Day: October 8, 2013

Elections Commission consults with government over re-scheduled presidential election

Elections Commission (EC) members met with the government today in compliance with the Supreme Court’s order to consult relevant authorities within 72 hours of its verdict, regarding the re-scheduling fresh presidential elections by its October 20 deadline.

The Supreme Court late last night annulled the first round of the election in a 4:3 decision. Citing a secret police report on alleged electoral irregularities, the court ordered fresh elections by October 20 with enhanced police and government involvement.

After the Majlis meeting today, Independent Institutions Committee member Hamid Abdul Ghafoor described the verdict as “incomprehensible”, and as “technically and logistically not possible”.

The Supreme Court verdict was issued despite unanimous positive assessment of the polling by more than a thousand local and international election observers, while the police report on which it was supposedly based has not been made public and was not shown to the EC’s defence lawyers.

The EC was forced to postpone the presidential election’s second round, citing a lack of state cooperation that prevented the commission from holding a “free and fair vote without intimidation, aggression, undue influence or corruption” on September 28.

The announcement was made September 27, shortly before the EC secretariat was surrounded by Special Operations police with orders from Police Commissioner Abdulla Riyaz to take over the building and ballot papers should it proceed with election preparations.

Parliament

EC officials met with parliament’s Independent Institutions Committee at 12:30pm today, Maldivian Democratic Party (MDP) MP Ghafoor told Minivan News today.

Although committee meetings are normally closed to the public, with the EC’s consent the committee agreed to talk to the media openly about today’s proceedings, Ghafoor explained.

“EC officials refused to leave the Supreme Court last night until they were given a copy of the verdict, which wasn’t provided until 1:30am,” said Ghafoor.

“The Supreme Court totally changed the EC’s mandate in their verdict,” he continued. “They have created a mandate that is totally different from what the law requires.”

Ghafoor highlighted some of the inconsistencies and “constitutional contradictions” within the verdict.

“It requires one new staff member to be hired for each ballot box to conduct ‘new functions’, although it’s not clear what those functions will be,” explained Ghafoor. “That’s 470 new people that have to be hired and trained in the next 12 days.”

“Additionally, the constitution stipulates the final voter list is the EC’s responsibility, but the Supreme Court verdict requires that the commission consider the list provided by the Department of National Registration (DNR) as their primary source,” said Ghafoor.

“The problem with the DNR is that because of bad management there are various errors with their list, which is why the EC should be the final arbiter of the voter registry. The sole authority of the list is up to them according to the constitution,” he continued. “The Supreme Court verdict contradicts the constitution.”

By law it is up to the EC to decide election dates, however the constitutionally-mandated timeline “has been squashed”, noted Ghafoor. “The Supreme Court did not consult with the EC about the new timeline prior to issuing the verdict.”

In a previous meeting with the Independent Institutions Committee, the EC had said that the commission would require 19 to 21 days to conduct the election in a matter that was satisfactory and does justice to free and fair elections, Ghafoor explained.

“The more sinister aspect of this forced timeline, is that it opens up the process to corruption and vote rigging,” he highlighted.

The Supreme Court has made “a right royal mess of this”, he lamented.

The EC also told the parliamentary committee that they had requested to meet Supreme Court Chief Justice Ahmed Faiz Hussain today, as they wanted to consult all three branches of government, the executive, legislature, and judiciary, Ghafoor explained.

However, the Chief Justice instead agreed to meet the EC at his convenience tomorrow (October 9) at 9:00am.

“They are very professional in their approach, doing it by the book,” said Ghafoor. “We are very happy to have such a strong Elections Commission.”

State-funded programs to be sacrificed for elections

Meanwhile, Minister of Finance and Treasury Abdulla Jihad told local media today that the department was “legally obligated” to provide election funds, despite the lack of these available.

“We will arrange the funds even if it is from the contingency budget. But it will be an extremely difficult process. But we will provide funds for the elections. However, sacrifices will have to be made. We will have to stop some state-funded programs,” said Jihad.

He noted that the EC had not yet discussed the budget needed to re-hold the presidential election with the Finance Ministry.

In a previous interview with Minivan News, when asked what the EC would do if the Supreme Court annulled the first round results, EC Chair Fuwad Thowfeek noted: “The government has spent over MVR30 million (US$1,949,310) on the first round, there is no budget remaining [to hold both rounds again].”

