Category: Politics

Police Commissioner was appointed legally, says integrity commission

The Police Integrity Commission (PIC) has stated that Commissioner of Police Abdulla Riyaz was appointed to the position in compliance with the Police Act, and that his appointment was lawful.

In a statement issued today, the police said that the PIC had sent a document informing them about this conclusion and stating that the PIC had decided Riyaz was appointed in compliance with Police Act 2008/5 article 52(a) and 52(b).

Police said that President Dr Waheed Hassan had appointed Riyaz on Feburay 8, 2012. Before Dr Waheed appointed him as the commissioner, the Home Minister Mohamed Ahmed Jameel had appointed him as Assistant Police Commissioner  on the same day.

According to media reports the PIC investigated the case after some politicians expressed doubts over  the legitimacy of Riyaz’s position.

On August 20, Riyaz posted a letter he claimed to have been sent, urging the police to “say no” to former President Mohamed Nasheed on September 7, just as they had on February 7 – an event the author described as a “jihad”.

The letter, addressed to the entire police force, praised officers for their “patience” in the face of Nasheed’s “cunning” and “malicious” actions during his presidency.

On August 24, the Maldivian Democratic Party (MDP) issued a statement stating that the ”MDP firmly believe that Riyaz, by choosing to tweet the image of this particular letter against a candidate running in the presidential elections has contravened the codes of conducts enshrined in the Police Act and the Presidential Elections Act.”

Riyaz was appointed commissioner immediately after Nasheed’s resignation, which Nasheed and MDP would later claim was a police coup. The party has also repeatedly questioned the legality of Riyaz’s role on February 7.

The allegations were later rejected by a Commonwealth-backed Commission of National Inquiry (CoNI) that ruled that there had been “no coup, no duress and no mutiny”, while also calling for action taken against unlawful acts committed by the country’s security forces following the transfer.

During the statement regarding Riyaz’s social media activity, the party again raised the issue of the police commissioner’s legitimacy.

”The MDP notes that this is unfortunately not the first instance where Mr Riyaz, appointed in dubious circumstances, has used his position in a blatantly politically manner,” the MDP statement read.

”The MDP would like to draw attention to Riyaz’s role in the February 7 2012 forceful overthrow of government, subsequent police brutality, impunity and lack of accountability, politically motivated detentions, unconstitutional barring of Raajje TV from police service events, the refusal to accept summons by parliamentary select committees and the extensive interview he recently gave on a policy which was alleged to be the MDP’s.”

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Six hundred flats awarded to police and military

Government authorities have awarded 600 apartments to Maldives Police Service (MPS) and Maldives National Defence Force (MNDF) personnel this week, including to Police Commissioner Abdulla Riyaz and senior police officers.

The housing development projects – providing 300 apartments for MPS, and 300 for MNDF officers – are being jointly managed by the government-owned Housing Development Corporation (HDC) in conjunction with the Police Cooperative Society (POLCO) and the MNDF co-operative SIFCO.

The opposition Maldivian Democratic Party (MDP) has described the awards as a continuation of the patronage policies that prevailed under the 30 year autocracy of Maumoon Abdul Gayoom.

Under the MPS’s MVR580 million (US$37.6 million) ‘Blue’s Housing Project’ 210 three-bedroom and 90 two-bedroom apartments will be built.

The housing scheme was described as being important for the maintenance of the police force’s welfare by Commissioner Riyaz during the project’s foundation laying ceremony in March. Acting Home Minister Ahmed Shafeeu presented recipients with the official documents yesterday (September 2).

Apartments were awarded to officers with at least 20 years of service and based on a points system used in other housing schemes, Chief Superintendent of Police Abdulla Nawaz told local media.

The awarding of flats marks the beginning of the POLCO project, which is seeking private investment for a further 150 apartments, said Commissioner Riyaz during Monday’s ceremony.

Last month, 50 apartments on Hulhumale’ were handed over to police officers by President Dr Mohamed Waheed, who expressed hope that more housing would be made available exclusively for police and military officers.

Since the controversial transfer of presidential power involving elements of the police force, 1000 officers have been promoted and 110 new officers were hired. More recruits have been sought for a “special constabulary” reserve force, a loan scheme has been established for officers, and arrangements have been made for officers and their families to receive cheap accommodations and medical treatment in Sri Lanka.

The Maldives Police Service had not responded to Minivan News’ enquiries at time of press.

MNDF flats

Meanwhile, the government has re-started construction of 300 housing units on Hulhumale’, specifically for MNDF officers.

President Waheed, Defence Minister Mohamed Nazim, and senior MNDF officials laid the foundation stone for the apartment complex during a ceremony held on Hulhumale’ yesterday.

The apartments will be given to female officers who had not been previously awarded housing units, as well as to retired officers, the MNDF told local media.

Once constructed, the housing units would provide MNDF personnel and their families “adequate accommodation” as many are currently “living under a degree of hardship, having to rent their living spaces,” Waheed said during yesterday’s ceremony. Nazim added that the project would provide facilities such as playgrounds, a swimming pool, and a gym for residents.

President Waheed also awarded 50 apartments to MNDF personnel and their families last month, although seven of these flats had yet to be assigned.

Waheed noted during yesterday’s ceremony that the provision of shelter for military personnel was not an act of kindness, but rather a government obligation.

