Tag: maldives news

Economy’s pigeons come home to roost

The stated cause of the opposition-led protests in Male’ – the party claims the rallies are “youth led”, however opposition politicians are a leading fixture at the demonstrations – is the increase in the cost of living due to the government’s recent decision to implement a managed float of the rufiya, within a 20 percent band of the pegged rate of Rf 12.85.

An ongoing dollar shortage, reluctance of banks to exchange local currency, and a flourishing blackmarket that reached Rf 14.2-14.8 to the dollar, culminated in mid-April with the government finally acknowledging that the rufiya was overvalued – after a short-lived attempt to crack down on ‘illegal’ exchanges.

High demand immediately led to most banks and companies dealing in dollar commodities – such as airline ticketing agents – to immediately raise their rate of exchange to the maximum permitted rate Rf15.42.

With the Maldives almost totally reliant on outside imports, including fuel and basic staples such as rice, the government’s decision has effectively led to a 20 percent increase in the cost of living for most ordinary Maldivians.

Moreover the Maldivian economy is dependent on oil to such an extent that is spends a quarter of its GDP on it – US$245 million – the vast majority on marine diesel, making imported energy one of the single largest drains on the country’s economy.

Customs documents obtained by Minivan News in January showed that Maldives was spending almost US$100,000 more per day more on fossil fuels than it was in the summer of 2010. At that time, oil was US$86 a barrel. By the same calculations but with today’s oil price, the Maldives is paying an additional US$450,000 per day for oil compared to summer prices last year.

Amidst rising commodity costs and external pressures, the country’s insistence on maintaining a fixed rate while increasing government spending had late last year begun to affect shop shelves and raise the ire of the International Monetary Fund (IMF), which delayed the third tranche of its funding due to “significant policy slippages” concerning the government’s failure to curtail spending. That amount in itself was not substantial, but the IMF is used as a financial bell-weather by most major donors.

The government’s unwillingness to face the political difficulties inherent in its budget deficit of 21 percent – the legacy of a 400 percent increase in civil service expenditure since 2002 and a hot printing press – was compounded by the addition of an extra layer of local government added to the state payroll, and the country’s graduation from the UN’s ‘Least Developed Country’ status to ‘Middle Income’, and the loss of concessional credit and certain trade concessions.

In an article for Minivan News, Director of Structured Finance at the Royal Bank of Scotland Ali Imraan observed that ‘growth’ in the domestic economy had been driven by the public sector and “paid for by printing Maldivian rufiya and clever manoeuvres with T-Bills, which the government has used since 2009 to be able conveniently sidestep the charge of printing money. In simple terms: successive governments printed/created money to drive domestic economic growth.”

Imraan pressed for the Maldives to invest in private sector revenue growth “rather than building airports on every island”, and implement a progressive taxation system targeting high earners in the interest of income equality. He also urged the Majlis to uphold the constitutional stipulation whereby MPs – such as those with business interest in the tourism sector – removed themselves from voting on issue in which they had a vested interest, and further suggested that the government resolve the matter of stalled tourism developments “awarded to parties with no money or track record.”

“Moratoriums on lease payments or debt repayments may look innocuous enough, but they rob the country of vital growth opportunities and hence ultimately rob the people. We should not stand for it,” he said.

Imraan’s latter suggestion proved somewhat prescient when the Tourism Ministry renewed the lease for Hudhufushi in Lhaviyani Atoll, despite the resort island’s owner owing more than US$85 million in unpaid rent – most of it fines for non-payment.

The government’s decision to implement a managed float of the currency came as a least one local sales agent for international airlines operating in and out of the Maldives closed its doors to customers, blaming an inability to pay the airlines because of a lack of US dollars circulating within the economy.

Parallel economy

The Maldives’ profitable tourism industry is considered to be indirectly responsible for 70 percent of the country’s GDP, and certainly the vast majority of its foreign currency earnings.

However historically little of the industry’s financial success has reflected on the Maldives’ domestic economy, with the inflow of money limited to the flat rate bed tax, import duties and worker salaries – most of that in rufiya.

With the introduction this year of a 3.5 percent tourism goods and services tax, a business profit tax and a revision of the rents paid for resort islands, the government now has a number of economic levers it can pull to increase revenue in the future.

