Tag: 2014

Maldivian economy grew by 8.5 percent in 2014, says MMA

The Maldivian economy grew at 8.5 percent in 2014, the central bank has said. Growth was driven by a solid increase in tourist arrivals and the strong recovery of the construction sector.

The government’s fiscal performance in 2014, however, was weaker than anticipated due to shortfalls in revenue and overspending on recurrent expenses, the Maldives Monetary Authority said in its Annual Economic Review.

The International Monetary Fund (IMF) in March provided a much lower figure of five percent for economic growth, and highlighted the need for improved data collection on macroeconomic statistics.

According to the MMA, the government’s total debt reached 65 percent of GDP in 2014, while the fiscal deficit stood at MVR1.6billion or 3.4 percent of GDP, higher than the estimated MVR1.3billion or 2.8 percent.

The tax authority has meanwhile collected MVR951.3million (US$61.9million) in tax revenue in March. The figure is 2.7 percent higher than forecasted as several tourism companies had paid late land rents and fines after the Maldives Inland Revenue Authority (MIRA) froze the accounts of some 20 businesses in April.

MIRA has received MVR 5.61 billion (US$ 360 million) in revenue this year, an increase of 27.3 percent compared to 2014. The tax authority, however, did not state if revenue collection meets targets.

Robust growth

Some 1.2million tourists brought in an estimated US$2.6 billion to the Maldives in 2014. Arrivals grew by 7 percent and was largely driven by arrivals from China. European arrivals recorded a marginal growth due to a decline in Russian tourists.

The growth in bed nights stood at 4 percent – slight lower in magnitude than the growth in arrivals – reflecting the decline in average stay from 6.3 days in 2013 to 6.1 days in 2014. The downward trend in average stay, which has become more marked since 2009, is due to a shift in the composition of inbound tourist markets towards countries such as China, the MMA said

Meanwhile, total tourist revenue remained buoyant and grew by 13% (20% growth in 2013) to reach an estimated US$2.6 billion during 2014. The significant difference between the growth in revenue and bednights may reflect the increase in tourist expenditure on high-end services in the industry, the MMA said.

Airline movements by international carriers, such as Mega Maldives, Cathay Pacific and budget airlines such as Tiger Airways, also increased during the year, and facilitated the growth in tourist arrivals.

Three new resorts were opened, increasing total registered number of resorts in the Maldives to 112. Registered guesthouses reached a total of 216. Some 80 new guesthouses were registered at tourism ministry, but only a total of 95 in operation.

The construction sector bounced back from two consecutive years of negative growth. The revival was mainly due to the ease in obtaining construction materials after India waived restrictions on the export of stone aggregate to in March 2014. This allowed the resumption of large-scale public sector infrastructure projects and major housing projects, the MMA said.

The fisheries sector declined by 6 percent,  following a strong growth of 8 percent in 2013, due to a decline in fish catch, and also because of the significant dip in international tuna prices.

The fishing industry in the Maldives represents about one percent of GDP in 2014. It accounted for 10% of total employment in 2010. Export revenue from fish and fish products accounts for 47 percent of merchandise exports.

Poor fiscal performance 

The government collected some MVR14.5billion in revenue in 2014. But total revenue fell short of the target as some of the new revenue measures planned in the budget did not materialize.

The implementation of of a T-GST hike – from 8 percent to 12 percent – was delayed from July 2014 to November 2014; tourism tax, initially anticipated to be collected throughout the year was only collected from February to November.

There was a “considerable shortfall” from the lease period extension fee collected during the year. The lump-sum resort acquisition fee from the 12 new islands planned to be leased out for resort development did not materialize either.

As a result, total revenue was MVR351.0 million less than budgeted and amounted.

The total expenditure of MVR16.5 billion was slightly lower than budgeted, but only because the government stopped spending on development projects and redirected funds to financing recurrent expenditure.

In the banking sector, the main area of concern continued to be credit risk, as indicated by the high level of poor-quality loans. Non-performing loans “remain a concern with a ratio of 16 percent,” the MMA said.

