Tag: economic committee

Chair and deputy chair of parliament’s economic committee elected

Parliament’s economic committee has elected Nilandhoo constituency MP Abdulla Khaleel as its chair and Meedhoo constituency MP Ahmed ‘Sun’ Siyam as its deputy chair at a committee meeting held on Wednesday (July 2).

Maamigili constituency MP – leader of Jumhooree Party – Gasim Ibrahim and Hithadhoo Uthuru constituency MP Mohamed Aslam were also nominated for the post of chair but lost by 1 vote and 3 votes, respectively.

In addition to these four members, the committee also included Galolhu Uthuru constituency MP Eva Abdulla, Thinadhoo Uthuru constituency MP Saudhulla Hilmy, Guraidhoo constituency MP Hussain Manik Dhon Manik, Central Fuvahmulah constituency MP Ali Fazaadh, Kin’bidhoo constituency MP Abdulla Riyaz, Maduhvari constituency MP Mohamed Ameeth, and Laamu Gan constituency Fayyaz Ismail.

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State wage bill sent back to Majlis for the third time

President Abdulla Yameen has returned ‎the state wage policy bill back to the People’s Majlis for reconsideration after expressing concern over the inclusion of some public companies and parliamentary oversight.

President’s Office Spokesperson Ibrahim Muaz said that the inclusion of public companies with more than fifty percent shares would create difficulties as these are separate legal entities which would subsequently have an outside authority setting wages.

The other key issue related Article 18 of the bill which states that all decisions of the pay commission regarding the setting of wages and formulating wage policies must be approved by parliament.

“The president does not believe the commission would be an implementation authority if the People’s Majlis is to approve its decisions,” said Muaz, noting that it would create difficulties in implementing the Pay Commission’s decisions.

Majlis economic committee member, Kelaa MP Dr Abdulla Mausoom, told Minivan News the bill was being delayed mainly due to a conflict between the two branches of the government, arguing that the Majlis ought to have final say on pay awards as representatives of the people.

The bill which was passed on April 27 had been returned twice by the previous President Dr Mohamed Waheed.

It aims to resolve public sector pay discrepancies through the creation of a National Pay Commission and was first proposed by Kulhudhufushi South MP Mohamed Nasheed in March 2011, and was passed by the Majlis in December 2012 and again in April 2013.

In a letter sent to the speaker of the majlis, President Yameen has requested that points noted by the government be considered.

According to Muaz, further issues emerging from the bill are that it essentially hands over the authority to decide salaries of all institutions, including president’s staff and security forces, which are currently under the executive according to the constitution and laws.

He described the parliament’s deciding upon all changes to salaries and benefits of state employees as “People’s Majlis infringing on the executive’s responsibilities”.

The constitution is clear on the parliament’s roles in allocating salaries independent institutions, continued Muaz, and the parliament’s role when it comes to the wages of other state employees – not specifically stated in the constitution – should be limited to formulating policies on the matter and holding other relevant stakeholders accountable.

President Waheed had previously told the Majlis that the requirement for parliament approval of commission decisions “dissolves the separated boundaries of, and would present difficulties in carrying out the functions of, the state – particularly in carrying out the duties of the executive”.

In response, the economic committee of the Majlis which reviewed the bill said “the best way to maintain checks and balances” is keeping the bill as it is, instead of leaving the power of determining the wages under the total control of the executive.

“People’s Majlis has the largest number of people’s representatives and should be viewed as the people. [In the bill] all the decisions are made by the [Pay] commission and it is only sent to the parliament to see if the people approve of it,” said Dr Mausoom.

When asked if the issue could take another turn with the newly elected parliament, Dr Mausoom said that he believed the new members of the parliament would make a responsible decision.

The ruling Progressive Coalition currently maintains a parliamentary majority and has won a ‘super-majority’ of two-thirds in the newly elected parliament.

The government is currently under pressure from workers over pay discrepancies and minimum wage, with both civil servants and teachers considering strike action in recent weeks.

Meanwhile President Yameen yesterday ratified five bills passed along with State wage bill at the eighth sitting of Majlis’ ‎first Session, on 27 April ‎‎2014.

The five bills which were ratified are the sole proprietorship ‎bill, business registration bill, the fourth amendment to the ‎‎Maldives Land Act,  the sexual harassment bill, and the sexual offences bill.

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Government pension plans reliant on MVR1 billion investment return

The cabinet’s economic committee has announced President Abdulla Yameen will hand out the promised MVR5000 (US$ 324) to an estimated 17,000 pensioners starting in March.

Tourism Minister Ahmed Adeeb told the media during a press conference this afternoon: “I announce the happy news that the elderly will receive MVR5000 instead of MVR2000 at the end of this month.”

The government had allocated MVR470 million (US$ 30.5 million) in the state budget to give out an MVR2,300 (US$ 149) in cash handouts to individuals over the age of 65. These funds will now be invested in the retirement pension fund or in financial instruments such as T-bills to generate the monthly MVR5000 stipend, Adeeb said.

The government will need to generate an ambitious MVR1 billion (US$64.9 million) from investments this year to sustain the venture.

Although the government has not yet begun investments to generate the additional income for pensions, it will begin disbursing MVR5000 at the end of February as it is “certain” the required funds can be generated through future investments.

In the meantime, money will be redirected from within existing budgetary resources using “innovative methods” to pay out the pension this month, Minister of Fisheries and Agriculture Mohamed Shainee told Minivan News.

“This will not require additional expenditure from the budget. This will be done through investments made outside of the budget,” Adeeb told the press today.

“When we invest in the pension fund, this allowance will be given out without any breaks in the next five years. Even in the worst-case scenario, we will be able to generate that money. We can do this without any issues,” he said.

The cabinet’s economic committee is to meet tomorrow to discuss the most viable method of investment, Shainee told Minivan News.

Former President Mohamed Nasheed introduced the old age pension in 2008, while President Yameen pledged to increase the pension during last year’s presidential election campaign. On assuming office, Yameen said the government would not give cash handouts, but would provide the promised money through an insurance scheme.

The People’s Majlis subsequently passed a record MVR17.95 billion (US$ 1.6 billion) budget for 2014 with a deficit of MVR1.3 billion (US$84.3 million).

The deficit is expected to grow after the People’s Majlis failed to approve revenue-raising measures as proposed by the Ministry of Finance and Treasury.

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