Police Superintendents ‘MC’ Hameed and Anees relieved of duty

The Police Disciplinary Board has decided to relieve Chief Superintendent ‘MC’ Mohamed Hameed and Superintendent Ibrahim Adhnan of duty, according to a statement issued by police.

The Disciplinary Board has also decided to demote Superintendent ‘Lady’ Ibrahim Manik to Chief Inspector of Police, and to remove the disciplinary badge on his uniform.

The statement said that the Disciplinary Board summoned the senior officers before making the decision, and that they were given the opportunity to speak in their defense as well as appoint lawyers.

However, the statement did not specify the allegations against the officers, or why the Disciplinary Board took action against them.

Newspaper Haveeru claimed that the decision was made by the Disciplinary Board on allegations that the three officers had “worked for the political benefit of a certain party” using their police roles.

Hameed, Adhnan and ‘Lady’ Ibrahim Manik were among only a few police senior officers who did not join the events of February 7, which saw mutinying police hand out riot gear to opposition demonstrators and launch an all-out assault on the main military headquarters. The state broadcaster was also stormed.

In June, Anees sued the Maldives Police Service seeking compensation for medical treatment of injuries sustained after mutinying police officers allegedly attacked him in Republic Square and inside police headquarters on February 7.

Adhnan Anees, Ibrahim Manik and Chief Superintendent Mohamed Jinah were among senior officers allegedly assaulted on February 7.

Meanwhile on June 14, police arrested Chief Superintendent Hameed, former head of police intelligence, following his contribution to the Maldivian Democratic Party (MDP)’s report into the controversial transfer of power on February 7.

Following reports that police who cooperated with the Ameen-Aslam report were being rounded up and detained, police initially denied allegations of a “witch hunt” and issued a statement accusing the media of “circulating baseless and false reports”. However court warrants for the arrest of Hameed and Staff Sergeant Ahmed Naseer were subsequently leaked.

The Criminal Court arrest warrant stated that Hameed was accused of “misusing” or leaking information acquired through his position for “the political gain of a particular group”, and participating in the compilation of the “misleading” Ameen-Aslam report, which undermines “the public’s respect for the security services.”

It justified his detention on the grounds that Hameed might influence witnesses and attempt to get rid of evidence as “others are suspected of involvement in the case.”

Police issued a statement that day confirming that Hameed had been arrested on charges of leaking “important information collected by the Maldives Police Services intelligence related to national security” as well as providing “untrue and false information” intended to benefit a specific [political] party, which could pose a threat to national security and create “divisions between the police and the public.”

Hameed’s actions were in violation of the Police Act, the statement insisted.

Following his detention in July, the family of Chief Superintendent Hameed expressed concern over his detention and noted that he was widely respected in the force as “a man of principle”. He has been in the service for over 17 years and has a masters in policing, intelligence and counter-terrorism.

Following the raid and extrajudicial dismantling of the MDP’s protest site at Usfasgandu on May 29, Hameed tweeted: ” Called a ‘baaghee’ [traitor] on the road twice today. Rightly so when our own actions are unjustifiable and thuggery like!”

After his dismissal last night, Hameed tweeted: “Ayan: Daddy, why were you fired from your job? My response: Because I did not join the bad guys.

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Comment: When Humpty Dumpty falls

When a traffic policeman raises his hand, encased in neat white gloves, all traffic automatically comes to a halt.

Obedience is ingrained in us. We barely stop to think why. Had it been otherwise we would no doubt be in the middle of a perpetual traffic jam.

When a policeman raises his hand, it is not a simple gesture of someone lifting his hand. Behind the gesture lies the authority of the people, a functioning system, an elected government and the goodwill of the masses. The combined moral authority of the people are reflected in that simple gesture.

