Category: Politics

India should assist Maldivian people in changing the government, says Nasheed

Assistance in changing the government is the biggest relief the Indian government could offer the Maldives regarding compensation owed to GMR for the premature termination of its airport deal, former President Mohamed Nasheed has said.

Speaking at a rally at the reopened Maldivian Democratic Party (MDP) haruge (meeting hall) last night, the main opposition party’s acting president said he had learned that GMR would inform the Indian government of the situation.

“In my view, that relief is for that [Indian] government to work together with us, the Maldivian people, to change the government of the Maldives,” Nasheed said.

After 18 months of arbitration proceedings, a Singapore tribunal ruled last week that the concession agreement signed by the MDP government with the GMR-led consortium in June 2010 to manage and develop the Ibrahim Nasir International Airport (INIA) was “valid and binding.”

Former Attorney General Azima Shukoor – incumbent at the time of the termination – has this week maintained that the agreement was invalid under Maldivian law.

Nasheed yesterday contended that parties in the ruling coalition had fanned anti-Indian sentiment and incited anger among the public towards the country in their efforts to topple the MDP government, which he claimed were orchestrated by former President Maumoon Abdul Gayoom.

He also referred to anti-Indian rhetoric by senior officials of the current administration in the weeks leading up to the eviction of GMR in December 2012.

Former President Gayoom exploited nationalism and Islam – which are “accorded the highest place in the hearts of the Maldivian people” – to mislead the public with “lies”, Nasheed argued.

The MDP has also announced its intention to sue former President Dr Mohamed Waheed for defamation and damages caused by his administration’s unilateral termination of the concession agreement.

Sovereign debt crisis

The Singapore tribunal concluded that the Maldivian government and the Maldives Airports Company Ltd (MACL) were “jointly and severally liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement.”

The Bangalore-based company is seeking US$1.4 billion in compensation for “wrongful termination” of the contract – an amount that eclipses the Maldives’ annual state budget.

The compensation owed is due to be determined in the second phase of the arbitration process.

In the wake of the arbitration decision, Attorney General Mohamed Anil said that current administration would honour the verdict and expressed confidence that the government would not have to pay the US$1.4 billion sought by GMR.

“According to the agreement, [we] mostly have to compensate for the investments made. We said we do not have to pay the amount GMR has claimed,” Anil told reporters on Thursday (June 19).

President Yameen had predicted in April that GMR would only be owed US$300 million in compensation.

Nasheed, however, predicted last night that the compensation figure would not be “lower than US$800 million”, a fee which would plunge the Maldives into a sovereign debt crisis as the foreign currency reserves are currently below US$100 million.

Warning of an impending economic crisis, Nasheed called on the public to awake from its “slumber” and “consider what is happening to our country”.

Nasheed also accused former Attorney General Azima Shukoor – who had advised cancellation of the contract on the grounds that it was void ab initio (invalid from the outset) – of attempting to mislead the public concerning the arbitration ruling.

Shukoor has told newspaper Haveeru that the contract was illegal under Maldivian law.

“Even if the agreement is legit under Common Law, it does not necessarily concur that the agreement had also been made according to Maldivian laws.

“Nobody sitting as AG in Maldives can still pronounce the deal to have been done as per the Public Finance Act. No one can. That’s why I spoke against it even then,” she was quoted as saying.

She further argued that the termination of the agreement was justified as the domestic economy would have suffered “unimaginable losses”.

Nasheed however questioned the “literacy” of ministers in the “coup government,” noting that a legal process for terminating the contract through arbitration was laid down in the concession agreement.

Public-private partnership

Nasheed also defended the initial awarding of the contract – in a bidding process overseen by the World Bank’s International Finance Corporation (IFC).

As public debt was over 60 percent of GDP when the MDP government took office in November 2008, Nasheed said his administration believed loans should only be obtained for capital investments and infrastructure projects.

The government decided to privatise the airport in a public-private partnership as loans could be put to better use to “upgrade hospitals, improve schools and build water and sewerage systems,” he explained.

Referring to the Anti-Corruption Commission (ACC) ruling out corruption in the airport privatisation deal, Nasheed noted that the commission had concluded that the government would have received US$534 million from the consortium during the 25-year lease period.

Conversely, MACL would have made a profit of about US$254 million in the same period if the airport was operated by the government-owned company.

While MACL paid on average MVR96 million (US$6.2 million) a year to the government from 2005 to 2010, Nasheed noted that GMR paid MVR872 million (US$56.5 million) in 2011 as concession fees.

