Tag: DRP

MDP PG Deputy Leader accuses Speaker of cancelling sittings without reason

Maldivian Democratic Party (MDP) Parliamentary Group Deputy Leader Ahmed Sameer has said that Parliament Speaker Abdulla Shahid has been cancelling parliament sessions without reasonable cause.

“There is no reason the parliament sitting should be cancelled and there is no issue within the MPs that should be solved diplomatically,” Sameer told MDP’s official website.

Sameer said that the opposition was cancelling the parliament sittings because the Foreign Minister had earlier said that former President Maumoon Abdul Gayoom will not be invited to the upcoming SAARC summit.

“And, the opposition MPs want to obstruct the speech by Indian Prime Minister,” he said, adding that the opposition’s main objective is to delay economic reform bills currently before parliament.

Sameer called on the Speaker to conduct parliament sittings according to law.

Progressive Party of Maldives (PPM) MPs have recently said that the parliament sittings will be unlawful if they proceed with Independent MP Abdul Hameed after the Criminal Court found him guilty of corruption and sentenced him to 18 months’ banishment.

However, Hameed appealed the case in the High Court where it is currently being tried.

PPM has said it will not allow parliament to proceed in his presence.

Opposition Dhivehi Rayyithunge Party (DRP) Parliamentary Group Deputy Leader Dr Abdulla Mausoom said he believes the parliament deadlock could be solved if the issue were sent to the Supreme Court for review.

“DRP MPs in the Independent Commission’s Committee support sending the issue to the Supreme Court for advice on whether the MP Abdul Hameed can sit in the parliament,’’ Mausoom said. “In DRP there are people who say that he can attend the parliament until he is done with the appeal process and others who do not see it that way.”

Mausoom called the stalemate a legal issue which is beyond the parliament’s jurisdiction.

“The complications in the appeal procedure should be clarified, no one made it an issue when Hameed stayed at home,” he said. “Parliament went smoothly when he stayed at home.”

Mausoom added that MDP MPs in the committee do not want to send the issue to the Supreme Court for advice.

Tomorrow’s sitting is scheduled to proceed as normal, according to parliament’s official website.

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PG asks police to provide details of protest response

The Prosecutor General’s (PG) office has asked the police to provide details of its response to the protest held by ruling Maldivian Democratic Party (MDP) outside the Supreme Court on Thursday, which later spread to the residence of the former President.

Prosecutor General Ahmed Muiz told Minivan he was unable to comment on the matter at this time.

However Police Sub-Inspector Ahmed Shiyam said this was the first time the PG had made such a request.

“They are requesting details of what happened,” Shiyam confirmed, but said the PG had not notified police of a potential course of action or what it was looking for.

Shiyam pointed out that demonstrations in certain areas, including courts and army gates, are prohibited by the Regulation on Assembly.

“Members of the Maldivian Democratic Party (MDP) and Dhivehi Rayithunge Party (DRP) have both gathered in these areas though, even though we have requested them not to. Some of them have gone to the army gates and the President’s gate as well, so occasionally we have to address the issue,” he said.

The police have been asked to provide the information before Wednesday this week.

On Thursday October 20 the MDP national council conducted an emergency meeting and approved a resolution to launch a protest against the judiciary, claiming judges were unduly influenced by the former President and his half-brother MP Abdulla Yameen.

The protesters gathered at the Supreme Court before marching towards the former President’s building Endherimaage, where violent clashes erupted between MDP activists and a few Gayoom supporters blocking the entrance to his residence.

Minivan News journalists at the scene also observed gravel, rocks, hot water and sharp metal raining down on protesters from the top floors or terrace of Endherimaage.

Several activists claimed they saw Gassan Maumoon, former President Gayoom’s son, throw stones and pour boiling hot water on the protesters. MDP activists meanwhile threw large stones at Endhirmaage and attempted to break down the door. Some windows of the house were smashed while a car parked outside was damaged.

