The Maldives government has called for a cessation of work on the new airport terminal by Indian infrastructure group GMR, over allegations the company has “violated rules and regulations” regarding the construction.
President’s Office Spokesperson Abbas Adil Riza confirmed to Minivan News that the cabinet, acting on information provided by the Transport Ministry, had requested that building work on the new terminal at Ibrahim Nasir International Airport (INIA) be halted.
“When the government decides that a project be stopped, we will make sure this happens,” he said. “GMR have not discussed the construction with relevant authorities.”
Abbas did not clarify if the alleged violation of rules and regulations by the company was related to previous reports that construction on the project commenced last month without obtaining construction permits from the country’s Civil Aviation Authority.
Transport and Communications Minister Dr Ahmed Shamheed was not responding to calls at the time of press.
A GMR spokesperson said today that the company itself had received no letter or communications calling for a halt to work.
However, local media has reported that the cabinet opted on Tuesday (July 24) to call for a “temporarily halt” on work on the terminal, over claims GMR had not acquired necessary authorisation and permit approval from the country’s Civil Aviation Authority.
GMR told Haveeru earlier earlier this month that terminal construction had been approved in an existing master-plan agreed with the government. The company has pledged that it will open by July 2014, “irrespective” of outside issues.
Addressing the matter of GMR’s construction work earlier this month, the government at the time claimed that the permit was “not a huge issue” and was believed to have resulted from an error by contractors presently working on the airport’s construction.
Development plans
The development of the airport – expected by the company to total US$511m in costs – is the largest foreign investment project undertaken in the Maldives’ history and includes commitments to renovate INIA’s existing terminal by September both in terms of operational efficiency and customer services, according to GMR.
With contractors already having begun work on the new structure in June, the administration of President Dr Mohamed Waheed has previously stressed that it would not seek to interfere or “disturb” the project that officially commenced back in November 2010 under the administration of former President Mohamed Nasheed.
However, President’s Office Spokesperson Abbas previously claimed that the long-term prospects of the construction ultimately depended on GMR validating the legality of their contract – a document that was overseen by the International Finance Corporation (IFC). The IFC is a member of the World Bank group and the largest global institution focused on private sector in developing countries.
Abbas added that should the (now government party controlled) parliament also decide on nationalising the airport in line with the wishes of certain pro-government parties to take back the project from GMR, then the present administration would have to comply with such a decision.
The government of President Dr Mohamed Waheed Hassan comprises a coalition of former opposition parties that represent the majority of elected representatives. The now-opposition Maldivian Democratic Party (MDP) presently has 29 MPs in the Majlis, the largest number of MPs belonging to a single party.
Nationalisation calls
Several pro-government parties – including the Dhivehi Rayithunge Party (DRP), Dhivehi Qaumee Party (DQP), People’s Alliance (PA) and Jumhoree Party (JP) – advised President Waheed last month that they continued to endorse an agreement signed in June 2010 calling for the airport to be taken back from GMR and nationalised.
The agreement endorsed six main points which included taking legal action to prevent the government’s decision to award the contract to GMR.
Infrastructure giant GMR has said the new terminal at Ibrahim Nasir International Airport (INIA) will open two years as of yesterday (July 1) “irrespective” of outside issues.
The government has meanwhile pledged to back parliament should it decide on re-nationalising the project.
The development of the airport – expected by the company to total US$511m in costs – is the largest foreign investment project undertaken in the Maldives’ history and includes commitments to renovate INIA’s existing terminal by September both in terms of operational efficiency and customer services, according to GMR.
At the same time, work is also under way on an entirely new terminal structure on the Eastern-side of Hulhule’ island that GMR has claimed will completely transform the country’s foremost transfer hub for local people and international visitors alike.
Work conducted by GMR to reclaim the new terminal ground
Local media outlets were on Saturday updated on the redevelopment of the island and shown around the new terminal site which, when completed, will aim to cater for increases in international traffic predicted in the country up to 2035. The site is also required to bring INIA’s operations in line with international aviation standards.
With contractors already having begun work on the new structure as of last month, the government has stressed that it will not seek to interfere or “disturb” the project that officially commenced back in November 2010 under the administration of former President Mohamed Nasheed. This government commitment was made despite raising concerns over what it claimed are minor issues relating to business regulations on the site.
