Tag: DQP

GMR could colonise economy: DQP

A 24-page book released by Dhivehi Quamee Party (DQP) 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”.

In the book, titled “Handing the airport to GMR: The beginning of slavery”, the DQP claim that the government has not only leased INIA operations to GMR, but  has allowed the company to open other businesses in the Maldives.

GMR Male’ Retail was recently registered at the Economic Ministry. It is the second GMR business registered in the Maldives.

Citing information available in the public domain, DQP alleges that all Hulhule island lagoon resources will become the property of GMR, including the Hulhule Island Hotel (HIH), in-flight catering services and the Maldivian Air Taxi service.

Because salaries paid to Maldivian employees are a burden, the book claims, GMR will bring in Indian employees and house them in Hulhumale, “creating a visa-free zone for Indians to come and go”, reads Haveeru’s translation.

DQP further alleges that the airport development budget covers the expense of building hotels, offices and apartments on Hulhule but claims that there is no official requirement for GMR to develop a runway – apparently a key benchmark of local benefits.

Meanwhile, GMR today held a ground-breaking ceremony at INIA today to celebrate the start of work on a new terminal.

When asked about the groundbreaking, DQP member Dr Mohamed Jameel commented that “any development is good as long as it benefits the people of the Maldives. But the main benefit would be a new runway, and we don’t see that GMR is contractually obligated to construct one. Our question is, who will do the runway?”

London Heathrow has two runways, and is the busiest airport in the world with over 65 million passengers annually. The new terminal in the Maldives will take the airport up to a capacity of five million.

Jameel said completed development projects are not contributing to national development.

Other claims in the book include that all foreign currency earned at the airport is being deposited abroad by GMR, leading to the current dollar shortage.

Jameel called the book “a responsible work in the sense that it highlights issues relating to overall economy. This issue is very close to the hearts of the Maldivian people since the work at the airport was originally done by the Maldivian people. And we don’t agree that the people have the best deal.”

Minivan News asked whether use of the word ‘slavery’ in the book’s title had a purpose.

“In modern times people don’t colonise by taking over other countries, they colonise through economic and business ventures. A small country like the Maldives is very vulnerable to its economic needs. We have a history of neighboring countries manipulating the Maldives through economy, and it has been difficult to break those ties,” said Jameel.

President’s Office Press Secretary Mohamed Zuhair said 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,” said Zuhair, who pointed out that the government “wouldn’t have gone out for an international bid [on the airport project] if there was a way to borrow money and do it internally.”

He explained that the airport now yields “a bulk” of the national revenue, in dollars: “If foreign visitors increase, income increases. It’s simple math.”

He added that the negative publicity could have a negative impact on relations with “a very friendly neighbor, India.”

Ultimately, Zuhair doubted that DQP’s book would deliver the desired outcome.

“Attempts to ferment nationalist sentiment against a profitable corporation are bound to fail because people are more aware of the issues. The income the government makes from the airport is already double what the previous government made.”

An informed source close to the former regime told Minivan News that the former government’s plans for airport development were not Male’ based, but instead re-routed growth and profits to Maamigili. The source suggested that individuals close to former president Maumoon Abdul Gayoom were then in a position to “benefit significantly” from the plan.

“The opposition does not like that the current government is keeping the business in Male’,” said the source.

DQP plans to distribute 20,000 copies of the book.

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Civil Court rules airport development charge invalid as GMR opens airline office complex

GMR today opened a new Airline Office Complex beneath the International Terminal in a step towards consolidating check-in and security procedures for passengers.

The Civil Court has meanwhile ruled against GMR in a case filed by the Dhivehi Qaumee Party (DQP), challenging its right to collect a US$25 (Rf385.5) Airport Development Charge (ADC) and US$2 (Rf30.8) Insurance Charge commencing January 2012. The DQP had claimed that a pre-existing Airport Service Charge (ASC) of US$18 (Rf277.56) invalidates the ADC. The legal dispute with DQP could cost GMR Infrastructure US$25 million annually, India’s The Economic Times estimated.