Today, life is no longer simple anymore. Until February 7, 2012, the Maldivian people lived with the assurance that their interests were represented by a government elected by the majority; that the people’s will was reflected in the way they were governed. Everything turned topsy-turvy on February 7, when President Nasheed resigned office and his Vice President Dr Mohamed Waheed Hassan Manik assumed the mantle of government.

The transition of power would not have caused ripples or raised eye-brows unless the very next day President Nasheed claimed that he had resigned under duress. His resignation had been forced.

In the light of President Nasheed’s statement and after a clear look at the events leading to his ‘resignation’, it wasn’t difficult to believe that indeed Nasheed’s resignation was coerced. What followed afterwards – the appointment of Nazim as the Defense Minister and Abdulla Riyaz as the Police Commissioner – removed any reservations to the contrary.

The security forces – comprising of the Maldives Police Service and the Maldives National Defense Force (MNDF) were instrumental in forcing the President’s resignation. All the circumstantial evidence combined with the data compiled by the media further confirmed Nasheed’s allegations.

All doubts were removed when former police sergeant and Acting Deputy Leader of the PPM, Umar Naseer – known to friends and foes alike as a weapon of mass destruction –  blatantly confirmed his active involvement in the overthrow of Nasheed’s government on national TV – “spilling the beans”, as CNN aptly defined it.

During his three years in office President Nasheed worked hard to deliver on his election pledges. He was a symbol of hope for the downtrodden masses whose cause he championed. For 30 years the Maldivian people had lived a hand-to-mouth existence, brutally repressed by the dictator Gayoom. According to the UN 42 percent of the people lived below the poverty line.

Given the role played by the security forces in ousting a vastly popular government, the police and the military have become villains overnight. When the policeman lifts his white-gloved hand he is no longer able to covey the moral authority to instill obedience amongst the masses.

Up until February 7, the military were looked up to by the people for their professionalism and generally enjoyed the respect of the population. Even the youth who sought a career in the armed services were proud to be a part of this elite corps. The military, as a rule, upheld high ethical standards.

Except for a few among the military high command and the police services, the security forces were uninvolved in the intrigue that brought down Nasheed’s government. There was little doubt that the top brass were bought; they had sold not only their souls but had betrayed the confidence and trust of their subordinates, the rank and file of the armed forces.

Those youth, who had pledged their lives to uphold the tenets of Islam and defend the country were being labeled ‘turncoats’, a title they did not deserve as they were as much in the dark as everyone else. The greed of a few commanders who defiled the military’s code of honor had put the stamp of betrayal on the entire armed forces.

The coup has had certain unforeseen influences on the public psyche too. The MDP, led by the ousted President Nasheed doubled in membership overnight. Quite suddenly, public involvement grew by leaps and bounds.

Consequently, civil disobedience has taken root in the public psyche. The security forces are openly scoffed at by the public – the label ‘rebel’, ‘turncoat’, now precedes any description of the police and the military.

Maldivians, as a rule, are apt to shy away from violence. Even under the present trying circumstances violence has yet to be a part of the equation. Even though there have been isolated incidents of violent behavior both on the part of the police and the public, violence is frowned upon by all parties concerned.

There is a very clear demarcation line between civil disobedience and civil war. Unlike Syria, Egypt or other Muslim States where the freedom movement has escalated into unbridled violence and civil war, the Maldives is unlikely to go the same route.

Even if the worst case scenario is considered – let’s say Waheed’s regime refuses to set an early election date – with the security forces unable to contain a public uprising and the use of force becomes mandatory, the decision is likely to result in the fall of the government.

A limited population ensures a close-knit society. Members of the security forces and the general public are bound by close family ties making it virtually impossible for any member of the security forces to implement a ‘shoot order’ even if President Waheed were dumb enough or desperate enough to issue such an order.

Any member of the security forces taking aim on a member of the public will in all probability find his colleague’s gun aimed at his own head. Who else but a madman will aim at a crowd, when the likelihood of shooting a brother, sister, cousin or a close relative is almost a dead certainty?