“If it’s difficult for the government to provide the additional budget for the second round, there will be so many difficulties if the [results are annulled and] voting rounds are held again,” said Thowfeek.

The estimated cost of the presidential election was MVR96 million (US$6,213,600) – the now-annulled first round cost MVR69 million (US$4,466,025) and MVR27 million (US$1,747,575) was allotted for the second round, according to local media.

However, re-holding the election has reportedly increased the total estimated cost to over MVR 100million (US$6,472,500).

The government is currently relying on short-term treasury bills (T-bills) to “roll over” debts on a monthly basis to address the budgetary shortfall, as recurrent expenditures for 2013 were exceeded in April.

To supplement the state budget President Dr Mohamed Waheed has been seeking to secure multi-million dollar foreign loans from financial authorities in Sri Lanka, Saudi Arabia, India and China.

President’s Office

Thowfeek and EC Vice Chair Ahmed Fayaz met with President Waheed this morning (October 8 ) in the President’s Office. Local media reported that Vice President Mohamed Waheed Deen and Attorney General Azima Shakoor also attended.

During the meeting, President Waheed called upon the EC to carry out the Supreme Court’s order to hold the presidential election’s first round in accordance with the verdict.

Waheed assured the commissioners that the government would “give all its support and cooperation” to the EC, including budgetary, security, human resources and infrastructure assistance as required.

“It is especially important that the integrity of the entire elections process is enhanced and maintained,” Waheed emphasised.

He noted that ensuring the presidential election is held in a smooth and peaceful manner is the government’s priority and that it is important “everyone puts forward national interests ahead of everything else”.

The  government is meanwhile preparing to shut down for the Eid al-Adha holidays, which commence on October 11 through to October 19, a day before the Supreme Court’s election deadline.

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Thasmeen to stick with Nasheed in re-scheduled poll

Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali has today announced his intention to maintain his new alliance with the Maldivian Democratic Party (MDP) going into the re-scheduled presidential elections.

After running as the vice-presidential candidate on the ticket of incumbent President Dr Mohamed Waheed, Thasmeen and his DRP announced their decision to support Mohamed Nasheed in the scheduled run-off just days after Waheed received just 5% of the popular vote.

“I believe that it would be an irresponsible and cowardly act to back away from doing what must be done to ensure that democracy is upheld in this country due to some words I might have said in the past. And therefore, tonight I assure all of you that DRP will do everything we possibly can to help Nasheed win these elections,” Thasmeen told an MDP rally one week after the first poll.

Despite the Supreme Court’s decision to annul the first round of voting, Thasmeen told local media today of his intention to continue his MDP alliance.

Waheed has yet to announce if he will run as a candidate in the upcoming election – with the first round to be held by October 20.

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Party Island: Sun Island resort employees allege purge of MDP staff

Employees at Sun Island Resort and Spa have accused its management of firing a large number of staff based solely on their political affiliation and suspected support for the Maldivian Democratic Party (MDP).

Sources from the resort allege that over 30 staff members have been fired following the announcement of the results of the first round of the presidential elections, held on September 7.

Sun Island is owned by resort tycoon and Jumhooree Party (JP) leader Gasim Ibrahim, who contested in the first round, finishing third with 24.07 percent of the vote. Gasim subsequently submitted a case to the Supreme Court alleging fraudulent voting, which eventually resulted in the decision to annul the first round on October 7.

According to the results of the ballot box placed on Sun Island in first round, the JP received 206 votes and the MDP 60 votes. Meanwhile, the Progressive Party of Maldives got a total of eight votes while independently contesting incumbent President Dr Mohamed Waheed did not receive any votes.

Staff at Irufushi Beach and Spa resort have also recently expressed concern over a “firing spree” affecting staff members professing to support the MDP.

Yellow T-shirt leads to multiple dismissals

Eighteen year old Zamin Abdul Raheem told Minivan News of the circumstances under which he was dismissed without notice from his post at Sun Island, after almost a year of service.

“We were doing some community cleaning work in the staff area after my duty hours, and I happened to be wearing a yellow T-shirt on the day. While a supervisor and I were having a chat, the general manager (GM) walked up and angrily asked me why I was wearing a T-shirt of this colour and said very angrily and accusingly ‘finally your political views and the candidate you voted for are being revealed’,” Zamin explained.

