Category: Politics

Domestic Violence Act “incomplete” without Family Protection Authority

Members will be next week appointed to the primary body tasked  with implementing the Domestic Violence (DV) Act, President Mohamed Waheed Hassan Manik said on Wednesday.

According to Dr Waheed names have been nominated by the Gender Ministry to the Family Protection Authority (FPA) board.

“I have been informed that the Gender Ministry has prepared the proposal. So the members will be appointed without further delay,” Waheed said:”Next week”.

Under the landmark piece of legislation passed and ratified last April, a seven member board has to be appointed to the FPA.

The authority is mandated under the law to conduct programs setting out measures for taking all necessary steps to prevent domestic violence including rehabilitating perpetrators of such crimes, arrange flexible reporting mechanisms, facilitate the investigations and provide all necessary support and shelter to victims of abuse.

According to the Gender Advocacy Working Group (GAWG) created by UNFPA Maldives,  a letter was forwarded to the President’s Office with recommended people to be appointed for the FPA board.

“It is important to nominate people who have strong expertise on the issue from different sectors.” Michiyo Yamada, Gender Specialist at UN Women Maldives noted.

“We urge the government to establish the Family Protection Authority as soon as possible, since they are mandated to lead the implementation of the DV Act, such as creating public awareness, providing services to survivors, coordinating the work of relevant institutions including police and health.” she observed.

She also noted that GAWG will support and cooperate with all institutions to implement the legislation. The multi-sectoral group represents interested organisations and individuals, promoting gender equality and non-discrimination.

“Extensive ground work is needed to implement the act by training service providers and setting up the system to prevent and respond to domestic violence across the country,” Michiyo added.

Recommended names were not released by the group as it is being reviewed by the government.

A Gender Ministry official confirmed to Minivan News that GAWG’s nominations were taken under consideration while shortlisting the names for President’s office.

Stakeholder’s concerns

All stakeholders from government, civil society, judiciary and state institutions gathered at the Tuesday’s national consultation workshop on UN Secretary General’s Unite Campaign to end violence against women, and “agreed” on the urgency of forming a central authority to prevent domestic abuse and overcoming the existing challenges in providing protection and justice to those victims.

According to Human Rights Lawyer Mohamed Anil, who participated in the DV Act’s drafting process, the “legislation is incomplete without the authority”.

“It is already created from the date of ratification. On paper it exists now. But without the members authority is nonexistent, ” Anil observed.

He added that the when the legislation fully comes into operation it will bring “significant new changes”, one of which he pointed out is the additional power granted to the security forces to investigate abuse and violence within domestic spheres.

Should the police find reasonable evidence to believe  a person is a victim of domestic abuse, the DV legislation stipulates the police can enter the place of crime without a court order and arrest perpetrators and even request for a protective order on behalf of the victim.

Due to these “extra-powers” Anil said, police are required to compile an internal regulation outlining the guidelines in dealing with domestic abuse cases.

Should the authorities fail to report or address a case of domestic abuse, they can be held accountable under the law.

The law also mandates the police to remove the victim from the abusive environment to a shelter, if necessary on the institution’s own expenses.

In the most recent case of alleged infanticide on Feydhoo island, the council and islanders have been claiming in the local media that the authorities had failed to relocate the 15 year-old mother of the dead baby despite several complaints of sexual abuse within her home.

Stakeholders at the meeting highlighted that the Family and Children Center (FCC) shelters on the islands are under-equipped and too short staffed to accommodate and help victims, while budget constraint are further hampering the process.

“Look at the condition of FCC on islands. We once had to keep a sexually abused girl at the atoll state house because the shelter did not have any facilities and there was no other safe place to keep her,” Shaviyani atoll Council President Moosa Fathy noted at the workshop.

“Everyone talks about these issues on stages. It is merely a political fashion show.” he added, noting that there has been several cases where police and state institutions have denied support to the councils.

Therefore, at the end of the workshop, participants promised to make a coordinated effort to end violence against women and girls and promote gender equality.

