Day: June 15, 2014

Former Progressive Coalition partners dispute validity of agreement

The ruling Progressive Party of Maldives (PPM) has said its former coalition partner Jumhooree Party (JP) must initiate a new coalition, while the JP maintains the initial agreement is still valid.

Speaking to ‘Haveeru‘ Ahmed Adeeb – minister of tourism, co-chair of the cabinet’s Economic Council and PPM deputy leader has said the JP would have to express interest in forging another coalition with his party.

Blaming JP leader Gasim Ibrahim for ending the coalition, Adheeb said President Abdulla Yameen does not want to persecute political opponents or make statements about such issues.

Noting his respect for Gasim as a “generous” and “politically experienced” individual, Adeeb acknowledged the JP leader’s contribution helping the government to power, but stated that PPM would not allow anyone to pressure the government.

“We should be faithful to the votes people has given us. We should respect the opportunity to improve the economy given to PPM by the people. I am sure Gasim would also acknowledge [this]. And Gasim will also acknowledge that President Yameen will do no harm to him,” Adheeb was quoted as saying.

He told Haveeru that the opposition MDP had manipulated Gasim into believing that he could become the speaker of the parliament – the cause of the Progressive Coalition’s breakup last month.

Responding to Adeeb’s comments JP Secretary General Ahmed Sameer said the party still believes the initial coalition agreement is valid and will continue to respect the terms of that agreement.

“The coalition agreement was never abrogated, so there is no reason to form another coalition. I think what they [PPM] are saying is just a media stunt, there is no truth in it. It is sad that they have acted against the agreement [in purging political appointees in JP slots], but JP will continue to abide by it,” said Sameer.

He noted that the JP have not been informed about the abrogation of the initial coalition agreement.

“There have been no discussion with us about this and no formal communication of any sort,” Sameer said.

The fall out between the two parties became visible after the 18th People’s Majlis was elected and when both parties expressed interest in nominating candidates for the position of Majlis Speaker.

Despite the PPM’s warnings that the coalition agreement would be cancelled if JP proposed a candidate, party leader Gasim decided to stand for the position – eventually losing the ballot to the PPM candidate MP Abdulla Maseeh.

Soon after Gasim announced his candidacy PPM council unanimously passed a resolution announcing the coalition agreement had been “brought to an end by the Jumhooree Party”.

Within the week the government moved against political appointees belonging to JP removing and taking administrative action against them. One of the Cabinet ministers on a JP slot later signed for PPM.

JP has since accused PPM of not honoring the coalition agreement form the early days of coming to power, noting that the promised 35 percent stake in political appointees was not delivered.

The party claimed that only 29 slots were offered to them among as many as 300 positions. PPM has said that many of JP nominees had been unqualified.

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Government temporarily extends cafe hours for World Cup

The Ministry of Economic Development has decided to temporarily extend the closing time for food outlets during the World Cup.

An announcement from the ministry issued yesterday stated that food outlets will be allowed to operate until 3am from June 14 until July 14.

The ministry requested service providers and customers to observe socially acceptable behavior during these hours.

Interested businesses are to obtain a special temporary permit from the ministry.

Malé City Council has told Minivan News that, following this decision, the council will once again renew its efforts to bring back 24 hours opening times for shops and cafe’s.

While the World Cup matches run into to the early hours in Maldives, many people stay up to watching the games – some at public screens and in cafes.

Football is the most popular sport in country, with President Abdulla Yameen recently describing it as the “king or queen of sports” in the Maldives.

Many international football tournaments, particularly the World Cup, generate huge enthusiasm across the country with media and businesses such as electronic equipment dealers making special offers and promotions for the season.

Currently, all food outlets in the Maldives are required to be closed after 1am hours, and shops by 11pm.

24 hour permit were issued to one Malé eatery in 2003, and since then a few more businesses have been allowed to operate around the clock.

In December 2010, however,  the government decided to give permission to all cafe’s who made such a request, allowing 24 hour shops for the first time in 2011.

A senior member of the Economic Ministry at the time said that the government wanted to open more opportunities for businesses and were in the process of reviewing laws and regulations to end restrictions.

In October 2012, however,  Dr Mohamed Waheed’s administration revoked all permits issued for 24 hours businesses “for national security reasons” as a response to increasing criminal activity. The decision was made in the aftermath of the brutal murder of the MP and moderate Islamic Scholar Dr Afrasheem Ali.

A total of 44 businesses were affected by this decision in the capital Malé city alone – leading to public discontentment.

President Abdulla Yameen’s government has continued the reduced opening hours, deciding against bringing back 24 hour businesses.

In March this year, Malé City Council unanimously passed a resolution to work towards bringing back the 24 hour permits through dialogue with the government to “fulfill basic necessities of people”.

“We will do whatever it takes. This is the capital city, and there are 24 hours ferries operating, people coming from other islands, people are working round the clock. There should be some way for them to eat or buy things they need. We are talking about basic necessities of the people,” Councilman Shamau Shareef told Minivan News at the time.

