STO posts record profits for January

The State Trading Organisation (STO) has posted a record level of profits for the month of January.

STO Managing Director Adam Azim told the press on Thursday that the MVR46 million (US$3 million) earned last month was the highest monthly profit in the company’s history.

The record profit was the result of efforts to improve the financial situation of the company, Azim said, adding that STO did not raise prices “a single cent” from goods sold to the public.

Efforts were instead undertaken to make the company’s management more efficient and increase productivity, he said.

The company’s current aim was to improve cash flow and liquidity and focus on its traditional business instead of expanding to other sectors, he added.

As STO was owed almost a billion rufiyaa in unpaid bills from government-owned companies, Azim said the finance ministry has been making repayments in monthly instalments.

On ongoing projects, Azim said the company expected the residential hotel under construction in Hulhumalé to be completed by the end of the year while a project to install night lights at the Fuvahmulah airport would be finished soon.

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MDP will not respect separation of powers, says President Yameen

The Maldivian Democratic Party (MDP) did not respect separation of powers during its three years in government, President Abdulla Yameen has said, urging voters to consider the track record of former President Mohamed Nasheed’s administration before choosing parliamentary candidates.

Speaking at the Progressive Coalition’s parliamentary campaign launching rally on Thursday night, President Yameen strongly criticised the opposition party’s campaign slogan – “Vote for the scale [of justice] for separation of powers” – contending that an MDP-controlled parliament would exert undue influence on other state institutions.

“Our rival opposition party is saying that they are coming to the People’s Majlis to separate powers. No doubt separation of powers is important in modern democratic systems. Separation of powers is a basis we all believe. But let us consider how responsibly and the extent to which powers were separated during the three years of the MDP government,” he said.

“We have to learn from past experience and they have shown very well, in much detail, during their three years how they want to separate powers in the future.”

The state of affairs that prevailed in the country at the end of the MDP’s three years in government should not have been what it was if the party had ruled democratically, Yameen argued.

Yameen said he “could not believe” that national debt could rise from MVR5 billion (US$324 million) to over MVR30 billion (US$1,195 million) during a democratic government.

MDP in office

President Yameen claimed that the MDP government attempted to merge the three powers of state during its time in office.

Yameen referred to the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed in January 2012, which he contended was prompted by “verdicts or punishments not being delivered the way the president wanted.”

Moreover, the arrest of two opposition MPs in June 2010 “showed the extent to which political space was offered” to members of the People’s Majlis, Yameen said.

Following the en masse resignation of Nasheed’s cabinet on June 29, police arrested then-MP Yameen and MP Gasim Ibrahim over allegations of bribery and treason. Both MPs were subsequently released by Judge Abdulla.

Yameen also referred to the delayed appointment of the Anti-Corruption Commission’s (ACC) President Hassan Luthfy, who was eventually sworn in 24 months after parliament approved him for the post.

After President Nasheed recalled Luthfy’s name and proposed a substitute nominee in late 2009, parliament rejected the substitute and approved Luthfy to the commission.

The President’s Office delayed swearing-in the new commissioner as it sought a Supreme Court ruling. Yameen alleged that the appointment was held up to prevent the ACC from functioning.

MDP MPs have not shown “even a small example of separating powers,” Yameen continued, accusing opposition MPs of obstructing the government and blocking development projects.

“Dark clouds” on horizon, warns vice president

Yameen also accused the opposition party of refusing to cooperate with the government on confirming the appointment of a new prosecutor general.

“So I have to say that it might be that they are obstructing [the appointment] because there are cases involving [opposition MPs]. This is why I am saying they are not trying to separate powers. What we are seeing is the merging of powers,” he said.

In his speech at the rally, Vice President Dr Mohamed Jameel Ahmed contended that MDP MPs contesting the upcoming parliamentary elections endorsed former President Nasheed’s alleged “inhumane activities” and “insults” to Islam and the Prophet Mohamed (pbuh).

Voting or campaigning for such MPs was “without a doubt aiding and abetting sin and strife,” he said.

Repeatedly urging voters to consider the MDP’s track record before voting on March 22, Dr Jameel called on the public to vote for coalition candidates to empower citizens, defend the constitution and protect Islam.

Reiterating a central theme from last year’s presidential campaign, Dr Jameel insisted that the MDP would pursue an agenda to eradicate Islam from the Maldives.

The vice president also said he could see “dark clouds gathering” on the horizon, warning of arson in the capital Malé and judges “tied with rope and dragged through the streets.”