The Civil Court today ruled that the clause in the concession agreement with GMR violated the Airport Service Charges Act of 1978, which was amended in 2009 to raise the charge to US$18 for foreign passengers and US$12 for Maldivians above two years of age.

Judge Ali Rasheed Hussein ruled that the Airport Development Charge and insurance charge were service charges “under other names.”

He noted that the Airport Service Charges Act had been amended seven times to raise the charges since 1978 by the legislature, “based on the economic circumstances of the Maldives and the means of the public,” which showed that the purpose of the law was to ensure that enforcement agencies did not have the authority to raise the charges.

President Mohamed Nasheed’s Press Secretary Mohamed Zuhair said the government would likely appeal the lower court’s ruling given its contractual obligation to GMR.

“The government will do everything it can to adhere to the concession agreement,” he said.

GMR has not yet issued a formal response following the Civil Court ruling. However speaking today prior to the ruling, INIA CEO Andrew Harrison told Minivan News that GMR was “delighted to be subject to scrutiny, and will stand up to it.” He said the company was confident in its concession agreement with the government.

Harrison called the allegations and public criticism of GMR “unfair.”

“A lot has been done here,” he said, pointing to the number of renovations completed in the past six months. “I think you can see that locals and tourists are now getting the upgraded facilities befitting an airport like INIA.”

Harrison added that the next six months will see five new food and beverage facilities in international, domestic and land-side areas; a plaza for tourist arrivals; six new air service buses; and the beginning of a new terminal. “Many of these improvements go well beyond the concessionary agreement we have with the government,” said Harrison.

“It’s important to align the airport with passenger expectations, whether their destination is a resort or the warm welcome of a Maldivian home.”

At an event earlier today the company unveiled 30 new airline offices on the first floor next to Immigration.

“The old offices were small and since they were on the first floor rather than the ground floor, they were harder to access for passengers,” noted Harrison.

Airline personnel now have direct access to check-in counters from “some of the best offices in Male'”, situated along a bright white corridor.

The complex hosts four carriers with approximately five airlines per carrier; a few spaces have been left available for additional airline partners, such as Air France and AlItalia, which are expected to begin service to the Maldives in the next few months.

Harrison pointed out that the real reason for building a new complex was to centralise security check-points. Currently, security check points are located at gates one through three, and four through six. Passengers often face a queue, and are consequently more stressed about making their flights, Harrison explained.

“Now, that space is freed for all security check-point equipment to be located right next to Immigration, making passenger traffic smoother and allowing for more time in the airport terminal rather than in queues,” he said.

Harrison added that situating Immigration and Security offices in close proximity was a standard feature of international airports.

GMR is currently overseeing the renovation of INIA, as per a contract with the Maldivian government. In the past six months it has upgraded two lounges and expanded baggage beltways; it is currently adding eight check-in counters and two security lanes. Tourism Minister Maryam Zulfa previously expressed satisfaction with GMR as “an example for the Maldives as it moves forward.”

A groundbreaking ceremony for the new terminal will be held later this month – the structure is due for completion in 2014.

Maldives Airports Company Limited (MACL) today announced that the lease agreement between GMR and the government allows for a 10-year extension from the initial 25 year time frame, pending the agreement of both parties.

GMR began circulating the Airport Source Quality program survey in October to evaluate INIA’s ranking among 34 airports in the two to five million passenger category. The airport initially ranked 33rd, but Harrison said improvements are visible.

“In December alone it has already moved up three airports. By the time the new airport opens, we are convinced that INIA will be number one in the two to five million [passenger] category,” he said.

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GMR case ruling due next week

The Civil Court has addressed the case filed by Opposition Dhivehi Qaumee Party (DQP) Vice President Imad Solih against GMR and will deliver the results next week.

Solih claimed that the Airport Development Charge (ADC, US$25) and Insurance Charge (US$2) to be collected from international passengers at Ibrahim Nasir International Airport (INIA) is unconstitutional.

