MP Riyaz Rasheed withdraws amendments to law on privileges and protection for former presidents

Progressive Party of Maldives (PPM) MP Riyaz Rasheed has withdrawn amendments proposed to the Privileges and Protection for former President’s Act of 2009.

At today’s sitting of parliament, the PPM parliamentary group deputy leader said he decided to withdraw the bill as it required revision, adding that he would resubmit during the next session after the upcoming one-month recess.

The amendment proposed denying financial benefits and protection for former presidents if they are either convicted of a criminal offence or encourages an act that threatens Maldivian sovereignty and independence.

Similar amendments proposed by the Vilufushi MP twice before had been rejected by the previous parliament.

The 2009 law stipulates a monthly allowance of MVR50,000 (US$3,243) for a president who has served one term.

Before declaring his intention to withdraw the amendments, Riyaz suggested it could be beneficial to allow the bill to be debated on the People’s Majlis floor to “recall” the alleged misdeeds of former President Mohamed Nasheed and the Maldivian Democratic Party (MDP) government.

He went on to allege that the party was behind all the murders that have occurred in the Maldives, prompting MDP MP Ibrahim Shareef to object with a point of order.

PPM MPs were using the Majlis floor as “a political podium,” Shareef said.

Following the controversial transfer of presidential power on February 2012, the government had questioned Nasheed’s eligibility for state benefits on the grounds that he had not completed a full five-year term in office.

In June 2012, MDP MP Ahmed Hamza revealed that the state had spent MVR1.3 million (US$84,300) on healthcare costs for former President Maumoon Abdul Gayoom and his wife from 2010 to April 2012.

In November 2012, Riyaz threatened to sue the finance minister and attorney general for providing state benefits to former President Nasheed.

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Nasheed pays courtesy call on BJP leader

Former President Mohamed Nasheed paid a courtesy call to the ruling Bharatiya Janata Party (BJP) Leader Vijay Jolly in New Delhi yesterday (August 6), reports One India News.

“The rise of radical Muslim fundamentalism in Maldives, its serious implications on peace and security in our region, the involvement of Maldivian militants in the Mumbai terror attack of Nov 26, 2008, killing 164 people and wounding 308 civilians, and the Maldivian military trained ‘dropouts’ found fighting in Syria for ISIS were discussed at length,” read a statement from Jolly’s office.

Former Foreign Minister Ahmed Naseem was also present at the 45-minute meeting, according to the BJP statement .

Nasheed, the acting president of the Maldivian Democratic Party (MDP), reportedly praised Prime Minister Narenda Modi and expressed admiration for his style of governance.

The leader of the Maldivian opposition also conveyed greetings to BJP’s newly-elected President Amit Shah.

The statement added that an agreement was reached to establish a party-to-party relationship between the BJP and the MDP.

Speaking at an MDP rally in June, Nasheed had said that the “biggest relief” the Indian government could offer the Maldives over compensation owed to Indian infrastructure giant GMR for the premature termination of its airport development deal was assistance in changing the government.

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JSC demotes High Court Chief Judge Shareef to Juvenile Court

The Judicial Service Commission (JSC) has transferred High Court Chief Judge Ahmed Shareef to the Juvenile Court as a disciplinary measure more than one year and two months after he was indefinitely suspended.

The judicial watchdog revealed in a press statement yesterday (August 6) that Shareef was found guilty of ethical misconduct following an investigation of a complaint filed by seven of his colleagues on the High Court bench.

The JSC did not divulge any details regarding the allegations.

However, in June 2012, the Anti-Corruption Commission was asked to investigate allegations that Chief Judge Shareef met officials of Malaysian mobile security firm Nexbis in Bangkok, Thailand while a case concerning the firm’s controversial border control project was scheduled at the High Court.

Hulhumalé magistrate court

Shareef was suspended on May 29, 2013 while he was presiding over a case filed by former President Mohamed Nasheed contesting the legitimacy of the JSC’s appointment of a three-judge panel at the Hulhumalé magistrate court.

The judges were appointed to preside over the opposition Maldivian Democratic Party presidential candidate’s trial concerning the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed in January 2012.

