Importers concerned about dollar shortage

The growing dollar shortage in the Maldives has raised alarm among several commodity import businesses operating in Male’ today, after at least one bank ceased to allow the free transfer of rufiya into dollar accounts.

“The problem we have is that local buyers pay us in rufiya, but our bank has now stopped allowing us to transfer this into our US dollar account,” the manager of one enterprise told Minivan News today.

“Our overseas suppliers have to be paid in dollars. How are you meant to run a business in this place? Surely they can’t go on like this?”

The Maldives grapples with a foreign currency deficit due to a heavy import-export imbalance. Goods from overseas must be purchased with foreign currency, but the Maldives has little ability to earn this outside the resort industry.

This industry typically pays salaries in local currency, while commercial banking is conducted outside the country. As a result the wider Maldives economy sees few of the dollars that tourists bring into the country, aside from what tourists spend in local shops and the little that can be extracted from a compliant bank.

“Currently the resort owners and wealthy businessmen bank overseas,” Press Secretary for the President Mohamed Zuhair explained, adding that this was largely due to a lack of trust in the local banking system.

“There is a lack of trust in the government, insecurity, and fear of things like seizure,” Zuhair said, noting that the government was “trying to promote that trust.”

An unwillingness among the banks to sell dollars for local currency does little to promote this confidence, with many banks imposing withdrawal limits even on dollar accounts. Earlier this week local media reported that average daily withdrawal limits had fallen from US$500 to US$200, effectively denying account holders access to their own money.

This, and a distrust of the banks, leads many Maldivians keep their savings privately – effectively ‘under-the -mattress.’

“A lot of money that should be in circulation is not being circulated, because people keep their savings privately,” Zuhair explained.

Companies forced to deal with suppliers in dollars are compelled to use the black market, which currently sells at Rf13.5-13.35 to the dollar (the rufiya is pegged at 12.85), making access to foreign exchange a matter of ‘friends and connections’. Most people with a local mobile phone will have received circulated text message appeals for dollars in the event of a emergency requiring air travel and overseas hospital fees.

Large currency events such as the donation of Rf9 million in relief aid to Pakistan have a further impact, with one government official observing to Minivan News that the quantity of money raised to assist Pakistan flood victims had reached a size where it would have a visible effect on the economy, even if enough dollars were to be found.

“Given the small size of our economy that amount of money will have an impact. It doesn’t make a difference that it is in dollars,” he said.

“On the one hand we have a currency situation to manage, on the other hand there is a humanitarian cost. Neither answer is politically correct.”

Zuhair noted that the country’s foreign currency income was pegged to foreign grant assistance and foreign investment, “both of which are improving.”

“The government has forecast it will receive $90 million this year in donor pledges, soft loans and grants, which I believe will improve the situation.”

Banks have increased the debit limit imposed on Maldivians travelling overseas, from US$200 to US$600, he said.

Moreover, the dollar shortage was seasonal and typically at a peak before the tourism industry’s high season, he said, due to begin in the next couple of months as winter hits Europe.

But for companies buying in dollars and selling in rufiya, the inability to trade legally in currency is hardly an incentive for further investment. Such companies are forced to rely on the unpredictable black market – or bank overseas, and perpetuate the problem.

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PA joins Salaf in condemning co-education

The minority opposition party People’s Alliance (PA), led by the former president’s brother, MP Abdulla Yameen, has strongly condemned the idea of introducing co-education.

A statement issued by the PA claimed that the government was attempting to “douse the light of Islam” in the country, and called on the government to “immediately terminate this action.”

“Majeediyya was a male school and Ameeniyya was a female school since the beginning, it is a big trait to the proud history of the two schools to introduce co-education,” the statement said.

PA said that co-education was implemented for island schools because there was no other way due to a lack of facilities, and that females and males were not mixed because people decided that way.

“in Arabiyya school two genders are mixed only when it becomes a basic need, however, we note that although students were mixed, girls and boys sit in different halves [of the classroom],” PA said.

PA referred to research conducted at Cambridge University claiming that single-sex education had better educational outcomes.

“The current government, as soon as they came in to administration, have cunningly attempted to douse the light of Dhivehi and Islam,” PA alleged. “It has given a deaf ear to the petition presented to the government with the signature of hundreds of concerned authorities.”

Minister of Education Dr Musthafa Luthfy yesterday told Minivan News that co-education has been a part of the Maldivian education system for a long time.

