Day: November 12, 2014

Budget debate begins in parliament

The budget debate began in parliament today with opposition MPs criticising higher taxes and pro-government MPs praising planned capital investments.

Progressive Party of Maldives (PPM) MPs contended that the budget would bring “revolutionary” changes to the economy and spur growth, noting that recurrent expenditure of MVR15.8 billion (US$1 billion) would be covered by government income or revenue of MVR21.5 billion (US$1.3 billion).

The MVR6.3 billion (US$408 million) allocated for the Public Sector Investment Programme (PSIP) – 24 percent of the budget – would see an unprecedented number of infrastructure projects launched in 2015, the ruling party MPs said.

Opposition Maldivian Democratic Party (MDP) MPs, however, questioned whether MVR3.4 billion (US$220 million) anticipated from proposed new revenue raising measures could be realised in full during the year.

MDP MPs also argued that the public would have to bear the burden of higher prices caused by import duty hikes and claimed the budget was “discriminatory” as constituencies represented by opposition MPs were ignored.

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EU demanded same sex marriage, freedom of religion, claim ministers

The European Union (EU) demanded legalisation of same sex marriage and freedom of religion in return for extending duty-free status to Maldivian exports of canned tuna, Economic Development Minister Mohamed Saeed and Fisheries Minister Dr Mohamed Shainee have claimed.

At a press conference this afternoon, Saeed said that the reason for the EU’s decision was the Maldives’ refusal to accept the condition for “allowing homosexual relations and the opportunity for people to follow any religion they want”.

“The Maldives is an Islamic state and will remain so. We will uphold Islam. We will not compromise on anything that conflicts with Islam,” he said.

Last year, the government’s application for a year’s extension under the ‘GSP Plus’ program was declined as it had not ratified all 27 required international conventions. The Maldives holds reservations concerning the freedom of religion component of the International Covenant on Civil and Political Rights (ICCPR).

Dr Shainee said there was consensus among the public that same sex marriage and freedom of religion should not be allowed in the Maldives.

The ministers accused the opposition of attempting to deceive the public and obstructing the government’s development efforts.

Shainee said the opposition was twisting and distorting statements from government officials to divert attention from the government’s achievements during its first year in office, attempting to cast a “shadow” on the government’s achievements.

He accused former President Mohamed Nasheed of providing false information to foreign parties with the intention of “creating distrust towards the Maldivian people” and turning foreign nations against the Maldives.

The Maldivian people would suffer the consequences of the opposition’s alleged attempts to worsen relations with India and Europe, he said.

India has suggested remarks made in the People’s Majlis by Dunya last week regarding Sino-Indian talks on the Maritime Silk Road project were misleading, prompting government politicians to suggest the MDP was behind the confusion.

After publishing what is claimed to be evidence of the supposed discussions having taken place yesterday, Indian High Commissioner Rajeev Shahare tweeted a link to the official joint statement released at the conclusion of September’s talks between President Xi Jinpeng and Narendra Modi.

The 28-point statement contained no mention of the silk road project, while the Chinese press release referred to by the Maldives government mentioned that the two governments “should” work within the silk road framework.

Looking East

In his Republic Day address yesterday, President Abdulla Yameen accused the EU of imposing trade restrictions on the Maldives for refusing to change or abandon Islamic principles.

Until January 2014, fish exports to the EU – the single largest export partner by value – were duty-free under the Generalised System of Preferences (GSP) programme, a non-reciprocal trade agreement extended to developing countries.

Thailand, Ecuador, and China also lost GSP benefits this year.

The Maldives was forced to apply for GSP Plus status as a result of its graduation from least developed country status – a change President Yameen has noted as bringing “enormous challenges and hardships”.

President Yameen said yesterday trade and economic cooperation with China does not involve the same challenges to remaining an Islamic state posed by “Western colonial powers.”

“Participating in business with China does not involve any such compulsion for us,” Yameen said.

Former Fisheries Minister Shafeeu told Minivan News in November 2013 that the Maldives would lose its competitive advantage over the larger fishing fleets of nearby Sri Lanka and Thailand with a 14-20 tariff on fish imports, and reduce profits to “a marginal value”.

President Yameen said there was “no way forward” for the country on the issue.

“The government’s thinking is changing towards the East,” he said. Under the Maldivian Constitution, all citizens are required to be Sunni Muslim and the practice of other religions as well as places of worship are prohibited.

