Month: July 2014

HPA warns of viral fever and common cold epidemic

The Health Protection Agency (HPA) has warned of a viral fever and common cold epidemic in the Maldives.

According to the agency, approximately 1600 cases of viral fever 2000 cases of common cold and diarrhea are being reported every week.

A health alert issued on Thursday also expressed concern over rising dengue fever cases. Approximately 20 cases of dengue fever are being reported every week in the past two weeks.

“There have been 20 cases of dengue fever, reported on average, every week in the past two weeks. This agency also notes the common cold cases being reported at the moment are stronger than usual.”

Noting that viral fever and common cold are highly contagious, the agency has called on individuals with symptoms such as fever, cough or cold to avoid public places.

The HPA has also instructed those infected to cover their mouths and noses when coughing and to increase fluid intake.

Increase in dengue is linked to increased mosquito breeding with the southwest monsoon in full swing, the agency said and has urged the public to eradicate mosquito breeding grounds and take steps such as applying mosquito repellant to decrease the risk of infection.

HPA also called on the public to pay attention to cleanliness, such as washing hands before preparing food and refrigerating food, to decrease risk of infection.

Likes(0)Dislikes(0)

Man sentenced to seven years and six months for stealing laptop

The Criminal Court has sentenced Hussein Abdul Hakeem of Lhaviyani atoll Hinnavaru Island to seven years and six months for stealing a laptop.

This is the seventh count of theft against Hakeem. The Penal Code adds a year for every count of theft.

Hakeem was sentenced for stealing a laptop from a house in Malé in 2012.

In February, Ali Rasheed of Haa Dhaal Hanimadhoo Island was sentenced to four and a half years for stealing three lotion bottles. Rasheed also had been convicted of theft four times previously.

Likes(0)Dislikes(0)

Nine hospitalised in ferry accident in Kumundhoo

Nine people have been hospitalised after a ferry ran onto the reef in Haa Dhaal atoll Kumundhoo Island on Saturday.

According to the Maldives Police Services, the ferry had been traveling from Haa Dhaal atoll Kulhudhuffushi Island and was attempting to enter Kumundhoo’s harbor when it collided with the island’s reef.

Women and children were aboard the ferry and several had to receive medical care for injuries while nine individuals had to be taken to Kulhudhuffushi’s Regional Hospital for treatment.

The Maldives National Defense Forces (MNDF), the police and islanders are now attempting to sink the boat.

Meanwhile, the Meteorology Department has warned of strong winds, rough seas and tidal surges with the southwest monsoon in full swing. The government has urged boats to take extra caution.

Likes(1)Dislikes(0)

Police confiscate 190 bags of goods from local market

The Maldives Police Services have confiscated 190 bags of goods from the local market area in Malé.

According to the police, the goods were being kept for long periods in public spaces and were a nuisance to traffic and pedestrians.

The 190 bags include 70 bags of watermelon.

The police have warned it will continue to confiscate such goods and has urged the public to follow the rules in handling goods.

Likes(0)Dislikes(0)

Turkish national arrested with gun parts

A Turkish national was arrested at the airport last week after parts of a gun were found in his luggage, reports newspaper Haveeru.

According to the local daily, the man was a crew member of a Turkish oil tanker and was among nine crew members attempting to leave via Ibrahim Nasir International Airport (INIA).

While the Criminal Court has since extended the suspect’s remand detention to ten days, the rest of the crew were reportedly allowed to leave.

Following the arrest, the Maldives National Defence Force (MNDF) reportedly searched the oil tanker although the MNDF spokesperson declined to comment on the matter.

Likes(0)Dislikes(0)

Court extends detention of four suspects in 24kg drug smuggling case

The Criminal Court has extended pre-trial detention of four suspects arrested in connection with the smuggling of 24kg of heroin in March to 15 days on Friday (July 4).

According to police, the suspects include three Maldivian men and a Bangladeshi man while the remand detention of a fourth Maldivian was extended to seven days on July 1.

Last week, the Criminal Court denied ordering the deportation of two Pakistanis arrested in connection with the case after police claimed the court had ordered their transfer to the care of the Immigration Department.

Likes(0)Dislikes(0)

Comment: SEZ bill opens doors for economic slavery

The government has said President Abdulla Yameen’s flagship Special Economic Zone (SEZ) legislation would bring an end to the Maldives’ dependence on tourism. The bill aims to create jobs, and stimulate investment in the Maldives’ underdeveloped atolls and bring in long term development.

