Category: Politics

Chamber of commerce vice president slams economic development minister

Vice President of the Maldives National Chamber of Commerce and Industry (MNCCI) Ismail Asif has severely criticised Economic Development Minister Mohamed Saeed, questioning his “sincerity” and “competence”.

Asif told the press on Thursday (August 7) that Saeed lacked “vision,” discriminated among local businesses, and had not been able to attract foreign investment.

The relationship between the ministry and the chamber of commerce has deteriorated during Saeed’s tenure, Asif reportedly claimed.

Saeed has not provided necessary information regarding a loan scheme for small and medium-sized enterprises (SMEs), Asif added.

He went on to accuse the minister of “corruption” in appointing businessmen of his choosing to business-related committees formed by the ministry.

Declaring the chamber of commerce’s backing for the government’s flagship special economic zone (SEZ) bill, Asif, however, questioned Saeed’s ability to implement the legislation when it is signed into law.

He added that Saeed had not consulted local businessmen before the bill was drafted and submitted to parliament.

However, Asif praised the government for proposing the SEZ bill early in its five-year term and expressed support for its provisions, arguing that it would expand the domestic economy and spur growth.

If income generated from the SEZs was evenly distributed among the populace, Asif said it would benefit the public and raise standards of living.

He also dismissed criticism that SEZs could be used for money laundering and criminal enterprises, suggesting that it was not directly linked to the establishment of such zones and advised control measures.

Parliament’s economic affairs committee is currently reviewing the SEZ legislation and has set itself a deadline of October 10 to complete the assessment and possibly make revisions.

However, MP Abdulla Khaleel – chair of the committee – told newspaper Haveeru today that he expects the review process to be completed this month, after which the bill would be sent to the People’s Majlis floor for a vote.

Parliament breaks for a one-month recess at the end of August.

As the bill was a high priority for the government, the Progressive Party of Maldives MP for Faafu Nilandhoo said the committee has decided to hold two meetings for every day when there is a parliament sitting.

He stressed that stakeholders would be consulted and technical expertise would be sought.

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Finance minister fears spiralling deficit will leave civil servants without pay

Finance Minister Abdulla Jihad has expressed fear that the ballooning budget deficit will affect the government’s ability to pay civil servants.

“We can’t hold on like this for long, we must acknowledge that this is a very serious problem,” Jihad told atoll council leaders in Malé today.

Jihad explained that shortfalls in revenue of MVR1.5 billion would see the deficit increase to MVR4 billion – equal to 10.6 percent of GDP.

“Expenses keep on increasing, even as we don’t receive any revenue. We did not get the expected revenue this year either. Because of this, we are facing great difficulty in managing the budget deficit,” said Jihad.

Upon being elected last year, President Abdulla Yameen promised to prioritise reducing state expenditure, acknowledging that the Maldives was in a “deep economic pit”.

The government currently employs just under 25,000 civil servants, representing over 7 percent of the population. This high figure has long been identified as one of the causes of country’s fiscal imbalances.

Haveeru reported Jihad as saying today that his ministry was facing pressure every month when salaries are due.

“We try to make regular salary payments even if we have to take loans in order to do so. We haven’t, as of yet, received any salary issues this year. We are trying to make the salary payments through any means possible,” he was reported as saying.

Revenue gaps

Last month’s figures from the Maldives Monetary Authority (MMA) show the salary and allowances expenditure to account for 33 percent of spending, while the finance ministry has not published monthly expenditure reports since March.

The MMA’s latest figures also show the original estimated deficit of MVR1.3 billion – agreed upon last December as part of a record MVR17.96 billion budget.

The budget was inclusive of proposed revenue raising measures – many of which had failed to materialise during the previous administration – amounting to MVR3.4 billion, or 19 percent of the budget.

Despite some measures – including a rise in tourism taxes – passing the Majlis in February, Jihad predicted at the time that compromises would mean the full MVR3.4 billion would not be realised.

Both the outgoing and incoming governors of the MMA have this year called on the state to reduce expenditure alongside increased revenue.

