Proposed budget faces cross-party criticism

The state budget for 2013 submitted to parliament by Finance Minister Abdulla Jihad has come under heavy criticism from both opposition and government-aligned parties during last week’s 16-hour budget debate.

Speaking during Thursday’s sitting, Majority Leader MP Ibrahim Mohamed Solih ‘Ibu’, parliamentary group leader of the formerly ruling Maldivian Democratic Party (MDP), contended that the proposed budget could not be salvaged or improved through amendments.

Ibu suggested that parliament should “set this aside” and approve enough funds for the state to function in the first three months of 2013.

“After that, appeal [to the government] to propose a budget that is beneficial to the whole nation and represents all constituencies. I don’t believe we can implement this budget any other way,” the majority leader said.

Ibu argued that the estimated revenue of MVR 12.9 billion (US$836 million) was unlikely to materialise.

“This [projected income] includes MVR 1.8 billion (US$116 million) in new revenue. [But] this will not be received,” Ibu asserted.

The MDP MP for Lhaviyani Hinnavaru explained that parliamentary approval would be required for the new revenue raising measures, such as reversing reduced or eliminated import duties, hiking T-GST to 15 percent, raising the airport service charge from US$18 to US$30 and introducing GST for telecom services.

Ibu claimed that the import duty revision to raise tariffs on oil “will not be passed in this Majlis,” calling on the budget review committee to scrap the estimated revenue forecast from import duties.

The MDP would not support increasing T-GST without consultation with the tourism industry, he added.

Predicting that the revenue in 2013 would reach “only MVR 11 billion at most,” Ibu warned that income would not be enough to meet recurrent expenditures on salaries and administrative costs.

Moreover, the fiscal deficit would be considerably higher than the forecast of six percent of GDP, he contended.

“The Finance Minister said the budget deficit in 2013 would be MVR 2.3 billion, that is MVR 2 billion less than the current year. This, too, is a serious deception,” he said, adding that the figure would be closer to MVR 5.9 billion (US$382.6 million) or higher than 10 percent of GDP.

Ibu also noted that while US$50 million was to be taken as foreign loans at an interest rate of 10 percent for budget support, the Finance Ministry did not include any information of the supposed lender.

“The [budget] document says we don’t yet know where the money is going to come from,” he said.

With a public debt-to-GDP ratio of 85 percent at the end of 2013, Ibu said international financial institutions would declare the Maldives “bankrupt.”

The majority leader also criticised Finance Minister Jihad for failing to mention budgeted salary increases for military and police officers as well as plans to hire 800 new officers for the security services.

Combined with the transfer of about 5,400 employees in the health sector to the civil service, Ibu explained that the wage bill would shoot up by 37 percent.

Ibu further questioned whether funds would be available to implement the proposed public sector investment programme (PSIP) of MVR 3.1 billion (US$201 million).

“I am saying that not even 25 percent of this MVR 3 billion PSIP can be implemented next year,” he said, adding that details of lenders for the proposed loans were not provided.

Ibu also protested that the only project for Hinnavaru in 2013, the sixth largest population in the country, was a youth centre worth MVR750,000 (US$48,638).

Echoing the concerns of the parliamentary group leader, MDP MP Eva Abdulla revealed that MVR 6 million (US$ 389105) was added to the budget of the Maldives National Defence Force (MNDF) following the controversial transfer of presidential power on February 7.

Since the MDP government was ousted in the wake of a police mutiny on February 7, Eva said that the police and army have hired 250 and 350 new staff respectively.

Consequently, the institutions spent more than MVR 75 million (US$4.8 million) in addition to the approved budgets for 2012, she claimed.

The proposed budget of MVR 930.9 million (US$60.3 million) for defence expenditure in 2013 was meanwhile 14 percent higher than 2012.

Eva observed that the increase in the government’s wage bill of 37 percent was approximately MVR1.7 billion (US$110 million), which was also the amount allocated for harbour construction in the 2013 budget.

These funds should instead be spent for “harbours, education, sewerage and housing,” she argued.

“I know that the coming year is an election year. But what we know from the experience of [the presidential election in] 2008 is that the election cannot be won by adding employees to the government,” she said.

Coalition partners

Meanwhile, minority leader MP Abdulla Yameen, parliamentary group leader of the Progressive Party of Maldives (PPM), said that the government’s objectives or policies could not be discerned from the proposed budget.

“These projects are very random or ad hoc. The government’s planning should be better than this,” he said.

While continuing deficit spending and accumulating high levels of public debt was a serious concern, “a good thing about this budget is that it hasn’t considered taking funds from the MMA’s [Maldives Monetary Authority’s] ways and means account, or in common language printing money, to finance this MVR 4 billion (US$259 million) [deficit].”

Financing the deficit with loans from the central bank leads to depreciation of the rufiyaa and rising inflation, Yameen said.

Securing commercial or concessional loans to plug the deficit was however “fine in itself if it can be repaid,” he added.

While President Dr Mohamed Waheed Hassan Manik has noted the high salaries paid by institutions such as the People’s Majlis as “a serious problem,” Yameen said he could not see “any kind of sign” of reducing recurrent expenditure or salaries and allowances for government employees.

In his budget speech last month, Finance Minister Jihad noted that almost half of recurrent expenditure was paying salaries and allowances.

On the proposed revenue raising measures, Yameen said PPM could not support introducing GST for telecom services.

“I believe there should be ways to raise income for the government without taking this tax. Therefore, we, our party, cannot support trying to get MVR 200 million (US$12 million) in additional income through imposing GST on telecommunications,” he said.

Concurring with the MDP parliamentary group leader, Yameen called on the government to consult the Maldives Association of Tourism Industry (MATI) to determine whether the sector would be adversely affected by the proposed T-GST hike from 8 to 15 percent.

