Month: December 2012

‘Sun Travel’ Shiyam elected interim leader of Maldives Development Alliance

Independent MP for Dhaalu Meedhoo, Ahmed ‘Sun Travel’ Shiyam, was elected interim leader of the newly-formed Maldives Development Alliance (MDA) at an inaugural convention held in Male’ last night.

According to Shiyam’s Sun Online, 362 members attended the meeting at Traders Hotel, which was authorised to proceed by the Elections Commission (EC) after it had verified the attendance registry.

Under the regulations governing political parties, at least 300 members are required to attend an inaugural convention of a newly-formed political parties, while 3,000 signatures are needed to form the party.

The tourism magnate was elected interim leader with 335 votes out of 362 ballots cast.

Independent MP for Dhaalu Kudahuvadhoo Ahmed Amir was elected as one of three interim deputy leaders, along with Ali Mauroof and Aishath Rafiyya.

In addition to the senior officials, 18 members were elected to the party’s interim council.

While orange was approved as the official colour of the party, members also passed the party’s logo, seal, manifesto and charter.

MDA becomes the 16th political party to be registered in the Maldives since 2005.

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Police send names of two suspects in Afrasheem murder case to PG’s Office

The Maldives Police Service has this week sent the case of two suspects arrested over the murder of Progressive Party of Maldives (PPM) MP and Religious Scholar Dr Afrasheem Ali to the Prosecutor General’s (PG’s) Office.

According to Police Commissioner Abdulla Riyaz’s twitter feed, files on the two suspects were sent to the PG’s Office yesterday.

The two suspects were later identified by the police as Hussain Humam Ahmed of Henveiru Lobby and Ali Shan of Henveiru Hicost.

Just last week, a Maldives National Defence Force (MNDF) officer was also reported to have been arrested in connection with the Afrasheem investigation.  However, the police and MNDF have yet to officially confirm the reports.

The Maldives Police Service has said that current policy when providing information regarding the investigation of Dr Afrasheem was to withhold all details from media until  official press conferences on the case were held.

At the last conference held on December 4, Commissioner Riyaz said that the murder of  Dr Afrasheem was well-planned, insisting the attack was politically motivated and funded.

Riyaz alleged that assassins were thought to have been offered MVR 4 million (US$260,000) for the attack.

In a presentation at the time, the police commissioner claimed that 11 suspects had been arrested in connection to the case so far – although three were later released.

He said that 200 items had been collected by police for use as forensic and digital evidence.

“Over 500 hours of CCTV footage have been analysed, more than 100 people have been interviewed and about 13,000 phone call recordings have been analysed out of which 12,000 were from one single tower,” Riyaz claimed at the time.

Afrasheem was killed on October 1. His wife discovered his body lying on the staircase of their home.

Dr Afrasheem was elected to parliament in 2009 as a member of the then-opposition Dhivehi Rayithunge Party (DRP). Following a split within the former opposition party, Afrasheem sided with the Progressive Party of the Maldives (PPM), which was established by former President Maumoon Abdul Gayoom.

Widely considered in the country an Islamic moderate, Dr Afrasheem took outspoken and controversial positions on issues such as the permissibility of playing music, and praying next to the deceased.

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Male’ City Council clashes with STELCO over permit issue

The State Electric Company (STELCO) has claimed it is facing difficulties in providing its services to certain parts of Male’ following the city council’s decision not to issue it with permits to carry out work, according to local media.

In a press conference held yesterday, STELCO Deputy Managing Director Mohamed Latheef said it had been informed by Male’ City Council (MCC) that the company was to temporarily cease providing services such as digging up roads in the capital as of December 5, Haveeru reported (Dhivehi).

Latheef said the company had since been facing difficulties in providing electricity services to parts of Male’ as a result of the MCC’s stance.

Disputes between STELCO and the MCC started after the state electricity provider began providing electricity to several locations in Male’ without the permission of the city council.

According to Latheef, the properties affected had been previously taken from the city council by the Housing Ministry.