The MMA’s 2013 Macroeconomic Development report said that shortfalls in revenue and overruns in expenditure could jeopardise the country’s debt sustainability – currently 81 percent of GDP.

The report – released in May – noted “there is a considerable amount of uncertainty surrounding the 2014 budget”.

The World Bank’s Maldives Development Update October 2013 described the country as “spending beyond its means,” risking serious damage to the economy,

Expenditure

Despite the government’s persistent promises to focus on the economy, subsequent policies have focused more on infrastructure development than fiscal consolidation.

Initial moves to reduce the salaries of political appointees were soon followed by promises to raise pension payments by 54 percent and the removal of the cap on the Aasandha health insurance scheme.

More recently, the government is facing the prospect of a potentially crippling payout to infrastructure giant GMR after a Singapore court of arbitration ruled in favour of the Indian company in a dispute over the premature termination of its airport concession deal.

Economic development plans have focused largely of large infrastructure projects and special economic zones to attract foreign investment – though no major deals have as yet been signed.

An IMF delegation visiting the country in February, however, expressed surprise at the economy’s continuing resilience.

“For a long time we’ve been saying that reserves at the MMA are very low and that the fiscal deficit is quite difficult and we expect the economy to run into some problems,” said resident representative Dr Koshy Mathai.

“But somehow the economy has shown resilience, a lot of resilience, and we’ve been surprised – happily surprised but surprised nonetheless.”

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Maldives to begin oil exploration with assistance of research vessel

A research vessel with 25 scientists on board has arrived in the Maldives to conduct oil and gas exploration research.

The German research vessel ‘Sonne‘ which came to the Maldives for different research purposes has agreed to do the oil exploration research for free, the government has said.

The scientists are expected to begin research within two days.

Speaking to media after his visit to the vessel today, Minister of Fisheries and Agriculture Dr Mohamed Shainee said the information obtained will be shared with the Maldives in the first quarter of 2015, adding that it would not be shared with any third party.

A local expert and a member of the Maldives National Defence Force will be present with the team during the survey, he said.

According to Dr Shainee it will be carried out in one of the three main areas in the country with properties indicating the presence of oil and gas – located 100 miles east of the region between Laamu and Thaa atoll.

The three dimensional seismic survey, carried out by sending sonic waves into the sea, will identify the presence of oil and gas in the region without any drilling, the minister said. It will be followed by further exploration involving drilling to confirm any positive findings, he explained.

The survey team’s own research will be about the changes in Maldives’ seas due to global warming, Haveeru has reported.

Speaking to the newspaper, the lead researcher from the University of Hamburg said a similar survey was done by the same vessel in 2007, but this new, more detailed one will complement it.

Oil exploration was an election pledge of President Abdulla Yameen and the government earlier this year said a foreign investor had already expressed interest in oil exploration.

The Maldives National Oil Company Ltd (MNOC), a subsidiary of the State Trading Organization (STO), said in February that they will soon begin advertising the country as a destination for oil exploration.

“We have contacted a Norwegian company and a German company to help us better understand the findings of the study. Based on this report, we’re hopeful of advertising the Maldives as a new destination of oil exploration,” said MNOC Managing Director Ahmed Muneez at the time.

French oil company Elf Aquitaine explored for oil and gas between 1968 and 1978, drilling three different sites. According to the MNOC, it was found at the time that the quantity available from the drilled site was insignificant and therefore uneconomical for production.

In 1991, Royal Dutch Shell initiated a second attempt at drilling an exploration well in the inner sea of the Ari Atoll.

Local environmental NGO Blue Peace has said oil drilling in the Maldives could cause environmental issues depending on the location of drilling , arguing that it “cannot coexist” with the country’s dominant tourism industry.

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Laamu Gan residents hold demonstrations over inadequate sewage system

Residents of  Laamu Gan demonstrated today over the island’s damaged sewage system which has remained unfixed for the past two months.

The system at fault is located in the new settlement of the tsunami-displaced population that moved to Gan from Mundoo and Kalhaidhoo islands in 2007.

It was funded and established by the International Federation of Red Cross Societies (IFRC) as part of their tsunami recovery work before being handed over to the government of Maldives upon completion.