“We need more commitment and concrete action.” a participant noted.

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May arrivals drop 1.4 percent on 2011 figures

The Maldives recorded a 1.4 percent drop in arrivals in May, compared to the same period last year.

Overall arrivals for January to May 2012 were up 1.7 percent on the same period last year. However according to figures from the Pacific Asia Travel Association (PATA), while South Asia was the second fastest growing market reporting 14 percent year-on-year growth in March in terms of visitor volume, the Maldives was the only destination to record a decline (five percent).

Figures released by the Maldives Marketing and Public Relations Corporation (MMPRC) for May showed sharp dips across many emerging and traditional markets, including Central and Eastern Europe (-12.7 percent), Northern Europe (-15.8 percent), Southern Europe (-32 percent) and North East Asia (-1.1 percent).

Russia, a key emerging market for the Maldives, showed a decline of 17.4 percent in arrivals for May, while the country’s largest and formerly fastest-growing market, China, recorded an 8.5 percent increase.

Core traditional markets showed double-digit decreases in arrivals for May, particularly Italy (-39.1 percent), the UK (-16.5 percent) and Korea (-42.5 percent).

“Traditionally, tour operators experience a drop in bookings and travel during big soccer events, and with the UK also taking part in Euro 2012, chances are more people might be distracted from thinking about a summer break during this period. Also, the upcoming Olympic Games during July will also impact long haul travel,” the MMPRC stated.

Western Europe meanwhile showed signs of rapid recovery, led by exceptional growth in German arrivals (30.5 percent) to 9736 for the month – comfortably putting it in second place behind China in terms of volume.

In an accompanying statement, the MMPRC speculated that the reasons for the increase in arrivals “are the strong economic conditions in Germany together with the increase in frequency of flights between the two countries.”

The average occupancy rate at the country’s resorts fell from 80.7 to 66.2 percent for May, but this pattern was in line with 2011 as the country’s low season sets in. However, average occupancy rates for resorts in 2012 were down 5-6 percent on 2011 for February to April.

“MMPRC is in line with the set target of attracting 1 million tourists during 2012,” the corporation said. “A strategic digital and social media campaign is in place. Road shows and other strategic marketing activities are being planned for the year ahead. Maldives Marketing & PR Corporation has a policy to carry out joint promotions and marketing campaigns with airlines, tour operators and other stakeholders.”
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Ameen-Aslam report published in English

The Maldivian Democratic Party (MDP) have released an English version of their report detailing the behind-the-scenes actions of the police and security services during the controversial transfer of power of February 7.

The report, produced by former Environment Minister Mohamed Aslam and former National Security Advisor Ameen Faisal, was labelled an “act of terrorism” by the government due to its extensive use of intelligence sources and serving police and MNDF officials.

Chief Superintendent Mohamed Hameed was subsequently arrested, while other police officers who had cooperated with the report were rounded up and detained, and their houses searched.

Police initially denied the allegations of a “witch hunt” and issued a statement accusing the media of “circulating baseless and false reports”. However court warrants for the arrest of Hameed and Staff Sergeant Ahmed Naseer were subsequently leaked.

The report outlines what the MDP government knew of the then-opposition’s plan to topple the government by soliciting “about 500 police officers” to protest in the Republic Square, that led to former President Mohamed Nasheed’s resignation “under duress” on February 7.

The report alleged that in September 2011 council members of former President Maumoon Abdul Gayoom’s Progressive Party of Maldives (PPM) met with a retired Maldives National Defence Force (MNDF) warrant officer (grade one), a retired brigadier general and a retired deputy police commissioner at the apartment of PPM council member Ahmed ‘Mars’ Saleem to discuss ways to topple the government.

At the meeting, the report stated, the retired warrant officer proposed that “the only way to change President Nasheed’s government” was for “about 500 police officers to come out and protest at the Republic Square”.

“During these discussions, when the retired deputy police commissioner gave assurances that it could be done, PPM interim deputy leader Umar Naseer raised doubts [about the possibility],” the report claimed.

