Maldives grapples with difficult dengue outbreak

The Maldives is battling a growing epidemic of dengue fever which is believed to have contributed to the deaths of at least five people this year.

More than 300 cases were reported in the first two months of 2011, compared with 737 cases and two fatalities reported last year. Many cases have been reported in Male’, although most of the fatalities have been islanders. One patient died during transit to Indira Gandhi Memorial Hospital (IGMH), and the more serious cases have disproportionately affected children.

Dr Ahmed Jamsheed, who until recently headed the Centre for Community Health and Disease Control (CCHDC), observed that 2011 had seen higher instances of dengue shock syndrome, where the mosquito-borne parasite causes blood pressure to drop so low that organs cannot function.

“Our initial theory was that this was a new strain of dengue,” he said. “There are four different strains, and strains one and three have been most prevalent. We took samples and sent them abroad but I had left the office by the time the results came back. I’m told out of the samples we sent a few tested positive for dengue one, which means no new strain.”

Instead of a new strain, Dr Jamsheed suggested that the growing number of dengue fatalities could be related to lapses in managing the disease, due to the high turnover of foreign doctors “particularly on the islands.”

“Usually dengue management in the Maldives is quite good, but new doctors are not very well orientated for dealing with dengue, and cases are being referred to Male’ quite late. It would be hard to say for sure at this point unless we did a case-by-case audit, to see where we’re going wrong,” he added.

IGMH Registrar Dr Fathimath Nadia noted that at least two of the fatalities this year involved children, “although these were quite complicated cases.”

Nadia said that health services had previously printed and issue a handbook on managing dengue to every incoming doctor and conducted briefings of incoming doctors, but was not sure if this was still carried out.

The CCHDC and the Maldives National Defence Force (MNDF) in February this year conducted spraying of mosquito breeding sites in Male’ and the surrounding islands, but reported difficulty obtaining access to residential and construction sites.

Minivan News also understands that a international mosquito expert brought in to exterminate breeding habitats at a resort had last month pinpointed the source of Male’s mosquito-breeding to pools of stagnant water in building sites across the city. However she was also reportedly unable to obtain the required permission to inspect the properties.

“The boom in the construction industry has created a huge number of mosquito breeding grounds,” Dr Jamsheed explained. “In Male’ when the Council gives planning permission it requires management of mosquito breeding grounds, but have so far failed to enforce it or conduct inspections. My experience in Male’ was that when our teams visited construction sites there was often nobody at the site to communicate with in Dhivehi or English.”

While the teams might be contact with the construction company responsible for the building, often those working at the site were employed under layers of subcontracting which made it difficult to place responsibility, he added.

Private and community rainwater tanks were also prime breeding grounds, he said, a particular problem on many islands.

“IGMH has a large underground water tank and we even found that full of mosquitoes,” he said. “They had not taken measures to make it airtight, although I think it’s been corrected now.”

Malaysia, which has had nearly 50,000 cases of dengue reported already this year, is currently working with France pharmaceutical company Sanofi-Aventis to develop a vaccine. The country has also launched a nationwide campaign to encourage people to destroy breeding grounds on their private property.

Early symptoms of dengue include fever, joint paint and a distinctive rash and headache, although it can be difficult to distinguish from the milder Chikungunya disease which can last for up to five days. However even healthy adults can be left immobile by dengue for several weeks while the disease runs its course.

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MAAS to celebrate 50th anniversary of first man in space

The Maldives Association for the Advancement of Science (MAAS) is hosting an event this evening (April 12) to celebrate the 50th anniversary of the first many in space.

“Fifty years ago a Russian by the name of Yuri Gagarin became the first human to escape the confines of Earth’s atmosphere and to enter into orbit around the Earth in space,” MAAS said in a statement.

“Human spaceflight became a reality 50 years ago with the launch of a bell-shaped capsule called ‘Vostok 1’ on April 12th, 1961. The capsule was carrying Soviet cosmonaut Yuri Gagarin, who took his place in history as the first human to leave the bounds of Earth and enter outer space.”