In April 2013, the High Court had suspended the trial pending a ruling on the legitimacy of the magistrate court bench.

However, the High Court case has remained stalled since Shareef’s suspension the following month – more than a year after the complaint was filed against him.

JSC Chair and Supreme Court Justice Adam Mohamed Abdulla insisted at the time that the suspension was not related to the ongoing High Court case concerning Nasheed’s trial.

The suspension came shortly after the cancellation of a hearing in the Nasheed case which was scheduled at the High Court on the same day.

After voting against suspending Shareef, public representative on the JSC Shuaib Abdul Rahman told local media that the decision was made in violation of due process and JSC procedures as a report regarding the allegations was not presented to the commission’s members.

Shareef then challenged the JSC decision at the Civil Court contending that the suspension was unlawful. The court subsequently upheld the JSC decision in October 2013.

Stalled

In addition to Nasheed’s case, a number of high-profile cases over which Shareef was presiding have remained stalled since his suspension, including an appeal by Fathmath Hana, 18, who was sentenced to death for the murder of prominent lawyer Ahmed Najeeb.

Shareef was also among the panel of judges hearing appeals from the Prosecutor General’s (PG) Office over the acquittals of President Abdulla Yameen’s brother Abdulla Algeen on corruption charges and suspected drug kingpin Mohamed Hussain Manik.

According to the Judicature Act, the chief judge of a court has the administrative authority to appoint judges to preside over cases and make changes to panels. The Supreme Court had also ruled that acting chief judges do not have the authority to make such changes.

In June, the JSC appointed Judge Abdulla Hameed to head the High Court for a period of six months.

Meanwhile, in April, Nasheed asked the High Court to expedite the case concerning the legitimacy of the magistrate court bench.

Nasheed’s lawyer Hassan Latheef told Minivan News at the time that the former president did not wish to have pending criminal charges. Nasheed had previously said he was  “prepared” to justify the reasons for the arrest of Judge Abdulla and defend the decision at court.

In June, the High Court summoned members of Nasheed’s legal team to sign statements given at previous hearings.

Two of the three judges appointed to the magistrate court to preside over Nasheed’s trial have meanwhile been transferred to other courts. Judge Shujau Usman was transferred to the Criminal Court and Judge Hussain Mazeed to the Civil Court.

Meanwhile, according to the JSC’s annual report for 2013, the commission has yet to conclude investigations or make a decision regarding 106 cases, which were pending at the end of last year, including one complaint dating back to 2008 and four complaints from 2009.

In a comprehensive report on the Maldivian judiciary released in May 2013, UN Special Rapporteur for the Independence of Judges and Lawyers, Gabriela Knaul, observed that a lack of transparency concerning the JSC’s proceedings “nourishes serious allegations of selectivity in the management of complaints.”

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President Yameen’s Independence Day address “cartoonish,” says Nasheed

President Abdulla Yameen’s address to the nation on Independence Day was “cartoonish,” former President Mohamed Nasheed said on opposition-aligned private broadcaster Raajje TV Saturday night (July 26).

Responding to the president’s claim that opposition parties were inciting unrest and sabotaging the economy, the opposition leader contended that Yameen’s intention was to deflect attention from his administration’s failure to “fulfil the hopes of the people”.

Yameen’s remarks were “uncivilised, outmoded, and unacceptable,” the Maldivian Democratic Party’s (MDP) acting president said.

At a time when the Maldives was facing a sovereign debt crisis and the president’s mandate was in doubt following the dissolution of the coalition with the Jumhooree Party, “I hear such talk as very cartoonish,” Nasheed said.

Nasheed added that the public would not be intimidated by veiled threats and insisted that democratic progress achieved in the present multi-party system could not be reversed.

Yameen had said the government would not allow the country to be plunged back into turmoil and accused opposition parties of “deliberately trying to disrupt stability by creating a spirit of unrest in society.”

If Yameen was implying that he would restrict the rights to free expression, assembly and peaceful political activity, Nasheed said the Maldivian people would “once again rise up”.

