Vote-buying, political polarisation, credibility critical challenges for 2013 elections: Transparency Maldives report

The 2013 presidential elections are set to unfold “against a context of uncertainty, crises of political legitimacy and unprecedented levels of political polarisation,” Transparency Maldives has stated, in an extensive pre-election assessment published on Thursday.

“The latter is characterised by mistrust, categorical negative framing of one another and by the lack of self-accountability of institutions, politicians and their parties for their role in the existing political crises. The electoral background is therefore discouraging,” Transparency noted.

The detailed report identifies key challenges in the lead up to the election, such as the candidacy of former President Mohamed Nasheed, lack of monitoring of campaign financing, an extensive and entrenched culture of vote buying, and a media establishment set on fueling personality politics and further polarisation.

“The upcoming Presidential Elections are currently headed to unfold against this political context of crisis of legitimation, uncertainty of democratic transition, existing polarisations and other challenges that have been aggravated by the controversial transfer of power on 7 February 2012,” Transparency states.

“Bitter zero-sum game”

Political polarisation in the Maldives has grown in the wake of the failed all-party talks and events of February 7, leading to bitter mistrust between political factions and the pervading sense among parties that the loss of the upcoming elections “could amount to losing everything”.

“Political polarisation is characterised by mutual mistrust and radical negative categorisation of people, politicians, political parties and, sometimes, entire institutions,” Transparency notes.

“It’s characterised by the lack of self-reflective criticism, by the failures to hold one’s own self and party to account, and the inability to listen to and compromise for the callings of the other side. It’s also characterised by an apparent struggle for political power as a bitter zero-sum game.”

As a result of this polarisation, the limited space for public debate on urgently-required public policies and programs continue to be “colonised by demagogic appeals to religio-nationalist sentiments, empty motifs, and outlandish electoral promises never intended to be delivered,” Transparency stated.

“Similarly, as the polarisation is symbolised by political personalities, political debate is likely to center on personalities as opposed to issue-based discourse.”

Particular challenges around polarisation include a “lack of cooperation and dialogue among major political parties, opening up space for intolerance and violence”, “a possibility of contestation of elections results, especially if the victory is through a narrow margin”, and the risk that even if the election results are respected, “a significant segment of the polity might reject the incoming president as the representative for all the people in the true democratic spirit required in defeat.”

Transparency called for restraint among parties, appealed for policy debates, and extensive and long term observation on behalf of the international community.

Nasheed’s candidacy

Transparency stated that most of the people and institutions interviewed for the report, “irrespective of their political affiliations”, saw the potential disqualification of Nasheed from the presidential race through the ongoing court proceedings as “a major challenge” for the elections.

“None of the major political actors Transparency Maldives met was eager for disqualification of President Nasheed, although some qualified their position saying that rule of law must apply equally for all and he must face justice.

“A few major stakeholders believed it was politically motivated. A politician of a major political party saw any election victory for them without President Nasheed as a rival candidate as just a “hollow victory”.”

Should Nasheed be prevented from contesting on behalf of the Maldivian Democratic Party (MDP), Transparency predicted political violence in the run up to the elections marring the electoral environment, boycott of the elections by the MDP, outright rejection of elections results and the incoming president by the MDP, and widespread disruptions to the elections themselves: “Transparency Maldives heard suggestions it would be altogether impossible to hold elections in some parts of the country.”

In light of controversy surrounding the judicial legitimacy of the proceedings against Nasheed, Transparency backed international calls for an inclusive election.

“As an elections-observing NGO, Transparency Maldives is of the view that if any potential presidential candidate is prevented from the Presidential Elections through a controversial process, the credibility and democratic representativeness of the elections will be called into question.

“Several international bodies, including most recently the UN Special Rapporteur on Independence of Judges and Lawyers, have criticised the state of the judiciary. There are deep disagreements as to the legitimacy of the Hulhumale’ Magistrate Court and the special bench of judges appointed to oversee President Nasheed’s trial. Some of the members of the Judicial Service Commission have openly questioned the legality of appointing a special bench. All these reasons give room to doubt the judicial processes,” Transparency stated.