“MAAS will join the Global Astronomy Month’s global ‘Yuri’s Night’ celebrations with a local event to mark the occasion of this landmark human achievement. There will be electronic down-tempo music played live by a group of local musicians and the movie First Orbit will be screened as part of its global premier. MAAS invites everyone to join in the celebration.”

‘Yuri’s Night’ in the Maldives will take place at Seahouse in Male’ from 8:00pm to 11:00pm, April 12.

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Fixed peg can only be maintain by no deficit monetisation: Lanka Business Online

The currency peg allowed the Maldives to have some of the highest living standards in South Asia by preventing excessive deficit spending, reports Lanka Business Online.

“Currency debasement and inflation are key to expanding the state at the expense of the larger society.

The Maldives also started active open market operations recently, ostensibly to mop up excess liquidity, but it can make it almost impossible to maintain a peg.

A well functioning open market operations system automatically sterilises interventions by a central bank (dollars sales by the monetary authority) with injections of local money forcing a balance of payments crisis, even in the absence of excessive deficit spending.

In 1997 many East Asian nations which had good fiscal management ran into currency crises due to sterilized interventions by central banks.

A fixed peg can only be maintained with unsterilized interventions and no deficit monetisation.

One of the triggers of Maldives current troubles was a large increase in the salaries of state workers. However the archipelago was also hit by a tsunami in 2004 and also suffered a downturn in tourism, a key source of state revenue, amid a global recession.”

Read more

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MDP wins Kela after election repoll

The Maldivian Democratic Party (MDP) has won four of the five seats of Kela Island Council while the Dhivehi Rayyithunge Party (DRP) has secured Kela’s two seats on the Haa Alif Atoll Council, after the Elections Commission repeated the election process.

The re-poll was ordered by the High Court which ruled that the original vote on February 5 was invalid, with public anger erupting after election officials turned away those who turned up to vote after the deadline.

Successful MDP candidates for Kela included Ali Shareef, Abdulla Zubair, Haulath Mahira and Hassan Mamdooh while Adam Asad was elected on a DRP ticket.

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Air tickets rise in price as rufiya falls

Several air ticket agencies in Male’ have raised the price of tickets in response to the government’s decision to authorise the trade of dollars at up to Rf15.42.

Haveeru reported that Villa Travels, the local agent for Malaysia Airlines and Indian Airlines, had increased its dollar exchange rate to Rf15.42, increasing the cost of a Male-Trivandrum ticket by Rf740.16 (US$60).

Galaxy Enterprises, which sells Sri Lankan Airlines tickets, last week announced it was suspending sale of tickets because of the dollar shortage.

Mac Air Services, the agent for budget airline Mihin Lanka, told Haveeru that ticket prices would remain unchanged as they had not been based on the official exchange rate of Rf12.85.

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Parliament approves amendments to Pension Act

Parliament today passed amendments proposed by government to the Pension Act of 2009 to delay the inclusion of expatriate workers in the retirement pension scheme by at least three years.

The amendment bill was passed with 70 votes in favour and one against. Once ratified, the legislation would mandate the Pension Administration Office to formulate rules within one year for expatriate workers to join the retirement pension scheme.

Meanwhile at today’s sitting, an amendment proposed by minority opposition People’s Alliance (PA) MP Ahmed Nazim to exempt MPs from the scheme however did not pass after 41 MPs voted against it, 29 voted in favour and five abstained.

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IMF praises managed float of rufiya, “unpredictable” and “high risk” warn local experts

The International Monetary Fund (IMF) has praised the Maldives’ decision to effectively devalue its currency, allowing the rufiya to be traded within 20 percent of the pegged rate of Rf12.85 to the dollar.

“Today’s bold step by the authorities represents an important move toward restoring external sustainability,” the IMF said in a statement. “IMF staff support this decision made by the authorities. We remain in close contact and are ready to offer any technical assistance that they may request.”