A 17-year-old, identified as Hussein Hassan, was rushed to the Indira Gandhi Memorial Hospital (IGMH) with critical injuries after a block of wood apparently thrown from the building hit his head. IGMH later confirmed that the boy was conscious and his condition stable.

Police summoned Gassan Maumoon, son of the former President, for questioning on Saturday after a number of MDP members alleged they had seen him throw the block of wood from the balcony. Police subsequently arrested Gassan and took him to the prison island of Dhoonidhoo, and presented him at court this afternoon. The hearing is currently ongoing.

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Electronic voting depends on public awareness in Maldives

The Maldives has expressed support for electronic voting systems in India and Pakistan, and is taking steps to introduce Electronic Voting Machines (EVMs) to its own electoral process.

At an informal meeting of Electoral Commissioners from SAARC member countries in India, the Maldives joined Bhutan, Afghanistan, Nepal and Sri Lanka in praising India’s use of EVMs and indicated that “legal amendments would be thought of to see that EVMs were made popular to ensure free and fair polls in their countries,” Indian news outlet The Hindu reported yesterday.

Commissioners met to discuss Afghanistan’s voting procedures in light of waning financial and other aid from NATO allies.

Maldives Elections Commission President Fuad Thaufeeq said the commission, which is developing a proposal for Parliament regarding EVMs, has met with the Committee on Independent Commissions to discuss their implementation.

“So far, we have been getting information from many countries in Europe, South America and Asia which have used these. Regionally, India, Nepal, and Bhutan have used the machines and we are also getting advice from them. Hopefully the system will work, but some laws will have to be changed and the public must support the decision,” said Thaufeeq.

Prior to the 2008 Presidential election, India had offered to donate several hundred EVMs to the Maldives. “But it was the wrong time,” said Thaufeeq. “The machines India was using could not do print-outs. This year, they upgraded and added a verification process. I think it’s necessary for the Maldives to have a verification system,” he said.

Thaufeeq indicated that the commission may approach India’s High Commission to renew their offer of donations. Otherwise, he said machines will be chosen through a negotiation process with various companies, and bids may be solicited.

Electronic and internet voting systems have been used worldwide for decades, and have triggered much debate.

India first used electronic voting machines in 1982; in 2002, they became an election standard nation-wide. However, India’s 2009 elections were discredited when Omesh Saigal, an IIT alumnus and IAS officer publicly proved that the electronic voting system may have been rigged.

In 2006, the Netherlands’ General Intelligence and Security Service proved that electronic voting machines could be eavesdropped from up to 40 metres. EVMs were subsequently eliminated.

Since the 2000 presidential election, the United States has reported problems with electronic voting machines in a number of local and national elections. Mis-punched cards, security flaws, and touch screen malfunctions were some factors that have tipped votes over the past decade.

Internet voting was proposed for the Maldives’ Parliamentary elections as a means of cutting costs and confusion for Maldivians living abroad. Project Coordinator at NGO Transparency Maldives Aiman Rasheed said the motion was swiftly rejected by Parliament, and although Transparency has not been officially informed of the discussion, doubts that EVMs will be treated differently.

Observing that EVMs are acceptable under the right conditions, Rasheed explained that the advantages of using EVMs in the Maldives did not justify the disadvantages.

“In a large country with dense population centers, they can be useful,” he said. “But the Maldives is so small, and population areas are so widely spread out, with only 400 polling stations I don’t think that they would be a major improvement.”

Rasheed said the disadvantages of EVMs could have a significant political impact, and believed the public should be involved in the decision.

“I think Parliament and the Elections Commission should carefully consider the cost-benefit. Is the quick count worth the room that the new system with EVMs would leave for accusations of fraud or lack of transparency?” he said, noting that Maldivians tend to have a high “trust deficit”, and pointing out that Maldivian law does not allow for exit polls.

Building public trust is driving the dialogue over EVMs in the Maldives. Dhivehi Rayyithunge Party (DRP) Deputy Leader Ibrahim ‘Mavota’ Shareef  agreed with Rasheed’s assessment.