However, following extensive discussions, “it was decided that work would begin on creating an atmosphere for [a police-led protest at Republic square].”

The report further claimed that the “December 23 coalition” of eight political parties and affiliated NGOs – which staged a mega-protest to “Defend Islam” from the alleged “securalisation agenda” of President Nasheed – was formed as a result of “a lengthy discussion” at the Adhaalath Party office between a prominent religious scholar and the aforementioned warrant officer.

The ‘mega-protest’ was meanwhile primarily funded by Jumhoree Party (JP) Leader and tycoon MP Gasim Ibrahim, the report claimed.

The party also released an English version of former MDP Chairperson Mariya Ahmed Didi’s list of criminal charges against President Mohamed Waheed.

Download the Ameen-Aslam Report (English)


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Business as usual at Maldives guest-houses after authorities issue “cautionary circular”

The government has insisted city hotels and guest-houses established on the Maldives’ inhabited islands remain open today, after a local media report suggested authorities had revoked the right of local councils to operate tourist properties on their land.

Sun Online reported yesterday that the opposition Maldivian Democratic Party (MDP) had called for an emergency debate in the people’s Majlis against an “order” by the Ministry of Tourism, Arts and Culture to cease the “operation of guest houses and hotels”.

MDP Chairperson and MP Reeko Moosa Manik was reported to have criticised the legality of an order issued on June 17, claiming the motion was a means to protect the interests of certain resort owners at the expense of developing independent travel.  Manik was unable to respond to Minivan News at the time of press.

Responding today to the Sun Online report, tourism authorities said there had appeared to be “confusion” about the content of a circular that as released by the ministry on June 17.

While not having seen the circular, former Tourism Minister Dr Mariyam Zulfa said she did have concerns about the government’s attitude to guest-house development, alleging that authorities sought to reverse previous state commitments to decentralise powers to local councils. She claimed these powers allowed councils – in collaboration with the government – to have more of a say in localised tourist developments.

“Confusion”

Deputy Tourism Minister Mohamed Maleeh Jamal claimed the ministry has issued a circular to make local councils aware that the allocation of public land for tourism development was to be approved by the ministry and not themselves.

“This circular from the ministry never mentioned guest houses or city hotels directly. Some local councils are allocating land for tourism developments like guest-houses,” he said.

According to Maleeh, the circular was devised as a “cautionary” response to ensure local councils only set aside land for hotels and guests-houses under license from the Tourism Ministry.  Maleeh contended this provision would ensure industry planning and safety standards were met.

“There appears to have been some confusion about the motion. Right now, any person can develop guest houses or hotels on private land,” he said. “To do this, they are required to go through the Tourism Ministry and follow regulations regarding safety and the number of rooms they are operating.  This is simply a circular to remind local councils that public land can’t be assigned by them for guest-house development.”

Maleeh claimed that all land being set aside for tourism development was required to go through a bidding process before gaining government approval.

Guest-house challenges

Just last week, Minivan News’ spin-off travel review site, Dhonisaurus, reported on the challenges facing the development of independent travel in the Maldives through industries like guest-houses.

Tourism Minister Ahmed Adheeb said at the time that the government was presently analysing the contribution to the economy of all tourist properties – including resorts, safari boats and guest-houses. Once this analysis was complete, the Tourism Ministry said it would then unveil how each sector will be developed though the country’s fourth tourism master-plan.

Speaking today, Deputy Minister Maleeh stressed that the country’s resort industry presently accounted for about 80 per cents of the total bed capacity available to tourists.

While guest-houses were estimated to account for 2.5 percent of tourism bed capacity, Maleeh claimed that the industry was “slowly picking up” – something that would be considered within the news tourism “master-plan”.

“Properties like guest-houses allow tourists to experience local culture here, there will definitely be a role for them,” he said. “However, the government wants to make sure these are successful ventures, but there may be issues to overcome for such properties. This is why the license to operate them must come from the tourism industry.”

