Month: April 2014

Former President Nasheed asks High Court to expedite case concerning Hulhumale’ magistrate court bench

Former President Mohamed Nasheed has asked the High Court to expedite the case filed by his legal team challenging the legitimacy of Hulhumale’ magistrate court’s bench.

Speaking to Minivan News today, former Human Resource Minister Hassan Latheef – a member of Nasheed’s legal team – said that the case has remained stalled at the High Court for over a year now.

“We filed the case at the High Court after we noticed that there were many issues regarding how the Judicial Service Commission (JSC) has composed the bench,” Latheef explained.

“For one thing, the JSC does not have to bring selected judges from throughout the country and compose a bench to conduct the trial of a specific individual, that is not the normal procedure.”

The original case filed at the Hulhumale’ court – concerning the military’s controversial detention of Criminal Chief Judge Abdulla Mohamed in January 2012 – needed to be concluded soon because former President Nasheed did not wish to have pending criminal charges, Latheef said.

“But the case at the Hulhumale’ Court can only be continued when the High Court concludes this case we have filed at the High Court,” he noted.

“’When we filed the case at the High Court, on April 1, 2013 the court issued an injunction ordering Hulhumale’ court to halt the trial against Nasheed until the court concluded the case we have filed.”

The case filed by Nasheed’s legal team challenging the legality of the magistrate court bench was stalled after the JSC suspended the former High Court Chief Judge – who was presiding over the case – pending an investigation over a disciplinary matter.

During the hearings held at the High Court, the JSC contended that the High Court did not have jurisdiction to rule on the case as the panel of judges presiding over Nasheed’s trial was appointed based on counsel from the Supreme Court

Nasheed said at the time that he was  “prepared” to justify the reasons for the arrest of Judge Abdulla, and said he was ready to appear in court to defend the decision.

Nasheed also dismissed accusations of the High Court, the Supreme Court and the prosecutor general that he had ordered the military to arrest Judge Abdulla unlawfully.

“I did nothing unlawful during my tenure,” he insisted.

Nasheed also urged the public to attend the trial and witness proceedings, alleging that the case was politically motivated.

Judge Abdulla’s arrest sparked three weeks of anti-government protests in January, leading the Nasheed administration to appeal for international assistance from the Commonwealth and UN to reform the judiciary.

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President predicts US$300 million compensation for GMR

The Maldivian government believes GMR is owed US$300 million in compensation for the premature termination of the contract to develop the Ibrahim Nasir International Airport (INIA) instead of the US$1.4 billion the company is seeking, President Abdulla Yameen Abdul Gayoom told reporters upon his return to Malé last night.

Speaking to press after returning from Singapore to attend the Maldives Investment Forum, President Yameen insisted that the arbitration proceedings over GMR’s compensation claim has not deterred investors.

The INIA development project was the most popular among attendees at the forum, he said.

“The biggest interest was for the airport,” Yameen said.

The event – which took place on April 25 – was attended by over over 160 companies and nearly 200 representatives from 16 countries, and was the first overseas investor forum organised by the Maldives.

GMR compensation claim

Speaking to the press at the airport, Yameen argued that the previous government was within its rights to terminate the contract as it “damaged state and national interests”.

But since GMR had carried out some of the development works at the airport, the government has to pay compensation, he conceded.

President Yameen said that the compensation payment would affect the state budget, but added that $300 million is a “manageable” sum.

The state-owned Maldives Airports Company Limited (MACL), which now manages the airport, is “saving up” that sum, he said.

This statement comes after GMR is reportedly sticking to the US$1.4 billion compensation claim for the abrupt termination by the Maldivian government in December 2012.

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid. Thus, GMR’s claim is $1.4 billion,” Indian media reported the Bangalore-based infrastructure giant as saying in a statement on Friday (April 25).

Investment forum

On the investor forum, President Yameen said companies were also interested in developing a trans-shipment port in the north of the country, along with economic stimulation investments in Hulhumale’.

The island is a reclamation project to the north of Male’ to cater for the housing, industrial and developmental demands of the capital.

“Alongside (interests for the airport), there was (interest) for the economic development of Hulhumale’,” President Yameen said.

“Some large Chinese companies brought us (proposals) to develop a township in Hulhumale’, in addition to different (development) components for the airport. God willing, if we can put the effort, there is a lot to be gained here,” he added.

