Tag: government

Coconuts and sea cucumbers main course for Maldives agriculture

President Mohamed Nasheed recognised World Food Day this week by inaugurating the Coconut Planting Programme in Noonu Ken’dhikulhudhoo and diving for sea cucumbers off the island.

Recalling his 2009 underwater cabinet meeting, which drew international attention to the topic of climate change, the President’s dive honored an initiative for sustainable aquaculture in the Maldives.

For the past two years, a researcher known as Kandholhudhoo Dombe has harvested sea cucumbers in Ken’dhikulhudhoo lake and sold them on the international market, namely to Singapore and Hong Kong, MP for the area, Ahmed Easa, told Minivan News.

“Dombe did research on sea cucumbers 20 years back, and finally, over the last few years the research has become successful,” said Easa. “We are exporting quite a lot of these, and I believe that with the government’s support we have a good opportunity to develop agriculture in the Maldives.”

Sea cucumbers are bottom-dwelling animals enjoyed most commonly in Asian countries. The species is said to have nutritional and pharmaceutical values.

The government yesterday signed a contract establishing a formal cooperative relationship between Masmeeru Investments and the Noonu Ken’dhikulhudhoo island council. Under the agreement, the lake will be used for 20 years to harvest sea cucumbers, although the lease price will be re-negotiated with the community every five years.

The project comes at no cost to the community, and Dombe is responsible for any environmental or legal damages incurred. Dombe is also required to contribute a minimum of Rf 50,000 (US$3200) annually towards community projects on the island.

The contract has also opened up job opportunities. Easa said that new staffing needs will provide between 10 and 20 jobs for locals seeking employment.

“The government wants to do this properly. Currently, the community is receiving Rf 4-5 million (US$260,000-325,000) in profits annually from the project. It’s time to invest more, and we want to protect both sides,” Easa said.

Approximately 6 tons of Maldivian sea cucumbers with a value of US$12 million are exported annually. They are currently selling for between US$130-$150 per kilogram on the international market. Locally, one cucumber sells for Rf3.

All in the timing

Easa said the initiative comes at an important time for the Maldivain economy. Although leading economic contributor tourism is expanding, the Maldives’ most profitable export industry, fishing, is entering troubled waters.

In an interview with Minivan News, Felivaru’s Deputy General Manager Mohamed Waheed observed that the Maldivian tuna catch has fallen from “very high” figures in 2005-2006 “to now less than it was in 1995-1996.”

“The main thing is that the pattern of fishing changed,” Waheed said at the time. “May to August is the low season, but we can usually still catch fish in the southern waters of the country. But this season it did not happen – we had hardly any fish in the north, and very little in the south.”

Competition from the foreign market is also cutting into local fishing profits. While fresh local fish costs between Rf18-20, the same fish tinned abroad and imported back to the Maldives costs Rf11.

Noting the struggles of the fishing industry, Easa called agriculture the next big economic contributor.

“Tourism and fishing are declining, we need another way to provide income. Sea cucumbers have a bright future. All you have to do is drop the seeds in a lagoon or a lake and let them grow for eight to twelve months,” he said.

During the events on Ken’dhikulhudhoo, President Nasheed noted that the government plans to open the fisheries sector, especially the aquaculture and mari-culture fisheries, for investors. He observed that the Maldives was “wasteful by neglecting the potential use of various products of the palm tree,” and needed to capitalise on its natural and man-made resources to meet daily requirements and generate income-boosting activity.

Overcoming obstacles

The US State Department’s profile of the Maldives notes that agriculture makes up a mere two percent of the nation’s GDP, and that the soil has traditionally supported only subsistence crops such as coconut, banana, breadfruit, papayas, mangoes, taro, betel, chilies, sweet potatoes, and onions.

The report also observes that the 2004 tsunami contaminated many groundwater reserves with salt water. The U. S. government recently contributed US$7.1 million towards improving water systems in Lhaviyani Hinnavaru and Haa alif Dhihdhoo islands.

According to Easa, hydroponic methods may overcome these obstacles.

“The government is doing a good job of informing the community on how to grow products in different systems,” he said. “At yesterday’s festivities, there were stalls instructing locals on how to grow vegetables and fruits at home using these methods.”

Organic farming methods could also yield positive positive results. Island Organics Maldives Pvt. Ltd., which was founded in 2007, supports the Maldives’ first organic farm on Baa Maarikilu.