However, President’s Office Spokesperson Abbas Adil Riza said the long-term prospects of the construction ultimately depended on GMR validating the legality of their contract – a document that was overseen by the International Finance Corporation (IFC). The IFC is a member of the World Bank group and the largest global institution focused on private sector in developing countries.
Abbas added that should parliament also decide on nationalising the airport in line with the wishes of certain pro-government parties to take back the project from GMR, then the present administration would have to comply with such a decision.
The government of President Dr Mohamed Waheed Hassan comprises a coalition of former opposition parties that represent the majority of elected representatives. The now-opposition Maldivian Democratic Party (MDP) presently has 29 MPs in the Majlis, the largest number of MPs belonging to a single party.
Nationalisation calls
Several pro-government parties – including the Dhivehi Rayithunge Party (DRP), Dhivehi Qaumee Party (DQP), People’s Alliance (PA) and Jumhoree Party (JP) – advised President Waheed last month that they continued to endorse an agreement signed in June 2010 calling for the airport to be taken back from GMR and nationalised.
The agreement endorsed six main points which included taking legal action to prevent the government’s decision to award the contract to GMR.
GMR’s contract is currently under scrutiny by a committee appointed by President Waheed, which includes the Attorney General, the Finance Minister and the CEO of Maldives Airports Company Ltd (MACL). The president has previously pledged during a visit to India that he would protect investment from the country in the Maldives.
A delegation from the IFC, which brokered the deal between GMR and the government of Maldives, recently addressed the government’s concerns over the concession agreement in a meeting with senior government officials.
Coalition concerns
When asked whether he believed GMR’s pledge to present the Maldives with a entirely new airport structure by July 1 2014 – in line with a 25 year concession agreement to develop and manage the site – would be met, Abbas claimed that concerns raised by several former opposition parties would need to be addressed.
“The point to note is that during the agreement’s signing, several unlawful points were raised by [former opposition] parties over why the government could not enter the agreement with GMR,” he claimed. “Under the law of the contract [GMR] did not perform sufficient due diligence and they must validate the legality of the contract. If any court of law rules the contract is illegal, the law must be upheld.”
The claims were made after local media reported that GMR had begun construction last month without a Civil Aviation Authority permit needed for work to begin. GMR responding in newspaper Haveeru said that the terminal construction had been approved in an existing master-plan agreed with the government.
Clarifying the report, Abbas claimed that the permit was “not a huge issue” and was believed to have resulted from an error by contractors presently working on the airport’s construction.
Under the law, he stressed that companies were required to undertake an Environmental Impact assessment (EIA) – which had been completed by GMR – as well as meet all other local business regulations.
Abbas claimed that the permit was an issue likely to have resulted due to a contractor error and could be addressed within the space of a week without major delays.
“Normal procedure would be for the cessation of work on the airport while the permit was awaiting approval. This takes about a week. I don’t see any reason for delays,” he said.
Aside from the permit issue, the government also alleged that it wished to resolve an issue over a duty-free law that outlawed duty-free shops at arrival terminals. With alcohol outlawed for consumption or purchase outside of licensed resort properties under Maldivian law, duty free stores within the airport’s arrival area was raised as a legal issue.
“These issues can easily be resolved, we are not looking to disturb the GMR deal,” he claimed. “Larger corporations need good governance, if one company does not meet its obligations everyone else may start looking for loopholes.”
Disturbance
Abbas said the most pressing issue concerning the INIA construction agreement remained the US$25 Airport Development Charge (ADC) outlined by GMR within its original agreement – a practice the infrastructure group contends is commonly used by airport developers around the world to aid the costs of large-scale renovation projects.
“The law does not allow for deduction of the ADC without parliamentary approval,” Abbas said.
The country’s Civil Court had blocked GMR charging the ADC last year on the grounds that it was a tax not approved by parliament. As the ADC was stipulated in the contract, former President Mohamed Nasheed’s administration had signed with the airport operator, the government at the time agreed that GMR would deduct the charges from the concession fees due the government, pending appeal.
With the present government having contested these deductions, GMR released a statement back in May proposing a compromise agreement whereby Maldivian nationals would be excluded paying the ADC when departing the airport.