“When we studied at ‘Edhuruge’ [traditional places of learning, where classes were held at a teacher’s house] there were girls and boys mixed,” said Dr Musthafa. “There are currently only four schools in the Maldives that are not co-educational.”

Dr Musthafa said his idea was to develop an integrated educational system that comprised of science, commerce, arts and aesthetics.

“If anyone is in doubt, they can ask parents and school managements whether students have moved further away from religion or closer to it after I assumed office,” he said.

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President returns to Male’

President Mohamed Nasheed returned to Male’ last night after attending the opening of the Commonwealth Games in New Delhi, India.

Speaking to press upon his arrival, Nasheed revealed that the Indian government has pledged to build 400 housing units in the Maldives.

During his visit, the president met with the Prime Minister of India as well as business leaders and Indian infrastructure companies.

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Comment: Sharia punishments would be a sin given the current state of the judiciary

It is natural to want the Huddud (Laws of Qur’an and Sunnah) applied when one is experiencing so much death and tragedy as is happening in the Maldives.

But before the death penalty can be applied, the legal system must be absolutely objective. Unless there is a strong faith in the ability of the justice system, unless there is widespread faith that there are no incompetent judges or possibilities of bribery or subjectivity in the decision making procedure, it is a sin to implement Shariah Law which is a huge Amanah (trust) and MUST NOT BE TOYED WITH!

Before Maldives can implement Shariah, it MUST first establish widespread trust in the judiciary by through serious reform measures.

“O ye who believe! Stand out firmly for justice, as witnesses to Allah, even as against yourselves, or your parents, or your kin, and whether it be (against) rich or poor: for Allah can best protect both. Follow not the lusts (of your hearts), lest ye swerve, and if ye distort (justice) or decline to do justice, verily Allah is well-acquainted with all that ye do.” [An-Nisa 4:35]

The law as we know it is believed by many to be a shocking betrayal of the Quran’s Amr (command) to ensure absolute objectivity. Adhaalath and Al-Qisas (social justice and equity for all) are a MUST before Hadd can be applied!

What if your children were put to death for a crime that was made up? False charges occur very frequently.

What if the drug dealers and corrupt ones who control court rooms in much of the world killed your son or daughter on charges of “terror” or manufactured charges of murder, zina or anything – but all your children really did was try to prevent the drug dealers from harming people? And were killed for that based on false charges made up that they committed zina?

As the Ummah is as one body, and one feels the pain of every other, I cannot but help fend for the potential victims of injustice under a system which sees the rich and powerful use the legal system to exterminate their enemies unjustly.

Think about all those who stood up against tyrants in world history, and imagine if they had of been killed by the State in the name of Islam even though they were fighting for True Islam which is Peace and Justice.

Real peace cannot exist in the absence of justice – how many crimes were manufactured against the activists of history?

It seems that in the system we have, to be a Muslim, which implies standing up for the downtrodden, sick and oppressed, is to sacrifice yourself. This is because truth suffers in this unjust world, but that suffering must be embraced for others if one is to be a person of true leadership, as a leader is called to be ‘a shield for others’ (in Sahih Muslim, Book of Government.)

In many societies, the real criminals walk away from the courts – and in fact control the courts, and that does not look like it can be changed!

So, the killers and the drug dealers will be killing the innocent and oppressed in the name of implementing Islamic Law. Does that sound like Islam to you? That is serious Fitnah (dissension) from Islam…

The Hukm (Law) is deeply sacred, it is a massive Amanah (trust) which must never be taken lightly or under estimated.

Allah is Al Quddus, the Holy, and every injustice is made right in the Qiyamat. Read the Hadith about what is in store in Jahannum for Muslim leaders who missapply the Shariah Law for political ends, or for the wrong Niyat.

A judge is to be held accountable for his motives, and it is a massive Zalim (darkness – injustice) to missapply the Shariah Law.

I do advise anyone wishing to implement the Law to be aware not to play politics with the Sacred Law.

On many occasions, the Prophet (SAW) did not implement the death penalty (Rajm) for certain Hadd level crimes although others frantically pushed for it to be implemented. This was because absolute objectivity could not always be guarenteed in the decision-making procedure.

For example, in the Hadiths of Bukhari and Muslim, as narrated through Sahih Isnad (a reliable chain of narration) we read about some Muslims killing other Muslims because they were ‘not Muslim…’

They said Shahada only at the edge of the sword, it was claimed. In response to the claim that their Shahada was not genuine, the Prophet (SAW) said, “Did you cut their hearts open to see the Niyat (the quality of intention) of their hearts?’

