Tag: maldives news

Doubling salary spend in 2007-09 crippled economy: World Bank

An internal World Bank bank report produced for the donor’s conference, called ‘Placing the Macro Challenge Facing the Maldives in Context’ has revealed the full extent of the economic challenge facing the country.

“The Maldives faces the most challenging macroeconomic situation of all democratic transitions that have occurred since 1956,” the report claims, noting that the full level of financial strife “may not be fully appreciated.”

In terms of GDP growth rate the Maldives is in the lowest 10 percent of the distribution of all transitions, and in terms of public sector deficit, the Maldives faces the worst situation of all previous democratic transitions.

Under the heading ‘How did the Maldives get into this situation?’, the World Bank report notes that “the origin of the crisis is very clear… the wage bill for public sector employees grew dramatically in a very short time.”

An accompanying graph of the country’s total spending on ‘salaries and allowances’ shows a doubling of expenditure between 2003 and 2007, and a sharp increase between 2007 and 2009 as spending more than doubles yet again from Rf2 billion to almost Rf5 billion. Revenues meanwhile plummet steadily during 2008.

worldbanksitrep
Inflated spending on salaries in 2007 sparked an economic crisis

“Even before government revenues fell and when government revenues were at an all time high in 2008, the ratio of the wage bill to revenues at 46.5 percent was also at an all-time high (46.5 percent compared to an average of 38.1 percent between 2000 and 2007). When revenues plummeted in 2009, the share of the wage bill to revenues rose an astronomical 89 percent,” the report explains.

“While part of the increase was due to hiring more workers, the major part of the increase was due to the increase in compensation,” it said.

Increases to the salaries and allowances of government employees between 2006 and 2008 reached 66 percent, “by far the highest increase in compensation over a three year period to government employees of any country in the world,” the report noted.

Spokesman for the Civil Service Commission (CSC) Mohamed Fahmy said the increases needed to be considered in the context of “the total budget situation”, and were in line with government expenditure during the period.

“We have a tradition of salary increases every other year,” he said, rather than an annual increase based on inflation.

Those paid by the government included not only civil servants, “but political appointees, commissions, the judiciary”, he emphasised.

“Our case all long has been that everyone employed by the government has to be treated equally,” Fahmy said.

“If the government does not have the money to pay in full, then whatever it does have has to be paid out in an equitable manner that upholds the constitution. Everybody has to be treated equally – it is very important to make that distinction.”

World’s greatest tax haven

Meanwhile, the World Bank’s annual ‘Doing Business’ report for 2010 saw the Maldives’ ‘ease of doing business’ ranking fall from 71 to 87, and identified no ‘business-friendly’ reforms. The report acknowledges the Maldives as the world’s number one tax haven, although this could soon change if a pending bill on taxation is passed by Parliament.

Countries with successful business reforms “follow a longer-term agenda aimed at increasing the competitiveness of their firms and economy,” the report noted.

“But while successful reformers follow a clear direction in their policy agenda, they do not hesitate to respond to new economic realities,” it said. “Mauritius, the top-ranked economy in Sub-Saharan Africa, just announced a new insolvency act ‘to maintain the viability of the commercial system in the country.'”

The top countries in which to do business are Singapore, New Zealand and Hong Kong, the report noted.

Correction: An earlier version of this story described Mohamed Fahmy as a member of the ‘Civil Service Association(CSC)’.  Fahmy is a member of the Civil Service Commission (CSC).

Likes(0)Dislikes(0)

Man found dead in woods

A 52 year old man was found dead in the woods of Faresmaathodaa in Gaafu Dhaalu Atoll, after he was believed to have fallen from a coconut tree.

Miadhu reported that Ali Hussain Manik was found by other islanders at 6:00am this morning, nearby a rope used for climbing coconut trees and a carving knife.

The body was taken to the Faresmaathodaa Health Centre where the attending doctor concluded Manik had died on the May 23.

The Police are continuing to investigate the incident, Miadhu reported.

Likes(0)Dislikes(0)

Maldives increasingly fundamentalist: Washington Times

“The Maldives, once considered a liberal Islamic nation, has been increasingly adopting fundamentalist Muslim practices,” the Washington Times newspaper claimed yesterday.

