Tag: government

President Waheed meets former Malaysian Prime Minister Dr Mahathir Mohamed

President Dr Mohamed Waheed Hassan Manik has met with former Malaysian Prime Minister Mahathir Mohamed during a private visit to the country.

According to the President’s Office, discussions on the close bilateral relations between the Maldives and Malaysia took place during the meeting.

The President is currently away on an ongoing private visit to Malaysia.

President Waheed invited Dr Mahathir to make a visit to the Maldives at a mutually convenient time, the President’s Office added.

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MVR 15.3 billion state budget might not last until end of next year: Finance Minister

Finance Minister Abdulla Jihad has claimed that the MVR 15.3 billion (US$992 million) state budget approved by parliament this week might not last until the end of 2013 – requiring supplementary finance for the state.

Parliament reduced Jihad’s proposed budget of MVR 16.9 billion (US$1 billion) by more than MVR 1 billion (US$64.8) before passing it on Thursday (December 27).

Jihad told local media today that a supplementary budget may have to be implemented at some point next year should the funds allocated by parliament not be enough to cover expenses.

Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Mausoom today told Minivan News that concerns expressed by Jihad concerning the budget were “reasonable” given that the Finance Minister had originally requested a larger figure to see out state spending for the year.

“For the government to function properly I would not be surprised if they need the supplementary budget to be introduced. If it is, I should imagine it will be in the last quarter of 2013, after the election,” said Mausoom.

Earlier this month, Parliament’s Budget Review Committee had proposed MVR2.4billion (US$156 million) worth of cuts that some of its members claimed had been made had largely by reducing “unnecessary recurrent expenditures” within the budget.

However, the budget was eventually passed with MVR 1 billion (US$64.8) in cuts by 41 votes in favour, 28 against and no abstentions. The opposition Maldivian Democratic Party (MDP) MPs voted against the budget.

Jihad today told Sun Online that with services being provided by the government having doubled, it would become more difficult for the government to manage its budget.

“Because the budget is reduced, it will become difficult to manage expenses at a certain point. We think that a supplementary budget has to be introduced,” he was quoted as saying.

Due to the amendments in the budget made by the parliament, Jihad said the state had been forced to reduce spending. According to the Finance Minister, talks have already taken place with various offices to reduce their budgets.

“We don’t have any other choice. Due to the amendments brought into areas that were planned for further revenue generation, we have to reduce the expenses,” Jihad told Sun Online.

Jihad, State Finance Minister Abbas Adil Riza and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at time of press.

Budget amendments

The estimated MVR 15.3 million budget was passed by parliament with eight additional amendments at Thursday’s sitting.

Amendments voted through included the scrapping of plans to revise import duties on oil, fuel, diesel and staple foodstuffs, as well as any item with import duty presently at zero percent.

An amendment instructing the government to conduct performance audits of the Human Rights Commission and Police Integrity Commission and submit the findings to parliament was passed with 53 votes in favour, ten against and four abstentions.

Amendments proposed by MDP MP Ali Waheed to shift MVR 100 million (US$6.5 million) to be issued as fuel subsidies for fishermen and MVR 50 million (US$3.2 million) as agriculture subsidies from the Finance Ministry’s contingency budget was passed with 68 votes in favour.

A proposal by Dr Maussom to add MVR 10 million (US$648,508) to the budget to be provided as financial assistance to civil society organisations was passed with 57 votes in favour and three against.

Budget cuts

The Budget Review Committee approved cuts of MVR 1.6 billion (US$103.7 million) to Jihad’s proposed state budget of MVR 16.9 billion, however added MVR 389 million (US$25.2million) for infrastructure projects on islands.

On the measures proposed by the Finance Ministry to raise revenue, the committee approved revising import duties, raising the Tourism Goods and Service Tax (T-GST) from eight percent to 12 percent in July 2013, increasing airport service charge from US$18 to US$25, leasing 14 islands for resort development and imposing GST on telecom services.

The Finance Ministry had however proposed hiking T-GST from 8 to 15 percent in July 2013 and raising airport service charge or departure tax from US$18 to US$30.

Rightsizing the public sector to reduce deficit

Aidst proposals to balance state spending during 2013, recommendations to reduce the public sector wage were made by the Auditor General and submitted to parliament prior to the budget being passed.

Auditor General Niyaz Ibrahim observed that of the estimated MVR 12 billion (US$778 million) of recurrent expenditure, MVR 7 billion (US$453.9 million) would be spent on employees, including MVR 743 million (US$48 million) as pension payments.