“I replied, saying the colour of my attire reveals nothing, that I wear various colours. I said I had cast a secret vote, as is in the law, which made the GM angrier. He retorted ‘we’ll see about that’ and stormed off. By 6:00pm that day I got a call from the Human Resources Department (HR) asking me not to report to duty. Three hours later, they called again and informed me that I’d been fired, though they couldn’t specify a reason for it,” he said.

According to multiple sources at the resort, the supervisor was also fired on the same day, after management questioned him as to why he had been “standing so care-freely with a man who dared to wear yellow”.

Two other staff members claimed that they were fired for going to the jetty to see off the dismissed staff, with whom they had worked closely.

“The constitution of the Maldives clearly guarantees us the right to support any political party we prefer. I told the management too that I will not be enslaved by anyone, just because Gasim gave us a job he thinks he is entitled to have the management force us to vote for him and go to his rallies. I’ve seen what he is like. By running for presidency, he is trying to enslave the citizens of this country,” Zamin said.

“Thirty fired, thirty to go”: firing spree worries staff

Mohamed Ali, a cashier who was fired on September 27, says he received a call from HR informing him of his dismissal and ordering him to leave the resort premises on the first available transfer.

“They said it was a staff cut-down as an official reason. I asked them why then they couldn’t follow procedure, and give me due notice, to which the reply was that they ‘Didn’t know, it’s orders from the management’.”

“Another colleague was also fired at the same time, and obviously the whole team from our department got frustrated. We went together to the HR to ask questions, and this resulted in the immediate dismissal of the five others who accompanied us there to raise concerns,” Ali said.

“Although they said we’d be given air transfer as is the norm, at the last minute they tried to pile us into a small supply boat, which would take seven hours to reach Male’. We refused, and ended up having to pay our own airfares.

“We were so afraid of losing our jobs that we had to just agree with whatever political opinions the management voiced. They forced us to do political things to the point where even someone who might have initially supported Gasim would change his mind.”

“The GM himself said the 60 staff members who voted for MDP will be thrown out. They just dismiss whomever they suspect. One guy who worked on the resort’s fishing vessel was among the first dismissed as he is from Kulhudhuhfushi which had lots of support for MDP. Even the official reason they gave was ridiculous: that the guy had refused to cut his hair on time,” Ali alleged.

“The resort has previously taken action against staff who refused to re-register to vote in the resort, and those who refused to vote for Gasim.”

Ahmed Ikram, another dismissed staff member, claimed that workers were forced to sign up for JP, to register to vote in the resort, and that people who complained had action taken against them.

“I wouldn’t call it a tourist resort anymore. It’s nothing but a campaign hub,” Ikram said.

Ahmed Naushad, among the cashiers fired, claimed that between dismissal and transfer out of the resort, the management sent security guards, claiming they were to “watch over the dismissed staff as [they] might damage resort property. Naushad said it was similar to “adding salt to a wound” after they had loyally served the resort for long periods of time.

Naushad further said that they were asked by their employers to attend all JP rallies, adding that some staff had even been given some form of payment in return for attending the large rally held in capital city Male’ on August 16.

Fired for going to the jetty to see off his fired friends, Ahmed Sammahu expressed concerns about how there was no line between what was expected from a person’s job and what the management wanted them to do in the owner’s political interests.

“I’ll be frank. Politically, I support MDP. However, when at Sun Island, they forced me and others to display support to Gasim. We even have to participate in all his campaign activities, or else risk termination. I’ve done all that. And yet, they can’t digest the vote I cast.”

Political threat to the company

Ahmed Sirhan stated that he had handed in his resignation after many of his colleagues working in the same department had been terminated “unfairly and under discrimination based on political views”.

“I resigned as a termination was inevitable, and I wasn’t going to stay around and let them do as they pleased. Do you know the management’s tactics when votes near? We had awesome meals in the staff quarters for exactly three days ahead of elections. There were foods like biryani, sausages and corn flakes – things we’ve never been given in the staff kitchen before.”

“We were even treated to free coffee from the staff coffee shop during these three days. And right after voting day, the food quality went way below even what we were used to before,” said Sirhan, whose allegations were repeated by many of his colleagues.

“I’d liken the management’s actions to having patted us on the back as the vote approached, and then trying to strangle us once the votes had been cast,” Mohamed Ali said.