“Crucially, even if elections can be held [without Nasheed], the incoming president will face immense legitimacy challenges, as is the case with the current government. Democracy consolidation is impossible under a context where legitimacy [of the government] is contested by a substantial segment of the population. Thus, key to successfully addressing the ongoing legitimation crisis is holding elections in which candidates of all major political parties are free to contest,” Transparency added, calling for the government, the elections commission, prosecutor general, judicial services commission, judiciary and human rights commission to ensure no presidential candidate is prevented from contesting.

Buy-election fears

Transparency identified vote buying as key issue in the lead up to the election.

“The issues of vote buying and influencing voters through patronage seem to have had a long history in the country,” the report notes.

Transparency enlisted focus groups to study the issue on Fuvahmulah, Kaashidhoo, and Hulhudhuffaar to try and identify why the practice was so accepted.

“A crisis of confidence in candidates’ sincerity to deliver on their electoral promises could be one of the main reasons why many people take offers. Almost all the participants in the discussions thought the candidates would not bother about them or their community post-elections, or after winning the elections. ‘They would not even answer their phones’ was a common retort,” Transparency noted.

“There are particularly vulnerable groups of people who are targets of vote buying. Youth groups who are victims of drug addiction, for example, could be offered drugs, money to buy drugs, or drugs at discounted rates, in exchange of their votes. Similarly, the less disadvantaged people, people in need of medical treatment, or the more elderly, seem to be particularly vulnerable to vote buying.

A weak elections complaints system and loopholes in the electoral legal framework “mean there is no effective deterrence against vote buying. Criminalisation of taking bribery in exchange of votes in the Penal Code also hinders reporting.”

“Finally, civil society or the EC has so far failed to even successfully thematise and problematise vote buying in the public sphere, and therefore there is a need for greater awareness on the issue among the people.”

Transparency studied the Kaashidhoo by-election, during which “vote buying reached new highs”.

“We were told by campaign agents involved in the respective campaigns that the two main candidates spent more than MVR7 million (US$454,000) an amount double the total spending limit under the law for Kaashidhoo constituency of 2231 voters.”

“In contrast, the much less populated Hulhudhufaar, vote buying took place more sparingly and discreetly. In Fuvahmulah, we were told, one candidate did not even have to campaign, but visited the island a week or so before the election and just distributed cash to his constituency.”

At the same time, most participants of the focus groups – particularly women – said that people did not necessarily vote for the candidates from whom they took money.

“There are two possible reasons why people might not vote for the candidates even if they receive offers from them: there is a general confidence in the secrecy of vote since 2008 Presidential Elections, and there is little or no fear of post-election reprisals from candidates,” Transparency stated.

“Some of the few people, who thought people vote as they take offers, ironically cited religious reasons in keeping a promise. However, some participants reported that candidates/agents influence people to show proof of their vote. Thus, some smuggle mobile phones with cameras into voting booths to take photos of their voted ballot papers or some even showed their ballot papers to representatives of candidates at the polling stations.”

Transparency suggested decriminalisation of acceptance of offers to increase people’s willingness to come forward and report the practice, while calling on the elections commission and other authorities to create an interagency task force to tackle the problem and prosecute those making offers. It also called for greater voter education, particularly surrounding vote buying and the practice of assisted voting.

Elections commission

The Transparency report details some concerns about the capacity of the elections commission, in particular the relationship between the commission members and the technical staff.

At the same time, “No major political party or key stakeholder questioned the independence or impartiality of the EC as an institution. No such allegation was also made against any Commission members with regard to any election.”

“A few interlocutors, however, questioned the impartiality of some of the members of the EC and some staff, and cited instances. Several interlocutors also expressed concern there existed such allegations, especially made by the staff, against some members.”

“There could be challenges to the EC to act impartially and independently in a highly polarised political environment, as members are likely subjected to external pressures. This could be aggravated by the fact that a simple majority of those present and voting in a parliamentary sitting could remove a member of the EC. While some interlocutors believed there was a possibility of removal of some members in the run up to the elections, the fact that no political party has a majority in the People’s Majlis means that removal requires cross-party cooperation, which might not be forthcoming.”