The Bank of Maldives was today trading the dollar at the maximum selling price of Rf15.42 and buying at Rf12.75 while the Bank of Ceylon was selling it at 13.80 and buying at Rf13.60.

At a press conference this afternoon, newly-appointed Finance Minister Ahmed Inaz explained that the government decided to change the fixed exchange rate to a “managed float” to shape government policy towards increasing the value of the rufiya and ultimately bring the exchange rate down to Rf10 – an oft-repeated pledge of President Mohamed Nasheed.

The worsening balance of payments deficit could not be plugged without allowing the market to set the exchange rate, Inaz continued, adding that through lowering the fiscal deficit and spurring private sector job growth “a path would open up for us to reach the lower band (Rf10.28).”

“My estimate is that it will take about three months for the market to stabilise and reach a balanced [exchange] rate,” he said.

MMA Deputy Governor Aishath Zahira acknowledged on state television last night that the fixed exchange rate in effect since July 2001 had been “artificial.”

Economic Development Minister Mahmoud Razee argued that as a result of the artificially fixed exchange rate, “we do not really know, based on the breadth of the domestic economy, what the value of the Maldivian rufiyaa is right now.”

The managed floating rate, said Razi, would allow the government to decide specific measures that would be needed to improve the exchange rate – such as the extent to which foreign exchange reserves should be increased.

State Minister for Finance Ahmed Assad told press that TGST (tourism goods and services) receipts in February had revealed that previous estimates of the amount of dollars that enter the country were well below the actual figure. The government now estimates a minimum annual income of US$2.5 billion.

Assad urged citizens to use banks to purchase and exchange dollars to avoid “becoming prey to [black market operators].”

A senior government source said the decision was made based on the government’s speculation “that people are hoarding dollars. We hope this will send a signal to the market. It also shows our commitment to a market economy.”

“High risk”

The government has struggled to cope with an exacerbating dollar shortage brought on by a high budget deficit – triggered by a spiralling public sector expenditure – in comparison with the foreign currency flowing into the country. Civil service expenditure has increased in real terms by 400 percent since 2002.

Banks subsequently demonstrated reluctance to sell dollars at the pegged rate, and high demand for travel, commodities and overseas medical treatment forced most institutions to ration their supply.

A watershed moment last week – a crackdown on the hitherto ignored blackmarket sale of dollars at rates of up to Rf14.5 – led to increasing desperation among the lower-paid of the country’s 100,000 expatriate workers, who found themselves blocked from trading currency and unable to remit money home to their families.

The government’s decision yesterday is effectively a ‘rose-tinted’ devaluation of the currency, at least in the short-term, but according to one financial expert could have unpredictable consequences once the market catches up in 4-6 weeks.

“Other countries have a maximum band of eight percent. I have not come across any countries with 20 percent. I think it’s too wide,” said Ahmed Adheeb, a local financial expert working in the private sector. “Why did the government overshoot the blackmarket rate of Rf14.5, and why did it take them two years to come to this decision?”

Adheeb predicted that the construction industry would be among the hardest-hit, “as ongoing projects will now face additional costs. In addition, smaller and medium-sized enterprises supplying resorts may find that their commission and profit is gone if their contracts are in rufiya.”

The public would also be impacted, Adheeb said, as importers passed on the rising cost of goods.

The devaluation came at the same time as the tourist season was winding down for the year, and pilgrims were searching for dollars for the upcoming Hajj. Pilgrims could be called on to make additional payments, Adheeb speculated, while Ramazan importers could face additional challenges this year.

The general public would be also be impacted as the cost of commodities rises to fill the new exchange rate, Adheeb said, while the government’s commitment to projects such as harbour construction could be delayed due to the risks of taking on even more debt.

“This will also affect business contracts, particularly [those concerning] foreign employment, and students studying overseas,” Adheeb said, predicting that “if the market does not stabilise then in three months time we will see a further devaluation. The government is taking a huge risk.”

