Hanimaadhoo MP Mujthaz joins PPM

Dhivehi Rayyithunge Party (DRP) MP Mohamed Mujthaz resigned from the party yesterday and signed for former President Maumoon Abdul Gayoom’s Progressive Party of Maldives (PPM).

Mujthaz signed the membership form at a small ceremony attended by Gayoom. PPM Spokesperson MP Ahmed Mahlouf told press that the MP for Hanimaadhoo had pledged to join the new party formed by the breakaway Z-faction of the DRP.

With the exodus of MPs to join PPM, the DRP now has 16 MPs in parliament.

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“Democratisation has its costs”: Maldives comes to terms with tax reform

The Maldives is coming to terms with a reformed tax system, following the introduction of a General Goods and Services tax this week.

Finance Minister Ahmed Inaz said the new system, which has raised the eyebrows of businesses, consumers and politicians alike, is a natural consequence of recent political changes and requires everyone’s support to function sufficiently.

“I think anybody could see that after the 2005 democratic reform, costs increased. These costs had to be met by additional revenue, but they weren’t,” he said.

Currently, the Maldives’ has a state deficit of Rf1.3 billion (US$85 million). Since democratisation, the Maldivian government has surpassed other national governments’ employment rates by employing 10 percent of the national work force. One third of government spending goes to state employees, and nearly half of the 2011 budget was spent on salaries and allowances.

The Goods and Services Tax (GST), which became operative on October 2, has raised a 3.5 percent tax on certain items. Contrary to an earlier tax which was paid for at the point of import and effectively invisible to the customer, the GST requires most businesses to charge an additional 3.5 percent directly to the customer at point of sale.

Certain items are tax exempt, a detail which has allegedly made it difficult to implement at stores selling a variety of products.

Inaz is optimistic that new tax reform system will cut costs and improve business operations. He said many businesses are compliant with the new measures, and are trying “their level best to be sure that this happens.”

“Business owners will have to crunch the numbers, and that will show them more about what is happening in their businesses. They will be able to better see how things operate.”

The GST is part of a larger tax reform system described in “a package of policy reforms that will help stabilise and strengthen the Maldives’ economy” agreed to by the Maldives and the International Monetary Fund (IMF) in May.

The policy reforms include raising the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013. Tourism is one of the Maldives’ leading economic contributors.

Inaz stressed that the tax was a step towards self-sufficiency for the Maldives.

“The international community will not give us the money required to balance our deficit, it is us who have to raise that money and that’s everyone’s responsibility. We have to make sure we can stand on our own feet.”

Meanwhile, opposition party Dhivehi Rayyithunge (DRP) has expressed concern over the tax. After supporting its initial pass through Parliament, DRP released a booklet titled “DRP’s response to the government’s economic nuisance package.” The booklet said businesses were not sufficiently prepared for the transition, and requested a six month delay.

Noting “administrative confusion” and the country’s heavy reliance on imports, the DRP also suggested levying a customs duty at the entry point to the country as a more effective means of raising revenue.

“We believe the GST is a regressive expense. The government doesn’t have the infrastructure to support it, implementation of GST means it will have hire a lot of people.”

DRP Spokesperson Ibrahim ‘Mavota’ Shareef said today that the tax system had not been implemented prematurely, but that it would only benefit large businesses while harming smaller ones.

“The government is doing the opposite of what it preaches,” he said. “Our main problem with the bill is that the government has decreased the tax burden on the very rich, especially in the tourism sector. We want to see the current tax system overhauled and replaced with a modern one.”

Shareef said DRP supports other progressive taxes, and was in favor of the recently announced plan to decrease import duties starting in January 2012.

President Mohamed Nasheed yesterday said a policy to reduce import duties would bring prices down starting early next year.

The President’s Office Press Secretary Mohamed Zuhair told Minivan News that the waiving of certain import duties would be significant.

“Once the new tax system is fully operating, all will fall into place. Prices will drop to even lower than originally,” Zuhair said.

A bill to finalise the tax system is currently before the Majlis, and is expected to take another two or three months to be properly processed.

