Club Faru resort to be closed within two months: Tourism Minister

Tourism Minister Ahmed Adheeb has revealed that the Club Faru resort is to be closed down within two months after the government took over the property this weekend.

On Saturday (January 5), the Ministry of Tourism, Arts and Culture said it had assumed control of Club Faru after the resort’s operators were said to have failed to hand over the property following the expiry of their lease agreement.

Adheeb told Minivan News that the resort would be closed as part of the government’s plans to begin the second phase of “reclaiming” Hulhumale’ this year.

“The resort is to be operated by a government company for two months and it will then be closed down and reclaimed,” he said.  “It was a seven year lease that expired on November 15. Now the government has decided to reclaim that part of Hulhumale’,” he said today.

The proposed closure has been described as “interesting” by the former secretary general of the Maldives Association of Tourism Industry (MATI), who expressed hope that the government would treat all resort operators equally going forward.

Adheeb today maintained that his ministry would not favour certain resort operators over others in terms of their treatment.

According to the tourism minister, the government offered other companies the chance to temporarily manage Club Faru after the first phase of reclaiming Hulhumale’ was completed.

However, Adheeb claimed that after the expiry of a seven-year lease on November 15, 2012, the resort’s operators had gone to court on two separate occasions to try and extend their lease.  He added that the operators had been unsuccessful on both attempts to obtain an injunction against the government.

Despite the lease termination deadline expiring last year and the subsequent takeover on Saturday, Club Faru’s website – when accessed at the time of press – displayed a pop-up sign dismissing rumours that the resort will be closed or temporarily shut down for renovation between November 1 to April 31.

“Attention!!! Against different phrased rumours that seem to circulate in the internet and in certain travel agencies: Fihalhohi and/or Club Faru will neither be closed nor will there be any renovation from November 1 to April 31 that could lead to disturbance. This info is valid for Fihalhohi and Club Faru. Both Islands continue as is,” the pop-up statement reads.

Management at Club Faru resort were not responding to calls from Minivan News at time of press.

Speaking to local media, Adheeb claimed that the handover had gone “smoothly” when he visited the resort yesterday (January 5).

“Everything went quite smoothly. The Finance Ministry’s financial controller, tourism’s permanent secretary, and legal officials of the ministry along with me came to the resort and took over,” he said.

“We will oversee the operations of the island as the [tourism] ministry has reclaimed ownership of this resort,” Adheeb told local newspaper Haveeru.

Local media reports have claimed that the government had assumed ownership of the island property while tourists were still holidaying at the resort.

According to Adheeb, an Italian company called Club Med had originally invested in the resort. However, after Club Faru was designated part of the Hulhumale’ reclamation plan seven years ago, Club Med was given another island as compensation.

Local media reported that the government leased the island for a period of five years on November 16 1995, after a delay in the second phase of reclaiming Hulhumale’. Following the expiry of the five year lease, it was then extended on an annual basis.

All resort operators treated the same: Adheeb

When contacted today, Former Secretary General of MATI ‘Sim’ Mohamed Ibrahim described the Club Faru handover as “interesting”, adding that no operators should be favoured when it comes to breaching legal contracts.

“While it is important that legal contracts are kept to and enforced, it is also important that individual resort operators are treated the same and not differently.  It appears that Club Faru has taken precedence over others, especially as Hulhumale’ is earmarked for development,” Sim told Minivan News.

Responding to the comments, Adheeb said that the tourism ministry did not favour any resort operator over another.

While there are no other resorts in the Maldives where an operating licence has been cancelled, Adheeb claimed that when dealing with rent payments, each resort will always have to pay or face a termination notice.

The tourism minister claimed that when he first took up his position following February’s controversial transfer of power, there were 12 resorts found to be not paying rent at the time. However, through flexibility on the interest rates, he maintained there were now “no resorts not paying rent”.

“We are not tolerating resorts who do not pay rent, any operating resort has to pay. Those who are not paying already have the termination notice. This culture has to go, by the end of this year all resorts will be paying and it will become a more stable industry,” Adheeb said.