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Unsurprising developments: Malé and the atolls

The UNDP last week confirmed what most in the Maldives are only too aware of, that the lives of those in the capital Malé bear increasingly little resemblance to those in the outer atolls.

The country’s second Human Development Index report revealed the Malé area to have achieved a ‘highly developed’ score, while the rest of the country lagged behind in the middling bracket.

“Where one is born within the Maldives determines many of the opportunities and choices available to a person,” concluded the report.

While the UNDP will meet with relevant stakeholders in the coming weeks in order to discuss the implementation of policies that might bridge this divide, the government pushed ahead with plans which many feel will only exacerbate the problem.

Recent developments promise only bridge the divide between the  the capital’s two largest islands, however, with the construction of the Malé-Hulhule bridge a prominent part of the government’s flagship plan to expand the reclaimed island into a ‘youth city’ of 50,000 people.

Meanwhile, responses to proposals for special economic zones in the country have ranged from skepticism to alarm as the country seeks to make itself attractive to foreign investors once again.

“What I see is that three quarters of the population would probably move to the capital and the rest of the country will be taken over by the corporations,” predicted Salma Fikry, a long-time campaigner for decentralisation.

“Everything is moving towards that direction and the Maldives will lose a lot of their culture – a lot of their lifestyle – these things that make us Maldivian,” she said.

“Unsurprising”

Both Fikry and the online social movement the Rajjethere Meehun Party (RMP) have described the UNDP’s findings as “unsurprising”.

Citing the failures of successive governments to foster sustained development in the atolls, Fikry noted that the lack of political will for such projects had deep historical roots.

“The whole point of decentralisation is scary for the Maldivian government because they like to keep people dependent, they like to think of themselves as doing people favours,” she said.

“It’s very deep-rooted – the government in Malé has feared that the southerners and the northerners might revolt against the government because this has happened in the past.”

The most notable instance of separatism in the country came in the late fifties as the country’s three southernmost atolls seceded from the nation to form the United Suvadive Republic, with a lack of central government assistance being cited as a major reason for the breakaway.

While the short-lived republic was forcefully brought back under the authority of Malé in 1963, the issues appear to remain, with both Fuvahmulah and Addu City councils complaining of a lack of government support in local development.

Fuvahmulah Island Council recently blamed the Ministry of Health for dangerously under-resourced health facilities – an accusation repeated in Kulhudhuffushi this week, and Addu City Council has recently resolved to develop its own guest house tourism industry.

The concentration of the country’s dominant tourism industry has remained in the central atolls despite the government’s initial tourism master plans envisioning an even spread after the initial clustering around the capital in 70s and 80s.

Last week’s UNDP report cited the presence, or the absence, of tourism as a major contributor to to human development levels in the country’s disparate regions.

Despite the development of numerous regional airports, just under 40 percent of the country’s tourism capacity is located in Malé’s Kaafu atoll, with a recent survey showing that 85 percent of the country’s 1 million plus annual visitors reach their destination in less than hour’s journey from the capital.

Addu atoll – the country’s second most populous urban area – currently hosts just 3.6 percent of the country’s bed capacity, while at the opposite end of the country, residents of the only atoll in the country without a resort – Haa Dhaal – recently launched an online campaign calling for equitable development.

Special Economic Zones

The Special Economic Zones bill – recently introduced to the People’s Majlis – has been touted as a way to incentivise foreign investments, reduce the country’s reliance on tourism, and bring rapid development to the Maldives.

Proposals for nine economic zones throughout the atolls, which will include generous tax breaks and relaxed government oversight, have been greeted by many with caution.

Speaking after the launch of the UNDP report last week, Governor of the Maldives Monetary Authority (MMA) Dr Azeema Adam said that, with these incentives, the only benefits that the zones could bring would be local jobs.

“In the special economic zones, developers have the right to bring any amount of expatriate workers as well, so we might be able to generate jobs, but if those jobs go to expatriates we are not going to reap the benefit of such development activities,” said Dr Azeema.

Added to the absence of local expertise in relevant industries, the MMA governor said that serious questions should be asked about the benefit to local people – a point seconded by the RMP.

“On first read, it sounds like a monster in the making,” said the group. “The picture we get is is a scary one. Huge corporate agendas that could overtake all local ownership as well as national ownership of the Maldivian archipelago.”