Moreover, the Ministry of Transport is seeking investors for building four new domestic airports. They are to be established on Haa Alif Huvanadhoo, Alif Alif Mathiveri, Faafu Magoodhoo and Meemu Muli.

The government is proposing leasing one or two islands for 25 years for resort development to the investors under a public-private partnership (PPP) programme in addition to a customs duty exemption for all equipment and material imported for the airport projects.

Moreover, the government has also made an announcement seeking a developer to expand Hanimaadhoo International Airport in the north of the country.

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Parliament approves hiking airport service charge to US$25

Parliament today approved legislation to raise the airport service charge from departing foreign passengers to US$25 from July onward as part of the current administration’s revenue raising measures.

The amendment bill submitted on behalf of the government by Progressive Party of Maldives MP Abdul Azeez Jamal Abubakur was passed with 32 votes in favour.

The government anticipates over MVR100 million (US$6.4 million) in additional revenue from the increased departure tax.

Parliament has also approved other revenue raising measures proposed by the government, including hiking import duties, reintroducing the bed tax until the end of November, raising the Tourism Goods and Services Tax (T-GST), and introducing GST for telecommunications services from May 1.

A proposal by the administration of former President Mohamed Waheed to raise the service charge to US$30 was narrowly defeated in April 2013.

The 1978 law imposing the airport service charge on departing passengers was first amended under the Maldivian Democratic Party government and raised to US$18.5 for foreigners.

The imposition of a similar Airport Development Charge (ADC) of US$25 by Indian infrastructure group GMR was previously a major point of contention for the Waheed administration, which terminated the concession agreement with the GMR-led consortium to modernise the airport in December 2012.

Other bills

A raft of other bills were also passed at today’s sitting of the People’s Majlis, including a bill on the state wage policy that was vetoed by former President Waheed in December 2012.

The legislation proposes the creation of a five-member National Pay Commission chaired by the finance minister with part-time members to determine salaries and allowances for the public sector and authorise pay rises.

The bill stipulates that the commission must consider the cost of living, inflation and the consumer price index in determining wages.

Moreover, salaries should incentivise government employees to work in islands with small populations.

The commission would also formulate standards and rules for determining the state’s pay scale or appropriate salaries based on qualifications and nature of employment.

Legislation on sole proprietors and business registration submitted by the administration of former President Nasheed in 2011 as part of an economic reform package was also passed today.

According to the draft legislation on business registration, the bill seeks to ensure that businesses, partnerships and cooperative societies operating in the Maldives are properly registered; specify what kind of businesses must be registered along with procedures for registration; and oblige businesses to submit information to the Registrar of Businesses.

The bill was also vetoed by President Waheed in April 2012 citing “socio-economic” concerns.

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Home Minister Umar Naseer pleads not guilty to charges at Criminal Court

Home Minister Umar Naseer denied charges of ‘disobedience to an order’ at the first hearing of his trial at the Criminal Court today.

Judge Abdulla Didi told Naseer’s lawyer to respond to the charges at the next trial date, according to local media.

Naseer is accused of calling for 2,000 volunteers on January 23, 2012 to storm the Maldives National Defence Force (MNDF) headquarters with 50 ladders during the two weeks of protests sparked by the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed.

On the night in question, Umar told anti-government demonstrators in front of the Maldives Monetary Authority building that they should use tactics to tire out the soldiers on duty before climbing into the military barracks, at which point “the people inside will be with us.”

“From today onward, we will turn this protest into one that achieves results,” Naseer had said.

“We know how people overthrow governments. Everything needed to topple the government of this country is now complete.”

After he was questioned by the police in September 2012, Naseer told the press that “there will be no evidence” to prove he committed a criminal offence.

“In my statement I did not mention where to place the ladders or where to climb in using the ladders.” Naseer had said.

If convicted, Naseer faces banishment, imprisonment or house arrest not exceeding six months or a fine not exceeding MVR150 (US$ 10) under article 88(a) of the penal code.

The case against Naseer was submitted to the Criminal Court by the Prosecutor General’s office in December 2012 after police concluded their investigation.

The 22 consecutive nights of protests by the then-opposition in January 2012 culminated in the resignation of President Mohamed Nasheed on February 7 in the wake of a violent mutiny by riot police officers.

