Annulling GMR agreement “only option for reclaiming airport”: Dr Hassan Saeed

The only option for “reclaiming the airport from GMR” is to invalidate or cancel the concession agreement with the Indian infrastructure giant, argues Dhivehi Qaumee Party (DQP) Leader and Special Advisor to the President, Dr Hassan Saeed, in a new book (Dhivehi) released on Monday.

The book, titled: “Loss and challenges of the long-term leasing of Male’ international airport to GMR” was launched at a ceremony on Monday at the government-aligned private broadcaster DhiTV by Home Minister Dr Mohamed Jameel Ahmed, deputy leader of the DQP.

The booklet covers various issues surrounding the concession agreement awarding management and development of the international airport to a consortium of GMR Infrastructure Limited and Malaysia Airports Holdings Berhad (MAHB), alleged purported national security threats, economic and financial damages and undue advantages for the consortium.

Speaking at the book launching ceremony, Home Minister Jameel said it was the duty of the most capable people in the country to step forward and help “liberate” the nation from “grave problems” during the current “difficult times”.

Jameel claimed the former DQP presidential candidate’s book would reveal a number of facts that the Maldivian people were unaware of before the signing of the agreement.

The Home Minister added that he hoped ongoing efforts by the coalition of parties supporting the current government would yield results.

Dr Hassan Saeed was not responding to calls by Minivan News at time of press.

In his book, Saeed laid out three choices for the government: continuing the agreement in its current form, resolving disputes through dialogue or invalidating the agreement.

The DQP leader contended that cancelling the agreement and nationalising the airport would be the beneficial course of action for the nation.

“There is little hope that GMR would implement changes brought to the agreement through dialogue,” Saeed wrote. “GMR will change what is written in the agreement in black and white any time it pleases. For example, although the agreement states that 27 percent of from oil revenue must be paid to the state, it has been changed. GMR knows very well the skill to change the minds of the government of the day and its senior officials.”

Saeed further claimed that the concession agreement posed dangers to national security, in addition to being contrary to public interest and violating the constitution, the Public Finance Act and the Companies Act.

If the airport was not nationalised in the near future, since all parties in the ruling coalition opposed the deal, Saeed argued that the presidential election in 2013 would become “a referendum” on annulling the agreement.

Saeed claimed that GMR would donate large sums of money to parties in favour of keeping the agreement in place.

Conceding that cancelling the agreement would strain relations with India, Saeed contended that the move would be beneficial in the long-term to both countries.

Saeed compared cancelling the deal to “taking bitter medicine to cure a disease” or “amputating an organ to stop the spread of cancer.”

The book also likened GMR to the Indian Borah traders expelled from the Maldives by former President Ibrahim Nasir.

IFC role

Meanwhile, in June this year, a delegation from the International Finance Corporation (IFC) – a member of the World Bank group and the largest global institution focused on the private sector in developing countries – met with senior government officials to address concerns over the concession agreement.

On the bidding process, which was organised by the IFC and “evaluated based on the payment of an upfront fee as well as annual concession fees as a percentage of gross revenues to the government”, a document by the organisation explained that, “Each bidder was required to demonstrate that it had the requisite experience in developing, designing, constructing, operating, and financing airports of a similar size.

“The technical solutions proposed by the bidders were also expected to consider the specific conditions on Hulhulé Island,  including its physical and environmental constraints, and the coordination required between conventional aviation activities, seaplanes, and motor boats.

“The cornerstone of the project was the construction of a new passenger terminal expected to meet LEED silver criteria and to be carbonneutral—i.e., to minimize energy consumption and carbon emissions through the use of energy-efficiency and renewable-energy technologies, and minimize water consumption. The bidders were also asked to make specific, predefined improvements to the existing airport infrastructure, and to manage all core airport services, including the provision of fuel—a historically established role at Malé airport.”

However, in early September, the government accused the IFC of negligence during the bidding process for INIA – allegations there were rejected by the organisation amidst continued calls from government-aligned parties to renationalise the airport.

Both the government and GMR are presently involved in an arbitration case in Singapore over the airport development.