Gross international reserves increased to US$614.7 million at the end of the year. Out of this, usable reserves accounted for US$143.9 million. The “marked expansion” owed to the improvement in foreign currency receipts of the government, the MMA said.

 

 

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Maldives “not prepared” for repercussions of collapsing Antarctic glacier

The Maldives “is not prepared at all” for the projected acceleration of sea level rise caused by the collapse of a glacier system in Western Antarctica, local environmental groups have said.

Two separate studies, by Nasa and the University of Washington, reported on Monday that unstable glaciers in the Amundsen Sea contain enough water to raise global sea levels by at least four feet, or 1.2 meters, in the coming centuries.

The melting of the Thwaites glacier – caused by warmer global temperatures – has begun and cannot be stopped even with drastic action to cut greenhouse emissions, scientists have warned.

The Maldives archipelago is one of the most vulnerable countries in the world to climate change, with 80 percent of its 1,200 islands lying no more than a meter above sea level.

The collapse of the glacier has prompted international concern for the future of the archipelago, with financial news organization Bloomberg advising readers to “take that Maldives vacation you’ve been promising yourself — before it’s too late.”

“The issue is very big, it cannot be ignored like this. The government is not doing very much,” Ecocare member Maeed Zahir said.

The unexpected acceleration of the rise in sea level puts both the land mass and the people of Maldives at risk, he said.

“Its not only about submersion, it is also about the livelihood of the people. There will be an alarming impact on fisheries,” he noted. “Health issues will also come under impact. When the tides and water flood the island there will be water borne disease.”

Contingency Plans

Meanwhile, environmental advocacy group Bluepeace has called on the government to make contingency plans immediately.

Bluepeace founder Ali Rilwan argued “elevated adapted islands” where islands are raised by three meters through reclamation or buildings are raised on three-meter high stilts are the only solution for the Maldives.

“We cannot depend on the outcome of the international negotiations,” he said. “We have to find our own survival.”

Other measures include creating water villages, he added.

The organisation has recently also called for better conservation and management of reefs, wetlands, sea grass beds, and coastal vegetation as global warming pushes the Maldives into “uncharted waters.”

Former President Mohamed Nasheed had previously suggested relocating the Maldivian population to higher ground.

He told the Guardian in 2008 “We can do nothing to stop climate change on our own and so we have to buy land elsewhere,” naming Sri Lanka, India and Australia, as possible spots for a refuge. “It’s an insurance policy for the worst possible outcome,” he added.

The Minister of Environment and Energy Thoriq Ibrahim was not responding to calls at the time of press.

Climate Change policy

The current administration’s policies on climate change have been hard to define.

The Environment Ministry has announced a number of initiatives to minimize the country’s dependence on fossil fuels, including a pledge to convert 30 percent of all electrical use to renewable energy, and the Scaling-Up Renewable Energy Programme (SREP) set to “transform the Maldives energy sector.”

However, President Abdulla Yameen has also pledged to explore for crude oil in the Maldives as an alternative means of diversifying the economy and supplementing fuel supply.

Criticising Yameen’s policies, Rilwan said: “Politicans are always likely to focus on economic development. They are totally aware [of climate change] but because of short term political gain, they do not think of long term survival.”

The Thwaites Glacier

Researchers said that although sea level rise could not be stopped, it is still several centuries off, and potentially up to 1,000 years away.

Speaking to the Guardian, The University of Washington researchers stated that the Thwaites glacier acts as a dam that holds back the rest of the ice sheet. Once Thwaites goes, researchers said, the remaining ice in the sheet could cause another 10 to 13ft (3 – 4 meters) of global sea-level rise.

The latest report from the UN Intergovernmental Panel on Climate Change (IPCC) stated that the effects of global warming are “Risk of death, injury, and disrupted livelihoods in low-lying coastal zones and small island developing states, due to sea-level rise, coastal flooding, and storm surges.”

The report projected sea level to rise between 0.22 and 0.44 meters by the mid 2090s based on projections of thermal expansion and melting of alpine glaciers.