Civil disobedience, led by the MDP, is here to stay. The protests are gaining ground day by day; each day resulting in the increase in members on the streets. The cycle has taken on a natural life of its own and the pace is being set by the members arrested on a daily basis.

It is only a matter of time before push comes to shove. Waheed’s regime, tottering on the brink, is clearly headed up the creek without a paddle. For Waheed, there is but a single option. Like Humpty Dumpty, he can only fall.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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Government announces August public holidays in lead up to Eid

The government has declared Wednesday August 22 and Thursday August 23 as public holidays in order to extend the weekend leading up to the Eid holidays.

The President’s Office said that the extended weekend would come in place of public holidays assigned for September 1 and September 15 this year. These two dates will instead be working days for government offices.

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MDP suspends demonstrations to “facilitate meaningful dialogue”

The Maldivian Democratic Party (MDP) yesterday announced it would be suspending its anti-government protests and demonstrations in a bid to open dialogue with the government in the closing weeks of Ramadan.

In a press release, party spokesman Hamid Abdul Ghafoor stated that the demonstrations would be halted in order to “facilitate meaningful political dialogue to end the political crisis the country faces.”

“The MDP strongly believes unless there is political dialogue and agreement at a political level, the Maldives will not be able to come out of the current political crisis. In this regard, the MDP decides to halt its demonstrations to sincerely re-assure its commitment to meaningful dialogue,” read the statement.

Whilst Minivan News was today unable to elicit a response from the President’s Office, the office’s spokesman Abbas Adil Riza has expressed his scepticism in the local media.

“Though MDP tells the media that they’ve stopped their direct action protests – considering the actions of the party’s members, it’s hard to trust them. There’s a lot of intimidation,” Abbas told Haveeru.

“They’re attacking the vehicles belonging to ministers, harassing their families, disrespecting mosques, so the government needs assurance that the harassing will stop. We need to see it happen from their actions,” he continued.

The protests have been almost continuous since the resignation of President Mohamed Nasheed on February 7 – a resignation the party continue to allege was forced.

February 8 saw clashes between Nasheed’s supporters and the police, whose mutiny had brought to the boil what had been a simmering political crisis.

Tensions were heightened once more last month as the MDP embarked on a campaign of protests on Chaandanhee Magu in the political and military heart of the capital. More clashes with the police resulted in multiple arrests and injuries which, again, provoked international consternation.

The persistent activities of the anti-government activists have regularly been cited as an impediment to high-level political dialogue.

Following the tense exchanges on Chaandanhee Magu, President Waheed stated that he would not engage in discussions with the MDP whilst it continued to back street protests.

Chances for dialogue?

The most prominent vehicle for dialogue since late February has been the all-party ‘roadmap’ talks initiated by current President Dr Mohamed Waheed Hassan with the backing of Indian diplomats and United Nations mediators.

After a series of failed attempts to define a mutually acceptable agenda for the discussions, six points were agreed upon in May to be dealt with in consequential order.

The MDP’s protests since February have focussed predominantly on calls for early presidential elections. The discussion of a date for these elections was agreed upon as the last of the six points to be discussed in the roadmap negotiations.

The first of these points – public order and stability – resulted in a 30-point list of demands being presented to the MDP delegates by pro-government parties during the talks at Bandos Island Resort in June.

These demands, which included calls for the MDP to desist from using “black magic” and “erotic tools”, were deemed by the MDP to be indicative of the coalition’s lack of seriousness in progressing through the agreed agenda.

In yesterday’s statement, Ghafoor described some of these points as “plainly farcical”.

“We are committed to ensure an environment conducive to hold political talks at the highest level. Therefore, today, the MDP National Executive Committee decided unilaterally to halt the demonstrations. We hope leaders of political parties take this time to seriously engage in dialogue”.

In a further attempt to expedite progressive talks between political groups in the country, Nasheed last month offered an apology to former President Gayoom for accusing the 30-year ruler of orchestrating a coup d’etat.

