Day: June 8, 2013

President Waheed returns from Palestine visit

President Dr Mohamed Waheed has returned to Male’ today after an official visit to Palestine, where he chaired the 4th International Islamic Conference of Bait Al Maqdis.

Dr Waheed used his visit to hold talks with Palestinian President Mahmoud Abbas on extending relations between the two nations, while also visiting key local sites such as Birzeit University.

Speaking at the university on Wednesday (June 5), President Waheed discussed a number of issues such as climate change and its impact on development in the Maldives.

He also talked to students concerning consolidating democratic change in the Maldives, according to the President’s Office website.

Whilst chairing the Islamic conference during his visit, President Waheed pledged the Maldives’ continued support to finding a two-state solution to ensure peace between Palestine and Israel.

He also reiterated the Maldives’ position backing the establishment of the State of Palestine with East Jerusalem as its capital from lands occupied in the 1967 war.

Ahead of the conference, Dr Waheed was presented with the ‘Star of Palestine’ by President Mahmoud Abbas on June 4 in recognition of his efforts to strengthen relations between the two countries, the President’s Office website has said.

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Police grant 710 officers permission to grow beards following regulation change

Over 700 policemen have been issued permission slips to grow their beards, local media has reported.

710 police officers requested permission to grow their beards following the amended dress code published in the government gazette on May 30, 2013.

Although the rules regarding beard growth were not specified in the gazette, police “urgently” amended the regulations to allow beard growth up to two centimeters.

Police officers issued permission slips will be required to photograph themselves after seven days.

“After that they will be granted permission to grow their beards,” a police spokesperson told local media.

Bearded police will then be issued an identity card, however the recipients will not be allowed to make any alterations to their beards while the card is valid.

Uniform regulations for Maldives National Defence Force (MNDF) officers were also amended June 1 to allow military personnel to grow beards up to two centimeters.

Soldiers who chose to grow their beards must also obtain permission and are required to take a vacation until their beards are fully grown, MNDF Spokesperson Colonel Abdul Raheem told local media.

Defence Minister Mohamed Nazim previously told local media that the decision was made after requests from MNDF officers, on the grounds of religion and human rights.

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Raajje TV alleges Maldives Broadcasting Commission warning “biased”

Raajje TV claims a warning issued to them late last week by the Maldives Broadcasting Commission was biased, given their lack of transparent procedures for determining code of conduct violations.

“The Maldives Broadcasting Commission (MBC) sent a letter to Raajje TV last Thursday (June 6) saying the news aired on 23 February 2013 violated their code of conduct,” Deputy CEO of Raajje TV Yamin Rasheed told Minivan News today (June 8).

“Raajje TV strongly believes the commission’s decision is biased and will appeal to Maldives Media Council (MMC), the highest authority,” Rasheed stated.

MBC investigated a complaint that Raajje TV “broadcast false information” when its news-ticker displayed information that the Progressive Party of Maldives (PPM) had called on its members to slaughter Maldivian Democratic Party (MDP) members, Sun Online reported.

The commission’s investigation concluded that Raajje TV violated the code of practice by “showing images, sounds or texts of content that might damage a person’s dignity or is demeaning in nature”, as stated in articles 3(a), 5(a) and (b), according to local media.

“The ‘caution’ [letter MBC issued] is a warning. If that repeats they will take actions within broadcasting law, which might include temporary suspension of Raajje TV’s broadcast licence,” Rasheed explained.

He believes that MBC’s investigative decision making process is bias, because there is no transparent procedure for determining [code of] conduct violations.

“It is not clear how they concluded these statements, there is no clear procedure, it is not publicly announced,” said Rasheed. “I don’t know how they came to that conclusion.”

“We trust our journalists to report what they hear and see as true, they report the facts,” he stated.

Regarding the February 23 broadcast in question, Rasheed explained that “PPM officials called the MDP a terrorist group at that rally, we have the recorded footage.”