In light of the Thwaites discovery, the rate of sea levels will double compared to the original IPCC predictions, glaciologist for the British Antarctic Survey Hamish Pritchard predicted.

Photo by Jim Yungel/NASA Photograph

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Parliament passes sexual harassment and sexual offences bills

Parliament passed the sexual harassment bill and sexual offences bill yesterday (April 27).

Opposition Maldivian Democratic Party (MDP) MP Rozaina Adam – chair of the committee that evaluated the sexual harassment bill – told Minivan News that while the passage of the legislation was a positive step, there was still a lot of work to be done on combating the internalised effects of sexual harassment.

The sexual harassment bill was submitted in January 2013 by Rozaina, and aims to ensure gender discrimination is made illegal at workplaces, educational institutes, and other service providers such as hospitals.

“Previously there was no law or any regulation from which they could seek help. I think now the women have a place to go,” she explained.

If ratified by the president, the new law would mandate the creation of a committee to investigate sexual harassment complaints at all workplaces with more than 30 employees.

The committees shall be chaired the by the head of the respective offices and must include at least one female members.

If the committee finds an employee guilty of sexual harassment at the workplace following an inquiry, it will be empowered to advise the offender verbally or in writing, suspend him, demote him, or dismiss him based on the severity of the offence.

Rozaina however suggested that women would “still not be complaining” despite the introduction of an internal mechanism to address complaints.

“People have come to accept that this is just something that just happens,” she said.

She however said that the legislation would “create awareness,” contending that not enough was done in implementation of similar laws such as the anti-domestic violence law.

“Police are not taking domestic violence seriously enough,” she argued.

Rozaina recalled the story of one woman – whose experiences reflect the reality for many – as she attempted speak out about the sexual abuses inflicted against her.

“She was waiting outside for me,” recounted Rozaina, “she told me she complained to police about ex-husband beating her, and raping her. When I went to case, they hadn’t even done anything about it.”

“They are not giving enough importance to these cases, we need to create more awareness.”

Cooperation from police seems to be “declining”, she added, “they don’t feel it’s an important issue.”

“I just hope that everyone cooperates and more women report these cases in domestic violence. The main issue is talking and reporting, so very few people report.”

Sexual offences

The two bills – which support both men and women who are victims of sexual abuse – were submitted independently of each other.

The sexual offences bill – which called for recognition of marital rape as a crime – was first submitted in October 2012 and was vetoed by President Abdulla Yameen in January 2014.

“The bill contained some provisions that are contrary to Islamic Shariah and Islamic principles was among the reasons considered for returning the bill,” the President’s Office stated at the time.

The contentious bill was drafted and submitted in October 2012 by now-Progressive Party of Maldives MP for Kulhudhufushi South, Mohamed Nasheed.

Nasheed wrote in the draft legislation that it was not intended to replace Shariah, explaining that it did not preclude application of a Shariah penalty for an offence specified in the bill.

Previous reports of police apathy

Minivan News has previously spoken with foreign women from diverse nationalities working in Maldives who came forward and reported various attacks, ranging from verbal abuse to physical and sometimes sexual assaults.

Katie*, a 34-year-old American who has worked in Male’ for almost a year, was subject to a horrific incident last month when a local man sexually assaulted her while she was unlocking the door of her apartment.

Neighbours who heard her screams called the police, and around five to six officers arrived on the scene with a forensic team.

However, according to Katie, the police did not take her statement until three weeks later and then got the details of the attack completely wrong.

“The police had stated my necklace was stolen. It broke off during the attack, I still have it. The attacker must have known the necklace I was wearing was not gold because it was made of multi-colored beads,” Katie pointed out.

She added that she had later found out from CCTV camera owners nearby her house that the police had not requested the footage or interviewed neighbours for clues. Frustrated over the lack of police assistance, she called the US embassy.

“I don’t think they would have even taken the statement if the American Embassy had not called them,” Katie claimed.

The Police department was not issuing statements to Minivan News at the time of publishing.