“The development and welfare of personnel should be improved in accordance with financial capability of the government, and the flats awarded today provides evidence of that fact,” Defence Minister Nazim stated at the time.

In April 2012, MNDF officers were given two years of allowances in a lump sum, which amounted to MVR 150 million (US$10 million) for the institution.

The Maldives National Defence Force was also not responding to enquiries at time of press.

“Patronage” continues: MDP

The Maldivian Democratic Party (MDP) believes the award of 600 housing units to MNDF and MPS officers is a continuation of the patronage system established during former President Maumoon Gayoom’s 30-year autocratic rule.

“In the light of extensive exposes, such ‘patronage’ is familiar to voters from the single party dictatorship of Gayoom and I believe they will simply say to each other ‘I told you so’,” MDP MP and Spokesperson Hamid Abdul Ghafoor told Minivan News today (September 3).

The MDP previously raised concerns about whether the already constructed flats – which it contends forms part of the “Veshi Fahi” Male’ (decongestion) project launched under the previous government in 2011 – were being given to the “needy” and most deserving.

Ghafoor said it was “very concerning” that police should be given flats exclusively, to the detriment of teachers, doctors and other civilians. He also questioned how officers themselves had been selected for the process.

While some of the officers may have deserved the housing, there was concern that some officers involved in last year’s mutiny had been rewarded with flats, claimed Ghafoor.

Last month, President Waheed requested parliament approval to obtain a US$29.4 million loan from the Bank of Ceylon to finance the government’s budget and manage cash flow.

The Ministry of Finance and Treasury was seeking to secure the loan as a way to “enforce” the 2013 budget approved by parliament, stated a letter from the President’s Office read during a parliament session held on August 13.

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Parties to leaked “coup agreement” dismiss document’s authenticity

Read an English translation of the document

Download the original document in Dhivehi

Vice President of the Civil Alliance coalition of NGOs, Abdulla Mohamed, has claimed that a leaked document allegedly signed by all then-opposition political parties to commit to toppling former President Mohamed Nasheed’s government is not authentic, and that the signatures of party representatives are forged.

The document, apparently signed and sealed by the parties and the Civil Alliance, purports to be  blueprint of a plot to overthrow the government, forcing former President Nasheed to resign, and have the Supreme Court order him to remain away from politics for the rest of his life.

The document is dated December 29, 2011 and features the signatures and seals resembling those of the then-opposition parties Progressive Party of Maldives (PPM), religious conservative Adhaalath Party (AP), Dhivehi Qaumee Party (DQP), Jumhoree Party (JP), Dhivehi Rayythunge Party (DRP), People’s Alliance (PA) and the Civil Alliance.

The unauthenticated signatures appear to include those of PPM Vice President Umar Naseer, Islamic Minister Sheikh Shaheem Ali Saeed (on behalf of the AP), Leader of the DQP Dr Hassan Saeed, Leader of the JP Gasim Ibrahim, DRP Leader Ahmed Thasmeen Ali, and Deputy Speaker of Parliament Ahmed Nazim on behalf of the PA.

“This agreement, is an agreement agreed by friendly political groups, after having come to the belief that current President Mohamed Nasheed of Galolhu Kenereege should no longer be allowed to remain as the president of this country, to completely bar Nasheed from politics and to eradicate the existence of the Maldivian Democratic Party (MDP) who are being influenced by Christianity for the sake of the country’s future, for reasons that include: dishonoring the religion Islam and the laws of this country, openly promoting anti-Islamic mottos, refusing to enforce Islamic Sharia’, indulging in anti-Islamic activities, arbitrarily arresting political opponents, acting contempt of the courts of the law,” states the document’s introduction.

Abdulla Mohamed dismissed the document: “I swear by Allah, that I have never signed an agreement with any political parties both in my personal capacity and in my capacity as the Vice President of the Civil Alliance. Any agreement, had we made one, would have been live on television. I even have the minutes of meetings held with political parties and I will reveal them soon.”

Ahmed Thasmeen Ali, Gasim Ibrahim, Sheik Shaheem and Deputy Speaker Ahmed Nazim have all denied the validity of the document to local media.

“I helped Waheed out of the mess”: Ahmed Faiz

Former Deputy CEO of Maldives Ports Limited Ahmed Faiz – who recently defected to the MDP following his arrest for allegedly attempting to blackmail Supreme Court Justice Ali Hameed in a sex-tape scandal – told Minivan News that it would have been “really odd” for the parties to enter into such an agreement without his being a party to it.

Faiz did not dismiss the authenticity of the document, but suggested that GIP may have been deliberately sidelined from the agreement.

“When I looked into the document, one party was missing. President Mohamed Waheed Hassan’s party Gaumee Ithithaadh Party (GIP) is missing in the document. I was the one representing the party at those meetings aimed at toppling Nasheed,” said Faiz.

Faiz said he presumed that omitting the GIP from the agreement was possibly due to tensions between Waheed – who was then Vice President – and the group of opposition political parties.

“Their spirit was quite odd. They were talking during the meetings too. Firstly, they planned to oust both Nasheed and Waheed. They had grudges against Waheed after he gave a press conference as Vice President calling for the suspension of Chief Judge of the Criminal Court Abdulla Mohamed. However I talked to the opposition parties and persuaded them to exclude Waheed from the plan,” Faiz explained.