While seeking to maintain an open dialogue with the government, GMR said Saturday that there had been no reply so far in regards to the options it had offered the government in order to find a resolution to the ADC matter.
Business politics
Despite the ongoing issues with the ADC, the infrastructure group said it did not pay too much attention to politics in the country, claiming it instead remained focused on the development of INIA.
“We don’t do politics well at all,” said INIA CEO Andrew Harrison, when questioned by local media about the impact politics was potentially having on the construction.
Speaking during a tour of the new airport structure yesterday, Harrison added that the airport construction was on track at present, and already providing improved returns to the state when compared to earnings before the agreement came into place.
He added that although there was no set deadline in order to reach consensus with the government over the resolution of the ADC charge, long-term delays could have “time and cost implications for the project”.
“Additional improvements”
Aside from contractual obligations to improve tourist processing capacity in the existing terminal, Harrison said that GMR was committed to a number of additional improvements not specified in the original concession agreement.
These improvements include an entirely new outdoor food court for the present terminal including Thai Express, Burger King and Coffee Corner restaurants that would be open to the general public as well as visitors.
He also pointed to other high-profile developments such as the refurbishment of the airport’s domestic terminal and toilets, a new executive lounge and behind the scenes modifications to boost capacity at the site as a reflection of the company’s claims it is going beyond its contractual obligations.
The new terminal meanwhile has been devised to include new shopping complexes, increased seaplane capacity via two new water runways and a considerably larger structure built above an large artificial lagoon.
The construction, comprising of a 70 percent glass structure, has been designed architecturally to play up the appeal of the Maldives’ oceans, whilst being four times the size of the terminal presently used to accommodate airline passengers.
Emergency runway
Addressing concerns raised in local media about the development of the existing runway, Harrison said that GMR had sent proposals to the government for possible construction of an emergency runway.
He stressed the the construction, which would require additional funding support either directly through the government or through the concession agreement, could be used only in case of emergencies should the main airport runway be out of action owing to an accident or emergency.
Harrison claimed that if approved by government, the emergency runway, which would not be ready by the opening of the terminal on July 1, 2014, would not be in full compliance to International Civil Aviation Organisation (ICAO) regulations, due to its distance to grounded aircraft.
With the new terminal in place, aircraft would be grounded 212 metres away from the proposed emergency runway, meaning it would not meet recommended international regulations. However, GMR claimed this distance would still be preferable in terms of regulatory requirements to the current space available between INIA’s runway and aircraft parking area.
Beyond the new terminal aiming to meet full ICAO compliance by the time it is open to tourists, the passenger terminal is also expected to meet LEED Silver Certification environmental standards.
The contruction will also include a new VIP terminal to deal with diplomats, heads of state and other high-profile guests, along with a brand new cargo terminal and a Airport Fire and Rescue Building to deal with any potential on-site emergencies.
GMR said that the terminal had been designed by Singapore-based architect Winston Choo, who had devised a structure making the most of natural ocean surroundings while also playing up garden areas and a lagoon equivalent to two football pitches in size.
As part of the terminals proposed aesthetic, distressed wood, granite and coral like materials designed to emulate the feel of high-end resort properties around the country are expected to be used, the company added.
A virtual walk through of the proposed terminal design can be viewed here.
Discussing the ongoing political backlash against the awarding of the contract to GMR back in 2010 on nationalistic grounds, Harrison contended that INIA would remain a Maldivian owned enterprise that would be continuously developed by the company for the duraction of the tender.
“We are just the caretakers here,” he said. “The airport remains and has always been owned by Maldivians.”
Harrison contended that to ensure profitability for its investment in the airport, GMR was itself committed to strengthening the wider Maldivian economy by working with local businesses, industry and contractors.
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.
Chairman of the Maldivian Democratic Party (MDP) Moosa ‘Reeko’ Manik last night claimed that the police were firmly under the control of the Dhivehi Rayithuge Party (DRP) leader Ahmed Thasmeen Ali, reports Haveeru.
Speaking at Usfasgandu, Moosa alleged that both the Defence Minister Mohamed Nazim and the Commissioner of Police Abdulla Riyaz are members of the DRP.
“I am warning Thasmeen, even if it’s the [MDP] party’s chairperson, former chairperson or even a member of the party, we will start viewing DRP in another light if they are dragged to the Police station every second day for no apparent reason,” Moosa is reported to have said.