Given the charged nature of the election, training and recruitment of non-partisan polling staff was emerging as a challenge, Transparency noted.

“Another common concern by several of the interlocutors we met was that some polling workers acted in partisan manner. Transparency Maldives’ own observation, however, found polling workers were largely unbiased in the last Local Council, Parliamentary and the Presidential Elections.

“Nonetheless, with the current levels of political polarisation and shortcomings of the legal framework that allows politicisation of civil servants, the EC will find it extremely challenging to recruit nonpartisan polling staff for the upcoming elections,” Transparency stated.

Despite the many challenges outlined in the report, Transparency noted that the success and credibility of past elections – including by-elections held subsequent to the events of February 7, 2012 – gave cause for hope.

“Maldivians have in the past shown they do respect the outcomes of free, fair and inclusive elections. The upcoming elections therefore give hope. Yet to convert hope into reality requires realisation of the tri-values of freedom, fairness, and inclusiveness for the upcoming elections.

“Assuring freedom for the upcoming elections requires sustaining an electoral environment for voters to freely choose a president without fear, intimidation, and undue influence, but through the opportunities to fully exercise freedom of expression, association and assembly.

“Fairness at a minimum requires a level playing field. Thus, the existing culture of misuse of public resources by the incumbency to their electoral advantage must stop.

“Inclusiveness requires ensuring an electoral context for all to participate in elections, and ensuring that no potential presidential candidate is prevented from contesting the Presidential Elections through any questionable processes.”

Read the 2013 pre-elections assessment

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Nasheed’s lawyer arrested in Addu City

Former President Mohamed Nasheed’s lawyer has been arrested by police in Addu City after allegedly disobeying police orders on Wednesday night (March 27).

Hisaan Hussain, who is part of Nasheed’s legal team, told local media that she had been arrested shortly after her husband was detained by police earlier in the evening.

Local media reported that police had conducted an inspection at Hithadhoo Kalhibis beach barbecue area following reports that people had been intoxicated in the area.

According to Hisaan, her husband had been arrested after he had questioned the actions of the police when they turned up to the family event.

Hisaan claimed that she was then later arrested when she went to Hithadhoo Police Station to submit a request to act as her husband’s lawyer.

The Maldivian Democratic Party (MDP) has since claimed that the arrest of Hisaan – who has now been released by authorities along with her husband – was a direct attempt by police to intimidate Nasheed’s lawyers.

“We see it as pure harassment. The Police are trying to intimidate lawyers who represent the MDP and President Nasheed. It is extremely disturbing that the police have again displayed their complete disregard to the law.

“We urge the Police and the Police Integrity Commission to look into the matter and take urgent action against those officers who continue to violate the law & brutalise Women,” President Nasheed’s spokesperson MP Mariya Didi claimed.

Contrary to reports in local media, a statement from the MDP claimed that police had searched the area under a law relating to gang violence.

The MDP statement further claimed that Hisaan, who is 24 weeks pregnant, had been pushed to the ground by police, while her husband was punched in the face by an officer.

Police Spokesperson Chief Inspector Hassan Haneef was not responding to calls or text messages from Minivan News at time of press.

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US to provide Maldives with cost-free border control system

The US government has signed a Memorandum of Understanding (MOU) with the Maldives government to provide it with a border system after several years of uncertainty and legal wrangling over the future of the country’s immigration controls.

Defence Minister Mohamed Nazim and US Ambassador to Sri Lanka and the Maldives Michele J Sison signed an MOU that will see a US technical team coming to the country next month to begin work on planning and implementing a new border system, according to local media. The system is scheduled to be installed by June this year.

Speaking to Minivan News , Immigration Controller Dr Mohamed Ali said it was too early to tell if the new border controls would be a direct replacement for the system provided by Malaysia-based IT group Nexbis.  Nexbis is currently awaiting a decision by higher courts in the Maldives over whether anti-corruption authorities have the right to terminate its agreement with the government.

“We will have to see [what the agreement means for the government’s concession agreement with Nexbis]. Details need to be worked out,” stated Dr Ali, who did not elaborate further.