Faiz also implied that Waheed had little role during the initial stages of ousting of Nasheed’s government, and contended that a televised press conference and early morning meeting between Waheed and opposition parties a week prior to Nasheed’s ousting had just been “showing off”.

During the press conference, DRP Vice President Ibrahim Shareef “asked the Vice President to save this nation. I would like to call upon the security forces [to accept that] since the Vice President is a person elected by Maldivians, and should the President be incapacitated to perform his legal duties, the Vice President must assume the duties of the President.”

Waheed was not present at the press conference. Faiz told Minivan News, “When the idea of ousting Waheed and Nasheed began floating, I went onto VTV and invited Waheed to join the anti-government protest that had been going on against Nasheed. He got really upset and we both even had a falling out.”

‘Plot’ to oust Nasheed

According to the document, the plot to topple Nasheed’s government was to start on February 24, 2012 – 17 days earlier than the day Nasheed was toppled – following a nation-wide Islamic symposium.

It proposed that Nasheed’s presidency be ended within 24 hours from commencement of the symposium, after giving the president a five hour ultimatum to resign unconditionally.

In late January 2012, 22 days of continuous anti-government protests led by then opposition figures and religious scholars following the controversial detention of Chief Judge of the Criminal Court Abdulla Mohamed escalated into a mutiny by certain elements within the police and the military.

By midday of February 7, 2012, then-President Nasheed had exhausted all his options to establish a chain of command within the ranks of police and military, and was left trapped inside the Maldives National Defence Force (MNDF) barracks surrounded by rebelling police and military forces along with an angry mob of demonstrators, who had been armed by the rebelling security services.

Within a short span of time, the current Defence Minister Mohamed Nazim – who had been a civilian at the time – entered the military barracks and gave Nasheed an ultimatum to “resign or face the dire repercussions”. At the same time another group of demonstrators and rebelling security forces stormed and took control of the state broadcaster. Nasheed’s subsequent resignation at the President’s Office was aired on the swiftly re-branded Television Maldives.

Vice President Mohamed Waheed then ascended to power.

Mutiny and Vice President’s endorsement

The symposium, the document claimed, would escalate into a violent demonstration on the outskirts of Republic Square with three groups stationed at different locations.

Religious sheikhs affiliated with the movement would address the police barricading the area, and were to convince them that it was haram under Islam to obey the orders of President Nasheed in a bid to appeal for their support. Following the speeches of the religious sheikhs, politicians would take over the stage and then PPM Vice President Umar Naseer was to give the final speech.

By the end of his speech, a lieutenant colonel and a brigadier general from the MNDF would step aside from their duties and would appeal to the remaining military officers to disobey the orders of the president.

By this time, a platoon of Police’s Special Operations (SO) department would rebel against the police leadership and begin protests within Republic Square, creating a distraction that would allow more demonstrators to enter Republic Square and join the rebel police.

According to the document, by this time then Nasheed’s Defense Minister Tholhath Ibrahim Kaleyfaanu – who according to the document had pledged supported to the movement – would go on to order the MNDF to arrest the protesting police live on state broadcaster MNBC One.

Using this opportunity, the organizers of the movement, by using opposition-aligned TV station DhiTV, would propagate rumors across the country that MNDF had begun brutalising the protesting police and appeal the other police officers to join the protests to help their colleagues.

The document claimed that Nasheed’s Vice President Mohamed Waheed Hassan – the current president – had pledged his support for the movement and would take over the presidency as soon as the Supreme Court ruled that Nasheed had been incapacitated.

It also claimed that Waheed had agreed to form a national unity government with “friendly political groups”, and had agreed not to seek re-election at the conclusion of the presidential term.

Arrest of Nasheed and declaration of incapacity

By the time the demonstrations had escalated into a violent mob backed by police and military, the Special Protection Group (SPG) of the MNDF – tasked with protecting the president – would escort Nasheed to the presidential retreat of Aarah, in the name of giving him protection and security.

Shortly after Nasheed had been escorted to the island, an emergency court case would be filed at the Supreme Court requesting it to rule that Nasheed was incapable of remaining as the President, due to fear of violence and loss of the social harmony of the state as police and military were reluctant to follow his orders.

Then Vice President Mohamed Waheed Hassan would immediately take oath as the President as soon as the ruling was issued.  In an another ruling after Waheed assumed power, the Supreme Court would order the imprisonment of Nasheed and bar him from involvement in politics for the rest of his life.

According to the document, leader of the DQP and running mate of resort tycoon and JP Leader Gasim Ibrahim, Dr Hassan Saeed, and Deputy Speaker of Parliament Ahmed Nazim were lobbying the Supreme Court bench to get its support.

The document also alleged that the PPM has had agreed to have current Attorney General Aishath Azima Shukoor try to convince Chief Justice Ahmed Faiz Hussain to support the petition.

After intense negotiations, the document claimed, a green signal had been given to the movement that the Supreme Court would issue the orders as requested by them.

New government

The document claimed that shortly after Waheed Hassan assumed power, the cabinet of President Nasheed would immediately be dismissed and a new cabinet would consisting of 10 members would be appointed including PPM Vice President Umar Naseer as the Home Minister and Tholhath Ibrahim Kaleyfaanu reappointed as the Defense Minister.