Minivan News was unable to obtain comment from the Ministry of Economic Development or the Local Government Association at the time of publication.

Both the RMP and Fikry noted that, once an area is allocated as a special zone under the bill, all areas under the jurisdiction of local councils can be taken over.

“Is that really what we want in the long term – do we really want to be under a special zone superintendent by giving away our right to participation in our own development and governance?” asked Fikry.

Both suggested a better option for local development might be to allow for fiscal decentralisation as envisioned in the 2010 Decentralisation Act – whose provisions have yet to be fully enacted.

Failure to fully devolve the powers outlined in the landmark legislation has prompted Addu City mayor Mohamed Soabe to describe the legislation as “just for show”, while Malé City Deputy Mayor Shifa Mohamed has accused the current government of attempting to destroy decentralisation.

This week’s UNDP reports noted – when conducted on an optimal scale – decentralisation can have “positive effects” on human development.

However, with local councils rendered impotent by a dependence on central government finance and the relentless expansion of the capital, neither Fikry nor the RMP are anticipating any surprising developments soon.

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Immigration detains 58 migrant workers in Laamu Gan

58 people were detained from Laamu Gan by the Department of Immigration and Emigration (DIE) yesterday as the government’s special operation to deport undocumented migrant workers continues.

“This operation will continue, that was the number of people we could transport yesterday. As soon as we get seats from a boat travelling to Malé, more people will be taken in,” said Laamu Gan Council President Ahmed Salah.

The council led the operation alongside the DIE, the Maldives Police Services (MPS), and the Maldives National Defence Force (MNDF).

“This [the operation] is good for the island and for the country as well. This will create a lot of job opportunities for Maldivians,” said Salah.

While the most common type of work conducted by immigrants on the island is agriculture and fisheries, some are engaged in other occupations such as masonry, odd jobbing, and working in restaurants. Maldivian laws prohibits both fisheries work and self-employment for expatriates.

Salah estimated there would be around five hundred migrant workers on the 5000-strong island, most of whom he suggested were undocumented, and some of whom had fled the island during the operation.

He also noted that some of the workers taken in during the operation had valid visas but were considered undocumented as they were either not doing the work their visas were issued for, or were working for a different employer.

Impact

The main reason for having such a large migrant worker population on the island was their low wage demands compared to what is expected by locals, explained Salah.

“People give them around MVR2000 [per month] and an additional MVR500 for food and provide them with accommodation. There are so many of them on fishing boats and doing agricultural work,” he added.

According to the council president, migrant workers rent houses with each of them paying around MVR150 each day – agricultural workers live in small huts built on their fields, and fishermen live on their boats.

Following the council’s recommendations on behalf of the public, DIE has agreed not to take any action against locals who employ undocumented workers, Solah said.

“People are employing migrant workers like this because the implementation authorities have allowed them to do so. So we are requesting immigration to at least not to fine them [local employers], and let this time be a warning and show some leniency. So no fine have been imposed on the employers,” he explained.

Prior to the current operation, the immigration department conducted a  voluntary repatriation program, offering leniency for undocumented migrant workers who wished to return to their home countries voluntarily at their own expense.

The current programme was announced in April by the Minister of Defence and National Security Mohamed Nazim – also head of the Immigration Department – who promised that “within three to four months the whole Malé will be cleaned”.

According to Nazim the priority would be to deport those detained in the operation as soon as possible.

Earlier this month 33 undocumented workers were detained as part of this nationwide action, although Minivan News was unable to obtain a comment from the immigration department regarding the operation’s specifics.

Human Trafficking

The Maldives was recently removed from the US State Department’s tier two watch-list for human trafficking after remaining on it for four consecutive years, narrowly avoiding international sanctions.

While the 2014 US State Department’s Trafficking In Persons (TIP) Report highlighted the recently enacted anti-trafficking law and the opening of a shelter for victims of trafficking, the report noted that there are “serious problems” in enforcing the law protecting victims.

Some of these problems highlighted in the report include lack of procedures to identify victims among vulnerable populations, and inadequate training for officials.

The report further stated that “the government penalized some victims for offenses committed as a result of being trafficked and also deported thousands of migrants without adequately screening for indications of forced labor.”

These concerns were echoed by Human Rights Commission of the Maldives (HRCM) Jeehan Mahmood.

“In the absence of victim identification guidelines it is very likely that victims of human trafficking would be taken in during such operations, because there is no clear way to identify if such a person is a victim or not,” she said.