During the President’s tour of retail, grocery, and supermarket stores on October 3, Zuhair said that operations were “running smoothly”.

“The only issue was that many businesses had a shortage of coins. Maldivians have a habit of rounding up to avoid coin transfers, but in a successful economy coins are important. Maldives Inland Revenue Authority (MIRA) has been doing a commendatory job in distributing coins, and the Maldives Monetary Authority (MMA) foresaw the issue and has a distribution system in place,” he said.

When asked about the DRP’s opposition to the GST, Zuhair alleged that the party’s motives were political.

“They made their case to the President, but the President was advised by his advisors and economic experts that a taxation system needed to be implemented,” said Zuhair.

“It is true that the very rich have not been taxed appropriately as per their earnings,” he acknowledged. “Once the tax system is fully in place, things should stabilise.”

Shareef did not accept that there were political motivations behind the DRP’s objections. “It’s an economic and social issue, concerning the distribution of wealth,” he said.

Inaz did not wish to comment on the matter. “This is an economic issue,” he said.

State Minister for Finance Ahmed Assad previously observed that even with the new taxes proposed by the government, the Maldives still had the most generous tax system in the region – even compared with other island nations, and neighbouring countries such as India and Sri Lanka.

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DRP condemns Gayoom’s remarks on losing ground to MDP

Dhivehi Rayyithunge Party (DRP) has condemned its erstwhile ‘Honorary Leader’ and former President Maumoon Abdul Gayoom for saying the ruling Maldivian Democratic Party (MDP) outpaced the main opposition party while it was “in a slumber.”

Speaking at a rally in Thaa Atoll Guraidhoo on Saturday, Gayoom reportedly said that the MDP became both the largest political party and the majority party in parliament after the new DRP leadership took over.

In a statement put out yesterday, the DRP said Gayoom’s remarks concerning the party were misleading and “contained serious lies.”

Among the alleged falsehoods, the statement noted that the MDP came to power in 2008 after defeating Gayoom, who was DRP’s presidential candidate and ‘Zaeem’ at the time.

“One of the main reasons for DRP having to face one of its biggest defeats and MDP coming to power and causing despair for most citizens was the fact that the whole presidential campaign was run by Gayoom’s eldest son Farish Maumoon as a family matter,” it reads.

It adds that while the DRP under the leadership of Ahmed Thasmeen Ali emerged successful in the past two elections, “we note with regret that the party was unable to win a single election under President Maumoon’s leadership when it was in the government.”

On the loss of MPs in parliament, the statement noted that former President Gayoom lost majority control in the past despite the presence of eight appointed MPs after brother Abdulla Yameen left the DRP with a number of MPs.

Moreover, the statement continues, it was “questionable today” whether the Z-faction’s public criticism of the DRP leadership and “pointing accusatory fingers at the DRP, the party’s leadership, MPs, councillors, senior members sweating to enliven the party in the islands and the party’s common members” was in the service of “the nation and religion.”

The statement concludes by saying that since infighting among the opposition would benefit the ruling party, “it has become clear to the public today that such actions shows the lack of truthfulness and sincerity of the people around President Maumoon.”

Gayoom meanwhile returned to Male’ today after visiting islands in Laamu and Thaa atolls to promote the incipient Progressive Party of Maldives (PPM) and recruit new members.

The former DRP Zaeem was quoted in local media as saying that the DRP lost ground to the ruling party because of “lack of effort and attention” by the new leadership.

“We cannot achieve anything in the political arena in such a state,” Gayoom said. “That is why we are forming this party. We are forming PPM for a noble purpose.”

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Opposition launches campaign against income tax

The opposition Dhivehi Rayyithunge Party (DRP) launched “a special campaign” yesterday against the introduction of a personal income tax in the Maldives.

Speaking at a press conference at private broadcaster DhiTV, DRP Leader Ahmed Thasmeen Ali said that “the purpose of our campaign is to undertake efforts to inform citizens as broadly as possible of the effect of [the introduction of income tax].”