“Bleak” economic outlook

In addition to compensation owed to GMR for the premature termination of a concession agreement to develop the Ibrahim Nasir International Airport – which he predicted would not be lower than US$500 million – Nasheed said the Indian EXIM bank was also seeking between up to US$150 million.

Moreover, the State Trading Organisation has incurred a debt of US$150 million in unpaid bills to the Emirates National Oil Company, Nasheed claimed.

The economic situation was “bleak” with dwindling foreign currency reserves, a stagnating fisheries industry, and declining tax revenue, Nasheed contended, adding that the government could not afford to pay compensation to GMR.

The current administration might be planning to “settle the economic and financial system of the Maldives” with “large amounts of black money” from suspicious foreign investors, Nasheed continued, but such plans could not succeed due to domestic and international oversight.

Reiterating criticism of the government’s flagship special economic zone (SEZ) legislation, Nasheed said the Maldivian government would have less authority in the SEZs than the authority it exercised in Gan during British occupation.

The SEZs would be used for illegal businesses and “money laundering” by international criminal organisations, he claimed.

Nasheed had previously dubbed the legislation the ‘Artur Brothers bill’, referring to an infamous pair of Armenians linked with money laundering and drug trafficking who made headlines last year after they were photographed with cabinet ministers.

A system of decentralisation with local councils granted ownership of land was necessary for increasing home ownership, Nasheed continued, which was was essential for individual liberty.

The SEZ bill would, however, remove land from the jurisdiction of island councils, he explained.

The government maintains that SEZs with tax breaks and other incentives were necessary both for foreign investors to choose the Maldives over other developing nations and to launch ‘mega projects.’

“Castles in the air”

Referring to the Ihavandhippolhu Integrated Development Project or ‘iHavan’ – which President Yameen said would be undertaken once the SEZ bill is enacted into law – Nasheed said an assessment conducted by the World Bank at the request of former President Maumoon Abdul Gayoom’s administration found that it posed “very delicate problems”.

Development of a transhipment port in the northernmost atoll and carrying out activities there that were “contrary to Indian foreign policy” would adversely affect Maldivian independence and sovereignty, Nasheed warned.

Nasheed also argued that guest houses businesses on inhabited islands were more beneficial to the populace than luxury resorts on uninhabited islands.

The direct benefit to island populations from SEZs would be even smaller, he added.

The SEZs and the touted mega projects were “castles in the air,” Nasheed said, “[but] if you plant a small tree in your home, you will see it grow.”

Asked about several MDP MPs voting in favour of approving Muhthaz Muhsin as the new prosecutor general, Nasheed said he does not give instructions to the parliamentary group.

MPs did what they believed was right based on political considerations, he added, insisting that the MDP was too “resilient” with its ability to “absorb shocks” for the party to be split over the issue.

Division and strife within the ruling Progressive Party of Maldives, however, would reach “extreme” levels, Nasheed suggested, after its MPs voted for Muhsin in defiance of Gayoom’s appeal for them to vote for his nephew Maumoon Hameed.

Nasheed predicted that President Yameen will force his half-brother Gayoom into exile abroad, which had happened to former rulers in the past.

“Maldivian history is repeating again,” he said.

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Housing Ministry to resume stalled Tata housing project

The government expects to sign a revised agreement with Tata Housing Developing Corporation next week to resume stalled housing projects in the capital Malé, Housing Minister Dr Mohamed Muiz revealed at a press conference yesterday.

The terms of the agreement were revised on the advice of the cabinet’s economic council after agreeing to some of Tata’s conditions, Muiz explained, and have now been forwarded to the Indian real estate developer for final approval.

“We have agreed that work must begin in two sites in Malé within 45 days of signing the amendments [to the contract],” Muiz said, referring to the Gaakoshi plot and former Arabiyya School premises.

Muiz further revealed that the government has also agreed to give back the vacant ‘Naadhee’ plot in Malé and approve construction on the site.

The site was taken over by the administration of former President Dr Mohamed Waheed with the intention of building a new Supreme Court complex on the premises.

While the previous administration had offered a plot in Hulhumale’ as an alternative, the developers felt the change would affect financing of the project.

