Month: July 2014

Agreement signed for Hulhumalé phase two reclamation project

A framework agreement was signed between the Housing Development Corporation (HDC) and Belgian company Dredging International N.V. on Thursday (July 17) for the US$50 million Hulhumalé phase two reclamation and coastal protection project.

Managing Director Suhail Ahmed signed the agreement on behalf of HDC while Amedeo Peyron, resident manager for the Indian subcontinent, signed on behalf of Dredging International N.V.

Speaking at a ceremony held in Nasandhura Palace Hotel, Suhail explained that a US$30 million loan facility from the Bank of Ceylon and US$20 million from the HDC’s reserves would be used to finance the project.

“Bank of Ceylon has given assurances of providing the loan for this project. So we will be able to begin the project in the next month or so,” Suhail said.

While the dredging and reclamation work would be completed by February 2015, Suhail said the coastal protection work would be completed in December 2015.

HDC revealed last month that the project involves reclamation of 240 hectares of land “with a target population of 100,000 people.”

The corporation said in a press release that development plans for the fully reclaimed artificial island includes residential developments, a business district and “commercial spine,” a light industrial park, a yacht marina and cruise terminal, a knowledge and technology park, a heritage island a tourism district.

“Both Hulhumalé Phase I & Phase II developments are planned in line with the government’s overall vision to bring sustainable youth related developments,” the press release stated.

Dredging International also carried dredging and land reclamation in phase one of the Hulhumalé development project.

Reclamation in the second phase will expand the size of the artificial island from 188 hectares at present to 410 hectares.

According to the company’s website, Dredging International NV was established in 1974 and specialises in “the construction and development of harbours, artificial islands, estuarial dams, canals and inland waterways, dyke construction and reinforcement, beach replenishment and coastal protection, supply of dredged aggregates and salvage activities.”

Developing a ‘youth village’ in Hulhumalé with a population of 50,000 was a key campaign pledge of President Abdulla Yameen.

Speaking at a ceremony in Thulusdhoo in May, President Yameen said the government’s objective was to relocate people from small islands in the atolls to Hulhumalé.

Economic opportunities in small islands were limited due to their size and isolation, he added.

The government hoped youth from smaller islands would migrate to Hulhumalé as well as other islands selected for land reclamation, Yameen said.

In April, Yameen said the HDC’s development plans were being revised to achieve the new administration’s goals.

The vision for the youth city includes a “technopolis park” as well as entertainment and sports facilities, he said, in addition to facilities for the tourism and fisheries industries.

Meanwhile, in February, Economic Minister Mohamed Saeed pledged that the Malé–Hulhulé bridge project – which he described as “iconic for the whole region” – would be completed in two years.

Likes(0)Dislikes(0)

President Yameen does not have gang affiliations, Umar tells the Majlis

Home Minister Umar Naseer has retracted a July 2013 statement accusing President Abdulla Yameen of connections with the illegal drug trade and gangs.

The retraction came in response to a question by opposition Maldivian Democratic Party (MDP) MP Fayyaz Ismail in the People’s Majlis on Wednesday.

Naseer had been summoned to the parliament today by MDP MP Rozaina Adam for questions over the Home Ministry’s programs in her constituency Addu Atoll Meedhoo.
After losing to Yameen in the ruling Progressive Party of the Maldives (PPM) primaries in 2013, Naseer at a rally accused Yameen of having illicit connections to gangs, the drug trade and a role in the murder of PPM MP and Islamic scholar Dr Afrasheem Ali. The police said the murder was politically motivated.

Naseer also accused Yameen of vote rigging, claiming he had been backed by members of gangs and drug cartels and that criminals convicted of trafficking and dealing drugs were seen wearing Yameen’s campaign caps during PPM primaries.

“Former President Maumoon Abdul Gayoom’s children were with Yameen, the largest gangsters in the country were with Yameen, all the drug cartels in the country were with Yameen, the most corrupted people were with Yameen, the whole elections committee was with Yameen and a large chunk of PPM’s parliament members gathered around Yameen,” Naseer said.

He also said a suspect arrested and questioned by the police in the murder of Dr Afrasheem Ali was at the PPM office to meet Yameen.