“Considering the state of the country today, economic growth has been considerably stalled,” he said. “The base for income tax – the tax base – is very small. If you look at the tax brackets, the number of people who have to pay income tax is very low. This is because our development has not reached that level and most citizens are not wealthy. This is something we have to consider before introducing such a tax.”

The consequences of levying a personal income tax under the prevailing economic circumstances would be reduced investment, slowed economic growth and worsening unemployment, Thasmeen argued.

As the number of people who earn Rf150,000 (US$9,700) a month are quite few, said Thasmeen, an additional tax burden would discourage them from investing and incentivise down-sizing or cost-cutting measures, such as layoffs, in their businesses.

In August, the party issued a booklet titled “DRP’s response to the government’s economic nuisance package” noting that all citizens would have to file tax returns.

“The charts of the government’s fiscal and economic nuisance package show Rf300 million will be received in 2012 from income taxes and 475 million in 2013,” it reads. “Instead of making all citizens file tax returns in order to earn 475 million two years after taxes are introduced, it would be far better to reduce the government’s useless expenditure by that amount.”

Thasmeen meanwhile asserted that administrative costs for collecting the income tax would be prohibitive: “MIRA [Maldives Inland Revenue Authority] has not revealed the figures yet, but we believe that will be a surprisingly high amount,” he said.

Following a meeting with Thasmeen in August to discuss the government’s economic reform bills currently before parliament, President Mohamed Nasheed told press that the minority leader of parliament had expressed concern with the personal income tax.

While the government was open to suggestions of lowering or reviewing the proposed tax rates, Nasheed said at the press conference following the meeting that financial experts had advised the government that an income tax was necessary for the tax regime to function as a whole.

Progressive taxation

Presenting the draft income tax legislation to parliament on July 18, MP Ilyas Labeeb of the ruling Maldivian Democratic Party (MDP) said that the purpose of the economic reform package was shifting away from custom duties in favour of direct taxation in the Maldives for the first time.

“Income tax will be taken from individuals whose total monthly income from their salary or other sources exceed Rf30,000 (US$1,900),” Labeeb explained. “The tax will be taken from income above that amount.”

All citizens and non-citizens who earn their income in the Maldives will be eligible for the tax. For naturalised citizens and residents, income earned abroad will be taxable as well.

Ilyas explained that the income tax would be progressive and divided into five tax brackets, whereby people with higher income would pay higher rates.

The tax rates are set at three percent for monthly incomes between Rf30,000 to Rf40,000; six percent for incomes between Rf60,000 and Rf100,000; nine percent for incomes between Rf100,000 and Rf150,000; and 15 percent for Rf150,000 and higher.

The legislation specifies 15 sources of income that would be considered taxable, Ilyas continued, while Zakat funds (alms for the poor), pension contributions, interest payments and capital allowance or investment would be exempt from taxation.

Individuals would meanwhile be required to submit an annual personal income tax statement.

If passed, the income tax law will come into effect on January 1, 2012.

Ilyas observed that the introduction of a 3.5 percent tourism goods and services tax (TGST) in January this year had revealed that the country’s GDP per capita was closer to US$4,060 than the previous estimate of US$2,840.

“We learned that the Maldivian economy is such that each citizen should get close to Rf5,000 (US$300) a month,” Ilyas said. “[But] the country’s wealth is shared by disproportionately few people. One in four people do not make even Rf1,000 (US$60) a month.”

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DRP secretary-general quit via text message

The opposition Dhivehi Rayyithunge Party (DRP) has criticised the party’s former Secretary General Mohamed Nimal for the “irresponsible” manner of his departure to join the incipient Progressive Party of Maldives (PPM).

DRP Media Coordinator Ali Solih told newspaper Haveeru that Nimal was appointed to the post under an agreement signed three months ago.

“Resigning through an SMS alone will not do,” he said. “He has to hand over the tasks he was given. I believe he should have discussed with party leaders about the tasks before making a decision.”

Nimal, who contested unsuccessfully for the Maafanu-South council seat of Male’ City, was appointed secretary general of DRP on July 1 after the resignation of Abdul Rasheed Nafiz.

