No intention to transfer assets to MIAL: MACL to Axis Bank

The Maldives Airports Company Limited (MACL) and its lawyers have denied any intention of dissipating the state-owned company’s assets by transferring them to a newly-created, state-owned entity called Male’ International Airport Limited (MIAL).

MACL and the government of the Maldives are currently party to arbitration proceedings in Singapore after one of the lenders to the terminated GMR-Malaysia Airports (GMR-MAHB) development – Mumbai-based Axis Bank – called in US$160 million worth of loans which had been guaranteed by the Ministry of Finance.

A copy of the agreement from November 24, 2010, in which the Ministry of Finance guarantees the loans to GMR-MAHB, is signed and stamped by both then-MACL Chairman Ibrahim Saleem and Finance Minister Ali Hashim on behalf of the government.

Eviction and arbitration

In December 2012, the GMR-MAHB consortium, which had signed a 25 year concession agreement with the former government to manage and upgrade Male’s airport, was given a seven day eviction notice by the new government after it declared the concession agreement void ab initio, or ‘invalid from the outset’.

That decision is currently subject to arbitration proceedings in Singapore, with GMR-MAHB’s compensation claim expected to reach upward of US$1 billion. Axis Bank is pursuing the US$160 million in separate proceedings.

President Waheed’s government on March 14 meanwhile declared in a one-line statement that it was establishing MIAL as a new 100 percent state-owned company, and several weeks later announced the appointment of a board of directors including tourism tycoon and Chairman of Universal Enterprises, Mohamed Umar Manik, and Island Aviation Chairman Bandhu Ibrahim Saleem as managing director.

Finance Minister Abdulla Jihad informed local media on May 21 that MIAL would take over the operation of the airport under a management contract by July.

The apparent move to transfer MACL’s management functions to MACL led to a flurry of letters from Axis Bank to both MACL and the government, with the bank expressing concern that “if MACL ceases to manage and operate Male’ airport, and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell.”

MACL’s denial

In a letter responding to Axis Bank’s CEO Bimal Bhattacharyya, dated April 24, 2013, and obtained by Minivan News, MACL’s Managing Director Ibrahim Mahfooz claims “your insinuation that MACL is attempting to dissipate assets to avoid and satisfaction of any judgement is insulting and without any basis.”

“For the record, we can confirm that MACL has no plans to transfer any of its assets to another company,” Mahfooz writes.

He accuses Axis Bank of making a case on “hearsay and speculation”, and asks whether its threat of legal action was “part of a concerted plan with any other parties”.

“You have tried to assert that your claim of US$163,596,347.78 remains unsatisfied. We had in our previous correspondence to you made it clear that you do not have a valid claim against MACL,” Mahfooz states.

“At best your alleged claim (at its highest) is purely a monetary claim against MACL and GOM. Please set out clearly the basis in which you think your claim will not be satisfied by MACL and GOM in the event Axis Bank is not successful,” he writes.

That letter triggered a further flurry of correspondence between Axis Bank’s legal representation Norton Rose and MACL’s Singapore-based firm Advocatus.

The latter firm, acting on behalf on MACL in December 2012, successfully overturned an injunction in the Singapore Supreme Court blocking MACL from taking over the airport, on the grounds that the arbitration court had no jurisdiction to prevent the Maldives as a sovereign state from expropriating the airport.

In the Singapore Supreme Court’s full verdict, a copy of which Minivan News has obtained, Financial Controller for the Ministry of Finance, Mohamed Ahmed, “affirmed in an affidavit that the Maldives government would honour any valid and legitimate claim against it. He also stressed that the Maldives government had never defaulted on any of its payments.”

Lawyer representing MACL, Christopher Anand Daniel, “also accepted that if the arbitration tribunal found that the Appellants were wrong in their asserted case that the Concession Agreement was void ab initio and/or had been frustrated, but the Appellants had by then already gone ahead with the taking over of the airport, they would at least be liable to compensate the respondent for having expropriated the airport” (emphasis retained).

