Day: October 7, 2013

Transparency International “gravely concerned” about safety of Maldives staff, volunteers

Transparency International has expressed “grave concern” about staff and volunteer safety and “alarm” over the intimidation and public allegations threatening its Transparency Maldives chapter.

“Transparency International is gravely concerned about the safety of chapter staff and volunteers following an attack on one of its volunteers and telephone threats received by chapter members,” the international anti-corruption NGO highlighted in a press statement issued today (October 7).

“There appears to be a negative campaign in the local media aimed at undermining the effectiveness of Transparency Maldives’ anti-corruption work. Last week a senior member of the cabinet publicly threatened to close Transparency Maldives down,” Transparency International noted.

“Transparency Maldives has always played an active and constructive role in advocating for government transparency and accountability. We call on the authorities to ensure the safety of its staff and volunteers,” stated Transparency International.

Transparency Maldives is part of the Transparency International anti-corruption movement that includes more than 100 chapters worldwide.

Death threats and street attack

“An elections program intern was attacked on the street and had her phone snatched away,” Transparency Maldives’ Advocacy and Communications Manager Aiman Rasheed told Minivan News today.

Death threats were issued to Transparency Maldives staff by an unknown caller who contacted the organisation’s office, explained Rasheed. Both incidents occurred within five day period, during the last week of September.

“During every election these things occur, it’s not abnormal. However, the situation in the country has worsened since the 2008 [presidential] election,” said Rasheed.

“At that time, murder was unheard of and stabbings were rare. Now the threats seem more real in the current environment [with tensions escalating],” he added.

Today a death threat tweet stating “We will slaughter all of you goats until there are none left” was directed at Transparency Maldives and the Maldives’ former UK High Commissioner Farah Didi.

In regard to the “negative media campaign” aimed at undermining Transparency Maldives’ anti-corruption work, Rasheed noted that the Maldives Media Council (MMC) and Maldives Broadcasting Commission (MBC) “will be aware of this” given their participation in the Elections Commission’s National Advisory Committee.

It is unclear whether MMC or MBC have taken actions to address these local media issues, but given the “general environment… a lot needs to be done in this situation” by regulatory authorities, he continued.

“Keeping [Transparency Maldives] staff and volunteers safe is our number one priority,” Rasheed declared.

In light of the recent death threats and attack of an intern, Transparency Maldives is urging staff and volunteers to be more careful, he explained.

“We are monitoring the environment and updating all our people,” said Rasheed.

Staff training has been conducted as part of Transparency Maldives’ security priorities, and the organisation’s electronic equipment and office are closely guarded, he explained.

“All [election] observers and volunteers are trained to remove themselves from any situation if any violence occurs,” he noted. “Their purpose is to observe whether violence has occurred, not to determine who hit whom.”

Transparency conducted an extensive election monitoring program, fielding a team of 400 election monitors during the first round of September 7. The organisation stated that the process was fair and credible and that incidents observed on the day would not have had a material impact on the outcome of the election.

Transparency Maldives called on all parties to act with restraint and uphold the constitution to allow for a run-off election to take place.

The Supreme Court on September 23, however, issued an indefinite injunction halting the second round of the presidential election, which had been scheduled for September 28.

Following the Supreme Court injunction, Transparency Maldives noted that the failure of parliament and the Judicial Service Commission (JSC) to address alleged integrity issues of the Supreme Court judges have “created avenues for political and other actors to question the conduct, injunctions and verdicts of the Supreme Court”.

The following week, State Minister for Home Affairs and the Registrar of NGOs Abdulla Mohamed declared that Transparency Maldives and the Tourism Employees Association of the Maldives (TEAM) were under investigation for “unlawful acts” and warned the NGOs that organisations acting outside of law would be dissolved.

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Military deploys soldiers to protect Maldives media after arson attack

The Maldives National Defence Force (MNDF) has taken to the decision to provide security services to various media outlets across the country following the arson attack on opposition-aligned private broadcaster Raajje TV.

MNDF Spokesperson Colonel Abdul Raheem told Minivan News that military officers were now manning “almost all” the country’s television stations as well as the premises of other media outlets.

Colonel Raheem said that, rather than being a reaction to a specific threat, the MNDF had decided to assign officers to guard a number of media stations immediately following the arson attack that destroyed Raajje TV’s offices in Male’ this morning.

“This was our own decision, although some [media] have requested they be provided protection,” he said, adding that officers had also been deployed to Raajje TV, which relaunched its broadcasting this afternoon.