Government-aligned Jumhooree Party (JP) Leader MP Gasim Ibrahim, business magnate and chair of the budget review committee, said that parliament should consider the economic and social impact “at the micro-level” of the proposed revenue raising measures.

Gasim urged MPs on the budget committee to assess the costs and benefits of the proposed measures, noting that increasing import duties would lead to higher prices.

The MP for Alif Dhaal Maamigili appealed against proposing “unrealistic and empty documents” with the budget and pledging infrastructure projects that could not be delivered.

“The budget we passed for this year was in reality higher than MVR 16 billion (US$1 billion). But coming to year’s end we know from the revised budget that we achieved about MVR 12 billion or MVR 13 billion. So we are actually showing a dream to the public. We are intoxicating them with hopeful fantasies,” he said.

MP Visam Ali of the government-aligned Dhivehi Rayyithunge Party (DRP) meanwhile said it was regrettable that a sizeable portion of the population did not have access to “basic services” such as sewerage, water and electricity while the GDP per capita was forecast to exceed US$5,500 in 2013.

With public debt projected to reach 82 percent of GDP next year, Visam said immediate steps were needed to avoid “bankruptcy”.

She added that it was questionable whether the proposed revenue raising measures could be approved next year as the government had yet to submit any of the amendments or bills required for its implementation.

Visam also expressed concern with administrative costs for government offices increasing by more than MVR 500 million (US$32.4 million) in 2013 compared to this year, noting that it diverts funds away from the public sector investment programme.

In a recurrent complaint of most MPs who spoke during the budget debate, Visam said the two islands in her constituency were neglected in terms of development projects in 2013.

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DRP will not back “personal and emotional” no-confidence vote against defence chief: MP Mausoom

The Deputy Parliamentary Group Leader of the government-aligned Dhivehi Rayyithunge Party (DRP) MP Abdulla Mausoom has stated that there is no ‘spirit’ within his party to support the no-confidence motion against Defence Minister Mohamed Nazim.

Mausoom said although the DRP would support no-confidence motions against cabinet ministers where it thought such actions were justified, he believed the party would not back the Maldivian Democratic Party (MDP) in trying to remove Nazim as defence chief as part of a “personal vendetta”.

In opposing the motion filed by the MDP, the MP said that while not speaking officially on behalf of the DRP whip line, he was nonetheless expressing the views of party members and MPs.

MDP Spokesperson MP Hamid Abdul Ghafoor stated that the MDP did not wish to make a comment on Mausoom’s remarks but said that it was rather “surprising” for a person in such a high position to “speculate on a party’s whip line”.

“We would really like to see DRP follow a strict recipe rather than a random salad in their whip line. They ought to be clear of what their stand is,” Hamid added.

However, Mausoom dismissed Hamid’s statement, claiming that the MDP’s no -confidence motion against Defence Minister Nazim had been forwarded for “personal and emotional” reasons. The Kelaa constituency MP added that the DRP would not assist anyone in settling personal scores.

“The DRP believe that we have had enough of President Gayoom and President Nasheed. We are not in the mood to support anything that is not in the interest of this nation,” he told Minivan News.

Mausoom contended that MDP would not be able to pass such “personal-vendetta based motions” and repeated his claim that the motion lacked sufficient grounds to support its cause.

“DRP would not be reluctant to support a no-confidence motion of a cabinet minister if there are sufficient grounds to pass a no-confidence motion. We would vote anyone out if we had to, but not on personal grounds,” he said.

Asked if his comments were influenced by some DRP MPs and councillors quitting the party over its recent stand in supporting a decision to take an impeachment vote against President Dr Mohamed Waheed Hassan via secret ballot, Mausoom denied the suggestion.

DRP MPs Mohamed Hussain and Ali Saleem announced in the media that they have quit DRP over the party’s stand on the vote to make impeachment vote a secret ballot. The parliament passed the motion by a 41 to 34 majority after several DRP MPs chose to vote with the opposition in favour of the motion.

“Recent events that took place did not affect DRP. We have not got any reports that DRP councillors are quitting the party. It is just PPM councillors who had been working in the name of DRP that are leaving the party following the recent Supreme Court ruling,” he explained.

The Supreme Court recently struck down a clause in Decentralisation Act that barred councillors who had been elected under a party ticket from defecting to another party while in office.

“We believe that the current constitutional system greatly distinguishes the threshold of power between the executive and the parliament. We will not support motions to remove cabinet ministers for personal vendettas, because we believe that it is a duty of all political parties to safeguard the democratic values in the constitution,” he added.

Speaking yesterday to local media, Mausoom stressed that his party would aim to leave behind the country’s political past.

“The parliament has done a lot of things with regard to the emotional sentiments of 30 years [of former President Maumoon Abdul Gayyoom] and three years [of former President Mohamed Nasheed]. Several bills, resolutions and cases have been filed. Lots of time has been wasted. DRP will not support any such thing submitted to parliament, be it PPM or MDP,” he said

Mausoom also warned the MDP of an impending “humiliation” should the main opposition party continue its pursuit of the defence minister’s dismissal.

“If the MDP parliamentarians do not want be humiliated in the parliament floor, if they do not wish to upset their grass root members, I call upon the party to withdraw the no-confidence motion filed against Defence Minister Nazim,” he said.

Mausoom, who previously served in the position of Tourism Minister during the Gayoom era, added that the no-confidence motion lacked a rationale in proposing to impeach the cabinet minister, alleging that the MDP sought to intimidate the government.

“The real motive of the MDP in filing the no confidence motion is to intimidate the government and to waste the time of parliament,” he said.

Mausoom stated that despite his remarks, the party had not yet decided on the matter. However, he claimed that the “general conscience” of the members of his party was “not in favour of impeaching Nazim”.