Gayoom, leader of the parliament’s second largest party, the Progressive Party of Maldives (PPM), had stated that he would be unwilling to sit down and negotiate with a man who made such accusations.

The roadmap talks have formed one half of a two-pronged approach to resolving the political crisis in the Maldives. The Commission of National Inquiry (CNI), after much coaxing from the international community, was established to conduct an investigation into the events up to and including Nasheed’s resignation.

The Commission is expected to conclude its investigations by August 31 after having received testimony from a reported 244 people, including President Waheed himself.

Abbas told Sun Online that he expected the MDP would merely halt its current activities in order to prepare for a mass protest on the day the CNI report is published.

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Former finance chief questions timing of MMA private sector T-bill reform

Former Finance Minister Ahmed Inaz has questioned the timing of the Maldives Monetary Authority’s (MMA’s) decision to offer Treasury Bills (T-bills) to the wider private sector claiming it would compound the country’s budget deficit rather than directly address state debt.

Inaz, who served as Finance Minister under the administration of former President Mohamed Nasheed, said that until the present government put a lid on its expenditure to levels agreed in the national budgets of the last two or three years – extending T-bills to the wider private sector in the current climate would only prolong economic uncertainty.

The comments were made as local media reported yesterday that the Maldives Monetary Authority (MMA) had opted to allow “private groups” to purchase T-bills.

Such bills, which are sold by governments all over the world, serve as a short-term debt obligation backed by sovereign states. In the Maldives, T-bills are said to have a maximum maturity of six months, in which time they must be repaid, according to Inaz.

The economy, particularly national debt, has become an increasingly important issue for the coalition government of President Dr Mohamed Waheed Hassan.

Parliament’s Financial Committee in May released projection that the Maldives’ budget deficit will reach 27 percent of the GDP by the end of 2012, a 175 percent increase on earlier forecasts.

In recent weeks, the government has downplayed delayed payments of civil servant salaries as being the result of a banking “administrative error”, while also admitting to facing “economic difficulties” in covering months of outstanding premium payments resulting from the Aasandha universal healthcare programme.

Yesterday, Abdulla Yameen, parliamentary leader of the government-aligned Progressive Party of Maldives (PPM) told local media that the country was in “dire need” of financial assistance from the international community to help set right the economy.

Yameen and fellow PPM MP and Spokesperson Ahmed Mahlouf were not responding to calls from Minivan News today to clarify the comments.

T-bill extension

Finance Minister Abdulla Jihad said the decision to extend the availability of T-bills to private enterprise was a condition outlined by the Asia Development Bank (ADB) to secure loan funding. He was unable to give the exact amount of the loan at the time of press.

According to Jihad, T-bills had been previously only open to private financial institutions, a market place that he said was presently “saturated” in terms of demand, limiting the amount of T-bills the institutions were willing, or had the capacity, to purchase.

“The issue was to open the market to private groups,” he said.

In regards to criticism from the previous administration about state spending, the Finance Minister pointed to a recent order for all government institutions to immediately reduce their budgets by 15 percent – a pledge Jihad stressed had been successfully realised.

However, former Finance Minister Inaz said by that extending the T-bill scheme without addressing wider concerns of groups like the International Monetary Fund (IMF) over government expenditure, authorities were only prolonging current economic instability rather than tackling the present spending shortfall.

“My reaction to the MMA’s proposals is that issuing T-bills to the private sector or these private groups is not going to help the situation. The budget deficit should be reduced at all costs. Then these T-bills could be introduced as a way to meet capital expenditure,” he said.

“Expenditure should of course not be reduced to a level that would kill off independent institutions and the democratic reform of recent years. But the best way forward is to maintain expenditure say to the levels set in the 2010 or 2011 budget, while increasing income.”