“There is a lot of suspicion about new innovations that people are not familiar with. If done correctly, and people are informed, then EVMs shouldn’t be a problem for democracy in the Maldives,” he said.

However, Shareef observed that “any electronic machine with passwords can be corrupted,” adding that corruption is a higher risk for small communities. He recommended the Elections Commission “prove it cannot be manipulated” by issuing public education programs through the media.

“There is no public participation in the Election Commission’s discussion right now. Many islanders are unaware of how these things work. Without building trust, there will always be suspicion,” he said.

Rasheed explained that the “trust deficit” was a symptom of a young democracy.

“The Maldives’ biggest issue is that it has only had three free elections, and those were very recent. The latest Parliamentary and Presidential elections did very well under the circumstances, but the local elections have definitely declined in terms of transparency.”

Rasheed said that during these elections, political parties and NGOs sent volunteers to observe the electoral process, promoting transparency. Although new legal framework was implemented a mere one-and-a-half months prior to the Presidential election, and three months prior to the Parliamentary elections, “they did quite well,” said Rasheed.

Local elections, which had 18 months to prepare, performed well administratively “but they did not do so well in terms of transparency,” said Rasheed.

MDP MP Eva Abdulla also believes that free, transparent elections must be routinised before electronic modifications are made to the electoral process.

“I’m not sure if we are willing to move away from the physical voting system. It’s only been three years since we began trusting independent voting procedures,” she said.

Abdulla believes that Maldivians are quick to absorb new technology, but doubts that the advantages of EVMs are relevant to the Maldives.

Previously, island geography meant that counting and recording votes could take several days. “Now, officials count the ballots in front of the people on the same day, and we have our results immediately,” said Abdullah.

The Elections Commission has a different impression of the situation.

According to Thaufeeq, the average five to six hours that manual voting procedures involve is too long, and the costs of employing workers to manage the polls is too high. He said that while the transparency of open counting is important, there are significant advantages to electronic voting.

“Responses from MPs and the general public has indicated that people are more ready today than they were three years back. People are more familiar with technology right now, an EVM is similar to an ATM, which everyone can use,” said Thaufeeq. “But above all, we want the approval of Parliament and the public, to be sure that everyone is aware and comfortable with the system.”

Public examinability of voting procedures has been identified as an essential factor of free elections by government and independent groups worldwide.

In 2007, California Secretary of State Debra Bowen commission a statewide “Top to Bottom review” of electronic voting systems. According the report, every mechanism contained at least one security flaw that would allow a single non-expert to compromise an entire election.

In 2009, the Federal Constitutional Court of Germany found that when using voting machines the “verification of the result must be possible by the citizen reliably and without any specialist knowledge of the subject.”

Although the Maldives’ plans for implementing EVMs are far from concrete, the sentiments behind the suggestion are strong.

“Historically, the Maldives has had close elections with little information, which has generated suspicion of fraud,” Rasheed said. “If people can’t see what is happening, it will feed the country’s rising trust deficit.”

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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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Government withdraws amendment to abolish Foreign Investment Act

The government today withdrew at the preliminary stage a bill to abolish the Foreign Investment Act of 1979, one of 18 pieces of legislation proposed under its economic reform package currently before parliament.

Presenting the draft legislation in August, MP Alhan Fahmy of the ruling Maldivian Democratic Party (MDP) said the purpose of the bill was to remove restrictions and open the country to unhindered investment by foreign companies.

Alhan announced today that the ruling party decided to pull out the bill in light of parliament rejecting the proposed company law last week.

“It is not that our thinking and economic policy has changed at all,” he said, adding that all components of the reform package was necessary to achieve the government’s objectives.

Foreign direct investments were to be regulated under the proposed company law, which would have replaced the existing Companies Act enacted in 1996.

In a booklet issued to the media by the Dhivehi Rayyithunge Party (DRP) outlining concerns with the economic reforms, the main opposition party opposed the abolition of the Foreign Investment Act on the grounds that it protected domestic industries and small businesses.