Nimal said he quit the DRP because he was “convinced that PPM has the capacity to win the next presidential election among all the opposition parties. I saw the determination of all the senior members involved in creating the party to win the presidential election. PPM can save the people from this government.”

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Women leading youth brain drain due to “stifling environment”

“There is a lot of brain drain here, that’s part of why I came back. I didn’t want to be a brain drainer. I wanted to fix it.”

Halifa* is a 25 year-old Maldivian woman, educated and living abroad, who returned to work in the Maldives for a one year contract in a highly specialised professional field.

For many young people, Halifa says, Maldivian culture is an obstacle to growth and employment.

“Many youth wish they weren’t even Maldivian, they don’t know why they had to get stuck here,” she says. “When I talk to one of my friends, she says she wants to get out and come back when it’s better. That attitude is actually quite common.”

The Maldives has an unemployment rate of 32 percent, with women accounting for 24 percent overall. Young people comprise 40 percent of the population of the capital Male’. Of these youth, few females hold diplomas and many are unemployed.

“Lots of girls quit school to get married, and before long they’re having kids and trying to raise a family aged 19 or 20,” Halifa says.

For those who do look for jobs, the options are few.

“Most bosses hire for looks,” says Halifa. “Girls are often hit on by bosses, and some give in. Maybe they think they can handle it if it will improve their CV. But after the relationship, most girls leave the job and maybe take up the burqa. The experience may be so bad that they won’t look for another job.”

Growing religious fundamentalism is causing ripples of concern over female employment – although the Constitution allows for equal rights, few stand up for them. Instead, women increasingly accept a “culture of timidity and submissiveness,” in the words of another Maldivian woman, who is pursuing her doctorate.

It is a significant time for the strengthening of Maldivian democracy following the introduction of multi-party elections and many new freedoms. But it seems that women are both dissuaded from and reluctant to participate in the job sector. Frustrated by social, political and religious obstacles, youth are looking to apply themselves elsewhere. Is the Maldives facing a female brain drain?

“The ultimate goal is to raise an educated housewife”

A 2007 UNICEF report found that girls were almost 10 percent more likely to pass from primary to secondary schooling than boys, and repeated primary school less often. But sources say fewer girls are fulfilling their potential.

A government official who spoke to Minivan News said that many women lose their motivation to pursue higher education at grade 11, choosing marriage instead. The official said things are changing, but opportunities remain scarce for both genders.

“I think what women lack really is higher education, and men as well. If we want to move ahead, we need to focus on providing higher education,” she says.

Cost and accessibility contribute to the low achievement rates. Higher education is expensive by Maldivian standards, and the wait for scholarships is demoralising, says Halifa. Students who study abroad are often from wealthy families, and therefore not selected for their intelligence or ambition.

Halifa adds that Maldivian culture does not justify the effort of getting a degree: “Education is valuable in the Maldives, everyone wants their kids to have degrees. But then what do they do? They still expect them to be at home.”

According to an Asian Development Bank (ADB) report dated 2007, Maldivian cultural standards make it difficult for girls to pursue professional degrees.

“Cultural expectations regarding young women living away from home impact upon the numbers of female students studying abroad and hence female attainment of tertiary qualifications. From 1995 to 2000 a total of 876 students were awarded government scholarships to study abroad, 42% of which went to girls. From 2001 to 2005, 39% of undergraduate scholarships went to girls, 38% of post-graduate scholarships and 22% of doctorate scholarships.”

The Maldivian parliament has 77 members, only five of whom are female. MP for the ruling Maldivian Democratic Party (MDP), Eva Abdulla, said the lack of higher education affects a woman’s chances in the job sector.

“It is difficult for women to get the education necessary to compete with men of the same age for the same job. Statistics show that women are receiving less education than men after tenth grade, whereas up until secondary school they are on par.”

Abdul said the pressure to stay home and become a mother was significant. She also acknowledged that a woman’s path to employment is unclear.