Previous publications

In August, Dr Hassan Saeed released a book in English entitled, “Democracy betrayed: behind the mask of the island President”.

Speaking to local media at the book’s launch at the studios of private broadcaster Villa Television (VTV), DQP Secretary General Abdullah Ameen said the book detailed reasons why former President Nasheed had to resign on February 7.

Ameen added that the reasons mentioned in the book included the controversial detention of Criminal Court Chief Judge Abdulla Mohamed and allegations that Nasheed wished to “destroy the values of Islam” in the country.

In the months leading up to the controversial transfer of power on February 7, the DQP published a pamphlet titled ‘President Nasheed’s devious plot to destroy the Islamic faith of Maldivians’.

In an interview with UK’s the Guardian newspaper recently, Saeed said the charges were justified. “You look at his behaviour, his actions, you have to come to that conclusion,” Saeed said.

The Nasheed administration had slammed the publication at the time for containing “extremist, bigoted and hate-filled rhetoric”. The pamphlet and religious-based allegations also led to successive attempts by the Nasheed administration to arrest two senior members of the party and sparked a debate on freedom of expression and hate speech in the Maldives.

Saeed was also a co-author of the book Freedom of Religion, Apostasy and Islam, which discussed the issue of apostasy in Islam and stirred controversy during the 2008 presidential election.

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Transparency Maldives conducts RTI Symposium with state stakeholders

At a symposium on promoting right to information(RTI) organised by local anti-corruption NGO, Transparency Maldives, discussions were held on the importance of establishing a strong RTI regime in the country.

A variety of sessions, including RTI and democracy, administering an RTI regime, local governance and RTI, and proactive disclosure by the state were discussed at this symposium which aimed to create awareness among policy makers, public officials, civil society and media.

“We invited high level officials from relevant state institutions to the symposium. Our hope is that we can form partnerships to further promote RTI and advocate for passing the RTI bill currently in parliament with the best practices included in it,” Transparency Maldives Advocacy Manager Aiman Rasheed told Minivan News.

The NGO further said that they had invited experts from around the world to impart information about the importance of establishing a robust RTI law.

Speakers at the event included Senior Legal Officer for Freedom of Information and Expression at the Open Society Justice Initiative Sandra Coliver, Deputy Executive Director of the Open Democracy Advice Centre Mukelani Dimba, Legal Officer for the Centre for Law and Democracy Michael Karanicolas, Programme Coordinator of Access to Information Programme at the Commonwealth Human Rights Initiative Venkatesh Nayak, former Information Commissioner at the Indian Central Information Commission Shailesh Gandhi and Chairperson of local NGO Democracy House Mohamed Anil.

Speaker of Parliament, Abdulla Shahid, chief guest at the symposium, said in his speech that freedom of information is a concept alien to the local society. He said that it had traditionally been reserved for the privileged and powerful classes.

“Our society tended to make very deliberate demarcations between those who need to know, who should know and those who need not know,” he said, further adding, “I strongly believe access of information must be an indispensable part of any true democracy.”

Right to Information has been regulated in the Maldives from January 2009 under a presidential decree, following the failure to pass a similar bill in parliament in 2007. The current regulation covers only the ministries under the executive.

“In addition to the executive, the RTI Act should also cover the parliament, the judiciary, the independent institutions, the state companies, NGOs and utility companies,” said Rasheed in his speech.

He also added that there should not be “unnecessary obstacles” for information seekers, and that there should not be “blanket secrecy” granted to any institution.

A new RTI Bill was submitted to parliament in November 2009, which has since been pending at the Social Affairs Committee. Speaking at Monday’s symposium, Shahid said that Chair of the Social Affairs Committee had assured him that he was “very hopeful” the bill would be adopted before the end of the year.

In addition to conducting the symposium, Transparency Maldives has previously coordinated trainings on RTI for civil society and media, produced a critique of the RTI Bill at the Parliament’s Social Affairs Committee and received endorsements for their position on RTI from the Anti Corruption Commission, the Human Rights Commission of the Maldives, the Auditor General and the Ministry of Human Rights and Gender.

The NGO has also stated that it further intends to conduct workshops on RTI in 13 atolls and to assist in the establishment of a system through information technology which aims to increase convenience for the public in obtaining information from the state.