Another staff member who had submitted his resignation was asked to stop coming to work before the period of notice he had given was up. He was informed that unless he left immediately it would be recorded as a dismissal and not a voluntary resignation.

“When asked for a reason, the management said that there is a difference in political ideologies and that I may prove to be a threat to the company. While my monthly salary of MVR 4000 (US$259) was due, they deducted MVR 3000 (US$195) and claimed it was because I had chosen to resign instead of waiting for dismissal,” he claimed.

Trepidation in the resort

A staff member still employed at the resort – who spoke to Minivan News on condition of anonymity – shared the general feeling amongst other MDP supporting staff members remaining in the resort.

“It’s not easy to find jobs in this sector. Everyone’s scared, not sure which one of us will get fired first. There’s about 30 still left and the GM has said to various colleagues that he will fire all 60 who voted for MDP.”

“No one complains about anything, regardless of how unfair it is. For example, we aren’t even allowed to watch Raajje TV in this resort. And all these dismissals are against the Employment Act, not to mention the individual civic rights guaranteed in the constitution,” he said.

Article 4 of the Employment Act prohibits discrimination against any employee based on their political beliefs or affiliation with any political party.

Article 21(b) of the same Act states that political affiliation is not a reasonable cause for dismissal of an employee.

“No knowledge of such incidents”: HR

Minivan News was unable to get in touch with Sun Island Resort and Spa General Manager Mohamed Saeed.

The front office stated that they are not allowed to share the GM’s number or his assistant’s number, or even pass the call to his extension.

When asked if there was any other staff at the resort who could respond to media queries, the Front Desk Officer replied “I suppose it is only the GM who can respond to those queries, but we aren’t allowed to share his number or pass any calls to him”.

A Human Resources official from the resort – who declined to identify himself – refused to comment on the matter besides saying that he was unaware of politically motivated dismissals, saying he has “no knowledge of such incidents”.

JP leader and Sun Island owner Gasim Ibrahim was not responding to calls at the time of press.

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65 persons arrested in 11 nights of MDP protest

Police have today said that a total of 65 persons have been arrested in the series of protests held by Maldivian Democratic Party (MDP), criticising the delayed – now annulled – presidential election.

Beginning as part of a pre-election rally on September 27, the protests continued over the following 11 nights after the Supreme Court ordered security forces to stop preparations for the presidential run-off by force if necessary.

In a statement issued today the police said that all of the persons were arrested on charges of objection to order and obstructing police duty.

Police said that the investigation into the cases of 29 persons were concluded and have been forwarded to the Prosecutor General’s office to put them on trial.

Allegations of arbitrary and frequent use of pepper spray, beating, strip-searching, frisking, handcuffing and drug testing of MDP supporters were heard during the Parliamentary Privileges Subcommittee last week.

The Human Rights Commission of Maldives (HRCM) also met with the police after being made aware of allegations that strip searches were being used in an unnecessary and discriminatory manner following the arrest of protesters.

During the HRCM’s meeting with police, it stressed its belief that strip searches were a “degrading and inhuman treatement” that was to be avoided whenever possible.

In a statement issued last Wednesday (October 2) police said they were authorised to frisk and conduct strip-searches under Articles 32-36 of the the Police Powers Act.

According to police 12 persons were released without being taken to the court to extend their detention period, and nine were released by the court when brought before judges for a potential extended detention period.

Police said that 11 persons were released by the court on different conditions.

Police are investigating the cases of 30 persons currently held in custody, whose detention period was extended by the court.

Last night MDP supporters gathered again in front of police barricades at the FDI photo studio, the nearest point protesters could get to the Supreme Court, calling for justice and early elections.

Three persons were taken into custody – also on charges of obstruction of police duty and objection to order.

Following the Supreme Court ruling to cancel the first round of presidential elections and to hold the election again, the MDP has commenced its campaign and ceased the ongoing protests.

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Off their rockers: The Economist

“Just why were the people of the Maldives asked to vote in a presidential election on September 7th,” asks The Economist.

Campaigning and voting went perfectly well. The contest looked fair and free. Your correspondent, visiting both a remote atoll as well as the capital, Male, saw and heard of nothing untoward during the campaign.