Former President Maumoon Abdul Gayoom – figurehead and leader of the ruling Progressive Party of Maldives – meanwhile praised the candidates fielded by the PPM and its coalition partners Jumhooree Party and the Maldives Development Alliance.

Gayoom stressed that the Progressive Coalition must “work together” in the parliamentary campaign to secure a majority in the People’s Majlis, adding that government supporters contesting as independents would split the vote and benefit the MDP.

“Our three parties are working together as one party. We are working towards one objective. So there is no doubt that candidates contesting from our parties will have the full support of the other two parties,” said Gayoom.

“That is why I am saying that the foundation of the efforts we are commencing is working together, helping one another, and cooperating with each other.”

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Kulhudhuffushi airport unconstitutional and unfeasible, says Ecocare

Environmental NGO Ecocare Maldives has called on the government to honor and uphold the constitution with regards to the sate’s mandate to protect and preserve natural environments and to ensure development activities are ecologically balanced sustainable.

In a statement issued yesterday, the organisation said the government’s decision to reclaim a mangrove area for the development of an “economically less viable” airport on Kulhudhuffushi Island – approximately 16.6km from the Hanimaadhoo International Airport – is “dishonoring” the constitution and that it is “neither environment friendly nor economically sound”.

Article 22 of the constitution – on protection of the environment – states that the government should take necessary measures to prevent pollution, the extinction of any species, and ecological degradation when pursuing economic and social goals.

Asking the authorities to reconsider the decision, Ecocare proposed a focus on the development of a speedy sea transportation or ferry network between the two islands instead.

Minister of Transport Ameen Ibrahim has earlier confirmed that the mangrove will fall into the dredging area for building the airport, though he was unsure whether it would be the whole mangrove or just part of it.

Government accountability

Speaking to Haveeru, Minister of State for Environment Hassan Shah has said that the ministry’s policy is to refrain from obstructing the government’s development projects.

He said that environmental regulations have been amended in a way that ensures the “environment will not become challenge for development” and that the Environment Protection Agency (EPA) will have the full authority to protect the environment.

Responding to the minister’s statement, Ecocare’s Maeed M. Zahir said that the gist of the regulation was to protect such areas and the new amendment is a way of lifting what the government sees as a barrier to development.

“As for EPA, it is a government institution, it is very unlikely for EPA to stop a project that is important for the government. There should be an independent institution, such as the HRCM or CSC, mandated with the protection of environment,” he said.

Noting that previous administrations had similarly failed to protect the environment in various development projects, Maeed said that through the current system the government cannot be held properly accountable for such activity.

Environmentally sensitive areas

Established in 2009, the EPA functions under the supervision of a governing board within the Ministry of Environment and Energy. The agency has published a list of protected areas and a separate list of ‘environmentally sensitive areas’. According to the EPA, the areas listed as sensitive are not yet protected, but the agency is working towards that end.

Kulhudhuffushi has been included in the sensitive areas list – especially the mangrove area. An uninhabited island included in the list, Shaviyani atoll Farukolhu, has also been chosen for the development of a domestic airport.

According to the EPA, Farukolhu also has a number of mangroves and is a breeding island for a number of birds. The island’s bay is also frequented by sharks and rays – particularly sting rays – who come to breed in the area.

All development projects have to be approved by the Ministry of Environment through an Environment Impact Assessment (EIA) which is reviewed by the EPA. While the Farukolhu project has already begun the EIA clearance process, Kuludhuffushi airport has not.

Director of EPA’s environment protection section Mohamed Mustafa said that the agency was very concerned about such issues: “Development projects should be shaped in an environment friendly way, selection of islands with such features should be avoided.”

Importance of wetlands

Environmental NGO Bluepeace said the organisation was closely monitoring the issue and will comment on it through the EPA’s assessment process.

“Wetlands are ecologically important, and they play an important role in climate change adaptation. And they protect the Islands against tidal surges just like the reefs. Here we are talking about the safety of the people living there, not protecting the island itself. This was observed during the 2004 tsunami,” said Bluepeace Executive Director Ali Rilwan.

Noting their economic benefits, Rilwan said that even today the mangrove in Kulhudhufushi was being used by locals to soak coconut husks in order to extract coir and for Kan’doo (bruguiera cylindrica).

He said that Bluepeace was currently in the process of studying wetlands, starting with four northern islands, as more information is needed for their protection.

“We still don’t know much about species that inhabit these places. They are all very different and have a rich biodiversity, there is still a lot to learn about them,” said Rilwan.

