance Minister

Minister of Finance Abdulla Jihad has said the government is unprepared to meet its recurrent expenditure – including salaries – for the final three months of 2012 without the US$25million loan promised by the Indian government.

Jihad, who was not responding to calls at the time of press, told local media outlet Sun Online that he believed the loan  is being delayed due to the ongoing controversy over Indian infrastructure company GMR’s development of Ibrahim Nasir International Airport (INIA).

The Ministry’s Financial Controller Mohamed ‘Kuday’ Ahmed was also not responding to calls at time of press.

India’s High Commissioner to the Maldives DM Mulay told Minivan News that “India stands by every commitment and hopes Maldives will reciprocate. We have excellent rapport with the GOM [Government of Maldives] and issues, if any, are sorted out amicably.”

India’s Ministry of External Affairs publicly expressed concern over the political stability and the investment climate in the Maldives earlier this month.

Sun meanwhile reported Jihad as saying he had made repeated requests via the High Commission for the loan to be expedited.

Jihad’s comments come during a week in which President Dr Mohamed Waheed Hassan has been campaigning in Faafu and Dhaalu Atolls, reportedly reassuring the people that the economy was running smoothly whilst crticising those who he claimed sought to weaken it.

A concerted campaign by government-aligned parties to annul the US$511million concession agreement with GMR – the single largest foreign investment in the country’s history – has sparked concerns over investor confidence with damaging implications for the long term development of the economy.

Waheed is also reported as saying that he would not resort to borrowing from foreign governments in order to finance government activities.

“I will not try to run the government by securing huge loans from foreign parties. We are trying to spend from what we earn”, he was reported to have told the people of Nilandhoo.

“The Maldivian economy is fine. Don’t listen to whatever people say. We don’t have to [worry] about the Maldivian economy being in a slump,” he was quoted as saying during a rally in Meedhoo.

Minivan News was unable to obtain comment from President’s Office spokesmen on this issue before going to press.

The US$25 million was agreed upon last month as part of the $US100 million standby credit facility signed with Prime Minister Manmohan Singh in November 2011.

Unpaid bills

Despite Waheed’s reassurances, this month has seen a number of state owned institutions face disconnection from the capital’s power grid as bills amounting to around MVR150million (US$9.7million) were said to be owed to the State Electricity Company (STELCO).

Responding to the institutions’ blaming of his ministry, Jihad told Sun that the finances were simply not there.

“We are not receiving foreign aid as was included in the budget. How can we spend more than we receive? That’s why those bills are unpaid. We can’t spend money we don’t have,” he told the paper.

He mentioned that the government would have difficulties paying the salaries of civil servants in the final quarter of this year.

Since coming to power in February, the government has committed to reimbursing civil servants for wage reductions made during the austerity measures of the previous government, amounting to Rf443.7 million (US$28.8 million), to be disbursed in monthly installments over twelve months from July.

A MVR 100million (US$6.4 million) fuel subsidy for the fishing industry was also approved by the Majlis Finance Committee earlier this month, with the hope of stimulating the ailing sector.

The overall deficit for government expenditure has already reached over MVR2billion (US$129million). Jihad has told the Majlis’ Finance Committee that he expected this figure to rise to MVR6billion (US$387million) by year’s end – 28percent of GDP – alleging that the previous government left unpaid bills equal to over one third of this anticipated deficit.

Former Minister of Economic Development Mahmood Razee told Minivan News that this increased expenditure in the face of a pre-existing deficit represented the government “ignoring reality.”

“If they don’t get the loan, they will have to cut travel expenses, stop certain programs – take drastic measures or get another loan,” said Razee, claiming that the only alternative would be to sell treasury bills.

Following reports in August that the government was attempting to raise funds through the sale of treasury bills, former Finance Minister Ahmed Inaz said that this would not address the concerns of the IMF, prolonging economic uncertainty.