Minivan News tried contacting Chair of the Social Affairs Committee PPM MP Abdulla Maseeh Mohamed and Co-Chair DRP MP Hassan Latheef, but neither was responding to calls at the time of press.

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Parliament approves ambassadors to China, India, Australia and Philippines

Parliament approved ambassadors to India and China as well as a non-resident ambassador to Australia and the Philippines at today’s sitting of the People’s Majlis, following evaluation of the nominees by the National Security committee.

Mohamed Naseer, of M. Funfini, Male’, was approved as ambassador to India with 50 votes in favour, two against and one abstention while Mohamed Rasheed, of H. Carnationvilla, Male’, was approved as ambassador to China with 49 votes in favour and one against.

Current ambassador to Sri Lanka, Hussain Shihab, of M. Kali, Male’, was approved as the non-resident ambassador to Australia and the Philippines with 49 votes in favour and three against while current ambassador to the United States, Hassan Sareer, M. West Side, Male’, was approved as the permanent representative to the UN with 52 votes in favour and two against.

Both ambassadors will continue to serve in their previous capacities in addition to the new roles.

At today’s sitting, MPs also voted unanimously to accept an amendment to the Public Finance Act proposed by Dhivehi Rayyithunge Party (DRP) MP Rozaina Adam stipulating that the state budget must be submitted to parliament two months ahead of the end of the financial year.

Following the vote to accept the legislation after preliminary debates, the amendment bill was sent to the Economic Affairs Committee for further review.

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Rising oil price forces STELCO to call in US$10 million in unpaid government bills

Chief Technical Officer of the State Electricity Company (STELCO) Dr Zaid Mohamed has said that the problem of state run companies not paying their electricity bills is a long term one, made more urgent by recent rises in the price of oil.

“This problem has gone for a long time – a couple of years but lately the bills have been getting higher,” said Zaid.

Zaid said that the recent rise in fuel prices was beginning to threaten the company’s ability to operate and so the board made the decision to disconnect certain companies.

The most recent figures from the Maldives Monetary Authority (MMA) show the price of crude oil to have risen 9 percent in the last month and 6 percent between August 2011 and August 2012.

STELCO has since started discussions with the government to resolve the issue.

“We have payments to make to our suppliers,” said Zaid, who was reluctant to discuss individual clients while the company was holding discussions with the government.

However, local media reported earlier this week that STELCO had sent staff to both the Maldives Broadcasting Corporation (MBC) and the headquarters of Malé City Council (MCC) to disconnect their electricity.

MCC councillor Kareem told Minivan News that the money had now been sent to the finance ministry.

MBC have released a statement blaming the government for a lack of financial assistance resulting in the possible suspension of its services – Television Maldives (TVM) and Voice of Maldives (VOM), reported Haveeru.

The statement added that it had received warnings for non-payment of bills from several other service providers.

“The average monthly revenue of this corporation during the year has been MVR1.6 million. Due to the highlighted financial difficulties most services and other items had been sought on credit,” the statement was reported to have read.

Minivan News was unable to obtain comment from the Finance Ministry regarding this matter at the time of press.

Haveeru reported that STELCO was owed MVR7.1 million (US$460,000) and MVR6.8 million (US$440,000) by MBC and the MCC, respectively.

The paper discovered that STELCO is owed MVR150 million (US$10 million) from various state institutions, including the Malé Health Service Corporation (MHSC), the police and the Maldives National Defence Force (MNDF).

Oil dependency

The Maldives dependency on oil was discussed yesterday by President Dr Mohamed Waheed Hassan at the World Energy Forum in Dubai.

“A development path primarily based on expensive diesel generated electricity is unsustainable in any country, let alone a small country like Maldives,” said Waheed at the forum’s opening ceremony.

“Today, we spend the equivalent of 20 percent of our GDP on diesel for electricity and transportation. We have already reached the point where the current expenditure on oil has become an obstacle to economic growth and development,” he continued.

President Waheed explained that the current price of 35-70 US cents per KW hour meant that the government was being forced to provide “heavy subsidies” to consumers, giving little option but to move towards a low carbon alternative.