Jeehan did, however, note that the anti-trafficking steering committee established under the new counter trafficking act had already drafted a national guideline of internationally accepted standards.

She highlighted the need to criminalise human smuggling along with trafficking, explaining that the HRCM has proposed to amend the law for this purpose.

“The two are very different, it is an issue of consent. So there should be a specific definition for this. It is very important for the State to understand this. And without a clear definition a victim of trafficking could be prosecuted for that,” she said.

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Kulhudhuffushi protests over “comatose” regional health service

Over 300 islanders staged a protest on Saturday on northern Haa Dhaal Kulhudhuffushi Island over deteriorating regional health services.

Protesters called for Health Minister Dr Mariyam Shakeela’s resignation outside the Kulhudhuffushi Regional Hospital, claiming services have deteriorated to “conditions never seen before in recent history.”

Kulhudhuffushi Island Council President Ali Mohamed said the hospital served over 60,000 people in the region, but lacked doctors and equipment.

Following the protest, doctors at the hospital refused to work today claiming they lacked an environment conducive for work. However, they resumed work at 10:30 am after the Kulhudhuffushi Island Council and Haa Dhaal Atoll Council intervened.

Meanwhile, the Haa Dhaal Atoll Council issued a statement on Thursday condemning “comatose” health care service at the hospital and warned it will hold serial protests until grievances are addressed.

In recent weeks, a woman had to be flown to Malé when doctors could not sew up an episiotomy following labor, an infant suffered damages to the head during a caesarean, and a child was stillborn despite routine checkups, the council claimed.

The Kulhudhuffushi regional hospital has not had a physician for seven months, and has only one gynecologist. Three gynecologists are needed to serve the northern atoll’s population, the council said.

The council also highlighted a severe lack of facilities on the island. The hospital has a dentist, but the dental chair has been broken for two years and three years have passed since the x-ray machine broke down, the council said.

Further, lack of antibiotic discs for culture and thyroid tests and lack of laboratory chemicals have hampered the hospital’s ability to conduct medical tests, the council said.

Healthcare infrastructure is dilapidated, surtains are old and hospital bedding is torn, the council said.

The state had only allocated MVR 1200 (US$ 77.8) for cleaning supplies for the year. When the funds are divided among the 13 islands, each health center receives MVR 7.69 per month (US$ 0.5) or enough to buy two bars of soap every month, the council said.

“The council calls on the Ministry of Health and all relevant authorities to recruit two more gynecologists, a physician, a cardiologist, ultra sound scanning machine, an x-ray machine, 4 ECD machines, two fetal Doppler and adequate supplies for and facilities in the twelve health centers in Haa Dhaal Atoll,” the statement read.

The council also claimed Shakeela had not failed to respond to repeated requests for a meeting.

In response, Shakeela told regional newspaper Kulhudhuffushi Online work is underway to improve regional health facilities and said the ministry is recruiting doctors to staff regional hospitals.

The Health Ministry is also in the process of purchasing a new x-ray machine and laboratory equipment for the Kulhudhuffushi hospital, she said. But the process will take time, as equipment is imported from abroad, she added.

The government in May announced it is seeking 225 additional doctors, and said it will place 91 medial officers in health centers across the country.

The Health Ministry has been under fire in recent weeks following a series of health scares.

On June 3, councilors of southern Fuvahmulah Island held a press conference blasting Shakeela for “worsening conditions” at the hospital.

Councilors alleged negligence in a series of medical incidents including a case of stillbirth and the death of a soldier on the island.

In February, the Indhira Gandhi Memorial Hospital in Malé transfused HIV positive blood to a patient due to an alleged technical error.

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Political parties remain deadlocked over majlis committee composition

Political parties remain at a deadlock over the composition of People’s Majlis standing committees after an attempt to hold a select committee meeting failed last night.

A parliamentary sitting was cancelled on June 17 after MPs disrupted the sitting, protesting against the “unfair” composition of Majlis standing committees.

The opposition Maldivian Democratic Party (MDP) had objected in particular to a ruling coalition majority in the government oversight committee.

The five member select committee was reconvened on Saturday night to review committee composition during which MDP MP Ibrahim ‘Mavota’ Shareef tabled a motion requesting the MDP and former ruling coalition member Jumhooree Party be given majority in key oversight committees.

Shareef requested four MDP members – two JP members and four ruling Progressive Party of the Maldives (PPM) members – sit on the government oversight committee, independent commissions oversight committee, and public finance committee.