While accepting that current political tensions between the government and the now opposition Maldivian Democratic Party (MDP) made it difficult reach parliamentary agreement, Inaz said that the Majlis would need to agree on any changes to the state budget.

Inaz also called on policy makers to adopt a “broader mindset” by reviewing the present government’s decision, announced earlier this year, to restore import duties and reduce GST.

He believed that taxation measures such as the GST remained the easiest solution to boosting revenue.

Inaz contended that a focus on more direct taxation would allow the government to serve as a facilitator to encourage the private sector to generate economic activity.

T-Bill reliance under Nasheed

Despite concern over the timing of the MMA’s proposals, Inaz conceded that the previous administration had itself relied on debt financed through the sale of T-bills that amounted to about Rf 1.4billion in 2011. However, he claimed that the final budget passed under the Nasheed government in December 2011 was designed to reduce the nation’s budget deficit, while also cutting down on short-term debt obligations such as T-bills.

“The T-bills issued in 2011 amounted to Rf1.4 billion (US$90.8 million). We foresaw the need growing every year, but this is very difficult to maintain as the maximum maturity for T-bills is six months, during which time they must be paid back,” he said

However, Inaz added that before the controversial transfer of power in February that brought President Waheed into office, the Nasheed government had pledged to reduce its reliance on T-bills by focusing on generating revenue through economic reforms such as GST.

“This year though we were set to reduce our reliance on T-bills to about Rf 700 million (US$45.4 million) with a view to cutting back completely through repayments in the next two years or so.”

Local media reported in April last year that government debt accrued through the sale of T-bills to banks and financial enterprises was estimated to be equivalent to more than a third of this year’s Rf 12 billion (US$778.2 million) national budget, according to Maldives Monetary Authority (MMA) figures released at the time.

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MNDF and govt register joint venture for investment including tourism

With plans to generate revenue to fund welfare services for the armed forces, the government and Maldives National Defense Force (MNDF) has registered a joint venture company aiming to invest  in various businesses, including the tourism industry.

The “MNDF Welfare Company” registered at the Economic Ministry on Tuesday, is 10 percent government owned, and 90 percent by Sifco, MNDF ‘s cooperative society, which provides welfare services for defense force officers and their families,  including subsidised products and loans.

Speaking to Minivan News about the company, MNDF Spokesperson Major Abdul Raheem said the MNDF have been discussing the idea of expanding the cooperative society’s works through a registered company over the past 10 years.

He observed that the main objective of registering the company was to invest and run businesses, which can subsequently generate revenues to contribute to welfare services provided to the 7000 strong-armed force body.

“The allocated state budget is not enough to fund the welfare services. We are facing several financial problems. Therefore, our plan is to register the joint venture with the government and increase profitable business activities,” Major Abdul Raheem explained.

He added that the MDNF Welfare company was registered within legal boundaries, and the company’s board and other necessary decisions will be taken legally and without discriminating between any officers.

MNDF joining tourism?

Asked about the sort of businesses the company intends to invest in, the MNDF spokersperson responded that the discussions are underway and will be announced soon.

Local media Sun meanwhile reported that the company was targeting investment in the country’s main industry, tourism, and claimed islands have been leased for resort development.

Raheem did not verify these reports but commented: “It is hard to confirm specifically which business  it will do, but I cannot say tourism is not an option.”

Following reports suggesting the MNDF’ is venturing into the country’s tourism sector, government aligned Dhivehi Rayyithunge Party (DRP)’s parliamentary group member Dr Abdulla Mausoom updated his twitter saying: ” SIFCO (of MNDF) & Maldives government venturing into tourism business? This will not promote capitalism, tourism or democracy!”

Mausoom told Minivan News that it was “not visible in many places” for military personnel to form joint ventures with the government and start investing in businesses.

“It is a trend observed mostly in communist states, where everything is run by the state,” he added. “This also seems to be going more in that direction.”

