Day: October 18, 2013

Comment: ‘Mega-loot’ – the murky and frightening sale of MACL

In my previous article in this column, I raised eight pertinent questions about the Waheed Government’s plan to sell 40 percent shares in MACL to Maldivian companies and individuals.

  1. Does the proposed sale maintain economic sovereignty or undermines it?
  2. Is the sale of MACL shares really an economic necessity in the current context?
  3. What is the reason why the sale has to be conducted within a span of 7 days?
  4. Why is there an absolute silence on the valuation of MACL shares?
  5. Does Waheed have any moral or constitutional authority to make this decision?
  6. Why is there absolute secrecy on issues such as the process to be followed for the sale?
  7. Is the timing of this transaction appropriate or is it designed to suit vested interests?
  8. Are we seeing a repeat of a series of shady transactions in the aviation space like Mamigili Airport lease extension and sale of Gan Airport to the Champa Group?

My conclusion based on a detailed review of each of these questions was that this proposed sale of MACL shares has all the elements of a big scam and that the Waheed government is going ahead with it brazenly.

Since then, the Privatisation Board has come out with a strongly-worded statement that the only prerogative to manage the privatisation process for government owned companies lies with itself.

Strangely, the board hasn’t even been contacted as yet for anything related to the proposed sale of MACL shares. Vice Chairperson of the Privatisation Board Mohamed Yasir quoted specific sections of the law that gives power to the privatisation board to decide on which companies to privatise, what should be the fair process, what should be the fair valuation as well as the process of establishing the same through an independent expert.

The above statements highlight the audacity of the attempt being made by Waheed government at this mega-loot. I have raised the question of Waheed’s moral and constitutional authority earlier. It now seems that that Waheed Government hasn’t even been acting within its legal authority on this issue. As per the process laid out in law, such privatisation of a government asset should be managed by the Privatization Board after getting Majlis approval for the same. I understand, based on discussions with people who are in the know of things that Waheed has set up a Special Committee headed by Azima Shakoor to manage the process for sale of MACL shares. In essence, rather than having the Privatisation Board and the Majlis take decisions and manage the process, it is the Special Committee headed by Azima Shakoor, Economic Committee of the cabinet and the MACL Board which have been asked to take decisions and manage the process. This is a constitutional transgression by an outgoing government, which certainly needs to be stopped in the tracks.

As a matter of fact, the ‘decision’ by Economic Committee of the cabinet is illegal to start with, since it is not authorised by law to make that decision and at best, they could have put forward a proposal to the board highlighting all the economic arguments and analysis in support of the proposal.

What is also most interesting to note here is the fact that an economic decision by the cabinet is not implemented by the Finance Minister but by the Attorney General, who is supposed to be the legal advisor to the government. So much so that the government’s Finance Minister doesn’t even have the authorisation to answer any questions related to this issue and he has been diverting all questions towards Azima Shakoor. It is not the Attorney General’s mandate to head committees which implement a major economic policy decision of the government. That the Attorney General is heading the committee also says a lot about what is going on – it clearly indicates that Waheed government’s focus is on ensuring that they get away with this sale without any legal hurdles rather than ensuring that government gets the right economic value for its asset.

It is difficult to understand the rush for selling MACL shares by a government that will have no constitutional validity three weeks from now. This level of urgency in selling off government assets may have been called for had we been in very severe economic trouble with an imminent risk of sovereign default or any other comparably dire situation. Fortunately for the Maldives, such a desperate situation hasn’t arisen as yet and this level of urgency behind the rushed sale process is certainly suspicious and needs to be investigated deeply.

Moreover, divesting a state asset is a significant economic policy decision. In most democratic countries across the world, and our democracy is modeled on principles from such stable democracies, there is a code of conduct put in place in light of a pending election. For example, as soon as the elections are announced in India, which is typically 6-8 weeks before the election date, a code of conduct comes in place which prohibits the government from making any new decisions or even undertaking activities such as laying foundation stones for projects! For these 6-8 weeks, the government in power is barred from making any new decisions and only has to focus on implementing the already ongoing initiatives. However, we have a case here where an out-going President is making and implementing a major economic policy decision one week before Presidential elections and only three weeks before he is certain to remit office.