He added that MNDF officers were acting as part of ongoing efforts to provide security for any areas deemed “vulnerable”, having previously provided similar support in the past for the Maldives’ electricity and water infrastructure.

The Maldives Police Service today said it was not involved with the MNDF’s security operation, with its own officers instead performing patrols outside the perimeters of media organisations.

Raajje TV was attacked by a group of masked individuals who doused the station’s computers, desks and main lobby with petrol. The office’s guard was later stabbed and hospitalised with critical injuries.

The attack took place despite the station having previously requested police protection following warnings of an impending attack.

Police Spokesperson Chief Inspector Hassan Haneef confirmed this morning that police had received the letter requesting security, and said they “took action by patrolling the area.”

Media violence

The attack is the second raid on the station’s building by masked assailants.  During the first attack – in August 2012 – assailants sabotaged equipment in the station and cut critical cables.

The main office of Villa TV (VTV), a private broadcaster owned by Jumhooree Party (JP) Leader – and third-placed presidential candidate MP Gasim Ibrahim – was attacked during anti-government protests on March 19, 2012.

Extensive damage was reportedly caused to VTV and its property, with the station briefly being brought off air – an act claimed by the station’s owner to be tantamount to “terrorism”.

The Maldives Media Council meanwhile today released a statement condemning the Raajje TV attack as an attempt to “eliminate” one of the country’s most watched broadcasters, calling for security forces to do more to protect media outlets and journalists.

“In view of that, MMC has continuously requested to investigate these cases and asked security providers to be more attentive to media security issues. MMC is consciously discussing all relevant stakeholders to ensure protection of journalists and media stations.”

The MMC last week declared its intention to file a no-confidence motion in the Majlis against Maldives Broadcasting Commission (MBC) members via Parliament’s Independent Institutions Committee.

The council stated its belief that the broadcasting commission had failed to create a healthy broadcast media environment, instead creating fear and discomfort, and that it was therefore unable to fulfill the Broadcasting Act’s mandates.

Media freedom

MMC member and Maldives Journalist Association (MJA) President Ahmed ‘Hiriga’ Zahir meanwhile today maintained that media should not cover live events and other developments in the country in a manner that would incite violence.

Zahir confirmed the MCC also published a statement yesterday (October 6) criticising any media found to be trying to incite institutions or individuals to perform violent acts.

The statement specifically condemned any media found to be spreading calls for “terrorism and unrest”, something it said was not permitted even in nations regarded as leading in international standards of press freedom.

Zahir said that the MCC were aware of a number of examples where numerous unspecified media outlets had been covering news in a way that could create unrest.

“Sometimes the language used by [these media outlets] goes beyond what is acceptable within democratic values,” he said.

Zahir cited one notable example of media inciting unrest was by covering the statements of certain politicians who encouraged people to “violate the law” and go against state institutions.

He added that all media had a responsibility to the nation to decide whether or not to cover statements that might lead to violence or unrest.

Asked if the MMC’s statements could infringe on constitutionally-guaranteed press freedom, Zahir argued that the media oversight body was responsible under law to ensure such media freedoms were used in the “right manner”.

“The point is media needs to work for a better society. Media freedom has to be for the betterment of society,” he clarified today.

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Manta rays lacking libido in empty blue seas around the Maldives: The Guardian

” ‘Mantas!’ shouts Guy Stevens from the top deck, pointing to huge bat-shaped shadows gliding under the rippling, turquoise water of Hanifaru bay in the Maldives,” writes Damien Carrington for the UK’s Guardian newspaper.

“Mantas are protected in the Maldives and had been faring relatively well,compared with populations in Sri Lanka, Indonesia and elsewhere, where thousands of the inquisitive creatures are slaughtered each year to supply the Chinese traditional medicine market.

But Stevens is worried by a new threat. Usually about a third of the females are pregnant every year, he says: ‘But then – boom – in 2009 reproduction just stopped.’

‘Is this part of long-term natural cycles or is it something more sinister, related to climate change and human impacts?’ asks Stevens, founder and chief executive of the Manta Trust, which runs its Maldives programme from the Four Seasons resort on Landaa Giraavaru island, with the company funding the Trust’s staff and operations.

‘I suspect it is not natural,’ he says. ‘The meteorological people say the monsoon is changing [from usual patterns], and the fishermen who have been out there for 50 years say it is definitely changing.’

Stevens has been tracking the Maldive mantas for eight years and has 15,000 sightings of 1,500 individuals from the last four years alone. Their feeding events correlate closely with the average speed of the winds, which have been blowing less strongly overall in the past four years.