The independent Electoral Commission and local election observers concluded it had gone off perfectly. The thick flow of foreign ones agreed. (It is presumably easier for the Commonwealth, the European Commission and others to recruit poll monitors for the Maldives than for Afghanistan or elsewhere). The outcome, too, broadly matched earlier expectations. Mohamed Nasheed, a former president ousted in 2012 by what he said, reasonably, was a coup, romped home with 45% of the vote.

Just short of winning outright, however, he was forced into a second round of voting scheduled for late September. Yet a handful of power-brokers evidently could not stand the prospect of Mr Nasheed actually coming to office if he had won the second round. First the courts compelled the army and police to stop the second round of voting. Then, whatever 45% of the population have already said, the Supreme Court found an excuse on October 7th to annul the first round of the election.

This looks ridiculous. No basis of wrongdoing in the first round has been established. The court claims to have a “secret” police report that shows serious wrongdoing, a report which has not even been shown to the Electoral Commission, let alone been made public. On October 8th Mr Nasheed said “there were no good reasons for nullifying the elections”. He complains that his party’s lawyers were barred from court, and warns that protests and further disturbances are bound to follow. “A few judges feel they have to nullify a very well-observed election that was certified by the international community. Has this ever happened before?”

Read more

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RSF “deplore attitude of police” in Raajje TV attack

Reporters Without Borders (RSF) has condemned an arson attack that destroyed the headquarters of private broadcaster Raajje TV and has criticized the Maldives Police Services’ failure to defend the station despite repeated requests for police protection.

“This criminal act is a direct blow to freedom of information and we deplore the attitude of the police, who failed to do what was necessary to prevent the attack although the head of TV station requested protection a few hours before it took place,” RSF said in a statement on Monday.

CCTV footage of the attack shows six masked men armed with machetes and iron bars breaking into and entering the station’s headquarters and dousing its offices in gasoline before setting it alight.

Speaking to the press on Monday, Chief Superintendent of Police Abdulla Nawaz said the police had been unable to station officers at Raajje TV as many were being utilised at the Maldivian Democratic Party’s (MDP) protests following a Supreme Court order to suspend presidential elections.

“Our human resources are too limited to have police stationed there. So we get the police to check the area when they are out on patrol,” he said. Nawaz also said the owners of Raajje TV were negligent in protecting their property given that they had heard of an impending attack.

“What I am saying is we are utilizing a lot of police officers in the current situation in Malé [the protests], this is not to say that we are not overseeing security on the streets of Malé. We would not do that. What I am saying is when something like this happens, Maldives Police Services gives the best service we can to everyone,” Nawaz said.

The police have received CCTV footage of the attack, but have not made any arrests yet. Nawaz appealed to the public to forward any information

“It is not just those people who carried out the act who are responsible and involved in this. We believe others are involved in this,” Nawaz added.

RSF have called on the police to launch an investigation immediately and urged the government to provide Raajje TV with proper equipment to help the station resume broadcast.

Broadcasting resumed

CCTV footage shows six masked men breaking the lock on a reinforced steel grill and the main wooden door, before dousing the station’s control room with gasoline and setting it alight. Further footage shows a fireball blowing the door of the station off its hinges as a massive explosion engulfed the control room.

The building’s security guard was held hostage during the attack and was later stabbed. He is currently receiving treatment for two stab wounds to his back. A woman who was trapped on the terrace of the building was rescued by the Maldivian National Defense Forces (MNDF).

“The police must immediately launch an investigation so that those who started this fire are arrested and brought to justice. We also call on the Maldivian authorities and the international community to help Raajje TV to resume providing news and information as soon as possible,” the RSF has said.

Reporters Without Borders added: “The national authorities have a duty to provide Raajje TV with proper equipment so that it can function in the same way as it did before the fire.”

Despite the fire destroying all of the station’s equipment, it started broadcasting a few hours after the attack – 12:40pm on Monday – with donated equipment.

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.

Several Raajje TV journalists have also reported arbitrary arrests and assaults. In February 2013, men wielding iron rods on motorbikes assaulted Ibrahim ‘Asward’ Waheed 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.

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Three arrested for knife attack

Last night police arrested three persons in connection with a case where a man was attacked using a sharp object.

Police Spokesperson today told Minivan News that the incident occurred last night at about 12:25pm near Male’ Hiya Flat area in Galolhu.