As an unelected President, Waheed has made a number of significant economic decisions about our national assets in the last 1.5 years and has got them wrong, which will have a significant bearing on the country in the times to come. He allowed the sale of two seaplane operators to a single monopoly player but never cared to assess the implications of letting a critical part of Maldives’ tourism value chain be totally controlled by a single entity with now unchallenged power over the entire tourism sector. Much of the tourism industry has already highlighted how the sale of sea plane operations to a single monopoly player is posing an increasing threat to the viability of many resorts.

He also unilaterally cancelled the GMR concession agreement without caring to understand the potential future costs of the decision on future generations and the available trade-offs. Early indications are that the GMR arbitration is not going too well for Waheed government and we may potentially be looking at a huge claim from GMR by next year, which will ultimately have to be paid for by taxpayers like you and me.

He may no longer be the President in three weeks but he is doing all he can to make one final and the most outrageous raid on the Maldives exchequer to satisfy his and his cronies’ insatiable thirst for our national resources. All the early warning signals are there and enough alarms have been raised well in time for all the relevant independent institutions such as ACC, Privatisation Board and the Judiciary to take note of this mega-scam-in-the-making. It will be a significant failure of Maldivian institutions and even the Maldivian people if an unelected head of government is allowed to get away with this significant a loot, bypassing all the regulations and laws laid out in our constitution.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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MDP, PPM, JP host final campaign rallies amidst uncertainties of election day proceeding

Candidates contesting in the fresh round of presidential elections scheduled for October 19 held their final major rallies in capital city Male’ prior to election day, each expressing views about how Saturday’s voting may proceed.

The Maldivian Democratic Party (MDP), which received the majority votes – 45.45% – in the now annulled September 7 first round held their rally at the open grounds near the tsunami monument, with several thousand supporters in attendance.

Candidate Mohamed Nasheed, his deputy Dr Mustafa Lutfi and the party’s Chairperson ‘Reeko’ Moosa Manik were among those who addressed the rally, with key politicians from the Dhivehi Rayyithunge Party (DRP) including its leader Ahmed Thasmeen Ali also speaking.

Progressive Party of Maldives (PPM) held its meeting in Dharubaaruge’s Dhoshimeyna Hall with approximately 600 supporters in attendance. In addition to the party’s presidential candidate Abdulla Yameen, his half-brother – PPM leader and former President Maumoon Abdul Gayoom, vice-presidential candidate Mohamed Jameel Ahmed, current Minister of Tourism Ahmed Adheeb, as well as several MPs were in attendance.

Jumhooree Coalition held their rally in their campaign headquarters, Kunooz, with a similar turn-to the PPM’s rally. Besides Jumhooree Party (JP) leader and candidate Gasim Ibrahim, political leaders from various coalition partners spoke at the rally. This includes former Interim Deputy Leader of PPM Umar Naseer and Adhaalath Party (AP) leader Sheikh Imran Abdulla.

“On Saturday, people will re-ascertain their right to vote”: MDP candidate Nasheed

MDP presidential candidate Mohamed Nasheed told the thousands of supporters gathered to hear his address that Saturday’s vote, in addition to electing him president, will also be the day that the people re-ascertain their constitutional right to elect a government for themselves.

“Citizens of Maldives desire reform, they want a system which will establish better living standards for themselves. They want a democratic system, to establish a government of the people through a vote. The people’s nature is leaning towards an election, towards change and to maintain democratic norms in the country. MDP is a party centred on development, it is a party which moves swiftly forward,” he stated.

“Important days are coming up in the life of the Maldives, with day after tomorrow being one of the most crucial days. This coming Saturday is the day on which through sheer determination and will the Maldivian people will re-establish their right to vote despite attempts by those involved in the 30 year autocratic regime trying to strip the people of this very fundamental right. It is the day when we will, God willing, win this election in one single round,” Nasheed said.

“For ages, Maldives has had a culture where elections are tampered with. We are still hearing the people from the 30 year regime speak of this philosophy of election tampering from their various political podiums. They claim that it is in the interests of the country, and for religion and nation, that they have been tampering with citizens’ votes. However, today the most important basis of our Constitution is the right to have a fair democratic election. Although there is a small number of people still trying to mess with the votes cast, the people are no longer willing to allow them to do so,” he continued.