According to the council, no one has since taken ownership of the system and it has remained abandoned and without any maintenance. The Ministry of Housing has earlier said the damages to the system was caused by vandals.

The damaged system has been causing sewage waste to spill into the island,  particularly during wet weather. In June the council expressed concern over the issue, alerting authorities and the media.

“The pumps in the system are not working, and the [septic] tank is also damaged. So when sewage effluent gathers in the tank it overflows and spills out. But this has got worse with the rainy season, the waste is being carried across the island through the puddles,” Council President Ahmed Salah told Minivan News at the time.

“Sometimes it is overflowing from the toilets, leaving houses and rooms filled with waste.”

The council had proposed to join the system with a new MVR85 million sanitation facility being established in Gan for areas which previously did not have any such facilities. However, experts said it was not possible as the two systems are incompatible.

Gan council subsequently managed the situation by using a mobile tank, donated with the sewage system, to drain the waste into the sea. The process takes around 20-30 rounds to drain it to a usable level after each spill, explained the council at the time.

After repeated requests from the government and ministries, including a special visit to Malé to meet the heads of institutions, the Ministry of Environment and Energy awarded the operation and maintenance of the sewerage system to FENAKA Corporation Ltd on July 21.

The US$1.8 million project will be implemented under International Federation of Red cross and Red Crescent Societies loan, Minivan News was unable to contact FENAKA at the time of publication

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PPM MPs to hold secret vote on health minister reappointment

MPs of the ruling Progressive Party of the Maldives (PPM) on Wednesday decided to hold a secret vote to determine the party’s parliamentary group’s stand on reappointing Dr Mariyam Shakeela as health minister.

Shakeela is up for Majlis approval for a second time after President Abdulla Yameen modified her initial portfolio as Minister of Health and Gender.

The gender department was transferred on July 1 to the new Ministry of Law and Gender to be headed by Attorney General Mohamed Anil.

According to local media, 21 of the 24 PPM MPs present at a parliamentary group meeting decided on a secret ballot following a dispute between MPs over reappointing Shakeela.

The vote will be held at a PPM parliamentary group meeting on Monday at 12:30pm.

In response, Shakeela told the press she has no issue with failing to gain the required votes if MPs do not see her work in strengthening the health sector.

“What can I say? Every day, there is a lot of work underway at this ministry [to strengthen the health sector]. If [MPs] do not see this effort, then I have no problem if they don’t vote,” she told reporters on Wednesday.

Local news agency Haveeru has claimed 21 out of 35 MPs present at a meeting in late July voted against approving Shakeela for the position.  MPs are reportedly dissatisfied with Shakeela’s performance in the past eight months.

The Health Ministry has been under fire following a series of protests over regional health care services and health mishaps in Malé.

The state owned Indhira Gandhi Memorial Hospital (IGMH) – long criticised for lack of qualified doctors, adequate medical facilities, and medicine – transfused HIV positive blood to a patient due to an alleged technical error.

In June, councilors of southern Fuvahmulah Island called for Shakeela’s resignation after a case of stillbirth, an interrupted caesarean, and the death of a soldier on the island. A few weeks later, over 300 protestors demonstrated in front of northern Kulhudhuffushi Island over deteriorating conditions at the regional hospital on the island.

Shakeela was first appointed to the cabinet by former President Dr Mohamed Waheed Hassan in May 2012. At the time, she held the Environment and Energy portfolio. President Abdulla Yameen reappointed Shakeela to the cabinet in November 2013 with the health portfolio.

The former 77-member Majlis approved Shakeela to the position with 43 votes in favor.

PPM’s parliamentary group leader Ahmed Nihan was not responding at the time of press.

The ruling party holds a majority in the People’s Majlis with 43 of the 85-member house. PPM’s ally the Maldives Development Alliance controls an additional five seats.

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JSC demotes High Court Chief Judge Shareef to Juvenile Court

The Judicial Service Commission (JSC) has transferred High Court Chief Judge Ahmed Shareef to the Juvenile Court as a disciplinary measure more than one year and two months after he was indefinitely suspended.