Speaking at a Progressive Party of Maldives rally days after the controversial transfer of presidential power, Naseer claimed he had warned the president’s closest aides that Nasheed could “lose his life” if he did not comply with the ultimatum to resign.

Naseer said he told the president that he could “either surrender with bloodshed or surrender peacefully”.

Naseer also told Australia’s SBS Dateline programme that he was organising the protests from a “command centre” and that he feared for Nasheed’s life.

In January 2013, Naseer said the ousting of the Maldivian Democratic Party government was the result of “planning, propaganda and a lot of work.”

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Home Minister to stand trial for disobedience to order

Minister of Home Affairs Umar Naseer will stand trial for disobedience to order at the Criminal Court at 10:00 am tomorrow.

Naseer is being tried for encouraging protesters to break into the military head quarters during the violent ‘twenty two days protests’ against President Mohamed Nasheed’s government in the run up to Nasheed’s ouster on 7 February 2012.

Local media and a report by Nasheed’s Environment Minister Mohamed Aslam and National Security Advisor Ameen Faisal noted remarks by Naseer is which he asked  2,000 volunteers to storm army barracks with 50 ladders, at which point “the people inside will be with us.”

“From today onward, we will turn this protest into one that achieves results,” Umar had said, in the speech which was also aired live on television. “We know how people overthrow governments. Everything needed to topple the government of this country is now complete.” he said.

After he was summoned by the police investigation into his remarks in September 2012, Naseer said that “there will be no evidence” to prove him guilty of a criminal offence.

‘’In my statement I did not mention where to place the ladders or where to climb in using the ladders.’’ Naseer said.

If convicted, Naseer faces banishment, imprisonment or house arrest not exceeding six months or a fine not exceeding MVR 150 (US$ 10).

Naseer refused to comment on the case. The case was submitted to the Criminal Court on 12 December 2013.

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Fiyori council passes resolution to protect mangrove

Gaaf Dhaal Atoll Fiyori Island Council has passed a resolution declaring the Island’s mangrove area as protected, local media ‘Sun‘ has reported.

The resolution passed at an open public meeting on Thursday said the mangrove area at the south end of t he island is being declared protected for its unique natural features. The council noted that it is a natural breeding ground for freshwater ‘Beyngu’ (Milkfish) and shrimp, in addition to being  suitable for culturing sea cucumber.

According to the council resolution, the mangrove has sustained serious damaged following a tidal wave which hit the seaward side of the island in 2012. A large area on the beach front at the edge of the mangrove cracked open, felling trees on the beach inside the mangrove.

If the island fails to seal the area, it may cause further damage, the council noted.

The Fiyori mangrove is included in the Environment Protection Agency (EPA) list of ‘environmentally sensitive areas’ – which are not yet officially protected.

Mangroves and wetlands around the country are also being damaged due to development projects. Mangroves areas on two islands, Kulhudhufushi and Farukolhu are to be reclaimed for airport development, despite criticism from environmental organizations.

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Oil exploration attracts investors at Singapore investment forum

The Maldives has garnered interest in oil exploration during an investment forum in Singapore.

Minister of Fisheries and Agriculture, Dr. Mohamed Shainee, told Minivan News at least one investor will be visiting the Maldives in the coming weeks to present their company profile and discuss the project further.

Over 160 companies and nearly 200 representatives from 16 countries were present at the first overseas investor forum organised by the Maldives.

Speaking at the event on Friday, Shainee assured potential investors that there was no room to refute the presence of oil in the Maldives based on seismic testing by Royal Dutch Shell.

“Those studies were carried out 25 to 27 years ago, with limited technology capable of investigating under sea. However, now we have better technology that is more capable of more exploration,” he said.

Oil has been found in both Sri Lanka and India and therefore there is a high possibility that it will be found in Maldives too, he added.

Lying just a meter above sea level, the Maldives is among the world’s most vulnerable countries to climate change impacts such as sea level rise, ocean acidification and extreme weather events.

Crude oil will diversify and stabilise the economy, President Abdulla Yameen Abdul Gayoom has said. At present, the Maldives heavily relies on tourism, which supports an estimated 70 – 80 percent of its GDP.

However, some have argued that economic benefits will not outweigh the possible environmental repercussions.

“When you take up the issues of drilling, we are concerned about the oil container tanks with unrefined fuel passing through,” concluded Executive Director of local NGO Bluepeace Ali Rilwan. “We can’t afford to go into that dirty energy.”

