Month: January 2014

President reconstitutes tender evaluation board

President Abdulla Yameen yesterday reconstituted the tender evaluation board, appointing Deputy Tourism Minister Hussain Lirar its new chairman.

Other members appointed to the board were State Attorney Moosa Alim, Zeeniya Ahmed Hameed, deputy director general at the Housing Ministry, Ahmed Ifthihar, director at the Economic Ministry, Rilwan Adam, director at the Finance Ministry, Mohamed Ali, director general at the President’s Office, Ahmed Gasim, deputy director general at the Health Ministry, and Saudhulla Hilmy.

President Yameen also made a number of changes to the boards of eight public companies and state-owned enterprises through the privatisation board.

According to local media reports, Dhiraagu Chairman Ibrahim Athif Shukoor was replaced with Rilwan Shareef while a government representative on the Dhiraagu board, Ilham Hussain, was dismissed and replaced with Abdulla Ahmed.

Maldives Water and Sewerage Company (MWSC) Managing Director Mohamed Ahmed Didi along with five board members were also dismissed and replaced.

Among other companies that saw top level changes were the Maldives Marketing and Public Relations Corporation, Housing Development Corporation, Maldives Tourism Development Corporation, Gulhifalhu Investment, Hithadhoo Ports Ltd, Kulhudhufushi Ports Limited, and the Aasandha Company.

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Parliament sitting scheduled for January 26

Speaker of Parliament Abdulla Shahid has decided to hold sittings of the People’s Majlis from January 26 onward to debate revenue raising bills submitted by the government.

The decision to resume sittings during the ongoing recess was made following a written request by 27 government-aligned MPs, contending that implementation of the budget was being hampered due to the Majlis’ failure to pass the revenue bills.

The three bills submitted by the government include an amendment to the Goods and Services Tax Act to raise T-GST from eight to 12 percent as well as two amendments to the Tourism Act intended to reintroduce the discontinued flat US$8 bed tax and require resort lease extensions to be paid as a lump sum.

Following the Majlis’s failure to extend the tourism bed tax before the end of last year, Finance Minister Abdulla Jihad told local media that the resulting losses to state revenue would be MVR100 million a month.

Among other revenue raising measures proposed by the government include revising import duties, raising airport departure charge for foreign passengers from US$18 to US$25, leasing 12 islands for resort development, and introducing GST for telecommunication services.

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“Time tested” Indo-Maldivian ties to be celebrated during ‘Dosti- Ekuverikan’ week

The Indian High Commissioner to the Maldives today described President Abdulla Yameen’s visit to India as a “huge success”, as details of the India-Maldives ‘Dosti-Ekuverikan’ week were revealed.

“Many glowing accounts have been made of the visit – and rightly so…If I can quote what has been stated by various leaders in India, that a new chapter has been opened in the India-Maldives bilateral ties,” said Rajeev Shahare.

The High Commissioner as media were briefed on the series of cultural events between January 20 and January 26, celebrating the partners’ friendship.

The week – serving as a precursor to the golden jubilee celebrations of bilateral ties beginning in November – will feature film, music, and healthcare events.

Updating media on the state visit at the start of this month, Shahare stated that the positive reception received by President Yameen “reflects the strong, robust, time-tested ties between India and Maldives – dating back to several millenia.”

“The recent visit of the honourable President Yameen further underscores the depth of our ties, the strength of our ties, and also how two countries have always partnered each other,” he added.

Upon Yameen’s return, the trip was lauded as a cure-all for recent tensions between the two states – with former President Maumoon Abdul Gayoom describing current ties as being as strong as during his thirty year tenure.

Shahare noted that there was a “very useful” business forum on the sidelines of the visit, organised by the three apex chambers of Indian business.

Yameen’s calls for Indian businesses to invest in the Maldives had already resulted in interest being shown by two Indian companies in the Malé-Hulhumalé bridge project, said the High Commissioner.

During a meeting with Indian Prime Minister Dr Manmohan Singh, Yameen was asked about the possibility of an amicable settlement in the GMR airport development dispute.