Weaker winds are less effective at stirring up the seas, meaning the nutrients needed for plankton to bloom are missing. “If primary production is affected, that passes up through the food chain and affects the mantas,” he says, adding that mantas bring in about $20m a year in tourism revenue for the Maldives.”

Read more

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Raajje TV returns to air with donated equipment, after station’s firebombing

Hours after an arson attack that destroyed its offices, opposition-aligned TV station Raajje TV began rebroadcasting with donated equipment at 12:40pm today, showing a report compiled with CCTV footage of the destruction of its offices.

“We have to start from zero. But Raajje TV will never die,” the station’s News Head Ibrahim ‘Asward’ Waheed told Minivan News.

The CCTV footage shows five masked men armed with machetes hacking at the locks on a reinforced steel grill. After destroying the lock and yanking open the grill, five men break through a second wooden door as a sixth man holds the building’s security guard hostage.

The footage then cuts to an indoor camera showing the arsonists dousing the station’s computers and desks and main lobby with petrol.

One of the men appears to threaten the security guard while the other attempts to calm him. The guard was later stabbed and hospitalised with critical injuries.

One of the masked attackers pours a trail of petrol out the door as the others retreat downstairs. He lights the trail, creating a fiery explosion that briefly engulfs him. He stumbles down the stairs, just as fireball inside in office explodes the door of the station off its hinges. Further footage shows a massive explosion of fire in the control room of the station.

The arson attack took place after the station requested police protection, following advance warnings it received the previous night of an impending attack. Police Spokesperson Chief Inspector Hassan Haneef confirmed to Minivan News this morning that police had received the letter requesting security, and said they “took action by patrolling the area.”

Asward, who in February 2013 was attacked by assailants with an iron bar that left him with near-fatal head injuries, said the station had restarted broadcasting from offices in a new building with equipment donated by the public, and had taken third party insurance for all of the station’s staff.

“I have been attacked. Our station’s reporters have been assaulted, beaten, arrested and threatened. Critical cables in our control room were cut. But we have always managed to overcome that” Asward told Minivan News.

The station restarted its broadcast with an interview of the Vice President of the Maldives Broadcasting Commission (MBC) Mohamed Shaheeb, followed by CCTV footage of the attack and an interview with former President and Maldivian Democratic Party (MDP) presidential candidate Mohamed Nasheed.

“We will not be able to cover live events because all of our equipment has been destroyed. We will not be able to bring in-depth coverage of the news as we have done in the past,” Asward said.

The station was destroyed on the same day as the Supreme Court’s much-anticipated ruling on whether to allow elections to go ahead.

Vice President of the Maldives Broadcasting Commission (MBC) Mohamed Shaheeb has harshly condemned the torching of Raajje TV.

“This is a cowardly act that violates vital democratic principles of freedom of expression and press. This commission calls for an investigation and prosecution of those involved,” he said.

The US Embassy has also expressed concern regarding the “upsurge in political violence.”

“The United States believes that a free and fair democratic political process depends on peaceful competition at the ballot box and an independent media available to all citizens. We urge authorities to quickly bring to justice those involved in these attacks and call for an end to all violence and political retaliation,” read a statement issued today.

The Maldives Media Council (MMC) condemned the arson attack as an attempt to “eliminate” one of the country’s most watched broadcasters, and criticised security forces to do more to protect journalism.

“Last night’s attack on Raajje TV Station, among the most viewed local channels by most Maldivians, was aimed to permanently shut down its service,” said the media body in statement.

“In view of that, MMC has continuously requested to investigate these cases and asked security providers to be more attentive to media security issues. MMC is consciously discussing all relevant stakeholders to ensure protection of journalists and media stations. Nevertheless, there has not been much progress on this issue,” read the statement.

MMC President Husham Mohamed said the regulatory body would be raising an “issue” with the Police Integrity Commission (PIC) over today’s attack.

According to Raajje TV the station had an audience of at least 95,000 people, one of the largest shares of Maldivian media. It reached India and Sri Lanka, and is also streamed online.

The attack is the second raid on the station’s building by masked assailants. In the first attack, in August 2012, the attackers sabotaged equipment in the station and cut critical cabling.

CCTV footage of the attack on Raajje TV:

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MP Abdulla Jabir files complaint against Prosecutor General for not taking action against police

Maldivian Democratic Party (MDP) MP Abdulla Jabir filed a complaint in parliament against the Prosecutor General (PG) for not taking action against the Maldives Police Service  after he was assaulted by arresting officers last year.

