Tag: Maldives Airports Company Limited

MACL deny jet terminal outsourcing rumours

Maldives Airports Company Ltd (MACL) CEO Ibrahim ‘Bandhu’ Saleem has denied reports suggesting plans to sell the private jet terminal at Ibrahim Nasir International Airport.

“We are not aware that such discussions have taken place even. Our company has definitely not conferred on selling of the jet terminal or any other business with our share in it,” Saleem told Haveeru.

Saleem’s comments come in response to a press release from tour operators organisation MATATO earlier this month, expressing concern over rumoured plans to outsource both the terminal and aeronautical services facilities.

Saleem said he had no idea where the rumours had come from, though he told Haveeru that discussions at the government level were nothing to do with him.

MACL is a 100 percent state-owned company governed by a Board of Directors appointed by the president of the Maldives.

Prior to MATATO’s statement on June 11, Minivan News had learned that the cabinet’s economic council is currently discussing a deal with billionaire Thai businessman William Heinecke.

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MACL can sue former chairman over GMR airport charge decision, says Civil Court

The Civil Court has ruled the Maldives Airports Company (MACL) can sue its former chairman for allowing the disputed Airport Development Charge (ADC) to be deducted from Indian infrastructure giant GMR’s concession payments during it’s ill-fated agreement.

MACL alleges ‘Kuda Bandhey’ Ibrahim Saleem’s decision to be an act of ‘Ultra Vires’ – meaning that Saleem had acted beyond his permitted authority.

The ruling came following a procedural issue taken by Saleem said he was being wrongfully charged claiming the lawsuit was filed in violation to Article 18 (c) of the Contract Act and Article 74 Company Act.

The Contract Act states a clause requiring a party to refer to arbitration any dispute arising from the contract shall be valid, while the Company Act says the court has a right to issue orders holding personally liable the directors of the company to commit an offense in the name of the company.

But the Civil Court ruling stated that the Company Act does not prohibit the company chairman from being sued personally.

The airports company sued Saleem after he signed a letter sent to GMR on January 5 2012 stating that the ADC and the insurance surcharge fee had been deducted from GMR’s concession payments.

In late 2011, the then-opposition Dhivehi Qaumee Party (DQP) had filed a successful Civil Court case blocking GMR from charging US$25 charge for outgoing passengers – stipulated in its agreement with the government – on the grounds that it was a tax not authorised by parliament.

Former President Mohamed Nasheed’s administration subsequently chose to honour the original contract, instructing GMR to deduct the ADC revenues from the concession fees due to the state-owned MACL while it sought to appeal the Civil Court ruling.

However, with the Nasheed’s controversial resignation coming just one month later, the opposition soon inherited the contractual problem.

Dr Mohamed Waheed’s government then received a succession of bills from the airport developer throughout 2012, despite its insistence that the January 5 letter from MACL outlining the new arrangement was no longer valid.

In December 2012, the Anti-Corruption Commission (ACC) filed a case with the Prosecutor General’s Office over Saleem’s decision to allow GMR to deduct the ADC from concession fees owed to the state.

As part of the filed case (Dhivehi), the ACC was seeking reimbursement of MVR 353.8 million (US$22.9 million) from Saleem and former Finance Minister Mohamed Shihab over the alleged misuse of authority it claimed had led to significant financial loses for the state.

These losses were used as justification for the contract’s eventual termination in December 2012, for which GMR is currently seeking compensation via a Singapore court of arbitration.

According to the case filed by the ACC, former Finance Minister Shihab stands accused of misusing his ministerial authority to benefit a third party by allowing GMR to deduct the charges between October 2011 and September 2012.

The ACC has also accused Saleem violating the company’s rules. According to the ACC’s case, normal procedure for MACL would be to have the company’s board of directors pass a resolution allowing for consent to be given to deduct the ADC.

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Airport staff strike over bad food and bad bonuses

Maldives Airports Company Limited (MACL) employees working at Ibrahim Nasir International Airport (INIA) went on strike today over the low quality of food served at the staff cafeteria as well as cuts to the annual company bonus.

The protest began early this morning and continued until around noon. At around 10:30am, the managing director of the company arranged a meeting with a five member group representing staff, as well as with the CEO Ibrahim ‘Bandhu’ Saleem.

While the protesters estimated that approximately 250 – 300 employs were ready to go on full strike, the situation was resolved following the meeting after employees were assured that solutions would soon be found for all their concerns.

Speaking to Minivan News, one of the five staff negotiators said that the main two demands of the protesters were the improvement of the conditions of the staff restaurant ‘Beach Rest Cafe’, and the resumption of the annual company bonus for employees – which has been “discontinued for the past two years”.

When disbursed by India’s GMR – the previous company that managed the airport – some would receive a bonus of MVR1500 while others would receive as much as MVR30,000, said the staff negotiator.

“It started with the Beach Rest issue. Even today they served rotten curry. This has been going on for a while now. We cant eat the food they prepare,” he explained.