“As the nature of the services provided by this company are such that we require the assistance and cooperation of the municipal service provider of the state, and because Male’ City Council has currently ceased providing its services, the subsequent result is that the company is now unable to provide certain public services,” he said.  “Some of the services that require the permission of the city council include digging street sides, laying cables and certain tasks that require the roads to be closed off.”

STELCO Engineer Ibrahim Naashid said during the same press conference said that the state-owned company was receiving about 15 requests per day to connect electricity, but was unable to do so as a result of the city council’s decision earlier this month.

“On an average, we were unable to provide electricity service to 15 parties in the last three to four days. However, not all premises require the digging of roads to provide electricity cables, so we have provided electricity to some premises through our distribution box that have been previously installed. But if digging the road is required to provide the service, it is impossible to give the service now,” Naashid said.

Nashid explained that the company was required to obtain a permit from the city council to lay cable even in an emergency power outage, resulting in huge difficulties for the company in the present situation.

“Earlier, it is possible for us not to immediately get a permit from the city council in an odd time like midnight hours, but we do inform their supervisors and those responsible in maintaining the roads. If it’s a difficult time like midnight hours, we carry out the work and inform them the next day,” he explained.

However, Naashid affirmed that the company would still carry out its work in providing their service to the people in case of emergencies regardless of the views that the city council may hold.

Latheef claimed the company had held several discussions with the MCC, the most recent of which took place Sunday (December 9).  However, the MCC was said to have remained unwilling to reverse their decision.

Latheef added that the company was in discussion with relevant government authorities and would be considering legal action against the MCC if deemed necessary.

Male’ City Council responds

In a response to STELCO’s claims, the MCC in a letter seen by local media, warned the state-owned electricity provider that it would take “harsh” action if any service was provided to the “people” without its permission.

The city council said STELCO was failing to abide by laws and regulations, as well ignoring two different letters sent to the company advising it to comply with such requests.  The MCC stated that it had not received any response to its letters.

The letter signed by Deputy Mayor Shamah Rasheed and addressed to Managing Director of STELCO Dr Mohamed Zaid stated that it was the responsibility of the MCC to enter into agreements with parties and carry out business transactions.  The MCC said such transactions were to be carried out in accordance with policies set by government authorities that outline the provision of basic services such as water, electricity and sewerage services to the people as stipulated under the Decentralization Act.

Deputy Mayor Shamah, MCC councillor Mohamed Abdul Kareem and STELCO’s Managing Director Dr Zaid were not responding to calls from Minivan News at time of press.

Fallout with Housing Ministry

The MCC is also involved in an ongoing dispute with the Housing Ministry over the ownership of several areas in Male’, which have now been taken over by Housing Ministry.

In an announcement, the Housing Ministry has said that the city council’s opening of bidding for development projects of several areas of Male was against state regulations. The announcement was made after the city council open requests for bids to develop Male’ southern harbour and a part at Alimas Ufaa Carnival.

The Housing Ministry has contended that the MCC did not have any legal authority to open bidding process of the areas and that it would not be responsible for pecuniary or any other damage suffered by groups who submit bids for the development of the regions.

Despite the remarks made by the Home Ministry, MCC member Ibrahim Shujau told local media outlet Sun Online that the council believed that the Alimas Ufaa area was legally under the council’s jurisdiction.  He contended that efforts to develop a park in the area would go ahead.

The MCC on Sunday (December 9) took the matter to the parliament, where it had requested for assistance in resolving the matter.

Speaking to local media, Shujau said that the council had filed the issue with parliament after seeing that it could not carry out its work with Housing Minister Dr Mohamed Muizz in the position. He added that the case had been filed with Parliament’s Government Oversight Committee.

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Finance Ministry instructs offices to implement cost-cutting measures

The Ministry of Finance and Treasury last week issued a circular to all government offices and state institutions with instructions to implement cost-cutting measures during the final month of the year.

The circular (Dhivehi) signed by Finance Minister Abdulla Jihad ordered offices to cancel all overseas trips, such as for study tours and training, and to seek approval from the ministry for all official trips that were not completely funded by foreign parties; cancel all repair work for the rest of December; and cancel purchases of capital items that were not included in the public sector investment programme (PSIP).