Indian infrastructure giant GMR’s 25-year concession agreement to develop Ibrahim Nasir International Airport was prematurely terminated by the previous administration – with whom Yameen’s Progressive Party of Maldives was aligned.

GMR’s  US$1.4 billion compensation case continues in Singapore whilst the Government of Maldives’ plans for continued development of the airport continue. Yameen has welcomed a return to the Maldives in the future, whilst maintaining that the airport must remain in government hands.

Dosti – Ekuverikan

Revealing details of this month’s friendship programme, the Indian High Commissioner stated that the events were intended to showcase the pair’s strong ties, and also to “bring forward what we intend to do in Maldives.”

After an inaugural event on January 20, Dosti-Ekuverikan week will begin with an Indian food festival at Traders Hotel. The ‘Taste of India’ festival will feature buffet servings from different regions of India over five nights.

A film festival will also be held at Schwack cinema from January 22-24.

Noting that the Indian government recognises that health care is a priority for the current Maldivian administration, the Dosti week will include a free eye camp at IGMH and in Hulhumalé, as well as blood donation camps at the National Thalassemia Centre in Malé.

“We will be getting a four member opthamological team. Two eye surgeons and two technicians will come here…This eye camp will render a free check-up, will also provide free spectacles/glasses, and will also perform minor surgeries,” explained Shahare.

There will also be a yoga camp at the artificial beach on January 23.

Full schedule

  • Inauguration of Dosti-Ekuverikan week – January 20
  • ‘Taste of India’ food festival at Traders Hotel – January 21-25
  • Indian film festival at Schwack Cinemas – January 22-24
  • Yoga workshops at artificial beach area – January 23
  • Indian cultural evening at Dharubaaruge – January 24
  • Indian music festival featuring Indian group ‘What’s in the name’ – January 24-26
  • Free eye camps at IGMH – January 24-26
  • Blood donation camps as National Centre for Thalassemia – January 24
  • DOSTI quiz 2014 – January 24
  • National Art competition 2014, for all schoolchildren – January 15-31
  • Closing ceremony at Dharubaaruge – January 26
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Council elections to continue as scheduled even without candidate signatures

Local council elections will be held as scheduled on 18 January for all councils – with the exception of Villingili constituency of Gaafu Alif Atoll Council – even without the signatures of all candidates voters lists, the Elections Commission (EC) has said today.

EC President Fuwad Towfeek said the elections would be held as planned on Saturday from 7:30am till 4:30pm. He said that the signing of voters lists have been completed for just 81 out of 464 ballot boxes.

“It will be meaningless to continue with just these boxes, so we have decided to continue voting at all boxes,” Thowfeek said.

“Even though it is required we have experienced that it is an impossible task, so holding the election within the legally mandated time frame instead of going on with this would be best for the country,” he said.

The EC noted that all political parties have signed the voters list with the exception of the Progressive Party of Maldives (PPM) who have not signed 62 of the lists. Instead of each candidate signing the lists, the EC has allowed the political parties which the candidates represent to sign on their behalf.

However, independent candidates still have to sign each list on their own, and this, according to EC is the biggest challenge regarding the voters list. Only 147 out of 543 independent candidates competing in the elections have signed the lists so far.

Thowfeek said some candidates have complained about not being able to afford traveling to capital Malé just to sign the lists, and requested the EC to pay for their expenses for staying in the capital.

The EC said they had sought the Attorney General’s legal advice on the matter in order to find a resolution, though the office has twice ignored their request.

Court’s impact on polls

A Supreme Court ruling annulling the first round of presidential elections in 2013 requires that all candidates in an election should sign the voters list at every single box in the country. The EC criticized the guideline as a restriction to carrying out its mandate.

EC President Thowfeek noted that, in contrast to the presidential elections, this election would be much more complex, with 2463 candidates running for a total 1100 seats – 951 island council , 132 atoll council and 17 city council seats.

“In the presidential elections a single ballot paper was used at all boxes, however in this election we are using 268 different ballot papers. Officials and voters should also pay attention to this,” he said.