“Desperate attempt to weaken the government” – Defence Minister Nazim

The opposition MDP filed a no-confidence motion against the Defence Minister last Thursday, alleging he had misused his authority as the Acting Transport Minister by using the military to influence termination of civil contracts involving the government outside of due legal procedure.

The motion followed the government’s decision to void the agreement between itself and Indian infrastructure giant GMR over developing Ibrahim Nasir International Airport (INIA).

Defence Minister Nazim, who temporarily took over the transport ministry following the sacking of former Transport Minister Dr Ahmed Shamheed, played a pivotal role in the eviction of GMR agreement.

In a brief interview given to local media following the MDP’s decision to push a no-confidence motion against him, Nazim stated that move was a “desperate” attempt to weaken the government of President Mohamed Waheed Hassan.

“I believe such votes are taken to weaken this government. I do not believe such votes or motions could weaken this government. I believe the current government is very firm and united. There is a very strong between the partners of the government coalition; therefore I must say they won’t be able to succeed in such votes. This government is functioning far better than that,” he told local media outlet Sun Online.

Nazim also contended he had not done anything for which the opposition should impeach him, adding that his appointment to cabinet was unanimously decided by parties in the coalition government.

The defence minister also expressed confidence that the parliament members from government-aligned parties would defend him in a vote.

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Government takes over airport, evicts GMR

Indian infrastructure giant GMR has handed Ibrahim Nasir International Airport (INIA) over to the state-owned Maldives Airports Company Limited (MACL), after the Maldivian government voided the concession agreement and gave it seven days to leave the country.

The sudden eviction of the developer – which won a 25 year concession under the former government to manage and upgrade the airport – scraps the project, which at US$511 million was the single largest foreign investment in the Maldives.

GMR had clung to the terms of its concession agreement while the government fanned growing nationalistic and anti-India sentiment. On November 27, President Mohamed Waheed’s cabinet declared the agreement ‘void ab initio’ – invalid from the outset – and ordered the developer to leave.

With arbitration proceedings already underway in Singapore over the contested airport development charge (ADC), GMR received a stay order on its eviction and appeared confident of its legal position even as the government declared that it would disregard the ruling and proceed with the eviction as planned.

On December 6, a day prior to its eviction, the government successfully appealed the injunction in the Supreme Court of Singapore. Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

That verdict, effectively legalising the sovereign eviction of foreign investors regardless of contractual termination clauses or pending arbitration proceedings, was “completely unexpected”, according to one GMR insider – “the lawyers are still in shock”.

A last ditch request for a review of the decision was rejected, as was a second attempt at an injunction filed by Axis Bank, GMR’s lender to the value of US$350 million.

Following a meeting with staff yesterday, GMR issued the following statement:

“In deference to the orders of the Court of Appeals, Singapore; GMR Male International Airport Ltd (GMIAL) will facilitate a smooth takeover of the Ibrahim Nasir International Airport (INIA) by the Maldives Airport Company Ltd (MACL), effective midnight tonight.

GMIAL has been assured that as a result of this takeover all its employees, suppliers and other interested parties will not be put to any inconvenience. GMIAL remains committed to finding a suitable solution to this situation. We are taking requisite steps to work out the compensation receivable from the Government of Maldives, keeping in mind the judgement of the aforementioned court and the concession agreement dated 28th June 2010.

All actions as above are without prejudice to our legal rights and statements made before various courts/tribunals where matters are currently being pursued or likely to be taken up.”

An invitation-only press conference to mark the handover was held by Defence and Acting Transport Minister Mohamed Nazim in the airport VIP lounge at midnight. Minivan News understands that GMR did not participate for legal reasons.

During the ceremony, Finance Minister Abdulla Jihad presented the official handover documents to MACL Managing Director Mohamed Ibrahim, and said that the Maldives would pay whatever compensation was required “however difficult”.

Economic Minister Ahmed Mohamed claimed the eviction would enhance investor confidence:

“Investor confidence will only increase when they know that Maldives will do everything in accordance with the law,” Haveeru reported the minister as saying.

Attorney General Azima Shukoor expressed hope that the compensation would be lower than anticipated.

Estimates as to the amount of compensation for which the government is liable have ranged from the US$220-240 million GMR estimated it has already invested, up to US$700 million – a sizeable chunk of the country’s GDP.

Apart from the size of the compensation is the Maldives’ ability to ultimately pay, given the crippled state of its domestic economy.

Finance Minister Jihad in late October warned that the Maldives would be unable to pay government salaries without a promised US$25 million loan from India.

A month later, amid rising anti-India sentiment over the GMR issue and a diplomatic incident triggered by the government’s spokesperson, Jihad described India’s calling in of US$100 million in existing loans as “not a major concern”. The debts, he said, would be paid from the state’s reserves, which local media at the time reported could fall to as low as US$140 million (MVR2.2 billion) once the payments to India were settled.

An International Monetary Fund (IMF) delegation in November warned that the Maldives’ financial reserves “have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over.”

Further pressure on reserves came from a ballooning public debt ratio, “which now stands at over 80 percent of GDP, and has helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on reserves,” the IMF warned.

Presenting the 2013 budget to parliament in late November, Jihad warned of “bitter consequences” should the spending trend continue.

His target budget deficit of 6.1 percent in 2013 takes into account a raft proposed revenue raising and cost cutting measures which would impact the tourism industry – such a proposed tourism GST increase to 15 percent – and require parliamentary approval.

Further modernisation of the airport – or even completion of the existing upgrade – is likely to require extensive outside assistance or further loans. The rusting foundations of GMR’s new terminal sits on 60 hectares of newly reclaimed land on the airport island, after the government ordered a halt to the development in August. Large sections of the old terminal remain boarded up for construction work, which the government’s ability to proceed with is in doubt.

Further modernisation of the airport is likely to depend on outside assistance. President’s Office Spokesperson Masood Imad told Indian newspaper The Hindu yesterday that after reclaiming the airport, the government would again float a tender for its modernisation “and get more parties in to take the work forward.”