Legal barrage

Stern letters exchanged throughout late April and most of May between the two sets of lawyers suggest brewing disagreement over whether MIAL’s assumption of management responsibilities for the airport can be construed as a transfer of assets and an attempt to dissipate its assets in preparation for a costly verdict.

“Almost all of MACL’s income comes from MACL’s management and/or operation of Male’ Airport,” notes Axis Bank.

“The stated purpose for the incorporation of MIAL is for MIAL to manage and operate Male Airport. This is a role presently performed by MACL. The natural consequence of the above facts is that if MACL ceases to manage and operate Male’ Airport and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell company,” Axis Bank’s lawyers noted, adding that the government had made no effort to deny this despite repeated invitations.

In response Advocatus, in a letter dated May 10 and obtained by Minivan News, declared “Your client [Axis Bank] has no evidence that MACL is dissipating assets to begin with. It is obvious that your client is attempting to see if it can create a case by correspondence when it has none.”

Following Finance Minister Abdulla Jihad’s pledge that the transfer of assets to MIAL would be completed by July 1, widely reported in local media, Norton Rose wrote another letter noting “[the Minister’s] statements are in direct contradiction to MACL’s position in its letter of April 24 stating that ‘For the record, we can confirm that MACL has no plans to transfer any of its assets to another company.’”

“These new developments, stated in the various news reports, lend credence to Axis Bank’s legitimate concerns that MACL is in fact attempting to dissipate its assets in favour of MIAL or any other third party and, consequently, there will not be sufficient assets to satisfy any arbitral award that may be rendered in favour of Axis Bank against MACL in the arbitration,” the lawyers wrote.

Advocatus responded on May 29, again accusing Axis Bank off “desperately trying to create a case where none exists.”

“The Minister, who had given the interview in Dhivehi, had been misquoted in the English version of news reports you mentioned,” MACL’s lawyers stated.

“When he gave the interview, the Minister had in fact said that ‘asset management is going to be officially handed over to MIAL’,” Advocatus contended.

Assets, management and the draft agreement

Meanwhile, a working draft of an ‘Operations and Management’ agreement between MACL and MIAL, dated May 21 and obtained by Minivan News, notes that MIAL “is a company established with the primary objectives of operating, maintaining and managing the airport.”

The agreement states that while the Finance Ministry has granted MACL the lease of the site and rights to operate and manage the airport, “MACL, in the interest of the better management of the airport, and/or overall public interest, is desirous of granting to MIAL the functions of operating, maintaining and managing the airport.”

The agreement includes provision for the transfer of employees from MACL to the new company, and the requirement that it obtain an aerodrome certificate from the Ministry of Civil Aviation – the core authority issued by the state for a company to operate an airport.

It also noted that “no proceedings against MIAL are pending or threatened, and no fact or circumstance exists which may give rise to such proceedings that would adversely affect the performance of its obligations under this agreement.”

MIAL would be paid management fees by MACL, although the extent of these are not included in the particular draft obtained by Minivan News. The agreement does however set out how “MIAL shall, on behalf of MACL, deposit all monies received from the operation of the airport into one or more bank accounts in the name of MACL.”

Board issues

Despite the Finance Minister’s comments on May 21, MIAL’s appointed CEO Bandhu Saleem has told Minivan News that “until the arbitration is complete, I think it will be very difficult to start a new company.”

Minivan News is seeking to establish the current status of the new company. However further obstacles appeared this week in the form of the government’s Attorney General Aishath Bisham, who informed local media that President Waheed lacked the authority to appoint the boards of government-owned companies following the ratification of January’s Privatisation Act.

Instead, she said, the privatisation board created under that act operated as “a separate legal entity, and has the sole authority to appoint board members.”

Besides MIAL, President Waheed also in February appointed the board of the Maldives Ports Authority Limited (MPL).

“The Privatisation Board should investigate those cases,” suggested the attorney general.

Former President Maumoon Abdul Gayoom, whose Progressive Party of the Maldives (PPM) was among the most strident opponents to GMR-MAHB’s development of the airport, meanwhile appeared to have adopted a conciliatory tone during a visit to India last week to smooth troubled relations.

