Building trust – Transparency Maldives calls for enhanced asset disclosure

Transparency Maldives’ 2013 Global Corruption Barometer Survey found 97 percent of respondents believed corruption was a problem in the public sector, while the 2013 Maldives Democracy Survey revealed an alarming lack of confidence in democratic institutions.

“Most striking of all, however, are the remarkably high levels of cynicism of the public. Maldivians are far more cynical than publics in other comparable countries,” concluded the ‘Democracy at the Crossroads’ report.

A position paper released by the anti-corruption NGO last week, however, suggests a way to repair the country’s threadbare trust in its public figures through an enhanced asset disclosure regime.

“Asset declaration generally requires a certain category of public officials—also identified as ‘politically exposed persons’ to describe individuals entrusted with prominent public functions—to disclose their financial and business interests,” explains TM’s paper.

TM note that an effective asset disclosure system can detect corruption, demonstrate the government’s commitment to fight corruption, help make officials accountable, and – crucially – increase public trust.

The paper was produced after consultations with the Anti-Corruption Commission, the secretary general of the Majlis, and with then-Auditor General Niyaz Ibrahim.

Niyaz was replaced in October after amendments to the Audit Act were rushed through the Majlis just days after a report from his office implicated tourism minister Ahmed Adeeb in a US$6 million corruption scandal.

The same report also noted that Adeeb had failed to disclose his assets – as required under Article 138 of the Constitution – since his appointment to the post in 2012.

Hobbled system

Although Adeeb has denied the allegations and since pledged to release his financial statement to the media, TM Advocacy and Communications Manager Aiman Rasheed feels the incident provides a perfect example of why asset disclosure is essential.

“I believe that it is a right for the public to know the truth regarding the allegations of corruption against Minister for Tourism Adeeb. Asset disclosure is a mechanism to put to rest baseless allegations and to hold to account perpetrators of corruption.”

Rasheed noted that, under the current asset disclosure system, it is impossible to either prove or disprove whether such charges are politically motivated attempts at defamation – as Adeeb has claimed.

“In addition to the already hobbled asset declaration system, the absence of a verification mechanism means allegations of corruption—in particular, those concerning misappropriation of funds and illicit enrichment—are not investigated,” read the position paper.

TM argue that various systemic deficits are hindering the effectiveness of the current constitutional provisions.

Members of the Majlis – perceived as the most corrupt institution in the 2013 corruption barometer – have previously told Minivan News of their support for asset disclosure, with some reservations.

While all MPs asked about the practice in a series of interviews prior to this year’s Majlis elections backed the system, some suggested the disclosure of family members’ assets and of individuals’ net wealth to be too invasive.

Former MP Abdulla Mausoom – who did not stand for re-election – also suggested that full public disclosure may reduce the quality of MPs, suggesting that voters may be reluctant to select less wealthy individuals.

A number of MPs suggested an alternative system whereby additional income gained after entering the Majlis be used to gauge any potentially illegal enrichment.

Recommendations

While the Constitution requires the president and cabinet, MPs, and judges to submit annual declarations to the auditor general, the Majlis, and the Judicial Services Commission, respectively, the subsequent information is not available to the public.

The former auditor general told TM that a lack of punitive measures for those failing to submit information rendered the system ineffective.

TM noted that the current system does not require the submission of assets for spouses and children of public officials “which makes cases of illicit enrichment and conflicts of interest invisible and harder to detect.”

“Moreover, the disclosure of business and activities outside the jurisdiction of Maldives, and details of substantial gifts or benefits are also not a requirement in the current system,” stated the paper.

Furthermore, a number of high level officials are overlooked altogether by the current system, including the vice president, members of independent institutions, officials of state-owned companies and even the auditor general himself.

The position paper concluded with a number of recommendations including greater uniformity in current regulations as well as support for their implementation.

TM called for full public disclosure of assets, noting the positive impact on public perceptions of corruption in countries where the public could access such records.

It was also noted that an independent verification mechanism would identify conflicts of interest as well as reducing undue influence.