Ruling coalition partner Maldives Development Alliance (MDA) MP Ali Mauroof submitted a motion to raise the total number of MPs in the independent commissions oversight committee and public finance committee from 11 to 13, and decrease number of MPs in the regulations committee and petitions committee to nine.

Mauroof’s proposition did not get sufficient support in the committee, before the MP walked out causing a loss of quorum just minutes before Shareef’s proposition was be put to the vote.

Three members are required for quorum. Only four of the five members were present last night. Adhaalath Party MP Anara Naeem was not in the country when the meeting was held.

Coalition majority

MDA Council Member Nazeera Ibrahim told Minivan News the “only way forward” was to ensure a majority for the ruling coalition in all committees.

“Our coalition holds the majority number of seats in the parliament. So the only way to move forward now is for us to get majority in all the committees. That is the only solution,” she said.

However, the MDP and JP have called on the PPM to compromise and allow an opposition majority in oversight committees

MDP Parliamentary Group Leader Ibrahim Mohamed Solih said that the only way forward is for PPM to allow the opposition party to fill the seats that they are ‘entitled’ to.

The MDP is entitled to four seats in three committees and three seats in nine committees as per regulations, Ibu said.

“After PPM, MDP holds the highest number of seats. So as per regulations, after PPM selects its committees, it is MDP that must get the second choice. However, in reality, PPM is allowing MDA – which holds only five seats – to have its say over that of the MDP. This is not how it should be done,” he explained.

“The question that has given rise to so much debate and disgruntlement is which three committees will the MDP get four seats in. We are saying we want the seats in committees with oversight functions,” he said.

Undemocratic

Meanwhile, JP MP Ahmed Sameer accused the ruling party of being “undemocratic” due to their efforts to garner a majority in committees with oversight functions.

“We do not believe that the governing party has to have majority in the oversight committees, while it is alright for them to lead the bill drafting committees. It is highly undemocratic of PPM to attempt to get majority in oversight committees. It is not their role, but the role of the opposition to oversee their performance,” Sameer said.

He further stated that it is “neither democratic, healthy, nor beneficial to the people” that “PPM is trying to change all parliamentarians to share their beliefs and ideologies,” alleging that the PPM had used coercion and bribery to convince some MPs to switch parties.

Sameer said he believed the PPM had encouraged Mauroof to walk out from the select committee.

“The chair of the special committee is a member of PPM. Also, PPM’s parliamentary group leader sits in the committee. A coalition partner would not have walked out without the explicit approval of the ruling party, as I see it. We cannot at all accept the government’s efforts to bring the whole parliament under their control,” he stated.

Religious conservative Adhaalath Party Spokesperson Ali Zahir confirmed that the party – with one seat in the Majlis – has also requested to be included in specific committees, while he declined to reveal which committees they were.

“The matter needs to be resolved immediately. The parties need to come to some form of compromise, and parliamentary work needs to progress for the benefit of the people. The AP has not, and will not, disrupt the proceeding of any committee,” Zahir said.

PPM MP Ibrahim Sujau declined from commenting on the matter, redirecting the questions to the party’s Parliamentary Group Leader Ahmed Nihan, who was not responding to calls at the time of press.

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Maldives off US State Department trafficking watchlist

The Maldives has been removed from the US State Department’s Tier 2 watch list for human trafficking following the introduction of legislation last December.

This year’s 2014 Trafficking in Persons (TIP) report – regarded as the key global measure of anti-trafficking efforts – sees the Maldives avoid relegation to Tier 3 along with the accompanying sanctions.

“The Government of Maldives does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so,” read the report.

The report – released yesterday (June 20) – saw Venezuela, Malaysia, and Thailand join 20 other countries deemed to be making no significant efforts to reduce trafficking.

Other states on Tier 3 include Zimbabwe, North Korea, Russia, Eritrea, and Saudi Arabia.

While the introduction of the Anti-trafficking Act in the Maldives was lauded, as well as the opening of the Maldives’ first shelter for trafficking victims and the first conviction for the offence, the report made a number of recommendations for further improvement.

“Serious problems in anti-trafficking law enforcement and victim protection remained,” said the TIP report, which noted that an unknown number of the approximately 200,000 expatriate workers in the country experienced forced labour.

Among the advice given in the report was the development of guidelines for public officials to “proactively identify” victims, noting that thousands of migrants have been deported recently without adequate screening for indications of trafficking.