“The tender will be floated by the Maldives government in a transparent manner and after consulting investors. The mistakes made during the float of the tender which has been cancelled will not be repeated,” Imad told the paper.

Environment Minister Dr Mariyam Shakeela has meanwhile separately appealed to China for financial and technical support, telling journalists from the Chinese government’s authorised web portal China.org.cn that the Maldives “needs funds for infrastructure building.”

“We are obviously in need of funds and technical assistance as we do not have the financial means, the technical know-how or the capacity to address these huge climate change issues,” said Mariyam, in an appeal for assistance with climate adaptation.

The government has dismissed speculation Chinese involvement in the development, however Minivan News has learned that senior Chinese military officials landed at the airport in the tense week leading up to the handover, even as India warned of “adverse consequences” should the government proceed with forceful eviction.

India’s reaction after the Singapore Supreme court ruling was muted. Ministry of External Affairs Spokesperson Syed Akbaruddin said the ministry was “studying” the judgement and that their lawyers “need to understand it”.

“There are two issues in the case – one the sovereign right of a nation and other the legality of the agreement, which was linked to compensation to GMR and its associates in Malaysia, he said the latter part has not been “affected or responded” in today’s judgement.

“These issues are not affected with the judgement or not responded to. Fulfilment of all legal process and requirement is what we want to see in this case and we hope that all relevant contracts and agreements would be adhered to and all legal process are carried through,” he said.

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Comment: Through the looking glass

‘Democracy, freedom, human rights have come to have a definite meaning to the people of the world which we must not allow any nation to so change that they are made synonymous with suppression and dictatorship.’ Eleanor Roosevelt, September 28, 1948.

The Soviet dictator, Joseph Stalin allegedly said that ‘The death of a man is a tragedy; the death of millions is a statistic.”

Although this may be attributed to his lack of humanity, it also makes a salient point about the nature of 20th century dictatorships. Like Pol Pot and Mao Zedong, Stalin belonged to an exclusive group of dictators who wielded enormous power and exterminated millions of people who stood in their way.

Although Gayoom’s dictatorship in the Maldives was never in the same league, the political constructs were the same: the monopoly of the press, iron-fisted control of the judicial system, one party rule and the torture of political opponents as a tactic to stay in control.

However, in the late 1970s, just as Gayoom was beginning to spread his tentacles of power in the Maldives, globally, the tide began to turn in favour of democratic ideals. The fundamental concepts of life, liberty, justice, equality and the notion of the common good made a come-back. Concurrently, the word ‘dictator’ which was synonymous with absolute power and authority, became a term of ridicule, of derision, signalling an appalling inability to change with changing times.

But have dictatorships, like the famous parrot immortalised by Monty Python, ceased to be, expired and gone to meet their maker and become bereft of life? Have they kicked the bucket, run down the curtain and gone to join the bleeding choir invisible?

There are two realities that people of liberal persuasion must grasp. Firstly, despite the Arab Spring and strong forward movements by democratic ideals, conservatism as a trend has re-asserted itself. The Empire has struck back, nurturing the same ideology but armed with a different set of tools. It has reinvented itself and like a chameleon, reappeared in a different guise; one that is more in tune with the 21st century political landscape.
Secondly, and most importantly, democracy is worth fighting for. Its defining characteristics of justice, inclusiveness and equality are universal values that give dignity to human life. Despite the slow encroachment of conservative and elitist ideologies, democracy is not finished, it is close at hand and its worth demands our sacrifice.

But beware! Today’s dictator is not in a uniform covered in gold-plated medals; nor is he an object of ridicule generating derisive laughter. He is well spoken, cosmopolitan and media savvy. His CV and certificates on the wall may indicate strong academic connections that validate his claim to good governance and commitment to progressive ideals. He is Putin of Russia. He is Mohamed Morsi of Egypt. He is Mohammed Waheed Hassan of the Maldives. They are the new face of dictatorships in the 21st century.

Shimon Peres, one of the recipients of the Nobel Peace Prize in 1994 said, “Today, if you are looking for a safe job, don’t become a dictator.” The world has become less forgiving of human rights abuse, torture and mass killings. Dictators not only have to show restraint in their own personal inclinations and hide their draconian political agendas, but they also have to dress their actions in a different style. Thus the art of equivocation has been perfected by modern dictators. They understand that excessive violence in the tradition of Tiananmen Square is no longer possible, but they still relentlessly punish their opponents. They stand behind what seems a set of progressive laws, but they are masters of the selective application of these.

Waheed’s government in the Maldives provides an almost text-book study of this type of dictatorship; its creative double-talk masking its overwhelming cruelty and desperate grasping for control.

His search for legitimacy and global recognition came early. One of his first political engagements was to write to heads of states to explain why he was forced to take over power. He proactively set the scene: here was a man of reason, who could articulate his noble intentions in rational and practical terms; here was a man who could be trusted to work with the international body. However, almost simultaneously, on his home-turf, the members of his police and the armed forces, who helped to place him in the presidency, were executing a reign of terror, previously unseen in the Maldives.

According to a reply written to Waheed’s letter by Mike Mason, the Energy adviser to President Nasheed, Waheed is ‘committed to Maldives and Democracy.’ But Mason fails to distinguish between a simplistic, self-indulgent, self-deluding belief in democracy on the one hand and the physical responses and actions which totally destroy democracy on the other hand. Mason simply underlines what many of us know – Waheed is a superficial individual who lacks the intelligence to see beyond his rhetoric. He has never demonstrated his commitments to democratic principles.

Proof of this can be seen in his rewarding the armed forces with resort islands, promoting and increasing their salaries as opposed to bringing to justice the police and defence force members who brutally attacked innocent Maldivians and vandalised public property. The proposed budget for 2013 would see an increase of the defence spending by 14 percent. Instead of promoting democracy he is paving the way to a military dictatorship. All signs indicate that such a fate is not far.