“[The cancellation] was a very populist move at the time as the public had a perception that the contract was bad for the country. The way it was handled was not good,” Gayoom was reported as telling Indian newspaper The Hindu.

“I am sad that this has somehow affected our bilateral relations. We want to overcome that and restore our relationship with India to its former level,” Gayoom told the paper.

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MIAL to take over airport operations by July 1, says Finance Minister

The government has declared it intends to transfer the operation of Ibrahim Nasir International Airport (INIA) from the Maldives Airports Company Limited (MACL) to a new state-owned company, Male International Airport Limited (MIAL).

Finance Minister Abdulla Jihad told local media that MIAL would take over the airport’s operations by July 1.

“The company has been registered. Now remains the work by MACL to hand over operations. It will begin soon, without delay,” the Finance Minister said, according to Sun Online.

“The new company will run the airport. The ownership of the airport will remain with MACL until arbitration is completed. But the work on transferring the employees and such will continue, when they take over operations. An official handover of the assets will also be conducted,” Jihad was reported as saying.

His comments follow the leaking of a letter recently sent to the Finance Ministry by Axis Bank, one of backers of the GMR-Malaysia Airports (GMR-MAHB) consortium which the government evicted from the Maldives in December 2012, after declaring the concession agreement signed under the former administration “void from the start”.

A copy of the direct agreement attached to the leaked letter showed the Finance Ministry guaranteed the loans taken by GMR-MAHB, which was signed and stamped in November 2008 by both MACL and then-Finance Minister Ali Hashim.

Axis Bank has called in the guarantee and is currently seeking US$160 million from the government and MACL. In the letter copied to both the Finance Ministry and MACL, the bank expressed concern that the government was attempting to turn MACL into a shell company while arbitration was pending, and warned it not to transfer the company’s assets or function to a new entity.

“Given that Axis Bank’s claim under the direct agreement is against MACL, you will understand that Axis Bank views with the greatest concern any attempt to dissipate the assets of MACL in favour of MIAL or any other third party,” wrote Axis Bank’s CEO Bimal Bhattacharyya in the letter, dated April 22.

“If MACL ceases to manage and operate Male’ airport, and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell,” he wrote.

The letter demanded the government “undertake not to allow any assignment, transfer or disposition of any of MACL’s rights to manage and or operate Male airport to MIAL or any third party… or allow MIAL or any third party to perform any function of managing or operating Male’ airport which is presently performed by MACL”.

“Please understand that Axis Bank views any dissipation of MACL’s assets with grave concern, and will take the necessary legal action to prevent such a dissipation”, the bank advised.

MIAL’s appointed CEO Bandhu Saleem at the time told Minivan News that “until the arbitration is complete, I think it will be very difficult to start a new company.”

Meanwhile, uncertainty over the fate of the airport and the outcome of both the arbitration process and the upcoming presidential election led the global body representing the world’s airports, Airports Council International (ACI), to issue an alert to its members advising them to “conduct due diligence while considering any investment in the Maldives, considering the latest developments, uncertainty of outcome of elections, the legal and financial risks of the current arbitration and the nascent legal framework.”

ACI informed its members that the takeover was the subject of arbitration proceedings expected to last 9-12 months, and further noted that as the government had guaranteed the bank loans used by the developer, these were also the subject of separate proceedings.

With elections scheduled for September, ACI advised it was possible that “any leadership changes arising out of the elections [could] have a material impact of the future of the Male’ airport and the decision of expropriation.”

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International airports body urges caution over foreign investment in Ibrahim Nasir International Airport

Airports Council International (ACI), the global body representing the world’s airports, has advised its members to exercise caution before making any investment in the Maldives relating to Ibrahim Nasir International Airport (INIA).

In an email obtained by Minivan News dated May 8, ACI alerted its members that the Maldivian government is “in the process of transferring the Male’ airport to a wholly-owned subsidiary of MACL and may explore a sale of equity in this entity to another airport operator.”

“ACI members are advised to conduct due diligence while considering any investment in the Maldives, considering the latest developments, uncertainty of outcome of elections, the legal and financial risks of the current arbitration and the nascent legal framework,” the email states.