Structural adjustments

The move will put the government on good terms with the IMF, which spent last year trying to encourage the government to make difficult political decisions for the sake of the economy, and just stopped short of calling for a devaluation of the currency on conclusion of its Article IV consultation.

The IMF, which has shown resounding disinterest in local politicking, in February 2011 criticised the government for “significant policy slippages” claiming that its failure to reduce its expenditure had undermined the country’s capacity to address its crippling budget deficit.

“On the expenditure side, there have been no net fiscal savings from public employment restructuring, public sector wages will be restored to their September 2009 levels earlier than expected, and the new Decentralisation and Disability Bills will lead to considerable spending increases,” the IMF stated. “Also, the Business Profit Tax will come on stream eighteen months later than planned.”

It did however praise the government for getting much-needed business profit tax and tourism goods and services tax legislation through parliament, signalling that this was a major step towards long-term economic maturity. The bills had faced obstacles in parliament, which includes among its MPs some of the country’s wealthiest figures in the resort industry, and who were instrumental in increasing the budgets sent to parliament by the Finance Ministry.

Opposition Dhivehi Rayyithunge Party (DRP) MP Ali Waheed this morning proposed a motion without notice condemning the government’s decision to relax the dollar exchange rate.

Waheed said that he was prompted to submit the motion out of concern for the plight of Maldivian students in foreign institutions and patients who need to fly abroad for treatment.

The DRP MP for Thoddoo also accused the government of compromising the independence of the country’s central bank by trying to influence monetary policy.

In the ensuing one-hour debate, opposition MPs argued that the immediate consequence of the new floating exchange rate would be a 20 percent rise in inflation.

DRP Leader Ahmed Thasmeen Ali explained that government revenue from import duties would increase by 20 percent but the affected businesses would pass the cost to customers.

“We are in this state because the government increased the [amount of rufiya] in circulation by printing money and taking on credit,” said Thasmeen, in a statement likely to raise political hackles among the ruling party, considering that the IMF has stated that the economic crisis in the Maldives was triggered by “expansionary fiscal policies” from 2004 – under the former administration.

This left the country especially vulnerable to the decline in tourism during the 2008-2009 recession. However the financial deficit exploded on the back of a 400 percent increase in the government’s wage bill between 2004 and 2009, with tremendous growth between 2007 and 2009.

On paper, the government increased average salaries from Rf3000 to Rf11,000 and boosted the size of the civil service from 24,000 to 32,000 people – 11 percent of the total population of the country – doubling government spending from 35 percent of GDP to 60 percent from 2004 to 2006.

While preliminary figures had pegged the 2010 fiscal deficit at 17.75 percent, “financing information points to a deficit of around 20-21 percent of GDP”, down from 29 percent in 2009, the IMF reported.

Adheeb said today that parliament, independent institutions, civil service and political appointees had continued to make salary demands on the state “but nobody is thinking about the economy.”

“Economic decisions are being politicised when the economy should be the first priority – we cannot survive without it. Only then can political stability be achieved,” he said.

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Islanders allege black magic performed in Maalhos School after students inexplicably start to faint

At least four students in North Ari Atoll Malhos have been taken to hospitals in Male’ after they mysteriously fainted.

Five students attending the school have experienced the unusual incident, but the fifth student’s condition was not as serious as the other four.

One male student, who was the first to experience the unusual effects, reportedly lost conscious and was brought Male’ for treatment after he was found in a hypoxic condition, characterised by a lack of oxygen in the blood supply.

Several days later another female student experienced the same condition and was brought Male’ for treatment.

Third student studying at the school fainted while she was at home yesterday, and remains hospitalised in Indira Gandi Memorial Hospital (IGMH).

‘’She fainted while she was at home and she was taken to the health centre immediately,’’ said a family member of the girl, no older than 14. ‘’She remained unconscious for more than two hours in the health centre.’’

The family member said the girl had not claimed to have observed anything unusual before suddenly fainting.