With this in mind, Rilwan asked, “can we avoid a disaster in the Maldives? The Maldives is a tiny island and this can have a very negative impact, the tanks are a worrying thing.”

In addition to oil exploration, the government is seeking investment in establishing a port in northern Ihavandhippolhu Atoll, land reclamation and maritime seaport in Hulhumalé, expansion of the Ibrahim Nasir International Airport (INIA) and the relocation and expansion of the central port to Thilafushi Island.

The projects for which the government was seeking investors were “designed to position Maldives to take advantage of its strategic location as a hub and gateway for commerce, innovation and creativity, linking rest of the globe with South Asia,” President Yameen said in his keynote address.

“To address investment climate and to facilitate mega investments with attractive incentive packages, a Special Economic Zone Bill will be tabled in the parliament soon. Additionally, the Foreign Investment Act and Companies Act are being revised to cater the ever increasing needs of the modern foreign investors,” he added.

Meanwhile, a Singaporean court is currently overseeing the arbitration process between the Maldives government and Indian infrastructure giant GMR in which the company has claimed US$ 1.4 billion for the abrupt termination of a concession agreement to develop the Ibrahim Nasir International Airport (INIA).

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GMR holds to US$1.4 billion compensation figure

GMR is sticking to the US$1.4 billion compensation claim for the abrupt termination by the Maldivian government in December 2012 of a concession agreement to develop the Ibrahim Nasir International Airport (INIA).

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid. Thus, GMR’s claim is $1.4 billion,” Indian media reported the Bangalore-based infrastructure giant as saying in a statement on Friday (April 25).

GMR noted that the Maldivian government had acknowledged for the first time that the company was owed compensation.

Prior to departing for Singapore on Thursday, President Abdulla Yameen told the press that the government would have to pay compensation to GMR upon conclusion of the arbitration process currently underway.

Asked if he was confident the outcome of the arbitration would be favourable for the Maldives, Yameen said: “The reality we have to accept is that a government with full sovereign powers made an agreement with a foreign party and leased [the airport]. This is a government, and what preceded this was a government as well. So believe we have to pay them some kind of financial compensation. “

He added that the government’s objective in the arbitration hearings was to lower the compensation amount.

If the judges on the arbitration panel accept the government’s arguments for nationalisation or expropriation, Yameen said the compensation owed to GMR could be smaller.

“We’re going to have to provide compensation in any case,” he conceded.

The US$1.4 billion sought by GMR for “wrongful termination” exceeds the annual state budget whilst the national debt is expected to rise to MVR31 billion (US$2 billion) this year.

Earlier this month, Yameen had said that the out-of-court settlement sought by GMR was too high, and that he would now await the outcome of the arbitration proceedings, which could take up to another two months.

Despite the pending arbitration decision, expansion and development of INIA was among the five mega-projects for which the government was seeking investors at the Maldives Investment Forum held in Singapore’s Marina Bay Sands yesterday.

President Yameen also met officials of the Beijing Urban Construction Group yesterday, who “expressed their interest in engaging in the infrastructure development of the [INIA],” according to the President’s Office.

Void ab initio

In December 2012, the administration of former President Dr Mohamed Waheed voided the 25-year concession agreement with the GMR-led consortium.

The US$511 million contract awarded by his predecessor former President Mohamed Nasheed – following a bidding process overseen by the World Bank’s International Finance Corporation (IFC) – was the largest foreign direct investment in the country’s history.

Waheed’s government – of which President Yameen’s Progressive Party of Maldives was a coalition partner – declared the contract ‘void ab initio’ – invalid from the outset – and gave the company seven days to leave the country.

After GMR received a stay order for the eviction from the Singapore High Court, the government successfully appealed the injunction at the Singapore Supreme Court.

Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

At a press conference in the wake of the airport takeover, Finance Minister Abdulla Jihad – who retained his post under the new administration – said that the Maldives would pay whatever compensation was required “however difficult” while Attorney General Azima Shukoor expressed hope that the compensation would be lower than anticipated.

A special audit conducted by the Auditor General’s Office in early 2013 found that as of October 31, 2012, GMR Male’ International Airport (GMIAL) had completed 25 percent of the refurbishments and upgrades to INIA planned for the end of 2014, and had been invoiced by its contractor for US$69 million.