China has made large commitments towards the Maldives’ economic development in recent months, although Razee said he believed that current changes within the Chinese government in the upcoming month made this an inopportune time to look there for additional financial aid.

In August, the current Finance Ministry announced its own austerity measures intended to wipe over MVR2.2billion (US$143million) from this year’s budget deficit though few of these propositions have as yet been followed through.

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“We should all party sometime”: young people allege inducements offered to join President’s party

President Mohamed Waheed’s Gaumee Ithihaad Party (GIP) has denied claims the party has been trying to induce people to join through illegitimate means, in a bid to shore up the party’s membership base ahead of a bill that could see smaller parties dissolved.

According to the latest statistics from the Elections Commission (EC), GIP’s current membership base stands at 2,538 members. The draft bill on Political Parties currently in parliament stipulates that parties with membership less than 5000 members after six months of the bill’s passage shall be dissolved by the EC.

A number of young people have come forward and alleged to Minivan News that they were offered government positions, promotions, jobs with salaries of more than MVR 10,000 (US$650) a month, music equipment and even hosted parties to join GIP.

GIP Secretary General Ahmed Mushrif has dismissed the allegations as an “outright lie”, and said that the party from its formation had never attempted to add members illegally.

Allegations of offers

A young Maldivian working in the tourism sector told Minivan News on condition of anonymity that a parliament member and prominent figure in the industry had called him and asked him to sign with GIP “as a favor”.

“He told me that in return for me joining the party, I would be rewarded with a position in the current government that I could never have even imagined. He further tried to convince me that all I needed to do was join the party – I could vote for anybody I wanted,” he said.

Another person who has worked in the civil service for the last 15 years told Minivan News that he was contacted by GIP with a promise that he would “easily be promoted” to a supervisor level job if he joined the party.

“A GIP member called me and told me that I could easily get promoted to supervisor level if I left my current party and joined GIP. Even though I am not an active MDP member I said I would think about it, but later did not respond to his calls,” the civil servant said.

According to the law, it is unlawful for any authority to influence civil servants for political reasons by threatening or offering them employment opportunities.

“We should all party sometime” – Deputy President of GIP

A third person – aged 20 – claimed that he and his group of friends aged around 18 to 22 were approached by GIP through a friend and were invited to the party’s office where they were received by the party’s Deputy Leader  and the Maldives High Commissioner to Malaysia, Mohamed ‘Nazaki’ Zaki.

“When we arrived we were received by ‘Nazaki’ Zaki and treated with pizza. He said that in return for joining GIP, he would offer each of us a job with a salary not less than MVR 10,000, but asked us not to question where the jobs would be allocated from,” the youngster claimed.

Apart from the job, the source alleged that Zaki had offered him and his friends “music equipment and a place to play for free” to those among them who wished to play music. He added that the group were also promised various entertainment activities such as “hosting shows and parties”.

“They asked us to join the party and work in the party’s youth wing,” the source said.

When they asked what they were supposed to do as members of the party’s youth wing, the source said Zaki had told them that their main task  would be to increase the party’s membership as it was “currently very low”.

At the end of the meeting, the high commissioner reportedly suggested the holding of a party event that would be fully funded by GIP.

“They said we should all party sometime. Maybe they said that because we had long hair and looked stylish,” the source suggested.

Zaki was one of the founding members of the opposition Maldivian Democratic Party (MDP). However he resigned from the party in April claiming that the MDP was now focused around former President Mohamed Nasheed and had become a personality-based party.

He later joined GIP and was appointed as its deputy leader.

The opposition MDP had accused Zaki of being involved in corruption in the controversial installation of border control system by Malaysian IT firm Nexbis.

However, Zaki denied the claims, stating that he had only helped facilitate the deal from taking place in his capacity as the High Commissioner to Malaysia.

Minivan News was unable to contact Zaki as he was out of the country at time of press, while President’s Office Media Secretary Masood Imad was not responding to calls.