The speech followed the police’s questioning of MDP MP Mariya Didi on Tuesday relating to event which occurred after the police raided the MDP protest camp at Usfasgandu on May 29.
“We have the courage to stand up to all the political parties,” he said.
Conversely, Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed announced on Tuesday that the DRP was trying to undermine confidence in the police and the military
Lat night, Moosa also claimed that both India and Sri Lanka were looking into the circumstances surrounding the resignation of former President Mohamed Nasheed who last week received the backing of more than 65 percent of his party’s members to become their presidential candidate in the next election.
The Anti-Corruption Commission (ACC) has issued a statement in support of the government’s bid to obtain concession fees lost due to the legal debacle surrounding the levying of an airport development charge (ADC) by airport developer GMR.
A Civil Court case filed by the then opposition Dhivehi Qaumee Party (DQP) late last year ruled against the charging of an ADC, as stipulated in GMR’s contract with the government-owned Maldives Airports Company Limited (MACL).
The court decision compelled the then-ruling Maldivian Democratic Party (MDP) to deduct the ADC charges from the concession fees due the government, which was pending appeal prior to the change of government under controversial circumstances on February 7.
The Transport Ministry has maintained that the former government’s decision to deduct the fee was illegitimate, initially claiming the authorisation letter was invalid as the new government had reappointed the MACL board, and insisted GMR pay the concession fees due. GMR has maintained that the ADC is chargeable under the terms of its concession agreement, and offered to exempt Maldivian nationals from paying the fee.
In its statement last week, the ACC claimed that according to article 9 of the Public Finance Act, the Finance Minister was not authorised to forgo revenue to the state without submitting the figures to the President under guidelines set by the Auditor General.
The ACC statement alleged that former MACL Chairman ‘Bandhu’ Ibrahim Saleem agreed to deduct the ADC and insurance surcharge without approval from the company’s board. As all three stakeholders had not signed the changes to the agreement, it could not be considered legally binding, the ACC claimed.
The ACC contended that the clauses in the concession agreement (18.2 and 18.3) that allow changes to the contract under certain political circumstances could not be activated as the Civil Court ruling was not a political decision, despite the case being filed by a political party.
That case was filed by DQP in a long-standing campaign against Nasheed’s government awarding the airport redevelopment to GMR. DQP leader Dr Hassan Saeed is now President Mohamed Waheed Hassan’s special advisor, while DQP Vice-President Dr Mohamed Jameel is the new Home Minister.
A 24-page book released by the DQP while it was in opposition presents the government’s lease of Ibrahim Nasir International Airport (INIA) to developer GMR as a threat to local industry that will “enslave the nation and its economy”.
Former President’s Office Press Secretary Mohamed Zuhair at the time of the pamphlet’s publication said that he felt the title’s wording was “very strong”, and drew a faulty comparison between international cooperation for mutual benefit and foreign occupation of a people and market for selfish purposes.
“The purpose of all this is to make Maldivians mistakenly feel like they are under occupation and the country is being sold out,” claimed Zuhair at the time.
Progressive Party of Maldives (PPM) MP Ilham Ahmed has told local media that there has been no “consideration” to remove a bill from parliament to renounce the Maldives’ membership in the Commonwealth.
Ilham was reported in Haveeru yesterday as claiming that a parliamentary motion to leave the Commonwealth would not be retracted without first holding discussions with President Dr Mohamed Waheed Hassan, the PPM and the Dhivehi Qaumee Party (DQP).
The bill was forwarded by Ilham and Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed last month over allegations that the intergovernmental association was working to “protect the interests” of one party in the country without understanding the “reality” of February’s controversial transfer of power.
The Commonwealth Ministerial Action Group (GMAG) has increased pressure over the last few months on the Maldives government to revise the composition and mandate of an independent commission established to ascertain the nature and legitimacy of how President Waheed came to power on February 7.
During a visit to India this week President Waheed said he would not back proposals to withdraw from the Commonwealth, despite expressing disappointment with CMAG’s statements regarding the transfer of power.
Dr Waheed told media that he believed any bill to renounce membership in the intergovernmental organisation would be dismissed as soon as the Majlis returned from recess.