The multi-million dollar housing project – a combination of commercial and social housing through a Public-Private Partnership model – was signed in May 2010 by the administration of former President Mohamed Nasheed with Apex Realty Pvt Ltd, a special purpose vehicle (SPV) or joint venture formed between Tata (65 percent) and SG18 Developers (35 percent).

Providing affordable housing to resolve the acute housing shortage in the capital was a core pledge of the Nasheed administration as well as the current Progressive Party of Maldives-led (PPM) government.

Contractual dispute

Housing Minister Dr Mohamed MuizThe Naadhee plot on Sosun Magu was among four plots of land in the capital awarded to the Tata subsidiary for construction of flats.

The Waheed administration’s decision to take over the plot was the source of the dispute with Tata, Muiz conceded yesterday, which has now been resolved after the economic council decided to give back the plot in accordance with the terms of the original agreement.

The government has agreed to purchase 20 percent of the flats constructed on the plot, he noted.

Discussions were meanwhile ongoing between the Supreme Court and the President’s Office on a new site for the apex court’s building, he said.

The flats in Gaakoshi and the old Arabiyya School site would have to be completed in 10 months and a year respectively, Muiz continued, while Tata has also agreed to construct 150 flats in Hulhumale’.

In May, Apex Realty announced that the company was prepared to resume work on the project as soon as the agreed upon amendments were incorporated into the contract.

“Apex Realty officials have undertaken multiple rounds of meetings with the economic council of the cabinet and the Ministry of Housing to find a mutually acceptable solution to contractual issues,” the company said in a press release.

“We are committed to the Maldives project and can start the project within 45 days after the final nod is received from the Housing Ministry and contract amendment is signed,” said Mr Sandeep Ahuja, Director at Apex.

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Nasheed alleges President Yameen “remains under power” of Gayoom

Acting leader of opposition Maldivian Democratic Party (MDP) former President Mohamed Nasheed has alleged that current President Abdulla Yameen “remains under the power” of his half brother former President Maumoon Abdul Gayoom.

Nasheed opined that it will be difficult for Yameen to continue his presidency under such circumstances, adding that to date he has observed that Yameen has been unable to rule autonomously without Gayoom’s interference.

“All we are seeing so far is the differences of thought between Yameen and Gayoom and the rifts that rise between coalition parties. So far, it does not appear as if Yameen has actual control over his presidency,” Nasheed said, speaking on a live talk show on opposition aligned Raajje TV on Wednesday night.

Nasheed also described Yameen’s appointment of Gayoom’s children and other relatives to political positions as nepotism, adding that “it’s lingering effects will prove to be extremely harmful even though it might seem the easier option”.

“They seem to be unsatisfied unless some relative or other is filling each key position in the government,” he continued.

Currently, Gayoom’s daughter Dunya Maumoon serves in Yameen’s cabinet as the Minister of Foreign Affairs.

Additionally, Yameen’s niece Dr Hala Hameed fills the post of Minister of State for Health and Gender, while Gayoom’s sons Ahmed Faris Maumoon serves as Minister of State for Economic Development and Mohamed Ghassan Maumoon serves as Minister of State for Youth and Sports.

Gayoom’s daughter Yumna Maumoon is currently in the post of Deputy Minister of Education.

Yameen has also drawn criticism for his drawn-out attempts to nominate his nephew Maumoon Hameed to the post of prosecutor general.

Nasheed – the first president to be elected in a multi-party election in the country – further asserted that it would be extremely difficult for a country to adapt to democracy after having had an autocratic regime for decades.

“Moving from autocracy to democracy is not an easy feat. It is not something that can be done in a day, or even in five years. I call upon all Maldivians to persevere in the efforts to establish a complete democracy in the country,” he stated.

“SEZs a path to money laundering”

Speaking on the show, Nasheed also criticised current government’s policies regarding tourism and foreign investment.

Nasheed alleged that, should the current bill on Special Economic Zones be passed by parliament, it would pose numerous threats to the people of Maldives. He stated that it would prove to be a path that facilitates black market activities and money laundering.