Similarly, retired Colonel Mohamed Nazim was to be appointed as the Chief of Defence Force and Abdulla Riyaz appointed as the Commissioner of Police.

However, when the government of President Mohamed Waheed Hassan assumed power in February 7, 2012, the position of Home Minister was given to Dr Mohamed Jameel Ahmed and the Defense Minister position was given to retired Colonel Nazim. Brigadier General Ahmed Shiyam was appointed Chief of Defence Force while Abdulla Riyaz was appointed as the Commissioner of Police.

Dismantling and factionalising MDP

Following the change of government, the document claimed that it was highly important to divide, dismantle and factionalise the ruling Maldivian Democratic Party (MDP), in a bid to weaken opposition to government.

“It has been agreed among all friendly political groups, that it is very important to influence and overtake the control of the Maldivian Democratic Party (MDP) and the following actions have been commonly agreed to be carried out in order to dismantle the MDP’s leadership,” read the document.

The schemes to divide the MDP included backing then President of the Party, Dr Ibrahim Didi – whom the document described was politically weak and easily manipulated – while also supporting current Chairperson of MDP MP ‘Reeko’ Moosa Manik, whom the document described as susceptible to blackmailed and threats against his business interests.

The document noted that Vice President of MDP MP Alhan Fahmy was the second biggest threat in the MDP as he had the potential to reorganise it in the absence of Nasheed.

The document claimed that the movement would work on promoting Dr Didi as party’s official presidential candidate, financed by JP Leader Gasim Ibrahim.

In a bid to verify the authenticity of the document Minivan News tried contacting all parties mentioned in the document, but with the exception of Abdulla Mohamed from the Civil Alliance, no others were responding to calls at time of press.

Read an English translation of the document

Download the original document in Dhivehi

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Cabinet’s convention centre re-zoning “for political gain”: Addu City Mayor

The Cabinet has advised President Mohamed Waheed Hassan to overturn the previous government’s decision to make the Addu Equatorial Convention Center (ECC) zone an ‘uninhabited area’, potentially allowing the sale of prohibited commodities such as liquor, as practiced for resorts.

The area was designated ‘uninhabited’ on November 19, 2011 by former president and current presidential candidate Mohamed Nasheed.

Yesterday’s recommendation originated in the Finance Ministry, which submitted a paper on the subject during Monday’s cabinet meeting, the president’s office reports.

Spokespersons at the President’s Office said they could not provide details on the recommendation; Addu City Mayor Abdullah Sodig reports that the council was not consulted on or informed of the Cabinet’s recommendation, and claims that it was made for political gain in the face of this Saturday’s presidential elections.

“The Cabinet recommendation opposes Nasheed’s [tourism development] policy, and they want to show the public that they are trying to give land to people who need it. But it’s really just political gain,” Sodig said. “Three days before elections, I don’t think it’s about giving people land.”

Zoning laws in the Maldives determine which islands and areas may be developed for tourism and therefore exempted from national laws prohibiting the sale of alcohol and pork and enforcing compliance with cultural dress codes. Maldives’ southern atolls, including Addu and nearby Gnaviyani atoll, have historically benefited the least from the country’s tourism economy.

President Nasheed decreed the ECC zone uninhabited prior to the 2011 SAARC summit in Addu, effectively laying a foundation for resort, guest house and other tourism-oriented development activities.

Nearly two years since this decree the mood has shifted dramatically. Bids to develop the convention center and surrounding area were interrupted by the February 7, 2012 transfer of power, after which the new administration retained the building as a “national asset”.

Formerly enthusiastic about Addu’s growth potential, Sodig today expressed deep frustration with the government’s inaction.

“[The Convention Center] is never dusted, the toilets are never cleaned, the floors never polished,” he said, adding that the facility has only been used for a few wedding parties and political rallies since it opened in November 2011.

Sodig claimed that his repeated requests for maintenance funds and development activity had received minimal response from President Waheed’s government.

“I took the State Minister of Housing to the building and asked him to look into maintenance. I even met with the Attorney General, Azima Shukoor, for the same purpose in Male,” said Sodig. “She said she would think about it. But until now they have done nothing.”

Sodig reports that without tourism development the ECC, which as of January was mired in MVR 4 million ($260,078) of unpaid electricity bills, “would end up as a liability”. As of June, the Maldivian government owed State Electricity Company (STELCO) MVR 543 million ($35.2) in unpaid electricity bills.

The Cabinet’s sudden action this week suggests that the ECC zone is now being treated as a pawn in the housing debate for the presidential elections. Addu Atoll is home to a significant percentage of the population, and has historically supported President Nasheed’s Maldivian Democratic Party (MDP).

In 2002, 700 ECC-zone land plots were allocated to Adouin families. According to the mayor, only 150 plots have been officially registered as ‘in use’. In an atoll where the average household income is MVR 60,000 ($3,900) per year, the approximate cost of building a two-bedroom home is MVR300,000 ($19,500).

While Adduans who received land in the ECC zone objected to President Nasheed’s zoning decree in 2011, they were content with the island council’s compensatory proposal, Sodig said. He added that he was not aware of any recent complaints that might have triggered the Cabinet to recommend zoning reversal.

