Month: March 2014

Pensions office performs U-turn on benefit increase

After initially reporting that the promised pension increase from MVR2300 to MVR5000 could not be done this month, the Maldives Pension Administration Office (MPAO) today confirmed that it is working to transfer the MVR5000 by tomorrow.

The CEO of the office had yesterday told Haveeru that it had not received the additional funds for the increase and that it would therefore transfer the current MVR2300, giving the rest when the government released additional funds.

“They are doing this to fulfill a government pledge. This has nothing to do with the pension fund. We will not increase it to MVR5000 by taking money from that fund. What we will do is transfer it when the government provide us with it,” Manik was quoted as saying.

The state funded pension for all citizen’s above the age of 65 was introduced in 2009 at MVR2,000, and was later increased to MVR2,300 through an amendment to pension legislation.

A further increase to MVR5000 – starting from March 2014 – was an election pledge of President Abdulla Yameen, though changes to the amount disbursed from the existing pension funds will require another amendment to the act.

Cabinet minister Ahmed Adeeb has recently assured that the increase would take place in March as promised, saying that it can be funded through a sustainable model based on long term bonds and T-bills.

Adeeb also talked about the prospect of combining various funds such as housing, health insurance, and pension funds into a single fund.

The government had already allocated MVR470 million (US$ 30.5 million) in the state budget for the MVR2,300 allowance (US$149). These funds will now be invested in the retirement pension fund or in financial instruments such as T-bills in order to generate the monthly MVR5000 stipend, Adeeb has said.

Following Manik’s comments yesterday, Adeeb told Haveeru that the delay was due to the first of the month falling on the weekend and “because it is a new allowance”.

Yesterday, MPAO CEO Manik stated that eighty percent of the pension funds are already being invested in T-bills sold by the government to finance the budget deficit, and that discussions with the government are underway to invest the rest of the funds in bonds.

While the government maintains this to be a sustainable model of financing the increase in pensions, critics have argued that, with a MVR1.3 billion (US$84.3 million) deficit budget, the move will plunge the country further into debt.

“These are loans, and taking loans is acceptable to invest in to increasing productivity. But this is not such an investment, this is something the government is spending. Eventually people will have to bear the burden of this,” former Economic Development Minister Mahmud Razee has remarked.

Last December, the central bank and regulator – the Maldives Monetary Authority – advised the state to pay all due treasury bills and treasury bonds and to turn existing short-term debts into long-term ones.

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President Yameen delivers first presidential address

President Abdulla Yameen today delivered his first presidential address in the parliament’s first official session after recess.

President Yameen detailed his administration’s achievements – claiming success in all the 100-day initiatives.

He explained that the executive had now drafted a legislative agenda for the next five years which would be gradually submitted to parliament in the form of draft bills.

The opposition Maldivian Democratic Party (MDP) has described the address as “taciturn and rather nonsensical”, arguing that major issues such as the Supreme Court and the recent HIV scandal at IGMH were ignored.

Opening the ceremony, Parliament Speaker Abdulla Shahid noted that this was first instance where an MP has been unable to attend the presidential address due to incarceration, referring to MP Abdulla Jabir.

Shahid also condemned the attack on MDP MP Alhan Fahmy, calling for the cessation of all acts against the implementation of rule of law and legal obligations. Alhan attended today’s ceremony returning from Sri Lanka where he underwent spinal surgery following his February stabbing.

The president began his address by noting that, although national debt would increase this year to MVR31 billion, the debt percentage can be maintained at 78 percent of GDP in 2014.

Government developments

Yameen said that the government had decided to construct a youth city in Hulhumalé and that physical work on construction of a bridge connecting capital city Malé to the airport island Hulhulé will begin before the end of the year.

He added that once the development of the Ibrahim Nasir International Airport in Hulhumalé is completed, it can be maintained for use for a duration of at least 50 years, and that the construction of two new airports – in Kulhudhuhfushi and Felivaru – have now been opened for bidding.

Yameen also spoke of the need to strengthen investor confidence, and pledged to eradicate all obstacles and difficulties currently faced by foreign investors.

Yameen noted that the number of tourist arrivals had already increased to 348,000 in the past three months, stating that this added US$70 million to government earnings. He added that the government intended to introduce tourism to atolls currently not involved in the sector.

Regarding the fisheries sector, Yameen stated that a system has been put in place where fishermen who earn less than MVR10,000 a month will be given financial aid from the state. He added that this will commence in a period of two months.

He also pledged that scholarship schemes will be offered in the near future to students who pass a minimum of three GCE Advanced Level subjects.

On the topic of health services, Yameen stated that arrangements are being made to introduce new health facilities – including ambulance speedboats – to the country. He added that an initiative has now begun where existing health institutions are being categorised and supplied with the necessary medical equipment.

The president said that the government would shortly submit a bill to parliament seeking to provide financial aid to persons with special needs,as well as a bill seeking the establishment of special economic zones within the country.