At yesterday’s hearing, Solih said that since the Insurance Charge is considered a tax the ADC should be treated as such, reports Haveeru.

The government has claimed that the ADC is not a tax.

State attorney Aishath Shyza said the ADC did not qualify as a tax because it was not a compulsory contribution by the people to the government.

ADC is to be collected by GMR and put towards the current airport development project.

GMR plans to begin collecting the charges from passengers on all international flights departing after midnight on 1 January 2012.

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DQP files case against GMR, MPs critique scheme

Dhivehi Qaumee Party (DQP) today submitted a case to the Civil Court against infrastructure development company GMR Male International Airport Pvt Ltd, challenging its right to collect a US$25 (Rf385.5) Airport Development Charge (ADC) and US$2 (Rf30.8) Insurance Charge commencing January 2012.

The fees are to be charged to internationally-bound passengers only. As of 4:00pm on Tuesday the case had not yet been registered.

The government signed a 25-year contract with GMR on 28 June 2010. On 30 September 2010, four opposition parties filed a case against GMR at the Civil Court. The court registrar rejected the claim.

Under the contract the Maldivian government receives:

  • A sum of U$78 million as advance payment which is to be deducted from the profit due to Government.
  • 1% of the Gross Revenue in the first four years (2010-2014) and 10% of the Gross Revenue from the general business in the remaining years.
  • 15% of the Gross Fuel Sales in the first four years and 27% of the Gross Fuel Sales in the remaining years.
  • GMR is also to invest US$375 million over a period of 25 years.

The development fee is considered “standard procedure in most airports“, GMR officials earlier told Minivan News. GMR said it would have included the fee in the ticket price, but until International Air Transport Association (IATA) provided certain codes it would have to charge the fee separately.

DQP claims that GMR’s lease of Ibrahim Nasir International Airport (INIA) was unconstitutional, illegal, and bore trademarks of corruption. It additionally claims that GMR’s contract would not have been approved if passed through official procedures.

DQP Secretary General Abdulla Ameen confirmed the case and directed Minivan News to the party website for further details. The web page’s last registered update was 29 November 2010.

“Article 97 of the Constitution prohibits any form of taxation without legislation,” reads on section. “Levy on departure passengers have always been done through legislation, including amendments thereof. In fact the current levy of USD18 for foreigners and USD14 for locals was introduced by the present government through amendments to the relevant law.

“However, the right to levy a US$25 and a US$2 (a total of US$27) was given to GMR by the Government without the passage of any law.”

DQP further claims that the government bypassed Parliament on the decision to lease INIA, thereby making GMR’s claim that it can collect the development and insurance fees is “null and void.”

State Transport Minister Adil Saleem previously informed Minivan News that the development fee had been approved by the government as part of its contract with GMR.

Immigration and customs authorities are said to support the move.

DQP told Haveeru that GMR had failed to develop INIA as per its agreement with the government, but is trying to charge customers extra fees on the pretext of airport development.

Speaking in Parliament today, Kulhudhuffushi-South MP Mohamed Nasheed said GMR is receiving all funds from airport handling.

GMR recently announced that baggage handling would be transferred from a local company to one chosen by GMR.

Nasheed said the agreement between the government and GMR was not a fair deal, and that losses incurred exceeds income earned.

“I want to highlight the fact that the US$990 charged from a [Boeing] 777 aircraft that lands during the day has been increased to US$2,985 while the fee collected from the aircraft that lands during the night has been raised to US$3,885. This is a 60-80 percent increase in charges but no improvements have been brought to the services provided by the airport,” he said.

“And we cannot accept the US$1.6 million rent charged per month from a small land plot which measures 800 square feet. Questions arise whether GMR is developing the airport by taking money from us Maldivians or whether they are developing the airport on their funds?”

Hoarafushi MP Ahmed Rasheed said, “While we are exaggerating a minor difficulty a small number of people have to bear for the sake of our nation, we don’t have anyone to speak about the development and advantages the people will be able to obtain from the most number of people who use the airport.”