The ministries of Finance and Housing had not responded to calls at time of press.

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Supreme Court demands “free and fair” polls, while EC states no changes to voter registry

Download an English translation of the Supreme Court verdict

The Elections Commission (EC) has said no changes will be made to the voter registry for this month’s presidential election, following a Supreme Court order issued yesterday (September 2) demanding all institutions ensure free and fair polls.

Despite some political parties standing in the election having raised  several concerns over about the EC’s ability to oversee free and fair polls, the commission today stressed that its registry and schedule for Saturday’s voting was going forward as planned with international and local monitors poised to monitor proceedings.

The Supreme Court yesterday ordered all relevant authorities ensure a free and fair presidential election on Saturday (September 7), with the EC remaining duty bound to address any possible errors regarding details on the voter registry.

The order was made in response to a case filed by a senior Progressive Party of Maldives (PPM) member Ahmed Zaneen Adam questioning the EC’s capabilities to oversee a free vote.

Zaneen was today quoted in Sun Online as claiming that an additional 10,000 eligible voters would now be able added to the final electoral register without having to re-register with the EC as a result of the Supreme Court order.

PPM Mp Ahmed Nihan and vice presidential candidate Dr Mohamed Jameel Ahmed were not responding to requests for information at time of press.

No amendments

EC President Fuwad Thowfeek told Minivan News that in line with the Supreme Court’s ruling, the commission was committed to following electoral regulations but stressed that no amendments would be made to the final registry.

Thowfeek added that he had no knowledge of the additional 10,000 people wishing to vote in the upcoming poll, as referred to by Zaneen in local media.

“We have not been asked to make any changes to the [voter registry] and I believe the 10,000 people he mentioned are [Zaneen’s] own opinion. The voter list has now been finalised,” he said. “The Supreme Court has asked us to follow the laws on holding an election and this is what we are doing.”

Thowfeek added that the election was moving ahead as scheduled with ballot boxes and other necessary equipment including emergency lights, ink and paper all being taken to polling booths across the country in preparation for voting.

Alongside to the voter registry, the EC said it would also be working to keep pens provided at polling booth’s “safe” after the PPM and Jumhoree Party (JP) expressed concern this week over the possible use of ‘disappearing-ink pens’ to adversely alter the outcome of the election.

Thowfeek reiterated that while the EC would be providing voters with standard ballpoint pens at polling booths, voters concerned over the use of invisible ink could bring their own stationery to vote.

“Actually, it was a PPM member who showed one of these [invisible ink] pens to the media. This is the only one we have seen,” he said.

Thowfeek added that although pens inside poll booths will be monitored in order to try and prevent any tampering, he added that the public were requested not to accept any pens from people outside the polling booths.

“We have said that it may be best for voters to bring their own pen,” he added.

Thowfeek said that with hundreds of international and local observers overseeing Saturday’s vote representing NGOs, political parties and other institutions, the EC would be requesting that only one representative per group be allowed into the polling area at a time.

He stressed that all observers would be forbidden from touching ballot boxes or papers.

However, Thowfeek said that registered observers would be able to request that election officials address any concerns about vote counting once polls had closed on Saturday.

“They can for instance request to slow down the count if it is being done too quickly,” he said.

Download an English translation of the Supreme Court verdict

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Government seeking “longer-term” finance to plug revenue shortfall as 2013 sales of T-bills double

The government has said it hopes to secure longer-term financing to plug a shortfall in annual revenue that has seen the number of 28-day Treasury Bills (T-bills) sold by the state almost double in July 2013, compared to the same period last year.

According to the Maldives Monetary Authority (MMA) monthly review for August 2013, sales of T-bills for July 2013 has risen by 95 percent year on year.

The MMA stated that there had been a 163 percent in 28 day T-bills by July 2013 compared to the same time last year, despite sales of T-bills with a maximum maturation period of three month and six months declining by 63 percent and 83 percent respectively. Sales of T-bills were up 35 percent for July 2013 over the previous month, according to the MMA’s figures.

T-bills are sold by governments all over the world as a short-term debt obligation backed by sovereign states. In the Maldives, they have a maximum maturity of six months, in which time they must be repaid.

Budget issues

Finance Minister Abdulla Jihad told Minivan News this week that the state’s increased reliance on T-bills between July 2012 and July 2013 reflected the current difficulties faced by the government in trying to raise budgeted revenue during the period.

He added that with only “a few people” in the private sector were interested in purchasing the short-term debt obligation, T-bills has been sold as part of wider investments made by the state through the country’s pension fund.

Jihad stressed that although there had not been an increase in state expenditure over the last twelve months, the increased reliance on T-bills by the state arose partly from having to repay US$100 million in treasury bonds to the Indian government by February 2013.

He also raised concerns over a lack of parliamentary approval for numerous revenue raising measures.

Parliament in April rejected government-sponsored legislation to raise the airport service charge to US$30, which was among a raft of measures proposed by the Finance Ministry in the estimated 2013 budget to raise MVR 1.8 billion (US$116 million) in new income.

Other proposed measures include hiking Tourism Goods and Services Tax (T-GST) to 15 percent from July 2013 onward, leasing 14 islands for resort development, introducing GST for telecom services as well as oil, and “selectively” reversing import duty reductions.