The party noted that the proposed company law did not contain protectionist measures or special benefits for local businesses.

“Instead of abolishing the foreign investment law, it would be better to amend and modernise it to pave the way for foreign investments in the country,” it reads.

Moreover, the DRP “could not agree to sell the country’s remaining assets to the MDP’s friends” after “[losing control of] the country’s main gate, the international airport, the national telecom service, and Maldivian seas and shallows.”

During the preliminary debate in August, Kelaa MP Dr Abdulla Mausoom, recently appointed DRP parliamentary group deputy leader, accused the government of trying to turn the Maldives into the “money-laundering machine of the world” by deregulating or removing restrictions to foreign investments.

Other opposition MPs claimed that the bill was part of an agenda to “sell off state assets” and undermine national interests and sovereignty.

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Parliament rejects proposed company law

Parliament yesterday rejected at the preliminary stage a bill proposed by the government to modernise the existing Companies Act as part of its 18-bill economic reform package.

The bill was narrowly rejected 37-36 in a vote to send the draft legislation to committee for further review.

Jumhooree Party (JP) Leader Gasim Ibrahim – who voted with the ruling Maldivian Democratic Party (MDP) in August to pass the Goods and Services Tax (GST) legislation, the first of the 18 economic reform bills to be passed – cast the swing vote against the proposed company law.

According to the government, the purpose of the bill was to modernise bureaucratic procedures for formation and registration of companies and facilitate ease of doing business.

Among the main changes proposed to the existing law were enabling formation of companies with a single shareholder or a single director (the law currently requires at least two); abolishing the annual companies fee; specifying procedures for seeking authorisation from government agencies along with registration procedures for foreign investment companies; enabling the registration of branches of foreign or multi-national companies in the Maldives; outlining criteria for company directors and managing directors; specifying procedures for public disclosure; streamlining the process for dissolving registered companies; and delegating the tasks of the companies registrar to local councils.

During the preliminary debate stage, opposition MPs however contended that as a Companies Act was enacted in 1996, the government could not propose a bill under the same name.

MP Abdulla Yameen, who served as Trade Minister and chairman of the State Trading Organisation (STO) under the previous government, objected to a provision stipulating that the minimum capital required to register a company would be Rf2,000.

With the country’s level of development and an annual budget in excess of Rf12 billion, said Yameen, the figure was too low especially if directors’ and shareholders’ liability would be limited.

“The bill also proposes the creation of companies for a particular project. For a particular period,” he continued. “Private companies or limited liability companies are not formed for certain periods. They exist for perpetuity […] Therefore you cannot create a company to reclaim land in Gulhifalhu or a company for a three-year project.”

Moreover, Yameen added, the proposed law would give legal discretion to the registrar of companies or an official appointed by the President to deny requests for company registration if it is believed to pose a threat to national security.

“However, under the existing laws in the Maldives, a court of law shall determine that national security is endangered,” he said. “It is not something a registrar, a single person, could decide.”

Granting such discretion to a single state official, including the power to dissolve companies if it is believed to be in the public interest, was “how things are done in uncivilised countries,” he said.

MP Mariya Ahmed Didi, former chairwoman of the Maldivian Democratic Party (MDP), meanwhile argued that the concept of limited liability was “the means that advanced nations used to reach modern development.”

“Because we are unfamiliar with this concept what happens is that people are reluctant to invest their money in a business,” she explained, adding that the law would ensure that shareholders would be liable to the company’s debt only to the extent of their shareholding.

“Nothing positive”

Speaking to Minivan News today, MP Dr Abdulla Mausoom, deputy parliamentary group leader of the opposition Dhivehi Rayyithunge Party (DRP), said that the bill was framed to “give extra powers to the executive” and “open up the country to foreign businesses.”

Mausoom noted that there was an existing law that governed company formation and registration.

The DRP also objected to the government’s proposed amendments to the Immigration Act to grant resident visas to skilled expatriates as well as a bill to abolish existing foreign investment laws, Mausoom said.