“Equality in the work force and equal opportunities for women won’t happen naturally if we just improve education. We need to make some real changes to show an improvement in the ratio of men to women in the work force,” she said.

In some cases, however, employers see education as a threat instead of an asset. Halifa’s boss allegedly told her she was lucky to be hired with a degree. Since the boss only held a diploma, she preferred hiring employees whose qualifications did not jeopardise her own.

“Cover up and wear the burqa”

Halifa says her boss made unflattering assumptions about her personal life since she was over 20 and unmarried.

“I was guilty before I even knew I was being judged,” she says.

There is “not one single resource” for women who feel they are receiving unfair treatment at work, said Abdulla. “I don’t know if we have even made it comfortable for women to talk to each other here.”

Halifa adds that complaints of sexual harassment only provoke criticism of her religious practice: “They just tell me to cover up more and wear the burqa,” she says.

Although Maldivian law and society allow for equal rights between genders, speaking out is considered brash and unfeminine, and the cultural mindset of wearing the burqa means more girls are being married young without finishing their education. One woman called this shift in behavior “brain wastage: a deliberate refusal to apply the brains that one has – and this is the biggest problem that Maldivian women face today.”

Behind the pack

“Gender equality is an area in which the Maldives is lagging behind most countries in achieving the Millennium Development Goals (MDGs),” UNDP advisor Ferdinand von Habsburg-Lothringen observed at the Democracy Day ceremony earlier this month. “Democracy is dependent on not just 50 percent of the people. With only half of the eligible work force participating, growth will not flourish in the Maldives.”

According to Abdulla, women want to work but cannot find the domestic support necessary for them to work outside the home.

“I have not met many who say they would rather stay home,” she said. “But the pressure of managing a career and a home is serious. Women have two jobs: one paid, one unpaid.”

The stress on women is detrimental to economic growth.

ADB reports that almost half of Maldivian households are headed by women, while less than four percent of men contribute to household tasks. Approximately 25 percent of women-headed households depend on income from a husband who works away from home, and one sixth are run by widows or divorcees.

“Divorced women and their children are particularly economically vulnerable and [have] limited choices to improve their situation apart from remarrying: Maldivian women have on average four marriages by the time they reach 50 years of age,” states the report.

In 2007, ADB found that female-headed households accounted for 47 percent of the population, one of the highest rates worldwide. Only 21 percent of these households were economically active.

A government official familiar with the issue said “the middle market is the primary area of employment for women”, with few women advancing to the top. She added that she is often the only woman at a business meeting.

Most sources agreed that the recent rise in religious fundamentalism could have a long-term effect on women’s employment prospects.

In 2009, opposition Dhivehi Rayyithunge Party (DRP) MP Rozaina Adam introduced the Soft Loans Provision for Women to enable women to borrow small amounts of money and set up small businesses from home. She said the bill would particularly benefit island women who have fewer employment options.

The bill was stopped when it reached the Islamic Ministry, which declared interest haram.

“This is ridiculous, because our banks operate with interest,” Adam said. “But when interest involves women the Ministry calls it haram. And it’s only a tiny amount of interest, about six percent maximum.”

Adam said the loans provided by the bill would range from Rf5,000 to Rf300,000.

“Unless we do something about the growing religious fundamentalism in the Maldives, women will only stay at home and breed children in the coming years. That is not constructive for a growing country and economy. It would be a major economic setback,” said Adam.

“We are a country in transition so what happens during this time defines what happens next.”

Women face many challenges to employment: complicated social expectations, unclear motives for education, an increasingly strict Islamic code, and scrutinising work environments. If current social trends continue, there will be little room and few incentives for the next generation to contribute to the country’s growth.

“Educated Maldivians find themselves intellectually stifled in the current climate, especially with the astonishing gains that ultra-religious conservatives have made in Maldivian society in the last decade,” observed one source.

At this year’s 55th session of the Commission on the Status of Women, Abdulla said gender stereotyping and violence “threaten[ed] to erode our gains and erect obstacles to future progress.” She warned that unless key institutions such as Parliament include more women in their decision-making processes, “policies will continue to lack the multifaceted approaches required to address the complex social, political and economic needs of our country.”