*Names have been changed to protect identities.

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Candidates for Villingili and Mahibadhoo constituency seek to invalidate elections

Candidates who unsuccessfully contested for Majlis seats in Gaafu Alifu and Alifu Dhaalu atolls have filed cases at the High Court to invalidate the election results of those constituencies.

According to local media, Maldivian Democratic Party (MDP) candidate for Gaafu Alifu Villingili constituency Haroon Rasheed and Jumhooree Party (JP) candidate for Mahibadhoo constituency Ahmed Sunil filed the cases today.

Mahibadhoo constituency was won by independent candidate Ahmed Thariq ‘Tom’ – who has since joined Progressive Party of Maldives (PPM) – while the Villingili constituency was won by PPM candidate Mohamed Saud.

The High Court has accepted cases concerning electoral issues for eight constituencies so far.

Candidates who contested for Mid-Hithadhoo, Naifaru, Shaviyani Funadhoo, Thimarafushi, Kurendhoo, and Nolhivaram have also filed cases with the High Court.

These initial results in these constituencies returned two progressive coalition MPs-elect – one JP and one PPM, one independent candidate, and three MDP representatives, although this includes Thimarafushi’s Mohamed Musthafa who defected to the PPM within 10 days of the poll.

The court has started the hearings concerning the Funadhoo, Hithadhoo-Mid, and Kurendhoo constituencies.

The High Court has today concluded hearings into the Mid-Hithadhoo case, saying that if the court does not need to further study the case or question witnesses during the next hearing it will deliver a verdict.

PPM candidate in Mid-Hithadhoo Ibrahim ‘Hiyaaly’ Rasheed, who filed the case, has asked the High Court for police intelligence regarding the bribery allegations he has made.

Rasheed’s lawyer has submitted the names of 10 witnesses to prove his client’s allegations that there was bribery involved in the parliamentary elections.

MDP candidate for Shaviyani Funadhoo constituency Abbas Mohamed, who lost the seat to PPM candidate Ali Saleem, has alleged that the ballot box kept in Shaviyani atoll Magoodhoo was closed after the time specified by the Elections Commission (EC).

He alleged that election officials started counting the Magoodhoo ballot box after the EC had announced the preliminary results, questioning the validity of the poll.

Abbas also said that PPM candidate Saleem had campaigned after the campaigning time was up by throwing flyers and posters around the islands.

He alleged that Saleem had bribed people in the day of election and that his complaints – filed with the EC complaints bureau – were not considered.

Saleem won the seat by 930 votes while MDP candidate got 855 votes.

Following the election, the EC revealed that a total of 115 complaints were submitted in writing to the national complaints bureau, including 18 concerning the voter registry and 33 complaints regarding negative campaigning, the behaviour of election officials, and campaigning during polling hours.

In its preliminary statement on the parliament elections, local NGO ransparency Maldives (TM) said elections were well-administered and transparent “but wider issues of money politics threatens to hijack [the] democratic process”.

TM revealed that a survey conducted prior to last year’s presidential election showed that 15 percent of respondents had been offered “money or other incentives” in exchange for their vote.

“Admissions about illegal activities such as this are usually underreported in surveys. TM’s long-term observation indicates that vote buying may be even more widespread in the parliamentary elections than other elections,” the statement read.

“Inability of state institutions to prosecute vote buying due to gaps in the electoral legal framework, lack of coordination, and buck-passing between the relevant institutions have allowed rampant vote buying to go unchecked.”

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Majlis elections: Supreme Court’s actions overshadowed polls, say international observers

The European Union has noted a “violation of rules” by the Supreme Court, as well as warning that the right to a free vote had been “undermined” by reported vote buying in their observations of the parliamentary elections.

The European Union Election Observation Mission (EU EOM) and the Commonwealth Observer Group both presented their interim reports at press conferences held today (March 24) in Malé.

Presenting the EU’s statement, Chief Observer Eduard Kukan said that although the voting was “calm and orderly,” with the process conducted in a “professional, impartial and transparent manner,” the Supreme Court’s removal of two members of the Elections Commission less than two weeks before the poll “raised serious concerns” and “overshadowed the electoral period”.