The cautionary note emphasises that ACI was “not taking sides with respect to the decisions made by the various parties”, and matter-of-factly outlines the government’s sudden termination of the concession agreement with the GMR-Malaysia Airports (GMR-MAHB) consortium to manage and upgrade Ibrahim Nasir International Airport (INIA).

The government declared the 25 year concession agreement ‘void ab initio’ in November 2012 and gave the foreign investors seven days to hand over the unfinished airport to the government-owned Maldives Airports Company Limited (MACL).

While subsequent arbitration proceedings saw the Singapore Supreme Court endorse the government’s right to expropriate the airport, ACI noted that “this was subject to [the government] offering sufficient compensation pursuant to the concession agreement”.

“However on December 8 MACL/Government of Maldives took over the possession and control of the airport without payment of compensation”, the email stated.

ACI informed its members that the takeover was the subject of arbitration proceedings expected to last 9-12 months, and further noted that as the government had guaranteed bank loans used by the developer, these were also the subject of separate proceedings.

With elections scheduled for September, ACI advised it was possible that “any leadership changes arising out of the elections [could] have a material impact of the future of the Male’ airport and the decision of expropriation.”

MACL and MIAL

On March 14, the government declared in a one-line statement that it was establishing by presidential decree a new 100 percent state-owned company, Male’ International Airport Limited (MIAL).

On March 31, President Dr Mohamed Waheed appointed MIAL’s board of directors, including tourism tycoon and Chairman of Universal Enterprises, Mohamed Umar Manik, as chairman, and Island Aviation Chairman Bandhu Ibrahim Saleem as managing director.

Other directors appointed included Thoriq Ibrahim of G. Noomaraahiya, Ahmed Munavvaru of Gaafu Dhaalu Madaveli Gahaa, Abdulla Yazeed of Dhaftharu, and Ibrahim Iyas of Dhaftharu.

The decision to form MIAL last month led GMR-MAHB’s lender Axis Bank to accuse the government of trying to turn MACL into a shell company, and warning it not to transfer MACL’s assets or function while arbitration was pending.

“Given that Axis Bank’s claim under the direct agreement is against MACL, you will understand that Axis Bank views with the greatest concern any attempt to dissipate the assets of MACL in favour of MIAL or any other third party,” wrote Axis Bank’s CEO Bimal Bhattacharyya in a letter copied to MACL and the Ministry of Finance, dated April 22.

“If MACL ceases to manage and operate Male’ airport, and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell,” writes Bhattacharyya in the letter, obtained by Minivan News.

The letter calls on the government to “confirm or deny” its intentions by April 25, and “undertake not to allow any assignment, transfer or disposition of any of MACL’s rights to manage and or operate Male airport to MIAL or any third party… or allow MIAL or any third party to perform any function of managing or operating Male’ airport which is presently performed by MACL” by April 27.

“Please understand that Axis Bank views any dissipation of MACL’s assets with grave concern, and will take the necessary legal action to prevent such a dissipation”, the bank advised.

MIAL’s appointed CEO Bandhu Saleem confirmed to Minivan News that the government did intend MIAL to manage the airport, but said the process of transferring that responsibility over from MACL had run into “hurdles” relating to its current legal issues.

“The board has been appointed, but I have not yet taken on the role,” he said, noting that the new company was waiting on government clearances and had yet to be officially created.

“Until the arbitration is complete, I think it will be very difficult to start a new company,” he added.

Axis Bank loans and compensation claim

A legal submission detailing the Axis Bank dispute, also obtained by Minivan News, notes MACL’s failure to notify Axis Bank of its intention to terminate the concession agreement within 60 days, as required in the bank’s direct agreement.

An included copy of the November 24, 2010 agreement, in which the Ministry of Finance guarantees the loans to GMR-MAHB, is signed and stamped by both then-MACL Chairman Ibrahim Saleem and Finance Minister Ali Hashim on behalf of the government.

The document shows that Axis Bank is seeking the repayment of US$160 million by the government of Maldives due to MACL’s breaching its obligations under the agreement.

