Parliament passes bill reducing, eliminating import duties

Parliament today passed a bill proposed by the government under its economic reform package to amend the Export-Import Act of 1979 to reduce and eliminate import duties for a wide range of goods.

The amendment bill was passed today with unanimous consent of 60 MPs present and voting.

Among the items for which custom duties would be eliminated include construction material, foodstuffs, agricultural equipment, medical devices, passenger vessels and goods used for tourism services.

However, the bill was passed with an amendment to charge a Rf10,000 (US$650) annual fee for passenger vessels and no change to tariffs for spare parts. While import duties were eliminated for construction material such as cement, glass, tin, aluminium, plywood and plastic fittings, an import duty of five percent will be levied on tiles, which was reduced from the previous 25 percent.

Import duty was reduced to five percent for furniture, beds and pillows as well as cooking items made from base metals. Other kitchen utensils had duties reduced to 10 percent.

While import duties were eliminated for most fruits and vegetables, 15 percent would still be levied on bananas, papaya, watermelon and mangoes as a protectionist measure for local agriculture. Areca-nuts would have duty reduced from 25 percent to 15 percent.

Import duties for tobacco would be hiked from 50 percent to 150 percent. However an amendment proposed by the government to raise import duties for alcohol and pork from 30 to 70 percent was defeated at committee stage.

A total of Rf2.4 billion was projected as income from import duties in the 2011 budget. With the passage of the amendment bill today and ratification by the President, the figure is expected to decline to Rf1.8 billion next year. The shortfall is to be covered by Rf2 billion in tourism goods and services tax (T-GST) and Rf 1 billion as general goods and services tax (G-GST) revenue.

MDP parliamentary group leader MP Ibrahim Mohamed Solih was not responding to calls at the time of press.

PPM Media Coordinator and Vili-Maafanu MP Ahmed Nihan told Minivan News today that all members of the party’s parliamentary group voted in favour of the bill and stressed the importance of “providing relief to businesses” paying GST on top of custom duties.

“By this vote today, we have answered the MDP’s allegations that we tried to stop Majlis sittings to prevent this bill from being passed,” he said.

Speaker Abdulla Shahid and the ruling party should bear full responsibility for the cancellation of nine sittings over three weeks, Nihan said, as the dispute over the convicted Kaashidhoo MP’s attendance could have been avoided.

The PPM council member condemned the ruling party’s “efforts to blame the Majlis cancellation on opposition parties.”

“PPM will support any measure that will provide relief to the public,” he said, adding that the party would “very closely monitor” pricing by retailers following the elimination of import duties.

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Maldives to host Red Bull air show

A Red Bull Air Show will be held near Male’s Ibrahim Nasir International Airport (INIA) on 16 December, featuring air racing champion Péter Besenyei and famous Russian Base Jumper Valerie Rozov.

The show will be followed by an air race over Hulhumale’ near Club Faru on 17 December, according to the local organiser, Euro Marketing Pvt Ltd, the country’s sole distributor of popular energy drink Red Bull.

The air show aims to bring new entertainment to the Maldives community, said Euro Marketing Head of Operations Lawrence Miranba. “We want to bring an international event into the Maldives,” he said. “Péter is an eight-time world champion, and he will flying here.”

In addition to the main events, base jumper Rozov will be performing a jump into Male’, Miranba said.

“We are looking to create smaller events as well,” said Miranba. “For instance, there’s a remote controlled plane group in Hulhumale’. We haven’t finalised anything yet, but we’d like to do something with them.”

Miranba said Euro Marketing has informed the Maldives government and airport management company GMR, and is currently sorting out permissions. Event partners include Island Aviation and MNBC media.

Besenyei, a renowned Hungarian aerobatics pilot and world champion air racer, was asked to develop the concept of an air racing competition by Red Bull in 2001. He is accredited with formulating the rules and regulations of the sport.

Valerie Rozov is a Red Bull Freestyle Base Jumping world champion, and Europe Free Style champion. He holds a world record and a gold medal from X Games.

The Red Bull Air Race was first held in Zeltweg, Austria in 2003. International pilots compete against the clock on obstacle courses of pylons, or “air gates.”

Races are typically held over water near cities, air fields or near natural wonders. They are broadcast live and taped around the world. The culminating production of the World Championship claims 300 million viewers in over 130 countries.

