Category: Politics

Speaker Shahid to boycott JSC meetings should Fahmy participate

Speaker of Parliament Abdulla Shahid has warned President of the Judicial Services Commission (JSC) Adam Mohamed that he would boycott the commission’s meetings should Chair of Civil Service Commission (CSC) Mohamed Fahmy Hassan continue to be a part of it.

Shahid’s warning came shortly after Attorney General Aishath Bisham conceded during a meeting with Parliament’s Executive Oversight Committee (EOC) that any JSC meetings including Fahmy would have no legal effect.

In response to a question by the committee chair, opposition Maldivian Democratic Party (MDP) MP Ali Waheed, Bisham insisted that Mohamed Fahmy Hassan would not have to be reinstated as chair of the Civil Service Commission (CSC) after the Supreme Court ruled that his removal by parliament was unconstitutional.

Fahmy was dismissed from his CSC post in November 2012 in a no-confidence vote in parliament following an inquiry by the Independent Institutions Committee into allegations of sexual harassment against a CSC employee.

Both Fahmy and the victim were summoned to the committee after the complaint was lodged in the first week of June.

Fahmy was alleged to have called the female staff member over to him, taken her hand and asked her to stand in front of him so that others in the office could not see, and caressed her stomach saying “It won’t do for a beautiful single woman like you to get fat.”

MPs voted 38-32 to approve the committee’s recommendation to remove Fahmy from the post.

The Supreme Court however ruled 6-1 in March 2013 that Fahmy would receive two punishments for the same crime if he was convicted at court following his dismissal by parliament (double jeopardy).

The Supreme court contended that the Independent Institutions Committee violated due process and principles of criminal justice procedure in dealing with the accused.

In a letter sent on Monday, Speaker of Parliament – who is by virtue of his position, a member of JSC – stressed that even though the chair of CSC is also by virtue of his position a member of JSC,  Fahmy cannot sit in JSC because he had been deposed from his position by parliament.

He added the parliament had informed President Mohamed Waheed Hassan about its decision.

“In that letter, when the parliament came to the decision [to remove Fahmy], then-Attorney General Aishath Azima Shukoor and current Attorney General Aishath Bisham stated that Mohamed Fahmy Hassan could not sit in JSC as the President of CSC as that position had become vacant with the parliament’s decision.”

“The Attorney General Aishath Bisham had also said that JSC meetings attended by Fahmy cannot be deemed legal, during the 46th committee meeting of parliament’s executive oversight committee on June 4, 2013,” Shahid wrote.

Therefore, Shahid claimed that he would not take part in any meetings attended by Fahmy.

Speaking to Minivan News on Monday JSC Media Official Hassan Zaheen confirmed receipt of the letter from Speaker Shahid but said he did not see the need for the commission discuss the matter as it was “not part of the commission’s mandate as per the law”.

Don’t put me in a trap – President Waheed

President Mohamed Waheed Hassan speaking on the issue said it was “very complicating” for him to make a decision about Fahmy.

Fahmy had previously claimed in the media that he would only take a decision on whether to continue being part of CSC  after President Waheed made a decision on the issue, claiming that it was the President who had given him the letter of appointment.

Instead of addressing the issue directly, Waheed, who appeared unwilling to address the matter during a press conference on Monday, told the media that Parliament and the Supreme Court were in dispute over the matter.

At such a complicated time, Waheed said, “Even individuals must help in resolving conflicts peacefully”.

“Always doing something that puts the President or the government in a trap is not a very good thing. I think the best thing to do at this time is let Fahmy take the initiative and decide on the matter. That is my position,” he said.

The parliament has meantime opened the opportunity for interested candidates to apply for the “vacant” position of CSC President.

Waheed however maintained that, prior to any appointments to the commission, the parliament should discuss the matter with the Supreme Court to avoid any further conflict.

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President Waheed ignored advice on GMR termination, PPM alleges

The Progressive Party of Maldives (PPM) has accused President Dr Mohamed Waheed of ignoring the advice of his coalition government by abruptly terminating the US$511 million airport development contract with Indian infrastructure group GMR last year.

PPM MP Ahmed Nihan said that while the PPM believed terminating the GMR contract had been the right decision, President Waheed had nonetheless personally taken an executive decision to cancel the agreement without listening to the party’s advice in seeking a compromise with the company and the Indian government.

However, the PPM’s coalition partners today accused the party of making “contradictory statements” regarding the decision to terminate GMR’s concession agreement, accusing its senior leadership of trying to terminate the deal at the time without discussion or following due process.

The allegations against President Waheed surfaced following the visit to India last week by former President and PPM founder, Maumoon Abdul Gayoom, who pledged his party would seek to restore relations with India damaged by the government’s summary eviction of the GMR.

While Gayoom ultimately blamed former President Mohamed Nasheed for not obtaining parliamentary approval and “consulting all political parties” before signing the deal with the GMR-Malaysian Airports consortium in 2010, he was also critical of the present administration’s handling of the termination.

“Had Nasheed consulted all political parties, the public would not have formed the impression that corruption had taken place. Then we told the next President Mr Waheed that he should hold discussions with the GMR Group and the Indian government to arrive at an acceptable solution, after which the government was free to act on its own,” he said. “Unfortunately, this was not done and suddenly there was this unhappy ending,” Gayoom was reported as saying in the Hindu.

“Better” handling

MP Nihan said following a press conference held by the PPM in Male’ today that the party continued to believe the decision to terminate GMR’s concession agreement was in the best interest of the country.

However, amidst concerns about the subsequent negative impacts on bilateral relations from cancelling the deal, he stressed that the president could have handled the matter “better” in order to protect the relationship between the Maldives and India.