The judicial watchdog revealed in a press statement yesterday (August 6) that Shareef was found guilty of ethical misconduct following an investigation of a complaint filed by seven of his colleagues on the High Court bench.

The JSC did not divulge any details regarding the allegations.

However, in June 2012, the Anti-Corruption Commission was asked to investigate allegations that Chief Judge Shareef met officials of Malaysian mobile security firm Nexbis in Bangkok, Thailand while a case concerning the firm’s controversial border control project was scheduled at the High Court.

Hulhumalé magistrate court

Shareef was suspended on May 29, 2013 while he was presiding over a case filed by former President Mohamed Nasheed contesting the legitimacy of the JSC’s appointment of a three-judge panel at the Hulhumalé magistrate court.

The judges were appointed to preside over the opposition Maldivian Democratic Party presidential candidate’s trial concerning the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed in January 2012.

In April 2013, the High Court had suspended the trial pending a ruling on the legitimacy of the magistrate court bench.

However, the High Court case has remained stalled since Shareef’s suspension the following month – more than a year after the complaint was filed against him.

JSC Chair and Supreme Court Justice Adam Mohamed Abdulla insisted at the time that the suspension was not related to the ongoing High Court case concerning Nasheed’s trial.

The suspension came shortly after the cancellation of a hearing in the Nasheed case which was scheduled at the High Court on the same day.

After voting against suspending Shareef, public representative on the JSC Shuaib Abdul Rahman told local media that the decision was made in violation of due process and JSC procedures as a report regarding the allegations was not presented to the commission’s members.

Shareef then challenged the JSC decision at the Civil Court contending that the suspension was unlawful. The court subsequently upheld the JSC decision in October 2013.

Stalled

In addition to Nasheed’s case, a number of high-profile cases over which Shareef was presiding have remained stalled since his suspension, including an appeal by Fathmath Hana, 18, who was sentenced to death for the murder of prominent lawyer Ahmed Najeeb.

Shareef was also among the panel of judges hearing appeals from the Prosecutor General’s (PG) Office over the acquittals of President Abdulla Yameen’s brother Abdulla Algeen on corruption charges and suspected drug kingpin Mohamed Hussain Manik.

According to the Judicature Act, the chief judge of a court has the administrative authority to appoint judges to preside over cases and make changes to panels. The Supreme Court had also ruled that acting chief judges do not have the authority to make such changes.

In June, the JSC appointed Judge Abdulla Hameed to head the High Court for a period of six months.

Meanwhile, in April, Nasheed asked the High Court to expedite the case concerning the legitimacy of the magistrate court bench.

Nasheed’s lawyer Hassan Latheef told Minivan News at the time that the former president did not wish to have pending criminal charges. Nasheed had previously said he was  “prepared” to justify the reasons for the arrest of Judge Abdulla and defend the decision at court.

In June, the High Court summoned members of Nasheed’s legal team to sign statements given at previous hearings.

Two of the three judges appointed to the magistrate court to preside over Nasheed’s trial have meanwhile been transferred to other courts. Judge Shujau Usman was transferred to the Criminal Court and Judge Hussain Mazeed to the Civil Court.

Meanwhile, according to the JSC’s annual report for 2013, the commission has yet to conclude investigations or make a decision regarding 106 cases, which were pending at the end of last year, including one complaint dating back to 2008 and four complaints from 2009.

In a comprehensive report on the Maldivian judiciary released in May 2013, UN Special Rapporteur for the Independence of Judges and Lawyers, Gabriela Knaul, observed that a lack of transparency concerning the JSC’s proceedings “nourishes serious allegations of selectivity in the management of complaints.”

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Death threats lead to self-censorship, says Reporters Without Borders

Reporters Without Borders (RSF) has called on the Maldives to guarantee the safety of journalists after 15 journalists received threatening text messages regarding coverage of gangs in Malé.

“Death threats lead to self–censorship,” said Benjamin Ismail, head of RSF’s Asia- Pacific Desk.

“The authorities have a duty to guarantee the safety of journalists. This includes arresting those responsible for these threats. The authorities must end the culture of intimidation and impunity by ceasing to turn a blind eye to abuses by the rival gangs.”