Recent initiatives such as the Domestic Violence Bill and the National University Act are positive steps. But Abdulla said evidence suggests more families are removing girls from education systems and keeping them in the domestic circuit. “We believe that religious extremism that shapes negative attitudes towards women and girls forms the genesis of this devolution towards female education and empowerment,” Abdulla said at the session.

One woman warned that if religious and social trends continue, “in ten years women would be lucky to leave the house, let alone the country.”

Although most sources agreed that religious fundamentalism challenges the thinking, working woman, some say it is not actively preventing women from going to work or improving their lot.

Halifa is optimistic about her generation, but said success depends on key changes. “I think when our generation is in charge they will be people who have gotten out, who have seen other cultures, who are more familiar with the power of women. The religious guys are still an issue for development,” she says.

One government source added that compared to Mexicans, Maldivians do not have a strong urge to cross a border.

Adam cautioned that the Maldives should be aware of the outside world’s appeal to youth. “If we can’t offer challenging jobs and salaries that are competitive with what other countries are offering, we have a hard time keeping our educated youth involved at home,” she said.

Abdulla says she believes that there would be significant opportunities for youth in the government and private sectors in the next five years, but felt that more needed to be done to improve the working environment.

“Equality in the work force and equal opportunities for women won’t happen naturally if we just improve education,” she said. “We need to make some real changes to show an improvement in the ratio of men to women in the work force.”

*Name changed according to request

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ICC membership expected to reform Maldivian judicial system

The Maldives has become the 118th country to adopt the Rome Statute of the International Criminal Court (ICC), the world’s first and only permanent international court with jurisdiction over crimes against humanity, crimes of aggression, genocide and war crimes.

The Maldives is the third state in South Asia to become an ICC member, following Bangladesh and Afghanistan. It is the ninth in the south asian region alongside Cambodia, Japan, Republic of Korea, Mongolia, the Philippines and Timor-Leste; plans to ratify the statute are advancing in Malaysia and Nepal.

Asia has been slower than other regions in adopting the ICC regulations, allegedly because they maintain the death penalty which is prohibited by the ICC. William R. Pace, Convenor of the Coalition for the International Criminal Court, said the Maldives’ decision to accede to the Rome Statue was a significant step for the region.

“It is vital that the momentum towards increasing respect for the rule of law and accountability for those responsible for the most serious crimes is seized by other states in the Asia-Pacific region, many of whom are close to joining the ICC,” Pace said in a press release. “Joining the Court represents a strong deterrent effect that will contribute toward the prevention of gross human rights violations in the Asia-Pacific region and to the global fight against impunity.”

Acceding to ICC regulations as defined by the Rome Statute has been a long process for the Maldivian government. In 2003, the Maldives took steps to reject its judicial authority.

Wikileaks cables published on 1 September 2011 cite the Maldivian government’s intent to “never turn over a US national to the International Criminal Court (ICC). The Maldivian government would not sign the ICC treaty and would not respect its claim to universal jurisdiction.” Other cables indicate that then president Maumoon Abdul Gayoom was seeking approval for a visit with then US President George W. Bush, allegedly to improve his chances of re-election.

Speaking to Minivan News today, the President’s Press Secretary Mohamed Zuhair said ratification of the ICC statute highlighted the different values of the current administration.

“For us, it’s transparency that is at the top of our priorities. So right now, our highest priority is to improve the judicial system of this country.”

The ICC covers major crimes which are widespread, systemic and of concern to the international community. The ICC does not deal with small cases, even if the victims may be in the hundreds.

Among the criteria for the ICC to take on a case in the Maldives is doubtful willingness and capacity of the country’s own judiciary to handle the case in question.

Zuhair said it was important for Maldivians to have access to an international judicial system. “Individuals who feel they have a complaint, even against a leader, could refer the complaint to the Maldivian judicial system or to the ICC. This is a big step for a country whose previous leaders have been accused of human rights violations. I believe their cases would be fairly addressed in the ICC,” he said.