At a press conference held on December 31, 2012, Adheeb said that resort operator Yacht Tours had been sent termination notices for both Alidhoo and Kudarah resorts, with a seven day period for handover.

He added that while the ministry had come to a payment system agreement with a number of other companies, Yacht Tours had sent no official written communication in regard to the payment of outstanding rents.

Following the termination notice, Yacht Tours, a company owned by opposition Maldivian Democratic Party (MDP) MP Abdulla Jabir, said it will take the government to court over the dispute.  The company has alleged that the Tourism Ministry had failed to responded to correspondence it had sent on the matter of rent payments.

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Police commence search for suspect in Hajj pilgrimage payment “fraud”

The Maldives Police Service has commenced a search for a 42-year old Hulhumale’-based businessman wanted for questioning on suspicion of fraudulently collecting funds from Hajj pilgrims.

According to local media, Ismail Abdul Latheef, head of the Maleesha Hajj and Umra Group is under investigation by police for alleged fraud concerning payments received by his company for this year’s Hajj Pilgrimage.

Police have said that attempts are ongoing to locate and question Latheef, who is suspected of having fled the country, the Sun Online news service has reported.

Authorities have claimed that 52 complaints have so far been received over alleged payments made to the Maleesha Hajj and Umra Group.

Police Spokesperson Sub-Inspector Hassan Haneef was not responding to calls at the time of press.

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Defence minister confirms 50 Hulhumale’ flats to be awarded to officers

Defence Minister Mohamed Nazim has announced that 50 flats on the island of Hulhumale’ will be awarded to military officers alongside financial assistance to help them keep up with payments, local media has reported.

Citing a transcript published on the Maldives National Defense Force (MNDF) website, newspaper Haveeru reported that a committee headed by Brigadier General Abdulla Shamal will oversee the awarding of the properties to candidates from a “pre-set criteria”.

Officers from all ranks are expected to be included in the scheme, which is also expected to provide assistance to officers facing difficulties in meeting the required payments on schedule, according to the report.

Nazim reportedly added that the government had already arranged to cover down payments on the fifty properties in order to facilitate awarding of the housing.

He also claimed that a nine storey building within existing military quarters had also been constructed for officers.  A budget has also been agreed with the government for the further renovation of buildings already used for military purposes, Nazim claimed in the transcript.

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MDP denies involvement in Hulhumale’ demonstration against VP, pledges commitment to talks

The Maldvian Democratic Party (MDP) said it remains committed to ceasing street demonstrations in order to facilitate talks with government-aligned parties, playing down fears that protests by a number of “individuals” against the vice-president on Thursday could derail negotiations.

MDP spokesperson and MP Hamid Abdul Ghafoor claimed today that the party had not been behind demonstrations held Thursday (August 9) on the island of Hulhumale’ during a visit by Vice President Mohamed Waheed Deen. Ghafoor added that there had been no official communication from the government so far following these demonstrations with regard to stopping talks between the country’s political leaders.

Since the controversial transfer of power that brought President Dr Mohamed Waheed Hassan into office on February 7, former President Mohamed Nasheed has alleged he was removed from office in a “coup d’etat”. The allegations have lead to months of political uncertainty across the nation, resulting last month in the indefinite suspension of parliament.

Less then 24 hours after welcoming the MDP’s decision to suspend ongoing street protests against the government to “facilitate meaningful political dialogue” with the coalition government, the President’s Office yesterday told local media it might reconsider participation in talks following demonstrations held Thursday (August 9) in Hulhumale’.

President’s Office spokesperson Abbas Adil Riza was quoted by the Sun Online news service as saying that the government’s decision to participate in fresh talks had “to be reconsidered”, alleging the MDP had been directly involved in the protests that reportedly saw offensive language used against the vice president.

Both Abbas and President’s Office Media Secretary Masood Imad were not responding at time of press.