Shainee noted that the EU was still the Maldives biggest partner for fish exports and stressed that closer ties with China does not entail worsening relations with India or other friendly nations.

The government has been looking for new markets for fish exports – such as China, the Middle East, and America – and have introduced longline fishing, he added.

Of the companies responding to request for proposals from the government for infrastructure projects, Saeed said today that a large percentage were from China.

An agreement has also been signed between China and Maldives to form a joint commission on trade and economic cooperation, he added, which would facilitate economic growth.

Saeed also noted that China represents 40 percent of tourist arrivals to the Maldives.

The government decided to participate in the Chinese 21st Century Maritime Silk Route initiative because China is currently the strongest and fastest growing economy in the world, President Yameen said yesterday.

As a result, Yameen continued, the government believes that the “multi-million dollar infrastructure investment” needed for economic development would “arrive through this door.”

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Nasheed questions government’s legitimacy and record as one-year anniversary looms

Maldivian Democratic Party (MDP) President, Mohamed Nasheed has criticised the government for failing to keep promises made when it came to power almost one year ago.

Beginning by questioning the manner by which President Abdulla Yameen came to power, the former president suggested the election coalition had faltered and investor confidence had not been restored.

While giving an interview to Raaje TV last night (November 11), Nasheed also slammed the government for its failure to respond adequately to the abduction of Minivan News journalist Ahmed Rilwan 96 days ago.

“There is no doubt that Rilwan was abducted. All the information obtained by the police and other separate investigations point to an abduction,” said Nasheed.

Recalling the much-delayed, and once-annulled presidential elections last year, Nasheed reminded viewers that yesterday’s Republican Day has traditionally seen the start of a new presidential term.

“Republican Day has always been the day when the new presidential term begins and ends,” said Nasheed. “However, President Yameen’s gave oath after the assigned date. This raises legitimacy issues with how the Government came to power.”

Last year’s Republic Day saw former President Dr Mohamed Waheed inform the nation that he would stay in power for one week beyond the constitutional end of his term in order to avoid a power vaccum after repeated delays in the poll to find his successor.

The 2013 presidential elections eventually saw the MDP and Progressive Party of Maldives (PPM) candidates contesting the second round, with the PPM’s Abdulla Yameen eventually winning the election after forming a coalition with the Jumhooree Party (JP).

“Recent events have made it clear the that the coalition has failed,” said Nasheed in reference to the government’s acquisition of JP leader Gasim Ibrahim’s Kaadedhoo Airport after the MP spoke against the government’s flagship Special Economic Zones (SEZ) bill.

Nasheed noted that the people in charge of the government right now received a very small percentage of the total votes once the votes from JP supporters were discounted.

Promises broken

Nasheed pointed out that the government made a lot of promises towards the betterment of fishermen – including a pension of MVR10,000 (US$650) which was not included in next year’s proposed budget. But the price per kilo of tuna has dropped from a healthy MVR18 during Nasheed’s government to a mere MVR6 today, he continued.

President Yameen recently announced a foreign policy shift from west to east, partly as a result of the Maldives’ failure to qualify for extended duty-free status for fish exports after non-compliance with international conventions concerning freedom of religion.

Nasheed also attacked the government’s SEZ Act, suggesting that there has been little interest shown by foreign investors even after all the necessary laws and regulations have come to place.

The SEZ act – which offers relaxed regulations and tax concessions – described by President Yameen as a landmark law that will “transform” the economy through diversification and mitigate the reliance on the tourism industry.

While speaking about the proposed 2015 annual budget, Nasheed said that like during Maumoon Abdul Gayyoom’s 30-year regime, the current government has included a large sum as expected earnings which would eventually lead to higher budget deficit.

“For example, expected earnings from SEZ investments is valued at MVR1.5 billion (US$ 100 million). This is ambitious and unrealistic,” explained Nasheed.

The 2015 annual budget includes MVR3.4 billion (US$220 million) as expected revenue from brand new income generating measures including acquisition fees from SEZ investments and the introduction of a green tax on tourism.

A recent MDP budget review concluded that such expectations were unrealistic after stating that even if the government were to obtain MVR1.5 billion (US$100 million) as acquisitions fees at a rate of 10 percent of the investment it suggests an investment of US$1 billion.