The point being, if there is any chance that there could be a mistake, then only Allah (SWT) can judge in the Qiyamath, the judgement which is in the Akhira – the afterlife. Unless absolute objectivity can be guaranteed, the Prophet did not implement or advise Hadd.

On other occasions, according to Sahih Isnad in Bukhari and Muslim, it was obvious that a child was not the child of the father who thought they were the father. For Malsahah (social utility) the Prophet (SAW) said the child belongs to whom’s bed on which it was born. It was not beneficial to prescribe Hadd though it was technically due.

The Merciful essence of Islam and the Islamic intent of social harmony, social justice, would be betrayed by Hadd in such circumstances although Hadd was technically due.

A Qadi must be a qualified Mujtahid and must investigate the issue extensively before making a decision. Notice the word Mujtahid, notice how this word for study and decision making about the Law requires Jihad – striving or struggle – as is contained in the word. If a Judge exhausts all avenues of possible doubt, only then will he be rewarded for decision making, and those doubts include ones own heart’s doubts!

Justice and truth must exist in the heart of the people before it can be applied to the courts and the system.

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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US President to install solar on roof days after Nasheed

The White House is going solar after all – a home improvement that carries modest energy benefits but much larger symbolic importance, writes the Washington Post.

Of course, Obama is a ways behind the Maldives president, Mohamed Nasheed, who on Thursday will put the final touches on a solar photovoltaic system on his official residence. The low-lying group of atolls in the Indian Ocean is vulnerable to sea-level rise, and Nasheed has emerged as one of the developing world’s most vocal proponents of curbing greenhouse gas emissions. Nasheed has pledged to make the Maldives carbon-neutral by 2020.

It isn’t the first time the White House has used solar energy. President Jimmy Carter put 32 solar panels on the roof in the late 1970s, but President Ronald Reagan removed them in 1986. Two grass-roots campaigns have recently been lobbying President Obama to restore them as a sign of his commitment to renewable energy.

The roof of the White House residence will get solar panels and a solar water heater, Energy Secretary Steven Chu and the White House Council on Environmental Quality’s chair, Nancy Sutley, announced Tuesday.

“This project reflects President Obama’s strong commitment to U.S. leadership in solar energy and the jobs it will create here at home,” Chu said. “Deploying solar energy technologies across the country will help America lead the global economy for years to come.”

A campaign launched by Oakland, Calif.-based Sungevity called Solar on the White House and another by 350.org founder Bill McKibben tried to get Obama to reinstall solar panels.

“The White House did the right thing, and for the right reasons: They listened to the Americans who asked for solar on their roof, and they listened to the scientists and engineers who told them this is the path to the future,” McKibben said in a statement.

“If it has anything like the effect of the White House garden, it could be a trigger for a wave of solar installations across the country and around the world,” he said.

Read more

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Civil court rejects opposition case against airport development fee

The Civil Court has rejected a lawsuit filed today by the opposition coalition against the planned US$25 airport development fee to be charged by Indian infrastructure giant GMR, which recently won the bid to redevelop Male’ International Airport.

The coalition argue that any new tax must be approved by parliament, as per the constitution. However the Civil court dismissed the lawsuit noting that the plan had not yet been implemented.

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Couples clamour to begin wedded bliss on 10-10-10

Fifty couples, more than three times the daily average, are planning to get married on Sunday the 10 October 2010, reports Haveeru.

The binary number 10-10-10 prompted many to lodge applications at the Family Court to have their marriage ceremony performed on the day. The Family Court approved 50 applications, and told Haveeru that it will try and accommodate all requests.

On average 15-20 marriages are performed daily. On dates that are easy to remember – and leave little chance of forgetting the anniversary – the average always increases manifold. 87 couples got married on 08-08-08, 56 on 07-07-07 and 63 on 06-06-06, says Haveeru.

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The sunny side of life

Adopting proven sources of renewable energy such as wind and solar will reduce both the price of electricity in the Maldives and cut down on price fluctuations caused by the expensive importation of fossil fuels, claims Danny Kennedy.

He would know. The former Greenpeace campaigner turned solar power entrepreneur is riding a surge of interest in the renewable technology, spurred by economic rather than environmental imperatives.

“The solar industry grew 40 percent during the recession,” he tells Minivan News.

“The average price in the US is now US$0.24 a kilowatt, which makes solar power already a third cheaper than grid electricity in the Maldives.”

The Australian environmental campaigner ran Greenpeace campaigns across the Pacific in places such as Papa New Guinea, the Solomon Islands and Fiji, prior to moving to the United States and founding Sungevity, the residential solar company that is now the third largest such provider in the country after just a few years in operation.