Thursday’s demonstrations were directly targeted at a visit by Vice President Deen, who was in Hulhumale’ to attend the opening ceremony of the State Trading Organisation (STO)’s new futsal field.

Police spokesman Hassan Haneef told Minivan News today that eight people had been arrested in relation to the incident, with seven having been released at the time of press. Haneef said that the suspect’s had been arrested over charges including blocking the vice-president’s car, and “disobeying and disturbing” police as they performed their legal duties.

However, MDP MP Ghafoor claimed that the party had not been involved in organising demonstrations against the vice president, contending that the reaction of Abbas in local media had been a “knee-jerk response to a minor incident”.

“I have read comments about this in the media, but we have not heard anything official from the government on [stopping talks],” he said. “It appears that a sporadic incident has been used as an excuse by some to criticise us because of a couple of angry activists. We have stopped our street demonstrations as we promised, but individuals will still get upset in the current political environment.”

Ghafoor added that he believed it was unlikely that the actions of independent demonstrators would set back wider-efforts to attempt to find a resolution the present impasse between the MDP and government-aligned parties.

“This is not a culture we have had before 2008, but people are now free to come out and speak their mind about concerns they have,” he said. “This just appears to be people being over-sensitive regarding minor incidents.”

Demonstration concerns

The unity government’s insistence on an end to the MDP’s continued demonstrations before discussions could resume had been outlined in the agenda of the all-party roadmap talks. Of a six point agenda agreed upon by participants, public order and stability were one of the first points to be addressed.

However, during the most recent round of all-party talks in June, the list of demands presented to the MDP by government-aligned groups were claimed to be lacking in seriousness. The 30-point list presented to the opposition party included demands to desist from using “black magic” and “erotic tools” as well as walking in groups of more than ten.

Since that time, the MDP has continued regular demonstrations, particularly in the capital Male’, where consecutive nights of protests in July resulted in violent clashes between protesters, security forces and journalists.

The immediate aim of inter-party discussions, however, would be to agree upon an arrangement which might allow the reopening of the People’s Majlis, which was suspended last month after angry confrontations between opposing MPs and the Speaker of the House.

The Speaker Abdulla Shahid invoked his authority to suspend sessions indefinitely if he felt dialogue between party leaders was necessary to restore calm to proceedings. Government-aligned parties have been critical of the role they allege MDP MPs played in stymieing the work of the People’s Majlis.

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Comment: A case for ‘institutional reforms’ in the Maldives

The January 16 arrest of Criminal Court Chief Justice Abdulla Mohamed, and the subsequent prosecution of former President Mohammed Nasheed and certain senior officials should now indicate the kind of ‘institutional reforms’ that the Maldives requires.

The current political impasse has had its immediate origins purportedly in the arrest of Judge Abdullah and may continue with subsequent criminal charges facing President Nasheed for his part in the detention.  Therefore the need for addressing these issues is urgent.

Yet, this should be attempted with the full realisation that Rome cannot be built in a day, as the erstwhile ruling Maldivian Democratic Party (MDP) might have hoped for.

In all fairness, the political crisis leading to the controversial February 7 resignation of President Nasheed did not have its origins in the arrest of Judge Abdullah. Nor would it have been the end-game.

Yet, it purportedly alienated one more section of the Maldivian society, this time the legal fraternity. Some saw it as a diversionary tactic at best when the Nasheed Government was besieged by the political opposition. It gave an additional cause for the ‘December 23 movement’ of Islamic NGOs to press their demand for President Nasheed’s exit.

The movement from the very beginning had the blessings and participation of the otherwise diverse and at times desperate group of opposition parties in the country. This fact should not be overlooked either.

The arrest of Justice Abdulla by the Maldivian National Defence Force (MNDF), the nation’s armed forces, raises questions. So has the criminal case against President Nasheed and others.