The Maldives Energy Authority recently announced that its US$138 million project would convert ten islands within the country entirely to renewable energy with 30 percent of the total energy demands of a further 30 islands provided from renewable sources.

“Under this strategy, through installation of up to 27 megawatts of renewable electricity, we will be saving on the use of 22 million liters of diesel per year and reduce up to 65,000 tons of carbon dioxide emissions each year,” Waheed explained in Dubai.

“In addition we will be making significant savings from the heavy fuel and other electricity usage subsidies that are currently in place,” he added.

“We are mindful that these programmes cannot be implemented without the engagement of the private sector. In order to make the investment environment more favorable for the private investors, a number of attractive financial guarantee instruments and measures will be adopted.”

Some of the key behind the Scaling-Up Renewable Energy Program (SREP) for the former government said earlier this year that the project had fallen through after political instability following February’s controversial transfer of power had deterred potential investors in the scheme.

The SREP plan revealed the scale of the problem: “If the oil price rises to $150/bbl by 2020, and consumption grows by four percent per annum, oil imports are expected to reach around US$700 million.”

This figure equates to around US$700 million or almost US$2,000 per head of population, whose per capita income – based on the most recent government figures – is just under US$4000.

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Gangs thriving amid political instability, political support: Guardian

Political turmoil in the Maldives is fueling gang violence and criminal impunity, reports the UK’s Guardian newspaper.

The gangs are thriving not only because of the drug trade, but due to political parties employing gang members to assault opponents, destroy property, and boost numbers at rallies.

“It’s been a good few months. We’ve been doing well,” one gang leader told Guardian journalist Jason Burke, revealing that the gang had been “providing political parties with muscle to intimidate opponents, swell meetings and provide security.”

“There’s so much demand, we’ve had to appoint someone just to run that side of our operations. Requests are coming in all the time,” the gang leader told the newspaper.

According to the Guardian’s report, “Ibrahim’s outfit of more than 70 members works around the clock, trafficking heroin, enforcing its territory and carrying out what he calls ‘political work’. Ibrahim asks for MVR 10,000 (US$650) for 10 of his gang members to attend a demonstration for an hour. The rate charged for roughing up a political opponent – damaging his car or house – is between MVR 25,000 and MVR 50,000 (US$1650-3250), but for a stabbing the price would be much higher: US$25,000 at least.

“It’s not bad, enough to pay our expenses for a month,” Ibrahim told the paper.

The newspaper noted that corruption meant that “police officers can easily be persuaded to ‘lose’ evidence and judges can be bought off. Nor is prison much of a deterrent. Phones, cigarettes, DVDs, ‘anything except women’ is easily available,” the gang leader informed the paper.

The Guardian’s article echoes the findings of a report into the Maldives’ gangs by the Asia Foundation, published last month, which revealed that politicians and businessmen are paying gangs tens of thousands of rufiya to assault rivals, damage property, and in some cases have them killed.

“Political and business elites exploit gangs to carry out a range of illegal activities that serve their political or business interests in exchange for financing the gangs,” stated the report, which collected data through 20 focus groups and 24 in-depth interviews with gang members.

Politicians are described as being involved in symbiotic relationships with gangs, who depend on the gangs to suppress opponents and carry out tasks to help maintain their popularity or to divert media attention from political issues.

“Politicians have asked us to cut the TVM cable for MVR 25,000 (US$1620), to light up a bus for MVR 10,000 (US$650). Also in the recent political riots we were involved in things like burning the garbage collection area,” said one gang member.

“We were given some amount of money, two of us and the 10 people who accompanied us were paid some amount, we had to set fire and run from the spot and be seen in another area. We got paid to do this by a political group. Sometimes in return for the work we do, we also get to party in their safari boats with girls and alcohol,” they added.

In other cases, gang members were paid MVR 20,000 (US$1230) to destroy shop windows. Interviewees also stated that being offered immunity from prosecution was normally part of this deal.

Leaders, who deal directly with the politicians, were reported as earning up to MVR 1 million (US$65,000) a month via such activities.

One member even described instances where murder contracts were handed out.