GIP member Illyas Hussein Ibrahim, the former Immigration Controller and brother-in-law of President Waheed, referred Minivan News to Secretary General Ahmed Mushrif.

Similar remarks

In a leaked audio clip released in August, former CEO of Maldives Ports Limited (MPL) and senior member of GIP Ahmed Faiz was recorded discussing the hiring of individuals to loudly promote President Waheed in local cafes.

Faiz in the audio claimed that he was a “close confidante” of President Waheed, and that he had been given many assignments to help his presidency.

“Not necessarily going out into the streets with huge knives and attacking people, okay? What I want is, for example, when the key people who are involved in this are in a certain place… for example, four or five of these people might be in a coffee-shop.

“You go in there, do you understand? You go and barge in right into the middle, and say, no need to be discreet at all, just say it out loud openly, ‘Hey you (expletive) dogs, this country is being destroyed because of you (expletive). Don’t even think you can do what you please with this country,” he explained in the audio clip.

Similar to Zaki, Faiz also spoke about offering jobs and other benefits at the expense of the state to his audience.

“What I’m saying is, this government is now appointing people to different posts and it’s getting structured in the manner we want. Now there is a lot of things that I can do. Material benefits can be gained, and lots of other things. Credit from STO (State Trading Organisation) worth millions of rufiya, that’s absolutely welcome. Do you get it?

“Then maybe funds are needed for some activity, for example, ‘Please arrange this amount of cash needed for something’. I will get that done. Or perhaps, ‘From this project, give us this amount of money’. Now when it’s put like that, it seems somewhat twisted to me. I tend to see that like cutting a ‘deal’,” Faiz stated.

Following the release of the audio clip, Faiz was sacked from his position in MPL.

Destroying democracy

President of the Anti-Corruption Commission (ACC) Hassan Luthfee said he condemned the unlawful acts carried out by political parties to increase membership figures.

“This is a very serious issue. Actions like these will only destroy the democracy in this country. The purpose of democracy is to exercise the free will of the people in making their political decisions. It is not democracy when a party induces an individual to join a specific political party by unlawful means by offering jobs and money. That is not in within the spirit of democracy,” Luthfee told Minivan News.

He reiterated that politicians should realise that the success of a democracy depends on sincerity.  He also highlighted the challenges faced by the ACC in looking into such allegations.

“The biggest difficulty is that as per the laws of the country, finding substantial evidence is very difficult. Even when we summon a suspected person, would they be honest in giving evidence to the commission?” Luthfee asked.

He further stressed that it was important to have more efficient and stricter laws to address such issues, but said that the ACC is working with the Elections Commission to reduce fraudulent action being carried out by political parties in acquiring members.

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Police arrest six protesters from Kudahuvadhoo during President’s visit

The Maldivian Democratic Party (MDP) has condemned the arrest of six protesters from Kudahuvadhoo in Dhaal Atoll during President Dr Mohamed Waheed’s visit to the island on Sunday.

In a press release last night, the former ruling party condemned “in the harshest terms” the arrest of “participants of a peaceful protest” against Dr Waheed’s government and called for their “immediate release”.

Police made the arrests “brutally and with no prior warning,” the MDP statement alleged.

The party also expressed concern over the alleged use of pepper spray and “disproportionate force” to take the protesters into custody as well as the use of obscene language towards demonstrators.

The MDP statement concluded by calling on the Human Rights Commission, Police Integrity Commission and the Prosecutor General’s Office to investigate and take legal action concerning the “illegal arrest of peaceful protesters and efforts by the police to restrict freedom of expression.”

Speaking to Minivan News, a police media official confirmed that six people were arrested from the island on Sunday but noted that only one person was arrested during Dr Waheed’s visit.

Three men were arrested around 11:00am for “obstructing police duty” during security preparations for the President’s visit.

One of the men allegedly assaulted a police officer while the other two were arrested for “obstructing police duty,” the media official explained.

A police officer sustained minor injuries during the confrontation, the official said, but the injuries were “not too serious.”