Finance Minister Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at the time of press.

In the circular, the Finance Ministry noted that 15 percent had previously been deducted from office budgets to reduce the fiscal deficit “as a result of income being lower than estimated in the 2012 budget passed by parliament.”

However, since government spending necessary to provide essential services to the public could not be reduced, “the state’s expenditure has to be further controlled as additional measures are needed to reduce the state’s budget deficit,” the circular stated.

In July, the Finance Ministry instructed all government offices to reduce their budgets by 15 percent, with only 14 of 35 offices complying by the given deadline.

“Some offices will face difficulties. But we don’t have a choice,” Jihad told local media at the time.

However, in the same month the Finance Ministry decided to reimburse civil servants for the amount deducted from their salaries in 2010 as part of the previous government’s austerity measures.

The deducted amounts, totalling MVR 443.7 million (US$28.8 million), were to be paid back in monthly instalments starting in July.

T-bills

Explaining how finances were raised for the government this year, Jihad told parliament’s budget committee last week that a large number of treasury bills (T-bills) were sold to Champa Brothers when the Maldives Monetary Authority (MMA) commenced sales to private parties in August this year.

Sun Online reported that Champa Brothers purchased T-bills worth US$11 million.

MMA T-bills with maturity dates of 28 days are sold at 7.73 percent interest, 91 days at 7.70 percent interest, 182 days at 7.55 percent interest, and 364 days at 7.70 percent interest.

The MMA made an announcement yesterday (December 10) seeking investors for “private placements” of treasury bills and bonds denominated in both US Dollars and Dhivehi Rufiyaa (MVR).

Meanwhile, according to the weekly financial statement as of December 6, total government expenditure stands at MVR 11.7 billion (US$758.7 million), outstripping total revenues in 2012 of MVR 9 billion (US$583.6 million).

The government spending includes MVR 8.7 billion (US$564 million) in recurrent expenditure, MVR 1.3 billion (US$84 million) in capital expenditure and MVR 1.7 billion (US$110 million) for loan repayments, resulting in a deficit of MVR 2.7 billion (US$175 million) so far.

Of the recurrent expenditure, MVR4.48 billion (US$290 million) was spent on salaries and allowances for employees and MVR 4.2 billion (US$272 million) on office administrative costs.

In November, a mission from the International Monetary Fund (IMF) urged the government to implement a raft of measures to reduce spending and raise revenue with higher taxes and revised import duties.

The mission advised the government that taming the ballooning fiscal deficit was “the most pressing macroeconomic priority for the Maldives.”

“The fiscal deficit is expected to rise in 2012 to 16 percent of GDP [Gross Domestic Product] in cash terms, and likely even higher if one accounts for the government’s unpaid bills, accumulated in an increasingly challenging environment for financing,” the IMF mission stated.

In April 2012, the head of a previous IMF mission to the Maldives told Minivan News that the country’s fiscal deficit was “substantially understated” at less than 10 percent of GDP as projected in the 2012 budget, predicting a figure closer to 17.5 percent of GDP or higher.

“The large deficit has implied a rise in the public debt ratio, which now stands at over 80 percent of GDP, and has also helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on MMA [Maldives Monetary Authority] reserves,” the most recent IMF mission said in its statement.

Debt and deficit

In his budget speech to parliament last month, Finance Minister Jihad said total spending in 2012 was expected to be MVR 16.5 billion (US$1 billion) while revenues would reach MVR9.4 billion (US$609 million).

The revenue forecast in the 2012 budget was however MVR 11 billion (US$713 million).

“At the end of 2012, the state’s budget deficit is estimated to be at MVR 4.3 billion (US$278 million). That is 12.6 percent of GDP,” Jihad revealed.

According to the Finance Ministry, government spending on loan repayment and interest payments was expected to reach MVR 3.1 billion (US$201 million) in 2012.