Meanwhile, the IMF mission, in November this year spoke of ‘a ballooning fiscal deficit’ the effects of which are felt by the average Maldivians who are struggling, not simply because of the global economic recession, but due to the moribund economy based on the debilitating corruption and nepotism condoned by the Waheed, Gayoom, Military consortium. In doing so he is destroying meritocracy, the civil service, the level playing field and the acceptance of differences that exist in a true democracy.

Waheed speaks of Maldives as ‘a damn good democracy’, yet he has denied the people their call for an early election, disregarding the advice by international bodies such as the EU and the Commonwealth to do so. There are increasing allegations by MPs that his government’s bullying tactics are creating a ‘climate of fear’ in the People’s Majlis.

Ostensibly he stands for tolerance, yet his bedfellows and support base include the Salafists. The country is fast sliding into a fundamentalist nightmare where an Adhaalath ( The Islamist party) aligned MP has recently gone so far as to call for one of his opponents to be ‘hanged to death’. Journalist and writer, Azra Naseem, points out that in ‘a damned good democracy’ the president describes his Islamist supporters as ‘Mujaheddin, fighting a Holy War.” All these add to the climate of intolerance, hatred and escalating violence.

New age dictators like Waheed claim to stand for law and justice. The Maldives for instance, has a constitution. But the new dictator of the 21st century is adept in the selective application of this justice. Putin for example uses his fire and health regulations to close down opposition radio stations and newspapers. But the same rules are not applied to his supporters. In the Maldives also, justice is used to destroy opponents; and this together with the failure to bring to justice more urgent cases that need addressing, creates a tangible state of injustice.

Waheed’s main focus is to prevent the former president, Mohamed Nasheed, from participating in the next elections. Meanwhile the immensely corrupt judicial system and the Chief Judge of the Criminal Court, Judge Abdulla Mohamed continue to high-jack any efforts to make progress in this all important sector of the state.

Like the dictators of the past, Waheed continues to use propaganda to white-wash the actions of his government and its supporters. However, the style today is more subtle. The regime’s narrative is disseminated in a two- pronged programme. The first and the most expensive, and possibly the least effective, has been the employment of the Ruder Finn PR company at a cost of US$150,000 a month. Fortunately for the seekers of truth, the contract was terminated in November this year: it is not clear whether the bankrupt Maldivian government ran out of money to fund this type of expensive hobbies, or that the company came to the inevitable conclusion that some clients are just too toxic for it to be associated with.

The second, and the most direct, has been the narrative constructed by the regime: the building of metaphors, the framing of issues and the controlling of the political dialogue that help their cause. Here MDP is depicted as an aggregate of drug taking, alcohol swilling people who lack any respectability. Nasheed is attacked personally and presented as a cynical opportunist who uses the democratic platform to get to power for personal gain. We have to ask why?

Is this because they have no other way of attacking Nasheed? Could it be that his actions, unlike the words of the dictator, speak louder? During the three short years under MDP, a comprehensive system of old age pension was introduced and access to health care for all Maldivians improved. For the first time, the outlying islands began to get the recognition and support they deserve. There was development in infrastructure. Travel between the islands was upgraded with a more efficient transport network and the fiscal deficit, the legacy of neglect of Gayoom’s regime, was attended to. In 2010 IMF reported that ‘the government of Maldives has put together and is implementing a set of essential fiscal adjustment measures’, but in April 2012 under Waheed, it raised “grave concerns for the Maldives economy.”

It is not surprising that in the recent by-election in Raa Atoll, a regime stronghold, MDP support shot up by 120 percent. It is obvious that they cannot attack the actions of their opponents, so they are reduced to attacking the people involved.

Waheed’s political vicissitude does nothing to inspire confidence, either in his own people or in international stake-holders. Some see his failure as a result of the hand he was dealt with, which was “almost impossible to play.” Others question his intelligence; the type of intelligence that functions when cocooned in an ivory tower, is different to that which is required in running a state. Some comment on his poor work ethic or his inability to commit to any one objective. Perhaps there are elements of truth in all these, but the defining weakness is in his ideological stand.

Dictators may appear to have made a come-back. But within their success in reinventing themselves, and gaining support though the dangerous game of deception, lie the seeds of their own destruction. A dictatorship is a dictatorship, however it is packaged.

Abraham Lincoln was believed to have said, “You can fool some of the people all of the times, and all of the people some of the time, but you cannot fool all of the people all of the time.”

The new-age dictator cannot have it both ways. Despite ‘candid’ letters and high sounding rhetoric, a dictatorship is not a democracy and we must never let ambitious despots use democratic jargon to gain legitimacy.

The passage of time has become the greatest witness to Waheed’s failure. Nine months has elapsed since the coup and the political and social landscape is littered by the fall-out of his inability to lead. Violence has escalated, government influence of the media has increased and Islamic fundamentalism has been allowed to grow into a forceful political power. Even Waheed has been forced to admit that “everybody runs the state as they please.”

Personal freedoms have declined as has the standard of living of the majority of Maldivians. The state is bankrupt and the government’s financial and political supporters cannot seem to grasp the simple fact that the Maldives is a vulnerable, small state that needs the goodwill of its neighbours.

Crucially in this political wilderness, the police and the armed forces have been permitted to do as they please. Time has shown that Waheed’s brand of dictatorship is not working. This begs the question: will he move up to the next level of dictatorship and use more force or, while he is procrastinating and thinking of the appropriate rhetoric, will the police and the armed forces take the initiative and establish themselves as a military government? Sadly, none of these impending eventualities are in the best interest of the people of the Maldives. But, these are the only two alternatives for Waheed’s government.