The MNDF was created in 2004 by bifurcating the notorious National Security Service (NSS) under then President Maumoon Abdul Gayoom. This was done precisely with the intention of ending the misuse and abuse of the NSS, which at the time had policing powers, rights and responsibilities, as well. The bifurcation involved the creation of a Maldivian Police Force, which had the policing powers, and the MNDF was made the nation’s armed forces, as in any other country. But old habits did not die either then, or since.

Politicisation of security forces

Justice Abdulla’s arrest, those of two opposition leaders, namely, Abdullah Yameen of the People’s Alliance (PA) and Gasim Ibrahim of the  Jumhoree Party (JP) in mid-2010, and also a day-long closure of the nation’s Supreme Court all involved the MNDF.  Though these detentions should have stopped with the police.

Even after bifurcation of the NSS and the emergence of multi-party democracy, in that order, the Government is excessively dependent on the MNDF for law and order duties. At the institutional-level, the MNDF and the MPF have continued to take orders from the government of the day.

At the personal-level, this may have become possible only with top-level transfers with every change of government and change of ministers’ loyalty, leading to constant and confusing politicisation of the security forces in the country.

It does not stop there. Apart from President Nasheed and his Defence Minister, the Attorney-General had also named then MNDF chief, Major General Moosa Ali Jaleel, Brigader General Ibrahim Mohamed Didi, heading the troops in the national capital, and Colonel Mohamed Ziyad for the arrest of Justice Abdulla.

They were removed from their positions immediately after the Waheed Government took over. So was then Commissioner of Police of Male.

This was a repeat of the situation when President Nasheed assumed office. In the present case however, Brigader General Didi had played a key role in defence of Male when Sri Lankan Tamil mercenaries attacked Male in 1988. He was posted back to Addu City in the South after President Nasheed’s resignation, and lost no time in resigning from the armed forces after three-plus decades of service after the government moved the Hulhulumale court’. To the local media, he said that he did not want to compromise the dignity of his office and uniform by appearing as an accused in a civilian court.

Through the past months since President Nasheed resigned from office, the MDP has charged both the MNDF and police with being part of the conspiracy to overthrow his Government along with their political opponents.

Obviously, they have the respective leaderships of these forces at the time in mind. As they are also not tired of pointing out, elements within the two uniformed services had indeed joined the street-protests demanding his resignation since the night before he quit office.

This can demoralise the already demoralised forces. It could cause more problems than solving any, even as the nation is inching towards fresh presidential polls – either when due in the second half of next year, or earlier, as demanded by the MDP.

The circumstances under which President Nasheed resigned are the subject matter of an independent probe by a Commission of Inquiry (CNI), to which the MDP, as also the Commonwealth have named two members, since.

Pending the inquiry, the MDP has not stopped repeating those charges, or adding fresh ones, particularly with regard to the party’s street-protests to permit or regulate which there are no specific laws in the country. That way, a whole spectrum of legislation needs to be drafted or amended by Parliament, combining the demands of a modern nation with the customs and traditions that have the sanction of law, as elsewhere.

Conflict of interest

Various charges of misconduct and maleficence had been laid against Justice Abdulla prior to his arrest. At present, Presidential Advisor, Dr Hassan Saeed had laid out charges against Justice when he was the Attorney-General under President Gayoom.

The Supreme Court, a creature of the 2008 Constitution, too had occasions to pull him up. So did the Judicial Services Commission (JSC), another controversial institution in which the ruling Maldivian Democratic Party of President Nasheed did not have faith in despite its constitutional character.

Throughout the period of Justice Abdulla’s detention during the Nasheed regime and after his release and resumption of office under the incumbent dispensation of President Mohammed Waheed Hassan Manik, the MDP has claimed that he was a ‘threat to national security’. This was at variance with -or, was it in addition to  the earlier allegations against Justice Abdulla?

If the new charge was true, the MDP Government did not substantiate it. If it were true still, the question arises how a successor Government could take a narrow view of things and order the judge’s release and immediate reinstatement.