“For the better part of two years we have been hearing the chants ‘where is my vote?’ and ‘we want elections now’. It is deeply set in our hearts that the ‘baaghees’ [traitors] have stolen our votes, that ‘baaghees’ have been treacherous towards our votes. Our citizens are not ready to lose these votes,” he said.

“Saturday’s election is not just about electing Kenereege Mohamed Nasheed as president. It is the day citizens regain their right to vote”.

Nasheed further echoed the various pledges outlined in the party’s “Costed and Budgeted Manifesto: 2013 – 2018”.

“We will restore lost individual rights”: PPM candidate Yameen

Meanwhile, PPM candidate Abdulla Yameen reiterated the party’s stance of proceeding with an election if the Elections Commission (EC) abides by the Supreme Court’s 16-point guideline.

“Together, we have decided to vote in a system that protects fundamental rights, and ensures a free, sincere vote to elect who they choose to be president,” Yameen said.

Yameen said the party has still not received the finalized voter registry and noted that party members continued to file complaints over re-registration.

According to the Supreme Court, every candidate is required to approve the voter registry for the election to proceed.

At a press conference on Thursday evening, the PPM had said it required 72 hours to approve the voter registry. The EC has given political parties until 6 am on Friday to sign the registry.

Yameen pledged to “restore lost individual rights” and said a PPM government would end arrest of political rivals and judges. The PPM will increase revenue, ensure a balanced budget, increase old age pensions to MVR5000 per month, and ensure fishermen were given an allowance of MVR10,000 in low season, Yameen said.

“We will bring you development like you’ve never seen before. Development is certain with us,” he said.

Speaking of challenges the PPM had faced during the campaign, Yameen said the party had not had enough time to circulate the party’s manifesto.

PPM published its manifesto only four days before the annulled first round of presidential elections held on September 7.

“Main concern is the voters’ registry; if it’s satisfactory will proceed with elections”: JP candidate Gasim

The JP rally also consisted of nearly 600 supporters, with leadership figures from the coalition including former PPM interim deputy leader Umar Naseer, AP leader Sheikh Imran Abdulla, AP deputy leader Dr. Mauroof Hassan, former Defence Minister Tholhath Ibrahim Kaleyfaan filling the front lines.

JP Candidate Gasim Ibrahim stated that among the 16 points provided by the SC, the key concern for the party was the one regarding the voters’ registry, adding that this is where problems had risen for him even in the first round of elections on September 7.

“We had to go to court after these problems arose because the EC refused to cooperate and address our concerns. I want to call upon the EC to refrain from doing so this time around. I’d like to request the EC to work closely with us citizens considering that this is to do with citizens’ vote. This approach will be what is in the best interests of this country,” Gasim said.

“If we do get to vote on Saturday, it must only be under an assurance from observers and other relevant administrative authorities that the election will proceed in a manner that we too can readily accept, otherwise we will end up with the same issues as the previous round.”

Gasim addressed the party’s monitors, advising them on key issues to ‘keep a keen eye on during voting hours’, saying “As there hasn’t been very many elections here, people are not well-trained on how it should go. We must be vigilant at all times and keep an eye out to see if any voter tries to keep his hand in his pocket nonchalantly and then pull out and try to drop in an extra ballot paper while casting the vote. We must keep watch and see if they try to mix up anything during the counting of votes. And we must get close enough to be able to see if, after counting, they are placing the correct number against our names. We know the EC has previously committed such acts, where they mix up runner-ups and those who come third”.

Gasim stated that the party will “accept elections readily if it is conducted in accordance with the guidelines issued by the SC” and that the party is ready to proceed with voting once they are “absolutely certain that the voter registry satisfactorily meets our standards”.

“I want to say that we need not reveal what we will do if we come third, as we will not end up in that slot again. We can make decisions about that once we reach that situation, as I am certain that the different parties in our coalition will have their own different views about this. There is no rush, it’s not like we are a soul caught in a life or death situation.”

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