Including an estimated MVR 13 billion (US$843 million) in domestic debt, the total public debt is expected to reach MVR 27 billion (US$1.7 billion) in 2012 and MVR 31 billion (US$2 billion) in 2013 – 82 percent of GDP.

As a result of financing budget deficits with loans for the past six years, ‘total external public and public guaranteed debt’ was estimated to reach MVR 13.7 billion (US$888 million) in 2012.

Moreover, the government spent more than MVR 1 billion (US$64.8 million) in 2011 and MVR 1.1 billion (US$71.3 million) in 2012 to service foreign debts as interest and repayments.

The figure was forecast to remain the same in 2013.

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Public must question government and Majlis representatives: UN resident coordinator

UN Resident Coordinator for the Maldives Andrew Cox has called on the public to be better informed of issues facing their communities, while listening “to different voices and views”, questioning elected representatives and making their voice “count” in a statement issued to mark Human Rights Day.

According to the UN, this year’s Human Rights Day is focused mainly on the Universal Declaration of Human Rights, which is said to outline provisions on freedoms of association, expression and opinion, as well allowing for participation within government either individually or through an elected representative.

Cox’s statement emphasised that millions of people worldwide had exercised these freedoms by taking to the streets, not just in trying to express their thoughts and aspirations, but to make sure their voice counted.

“Human rights are claims and expectations of every man, woman and child that their governments not interfere in some kinds of activities (respect); safeguard them from abuse (protect); and provide basic conditions to enable everyone to achieve their greatest potential (fulfill),” he stated.

Taking the Maldives as an example, Cox stated that like many democratic countries worldwide, it was vital that everyone was allowed to have a voice without exception – including women, persons with disabilities, children, and other vulnerable groups and marginalised communities.

“Every Maldivian has the right to have their voice heard and to have a role in making decisions that shape their local communities, as well as shape the Maldives into the kind of country they want to live in,” he said.

“As we approach an important election year in this country’s fragile path of democratic progress and development, I hope all Maldivians will make your voices count on the issues facing the well-being of your communities, especially women. Not realizing the full potential of women in public life is simply a loss that the country cannot afford at this critical stage.”

Cox also called on the public to better inform themselves of key issues affecting their lives and communities, as well as listening to differing opinions in order to be better able to held elected representatives on both sides of the country’s political divide to account.

“It’s your right,” he concluded.

Acting Minister of Gender, Family and Human Rights Dr Mariyam Shakeela, who also serves as Minister of Energy and Environment, was unavailable for comment when contacted by Minivan News today.

Her predecessor, Dhiyana Saeed, was sacked last month, shortly after her husband, MP Abdulla Jabir challenged the legitimacy of President Mohamed Waheed Hassan’s government, alleging the country was being run as a police state.

Saeed had previously alleged that the arrest of Jabir on an island along with senior figures from the opposition Maldivian Democratic Party (MDP) over alleged possession of drugs and alcohol had been “politically motivated”.

MDP criticism

Last month, the UN in the Maldives came under strong criticism from the opposition Maldivian Democratic Party (MDP), which claimed the local office of the NGO had remained “shamefully silent” over alleged human rights abuses flagged by other organisations.

“While the IPU, CMAG, Canada, the Human Rights Committee, the EU and certain international NGOs such as Amnesty International and the International Federation for Human Rights have expressed varying degrees of alarm at the Maldives’ backsliding on democracy and human rights, others including the UN Resident Coordinator and the Office of the High Commissioner for Human Rights have remained shamefully silent,” MDP spokesperson Hamid Abdul Ghafoor claimed at the time. “To remain silent in the face of injustice is to be an accomplice to that injustice.”

The Office of the UN Resident Coordinator later responded to the MDP’s allegations by defending its activity in the Maldives and reiterating its “strict impartiality toward political parties”.

“As a trusted partner, the UN has spoken repeatedly in public and in private over the course of several years and three governments on democracy, development, and human rights. Most recently, the secretary-general spoke of the need for political dialogue, national reconciliation, and respect for the constitution. He called on all parties to exercise maximum cooperation and restraint,” the NGO stated.