However it has struggled to explain that to people now paying 20 percent extra for basic commodities – an affront to the MDP’s pledge to reduce the cost of living – and seems have been caught unawares by this week’s populist protests.

Both factions of the opposition have meanwhile seized the political opportunity to take the focus off the party’s internal troubles, but have offered few alternatives beyond demanding the government “reduce commodity prices”.

“I believe a lot of people are very unhappy with rising prices. People are asking the government to bring down the prices,” opposition Dhivehi Rayyithunge Party spokesman Ibrahim ‘Mavota’ Shareef told Minivan News.

“It has been a sudden and tremendous jump and people were not prepared for it. This feeling is shared across party lines.”

Shareef accused the MDP of financial mismanagement and recklessly increasing spending, without investing “in productive resources that ensure future revenue for the country, and reducing expenditure in areas that do not affect the people – such as foreign missions.”

“They need not reduce the civil service, because these are the lowest paid government employees and reducing their numbers would have not tangible effect. But the top players in government – the political positions – and positions in the paper companies created by the government are many areas [that can be reduced],” Shareef claimed.

“Before the tsunami the country’s finances were very well managed, and even after the tsunami, given the circumstances, they were well managed. Tourism infrastructure was damaged, islands needed reconstruction and in some cases resettlement. We had to spend a lot of money, and increased the budget from Rf4 billion to Rf5.5-6 billion. It was still a manageable level, and although it was not the best option we had no choice at the time,” he claimed.

The opposition – and the Civil Service Commission (CSC) – for much of last year opposed the reductions in the 21,000-strong civil service demanded by the IMF, with the issue becoming mired in the court system.

The opposition contested that it is unfair to reduce the number of civil servants while increasing the number of political appointees. While the government now has only 170 political appointees on its books, Shareef claimed “they do not show up on paper because of the paper companies the government created in the name of corporatisation to try and fool the International Monetary Fund and the World Bank. I don’t think a country of this size – 350,000 people – needs to have so many political appointees.”

The government has since changed tactics, offering incentives to civil servants as young as 18 to leave the state payroll.

Under the scheme, the application deadline for which was May 31, civil servants and government employees are eligible for one of four retirement incentive packages: no assistance, a one time payment of Rf 150,000 (US$11,700), a payment of Rf 150,000 and priority in the small and medium enterprises loan scheme (for those 18-50 years of age), or a lump sum of Rf 200,000 (US$15,600) and priority in government training and scholarship programmes (for those 18-40 years of age).

The move to incentivise the departure of civil servants is likely to draw further support from the IMF, which has finished its Article IV consultation and may be weighing up the provision of further support.

Meanwhile, the government is unable to respond to demands from the constituency to reduce commodity prices without explaining the complexities of the situation it finds itself in. Yet neither is it realistic “to pin our hopes on some sort of tourism growth bonanza in the short term,” wrote Imraan. “We might as well play the Euro lottery every week if this is the only plan.

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Osama bin Laden killed in Pakistan by US forces, says Obama

US President Barack Obama has declared the death of Osama bin Laden at the hands of US forces.

In a live broadcast to the US on Sunday night, Obama claimed that an intelligence lead in August 2010 had culminated in the tracking of bin Laden to Abbottabad, a town north of Islamabad in Pakistan far from the tribal belt where the US has been searching for the fugitive.

“It was far from certain, and it took many months to run this thread to ground. I met repeatedly with my national security team as we developed more information about the possibility that we had located bin Laden hiding within a compound deep inside of Pakistan. And finally, last week, I determined that we had enough intelligence to take action, and authorised an operation to get Osama bin Laden and bring him to justice,” Obama said.

“A small team of Americans” engaged bin Laden in a firefight, killing him. No US or civilian casualties were reported, and bin Laden’s body was recovered.

A US official told Associated Press that “We are assuring [his body] is handled in accordance with Islamic practice and tradition.”

Counter-terrorism cooperation with Pakistan “help lead us to bin Laden and the compound where he was hiding,” Obama said.

“We must also reaffirm that the United States is not – and never will be – at war with Islam,” he added. “Bin Laden was not a Muslim leader; he was a mass murderer of Muslims.  Indeed, al Qaeda has slaughtered scores of Muslims in many countries, including our own.  His demise should be welcomed by all who believe in peace and human dignity.”