“The [Supreme Court’s] consequent removal of the chairperson and his deputy represented an assertion of power reserved to the People’s Majlis. It was a violation of the rules in both the constitution and the Elections Commission Act,” the EU EOM statement noted.

Similarly, the Commonwealth group’s interim statement – presented by the Chair Bruce Golding – congratulated the Maldives on holding a “peaceful and conclusive election,” but was “deeply concerned” by the Supreme Court’s actions which “inevitably had a negative effect on the overall electoral environment”.

As a result of this, the COG noted it was “disappointed that there was still a lack of clarity regarding inconsistencies between the Maldivian Electoral legislative framework and the guidelines issued by the Supreme Court last year.”

When reporters asked Mr Kukan if the Supreme Court influenced the results of the elections, he noted that it made a “difficult electoral environment,” but added that their sole mission was to observe the election process.

“It’s up to the people who they vote for,” he added.

Vote buying, media plurality, and female candidates

Another key finding in both statements was reported vote-buying and excessive campaign expenditure.

The EU EOM highlighted the tradition of high spending during elections, with candidates legally spending up to 1,500 MVR or some €70 per voter in a constituency.

According to the report, this spending is “insufficiently regulated,” and concluded that the lack of cap on spending “undermines” the right to a free vote from compulsion or inducement.

The Commonwealth mission made the recommendation that “concerted and systematic efforts need to be made to address this issue”.

Allegations of vote buying were highlighted in a previous statement by NGO Transparency Maldives (TM), who stated that “wider issues of money politics threatens to hijack [the] democratic process.”

Furthermore, TM revealed that a survey conducted prior to last year’s presidential election showed that 15 percent of respondents had been offered “money or other incentives” in exchange for their vote.

In addition to vote buying, both the EU EOM and the COG expressed concern over the media and freedom of expression during the elections. According to the Commonwealth, local stakeholders expressed concern that coverage by private media outlets were influenced by political affiliations.

“The liberalisation of the media sector in 2008 has so far not led to media pluralism,” stated Kukan. “Ownership of the main private TV and radio stations is concentrated in the hands of a small number of businessmen and politicians whose ideology is reflected in the editorial decisions.”

Kukan added that the “significantly partisan editorial content” hinders the “diversity and impartiality” in the election coverage. Kukan named broadcasters such as Raajje TV and VTV who he accused of “overly promoting their chosen party and candidates.”

The EU EOM also noted deficiencies in the legal framework’s adequacy to support the elections according to the international standards to which the Maldives has subscribed.

“Contary to the ICCPR [International Covenant on Civil and Political Rights], the rights to vote and to stand to election are limited on the grounds of religion, as citizenship is limited to Maldivians of Muslim faith, and candidates must be Sunni Muslim.”

The EU report added, “the Maldives has entered a reservation to article 18 of the ICCPR, thus restricting freedom of religion, and a reservation to article 16 of  The Convention on the Elemination of All Forms of Discrimination against Women (CEDAW) restricting gender equality in family matters, thereby protecting inheritance laws which discriminate against women.”

The report noted an “extremely low numbers of female candidates,” with a total of 23 female candidates – just 5 of whom were elected. This indicates a decrease from 6.4 to 5.8 per cent female members of parliament.

The report noted that this, along with the low voter turn out for women was in part down to “prevailing and increasing social and cultural norms which disempower women, confining them to the domestic sphere.”

After continuing to observe the post-electoral period, the EU EOM will produce a detailed final report including recommendations for future elections.

The Commonwealth’s official report will be published following the group’s departure on March 28.

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Majlis passes record MVR 17.95 billion budget

The People’s Majlis has passed a record MVR 17.95 billion (US$ 1.16 billion) budget today.

Out of the 72 MPs present, 55 voted for the budget, two voted against and 11 abstained.

The budget deficit now stands at MVR1.3 billion (US$84.3 million). Recurrent expenditure accounts for over 70 percent of the budget.