Back in July 2012, a Maldivian government delegation sought to defend the Maldives’ human rights record and commitment to the International Covenant on Civil and Political Rights (ICCPR) before the UN Human Rights Committee (UNHRC).

The delegation was questioned on a number of specific issues relating to alleged torture of prisoners, the use of judicial flogging as a punishment, freedom of religion – which is outlawed in the country – the death penalty and the conduct of the nation’s judiciary.

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MNDF retrieves eight survivors of capsized ‘Hihvaru’ boat, confirms two dead

The Maldives coastguard has this evening located a Sri Lankan vessel that picked up eight survivors lost at sea in Maldivian waters after their boat had capsized.  Authorities have also confirmed that two other passengers travelling on the capsized ship have died.

Maldives National Defence Force (MNDF) Spokesperson Major Abdul Raheem confirmed to Minivan News this evening that eight survivors who had been on the capsized boat, known as ‘Hihvaru’, were found safely aboard a Sri Lankan fishing vessel located 370 miles off Gaafu Dhaalu Atoll.

According to a statement on the MNDF’s website, one of the passengers confirmed to have died is a Maldivian national identified as Hassan Futha, a 76 year-old male from Rathafandhoo in Gaafu Dhaalu Atoll.

The MNDF has not identified the name of the other passenger, confirming only that the deceased was an expatriate and that eight other missing people from the ‘Hihvaru’ have been found and rescued by the Sri Lankan fishing boat.

According to the MNDF website, the ‘Hihvaru’ set sail from Male’ on November 28 at 7:00pm and was heading towards Huvadhu Atoll with 10 passengers aboard, including an 11 year-old boy. The boat was also loaded with goods to be taken to Huvadhu Atoll.

The MNDF said that two of the 10 passengers aboard were Bangladeshi nationals.  The coastguard had begun searching for the vessel on November 29 after it was first declared missing and was assisted by the Indian government.

Authorities confirmed in a statement yesterday that the Sri Lankan fishing boat had discovered the eight men hanging from the capsized boat 290 miles off the island of Dhaandhoo in Gaa Alifu Atoll.

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“Not afraid to die from the first bullet shot” – Nasheed calls to topple government from the streets

Former President Mohamed Nasheed has said his Maldivian Democratic Party (MDP) was now preparing to topple the current government of President Mohamed Waheed Hassan in a street rebellion.

Nasheed made the remarks in a rally held Sunday (December 9) on Ihavandhoo in Haa Alif Atoll during the MDP’s campaign trip ‘Vaudhuge Dhathuru’ (Journey of pledges).

The government has meanwhile dismissed the former president’s comments, accusing him of trying to generate media attention for himself, rather than mounting a serious threat to President Dr Mohamed Waheed Hassan’s administration.

Speaking to his supporters yesterday, Nasheed declared that he was “not afraid to die from the first bullet shot” by forces defending President Waheed’s government in the event of any proposed rebellion.

The former president claimed he had attempted diplomacy, while also being very patient since February’s controversial transfer of power.

However, he contended that all efforts undertaken by the party to help the country in its commitments to becoming a democracy were going astray.

Nasheed claimed that the MDP had previously avoided raising the idea of toppling the government from the streets, not because it was impossible, but rather that the party was waiting to do so with the spirit of the people.

“We waited till today not because it is not possible [to topple the government from the street].  [The MDP] wanted this to be a people’s movement that is built upon the views of the people,” he said.

Nasheed also expressed scepticism towards the current government’s commitment to hold free and fair elections and added that his party is not in the mood to hold “discussions” or “please” anyone.

He alleged the current government was not willing to hold a free and fair presidential election next year, adding that the majority of the Maldivian people now believed that the government was desperate to find a way to bar him from contesting the elections.

“There are no courts we could go to seek free and fair elections and justice. There is nobody we could go to and hold discussions on the matter. What is left with us is the people who are determined to not to give up,” he said.

Nasheed repeated his claim that the current government was illegitimate and had taken power through a “coup d’eat”.  Such a government, he said, would not be very committed to serving justice to the people.