“We voted against [the proposed company law] because we didn’t see anything positive in the bill,” he said.

Economic Development Minister Mahmoud Razi told Minivan News that the proposed company law was important to “level the playing field” and streamline business registration procedures to “make them simpler and more cohesive.”

As parliament had rejected the bill at the preliminary stage, said Razi, the government could not submit the bill again during the ongoing session.

“But we will consult with the legal people and stakeholders to propose the bill as amendments to the existing Company Act for the next session,” he said.

While it would have been “ideal” to pass all the component bills of the reform package on schedule, Razi continued, yesterday’s vote did not constitute a serious setback to the reform programme.

“It will have an impact, yes, but it will not be a very negative impact,” he said.

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DRP to submit no-confidence motion against Finance Minister Inaz

Main opposition Dhivehi Rayyithunge Party (DRP) has decided to submit a no-confidence motion against Finance Minister Ahmed Inaz.

Speaking to Minivan News today, MP Dr Abdulla Mausoom,  deputy leader of the DRP parliamentary group, argued that the Finance Minister had been irresponsible in fulfilling his duties and constitutional mandate.

“Given that local governance is vital in democracy, the Finance Minister has not been issuing budget for the councils in a timely manner and the councils have had their work stalled because of that,” said Dr Mausoom, outlining the grounds for the no-confidence motion. “Secondly, while the media plays a vital role in democracy and while we are all in need of a state broadcaster, the Finance Minister has not issued the budget for the Maldives Broadcasting Corporation (MBC).”

Moreover, Mausoom continued, Finance Minister Inaz supported the current system of taxation and devaluing Maldivian currency.

“The fisheries subsidies have been withheld as well,” he added.

The DRP will be seeking support from other opposition parties to vote in favour of the motion, he said.

At a press conference held today to announce the decision, Mausoom contended that Inaz’s decision to allegedly withhold funds for certain budget items constituted “actions that are contrary to democracy.”

Finance Minister Inaz however told Minivan News today that the fuel subsidy for fishermen was added to the budget by parliament.

In December 2009, parliament added Rf800 million (US$62 million) to the 2010 state budget prepared by the government, including media subsidies, fuel subsidies for fishermen and the reversal of pay cuts of up to 15 percent for civil servants.

The additions were made at a time when the country was facing a crippling budget deficit and pressure from international financial institutions to reign in government spending.

“The parliament recommended the fisheries subsidy and the ministry was told to deduct the amount required for it from money allocated for other subsidies and did not tell from which subsidies we should take the money for fisheries subsidies,” Inaz explained. “All other subsidized services are also essential services, such as subsidies for student text books, it will end up in the same way if money was deducted from any of the services.”

Inaz observed that diesel was currently subsidised while the government has reduced 50 percent from the price of diesel, which he said was a subsidy mainly targeted for fisherman.

“And the MBC issue is currently in court and I do not have anything to do with matters ongoing at court,” he said.

On the new taxes, Inaz noted that all tax legislation must be approved by parliament and not levied unilaterally by the government.

Inaz insisted that he never claimed that the dollar shortage would be alleviated three months after the decision to float the exchange rate.

“The media has been spinning what I said,” he suggested. “What I said was that within three months we will see the real exchange rate for dollar within the band [of the managed float]. The ministry has no mandate to determine monetary policy, it is within the mandates of Maldives Monetary Authority (MMA). We only try to balance the expenditure and revenue.”

Inaz noted that the current administration had reduced an inherited fiscal deficit of 33 percent to a forecast of 12 percent this year.

“I have always worked for the benefit of the people as that is what I swore an oath to do and I will not change anything in light of this decision made by [the DRP] to forward a no-confidence motion,” he said.

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Fiscal deficit in 2011 expected to fall to single digit, says President

The government expects the fiscal deficit to have fallen to a single digit at the end of the year, below the previous forecast of 11 percent of GDP, President Mohamed Nasheed said in his weekly radio address on Friday.

