Category: News in Brief

Cable and Wireless Communications sells Dhiraagu majority stake to Bahrain’s Batelco

Dhiraagu has said it remains “businesses as usual” for its operations after the group’s majority shareholder Cable and Wireless Communications (CWC) announced today it would be selling its stake in the company to Bahrain-based Batelco.

The agreement will see CWC divest its businesses in a number of nations, including the Maldives, Channel Islands and Isle of Man, the Seychelles, Diego Garcia as well as other South Atlantic operations it has stakes in for a fee of US$680 million (MVR10.4bn).

Dhiraagu’s Manager for Marketing, Communications and Public Relations Mohamed Mirshan Hassan told Minivan News that Batelco’s purchase – expected to be completed by the end of CWC’s present financial year – would have no immediate impact on the company’s existing services or expansion plans. Batelco has pledged to invest further in the company to strengthen Dhiraagu’s position in the Maldivian telecommunications sector.

Stake

As of March this year, CWC controlled 52 percent of Dhiraagu’s shares, with the government holding just under 42 percent.

Mirshan added that there had been no discussions over whether its new majority shareholder would look to add to its stake  in the telecommunications provider.

“There has been no mention of this at the moment,” he said, adding that it would remain “business as usual” for the company once the sale of its shares had been completed.

In addressing the sale, CWC CEO Tony Rice said that the company was selling its Monaco and Islands portfolio, which includes the stake in Dhiraagu, as part of its wider aims to expand the group’s Pan-America operations.

Meanwhile, Batelco Group Chief Executive, Sheikh Mohamed bin Isa Al Khalifa said the group would look to make further investment in Dhiraagu following completion of the deal.

“Batelco is in the process of building a telecoms business of global relevance of which the Maldives will be an important part,” he said. “We will continue the development of Dhiraagu as a market leader and we are looking forward to supporting each of the businesses and contributing to the communities they operate in.”

Dhiraagu itself is one of the country’s largest service providers, dominating the internet and telecommunications sector alongside its main competitor, Wataniya.

Set up back in 1988, the company has said it presently employs over 600 staff across the Maldives, 99 percent of whom are said to be local workers.

CWC took a controlling stake in Dhiraagu in 2009 when former President Mohamed Nasheed’s government sold 7 percent of its shares, giving the British-based firm a controlling stake in the company.

Then-opposition parties criticised the sale in local media, arguing that the acquisition of large stakes of domestic companies by foreign investors was bad for the country.

Similar arguments have been levelled against the development of Ibrahim Nasir International Airport (INIA) by Indian company GMR. Earlier today, GMR secured an injunction from the High Court of Singapore against the Maldives cabinet’s earlier decision to void its concession agreement for the US$511 million project and issue the developer with a seven day eviction notice.

The Maldivian government nonetheless has today dismissed such an injunction and vowed that the airport will be run by the state-owned Maldives Airport Company Limited (MACL) by the coming Saturday (December 7).

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Proposed defence budget 14 percent higher than 2012

The defence budget proposed in the annual state budget for 2013 submitted to parliament last week is 14 percent higher than 2012.

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

The figure in 2012 was MVR 797.9 million (US$51.7 million) or 4.8 percent of this year’s budget.

Of the MVR930.9 million assigned for the military, MVR 805.4 million (US$52.2 million) is to be spent on military defence and MVR 125.5 million (US$8.1 million) on civil defence.

The budget assigned for the Ministry of Defence for 2013 is MVR913 million, up from MVR811 million in 2012.

Moreover, defence expenditure under the Public Sector Investment Projects (PSIP) include MVR 3.1 million (US$201,000) for the construction of a troops accommodation building in Gaaf Dhaal Thinadhoo and MVR 1.9 million (US$123,216) for a military barracks in Laamu Kadhdhoo.

Following the controversial transfer of presidential power in February, an allowance of military personnel pending for more than two years was disbursed in a single payment.

Local media reported at the time that some officers had received over MVR6000 (US$390) in accrued allowances, although a total figure spent on the pay out, or how many officers received the allowances, was not stated.

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Parliament passes public health bill

Parliament on Wednesday passed 40-1 a public health bill submitted by Independent MP for Kulhudhufushi South, Mohamed Nasheed, more than two years ago.

The legislation (Dhivehi) specifies guidelines for protection of public health and includes penalties for violations.

While the Health Minister would be responsible for public health matters, the law proposes the formation of a Health Protection Agency with powers to appoint officials to various posts in the health sector, quarantining and carrying out inspections.

If the bill is ratified by the President, a public health fund would be established with proceeds from licensing fees, payments from services, fines and a portion of import duties from cigarettes and tobacco.