Consequently, 59 percent of recurrent expenditure and 42 percent of the total budget would be spent on state employees.

“We note that the yearly increase in employees hired for state posts and jobs has been at a worrying level and that sound measures are needed,” the report (Dhivehi) stated. “It is unlikely that the budget deficit issue could be resolved without making big changes to the number of state employees as well as salaries and allowances to control state expenditure.”

Following the report, the The Budget Review Committee made cuts to overtime pay (50 percent), travel expenses (50 percent), purchases for office use (30 percent), office expenditure (35 percent), purchases for service provision (30 percent), training costs (30 percent), construction, maintenance and repair work (50 percent) and purchase of assets (35 percent).

The committee estimated that the cuts to recurrent expenditure would amount to MVR 1 billion (US$64.8 million) in savings.

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Department of Immigration and Emigration transferred to Defence Ministry

Responsibility for overseeing the Department of Immigration and Emigration has been switched to the Ministry of Defence and National Security.

According to the President’s Office, the decision to transfer the department to within the mandate of the Ministry of Defence was taken to make administration of the country’s immigration system more efficient.

The Immigration department had previously been operated under the Ministry of Home Affairs.

Immigration Controller Dr Mohamed Ali was not responding to calls at the time of press.

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Nexbis files court case over Maldives contract termination

Nexbis has filed a case with the Maldives Civil Court claiming that the People’s Majlis lacks the jurisdiction to order the government to terminate the IT company’s Border Control System (BCS) contract.

The lawyer representing the Malaysia-based mobile security provider, Ismail Wisham, revealed that the case was filed at Civil Court on Tuesday (December 25).

Wisham also stated that a request had been filed with the court to issue an order that the government delay parliament’s decision to cancel the contract until outstanding several ongoing trials in the country concerning the contract were resolved.

Earlier this week, parliament voted unanimously to instruct the government to terminate the border control project agreement with Nexbis.

All 74 MPs in attendance voted in favour of a Finance Committee recommendation following a probe into the potential financial burden placed on the state as a result of the deal.

Speaking to local media on Tuesday (December 25), Home Minister Dr Mohamed Jameel Ahmed claimed the government would respect parliament’s unanimous decision to halt the BCS project agreement with Nexbis.

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Umar Naseer may consider one of former President Gayoom’s children as presidential running mate

Progressive Party of Maldives (PPM) Interim Deputy Leader Umar Naseer has said he may consider choosing one of former President Maumoon Abdul Gayoom’s children as his running mate should he win the party’s upcoming presidential primary.

Speaking to local media after an event at Ghiyasuddin School in Male’ held to try and recruit volunteers for his campaign, Umar said that rival candidate Abdullah Yameen also “has the option” to be his running mate.

“There is the possibility that I might give the option to one of Maumoon’s children. The possibility to form a coalition and choose a running mate from that coalition is also an option,” he said.

“Three of Maumoon’s children are of eligible age. So I might also choose to give it to the most competent one amongst them,” Umar told Sun Online.

Out of Gayoom’s children, only Farish Maumoon, Dhunya Maumoon and Yumna Maumoon meet the requirements set out by Article 112 (c) of the Madives constitution, stating that a person has to be at least 35 years of age to be elected as president or vice president, according to the report.

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Nexbis to challenge termination of Border Control System project

Additional reporting by Ahmed Naish.

Nexbis has said it will challenge parliament’s decision instructing the government terminate a Border Control System (BCS) project signed under the previous administration.

The Malaysia-based IT group has said it will seek a court injunction preventing any attempts to cancel the agreement whilst court hearings over the contract were still ongoing.

Speaking to local media on Tuesday (December 25), Home Minister Dr Mohamed Jameel Ahmed claimed the government would respect parliament’s unanimous decision to halt the BCS project agreement with Nexbis.

Dr Jameel told local newspaper Haveeru that it was “difficult to come up with an exact figure at present” for the level of compensation the government would potentially have to pay Nexbis after prematurely terminating a contract with the company.

The home minister was not responding to Minivan News at the time of press.

Yesterday’s vote on the deal was taken after Parliament’s Finance Committee claimed there had been foul play in the agreement signed between Nexis and the Maldives immigration department.

Prior to the parliamentary vote, an official spokesperson for Nexbis told Minivan News on December 23 that the company would “challenge” any decision by the Majlis to halt the BCS contract while court hearings were continuing in the country.

“We are asking the Supreme Court to intervene with the decision as we have come to be aware that the contract cannot be legally terminated if there is an ongoing legal case. Presently we have legal cases in the Civil Court, the High Court and the Supreme Court,” the Nexbis source added.