In 2009 and 2010 the show received back-to-back Sports Emmy Awards, as well as the International Broadcasting Corporation (IBC) award for ‘Most Innovative Use of Technology in Content Creation’.

IBC called the race program one of the most technically challenging in the world.

“The race programme travels the world, and at each venue the engineering team is faced with the challenge of bringing pictures and sound from across a huge area, and from the planes themselves.”

The air race in the Maldives is not connected to the Red Bull World Championship.

State Transport Minister Adil Saleem confirmed that the air show had received clearance for the event, but said he had made a request that all necessary precautions be observed.

“The area of Hulhumale’ where the race will be held has many safari boats. It’s as good as land. I’m sure this will be a very successful event, but we need to take precautions.”

Saleem said there is potential for more vehicle-based events in the Maldives. “I think it would be good to have a car race in Addu, to involve locals and make use of the longer roads, for instance,” he said.

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Deputy transport minister charged with cheque fraud

Deputy Transport Minister Adam Naseer has been charged with cheque fraud by the Prosecutor General’s Office (PGO) over a Rf50,000 bounced cheque, reports Haveeru.

The Criminal Court commenced hearings of the case yesterday. Naseer also faces charges of corruption for allegedly extending leases of plots in Haa Alif Baarah illegally while he was deputy home minister.

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DRP camp attacked

The opposition Dhivehi Rayyithunge Party’s (DRP) camp or rally site in Male’ behind the old powerhouse was attacked and ransacked by a group of people Saturday night.

Sun Online reported that according to DRP Media Coordinator Ali Solih, a group of about 50 people knocked over the partition walls and chairs in the compound.

Ali Solih alleged that the attackers included former members of the party.

An eyewitness told Sun Online that the group arrived in motorbikes and chanted ‘dharaniboge jagaha‘ (debtor’s camp) during the attack.

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Civil Court overturns EPA’s Rf100 million fine against Champa over Thunbafushi

The Civil Court has overturned the Environmental Protection Authority (EPA)’s Rf100 million (US$6.5 million) fine against local business tycoon Mohamed ‘Champa’ Moosa.

The EPA fined Champa the maximum possible penalty in June and labelled him an “environmental criminal” for irreversibly damaging the island of Thun’bafushi and the marine ecosystem of Thun’bafalhu, notably conducting dredging and reclamation works in the area without an Environmental Impact Assessment (EIA).

The Civil Court however ruled that the fine was not valid as the EPA had not given him the opportunity to respond to the allegations.

Judge Maryam Nihayath noted that under Article 43, “everyone has the right to administrative action that is lawful, procedurally fair, and expeditious.”

The judge said that the EPA had conducted many surveys in Thun’bufaru but had not shared the surveys with Champa, and that Champa was not informed of what actions had violated the law or what damage had been caused.

Judge Nihayath then ruled that the EPA had not completed “administratively fair procedure” that was required before any action against the accused could be taken, and invalidated the Rf100 million fine.

Director of the EPA Ibrahim Naeem told Minivan News today that the EPA had given all necessary documents to Champa and that he had been given “more than enough time to prepare his appeal.”

Naeem said the EPA had not been officially notified of the verdict and had yet to decide whether to appeal the decision in the High Court, or address any procedural issue and reissue the fine.

Naeem previously told Minivan News in June that the area had been irreversibly damaged and a large reef habitat destroyed.

“This was originally a reef ecosystem with a small sand bank in the middle, but he has been dredging the island without any clearance and the changes are now irreversible,” Naeem said at the time.

After three surveys of the area, the EPA had assessed the damage as amounting to Rf2,230,293,566 (US$144.6 million), not including the impact of sedimentation from the dredging which can smother coral kilometres from the site.

A foreign consultant who was involved in surveying the island had meanwhile told Minivan News that the area “seems to have been used as a dumping ground.”

“There were what looked like hundreds of used car batteries, waste metals and oil drums leeching into the marine environment,” the consultant said.
“We were looking at the effect of the dredging on sedimentation, and there were no water quality tests done. But you can just imagine what it would have been like with all the batteries and waste metals.”

Images of the island obtained by Minivan News showed discarded piles of rubbish and batteries, old earthmoving machinery rusting in the sun, and half a dozen reef sharks in a tank containing a foot of tepid water.