There is room for optimism, however. The greatest danger to dictators has never been the well-meaning bureaucrats hidden behind glass windows of high rise buildings. The most feared opposition to injustice and authoritarian rule has always been the ordinary people. Democracy, as an ideology is global. Its strengths are firmly embedded in universal and timeless ethical values. It is not simply a convenient aphorism to claim that human progress towards its full potential has little to do with technology and materialism but has everything to do with the way we learn to treat each other. Democracy is a potent force that will not be beaten. As Victor Hugo said, “There is one thing stronger than all the armies in the world, and that is an idea whose time has come.”

As the world slides down to economic recession, the opposing forces of democracy and dictatorship are equally balanced globally as they are in the Maldives. The traditional caretakers of democracy, America, Europe and the Commonwealth, are focused largely on the internal, economic problems of their respective nations. It would appear that the coast is clear for men who lust for absolute power, to seize the moment.

However, paradoxically, economic hard-times can also make the self- interest of dictators and the lifestyles of their elitist friends stand out in stark contrast to the poverty and the struggle of the ordinary man on the street. The masses, no longer kept distracted by ‘bread and circus.’ can rise again.

Nothing is as powerful as the will of the people.

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

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Supreme Court criminalises offences within the exercise of freedom of assembly, expression

The Supreme Court decided in a 6-1 ruling last week that the police should investigate criminal offences carried out within the exercise of the rights to freedom of assembly and expression.

The ruling comes in a case filed by the Attorney General in September requesting the court to determine that public disturbances in the name of political protests were not within the scope of the rights guaranteed in the constitution.

These included protests outside private residences late at night, use of defamatory language and incitement to violence – “calling for people to be killed, hanged and attacked.”

The Supreme Court was asked to declare that such actions infringed upon the right to life, liberty and security of persons (article 21); the right to privacy and respect for private and family life (article 24); the right to protect reputation and good name (article 33); and special protection for children, young, elderly and disadvantaged people (article 35).

The apex court ruled that activities that violate “public safety, health, tranquillity and morality” could be considered criminal offences and falls within the purview of the security services.

The case was filed by the Attorney General following months of protests by the formerly ruling Maldivian Democratic Party (MDP) and the dismantling in March of the party’s protest camp by security forces.

President’s Office Spokesman Masood Imad told Minivan News last month that the government fully supports the right to protest, but it needs to be done in such a manner that does not adversely affect the lives of others.

“A protest should be about changing something. A protest conducted in residential areas has nothing to do with parliament. Public protest and public nuisance are two very different things,” he contended.

The MDP meanwhile likened the move to Bahrain’s efforts to outlaw protesting.

“The MDP strongly condemns efforts to restrict freedom to assembly by the government. One of the most fundamental clauses in the new constitution is the right to protest and we are witnessing democratic gains fast slipping,” said MDP Spokesperson Hamid Abdul Ghafoor.

Dissenting opinion

In his dissenting opinion, Justice Ahmed Muthasim Adnan – the only Supreme Court Justice with a background in common law – concluded that establishing a judicial guideline for the exercise of rights and freedoms was not within the remit of the Supreme Court.

He contended that such principles “should be determined in a law passed by the People’s Majlis.”

Justice Adnan noted that the case was considered ‘ex parte’ or conducted for the benefit of one party.

He noted that according to article 16 of the constitution, the rights and freedoms enshrined in chapter two were “subject only to such reasonable limits prescribed by a law enacted by the People’s Majlis in a manner that is not contrary to this Constitution. Any such law enacted by the People’s Majlis can limit the rights and freedoms to any extent only if demonstrably justified in a free and democratic society.”

It was therefore clear that rights and freedoms could only be restricted or narrowed through a law passed by parliament, Justice Adnan added.

The Attorney General’s request was not a matter to be decided by the Supreme Court, he concluded, as “these problems should be proposed to the People’s Majlis for a solution.”

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Maldives omitted from 2012 global corruption index due to “insufficient data”

The Maldives has been omitted from Transparency International’s global Corruption Perception Index (CPI) for 2012 after it failed to receive required data from one of the three sources used to determine how it fares against other nations in terms of transparency.

The CPI ranks 176 nations in terms of their perceived corruption. States such as Denmark and Singapore rate at the top, while nations such as Zimbabwe and Somalia fall at the bottom of the index.

Last year the Maldives found itself placed 134 on the CPI, a slight improvement on 2010, despite continued fears of a “systemic failure to address corruption” by Transparency Maldives, the NGO’s local affiliate.

Transparency Maldives Project Director Aiman Rasheed told Minivan News that the Maldives’ failure to be included within the 2012 CPI “would raise a few eyebrows” internationally.

However Rasheed said that he did not expect there to be a significant detrimental impact in how the nation was already perceived by financiers, investors and other development groups.

“We have been included [on the CPI] for the last few years in 2011, 2010 and 2009, so I don’t think the ranking for this year will have been a big departure from these,” he said, adding that the challenges facing the country as a result of corruption still existed in 2012.

Rasheed said the CPI was a composite index based on information from a number of sources including the World Bank. He explained that of the three sources on which the Maldives’ CPI position was determined, the Asia Development Bank (ADB) had this year not supplied the required information needed by Transparency Maldives to compile its findings.

“We don’t have any reason for why this has happened and I would not wish to speculate,” he said.

However, a source with knowledge of the matter told Minivan News on condition of anonymity that there could be a number of reasons for the ADB failing to provide information on the Maldives.  These reasons were said to include a possible failure by the government over the last 12 months to provide statistics and figures to the ADB.

The ADB was not responding to calls from Minivan News at time of press.

Questioned as to how the country’s omission from the 2012 index would reflect on Transparency Maldives’ own work, Project Director Rasheed said it would be vital to clearly communicate with international groups the reasons for not being included this year.