“Yet we don’t know what the opposition submitted against us, we don’t know specifically what the MBC is concerned about [regarding the code of conduct],” said Rasheed.

Rasheed claimed that MBC had “done nothing” in regard to code of conduct violations committed by Television Maldives (TVM), Villa TV (VTV), DhiTV and their sister network DhiFM, which “shows their bias”.

“DhiTV and VTV are constantly harassing politicians, for example saying Nasheed is anti-religious and many other things against him. DhiFM has shown pornographic footage, while the state broadcaster TVM has shown anti-social footage related to Maldivian culture of couples kissing, which is illegal,” alleged Rasheed.

VTV is owed by resort tycoon and Judicial Services Commission (JSC) member, Jumhoree Party (JP) Leader and MP Gasim Ibrahim.

DhiTV and DhiFM are predominantly owned by Champa Mohamed Moosa, a prominent businessman and resort owner in the Maldives.

In March 2013, MBC called for the Maldives Media Company, which owns DhiFM Plus, to air a statement of apology without any reservations from the station for violating the broadcasting code of conduct after allegedly airing pornographic content during a late night news show.

In July 2011, MBC reprimanded DhiFM for repeated use of “indecent language” during programmes aired by the radio station and simultaneously broadcast live by sister network DhiTV in its “visual radio” segment.

The Maldives Broadcasting Commission, as well as its Vice President Mohamed Shahyb, were not responding to calls at time of press.

Maldives Media Council support

Raajje TV plans to appeal the MBC warning with the MMC on Sunday or Monday, according to Rasheed.

“The only thing we see from MBC is the intention to penalise media,” claimed Rasheed.

Conversely, Rasheed praised the MMC for their positive interactions with and support of free press in the Maldives.

“The media council is our parental body, was elected from within the media groups, and is more independent than the commission,” said Rasheed.

“They have a responsibility to protect our rights and regulations and are doing things for media freedom as well as giving us many training opportunities,” he continued.

“They are more all-encompassing in dealing with media because they deal with both print and broadcast journalism,” he added.

Rasheed hopes to receive MMC support in regard to the MBC warning issued, since they previously filed a case with the prosecutor general against the President’s Office for intentionally not cooperating with Raajje TV.

In April, the Civil Court ruled in favour of Raajje TV in its lawsuit against the President’s Office for barring the opposition-aligned television station from President Dr Mohamed Waheed’s press conferences and functions.

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PPM will address Maldives’ strained relationship with India: Gayoom

Former President Maumoon Abdul Gayoom has pledged during a visit to India that the Progressive Party of Maldives (PPM) will repair strained relations between the two countries should it come to power in September, local media has reported.

The three day visit, which concluded Thursday (June 6), saw the former president meet with dignitaries including Prime Minister Manmohan Singh to discuss bilateral relations and the impact of the Maldives government’s decision to last year cancel a US$511 million airport deal with India-based infrastructure giant GMR.

In interviews with Indian media, Gayoom expressed sadness that the Maldives’ relationship with India had been impacted by President Dr Mohamed Waheed’s administration deciding to evict GMR from the country with seven days notice.

Gayoom blamed Nasheed for not obtaining parliamentary approval and “consulting all political parties” before signing the deal with the GMR-Malaysian Airports consortium.

“This was a mistake. Had he consulted all political parties, the public would not have formed the impression that corruption had taken place. Then we told the next President Mr Waheed that he should hold discussions with the GMR Group and the Indian government to arrive at an acceptable solution, after which the government was free to act on its own. Unfortunately, this was not done and suddenly there was this unhappy ending,” Gayoom was reported as saying in the Hindu.

Waheed’s government late last year declared the contract between GMR and the Nasheed government, which was vetted by the World Bank’s International Finance Corporation (IFC), as ‘void ad initio’, or invalid from the outset. It is currently disputing its obligation to compensate the company in arbitration proceedings, arguing that the termination clause could not be applied to a contract it had deemed invalid.