At the same time, the governor of the Maldives’ central banking authority recently warned parliament that the Maldives’ gross state reserves had fallen to little more than US$300 million, after the government was compelled to repay a series of US$50 million loans the State Bank of India declined to roll over at the start of 2013.

Repayment of the Axis Bank loan could place the Maldives in a position where it has less than a month of imports in reserve – a potential crisis for an island nation 100 percent dependent on imports for basic subsistence.

The government meanwhile contends that it is not subject to termination and associated clauses relating to a contract it has deemed ‘void from the outset’.

“Under the terms of the direct agreement, these loans would be repayable if the concession was terminated early, as defined in the direct agreement. The government contends, however, that if the concession agreement is void ab inito, then these terms do not apply,” reads a special audit commissioned by the Auditor General.

“Under the terms of the direct agreement, these loans would be repayable if the concession was terminated early, as defined in the direct agreement. The government contends, however, that if the concession agreement is void ab inito, then these terms do not apply.”

Present situation

With arbitration pending and efforts to create a new management company having apparently stalled for the time being, the outlook for the airport remains uncertain.

Much will be dictated by the election in September. Former President Mohamed Nasheed has said he will invite GMR-MAHB to return should his party resume government, while the Progressive Party of the Maldives (PPM) has declared one of GMR-MAHB’s most voracious opponents, ex- Home Minister Dr Mohamed Jameel, as the party’s Vice-Presidential candidate.

The government’s special audit of the project shows the upgrade and construction of the new terminal was 25 percent complete as of October 31, 2013.

“In the meantime, all work on the ground on the improvement to the airport has ceased. Sensitive elements of the new structures that had been planned by [GMR-MAHB] are incomplete and exposed to the weather and at risk of damage – possibly closing off the option of re-using these elements to reduce the cost of any future development of the airport,” the report noted.

Former Transport Minister Dr Ahmed Shamheed, who was dismissed by the government in November 2012, warned in January 2013 the airport needed urgent work to reach acceptable standards, that was outside local capabilities.

“To get the airport to the right level, they will need to bring in outside help,” he told Minivan News at the time.

“The airport is in very bad shape right now and work is needed on the runway, all of which cannot be done without finance.”

Ibrahim Nasir International Airport was meanwhile dubbed the  ‘Indian Ocean’s Leading Airport 2013′ at the Indian Ocean World Travel Awards on May 12.

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Former attorney general to keep advising government on Nexbis, GMR matters

Former Attorney General (AG) Azima Shukoor will continue to advise the government on two high-profile legal cases she has previously been involved in, despite being transferred to the Gender Ministry earlier this month.

The two cases involve the future of an agreement to implement a border control system supplied by Malaysia-based Nexbis and arbitration hearings resulting from declaring “void” a US$511 million airport concession agreement with India-based GMR void.

Shukoor, who was appointed as Minister of Gender, Family and Human Rights on April 10, said yesterday (April 13) that she intended to continue to serve on a team of lawyers working for the state on the cases involving Nexbis and GMR, local newspaper Haveeru has reported.

President’s Office Media Secretary Masood Imad has previously told Minivan News that the government had decided to transfer Shukoor as part of commitments to help oversee proposed legal reforms that could potentially end the use of flogging as a punishment for sexual offences.

The government has previously criticised the practice, which it alleged serves to punish victims of rape and sexual abuse in some cases.

The state has come under further pressure to review the handling of sexual offence cases from petition site Azaaz.org, which has threatened otherwise to call for a tourism boycott over a flogging sentence handed to a 15 year-old girl for ‘fornication’.

Shukoor has claimed in local media to have personally requested the president appoint her to the Gender Ministry on condition she would continue to work on the cases relating to Nexbis’ agreement and the arbitration hearings with GMR.

GMR arbitration

In November 2012, President Dr Mohamed Waheed’s government declared void a concession agreement signed by the previous government with Indian firm GMR to manage and build a new terminal at Ibrahim Nasir International Airport (INIA).  It then ordered the company to leave the country within seven days.