Meanwhile, Director of the Department of Judicial Administration Ahmed Maajid today (December 26) confirmed that to his knowledge, Nexbis was currently involved in ongoing cases within the Maldives’ judicial system.

Maajid added that on a legal basis, the contract between Nexbis and the government could not be terminated until all proceedings involving the company were concluded.

“There is a provision in the Judicature Act under Law 22, 2010 that basically states no public body can terminate a contract with a company that is involved in judicial proceedings in the courts,” he said,

“The government has made their decision based on the the Majlis’ vote. But the legality of that decision can be challenged at the Civil Court if Nexbis submit a case. They have a constitutional right to do so.”

The MVR 500 million (US$39 million) BCS project moved ahead this year after a series of high-profile court battles and delays that led Nexbis to last year threaten legal action against the Maldivian government should it incur losses for the work already done on the project.

The Malaysia-based mobile security provider has come under scrutiny by political parties who claim that the project is detrimental to the state, while the Anti-Corruption Committee (ACC) has alleged corruption in the bidding process.

Nexbis has denied any allegations of wrong doing within its contract.

Unanimous vote

Amidst these concerns, parliament voted unanimously yesterday (December 25) to instruct the government to terminate the border control project agreement with Nexbis.

All 74 MPs in attendance voted in favour of a Finance Committee recommendation following a probe into the potential financial burden placed on the state as a result of the deal.

Presenting the Finance Committee report to the floor, Chair MP Ahmed Nazim explained that the “main problem” flagged by the ACC was that the tender had not been made in accordance with the documents by the National Planning Council authorising the project.

The documents were changed to favour the chosen party and facilitate the deal, Nazim said, which the ACC considered an act of corruption.

Regarding allegations of corruption within the contract, the Nexbis source told Minivan News that the company is “systematically denying” any allegations of corruption, adding that if there was any foul play within the contract “we were unaware of it”.

Nazim stressed that the Finance Committee inquiry focused on the financial burden on the state and had discovered that the government would have to pay US$166 million to Nexbis over the course of the agreement.

Conversely, he claimed that the Maldivian government would only earn US$8 million as royalties during the agreement period.

Nazim noted that the Finance Ministry informed the committee that it was yet to receive a copy of the agreement two years after it was signed.

The Finance Ministry has also not included any funds in either the 2012 or 2013 budgets to pay for the project.

Nazim also accused the then-attorney general of “negligence” in the deal as he had not provided an official legal opinion to the Immigration Department in writing.

Recommendations by the former attorney general to amend the agreement could not be found in the documentation, he added.

Nazim said the Finance Committee concluded therefore that the best course of action would be to terminate the Nexbis agreement and install a different border control system at the earliest date.

Following the Finance Committee decision, the budget review committee has included a recommendation compelling the government to terminate the Nexbis agreement.

The Finance Committee also recommended terminating the agreement over concerns it contained clauses to waive taxes to the company, Nazim said. He noted that imposing or waiving taxes was a prerogative of parliament under article 97(d) of the constitution.

During the ensuing debate, MPs from both the formerly ruling Maldivian Democratic Party (MDP) and government-aligned parties spoke in favour of terminating the agreement.

Along with the decision to terminate the Nexbis deal, the government of President Dr Mohamed Waheed Hasaan Manik late last month also opted to void an airport development agreement with India-based infrastructure group GMR.

The GMR contract, a 25-year agreement to develop and manage an entire new terminal at Ibrahim Nasir International Airport (INIA), was the single largest foreign investment project in the country’s history.

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Finance minister claims “cash flow” issues behind delay in clearing Male’ City Council utility debts

Finance Minister Abdulla Jihad has claimed that a delay in clearing debts owed to various utility providers by Male’ City Council (MCC) is the result of a “cash flow” issue facing his department.

On Saturday (December 22), the MCC revealed that it owed an outstanding electricity bill of MVR 3.9 million (US$ 254,569) to the State Electricity Company Limited (STELCO).

A further MVR 400,000 (US$ 26,109) is also owed by the MCC to telecommunication service provider Dhiraagu, who earlier this week disconnected all telephone and internet services in the council’s offices.

Finance Minister Jihad yesterday (December 24) blamed “cash flow” issues for his ministry’s failure to clear the MMC’s debts.

“We are in the process of relieving the funds, however we have had some cash flow issues and that is why there has been a delay in the clearing the MCC’s debt.

“We are working to clear the debt in the next couple of days,” Jihad told Minivan News.