The bill to leave the Commonwealth has also been criticised by the leader of the government-aligned Dhivehi Rayyithunge Party (DRP), Ahmed Thasmeen Ali .
The Transport Ministry has said the government is “fully behind” an order given by the Maldives Airports Company Limited (MACL) to India-based infrastructure giant GMR, that it pay the sum of US$8.2 million deducted from concession fees for the first quarter of 2012.
GMR took over the management of Ibrahim Nasir International Airport (INIA) – then called Male’ International Airport – from the government-owned Maldives Airports Company Limited (MACL) in September 2010.
Speaking to Minivan News today, Minister of Transport Dr Ahmed Shamheed said the government fully backed an MACL order for GMR to return the US$8.2 million it deducted from concession fees for the quarter.
According to a statement released by the MACL earlier this month, the company said it had only received US$525,355 out of an expected US$8.7 million in concession fees for the first quarter of 2012, after GMR deducted the Airport Development Charge (ADC) and insurance surcharge.
The ADC was intended to be a US$25 fee charged to outgoing passengers from January this year, as stipulated in the contract signed with GMR in 2010. The anticipated US$25 million the charge would raise was to go towards the cost of renovating INIA’s infrastructure.
The deductions were made after the Civil Court blocked the India-based company charging an Airport Development Charge (ADC) last year, on the grounds that it was a tax not approved by parliament. As the ADC was stipulated in the contract former President Mohamed Nasheed’s administration had signed with the airport operator, the government at the time agreed that GMR would deduct the charges from the concession fees due the government, pending appeal.
The Civil Court case had been filed against the airport by the former opposition Dhivehi Qaumee Party (DQP) – now part of President Mohamed Waheed Hassan’s coalition government.
Parliament’s Finance Committee has meanwhile revealed that the Maldives is facing a skyrocketing budget deficit of 27 percent for 2012, and a parallel 24 percent increase in expenditure.
Last week, GMR released a statement proposing a compromise to the government whereby Maldivian nationals would be excluded paying the ADC when departing the airport.
MACL stance
MACL Managing Director Mohamed Ibrahim told local media today that MACL’s agreement with GMR under the previous government to deduct the ADC payment was “null and void”. Ibrahim told reporters that the deal was no longer relevant as it had been agreed by a former MACL chairman, and that charges could therefore no longer be deducted from GMR’s concession payment.
“We had informed that the letter from the former Chairman of MACL was now invalid and hence must not be followed. In addition we had also informed that no deductions can be made from the concession fee,” he told local newspaper Haveeru.
Ibrahim was not responding at time of press.
The MACL order was announced the same day that President Mohamed Waheed reportedly assured Indian Prime Minister Manmohan Singh that the government would uphold its commitments to foreign investors.
“It is only recently that the Maldives began working with large foreign corporations, and hence the Maldives has not much experience in dealing with large companies. That’s why we are currently trying to iron out some of these issues through mutual dialogue,” President Waheed said.
Transport Minister Dr Shamheed however told Minivan News that the President’s pledge would not affect MACL’s decision to order GMR to pay the deducted US$8.2 million.
“As per the concessions agreement, a fee has to be paid to MACL. That is my understanding,” he said.
President’s Office Spokesperson Abbas Adil Riza has given assurances that the government coalition of President Dr Mohamed Waheed Hassan remained strong, despite a differing of opinions between pro-government parties regarding the bill proposing the Maldives’ withdrawal from the Commonwealth.
“The coalition is strong, there are no issues with that. It shows that even on issues on which we disagree, we can work together. That’s what being in a coalition is all about,” said Abbas.
“Nasheed’s coalition split within 21 days – we are already passed this date. There are no long term issues,” he added.
A bill to withdraw the Maldives from the Commonwealth was submitted to the Majlis on April 29 and has been labelled in the local media as “not responsible” by the leader of coalition member Dhivehi Rayyithunge Party (DRP), Ahmed Thasmeen Ali.
Speaking with local newspaper Haveeru, Thasmeen criticised the decision not to consult with other parties within the coalition. The bill was submitted by Progressive Party of the Maldives (PPM) MP Ahmed Ilham and Dhivehi Qaumee Party, also a part of the coalition, (DQP) MP Riyaz Rasheed.