Journalists with Haveeru, Raajje TV, Maldives Broadcasting Corporation (MBC), Villa TV (VTV), Sun Online, and Vaguthu received an anonymous text on Wednesday saying, “[We] will kill you if you keep writing inappropriate articles about gangs in the media.”

The threats came in the wake of extensive coverage of a spate of violence in Malé which saw one dead and nine hospitalised with serious injuries.

The press freedom advocacy group cited a Maldives Broadcasting Commission report published in May, in which journalists said political parties were the main source of threats against journalists, followed by gangs and religious extremists.

“The threats encourage self–censorship, with 30 percent of journalists saying they are afraid of covering gang activity and 43 percent saying they do not report threats to the authorities,” the RSF said.

The organisation noted that although death threats are frequent in the Maldives, they are rarely carried out. However, the near fatal- beating of Raajje TV journalist Ibrahim ‘Asward’ Waheed sets a “disturbing precedent.”

“As Malé is a small town, journalists have nowhere to hide when they are threatened,” noted RSF.

Speaking to Minivan News today, Asward condemned his 18 month long wait for justice. After a second witness failed to identify suspects with absolute certainty at the Criminal Court today, Asward said delays affect memory and allow attackers to tamper with evidence.

“Each day of delay is one more day without justice,” he said.

He called on the courts to expedite the trial and said he had no confidence the courts may deliver justice.

“It’s quite possible that the case will conclude saying that I beat myself up,” he said.

The Maldives Police Services have said the near fatal attack was not politically motivated, but connected to gang activity. Asward has denied this claim.

Gangs often seek media coverage of their actions, but turn against the media when the coverage is not to their liking or when media covers activities of rival gangs, note RSF today.

Gangs enjoy “complete impunity,” as politicians use them to threaten and pressure journalists or people they regard as opponents the organisation said.

The organisation also noted slow progress on prosecuting those responsible for the attack on Asward and the arson attack which destroyed Raajje TV office in October.

“Although the authorities have promised to defend media freedom, they have made little progress.”

Maldives is ranked 108th out of 180 countries in the 2014 Reporters Without Borders World Press Freedom Index.

Six opposition parliamentarians have also reported receiving death threats on Sunday.

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Journalist Asward condemns 18 month wait for justice after near-fatal attack

Raajje TV Journalist Ibrahim ‘Asward’ Waheed has condemned delays in prosecuting two men suspected of critically injuring him in a near-fatal attack in February 2013.

The Prosecutor General’s Office in May 2013 pressed charges against Ahmed Vishan, 22 years, and Hassan Raihan, 19 years, for assault under Article 128 of the Penal Code.

If found guilty, the two face a jail term or banishment between six months and five years, or a fine between MVR100 and MVR5000.

“Each day of delay is one more day without justice,” Asward told Minivan News today.

The Criminal Court held a hearing this morning in which a second anonymous witness said the suspects “looked very similar” to the two men they had seen fleeing the crime scene. However, the witness repeatedly said they could not be absolutely certain if the suspects were indeed the attackers.

Asward has blamed the witnesses uncertainty on the long trial process.

“Delays affect memory, making it difficult for witnesses to identify suspects. It also allows the attackers to tamper with evidence,” he said.

“It’s quite possible that the case will conclude saying that I beat myself up. It’s been 18 months since the attack. The courts must speed up the process,” he continued.

Noting the two suspects have been kept in pretrial detention since March 2013, Asward said delays in justice also violate rights of the two suspects.

The broadcast journalist also said the Prosecutor General’s Office and the Criminal Court have repeatedly failed to inform him of dates for court hearings.

“I found out today because our court reporter saw the case on the court schedule. This failure to inform me shows they are not particularly interested in completing the case,” he said.

The witness told the Criminal Court today they saw a man holding an iron bar getting on the back of an Air Blade motorcycle on the night of the attack. The witness said they did not see the actual attack.

On December 16, the first witness had also said told the Criminal Court they are unsure of the identities of the attackers, but also said the two suspects look very similar.

The anonymous witness said they saw a man with a three-foot long iron bar knock Asward down to the ground with a blow to the face. Afterwards the attacker hit Asward a few more times while he was on the ground.