Asked yesterday whether the government lacked the money to repay the bills, Jihad replied: “The government has to manage the cash flow, they make the payments. There is a cash flow issue.”

MCC Mayor ‘Maizan’ Ali Manik Manik previously claimed that the outstanding payment owed to STELCO by the MCC threatens to leave all council owned properties and utilities – including street lights – without power.

Speaking to Minivan News today (December 25) Manik said that he had personally told members of the Finance Ministry to make a “settlement” with all the utility companies that are currently owed money.

“I told the ministry that if they don’t have the cash flow to pay these debts, then they should speak to Dhiraagu and STELCO and make a settlement,” he said.

“Even if it means saying that they will be paid in a month’s time, even a year’s time, anything is better than the current situation. I have a feeling we are going to be in darkness after December 27.”

Mayor Manik has previously told Minivan News on December 22 that MMC had filed all necessary documents and paper work with the finance ministry in order for the outstanding bills to be paid.

He claimed that having spoken to Jihad about the issue at the time, the finance minister had assured him that both the STELCO and Dhiraagu bills would be paid by his ministry on December 23.

However, STELCO Media Co-ordinator Abdulla Nazir revealed that as of December 23, no money had been deposited by the finance ministry.

Dhiraagu disconnection

On Thursday (December 20), local media reported that Dhiraagu had disconnected all phone and internet services it provided to the MCC due to unpaid bills.

MCC member Ibrahim Shajau claimed that over MVR 400,000 (US$ 26,109) is owed by the council to Dhiraagu, alleging that the Finance Ministry had failed to release the funds.

“We have sent all relevant documents to Finance Ministry. It’s up to [them] to pay the money. Dhiraagu said that Finance Ministry had not paid the money,” he told Sun Online.

Dhiraagu Marketing and PR Ibrahim Imjad Jaleel told local media that the services were disconnected after advising the council on numerous occasions to pay their bills.

“We disconnected the services today after giving them time even today to pay the bills after the offices opened. We had to cut off our services after their failure to pay any amount after several days of discussions. We are trying with our customer even now, to find a way to resume the services,” he said.

STELCO debt

Meanwhile, STELCO Media Coordinator Abdulla Nazir revealed that MCC had a “long history” of outstanding payments, adding that the stated figure of MVR 3.9 million was only part of the overall debt owed to the company.

“STELCO has received no money so far. There are many months of outstanding debt from MCC, more than the MVR 3.9 million we have asked for,” Nazir said. “While we have received no statement or payment from the Finance Ministry, we have received a letter from MCC dated December 19. They said their bills have been sent to the Finance Ministry, and they have asked the ministry to settle the outstanding payments.”

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“No choice” but to wait, Maldivians facing overnight queue for India medical visas

Maldivian citizens queuing outside the Indian High Commission in Male’ to obtain visas to travel for medical treatment in India have allegedly been told they must now wait until December 26 before any further paperwork can be processed.

This morning (December 24) individuals waiting outside the Indian High Commission building told Minivan News that they have “no choice” but continue to wait, after it was allegedly announced that no visas will be processed on December 25.

Earlier this month, the High Commission of India forewarned Maldivians that it would now take one week to process visas required to travel to India.

At 2:00am this morning (December 24),  Minivan News witnessed at least 30 Maldivians queued in the rain, waiting for the Indian High Commission building to open.

Male’ inhabitant Ihusaan Jaufar claimed he had been waiting for three days to pick up a medical visa so that an ill family member could receive treatment in India.

“We have been doing shifts so that we do not lose our place in the queue. Before we would make trips to India maybe ten times per year and it was easy, now it has become very difficult.

“They allow 53 passports to be processed each day, but some people are carrying four passports including their own, so rather than 53 people who have queued getting their visas, instead maybe only 10 or 12 are receiving their visas,” Jaufar said.

Maldivian nationals do not require a visa to enter India and stay for 90 days, however they are prohibited from revisiting the country within two months. Patients who need to return to India for health reasons then have to apply for a medical visa.

The Ministry of Foreign Affairs has advised Maldivians to try to obtain the relevant visas prior to their travel, after the Indian High Commission announced that visa-free travel facilities to India are valid for tourism purposes only.

Travel for medical, business or official reasons will require a relevant visa for those purposes, the Indian High Commission has stated.

At 10:30am today (December 24) the 30-strong queue still remained, however some within the queue had alleged they has been told by Indian High Commissioner D M Mulay that they would now have to wait until December 26 for their visas.  The high commission has denied any such claims were made.