This, according to Thowfeek, would make it more difficult to get the signatures of all candidates even if the voters lists are sent to each one.

According to the EC, the only council for which the election will be delayed is Gaafu Alifu Atoll Council election – which was delayed following a Supreme Court verdict concerning a candidate rejected by the EC.

The candidacy of Masud Ahmed for the Villingili seat was invalidated based on a Criminal Court document indicating a prior offence. However, when Masud challenged this decision, the Supreme Court ruled that the EC decision to reject his candidacy was itself invalid.

While Masud was sentenced for one year’s house arrest in 1995 for sexual misconduct with a then 18 year old, the Criminal Court said he had a record of “sexual abusing a child or ‘outraging modesty’ of a person”. The Supreme Court verdict pointed out that  Masud’s sentence does not fit into either of these categories.

EC member Ali Mohamed Manik said that, since the verdict came while the election was so near and the candidate will require time for his campaign, the Commission has decided to delay the constituency’s election.

Budget Shortage

EC members raised the issue of a budget shortage as a major challenge. Council elections were initially scheduled for December 2013 and so the funds were included in the 2013 budget. The funds were subsequently not included in the 2014 budget.

The total budget proposed by the EC for 2014 was MVR87 million – already cut down from required approximately MVR95 million to fit the ceiling set by the Finance Ministry – and was later reduced to MVR59 million.

The EC says this amount is sufficient for now, though the commission estimates that after the parliamentary elections this year there will not be any money left.

According to the Commission, there is a pending MVR30 million debt after the presidential elections and companies are refusing to issue services on a credit basis or to lend money to EC.

Commission members stated that they were fully prepared for the elections and that elections officials will start leaving for islands and abroad on Thursday.

While acknowledging that all institutions, including the Maldives Police Service, have assured their cooperation, EC President Thowfeek requested all state institutions, political parties, and members of the public to work with the commission to make the local elections a successful one.

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Comment: Guest house business – my journey

This article first appeared on the Maldives Economist blog. Republished with permission.

Back in 2009, I started a new venture, along with a very close friend, Mohamed Shihan. Back then, it was something very new, something that nobody has started yet. We called this venture ‘White Shell’ as we rented a small house right on the beach of Maafushi. As the government opened up to allow guest houses in local inhabited islands, we were the first to submit our registration. As a result, White Shell Beach Inn, is the first guest house to be registered on a local island. So we became the pioneers in it.

Initially, we invested about MVR300,000 so that we could have 4 rooms fully furnished with AC, and very basic facilities. A small restaurant and a kitchen, and 4 employees. I was working full time in the public sector, as an economist in MMA, during my weekends – I was busy with setting up of the business, and marketing it. As I did not have enough funds for a professional webpage development, I had to learn on developing websites, and tried my luck with it. I developed our first website, uploaded it, and started the online marketing of it. Initial months of losses were borne by the monthly salary that I earned, and loans from my partner in business. We made sure the staff were paid on time, and utility bills paid every month. Some of my friends, and people from the tourism sector advised me that it would be a failure, as it is tourism without alcohol, pork, and bikinis.

Six months in business, with the various online marketing efforts, we were able to get guests from Russia, Poland, Germany, France, and the UK. With my efforts, I was able to put ‘Maafushi’ as a separate destination on various online booking sites, and travel sites. Before completion of the first year, I was able to rent the adjoining house, and later the house next to it, so that before the end of the second year, we were selling 10 rooms, and were running a successful beach restaurant. For the first one and half years in business, we were able to prove to everybody (especially those in Maafushi), that local island tourism can be successfully run for mid-market tourists, and it can be done without having alcohol, pork and bikinis.

During those months that we were the only guest house in the island, guests enjoyed their time on the beach, and Maafushi, without bikini (in covered clothes, of course), and there were no complaints from the locals. This was because, before the guests booked their holiday with us, they were given the information that it is a local island and that government regulation does not allow swimming in a bikini, just like they are aware that alcohol is not available. Hence, guests were fully informed and aware, and there was no room for complaints or dissatisfaction. Moreover, we got additional revenue because of this regulation – as guests preferred to spend their day in picnic islands, snorkeling, of fishing, and other activities, and that’s additional revenue for us.