Several days after Champa was issued the fine in June, the then-Director General of the EPA Mohamed Zuhair suddenly resigned from the post, publicly stating on DhiTV – a private network owned by Champa – that his departure was due to “political interference” in the EPA’s fining of the tycoon.

Environment Minister Mohamed Aslam claimed that Zuhair had previously signalled his intention to participate in the government’s voluntary redundancy program three weeks before his sudden departure, which rendered him ineligible for the lump sum pay out.

Zuhair’s decision to apply for the program had caught the government by surprise, Aslam said at the time, explaining that he had met with the EPA’s Director General to try and retain him.

“His reason was that government pay was not meeting his financial needs, and he was looking to move to the private sector. We offered to move him to another department that would allow him to also work in the private sector – which is not allowed under the EPA’s regulations.”

Aslam said he became concerned when he pressed Zuhair for an explanation, “but he said on this matter he couldn’t tell us anything further.”

“We asked asked him then if this was a matter of national security, but he said no. So we respected his decision, and he submitted [the voluntary redundancy forms] with the Ministry of Finance, and we were just about to sign them – my signature was to be the last.”

Around this time Zuhair was allegedly sent a letter containing a mobile phone SIM card and a slip of paper note requesting he use it to call Nawal Firaq, the CEO of DhiTV.

Minivan News understands the letter containing the note and SIM card, registered in the name of a Bangladeshi labourer, was delivered to Zuhair’s flat on Friday morning but instead found its way to police.

Firaq denied knowledge of the letter when contacted by Minivan News in June. In the police inquiry subsequent to his resignation Zuhair cooperated with police but denied any knowledge of receiving the letter.

“This is Champa building his court case by attempting to question the independence of the EPA,” Aslam alleged at the time, noting that as the EPA’s Director General, Zuhair’s signature was on all the correspondence with Champa, including the notice informing him of the fine.

“Thun’bafushi has been an issue long before we took office,” Aslam told Minivan News, explaining that the previous administration had initially rented the island to Champa for Rf 100 a year (US$6.40) under an agreement that stipulated that he “not do anything detrimental to the environment – he was allowed to grow trees and monitor the shifting of the islands. He was not allowed to reclaim or extend the island.”

However Champa had conducted these works without ever submitting an EIA, Aslam alleged at the time.

“The area has been surveyed 2-3 times now, and last year the Director General attended himself a survey to assess the cost of the damage.”

The government had on several occasions asked Champa to explain himself, and he had corresponded with the EPA, Aslam said.

“Champa disputes he has done anything illegal, and states that has done everything according to the initial agreement.”

Champa had not responded to calls from Minivan News at time of press.

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PPM to protest for ‘protection’ of judiciary

Weeks after the  ruling Maldivian Democratic Party (MDP) said it would protest over the political compromising of judicial independence by members of the former government, former President Maumoon Abdul Gayoom’s Progressive Party of Maldives (PPM) has said it protest “to protect” the judiciary.

PPM Council member Ahmed Saleem today told Minivan News that the PPM’s decision came following attempts made by the current government “to influence the judiciary.”

”The government recently has clearly said that they will not allow any trial to be conducted if it is not going the way they want,” Saleem alleged. ”There are many persons who have been sued in the current government and they do not want their cases to be trialed, that is the reason why they are trying to influence the judiciary.”

Saleem said PPM had decided “to be on standby” to come out and protest, although the party had not decided any on specific time or date.

”A case concerning a Criminal Court Judge is currently in the Judicial Service Commission (JSC) and the government is attempting to influence it as well,” he claimed. ”We will not let it happen.”

Recently the JSC completed its investigation into the alleged misconduct of Chief Criminal Court Judge Abdulla Mohamed.

The case against Abdulla Mohamed was presented to the JSC in January 2010 by former President’s member of the JSC, Aishath Velezinee, after Abdulla Mohamed appeared on private TV station DhiTV and expressed “biased political views”.

In 2005, then Attorney General Dr Hassan Saeed forwarded to the President’s Office concerns about the conduct of Abdulla Mohamed after he requested that an underage victim of sexual abuse reenact her abuse for the court.

In 2009 following the election of the current government, those documents were sent to the JSC.

Last week MDP Chairperson and MP ‘Reeko’ Moosa Manik and other senior officials including former President of the party Ibrahim Ismail ‘Ibra’ held a press conference where Moosa said that no rulings made by Abdulla Mohamed should be implemented.