Immigration sources had told Minivan News earlier this month that the country faced a potential return to “pen and paper” border controls should the government be made to cancel its agreement with Nexbis without an adequate replacement.

The Nexbis border control system is still presently in use by immigration officials at Ibrahim Nasir International Airport (INIA), after the Supreme Court issued an injunction halting the scrapping of the controversial system by parliament.

Cost-free system

Defence Minister Nazim said that the system proposed under the MOU would be provided free of charge to the Maldives in a move he estimated would save the country MVR500 million (US$35 million), according to Sun Online.

Local media reported that the border controls would be based around its Personal Identification Secure Comparison and Evaluation System (PISCES).  The same technology is reported to be used not only at US airports, but in a number of other countries including Pakistan, Afghanistan, Iraq and Thailand.

Maldivian staff are also expected to receive training on using the biometric-based system, as well as assistance with any expansion to the system in future, Sun Online has reported.

Prior to the announcement of the MOU, former Immigration Controller and now State Defence Minister Ilyas Hussain Ibrahim was quoted in local media as raising concerns that US involvement in the border control system would allow the country to exert its influence on Maldivian affairs.

Ilyas told the Channel News Maldives publication that the system would serve to provide a “door for American influence” by allowing the US to take control of the system and use it to locate foreign nationals whenever it wished.

When contacted by Minivan News today, Ilyas said he did not have any comments on the matter as he was no longer involved with the immigration department, and requested any questions be forwarded to Defence Minister Nazim.

However, Nazim asked that any questions regarding the system be sent to him by email. Minivan News was awaiting a response at time of press.

Earlier this month, outgoing Indian High Commissioner Dnyaneshwar Mulay formally handed over a new Advance Passenger Information System (APIS) to immigration authorities at INIA that was designed to provide passport information and other details of incoming travellers before their arrival.

The system was not intended to be a direct replacement for the existing border control system provided by Nexbis, authorities said at the time.

Nexbis

Nexbis is currently involved in legal wrangling over whether the Maldives’ Anti-Corruption Commission (ACC) has the power to compulsorily request the government to cease all work in relation to the border control system agreement.

While refuting allegations of any corruption or wrongdoing in being awarded a contract under the previous government to install and operate a border control system for the Maldives, Nexbis earlier this year said it would not rule out criminal involvement behind attempts to “sabotage” its contract with the government.

However, a source with knowledge of current immigration practices had previously said no alternative border control system was available should the government terminate its concession agreement with Nexbis.

“So far we don’t have any alternative to the [Nexbis] system going forward. We are using the system and waiting for the courts to decide. However, if the court decides [in favour of the ACC], we will need a new system in place,” the source told Minivan News. “Without [an alternative], the system would go haywire. A replacement would have to be found. We cannot go back to the 1970s and just use books and paper.”

Minivan News was awaiting a response on the MOU from Nexbis’ local legal representatives at time of press.

Human trafficking

The MOU has been signed at a time when the Maldives has come under increasing scrutiny regarding its immigration control.

The country has appeared on the US State Department’s Tier Two Watch List for Human Trafficking for three years in a row.

Back in January this year, the Ministry of Foreign Affairs inaugurated an initiative aimed at raising awareness of human trafficking issues in the Maldives.

Despite these commitments, the Human Rights Commission of Maldives (HRCM) has accused state and private sector employers in the country of lacking consistency in their efforts to address human trafficking, preventing “real” change in controlling illegal migration.

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“We met Brigadier General Didi at MNDF Headquarters the night the judge was arrested”, police tell court

Two police witnesses presented to court by the prosecution against retired Brigadier General Ibrahim Mohamed Didi have said they met Didi inside the Maldives National Defense Force (MNDF) Headquarters the night Chief Judge of the Criminal Court Abdulla Mohamed was taken into military detention.

Ibrahim Didi is charged for the controversial military detention of Chief Judge of Criminal Court Abdulla Mohamed in January 2012.