The single biggest investment in the country to date was the ill-fated MVR7.6 billion (US$ 500 million) deal with India’s GMR group for the development Ibrahim Nasir International Airport in 2010. A Singapore court of arbitration is currently evaluating the amount owed by the government for the wrongful termination of the deal in November 2012.

The former president described the government’ abrupt terminations of foreign investments as saddening, suggesting that it would decrease investor confidence in the nation.

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MDP says government should decrease foreign relations budget to fit “policy of exclusion”

The opposition Maldivian Democratic Party (MDP) has called on the government to decrease its budget allocation for foreign relations, saying current policy made such expenditure unnecessary.

“Such an increase in funds will not be needed as the incumbent government has revealed that its foreign policy is one of exclusion,” said former Speaker Abdulla Shahid.

Speaking at a press conference given by the International Relations Committee of the MDP today (November 12), Shahid said that the current budget allocation was too great for such a policy.

“From the president’s speech on Republic Day, as well as various other statements by himself and foreign minister Dunya Maumoon, it has become apparent that this government’s key foreign policy strategy is to exclude itself and cut ties with the rest of the world”.

Speaking on the occasion of the Maldives’ Republic Day, President Yameen yesterday criticised “Western colonial powers” for anti-Islamic policies, suggesting that the Maldives was turning east toward China as a partner which does not involve such challenges.

Meanwhile, Yameen’s enthusiasm to participate in China’s silk road project has prompted opposition fears of strained regional relationships. The government maintains, however, that it is watchful of regional security issues.

The Yameen administration has pledged an improved foreign investor environment in order to restore confidence in local investment. Despite the introduction of the Special Economic Zone Act in August, the only najor interest shown in the government’s proposed ‘mega projects’ has come from China.

Shahid stated today that the budget allocations for foreign relations had risen by 22.7 percent from 2013 to 2014, and that the estimated MVR533 million (US$34.5 million) in the 2015 budget amounted to an increase of another 20 percent.

“An increase in this budget should only come in a government which is aiming to build ties with the international community, not break them. The MDP maintains that the budget should be reflective of the government’s policies,” he added.

Shahid highlighted that in 2014, the government shut down or downgraded a number of international missions.

He also took the closure and reopening of the missions in Bangladesh and the United Arab Emirates as examples of the government’s weak foreign policies.

“Such indesicive action in matters like this affects relations with these countries. Additionally, the government has also downgraded the mission in London, which indicates that the government has no interest in maintaing strong ties with UK or the Commonwealth,” Shahid said.

The MDP alleged that such actions demonstrate to the world that the incumbent Maldives government does not have a long term foreign relations plan or objectives.

The MDP also expressed concerns that the number of political positions in foreign missions are on the increase.

“I don’t see why taxpayers should continue to pay for PPM activists to fill positions at foreign missions, when they don’t do any constructive work and do not even possess the skills necessary to do the required work,” Mariya Ahmed Didi stated.

Shahid added that the increase in political positions posed a disadvantage for better trained senior professionals at the Ministry of Foreign Affairs, whose opportunities to work at foreign missions have decreased by half within the year.

He also emphasised the failure to provide incentives which allow female professionals to take up jobs in foreign missions, including allowances for child care and education.

Shahid went on to say that , while the next session of the SAARC Summit is scheduled for 2015, he feels that the government should exclude budget allocations for the event as past actions show the government “has no interest or intention to maintain ties or hold discussions” with neighbouring countries.

“The MDP maintains that its foreign policy will always remain non-discriminatory and open to all countries. We will continue to build ties with any interested countries as much as we can without compromising our country’s sovereignty or independence”.

The Maldives currently has 13 overseas diplomatic missions in China, Saudi Arabia, and Japan, with high commissions in Sri Lanka, Pakistan, India, Malaysia, Singapore, and the United Kingdom.

The Chinese mission in Malé is the latest addition to the Maldives’ small diplomatic circuit which otherwise includes only the SAARC countries of Sri Lanka, India, Bangladesh and Pakistan.

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Nasheed’s awards brings honour and prestige to Maldives, says MDP

Former President Mohamed Nasheed’s awards and international recognition for climate change advocacy brings honour and prestige to the Maldives, the opposition Maldivian Democratic Party (MDP) has said.

The opposition leader returned yesterday after a visit to the United States to receive the ‘Sylvia Earle Blue Mission’ award for 2014 at a ceremony in St Petersburg, Florida, on November 6.