Subsequently Naseer was dismissed from the party and went on to back Jumhooree Party (JP) candidate Gasim Ibrahim. In the second round of polls, the JP endorsed Yameen on the condition of forming a coalition government.

Naseer was appointed as the Home Minister under a cabinet slot allocated for the JP. With the coalition’s break up, Naseer is now the sole minister representing the JP.

In an exclusive interview to Minivan News in January, Naseer described his allegations against Yameen as merely “political rhetoric”.

“That was political rhetoric. We were repeating MDP’s lines. What happens in presidential primaries is that you are competing for the top position of the nation, so you use every tool you have. I am now the Home Minister, but I do not see any indication of [Yameen] being involved in such acts. If at any point I do see such an indication, I will not hesitate to investigate it.” Umar said at the time.

Yameen has also denied the allegations of corruption and afilliation with criminal organizations

A 2012 study of the Maldives’ gang culture revealed that “political and business elites” exploit gangs to carry out a range of illegal activities including the suppression of opponents and carrying out tasks to help maintain popularity or divert media attention from political issues.

Likes(0)Dislikes(0)

PPM considers lawsuit against JP

Deputy leader of the ruling Progressive Party of the Maldives (PPM) Ahmed Adeeb has threatened to sue former coalition partner Jumhooree Party (JP) for intent to sue MPs who switched from the JP to PPM.

Three JP MPs crossed the floor to PPM after a coalition agreement fell apart after JP leader Gasim Ibrahim contested for the speakership of the People’s Majlis against PPM candidate Abdulla Maseeh.

The JP last week said MPs had signed an agreement swearing in the name of Allah to remain faithful to the party and said it will consider a lawsuit for breaching the agreement. The party also said PPM had bribed and coerced MPs into switching parties.

In response, Adeeb told local news agency Haveeru that the PPM will counter any lawsuits, arguing that the agreements are unconstitutional.

“JP cannot make agreements in a manner that deprives members of their constitutional rights. Even our 43 members are not serving under any agreements. So they cannot take an agreement that is against the Constitution to court, they cannot even take away their parliamentary seats,” said Adeeb.

Allegations of bribery are baseless, Adeeb said claiming the JP was attempting to intimidate MPs.

Gasim had sent text messages to the three MPs regarding the funds spent on their campaign in an attempt to intimidate them, he said.

“I advise him to stop threatening members of PPM. Even Ilham [Dhangethi constituency MP Ilham Ahmed] switched to JP after being elected to the post of our party’s deputy leader. We did not run after him. That is because changing political ideologies is a right that members have,” he stated.

Parliamentarians Hassan Mufeed Abdul Gadhir, Mohamed Abdulla and Hassan Areef switched to PPM after being elected as JP members.

Following the changes, JP alleged that the PPM is offering “unattainably high financial and material incentives” to members.

Likes(0)Dislikes(0)

MDP seeks candidate for Velidhoo council by-election

The opposition Maldivian Democratic Party (MDP) has made an announcement inviting interested members to contest in a primary scheduled for July 24 to choose a candidate to contest in a by-election for a vacant island council seat in Noonu Velidhoo.

Potential candidates were asked to submit application forms to the party’s national secretariat before 3pm next Monday (July 21). The  Elections Commission (EC) have not announced a date for the by-election yet.

The party’s candidate for a vacant seat on the Noonu Kendikolhudhoo island council was meanwhile elected by default this week after no other candidates stood for the seat.

The opposition party has a majority on the five-member Velidhoo council while the parliamentary constituency that includes the island is also represented by an MDP MP.

Likes(0)Dislikes(0)

Number of juvenile offenders increase 55 percent

The number of juvenile offenders arrested in the first six months of 2014 increased 55 percent compared to the same period last year, a statistical report made public by the Home Ministry’s Juvenile Justice Unit (JJU) today has revealed.

Some 98 minors were arrested this year while the figure was 54 last year.

The majority of offenders were males between the ages of 16 and 18, the report noted, with only 10 cases involving underaged girls.