“Perceived corruption is lower in countries that verify officials’ statement than in countries that do not verify declaration content,” said the NGO – citing the 2006 Global Corruption Report of its sister organisation Transparency International.

The same report was also mentioned to suggest that sanctions for non-compliance would also enhance the public’s trust in their democratic institutions.

“Implementing an strong asset disclosure regime would show the state’s commitment to fight corruption and would give a strong message to public servants, a message of zero tolerance to corruption,” said Rasheed.

“We must do away with the culture of secrecy to prevent illicit enrichment, fraud, etc, and to do that, asset disclosure is key.”



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President Yameen warns of adverse impacts on tourism from threats against guests

President Abdulla Yameen has warned of adverse impacts on tourism from threats against tourists and urged Maldivians to leave aside political differences to assure a safe and secure environment for investors and tourists alike.

Yameen’s statement comes in the aftermath of a death threat issued against Jamaican dancehall artist Sean Paul who is scheduled to perform in Malé on New Year’s Eve.

“Even if such incidences do not actually disrupt the peace, if [guests] believe there is any danger, if they believe there is a threat, we are in effect pouring water into a bottomless container,” Yameen said in a speech in Addu City last night.

The President’s Office yesterday said that the online death threat against Sean Paul was a “local hoax” aimed at damaging the country’s reputation.

An investigation has revealed the threat is “designed to dissuade visitors, create an atmosphere of fear” and aimed “at tarnishing the longstanding reputation of the Maldives as a destination of peace, security, and tranquility,” the President’s Office said.

The video, which has since been removed, promised Sean Paul that “the world will see your burnt and blood drenched dead body,” should he perform in the Maldives.

Representatives of the singer are reported to be undecided about whether the performance is to go ahead.

The tourism ministry’s statistics have meanwhile revealed a 5.1 percent decline in tourist arrivals in November compared to the same month last year.

However, the Maldives welcomed 1.1 million arrivals by November’s end due to a strong growth in arrivals in the first half of the year. The figure amounts to a 7.9 percent increase in arrivals compared to 2013.

President Yameen said the government aims to bring the world’s wealthy to the Maldives and said Maldivians must find common ground with the government despite differences in political ideologies.

“With utmost sincerity, I note it will not be the same leaders ruling the country. Today it is me. Tomorrow it will be someone else. But Maldivians will continue to live on this land. This land must be peaceful,” he said.

Maldivians must not allow foreigners the opportunity to influence the country’s internal affairs, he continued.

“We must not call on foreign militants to come to the Maldives claiming the situation is bad in the Maldives,” he said.

The opposition Maldivian Democratic Party (MDP) has expressed concern over declining tourist arrivals at the onset of the peak tourist season in the Maldives, blaming the government for lack of a clear policy on tourism and ad-hoc decisions to levy additional tourism taxes.

Noting a seven percent decline in arrivals from European Union, a 22 percent decline from Eastern Europe, four percent from the United Kingdom, 24 percent from France, three percent from Italy, and a 13 percent decline from India in November, opposition leader and former President Mohamed Nasheed in a tweet said “the government’s policy will damage the industry”.

Tourists from the European Union made up 43.3 percent of arrivals while Chinese tourists made up 31.4 percent of arrivals. Russian arrivals declined by 31 percent this year due to the economic downturn in the country.

Nasheed said the threat against Sean Paul is the latest threat to artists by extremists in the country, arguing that “Government support for and refusal to prosecute them [extremists] will affect tourism.”



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Home Ministry opens up second call for newspaper, magazine re-registration

The Ministry of Home Affairs has opened up a second re-registration call for all news outlets and magazines.

The ministry had ordered all registered newspapers, news websites, magazines, and periodicals to re-register in October during the vote to elect members for the Maldives Media Council.

The order came after reporters complained over the eligibility of publications that were not in regular circulation to vote in the elections.

The ministry said it was opening up a second call due to popular requests. Media companies and news outlets must submit proof that they have been regularly publishing in the past six months.

