Day: December 24, 2013

Government seeks developer to build, manage multi-speciality hospital in Hulhumale’

The government has announced a plan to open an international standard multi-speciality hosipital in Hulhumale’, and asked for submission of proposals to develop and manage it for a minimum period of 35 years.

The Hulhumale’ multi-speciality hospital will be the first of its kind in the country, offering specialist treatment for a variety of ailments. The government intends to run it as a public private partnership project, where the developer must design and finance the project themselves.

President Abdulla Yameen Abdul Gayoom’s administration has held separate weekly press conferences on its economic, education and social policies. The government has announced a raft of ambitious plans, including the building of a bridge between Malé  and Hulhumalé and developing regional airports.

The hospital will have 337 beds, and will be of a standard which can cater to both local and foreign patients, Economic Minister Mohamed Saeed said in a press conference held today.

Minister of Gender and Health Mariyam Shakeela provided details; 309 of these beds will be reserved for in-patients, with the remaining 28 beds being used in the Intensive Care Unit. She stated that it is a key objective of the government to ensure that citizens are able to obtain quality healthcare at inexpensive rates.

She further stated that one reason a multi-speciality hospital is located in Hulhumale’ is to avoid probable over-crowding in capital Male’ City’s state-owned hospital IGMH upon introduction of new and better services. She said that this would lead to a decrease in the number of citizens seeking medical services abroad.

While the government has not yet decided on a particular site to build the hospital, Shakeela said that all efforts will be put in to attempt to find a location agreeable to both the state and the party developing the hospital.

Meanwhile, the Maldives National Defense Forces (MNDF) has said it will upgrade the military hospital Senahiya and open it up for the public.

Plans for a similar hospital in Hulhumale’ were first discussed in 2004 during former President Maumoon Abdul Gayyoom’s administration.

In 2009, then President Mohamed Nasheed’s administration also held discussions on the matter in the National Planning Council.

The previous government headed by former President Mohamed Waheed also announced for proposals twice in 2012, with just one applicant the first time, and none during the second. The government will provide them with a plot of land as state equity.

Economic Minister Saeed expressed confidence that although previous governments could not find interested companies to develop the hospital, he believed that “the current government will successfully achieve this as investor trust is rapidly increasing in recent days”.

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Inmates to work on Thilafushi road construction

Fifty inmates are to start work on a road construction project on industrial Thilafushi Island on Saturday as part of a re-integration program, the Ministry of Home Affairs has said.

Speaking at a Monday night event on President Abdulla Yameen Abdul Gayoom’s policies on youth development, Home Minister Umar Naseer said 70 percent of Maldivian prisoners fit into the youth demographic.

“There is no country in the world where detainees are not made to work. This administration’s aim is to make detainees in our jails work in various government projects. To bring them out of their current situation,” the Home Minister said.

When criminals remain in detention without work, society is deprived of major youth contribution, and forces the government to employ foreign laborers, Naseer said. Further, the state spends a high amount on prisoner care, while families of prisoners are driven to financially difficult situations, he said.

While the labour program is voluntary, detainees will be selected based on their disciplinary records while in prison and suitability for the work. They will be paid a stipend; half of which will be taken for development of the detention centers, and detainees will be given the choice to either save the remaining earnings or to send it to their families.

Naseer predicted that by the end of 2014, 400 out of 730 detainees will be working on some project, thereby preparing them for reintegration into society.

In order to prepare detainees for such work, vocational training programs will be introduced in Maafushi Island prison in the near future, he also said. The program will desensitize them to work environments, and hone a number of skills.

“Through these trainings we will be able to create electricians, air conditioning unit repairmen, and many other skilled workers. Our hope is that someday, society will benefit from services by those currently in our prisons,” he said.

DPRS to oversee detainee workers

According to the Home Ministry, the Department of Penitentiary and Rehabilitation Services (DPRS) are to oversee the program.

State Minister for Home Affairs Hussain Manik Dhon Manik said DPRS guards will keep watch over inmates and emphasized that special focus would be given to ensure that detainees do not have any opportunity to smuggle in illegal drugs or other contraband into the prisons.

“We will not be negligent in any aspect of guarding detainees. We will not allow any illegal acts to be carried out even in their work environments,” he asserted.

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Finance Ministry shuts down 2013 budget

The Ministry of Finance and Treasury has shut down all state expenditure except for salaries.

A circular sent to all government offices yesterday said the annual budget for 2013 has been “shut down” starting today.