Evelyn Balais-Serrano, Asia-Pacific Coordinator for the ICC’s advocacy NGO Coalition for the International Criminal Court (CICC) told Minivan News that ratification would support domestic legal reform, and that heads of state would face new levels of accountability.

“The ICC only deals with the big fish. In the past only the small fish may have been sacrificed to show a semblance of justice – but the ICC targets the highest level of responsibility: the head of state, generals, kings,” she said previously.

The Debate

In October 2010, the debate to join the ICC created sparks in Parliament.

MDP MPs condemned the “unlawful and authoritarian” practices of the previous government. Group Leader “Reeko” Moosa Manik referred to 2009 legislation protecting former presidents who he considered “the worst torturers in the country’s history,” and said the purpose of the international criminal court was to “arrest torturers like Maumoon [Abdul Gayoom], people like Ilyas Ibrahim [brother-in-law of the former president] who stole state property and funds, and Attorney Generals like Hassan Saeed who tried to hide it.”

MPs from opposition Dhivehi Rayyithunge Party-People’s Alliance (DRP-PA) said MDP MPs were overlooking the fact that Gayoom had never been reprimanded in a court of law, and accused the current administration of disregarding rules of law. MP Dr Abdulla Mausoom accused the MDP government of formulating policies only to “benefit certain people”, which he argued could be “considered a crime in international courts.”

The question of religion was also inflammatory. DRP MP Dr Afrashim Ali said convention should not be signed if it could lead to “the construction of temples here under the name of religious freedom.” Other MPs pointed out that several Muslim countries had not joined the ICC, and the MPs were concerned that ratification would “shatter Islamic principles” and encourage gay rights.

Shari’a experts in ICC signatories and Muslim countries Afghanistan, Jordan and Malaysia have not found conflict between the Rome Statute and Sharia.

On 14 June this year, Parliament voted almost unanimously to sign the Rome Statute of the ICC.

The Effects

Speaking to Minivan News today, Balais-Serrano pointed out that ratification of the Rome Statute was well-timed.

“As a chair of the SAARC summit, Maldives will have quite an influence on south asian countries attending this year’s event,” she said. “It will certainly be constructive in reviewing human rights, a key point we plan to address at the summit.”

The South Asian Association for Regional Cooperation (SAARC) summit is scheduled for Addu City in mid-November this year.

Balais-Serrano also pointed out that by ratifying the Rome Statute, governments are committing to adapt current domestic legislation to meet international standards. She said ICC members could receive “training of local judges and prosecutors and other officials responsible for lawmaking and implementation”, and hoped the Maldives would forward with judicial reform.

“The judicial system in Maldives can benefit from the rules and procedures by which the ICC operates, for example, in the nomination and election of judges, in the protection of witnesses and victims and in ensuring due process,” said Balais-Serrano.

She said that ICC membership would expand Maldivian court procedures. “One of the motivations of joining the ICC is to let go of a commitment to include the domestic judicial system alone. Now, Maldivians can also refer to the ICC provisions and regulations. This is a timely event for the Maldives to review domestic law while making the ICC a reference point.”

As an ICC member, the Maldives will be able to send judges and lawyers abroad for internships and exchange programs in member countries. Balais-Serrano said that all member countries are obliged to send employees to the ICC to learn and assist with proceedings.

International liability

ICC membership could affect international relations. The Maldives recently made news headlines by supporting the Sri Lankan government, which is facing war crimes allegations by international human rights groups. A report from UN Secretary General Ban Ki-Moon has raised the likelihood of an investigation by the Human Rights Commission.

A Relationship Agreement between the ICC and the United Nations calls the UN “potentially the most important partner of the ICC on various levels,” and suggests that investigations by the UN are based on the same human rights standards put forth by the ICC.

“The Maldives cannot do anything if the ICC decides to investigate and put into trial the perpetrators of crimes in Sri Lanka,” said Balais-Serrano. “If suspected criminals from Sri Lanka seek refuge in the territory of the Maldives, as a state party to the ICC, the government is obliged to cooperate to the Court by arresting  the criminals.”