Kennedy is in town to oversee the pro-bono installation of 48 photovoltaic (PV) modules on the roof of Maldivian President Mohamed Nasheed’s house, ‘Muleaage’, which convert solar radiation into direct current electricity using photovoltaic semiconductors.

Nasheed has already agreed to personally help install the units, which Kennedy expects will save the country US$300,000 in electricity over the 25-year warrantied lifespan of the units.

Sungevity calculated the solar production potential of Nasheed’s roof from its office in Oakland California, using aerial images from Microsoft’s mapping software.

The method uses a fiendishly clever piece of trigonometry developed by a young student from Sydney Grammar School in Australia, that takes the altitude of the photographing plane from the image’s metadata then uses trigonometry to calculate the angle and direction of the potential customer’s roof, and then plugs in known quantities such as the area’s solar potential and price of electricity.

The result is that customers can determine the amount of electricity the unit will generate and potential savings, over the internet, “with plus or minus one percent margin of error. That’s better than sending a kid onto the roof with a tape measure, which introduces human error.”

The schoolboy’s innovation stunned the Redmond heavyweight sent over to Sungevity from Microsoft to see how the software worked, who told Kennedy that the company couldn’t have done such a thing “with 300 of our own engineers.”

Installing the units on Nasheed’s roof is now the last phase of the operation.

“We installed the rails today, and we’ll install the PV modules over the next few days. There are still some conduits to install to the generating room, and some carpentry to do,” Kennedy explains.

As the President’s house is connected to the grid in Male’, the solar cells will feed electricity back into the grid and help power the city when Nasheed is not running the air conditioning or using the microwave.

“My sense is that he’s trying to do something symbolic and make a statement about solutions to climate change,” Kennedy said. “He seems to be trying to lead by example.”

Founder of Sungevity Danny Kennedy suggests the Maldives can develop and export its expertise in renewable energy

The light stuff

The driving force behind solar power is now economic, says Kennedy.

While the capital expenditure for a small unit runs to US$30,000, installations in countries like the US are heavily incentivised and banks are increasingly offering ‘solar financing’ so customers can avoid the upfront hit.

“Solar is now about saving money,” Kennedy says. “The US and Australia give cashback on solar installations, while in the EU the model is a feed-in tariff. In Germany the model pays 40 euro cents per kilowatt hour, so if you install a solar system with a 20 year lifespan, you can sit back and let the thing turn a profit.”

As a result, “Germany‘s projected installation this year is 7000 megawatts – by comparison, Male’s powerplant generates 38.76 megawatts.”

The UK is not far behind Germany, with a proposed 31 pence feed-in tariff: “The UK solar market is going to go gangbusters in the next few years,” Kennedy says.

Feed-in tariffs are the fastest way to promote quick adoption of the technology, Kennedy explains, but incentive models – cashback and feed-in tariffs – “take on the vested interests involved in fossil fuels.”

“The Maldives can move to clean fuel, hedging against fuel price rises while taking on the vested interests of incumbent technology,” Kennedy suggests.

The flat and predictable cost of solar power contrasts with that of fossil fuels, he says, which are expensive for a country like the Maldives to import, subject to price flucutations, and vulnerable to Middle Eastern instability.

“While a small system may cost up to $30,000, it will pay itself back tenfold over its lifespan. It’s a safe and predictable return on investment,” he says.

In the US at least, the price of grid electricity is rising by seven percent per annum, Kennedy explains. The cost of solar units is meanwhile plummeting as production of the devices, led by China, skyrockets.

“Every doubling in production of PV modules represents an 18 percent reduction in price,” Kennedy explains.

“The Chinese have noticed this are increasing production massively, and have doubled production twice in the last three years. There has been a 50 percent drop in price in the last 18 months.”

A country like the Maldives with comparatively low energy requirements has the potential to meet much of its energy demands through a combination of solar, wind and wet (tidal) renewable energy generation, Kennedy suggests, as well as create a great many jobs in the sector.

And if the German experience is anything to go by, that expertise is soon going to be in high demand across the world.

“German companies like Bosch said early on that they are going to become better at this that anyone else, and manage the IP (intellectual property). Now, it’s German engineering staff who are running the Chinese production lines.”

The Maldives could develop its own expertise, Kennedy suggests: “the challenges of powering an isolated island in the Maldives are similar to those of a town in the Australian outback,” he notes.