The recent report of the Maldivian National Human Rights Commission (NHRC) says that Justice Abdulla had to undergo mental torture and harassment in detention, and efforts also were made to persuade him to leave the country. It ruled out physical torture of any nature, however.

As promised on assuming office, the new Government has since moved the courts, charging President Nasheed, Minister Tholhath and three senior military officials of the time, among others, with unlawful detention of Judge Abdullah. To pre-empt charges of ‘conflict of interest’ the Government moved the Magistrate Court in suburban Hulhulumale Island, off the national capital of Male, where Justice Abdulla is seated.

However, the magistrate ruled that he could not assume jurisdiction to try the case without Chief Justice Abdulla assigning the same, and the Judicial Services Commission too endorsed it. The Magistrate has not dismissed the petition but has only returned the same to the Prosecutor-General’s office, with the indication for the latter to rectify the process.

It was commendable that the Government had thought about the possibilities of ‘conflict of interest’ issue being whipped up if Justice Abdulla had tried this case. Yet, judicial systems across the democratic world dictate that such charges are laid by the other party to a criminal case. Better still, in most such cases, the Judge concerned would recuse himself when the situation so demanded.

The short-cut approach adopted by the Government should be seen as a part of the institutional weakness that haunts the process. As such, no motives need to be attributed to the same at this stage, to that limited extent again.

Banishment as a punishment

It is likely that the Government will revive the case against President Nasheed at the appropriate judicial forum. If courts found him guilty, President Nasheed would be barred from contesting elections. Already, the MDP has declared that the party would not participate in any presidential polls where President Nasheed is barred from contesting. Be it as it may, the law relating to the offence for which President Nasheed is being charged with is a fit case for review and reform, it would seem.

The section provides for ‘banishment’ for a term, or imprisonment for three years, or a fine of Rf 2000. If sentenced to more than 12 months, President Nasheed cannot contest elections until after the completion of three years, or he has been granted a pardon (by the President).

It is very likely that no other democracy, and certainly not in the South Asian region, still has ‘banishment’ as a part of its penal provisions. In the Maldives, not only banishment but ‘house arrest’ also continues on the statute book, as a punishment for crimes. Contemporary history is replete with instances where either or both punishments have been freely handed down to political adversaries of the Government, since the pre-democracy days, dating beyond President Gayoom’s 30-year rule.

Other areas of law, like banking, labour all need to be updated.  The same can be said for legislation outlining migration and property too.

The MDP that has been talking vociferously in favour of fast-tracking legal and judicial reforms has been concentrating mostly on individuals, not necessarily institutions and certainly not processes, which alone add to the value of democracies.

Other parties are not doing that either. They seem to derive comfort from the status quo, not necessarily because they favour it but mostly because the complexities of the social and political issues that such reforms could throw up may be too much for the polity to address.  Conversely, the reforms process thus far has introduced institutions that are superfluous for a nation of 350,000 people. The number of commissions serving and servicing the Government employees, including the police, is a case in point.

Yet, neither has the credibility of the ‘integrity commissions’ been ensured, nor have they been allowed to settle down without continued criticism of their functioning.

The MDP calls it ‘institutional reforms’, the new Government of President Waheed says there is need for ‘institutional empowerment’. In relation to institutions like the higher judiciary, enough time has not been given for either.

The Supreme Court itself is a creature of the new Constitution, and the law provides for a seven-year term for ‘capacity-building’ in judiciary across the country. No efforts seem to have been made in this regard, nor any attention known to have been given on the kind of reforms or empowerment that is needed, and methods of doing it within the seven-year period.

After the change of leadership, both sides seem to have stopped talking about their respective positions on the issue. The All-Party Roadmap Talks was set up to address such issues, but it has grabbled only with trivial issues, in comparison.

Discussing trivia, instead

There needs to be a greater realisation in all sections of the nation’s policy and society that democracy is not a half-way house, to be built, abandoned, and re-built at whim. It is an evolutionary process, with which individual societies experiment a perceived format and make adjustments and amendments as their nation’s circumstances demanded.