The council today said that this attempt was unsuccessful due to immediate negative comments on the issue from the government, adding that the council was not consulted or informed of the extended World Cup opening times.

Speaking to Minivan News today Deputy Mayor Shifa Mohamed said the council will now renew its efforts.

“We are not talking about allowing all cafe’s and shops to run 24 hours. We asked [the government] to allow a few shops and cafe’s to run like that to fulfill basic necessities of the people,” said Shifa.

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Home Minister appeals arrest warrant

Home Minister Umar Naseer has appealed a Criminal Court arrest warrant at the High Court today.

The arrest warrant issued on Thursday orders the Maldives Police Services to arrest Naseer and present him at the Criminal Court at 11:00am on Tuesday (June 17), a High Court official said.

Naseer – currently in the Netherlands on an official visit – has failed to attend three consecutive hearings at the Criminal Court to answer charges of disobedience to order.

The Home Minister was abroad during all three hearings.

Home Ministry’s Media Coordinator Thazmeel Abdul Samad told Minivan News on Saturday that Naseer is not a fugitive from justice and will attend hearings willingly once he returns from the Netherlands on June 16.

The Maldives Police Services has acted differently in different arrest warrant cases.

The police arrested former President Mohamed Nasheed in 2012, and former MPs Abdulla Jabir and Hamid Abdul Ghafoor on the Criminal Court’s orders in 2013. But when the court ordered MP Ahmed ‘Sun Travel’ Shiyam be arrested in March, the police asked him to present himself at the police headquarters on the day in question and escorted him from the police station to the court.

The police have refused to comment on the arrest warrant.

Naseer was appointed as Home Minister on a cabinet slot allocated for the Jumhooree Party (JP) as part of the now defunct coalition agreement signed with the ruling Progressive Party of the Maldives (PPM).

Two of the four ministers appointed on JP slots have switched to the PPM and its ally Maldivian Development Alliance (MDA) following the dissolution of the coalition.

Naseer joined the JP in 2013 after losing the PPM’s presidential primary to incumbent President Abdulla Yameen.

The PPM expelled Naseer from the party after he alleged the primaries were rigged and accused Yameen of illicit connections with gangs and the illegal drug trade and vowed to bring a “white revolution” within the party.

Speaking to Minivan News in January Naseer said his earlier comments were “political rhetoric.”

In March, Naseer announced he will run for the presidency in 2023 but pledged to back Yameen 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 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.

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World Bank predicts positive outlook for Maldivian economy in 2014

The World Bank predicts a positive outlook for the Maldivian economy in 2014 with a projected GDP growth of 4.5 percent, according to its annual global economic prospects report.

Economic growth would be “driven by strong tourist arrivals, particularly by robust growth in the Chinese tourist segment,” observed the report released last week.

“In the medium term, the economy is projected to grow at a more sustainable pace of about four percent annually, as tourism revenues from Europe pick up.”

The report did warn, however, that an increasingly likely El Niño conditions in the regions represented a medium-term economic risk.

GDP growth in 2015 and 2016 is projected at 4.2 percent and 4.1 percent respectively.

The Maldives Monetary Authority (MMA) had revealed earlier this month that economic activity expanded in the first quarter of 2014 “driven by the strong growth of the tourism sector during the ongoing high season of the industry.”

Total tourism receipts in the first three months of the year increased by 10 percent compared to the first quarter of 2013, reaching US$801.1 million.

The central bank noted that the 10 percent annual increase in arrivals during the first quarter was “entirely driven by the significant increase (24 percent) in arrivals from the Chinese market.”

Chinese tourists accounted for 27 percent of guests during the first quarter of 2014. Europe however retained the largest market share despite the continuing growth of the Chinese market, accounting for of 51.3 percent of all arrivals.

Challenges and risks

In late May, a delegation from the World Bank led by the World Bank Vice President Philippe Le Houérou – in his first visit to the Maldives since assuming the post in July 2013 – met President Abdulla Yameen and agreed to work with the government in developing a national strategy for fostering growth and consolidating public finances.

The discussion focused on “the need to reduce fiscal deficits, create a favourable investment climate for the private sector and delivery of key public services,” according to a press release from the World Bank.

“Maldives has enjoyed economic growth during the last decade and expects to achieve 4.5 percent growth in 2014,” Le Houérou was quoted as saying.

“But it still faces challenges, such as balancing public accounts while delivering public services on some 200 islands across hundreds of kilometres of the Indian Ocean. The issue is how Maldives can make the most of its potential in order to achieve inclusive and sustainable development.”

In May, MMA Governor Dr Azeema Adam called for “bold decisions” to ensure macroeconomic stability by reducing expenditure – “especially the untargeted subsidies” – and increasing revenue.

El Niño

The global economic prospects report meanwhile warned that impending El Niño weather conditions could be “a key medium-term risk” for growth in the South Asia region.

In 1998, catastrophic El Niño bleaching killed 95 percent of the Maldives’ corals – a key attraction for tourists – following three months of unusually high seawater temperatures that year.

The World Bank report noted that as of May “the likelihood of El Niño conditions in 2014-15 was assessed at 60-70 percent.”