“Running as normal”

One local operator of guest houses, who wished to remain unidentified, said that there has so far been no impacts on their business resulting from the tourism ministry circular.  The operator told Minivan News that an official tourism ministry inspection had been carried out last Wednesday (June 20) on a soon to be opened guest-house property, and there had been no indication of a change to their operations.

“As far as I’m aware, business is running as normal,” the spokesperson said.

Dr Mariyam Zulfa, who served as Tourism Minister under the administration of former President Mohamed Nasheed until February’s controversial transfer of power, has however raised concerns that the circular could place a barrier on future hotel and guest-house developments on inhabited islands.

Zulfa stressed that while she had not seen the circular, from what she could gather, the circular highlighted a government policy now seemingly against granting permission for new guest-house properties.

“I take it to mean that the circular will place a bar on further local tourism development by usurping the power of local councils,” she said.

“During my time, we worked to try and empower local councils through a land use plan to take more responsibility for local tourism development. They still had to come back to the Tourism Ministry and obtain an opening permit for any property, but we wanted to give councils power to decide how to move forward.”

Land use plan

With all land allocation related to tourism development requiring presidential approval, Zulfa said that the previous government held a policy where every island in the country was required to have a land use plan approved by the Housing Ministry.

Zulfa claimed that on islands where land had been earmarked for tourism developments under this land use plan, any person with a business proposal for a guest-house or hotel could then go to their council for approval.

“The idea was that local government would have the authority to negotiate with local developers for the best deal for their communities,” she added. “The ministry would also be able to provide assistance if needed.”

Zulfa added that she found it “strange” that opponents of the former government had alleged the administration had been doing “whatever it pleased” in terms of distributing land.

“If we look as the islands set aside for resort development at the time, there was a US$600,000 charge per square hectare of land – an amount that was very close to previous investment regulations.

Zulfa added that the “significant” sum was devised after a tender process and consultation with the industry to ensure committed investors were being found to help fund developments.

“It seems strange to me that people are making it seem like we were giving away islands, when we had undertaken immense work and spent significant time in outlining these plans,” she added.

Earlier this month, the government refuted claims it had considered halting the lease of 60 islands awarded for resort development by the Nasheed administration.

Critics alleged that the CSR programme was against the law as the islands were awarded in the absence of an open bidding system, and had favoured MDP members.

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“Nasheed’s ouster Maldives’ historical equivalent of Tiananmen Square”: US Professor of Peace and Conflict Studies

One of the world’s leading scholars on non-violent conflict, Dr Mary King, has compared the resignation of former President Mohamed Nasheed with the ruthless crushing of democratic movements in Communist China and Soviet Russia.

“For 300,000 Maldivians, President Nasheed’s ouster was the historical equivalent of Tiananmen Square in 1989 or the Soviet invasion of Czechoslovakia in 1968: the sensation of new freedom one day, its threatened disappearance the next,” said Dr King.

Dr King’s comments were included in a statement from the International Centre on Nonviolent Conflict (ICNC), which will today award Nasheed with the James Lawson Award for Achievement in the Practice of Nonviolent Action. The ceremony will take place at Tufts University in Massachusetts.

The press release stated that the award is in recognition of Nasheed’s “leadership during many years of the nonviolent opposition to dictatorship in his country, his courage in the face of an armed coup earlier this year which forced him from power, and his renewed nonviolent action on behalf of restoring genuine democracy in his country.”

Dr King, a professor of Peace and Conflict studies at the UN-affiliated University for Peace in Costa Rica, is a former recipient of the James Lawson award herself.

The award is to be presented by Dr James Lawson himself, a leading activist in the American civil rights movement who is best known for devising the Nashville lunch-counter sit ins of the 1960s.

President and founder of the ICNC, Jack Du Vall, said that nonviolent action can be the only basis for a ruler’s legitimacy.

“The question for the Maldives is whether it will have a real democracy or not, and whether it will be led by a person who was elected to that office by the people and whose elevation to power was based solely on nonviolent action,” he added.