Company founder Shahida Zubair told Minivan News that the farm uses local resources to fertilise crops by composting shredded leaves, branches and coconut husk, manure from chicken, seaweed from Thulhaadhoo and Hithaadhoo, and kitchen waste.

“We have been trying over four years to fertilise our poor soil organically and now we are successful because the soil is beginning to be alive with micro-organisms and mycorrhizal fungi and earthworms,” she said. Zubair indicated that the soil results can be achieved elsewhere and will improve crop growth.

The President also attended celebrations in Thoddoo of Alifu Alifu Atoll, where he inaugurated the tele-medicine unit at the Thoddoo Health Centre, and helped lay the foundation for new classrooms at Alifu Alifu Thoddoo School.

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

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

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

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

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

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

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

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

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

Parliamentary privileges

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

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

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

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

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

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

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

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

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

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

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

Civil society

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

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

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

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

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

“Symbolic”

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

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

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

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

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

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

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

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

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

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

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MNDF deserters sacked

The Maldives National Defence Force (MNDF) has sacked the 13 servicemen who deserted their posts last week, releasing them without honors.

MNDF has said the servicemen violated their legal agreement with the state, under which the servicemen trained and educated, reports Haveeru.

According to Article 32(b) of the Armed Forces Act, a serviceman is deemed absent without leave when he fails to report for work for 14 days without permission, or objects to report for work as requested by a superior during an emergency.

Officials have said court cases will be filed against some of the servicemen, Haveeru reports.

MNDF identified the sacked deserters as Corporal Ibrahim Azum, Staff Sergeant Hassaan Hameed, Lieutenant Kashif Hilmy, Private Rilwan Rasheed, Corporal Mohamed Imad, Lance Corporal Mohamed Abdu Rahman, Private Abdulla Shahfath, Private Mazin Mohamed, Private Mohamed Hameed, Private Shaamee Saeed, Lance Corporal Abdul Hameed, Private Mohamed Abdul Kareem and Sergeant Ali Ashraf.

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Dhiraagu re-registered as public limited company

Telecommunications company Dhiraagu has re-registered as a public limited company (Plc).

The company actively took the name Dhivehi Raajjeyge Gulhun Plc, however it will continue to use the brand name Dhiraagu.

Dhiraagu is one of the largest telecommunications companies in the Maldives, along with Wataniya. It is also one of the country’s most profitable companies.

On 24 August this year, the Maldivian government revealed a plan to turn over one-third of its shares in Dhiraagu to the public. The sale was expected to generate Rf 1.46 billion (US$95 million).

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Dhiraagu to lay “underwater highway” by June 2012

Dhiraagu, a major telecom company in the Maldives, expects to have its sub-marine communications cable installed by June 2012. This is the latest phase in its High-Speed Network Roll-Out Program.

As part of a US$28.2 million, five-year upgrade, Head of Networks Umayr Shafeeu said the cable will act as “an underwater highway,” connecting most Maldivian islands with improved bandwidth and high-speed internet access.

Shafeeu said the cable will be a significant change for the Maldives. “Connecting people is the single biggest and most difficult thing in the Maldives,” he said. “The country is very isolated, and although we have provided cell phone service it is not enough. Now, people need TV, high-speed, wireless–all these things require a lot of bandwidth.”

Recently, the Maldivian government was criticised by the opposition for releasing a third of its Dhiraagu shares to the public. “I think it’s essentially a good move,” said Dhiraagu Head of Marketing, Ahmed Maumoon. “Of course it’s a government decision, but from a personal point of view it’s good for the public to take part in a profitable and sustainable company.”

Maumoon said the public could gain confidence from the re-distribution of shares.

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Third of government’s Dhiraagu shares to be made public

The government has decided to release a third of its shares in local telcoms giant Dhiraagu to the public.

Dhiraagu a major player in the telecommunications, mobile and broadband internet markets of the Maldives, and is one of the country’s most profitable companies.

The government will make a third of its shares available to the public from October, to both local and foreign parties, reports Sun Online. Share prices have not yet been published.

The Maldivian government previously held 55 percent of Dhiraagu’s shares, while the British company Cable and Wireless held the remaining 45 percent. Upon winning the 2008 presidential election, President Nasheed’s government sold 7 percent of the shares to Cable and Wireless, reducing government shares to 48 percent and giving Cable and Wireless a controlling interest.