Tourism Minister and head of the cabinet’s economic council Ahmed Adeeb told Minivan News last month that critics of the bill had failed to understand that it offered the best way to encourage regional investment and development.

Nasheed yesterday alleged that there are no signs of improving general living conditions for the people as a result of Yameen’s economic policies, and that instead additional benefits are being introduced for businessmen and foreign investors.

Nasheed went on to say that the recently launched guest house island program would not present any benefits to locals, and that it is a threat to the success of guest houses in inhabited islands.

This policy – designed as a controlled version of the emerging guest house model on inhabited islands – was launched last week, and has been endorsed by industry groups.

Concluding the show, Nasheed spoke of the current government’s disregard towards improving the general livelihood of Maldivians.

Minivan News was unable to contact President’s Office Spokesperson Ibrahim Muaz for comment at the time of press.

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MDP alleges “covert police action” against protesters

The opposition Maldivian Democratic Party (MDP) has alleged intimidation, harassment, and “covert police action” against participants of a gathering in the capital Malé last Thursday (June 26).

The party explained in a press release yesterday that Thursday night’s rally was held “as the first of a planned series of gatherings dubbed ‘Barricade Meetings’, to protest the current regime’s mismanagement of state resources, rising costs of essential goods, deterioration of health services resulting in preventable loss of lives, and sustained influences on the judiciary to incriminate political rivals.”

The rally went ahead in spite of a warning by the Home Ministry against the planned gathering, which was the first time the main opposition party took to the streets since last year’s presidential election.

The MDP afterwards alleged that several police officers “infiltrated the rally and attempted to incite grassroots members” of the party.

“Leaders of the party urged participants to avoid confrontations and were exercising maximum restraint while reminding attendees that we were exercising our constitutional rights of assembly, of disseminating and acquiring awareness, and of freedom of expression,” the statement continued.

“Intimidation and harassment of participants of rallies and political gatherings have been the practice of [former President Maumoon Abdul] Gayoom regime in the past. It is a matter of serious concern for the MDP that police are being directed to infiltrate and incite participants of political rallies by the administration of President Yameen Abdul Gayoom.

“Their orders include identification of the party’s youth leaders and top activists and the MDP believes that several young participants of the rally will be arrested on some trumped up unrelated charges in the next few days.”

President’s Office Spokesperson Ibrahim Muaz Ali was unavailable for comment at the time of press.

Peaceful assembly

The MDP statement meanwhile added that threats and “targeted incrimination” against youth participating in political activities was a common practice under the Gayoom regime.

“The MDP appeals to well-wishers to prevail over the current administration to cease and desist from attempts to intimidate and incriminate participants of political gatherings,” the press release concluded.

The Maldives Police Service (MPS) meanwhile are reported to have sent a letter to former President Mohamed Nasheed – acting president of the MDP – asking the party not to hold demonstrations at the Chandanee Magu-Fareedhee Magu junction.

Although Nasheed had declared that the party would continue its gatherings “every night,” the MDP did not organise a gathering last night.

Police stated in the letter – obtained by local media – that a number of complaints were made by members of the public regarding the MDP’s gathering on Thursday night.

While pedestrians, Ramadan shoppers, and drivers were inconvenienced, the letter stated that residents of the area also complained of infringement of their rights.

Some complainants alleged that participants of the gathering used foul language and violated societal norms, police said.

Moreover, the letter added, businesses and shops in the commercial district would also be adversely affected if the gatherings continued in the area.

The letter further referred to provisions in the Freedom of Assembly Act passed in December 2012, which authorises police to prevent gatherings.

Police also urged the opposition party to provide a 36-hour notice prior to holding public gatherings.

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India should assist Maldivian people in changing the government, says Nasheed

Assistance in changing the government is the biggest relief the Indian government could offer the Maldives regarding compensation owed to GMR for the premature termination of its airport deal, former President Mohamed Nasheed has said.

Speaking at a rally at the reopened Maldivian Democratic Party (MDP) haruge (meeting hall) last night, the main opposition party’s acting president said he had learned that GMR would inform the Indian government of the situation.

“In my view, that relief is for that [Indian] government to work together with us, the Maldivian people, to change the government of the Maldives,” Nasheed said.