A voluntary repatriation programme started last December for undocumented workers, while the government has pledged to detain and deport all undocumented workers in the capital Malé over the coming months.

The report called for greater efforts to ensure victims are not penalised for acts committed as a result of being trafficked as well as a systematic procedures for referring victims to care providers.

Recruitment and prosecution

It was noted that the newly introduced legislation made progress towards victim protection – including health care, shelter, counselling, and translation services, in addition to a 90-day in which victims can decide whether to assist authorities in criminal cases.

However, the report’s researchers observed that “victims were often afraid of making statements to the police because they did not believe effective action would be taken on their behalf.”

Blacklisted recruitment agencies – who often recruit migrant workers for up to US$4000 for non-existent jobs – often re-emerged under different names, the report explained.

A government report in 2011 revealed human trafficking to be the Maldives’ second most lucrative industry after tourism – worth an estimated US$ 123 million a year

“Observers reported that Maldivian firms could recruit large numbers of workers without authorities verifying the need for the number requested; this led to an oversupply of workers,” said the State Department report.

Minister of Defence and National Security Mohamed Nazim – also in charge of the Immigration Department – has previously announced that, within twelve months, recruitment quotas will only be issued to agencies rather than individuals.

Immigration Controller Hassan Ali was unavailable for comment at the time of publication.

It was also noted in the US report that authorities had again failed to criminally prosecute any labour recruitment agents or firms for fraudulent practices.

“Passport confiscation was a rampant practice by private employers and government ministries, who withheld the passports of foreign employees and victim witnesses in trafficking prosecutions the government did not prosecute any employers or officials for this offence.”

Furthermore, the State Department received reports of organised crime groups – some of whom were said to run prostitution rings – receiving political support.

Yesterday’s report also reiterated suggestions previously given to Minivan News by government officials regarding the disruption caused by the transfer of anti-trafficking efforts to the Ministry of Youth and Sports.

Questions over the state’s ability to implement the landmark legislation were evident throughout the Maldives country profile, as was the law’s failure to distinguish between smuggling and trafficking.

“Observers noted that trafficking-specific training was needed government-wide, especially for investigators, prosecutors and judges,” read the report.

The report’s final recommendation was that the Maldives acced to the UN Trafficking in Persons Protocol which supplements the 2000 Convention against Transnational Organised Crime.

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MDP to sue former President Waheed for defamation, damages over GMR airport deal cancellation

The Maldivian Democratic Party (MDP) is preparing to sue former President Dr Mohamed Waheed for defamation and damages over his administration’s unilateral termination of the GMR airport development deal.

The main opposition party announced in a press statement on Thursday (June 19), following a Singapore arbitration tribunal ruling that the agreement was “valid and binding”, that it would pursue legal action against the former president and other responsible parties in both Maldivian and international courts.

“Dr Mohamed Waheed Hassan Manik and his coup partners had spread falsehoods concerning the GMR agreement, incited hostility and antagonism towards the MDP among the public, and attempted to defame this party,” the press statement read.

“And [they] plunged the nation into serious strife and discord, paved for the way for a coup, and toppled the first democratically elected government of the Maldives in a coup d’etat.”

The party contended that Dr Waheed’s administration was responsible for the compensation the Maldivian government would likely have to pay GMR – which would be “a financial burden the country cannot bear” – as well as loss of investor confidence, soured bilateral relations, and the damage to the Maldives’ international reputation.

The concession agreement signed with the GMR-led consortium in July 2010 to Ibrahim Nasir International Airport was beneficial to the Maldives, the statement continued, and its abrupt termination was unlawful.

“Void ab initio”

In November 2012, following a campaign spearheaded by Adhaalath Party President Sheikh Imran Abdulla calling for the nationalisation of the airport, Dr Waheed’s cabinet declared the concession agreement void ab initio – invalid from the outset – and gave the consortium a seven-day ultimatum to hand over the airport.

On December 7, the government took over the airport and evicted GMR, prompting the Indian infrastructure giant to seek US$1.4 billion in compensation for “wrongful termination” of the contract – an amount that eclipses the country’s annual state budget.

In a letter sent to the Bombay Stock Exchange last week, GMR explained that the arbitration tribunal concluded the Maldivian government and the Maldives Airports Company Ltd (MACL) were “jointly and severally liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement.”

The determination of liability – the first of two phases of arbitration – will now be followed by the determining of compensation owed.