Nasheed – also the party’s president – was greeted by throngs of supporters at the jetty in Malé.

The MDP noted in a press statement today that St Petersburg’s Mayor Rick Kriseman also presented Nasheed a key to the city at a ceremony in his honour.

Nasheed also addressed students of the Earth Science Faculty of the University of South Florida and gave interviews to several American newspapers and websites such as the Huffington Post during the visit.

The MDP said Nasheed has become a global icon for his advocacy on climate change and global warming, which has brought attention and international repute to the Maldives.

After serving on the jury panel of judges of the Zayed Future Energy at Abu Dhabi in October, Nasheed delivered the keynote address at the International Bar Association ‘annual conference showcase session on climate change and human rights’ in Tokyo last month.

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MCC opens a new parking lot in Majeedhee Magu

Malé City Council (MCC) has opened a new parking lot on a vacant plot of land at H.Heenaamaage in Majeedhee Magu – the capital’s main road.

While speaking at the opening ceremony of the facility – believed to accommodate up to 300 motorbikes – MCC Mayor Mohamed Shihab said that since Majeedhee Magu is the busiest street in Malé, specialized parking spots would reduce traffic.

“As of now, parking in the lot is free. However, we may take a small fee after discussing it with the people living nearby and shop owners in the area,” said Shihab.

Also speaking at the ceremony, MCC member Shamau Shareef said that the plot has been contracted to an Indian firm which wsa to develop a multi-story facility two years ago, but the work had not begun as the company was not able to register in the Maldives.

“The contract is still valid and if the government allows the company to register in the Maldives, We would be able to build the three story parking lot here,” explained Shamau.

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Economic ministry takes over approving night market from city council

The Ministry of Economic Development has taken over authorising the annual night market from the opposition-dominated Malé City Council.

The ministry announced today that permission or approval for holding carnivals, fun fairs, promotional fairs, and night markets should henceforth be sought from the ministry.

Application forms would be available from the ministry’s website.

The move follows the cabinet’s decision to take over maintenance of the capital’s roads from the city council.

Earlier this week, the housing ministry signed an agreement with the Maldives Road Development Corporation (MRDC) for maintenance of drains of the capital’s roads and resolve persistence flooding during heavy rain.

The project involves cleaning the pavement drains as well as cleaning and repairing water pipes.

The opposition Maldivian Democratic Party-majority city council has been at loggerheads with the executive since the controversial transfer of presidential power in February 2012.

Earlier this year, the Anti-Corruption Commission alleged corruption in the awarding of a contract by the city council to Go Media for the organisation of the annual night market.

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V News editor arrested for assault

V News Editor ‘Mundu’ Adam Haleem has been arrested on Tuesday night on charges of assaulting a female colleague.

The outlet has placed Haleem on suspension in connection to the incident, local media reports, after CCTV footage showing a man fitting Haleem’s description shoving a female colleague onto a staircase was circulated on social media.

The footage showed another male figure intervening to stop Haleem from further assaulting his colleague before pulling him into a nearby room.

Police stated that Haleem was arrested under a court order at around 11.30pm on Tuesday night (November 11), declining to comment further on the ongoing investigation.

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Four applicants for auditor general’s job

President’s Office Spokesperson Ibrahim Muaz has told local media that applications from four individuals have been received for post of auditor general.

While the application deadline ended on Monday, Muaz stated that the applications are currently being processed. He declined from providing any information regarding the applicants other than saying that none were females.

On October 29, the parliament approved an amendment proposed by ruling Progressive Party of Maldives (PPM) MP Ahmed Thoriq to the Audit Act enabling the president to reappoint the auditor general, four years before the end of the incumbent Auditor General Niyaz Ibrahim’s seven year term.

The recent amendment stipulates that the president must submit a nomination for the post to the parliament 30 days from the ratification of the act.

The amendment was passed despite the opposition Maldivian Democratic Party (MDP) members’ argument that it should not have been put to a vote as it allows the discharging of the incumbent without following the constitutional provisions for impeachment.

The amendment came into effect on the same day that the Auditor General signed a damning report into an alleged US$6 milllion corruption scandal involving PPM Deputy Leader and Minister of Tourism Ahmed Adeeb – a report Adeeb claimed was politically motivated.

Earlier in November, Niyaz Ibrahim told local media that he will not be reapplying for the post, and that instead he intends to challenge the constitutionality of the amendment in court.

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