“We believe that the room was there to correct any negative relations with India,” Nihan claimed.

“This could have been much easier and perhaps a new approach could have been found to cancel the GMR contract,” he added.

Nihan said that as well as the GMR contract, President Waheed had on a number of occasions sought to take advantage of his position by making executive decisions against the wishes of his government coalition, all while trying to shift blame away from himself.

“We have seen [President Waheed] try to spin all good developments as being the result of his work, while anything that has gone wrong [in the government] is the PPM’s fault,” he said.

Following a PPM press conference today, Nihan added that the media has been shown two different letters sent from the party’s council to the government prior to the termination of the agreement last November that called to find a solution through dialogue.

Nihan also reiterated Gayoom’s comments that the manner in which the contract was not a “happy ending” in terms of its impact on bilateral relations with India.

“We are of the view that the agreement was only to be cancelled through due process of the law,” he said.

Nihan claimed that the contract dispute had also further exacerbated concerns held by the Indian government about treatment of Indian nationals in the country. He said this had in turn created difficulties for Maldivians in obtaining visas to travel to India for medical treatment.

Considering former President Gayoom’s 30 years spent in office, Nihan praised his efforts to try and strengthen bilateral relations with India.

The government’s sudden eviction of the Indian investor did not appear on a list of 11 grievances handed to all senior Maldivian reporters by the Indian High Commission in January.  The list instead included concerns such as discrimination against Indian expatriates and the confiscation of passports by Maldivian employers.

Tension

The argument over responsibility for the GMR contract termination has comes amidst reports of increased tension within the present coalition government, with PPM presidential candidate Abdullah Yameen last month criticising President Waheed over his alleged use of state funds for campaigning.

The PPM has nonetheless pledged to continue supporting President Waheed’s government up until September’s election, despite concerns about the decision to dismiss former Home Minister Dr Mohamed Jameel Ahmed after he decided to stand as MP Yameen’s running mate.

DRP response

The PPM’s recent criticism of President Waheed’s handling of the GMR dispute was today slammed as being “contradictory” by government coalition partner the Dhivehi Rayyithunge Party (DRP).

The party added that its members had previously come under heavy criticism from the PPM for advocating at the time that any termination of the GMR airport deal should be made via the due process of the law.

DRP Parliamentary Group Leader Dr Abdulla Mausoom told Minivan News that it was in fact senior figures in the PPM that were  among the most vocal supporters for terminating the GMR agreement.

“It is ironic that we are hearing these statements from the PPM, whose leader has been witnessed supporting rallies demanding the cancellation of the [GMR] agreement,” he said.

Dr Mausoom alleged that he had also been informed from “a reliable political source” present during government consultations last year over whether to terminate the GMR agreement that it had been PPM presidential candidate Yameen who personally advocated cancelling the deal without a need for discussion.

“Either there is no harmony within the [PPM], or this is all political talk to try and gain an advantage. Either was it is very irresponsible,” he said of the PPM’s recent comments about terminating the GMR concession agreement.

Mausoom alleged that contrary to the PPM’s claims, it had been the DRP which had advocated finding a legal means of terminating the GMR agreement at at time when fellow government-aligned parties had taken to the streets holding rallies demanding the airport be “reclaimed”.

Despite appeals by GMR that it was acting as a caretaker for running and improving Ibrahim Nasir International Airport (INIA), which would remain Maldivian-owned, efforts to cancel the concession agreement – which was vetted by the World Bank’s International Finance Corporation (IFC) – intensified up to November.

On November 13, just ahead of the contract termination, a seaborne armada of about 15 dhonis carrying flags and banners circled the airport seeking to increase pressure on the government to “reclaim” the site from GMR.

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Cancelled agreement to develop IGMH cost US$150,000, reveals audit

The termination of an agreement between the Ministry of Health and Family with Indian company Apollo Hospitals Enterprises to manage and develop the Indira Gandhi Memorial Hospital (IGMH) cost the government US$150,000, the Ministry of Finance and Treasury’s audit report for 2010 has revealed.

The audit report (Dhivehi) made public on Thursday (June 6) flagged an advance payment of US$ 150,000 from the finance ministry’s special budget to Apollo Hospitals as 20 percent of a transition management fee under the “management and development agreement” (MDA) signed on January 23, 2010.

Auditor General Niyaz Ibrahim contended that the payment was made by the finance ministry in violation of budgetary rules and accounting principles, adding that expenses of another office or institution should not be included in the finance ministry’s financial statement.

Moreover, the privatisation of the government hospital was not overseen by the privatisation committee as stipulated in public finance regulations amended in late 2009, the audit report noted.

The secretariat of the privatisation committee, which functioned under the Ministry of Economic Development, informed auditors that interested parties were invited to submit detailed proposals for developing IGMH in a public-private partnership deal in January 2009.

However, none of the detailed bids met the criteria set by the health ministry and the privatisation project was scrapped.

Following a visit by then-President Mohamed Nasheed to India, Health Minister Dr Aminath Jameel told the press on January 25, 2010 that Apollo was awarded the project because none of the bidders fit the criteria.

Apollo was chosen following consultation with the Indian government and based on legal advice, she added.

However, in August 2010, the Male’ Health Services Corporation – which operated IGMH – advised the health ministry against proceeding with the privatisation deal as Apollo’s proposal was not financially feasible for the government-owned health corporation.

On September 30, 2010, the health ministry informed Apollo that the government has decided to scrap the project since the necessary financial capital had not been arranged.