Deputy leader of the DRP, Ibrahim Shareef, today said that the party was in general support of the government: “But we cannot give in where the party’s core values are at stake.”
“We will try to run the ministries allocated to us and will support the government on matters we agree upon. On matters we disagree we will vote against,” he said.
When asked about the core values that divide the PPM from the DRP, Shareef said that he was unsure of the specific values of the PPM.
He said that the core values of the DRP were an open economic policy, private enterprise, equality and justice, democracy and the protection of law for everyone equally.
Leader of the DQP and Special Advisor to President Waheed, Dr Hassan Saeed, wrote an opinion piece for Haveeru on April 26 entitled: “Voters need to know what the party stands for”.
In the article he wrote: “We need political parties with clear political platforms. But before this we need to understand where those policies come from. What are the values that underpin them?”
He argued that clearer differentiation between parties would enable voters to make informed choices. Otherwise, Dr Saeed argued that voters fall back on reasons such as personality politics.
He argued that this was “the most dangerous because it can lead to a crude populism where big personalities attempt to outbid each other with unkeepable promises.”
The PPM, headed by the former President of thirty years Maumoon Gayoom, was formed in October 2011 following acrimonious divisions within the DRP. Gayoom had previously announced his retirement from politics but has become increasingly active in 2012.
The decision to forward the bill followed comments by Gayoom criticising the recent Commonwealth Ministerial Action Group (CMAG) statement. The statement criticised the government’s apparent failure to establish an impartial body to investigate the events that led to Nasheed’s resignation. It also repeated prior calls for fresh elections to end conjecture over the legitimacy of the current government.
Days before the submission of the withdrawal bill to parliament, Gayoom was reported as having questioned the necessity of the Maldives’ Commonwealth membership.
Gayoom became the Maldives’ third President in 1978 and the country joined the Commonwealth in 1982.
Gayoom was reported by Haveeru, however, to have argued that the nature of the body had changed since that time, resulting in a situation that no longer benefitted smaller nations.
“The actions of the Commonwealth have changed since then, to a point where we now have to have a rethink about the whole situation. That’s how much the world has changed now,” he claimed.
Gayoom’s said his comments were also based on the fact that the country had never itself been a former colony unlike neighbours such as India and Sri Lanka.
Earlier in the month, on the eve of the CMAG meeting, Gayoom warned PPM supporters that the country must be wary of foreign attempts to “intervene in our internal affairs”.
A PPM MP spoke to Minivan News following the announcement of the bill, saying: “From my view it is not something that has been discussed within the PPM yet,” the MP said yesterday.
“I have previously expressed my concern that [leaving the Commonwealth] is not the best way to solve this issue. It is not really a choice we can take,” said the MP who wish to remain unnamed.
The DRP’s Ibrahim Shareef said that DRP’s united stance was, “Categorically, we would not support a withdrawal from the Commonwealth.”
Minister of Transport and Communication, Dr Ahmed Shamheed, has criticised GMR’s plan to develop Ibrahim Nasir International Airport (INIA), arguing that it does not provide needed redevelopment of the runway.
Shamheed said there had been a temporary closure of the airport last week as a large crack on the runway was repaired.
“The development of the runway is not part of the agreement made with GMR. And the way the airport development plan is going, there is no possibility of constructing a new runway. A beautiful design can be made, but we have to consider its sustainability,” the Minister told Sun Online.
When asked to comment, Shamheed told Minivan News that he could not say anything more specific on his department’s next move regarding the repair issues.
“But we are conducting a study into the matter. Once we establish all the facts, we will brief,” said Shamheed.
“We are trying to find out how they are going to address the issue with the runway. There is no quick fix,” he claimed.
At over US$400 million the project is the largest single foreign investment ever made in the Maldives. The plan involves an upgrade the current terminal before the construction of a new terminal on the opposite side of the island of Hulhule, which the developer has pledged to complete in 2014. Ground was broken on the site for the new terminal in December last year.
The new transport minister alleged the runway was in poor condition and in need of critical repairs. An incident in 2010 saw experts from Boeing brought in to advise on such repairs after one of its aircraft sustained damage as a result of water retention on the runway.