The witness said Vishan “looked very similar” to the man who had attacked Asward.

Only the man on the back of the motorbike attacked Asward, the witness said.

The Maldives Police Services have said the attack appears to be premeditated, and former Commissioner of Police Abdulla Riyaz at the time described the attack as a murder attempt.

Head of Serious and Organised Crime Department Mohamed Daud revealed that both suspects had criminal records and belonged to “groups” or gangs in the capital.

Daud claimed at the time that the attack was not thought to be politically motivated.

The attack left Asward unconscious, and he was transferred to a hospital in Sri Lanka for treatment, where he had to undergo major surgery to correct a maxillary fracture (broken jawbone). The beating has also affected Asward’s eyesight.

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GMR failed to conduct political risk assessment prior to investing, says President Yameen

President Abdulla Yameen has warned foreign companies of the importance of political risk assessment before investing in countries such as the Maldives.

“At a time when you had a very heightened political environment in Maldives, at a time when the parliament was polarised, it was a pity that political risk assessment was not undertaken by GMR,” said the president.

Yameen’s comments came during the scholarship awards ceremony of Trans Maldivian Airways’ (TMA) youth pilot training programme – a company he cited as an example of successful foreign investment after its takeover by the Blackstone Group last year.

“Whenever we hear about GMR, the issue that comes right to the limelight is their inability to assess political risk at the time.”

GMR’s landmark airport development deal – signed during the prematurely ended term of President Mohamed Nasheed – was itself abruptly ended by the succeeding administration in December 2012.

The concession agreement to develop Ibrahim Nasir International Airport was signed in June 2010, the same month in which Nasheed’s entire cabinet resigned in protest against what it considered to be the obstructionist policies of then-opposition parties.

Legal action initiated by the deal’s opponents eventually invalidated the deal’s funding arrangements, leading the government of Dr Mohamed Waheed to justify the annulment using the legal principle of ‘frustration’ – in which unforeseen events render contractual obligations impossible.

In June this year, a Singapore court of arbitration ruled the deal had been  “valid and binding”, finding the Government of Maldives liable for damages still to be determined by the court.

The Maldivian Democratic Party had subsequently called for the reinstatement of the GMR deal, threatening to dissolve any future deals to redevelop the country’s major international airport.

Foreign diversification

During yesterday’s ceremony, President Yameen continued to appeal to foreign investors, expressing the country’s desire to diversify from the dominant tourism industry.

“We are not just about the sun, the sand, the sea – Maldives is more subtle. That is the message we are trying to give to the world now,” he told those in attendance at Traders Hotel.

The government’s drive for new investment has focused upon five ‘mega-projects’ as well as an improved climate for new investors, facilitated by controversial plans to establish special economic zones via legislation recently introduced to the People’s Majlis.

Tracing the journey of foreign investment in the Maldives alongside his own public career, Yameen noted that foreign investments were seen as “punitive” in the mid 1980s, with local laws designed to prevent them.

“My task was to encourage political leaders and the president that foreign investment was not such a bad thing. It is only through foreign investment that small countries such as Maldives could forge ahead.”

Yameen – who spent two decades with the Ministry of Trade and Industries – went on to describe frequently “lonely” and “solitary” overseas discussions on potential investment in the Maldives.

Indeed, the president described the difficulty he had in persuading Blackstone’s risk management personnel to invest in the country. The deal saw the US private equity firm gain a monopoly in the vital seaplane sector as rival firm Maldivian Air Taxi was bought simultaneously.

Congratulating those awarded the TMA training scholarships yesterday, Yameen pointed to the country’s “motivated”, “highly intelligent” and “easily trainable” youth as a key resource, urging the seaplane operator to increase the number of Maldivian staff members.

He also expressed his gratitude to the company for providing assistance in his “endeavour which is to bring prosperity throught the avenue of finding ways for the youth”.

The government recently revealed that a number of companies had expressed interest in the government’s Hulhumalé youth city project – which will reportedly include youth-specific housing, international class sports facilities, a theme park, and a yacht marina, catering to a population of 50,000.

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