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Sean Paul threat a hoax to create atmosphere of fear, says President’s Office

The President’s Office has said that the online death threat against Jamaican dancehall artist Sean Paul was a “local hoax” aimed at damaging the country’s reputation.

“The investigation has revealed that the threat is designed to dissuade visitors, create an atmosphere of fear and disappoint the many thousand fans of Mr. Sean Paul who eagerly await the landmark concert in the capital, Male’.”

“The threat is also aimed at tarnishing the longstanding reputation of the Maldives as a destination of peace, security, and tranquility,” continued a statement released today (December 28).

The video (since removed) promised that “the world will see your burnt and blood drenched dead body,” should the artist perform in the Maldives.

Representatives of the singer are reported to be undecided about whether the performance is to go ahead.

Although the logo of the Bilad Al Sham Media (BASM) group appeared in the Youtube video, the Syrian-based jihadi group immediately distanced itself from the threat, also suggesting a hoax designed to defame the country’s reputation.

Though it condemned the concert itself as an “ideological attack” on the youth, BASM accused the opposition Maldivian Democratic Party of being behind the threat.

Despite assurances from tourism minister Ahmed Adeeb that the concert would continue, Islamic minister Dr Mohamed Shaheem Ali Saeed has criticised the decision to hold the event.

Similarly, Adhaalath Party MP Anara Naeem and religious NGO Jamiyyathul Salaf have since spoken out against the concert.

The President’s Office today noted that the Maldives was famous for its peaceful people and its safety as a destination for over one million tourists a year.

“However, local authorities will take every possible measure to ensure the safety of Mr. Sean Paul and all his adoring fans in the Maldives, to ensure that the concert is a resounding success.”

Police have corroborated the President’s Office statement, saying that their investigations into the incident had revealed the threat to have been a hoax.

Message from artist

Meanwhile, Sean Paul has thanked the people of the Maldives for inviting him to perform, noting that he was aware of the concerns raised by some ahead of the concert.

“I have felt the love and support from many Maldivian citizens looking forward to the concert,” read a message posted on the singer’s official Facebook page.

“I have also heard the concerns of some citizens regarding the concert and the concerns of my fellow Jamaicans.”

“During this very holy season for people of all faiths, I pray for peace.”

Jamaican media yesterday reported that a final decision on whether Paul would perform was yet to be made, following the threat posted on Youtube on December 25.

“It is because I have the utmost respect for various religions and cultures that I have sought to travel the world to learn and to share,” read the status update on Paul’s page today.

“I support freedom of expression within whichever context best suits you and do not judge others based on their religious beliefs.”

Sean Paul’s publicist has been quoted in the Jamaican Observer as saying that the discussions with event organisers were ongoing.

“We are aware of the developing situation. We are currently in contact with all related parties concerning the concert to address the matter. No further details are available at this time,” Carlette DeLeon told the paper.

The ‘Tourist Arrival Countdown Show’ has been organised by event management company Chopart after tourism minister Adeeb invited the grammy award winning singer to perform in a free concert as part of the government’s tourism promotion efforts.

Although the event’s posters feature the ‘Sunny side of life’ logo of the Maldives Marketing and PR Corporation, when contacted by Minivan News today, the corporation said that it was not involved in arranging the event.

When contacted for further comment today, Islamic minister Shaheem stated only that the concert was not being arranged by his ministry before declining to comment further.

Tourism minister Adeeb was not responding to calls at the time of publication.



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Street value of Faamudheyrige alcohol bust at MVR200,000

The Maldives Police Services have confiscated 70 bottles of liquor and 70 cans of beer with a street value of MVR200,000 (US12,970) from Faamudheyrige in Maafannu ward in Malé.

The police searched Faamudheyrige under a court warrant following the arrest of a foreign national carrying three bottles of liquor on the street.

Head of the Drug Enforcement Department Ahmed Shifan claimed it is foreigners who are mainly active in Malé’s black market trade in alcohol, but said they received help from Maldivians.