Without such measures introduced, Jihad said that the Maldives had relied on 28 day T-bills, which were being sold as a means to “roll over” debt one month at a time.

“We are trying to have banks get longer-term finance such as T-bills at present,” he said.

According to the MMA, the Maldives fiscal deficit for 2013 was estimated to have fallen from MVR 4.3 billion or 13 percent of national GDP in 2012 to MVR1.3 billion in 2013 – four percent of current GDP.

A total of 62 percent of the current deficit – which reflects the total amount of government expenditure that exceeds its earnings – is expected to be covered through foreign financing. The remaining 38 percent will be covered through T-bills and “other means,” added the financial report.

The findings have been met with criticism from the opposition Maldivian Democratic Party (MDP), which has questioned why there had been an increased reliance on short-term financing through T-bills considering total state revenue rose 16 percent over the last 12 months based on MMA findings.

Mahmoud Razee, former Economic Development Minister under the previous government, claimed that it was important to understand that T-bills should only be used by the state to help cover its operational expenses, rather than serve as a long-term means of financing.

“With income tax revenue having increased according to the Maldives Inland Revenue Authority (MIRA), why have [T-bill sales] gone up? Under the MDP government we were using T-bills to meet our cash flow,” he said. “This had nothing to do with the fiscal deficit.”

Razee argued that while the former government had itself sought foreign loans to balance the financial deficit while in power, the administration of former President Mohamed Nasheed had worked to avoid relying on T-bills for longer-term financial concerns like balancing the national fiscal deficit.

“The moment T-bills are increased, this directly affects loans that banks are able to give to the private sector, leading to the cost of borrowing increasing,” he said.

Razee claimed that the MDP government had attempted to try and extend income tax reforms introduced during its time in office to further boost revenues – a plan he said was cut short by the controversial transfer of power on February 7, 2012.

“Beyond appropriate” spending

The Finance Ministry last month said it has managed to reduce state spending over the last twelve months, despite the MMA raising fears over the current “beyond appropriate” levels of government expenditure had led to a vicious cycle of borrowing.

Finance Minister Jihad at the time told Minivan News that efforts had been successful over the last twelve months to curb recurrent government expenditure, while its borrowing had at the same time remained consistent.

In April, the government announced it was suspending state-financed development projects to curb outgoings.

The suspension of development projects was taken after the state was found to have exhausted its annual budget for recurrent expenditure (including salaries, allowances and administration costs) in the first quarter of 2013.

The decision was made the same month that currency reserves in the Maldives were found to have “dwindled to critical levels”, according to the World Bank’s bi-annual South Asia Economic Focus report.

The government has since requested parliament approve a US$29.4 million loan from the Bank of Ceylon to finance the 2013 budget approved by parliament.

In July, the President’s Office also confirmed that discussions had been held with Saudi Arabia to secure a long-term, low interest credit facility of US$300 million to help overcome the “fiscal problems” facing the nation.

Parliamentary approval will be needed to obtain either of the loans, the Finance Ministry has previously confirmed.

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State broadcaster hosts Presidential Debate ahead of September 7 election

State broadcaster Television Maldives on Sunday aired a live question and answer session with the four candidates contesting the September 7 presidential election.

Moderator Heena Waleed stated that the questions asked – concerning education, health and economy, development and social protection – were based on a survey done by the Maldives National University (MNU) on citizens’ concerns.

The candidates included Gasim Ibrahim representing the Jumhoree Coalition – consisting of the Jumhoree Party (JP), Adhaalath Party (AP), Dhivehi Qaumee Party (DQP) and former PPM interim deputy president Umar Naseer and supporters, President Mohamed Waheed contesting as an independent candidate in coalition with the Dhivehi Rayyithunge Party (DRP) coalition, Abdulla Yameen representing the Progressive Party of Maldives (PPM) and Maldives Development Alliance (MDA) coalition, and Maldivian Democratic Party (MDP) candidate Mohamed Nasheed.

TVM also held a running mates’ debate on August 26.

In their introductory statements Gasim, Waheed and Yameen spoke of the “deteriorating standard of living, torn up social fabric and the lack of peace and unity”, pledging to rectify these issues if elected.

Waheed said that he had assumed power in very dangerous times – referring to 7 February 2012’s controversial transfer of power – “I will remain a faithful leader,” he pledged.

Nasheed focused on reiterating the policies covered in MDP’s “Costed and Budgeted” manifesto, which was released on August 24.

Education policies

The first question posed concerned what changes would be brought to the education system, with the host claiming that  many citizens felt that while the country followed the UK system, other South Asian countries had “far better systems with a higher pass percentages”. This was followed by asking how the candidates planned to increase the number of people interested to pursue a career in teaching.

All candidates spoke of making arrangements to allow teachers to work on their islands of origin, to provide accommodation, and of introducing or continuing vocational technical training and higher education opportunities.

The three candidates from the current government’s unity coalition also emphasised that building interest in the field depended on how much financial and other incentives can be offered, pledging to increase them.

Gasim added that he will introduce Islam, Dhivehi and Quran as subjects, although all three are already taught in primary and secondary schools. He also said that all students in and above Grade 8 will be given a laptop and an internet connection under his government.