President’s Office Spokesman Abbas Adil Riza said that he was not aware of the statements, saying that the ICNC was “free to say whatever it wished.”

Asked for a government response to such opinions, Abbas said: “The Maldives is a free society and has a free media. Only the courts will decide if it was a legal change of government.”

The Commission of National Inquiry (CNI) mandated to investigate the circumstances surrounding the February transfer of power was recently reformed in order to enhance its credibility.

The group began its investigations on June 21 and is scheduled to have completed its work by July 31.

The CNI is not a criminal investigation and will hand its findings over to the President, the Attorney General (AG) and the Prosecutor General (PG).

Nasheed’s US visit has included a speech at the United States Institute of Peace (USIP), a briefing given to the Senate Foreign Relations Committee and a follow up meeting with the Subcommittee on the Middle East and South Asia Committee on Foreign Affairs after it had sent a team to the Maldives earlier in the year.

Nasheed is also said to have met with State Department Assistant Secretary Robert Blake as well as having briefed the International Republic Institute on the political situation in the Maldives.

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“Military counter-coup would be silly,” Nasheed tells US Institute of Peace

Former President Mohamed Nasheed yesterday spoke at the United State Institute of Peace (USIP) in Washington DC.

Nasheed spoke on the current political situation in the Maldives as well as the importance of non-violent protest, before taking questions from the audience.

“People loyal to me in the military are talking to me about a counter-coup – I say, ‘Don’t be silly’. We must have early elections soon,” Nasheed said.

When asked about how, if elected, he would avoid problems similar to those that led to his resignation, Nasheed replied: “I will be naive again and will continue to be naive. A purge of police and military may bring some satisfaction but that won’t help us build a better society.”

In an interview given by Nasheed to Time magazine in April, Nasheed explained his commitment to national reconciliation following his 2008 election victory.

“We didn’t want to go on a witch hunt. We didn’t want to purge the military, we didn’t want to purge the police,” he said.

“The lesson is we didn’t deal with Gayoom. That’s the obvious lesson. And my romantic ideas of how to deal with a dictator were wrong. I will agree with that,” he continued, before arguing that the answer was greater international assistance in reforming vital state institutions.

He drew comparisons between former President Gayoom and former Egyptian President Hosni Mubarak, saying that the pair schooled together and shared the same Baathist ideology.

The USIP is an independent conflict management centre created by the US Congress to study non-violent approaches to conflict resolution.

Before his speech, Nasheed was introduced by the USIP President Dr Richard Soloman, former member of the US National Security Council and former Ambassador to the Phillipines.

Dr Soloman revealed that, whilst in the US, Nasheed would be receiving a James Lawson Award for Nonviolent Achievement at the Fletcher Summer Institute for the Advanced Study of Nonviolent Conflict.

The annual event, organised by the International Centre on Nonviolent Conflict (ICNC), will be hosted by Tufts University in Massachusetts.

The James Lawson Award is named after a leading activist in the American civil rights movement who is best known for devising the Nashville lunch-counter sit ins of the 1960s.

The MDP today released further details of Nasheed’s US visit which has included a briefing given to the Senate Foreign Relations Committee and a follow up meeting with the  Subcommittee on the Middle East and South Asia Committee on Foreign Affairs after it sent a team to the Maldives earlier in the year.

Nasheed is also said to have met with State Department Assistant Secretary Robert Blake as well as briefing the International Republic Institute on the political situation in the Maldives.

Nasheed’s speech, given after a short clip of The Island President film was shown, recounted his country’s path to democracy, his torture under the former president, and his efforts to convince Maldivians of the importance of basic freedoms as a way to a better life.

The documentary culminated in Nasheed’s negotiations at the 2009 Copenhagen Climate Summit – negotiations which Nasheed felt were telling in the international community’s response to the new government.

“All those who did not like us in Copenhagen have recognised the regime in Male’. Those who liked us in Copenhagen have not. That’s a fact,” said Nasheed.