Minister of Economic Development and Foreign Trade, Mahmoud Razee, told Sun that studies would determine the prices and ratios of shares to be offered in local and international markets, and that the shares would be “affordable” to the average Maldivian.

Minister Razee also stated that as Dhiraagu was a strong company, people could benefit from buying its shares.

Opposition Dhivehi Rayyithunge Party (DRP) Deputy Leader Ibrahim ‘Mavota’ Shareef told Minivan News that the shares were valuable, but said he was not in favor of selling them.

“As far as [the DRP] is concerned, we do not believe this is a wise decision. Dhiraggu is a very profitable and well-managed company, and it makes a lot of money for the government. This is a time when we are undergoing an economic crisis, and we cannot afford to have these shares dispersed.”

Shareef said he thought most Maldivians would be interested in the shares, but said he doubted whether the majority of people would be able to afford them.

“The people who have the capacity to buy these shares are either foreign companies, or very rich Maldivians,” he said.

The government estimates that the sale of the shares will generate Rf 1.46 billion (US$95 million).

Shareef said the outcome would be obvious as soon as the shares hit the market.

“In the Maldives, we know who has the money. We know a majority of people don’t have the money. There must be some political reason for this decision, it’s not just an economic strategy,” he suggested.

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Government submits bill to establish mercantile court

The government has introduced a Mercantile Court bill to the parliament with the purpose of establishing a separate court with a separate seal and special jurisdictions to solve disputes involving business transactions in the Maldives.

Maldivian Democratic Party (MDP) MP Mohamed Musthafa submitted the bill to parliament on behalf of the government.

According to the bill, the Mercantile Court will consist of a Construction Division, Banking and Financial Division, Tourism Division, Investment Division, Goods and Services Division and Proprietary Division.

The bill also gives the Chief Judge of the Mercantile Court the powers to include any other divisions that the court finds that it lacks.

The bill will give the court jurisdiction to handle cases relating to business transactions concerning tourism, construction, international business, insurance, civil aviation, maritime, shipping, finance leasing, banking and finance, securities, fishing, company, partnership, professional liability and intellectual property rights.

The Mercantile Court will also handle contract, trade and service provision, consumer and service recipient protection in matters worth more than Rf 15 million (US$1 million).

According to the bill, the Mercantile Court has the jurisdiction to issue any sort of warrant or orders on its own initiative or upon a request made by a person to uphold justice or to prevent the judiciary from being misused.

The court’s bench will consist of seven judges, and significantly, a Muslim foreigner may be appointed as a judge at the court.

The bill comes following concerns aired recently by international organisations such as the International Committee of Jurists (ICJ) that the existing Maldivian judiciary lacked the independence and capacity to rule in cases involving complex civil proceedings.

Speaking to Minivan News in March after several weeks observing the operation of the Maldives’ Judicial Services Commission (JSC), former Australian Supreme Court Justice Professor Murray Kellam said that an impartial judicial system was a key factor in encouraging foreign investment and could have a direct and significant impact on the economy.

This was something that Singapore recognised 15 years ago, he said.

“They understood the value of a civil system that is incorruptible and competent. They spent a lot of money on their judiciary and Transparency International now rates their civil legal system as one of the best in the world.

“Singapore realised that one of the best ways to attract investment was to have a system whereby international investors knew they would get a fair go in domestic courts. If you look at the circumstances in other parts of the world where investors have no confidence in the judiciary, that deters investment and takes it offshore. They’ll go somewhere else.

Citing Adam Smith, considered one of the founders of modern capitalism, Kellam observed that “Commerce and manufacturers can seldom flourish long in any state which does not enjoy a regular administration of justice, in which people do not feel themselves secure in possession of their property, in which the faith of contracts is not supported by law.”

As a foreign investor, Kellam said, “you want to know that contact you enter into with domestic partners will be understood and enforced by courts if there is a breach. You want courts to judge you impartially – you don’t want to be discriminated against because you are a foreigner.”

“Secondly, it’s no good getting judgement if no there is enforcement – which is a major factor in developing countries. Sure you can get a judgement, but it’s not worth the paper it’s written on because there is no process for getting it enforced, and you can’t turn judgements into anything productive.”

Singapore had recognised this, and become not only a hub for foreign investment but also a regional hub for commercial arbitration, Kellam said.

“People from around the region will use Singapore as a place of law and business,” Kellam observed.