After 18 months of arbitration proceedings, a Singapore tribunal ruled last week that the concession agreement signed by the MDP government with the GMR-led consortium in June 2010 to manage and develop the Ibrahim Nasir International Airport (INIA) was “valid and binding.”

Former Attorney General Azima Shukoor – incumbent at the time of the termination – has this week maintained that the agreement was invalid under Maldivian law.

Nasheed yesterday contended that parties in the ruling coalition had fanned anti-Indian sentiment and incited anger among the public towards the country in their efforts to topple the MDP government, which he claimed were orchestrated by former President Maumoon Abdul Gayoom.

He also referred to anti-Indian rhetoric by senior officials of the current administration in the weeks leading up to the eviction of GMR in December 2012.

Former President Gayoom exploited nationalism and Islam – which are “accorded the highest place in the hearts of the Maldivian people” – to mislead the public with “lies”, Nasheed argued.

The MDP has also announced its intention to sue former President Dr Mohamed Waheed for defamation and damages caused by his administration’s unilateral termination of the concession agreement.

Sovereign debt crisis

The Singapore tribunal concluded that the Maldivian government and the Maldives Airports Company Ltd (MACL) were “jointly and severally liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement.”

The Bangalore-based company is seeking US$1.4 billion in compensation for “wrongful termination” of the contract – an amount that eclipses the Maldives’ annual state budget.

The compensation owed is due to be determined in the second phase of the arbitration process.

In the wake of the arbitration decision, Attorney General Mohamed Anil said that current administration would honour the verdict and expressed confidence that the government would not have to pay the US$1.4 billion sought by GMR.

“According to the agreement, [we] mostly have to compensate for the investments made. We said we do not have to pay the amount GMR has claimed,” Anil told reporters on Thursday (June 19).

President Yameen had predicted in April that GMR would only be owed US$300 million in compensation.

Nasheed, however, predicted last night that the compensation figure would not be “lower than US$800 million”, a fee which would plunge the Maldives into a sovereign debt crisis as the foreign currency reserves are currently below US$100 million.

Warning of an impending economic crisis, Nasheed called on the public to awake from its “slumber” and “consider what is happening to our country”.

Nasheed also accused former Attorney General Azima Shukoor – who had advised cancellation of the contract on the grounds that it was void ab initio (invalid from the outset) – of attempting to mislead the public concerning the arbitration ruling.

Shukoor has told newspaper Haveeru that the contract was illegal under Maldivian law.

“Even if the agreement is legit under Common Law, it does not necessarily concur that the agreement had also been made according to Maldivian laws.

“Nobody sitting as AG in Maldives can still pronounce the deal to have been done as per the Public Finance Act. No one can. That’s why I spoke against it even then,” she was quoted as saying.

She further argued that the termination of the agreement was justified as the domestic economy would have suffered “unimaginable losses”.

Nasheed however questioned the “literacy” of ministers in the “coup government,” noting that a legal process for terminating the contract through arbitration was laid down in the concession agreement.

Public-private partnership

Nasheed also defended the initial awarding of the contract – in a bidding process overseen by the World Bank’s International Finance Corporation (IFC).

As public debt was over 60 percent of GDP when the MDP government took office in November 2008, Nasheed said his administration believed loans should only be obtained for capital investments and infrastructure projects.

The government decided to privatise the airport in a public-private partnership as loans could be put to better use to “upgrade hospitals, improve schools and build water and sewerage systems,” he explained.

Referring to the Anti-Corruption Commission (ACC) ruling out corruption in the airport privatisation deal, Nasheed noted that the commission had concluded that the government would have received US$534 million from the consortium during the 25-year lease period.

Conversely, MACL would have made a profit of about US$254 million in the same period if the airport was operated by the government-owned company.

While MACL paid on average MVR96 million (US$6.2 million) a year to the government from 2005 to 2010, Nasheed noted that GMR paid MVR872 million (US$56.5 million) in 2011 as concession fees.