However, the special incentives and tax breaks to corporations and limited oversight in the bill paint a different picture – SEZs will only institute a system of economic slavery in the Maldives.

The bill proposes handing over control of the Maldives’ atolls to corporations, and suggested lax regulations will allow money laundering, and increase corruption and inequality. It may also become a tool for resort owners to legally evade taxes.

What are SEZs? They are specific geographical areas within a country’s borders with relaxed regulations, financial incentives, and facilities to attract investment and create jobs.

The Maldives has plans to set up nine zones, including free trade zones, offshore finance zones, high-tech zones, and ports. The SEZs are to be administered by a 17-member board consisting largely of government officials.

Incentives for SEZ developers include exemptions from import duty, Business Profit Tax (BPT), Goods and Services Tax (GST), and withholding taxes, and concessions in bringing in expatriate workers. There are no regulations on money remittance, and the bill also provides for land lease periods up to 99 years. Further, any company with a majority of local owners (51 percent) can buy and own land without paying land taxes.

Centralization

Local communities may not receive any benefits from investments in SEZs. According to Article 33, once an area is designated an SEZ, local councils will no longer have authority over the area. All the revenue will bypass local councils and go into the state budget. This may mean the end of decentralization in the Maldives.

It suggests and propels a move towards a centralised autocratic government. Moreover, atolls of the Maldives will be controlled by business tycoons rather than elected representatives.

Corruption

The freedoms in money remittance without government oversight and single window clearance for various government approvals could result in a reduction in finance and trade controls, opening up opportunities for money laundering and financing of terrorism. For the same characteristics that make SEZs attractive to legitimate businesses, also attract abuse by illicit actors.

The SEZ bill allows the SEZ board to override all controls in proposed in the bill. The board can add a number of additional incentives such as extended tax relief, extended land lease periods for foreign companies up to 99 years and increase foreign labor quotas. Such excessive power in the board’s hands will lead to corruption, inequality and may result in the rich controlling SEZs with very little scope for future entrepreneurs.

Tax Evasion

The proclaimed purpose of the SEZ bill is to attract investment in other industries, but the bill, in fact, grants excessive benefits and tax relief to the tourism sector.

Article 74 states up to 40 percent of investment in any special economic zone could be in tourism or tourism related industries. Hoteliers will not have to pay import duty on capital goods, and will be exempted from paying Goods and Services Taxes (GST), Business Profit Taxes (BPT) and withholding taxes for two years. Shareholders will not have pay BPT on their dividends, and companies will be granted concessions in employing expatriate workers.

All of these concessions can be extended further and land taxes can be waived on the recommendation of the SEZ board.

Maldives already attracts multi-million dollar investments and international brands in the tourism sector under existing laws, and the sector already makes vast profits. There are already many top international hotel brands in the Maldives, we do not need SEZs to ensure investor protection or attract investors in the tourism sector. If these businesses had not been sure of their investments, they would not have invested in the Maldives in the first place.

The incentives granted for the tourism sector in the SEZ bill means most of the investments in the SEZs will end up as tourism investments, and will allow resort owners to legally evade taxes.

According to MIRA’s records, the government’s main source of income at present is Tourism Goods and Services Taxes (TGST) and BPT, and the main sources of dollar income are TGST and other tourism sector taxes. The tax reliefs and exemptions will reduce TGST, BPT, and other tourism taxes, which will in turn reduce state income and dollar income.

Ultimately, the reduction in the state’s income means an increase in debt and deficit, whilst reduction in the state’s dollar income would hand over control of the dollar market to tourism tycoons.

As the Maldives currently lacks a set minimum wage, and as developers in the SEZ have the right to bring in any amount of expatriate workers, most of the SEZ jobs will also go to expatriates preventing locals from benefiting at all.

President Yameen has previously pledged to create 94,000 job opportunities. The SEZ bill will create jobs, but only for foreigners?

Wealth concentration

A majority of Maldivians live without clean water, proper sewerage systems or medical and educational facilities. We are a rich country with a small population, but 90 percent of our wealth is concentrated in the hands of a mere 10 percent.