“The budget deficit as a percentage of GDP or national productivity has been estimated for next year at [budget] meetings with ministers and heads of government offices,” he said. “From that estimate we know that government expenditure has been substantially reduced in a number of different areas. For this year, we forecast a budget deficit of 11 percent. We have noted now that it has been reduced by three or four points.”

The government hoped that the fiscal deficit would be below 10 or “a single digit figure” when it is calculated at the end of the year, he said.

The budget deficit, which stood at just 1.9 percent of the economy in 2004, expanded to 7.3 percent in 2006 and ballooned to 23.9 percent in 2007, according to the International Monetary Fund (IMF).

The fiscal deficit exploded on the back of a 400 percent increase in the government’s wage bill between 2004 and 2009, with tremendous growth between 2007 and 2009. On paper, the government increased average salaries from Rf3000 to Rf11,000 and boosted the size of the civil service from 24,000 to 32,000 people – 11 percent of the total population of the country – doubling government spending from 35 percent of GDP to 60 percent from 2004 to 2006.

While preliminary figures had pegged the 2010 fiscal deficit at 17.75 percent, “financing information points to a deficit of around 20-21 percent of GDP”, down from 29 percent in 2009, the IMF noted in March this year.

“We see bringing the fiscal deficit down as the key macroeconomic priority for the Maldives,” the IMF’s Mission Chief to the Maldives, Rodrigo Cubero, told Minivan News at the time. “A large fiscal deficit pushes up interest rates, thereby undermining private investment and growth, and also drives up imports, putting pressure on the exchange rate and inflation, all of which hurts the Maldivian people, particularly the poor.”

“Further efforts are still needed to reduce the fiscal deficit. Those efforts should comprise further tax reforms as well as measures to reduce expenditure and to improve the channelling of social expenditures to the needy.”

Meanwhile in a booklet issued to media titled “the DRP’s response to the government’s economic nuisance package,” the main opposition Dhivehi Rayyithunge Party (DRP) strongly objected to a bill on fiscal responsibility currently before parliament.

The bill was “a plot” devised to wrest financial control from local councils and negate parliament’s contentious amendments to the Public Finance Act, the DRP argued.

The DRP also noted that provisions on imposing limits to government spending would only come into force after 2013.

“In the past three years, the MDP [Maldivian Democratic Party] government earned billions of rufiya by selling off state assets, facilitating business opportunities for their friends and introducing new taxes,” the DRP said. “Nonetheless, while the health sector, the education and overall standard of living has gone from bad to worse, it is unclear how the government spent the billions and billions of rufiya it received.”

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MP allowance debacle “not a mix-up”: State Finance Minister

The Finance Ministry today rejected implications that yesterday’s release and recall of the controversial Rf20,000-a-month committee allowances against a court injunction was a mistake which had caused confusion in the government.

“I don’t think it’s a mix-up,” said State Minister of Finance Ahmed Assad today. Assad was unclear about the court injunction.

“Releasing that sort of money is not a big procedure, I think this is just people trying to follow the general rules and experiencing an administrative error,” he said.

Assad didn’t believe anyone deserved blame, and said that “if anything, it is the ministry at large that was at fault.”

Local daily Haveeru yesterday reported that the allowances had been issued “by mistake.”

Finance Minister Ahmed Inaz had not responded to Minivan inquiries at time of press.

The court injunction, which was issued on September 26, ordered the Finance Ministry not to release funds for the committee allowance until the court rules on a case filed on behalf of a civil servant, contending that the allowance could not be given before deducted amounts from civil servants salaries were paid back.

The injunction has since been appealed by the Attorney General’s Office at the High Court, which is due to hold a first hearing on Sunday.

Parliamentary privileges

Meanwhile parliament yesterday debated a motion without notice proposed by Vilufushi MP Riyaz Rasheed claiming that a civic action campaign launched by concerned citizens in late August violated MPs’ special privileges.