The summit resulted in an accord providing $30 billion in short term loans for climate change adaptation, ten percent of which was earmarked for small island and developing nations.

Six countries, Bolivia, Venezuela, Cuba, Nicaragua, Saudi Arabia, Sudan and Tuvalu opposed the accord.

He spoke of early elections, expressing his bewilderment at the suggestions by certain governments that the Maldives is not ready for fresh presidential elections.

“It doesn’t matter who wins. We don’t want to topple a government, we want an election,” said Nasheed.

“Give us an election and let’s see who wins,” he continued.

Nasheed spoke about the danger of religious extremism under restrictive governments.

“When societies are suppressed, underground movements become far more common. Religious extremists are far more effective at organising themselves underground. The Quran is their manifesto so they are much stronger in suppressed societies,” he said.

Nasheed was also asked about the current President Waheed’s announcement that the Maldives was to become the world’s largest marine reserve.

““I was advised that a reserve would not be a good idea. But we don’t fish for sharks, we don’t purse seine – Maldives is a marine reserve anyway,” he replied.

Nasheed finished his speech with a resolute tone.

“We will give a good fight and hopefully we will win it again. The story is not over. This is a process and it will never end.”

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Pro-government parties exclude DRP from new joint-parliamentary group

Dhivehi Rayithuge Party (DRP) Spokesman Ibrahim Shareef has emphasised that his party had never signed up to any official coalition agreement, after local media reported the formation of a pro-government Joint Parliamentary Group (JPG) excluding his party.

“There has been a slight confusion. No coalition agreement was signed – we are part of a national unity government after having accepted an invitation from President Mohamed Waheed Hassan,” explained Shareef.

“We will support the government in matters that are in the best interest of the nation, rather than of other parties,” he added.

The JPG has been reported as including members of all pro-government parties, with the more prominent positions going to members of the Progressive Party of Maldives (PPM) and the Dhivehi Qaumee Party (DQP).

DQP MP Riyaz Rasheed told local newspaper Haveeru that the PPM, the Majlis’s minority leader, will now hold its parliamentary group meetings in conjunction with these other members.

Minivan News was unable to find a PPM member available for comment at the time of press.

Haveeru reported that, when asked why the DRP had not been invited to join the group, Rasheed answered that it was because they had joined the Maldivian Democratic Party (MDP).

“Why invite them to join us. They vote against the government on matters submitted to the parliament against the government. They had and still are conspiring with MDP,” Haveeru quoted Rasheed.

The MDP, the former ruling party, still holds 31 of 77 seats in the Majlis, although it has suffered from a number of defections in recent months. The DRP currently holds 15 seats, while the PPM has 18.

Last weekend, it was reported that MDP MP for Maradhoo constituency, Hassan Adil, was also reconsidering his membership.

The remainder of the seats in the Majlis belong to members of Waheed’s unity government.

Shareef told Minivan News that the JPG was nothing new and had existed prior to the formation of the unity government, stating that the parties concerned were just “twisting” old things to court controversy.

“Riyaz is there to take advantage of being the only DQP member in the parliament, although he acts more like a PPM member. He is a man on his own and we are not worried about his antics,” said Shareef.

Riyaz, whom Shareef described as a “cartoon character”, last week declared his party’s coalition with the DRP to be over, baulking at what he felt was DRP support for a controversial MDP motion in the house.

The motion in question – a debate on police brutality – brought such strong protests in the chamber that the session was prematurely ended.

A DQP statement the next day called on all parties to refrain from actions which might “encourage the efforts of former President Mohamed Nasheed… to bring the two oldest institutions of the country into disrepute and cause loss of public confidence [in the police and military].”

The number of parties in the Majlis may be set to expand after former DRP deputy leader and MP for Meedhoo constituency Ahmed ‘Sun Travel’ Shiyam officially registered his intention to form his own party with the Elections Commission (EC).

The party, to be called the Maldivian Development Alliance (MDA), obtained the signatures of 50 people in support of the party and will be given nine months to gain 3000 members.