In the wake of the arbitration decision, Attorney General Mohamed Anil said that President Abdulla Yameen’s administration would honour the verdict while expressing confidence that the government would not have to pay the US$1.4 billion sought by GMR.

“According to the agreement, [we] mostly have to compensate for the investments made. We said we do not have to pay the amount GMR has claimed. We always said we will have to pay compensation, and that this compensation has to come through the agreement,” Anil told reporters on Thursday.

President Yameen had predicted in April that GMR would only be owed US$300 million in compensation.

False pretext

Meanwhile, addressing supporters in Malé at an MDP maahefun (traditional celebratory feast ahead of Ramadan) Thursday night, former President Mohamed Nasheed argued that opposition parties misled the public to topple the MDP government in February 2012 with false allegations.

Opposition parties at the time had claimed that privatising the international airport posed a threat to Maldivian independence and sovereignty as well as Islam, Nasheed recalled.

The concession agreement with the GMR-led consortium was characterised as detrimental to the Maldives, he added, which was used as the pretext for the “coup” on February 7.

“Today it is becoming clear to us that the agreement was valid, and that it was terminated in violation of legal principles as well as international norms, in a way that causes serious damage to the Maldivian people,” Nasheed suggested.

Referring to AG Anil’s insistence that the compensation figure would not be too high, Nasheed accused President Yameen’s administration of continuing to mislead the public.

Nasheed stressed that the amount owed to GMR as compensation was not yet clear, noting however that the arbitration tribunal has ordered the government to pay US$4 million to the company to cover its legal expenses.

“The question we are asking now is, who will be paying those dollars? The dollars will be paid from our pockets. Legal action must be taken against those responsible for us having to pay these dollars,” he insisted.

“We have to seek compensation for the damage caused to our government. We know, we can see, that President Yameen’s government will not last. We know that President Yameen’s government does not have the support of the people. They cannot rule over all of the people in this country with the support of just 25 percent of the public.”

Changing the current government was “a duty and an obligation” for the MDP, the former president said, advising supporters not to despair.

“God willing, our courage will not flag. We will not be afraid and we will not back down either,” he said.

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Gasim’s remarks vindicate MDP’s stance on “coup”: MP Imthiyaz

Gasim Ibrahim’s revelations of pressure from within the judiciary and the security services to endorse President Abdulla Yameen’s candidacy vindicate allegations of a “coup d’etat” on February 7, 2012, Maldivian Democratic Party (MDP) MP Imthiyaz Fahmy ‘Inthi’ has said.

The Jumhooree Party (JP) leader said last week that he was urged to support Yameen by judges as well as police and army officers.

Gasim had claimed at a press conference on Tuesday (June 17) that he decided to back the Progressive Party of Maldives (PPM) candidate in the presidential election run-off in November 2013 after the requests “for the sake” of the institutions.

Speaking to Minivan News, MP Imthiyaz noted that the MDP had maintained that “sections of the judiciary, the military and the police were part of the coup and the subsequent unlawful and unconstitutional interference in the presidential and the parliamentary elections.”

“Now this truth is coming straight from the horse’s mouth,” the re-elected MP for Maafanu North observed.

“If the judiciary, the military and the police were to decide who should hold the office of the president then it gives a horrifying message. And in fact it happened as they demanded, thus people’s power was violated.”

Kingmaker

Gasim had said that judges as well as police and army officers had met him personally and appealed to him to support the PPM candidate.

“Otherwise we had been silent [on endorsing a candidate] and neutral. We made that decision after considering the unrest and instability and possible harm to the public caused by the rising political tension,” the business tycoon had said.

He also claimed to have spent MVR20 million on Yameen’s campaign in the three days leading up to the run-off polls on November 16.

After finishing in third place with 23.27 percent of the vote in the repeat first round of the presidential election, Gasim initially announced that the JP would not back either candidate.

However, the JP’s council reversed its decision to remain neutral following a meeting between Gasim and PPM leader Maumoon Abdul Gayoom.

Former President Mohamed Nasheed had emerged the frontrunner in the first round revote with 46.93 percent while Yameen polled 29.73 percent.

After endorsing Yameen, Gasim told the press that the JP decided to form a coalition with the PPM in order to “[overcome] the challenges faced by police, military and the judiciary, to save them from undeserved allegations made against them by certain groups, to maintain the independence of this Ummah [Islamic community] and nation, and for the protection of our religion and motherland.”