We have altogether 20 guest houses in Maafushi now, and 144 rooms. Which means even if we didn’t consider the family rooms, that’d be 288 beds, and with 65% occupancy, that’s 68,328 bed nights per year. Assuming average duration of stay is 4 days, that’s 17,000 guests per year. With conservative estimates and past revenue records, it is estimated that about $9.7 million will enter the local Maafushi economy, and the guest houses will be paying the state – as bed tax and GST – a total of US$1.3 million (equivalent to MVR20 million).

The income per head from guest houses alone is $4,425 per head in Maafushi. The total income per head of Maafushi after adding incomes from other sectors will probably be the highest in the country. It is a perfect example of making economic growth more inclusive, and a case study for inclusive development. In fact, I presented a paper last year in Islamabad, during a South Asia Economic Summit.

With the 20 guest houses, more than 100 locals are being employed in various jobs – ranging from speedboat crew, receptionists, waiters, room boys, accountants, and guest relations officers. The majority of youth are actively engaged in economic activities, without having to spend their times in coffee shops or elsewhere, as they did before. Women with children are able to earn at least MVR10,000 a month doing laundry services. Last month we spent from our hotel MVR17,000 for laundry, which is done by a local family.

We – the White Shell – have played a key role in the expansion, and the success of Maafushi as a tourism destination through leading by example, and also assisting others in the setups. And thanks to MATATO, as we have recently been awarded the Maldives Travel Awards as the Leading Guest House, from the category introduced this year.

There is no doubt that this newly developed industry provides huge economic benefits to the local community and the government in the form of taxes. It also provides other positive outcomes like the guest houses taking charge of cleaning the beach area and streets, and taking care of waste disposal. The MWSC (water company), and STELCO are making huge profits from Maafushi, as the per unit rates are relatively higher in Maafushi compared to Malé. With more that 144 air condition units recently installed, Maafushi is spending heavily on electricity (there’s still more to be done in terms of using efficient energy sources).

There are many challenges as well, of course. With starting of many new guest houses, many have come to believe that the bikini is not a problem, and guests are being told so as well. Less seem to complain, however, as almost everybody benefits from the industry. We are yet to find an amicable solution to the issue, with serious discussions between the island council, tourism ministry, and the guest house owners. Other social issues/problems can also be addresses in a similar manner. Which means there’s still a lot of work to be done in order to make the business sustainable, environment friendly, and in order to make the this model a success in other islands. Wish you all a very happy new year.

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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Verdict in Afrasheem murder case expected tomorrow

A verdict in the trial of Hussain Humam, the chief suspect in the brutal murder of MP Afrasheem Ali in October 2012, is expected tomorrow.

The final hearing of the case has been scheduled for 10:00am at the Criminal Court. The late moderate religious scholar’s heirs have all asked the court for the death penalty.

Humam had initially confessed to the murder, but later withdrew his statement claiming it had been extracted by the police under duress.

Humam is already serving a seven-year jail sentence for drug abuse.

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MBC chairman to remain in post after signing for PPM

Maldives Broadcasting Corporation (MBC) Chairman Ibrahim Umar Manik has said he does not intend to resign after signing for the Progressive Party of Maldives (PPM) today.

Manik told local media that the MBC Act does not prohibit board members – responsible for overseeing state media – from joining a political party.

Manik revealed that he was planning to seek the party’s ticket ahead of the parliamentary elections in March, adding that he would resign should he win the primary.

Two former MBC board members, Nahula Ali and Iqbal Adam, had previously resigned to pursue political careers in the PPM and government-aligned Jumhooree Party respectively.

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Nasheed warns of PPM, Supreme Court collusion to subvert elections

Former President Mohamed Nasheed has warned of collusion between the ruling Progressive Party of the Maldives (PPM) and the Supreme Court to subvert local council elections scheduled for January 18.