Speaking during the press conference, Ibra said that there were many cases pending in the JSC against Abdulla Mohamed, and that this was the first such case to be concluded.

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Mosque, SAARC monument vandalised in Addu

Sri Lanka’s SAARC monument has suffered further vandalism and a mosque door was damaged in an ongoing spate of vandalism in Addu City.

On his own website, Islamic Minister Dr Abdul Majeed Abdul Bari claimed that the attack on the mosque was in retaliation for the vandalism of the Sri Lankan statue, which protesters in Addu have criticised as idolatrous. Earlier last week, Pakistan’s monument was set ablaze and later stolen.

Bari referred to the Quran 6:108, which reads “And do not insult those they invoke other than Allah , lest they insult Allah in enmity without knowledge. Thus We have made pleasing to every community their deeds. Then to their Lord is their return, and He will inform them about what they used to do.”

Bari said he told the state broadcaster MNBC that as the monuments were gifted by neighbouring countries, bilateral relations should be considered for the removal of the offending monuments.

“Therefore, this can be solved by talking to the nations that erected [the monuments] and taking them down with their cooperation,” he wrote, adding that he had asked the Foreign Ministry, President’s Office, the Addu City Council and police to discuss the matter with the embassies.

In his interview with MNBC One, Bari said that citizens taking the law into their own hands was not the solution.

In an earlier post on his website, Bari revealed that he had suggested to the Pakistani High Commissioner that the “peaceful and proper way” to resolve the issue was for Pakistan to remove the monument.

The High Commissioner had assured him that Pakistan would do so after the summit was over, Bari wrote.

Bari has maintained that the engravings of pagan symbols on the Pakistani monument are unlawful under the Contraband Act, Religious Unity Act and the Anti-Social Behaviour Act, and should not be displayed publicly in the Maldives.

Meanwhile, the door to a cupboard containing a sound system in a mosque was reported vandalised.

Abdulla Sodiq, Mayor of Addu City, disputed that the mosque had been damaged in retaliation for damage to Sri Lanka’s lion statue, as claimed by Bari.

”I heard the media reports and sought clarification on the incident, and found out that the door to the cupboard containing the mosque’s sound system was damaged with the intention of stealing the microphone and sound system,” he said. ”It is very common in all parts of the Maldives.”

He claimed Dr Bari may have related the two incidents because he had been misled by whomever he had received the information from.

The SAARC monument was damaged on Thursday morning around 1:00-2:00am, Sodiq said, with the face of the statue being smashed.

He said that the lion was the national symbol of Sri Lanka and was not an idol of worship. Police are investigating both incidents.

Deputy Sri Lankan High Commissioner Shaanthi Sudusinghe meanwhile told Minivan News that the Maldivian government had said it would repair and relocate the monuments from Addu City to the convention centre, where they could be given security.

“There is not much we can do,” she said. “This was a gift to the Maldives and it is up to them to look after it. If it is repaired and relocated we will be satisfied.”

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Q&A: Swedish Radio journalist Margita Boström

Margita Boström is a visiting news reporter for Swedish Radio, Sweden’s national publicly funded radio broadcaster, producing stories about climate change in the Maldives.

JJ Robinson: Given its remoteness, why do you think international media is so interested in the Maldives?

Margita Boström: The Maldives drew [the media’s] attention to what is going on here when it held the underwater cabinet meeting, and through the President’s comments saying he was going to buy land in other countries.

But that was 2-3 years ago. The climate issue is now coming up again, in Europe. It very much went down after Copenhagen because everyone was fed up with it, and then there was the economic crisis, which is still going on. That’s the biggest news item at the moment: is the euro going to continue? Sweden is not in the euro, so we’re fairly happy about that right now.

Then there is the upcoming meeting in Durban. [Journalists] are looking at what kind of countries can you report on to describe what happening in an easy way.

People in Sweden know the Maldives – we are a travelling people, especially in winter time. It easy for people to connect to the Maldives because they have a picture in their heads of these beautiful islands.

I have been working in Bangladesh on similar stories, but for people back the perception is just of people starving on the streets.

JJ: How has the perception you had of the Maldives as a reporter prior to coming been matched by the reality when you arrived here?