There are no successful models, or failed models in democracies, for an intended democracy to pick off the shelf and display the wares. It has to be meticulously worked upon, brick by brick.

A generation can at best lay strong foundations, but it would be for the future ones to build upon it, brick by brick, floor after one more floor. There would be no finality still, as democracies evolve and need to evolve with the new generation, lest they should be rendered redundant and be described as ‘autocracy’ of some kind or the other.

That has also been the Maldivian experience, through much of the 20th century. The advent of a new generation, a new century does not make for the experience. It can at best be a cause for experimentation. In all this, a nation’s patience is the key.

It is not that the current crop of leaders in Maldivian polity does not understand. The agenda for the Roadmap Talks that they agreed upon after the change of Government in February focusses on much of what needs to be done.

The prioritisation of the agenda also underscored their understanding of the evolving situation, overall. Yet, on the ground, they are talking politics, not policies. This does not mean that the events leading up to the February 7 resignation of President Nasheed need not be gone into.

It is not about individuals again, but about institutions, including the Presidency and the armed forces, in situations that the Constitution-makers had not provided for but wanted to avoid in the first place. The findings of the CNI could thus form a part of the Roadmap agenda, as much needs to be done on institution-building, all-round, if the new-generation Maldivian dream of democracy has to be nourished and cherished.

The writer is a Senior Fellow at Observer Research Foundation

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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MDP votes to boycott elections if Nasheed barred from running

The Maldivian Democratic Party (MDP)’s National Council has unanimously decided to boycott presidential elections if a court ruling bars former President Mohamed Nasheed from competing.

Nasheed was elected the party’s presidential candidate following the results of internal elections held last month.

Despite being the party’s sole candidate, following the final count of the 258 ballot boxes Nasheed recorded 31,798 votes in favour to 269 against his being the party’s presidential candidate, after more than two-thirds of the party’s membership turned out to vote.

The MDP’s current membership stands at 48,181 according the Election Commission (EC)’s figures, giving it the largest membership of any party in the country.

However, earlier this week the Prosecutor General forwarded a case against the former President to the Hulhumale magistrate court, concerning his detention of Chief Criminal Court Judge Abdulla Mohamed during his final days in office.  Nasheed’s government had accused the judge of “taking the entire criminal justice system in his fist”.

If sentenced, Nasheed would potentially be barred from competing in a presidential election.  The matter appears temporarily stalled after the Hulhumale Court yesterday rejected the case as falling outside its jurisdiction, returning it the Prosecutor General.

“This is our candidate, and if they are going to stop him from seeking election, then we are not going to play by their rules,” said MDP Spokesperson Hamid Abdul Ghafoor.

“We have experienced 30 years under [former President Maumoon Abdul Gayoom]. His trials have always been politically motivated, and this is a politically motivated trial”, he aded.

“The MDP votes that elected Nasheed [as its presidential candidate] represent twice the registration of the entire Progressive Party of the Maldives (PPM), and more than 4000 votes than the total membership of the Dhivehi Rayithunge Party (DRP),” Ghafoor noted.

“Gayoom is on the back foot. The moment Gayoom said he would not attend talks to negotiate, he isolated himself. His rhetoric and utterances about leaving the Commonwealth are not understood by the democratic international community – we see this man going against the majority. We will not stop seeking early elections, and will continue direct action.”

President’s Office Spokesperson Abbas Adil Riza said he felt the issue was an “internal matter for the MDP. It is not for the government to comment.”

“I don’t think affect it will affect the legitimacy of the elections,” he said. “Without a congress the decisions of the MDP National Council do not reflect the will of the party’s members.”

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Immigrant workers “slipping through the cracks”: The Sunday Leader

The immigration detention centre on the island of Hulhumale’ is a world away from nearby Ibrahim Nasir Internaitonal Airport, writes Raisa Wickrematunge for the Sri Lanka-based newspaper, The Sunday Leader.