Reaction

Crowds immediately gathered outside the gates of the White House singing the country’s national anthem, while news networks reported a “party atmosphere” spreading throughout the country.

British Prime Minister David Cameron said that confirmation of bin Laden’s death should  “bring great relief to people across the world”.

“Osama Bin Laden was responsible for the worst terrorist atrocities the world has seen – for 9/11 and for so many attacks, which have cost thousands of lives, many of them British,” the PM said.

A Western diplomat based in Islamabad told the UK’s Guardian newspaper that bin Laden’s death was a “game changer” for US foreign policy in Afghanistan and Pakistan.

“I’m overjoyed, but what this exactly means is really not clear,” the diplomat said.

A number of analysts speculated that while bin Laden’s death was a significant symbolic victory for the US, it was unlikely to hamper al Qaeda’s operations as bin Laden was no longer involved in the day-to-day functioning of the terrorist organisation.

The US State Department meanwhile issued a travel alert to all US citizens warning of an outbreak of anti-American violence in the wake of bin Laden’s death.

“Given the uncertainty and volatility of the current situation, US citizens in areas where recent events could cause anti-American violence are strongly urged to limit their travel outside of their homes and hotels and avoid mass gatherings and demonstrations,” the State Department said.

US Assistant Secretary of State for South Asia, Robert Blake, is currently in Male’ for meetings with political leaders and civil society.

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UN war crimes report on Sri Lanka foreign policy challenge for Maldives

The Sri Lankan government is grappling with the political fallout of a leaked UN report accusing it – and the Liberation  Tigers of Tamil Eelam (LTTE) rebels – of potential crimes against humanity in the closing days of the civil war.

The report on the final stage of the war between LTTE and the Sri Lankan authorities was leaked to the media, containing allegations, among others, that the army shelled hospitals, UN facilities and aid workers with the International Committee of the Red Cross (ICRC). The report further alleges that the government intimidated and in some cases silenced the media, even abducting journalists in “white vans”.

Meanwhile, UK television network Channel 4 last week said it will air what it claims is “probably the most horrific” footage the station has ever shown, after obtaining “trophy” videos of what it claims are Sri Lankan war crimes.

According to the network, footage obtained by the station includes “extrajudicial executions filmed by Sri Lankan soldiers as war trophies on their phones; the aftermath of shelling in civilian camps and hospitals alleged to have been deliberately targeted by Sri Lankan government forces; dead female Tamil fighters who appear to have been systematically raped; and pictures which document Tamil fighters alive in the custody of Sri Lankan government forces and then later dead, apparently having been executed.”

The director of ITN productions, Callum Macrae, told the UK’s Guardian newspaper that the filmmakers had “trawled through hours of devastating imagery shot by Tamils under attack and Sri Lankan soldiers as war trophies. The claims made by eyewitnesses in the film appear to be illustrated in each case by video footage or still images.”

The Sri Lankan government has reportedly complained to the UK’s media regulator Ofcom regarding the station’s intention to air the footage.

Channel 4’s announcement comes a week after a UN report on the closing days of the war between the Tamil Tigers and the Sri Lankan authorities was leaked to the media, containing allegations, among others, that the army shelled hospitals, UN facilities and aid workers with the International Committee of the Red Cross (ICRC). The report further alleges that the government intimidated and in some cases silenced the media, even abducting journalists in “white vans”.

“The government says it pursued a ‘humanitarian rescue operation’ with a policy of ‘zero civilian casualties’. In stark contrast, the Panel found credible allegations, which if proven, indicate that a wide range of serious violations of international humanitarian law and international human rights law were committed both by the Government of Sri Lanka and the LTTE, some of which would amount to war crimes and crimes against humanity,” the report reads.

“Despite grave danger in the conflict zone, the LTTE refused civilians permission to leave, using them as hostages, at times even using their presence as a strategic human buffer between themselves and the advancing Sri Lanka Army. It implemented a policy of forced recruitment throughout the war, but in the final stages greatly intensified its recruitment of people of all ages, including children as young as fourteen. The LTTE forced civilians to dig trenches for its own defenses, thereby contributing to blurring the distinction between combatants and civilians and exposing civilians to additional harm. All of this was done in a quest to pursue a war that was clearly lost; many civilians were sacrificed on the altar of the LTTE cause and its efforts to preserve its senior leadership.