Nasheed spoke of his previous three years in office, noting that he had introduced single sessions for 150 schools, built 243 classrooms, and worked towards increasing the the number of students who passed at least five subjects in GCE O’Level examinations. He said that if elected, his administration will continue these efforts while also training educators to conduct multi-grade teaching.

Economy

Candidates were asked to name three steps that could be taken immediately to strengthen the country’s weakened economic status.

Gasim spoke of decreasing the deficit and establishing a tax system.

Waheed highlighted the importance of broadening existing industries, claiming that he was currently holding discussions with foreign bodies to introduce new industries including financial and ICT services.

He also claimed that he had brought down the budget deficit from 14 percent to 5 percent.

Yameen spoke of increasing investor confidence and establishing special courts to look into cases of concern for the investors. He added that fishermen would be given “a monthly salary of MVR 10,000 (US$650) whether they catch fish or not.”

“In the first two years we will make the budget zero or completely get rid of deficit. In the remaining three years there will be a budget surplus,” Yameen stated.

Nasheed stated that his party’s aim is to decrease the difference between the rich and the poor, adding that this can be achieved through setting up a solid tax system.

“It is very important to decrease debt. Although Waheed just claimed otherwise, our economic situation has been deteriorating ever since he brought about the coup d’etat. Debt is at 82 percent of GDP, there is a huge deficit, inflation is extremely high,” Nasheed retorted, adding that an MDP government would work to bring all of this back into balance again.

While all spoke of how the difficulty of getting foreign currency in the country could be addressed through increasing foreign investment, Nasheed alleged that investors are reluctant to invest in the Maldives “after the coup d’etat and the harassment of investors following it, including sending our investors without any justification”.

Waheed responded by saying that “It is ridiculous to claim we are not getting foreign investments now. They are very eagerly coming, even more now. One example of a great investor that I brought in recently is BlackStone.”

The US private equity firm bought both Maldivian seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT), in February 2013 for an undisclosed sum.

Cost of living

All candidates pledged to establish sewerage and water systems on all islands.

Asked about policies focused on permanently reducing costs of electricity, Waheed and Nasheed spoke of increasing the use of renewable energy.

“While some people spend time acting in movies with the pretence of ‘protecting environment’ and managed to make no more than US$11 million available for renewable energy, in the past one and a half years I have raised US$200 million. I will make 30 islands run 100 percent on solar energy in the next two to three years,” Waheed claimed, referring to Nasheed’s documentary, the Island President, filmed while Waheed was serving as Vice President in Nasheed’s administration.

Gasim also spoke of introducing solar energy, promising to “create power stations and then connect them with a grid through submarine cables or something like this. In order to bring down electricity prices, we will maintain the same price countrywide for wheat flour, rice and sugar”.

Social protection

All candidates except Nasheed spoke of establishing centres to care for the elderly. Nasheed’s proposal is to continue offering a pension to the elderly.

“I plan to build rehabilitation centres for the elderly in the atolls, which can be managed with the cooperation of the community. The problem of elderly or of health can be dealt with through a sustainable insurance scheme,” Yameen said.

Gasim said: “As Muslims, we see parents taking care of children, treating them like [the apple of their] eye. And we should return this care when parents grow old. Our manifesto also says we will provide health care through insurance or something so I have no worries about that,” Gasim stated.

Waheed, meanwhile, pledged to increase the current monthly allowance to the elderly of MVR 2300 to MVR 3500, while Yameen said he will increase it to MVR 5000.

End notes

Waheed was mainly asked how much independence should be granted to the judiciary, to which he responded, “I don’t think that in the history of the Maldives, except in the past year and a half, there has been a single president who did not meddle with the judiciary. I have never done so, and I never will.”

“I have done as much work as anyone else here to bring democracy and I will protect it. But differing opinions can’t be an excuse to commit arson and murder. A lot of people even accused me of not wanting to hold elections, but look, we are having elections soon. I will remain a faithful leader,” Waheed stated.

Responding to a question on what assistance would be provided to pre-schools if he was elected, Yameen said he would ensure that pre-schools stop charging fees.

“An elected president must be someone who will spend all day, every day thinking about nothing but the country’s economy,” he ended.

Gasim, asked about corruption and gang violence, among other topics, focused mostly on reviewing existing laws. He said he is of the opinion that corruption is lower in the private sector, adding that salary increments for government posts could be a possible solution.

He also said that gang crimes can be dealt with by introducing legal frameworks into the school curriculum and offering rehabilitation to gang members, while better implementing legal action against gang crimes.

“I will do all possible to make Maldives into a country like Singapore or Dubai,” was Gasim’s concluding statement.

Questions posed to Nasheed were regardingthe high level of corruption, separation of powers, and concerns that political activity and its broad media coverage has decreased national unity.

“Some people feel that remaining behind an authoritative leader without asking questions is unity. But in the new constitution we adopted, there has to be differences in opinion. We must be able to conduct freedom of expression and freedom of assembly,” Nasheed began.

“Our aim was to expose and reveal all corruption cases that we discovered. This led to the illusion that corruption increased. However, after the coup, we have not seen the audit of the coup regime’s spending, nor has the corruption index been publicized. We will govern with transparency.”