Nasheed also challenged the military to load their arms if they have the courage to do so when he and “the people” take the matter to the street.

“MDP have gone beyond fear and [President] Waheed and Police Commissioner Abdulla Riyaz would know how the MDP have evolved,” he said.

The MDP presidential candidate also claimed that he would bring the matter to the attention of the world and said that neighbouring Sri Lanka and India would also be observing the issue.

Speaking to Minivan News, MDP Spokesperson MP Hamid Abdul Ghafoor said “it is not surprising to see MDP taking such a stand”.

“You would know, on February 8 – just a day after the coup – the MDP National Council declared that what happened on February 7 was coup, and the current government took power illegitimately. We have never changed that stand,” he said.

Hamid said the MDP had tried very hard to find a solution from the negotiation table but all its attempts had so far ended fruitlessly. Therefore, Hamid claimed the party had decided it was high time that the people of this state resort to “direct action” to seek a solution.

Minivan News understands that an urgent National Council meeting was scheduled right after president Nasheed made the remarks during the rally.

Media attention

However, President’s Office Media Secretary Masood Imad has claimed that Nasheed’s speech was merely an attempt to garner media attention rather than credibly challenge the government.

“Seriously, I don’t think it’s a matter of concern, I would rather not comment on the matter,” he told Minivan News.  “This guy is going around saying these things trying to get media attention.”

When asked about Nasheed’s allegations that the government was also attempting to stymie his attempts to run for re-election in 2013 by making him face a criminal trial, Masood added that the government was “committed to working within the framework of the law.”

“We have never once stepped outside of the law in the last seven months,” he said. “The road was tiring and long, but we walked it anyway and this should be reason enough both nationally and internationally to make people believe that we will walk that extra mile.”

Nasheed is currently facing trial over his role in the arrest of Criminal Court Chief Judge Abdulla Mohamed.

The government has previously distanced itself from any decision to arrest former President Nasheed, maintaining that any legal action taken against him would be done so by the country’s police and judicial authorities.

The Maldives judiciary is one of the areas highlighted as being in need of institutional reform, according to the the findings of the Commonwealth-backed Commission of National Inquiry (CNI).  The CNI report, released earlier this year, concluded that the Waheed administration had come to power legitimately during February’s controversial transfer of power.

The MDP has previously said it holds severe structural concerns about the CNI’s conclusions, but accepted the report had provided a “way forward” to push for institutional reform in areas such as defence and the judiciary.

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President Waheed hosts “humanitarian leader” Sri Sri Ravi Shankar in Male’

Additional reporting by Neil Merrett.

President Dr Mohamed Waheed Hassan has hosted a special dinner in Male’ to honour Sri Sri Ravi Shankar, a renowned Indian national who is described on his official website “as a humanitarian leader, a spiritual leader and ambassador of peace”.

At an official dinner held Saturday evening, Waheed presented a plaque to Shankar in appreciation of his humanitarian work, although he is not thought to have conducted any activities in the country to date.

The government has informed local media that during the function, Waheed praised Shankar for advocating peace, noting the high importance at present for the people of the Maldives to also work in the spirit of unity and peace.

Speaking to Minivan News today, President’s Office Media Secretary Masood Imad said he had received no information whether Shankar would be conducting any projects in the Maldives.

“I know his organisation has some experience working in the areas of drug rehabilitation and social work,” he said, adding that the Gender Ministry would ultimately be responsible for any projects conducted in these areas should they go ahead.

Under Maldivian law, it is illegal for Maldivians to practice any faith other than Sunni Islam in the country.  The public preaching of other faiths is also outlawed.

However, addressing Sri Sri Ravi Shankar’s claims of being a spiritual leader, Masood said that any attempts to make the visit a religious matter would be blowing the situation “out of proportion”.

“He has visited over 154 countries including Iraq and Egypt. There is a potential to let [Shankar] go back and talk about the Maldives in a nice way. That would be good for us,” he said.

Masood added that with Shankar having a strong number of supporters, which includes film makers, there was also a chance that high profile productions could be shot in the Maldives, promoting the destination further around the world and creating strong publicity for the country.