In the past four months GMR has opened two lounges at INIA and expanded baggage beltways; it is currently adding eight check-in counters and two security lanes. Tourism Minister Maryam Zulfa previously expressed satisfaction with GMR as “an example for the Maldives as it moves forward.”

DQP Vice President Imad Solih earlier submitted a separate though similar civil case arguing the illegitimacy of the charge and requesting the court take action against Finance Ministry.

The Civil Court is expected to soon deliver a verdict on the case.

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Opposition parties condemn “dangerous” MDP protest against judiciary

Opposition parties have strongly condemned a protest launched by the ruling Maldivian Democratic Party (MDP) against the judiciary and Supreme Court last week, warning of “dangerous” consequences for the nation.

At a press conference today, Dhivehi Rayyithunge Party (DRP) Deputy Leader Ibrahim ‘Mavota’ Shareef argued that with its campaign against the judiciary the ruling party was risking the Maldives becoming “a failed state.”

“We are starting to see in our country scenes similar to what we saw in countries like Rwanda and Uganda which became failed states, plunged into unrest and bloodshed,” he said.

If judges were accused of misconduct or corruption, said Shareef, complaints could be filed at the Judicial Service Commission (JSC), the oversight body for the judiciary.

“Trying to undermine the eminence and dignity of the whole judiciary cannot be seen as efforts to reform judges and put the courts back on the right track,” he contended.

The courts, police and Prosecutor General must take “legal action” against those who undermine the judiciary’s honour and prestige, Shareef said.

The DRP was “very concerned” with fears that the “whole system of justice in this country could fail,” he added.

Following the MDP’s national council approving a resolution to protest against the judiciary, DRP put out a joint press statement with its coalition partner Dhivehi Qaumee Party (DQP) condemning the planned protest as an attempt to “influence the judiciary, intimidate judges and bring the courts into disrepute.”

In response to the MDP protest, the newly-formed Progressive Party of Maldives (PPM) led by former President Maumoon Abdul Gayoom organised a demonstration at artificial beach Friday night to protest the MDP’s “intimidation of judges” and vowed to defend the judiciary.

The religiously conservative Adhaalath Party meanwhile issued a press statement yesterday characterising the MDP protest as “a dangerous warning from the MDP to Maldivian citizens who are against its ideology.”

Adhaalath claimed that the “true purpose” of the MDP’s campaign was to “nullify Islamic shariah, introduce common law to the country and bring foreign judges into the Maldivian judiciary.”

Adhaalath also accused the ruling party of using “bribery, undue influence and intimidation” to threaten separation of powers and “bring all the powers of the state into the President’s fist.”

Echoing a criticism made by other opposition parties, Adhaalath criticised police for failing to protect the former President’s residence. “This shows that the police as an institution is shackled by political influences,” the party said.

“Seven idiots”

In its statement, the Adhaalath Party called on the Supreme Court to take action against the President’s advisor Ibrahim ‘Ibra’ Ismail for saying at an MDP rally Friday night that the judiciary should be freed from “seven idiots” on the apex court.

Ibra recently filed a defamation case against the Supreme Court after it reprimanded him for calling on the public to “rise up and sort out the judges”.

In response to Ibra’s calls, the Supreme Court and the JSC demanded authorities investigate the former Male’ MP and chairman of the Special Majlis’ constitution drafting committee, claiming that “making such statements in a free, democratic society under lawful governance goes against the principles of civilisation.”

The Supreme Court subsequently issued a writ of prohibition and took over the case against it from the Civil Court, as a result of which, said Ibra, “I now have to go before the Supreme Court and say to them, ‘You have defamed me, now please decide in my favour.'”

Speaking at MDP Haruge on Friday night, Presidential Commission Spokesperson Abdulla Haseen noted that judges were not independent under the former government and had to follow instructions from the President or the Justice Minister on how to issue verdicts.

A majority of judges on the bench today were appointed by the former President and lacked educational qualifications to enforce the new constitution, he argued.