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Parliament accepts police bill

Parliament on Wednesday accepted legislation proposed by Independent MP for Kulhudhufushi South, Mohamed Nasheed, to revamp the existing Police Act.

MPs voted 24-19 with one abstention to accept the bill and sent it to the National Security Committee for further review.

Presenting the bill to parliament on October 31, Nasheed said the new law was intended to “bring fundamental, revolutionary change” to the police institution.

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Singapore’s Crescendas Group claim Maldives is still secure for foreign investment

Maldives is still a safe and secure environment for foreign investors, Singapore’s Crescendas Group has claimed today.

The comments were made in local media days after the Maldives government annulled a contract with Indian infrastructure giant GMR to redevelop Ibrahim Nasir International Airport (INIA) near to Male’. GMR was just two years into a 25-year contract to develop and manage the country’s main airport.

Prior to the annulment, an anti-GMR campaign organised by coalition-aligned parties was formed to increase public support to “reclaim” the airport.

Despite this week’s developments, Crescendas Group Chief Executive Officer Lawrence Leo today claimed to have “strong confidence” in the Maldives, expressing the company’s interest in looking to invest in country for “the long term”.

“There is huge investment potential here. We have met many from both the private sector and government; we have received great support from everyone. Most important thing to be noted is everyone we met gave very positive responses. This shows that Maldives is one of the best places to invest,” he told Haveeru.

“We are also thinking to invest here for the long term because we have strong confidence, otherwise we wouldn’t have brought our funds to invest it here,” Leo added.

Crescendas group is currently developing a resort in Addu Atoll Hankede.

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DhiTV board members summoned to Parliament

DhiTV board members have been summoned by the Parliament General Committee to “clarify some information”.

Last week Editor and News Head of DhiTV Midhath Adam was heavily criticised at the Parliament’s Privileges Committee following accusations of defamation.

Midhath today (November 29) said that the directors’ board has since been asked to be present at parliament at 9:30am on Monday. According to Midhath, the board had not decided on a course of action over the matter.

Parliament has asked DhiTV to provide the names of two board members who will be present before next Sunday.

Midhath was previously summoned to the parliament on two separate occasions to clarify information regarding DhiTV content.

Maldivian Democratic Party (MDP) Chairperson and Hulhu-Henveiru MP Reeko Moosa Manik, accused DhiTV of defaming his business and family, whilst Jabir further accused DhiTV of broadcasting stories that were shaped to attack him personally.

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Department of Information abolished by President

Ministry of Tourism, Arts and Culture has taken over the role of the Department of Information, after the latter was abolished by President Mohamed Waheed Hassan Manik.

The department was dissolved after some of new the institutions – formed by law under the new constitution – were found to perform the same functions previously carried out by Department of Information.

Following the change, the registration of media; formulating policies and facilitating the development of local media; creating the official Maldives’ calendar; maintaining the registry of journalists and writers; and, representing the Maldives internationally in the press field will be carried out by the Ministry of Tourism, Arts and Culture.

The Ministry of Foreign Affairs will provide information to the international media on local events.

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Negotiating a route into the Maldives tougher than for North Korea, record setting traveller claims

The first person to visit all 201 countries without using a plane has said he found gaining access to the Maldives far tougher than attempts to enter North Korea and Afghanistan.

Graham Hughes a 33-year-old from Liverpool, England, made it to the South Sudan capital of Juba yesterday (November 26), where he completed his journey.

Despite facing many questions on how he gained access to countries like North Korea, Iraq and Afghanistan, Hughes revealed that negotiating a route into the Maldives was far tougher, the Daily Mail reported.

Hughes used buses, taxis and trains to travel 160,000 miles across the world in 1,426 days, a voyage he claimed was budgeted at just US$100 a week.

He spent four days “crossing open ocean in a leaky boat” to reach Cape Verde, was jailed in the Congo accused of spying and was arrest trying to “sneak into” Russia.

Following the completion of his journey, Guinness has now confirmed that Hughes was the first person to have officially visited every nation on the earth without relying on an aircraft.

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Finance Ministry reveals plans to establish offshore banking

Economic authorities are planning to establish an Offshore Financial Centre (OFC) in the Maldives, Finance Minister Abdulla Jihad has revealed in local media.

The plans to establish an OFC in the Maldives were announced while the state budget was presented at the parliament.

According to Jihad, the purpose of introducing OFC facilities in the Maldives would allow for the generation of revenue outside of the tourism industry.

“Offshore financing can be successfully done in small island nations like the Maldives. Large banks around the globe have their interest in Maldives,” Jihad told Haveeru.

Jihad added that he had travelled to Mauritius to speak with officials from banks involved in offshore financing.

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