Kulhudhuffushi North constituency MP Abdul Ghafoor Moosa has previously cited a failure to promote the environmental case for preserving the wetlands, and a strong desire for economic development which has resulted in popular support for the new airport among locals.

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Juvenile Court postpones terrorism trial of minors

The Juvenile Court has postponed the sentencing of four minors charged with terrorism for their alleged involvement in the arson attack on Thinadhoo Court on February 8, 2012.

A verdict was due on February 6, but the court postponed sentencing to Thursday. However, the court local media a verdict will now be delivered on February 24.

A court official told newspaper ‘Haveeru’ that the sentencing had to be postponed because the four minors and their lawyers did not attend court today. The official had said that the court will take action against them.

Protests erupted across the country on February 8, after a brutal police crackdown on an opposition Maldivian Democratic Party (MDP) protest against the party was ousting from power the previous day.

Protestors on Gaaf Dhaalu Atoll Thinadhoo Island set fire to the police station, magistrate court, atoll council office, and all police vehicles. Nine policemen were attacked and subsequently treated at the Thinadhoo Regional Hospital. Police officials at the time declared the area unsafe for local policemen as “MDP supporters have threatened to attack the residences of policemen.”

The police initially requested the Prosecutor General (PG) to charge 108 persons in connection with the unrest.

The PG pressed terrorism charges against the minors under article 6 (b), with reference to article 2 (f,g) of the Terrorism Prevention Act. Article 6 (b) states that any person found guilty of the act of terrorism shall be sentenced between 10 and 15 years imprisonment or banishment.

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Majlis committee to summon police for clarification on Alhan stabbing case

Parliament’s privileges committee has decided to summon police officers next Sunday to clarify details of how the investigation into the attack on Maldivian Democratic Party (MDP) MP Alhan Fahmy is proceeding.

Speaking to Minivan News, MDP MP Imthiyaz ‘Inthi’ Fahmy, who submitted the case to the committee, described the incident as a murder attempt.

Alhan was stabbed in Malé on February 1 while at the Breakwater cafe in the artificial beach area.

“It is a concern to the whole parliament,’’ Inthi said. “It undermined the privilege of all the MPs, that’s why I sent a letter to the committee.’’

He said that a meeting was held regarding the case, and the committee had decided to ask police to send officers who could provide details of the investigation.

Inthi noted that the police were not sharing information with the public as they did during the investigation into the October 2012 murder of Progressive Party of Maldives (PPM) MP Dr Afrasheem Ali.

“So under the right to information we need to clarify this information,’’ he said, adding that the meeting with the police had been scheduled for 1:30pm on Sunday February 16.

Similarly, a source within Alhan’s family – speaking to Minivan News on condition of anonymity – said that police had not been cooperative thus far.

“Twelve days have passed now and we have tried many different ways to get information on the investigation,’’ he said, adding that he was sure the arrested persons were the assailants.

The Criminal Court yesterday extended the detention period to fifteen days for the two suspects arrested in the case. A third suspect was arrested, but was released soon after.

The family member said today that there was now a small movement in his leg, though doctors were unsure how long it will for him to fully recover.

During the attack, Alhan received stab wounds to the back and was quickly flown to Sri Lanka for spinal surgery.

“He still cannot sit, stand or walk and can’t talk a lot because he does not have energy,’’ said the family member. “We are still discussing sending him to Singapore and we also sent the surgery report to the doctors in Singapore where they have said it was done well and there were no issues.’’

The attack was politically motivated and well organised, stated the source, who noted that Alhan’s car had been followed three days prior to the incident.

MPs condemning the attack earlier this month suggested it may have been carried out by powerful local gangs working on the orders of political paymasters.

The source said that Alhan might not be able to be actively involved in his campaign for re-election in the Feydhoo constituency, where he intends to run as an independent after losing what he claims was an unfair party primary.

Though the MP’s family were critical of the MDP’s decision not to repeat the primary vote, local media were told this week that Alhan would continue to promote the MDP’s policy and ideology if re-elected.

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MNDF unable to recover dead diver’s body

Maldives National Defense Force (MNDF) Coast Guard Commander Colonel Mohamed Ibrahim has said that the coastguard faces huge challenges in retrieving the body of a dead diver from 100 meters underwater.

Mohamed Jameel was reported missing on February 3 while diving near Villingili Island last week.

Speaking on Maldives Broadcasting Corporation’s Raaje Miadhu, Mohamed said MNDF divers had discovered Jameel’s fishing net at 70 meters on the third day of the search. The MNDF sighted Jameel’s body at 100 meters the next day.