“We clearly know political party leaders are bribing judges,” said Nasheed, stating that the Supreme Court’s attempt to “destroy the Maldives” will be written in history.

The PPM and 295 independent candidates have failed to approve the voter registry, casting doubt on the possibility of elections being held on Saturday.

In October 2013, the Maldives Police Service obstructed presidential polls at the eleventh hour after the PPM and its coalition partner Jumhooree Party (JP) refused to sign voter lists.

Speaking to supporters at a rally held in Malé on Monday night, Nasheed said the PPM intended to delay elections until the party was able to change the names on the voter registry.

Candidate signature on the voter registry was mandated by the Supreme Court in a 16-point electoral guideline in its verdict annulling the first round of presidential polls held in September last year. The Supreme Court also ordered the Election Commission (EC) to discard their registry and compile a registry based on the Home Ministry’s Department of National Registration’s (DNR) database.

The EC has described the guidelines as “restrictions” that limit the power of the independent state institution.

“With the Supreme Court’s order on the Election Commission to use the DNR list, we are once again seeing PPM and Jumhooree Party attempting to subvert this election against the wishes of the Maldivian citizenry,” Nasheed said.

The MDP did not have time in October to analyse the DNR list, but have now noticed 12,000 non-existent voters on the voter registry, Nasheed said.

“The Election Commissioner has said 5000 individuals without a recorded photo had voted [in presidential polls]. If there had been photos, it would be clear that one individual possessed two different ID cards,” he alleged.

“I am ready to say whatever I must say today”: Nasheed

The PPM and JP are once again preparing for “the same crime” while the Supreme Court is preparing “to once again steal elections,” he continued.

Nasheed accused the ruling coalition of bribing the Supreme Court judges and bribing MPs to keep disgraced Supreme Court Judge Ali Hameed on the bench.

In 2013, a series of tapes which appear to show Hameed having sex with three different foreign women in a Colombo hotel room were leaked on social media. The judicial oversight body Judicial Services Commission (JSC) has failed to take any action regarding Hameed.

“We know political party leaders are bearing the expenses of educating the children of Supreme Court judges. We know they buy land for judges. And we know they send judges on leisure trips to Ceylon [Sri Lanka] and buy them various types of pleasures,” Nasheed said.

He called on the public not to let the Supreme Court manage elections.

“Elections must be organised by the Elections Commission. The Chief Justice and the Supreme Court cannot direct elections. The Chief Justice is in charge of the effort to steal our vote,” he said.

Before his appointment in 2010, Chief Justice Ahmed Faiz had repeatedly expressed concern over bribery of judges, Nasheed said.

“I told Faiz I was appointing him as Chief Justice to stop this [bribery]. Today, Faiz is subverting norms in the Maldives and allowing judges to be bribed. If we do not speak out in fear, there is no greater crime,” he said.

If the public refused to speak out against the Supreme Court’s actions for fear of sentences today, they are likely to receive greater sentences tomorrow, Nasheed continued.

“If we leave our country to these judges, because we are tired or because we do not want to go to jail or because we do not want to bear any other trouble and if we step back, I believe it will be very difficult to obtain the development we desire and to save the Maldives,” he said.

“I am ready to say whatever I must say today,” he continued.

Local criticism of the court’s involvment in the presidential elections was met with a series of contempt of court charges against MDP MPs, its legal representatives, whilst charges have been filed against the MDP-aligned Raajje TV station in relation to a news reports criticising the bench.

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Q&A: MP Mohamed ‘Shippe’ Shifaz – Baarah constituency

In a series of interviews to lead into the the 2014 parliamentary elections – scheduled for March 22nd – Minivan News will be conducting interviews with incumbent MPs.

All 77 sitting members have been contacted, from across the political spectrum, to be asked a standardised set of questions with additional topicals. The interviews will be published as and when they are received.

As part of the series, Minivan News interviewed MP Mohamed ‘Shippe’ Shifaz.