A former UN spokesperson for the UN in Sri Lanka was reported in the UK’s Independent newspaper as saying that the report “damns the government of Sri Lanka’s so-called war on terror, which incidentally killed many thousands of civilians. The Tamil Tigers were equally rotten in their disdain for life.”

Sri Lankan media has meanwhile been busily criticising the veracity of the report, the UN panel involved, and UN Secretary-General Ban Ki-moon himself.

Yesterday, Ki-moon announced that he would welcome a mandate from the UN Human Rights Council, Security Council or General Assembly to launch an international war crimes investigation into the final two years of Sri Lanka’s civil war, as per the recommendation of the UN report.

Such a mandate would require consent from the Sri Lankan government – unlikely, given that it has labelled the report as “fundamentally flawed and patently biased” – or through a decision by the UN’s 192 member states.

The US Embassy in Sri Lanka has also privately expressed concerns about the Sri Lankan government’s actions during the closing days of the war.

In a leaked US Embassy cable sent on January 15 2010, Ambassador Patricia Butenis remarked there was a clear “lack of attention to accountability” following the mass killings of Tamils in the final days of the war, a situation she described as “regrettable” but unsurprising.

“There are no examples we know of a regime undertaking wholesale investigations of its own troops or senior officials for war crimes while that regime or government remained in power,” Butenis said in the cable.

“In Sri Lanka this is further complicated by the fact that responsibility for many of the alleged crimes rests with the country’s senior civilian and military leadership, including President Rajapaksa and his brothers and [then] opposition candidate General Fonseka.”

The UN report and subsequent international furore likely to be generated in the wake of the Channel 4 program places the Maldives in a difficult position, between its stated (and much promoted) human rights agenda, and its national and economic interest.

Sri Lanka is one of the Maldives’ key economic and regional partners, and a major transit hub for both trade and tourists visiting the country. President Mahindra Rajapaksa extended the Maldives a US$200 million credit line in November, and even travelled to the Maldives to mediate a dispute between the ruling Maldivian Democratic Party and opposition Dhivehi Rayyithunge Party (DRP) in July last year. President Mohamed Nasheed subsequently attended Rajapaksa’s swearing in ceremony.

At the same time the Maldives is a vocal member of the UN Human Rights Council and an avid proponent of human rights, with the Foreign Ministry only recently declaring that it was severing diplomatic ties with the Libyan government due of “clear evidence that the Gaddafi regime is guilty of crimes against humanity and war crimes.”

It is not inconceivable that were the UN’s case to gather momentum and international public opinion, the matter could go to vote and the Maldives could be compelled to publicly defend its neighbour from the international community.

President Nasheed’s Press Secretary Mohamed Zuhair emphasised that the Maldives saw the end of both the terrorist attacks and the civil war in Sri Lanka as “a very positive development.”

“The government has very close ties with [Sri Lankan President] Rajapaksa,” Zuhair said. “Our position is that the Maldives has very good relations with neighbouring countries, and has hundreds if not thousands of years of trade and bilateral relationships with Sri Lanka.”

The post-war situation, he suggested, was “fluid”.

“I’m concerned the UN report is a bit belated. Why say it now? Why not when the war was going on? My point is that this report only appeared after the war was over. We support the Sri Lankan government’s desire for peace and harmony, and any government that brought about that peace should be held in high honour.”

If an investigation was to take place, Zuhair suggested, “it should happen in an independent manner, with reconciliation on both sides.”

The Maldives’ Foreign Minister Ahmed Naseem is currently in the UK and was not responding at time of press.

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Coca-Cola security guard stabbed

A group of assailants last night stabbed a security guard who was on duty at the Coca-Cola company office in Maafannu, Male’.

Police told newspaper Haveeru that the group was attempting to rob the company and that the security guard was attacked because he tried to stop them.

Haveeru reports that the man was admitted to Indira Gandi Memorial Hospital (IGMH) and is undergoing treatment.

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Police search guest houses in Male’, makes arrests

Police have said that in an ongoing police special operation to reduce the crime rate they have searched guest houses and other places in  Male’ and arrested a number of both females and males, reports Haveeru.