“Personally I have no problem with him being here. He is a social worker. It all depends on how you view him,” he added.

Local media has meanwhile reported (Dhivehi) that the President of the religious Adhaalath Party, Sheikh Imran Abdulla, had said that President Waheed’s meeting with Shankar should not be seen as a problematic issue.

“A person meeting with another person is never a problem. It is what is said or done in these meetings that could become a problem,” Sheikh Imran said.

He added that efforts were currently being undertaken to find out the exact nature of discussions during the meeting between Dr Waheed and Shankar, as well as the justification in the president deciding to meet a man “who is aiming to spread Hinduism”.

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Defence Minister departs on official visit to China

Minister of Defence and National Security Colonel (Retired) Mohamed Nazim departed to China today on an official five-day visit at the invitation of the Chinese Minister of National Defence.

In a press release today, the Defence Ministry revealed that Nazim is due to hold official talks with the Chinese Minister of National Defence General Liang Guanglie and meet members of the Chinese central military commission.

“During his visit, the Defence Minister will hold meetings with China’s National Defence University, Military Medical University and Shanghai Institute for International Studies as part of his efforts to seek further opportunities for education in China,” the press release stated.

The official visit would further enhance Sino-Maldives “defence and military ties” and secure Chinese assistance for developing the Maldivian military, the Defence Ministry said.

The Defence Minister’s official visit to China follows last week’s termination by the government of a 25-year concession agreement with Indian infrastructure giant GMR to modernise and manage the Ibrahim Nasir International Airport (INIA).

The move fuelled speculation in the Indian media of a Chinese role in the government’s decision to void the agreement and evict the GMR-led consortium.

“Looking at the political situation and political framework in Maldives, I can’t rule out anything,” GMR Airports chief financial officer ( CFO) Sidharth Kapur told journalists in New Delhi last week.

In November 2011, China became the first non-SAARC nation to open an embassy in the Maldives. AFP at the time reported Indian officials as expressing concern that it was “part of a Chinese policy to throw a ‘string of pearls’ – or a circle of influence – around India.”

Meanwhile, the Hindu reported today that President Dr Mohamed Waheed Hassan Manik has dismissed suggestions that China urged the Maldives to push out the Indian company.

“The only significant cooperation we have with China at this time is through development assistance… like building the museum, housing projects. I don’t think India should worry about it at all,” Waheed was quoted as saying.

The President further claimed that the Maldives was presently “not looking for a foreign investor” to develop the international airport, with the government yesterday announcing it was undecided on whether any new privatisation agreement would be sought in future.

However, officials from India’s External Affairs Ministry told the Indian Express on condition of anonymity that “China was keen to get a foothold in the Male’ airport asset as a base in the Maldives would put the dragon state in control of the oil routes in the region and give it greater dominance over sea lanes.”

India’s Economic Times meanwhile characterised the cancellation of the contract as a “strategic loss” for India.

Following an official visit in August, President Dr Mohamed Waheed Hassan Manik told Reuters that China pledged to grant the Maldives US$500 million (MVR 7.7 billion) in loans, equal to nearly one quarter of the Maldives’ GDP.

President’s Office Spokesperson Masood Imad told The Hindu a day before the airport handover that the government would again float a tender for its modernisation “and get more parties in to take the work forward.”

“The tender will be floated by the Maldives government in a transparent manner and after consulting investors. The mistakes made during the float of the tender which has been cancelled will not be repeated,” Imad told the paper.

Environment Minister Dr Mariyam Shakeela has meanwhile separately appealed to China for financial and technical support, telling journalists from the Chinese government’s authorised web portal China.org.cn that the Maldives “needs funds for infrastructure building.”

“We are obviously in need of funds and technical assistance as we do not have the financial means, the technical know-how or the capacity to address these huge climate change issues,” said Dr Shakeela, in an appeal for assistance with climate adaptation.

Minivan News has learned that senior Chinese military officials landed at the airport in the tense week leading up to the handover.

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