Kennedy sees the future of power generation as working rather like the internet, running as a grid with many small generators feeding into the system rather than the centralised production and distribution of power.

“I’m not a great advocate of large-scale power plant development, solar or otherwise,” Kennedy says. “It risks replicating the mistakes of the past – it’s a Faustian bargain you make, as with Edison: ‘Give us lights in the streets and we’ll give you a regulated monopoly.’”

Because of the pollution profile, plants are also located further from population centres and up to 30 percent of electricity generated is lost in transmission.

“There are new high-voltage DC lines becoming available but uptake is not substantial,” Kennedy says, predicting a future where power generation is controlled by the consumer and with less wasteful transmission.

“Who pays for that bit in lost in the middle?” he asks: “The public purse.”

With 50 percent of the world’s solar installations in Germany, weather is no longer as great a limiting factor of solar technology either, Kennedy says.

The principle obstacle has rather been one of “political will” – which Nasheed will demonstrate when he clambers onto his roof over the next few days to poses for photos with his new PV cells. Clearly a publicity stunt – but nonetheless a bright idea.

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Death penalty and Shari’a are the answer to escalating violence in the Maldives, say MPs

Imposing the death penalty, following Shari’a, and harsher prison conditions are the best way forward for solving the increasing violence in Maldivian society, several MPs have stated.

Fares-Maathodaa MP Ibrahim Muththalib said the major problem faced by society today is the decision of the criminal justice system to ignore Shari’a. “We cast aside the Shari’a and adopted man-made sentencing laws”, he said, making today’s violent society possible.

“Instead of being put to death, murderers are allowed to languish in prisons, given the opportunity to get married and to procreate. We cannot stop the violence without stopping such practices. We cannot stop such problems without a death for death policy”, Muththalib told the Majlis.

“I believe that if you impose the death sentence on just two people in this country, there will no longer be anyone left who will kill. If you amputate the hands of two people in this country, there will be no more thieves left. We have to think about how we can establish these principles of Islam”, Muththalib said.

The debate began after an emergency motion tabled by Hoarafushi MP Ahmed Rasheed on Monday to discuss the violent murder of 81-year-old business man, Hussein Manik, on September 27 in Hoarafushi.

“Those who kill should be killed”, Rasheed said, introducing the motion. “We should amend our penal system to ensure that those who endanger the lives of others would be held in solitary confinement for life, and are never eligible for parole”, Rasheed told the Majlis.

If the murderers of Mohamed, or “any criminals of the sort” should ever return to Hoarafushi, he said, he would personally lead a campaign to provide justice to the people of the island. “I will not hesitate, even if it means that I personally get entangled in the law.”

Madaveli MP Mohamed Nazim agreed that the death penalty, as in the Shari’a, was the answer. “Islam is unequivocal that the penalty for death should be death”. The current violence in the country is a consequence of ignoring or violating the teachings of Islam, he said.

“Otherwise, had we maintained the principle of death for death the murderer would not be there to kill again, or to encourage others to kill. The problems we are confronting today is a consequence of ignoring this principle, which would have set an example for the Ummah and the nation’, he said.

Nazim also said there is no need to amend the country’s murder laws, as the death penalty already exists. “I do not see anything in the penal code that says the penalty for murder should be changed to 25 years imprisonment”.

Nazim said that unless and until the death penalty is imposed, as it is stated in the current penal code, the escalating violence in the Maldives could not be stopped.

Thoddoo MP Ali Waheed attributed the increase in violent crime to the lack of proper prisons. “People who should be behind bars are sitting around on the beaches, sucking on butts and all sorts of things – this is the result”, he said.

Drugs, agreed several MPs, were the main cause for the increase in violence in the Maldives. “We know that sometimes people can get intoxicated to such an extent that they become unaware of their own actions. Sometimes murder can be committed,” said Vilifushi area MP Riyaz Rasheed.

MPs themselves should set a good example, and allegations of intoxicating substances being found in their places of residence or their vehicles are not helping matters, Riyaz Rasheed said.

“Pictures of official delegations abroad show them drinking some sort of a yellow liquid”, he said. Unless such ways are amended, there would be no solution to the social problems of the Maldives today, Riyaz Rasheed said.

Maavashu member Abdul Azeez Jamal Abubakr suggested that religious scholars can make the most important contribution to the problems in society. Perjury, he said, is a major problem in Maldivian courts.

The gravity of such an act, as stated in Islam, should be made clear. “It is incumbent upon religious scholars to relay the ominous penalties that await such actions in Islam”, he said.

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