Along with Didi, former President Mohamed Nasheed, his Defense Minister Tholhath Ibrahim Kaleyfaanu, former Chief of Defense Force retired Major General Moosa Ali Jaleel and Colonel Mohamed Ziyad are all facing the same charges, of arbitrarily detaining an innocent individual as stipulated in article 81 of the Penal Code.

Article 81 of the Maldives Penal Code states: “It shall be an offense for any public servant by reason of the authority of office he is in to detain to arrest or detain in a manner contrary to Law innocent persons. Persons guilty of this offense shall be subjected to exile or imprisonment for a period not exceeding 3 years or a fine not exceeding MVR 2,000.00.”

Didi however denied the charges levied against him during the first hearing of the trial, contending that he should not be facing charges as an individual for an act carried out by the then Defence Ministry.

The former Brigadier General claimed that the charges levied against him by the state were unfair and raised question over the credibility of the witnesses presented by the state against him. He also argued that the arrest was made by the Defence Minister under the direct orders of the president, and that he had no role to play in it.

During the hearing of the trial held at Hulhumale Magistrate Court on Wednesday, two witnesses, Police Sergeant Hassan Irash and Police Lance Corporal Ibrahim Hameed, told the court that they had met the former Male Area Commander at Bandaara Koshi together with a group of police officers.

Sergeant Irash claimed that he and the group of police officers including Lance Corporal Hameed went to the MNDF headquarters on the order of former Police Superintendent Mohamed Jinah. He added that Didi met the group and had asked whether they were the police.

However, Lance Corporal Hameed claimed that he did not know whose order the group of police officers were following, when they were on their way to the MNDF headquarters on the night of February 6, 2012.

State prosecutors did not disclose what they were trying to prove through the witness statements given by the two police officers.

Prior to the witness statements, Didi’s defence lawyer Ismail Wisham took a procedural point contending that the two police officers was not required to be brought before the court to give evidence.

This, he said, was because neither of the two statements given by the two officers had anything to do with the arrest of the judge and therefore, their statements did not carry any weight.

Dismissing the point, State Prosecutor Aishath Fazna Ahmed contended that the defendant’s lawyer had not objected to the list of witnesses presented to the court during the first hearing.

She also argued that debate on witness statements would take place after all the witness statements had been made in court and added that the state wished to prove certain elements through a combination of multiple witness statements.

Deciding on the matter, the panel of judges concluded that every party under the constitution was entitled to submit as much evidences as they could, and that therefore the court had decided to take evidences from the two police officers in a bid to respect that constitutional right.

The court concluded the hearings announcing that another would be scheduled on March 31 (Sunday).

Judge Abdulla Mohamed was taken into military custody in January 2012 after the former Home Minister Hassan Afeef wrote to Defense Minister Tholhath asking him arrest the judge, stating that he posed a threat to both the national security of the country and a threat to the country’s criminal justice system.

Minister Afeef at the time of the judge’s arrest accused him of “taking the entire criminal justice system in his fist”, listing 14 cases of obstruction of police duty, including withholding warrants for up to four days, ordering police to conduct unlawful investigations and disregarding decisions by higher courts.

Didi was the Male Area Commander at the time the arrest took place.

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Court sentences Humam for six years on charges of using cannabis

Criminal Court has sentenced Hussain Humam of Henveiru Lobby House, who was arrested in connection with the murder of late MP Dr Afrasheem Ali, to six years’ imprisonment on two counts of using cannabis.

The Criminal Court ruling stated that in May last year Humam was arrested by a patrolling officer on suspicious of being intoxicated. Police officers tested his urine which was tested positive for cannabis, police said.

The court said that Humam has confessed in court to using cannabis.

The Court said that in October 2012, Humam was arrested while he was near Jalapeno Restaurant on suspicion that he was intoxicated.

Humam was brought to Male’ Custodial by patrolling officers and his urine tested positive to cannabis,\, the criminal court said.

According to the Criminal Court, Humam  confessed to using cannabis in the court during the trial.

Last month the Criminal Court sentenced Humam to one year imprisonment after the court found him guilty of refusing to provide a urine sample for a drug test.

The Court said Humam has violated the 17/2011 Drug Act’s article 113[a] and was therefore sentenced under 113[b] of the Drug Act.