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DRP requests six month delay for general GST

Main opposition Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali has sent a letter to the President requesting a six-month delay to the introduction of a 3.5 percent Goods and Services Tax (GST) approved by parliament last month.

In his letter, the minority leader noted that according to parliamentary rules of procedure, only the government could submit tax legislation. He urged the government to delay the implementation of the GST to allow businesses enough time to prepare. The General GST is due to come into force on October 2.

Thasmeen argued that a number of citizens could be subject to legal penalties specified in the legislation if they were not provided sufficient information about registering and paying the new direct tax.

In a booklet handed out to media last month titled “DRP’s response to the government’s economic nuisance package,” the party noted that the General GST would affect small businesses such as cornershops, cafes and teashops.

The businesses would “need a lot of preparation” to maintain accounts, install “modern computer systems and hire accountants” as well as provide customer’s statements showing the GST percentage.

Morever, taxing “total value of business transactions” would not be possible with GST at zero percent for some items.

Considering the potential “administrative confusion” and the country’s heavy reliance on imports, the DRP argued that levying a customs duty at the entry point to the country was more effective.

President’s Press Secretary Mohamed Zuhair told Minivan News today that the government viewed the DRP as the main opposition party and “gives a high priority to their concerns.”

“But the President has been advised by financial experts that all taxes should be part of one network and it is not sensible to omit one tax for the whole system to work,” he said.

Zuhair noted that “people wanted to delay the introduction of political parties” in the past, adding that “we have lost 30 years without a tax system.”

In May, the International Monetary Fund (IMF) approved a three-year support programme after the government agreed to “a package of policy reforms that will help stabilise and strengthen the Maldives’ economy.”

Under the IMF programme, the government committed to:

  • Raise import duties on pork, tobacco, alcohol and plastic products by August 2011 (requires Majlis approval);
  • Introduce a general goods and services tax (GST) of 5 percent applicable to all sectors other than tourism, electricity, health and water (requires Majlis approval);
  • Raise the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013 (requires Majlis approval);
  • Pass an income tax bill in the Majlis by no later than January 2012;
  • Ensure existing bed tax of US$8 dollars a night remains until end of 2013;
  • Reduce import duties on certain products from January 2011;
  • Freeze public sector wages and allowances until end of 2012;
  • Lower capital spending by 5 percent
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DRP leader urges Foreign Minister to support UN recognition of Palestinian statehood

Opposition Dhivehi Rayyithunge Party (DRP) leader and MP for Kendhoo constituency Ahmed Thasmeen Ali has sent a letter to Foreign Minister Ahmed Naseem, urging him to support UN recognition of Palestine as a state at the UN.

Thasmeen asked the Minister to fully participate in all the discussions held at the UN concerning the issue, and to vote in favor of Palestine in all votes regarding the issue.

Ending the letter, Thasmeen urged Minister Naseem to seek the support of friendly countries, saying it was “what the citizens of the Maldives would want to see.”

Meanwhile, the Foreign Ministry has stated that the Maldives strongly supports UN recognition of Palestinian statehood, with Naseem advocating the position before the UN Human Rights Council following the announcement by Palestinian Authority President Mahmoud Abbas that he will apply to the UN Security Council for full UN membership.

“Let us be clear, the Palestinian people have, like everyone else, the right to self determination – the right to a state of their own. They have waited long enough for that most basic of rights. When the Palestinians present their case to the UN, the Maldives will stand shoulder-to-shoulder with them, and we call on all others to do likewise,’’ Naseem told the UN Human Rights Council.

Naseem has said the Maldives does not believe that UN recognition of Palestinian statehood will would narrow the chances of a negotiated peace.

‘’We believe that rather it will help those chances by creating a situation in which two state partners can negotiate as equals,” Naseem said. “We hope the US will maintain its historical support for the right of all peoples to self-determination and we believe that the recognition of Palestinian statehood will help secure a negotiated peace in the future.”

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