He ended saying that Maldives needs to rid itself of its culture of coup d’etats, adding “we see the situation the people that called themselves “the unity government” is in now. The insults they hurl at each other are far harsher.”

Nasheed closed the show criticising his opponents for the lack of projects completed in the past one and a half years, while saying, “the people of Maldives are aware that the competitors are “baaghee” [traitor] who are part of a coup regime. The people want governments to change through votes. The people will no longer give a chance to those who flee at every sign of political turmoil.”

Watch the debate:

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Supreme Court rules on Elections Commission case

Additional reporting by Daniel Bosley

The Maldives Supreme Court has today (September 2) issued its ruling on the case filed last week by Ahmed Zaneen Adam, questioning the Elections Commission’s (EC) ability to oversee the coming presidential election.

The Supreme Court has issued an order requiring all relevant authorities to ensure a free and fair presidential election on Saturday, local media reported. The ruling did not specifically address all of Zaneen’s concerns, however.

Senior member of the Progressive Party of Maldives (PPM), Zaneen, filed a case requesting an audit into the EC’s IT system as well as a ruling confirming the legal mandate of security services to ensure a secure election.

Whilst neither of these issues are reported to have been directly ruled upon by the court today, it did address issues concerning the electoral register.

Sun Online reported that the order –  issued by five of the bench’s seven judges – pointed out the register contained names and addresses that did not always match and also the names of deceased citizens.

Lists containing the names of deceased people was used by the police earlier this year to investigate complaints of fraudulent party membership forms.  Today’s ruling is also said to have revealed the absence on the register of voters who had relocated to Male’ between 2009-10 in order be rehoused as part of the Hulhumale’ development project.

The court stressed that it was the EC’s duty to correct such errors without being prompted by individual complaints. Despite his position with the PPM, the party insisted that the case had been filed in Zaneen’s personal capacity.

Responding to the case last Friday, head of the EC’s legal team, former Attorney General Husnu Al Suood, contested that Zaneen’s case lacked any legal grounds and that he had filed requested preventive measures based on his personal concerns and doubt.

Zaneen’s case came after weeks of criticism from both the PPM and the Jumhoree Party towards the EC, particularly concerning the commission’s  use of Indian IT staff.  EC chief Fuwad Thowfeek told Minivan News earlier this month that he was confident that no grounds for legal action existed.

“We have so much confidence in our work – we have done really good, professional work – that we are giving it openly [to the public] to see and tell the EC if we have incorrectly listed any person in the voter registry or if any person is missing,” he said.

“If anybody is missing from the list, we will very clearly tell them why the person is missing,” he added.

Thowfeek stressed that the EC had consistently acted with openness, working closely with –  listening to the complaints – of all parties.

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Commonwealth to observe polling stations in nine atolls

A Commonwealth Observer Group has arrived in Maldives to witness the proceedings of the 2013 Presidential Elections, and assess the transparency and credibility of pre- and post- election activities.

The 17 male and female observers come from  Europe, North America, South Asia, Sub-Saharan Africa and the Caribbean, with experience in politics, elections execution, diplomacy, and civil society. They will be traveling to nine atolls later this week for the September 7 election.

Group Chair and former Prime Minister of Malta Dr Lawrence Gonzi addressed the press today regarding the Commonwealth Group’s activities and intentions.

“Our task is to consider all the factors impinging on the credibility of the electoral process as a whole, and to assess whether the election is conducted according to the standards for democratic elections to which Maldives has committed itself, with reference to its own election legislation as well as relevant regional, Commonwealth and other international commitments,” Dr Gonzi said in a statement.

Gonzi specified that the group would consider “whether conditions exist for free and competitive elections; whether the Elections Commission is independent and effective; the transparency of the process; whether candidates have been free to campaign; whether public media has been impartial; whether voters are free to express their will; and whether the results process is transparent.”

He added that the group would be neutral, impartial, objective and independent in its activities and assessment.

“We are here in our individual capacities as eminent and experienced Commonwealth citizens. The assessment by the Group will be its own and not that of any member government,” Gonzi said.

The group has had informational meetings with representatives of the presidential candidates as well as the Elections Commission and other key stakeholders, and will continue to meet with these figures and relevant civil society organisations and NGOs, Gonzi noted.

He deflected questions about initial observations or concerns, however he did acknowledge that “there are issues related to procedures and processes.”

Earlier this week, Transparency International released its oversight plan for the 2013 elections proceedings, and Indian election observers arrived in Maldives. The United Nations has also announced that it will be sending an observer group to the country.

The Commonwealth Group said that it will be working cooperatively with these groups to gather information from all atolls and voting sites, “but we do have our own methods and tasks as mandated by the [Commonwealth] Secretary General.”

Observation of the Maldives’ first multi-party elections in 2008 and 2009 was conducted by Transparency Maldives, the Commonwealth Observer Group, and the Delegation of the European Commission to Sri Lanka and the Maldives.

Domestic observation was supported by the Royal Embassy of the Netherlands, the Canadian International Development Agency, and Friedrich Ebert Stiftung (FES). Transparency International’s report on the election noted that restrictions on accessibility to polling stations according to type of observational body created confusion.

The Observer Group will write its report and release it “as soon as possible” after the September 7 election. The group will remain involved in proceedings in the event of a second round.

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