He confirmed that the three were arrested and referred Minivan News to the hospital to clarify information on the injuries received to the victim.

According to sources the victim was stabbed in the chest.

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President Waheed complains to Canada over Foreign Minister’s “inappropriate remarks”, “harshly worded questions”

President Mohamed Waheed has written a letter of complaint to Canadian Prime Minister Stephen Harper, accusing Canada’s Foreign Minister John Baird of making “inappropriate and derogatory remarks” towards Acting Foreign Minister Mariyam Shakeela during the Commonwealth Ministerial Action Group (CMAG)’s meeting on September 27.

The Commonwealth’s human rights and democracy arm had “expressed concern at developments” in the Maldives following the Supreme Court’s delay of the run-off elections, noting the Commonwealth election observation team’s assessment that “this was a credible electoral process and met the standards for democratic elections to which Maldives has committed itself.”

The Supreme Court meanwhile last night annulled the election in a 4:3 decision, citing a secret police report on alleged electoral irregularities and ordering fresh elections on October 20 with enhanced police and government involvement.

In his letter to Prime Minister Harper, Waheed complained that Baird “posed several harshly worded questions… concerning domestic politics in the Maldives”, and said these “put unnecessary pressure on an otherwise excellent relationship” between the Maldives and Canada.

Shakeela represented the Maldives at the CMAG meeting, “and advocated on the need for reforming the Group in order to make the body a more effective and credible one that can help, not hamper, democracy consolidation in the Commonwealth member countries,” according to a Foreign Ministry statement.

“The Minister also highlighted on the need for the CMAG to take matters in proper context, and not to over-react on delicate situations in member countries,” it said.

The diplomatic spat has been widely reported by a bemused Canadian media.

Baird’s office responded to Waheed’s complaint by pointing out “the irony of the Acting Foreign Minister of the Maldives representing that country at CMAG, when her President received five percent of the vote in the first round of the election. Perhaps that is where President Waheed took offence.”

“It might have also been when Minister Baird pointed out to CMAG members that the second round of elections were ‘suspended’ under mysterious circumstances and called on Maldivian officials to proceed with the second round of elections without delay,” said Baird’s Spokesperson Rick Roth, in a statement.

“We believe that this delay is troublesome and can only lead to more instability; which is exactly what we have seen in recent days. The Minister believes that countries within the Commonwealth should adhere to a certain standard of values and principles which is clearly lacking in the Maldives,” the statement read.

“Canada supports the people of the Maldives, and that judicial authorities and security forces must not unduly delay the expression of their democratic will,” it concluded.

Baird has pushed for the Maldives to be placed on CMAG’s formal agenda. Following the group’s meeting in New York, Baird joined Maldivian pro-democracy demonstrators for a photo outside the Australian consulate.

Canadian Foreign Minister John Baird with Maldivian demonstrators
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Comment: Eight reasons why MACL’s share sale either doesn’t make sense, or is a giant scam

Mohamed Waheed’s government has been eyeing Ibrahim Nasir International Airport (INIA) just like a hawk circles around its prey before going for the kill.

Ever since MACL took over the airport from GMR, Waheed has been coming up with one scheme after the other to somehow move assets and ownership of INIA. Whenever such changes in ownership of valuable assets occur, a number of people invariably end up making a lot of money during the process.

First, he changed the MACL board and filled it with his political cronies in order to gain total control over the goings-on at INIA. Then, he tried to move all the assets of MACL into another company created through a secret Presidential decree so that it became a shell company, with all the value pulled into the new company.

This failed due to a number of legal issues. But now Waheed has now decided to sell shares in MACL to ‘Maldivian individuals and companies’ directly.

I will count eight reasons why I believe this proposed sale of MACL shares to ‘Maldivian companies and Maldivian individuals’ makes no sense and may potentially be a big scam-in-the-making.

1. Maintaining economic sovereignty or undermining it?

One reason Waheed’s spokesperson gave for this action was to “prevent foreigners from owning the airport in the future and protect the sovereignty of the airport”.

Essentially, rather than keeping control of MACL’s shares with it and hence ensuring the stated objective, it wants to sell these shares to third parties who can then go ahead and sell their holdings to foreigners. You can see the irony in the very argument that Waheed government is making for selling shares in MACL and wants us to lap up. Clearly, they believe that an average Maldivian on the street is silly and will happily agree to anything thrown his way as long as its wrapped with terms like ‘foreigner’, ‘sovereignty’ or ‘enslavement’.