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MP Musthafa to submit resolution against maritime agreement with Sri Lanka

MP Mohamed Musthafa of the ruling Maldivian Democratic Party (MDP) has demanded the government withdraw a maritime agreement with the Sri Lankan government – an agreement to allow Sri Lankan vessels passage through Maldivian waters to to the Arabian sea – or face a binding resolution from parliament that will force the government to invalidate the agreement.

“The agreement is for opening Maldivian waters for Sri Lankan fisherman to steal our fish in Maldivian [territorial] waters,” Musthafa claimed. “The Sri Lankan government knows that the Maldivian waters are rich in fish and has many fishing points, that is why they have made this agreement.”

Musthafa said that Sri Lankan vessels would not normally have the fuel capacity to reach Arabian waters.

“Their intention is to steal our fish, but I cannot just stand aside and watch while they take away our fish, which is the only source of natural resource we have in abundance,” he said. “It is a right that has to be preserved for future generations.”

In response to reports in the Sri Lankan media that an agreement had been signed, Fisheries Minister Dr Ibrahim Didi told local media today that no such agreement had been signed.

However Press Secretary Mohamed Zuhair confirmed to newspaper Haveeru that a maritime agreement had been signed.

“The agreement abides by the International Maritime Law and no side can disregard that. If a vessel intends to make a crossing it has to inform the Sri Lankan Embassy in the Maldives 48 hours earlier to enable a lawful process,” Zuhair said.

Musthafa meanwhile said that he had confirmed the signing of the agreement.

“I cannot tell the media who signed it on behalf of the Maldives, but I can say that the Foreign Minister will be aware of this,” he said, adding that Dr Didi’s remarks were made because he was unaware of the agreement.

“I will see how the government decides to act upon this issue and will submit the resolution if it does not withdraw this agreement,” he said.

Sri Lanka’s Daily Mirror reported that the agreement will allow Sri Lankan fishing vessels to cross Maldivian territorial waters en route to the Arabian Sea.

Local news outlet Sun Online meanwhile reported the head of the DRP’s fishermen’s branch Ali Solih condemned the deal as “an insult to Maldivian fisherman” and “a dangerous deal,” since the Maldives did not have the capacity to monitor illegal fishing.

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Taxing property is “haram” in Islam, claims Salaf NGO

Religious NGO Jamiyyathul Salaf has claimed that imposing taxes on a Muslim’s property without his or her consent is haram (forbidden) in Islam.

“Without doubt, using a person’s property or profiting from the property without the consent of the owner is haram in Islam,” the NGO said today in a press release. “Only the compulsory Zakat (alms for the poor) portion can be taxed from a Muslim’s property.”

Salaf cited Surah 2:188: “And do not consume one another’s wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you [to] consume a portion of the wealth of the people in sin, while you know [it is unlawful].’’

In addition, the Salaf press statement referred to Prophet Mohamed’s (pbuh) final sermon, in which he said, “O People, just as you regard this month, this day, this city as Sacred, so regard the life and property of every Muslim as a sacred trust.  Return the goods entrusted to you to their rightful owners.”

Salaf noted that Islam protected personal property “to an extent that is not found in any other religion.”

The religious NGO contended that “formulating a law and taking people’s property whatever name it is done under is for a certainty haram.”

“Jamiyyathul Salaf would remind the Speaker of Parliament and all MPs that those who formulate such laws and those who assist them will without a doubt have to bear responsibility before Almighty Allah,” the Salaf statement warned.

It adds that there is consensus in the Islamic ummah (community) that “stealing property by compulsion with laws on taxes, duties and pension imposed on a Muslim’s property is definitely haram.”

Salaf warned that those who claimed personal property “for entertainment or as a sport” would face their old age with “no one to care for them.”

If the state believed that there was no other way to manage its finances but to “take taxes and duties from the halal income of Muslim citizens,” Salaf said that it implied “corruption and a failed economic policy” and was the sign of “a philosophy of enslavement.”

Press Secretary for the President Mohamed Zuhair observed that there were many civilised Muslim nations that had introduced direct taxation as well as import duties.

“Salaf should refer to the parliament on this issue, because the parliament cannot make any law against the tenets of Islam,” Zuhair suggested. “I believe that parliamentarians will keep to the tenets of Islam in drafting any law.”

Zuhair added that as Islam was the most modern of the three monotheistic religions, he did not believe taxation could be haram.

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