“However, my main concern is that the tourism industry is already saturated,” said Dr Mausoom, who has previously served as the Minister of Tourism and Civil Aviation under Gayoom’s administration.

He explained the industry was already challenged by the excess supply of resorts, which he claimed had been approved for development without any proper plans.

While several resort islands are now under development at a time when several investors are going bankrupt in the industry, Mausoom suggested that it is “not a good idea for the state to increase injection into the sector through joint-ventures.”

“It may be legal for the MNDF cooperative society to go into joint venture with government and even lease islands without even an open bidding process under the law. However, just because it is legal it does not mean it is the right thing to do,” he contended.

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Raajje TV service terminated after intruders break in, cut control room cables

Private broadcaster Raajje TV had its service terminated across the Maldives after intruders broke into the station and cut critical cables in the control room early this morning.

Deputy CEO of Raajje TV Abdulla Yamin told Minivan News that the cables had were vandalised some time between 7:00am and 8:00am.

“We suspect that the attack was by a person who knows this place and the functioning of Raajje TV very well,” Yamin said. “It has caused us millions of rufiya in damage because we have lost our reputation in front of our sponsors.”

Yamin said that the cables will cost more than Rf 100,000 (US$6666) to replace, and that it will take two days before the station can resume broadcasting.

“They shut down the electricity for the whole building which caused our electric lock systems to fail,” he said. “We suspect that either the culprit knows this place very well, or that this was done with the cooperation from a person who knew the place very well.’’

Yamin said the case was reported to police this morning.

‘’Police officers came over today but we have not heard from them since,’’ he added.

Police Spokesperson Sub-Inspector Hassan Haneef did not respond to Minivan News at time of press.

Meanwhile, the Maldives Broadcasting Corporation has condemned the attack on Raajje TV and has said that the intention of the attack was to obstruct the freedom of speech and journalism.

The Commission called on police to conduct an investigation into the case at a fast speed, and also called on police to withdraw an earlier decision to stop cooperating with Raajje TV.

On July 24, the police announced they would stop cooperating with Raajje TV, claiming that the opposition-aligned TV station was broadcasting false and slanderous content about the police which had undermined their credibility and public confidence.

The decision came just a day after Raajje TV broadcasted CCTV video footage of some police officers, who the station alleged were “caught on video” while they were stealing petrol from a motorbike parked in a small road in Male’.

Raajje TV also recently aired footage of police pepper-spraying former President Mohamed Nasheed during a protest rally, an act which attracted widespread criticism from the Maldivian Democratic Party (MDP) and international groups.

Police in a statement had denied pepper-spraying the former President, and urged the MDP “to publish statements responsibly.”

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The forgotten coup in the Maldives: Conservativehome

It all came to an end on February 7 when Nasheed was forced to resign, effectively at gunpoint, writes political and digital strategist Samuel Coates for Conservativehome.

“Only one side had the luxury of making advance preparations for handling the aftermath, so inevitably the true nature of his resignation was lost in the fog of war. For the critical first 48hrs, history was written by the victor — almost everyone fell for the initial spin that Nasheed had taken it upon himself to resign due to public pressure and a police revolt.

That anyone had an inkling of what was really going on at that time was in large part down to Nasheed’s British international press adviser, Paul Roberts — who managed to blow the whistle about the coup to a few journalists whilst hiding in a President’s Office toilet cubicle, before fleeing the country. William Hague was the first major figure to condemn the situation and an article for ConHome by MPs John Glen and Karen Lumley was one of the first to tell it how it was. But overall international reaction was muted and mixed — the US and India recognised the new government immediately.

Since then, the world has kept turning and few seem to remember or care what happened in what is a strategically insignificant nation. Shortly afterwards, President Waheed had the pleasure of joining other Commonwealth leaders for dinner with the Queen to mark her Diamond Jubilee. As they politely tucked into brie and avocado terrine, wild sea bass and apple crumble soufflé, one wonders if Her Majesty was aware that Waheed’s allies had been publicly trashing her days before.