The MNDF held discussions with expert divers in the Maldives and provided them technical assistance to recover the body however, after diving in the area, divers told MNDF that they were not able to retrieve the body due to the depth.

The MNDF spoke to technical officials of a local ‘Whale Submarine,’ but were unable to recover the body because the currents were too strong for the submarine in the area. Mohamed said there were hanging rocks in the area and it requires a strong hydraulic arm.

According to MNDF, the search team also had foreign diving instructors dive in the area and during the two days they tried visibility was low in the area and currents were too strong.

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MPs warned of consequences of failure to pass anti-money laundering legislation

A high-level delegation from the Asia/Pacific Group on Money Laundering (APG) informed MPs on the National Security Committee yesterday of “negative consequences” for the Maldives if parliament fails to enact anti-money laundering legislation next month.

In an unofficial meeting with the committee’s chair, MP ‘Reeko’ Moosa Manik, and MPs Abdul Azeez Jamal Abubakur and Mohamed Thoriq, APG Co-chair Andrew Colvin warned that the organisation along with the Financial Action Task Force (FATF) “would be left with little option but to take certain measures that would be negative for the Maldives” should the legislation not be passed.

APG Executive Secretary Dr Gordon Hook noted that implementing laws on anti-money laundering and combating the financing of terrorism (AML/CFT) was “an obligation that the Maldives undertook voluntarily when you joined the APG in 2008” as a condition of membership.

“There are 41 countries in the APG. They include every country in the Asia/Pacific region with the exception of North Korea and three tiny Pacific states. Among those 41 countries of which Maldives is a member, you are the only country without a comprehensive AML/CFT framework,” he observed.

The anti-money laundering bill was submitted to parliament in late 2013 and sent to the National Security Committee for further review.

The absence of legislation “makes Maldives very vulnerable to money laundering and terrorist financing,” Dr Hook said.

He added that the vulnerabilities were identified by the International Monetary Fund (IMF) in a report prepared in 2011.

Maldives Monetary Authority (MMA) Assistant Governor Neeza Imad meanwhile told MPs that the Maldives received a very low rating in an assessment by the APG in 2011, after which the central bank began drafting legislation on AML/CFT.

Technical assistance was provided by the APG and the IMF, she noted.

Countries that are listed by the APG for non-compliance with its standards on AML/CFT face “hindrances” in securing foreign direct investment, opening accounts overseas, and conducting international financial transactions, Neeza said.

Consequences

Dr Hook explained that the APG in its annual meeting last year made a unanimous decision to send a high-level delegation to the Maldives “to express concern prior to the next annual meeting”.

Elaborating on the consequences, Dr Hook noted that 14 member states were subject to review last year by the FATF through the International Cooperation Review Group (ICRG).

“They have what’s called a blacklist and counter measures list. There’s a lot of countries on that list at the moment and there are varying categories on that list. And it doesn’t matter where you are on the list. There are negative consequences to it,” he said.

The consequences include having overseas credit card transactions blocked for citizens of listed countries and the blocking of incoming wire transfers from European banks, Dr Hook said.

“It would be our concern – and the co-chair has expressed that – that the Maldives should not be the subject of those negative consequences at the very time that the Maldives is working very hard to eliminate public debt and to attract foreign investment,” he continued.

The parliament upon returning from recess has “a small window of opportunity” to pass the bill in March, he suggested.

If the legislation is not enacted before the next meeting of the FATF in June, Dr Hook cautioned that the Maldives’ case would be taken under consideration.

“I can indicate that the Maldives is already on a list of jurisdictions that are under consideration by FATF,” he said.

He added that the Maldives “dodged a bullet” last year because the FATF “looked at PNG [Papa New Guinea] as an alternative.”

A review by the FATF “could take upwards to three years,” Dr Hook noted, “during which you in the Maldives would expend a huge amount of resources to try to deal with the issues.”

“You can dodge that bullet if you enact the legislation,” he advised.

Political will

Following statements by the delegation, MP Moosa Manik said that the committee could complete reviewing the legislation in “24 hours” and send it to the floor for a vote in the first week of March.

The opposition Maldivian Democratic Party MP urged the delegation to seek a commitment from the executive as the ruling coalition had “a clear majority” in the People’s Majlis.

In response, the delegation said it has met with Finance Minister Abdulla Jihad and was planning to meet Attorney General Mohamed Anil as well as officials from the Maldives Police Service and the Prosecutor General’s Office.