Jabir requested on Wednesday (October 2) that parliament’s Independent Institutions Committee investigate the matter and take action against the PG as necessary.

Jabir and fellow MDP MP Hamid Abdul Ghafoor are among several senior party figures charged with drug and alcohol offences, after being arrested on on Hondaidhoo Island in November 2012 whilst allegedly under the influence of illegal substances.

Jabir was presented to the Criminal Court by police September 12, after being kept in custody for two days ahead of his trial for alleged possession of alcohol and cannabis.

Earlier this year the Police Integrity Commission (PIC) said that no charges could be pressed against police in relation to the alleged attack against Jabir.

Despite a complaint filed by Jabir’s brother, Ibrahim Shiham, which claimed that there is sufficient evidence proving that police beat Jabir during the arrest, the PIC decided that the case could not be sent to the PG office for criminal prosecution, local media reported.

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Supreme Court further delays election decision

The Supreme Court of Maldives has delayed its ruling on the potential annulment of the presidential election for the second time today.

Originally scheduled for 2:30pm today, the ruling was moved to 5:00pm, before court officials announced the decision to move the ruling back to 8:00pm.

“The Supreme Court can say whatever they want to say. But the constitution must be upheld,” Maldivian Democratic Party (MDP) presidential candidate Mohamed Nasheed told a crowd of supporters gathered near the courthouse.

The case filed by the Jumhooree Party, alleges systemic fraud in the first round of the presidential election, despite the overwhelmingly positive assessments of all observer missions present.

The concluding arguments in the case were heard on September 25, two days after the court had issued an injunction calling upon all state institutions to halt election preparations until the case had been completed.

Numerous international actors – including the United Nations Security Council – have expressed their alarm at the decision to delay the second round, and the subsequent rising of tensions in the country.

Following the destruction of MDP aligned TV station Raajje TV this morning, party supporters gathered by police barricades on Fareedhee Magu.

MDP Imthiyaz Fahmy called for an investigation of the police’s role in the arson attack.

“[Police Commissioner] Abdulla Riyaz publicly announced previously that police will not provide protection to Raajje TV. Look how it has been absolutely burned down today,” said Fahmy.

Former President – and first-placed candidate in the initial poll –  Mohamed Nasheed addressed a crowd of around 300 just before midday.

“The Supreme Court may say anything at two thirty today. Do listen to their verdict, it will make no sense at all.”

“The letters in the constitution cannot dissolve and protect itself, it cannot come out to war to protect itself. It won’t come to life unless we get strength from it and come out to protect it.”

“We are not here to ascertain presidency for Galolhu Kenereege Mohamed Nasheed. We are here to get people’s rights. Not for the MDP, but for all citizens,” he added.

The area – close to the Supreme Court – has been the focal point of MDP protests for 10 consecutive nights following the Election Commission’s decision to abandon preparations for the September 28 run-off, in the face of government and judicial intransigence.

The integrity of the Supreme Court was a persistent theme during early protests, with frequent – often visual – references to the Justice Ali Hameed’s purported role in a series of sex tapes.

“We are demonstrating here and won’t stop until we hear a verdict,” Nasheed’s running-mate Dr Mustafa Lutfi told the crowd.

Police have reported “no tensions and no arrests” during today’s demonstration.

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Supreme Court hearing delayed to 5:00pm

The Supreme Court hearing to give the verdict in the Jumhooree Party’s bid to annul the first round of elections has been delayed to 5:00pm today.

The hearing was initially due to be held today at 2:30pm.

Despite widespread local and international election praise of the credibility of the polls, the third-placed JP alleged the vote was flawed due to electoral discrepancies and irregularities amounting to a “systematic failures”.

The delay in polls prompted global and domestic outcry, and has led to unrest in Male’.

Maldivian Democratic Party (MDP) supporters have taken to the streets in protest, officers in the military have been suspended for allegedly “sowing discord” and air traffic controllers, customs officials, ground handling services and port workers have staged strikes.

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Raajje TV destroyed in arson attack

Additional reporting by JJ Robinson

A group of masked men armed with machetes, iron rods and petrol set fire to opposition aligned TV station Raajje TV shortly before 4:45am today, destroying its offices and control room as well as cameras, computer systems, broadcasting and transmission equipment.

The attack comes days after Raajje TV broadcast a report titled “Forum 15” detailing a plan, including arson, to destroy the station.