The most common offence was possession of drugs, followed by 18 cases of assault, 10 cases of disobedience to order, and 10 cases of theft.

Moreover, 36 percent of the offenders were school children while 56 percent were of indeterminate background.

The JJU suggested that broken families, physical abuse, and poor parenting were some of the causes behind the increase in arrests.

The report also noted flaws in the correctional procedures for juveniles and the lack of a separate system for juvenile offenders as challenges to rehabilitation.

Moreover, there was an absence of avenues for taking action against irresponsible and abusive parents, the report noted.

Likes(0)Dislikes(0)

Man arrested with drugs worth MVR700,000

Police arrested a 23-year-old male suspect yesterday while he was attempting to smuggle MVR700,000 (US$45,396) worth of drugs to Addu City.

According to police media, the individual arrived in Gan airport in the southernmost atoll on Maldivian flight Q2-101 with the illicit narcotics taped around his thighs.

The case is under investigation by the Hithadhoo police station.

Likes(0)Dislikes(0)

World Bank provides US$6.5 million grant for public financial management system

The World Bank has approved a US$6.5 million International Development Association (IDA) grant to support the strengthening of the Public Financial Management (PFM) System of the Maldives, which would help “government institutions to make informed decisions on fiscal adjustments in an efficient manner”.

In a press release on Tuesday (July 15), the World Bank noted that “a high level of fiscal discipline” was needed for translating the current administration’s key policies and objectives into “a medium-term development strategy”.

“A key challenge for the country will be to ensure that the government’s social and economic goals are fully consistent with the urgent need for fiscal consolidation to restore fiscal and debt sustainability,” said Country Director for Sri Lanka and Maldives Francoise Clottes.

“We are happy to assist the government in this endeavour with both financial and technical support.”

According to the World Bank, “the project will help enhance budget credibility, transparency, and financial reporting of central government finances.”

“The entry points for intervention will be the Economic Policy Planning Section, National Budget Formulation and Analysis Section, Debt Management Division, Tender Evaluation Section, Secretariat of the Privatisation and Corporatisation Board, and Treasury and Public Accounts Division; internal audit sections; and line ministries.”

“The project design also includes support to strengthen the institutional framework of key Ministry of Finance and Treasury functions and to enhance knowledge transfer through on-the-job training by technical experts,” said Jiwanka Wickramasinghe, Task Team Leader of the Project.

The press statement noted that the proposed PFM Systems Strengthening Project would contribute to the government’s long-term and “overarching goal by addressing the most urgent PFM weaknesses.”

Macroeconomic challenges

In its annual global economic prospects report released last month, the World Bank had predicted a positive outlook for the Maldivian economy in 2014 with a projected GDP growth of 4.5 percent, “driven by strong tourist arrivals, particularly by robust growth in the Chinese tourist segment.”

The Maldives Monetary Authority (MMA) had also revealed earlier in June 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.”

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.”

Meanwhile, 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.

Le Houérou noted that the challenges faced by the Maldives includes “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.

In a report on macroeconomic developments in 2013, the MMA had warned that shortfalls in revenue or overruns in expenditure in 2014 “will undermine medium-term debt sustainability” and adversely affect the exchange rate and prices.

Despite a positive outlook for growth, “there is a considerable amount of uncertainty surrounding the 2014 budget. Overruns in current expenditure will most likely lead to financing difficulties for the government or further crowding out of the private sector,” the central bank warned.

“Any setback to fiscal consolidation either due to slippages in revenue or current expenditure will undermine medium-term debt sustainability and will have adverse implications for exchange rate and prices.”

Likes(0)Dislikes(0)

Majlis approves reallocation of flats from southern atolls to Hulhumalé

The People’s Majlis voted 38-31 yesterday to grant a request by President Abdulla Yameen to reallocate 704 flats to Hulhumalé from a 1,500-housing unit project planned for four southern atolls.

MPs of the ruling Progressive Party of Maldives (PPM) and coalition partner Maldives Development Alliance (MDA) voted in favour while opposition Maldivian Democratic Party (MDP) MPs and Jumhooree Party (JP) MPs voted against the proposal.