“We may be given a file with all the information about the person and be told and told we may be paid in millions to carry out the killing,” explained one member.

The gang leader who spoke to the Guardian said that he had made enough money and was now looking for a quieter life: “I’m not sure where I’ll go. Maybe [Sri] Lanka. Maybe India. Out of here anyway,” he told the paper.

“People around the world [need] to know how things are here. This is a paradise, but not everyone is an angel. Things have gone this far because of politics,” he said.

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High Court orders man who swindled Swiss woman to pay back MVR 5.4 million

The High Court has dismissed an appeal and ordered a Maldivian national to pay back MVR 5.4 million (US$350,000) he took from a Swiss woman after promising to marry her.

In June, the Civil Court ordered a man identified by the court as Ibrahim Ali to pay the Swiss woman the money after he was found guilty of swindling it from her.

The Swiss woman alleged that Ibrahim had taken money from her on several occasions in large sums, and had promised that he would marry her.

She also told the court that Ibrahim had told her that he was single, but that she had later found out that he was married and had children.

The Civil Court ruling ordered Ibrahim to pay back US$58,800, 7,000 euros and 252,196.95 Swiss francs he had taken from The Swiss woman since 2007.

The court also ordered Ibrahim to pay back a sum of MVR 1,500 (US$ 97.27) in legal fees and 2,420 Swiss Francs in bank transfer charges.

Ibrahim however appealed the Civil Court’s verdict at the High Court.

In the appeal, Ibrahim argued that the Civil Court had failed to establish that the sum of money had to be paid back, or that the money he received was by his request.

He also contended that the Civil Court had failed to prove that the money was deposited in return for his agreement to marry the Swiss woman, and argued that there was no legal basis for the court to order him to reimburse the plaintiff.

However, the High Court in its ruling on Sunday upheld the Civil Court’s decision and stated that documents presented to the court clearly implied that there were money transfers taking place since 2007.

The ruling further stated that the Swiss woman had said in court that she had sent the money because Ibrahim had told her that he was unmarried.

In its ruling the High Court stated that Ibrahim had build a house from the money he had fraudulently collected, which was also built  on the understanding that he would marry the Swiss woman.

Ibrahim was not present at the hearings, and the three-judge panel issued the verdict in absentia.

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Government confident of meeting 2012 tourism goals despite “political turmoil”

Maldives tourism authorities remain confident the country will meet its ambition to welcome one million visitors to the country during 2012 despite ongoing “political turmoil” in the Indian Ocean over the last year.

The country plans over the next 12 months to hold a number of celebrations to commemorate 40 years since its travel industry was founded.

Minister of Tourism, Arts and Culture Ahmed Adheeb has told media in a press conference on Monday that should the Maldives achieve its aims of attracting one million visitors to the country during 2012, it could be effectively seen as being equivalent to welcoming two million arrivals due to the challenges of overcoming the “political turmoil” following February’s controversial transfer of power.

“We are closing in on that target with a lot of challenges. We are working with major obstacles due to the present crisis in the country,” Adheeb was quoted as saying.

The comments were made as former President Mohamed Nasheed, who alleges he was forced to resign from office on February 7 this year under “duress”, pleaded for tourists to “be more aware” of the political problems facing the Maldives.

“Tourists should be more aware of what is going on here. They may think they are remote from Male’ [the capital] but many of the staff are from here,” Nasheed told the UK-based Guardian newspaper this week.

The vast majority of tourists coming to the Maldives stay at its secluded island resorts that are classed as uninhabited, therefore making them exempt from local laws that outlaw the sale and consumption of alcohol and pork products, as well as openly practising any faith other than Sunni Islam. This resort model also keeps most tourists away from the partisan politics of the country, as well as the  unrest that occurred in the capital of Male’ and other islands earlier this year.

Nasheed had previously called for a tourism boycott of the Maldives, as both himself and his supporters continue to question the legitimacy of the government of President Dr Mohamed Waheeed Hassan, his former vice president.

However, these calls were soon dropped by Nasheed and supporters of the now opposition Maldivian Democratic Party (MDP).  The party are still pressing for early elections this year, despite a Commonwealth-backed Commission of National Inquiry (CNI) concluding the transfer of power in February was constitutional.