According to Raajje TV’s Head of News, Ibrahim ‘Asward’ Waheed, six men forcefully entered the seven story building after stabbing the security guard with a machete.

The guard has been hospitalised and is receiving care for two stab wounds to his back.

The men then damaged the elevator and cut off the building’s electricity. The group continued to break through a reinforced steel door to access station’s offices on the second floor of the building, before covering all equipment in the building with petrol and setting it alight.

A crew member from the airport ferry – docked opposite the building – said he witnessed a group of masked men leaving the building, and the bleeding security guard run to police officers on the corner of the block.

“We were docking at around 4:40 am when I saw about eight masked and gloved men leaving the building. They were wearing jeans and t-shirts. I saw the security guard run out, he had blood on his back,” he said.

“There were policemen on the corner, he ran to them and it looked like they did not help. I say this because he ran back to the building and then ran back to them when people gathered there started shouting,” he told Minivan News.

“At the time there was smoke coming from the offices. Many people there told me they called the police when they saw what was happening. But the police did not answer the phone. and only answered once the whole place was ablaze,” he said.

Station staff were unharmed, although the Maldives National Defense Forces’ (MNDF) Fire and Rescue Services said they had rescued one woman who was trapped on the terrace.

According to the MNDF, the fire was reported at 4:45 am and was put out at 7:00 am. A computer store on the ground floor was also completely destroyed in the blaze.

The station was destroyed on the same day as the Supreme Court’s much-anticipated ruling on whether to allow elections to go ahead.

Station had requested police protection

The station’s reporters had all gone home by 4:00am after providing live coverage of the Maldivian Democratic Party’s (MDP) ongoing protests against the indefinite suspension of elections by the country’s Supreme Court. Eyewitnesses had reported that the license plates of the arsonist’s motorbikes had been concealed, Asward said.

Raajje TV CEO Yamin Rasheed said the station had received reports at 8:00pm on the previous evening that it was in danger of being attacked that same evening, warnings which forwarded to police along with a written request for police protection.

“[The report] was very suspicious, and did not look like a joke. I wrote a letter to police asking for security and requested them to protect us from this attack. But there was no response,” he said.

Police Spokesperson Chief Inspector Hassan Haneef confirmed to Minivan News this morning that police had received Yamin’s letter “and took action by patrolling the area.”

Yamin said Raajje TV has extensive CCTV footage of the arson attack: “It will be very easy to investigate. But we’ve handed it over in past attacks and nothing has happened,” he said.

“We will resume our service as soon as possible. Our directors are very courageous and are willing to try again,” he added.

Vice President of the Maldives Broadcasting Commission (MBC) Mohamed Shaheeb has harshly condemned the torching of Raajje TV.

“This is a cowardly act that violates vital democratic principles of freedom of expression and press. This commission calls for an investigation and prosecution of those involved,” he said.

Former President Mohamed Nasheed said in a tweet that he strongly condemns the attack on Raajje TV, asking the “Raajje TV team not to worry and come back on air as soon as possible.”

Maldives Media Council President Mohamed Husham spoke out against lack of protection to the media in a tweet:  “We have not seen any results from the discussions to provide protection equally to all media.”

The Maldives Post Services has suspended services from its main office, which is located next door.

Since the controversial transfer of power on February 7, 2012, Raajje TV has faced increasing threats. In July 2012, the police and the President’s Office had said it would not cooperate with the TV station, blocking the station from President’s Office’s press conferences and police protection at protests.

The Civil Court has since ruled that the police and president’s office’s decisions  to ostracize the station were both unconstitutional.

In August 2012, critical cables in the station’s control room were cut, terminating the station’s broadcast. Several Raajje TV journalists have also reported arbitrary arrests and assaults.

In February 2013, men wielding iron rods on motorbikes assaulted Asward leaving him with near near-fatal head injuries.

According to Raajje TV the station had an audience of at least 95,000 people, one of the largest shares of Maldivian media. It reached India and Sri Lanka, and is also streamed online.

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Government finances “further deteriorated in first six months of 2013”: MMA Quarterly Economic Bulletin

Government finances “further deteriorated in the first six months of 2013” due to a sizeable shortfall in expected revenue coupled with a marked increase in recurrent expenditure, according to the Quarterly Economic Bulletin of the Maldives Monetary Authority (MMA) released last week.

The central bank observed that the government’s target of reducing the budget deficit to 3.6 percent of gross domestic product (GDP) this year from 12.6 percent in 2012 “now seems rather challenging.”