The audit report also noted that a transition management agreement and an operation management agreement that was required under the MDA was not signed in the stipulated 180-day period.

“Therefore, the US$ 150,000 paid to Apollo Hospitals under the MoU [Memorandum of Understanding] signed with IGMH in 2010 was a waste of funds with no benefit to the state,” the audit report stated.

It added that the loss was incurred as a result of “inadequate planning” before hastily signing the MoU without obtaining legal advice, considering the financial burden on the state and determining a source of capital.

The Auditor General recommended asking the Anti-Corruption Commission (ACC) to determine whether any state official abused their authority in awarding the project to Apollo Hospitals without a bidding process.

Other cases

Among eight other cases highlighted in the report where expenses were made ostensibly in violation of public finance law, the audit revealed that in 2007 the government incurred a loss of MVR 30.8 million (US$1.9 million) after paying for 150,000 copies of the Quran Dhivehi translation with numerous errors.

The audit report noted that the project was awarded to Novelty Printers without a bidding process through the tender evaluation board.

Moreover, an advance payment of 85 percent of the contracted amount was made to Novelty Printers in violation of existing regulations, the audit discovered.

In June 2010, the Fiqh Academy decided to destroy the copies printed in 2007 as the errors could not be easily corrected. The decision was made following a year-long review by scholars of the academy.

The audit discovered that the errors in the final version were not present in the proofed copy approved by the President’s Office in 2007 – during the final years of former President Maumoon Abdul Gayoom’s reign – suggesting that Novelty was responsible for the errors.

Novelty Printers wrote to the President’s Office in November 2008 apologising for the printing errors, which they explained occurred due to a problem in the computer file used to make the printing plates.

The audit also discovered that Novelty was paid the remaining 15 percent of the contracted amount in May 2010 after a state minister at the finance ministry approved the payment.

The state minister sent a memo to the budget section falsely claiming that the government had received all 150,000 copies, the audit report noted.

The Auditor General recommended that the ACC should investigate the culpable official for alleged corruption and that the state should either recover the MVR 30 million paid to Novelty or demand 150,000 copies without errors.

The audit report also noted that the government was ordered by the Civil Court in January 2010 to pay US$119,616 as compensation for a former deputy general manager of the Maldives National Shipping Line (MNSL) for unlawful termination in 2002.

The Auditor General recommended legal action against the government officials responsible for incurring the financial loss by unlawfully sacking the MNSL deputy manager in 2002.

The audit further revealed that in 2009 and 2010 the finance ministry paid US$ 4 million to two American companies under a “settlement agreement” while arbitration proceedings were ongoing in Singapore.

In 2006, a consortium formed by the International Medical Group and Sirius International Insurance Corporation was awarded a contract to provide health insurance for government employees.

The companies sought arbitration in Singapore following a contract dispute with the now-defunct Ministry of Higher Education, Employment and Social Security. However, the US$4 million settlement was reached out of arbitration in May 2009 by the new government that took office in November 2008.

The settlement was paid out of the finance ministry’s special budget in 2009 and 2010.

The Auditor General recommended “a thorough investigation” to recover the financial loss incurred by the government as a result of the contract.

The audit report also contended that the finance ministry had not undertaken “adequate efforts” to recover MVR 51.4 million (US$3.3 million) owed to the government as loan repayments as of December 2010.

The loans worth a total of MVR 69.4 million (US$4.5 million) were provided to select individuals by the President’s Office from 1992 to 2006 under special privileges afforded to then-President Gayoom.

The loans were given with a six percent interest rate to be paid back within two to five years, the report found, noting that the repayment period would have lapsed in 2011 for the most recent loans.

However, in a letter sent to the finance ministry on November 6, 2008 – five days before Gayoom left office – the repayment period was extended to five years.

As the loans were given to senior officials of the outgoing government, the audit report contended that the decision to extend the repayment period amounted to corruption.

The Auditor General therefore asked for an investigation by the ACC into the extension and recommended that the finance ministry file court cases to recover the unpaid amounts.

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President Waheed pledges housing policy as part of election campaign

President Mohamed Waheed Hassan has pledged to establish a housing policy for the people of Male’ as part of his bid to secure election in the upcoming presidential elections.

President Waheed assumed power after the sudden resignation of his predecessor, former President Mohamed Nasheed on February 7, 2012, following a mutiny by police and the Maldives National Defense Force (MNDF).

Speaking during a rally held by his own party Gaumee Iththihaadh Party (GIP) on Saturday night, President Waheed claimed that it was his hope to provide separate housing for every Maldivian.

A website was also launched in collaboration with the GIP and a local NGO, Magey Male’ Foundation, to brief the public about congestion in Male’.

Social issues

President Waheed during the rally claimed that one of the major reasons contributing to increased criminal activities, drug abuse and divorce rates was the lack of housing available within the country to build a family.

Waheed noted that there were approximately 80,000 residents in Male’ including those who had migrated to the capital for various purposes, while population of the city stood at 150,000 – half of whom do not have their own housing.

“This is not something we can delay. Therefore, the government has planned to speed up the land reclamation from Hulhumale and I would like to inform on this occasion that the government has begun evaluating bids proposed by parties who expressed interests in carrying out the project. The result would mean Hulhumale’ will in the future be twice the size it is today,” President Waheed said.

Waheed also said that the capital Male’ belonged to all the people of the country and therefore services provided in the capital should have the capacity to provide these services all people.

He also said that projects seeking to provide fundamental needs of the people should not be fashioned around “the problems faced yesterday”, but rather address the issues that would be faced in the future.