On the contrary, by selling shares to Maldivian individuals and companies Waheed’s government is in fact opening doors for foreigners to actually go ahead and own INIA in the future.

Currently, the secondary financial markets in the Maldives are practically non-existent and it is easy for shares to change hands in off-market transactions. The regulatory framework for share sale & purchase is rudimentary and fails to ensure that equity shares of a company are not effectively transferred to a foreign entity. In fact, Waheed hailed the sale of two sea plane operators to American investment firm Blackstone as a shining example of how he has been able to bring investments into the Maldives. However, these transactions were an equity share sale of two businesses that are at the centre of Maldivian tourism, to foreign companies.

As a result of this share sale, significant control over Maldivian air space as well as businesses that are central to the health of Maldives tourism was given to an American investor. We have already heard of the problems most resorts are facing with the two sea plane operators and how they are being arm-twisted into signing long term agreements on unfavourable terms.

What will stop a foreign investor like Blackstone buying equity shares in MACL from a bunch of individual or large investors, and ultimately becoming the owner of INIA? In reality, it is this proposed sale of shares in MACL that is the start of potential ‘economic enslavement’ rather than a measure to stop the same in the future!

2. An economic necessity?

One argument that could have possibly been put forward by more aware and informed politicians would have been that this share sale is intended to plug the huge gap in the country’s financial position.

All of us know very well about the grave financial situation that the country and the government is in right now. After exhausting all of the recurrent expenditure budget for the year in the first four months, Waheed’s government has been relying on rolling over T-bills to finance its day-to-day expenses. However, it has already ruled out a supplementary budget for finance these expenditures and stated that it would continue to roll-over these T-bills in the short term. In this context, such a significant decision on divestment of state asset to private individuals is clearly neither a part of the government’s strategy to finance its projects and daily expenditures, nor an economic necessity in the current context.

3. All in the course of seven days

When Nasheed’s government privatised the airport, it put up the airport through an international bidding process managed by the World Bank’s International Finance Corporation (IFC). Work on the privatisation started in July 2009 and finished through announcement of the winning bidder in June 2010. Hence, it took 11 months for the previous government to complete a financial transaction related to the airport.

There were many allegations of corruption around the way the process was managed, which were later ridiculed by the Anti-Corruption Commission (ACC). Now, we have a situation where those who alleged financial irregularities in an 11-month long international bid process are looking to sell shares in the same company over the course of one week!

Even if one were to not compare this plan of share sale to local companies and individuals with the previous bidding process, a share sale like this typically takes more than a year for most companies to complete. Planning and execution of a public offering in most cases is a 6 to 12 month process at the minimum in most countries with well-developed regulations and mature financial markets.

However, here we have a case where an outgoing government wants to complete a public sale of shares of the most valuable national asset in a week. Quite clearly, there is much more to this share sale than meets the eye, which is why it may be important to finish the whole process in the blink of an eye.

4. Eerie silence on the valuation of shares or lack of it

Waheed’s government has given no indication at all of the proposed valuation of MACL and the price at which it is planning to sell the shares. Fair valuation of a share is a matter of opinion and a matter of sound professional judgement of bankers who typically assist with share sales. There are no investment banks in the Maldives who could assist with the sale of shares and no research houses which could come out with an investment report for the public to determine whether the determined price of MACL shares is fair value or not. If a share sale has to be conducted, such experts would typically have to be brought in from other countries such as India, Singapore and Malaysia which have developed financial markets.

GMR made a claim of US$1.4 billion for the loss of profits that it would have earned in the next 10 years, which it couldn’t due to the alleged illegal termination of its contract by Waheed government. Equity shares in MACL would entitle one to profits from INIA for the course of eternity. Hence, what we are looking at is a multi-billion dollar financial transaction – 40 percent of this is also going to represent hundreds of millions of dollars, if not billions.

In this context, the fact that no one in the government has made any statement about engaging an international bank or an expert to help determine the fair value of MACL shares is a clear giveaway. There has been no attempt to find out what would be the fair value of MACL shares, and the intention is to sell these to Maldivian companies and individuals in the matter of a week. One can only deduce from all this that the price (likely to be peanuts) and the buyers of MACL shares have already been decided, and what is proposed to be undertaken over the course of next is a likely to be big sham.