Despite fears about the impact of political uncertainty, Deputy Tourism Minister Mohamed Maleeh Jamal claimed back in September “the hard days” were over for the Maldives tourism industry following the release of the CNI’s findings.

The MDP has itself accepted some of the recommendations of the CNI report relating to judicial reform and holding security officials accountable, despite maintaining “concerns” over how the report was compiled and the potential “comical” implications of its conclusions.

Accepting the challenges faced by the tourism industry, Adheeb claimed that the entire industry was united in seeking to boost the prospects for tourism in the Maldives.

“The industry is driven by itself. This industry is mature enough to continue without any government interference. The difference between the former government and us is we won’t micro manage the industry. We are facilitating the process within the contours of the laws and regulations,” he told local media.

Amidst these claims, the Maldives last Thursday (October 18) picked up a number of accolades at the World Travel Awards (WTA) in Singapore that Adheeb claimed highlighted the strength of the country compared to other Indian Ocean destinations.

“This shows that Maldives is a stronger tourist destination than other Indian Ocean island nations such as Seychelles, Mauritius or Madagascar,” he was quoted as telling Sun Online.

The accolades picked up by the Maldives at this year’s WTA included awards for being the leading destination in the Indian Ocean for cruise and honeymoon holidays.  Also honoured was Ibrahim Nasir International Airport (INIA) – presently at the centre of legal and political wrangling – which took the prize for leading regional airport.

Over half way

As the Maldives also commences a number of events to celebrate 40 years since the inception of the country’s tourism, official figures from August showed the Maldives was over half way to meeting its million visitor aims for 2012.

Arrivals to the Maldives between January and August 2012 totalled 614,802 people – an increase of 2.9 percent compared to the same period during 2011, Ministry of Tourism, Arts and Culture figures showed.

Deputy Minister Maleeh was unable to respond to Minivan News about Adheeb’s comments and the challenges facing the wider tourism industry at the time of press.

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Former DRP Secretary General replaces sacked Felivaru MD

Former Secretary General of the Dhivehi Rayyithunge Party (DRP) and long-serving senior official of the Fisheries Ministry, Hassan Rasheed of G. Sherenade, was appointed Managing Director of Felivaru Fisheries Ltd yesterday, according to local media reports.

Rasheed, currently a member of the Progressive Party of Maldives (PPM), replaces former MD Ali Ahmed, who was sacked from the post after the Anti-Corruption Commission (ACC) forwarded a corruption case against the senior official for prosecution.

Former Chairman of Felivaru, Mohamed Imthiyaz, a member of the government-aligned Jumhooree Party (JP), was also dismissed from his post on September 25 following allegations of corruption and misappropriation of funds.

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Fenaka Corporation takes over four island powerhouses

The government’s utilities company, Fenaka Corporation, signed agreements yesterday to take over four island powerhouses.

At a ceremony yesterday, agreements were signed with the powerhouses of Haa Alif Vashafaru, Meemu Mulaku, Meemu Naalaafushi and Meemu Dhiggaru.

Speaking to press following the ceremony, Fenaka Managing Director Mohamed Nimal said the corporation expected to receive funds in next year’s budget for electricity and water works in 136 islands.

Nimal revealed that the corporation inherited a debt of MVR 472 million (US$30 million). The Progressive Party of Maldives (PPM) member said the corporation has decided to forward a number of corruption cases from the defunct utility companies to the Anti-Corruption Commission (ACC) on Thursday.

A number of projects had been carried out with no documentation or records, Nimal said, including renting an office for the former Northern Utility Company without a bidding process.

Nimal also claimed that 75 percent of Fenaka Corporation’s 1,400 employees were members of the Maldivian Democratic Party (MDP). He added that some MDP members had been sacked due to harassment of staff from other political parties and actions detrimental to the corporation.

In June, President Dr Mohamed Waheed Hassan Manik established Fenaka by presidential decree to take over the seven utility companies, created during the administration of former President Mohamed Nasheed under the ousted MDP government’s policy of dividing the nation into seven provinces for decentralised administration.

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