MDP Response

MDP Spokesperson Imthiyaz Fahmy described President Yameen’s address as ignoring many pressing issues, suggesting that he appeared “disconnected with what is happening here and now”.

“To begin with, the whole country is appalled and in shock about the HIV infected blood transfusion at IGMH which recently came to be known of. And yet, there was no apology or even a mention of the matter,” said Fahmy

Fahmy suggested that the president spend excessive time discussing administrative issues such as queues outside government offices and phones not being answered efficiently at the expense of issues of wider importance, such as the judiciary.

“This is something the whole world is talking about, that our judiciary needs to be reformed. And yet, Yameen did not even mention them,” Fahmy continued.

“He also failed to condemn the way the Elections Commission is being unconstitutionally dragged to the Supreme Court at a time when there is an election looming overhead.”

The party’s official response will be delivered via the Majlis.

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Police seize drugs worth over MVR70,000

Police have arrested a 19-year-old man from the island of Thinadhoo in Gaaf Dhaalu atoll with 271 cellophane packets containing illicit narcotics.

According to police media, the street value of the drugs is estimated to be in excess of MVR70,000 (US$4,540).

The suspect was taken into custody around 10:00am this morning by the Thinadhoo police station following intelligence information indicating that he was peddling drugs.

The drugs were found in the suspect’s room, which was raided by police with a search warrant.

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MP Alhan Fahmy returns to Malé following stabbing

Maldivian Democratic Party (MDP) MP Alhan Fahmy has returned to the Maldives after recuperating in Sri Lanka following a stab attack in Malé last month.

Local media reported that the Feydhoo constituency member returned yesterday, walking with a crutch following initial fears that the wound received to his back may have caused permanent paralysis.

Alhan, set to contest for his parliamentary seat as an independent later this month, is said to be planning a press conference in the near future, reported Haveeru.

The Civil Court last week accepted the MP’s request to look into the MDP’s Feydhoo primary contest – which took place just days before the attack. Alhan has claimed the vote was fraudulent.

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Hundreds queue to submit forms to Hajj Corporation

Additional reporting by Ahmed Naish

Hundreds of would-be pilgrims have been queuing outside Dharubaaruge since last night to submit forms to the Hajj Corporation.

The corporation began accepting application forms at 9:00am this morning.

Of the 800 pilgrim quota afforded to the Maldives by the Saudi Arabian government, 400 were reserved by the Hajj Corporation. The remaining 400 pilgrim quota are to be divided among local Hajj groups selected through a bidding process.

The bidding process for the remaining allocations was halted last week, however, as the Anti-Corruption Commission last week ordered the Ministry of Islamic Affairs to revise the criteria for awarding quotas.

As of this morning, the number of people queuing outside Dharubaaruge reportedly exceeded 400 people.

The government-owned corporation announced last week that its rates for the pilgrimage were MVR69,965 (US$4,537) per person. Maldivians who have performed the annual Hajj pilgrimage to Mecca in the past would not be eligible.

Chairwoman Dr Aishath Muneeza told the press that the corporation will accept application forms for a one week period. The selected individuals will be announced after processing the forms and verifying information, she said.

Muneeza said the corporation’s goal was to provide quality service for the 400 pilgrims.

The corporation signed an MoU with the Maldives National Defence Force earlier this year for officers to assist pilgrims during their trip to Saudi Arabia.

According to the corporation, the hotels chosen for accommodating pilgrims will have ATM machines, internet, hot and cold water, coffee and tea at all times and room service at least once every day.

Other amenities and services include loading and unloading of luggages, 24-hour religious lectures, and laundry services. The corporation said it would allow a maximum of four people in each room.

For those with long-term Hajj plans, the corporation has introduced a “saving package” which can be purchased with an initial payment of MVR500.

The clients of this package will be allowed to make the Hajj pilgrimage when 75 percent of the total payment is completed on an installment basis.

Performing the Hajj pilgrimage at least once in a lifetime is one of the five pillars of Islam.

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Resigning not the solution: Health Minister Dr Shakeela

Resigning in the wake of last week’s transfusion of HIV positive blood to a patient is not the solution to problems in the health sector, Health Minister Dr Mariyam Shakeela told MPs on the government oversight committee on Friday (February 28).

Dr Shakeela told the opposition-majority oversight committee that “human error” was to blame for the incident at the government-run Indira Gandhi Memorial Hospital (IGMH), as the lab technician reported the blood as negative despite the machine showing otherwise.

“My resignation isn’t going to solve this. I could resign if that is the case. My resignation is not going to solve it. That’s why I am saying, what is the solution? The solution is all of us cooperating and working together to improve the system,” she said.

Shakeela added that she had been receiving text messages calling for her resignation.

Asked by opposition Maldivian Democratic Party (MDP) MP Ahmed Hamza if she accepted “full responsibility without any excuses” for the incident, Shakeela replied that she accepts responsibility for “providing benefits” to whomever it was owed.