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MDP to sue former President Waheed for defamation, damages over GMR airport deal cancellation

The Maldivian Democratic Party (MDP) is preparing to sue former President Dr Mohamed Waheed for defamation and damages over his administration’s unilateral termination of the GMR airport development deal.

The main opposition party announced in a press statement on Thursday (June 19), following a Singapore arbitration tribunal ruling that the agreement was “valid and binding”, that it would pursue legal action against the former president and other responsible parties in both Maldivian and international courts.

“Dr Mohamed Waheed Hassan Manik and his coup partners had spread falsehoods concerning the GMR agreement, incited hostility and antagonism towards the MDP among the public, and attempted to defame this party,” the press statement read.

“And [they] plunged the nation into serious strife and discord, paved for the way for a coup, and toppled the first democratically elected government of the Maldives in a coup d’etat.”

The party contended that Dr Waheed’s administration was responsible for the compensation the Maldivian government would likely have to pay GMR – which would be “a financial burden the country cannot bear” – as well as loss of investor confidence, soured bilateral relations, and the damage to the Maldives’ international reputation.

The concession agreement signed with the GMR-led consortium in July 2010 to Ibrahim Nasir International Airport was beneficial to the Maldives, the statement continued, and its abrupt termination was unlawful.

“Void ab initio”

In November 2012, following a campaign spearheaded by Adhaalath Party President Sheikh Imran Abdulla calling for the nationalisation of the airport, Dr Waheed’s cabinet declared the concession agreement void ab initio – invalid from the outset – and gave the consortium a seven-day ultimatum to hand over the airport.

On December 7, the government took over the airport and evicted GMR, prompting the Indian infrastructure giant to seek US$1.4 billion in compensation for “wrongful termination” of the contract – an amount that eclipses the country’s annual state budget.

In a letter sent to the Bombay Stock Exchange last week, GMR explained that the arbitration tribunal concluded the Maldivian government and the Maldives Airports Company Ltd (MACL) were “jointly and severally liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement.”

The determination of liability – the first of two phases of arbitration – will now be followed by the determining of compensation owed.

In the wake of the arbitration decision, Attorney General Mohamed Anil said that President Abdulla Yameen’s administration would honour the verdict while expressing confidence that the government would not have to pay the US$1.4 billion sought by GMR.

“According to the agreement, [we] mostly have to compensate for the investments made. We said we do not have to pay the amount GMR has claimed. We always said we will have to pay compensation, and that this compensation has to come through the agreement,” Anil told reporters on Thursday.

President Yameen had predicted in April that GMR would only be owed US$300 million in compensation.

False pretext

Meanwhile, addressing supporters in Malé at an MDP maahefun (traditional celebratory feast ahead of Ramadan) Thursday night, former President Mohamed Nasheed argued that opposition parties misled the public to topple the MDP government in February 2012 with false allegations.

Opposition parties at the time had claimed that privatising the international airport posed a threat to Maldivian independence and sovereignty as well as Islam, Nasheed recalled.

The concession agreement with the GMR-led consortium was characterised as detrimental to the Maldives, he added, which was used as the pretext for the “coup” on February 7.

“Today it is becoming clear to us that the agreement was valid, and that it was terminated in violation of legal principles as well as international norms, in a way that causes serious damage to the Maldivian people,” Nasheed suggested.

Referring to AG Anil’s insistence that the compensation figure would not be too high, Nasheed accused President Yameen’s administration of continuing to mislead the public.

Nasheed stressed that the amount owed to GMR as compensation was not yet clear, noting however that the arbitration tribunal has ordered the government to pay US$4 million to the company to cover its legal expenses.

“The question we are asking now is, who will be paying those dollars? The dollars will be paid from our pockets. Legal action must be taken against those responsible for us having to pay these dollars,” he insisted.

“We have to seek compensation for the damage caused to our government. We know, we can see, that President Yameen’s government will not last. We know that President Yameen’s government does not have the support of the people. They cannot rule over all of the people in this country with the support of just 25 percent of the public.”

Changing the current government was “a duty and an obligation” for the MDP, the former president said, advising supporters not to despair.

“God willing, our courage will not flag. We will not be afraid and we will not back down either,” he said.

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