Meanwhile, at last week’s press conference, JP Deputy Leader Ilham Ahmed insisted that the police, army, and judiciary would “bear witness” to the truth of Gasim’s claim.

However, online news outlet CNM has since reported that the Maldives National Defence Force (MNDF) has denied asking the JP leader to back Yameen while the police declined to comment.

Troubled polls

Last year’s presidential election was marred by repeated delays, multiple cancellations, a Supreme Court-ordered annulment and police obstruction.

On October 7, the Supreme Court annulled the results of the first round of the polls conducted on September 7 in a controversial 4-3 decision – citing a confidential police report – despite unanimous positive assessment of the polling by more than a thousand domestic and international election observers.

While the secret police report alleging irregularities – which was not shared with the Election Commission’s (EC) defence lawyers – was dismissed by a UN expert review, the credibility of the evidence cited by the apex court was also questioned by the Human Rights Commission of Maldives after it emerged that some citizens were incorrectly recorded as being deceased.

The Supreme Court’s decision came after Gasim sought annulment of the first round results alleging widespread electoral fraud.

In what was the EC’s sixth attempt in two months to conduct polls, Yameen narrowly defeated Nasheed with 51.39 percent of the vote (111,203) to the MDP candidate’s 48.61 percent (105,181).

In January, Nasheed told reporters that the MDP suspected electoral fraud using fake national identity cards in November’s polls, contending that non-existent people were added to the database at the Department of National Registration (DNR) as part of “efforts to rig the election through the Supreme Court.”

MP Imthiyaz meanwhile noted that Gasim has now “publicly admitted” that judges met the business tycoon seeking his endorsement of the PPM candidate.

“What do you expect when an election case goes before the court at the request of the court itself? This was how the country’s democracy was completely destroyed,” Imthiyaz said.

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Government will honor arbitration verdict, says attorney general

President Abdulla Yameen’s administration will honor a Singaporean tribunal’s ruling on compensation owed to Indian infrastructure GMR for the terminated airport development deal in order to uphold investor confidence, Attorney General Mohamed Anil said.

The Rt Hon Lord Hoffman’s Tribunal on Wednesday found the contract termination to be wrongful and ordered the Maldives government and Maldives Airports Company Pvt Ltd (MACL) to compensate GMR for losses.

The exact figure is to be set in the next phase of arbitration.

Speaking to reporters this morning, Anil said he is certain the figure will not amount to GMR’s initial claim of US$ 1.4 billion – the figure eclipses the country’s annual budget.

“According to the agreement, [we] mostly have to compensate for the investments made. We said we do not have to pay the amount GMR has claimed. We always said we will have to pay compensation, and that this compensation has to come through the agreement,” explained the AG.

“That is why the compensation amount has been limited. This amount will not go up to the US$1.4 billion GMR is claiming,” Anil said.

He called the limitation of damages a success for the government of Maldives.

In April, Yameen predicted GMR would only be owed US$300 million in compensation.

Minivan News understands the concession agreement allows MACL to terminate the agreement for reasons of public interest and imposes a cap on losses.

A lawyer familiar with the case said the government must thank the Maldivian Democratic Party (MDP) – under which the GMR won the concession – for its foresight in inserting the clause.

The lawyer further said that the government had chosen to terminate the agreement “in the worst possible way” despite the existence of provisions for lawful termination.

“And in the process, it affected foreign investor confidence in the Maldives, the country’s reputation and it strained our relationship with India,” he added.

GMR won the 25-year concession agreement to develop and manage Ibrahim Nasir International Airport under former President Mohamed Nasheed. The US$ 511 million deal was the country’s single largest foreign investment.

The opposition at the time attacked the deal as part of a vitriolic anti- government campaign, which eventually led to Nasheed’s ouster in February 2012.

In December 2012, new President Dr Mohamed Waheed declared the agreement void ab intio – or invalid from the outset – and gave GMR seven days to leave.

The agreement’s abrupt termination saw cooling of relations with neighbor India and questions regarding foreign investor confidence in the Maldives – issues Yameen has sought to address since his election in November.

The World Bank in December said GMR compensation will place severe pressure on the country’s already “critically low” foreign reserves.

As of April 2014, the Maldives’ gross foreign reserve stood at US$ 434.8 million. Meanwhile, the total outstanding external debt at the end of 2013 stood at US$ 793.6 million dollars. Debt amounts to 34.6 percent of the country’s GDP.

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