“As these are the circumstances we are facing, I intend to form a committee consisting of technocrats and experts in the field to see how the problems faced by the capital Male’ can be addressed and resolved. At the same time, within our broad coalition, we will work on policies that would better the current situation of Male’,” he said.

Situation on the islands

Waheed highlighted that people from islands are still unable to get basic services and conceded that his government was unable to take adequate measures to develop these islands.

“[The lack of basic services] was significantly noticed during the 2004 tsunami crisis. The whole world has witnessed the difficulties endured by the people,” he said.

Furthermore, Waheed said that the ratification of the 2008 constitution meant that people who were in charge of the country were forced to address the issues faced by the people instead of consolidating power. It also forced the speeding up of infrastructure developments such as harbours, airports and sewerage systems, President Waheed said.

The solution to the problems, the President said, was to developing well populated islands throughout the country.

“Our hope is to build more housing facilities on such islands and provide basic services such as electricity, water and sewerage systems and let the population in those islands grow further.  I hope that land reclamation on such islands will begin soon,” he said.

“AT this critical time, political parties uniting with one another for the sake of the country is similar to that of two neighbours teaming up to address big issues. Therefore, unity and cooperation do not have a set time or a set venue to take place and neither do they belong to a separate system,” he added.

Waheed during his speech also claimed that he was a person who considered advice, rather than taking matters into his own hands, and said he would therefore only make important decisions after discussing them with necessary stakeholders.

Party reinforcements

During the rally, two members of parliament, former Progressive Party of Maldives (PPM) MP Ahmed Shareef and Independent MP Ahmed ‘Kurendhoo’ Moosa, officially announced they would be joining GIP.

Male City Council member and former Male Mayor ‘Sarangu’ Adam Manik also announced his defection from the MDP to GIP. Along with Manik, former PPM member and former MP Jaufar ‘Jausa Jaufar’ Easa Adam joined the party.

The GIP spokesperson’s phone was switched off at time of press.

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Eight new seats to be added to parliament for next general election: Elections Commission

Elections Commission (EC) President Fuad Thaufeeg has said parliament will be increased by an additional eight constituencies for the next election.

As a result, the country’s 18th parliament elected in 2014 will have 85 parliament members.

The Maldives currently has a unicameral parliament consisting of 77 members who were elected in May 2009, replacing the previous 50 member parliament following the ratification of the new constitution in August 2008.

In an interview given to local media outlet Sun Online, Thaufeeg said that based on population statisticss received by the commission, the capital Male’ and seven other atolls will have new seats in parliament.

He also said the commission is currently working on drawing up the new constituencies and completing necessary documents which will then be submitted to parliament for endorsement.

The new parliament composition will include an additional seat for Haa Dhaal Atoll, Noonu Atoll, Alif Dhaal atoll, Thaa Atoll, Gaaf Dhaal Atoll and Addu City, while Male’ City will have two new seats.

Thaufeeg stated that the current number of seats decided by the elections will not be changed, and the figure until the election will remain as 85.

The elections chief also said that the constituencies are currently complied based on geographic location and population density.

However, even though the total number of seats to be elected will remain at 85, Thaufeeg said that there may be alterations brought in as to how the commission would draw the constituencies.

“The commission will consult with leaders of political parties and people of the atolls. The decision will be final after the parliament endorses the changes,” Thaufeeg said.

The Elections Commission is meanwhile facilitating the presidential elections scheduled to take place on September 7.

The commission has previously said that approximately 240,302 will be eligible to cast their vote in the presidential elections – 31,008 more than the number of eligible voters in the 2008 presidential elections (209,294).

The commission will formally declare the start of campaign season in July. However all major political parties including the opposition Maldivian Democratic Party (MDP), and government-aligned parties such as the Progressive Party of Maldives (PPM), Jumhoree Party (JP), Dhivehi Rayyithunge Party (DRP) and current President Mohamed Waheed Hassan’s Gaumee Ithiaad Party (GIP) have already begun their presidential campaigns.

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No intention to transfer assets to MIAL: MACL to Axis Bank

The Maldives Airports Company Limited (MACL) and its lawyers have denied any intention of dissipating the state-owned company’s assets by transferring them to a newly-created, state-owned entity called Male’ International Airport Limited (MIAL).

MACL and the government of the Maldives are currently party to arbitration proceedings in Singapore after one of the lenders to the terminated GMR-Malaysia Airports (GMR-MAHB) development – Mumbai-based Axis Bank – called in US$160 million worth of loans which had been guaranteed by the Ministry of Finance.

A copy of the agreement from November 24, 2010, in which the Ministry of Finance guarantees the loans to GMR-MAHB, is signed and stamped by both then-MACL Chairman Ibrahim Saleem and Finance Minister Ali Hashim on behalf of the government.

Eviction and arbitration

In December 2012, the GMR-MAHB consortium, which had signed a 25 year concession agreement with the former government to manage and upgrade Male’s airport, was given a seven day eviction notice by the new government after it declared the concession agreement void ab initio, or ‘invalid from the outset’.

That decision is currently subject to arbitration proceedings in Singapore, with GMR-MAHB’s compensation claim expected to reach upward of US$1 billion. Axis Bank is pursuing the US$160 million in separate proceedings.

President Waheed’s government on March 14 meanwhile declared in a one-line statement that it was establishing MIAL as a new 100 percent state-owned company, and several weeks later announced the appointment of a board of directors including tourism tycoon and Chairman of Universal Enterprises, Mohamed Umar Manik, and Island Aviation Chairman Bandhu Ibrahim Saleem as managing director.

Finance Minister Abdulla Jihad informed local media on May 21 that MIAL would take over the operation of the airport under a management contract by July.