5. Waheed’s moral and constitutional authority to make this decision

Waheed’s term is coming to an end on  November 11 and as this column goes to press, efforts are still ongoing to ensure that a new President is put in power by then. Clearly, this is a significant economic policy decision which must be taken by the new President in line with his announced economic policy, based on which he would have been voted into power. Waheed was never voted into power and his manifesto was given a big thumbs-down in the first round election where he received only 5.13 percent of the votes. Clearly, he doesn’t have the moral authority to make such a significant economic policy decision one month before he is scheduled to hand over power to his successor.

As far as constitutional authority is concerned, your guess is as good as mine. With much larger constitutional questions open for debate today, I wouldn’t dare comment on this but I would certainly be surprised if it allows an outgoing President to make such significant economic decisions that have long term economic impact on the state of the nation.

6. A thick cloud of secrecy

What is most important is to understand whether he plans to bypass the Majlis for undertaking this transaction. It was Waheed and his current and former allies who raised their voices against how the GMR concession was awarded without Majlis approval. In fact, this is the legal reason that Azima Shakoor cited as the basis for declaring the GMR contract void ab-initio.

Now that the Waheed government wants to go ahead with share sale in MACL, has he sought or planned to seek Majlis approval for this? He doesn’t have majority in the Majlis now since DRP and MDP have joined hands and this proposal is likely to be shot down given the lack of any ground work as well as his own unpopularity with majority of the Majlis.

Leaving aside Majlis approval, it is not even clear if the majority of the MACL board has passed a resolution authorising any such sale or shares. There are only two statements made by members of the government till now in this regard – by Finance Minister Abdulla Jihad confirming that “40 percent of the shares will be sold to Maldivian public and Maldivian companies as soon as possible” and by the President’s Office confirming the intent of this sale in the next seven days.

MACL CEO Bandhu Saleem has deflected all questions to the Minister of Finance, who has in turn deflected all the detail related questions to the Attorney General. The Attorney General has not spoken on this in public till date, let alone answered any questions in this regard.

7. An ill-timed transaction that suits vested interests

The Maldives is burning today – literally so with Monday morning’s arson attack on the pro-opposition media house Raajje TV. Protests are taking place every day and every night on the streets of Male’ calling for elections as scheduled and for restoration of the basic constitutional right to vote. Credibility of the Supreme Court and other state institutions is under the scanner and the country is almost in a state of constitutional void.

Whichever way one looks, the political environment couldn’t have been more ill-suited for carrying out one of the most significant multi-million dollar economic transaction, of a public asset, in the history of the Maldives.

However, this is also the reason why it is the most suited for a malafide transaction since the national agenda is dominated by fears for the future of democracy. This provides the perfect opportunity for undertaking the most outrageous looting of a national asset and sweeping it under the carpet. Public memory is too short to remember this for long and too preoccupied right now to notice anything else.

8. More of the same game that has been played a few times over the last one and a half years

During Waheed’s tenure over the last 1.5 years, his Transport Minister signed a 99-year lease extension for Mamigili Airport in favour of his political boss Gasim Ibrahim. On the face of it, the minister was fired but the decision was never reversed. The loss that this ad-hoc extension may have caused to the exchequer was never quantified and never spoken about in public.

Under Waheed’s tenure, KASA Holdings owned by ‘Champa’ Afeef bought 30 percent of Addu International Airport for ~US$4 million, thereby valuing Gan Airport at close to US$13 million. This was a private transaction of a public asset and was done under utmost secrecy with news of the sale  given only afterwards in a press briefing by STO’s Managing Director Shahid Ali. There was no justification, no clarification and no questions asked or answered with respect to this private sale of a public asset. It is not even known till date whether the company was even valued higher than the scrap value of its assets.

A very rushed-up transaction, no discussion or record of economic merit, bypassing the Majlis and an eerie silence about the transaction until it is completed have all been fundamental to the modus-operandi till date.

Clearly, this sale of shares in MACL is more of the same game that has been played again and again under Waheed government.

Summing up, this is about to be the biggest looting ever done in the Maldives and it is happening right now in front our very own eyes, orchestrated by a man  none of us ever elected and 95 percent have rejected less than a month ago.

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