GMR is seeking US$800 million in compensation for the sudden termination, while the Maldivian government is contending that it owes nothing as the contract was void ab initio – meaning the contract was invalid from the outset.

Nexbis

Nexbis signed a “legally binding” deal in 2010 to provide a customised border control system under a ‘build, operate and transfer’ agreement to Maldivian authorities that still remains in use as of this month.

The deal is presently the subject of legal wrangling over whether the Anti-Corruption Commission (ACC) has the power to demand termination of the contract. Parliament has also voted to cancel the system, but this is subject to a court injunction.

However, the US government late last month signed a Memorandum of Understanding (MOU) to provide a border control system to the Maldives. Representatives for Nexbis at the time said they had not been informed of the MOU signing or what it might mean for the company’s own agreement with the state.

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Three suspected of smuggling drugs into country arrested

Police have arrested three people accused of bringing large amounts of drugs into the Maldives, local media reports.

The Drug Enforcement Department arrested three individuals aged 26, 27 and 29 on Wednesday, after police were informed of a person bringing drugs into the country via the airport.

Local media reported that the 26-year-old was arrested first as he got off the ferry from Hulhule’ to Male’, while the 27 and 29-year-old were arrested under suspicion of receiving and trading the drugs.

21 bullets containing a substance suspected to be drugs were seized by police, after they were carried internally by the 26-year-old.

Meanwhile, local media reported that customs handed over a man to police on February 16 who was suspected of carrying drugs internally.

Police later discovered the man had been carrying 99 bullets of a substance suspected to be drugs.

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Government, GMR appoint arbitrators in compensation case

Arbitrators have been appointed to determine the amount of compensation payable by the Maldivian government to Indian infrastructure giant GMR, according to the Attorney General’s Office.

GMR signed a US$511 million 25-year concession agreement with the Nasheed government to manage and upgrade Ibrahim Nasir International Airport (INIA).

However in November 2012, the government of President Dr Mohamed Waheed Hassan Manik declared the developer’s concession agreement void and ordered it to leave the country within seven days.

A last minute injunction from the Singapore High Court during arbitration proceedings was overturned on December 6, after Singapore’s Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

GMR is seeking US$800 million in compensation for the sudden termination, while the Maldivian government is contending that it owes nothing as the contract was “void ab initio”, or invalid from the outset.

The awarding of the bid in 2010 was overseen by the World Bank’s International Finance Corporation (IFC), which the Waheed government has accused of being “negligent” and “irresponsible”.

The Maldives’ Deputy Solicitor General Ahmed Usham told local media today that the Maldives would be represented by Singapore National University Professor M. Sonaraja, while former Chief Justice of the UK, Lord Nicholas Edison Phillips, will represent GMR.

The arbitrator mutually agreed by GMR and the government is retired senior UK Judge, Lord Leonard Hubert Hoffman, according to the Attorney General’s office.

“They have sent us the terms and conditions now. A day to start the arbitration proceedings will be decided once it is agreed to and signed,” Usham was reported as saying.

Should the matter be decided in the government’s favour, uncertainty remains as to the potential impact on foreign investor sentiment given the prospect of sudden asset seizure under the ‘void ab initio’ precedent.

If decided in GMR’s favour, the outcome of the case could potentially see the Maldives facing sovereign bankruptcy, with millions of dollars in additional debt emptying the state’s already dwindling reserves, crippling the country’s ability to obtain further credit, and potentially sparking an economic or currency crisis.

In December 2012, the Maldives government paid back US$50 million to the State Bank of India, after it refused to extend the period of the treasury bonds issued by the bank during the previous government. India has called in further instalments of US$50 million, forcing the government to draw on the state reserves.

Finance Minister Abdulla Jihad has said the government is yet to come to an arrangement to pay the next US$50 million instalment to SBI, explaining that the money will have to come from the Maldives Monetary Authority (MMA).

“The US$50 million due in February will have to be paid from the reserve. We have been ordered to pay the amount. There has been no change to the order so far. So it must be paid,” Jihad told local media.

At the start of 2013, state reserves had shrunk to MVR 4.9 billion (US$317.7 million), according to the MMA.