Gayoom told Indian media that former President Mohamed Nasheed – whose government was controversially replaced in February last year – had to take the majority of blame for the GMR contract dispute, despite not being in office at the time of its cancellation.

“The GMR experience was not a very good one for us. It began badly with [Nasheed] not informing parliament,” Gayoom was reported as saying in the Indian Express.

“By law, he should have had it passed by parliament. Some may even say it had an illegal beginning. [The cancellation] was a very populist move at the time as the public had a perception that the contract was bad for the country. The way it was handled was not good. I am sad that this has somehow affected our bilateral relations. We want to overcome that and restore our relationship with India to its former level,” Gayoom told the paper.

The government’s sudden eviction of the Indian investor did not however appear on a list of 11 grievances handed to all senior Maldivian reporters by the Indian High Commission in January, which instead included concerns such as discrimination against Indian expatriates and the confiscation of passports by Maldivian employers.

The list’s release was followed by the Indian High Commission issuing a statement in early February slamming local media in the Maldives for “misrepresentation and twisting of issues”.

Gayoom nonetheless told the Hindustan Times publication this week that he would endeavor to maintain strong bilateral relations with India, claiming that people who were “anti-GMR” were not “anti-India”.

The PPM is presently part of the coalition government backing President Waheed, whom Gayoom said had been requested to find an “acceptable solution” for both GMR and the Indian government that addressed concerns about the airport deal.

Fierce criticism

Among the most fierce critics of the GMR airport deal before its cancellation last year were the now government-aligned Dhivehi Qaumee Party (DQP ), led by President Waheed’s Special Advisor Dr Hassan Saeed.

Saeed in November last year appealed to Prime Minister Singh to terminate the GMR deal, writing that “GMR and India ‘bashing’ is becoming popular politics”.

While in opposition in December 2011, the DQP also released a 24 page pamphlet alleging that allowing GMR to develop Ibrahim Nasir International Airport (INIA) was “paving the way for the enslavement of Maldivians in our beloved land”, and warning that “Indian people are especially devious”.

Former Home Minister Dr Mohamed Jameel Ahmed, the DQP’s Deputy Leader at the time of the pamphlet’s publication, was recently unveiled as the running mate of PPM Presidential candidate Abdulla Yameen – Gayoom’s half brother.

SOFA a concern: Gayoom

Gayoom – described in the Hindu as a “sprightly 76 year-old” – also expressed concern about the Status of Forces (SOFA) agreement being negotiated between Waheed’s government and the United States.

“I am not happy. I didn’t want that to happen,” he said, warning that such a move risked upsetting the balance of power in the Indian Ocean.

A source within the PPM said former President Gayoom, during his 30 years as head of state had forged strong relations with various regional powers such as India and Sri Lanka.

The source said that while the handling of the GMR contract remained a controversial issue, the recent strain in the relationship between India and the Maldives was the result of a number of factors, including “certain difficulties” facing expatriate workers from India living in the country.

“We have a large number of professional expatriates from India working here in health, education and accountancy. The [Indian] embassy here in Male’ has aired some of the issues with us,” the party source claimed, adding that the Maldives also had grievances over obtaining visas to travel to India that needed to be resolved.

The party official claimed that Indian authorities had raised these issues not only with the PPM, but all other stakeholders both in government and the country’s political opposition, presently represented by the Maldivian Democratic Party (MDP).

Highs and lows

Despite admitting that every country has high and lows in their bilateral relations with neighbours, Indian High Commissioner to the Maldives Rajeev Shahare has previously emphasised what he called the country’s “unshakable” long-standing relationship with the Maldives.

“During my tenure, I will endeavour to further strengthen the relationship between India and the Maldives, which is already very strong with an unshakable foundation,” he said on April 10, shortly after his appointment.

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Government calls for immediate Tourism GST increase to 15 percent

The government has submitted a bill to parliament calling for the Tourism Goods and Services Tax (T-GST) to be increased from 8 to 15 percent, effective immediately.