“Hulhumale’ is known as the airport island of the Maldives- it’s where tourists from all over the world fly in. But the other section of Hulhumale’ is a world away from the runway. It houses a detention centre, one which takes in migrant workers who have fallen foul of the law.

This centre is manned by a single immigration officer and two police guards, who have just been appointed. Indeed, they are so new to the job that they do not even check our paperwork when we arrive at the gate.

‘When I got here, it was just thick trees and scrub. No one could live here,’ the immigration officer said, emphatically. He and two officers cleared the area and set up the centre- a long building with an aluminium roof.

There is a separate section for the toilets. The stench is indescribable. There are a couple of shower stalls, simple taps with running water, one of them outdoors.

Around 20 Bangladeshis are currently living here, although the number could swell to around 70, and often does. They say they are here because they have been cheated by unscrupulous agents. Many have no travel documents. The immigration officer says many of them are here because they committed petty crimes.”

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Thai real-estate developer to withdraw from Hulhumale’ housing project

Thai newspaper The Nation has reported that Pruksa, Thailand’s largest real-estate developer, is withdrawing its investment in the Maldives after suffering a US$3.2 million loss.

In an interview last week with Pruksa CEO Thongma Vijitpongpun, The Nation reported that the company was pulling out of the Maldives after making losses of Bt (Thai Baht) 100million.

In 2010, Pruksa formed a joint venture agreement with the Housing Development Corporation (HDC), formerly the Hulhumale’ Development Corporation, to build over 1000 houses in Hulhumale’. That company, Pruksa-HDC Housing Pvt Ltd, began construction of the first phase of the project, consisting of around 180 units, in August 2010.

Mohamed Sharah, the Assistant Director of Corporate Affairs, Marketing and Business Development, was unable to confirm whether the company had withdrawn from the agreement. Sharah also acts as Pruksa’s Company Secretary in the Maldives.

“We have not been informed [of the decision], the work on the first phase still continues and will be completed by July,” said Sharah.

The first phase, explained Sharah, consisted of nine blocks containing 180 apartments, six of which have been completed, with four already having been handed over to customers. The first phase is scheduled for completion by July.

There were some initial problems with the quality of construction work on the first two of these buildings which caused some delays to the project while work was redone to the standards required by the quality control officer.

The 180 units were pre-sold in Maldivian rufiyaa before construction. In a previous interview with The Nation, a representative from Pruksa anticipated a profitable venture.

“We started to pre-book our project in the Maldives last month for the first phase of 180 units. Demand is for more than that amount and as a result we believe our presales in the Maldives will exceed our estimate,” the company’s Chief Business Officer was reported as saying in June 2010.

However, Sharah explained that this policy had “caused significant losses” for the company due to problems with the local currency.

“They have faced devolution of the currency and a shortage of dollars in the Maldives,” he added.

The price of rufiya at the time when most of the units were sold was pegged at Rf12.85 to the US dollar. However, in April 2011, the government made the decision to introduce a managed floatation of the currency. This decision allowed the rufiya to be traded within a 20percent margin of its previous rate. The result has been the devaluation of the currency to a rate of 15.42 to the US dollar – which still remains next to unexchangable outside the blackmarket, where rates can top Rf 17-18 to the dollar.

That problem is likely to continue after the government’s budget deficit was predicted to reach 27 percent of the country’s GDP in 2012, according to figures recently released by the Majlis Finance Committee.

The International Monetary Fund (IMF)’s head of mission to the Maldives, Jonathan Dunn, recently told Minivan News: “As long as the government continues to inject substantial amounts of new spending into the economy, the foreign exchange situation in the country will not be resolved.”

The net result of Pruksa’s exposure to rufiya may account for the US$3.2 million losses the company CEO reported to The Nation.

HDC told Minivan News that 90 percent of the units were sold using the pre-booking system. The initial value of the apartments was reported to have been between Rf0.9million and Rf1.6 million.