Read more

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Government must assess financial, investor impacts of airport renationalisation: Thasmeen

The Dhivehi Rayyithunge Party (DRP) has called on the government to consider the potential financial repercussions and impact on investor confidence should it renege on a contract with Indian infrastructure group GMR to develop Ibrahim Nasir international Airport (INIA).

DRP Leader Ahmed Thasmeen Ali today said the party had asked the current government to assess the possible implications of cancelling the GMR agreement in three key areas before his party decided on whether to agree to proceed with renationalising INIA.

An agreement now thought to amount to US$511M was signed between GMR and the previous government of Mohamed Nasheed in June 2010 to manage and build a new airport terminal by 2014, as well as renovate the existing airport facilities in the meantime

The deal, the largest single financial investment in the Maldives’ history, has since faced several protracted legal disputes resulting this month in the infrastructure giant referring a disputed US$25 Airport Development Charge (ADC) included in its contract to a court of arbitration in Singapore.

Several pro-government parties – including the DRP, the Dhivehi Qaumee Party (DQP), People’s Alliance (PA) and Jumhoree Party (JP) – advised President Waheed in June this year that they continued to endorse an agreement signed in June 2010 calling for the airport to be taken back from GMR and nationalised.

The agreement endorsed six main points which included taking legal action to prevent the government’s decision to award the contract to GMR.

Thasmeen’s comments today about assessing the potential impacts of terminating the contract were made as Progressive Party of Maldives (PPM) Deputy Leader Umar Naseer alleged in local media that the DRP was now the “main obstacle” to the state resuming management of the airport.

The PPM is a coalition partner of the DRP in the government of President Dr Mohamed Waheed Hassan.

According to newspaper Haveeru, Naseer contended that an invitation from Indian Prime Minister Manmohan Singh to meet with Thasmeen this week was directly related to the GMR airport dispute.

With the Maldivian Democratic Party (MDP) and the PPM respectively holding the majority and minority leadership roles in parliament, he questioned the reason for Thasmeen’s invite other than discussing the airport case.

“I do not think this trip is related to anything else. The DRP not the main opposition anymore as everyone knows. Even if it is taken in an official manner, the parliament minority leader is from PPM,” Naseer was quoted as saying.

Naseer also claimed that President Mohamed Waheed Hassan’s government wanted to reclaim the management of the airport from GMR – a pledge he hoped would be carried out even without the support of the DRP.

An Anti-Corruption Commission (ACC) investigation into allegations that DRP Leader Thasmeen and Parliamentary Speaker Abdulla Shahid accepted US$1 million in bribes from GMR was last year reported to have “investigated thoroughly”, both men were cleared of wrongdoing over the case.

Thasmeen, Shahid and GMR have all vehemently dismissed the allegations of bribery.

Responding to Naseer’s claims today, Thasmeen told Minivan News that his recent visit to India was the result of a long-standing invitation by the Indian government to discuss a number of issues including the current political situation in the Maldives. He added the visit had not been related to GMR’s dispute with the government.

Thasmeen was not drawn into whether the issue of the GMR contract formed part of discussions, adding only that the prime minister had shown a desire for long-term stability in the Maldives during the talks.

“He was clear in his desire to see a resolution to the current political problems in the Maldives,” he said.

In addressing the issue of GMR, Thasmeen claimed that the DRP has already responded to a request by President Waheed for the views of his coalition government on how to proceed over the matter of the GMR case – but had yet to decide on possible renationalisation.

“In making a decision on this case and the GMR contract, there are three things to consider. These are the impacts on investor confidence from pulling out of such a deal,  the impact this will have on bilateral relations with friendly nations and the extent of the financial repercussions from terminating such a contract,” Thasmeen claimed. “What sort of compensation might there be for example?  The government is best placed to make such an assessment and we will wait for it to do so before making a decision on the case.”