The apparent move to transfer MACL’s management functions to MACL led to a flurry of letters from Axis Bank to both MACL and the government, with the bank expressing concern that “if MACL ceases to manage and operate Male’ airport, and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell.”

MACL’s denial

In a letter responding to Axis Bank’s CEO Bimal Bhattacharyya, dated April 24, 2013, and obtained by Minivan News, MACL’s Managing Director Ibrahim Mahfooz claims “your insinuation that MACL is attempting to dissipate assets to avoid and satisfaction of any judgement is insulting and without any basis.”

“For the record, we can confirm that MACL has no plans to transfer any of its assets to another company,” Mahfooz writes.

He accuses Axis Bank of making a case on “hearsay and speculation”, and asks whether its threat of legal action was “part of a concerted plan with any other parties”.

“You have tried to assert that your claim of US$163,596,347.78 remains unsatisfied. We had in our previous correspondence to you made it clear that you do not have a valid claim against MACL,” Mahfooz states.

“At best your alleged claim (at its highest) is purely a monetary claim against MACL and GOM. Please set out clearly the basis in which you think your claim will not be satisfied by MACL and GOM in the event Axis Bank is not successful,” he writes.

That letter triggered a further flurry of correspondence between Axis Bank’s legal representation Norton Rose and MACL’s Singapore-based firm Advocatus.

The latter firm, acting on behalf on MACL in December 2012, successfully overturned an injunction in the Singapore Supreme Court blocking MACL from taking over the airport, on the grounds that the arbitration court had no jurisdiction to prevent the Maldives as a sovereign state from expropriating the airport.

In the Singapore Supreme Court’s full verdict, a copy of which Minivan News has obtained, Financial Controller for the Ministry of Finance, Mohamed Ahmed, “affirmed in an affidavit that the Maldives government would honour any valid and legitimate claim against it. He also stressed that the Maldives government had never defaulted on any of its payments.”

Lawyer representing MACL, Christopher Anand Daniel, “also accepted that if the arbitration tribunal found that the Appellants were wrong in their asserted case that the Concession Agreement was void ab initio and/or had been frustrated, but the Appellants had by then already gone ahead with the taking over of the airport, they would at least be liable to compensate the respondent for having expropriated the airport” (emphasis retained).

Legal barrage

Stern letters exchanged throughout late April and most of May between the two sets of lawyers suggest brewing disagreement over whether MIAL’s assumption of management responsibilities for the airport can be construed as a transfer of assets and an attempt to dissipate its assets in preparation for a costly verdict.

“Almost all of MACL’s income comes from MACL’s management and/or operation of Male’ Airport,” notes Axis Bank.

“The stated purpose for the incorporation of MIAL is for MIAL to manage and operate Male Airport. This is a role presently performed by MACL. The natural consequence of the above facts is that if MACL ceases to manage and operate Male’ Airport and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell company,” Axis Bank’s lawyers noted, adding that the government had made no effort to deny this despite repeated invitations.

In response Advocatus, in a letter dated May 10 and obtained by Minivan News, declared “Your client [Axis Bank] has no evidence that MACL is dissipating assets to begin with. It is obvious that your client is attempting to see if it can create a case by correspondence when it has none.”

Following Finance Minister Abdulla Jihad’s pledge that the transfer of assets to MIAL would be completed by July 1, widely reported in local media, Norton Rose wrote another letter noting “[the Minister’s] statements are in direct contradiction to MACL’s position in its letter of April 24 stating that ‘For the record, we can confirm that MACL has no plans to transfer any of its assets to another company.’”

“These new developments, stated in the various news reports, lend credence to Axis Bank’s legitimate concerns that MACL is in fact attempting to dissipate its assets in favour of MIAL or any other third party and, consequently, there will not be sufficient assets to satisfy any arbitral award that may be rendered in favour of Axis Bank against MACL in the arbitration,” the lawyers wrote.

Advocatus responded on May 29, again accusing Axis Bank off “desperately trying to create a case where none exists.”

“The Minister, who had given the interview in Dhivehi, had been misquoted in the English version of news reports you mentioned,” MACL’s lawyers stated.

“When he gave the interview, the Minister had in fact said that ‘asset management is going to be officially handed over to MIAL’,” Advocatus contended.

Assets, management and the draft agreement

Meanwhile, a working draft of an ‘Operations and Management’ agreement between MACL and MIAL, dated May 21 and obtained by Minivan News, notes that MIAL “is a company established with the primary objectives of operating, maintaining and managing the airport.”

The agreement states that while the Finance Ministry has granted MACL the lease of the site and rights to operate and manage the airport, “MACL, in the interest of the better management of the airport, and/or overall public interest, is desirous of granting to MIAL the functions of operating, maintaining and managing the airport.”

The agreement includes provision for the transfer of employees from MACL to the new company, and the requirement that it obtain an aerodrome certificate from the Ministry of Civil Aviation – the core authority issued by the state for a company to operate an airport.

It also noted that “no proceedings against MIAL are pending or threatened, and no fact or circumstance exists which may give rise to such proceedings that would adversely affect the performance of its obligations under this agreement.”

MIAL would be paid management fees by MACL, although the extent of these are not included in the particular draft obtained by Minivan News. The agreement does however set out how “MIAL shall, on behalf of MACL, deposit all monies received from the operation of the airport into one or more bank accounts in the name of MACL.”

Board issues

Despite the Finance Minister’s comments on May 21, MIAL’s appointed CEO Bandhu Saleem has told Minivan News that “until the arbitration is complete, I think it will be very difficult to start a new company.”