The change in exchange rates in the period following these sales means that between US$1.8million and US$3.3million from Pruksa’s projected income may have been lost from the sale of these units alone.

During the same interview in The Nation, the CEO explained that the company was restructuring to a more profitable model, in part due to the losses suffered during last year’s flooding which afflicted much of Thailand.

However, it was mentioned that the company was considering expansion into the ASEAN nations of Malaysia, Indonesia and the Phillipines. The CEO also announced that projects in Vietnam and India, temporarily suspended in the first half of this year, would continue.

A representative of Pruksa in the company’s Bangkok office was unable to confirm the cessation of the company’s dealing in the Maldives. He did confirm that a representative of the company would be visiting the Maldives later this month, at which time more details would be made available.

The spokesperson was able to confirm that the most of the apartment sales took place 18 months ago and were transacted in rufiya.

“There were some problems with that,” the spokesman noted.

The Hulhumale’ project is regarded as the most ambitious urban development project in the history of the country. The reclamation of land and the internal migration of Maldivians to the island, which lies adjacent to the capital Male’, is seen as vital in the country’s long term plans for economic development of the nation and for the easing of congestion in the capital city.

“If Pruksa withdraws, the HDC will have to find new investment,” said Sharah.

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Attacked Raajje TV presenters allege “political motivation” behind assault

Two TV presenters working for private broadcaster ‘Raajje TV’ were assaulted yesterday whilst on the island of Hulhumale’, an attack the station has claimed is politically motivated.

Speaking to Minivan News, Qufthaq Ajeer claimed he and colleague Mohamed Jinah had been assaulted and threatened with sharp weapons on the island as a result of a political TV program they presented together.

‘’We were waiting in Hulhumale yesterday, I went there to get my bike,’’ said Qufthaq. ‘’At about 6:30pm, four men on two motorbikes came and attacked us.’’

Qufthaq said his colleague Jinah was stabbed in the back and he was hit in the eye.

“My colleague suffered a 7 inch-long, 2 inch-deep wound on his back,” he said.

Qufthaq alleged that the attacks were politically motivated.‘’They [the attackers] asked us to stop the TV program,” he claimed

The presenter also noted that a week ago, an unknown caller rang up Raajje TV’s Offices and warned the channel to stop broadcasting their TV program.

‘’We received death threats a week ago and I think this attack is related to the earlier threats,’’ said Qufthaq, who was also a former journalist at private radio station DhiFM.

Raajje TV CEO Ahmed Rafeeq told Minivan News today that the channel was extremely concerned by the attack, which had followed  a number of warnings previously sent to the broadcaster.

‘’We have been receiving several warnings recently and now that they have attacked one of us, the other journalists are scared and mentally affected,’’ Rafeeq said.

The Maldives Journalist Association (MJA) also condemned the attack on the two presenters, stating that it was against freedom of expression.

The MJA said it believed the attack had been designed to intimidate journalists and to obstruct the freedom of press and expression as guaranteed under the national constitution.

The association also called on authorities to bring the assailants to justice.

Police Spokesperson Hassan Haneef told Minivan News that police were presently investigating the case, but no arrests have been made so far.

‘’We questioned both of them and we are trying to identify the assailants,’’ Haneed said. ‘’No arrests have been made so far.’’

Pro-government political parties have previously alleged that Raajje TV was biased and working in favour of former president Nasheed and his Maldivian Democratic Party (MDP). The station has actively covered MDP protests and rallies, and in several cases aired incorrect reports of fatalities which police later cited as a factor in the subsequent and widespread destruction of police property.

However, Raajje TV is not the only private media group to claim to have come under politically motivated attacks of late.

VTV attack

Last month, the offices of private broadcaster Villa Television (VTV) were attacked during confrontations between security forces and alleged anti-government protesters in Male’ on March 19.

VTV was briefly brought off air following the incident – an act claimed by the station’s owner to be tantamount to “terrorism”.  Local media bodies also criticised protesters for allegedly threatening journalists and media personnel covering the clashes.

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