While GMR has pledged to have the new terminal open by July 1, 2014 “irrespective” of outside issues, the Maldives government has pledged to back the will of parliament should it decide on re-nationalising the project.

The relationship between the airport developer and the government soured further late last month after the government temporarily called for a halt to work on the new airport terminal, alleging it had “violated rules and regulations” by not acquiring certain permissions from the Civil Aviation Authority.

In a statement, the infrastructure giant said the GMR Malé International Airport Private Limited (GMIAL) joint venture company had obtained “requisite approvals” under the regulations at the time construction commenced, but had since been asked to seek further approval from authorities.

“We have received a letter from Maldives Civil Aviation Authority asking us to seek its approval pursuant to a recent regulation, for the construction works related to the proposed new Passenger terminal building. Pending the approval, MCAA has directed stoppage of the said works,” GMR stated. “This has no impact on the operations of the airport at the existing terminal.”

Amidst claims by Attorney General Aishath Azima Shakoor that the “doors for dialogue” were still open over resolving the matter of the ADC case, a GMR spokesperson told Minivan News today that the company was not able to comment if fresh discussions with the government were taking place.  Shakoor was not responding to calls by Minivan News at the time of press.

The attorney general told Sun Online that the company could be waiting for up to two years for a resolution to the ADC court case in Singapore. She claimed that discussions between the company and the government remained the “best way” to resolve the issue therefore.

Compromise

Earlier this year, GMR said it had sought to compromise with the government by offering to exempt Maldivian citizens from paying the ADC. However, the Transport Ministry continued to demand that the infrastructure giant repay US$8.2 million deducted from the concession agreement.

Under the concession agreement, a US$25 Airport Development Charge (ADC) was to be levied on all outgoing passengers to part-fund the airport development.

However, while in opposition, the Dhivehi Qaumee Party (DQP), led by Dr Hassan Saeed, now President Dr Mohamed Waheed’s special advisor, and Dr Mohamed Jameel, now Home Minister, filed a successful case in the Civil Court in December 2011 blocking payment of the ADC on the grounds that it was effectively a tax not approved by parliament.

Nasheed’s government as a stopgap measure agreed to deduct the ADC from the concession fees payable by GMR, while it sought to appeal to verdict.

As a result, Dr Waheed’s government received only US$525,355 from the airport for the first quarter of 2012, compared to the US$8.7 million it was expecting, at time the country is facing a crippling budget deficit, a foreign currency shortage, plummeting investor confidence, spiraling expenditure, and a drop off in foreign aid.

According to financial statements sent to MACL and released to local media, in the second quarter of 2012, GMR deducted the ADC revenue of US$7.1 million from total revenues of US$5.6 million, leaving the government with a bill for US$1.5 million.

Managing Director of MACL Mohamed Ibrahim told local newspaper Haveeru at the time that the government would not pay the amount, alleging that GMR’s deduction of the ADC from the revenue was illegal.

In its defence, MACL has said that its board of directors had been reformed with the arrival of the new government, and a decision made to annul the old board’s agreement to deduct the ADC revenue.

The government meanwhile sought to invalidate the GMR contract – and the clause invoking arbitration – by challenging the handling of the bidding process by the International Finance Corporation (IFC), a member of the World Bank group and the largest global institution focused on private development sector in developing countries.

“The advisory work was supported by AusAid (Australia), the Ministry of Foreign Affairs of the Netherlands, and DevCo. DevCo is a multi-donor program affiliated with the Private Infrastructure Development Group and funded by the UK’s Department for International Development, the Ministry of Foreign Affairs of the Netherlands, the Swedish International Development Agency, and the Austrian Development Agency,” the IFC explained, following a visit by the delegation in June to address the government’s concerns.

Following the first quarter deduction, GMR announced an employee benefits scheme converting 50 percent of employee salaries to US dollars from July onwards, and a one-percent profit-share.

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