“It does present us with some challenges. We have to hope people understand that there was insufficient information received,” he said.

Transparency Maldives last year alleged that the Maldives continued to be rated as having more perceived corruption that many other neighbouring countries, a situation linked to what it claimed was a lack of accountability and transparency across the country’s judiciary, parliament and members of the executive. The NGO maintained that last December that there remained a “systemic failure” within the national mechanisms established to bring accountability to the branches of state.

Just last month, a senior legal official who served under the current and former administrations has claimed the country’s legal system is wide open to corruption by allowing individual judges to schedule court hearings at their whim.

The legal figure, who has been involved in some of the country’s highest profile cases heard in recent years, told Minivan News it was “quite evident” that the lack of a centralised system for scheduling legal hearings was not only resulting in massive inefficiency, but also allowing for corruption within the country’s court system.

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“Maldives can do whatever it wants”: Chief Justice of Singapore

The Supreme Court in Singapore has overturned an injunction blocking the Maldivian government from voiding its concession agreement with GMR and evicting the airport developer by midnight tomorrow.

“The Maldives government has the power to do what it wants, including expropriating the airport,” declared Chief Justice of Singapore, Sundaresh Menon.

The Maldives appealed the stay order which was granted after cabinet on November 27 declared the country’s concession agreement with the developer ‘void ab initio’, or invalid from the outset, and gave the company seven days to hand over the airport to the state-owned Maldives Airports Company Limited (MACL).

The government rejected the injunction, with President Mohamed Waheed’s Special Advisor telling reporters: “I believe that the Singapore court interpreted the law wrong. We cannot wait for a hearing of the appeal. What I am saying is there is no damage to GMR but we face damages by not terminating the agreement.”

GMR dug in its heels, clinging to the injunction, with the backing of the Indian government, which urged the government to take “no arbitrary and coercive measures pending the outcome of the legal process underway.”

CEO of GMR Male International Airport, Andrew Harrison, told Minivan News on Thursday afternoon that it was “too early to say” whether the withdrawal of the injunction meant company was now obliged to hand the airport over to MACL before the deadline on Friday.

“We are waiting to review the full judgement, which is currently being written up. We’ve always been advocates of following the law. We will have a staff briefing tomorrow afternoon,” he said.

MACL meanwhile released two statements claiming that it had met with airlines operating at the airport and advised them that it would be taking over the airport from midnight at December 7. Details of the meeting were not provided.

MACL’s website remains inaccessible a week after it was targeted by Indian hackers, who replaced it with the slogan: “If you don’t know how to secure a website, can you run an Airport securely, MACL?”

GMR held a press briefing for journalists in Delhi yesterday.

Asked about whether GMR had felt the involvement of another country such as China in the development of the Male’ airport, the company’s CFO Sidharth Kapur said “I can’t say that for sure. But, looking at the political situation and political framework in Maldives, I can’t rule out anything.”

GMR had received no response from any attempt to communicate with President Mohamed Waheed, he said.

President’s Office Spokesperson Masood Imad meanwhile told Indian newspaper The Hindu today that after reclaiming the airport, the government would again float a tender for its modernisation “and get more parties in to take the work forward.”

“The tender will be floated by the Maldives government in a transparent manner and after consulting investors. The mistakes made during the float of the tender which has been cancelled will not be repeated,” Imad told the paper.

The Waheed government has previously accused the International Finance Corporation (IFC), a World Bank entity, of being “irresponsible” and “negligent” in advising the former government of President Mohamed Nasheed in the concession of INIA

The IFC has denied the accusations, stating that its advice was geared towards achieving the “objective of upgrading the airport and ensuring compliance with applicable international regulations” and providing the Maldives government “with the maximum possible revenue”.

“A competitive tender was organised with the objective of selecting a world-class, experienced airport operator, who would rehabilitate, develop, operate and maintain the airport,” said an IFC spokesperson, in September.

Environment Minister Dr Mariyam Shakeela has separately appealed to China for financial and technical support, telling journalists from the Chinese government’s authorised web portal China.org.cn that the Maldives “needs funds for infrastructure building.”

“We are obviously in need of funds and technical assistance as we do not have the financial means, the technical know-how or the capacity to address these huge climate change issues,” said Mariyam, in an appeal for assistance with climate adaptation.

Former President Mohamed Nasheed, under whose administration the concession agreement with GMR was signed, called on the government to reconsider its decision to take over the airport and “pull back from the brink and cease its counter-productive behaviour, which is damaging the nation’s economy and bilateral relations.”

Nasheed said the Maldives was “rapidly developing a reputation among foreign investors akin to Zimbabwe, where government might is right and contract law counts for nothing.”

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Maldivian government appeals stay order as GMR eviction deadline nears

The Maldivian government is appealing an injunction granted by the Singapore High Court halting its eviction of Indian infrastructure giant GMR from the Maldives pending the outcome of arbitration proceedings.

Minivan News understands that the hearing began at 10:00am this morning Singapore time, and is expected to take most of the day.

The government at the time denounced the injunction as an imposition on the country’s sovereignty. At a press conference hours after the stay order was granted by the Singapore High Court, Defence and Acting Transport Minister Mohamed Nazim pledged the government would “continue the airport takeover and Insha Allah from next Saturday onwards [the state-owned] Maldives Airports Company Limited (MACL) will be running the airport.”

“The government remains firm and committed towards implementing its decision to terminate the agreement. We will not reconsider it,” he said at the time.

The deadline for the government’s eviction of the Indian airport developer is midnight tomorrow (December 7).

GMR on Tuesday “categorically” refuted claims by the government to international media that it had agreed to vacate Ibrahim Nasir International Airport (INIA), following a meeting between airport CEO Andrew Harrison and Defence and Acting Transport

Harrison told Minivan News that Nazim had said that “no force would be used to take over the airport” and that “media reports that the MNDF would take over the airport are untrue.”