The MDP chairperson also alleged that some pro-government MPs could be involved in money laundering and might oppose enactment of AML/CFT laws.

MP Abdul Azeez – a member of the ruling Progressive Party of Maldives – however told the delegation that there was “no political will to delay this bill.”

“We are willing to do this and I think it is our obligation to pass this bill for the sake of the nation. There is no will to delay this purposely,” he said.

In his concluding remarks, Colvin said the delegation was encouraged by the assurances from committee members.

“We will make sure that in our report we reflect that. We will need to get back to the [APG] membership and advise them on the progress and we will look on with much interest in March and hope that the bill can make it through the parliament,” he said.

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Abdulla Muaz appointed president of media council

The Maldives Media Council (MMC) members have appointed Abdulla Muaz as their new president.

The former president of the council, Husham Mohamed, resigned on 9 February after saying that the council did not have adequate legal authority.

The MMC website stated that Muaz received six votes from the council while the one of the other two candidates got five votes.

In July 18, 2012 MPs voted 53-1 against a recommendation by the Finance Committee to dissolve the MMC and transfer its mandate to the Maldives Broadcasting Commission.

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Maldives slides on Press Freedom Index for third consecutive year

The Maldives has dropped to 108th place in the Reporters Without Borders (RSF) Press Freedom Index for 2014, marking a decline in press freedom for the third consecutive year.

The index reflects the degree of freedom that journalists, news organisations and netizens enjoy in each country and the efforts made by authorities to ensure respect for this freedom.

In February 2013, opposition aligned broadcaster Raajje TV reporter Ibrahim ‘Asward’ Waheed was nearly beaten to death, whilst the station’s offices and equipment were destroyed in an arson attack in October.

Maldives is ranked between Fiji and the Central African Republic. Fiji, at 107, experienced a coup in 2006, and the Central African Republic, at 109, is in the midst of a civil war following a coup in 2013.

Speaking to Minivan News, the President of the Maldives Journalist Association Ahmed ‘Hiriga’ Zahir said he did not understand why the Maldives’ ranking should decline as compared to 2013, claiming there have been no “extra-ordinary” changes in media freedoms.

However, the ex Maldives Media Council (MMC) President Mohamed Husham said the Maldives has seen a sudden decline in press freedom following the ousting of the country’s first democratically elected government in 2012. Journalists have been experiencing physical and psychological intimidation, he said.

Husham accused the newly elected President Abdulla Yameen Abdul Gayoom and his administration of not being responsive to the press and said he had resigned from the MMC last week in protest.

Asward is the second journalist who survived a murder attempt in the country’s recent history. In June 2012, two men slashed freelance journalist and blogger Ismail ‘Hilath’ Rasheed’s throat with a box cutter. Hilath is currently seeking political asylum abroad.

Two men wielding steel bars on a motorcycle severely beat Asward and left him for the dead. He was airlifted to Sri Lanka to undergo major surgery, and returned to the Maldives after three months of medical treatment.

He has not yet regained full sight in his right eye. Two men have been charged with assaulting Asward in the ongoing case.

In October, six masked men set fire to Raajje TV’s headquarters and destroyed the station’s offices, control room, computer systems, broadcasting and transmission equipment. The attack came hours after the station sent a written request to the police seeking protection having received reports of an impending attack.

The RSF issued a statement condemning the Maldives Police Services failure to defend the station.

“This criminal act is a direct blow to freedom of information, and we deplore the attitude of the police, who failed to do what was necessary to prevent the attack although the head of the TV station requested protection a few hours before it took place,” the statement read.

The Police Integrity Commission has recommended charges be filed against two police officers for negligence in preventing the attack.

Further, the police and President Dr Mohamed Waheed’s administration continued a boycott of Raajje TV despite a Civil Court ruling stating media boycotts to be unconstitutional. Meanwhile, the Supreme Court has ordered the police to launch an investigation against the station for alleged contempt of court.

Prior to the country’s first multi-party democratic election in 2008, the Maldives was ranked 104th – an improvement on its 2007 ranking of 129th, and 2006 – 144th. The country’s ranking in 2009-2010 reflected dramatic improvements in press freedom, rising to 51st and 52nd respectively. The ranking slipped to 73rd in 2011 and 103rd in 2012.

Despite its plunge in 2013, the Maldives is still ranked higher than regional neighbours India (140th), Sri Lanka (165th), Pakistan (158th), Bangladesh (146th), and Nepal (120th).

According to the RSF, the Indian sub-continent is the Asian region with the biggest rise in violence for journalists for the second year running.

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