The police have noted a spike in alcohol sales in Malé this month due to new year celebrations, and have confiscated at least 400 containers of alcohol since December 1.

Shifan has previously said the police would not allow the use of alcohol or other illegal activities to take place at new year celebrations.

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MDA leader ‘Sun Travel’ Siyam maintains worst attendance record in third session of 18th Majlis

The People’s Majlis has published an attendance report for its third session of the 18th Majlis, with MP Ahmed ‘Sun Travel’ Siyam – leader of the government-aligned Maldives Development Alliance – with the worst record.

According to the report published on the Majlis website, Siyam attended only 10 of the 29 parliamentary sittings for the third session. He did not provide any reason for not participating in 17 of the sittings, and was on leave for two.

The Dhaalu Meedhoo MP was also at the bottom of the 17th Majlis’s attendance records.

Jumhooree pary MP Ilham Ahmed was second in attending the least parliamentary sittings, participating in 15 of the 29 sittings. Next was ruling Progressive Party of Maldives MP Ahmed Nazim and opposition Maldivian Democratic Party Rozaina Adam – both participated in 16 sittings.

Out of the total 85 members, 22 were present at all of the Majlis’ sittings.

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Democracy House launches #policy22 campaign calling for youth participation in policy-making

Democracy House Maldives has launched its ‘#policy22’ campaign, highlighting the importance of youth participation in decision-making at the policy level.

The campaign – given its name in relation to the percentage of the Maldivian population classed as youth – seeks to create a platform where the youth’s concerns can be heard and acted upon by decision makers.

The youth-led NGO released a report titled ‘Youth Voices’ on December 25, with members of the youth community presenting the report to MPs outside the Majlis, and taking ‘selfies’ with those in support of the campaign.

Democracy House’s Dhumya Mohamed explained that the booklet contained concerns put forward by the youth through a number of consultations as well as including information from several reports on Maldivian youth.

“Over 40 individuals attended the last consultation. The most pressing issue brought forward by the youth was lack of opportunities to participate in policy level decision making,” said Dhumya.

The report notes that there is currently no culture of consultation with the youth despite making up such a significant proportion of the population. The report requests parliamentarians to get youth opinion during the legislative process and to ensure the freedom of expression guaranteed by the constitution.

Published last month, the booklet highlights additional problems brought forward during the consultations such as unemployment and the exploitation of youth in politics.

Youth unemployment

In the report, Democracy House expressed concern at the high youth unemployment rate, noting that there is little awareness and no proper enforcement of the Employment Act.

Suggestions to tackle the high rate of unemployment include utilising youth centers for youth leadership and capacity building programmes, and encouraging young entrepreneurs.

While speaking to Minivan News, Minister of Youth and Sports Mohamed Maleeh Jamal said that the government’s aim is to reduce unemployment to three or four percent in the next five years.

Maleeh pointed out that a youth unemployment register has been created and that there are 13,000 registered individuals within the system.

“We provide the database for organisations who are seeking recruits. However, we have received complaints of individuals not reporting to interviews, work, and also of quitting work within weeks,” said Maleeh.

Maleeh speculated that a significant percentage of youth unemployment is voluntary while stating that the government is running awareness campaigns and career guidance to increase the motivation of young people.

The #policy22 booklet noted a “disconnect” between the current school curriculum and life skills noting that many were “not able to handle adult responsibilities after we leave school.”

Democracy House states youth unemployment to be as high as 43 percent, though the International Labor Organization (ILO) estimates the figure to be at 30 percent. The current government has pledged to create 94,000 jobs during its term.

One request mentioned in the #policy22 booklet appears to be being addressed by the government, with President Abdulla Yameen launching the ‘Get Set – Maldives Youth Entrepreneurship Program’ last month. The scheme aims to provide MVR200 million (US$12.9 million) in loans to assist the development of small and medium sized enterprises.

Exploiting youth for political gain

The Democracy House report claimed that there is “misconduct and illegal activities” aimed at youth from the political arena such as “bribing and promises of advancement such as job opportunities, during campaigning”.