In the context of high inequality, high corruption and incompetent courts, the SEZ bill may very well hand over ownership of this country’s resources to a handful of corporations. Corporations end to be driven by power and financial gain, and in the absence of oversight, will not work for the public good.

History had shown a correlation between huge investments and corruption and civil unrest. These investments ultimately help authoritarian governments to stay in power by buying off their citizens. Investors will fund the governments who provided them with profit-making opportunities to buy off their citizens.

Laws that are made in the interest of corporations and business tycoons result in economic slavery. Corporations want profits and the best way for them to get the profits is to use political party campaign financing system i.e. a system of legalized bribery. This way they can control government officials, politicians, and the public.

They use those government officials and politicians to dismantle the marketplace, to obtain monopoly control, and ultimately privatise the commons. The SEZ bill allows corporations to turn our wealth, our air, our water, our public lands, our wildlife, and our fisheries into profit.

The Maldivian Economist is a Facebook Group which aims to create a platform for debate on the Maldivian economy, finance and policies.

Photo courtesy of Rajjetherey Meehunge Party.

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]

Likes(0)Dislikes(0)

EC reinstates dissolved political parties as per SC order

The Elections Commission (EC) has reinstated eight small political parties on the Supreme Court’s advice.

The commission had dissolved the eight parties in February as they did not have a membership of 3,000 as required by a Supreme Court modification of the Political Party Act.

However, the Supreme Court subsequently sacked Elections Commission President Fuwad Thowfeek and Vice President Ahmed Fayaz for disobedience to order and contempt of court.

The EC sought the apex court’s advice and following a letter on June 12, the EC has now decided to reinstate the Islamic Democratic Party, Maldivian Social Democratic Party, Social Liberal Party, People’s Party, Maldivian National Congress, People’s Alliance, Maldivian Labor Party and Dhivehi Qaumee Party.

The number of registered political parties in Maldives now stands at fourteen.

Political Parties Act

The People’s Majlis passed the Political Parties Act in December 2012. Article 11 of the act required a minimum of 10,000 members requests for party registration, while Article 8 (b) gave parties with less than 10,000 members a three month period to increase membership or face dissolution.

President Dr Mohamed Waheed Hassan – whose own Gaumee Iththihaadh Party (GIP) was facing dissolution – refused to ratify the bill. But on March 5 2013, with unanimous support from both parliament’s minority leader and majority leader, the Majlis overruled the presidential veto and forced the the bill  into law.

In the same month the Elections commission dissolved eleven registered political parties under the Act.

Within days Attorney General Azima Shakoor asked the Supreme Court to declare existing smaller political parties could not be dissolved. The Maldives Development Alliance (MDA) also intervened in the case.

In September 2013, the SC voided articles 11 and 8 (b) of the Political Parties Act, declaring them to be in violation of Article 16 of the constitution which states that the People’s Majlis can only limit constitutional rights through legislation to an extent “demonstrably justified in a free and democratic society”.

The SC claimed the Political Party Act narrowed the constitutional right to establish political parties and participate in political party activity.

The verdict, supported by the entire Supreme Court bench, also declared 3,000 members to be the minimum requirement for political party registration as per the political party regulation of 2005, until the parliament amended the Political Party Act in accordance with guidelines provided in the ruling.

In December 2013 Gaumee Ithihadh Party of former president Dr. Mohame Waheed and Maldives Reform Movement founded by former Attorney General and President of MDP Dr Mohamed Munavvar was voluntarily dissolved, leaving the number of parties in transition at nine.

February dissolution

On February 6, the Elections Commission dissolved eight political parties for not having a minimum of 3000 registered members and gave them a three month period to increase membership. The MDA with approximately eight thousand members survived the dissolution.

In the same month, the SC initiated a contempt of court charge against the EC under new suo moto regulations which allow the Supreme Court to initiate proceedings, prosecute and pass judgement. The five member bench accused the EC of disobeying orders in dissolving the eight parties.

SC reached a verdict in March 2014, stripping Elections Commission (EC) President Fuwad Thowfeek and Vice President Ahmed Fayaz Hassan of their membership in the commission and sentencing the former to a suspended prison term of six months.

In the controversial verdict, SC stated dissolving parties on the basis that a political party’s registry should include 3,000 members is be a violation of the constitution and the court’s previous verdict.

Likes(0)Dislikes(0)