Haseen said the Presidential Commission was reluctant to send cases for prosecution as a number of cases against opposition MPs remained stalled at the Criminal Court for over two years.

MDP MP Mohamed Nazim said the party was powerless to prevent the contentious reappointment of judges without a parliamentary majority.

In August 2010, the JSC reappointed 160 of the judges appointed by the former government, despite a quarter of the bench possessing criminal records and many others with only primary school level education.

The Supreme Court meanwhile sent the President a letter claiming it had ruled itself tenure for life.

“The only thing we were able to do was [include a provision in the Judges Act] stating that lower court judges must obtain a diploma in seven years,” Nazim said.

Nazim accused the courts of partisan behaviour when it summoned Independent MP Ismail Abdul Hameed to court 45 minutes before a crucial vote on the Goods and Services Tax (GST) legislation. Hameed was found guilty of abuse of authority in his position as former director at the Male’ municipality and sentenced to one year’s banishment.

In his remarks, former Attorney General Dr Ahmed Ali Sawad observed that political parties neglected the development and modernisation of the judiciary during the reform movement that led to the adoption of a liberal constitution and multi-party democracy.

Criticism and civic action was necessary because of the current state of the judiciary and lack of public confidence in the institution, Sawad said, adding that criminalising persons who criticise the judiciary was contrary to “principles of democracy.”

The public should be able to criticise and comment upon court verdicts, individual judges and perceived failings of the judiciary, he insisted.

In May this year, the JSC abolished its Complaints Committee citing “efficiency”, with complaints against judges subsequently forwarded for review by the legal section and Commission Chair Adam Mohamed, a Supreme Court Justice.

Last year the JSC received 143 complaints concerning the conduct of judges. By its own statistics none were tabled in the commission, and only five were ever replied to. Chair of the former complaints commission, Aishath Velezinee, was meanwhile stabbed in the street in January this year.

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DQP MP Riyaz Rasheed attacked, party alleges

The Dhivehi Qaumee Party (DQP) has alleged that DQP MP Riyaz Rasheed was attacked last night while he was on his way home after attending a meeting.

A crowd gathered around Riyaz’s car demanding he get out of it, and assaulted him when he did so, Haveeru reported.

DQP today issued a press release saying it “was possible” that Maldivian Democratic Party (MDP) Chairperson and MP ‘Reeko’ Moosa Manik “was behind the attack”.

“The fact that the attack came a few days after former MDP Parliamentary group leader Moosa gave a warning to Riyaz, it is possible that the attack has some connection with the warning,” the DQP claimed.

DQP said that Riyaz Rasheed was the MP who had submitted “the most number of bills to the parliament,” an MP that had been “criticising the government publicly” and that there had been “many attempts made to silence his voice.”

“The government has repeatedly attempted to stop Riyaz from his work against corruption in this government, by trying to bribe him, threatening him and by torturing him,” the DQP alleged.

Meanwhile, MDP Chairperson and MP Moosa Manik said he believed that DQP Dr Hassan Saeed was behind the attack “if they are blaming it on me.”

“Dr Hassan Saeed and Riyaz have been disturbing me and my family for a long time,” Moosa said. “And because that does not satisfy them, they are now blaming me for this.”

Moosa said he had “never attacked anyone physically or mentally.”

“I call on the police to investigate and find out on what grounds they are making this accusations on me,” he said.

Police Sub-Inspector Ahmed Shiyam said the matter had been reported to police, who were investigating.

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Z-DRP, DQP condemn Thasmeen for meeting President Nasheed

The main opposition Dhivehi Rayyithunge Party’s (DRP) breakaway Z-faction along with coalition partner Dhivehi Qaumee Party (DQP) has condemned DRP Leader Ahmed Thasmeen Ali for meeting President Mohamed Nasheed Saturday night.

Speaking at a press conference the following day, DRP Deputy Leader Ilham Ahmed claimed that “because Thasmeen has millions of rufiya worth of loans owed to Bank of Maldives as well as other pressures,” the minority leader was “making deals with the government.”