Managing Director of the Maldives Airports Company Limited (MACL) Mohamed Ibrahim, previously responsible for the maintenance of the site, two years ago claimed that the runway had to be re-tarred every 15 years, having last been repaired in the early 1990s.
“Devious Indians”
The political opposition under Nasheed’s government, particularly the Dhivehi Qaumee Party (DQP), were persistently critical of the airport development, with allegations ranging from corruption in the bidding process to claims that the deal would allow the airport to refuel Israeli bombers enroute to bombing Arab countries.
Then leader of the People’s Alliance (PA) and brother of former President Gayoom, Abdulla Yameen, previously described the deal as “economic enslavement.”
Similarly, the Dhivehi Quamee Party (DQP) released a booklet in Dhivehi in December 2011 titled “Giving the airport to GMR: The beginning of slavery”, warning against “devious Indians”.
In the 24 page document (download in English/Dhivehi) the DQP claimed that the agreement did not include any requirement to develop a runway and would allow the GMR group to “colonise” large portions of the economy.
“Indian people are especially devious people”, the DQP booklet claimed. “There is no guarantee at all that GMR will invest the proposed amount. There is nothing the government can do but accept what they say and the documents they provide. This is how all the companies in partnership with the government are run.”
An unattributed letter on the party’s website published at the same time as the pamphlet claimed that the Indian government, in its backing GMR’s investment, “has a choice to make.”
“Does it want its backyard to be peaceful, prosperous, and free from corruption, nationalism, and religious problems? Does it want its backyard to be a place where wealthy Indians can spend their holiday and where its investors are respected and welcomed and not hated? Or does it want to be seen as a backer and sponsor of a corrupt and despotic regime, divorced from public sentiments, as was the case of the United States in the Middle East?”
Spokesperson for former President Nasheed, Mohamed Zuhair, claimed at the time of the contract signing in 2010 that the deal with GMR to upgrade and manage the airport had clashed with the vested interests of several tycoons, including Yameen and Gasim, drawing it into the political arena.
“Gasim was concerned the new airport might take the charter flights he had intended would be landing at the new airport he is building in Maamagilli,” Zuhair alleged at the time, “while Yameen is a third party supplier of fuel at Male International Airport through the Maldives National Oil Company, which has representation in Singapore.”
“These MPs are two individuals of high net worth – tycoons with vested interests,” he explained. “In pursuing their business interests they became enormously rich during the previous regime, and now they are trying to use their ill-gotten gains to bribe members in the Majlis and judiciary to keep themselves in power and above the fray.”
“Politically neutral”
The airport’s CEO Andrew Harrison in 2011 stated in an interview with Minivan News that he was “extremely confident of standing up to any scrutiny because of the way the bid was scrutinised by the World Bank’s International Finance Corporation (IFC)”.
Harrison today declined to comment on Shamheed’s recent statement. In a previous interview, he maintained that GMR had “always been politically neutral in that our remit is solely about developing and operating the airport.”
“We respect whichever party holds the seat of government in the Maldives. The government change is a change we respect and we remain politically neutral. We’ve got a concession agreement and we are sure that any government in power will respect that agreement. We’ve not heard anything that would make us believe otherwise,” Harrison told Minivan News at a press conference in February.
The criticism culminated in a successful court case filed by the DQP against GMR’s levying of an airport development charge (ADC), a source of revenue for the company outlined in the original contract. The court decision left the Nasheed government with the obligation to pay the difference.
Several days after assuming the presidency, Dr Waheed vowed the government would not approach the deal “from a political perspective”, adding, “It is not our intention to harm GMR. Our objective will be to resolve concerns of the public [regarding the company].”
Foreign investors should not be concerned about the political upheaval affecting their interests in the Maldives, said Dr Waheed, but hinted that some investments may come under scrutiny.
“We will not target anybody for political reasons,” he said. “If there are any reasons for concern over investment, of course any steps that need to be taken will be taken.”
Since the recent transition of presidential power, many of the former government’s policies have come under scrutiny. The Ministry of Economic Development announced that all future Public Private Partnership (PPP) schemes would be put on hold, adding to fears that the political turmoil currently engulfing the country would be detrimental to foreign investment.
Former Climate Change Advisor to Nasheed Mark Lynas recently expressed his concern over this issue: “Donors will turn away because of the political instability, and investors likewise.”
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