The ministry would attempt to explain to the public that the incident occurred due to “human error,” she stressed, adding that she did not think members of the public would stop visiting the government-run tertiary hospital.

As the donor was found by the patient, Shakeela stressed that the blood sample did not come from the hospital’s blood bank. The donor was not previously registered as an AIDs patient.

The government was ready to take whatever measures were necessary to restore public confidence, she added.

The minister also denied that there was a cover-up, or that the revelation to the media was prompted by leaked information.

Shakeela urged MPs to consider the mishap as “a one-off” incident caused by a mistake.

“Don’t think that this will keep happening to us all the time. We are taking steps for example to try and go to a fully automated system, to improve it and reduce human mistakes,” she said.

ISO standards

Upon learning of the incident on February 19, Shakeela said she informed the World Health Organisation (WHO), seeking advice and assistance following an emergency meeting with high-level officials at the Health Ministry.

The Health Ministry acted in line with international best practices, she said, and immediately launched independent inquiries.

The incident was revealed to the media shortly after receiving a draft report from an independent committee, she added, noting that further investigations were taking place to identify shortcomings at the hospital.

The machines at IGMH were state of the art whilst the standard operating procedures (SOPs) and protocols were at international standards, she noted.

Health Ministry Director General Dr Sheeza Ali meanwhile revealed that the laboratory was presently not “ISO certified”.

“But we are starting work during this year towards ISO certification. It is likely that we might not reach the latest [standards] as we might not be able to fulfil all the requirements,” she said.

Budget constraints

While the Health Ministry had asked for a “realistic budget” of MVR4 billion, Permanent Secretary Geela Ali said the budget approved by parliament had only MVR2.5 billion earmarked for the health sector.

Of the MVR2.5 billion annual budget, Geela noted that MVR1.8 billion was allocated for the National Social Protection Agency (NSPA).

Shakeela meanwhile told MPs that the health sector was in disarray, with crumbling infrastructure and facilities due to insufficient funds allocated in the state budget for many years.

“If we look at machinery, a screw comes loose from the machine and it falls on the head of the patient who is taken into the operating theatre,” she said.

Moreover, attracting qualified foreign doctors was “very difficult” as the salary of doctors in the Maldives has not kept pace with pay rises for doctors in the South Asian region, she explained.

Due to the budget constraints, Shakeela said the ministry was seeking foreign assistance, and that machinery and equipment were “on the way”.

In response to complaints regarding the budget, MDP MPs on the committee pointed out that health policy was formulated by the government while the state budget was proposed by the Finance Ministry, reviewed by a budget committee controlled by the ruling coalition, and approved by the government majority in parliament.

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Parliament’s newly appointed security officers commence duties

Despite 25 independent security officers having commenced work in the Majlis, the Maldives National Defence Force (MNDF) is still continuing to provide security services to the Majlis, parliament has said.

The decision to appoint a Serjeant at Arms to the People’s Majlis was made shortly after an MP was forcefully removed from the premises last October on the orders of the Supreme Court.

Majlis Speaker Abdulla Shahid said at the the time that the MNDF – which has traditionally overseen security at the Majlis – had ignored his orders on the day of the incident.

Parliament’s Consul General Ahmed Mohamed has declined to comment on the respective mandates of the private and MNDF security officers, according to local media.

The Defence Ministry has criticised the establishment of an independent security unit, claiming that the MNDF is required by the constitution to provide such services.

The 25 officers were selected from among 267 applicants. The parliament announced that inclusive of allowances, each officer would be earning a monthly salary of MVR 14,350.

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Marijuana plant found in Noonu Maafaru

A marijuana plant was discovered in Noonu Maafaru yesterday from a fenced-in area designated for developing a regional airport.

A team from the Manadhoo police station went to Maafaru upon receiving information of the plant on Saturday morning.

The investigating team said that the plant was five-feet tall. The case is under investigation by the Manadhoo police station.

Earlier this month, a marijuana plant was found in the artificial beach area of the capital Male’.

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Government seeking 11 employees for vice president’s residence

A job announcement has been published in the government gazette seeking 11 employees for the vice president’s residence.

The 11 employees sought for Hilaaleege – which are considered political rather than civil service posts – include two assistant chefs, three waiters, three maids, and three receptionists.

The assistant chefs will receive a monthly income of more than MVR8,000 whilst the waiters and maids will receive over MVR7,000.

Immediately after being sworn in on November 17, President Yameen announced that he and his vice president – Dr Mohamed Jameel Ahmed –  would be fulfilling his campaign promise of only taking half of the MVR100,000 (US$6500) salary afforded to the head of state.

“The reason behind this is that Dr Jameel and I both live a simple life. No matter what has been said about us we are not wealthy. We want to be an example to others and lead by example,” Yameen said.

President Yameen also opted not to move into the president’s official residence of Muleeage, opting instead to remain in his personal residence.

The number of political appointees under the current administration has not been made public.

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