The report said that the youth is often used to gain numbers at political rallies and mobilised at political events “basically to make noise rather than do anything substantial”.

A 2012 assessment on gangs operating in Maldives said that many gangs receive income through exchanges with political actors or business people and that the exchange is usually in the form of money or sometimes alcohol.

The study read that gangs were given incentives to participate in political protests, start political riots, destroy property or injure a third party, and that money is often given to gangs to initiate a fight so as to divert media attention from a political issue.

Despite the strong youth platform of President Yameen’s election campaign, youth leaders have previously criticised the government for a failure to consult with youth groups when formulating policy.

Democracy House called for campaign activities to be better monitored, and candidates that go against political party and elections laws and regulations to be penalised.

Founded in 2008 the NGO aims to promote a culture of democratic ideals and values in the Maldives and amongst its people through educational initiatives.



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Expansion of economic activity in third quarter driven by tourism sector: MMA

Expansion of domestic economic activity in the third quarter of 2014 was “driven by the sustained growth of the tourism sector,” according to the Maldives Monetary Authority’s (MMA) quarterly economic bulletin.

“Total tourist arrivals to the country increased to 299,491 in Q3-2014, growing by 7 percent when compared to the corresponding quarter of last year while bednights grew by 5 percent,” the bulletin stated.

The central bank explained that the “difference in the growth rate of arrivals and bednights is explained by the fall in the average duration of a tourist visit from 6.0 days to 5.8 days during the period.”

Tourism receipts are meanwhile projected to reach US$594.9 million in the third quarter, an annual growth of 20 percent.

“In Q3-2014 the average operational bed capacity of the industry also increased by 4 percent when compared to Q3-2013 and rose to 26,921 beds, contributed by the opening of three resorts and thirty-three guesthouses during the period,” the bulletin revealed.

“Despite the increase in the operational bed capacity of the industry, the occupancy rate of tourism accommodation facilities remained relatively unchanged at 70 percent when compared to Q3-2013, owing to the higher increase in bednights.”

However, tourist arrivals in November declined by 5.1 percent compared to the same period last year, according to statistics from the tourism ministry.

While tourist arrivals reached 89,778 guests last month, 94,584 arrivals were recorded in November 2013, with arrivals from Europe and the Asia Pacific region down 6.8 percent and 4.6 percent, respectively.

Industry insiders had previously noted that a recent increase in T-GST alongside the continuation of Bed Tax in November had contributed to fewer bookings.

The Russian market meanwhile continued to decline due to the weakening of the Russian economy, with Russian arrivals declining by 31.3 percent to 5,273 arrivals in November from 7,675 arrivals in November 2013.

“Arrivals from the country declined at an annual rate of 7 percent in Q3-2014, compared to a decline of 5 percent in arrivals in Q2-2014,” the bulletin stated.

The number of Chinese tourists – representing the single largest market share with 27 percent – declined by 4.9 percent.

However, total tourist arrivals from January to November increased 7.9 percent from 1,020,190 guests in the corresponding period last year to 1,101,113 in 2014.

The MMA’s quarterly bulletin observed that the Chinese market was the “single major contributor to arrivals growth” in the third quarter of 2014, increasing by 8 percent compared to the previous quarter.

“Meanwhile, arrivals from Europe (which constitutes over half of total tourist arrivals) registered a marginal increase of 2 percent in Q3-2014 compared to a 6 percent growth in Q2-2014, contributed mainly by the increase in arrivals from Germany and Spain,” the bulletin noted.

“While the UK market (the largest market from Europe) posted a sluggish performance owing to weak economic conditions, the German market, being the second major source market from Europe, registered a 7 percent growth (12% growth in Q2-2014). Both Germany and UK each accounted for about one-fifth of European arrivals during Q3-2014.”

Other sectors

The central bank noted that the fisheries sector “continued to be adversely affected by falling tuna prices that deteriorated further in the international market during the review quarter.”

The volume of fish purchased from local fishermen by fish processing and exporting companies in the third quarter registered an annual decline of 24 percent, the MMA revealed.