According to Haveeru, some items were also seized in the operation.

Police have declined to provide further information regarding the special operation and said more information will be provided later.

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Further deaths reported as Syrian military accused of seizing Deraa mosque

Syrian security authorities stand accused of storming a mosque in the city of Deraa yesterday as part of attempts to quell ongoing unrest in the country, resulting in several reported fatalities.

The BBC reported that 66 civilians caught up in ongoing anti-government protests were believed to have been killed by security officials on Saturday (April 30) as soldiers allegedly established a presence on the roof of Deraa’s Omari mosque after storming the building.

State officials have said that official fatality figures were a lot lower than those reported in international media and included the death of four soldiers. Local television also reported that “armed terrorists” had attacked security forces in the cities of Deraa and Homs.

Foreign journalists are reportedly banned from entering the country, making official clarification of events in the country difficult.

According to the Al Jazeera news agency, the son of an imam at the Omari mosque was amongst the dead after allegedly being shot by security forces as Deraa reportedly came under “heavy shelling and gunfire”. The alleged attacks were reported to have taken place while civilians tried to bury bodies left over from protests taking place on Friday.

Al Jazeera journalist Rula Amin, based in the national capital of Damascus, stated that Deraa was thought to have witnessed some of the most severe clashes between security forces and anti-government protesters.

Amin added that within this backdrop, state television broadcasts featured people “confessing” to being members of terrorist groups that are sponsored by individuals based in Deraa, including the imam of the Omari mosque.

“We are told by residents that the imam was always asking for calm, for dialogue, and when I went to Deraa and I met him myself he did not say that people should carry guns or should fire at security forces,” she wrote. “He was adamant that people have the right to protest, that things need to change in Syria.”

International news organisation Reuters said that security forces had yesterday also arrested two “veteran” opposition figures and 11 female protesters taking part in a silent march around Damascus as part of their crack downs on anti-government sentiment in the country.

Reuters added that local human rights group Sawasiah currently estimates that 560 civilians had been killed by security forces since protests kicked off about six weeks ago.

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Police clash with protesters in crowded street injures “dozens”

A large crowd of mostly young people last night held a protest in Male’ against the rising cost of living, following a spike in import costs brought on by the government’s managed float of the rufiya – a decision which has led to a cost increase for dollar commodities of up to 20 percent.

Although the protest was led by opposition leaders, Minivan News observed many unfamiliar faces not identified as members of either major party.

The protest’s leadership consisted mostly of those from the ‘Z-DRP’ faction of the opposition loyal to former President Maumoon Abdul Gayoom, including MPs Ahmed Mahlouf, Ilham Ahmed and dismissed Deputy Leader Umar Naseer, Dhivehi Qaumee Party (DQP) MP Riyaz Rasheed, Jumhoory Party (JP) MP Ibrahim Muthalib and other opposition allies were also present at the protest.

The group gathered near the artificial beach last night around 9:00pm and marched towards the tourist street of Chandhanee Magu, occupying the intersection with the main road of Majeedhee Magu. Minivan News observed many protesters sitting or lying down in the intersection, some having coffee.

Riot police initially blocked off vehicle access to the area, and waited without taking any action.

However at around 3:30am early on Sunday morning, police advised protesters to leave the area or otherwise they would use force to disperse the crowd.

The protesters declined to leave the area and continued protesting, whereupon police issued several warnings before throwing tear gas canisters into the crowd camped in the narrow and congested intersection, and moving in with shields and batons.

Male and female protesters were injured in the incident after being attacked with batons, while police claimed officers were injured in the effort after bricks were thrown. Protesters also pelted police with empty water bottles, empty cans and other such materials.

“One female officer was hit in the chest with a pavement stone, she is still hospitalised,’’ said Police Sub-Inspector Ahmed Shiyam.

While police were attempting to disperse the crowd, a motorbike in the area was destroyed by fire and the glass window of a nearby shop was broken.

After the violent attacks, police failed to completely disperse the crowd as the protesters continued to return to the area and gathering.

Local media SunFM and Haveeru News also reported that police used excessive force on their journalists taking coverage of the area.

Haveeru, which described the incident as a “deadly clash”, reported that its journalists were arrested after they refused to leave the area were told by a police spokesperson that even journalists wearing press identification could not stay in the area.