“Gross international reserves at the MMA have been declining slowly, and now account for just one and half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” an International Monetary Fund (IMF) delegation observed during a mission to the Maldives in November last year.

Moreover, one of GMR’s lenders, Axis Bank, is also seeking the repayment of loans for the airport project, which were guaranteed by the Ministry of Finance and approved by the Attorney General’s Office under the former government.

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Maldivian man alleges beating in Indian prison after attempting to export peacock feathers

A Maldivian man arrested in Trivandrum, India for attempting to take a bag of peacock feathers back to Maldives has alleged he was beaten in prison, local media reported.

Ahmed Rufwaan Ali, 23, was arrested at Trivandrum Airport in December 2012 before spending 13 days in an Indian prison.

Speaking to media on his arrival back into Male’ yesterday (January 26), Ali alleged that officers in the prison tortured him due to his refusal to “subject himself to their instructions”, Sun Online reported.

Rufwaan subsequently clarified that he had been “beaten” in custody.

“Using the word ‘torture’ insinuates that I was exposed to extreme violent treatment which was not the case. It is also the ‘cultural’ language barrier that the Dhivehi language consists of limited vocabulary which when translated to English, can fit to a variety of synonyms,” he said, in a subsequent statement.

Rufwaan said he had been asked by reporters as to whether he was beaten in custody, to which he “regretfully responded, “It is a jail after all, and we will get beaten. Yes I was beaten. The rules of the officers there is that, once jailed we have to beg for mercy at their feet. I refused to do that, which is why I got the beating.”

Ali blamed the Maldivian consulate in India for the way he was treated in prison, claiming that Indian authorities had been about to release him before the Maldivian Consulate “communicated to Indian Customs authorities in an inappropriate manner”.

He also claimed the Maldivian consulate in India did not help to  bail him out of prison, and instead he had to rely on his family for the money.

“I first paid 25,000 rupees, and then 10,000 rupees as fine. All the help I got came from my family. The consulate there did not concern itself with me,” Ali was quoted as saying in local media.

Ali claimed that he was not aware of the ban on buying and selling peacock feathers, adding that he was unaware if the feathers were fake or not, according to local media.

Minister of Foreign Affairs Dr Abdul Samad Abdulla was not responding to calls from Minivan News at time of press.

Clarification: Initial reports in local media quoted Rufwaan as saying he had been “tortured” in custody. Rufwaan subsequently issued a statement claiming he had been mistranslated and that he was in fact only “beaten”.

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Hanimaadhoo Airport to begin services to Trivandrum

Hanimaadhoo Airport in Haa Dhaalu Atoll is to begin operating international flights to Trivandrum in India as of February 2, the Transport Ministry has announced.

Acting Transport Minister Mohamed Nazim told local media that Island Aviation and the Indian High Commission have come to an agreement whereby the appropriate visa is available with the ticket.

“Island Aviation will open for the purchase of the tickets and announce the prices soon. It has been arranged that the forms, once filled out, can be submitted to the High Commission through Island Aviation,” Nazim was quoted by Sun Online.

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Home minister confident ahead of parliamentary no-confidence vote

Home Minister Dr Mohamed Jameel Ahmed has said he expects to successfully defend himself within the People’s Majlis against a no-confidence motion submitted this month by the opposition Maldivan Democratic Party (MDP).

Local media reported Friday (December 21) that Parliamentary Speaker Abdulla Shahid has sent the required 14-day notice to Dr Jameel informing him of a second no-confidence motion submitted by the MDP against him.

The motion was forwarded by the opposition party over allegations the home minister had failed to control civil peace and order in the country. A previous motion submitted by the MDP against Dr Jameel was withdrawn by the party for unexplained reasons.

Earlier this month, parliament also tabled a no-confidence motion filed against Defence Minister Colonel (Retired) Mohamed Nazim, despite a Supreme Court injunction ordering parliament to halt all pending no-confidence votes.

The People’s Majlis secretariat revealed at the time that Defence Minister Nazim has been given the required 14-day notice and his ministry also duly informed by Speaker Abdulla Shahid. A no-confidence motion against President Dr Mohamed Waheed Hassan is also in parliament awaiting scheduling.