On June 11, President Yameen asked parliament to review a decision by the 17th People’s Majlis in December 2013 to deny the president’s request.

The year before, the previous parliament had also denied his predecessor President Dr Mohamed Waheed’s request to revise the housing project to shift 704 housing units to Hulhumalé.

In December 2012, parliament rejected the proposed change with former Speaker Abdulla Shahid casting a tie-breaking vote after the vote was tied 33-33.

An MVR2.5 billion (US$162 million) loan was secured during the administration of former President Mohamed Nasheed in 2011 to construct 1,500 housing units in Gaaf Alif, Gaaf Dhaal, Fuvahmulah and Addu City.

In a letter seeking parliamentary approval for the revision – which was read out at the parliament sitting on July 2 – President Yameen stated that the government had conducted a “needs assessment” and determined that there was “no need at present” to build more than 796 housing units in the southern atolls.

Yameen also contended that “micro-level decisions regarding loans” should be made by the executive, adding that an affordable housing scheme was essential to develop Hulhumalé with a large enough population to provide education and healthcare services and create job opportunities.

Developing a ‘youth city’ in Hulhumalé with a population of 50,000 was a campaign pledge of President Yameen, whose vision for the artificial island includes the creation of light industries and a “technopolis” park as well as sports and entertainment facilities.

The president’s request was forwarded to the public accounts committee (PAC) earlier this month, which approved it over the objections of opposition MPs on the committee and sent a report (Dhivehi) to the Majlis floor for final approval. The report was compiled by the PAC of the previous parliament.

Pro-government MPs had rejected MDP MPs Ibrahim Shareef’s proposal to seek further information after summoning Housing Minister Dr Mohamed Muiz and voted in favour of a proposal by PPM MP Riyaz Rasheed to pass the previous report.

Parliamentary approval for revising the terms of a loan is required under amendments approved to the Public Finance Act in 2010.

Regional disparity

During the final debate on the report at Tuesday’s sitting, MDP MP for the mid-Hithadhoo constituency in Addu City, Ibrahim Mohamed Didi, alleged that the contractors stood to gain an additional US$21 million by shifting the flats to the Malé region.

“Who on the committee looked into what happens to this US$21 million?” the retired brigadier general asked, characterising the move as a “betrayal” of the people of the southern atolls.

He explained that the cost of a flat decreases from US$150,000 to US$75,000 when it is built in Hulhumalé.

Due to the low value of land outside the central region, Didi said people in the outer atolls were unable to secure housing loans and appealed to pro-government MPs to vote against the proposal on behalf of their constituents.

JP Leader Gasim Ibrahim also alleged “serious corruption” in tendering the construction work to a contractor as the cost of building a flat should not exceed US$75,000 on average.

Flats for tsunami victims in the south were built with loan assistance from the Saudi Fund and elsewhere for about US$50,000, he added.

The JP MP for Maamigili called for investigations by the Auditor General’s Office and Anti-Corruption Commission (ACC), questioning the US$150 million price tag for 1,500 flats.

Independent MP for Gaaf Dhaal Madaveli, Muaz Mohamed Rasheed, said his constituents were “very concerned” with the decision to reallocate the flats from the south.

If the flats are to be built in Hulhumalé, Muaz suggested that citizens of southern atolls should get preference in the awarding process.

However, despite the misgivings, Muaz said the government should be able to make revisions in the interests of loan repayment. While he attended yesterday’s sitting, Muaz did not participate in the vote.

PPM MP for Gaaf Alif Gemanafushi, Jameel Usman, noted that a large number of citizens from the atolls resided in the capital and were in need of housing, to whom President Yameen wished to provide low-cost housing.

MDA MP Ahmed Amir meanwhile cautioned that further delays caused by parliament could jeopardise the loan, which was secured on favourable terms at a “very low” interest rate.

The PPM-led government’s manifesto included land reclamation of several islands in the outer atolls, Amir said, where housing units would also be built.

A UNDP Human Development Index released last month highlighted regional disparities and inequalities in the Maldives as a “major challenge” towards human development.

“Where one is born within the Maldives determines many of the opportunities and choices available to a person,” the report concluded.

Likes(0)Dislikes(0)