Dissolving IDCs an undemocratic power grab, says DQP

The government’s abolition of the Island Development Committees (IDC) is a blow against democracy in the Maldives, the Dhivehi Qaumee Party (DQP) has said.

“This is a mockery of the public and the Constitution,” the party said, “and more a feature of autocratic rule than democracy.”

The Maldivian Cabinet dissolved the IDCs – elected bodies of five to seven members, functioning like a local council – last month after
courts ruled they had no legal authority under the new constitution.

Government-appointed advisory boards will administer the islands until local councils can be elected, assuming a decentralisation bill (currently at committee stage) is passed by parliament.

“We think this is a step backwards for democracy,” said DQP Secretary General Abdullah Ameen, who accused the government of strengthening its territorial control through autocracy.

“Even during Gayoom’s time the IDCs were the only institutions where people on the islands saw democracy practiced, and were among the only democratic institutions in the country,” he said.

The move, claimed independent MP Mohamed Nasheed on DhiTV last night, amounted to “burying democracy in the islands”.

Under the terms of the constitution, the elections of island, atoll and city councils were to be held before July 1, 2009, in order to provide for decentralised administration of the country.

Instead, argued the DQP, the government had not only missed the deadline but was using the dissolution of the IDCs to claim island assets such as powerhouses for privatisation.

“Dismissing the IDCs and appointing advisory boards doesn’t accomplish anything,” Ameen said.

The deadline for the local elections elapsed after the parliamentary election was postponed from February to May because MPs failed to pass the necessary legislation.

Deputy Home Minister Ahmed Shafeeq acknowledged that island assets were currently being valued through the courts before being handed over to utility companies, but said the government was waiting for the”new rules and procedures” in the decentralisation bill to be implemented before establishing elected and salaried island and atoll councils.

“After the new constitution was introduced the Island Development Committees were no longer lawful – and that’s a problem for such an institution,” he said.

“They have no legal basis and we can’t just [continue] as if they do,” he added, explaining that the government-appointed advisory boards were only a temporary measure.

Besides dissolving the IDCs, the cabinet decided to allow the development of tourist guest houses on inhabited islands in the hope of generating additional income from visitors.

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Government launches issuance of US dollar treasury bills

The government today launched the issuance of US$100 million worth of treasury bills to the State Bank of India (SBI).

At a ceremony this morning, Aishath Zahira, deputy governor of the Maldives Monetary Authority, said it was the first time a security denominated in US dollars was being issued.

“This ceremony marks a new beginning, the first issuance of treasury bonds (t-bonds) in the history of Maldives and hopefully a new chapter in the Maldives’ securities markets and the finance market as a whole,” she said.

“Treasury bonds are to be issued to the commercial banks licensed in the Maldives. The treasury bonds are securities issued for a longer term, one to 15 years and beyond. The bonds will be coupon bearing bonds and hence some of the bonds will be sold at discount and others at a premium.”

She added that issuing the bonds marked an important step for the country’s financial evolution and graduation beyond the status of a ‘least developed’ country.

In August, the MMA began open market operations – selling government securities to control the money supply – to alleviate the dollar shortage.

“As a result of the open market operations, the amount of money circulating in the economy will decline, aggregate demand will fall, inflation will decline and the dollar shortage will be eased,” said MMA Governor Fazeel Najeeb in a statement to the press in September.

The main purpose of the operation was to remove the excess local currency in the economy, he said, which resulted from the MMA printing money to give out loans and overdrafts to the government to plug the budget deficit.

Zahira said today the MMA was the government’s agent for raising funds for financing the budget through the issuance of government securities.

“In Maldives, treasury bills were first introduced on 10 September 2006, as the first government security and with a minimum face value of Rf1 million.

At present, treasury bills are issued on a tap system with maturities of one month and three months at a fixed interest rate of 6 and 6.25 per cent per annum,” she said.

“Presently, the t-bills market is open to all commercial banks in the Maldives and state owned enterprises and their subsidiaries. The MMA acts as issuing and paying and advisory agent for the government and carries out weekly issuance of treasury bills on every first day of the week with the settlement process carried out on the next day.”

Zahira said the present securities market of the Maldives was not yet fully developed and the MMA was currently working towards issuing t-bills and t-bonds on an auction basis.

“MMA hopes that this would establish a market rate for securities which could then be used in financial transactions. MMA also hopes to expand the investor base for government securities by introducing lower denominated t-bills and t-bonds and allowing other private institutions and individuals to participate in the primary and secondary market in the near future. This could create a competitive market for t-bills and t-bonds and also encourage public savings.”

At present, the SBI was the sole subscriber for the treasury bills.

The Male’ branch of SBI began operations in February 1974 as the first commercial bank in the country.

It currently has branches in Addu atoll Hithadhoo and Alif Dhaal Maamigili. It is also the second largest bank in the country in terms of assets.