MP Shifaz represents the Baarah constituency in Haa Alif Atoll, and is a member of the opposition Maldivian Democratic Party (MDP).

Daniel Bosley: What made you enter the political arena and how?

Mohamed Shifaz: In my constituency there are about four islands – during Gayoom’s regime there was no development in my area, there was no sewerage, no proper education, there was no harbour, there was nothing. That’s what most of the people are demanding for – their needs. But during our previous term, we didn’t provide these things – in our government, the MDP government.

DB: Based on your attendance and work in this ending term, how would you judge your performance as an MP?

MS: Very few sessions missed – my attendance is good. Also I am working in the parliamentary group – I am also one of the top level. So, I can be there. I think my constituents like me. There are not questions about my performance in parliament.

DB: What are the main committees you were acting on? What particular bills did you focus on?

MS: The General Committee and also the Government Responsibility Committee. [I worked on] freedom of media, and right to information and also the establishment of the broadcasting corporation.

DB: What would you say are the biggest achievements within your term; in terms of what you have accomplished for your constituency and the country as a whole?

MS: I think the achievement is we are establishing a new system – our democracy is very young, and also our parliament is very young, MPs also young. I believe the achievement is to change from dictatorship to democracy and also we got a lot to the people. Now they have the right to a demonstration, they have the right to media, the have many rights through the parliament, through the MDP government. So they are out achievements for the people.

DB: What would you say is the biggest mistake or worst step you have taken in your career? Why?

MS: Most of our parliamentary group MPs they have personal events, so in my career also there was something, but I think it’s not an issue. It is through the blackmailing from these coup government peoples.

DB: Are you taking the optional committee allowance of an additional MVR 20,000? Why or why not?

MS: Yeah – I didn’t vote for that.  I’m also taking but I didn’t vote for it. Also my constituents, they don’t have any problems with it – nobody calling. But I didn’t vote for it.

I think, in my constituencies, all these people are demanding for their own development. They are always demanding for proper education, water, sewerage – these things. They don’t care about the committee allowance, because we are spending it all to them. I think it’s separate, in my own view. It’s not a good thing, but we don’t have another choice.

DB: What is your view about parliamentarians and other public servants declaring their financial assets publicly for the electorate to be able to refer to?

MS: I don’t have any business other than this, I’m not doing anything to raise finance. So, I can do everything they need and I show statements and everything. Every year I submit to Majlis so they can collect it from me. I think it’s not a problem also.

DB: Are you re-contesting in the next elections? What do you hope to accomplish should you be elected for a new term?

MS: Yes. I think I can do it. I can do it and my constituents also, they want – because I didn’t fulfil their needs this term. I believe my job is not finished, not done yet. That’s why I need next term.

I am going achieve the water, sewerage, also the harbour, education, health sector. There are major issues, most of the people are jobless – we need to create more jobs. I think my main goal is to achieve that, jobs for them. Also the drug issues, the child abuses – this is also a very serious issue in the constituency, especially the drug issues. Most of our youngsters are the victims of these things.

DB: What improvements do you feel the 18th parliament will need to make to improve as an institution?

MS: From government, we need more support from them. They are favouring their few members – this is not the way I think. We must have these immunities, the privileges. If they want to arrest, they can arrest – anytime. We don’t have any independence to work here. I think this is from government we need support.

DB: What are your thoughts on party switching – do you think it undermines the party system?

MS: I think the party system is the only think we’ve got. Without the party system we couldn’t get anything for the people. The party is very important for the Maldives, these small nations. But I think most people that because of the party system we have some social issues, but after five or ten years everything will be fine.

DB: What do you feel the major issues of concern will be for you constituents over the next five years?

MS: The situation has not changed, several needs they are demanding so I think I am always representing from them. If they don’t want me to do something, I’m sure I will not do that. If they don’t want me to be in parliament, I will not be there.

I think the most important thing is to establish rehabilitation for the youth, I mean for drug victims. Next five years, my target is to establish a rehabilitation centre in my constituency for the drug victims.

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