MACL Corporate Communications Manager Hassan Areef said that the situation was resolved shortly after negotiating with protesters.

“Beach Rest is not run by the company, but we will talk to them and address the issue immediately,” he said.

When asked about the company bonus, he said that information would be revealed on that as progress is made, but assured that the company would this issue also.

“When the situation was resolved the staff were happy, they went back to work immediately,” Areef said.

Ibrahim Rasheed, a protester who took part in the dialogue, said that staff were promised the cafeteria issue would be addressed immediately and that another cafeteria would be established within two or three months.

Another protester said that the CEO had assured them the annual bonus would also be arranged shortly.

“He said it will be arranged very soon – as soon as the ongoing audit is completed. We were told that the bonus will be even better than before,” he said.

According to MACL staff concerned about the bonus, the issue has been taken to senior management several times within the past two years without any response.

In 2010, the GMR Male International Airport Pvt Ltd (GMIAL) – a consortium of the Indian GMR Group (77%) and the Malaysia Airports Holding Berhad (23%) — was awarded a concession contract to manage the airport for a period of 25 years.

However, President Dr Mohamed Waheed’s government prematurely terminated the agreement and the airport was handed over to the 100% government owned MACL in December 2012.

GMR later filed a compensation claim of US$1.4 billion for “wrongful termination”.

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Airport development begins, with “no chance” of GMR returning to project

The Maldives Airports Company Limited (MACL) has begun a program to further develop the airport, to be done in multiple phases.

Launching a program worth US$5 million to develop Ibrahim Nasir International Airport’s (INIA) ground handling on Thursday, MACL Managing Director ‘Bandhu’ Ibrahim Saleem revealed that various plans had been set in place for the development of INIA.

President Abdulla Yameen has today been quoted in Indian media as stating that any future management of the airport will not be carried out by foreign companies – with the Maldives government itself the preferred overseer.

Saleem told local media that, in addition to the introduction of new baggage tractors – launched during Thursday’s event – the company will also be introducing four new passenger carrier buses, heavy load vehicles for baggage carrying, a new baggage staircase and a mechanism to assist with boarding and unboarding patients with medical conditions within a period of 60 days.

He added that the projects are being conducted under the government’s 100 day policy implementation plans.

The record US$511 million development of the airport under Indian infrastructure giant GMR was prematurely terminated under the previous administration, prompting the filing of a US$1.4 billion arbitration case in Singapore.

Saleem explained that the ground handling equipment currently in use is old and damaged, which causes unnecessary delays in operations, assuring that the introduction of new equipment will allow passengers to observe a “remarkable improvement” in the speed of service.

“We are spending company money on these programs. We have not been able to purchase any such equipment since 2007,” he was quoted as saying.

Many projects underway

According to Saleem, the program is one among many development plans the company is undertaking.

Stating that the biggest challenge faced by the airport today is the issue of flight trafficking, he said that a permanent solution to overcrowding in the airport can only be found through the building of a second runway. He did, however, note that such a project would take a “tremendous amount of time”.

Adding that a review of the previously compiled Scottwilson development master plan of the airport would commence in the next two weeks, Saleem said that compiling such a plan anew would take around one year. He stated that global experts will be arriving within two weeks to assist in reviewing and updating the plans.

While the government is deliberating on undertaking such a project, said Saleem, reclaiming land and building a new runway would itself take at least two years to reach completion.

“Flyme is bringing in a new plane. Maldivian is also bringing in another new plane. So we need a runway upgrade at the airport as soon as possible. Nevertheless, it is not an easy thing to do,” he said.

The managing director added that, while these projects are pending, the airport is currently implementing smaller development projects immediately. As an example, he revealed that the construction of a new 35,000 square meter flight apron will be contracted to an external party in the next two weeks.

“We cannot do airport development in bits and pieces separately. It must be done all together. Once the Stockwilson plan is reviewed, we can begin the main work,” he said.

Saleem added that in 2014 itself, the airport traffic will increase immensely, and that the government will be focusing on reviewing the Stockwilson plan with a focus on connecting the airport to Malé.

GMR welcome to engage in other projects, not airport development: president

Meanwhile, President Abdulla Yameen has told Indian media that the Maldivian government is not even considering resuming the airport development contract with Indian infrastructure giant GMR.

While he repeated that the government is seeking an out of court settlement regarding the arbitration case concerning the cancellation of the GMR contract in the Waheed administration, Yameen said that the Maldives “had nothing against the GMR itself”.

“I am not saying we are saying no to GMR. What I am saying is total management of the airport is far too important for the Maldivian government (to hand over). We have nothing against GMR of any Indian company. It is just that the international airport is far too important for us, commercially and from a security point of view,” Yameen is quoted as saying to Indian publication The Hindu.

“The total operation of our airport will probably not go to any foreign party. Probably not even go to a Maldivian company. It will be undertaken by the MACL, a 100 percent government company,” he stated.

Yameen affirmed that deliberations of settling the GMR issue out of court has already begun, adding that the company is welcome to pursue other projects in the country.

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