MDP MP Ahmed Easa told Minivan News yesterday that colleagues had said the allowance was being released to the parliament secretariat, but he was told that it had been held back by the Minister of Finance.

“I don’t think there was any wording, anything in what the court said indicating that they couldn’t release the money,” said Easa. “But no money has been going in to my account today, I can tell you that.”

Easa elaborated on the allowance, saying that the amount of staffing support and allowances other government branches received justified MPs accepting the proposed allowance.

“The MP point of view is that some of the independent wages and allowances are greater than MPs. The MPs are expected to do research and other duties, but we don’t have an office, a supporting staff, a phone allowance, a travel stipend to visit constituents or other things to support our work. Seven percent of our salary is taken out for a pension fund, and Male’ is an expensive place to live,” said Easa.

Easa said he will accept the allowance, but pointed out that he had always objected to it in parliament on the grounds that all payrolls should be streamlined.

“But if these other government groups are taking an allowance, why not the MPs? This is a democracy, so I always respect the majority decision.”

Lawyer Mohamed Shafaz Wajeeh, one of two lawyers involved in the civil case, argued that the number of people benefiting from the allowance does not justify the sum released, which amounts to Rf18 million (US$1.1 million).

“It’s greed. Just greed,” Shafaz said. “MPs and higher-ups in the government are probably more aware of their own power than they should be. The thinking behind this goes against everything we know.”

Shafaz suggested the government consider other options, such as releasing the allowance in installments to lighten the burden on the state budget and other subsidiaries.

“But I’m not sure how much political will there is to do this. Everyone says the allowance is a good idea.”

Civil society

Although members of the civil sector earlier issued a statement objecting to the allowance, which they called “a gross injustice to the Maldivian people,” they have not articulated an official position on the issue of late.

Maldives Democracy Network (MDN) Director Fathimath Ibrahim Didi said that individuals in the organization were involved at the beginning, but that they did not represent MDN.

“Now, I think there may be a group working against the allowance, but it is loosely formed involving people from NGOs, lawyers and individuals,” she said.

Transparency Director Ilham Mohamed told Minivan News that a volunteer team was addressing the matter, but that large protests had not been organized among local non-government organizations (NGOs).

“I believe there may be sporadic gatherings in different places,” said Mohamed. “I do know that the NGOs that were involved in the original statement opposing the MP allowance are unified on this issue.”

“Symbolic”

The decision to approve the Rf20,000 (US$1200) monthly allowances in December 2010 was met with  protests and widespread public indignation. However in June this year, parliament rejected a resolution proposed by opposition Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahlouf to scrap the allowance.

Meanwhile the current civic action campaign was prompted by parliament’s Public Accounts Committee (PAC) deciding in late August to to issue a lump sum of Rf140,000 (US$9,000) as committee allowance back pay for January through July this year.

Article 102 of the constitution states that parliament shall determine the salaries and allowances of the President, Vice President, cabinet ministers, members of parliament, members of the Judiciary, and members of the independent institutions.

The Rf20,000 allowance was initially approved on December 28, 2010 as part of a revised pay scheme recommended by the PAC.

During yesterday’s debate on a privileges motion regarding the anti-committee allowance campaign, MP ‘Colonel’ Mohamed Nasheed, a member of the PAC, explained that the committee felt that MPs should earn a higher salary than High Court judges.

“But even then the honourable members of the Public Accounts Committee believed that MPs were receiving a sufficiently large salary in relation to the country’s economic situation,” he said, adding that a decision was made to institute a “symbolic” committee allowance.

“The thinking at the time was to give it to MPs who attend committee meetings as a very symbolic thing, for example one laari or 15 laari. But to ensure that take-home pay for MPs would be Rf82,500,” he said.

However, he continued, this “noble effort” became politicised and the subject of “an anti-campaign programme.”

Colonel called for legal action against the activists “when they go beyond the boundaries of free expression” and the right to protest, claiming that MPs’ families and children had been targeted.

Echoing a claim made by a number of MPs yesterday, Colonel said none of his constituents had asked him to decline the allowance.

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