Vice President of the EC Ahmed Fayaz confirmed that the new party had received a permit, stating that Shiyam’s signature on the list was accompanied by fellow independent MP Ahmed Amir.

Shiyam was not responding to calls at the time of press.

Shareef admitted that Shiyam’s party would inevitably draw DRP members from his constituency.

“There is no doubt we will lose some members,” he said.

“But we have the wherewithal to withstand all these challenges. Once we are established and have earned peoples trust we will overcome these differences,” he added.

Referring to the DRP’s 2011 split with the PPM, led by former President Maumoon Abdul Gayoom, Shareef concluded: “We survived Gayoom and Shiyam is no bigger a threat.”

Regardless of this new competition, the DRPs parliamentary numbers are set to be reduced after Maafannu-West MP Abdulla Abdul Raheem announced his intention to leave the party, for the second time, earlier this month.

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Tourism Ministry lauds global PR efforts as opposition proposes promo spending cuts

Deputy Tourism Minister Mohamed Maleeh Jamal has claimed marketing plans designed to boost consumer confidence in the Maldives have had a positive impact over the last three months, as parliament prepares to debate a proposal on cutting state promotional spending.

Maleeh said that the nature of global media coverage about the Maldives had been “much better” over the last three months, following a decision to hire several marketing firms to promote the country following February’s controversial  transfer of power.

Among these firms is the high-profile multinational PR group Ruder Finn, which has been employed to “instil confidence in the tourism industry of the Maldives [and] gain understanding and public acknowledgement of the Maldives in the international community”.

Ruder Finn, which was appointed back in April under a three month contract reported in some media to amount to US$150,000 a month, has come under some criticism from at least one opposition MP, who has forwarded a proposal to parliament on rejecting further state spending on the contract.

MP Ibrahim Rasheed hit out at the cost of the Ruder Finn contract as being unsustainable considering the current economic situation in the Maldives.

Speaking to Minivan News today, Deputy Tourism Minister Maleeh said he was aware of the parliamentary resolution forwarded by the MDP MP for Maafannu-South, stressing concern at the potential impact it could have on the national economy.

“I’ve heard of the motion. Certainly from time to time MPs in the People’s Majlis will submit not-so-important motions,” he said.

The country has experienced ongoing political tensions amidst allegations by the Maldivian Democratic Party (MDP) that the elected government of former President Mohamed Nasheed was ousted back in February under a “coup d’etat” supported by opposition politicians, mutinous sections of the police and military and certain business leaders.

Within the current partisan atmosphere, Maleeh called on politicians, regardless of their politics, to avoid actions that would sabotage the tourism industry and the wider national economy.

“I am concerned that a major source of revenue such as tourism is being put at risk. I condemn such acts,” he said, referring to MP Rasheed’s motion to cancel state funding to hire Ruder Finn. “Without tourism the economy would be in a grave state. It is the biggest contributor to our national economy for the last 40 years. Politicians should leave the economy aside.”

According to Maleeh, during the last three years, the former government “slashed” the budget set aside for the promotion of tourism.

He added, that with President Dr Mohamed Waheed Hassan now in office, the new government was doing “all it could”, along with working in collaboration with the private sector, to boost promotional efforts and undo the impacts of international headlines concerning February’s transfer of power.

However, Maleeh stressed that Ruder Finn was just one of a number of promotional contracts that had been signed by the government to try and improve damage to consumer confidence in the country’s tourism industry.

“We have several international contracts with agencies that are carrying out specific focuses for us,” he said.

Earlier this month, the tourism industry announced it had signed a contract to advertise the Maldives under its recently reinstated “Sunny Side of Life” branding on the BBC weather service both through its online and World Service.

When contacted by Minivan News today about the present nature of its contract with the Maldives government, as well as the company’s aims for its work in the country, Ruder Finn’s Ethics Officer Emmanuel Tchividjian said he had “no comment”.

The contract, said to cost US$150,000 a month for the three month-long campaign, was the result of a collaboration with the private sector that tourism authorities have said they hope to continue over the next few months as they secure more funding.