Minivan News is seeking to establish the current status of the new company. However further obstacles appeared this week in the form of the government’s Attorney General Aishath Bisham, who informed local media that President Waheed lacked the authority to appoint the boards of government-owned companies following the ratification of January’s Privatisation Act.

Instead, she said, the privatisation board created under that act operated as “a separate legal entity, and has the sole authority to appoint board members.”

Besides MIAL, President Waheed also in February appointed the board of the Maldives Ports Authority Limited (MPL).

“The Privatisation Board should investigate those cases,” suggested the attorney general.

Former President Maumoon Abdul Gayoom, whose Progressive Party of the Maldives (PPM) was among the most strident opponents to GMR-MAHB’s development of the airport, meanwhile appeared to have adopted a conciliatory tone during a visit to India last week to smooth troubled relations.

“[The cancellation] was a very populist move at the time as the public had a perception that the contract was bad for the country. The way it was handled was not good,” Gayoom was reported as telling Indian newspaper The Hindu.

“I am sad that this has somehow affected our bilateral relations. We want to overcome that and restore our relationship with India to its former level,” Gayoom told the paper.

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Raajje TV alleges Maldives Broadcasting Commission warning “biased”

Raajje TV claims a warning issued to them late last week by the Maldives Broadcasting Commission was biased, given their lack of transparent procedures for determining code of conduct violations.

“The Maldives Broadcasting Commission (MBC) sent a letter to Raajje TV last Thursday (June 6) saying the news aired on 23 February 2013 violated their code of conduct,” Deputy CEO of Raajje TV Yamin Rasheed told Minivan News today (June 8).

“Raajje TV strongly believes the commission’s decision is biased and will appeal to Maldives Media Council (MMC), the highest authority,” Rasheed stated.

MBC investigated a complaint that Raajje TV “broadcast false information” when its news-ticker displayed information that the Progressive Party of Maldives (PPM) had called on its members to slaughter Maldivian Democratic Party (MDP) members, Sun Online reported.

The commission’s investigation concluded that Raajje TV violated the code of practice by “showing images, sounds or texts of content that might damage a person’s dignity or is demeaning in nature”, as stated in articles 3(a), 5(a) and (b), according to local media.

“The ‘caution’ [letter MBC issued] is a warning. If that repeats they will take actions within broadcasting law, which might include temporary suspension of Raajje TV’s broadcast licence,” Rasheed explained.

He believes that MBC’s investigative decision making process is bias, because there is no transparent procedure for determining [code of] conduct violations.

“It is not clear how they concluded these statements, there is no clear procedure, it is not publicly announced,” said Rasheed. “I don’t know how they came to that conclusion.”

“We trust our journalists to report what they hear and see as true, they report the facts,” he stated.

Regarding the February 23 broadcast in question, Rasheed explained that “PPM officials called the MDP a terrorist group at that rally, we have the recorded footage.”

“Yet we don’t know what the opposition submitted against us, we don’t know specifically what the MBC is concerned about [regarding the code of conduct],” said Rasheed.

Rasheed claimed that MBC had “done nothing” in regard to code of conduct violations committed by Television Maldives (TVM), Villa TV (VTV), DhiTV and their sister network DhiFM, which “shows their bias”.

“DhiTV and VTV are constantly harassing politicians, for example saying Nasheed is anti-religious and many other things against him. DhiFM has shown pornographic footage, while the state broadcaster TVM has shown anti-social footage related to Maldivian culture of couples kissing, which is illegal,” alleged Rasheed.

VTV is owed by resort tycoon and Judicial Services Commission (JSC) member, Jumhoree Party (JP) Leader and MP Gasim Ibrahim.

DhiTV and DhiFM are predominantly owned by Champa Mohamed Moosa, a prominent businessman and resort owner in the Maldives.

In March 2013, MBC called for the Maldives Media Company, which owns DhiFM Plus, to air a statement of apology without any reservations from the station for violating the broadcasting code of conduct after allegedly airing pornographic content during a late night news show.

In July 2011, MBC reprimanded DhiFM for repeated use of “indecent language” during programmes aired by the radio station and simultaneously broadcast live by sister network DhiTV in its “visual radio” segment.

The Maldives Broadcasting Commission, as well as its Vice President Mohamed Shahyb, were not responding to calls at time of press.

Maldives Media Council support

Raajje TV plans to appeal the MBC warning with the MMC on Sunday or Monday, according to Rasheed.

“The only thing we see from MBC is the intention to penalise media,” claimed Rasheed.

Conversely, Rasheed praised the MMC for their positive interactions with and support of free press in the Maldives.

“The media council is our parental body, was elected from within the media groups, and is more independent than the commission,” said Rasheed.

“They have a responsibility to protect our rights and regulations and are doing things for media freedom as well as giving us many training opportunities,” he continued.

“They are more all-encompassing in dealing with media because they deal with both print and broadcast journalism,” he added.

Rasheed hopes to receive MMC support in regard to the MBC warning issued, since they previously filed a case with the prosecutor general against the President’s Office for intentionally not cooperating with Raajje TV.

In April, the Civil Court ruled in favour of Raajje TV in its lawsuit against the President’s Office for barring the opposition-aligned television station from President Dr Mohamed Waheed’s press conferences and functions.

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PPM will address Maldives’ strained relationship with India: Gayoom

Former President Maumoon Abdul Gayoom has pledged during a visit to India that the Progressive Party of Maldives (PPM) will repair strained relations between the two countries should it come to power in September, local media has reported.