“These developments have resulted in a widening of the budget deficit as indicated by the large financing requirement of the government during the first six months of 2013. The difficulties in accessing long-term foreign funds to finance the budget deficit resulted in the government resorting to the Maldives Monetary Authority (MMA) and other domestic sources to finance its growing deficit,” the report stated.

The economic bulletin explained that around 15 percent of total revenue budgeted for 2013 – MVR1.8 billion (US$116.7 million ) – was to be raised from new revenue measures, “which so far have not materialised.”

The revenue raising measures proposed in the 2013 budget included hiking Tourism Goods and Services Tax (T-GST) to 15 percent from July 2013 onward, raising airport service charge to US$30, leasing 14 islands for resort development, raising tariffs on oil, introducing GST for telecom services, and “selectively” reversing import duty reductions.

In April, parliament rejected government-sponsored legislation to raise the departure tax on outgoing passengers, prompting Finance Minister Abdulla Jihad to seek parliamentary approval to divert MVR 650 million (US$42 million) allocated for infrastructure projects in the budget to cover recurrent expenditure.

The move followed a cabinet decision to delay implementation of new development projects financed out of the budget due to shortfalls in revenue.

The economic bulletin meanwhile revealed that total revenue in the first half of this year (MVR5.9 billion or US$382 million) increased by 22 percent compared to 2012 on the back of a 35 percent increase in tax revenue.

Tax revenue was “boosted by favourable receipts from GST [Goods and Service Tax] and Business Profit Tax (BPT).”

While GST receipts rose by 46 percent, “contributed by the increase in the rate of GST on the tourism sector (T-GST), from 6% to 8% on 1 January 2013,” BPT receipts increased by 83 percent.

The MMA report explained that BPT collection this year was “based on financial returns for the twelve months ending June 2012, while the BPT collections made in 2012 were based on the financial returns of for the six months ending August 2011.”

Growing government spending

The economic bulletin also revealed that the total government expenditure of MVR6.7 billion (US$435 million) in the first half of 2013 was 8 percent higher than the same period in 2012.

The growth of government spending was “entirely due to the 21 percent (MVR965.3 million) growth in recurrent expenditure, which was partly offset by the 26 percent (MVR440.6 million) decline in capital expenditure during the period.”

Capital expenditure declined due to the government’s decision to suspend infrastructure projects financed out of the budget “in the face of significant shortfalls in revenue due to the inability to implement new revenue measures.”

The increase of recurrent expenditure was meanwhile “driven by the increase in spending on wages and salaries and government pension contributions, both of which largely reflects the transfer of employees in health corporations to civil service commission and employees in Aviation Security Service to Ministry of Defence and National Security starting from January 2013.”

In its professional opinion on the budget proposed for 2013, the Auditor General’s Office had suggested “major changes” to right-size the public sector and “control the salary of state employees and expenditure related to employees” to rein in the budget deficit.

The Auditor General observed that, compared to 2012, the number of state employees was set to increase from 32,868 to 40,333 – resulting in MVR 1.3 billion (US$84.3 million) of additional expenditure in 2013.

This anticipated increase included 864 new staff to be hired by the Maldives Police Service (MPS) and Maldives National Defence Force (MNDF).

Deficit financing

The budget deficit forecast for 2013 was MVR 2.33 billion (US$149 million) – to be financed by MVR 1.15 billion (US$74.5 million) in foreign loans and MVR 1.17 billion (US$75.8 million) in domestic finance.

The MMA’s economic bulletin noted that the budget deficit was largely financed from domestic sources, including the issuance of treasury bills (T-bills) to banks and non-bank sectors.

“At the end of June 2013 the total outstanding debt stock of government securities (T-bills and T-bonds) rose to MVR11,702.3 million which reflects a net issuance of MVR586.9 million in the first half of 2013 compared with MVR615.8 million in the same period of 2012,” it stated.

“Meanwhile, with the increasing challenges faced by the government in financing its growing deficit through domestic sources, the government at times had to resort to the MMA, to finance its deficit. During the first six months of 2013, the change in MMA net credit to government increased to MVR781.0 million from MVR131.2 million in the first six months of 2012.”

The country’s trade deficit also widened in 2013 compared to the same period last year due to higher level of imports, which “reflects the increase in domestic demand driven by economic recovery and the increase in government expenditure.”

While gross international reserves increased in the first six months of 2013 due to the “accumulation of foreign assets by the commercial banks,” the bulletin noted that, “in terms of import cover, gross reserves remained unchanged at 2.5 months in June 2013 reflecting the acceleration in import growth.”

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