“Significant progress had been made in some areas – for example, 87 percent of the material for land reclamation had been dredged,” the report (English) stated.

“In the meantime, all work on the ground on the improvement to the airport has ceased. Sensitive elements of the new structures that had been planned by [GMR] are incomplete and exposed to the weather and at risk of damage – possibly closing off the option of re-using these elements to reduce the cost of any future development of the airport,” the report concluded.

After examining the bidding process, the audit report stated that evidence to back allegations of “improper interference” during technical bidding process “is not conclusive on this point”, and deferred the matter to the Anti-Corruption Commission (ACC), which ruled out corruption in June 2013.

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Home Minister Umar Naseer to run for presidency in 2023

Minister of Home Affairs Umar Naseer has announced he will run for the presidency in 2023 and has pledged to back President Abdulla Yameen Abdul Gayoom for re-election in 2018.

“I am not a political threat to President Yameen. I am ready to work to help President Yameen get re-elected to presidency in 2018. What I may have said before, and the competition that existed between us before is a completely different matter. That has come to an end,” he said in an interview on state broadcaster Television Maldives’ Friday variety show ‘Heyyambo.’

Naseer lost to Yameen in the Progressive Party of the Maldives (PPM) presidential primaries in 2013 and alleged the primaries were rigged. He accused Yameen of illicit connections with gangs and the illegal drug trade and vowed to bring a “white revolution” within the party.

The PPM expelled Naseer from the party and he backed Jumhooree Party (JP) Leader Gasim Ibrahim in the 2013 presidential elections. Naseer was appointed to the cabinet when Gasim’s backing proved crucial in PPM’s second round win.

Speaking on Heyyambo, Naseer said Yameen will “have no reason to contest again” by 2023 and said he himself will run for the presidency then. The Maldives constitution limits presidential terms to two five year terms.

Naseer ran for the presidency in 2008 and won 2,472 votes.

Coalition friction

Naseer expressed confidence that he will be able to sort out any differences within the government coalition, pointing to his prior experience working with Yameen and Gasim.

Friction within the coalition became apparent with Gasim warning the PPM against betrayal in a rally on April 13.

But Naseer asserted that Yameen and Gasim are working together in the national interest.

He also dismissed competitive words exchanged between the two coalition partners in the lead up to the 2013 presidential elections as “an attempt to choose the best leader from among those sharing the same ideology”, and said personal ambition has now “taken a backseat and national interest is what drives [us] today”.

“Although we walked over each other in the race to select a leader amongst those of us who holds the same ideology, once we have come out to the actual national race we have removed our personal jerseys and donned the national jersey. Today we are playing in the national uniform,” he said.

Extradite offenders

Naseer said he will amend laws which require police to present detainees to the Criminal Court with 24 hours of arrest and spoke of plans to extradite Maldivian offenders.

Maldivian offenders will not be able “to hide in any corner of the world,” Naseer said.

“No offender should delude themselves into thinking that they can flee from the Maldives and peacefully live elsewhere. That cannot be done. The first topic of discussion that I take up with leaders, Home Ministers and police leaders of every country I travel to is that in the instance there is a runaway Maldivian offender in the country, they should arrest them immediately and turn them over to the Maldivian authorities.”

He also spoke about a recent police raid where 79 youth were arrested from the island of Anbaraa during a musical festival, where all detained were reported to have tested positive for illicit drugs.

It is permissible for Maldivians to go on picnics, play loud music and have fun, Naseer said.

“But, there cannot be the abuse of drugs or consumption of alcohol. There cannot be DJs. If these kinds of things are being done, the police will go in and stop the activities. What I am saying is, you can party, but you cannot ‘Ambaraa'”.

Referring to the controversial order he had made unto the Maldives Correctional Services to implement death penalty, Naseer asserted that he had done so only on prior discussions with the President.

The Attorney General is currently drafting regulations for implementation of the death penalty on the cabinet’s request, he said. The government would only implement the death penalty if the Supreme Court upholds the sentence, he reiterated.

Speaking on the illegal drug trade, Naseer alleged that “powerful gangs from neighbouring countries” are involved in smuggling drugs into the Maldives.

Naseer identified population dispersion as the biggest obstacle for development and called for population consolidation.

“If the desired development is to be brought about, the approximately 400,000 inhabitants of this country will have to start living on three or five islands. We cannot bring the development otherwise,” he said.

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