The protest lasted until 9:00am this morning, lasting a total of 12 hours.

Residents living in the densely-populated urban area surrounding the intersection have complained of women and children being affected by tear gas used by police used to control the riot.

News agency Associated Press reported Gayoom’s spokesperson, Mohamed Hussain ‘Mundhu’ Shareef, as saying that dozens were hospitalised in the demonstration consisting of 5000 people rallying against “economic hardship, alleged government mismanagement and wasteful spending”, but was unable to raise a response from the Maldivian government. News of the incident quickly went international, appearing on the Washington Post and other major newspapers.

This afternoon the President’s Office released a statement condemning the violent protest as orchestrated by supporters of the former President.

“Scores of people were injured and shops and private property were damaged when protesters hurled bricks and other projectiles at the police. The police responded to the unprovoked assault with tear gas and made several arrests,” the statement said.

“The protest was orchestrated by the Z-DRP, a faction of the main opposition Dhivehi Rayyithunge Party, which is under the control of former President Gayoom.”

President Mohamed Nasheed’s spokesperson, Mohamed Zuhair, added that “peaceful political activity, such as the right to protest, is legal – and indeed welcome – in the Maldives’ new democracy. But there can be no excuse for needlessly causing violence in the streets. We have numerous peaceful political rallies, protests, petitions and other forms of legitimate democratic activity throughout the year, which is a healthy part of our democracy. However, whenever Mr Gayoom’s supporters take to the streets, it always seems to end in violence and bloodshed,” Zuhair added.

Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Mausoom told Minivan News that he believed the protests, which he described as a “youth movement” rather than an opposition political gathering, had been building for some time amidst concerns regarding the government’s commitment to democracy and increased living costs.

“We feel the protests are overdue, the Maldivian Democratic Party (MDP) is not championing democracy like it promised,” he said.

Mausoom claimed that the prime areas where he believed the government had failed to bring about democratic reforms – a key policy area for the governing MDP party – were in freedom of expression and allowing protesters to demonstrate peacefully.

Although opposition parties like the DRP and the recently formed spin-off faction the Z-DRP were present at the protest, Mausoom said that they had been invited by local young people to support their concerns.

“This has been organised by young people [of the Maldives]. Opposition parties joined in support only after being invited. This was not a political movement, but a youth movement,” he claimed. “The protests were in themselves largely peaceful and we feel the police response was inappropriate.”

Mausoom added that he believed that the protesters should have been given the right to air their concerns and called on the government to address areas such as spending on political advertising and cutting living costs.

The opposition DRP has recently been split by infighting and violence between supporters of Gayoom and those of the party’s leader, Ahmed Thasmeen Ali, triggered by the expulsion last year of Deputy Leader Umar Naseer from the party for organising protests without sanction from the DRP Council.

Both sides claimed the animosity within the party was cause it to “disintegrate“, and there was speculation that Gayoom’s supporters would form a spin-off opposition party. However last Thursday, two days before the protest, Gayoom’s faction officially announced that it was “commencing work” as the Zaeem-DRP (Z-DRP), a separate branch of the main opposition Dhivehi Rayyithunge Party (DRP).

The Zaeem-DRP (Z-DRP) faction today announced that it has officially commenced its work as a separate branch of the main opposition Dhivehi Rayyithunge Party (DRP).

An earlier protest on April 12 against the government’s currency decision ended peacefully, with both factions conducting separate rallies around Male’.

A currency in crisis

The government has struggled to cope with an exacerbating dollar shortage brought on by a high budget deficit – triggered by a spiralling public sector expenditure – in comparison with the foreign currency flowing into the country. Civil service expenditure has increased in real terms by 400 percent since 2002.

Banks subsequently demonstrated reluctance to sell dollars at the pegged rate of Rf 12.85, and high demand for travel, commodities and overseas medical treatment forced most institutions to ration their supply or turn to the flourishing blackmarket.

After a short-lived attempt to crack down on the illegal exchange of dollars, the government floated the rufiya within a 20 percent band, effectively allowing it to be sold at up to Rf 15.42 to the dollar.

The International Monetary Fund (IMF), which has been critical of the government’s growing expenditure despite a large budget deficit, praised the decision as a step towards a mature and sustainable economy.