“What we were saying is now becoming very clear to the public,” he said, referring to the Z-faction’s allegations of Thasmeen and Speaker Abdulla Shahid accepting US$1 million bribes from Indian infrastructure giant GMR.

DQP Secretary General Abdulla Ameen meanwhile told local media that the opposition leader meeting President Nasheed was “unacceptable” as it could be construed as an endorsement of the proposed economic reform agenda.

Ameen argued that discussions over the proposed reforms should have taken place much earlier.

“I don’t see any need for meeting the opposition leader after the reforms were planned and finalised and a ceremony held to announce [the reforms],” Ameen told Haveeru.

Thasmeen however told press outside the President’s Office after the meeting that he met the President to voice concerns about the economic reform bills currently before parliament, including planned expenditure growth for 2013 and the personal income tax.

Following the meeting, President Nasheed signaled the government’s willingness to address DRP concerns and incorporate changes in the relevant legislation before enactment into law.

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DQP MP submits resolution to cut fuel surcharge

The Dhivehi Qaumee Party (DQP) has submitted a resolution to parliament calling on the government to cut the fuel surcharge included in the electricity bill every month.

In the resolution, DQP MP Riyaz Rasheed claims that the fuel surcharge was “a type of tax unapproved by the parliament and taken from the citizens, despite the laws clearly stating that any tax could only be taken after parliament approves it.’’

“When President Mohamed Nasheed was campaigning for the presidential election, the pledge he made publicly was to lower the electricity tariff,” Riyaz Rasheed said in the resolution. “It could be believed that raising the electricity tariff from month to month is a deliberate attempt made by the government to make the citizens poor.”

In the resolution the MP says that electricity is one of the country’s basic needs and that due to the hike in electricity tariffs, “today citizens have to spend bulk of their wage on electricity.”

The resolution also says that the owners of medium-sized businesses were worried about the future of their businesses “because of the government’s decision to float the dollar exchange rate in to a band of Rf10.28 – Rf15.42 which has made the prices of goods increase.”

The MP also called on the government to cease withdrawing taxes from the citizens in the name of fees or charges “at a time when adults and children are forced to live in poverty.”

In May last year the main opposition Dhivehi Rayithunge Party (DRP) led protests outside State Electric Company (STELCO) complaining about increased electricity tariffs.

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Deputy Speaker Nazim appointed Opposition Parliamentary Group Leader

A new coalition of opposition MPs from the Peoples Alliance (PA), Dhivehi Rayyithunge Party (DRP)’s Z-Faction, Jumhoory Party (JP) and Dhivehi Qaumee Party (DQP) last night appointed the new group’s leader, deputy leaders, spokesperson and whips.

Deputy Speaker of Parliament and PA MP Ahmed Nazim was chosen as the leader of the Opposition Parliamentary Group.

DQP MP Riyaz Rasheed and Z-DRP MP Ilham Ahmed were appointed as deputy leaders of the parliamentary group while Z-DRP MP Ahmed Mahlouf was appointed spokesperson.

Z-DRP MP Hamdhoo Hameed was appointed as the “government watch” and PA MP Abdula Azeez Jamal Abu Bakur, Z-Faction MP Ali Arif, MP Ahmed Nihan, MP Abdul Muhsin, MP Mohamed Rafeeq and independent MP Ibrahim Riza were appointed as whips.

Deputy Leader of DRP Ahmed ‘Mavota’ Shareef meanwhile told Minivan News that the current political situation of the Maldives was very fluid.

“Today everyone needs power and to get that power one might do anything, be it out of the law or within the law,” Shareef said.

Shareef predicted that according to the way things were going, DRP MP Ahmed Thasmeen Ali “will not lose the position of minority leader in parliament.”

“We do not support the policy of the government, that is why DRP is here, and we will only support people that support the policy of DRP.”

Announcing the decision to create the new opposition parliamentary group, MP Mahlouf said Thasmeen was also welcome to join the opposition parliamentary group.

Thasmeen did not respond to Minivan News at time of press.

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