“Strong El Niño conditions resulting in deficient rainfalls or drought can have more significant impacts. Although ample grain stocks should mitigate adverse effects on food security, weak agricultural performance could keep food inflation, and in turn, retail inflation, high—perhaps necessitating a tighter monetary policy stance than otherwise, which may have adverse implications for investment and growth,” the report explained.

Among other risks for South Asian economies were “stressed banking sectors” and slow pace of institutional reforms as well as geopolitical and financial risks.

“Given the reliance of the South Asia region on imported crude oil, it remains vulnerable to political developments in Ukraine and Russia that could result in tighter international oil supplies,” the report cautioned.

“An escalation of geopolitical tensions that cause crude oil prices to spike can significantly impact current account sustainability in the region.”

Other external risks include declining capital flows from high income countries – which could have “adverse effects on exchange rates” – and a sharp slowdown in China’s economic growth, which would “represent a risk for the global economy, and in turn, for regional growth prospects.”

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Equatorial Convention Centre’s unpaid bills approach MVR8 million

The unpaid electricity bills for Addu City’s Equatorial Convention Centre (ECC) have reached MVR 7.9 million (US$512,000) local media has reported.

Local director for the state-owned FENAKA utilities company told Sun Online that the constant supply of electricity needed for the three-year-old facility had not been paid since its construction.

Built on reclaimed marsh land for the for the hosting of the 17th SAARC summit in 2011, the ECC has become somewhat of a white elephant, with current responsibility for its upkeep falling to the Housing Ministry.

Addu City Mayor Abdulla Sodig has previously expressed concern that the neglect of the convention centre could cause irreparable damage to the premises.

Earlier this year the Housing Ministry also reclaimed oversight of the country’s other major convention centre, Dharubaaruge in Malé. On this occasion the ministry accused Malé City Council of failing to maintain the facility, to which the council responded that it had not been granted the promised funds.

Both Malé City and Addu City councils are heavily dominated by the opposition Maldivian Democratic Party.

Zuhair told Sun today that requests to secure payment for the ECC’s bills had been unsuccessful.

Previous plans to lease the centre to private companies were shelved after the fall of the MDP government in February 2012, the same month the winning bidder was to take over operations.

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Maldivian reported missing in Malaysia

A 28-year-old Maldivian man has been reported missing in Malaysia.

Hamdhan Mohamed, from Malé City, checked onto a flight on Thursday at the Kuala Lumpur International Airport to return to the Maldives.

However, his luggage was offloaded when he failed to board the flight, local media have reported.

The Maldivian High Commission in Kuala Lumpur and the Malaysian authorities are searching for the man, Haveeru said.

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State presents witnesses in Sun Shiyam’s alcohol possession trial

The Prosecutor General’s Office has presented witnesses in the alcohol possession trial against tourism tycoon and MP for Meedhoo constituency MP Ahmed ‘Sun Travel’ Shiyam.

Two Customs Services officers who checked Shiyam’s bag in March 2012 at Ibrahim Nasir International Airport testified to finding an alcohol bottle in his luggage at the Criminal Court today, local media has reported.

A Maldives Airports Company Ltd (MACL) staff member who handled the luggage said they were not aware an alcohol bottle was in the bag when they took it for screening.  The staff said the bag was unlocked and it was possible for someone to have put the bottle in the bag.

Two police officers who carried out forensic tests on the bottle testified that the substance in the bottle is alcohol.

Shiyam has denied charges, claiming he is being framed.

The penalty for alcohol possession in the penal code is either a fine of between MVR1,000 to MVR3,000, or imprisonment, banishment or house arrest for up to three years.

Under Article 73 of the constitution, an MP convicted of a criminal offence and sentenced to more than one year in prison will lose his or her seat in parliament.

The case has garnered controversy after Criminal Court Judge Abdulla Mohamed took over the case from Judge Ahmed Sameer following a complaint by Shiyam in which he said Judge Aziz’s “hand gestures and facial expressions” indicated a personal grudge against him which could lead to an unfair trial.

The MP for Dhaal Meedhoo is the leader of Maldives Development Alliance – which has 7,537 registered members and five MPs – and is founder of the Sun Travel and Tours company.

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Medianet under investigation on suspicion of rebroadcasting World Cup football matches without rights

The Maldives Broadcasting Commission (MBC) is investigating cable TV provider Medianet on suspicion of rebroadcasting ongoing FIFA World Cup football matches without broadcasting rights.

Speaking to news agency Haveeru, MBC Secretary General Noora Ali said the commission was not aware that a special channel set up by Media Net – called ‘Ice’ – had the proper rights to air World Cup matches.

Only the Maldives Broadcasting Corporation’s TVM and private broadcaster Villa TV (VTV) are licensed to broadcast the matches, she said.

Medianet had charged an extra MVR100 from its customers to gain access to Ice.

According to Haveeru, Medianet has now stopped airing Ice. Instead, it is broadcasting World Cup matches through India’s Sony Six channel. Customers will have to pay an additional fee to view the channel, Haveeru said.

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