Confirming that the 14 day notice ahead of the second no-confidence vote against him had now been received, Dr Jameel claimed he expected to successfully defend himself from the motion, as would other senior government representatives.

“[The no-confidence motion] is part of a democratic process that the government of the day must always be prepared to face. I feel it’s equally vital for those of us sitting in the government to inform the public and People’s Majlis of our performance and decisions.”

“I am sure once our side of the story is heard by the Majlis, the concerns and charges raised in the motion will become clearer and will be seen as baseless. It’s important in such a motion, in my opinion, to appear in the Majlis and fully cooperate with this democratic exercise,” he told Minivan News.

Dr Jameel added that the would not comment on whether he felt the MDP could garner enough support for the motion, referring the question to the opposition party.

MDP allegations

After last week submitting the bill, which was backed by 17 of MDP MPs, the opposition party accused the Home Minister of  failing to control law and order in the country and therefore holding ultimate responsibility for the loss of eight lives.

The MDP further referred to an incident in which a police officer struck a speeding motorcyclist with his baton.  The action caused the vehicle – alleged to have been driven by a suspected robber – to collide with another man’s motorcycle and killing him.

Police at the time did not reveal the involvement of the police officer in the death of the bystander. Video footage of the incident was subsequently leaked to the media.  The MDP alleged that Home Minister Jameel had tried to cover up police involvement in the death.

MDP MP and Spokesperson Hamid Abdul Ghafoor claimed there was sufficient support in the Majlis to back the three no-confidence motions the party submitted against Dr Jameel, President Waheed and Defense Minister Nazim.

“We believe it is possible and necessary to [pursue the no confidence motions]. If you look at all cases, it is quite clear that all have acted unconstitutionally. This applies to all three cases,” he said.

In light of the government’s recent decision to terminate a sovereign agreement with India-based infrastructure group GMR over developing Ibrahim Nasir International Airport (INIA), Ghafoor contended that sufficient support remained in parliament to vote against the government in all three cases.

“We believe there are enough sensible MPs who understand the need for a legal ouster of an unelected executive,” he claimed.

Ghafoor added that the party was confident that a majority of MPs would not continue to allow what he alleged was the growing role of radicalism within the executive’s decision.  He contended this influence had been seen in the government’s attitude against not only parliament, but foreign investment in the form of GMR.

“You have a government without any democratic mandate taking major decisions against parliament and foreign investors,” he added.

Earlier this week, government-aligned Progressive Party of Maldives (PPM) Parliamentary Group Leader and MP Abdulla Yameen alleged in local media that any damage to relations between India and the Maldives following the GMR contract termination had been the result of the actions of the National Movement.

The National Movement is made up of several representatives in the coalition government of President Waheed, notably including the religious conservative Adhaalath Party (AP).

During an interview with private broadcaster DhiTV on Tuesday (December 18), Yameen claimed that the airport was not withdrawn from GMR due to the pressure of National Movement, which had strongly opposed the deal, but rather a unanimous decision by the coalition government.

However, Yamin alleged that during rallies held by the National Movement, some participants spoke in a tone about GMR and the airport development that might have caused diplomatic issues with India.

According to Sun Online, Yameen was also quoted as claiming that the ongoing protests and rallies being held by the National Movement were unnecessary.  He added that the Maldives might have to face difficulties due to the recent activities of the National Movement.

Days earlier, National Movement steering committee member and Minister of State for Finance Abbas Adil Riza said efforts would be taken to “break up” parliament should its dispute with the Supreme Court over holding temporary secret ballots for upcoming no-confidence votes continue.

However, speaking on December 9, government-aligned Dhivehi Rayyithunge Party (DRP) MP Abdulla Mausoom stated there was 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 what he believed was a “personal vendetta”.

Mausoom contended that, for the vote against Defence Minister Nazim at least, the MDP would not be able to pass such “personal vendetta-based motions” and repeated his claim that the motion lacked sufficient grounds to be supported.

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