‘’She did not see or feel anything unusual before she just fainted like the others,’’ he said. ‘’The health centre advised her to come Male’ for more treatment and for necessary examinations.’’

He said that many tests conducted so far all showed the results as normal.

‘’It is very strange, we do not know what is going on,’’ he said.

He also said that the fifth student to experience the symptoms, who was of the same age and fainted yesterday, was brought Male’ with her.

‘’The other girl that was brought with her was in a far worse condition. She remained unconscious for more than three or four hours and she does not know what happened to her,” he said.

The family member said that more than four men were needed to hold the girl down when she became conscious, and people observed that she was extremely strong for a girl of her age.

‘’We are suspecting that this is something related to black magic practices,’’ he added.

Another islander, Ahmed Adil ‘Ahukko’, alleged that the cause of the fainting spells was the performance of black magic during the Local Councils Elections in an effort to win votes.

‘’Because it was the island school where the elections were held, the person who did it would probably do it to the school so that it has effect on anyone that enters there,’’ he claimed. ‘’Parents are very concerned and have expressed concern about it now.’’

Although the island is small and isolated with a population of only a few hundred, belief in black magic remains very common and many claim to be victims of such spiritual attacks.

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Criminal Court asks police to find Gayoom’s brother, former Atolls Minister Abdulla Hameed

Police have confirmed a request from the Criminal Court to bring former Atolls Minister Abdulla Hameed before a court in the Maldives, after a summons could not be delivered to him in a pending case.

Several hearings have been cancelled in a high-profile corruption case involving Hameed, who is the brother of former President Maumoon Abdul Gayoom, after the court was unable to determine his whereabouts and deliver a summons.

Police said that the Immigration Department had been instructed to hold Hameed’s passport should he ever return to the Maldives.

Police spokesperson Sub-Inspector Ahmed Shiyam explained that when the court first requested police to produce Hameed he was not in the Maldives.

”But the court have not yet issued an arrest warrant or requested his arrest via Interpol,” Shiyam said. ”His whereabouts remain unknown.”

Hameed is being sought by the court in a trial concerning corruption allegations in the former Atoll’s Ministry’s Audit Report.

The audit of the Atolls Ministry’s showed that 17 staff employed by the Ministry in 2007 never appeared for work but were being regularly paid by the Ministry, at a total cost of Rf1.4 million (US$109,000).

According to the report, a further 38 persons employed by the ministry were not assigned any daily work, but were also paid regularly. The report stated that occasionally the heads of atolls were brought to Male’ and kept for a long period of time without assigning them any duties. One such atoll head was brought to Male’ in October 2007 and left 10 months later in August 2008, at a cost to the Ministry of Rf 241,862 (US$18,800).

Web of corruption

In March last year, minority opposition People’s Alliance MP Ahmed Nazim pleaded not guilty to charges of defrauding the atolls ministry.

At a press conference in August 2009, Chief Inspector Ismail Atheef said police had uncovered evidence that implicated Hameed along with Eydhafushi MP Ahmed “Redwave” Saleem, former director of finance at the ministry, and Deputy Speaker Nazim in fraudulent transactions worth over US$260,000 (Mrf 3,446,950).

Police exhibited numerous quotations, agreements, tender documents, receipts, bank statements and forged cheques proving that Nazim received over US$400,000 in the scam.

A hard disk seized during a raid of Nazim’s office in May allegedly contained copies of forged documents and bogus letter heads.

Police maintain that money was channelled through the scam to Nazim who laundered cash through Namira Engineering and other unregistered companies.

Police further alleged that MP Saleem actively assisted the scam in his then-position as director of finance at the ministry, while Nazim’s wife Zeenath Abdullah had abused her position as a manager of the Bank of Maldives’ Villingili branch to deposit proceeds of the fraudulent conspiracy.

Police said Hameed, also long-time Speaker of the People’s Majlis, played a key role in the fraud by handing out bids without public announcements, making advance payments using cheques against the state asset and finance regulations, approving bid documents for unregistered companies and discriminatory treatment of bid applicants.

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