The three day visit, which concluded Thursday (June 6), saw the former president meet with dignitaries including Prime Minister Manmohan Singh to discuss bilateral relations and the impact of the Maldives government’s decision to last year cancel a US$511 million airport deal with India-based infrastructure giant GMR.

In interviews with Indian media, Gayoom expressed sadness that the Maldives’ relationship with India had been impacted by President Dr Mohamed Waheed’s administration deciding to evict GMR from the country with seven days notice.

Gayoom blamed Nasheed for not obtaining parliamentary approval and “consulting all political parties” before signing the deal with the GMR-Malaysian Airports consortium.

“This was a mistake. Had he consulted all political parties, the public would not have formed the impression that corruption had taken place. Then we told the next President Mr Waheed that he should hold discussions with the GMR Group and the Indian government to arrive at an acceptable solution, after which the government was free to act on its own. Unfortunately, this was not done and suddenly there was this unhappy ending,” Gayoom was reported as saying in the Hindu.

Waheed’s government late last year declared the contract between GMR and the Nasheed government, which was vetted by the World Bank’s International Finance Corporation (IFC), as ‘void ad initio’, or invalid from the outset. It is currently disputing its obligation to compensate the company in arbitration proceedings, arguing that the termination clause could not be applied to a contract it had deemed invalid.

Gayoom told Indian media that former President Mohamed Nasheed – whose government was controversially replaced in February last year – had to take the majority of blame for the GMR contract dispute, despite not being in office at the time of its cancellation.

“The GMR experience was not a very good one for us. It began badly with [Nasheed] not informing parliament,” Gayoom was reported as saying in the Indian Express.

“By law, he should have had it passed by parliament. Some may even say it had an illegal beginning. [The cancellation] was a very populist move at the time as the public had a perception that the contract was bad for the country. The way it was handled was not good. I am sad that this has somehow affected our bilateral relations. We want to overcome that and restore our relationship with India to its former level,” Gayoom told the paper.

The government’s sudden eviction of the Indian investor did not however appear on a list of 11 grievances handed to all senior Maldivian reporters by the Indian High Commission in January, which instead included concerns such as discrimination against Indian expatriates and the confiscation of passports by Maldivian employers.

The list’s release was followed by the Indian High Commission issuing a statement in early February slamming local media in the Maldives for “misrepresentation and twisting of issues”.

Gayoom nonetheless told the Hindustan Times publication this week that he would endeavor to maintain strong bilateral relations with India, claiming that people who were “anti-GMR” were not “anti-India”.

The PPM is presently part of the coalition government backing President Waheed, whom Gayoom said had been requested to find an “acceptable solution” for both GMR and the Indian government that addressed concerns about the airport deal.

Fierce criticism

Among the most fierce critics of the GMR airport deal before its cancellation last year were the now government-aligned Dhivehi Qaumee Party (DQP ), led by President Waheed’s Special Advisor Dr Hassan Saeed.

Saeed in November last year appealed to Prime Minister Singh to terminate the GMR deal, writing that “GMR and India ‘bashing’ is becoming popular politics”.

While in opposition in December 2011, the DQP also released a 24 page pamphlet alleging that allowing GMR to develop Ibrahim Nasir International Airport (INIA) was “paving the way for the enslavement of Maldivians in our beloved land”, and warning that “Indian people are especially devious”.

Former Home Minister Dr Mohamed Jameel Ahmed, the DQP’s Deputy Leader at the time of the pamphlet’s publication, was recently unveiled as the running mate of PPM Presidential candidate Abdulla Yameen – Gayoom’s half brother.

SOFA a concern: Gayoom

Gayoom – described in the Hindu as a “sprightly 76 year-old” – also expressed concern about the Status of Forces (SOFA) agreement being negotiated between Waheed’s government and the United States.

“I am not happy. I didn’t want that to happen,” he said, warning that such a move risked upsetting the balance of power in the Indian Ocean.

A source within the PPM said former President Gayoom, during his 30 years as head of state had forged strong relations with various regional powers such as India and Sri Lanka.

The source said that while the handling of the GMR contract remained a controversial issue, the recent strain in the relationship between India and the Maldives was the result of a number of factors, including “certain difficulties” facing expatriate workers from India living in the country.

“We have a large number of professional expatriates from India working here in health, education and accountancy. The [Indian] embassy here in Male’ has aired some of the issues with us,” the party source claimed, adding that the Maldives also had grievances over obtaining visas to travel to India that needed to be resolved.

The party official claimed that Indian authorities had raised these issues not only with the PPM, but all other stakeholders both in government and the country’s political opposition, presently represented by the Maldivian Democratic Party (MDP).

Highs and lows

Despite admitting that every country has high and lows in their bilateral relations with neighbours, Indian High Commissioner to the Maldives Rajeev Shahare has previously emphasised what he called the country’s “unshakable” long-standing relationship with the Maldives.

“During my tenure, I will endeavour to further strengthen the relationship between India and the Maldives, which is already very strong with an unshakable foundation,” he said on April 10, shortly after his appointment.

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“They do not care”: Maldives outsources climate change pavilion at international art show

The Tourism Ministry outsourced the Maldives’ first national pavilion at the Venice Biennale art show to an Arab-European collective of curators, some of whom have alleged the Maldives government does not care about climate change or the arts.

The overarching theme of the Maldives’ pavilion, entitled “Portable Nation: Disappearance as a Work in Progress – Approaches to Ecological Romanticism”, is about how the survival of the nation, Maldivian people and cultural heritage are threatened by catastrophic climate change impacts, such as rising sea levels.

The pavilion is meant to raise awareness and be a call to action against climate change as well as explore questions of environmental impact, climate change and migration in the Maldives, as part of the art show taking place in Venice, Italy.