A woman was arrested at the time when President Waheed alighted on the island but has since been released.

Two men arrested during a protest outside the Kudahuvadhoo police station after President Waheed left the island have also been released, the media official said.

Of the six arrested during the day, only the three men arrested before noon were still in custody, the official said.

On the allegations concerning excessive use of force, the police media official insisted that no force was used when President Waheed alighted on the island.

However, he added that police used force earlier in the day to control a disturbance that followed the arrest of the individual who allegedly assaulted a police officer.

Banners taken down

Meanwhile, Shathir Abdul Rahman, head of the MDP Kudahuvadhoo branch, told private broadcaster Raajje TV yesterday that a large number of police from other stations in the atoll arrived ahead of the President and took down anti-government banners.

The police media official confirmed that police took down banners put up at the harbour area.

Dhaal Meedhoo
Protest preparation in Dhaal Meedhoo

The banners were put up at a cordoned off area “closed for security reasons” and were taken down as they were put up by islanders who “broke through the police lines”, the media official said.

Meanwhile, a protest also took place at Dhaal Meedhoo on Saturday to coincide with the former vice president’s visit.

President Waheed left Male’ on Friday for Faafu Nilandhoo and some islands of Dhaalu atoll.

Private broadcaster Villa Television – owned by Jumhoree Party (JP) leader and business magnate MP Gasim Ibrahim – reported Dr Waheed as saying in his speech at Kudahuvadhoo yesterday that his government would be “harsh” towards those who attack senior government officials and create unrest.

A bottle was reportedly thrown at Housing Minister Dr Mohamed Muiz at Dhaal Meedhoo during the President’s visit.

Referring to the incident during his speech at Kudahuvadhoo yesterday, Dr Waheed reportedly characterised it as “an act of terrorism” and promised “harsh action” against those responsible.

Meanwhile, according to MDP officials on social media, two men were arrested today from Dhaal Hulhudheli during a protest greeting President Waheed’s arrival on the island. Both men have however been released after the President’s departure.

Since the controversial transfer of presidential power on February 7, visits by President Waheed to islands have been marked by protests calling him a “traitor” and demonstrators clashing with police.

Following reports released by Amnesty International alleging police brutality since February’s transfer of power, police in June this year denied “use of excessive force” against demonstrators.

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Police submit cases to PG alleging damage to Alifushi police station on Feb 8

Police on Monday submitted cases to the Prosecutor General (PG) against 24 individuals charged with damaging the police station on Alifushi in Raa Atoll, and obstructing police work during the February 8 protests.

Police stated that the 24 individuals were charged for forcefully entering the police station around 7.45pm on the night of February 8, threatening officers on duty, forcing them to evacuate the premises, damaging the station building and for obstructing the police service.

The 24 people charged includes 20 men from the island of Alifushi itself. They are: Hassan Ahmed, 30, Velaanaage; Hassan Nashid, 30, Fasaanaa; Nail Abdulla, 25, RoashaneeAage; Muaviyath Abdul Latheef, 30, Scenery; Ahmed Mohamed, 22, Seny; Ismail Saif, 26, HabibiHap, Moosa Niyaz, 27 and Abdulla Niyaz, 24, Snow; Ali Fayaz, 31, Malaaz; Fazal Ibrahim, 19, NightHouse; Abdul Majid Moosa, 33, Hudhuasurumaage; Adam Shareef, 41 and Ibrahim Shareef, 29, VareyVilla; Abdul Hameed, 55, SameeVilla; Yameen Ibrahim, 26, Panama; Ishaq Adam, 28, Moonlight; Faruhadh Mohamed, 33, and Abdul Hafeez Mohamed, 27, HusnooVilla; Ahmed Riyaz, 21, Redfish, Shiyan Ibrahim, 28, Niuma.