“However, once all the expenses for staff salaries are arranged for, and if the budget allows for it, we will settle absolutely necessary expenses through the 2013 budget,” Minister of Finance and Treasury Abdulla Jihad said.

The parliament had passed a MVR 15.3 billion (US$ 992 million) state budget for 2013. According to the MMA, despite a higher than expected increase in income from taxation, the deficit for 2013 is expected to rise to MVR 1.7 billion (US$ 107 million) or 5 percent of GDP.

The government has faced serious cash flows during this year after the parliament failed to approve new revenue raising measures which comprise about 15 percent of projected income or MVR1.8 billion (US$116.7 million).

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 the government 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.

According to the World Bank, the Finance Ministry turned to monetization, build up of arrears and short term T-bill sales to finance the budget deficit. These methods pose “macro risks,” the World Bank said.

On December 16, the Majlis passed a US$ 29 million loan from the Bank of Ceylon for budget support. The loan carries an interest rate of 8 percent and has a grace period of one year. The monthly repayment amount is $490,000.

Opposition MPs have criticized the government’s borrowing from commercial banks at high interest rates, but Jihad has said the Maldives has no choice.

At present, public debt stands at an “unsustainable” 81 percent of GDP, the World Bank has said, projecting debt to rise further to about 96 percent by 2015.

Meanwhile, the People’s Majlis has extended the deadline for MPs to submit amendments to the proposed budget for 2014 until 4 pm today.

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Police and MNDF on recruitment drive

The Maldives Police Services has issued an advert today seeking 50 new police officers.

Meanwhile, the Maldives National Defence Forces (MNDF) has said it has received 470 applications for 45 newly opened jobs.

The recruitment drive for security officers comes amidst criticism over high defense spending.

The proposed state budget for 2014 allocates MVR 876.7 million (US$ 57 million) for the defense sector – 5.3 percent of the MVR 17.5 billion (US$ 1.1 billion) budget.

Meanwhile, the World Bank in a report published in November said the Maldives’ already excessive wage bill had ballooned in 2013 due to salary increases for the police and military, as well as the Supreme Court ordered back payment of civil service wage cuts.

The Maldives is spending beyond its means, the World Bank has said.

According to the MNDF, 45 recruits will be chosen based on a process involving aptitude, fitness, medical tests and a final interview.

The current recruitment drive is expected to staff Marine Corps, Special Forces, Fire and Rescue Service, Special Protection Group, Military Police, Medical Service, Corps of Engineers, Service Corps and Coast Guard. The minimum requirements for recruits include being of 18-28 years of age and completing tenth grade with at least four passes.

MPS is seeking 25 female and 25 male officers for the police constable rank.

The former President Dr Mohamed Waheed Hassan and current President Abdulla Yameen Abdul Gayoom have both courted the security forces, offering increased pay and benefits to the military and police.

Mutinous elements of the police and military precipitated the resignation of the country’s first democratically elected president Mohamed Nasheed in February 2012.

A special housing program for military personnel was announced during Dr Waheed’s administration after retired colonel Mohamed Nazim was appointed as Defence Minister.

Nazim, whom the opposition MDP accuse of playing a lead role in bringing down President Nasheed’s government in a ‘military coup’, was reappointed as defence minister by President Yameen.

Earlier this year 50 Hulhumalé flats were awarded to MNDF officials, and foundations were for another 300 were laid.

During his presidential campaign, President Yameen pledged to retain this program and to further improve the military by providing resources and amending laws to empower the institution.

Yameen also pledged to provide accommodation for families of soldiers posted outside their residential islands. Some of these have been included in his first 100 days road map.

Following his re-appointment under Yameen, Defence Minister Nazim announced 72 new flats will be built for the MNDF in Male’, and said he intends to establish a TV Channel and a day-care center for children of military officials. Facilities at the ‘Senahiya’ military hospital are to be improved and the hospital is to be opened up for public.

Nazim has also said the military intends to establish a welfare system that does not rely on the state budget.

The MNDF cooperative society SIFCO has registered a joint venture “Sifainge Welfare Kunfuni (SIWEC)” with the government to fund military welfare services. SIFCO owns 90 percent of the company.

SIWEC has already invested in the tourism industry and has started development of “Uthuru Thilafushi” for military use and has expressed an interest in real estate in the future

In his recent trip to India, Nazim sought India’s help in strengthening the Maldives military, obtaining a helicopter. India has also pledged to provide a landing craft.

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