In his remarks, D M Muley, the Indian High Commissioner, said there had been a “qualitative and quantitative upward swing” in India-Maldives relations since the new government came to power last year.

The SBI was “an unsung hero” in the bilateral relations between the two countries, he said.

“I must at this moment remember the vision of Mrs Gandhi, who said before I visit Maldives, I would like my bank to be present there,” he said, adding today was a celebration of her vision over 44 years ago.

At the function, the award of service to SBI was presented by Ahmed Assad, state minister of finance.

At a press conference after the function, Assad said the main purpose of the sale of t-bills was to cease obtaining loans and overdrafts from the MMA to finance the budget deficit in favour of debt instruments.

The other objective was to ensure that fiscal and monetary policy was independent. “Because of this the MMA will get the space to implement the monetary policy,” he said, adding MMA will now be able to use monetary policy to control inflation.

Treasury bonds and bills will expand the financial market, allow the public to participate and investors to manage their savings.

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Head of Indian coastguard visits president

The director general of the Indian coastguard visited President
Mohamed Nasheed yesterday.

Vice Admiral Anil Chopra is on a visit to inspect the annual
Maldives-India coastguard exercise which will be held from the 1 to 4
December.

During the meeting, the president said the joint training exercises
were highly useful to the Maldives and thanked the Indian government
for conducting the exercises.

The pair further discussed the threat of pirates in the Indian Ocean
and noted that the joint training programmes would help enhance
bilateral relations that existed between their respective countries.

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French ambassador visits president

French ambassador Mr Michel Lummaux paid a farewell call on President
Mohamed Nasheed yesterday.

The president thanked Lummaux and the French government for their
support in ushering in democracy to the Maldives.

He added he hoped France would continue assisting the Maldives in
consolidating democracy in the country.

Nasheed said French President Nicolas Sarkozy’s contribution was
essential in reaching a resolution on climate change at the
Commonwealth Heads of Government Meeting in Trinidad and Tobago.

Last week, Commonwealth heads met for their two-day annual meeting.
They were joined for the first time by non-Commonwealth leaders
Sarkozy, the Danish prime minister and the UN secretary general.

Nasheed said the resolution renewed hope of reaching a climate change
treaty at the summit on the issue in Copenhagen later this month.

Lummaux told the president France would continue to assist the
Maldives and was aware of the vulnerability of low-lying nations such
as the Maldives to climate change.

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Swine flu testing to resume

The centre for community health and disease control has said testing
for swine flu would resume at the Indira Gandhi Memorial Hospital
(IGMH) from last night onwards, Voice of Maldives reports.

The test has not been available at the state hospital due to lack of supplies.

An official from the health sector said people have tested positive
for influenza A in the capital as well as Haa Dhaal, Shaviyani, Noonu,
Raa, Baa, Alif Alif, Vaavu, Meemu, Thaa and Gnaviyani atolls.

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Villa College to offer masters programme

Villa College signed a MoU yesterday with Malaysia’s Open University
for a masters of education programme in the country, Voice of Maldives
reports.

The college said the main purpose of the MoU was to offer the masters
degree course to allow students to complete the qualification without
having to go abroad.

The programme is aimed at school principals, administrators and policy
level officials in the education sector.

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EC denies IDP request to revoke membership of over 5,000

The Elections Commission (EC) has denied a request by the Islamic
Democratic Party (IDP) to revoke the membership of 5,044 people,
Haveeru reports.

Mohamed Tholal, director general of the EC, said the request was
denied as it would have violated the rights of its members.

IDP had filed the request after receiving complaints from the new
members denying they signed for the party.

Umar Naseer, leader of the party, said the request was made as the
party would have to submit a registration update soon. He added the
party would not pursue the matter any further.

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Saudi prince given award

President Mohamed Nasheed conferred the Order of Distinguished Rule of
Izzuddeen to Prince Alwaleed Bin Talal Bin AbdulAziz Alsaud of Saudi
Arabia yesterday.

The medal was given to the prince under article 115 of the
constitution, in recognition of his important contributions to the
development of the Maldives as well as his services globally to
promote Islam, democracy and understanding.

The Order of Distinguished Rule of Izzuddeen was created in 1972 and
is among the highest ranking honours conferred by the state. It is
named after Sultan Hassan Izzuddeen, the Maldivian hero who liberated
the Maldives from foreign rule in the 18th century.

Upon arrival at Muleeage, Prince Alsaud and Princess Ameera were
welcomed with an honour guard conducted by the Maldives National
Defence Force.

At the ceremony, the president said the medal was given to the prince
because of his work “in representing democratic forms in Islamic
countries”.

He added he hoped close ties between the Maldives and Saudi Arabia
would continue to strengthen in the future.

Prince Alsaud praised the president for the smooth transfer of power
that took place in Maldives following the country’s first multi-party
election.

He said that “any investment opportunity that helps the Maldives…we
will be the first to lead in having it executed.”

The prince further commended the Maldives’ efforts to bring climate
change to the world’s attention.

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