“Additionally, the poor performance of the fisheries sector was also reflected by the fall in both the volume and earnings of fish exports in Q3-2014, by 31 percent and 21 percent, respectively,” the bulletin explained.

The construction industry “continued to strengthen, as indicated by the strong annual growth in construction-related imports and commercial bank credit to the sector.”

Reflecting a 17 percent annual increase in commercial bank credit to the wholesale and retail sector as well as a 13 percent annual growth in private sector imports, the bulletin noted that trade activity also improved in the third quarter.

The rate of inflation in the capital meanwhile decelerated from 3.1 percent in the second quarter to 2.5 percent in the third quarter, “contributed primarily by the slower growth in food prices.”

“Meanwhile, inflation excluding the volatile fish prices also decelerated during the quarter at the same rate as total inflation, explaining the relatively stable fish prices during the year as a whole,” the bulletin observed.

Overall inflation remained “steady and low” at 5.0 percent, the central bank noted.

“However, food inflation registered a much lower rate of 0.2 percent in the review quarter, compared to 3.2 percent in Q2-2014 and 7.4 percent in Q3-2013.

“A large decline in prices was noted for vegetables, particularly onions, and can be attributed to the significant decline in onion prices in India, where 89 percent of onions are imported from. The slowdown in domestic food prices also reflect the easing of global food prices, which have been declining for the most part of 2014.”



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Foreign Minister calls for greater resilience to climate change impacts

Minister of Foreign Affairs Dunya Maumoon has called on the Maldives to build individual and collective resilience to face rising seas and extreme weather events associated with climate change.

In a statement issued on Friday commemorating the tenth anniversary of the 2004 Indian Ocean Tsunami, Dunya said: “Floods and rising sea levels threaten the loss of our livelihoods, our homes, our cultures and our very existence.”

“The words of scientists that have for years warned of frequent natural disasters due to climate change, are undoubtedly proving to be true.”

The Maldives must take action at home to build resilience, and continue to urge other countries to do their part to combat climate change, Dunya said.

Although the Maldives has urged the international community to reach a strong and legally binding agreement to reduce carbon emissions, President Abdulla Yameen’s administration has begun exploring for oil in the Maldives.

In October, Fisheries Minister Mohamed Shainee said a research vessel has found hydrocarbon source rock in the Maldives.

December 26 is marked in the Maldives as National Day of Unity to celebrate the collective tsunami relief effort.

“What we saw that day was the true spirit of oneness, our common history and the bonds that bind us together like no other,” Dunya said.

At a ceremony to mark the tenth anniversary of the tsunami on Thursday, Housing Minister Dr Mohamed Muizz admitted government negligence in the delays in constructing permanent housing.

Muizz said the government has now completed a majority of the 338 remaining houses for families made homeless by the tsunami. He claimed there are no families living in temporary shelters at present.

The 338 houses include 41 on Thaa Atoll Madifushi, 87 on Gaaf Alif Dhaandhoo, 50 on Gaaf Alif Nilandhoo, 76 on Gaaf Alif Vilingili and 84 on Gaaf Alif Maamendhoo.

Only 51 houses remain unfinished. These include one house on Dhaandhoo, five on Nilandhoo, 12 on Villingili, and 33 on Maamendhoo.

Muizz said the government hopes to complete all houses by the end of 2014.

The housing projects in Thaa and Gaaf Alif atolls were initially commissioned to Maldivian company Vimla and an unnamed foreign company.

The government this year handed over the projects to the Maldives National Defense Forces (MNDF), state-owned Maldives Transport and Contracting Company, the Maldives Road Development Company, and several local companies.

The government is to give these families a grant of MVR 25,000 to buy furniture as they move into their new homes.

In his speech, Muizz also claimed the opposition had obstructed the construction of the permanent housing by vandalising buildings. He did not provide additional details.

President Yameen at the National Day of Unity function urged Maldivians to control negative emotions such as anger, hatred and envy in order to work towards sustainable unity.



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