In addressing the impact of the industry’s recent promotional spending Maleeh added that the “results were hard to measure”, but added that there had been a positive impact during the last financial quarter on media coverage of the country.

“Marketing is a long-term strategy. It therefore can take time to get clear results,” he said. “However, with marketing contracts such as these, the main agenda is to protect tourism.”

Amidst “quite aggressive” marketing strategies being employed by neighbouring destinations such as Sri Lanka, Maleeh stressed that improved budgets would allow the country to compete more evenly. To this end, he expressed commitment to secure further private sector support such as the country’s resort industry to aid future marketing efforts.

With the Ruder Finn contract expected to expire next month, Maleeh stressed that no decision had yet been taken on whether to continue using the group in the future.

“That decision would depend of a review of the agreement when the contract was over,” he said, stressing that any decision would be based on the perceived impacts of its current work on the global perceptions of the Maldives.

MP Rasheed today told Minivan News that he had sought to forward a proposal to parliament that calls for a cessation of state funds to be spent on the Ruder Finn contract over concerns that money was being diverted from other areas such as public health.

With a hearing now scheduled for next Monday (July 2), Ibrahim Rasheed said he was confident that the proposal would be able to garner sufficient support in the Majlis chamber.

“We don’t have a budget for sewerage programmes or to fund healthcare,” he said. It is the government who are telling us the don’t have the money for these things.

When questioned by Minivan News as to whether the potential economic benefits of PR efforts from a group like Ruder Finn would not provide a greater economic boost than the amount being paid, Rasheed remained sceptical.

“My argument remains that there are not enough funds for this. [The government] should not be spending that amount on their image,” he argued.

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Government asks Majlis to approve Rf300 million budget support loan

The government has asked the People’s Majlis to approve a budget support loan of Rf300million in place of an existing $65million (Rf1billion) loan which had been approved for the 2012 budget.

The Parliamentary Finance Committee today discussed whether the loan proposal needed to be approved by the full floor of the Majlis. The committee agreed that the matter ought to be passed on to the Counsel General.

“We cannot grant it as it was not in the state budget,” said Finance Committee member Abdul Ghafoor Moosa, who argued that the new loan would cost the government more money.

He explained that the new rufiyaa denominated loan would be obtained from the Bank of Maldives (BML), whereas the US dollar loan would have come from foreign banks.

Moosa claimed that the Rf300 million loan would be taken on a commercial basis, with high interest rates that would require the government to pay back Rf384million.

He said that the $65million loan, delayed due to incorrect paperwork, would have only been taxed at rates of around 2 percent.

Using these figures, the interest paid on the original loan would be Rf20million (US$1.3 million), whilst the interest on the new loan would be Rf84million (US$5.4million).

“Mop up” operation

President’s Office Spokesperson Abbas Adil Riza said that the figure given by Moosa was incorrect, adding that the government was “not going to lose money on the deal”.

Abbas explained that Abdullah Jihad and other members of the current Finance Ministry had advised the government to take out the new loan as part of a “mop up” operation.

“This will reduce the circular flow of rufiyaa in the economy,”  said Abbas.

He explained that new Rufiyaa denominated loan would help to ease inflation, which government figures show had risen to an annual rate of 16.53 percent in April.

Jihad was not responding to calls at the time of press.

Former Finance Minister Ahmed Inaz said that it was the central bank’s job to conduct open market operations – the buying and selling of government debt – as part of its monetary policy.  He contended that it made little sense for the government to become involved with this kind of policy.

Inaz argued that this operation would not help in mopping up liquidity – unless the government intended to do nothing with the borrowed money.

He argued that the money would be better used in the private sector, stating that the job of the government was to facilitate the running of the economy.

“If you take the fuel out of the engine, the engine will stop running,” said Inaz.

Earlier in the year, the Finance Committee estimated that the current budget deficit would reach 27 percent of GDP, or  Rf9.1 billion (US$590 million).

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