The other four men are Mohamed Ramzy, 24, Shifana Villa, Lhaviyani Atoll Lhaimagu; Ahmed Giyas, 26, Berebedhimaage, Lhaviyani Atoll Naifaru; Hassan Simah, 30, Giyarest, Haa Dhaalu Atoll Neykurendhoo and Mohamed Ziyau, 26, of Samantha, Raa Atoll Rasgetheemu.

Police Spokesperson Sub-Inspector Hassan Haneef told Minivan News that police were looking into damage caused to police stations across all areas of the Maldives on February 8. He confirmed that police were not investigating damage caused to the police and MNDF headquarters by police and civilians on February 6-7, stating that “it makes no sense for police to look into this matter ourselves.”

Haneef said instead that the damage would be investigated under procedures determined by the government.

Local news sites have previously reported that in addition to damages to police offices, the state has submitted 409 cases concerning charges of arson on February 8 to the PG.

Meanwhile the Police Integrity Commission in its report into the events of February 6-7 stated that they had found in their investigations that ‘some among the police officers gathered in the Republican Square” had caused damage to the police headquarters, further stating that these would be treated as separate offences.

Minivan News tried contacting President’s Office Media Secretary Masood Imad and the Vice Chair of the Police Integrity Commission, Abdulla Waheed, but neither was responding to calls at the time of press.

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Garbage dump fire spreads smoke across Male’

Smoke continued to spread into Male’ city from a fire at the garbage dump behind the STO petrol shed three days after the fire broke out on Friday afternoon.

Maldives National Defence Force (MNDF) Lieutenant Abdulla Ali told Sun Online on Sunday that despite continuous efforts to control the fire, the bottom of the garbage pile continued to burn.

The task was made harder as the waste pile contained substances that catch fire easily, the MNDF media official explained.

“We have controlled the fire. We have resumed extinguishing efforts after it started burning again today. But the area is filled with waste, making it difficult to put the fire out,” Ali was quoted as saying.

Residents in the Henveiru district near the waste disposal site have complained of the smoke and stench emanating from the garbage dump, Sun Online noted.

Meanwhile, the MNDF media official told private broadcaster Raajje TV today that the fire has been completely extinguished around 12:30pm and that smoke was no longer coming out of the bottom of the pile.

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80 percent of land vehicles insured

The Transport Ministry has revealed that 80 percent of land vehicles have been insured following an announcement of a requirement for third party insurance, reports Sun Online.

Transport Authority Chairman Abdul Rasheed Nafiz explained that 20 percent of registered land vehicles remained uninsured due to lack of documents.

Owners of uninsured vehicles are being fined MVR 750 under the current regulations, Nafiz said.

The insurance premiums are divided into four categories, based on the type of vehicle: MVR 150 for 50cc motorcycles; MVR 175 for 50Ccc to 250cc motorcycles; MVR400 for over 250cc motorcycles; MVR750 for private cars; MVR1,000 for taxis; MVR1,500 for leased vehicles; and MVR2,000 for vehicles used for other purposes.

Companies that provide third-party insurance in the Maldives are Ceylinco Insurance, Allied Insurance, Amana Takaful and Sri Lankan Insurance.

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Police make drug busts in Noonu, Raa Atolls

Police have arrested two men in possession of illegal narcotics from Noonu and Raa Atolls based on intelligence information.

On October 21, a 28 year-old was taken into custody from Noonu Lhohi based on intelligence information received by the Noonu Manadhoo Police Station. The suspect was arrested at the harbour after he alighted from a boat that arrived from Lhaviyani atoll.

When the suspected was searched, police discovered five packets of heroin and 16 packets of hash oil under the soles of his sandals.

Meanwhile, a 20 year-old was arrested from Raa Ungoofaru yesterday with three packets of hash oil based on a tip-off to the Ungoofaru Police Station.

The suspect had arrived in Ungoofaru from Madduvari on the Raa Atoll south ferry and was about to take the north ferry from Ungoofaru when he was taken into custody.

The cases are being investigated by the Noonu and Raa Atoll Police Stations.

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