The trial of Dr Afrasheem’s murder case is still going on in the Criminal Court. Humam is the only person to be charged in the case.

Humam is also charged in another case for allegedly attacking a police officer. He has denied the charges in court.

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President Waheed calls on Maldivians to improve conditions of expatriate workers

President Mohamed Waheed Hassan Manik has called upon Maldivians to “do everything possible” in order to improve the working conditions of Bangladeshi expatriate workers in the Maldives.

Speaking at a function to mark the Bangladesh Independence and National Day on Tuesday (March 26), Waheed stated that Bangladeshi expatriate workers make a huge contribution to the economic growth and development of the Maldives.

Acknowledging to the fact that Bangladesh accounts for the largest group of expatriate workers in the Maldives, President Waheed stated the importance of reflecting on the conditions of foreign workers in the country.

“Let me reiterate here the government’s unfailing commitment to ensure the rights of the expatriate workers in the Maldives are fully protected in accordance with the relevant laws of the Maldives.

“I take this opportunity to appeal to my compatriots in the Maldives to reflect on this current condition and do everything possible to improve the working conditions of our brothers and sisters and to ensure that their rights are always guaranteed,” said Waheed.

In 2010, it was claimed that the exploitation of foreign workers in the Maldives rivals fishing as the most profitable sector in the Maldivian economy after tourism.

High Commissioner of Bangladesh Rear Admiral Abu Saeed Mohamed Abdul Awal said that the commission was working closely with the Maldives government to address the issue.

Awal stated that the commission is dedicated to ensuring the treatment of expatriate workers by Maldivian employers, adding that the working conditions and rights of the employees need to be protected.

Last month, the head of Maldives Association of Construction Industry Mohamed Ali Janah alleged that almost half of all foreign employees in the construction industry were thought not to be legally registered.

A report on human trafficking in the Maldives saw the country remain on Tier 2 of the US State Department’s Watch List for Human Trafficking for the third year in a row, only narrowly avoiding a decent to Tier 3 – the most severe category.

Various government ministries claim to have stepped up efforts to address the problem in the past few months in the build up to this year’s human trafficking categorisation by the US State Department.

In January, President Waheed expressed concern about the rising number immigrants in the Maldives, claiming that the “foreign influence” threatens the country’s “Maldivianness”.

In regard to a potential decent to Tier 3 of the US State Department’s human-trafficking watch list this year, Waheed warned that the Maldives would face difficulties in seeking foreign assistance should it slip to the most severe category.

Speaking at the function on Tuesday night, President Waheed said that in order to become a modern democracy, Maldives must follow the “democratic experience” of Bangladesh and other developing countries in order to learn from their experience.

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Preliminary hearing on GMR-Maldives arbitration case scheduled for April 10 in London

The preliminary hearing of the arbitration case concerning the government’s voiding of its concession agreement with Indian Infrastructure giant GMR is scheduled to take place on April 10 in London, reports local media.

On February 3, the parties announced the appointment of arbitrators for the case.  According to the Attorney General’s office, the Maldives will be represented by Singapore National University Professor M Sonaraja, while former Chief Justice of the UK, Lord Nicholas Addison Phillips, will represent GMR.

The arbitrator mutually agreed by both GMR and the government is retired senior UK Judge, Lord Leonard Hubert Hoffman.

Speaking to the newspaper, Deputy Solicitor General Ahmed Usham said that the meeting will take place at the presence of three arbitrators appointed to hear the case along with lawyers representing the government of Maldives, Maldives Airports Company Limited (MACL) and GMR.

“It is not an official hearing of the arbitration case. It is a hearing in which a date for the commencement of the hearings would be agreed and to agree as to how the case should proceed. Decisions concerning how the proceedings should take place will be agreed,” Usham told Haveeru.

He also said that although the preliminary hearing was to take place in London, the official hearings of the case will be heard in Singapore.