“Today’s bold step by the authorities represents an important move toward restoring external sustainability,” the IMF said in a statement. “IMF staff support this decision made by the authorities. We remain in close contact and are ready to offer any technical assistance that they may request.”

However many companies dealing in dollar commodities immediately raised their exchange rates to Rf 15.42, along with the Bank of Maldives.

The government’s move, while broadly unpopular, acknowledges the devaluation of the rufiya in the wake of increased expenditure and its own inability to overcome the political obstacles inherent in reducing spending on the country’s bloated civil service.

Yet as Maldives relies almost entirely on imported goods and fuel, and many ordinary citizens have found themselves harshly affected by short-term spike in prices of up to 20 percent as the rufiya settles.

“We do not really know, based on the breadth of the domestic economy, what the value of the Maldivian rufiyaa is right now,” Economic Development Minister Mahmoud Razee admitted at a recent press conference.

The government has said it hopes the rufiya will stabilise within three months.

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MJA calls on police to provide opportunity for journalists to cover protests freely

The Maldives Journalists Association (MJA) has called on police and defense forces to provide opportunity for the press to cover protests freely, referring to an incident last night where journalists wearing press identification were ordered to leave the area, effectively bringing the protest coverage to a halt, while those who refused to leave were arrested.

‘’Police last night arrested two journalists and a web developer for the Sun Media group,’’ said the MJA in a press release. ‘’Some of them were arrested while were even wearing the press identification.’’

MJA claimed that journalists covering last night’s protest were physically attacked and one had pepper sprayed directly in the face.

‘’We remind journalists to work responsibly while covering protests or any other activity,’’ the MJA added.

Meanwhile the police issued another statement on the incident saying that they had been  informed that the protesters would be violent.

Police alleged that protesters caused damage to public property and committed arson.

‘’As the police were informed about the plans [beforehand], police met with Dhivehi Rayyithunge Party (DRP) MPs Ahmed Mahlouf and Ahmed Nihan and requested them not to conduct any such activities,’’ said police in the statement.

Police said that protesters disturbed the residents of the area, blocked traffic and that people living in the area were unable to reach their houses.

“Police discovered that lot of loose stones were hidden in the area for the protesters to attack police officers and public property,’’ police claimed. ‘’We also noticed that persons connected with gangs took part in this protest from the beginning.’’

Police also said that where necessary strict action would be taken against those who became violent.

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Gaddafi’s son and grandchildren killed in NATO strike

The youngest son of Libyan President Muammar Gaddafi and three of the ruler’s grandchildren were killed last night in a NATO airstrike, Libyan authorities have claimed.

Libyan government spokesperson Moussa Ibrahim said Gaddafi and his wife, who were present in the building, were unharmed in the attack that claimed the life of Saif al-Arab Gaddafi.

“We think now it is clear to everyone that what is happening in Libya has nothing to do with the protection of civilians,” Ibrahim told international media.  “This is not permitted by international law. Nato does not care to test our promises, the west does not care to test our statements. Their only care is to rob us of our freedom.”

NATO and the defence ministries of countries involved in supporting Libyan regime change did not immediately comment on the attack. The UN resolution 1973 made in March does not explicitly permit or prohibit assassination of military leaders – Gaddafi is the de-facto head of the country’s armed forces – but it is mandated to use “all necessary measures” to protect civilians.

Fighting for key towns and oil ports continues as Gaddafi’s forces clash with NATO-backed rebels based in the eastern city of Benghazi. On Friday aid ships were blocked from docking at the port of Misrata – the scene of some of the civil war’s most vicious fighting – while coalition warships cleared mines laid by Gaddafi’s military.

Last month the Maldives suspended diplomatic ties with the Libyan government as Western powers increased military pressure on President Muammar Gaddafi’s regime.

“Following the recognition of the TNC, the suspension of diplomatic relations with the pro-Gaddafi regime is based on the continuing deteriorating human rights and humanitarian situation in Libya, and increasingly clear evidence that the Gaddafi regime is guilty of crimes against humanity and war crimes,” the Maldives Foreign Ministry said in a statement.

The statement came after the US accused Gaddafi of using human shields and cluster bombs against his own population in Misrata.

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