“Our position, which I communicated to them, remains crystal clear,” said Harrison. “The Singapore High Court has issued an injunction which clearly prevents MACL or the Government of Maldives or any of its agents from taking any action that interferes with GMIAL operating the airport.

“The injunction clearly prevents them from taking the action outlined in their notice issued to us stating that the airport would be taken over at the end of the seven day period. We remain resolute in our position and there is no question of an offer being made and certainly no question of any alleged offer being accepted as we will simply not agree to our rights nor the injunction being undermined in any way.”

The Civil Aviation Authority has however informed the developer that its aerodrome certificate will be withdrawn at 23:59 on December 7, without which GMR has acknowledged it cannot operate the airport. The impending stalemate potentially has ramifications for tourism disruption at the start of the peak season.

Meanwhile, Minister of State for Home Affairs Abdullah Mohamed was reported in local media as telling a press conference yesterday that “GMR has the opportunity to seek fair compensation if they are not satisfied with the government’s decision.”

The Indian Ministry of External Affairs has meanwhile issued a statement calling on the Maldivian government to allow the “legal processes involved in the GMR case to take their own course based on the contractual obligations of the parties involved. The Maldivian government should not allow the situation to go out of hand.”

“In this context, it is expected that no arbitrary and coercive measures should be taken pending the outcome of the legal process underway. Resort to any such actions would inevitably have adverse consequences for relations between India and the Maldives,” the MEA Spokesperson said.

“We are concerned over reports from the Maldives about continuing violence and intimidation against elected representatives and expressions of radical sentiments. There is need to ensure that the rule of law is upheld and principles and tenets of democracy are maintained. We will continue to monitor the situation closely.”

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State Environment Minister plays down budget dispute, alleges media “misunderstanding”

State Minister for Environment and Energy Abdul Matheen Mohamed has played down a report that his department yesterday slammed the proposed state budget for neglecting the “fundamental rights” of Maldivians, claiming there had been a “misunderstanding” with local media.

The Sun Online news agency yesterday reported that senior environment ministry officials had raised fears before the Majlis’ National Development Committee that it had been allotted an insufficient budget for proposed water and sewerage projects needed across the country.

Environment Ministry Permanent Secretary Ahmed Saleem was quoted as claiming that some 15 projects proposed by his department had been excluded from the budget is being debated within parliament this week. These projects were said to deal with issues including waste management, as well as supplying water and sewerage systems to more islands around the Maldives.

Saleem was reported as saying that complaints over the matter had also been sent to Finance Minister Abdulla Jihad, who had in turn had responded that any amendments to the budget would have to be made through the Majlis with support of MPs.

Both finance chief  Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at the time of press.

Speaking following yesterday’s meeting with the National Development Committee, Permanent Secretary Matheen claimed that Saleem’s reported comments had been the result of a “misunderstanding” by its author.  He alleged that the journalist had focused on a few points of a long meeting with the committee.

While Matheen said that there were some “concerns” about the present status of the budget allocated to the Environment Ministry, he that alleged the article’s conclusions were “very misleading”.

“The budget issue is very sensitive right now, so i’m afraid I cannot make any comments about the matter at present,” he said. “The islands are all asking what they will have from the ministry.”

Matheen added that he was presently unable to comment on the exact nature of the “misunderstanding” contained within the Sun Online report due to the fact discussions on finalising the state budget were ongoing.

Jumhoree Party (JP) MP Hassan Adil, a member of the National Development Committee, was unavailable for comment when contacted on the challenges in trying to balance ministry expenditure in the current economic climate, asking Minivan News to call this evening. However, Adil was not answering calls at the time of press.

Budget discussion

Presenting the budget to parliament last week, Finance Minister Jihad explained that next year’s budget deficit was to be financed with MVR 971 million (US$62 million) as budget support and MVR 1.3 billion (US$84 million) from Treasury bill (T-bill) sales.

However, as debate on the budget commenced yesterday amidst, regularly coming to a halt due to frequent loss of quorum – most MPs complained of the lack of funds allocated for development projects in their constituencies.  these projects included developments such as harbours, water and sanitation systems, additional classrooms and upgrades to health centres.

Meanwhile,  it was revealed last week that the proposed budget for defence expenditure for 2013 was found to be 14 percent higher than the funds allocated during 2012.

A total of MVR 930.9 million (US$60.3 million) was proposed for defence expenditure, which amounts to 5.5 percent of the total budget.

Balance of payments

With the Majlis currently contemplating the 2013 budget, an International Monetary Fund (IMF) mission to the Maldives last month noted that a ballooning fiscal deficit had “implied a rise in the public debt ratio, which now stands at over 80 percent of GDP.

According to the organisation, these developments also helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on MMA (Maldives Monetary Authority) reserves.”

The IMF forecast for the current account deficit was “nearly 30 percent of GDP this year.”

“Gross international reserves at the MMA have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” the IMF mission warned.

The mission recommended formulating “a realistic and prudent budget for 2013″ to rein in the fiscal deficit, suggesting hiking taxes and “selectively” reversing import duty reductions.

According to an overview of the economy presented by the Finance Ministry along with the state budget (Dhivehi) proposed to parliament last week, the current account deficit in 2012 was expected to be 27 percent of GDP.

Water shortages

Following water shortages that authorities said affected over 100 inhabited islands back in May, Addu City Mayor Abdulla Sodig at the time claimed financial support was the key challenge in ensuring sufficient supplies of drinking water to the public, even with the assistance of local resorts and the Maldives National Defence Force (MNDF).

Minivan News reported back in April that in the country’s southerly Addu Atoll, an estimated 90 percent of the local population were reliant on rainfall to bolster their drinking water supplies.

Numerous islands in the atoll are said to experience severe supply issues for drinking water annually as a result.

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