MB: I also had perception of the Maldives as small islands with crystal white beaches and blue lagoons. But coming to Male’ was totally different. It is not like an Asian country – maybe a little like Singapore. When I first arrived on the ferry, it seemed like a mini-Manhattan in the middle of nowhere.

JJ: How hard was it to find information about the real Maldives, as opposed to the resort side, when you were researching the country?

MB: Very hard. The only thing you find when you put ‘Maldives’ into google are the resorts and companies selling trips here. You have to put in more words to get close to anything else. I put ‘Maldives’ and ‘environment’, and then after a while I found the Bluepeace [local environment NGO] website.

But their website is not up to date, and I sent a message but didn’t get an answer. There was no telehpnhone number on the whole web page, and I went through it very thoroughly..

It was really hard to find information on the Maldives. I was quite frustrated when I first came here. Usually I come to a place and just start working – it is easy to get into. But here the stretch at the start was longer here because I couldn’t find any information beforehand.

JJ: What kind of impact do you think this lack of information has on the international coverage the Maldives?

MB: I think it is hard for people to understand the scale of the problem. People don’t understand climate change is very difficult for Maldivians, and that they depend on the rest of the world being aware of what’s going on. [The lack of information] means the Maldives loses opportunities to get the world focused on the problem.

When I in Bangladesh it was very easy to find NGOs and people in government – it was very easy to get in contact with people.

JJ: How did this lack of information affect your work as a journalist?

MB: It has been getting better [during the trip], but the stretch at the start was longer. I am glad I didn’t just stay 5-6 days. I stayed a bit longer. It is hard to get in contact with people, but when you do it is very easy to get interviews – Bluepeace has been very helpful now, but I couldn’t contact them before I got here.

Working out who are you going to talk to, and how contact them, that is hard. It seems like only a few people know how. Normally you can set up interviews beforehand, so it has been very frustrating.

JJ: How has seeing the Maldives first-hand affected the stories you thought you were going to produce?

MB: I thought I was going to do stories about sea level rise and the President buying land in Sri Lanka, but I see now it is a more complex story. I didn’t really understand why the President was saying he wanted to make Maldives carbon neutral.

Now I understand that was a way of showing up the rest of the world. It will be hard for other countries to say “carbon neutral doesn’t work”, when the Maldives can come to climate meetings in 15-20 years and say “We did it.” It will be hard for the US or China. [The Maldives’ emphasis on climate change] is political way of [fighting climate change].

JJ: What can the Maldives do to encourage more foreign journalists to come and look at the stories behind the resorts and the obvious environmental pieces?

MB: One idea is to make it easier to find information on the internet. Maybe there should be a government page with information on which person deals with different things, telephone numbers and emails, so they can be contacted. It is very hard [for foreign media] because it is quite an expensive trip to come here, and you really need to know beforehand that you can make stories.

I also found it very hard to understand how the country can be so hard to travel around when it is 99 percent water. How can you travel around? You can’t find that information either. I found two airports, in the north and the south, but nothing on how to fly there, or boats you can go on, the cost of it, or a contact to find out. These are practical things – there should be a portal for information.

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Public awareness rising on child abuse, says VP

The increasing number of events organised to raise public awareness of child abuse is testament to the growing concern in Maldivian society to safeguard the well-being of children, Vice President Dr Mohamed Waheed said yesterday at a children’s festival to mark the “World Day for Prevention of Child Abuse: Every Neglect is an Abuse.”

Yesterday’s event at the artificial beach was organised by the Faculty of Hospitality and Tourism Studies in affiliation with Child Abuse Prevention Society (CAPS).

In his remarks, Dr Waheed noted that child abuse encompasses physical, sexual and emotional abuse as well as neglect, urging parents not to be overly-critical of their children.

On Friday, the Vice President attended a similar children’s festival at Sultan Parkorganised by the Human Rights Commission of the Maldives (HRCM) in collaboration with the Ministry of Education, Department of Gender and Family, Maldives Police Service, Care Society, ARC, CAPS, Maldives Autism Association, Maldives Red Crescent and Tiny Hearts.

Speaking at the event, Dr Waheed said he was encouraged by the initiative taken by the HRCM and local NGOs to mark the ‘World Day for Prevention of Child Abuse.’

The Vice President noted that the Maldives is signatory to the Convention on the Rights of the Child and encouraged government agencies and communities to work together to increase public awareness.

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