Ahmed Didi, a Maldivian waiting in the queue today spoke of his frustration and concern for his family currently living in India.

“I have been waiting to get home for over a week and i’ve been in this queue for the last three days. I’m going to have to ask my friends if we can do shifts in queue so that we do not lose our place. It’s [the queue] going to be huge after 48 hours.

“It is frustrating as I need to get home. My wife is currently looking after my 74-year-old father who is paralysed and my son. She is struggling to cope without me there to help,” Didi said.

According to Didi, the High Commission is issuing tokens to people who can then have their visas processed. Didi claimed that for the last three days only 40 tokens have been issued per day, however this has now been increased to 53.

“The problem is that some people in the queue are holding multiple passports for friends and family. Fortunately the [Indian High] Commission has limited the number of passports per person to just three,” he said.

Didi claimed that earlier in the morning, Mulay had announced to the queue that he was working to resolve the issue and that it came down to a lack of cooperation from the Maldives government.

A source from within the Indian High Commission denied these claims, adding that “no such comment had been made”.

Foreign Ministry Spokesman Ibrahim Muaz Ali also denied allegations of conflict between the government and the Indian High Commission, stating that the foreign ministry was doing its best to help those waiting for a visa.

“There is no lack of cooperation between the Indian High Commission and the Foreign Ministry, we are having regular meetings to discuss the [visa] issue.

“We have a separate desk within the Indian High Commission building that is helping to deal with Maldivian citizens looking to obtain visas,” Muaz said. “We are trying to prioritise based on medical needs. For example, yesterday we had a man come through who needed urgent treatment for cancer and we were able to speak with the Commission to have his medical visa processed quicker.”

Despite the claims, Former President Mohamed Nasheed has alleged in local media today that the current approvals required for medical travel to India were a direct response to the Maldives government’s decision to terminate a sovereign agreement to develop Irahim Nasir International Airport (INIA).

India-based infrastructure group GMR had signed an agreement with Nasheed’s government back in 2010 to develop and manage INIA over a 25-year period. The government of Dr Mohamed Waheed Hassan Manik opted late last month to declare the agreement void and gave the developer seven days to leave the country.

Visitor numbers

Times of India (TOI) reported that a total of 54,956 Maldivians visited the country in 2008, 55,159 in 2009 and 58,152 in 2010.

S Premkumar, Chief Exective Officer of  (CEO) Apollo Hospitals – a major hospital chain based in Chennai –  was quoted in the TOI as claiming that  some 300 Maldivian nationals were treated in Chennai hospitals each year. “They usually come for neurosurgery, and orthopaedic, cardiology and robotic gyneacology procedures,” he told the publication.

On December 20, First Secretary of the High Comission S C Agarwal, told local media that the change in procedure was not new, adding that there had only been a change in the “interpretation” of the agreement signed between India and Maldives in 1979.

“The agreement that grants 90 days free visa for Indians and Maldivians came into effect in 1979. But we have been really flexible in the interpretation of the agreement.

“We have not been questioning the purpose of travel of Maldivians to India. But unfortunately the reverse is not true. The Maldivian authorities have enforced the agreement in the strictest of terms. Nearly 50 Indians are denied entry, detained and deported every year,” Agarwal was quoted as saying in newspaper Haveeru.

Agarwal told local media that India has now “agreed” with the interpretation of the 1979 agreement in accordance to that of the Maldives government.

“We have been flexible in implementing the agreement since 1979. Such flexibility has not been reciprocated by Maldives,” he added.

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Maldives cabinet marks 80th anniversary

The Maldivian cabinet marked its 80th anniversary yesterday (December 22).

Formed in 1932, the first cabinet portfolios included a total of twelve ministries, including the prime minister’s office, the defence ministry and justice ministry, the President’s Office has said.

In the last 80 years, the Maldives’ cabinet has been led by by Prime Minister Mohamed Fareed, Foreign Minister Hassan Fareed, Prime Minister Mohamed Ameen, Prime Minister Ibrahim Faamdheyri Kilegefaanu, Ibrahim Nasir as Prime Minster and then President, Prime Minister Ahmed Zaki, President Maumoon Abdul Gayoom, President Mohamed Nasheed and President Dr Mohamed Waheed Hassan.

According to the President’s Office, notable cabinet figures in the Maldives political history include include Mohamed Amin Didi, who was the youngest ever cabinet minister at 22.

Meanwhile, former President Gayoom was noted as the longest serving cabinet minister,while Moomina Haleem was the first female cabinet minister appointed as Minister of Health on January 6, 1977.

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