The bill was submitted by Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed last week on behalf of the government.

A T-GST of 3.5 percent was first pushed through parliament by the former government in 2011, with planned increases to 6 percent in 2012 and the current 8 percent in 2013.

Prior to the introduction of the T-GST, the primary sources of state income from the tourism sector included resort rents, import duties, and a flat eight dollar a night ‘bed tax’.

During the first month following the introduction of the T-GST, the government collected US$7.2 million from 800 of the newly registered 871 tax papers, a figure that revealed the Maldives had been underestimating the total size of its main industry by a factor of three.

Economic crisis

The proposal to increase the tax comes as the Maldives faces increasingly dire economic circumstances.

Finance Minister Abdulla Jihad revealed in April that the government had exhausted its annual budget for recurrent expenditure (including salaries, allowances and administration costs) in the first quarter of 2013, and announced the suspension of all development projects.

The State Bank of India’s refusal to roll over loans at the start of the year has seen central bank reserves at the Maldives Monetary Authority (MMA) “dwindle to critical levels”, as noted by the World Bank, to barely a month’s worth of imports.

The State Electric Company (STELCO) – the country’s main supplier of electricity to inhabited islands – meanwhile revealed this week that the government had failed to pay electricity bills to the tune of MVR 543 million (US$35.2 million), and warned Parliament’s Public Accounts Committee in a letter that it faced cash flow problems and an inability to roll out new projects as a result.

T-GST rise contentious

Tourism industry figures have previously warned that a sudden increase in T-GST would have an immediate effect on the industry’s bottom line, as many resorts are locked into year-long supply and pricing agreements with tour operators.

An overnight near-doubling of the tax to 15 percent would have “serious ramifications on tourism and the Maldivian economy,” warned one resort manager.

“Most wholesalers will not accept price increases mid-contract irrespective of what clauses we put in a contract, as laws within the EU prevent this. Hence, this will have to be absorbed by the resorts,” he explained.

“I am aware that many resorts are struggling financially and this may be enough to put them over the edge. It will be very difficult to attract much needed foreign investment when the government continues to give these signals,” he added. “Why hamper and reduce demand to a destination that is already struggling to attract its core and traditional markets?”

The resort manager said that it was unreasonable to expect the resort industry to foot the bill for the state’s financial irresponsibility, “considering there have been limited efforts within the government to reduce its expenses. [The proposed tax increase] is short term thinking that will lead to a major default within the Maldivian economy and industry, if this proceeds.”

“What continues is a large bureaucracy that makes it as difficult as possible for tourism to provide high end service to its guests in order to maintain our positioning [in the market],” he observed.

“What is basically required is that these slow and lethargic government departments to go through a productivity and efficiency program. Make the processes more efficient, make civil servants accountable for productivity targets, reduce the government workforce and increase the percentage of Maldivian workers in resorts,” the manager suggested.

The issue here is that the resorts will need to cut costs and increase efficiency to counteract this. This may hamper guest service, product enhancements and refurbishment, and staff benefits which is again detrimental to the industry as a whole. The Maldives is a premium destination with premium levels of service and this tax increase would hamper this positioning. The Maldivian people will need to expect cost cutting and in some aspects retrenchments.”

New tax fatwa

Prior to the submission of the government’s proposed increase to the T-GST, local media reported that the Fiqh Academy had issued a fatwa (an Islamic ruling) prohibiting the government from levying taxes of any sort except under exceptional conditions.

Announcing the Fiqh Academy’s ruling in a statement on May 22, the Islamic Ministry noted that taxation was only permitted under Islam in certain circumstances.

“Tax can be taken from citizens to fulfill their basic needs, and only up to the amount required to fulfill these needs in cases where the state does not have enough money [for this],” the statement read.

According to local media, the fatwa requires that any tax money collected be “invested fairly and according to Islamic principles”.

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