President Abdulla Yameen Abdul Gayoom had initially proposed a MVR 17.5 billion (US$ 1.1 billion), but the People’s Majlis Budget Committee brought a number of amendments, first increasing the budget to MVR 18.3 billion (US$ 1.19 billion) and later reducing it to MVR 17.8 billion.

However, during Wednesday’s budget debate, opposition Maldivian Democratic Party (MDP) MPs complained about lack of development funds for their constituencies. The committee met that night and increased the Public Sector Investment Program’s budget to MVR 260.5 million (US$ 16.9 million).

The Budget Committee had also added MVR 171.1 million (US$ 11 million) to the budget of the state’s independent institutions.

At today’s sitting, 27 budget recommendations were passed. These include a proposal by Jumhooree Party (JP) leader Gasim Ibrahim to reallocate MVR 122.5 million (US$ 7.9 million) from the Finance Ministry’s contingency budget to the independent state institutions.

MDP MP Ahmed Sameer’s proposal to reallocate MVR 7.1 million (US$ 460,440) from the Finance Ministry’s contingency budget to the health sector also passed.

According to the budget report, 44 percent is allocated for social development, 21 percent for public services, 15 percent for loan repayments and 9 percent for economic development.

The central bank Maldives Monetary Authority (MMA) and opposition MPs have expressed concern over tenuous revenue raising measures in the budget.

These include hiking Tourism GST from 8 percent to 12 percent, revising import duties, continuing tourism bed tax for one more year, raising airport departure charge for foreign passengers from US$ 18 to US$25, leasing 12 islands for resort development, introducing GST for telecommunication services and obtaining resort lease payments as a lump sum.

Several of these proposals require revising existing legislation.

Meanwhile, the World Bank has warned the Maldives’ economy is at risk due to excessive state expenditure and methods used to finance the deficit.

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National census scheduled to commence in September 2014

The Department of National Planning (DNP) has announced it is to carry out a national census in September next year, local media has reported.

Speaking to local media on Thursday (March 21), DNP Assistant Director Fathimath Riyaza stated that the census will take place from September 20 to September 27, and will be advertised under the slogan of “count me in”.

“We will visit the houses this time too, and gather information of the number of people in each household, along with other information regarding the people in the household,” Riyaza was quoted as saying in local media.

A total of 3327 enumerators are to be employed to collect the information next year, and that upcoming census will include information on foreigners living in the country.

Local media reported that Maldives conducted its first census in 1911 and has held a census every five years since 1985.

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Pakistan sunk 3-0 in final Maldives clash

The Maldives National Football Team on Thursday (February 14) won the second of two friendly matches held against Pakistan in Male’ this week – bouncing back after conceding a last minute equaliser in their opening fixture played two days earlier.

The Maldives were convincing winners during Thursday’s game, which ended 3-0, despite some near misses from the visitors early on during the game, according to Pakistan-based publication, ‘The News International‘.

After squandering a one goal lead against Pakistan during the final touch of their first friendly first game the Maldives sealed victory Thursday night through three second-half goals from Mohamed Umair and captain Ali Ashfaq. Ashfaq scored twice in the 67th and 90th minute of the match.

Despite the seemingly one-sided final score, local media reported that both teams started the match brightly, with Pakistan’s Denmark-based attacker Hasan Bashir rattling the home-side’s cross bar with a strike in the opening ten minutes of the game.

The Maldives also came close to scoring during the first half with a close range header that went wide in the 27th minute of the match.

Ten minutes later, the Maldives Mohamed Arif once again hit the post with a powerful shot, according to media reports.

With the first half ending in a stalemate, Mohamed Umair opened the scoring for the hosts with a long range effort in the 59th minute.

Maldives Captain sealed the win eight minutes later, before netting a second in the final minute of standard time.

Pakistan’s two friendly matches in Male’ were held as part of the national squad’s preparation ahead of its first qualifying matches for the 2014 Asian Football Confederation (AFC) Challenge Cup.

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