The art exhibitions also highlights Maldivians’ current efforts to archive and collect as much of their cultural heritage as possible, prior to the entire nation’s disappearance, due to rising sea levels, and the subsequent forced displacement of 350,000 people.

The Maldives pavilion was “almost abandoned” following the controversial transfer of power February 7, 2012, given that it was originally an initiative of former President Mohamed Nasheed and envisioned as a way to draw attention to climate change and the plight faced by the Maldives, according to an article published by the Inter Press Service (IPS).

Although Minister of Tourism, Arts and Culture Ahmed Adeeb commissioned the pavilion, President Mohamed Waheed Hassan Manik’s government “lost interest” in the initiative and allowed a joint Arab-European collective of artists, called the Chamber of Public Secrets (CPS), to curate the exhibitions, alleges the IPS.

Some of the Maldives pavilion curators have accused Waheed’s government of having no interest in the arts, the pavilion exhibitions, or climate change.

“They did not care. They did not mind. They don’t believe in the power of art to affect anything anyway,” associate curator Maren Richter told the IPS.

“The new government even denies the [climate change] problem and says that Nasheed was a liar. They say, ‘He built an airport and resorts, why would he do that if sea levels are rising?’,” added Richter.

CPS curator and Lebanese artist Khaled Ramadan echoed these sentiments in his documentary “Maldives To Be or Not”, which “explores Western preconceived notions about the Maldives and its ecology.”

The film focuses on the current socio-political challenges faced by Maldivians, which include climate change as well as “the corrupt tourism industry” and the struggle “to balance their life between modernity and traditions,” he explained to the publication BLOUIN ARTINFO.

Ramadan visited the Maldives in March 2013 as a “citizen of the Arab world who wanted to learn about what’s left of the shared history and how this amphibious nation is treating its contemporary culture in relation to its ecological strengths and weaknesses.”

“The environmental hazard about the Maldivian nature is an over politicised notion, and the nature has proven to be much more sustainable than the Maldivian culture,” wrote the Maldives Pavilion blog.

“Would our request to represent Maldives as outsiders have been accepted by Venice Biennale officials without official letter from the current Maldives government?” asked Ehsan Fardjadniya, an artist and activist based in Amsterdam participating in Maldives Pavilion.

The initial ideas for the Maldives pavilion were to unite a network of activists to discuss and act on climate change issues and the ongoing political turmoil in the country via a mobile pavilion representing the forced migration of these future climate refugees, Fardjadniya explained in an interview for the Maldives Pavilion blog.

“Right now, the project has found a venue and doesn’t seem to relate itself much or at all with the pressing issues in the Maldives,” said Fardjadniya. “On the contrary, we seem to be commissioned by the current government to represent the Maldives at 55th Venice Biennale.”

“I would rather be an outsider to this present situation and act against this cultural coup,” Fardjadniya declared.

The Maldives pavilion includes a variety of exhibitions created by international multi-media artists, individual contributors and group collaborations.

While the exhibitions were primarily created by artists of various nationalities, two Maldivians, Moomin Fouad and Mohamed Ali, contributed their film “Happy Birthday”. The film, about a kidnapping and disappearance, previously won 12 MFA Awards at the 2011 Maldives Film Festival.

The 55th Venice Biennale was launched on 29 May and will be open to visitors until 24 November.

The Biennale claims to be “one of the most prestigious cultural institutions in the world…promoting new artistic trends and organising international events in contemporary arts” since its formation in 1895.

Minister of Tourism, Arts and Culture Ahmed Adeeb was not responding to calls at time of press.

Addendum: Following publication of this article Minivan News received the following statement from Abed Anouti, Producer at the Chamber of Public Secrets, in response to an enquiry made by Minivan News the previous day.

In compliance with CPS’s copyright request Minivan News has also taken down an image of the pavilion’s promotional poster, distributed by CPS and used to illustrate the story.

The article by Ferry Biedermann published at IPS is full of miss information. Mr. Ferry NEVER interviewed anyone from the Maldives Pavilion, his claims stand for his own account. He has no sound recording, email correspondence, footage or even photos from the curators of the pavilion to support his claims.

As we do with all journalists, we only presented to Mr. Ferry our PR which is published on our website. CPS always asks journalists to look at our PR statement at our website to learn more about the project. He didn’t use time to study the artworks at the pavilion, he is not an art writer or even cultural writer, he is another journalist who is looking for sensations.

Mr. Ferry Biedermann is not the only journalist who took advantage of our positive pavilion to score political or journalistic points to himself or his agency.

Minivan is another agency that is spreading rumors and misquotations. Neither the curators of the Maldives Pavilion nor the participating artists have given any interviews to Ferry Biedermann or Minivan.

CPS team and the invited artists worked hard for over a year on the issue of climate change to present a research based art exhibition in Venice, our focus is not only Maldives but environment in a global context.

So far professional art writers have been given the Maldives Pavilion the best reviews and we are among the most popular destinations of the Venice Biennale. Furthermore, the Maldives Pavilion was the only one to be interviewed by the Italian national TV on the day of the opening.

As a professional artists group, we approach the Maldives with positive thinking, we are not journalists who seek negative stories. We don’t wish to politicize art and refuse to be part of any political sensational publishing agencies like Minivan.

Just for the record all conversations and emails with non-professional art writers or art critics are published on our web to avoid misuse or misquotation of any of us like in the case with Mr. Ferry.

Finally, Minivan unethically used our graphic poster without our knowledge or permission. Therefore we urge you to remove it from your website due to copyright.

Abed Anouti,

CPS – Producer

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