In 2010, GMR-Malaysia Airports Holdings Berhad (MAHB) consortium, government of former President Mohamed Nasheed and Maldives Airport Company Limited (MACL) entered into a 25-year concession agreement worth US$511 million (MVR 7.787 billion) – in which the GMR-MAHB Consortium was contracted with the management and upgrading of Ibrahim Nasir International Airport (INIA) within the 25 year contract period.

However in November 2012, the government of President Dr Mohamed Waheed Hassan Manik declared the developer’s concession agreement void and ordered it to leave the country within seven days.

A last minute injunction from the Singapore High Court during arbitration proceedings was overturned on December 6, after Singapore’s Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

GMR is seeking US$800 million in compensation for the sudden termination, while the Maldivian government is contending that it owes nothing as the contract was void ab initio – meaning the contract was invalid from the outset.

Should the argument of void ab initio fail, the government have claimed that its second legal ground on which it would argue in favour of termination of the contract would be that the contract had been ‘frustrated’.

‘Frustration of a contract’ is an English contract law doctrine which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party’s principle purpose for entering into the contract.

“The government has given a seven day notice to GMR to leave the airport. The agreement states that GMR should be given a 30 day notice but the government believes that since the contract is void, it need not be followed,” said Attorney General Azima Shukoor at the time of announcement of the contract.

The awarding of the bid in 2010 was overseen by the World Bank’s International Finance Corporation (IFC), which the Waheed government has accused of being “negligent” and “irresponsible”.

Should the matter be decided in the government’s favour, uncertainty remains as to the potential impact on foreign investor sentiment given the prospect of sudden asset seizure under the ‘void ab initio’ precedent.

If decided in GMR’s favour, the outcome of the case could potentially see the Maldives facing sovereign bankruptcy, with millions of dollars in additional debt emptying the state’s already dwindling reserves, crippling the country’s ability to obtain further credit, and potentially sparking an economic or currency crisis.

In December 2012, the Maldives government paid back US$50 million to the State Bank of India, after it refused to extend the period of the treasury bonds issued by the bank during the previous government. India has called in further installments of US$50 million, forcing the government to draw on the state reserves.

Finance Minister Abdulla Jihad has said the government is yet to come to an arrangement to pay the next US$50 million installment to SBI, explaining that the money will have to come from the Maldives Monetary Authority (MMA).

“The US$50 million due in February will have to be paid from the reserve. We have been ordered to pay the amount. There has been no change to the order so far. So it must be paid,” Jihad told local media at the time.

At the start of 2013, state reserves had shrunk to MVR 4.9 billion (US$317.7 million), according to the MMA.

“Gross international reserves at the MMA have been declining slowly, and now account for just one and half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” an International Monetary Fund (IMF) delegation observed during a mission to the Maldives in November last year.

Moreover, one of GMR’s lenders, Axis Bank, is also seeking the repayment of loans for the airport project, which were guaranteed by the Ministry of Finance and approved by the Attorney General’s Office under the former government.

Attorney General’s office was not available for a comment at time of press.

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DRP party congress scheduled for April

Dhivehi Rayyithunge Party (DRP) has announced its party congress is to take place between April 23-25, local media has reported.

DRP Spokesperson Zeena Zahir told local media that the congress had initially been scheduled for March, but was later cancelled due to the unavailability of the Dharubaaruge conference centre.

“We will be able to conduct it [congress] next month. Male’ City Council has notified us with a letter that Dharubaaruge will be available for that date,” Zeena was quoted as saying in local media.

The party is to hold elections for two deputy leader positions, youth wing leaders and women’s wing leaders during the congress.

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FDA close two pharmacies in Male’ for failing to reach authority’s standards

Maldives Food and Drug Authority (FDA) has ordered the closure of two pharmacies in Male’ after they failed to meet the authority’s standards.

An FDA official told local media that both Point Three Pharmacy on Sosun Magu and Furadhaana Pharmacy on Maaveyo Magu were ordered to close on March 23.

Point Pharmacy Chief Executive Officer Hamza Gasim said that Point Three Pharmacy was forced to close after the FDA found medication stored in pharmacy’s toilet, local media reported.

According to Hamza, only ointments and bandages had been kept in the toilet block, and that no ingestible or injectable medication had been stored there.

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