The piece, which appeared in the paper’s diplomatic news column Embassy Row, noted that the Maldives has been “hosting Taliban terrorists from Afghanistan and breeding a youth attracted to Islamic jihad. Many analysts report that Maldivian young people have been recruited by Pakistani terrorists.”

“The US ambassador to the Maldives is discussing the possibility of transferring some terrorism suspects from the USmilitary prison in Guantanamo Bay, Cuba, to the tropical island nation in the Indian Ocean, which some analysts say is a ‘paradise for Islamic radicalism’,” the newspaper claimed.

Likes(0)Dislikes(0)

Leaked Gitmo documents spark police investigation

Foreign Minister Dr Ahmed Shaheed has said the ministry yesterday asked police to investigate the case of leaked documents concerning Guantanamo Bay detainees.

Dr Shaheed said the documents consisted of unofficial communications to the Maldives government from the US government, and a document sent to the Attorney General’s office by the Foreign Ministry.

Dr Shaheed said the documents included an unofficial letter sent from the US to discuss how a legal framework could be established to bring in the detainees.

”The documents were sent to Parliament’s National Security Committee by an MP,” Said Dr Shaheed. ”MP Ali Waheed was the person who first spoke about these documents.”

Dr Shaheed said that the person who leaked the documents and delivered them to MPs was responsible for the act.

”The Maldivian government has not officially agreed to bring in the detainees,” he said. ”It is just at an early stage and a group of people who do not properly understand the matter are worried and concerned.”

Independent MP Mohamed Nasheed said the government’s desire to investigate the case was “stupidity and weakness”, ”as there are more concerning issues than the leaked document.”

Nasheed claimed to have seen the documents, summarising the communication in his blog and identifying it as an official diplomatic document sent by the US government to the Maldivian government.

”The government cannot take action against the person who leaked the documents,” said Nasheed. ”There is a law allowing people to inform others if an unlawful activity was going on inside the area in which he or she works, and according to that law, no action can be taken against that person.”

Nasheed said the letter to the AG from Foreign Ministry revealed that the government has already agreed to bring the Guantanamo Bay detainees in the country, but legal advice was needed on the matter.

”That was an official agreement and they are just pretending to make it an ‘early stage negotiation’,” Nasheed said.

He added that the document from the US government consisted of a list of things it believed had been been agreed by the Maldives, and was requesting confirmation.

”One of the leaked document gives information that the former inmate’s communication will be under surveillance and they cannot leave the Maldives,” Nasheed said.

Press Secretary for the President Mohamed Zuhair said that the document was not leaked but was “deliberately stolen”.

Zuhair said anybody who stole the documents has causes “a lot of trouble” for the Maldives, by disrupting diplomatic relationships between countries.

”Now the US government may think that we deliberately leaked the document,” Zuhair said. ”The recipient should be aware that it is unlawful to have a leaked document of the government and should have clarified whether the document was the original before distributing it to everyone.”

Zuhair said the US government had approached the Maldives to handle two detainees from the Guantanamo Bay prison.

”One of them was a man born in the West Bank,” he said. ”We do not have the information on the other person yet,”

He said the Maldives would be receiving “numerous benefits” for accepting the two detainees from Guantanamo Bay prison.

Likes(0)Dislikes(0)

BML CEO flees the country amidst internal investigations

CEO of the Bank of Maldives (BML), Ganesan Subramanyam, left the country on Sunday amidst an internal investigation by the Board of Directors concerning sexual assault.

A source familiar with the matter said the Indian national left as soon as the investigation started.

“He didn’t resign, didn’t tell anyone,” said the source.

“We knew someone complained that he was doing this,” he said, adding that this was the second complaint made by a female BML employee.

“The first girl complained to the assistant manager shortly after Subramanyam began working at the bank,” he said, but added “the story just vanished” shortly after the complaint. The employee is still working at the bank.

Subramanyam “took everything from his office, all his personal effects,” according to the source, and no one has heard from him since.

Police Sub-Inspector Ahmed Shiyam confirmed today neither case has been sent to the police.

BML said a staff member had “reported to the Board alleging improper conduct on the part of the MD and CEO, Mr Ganesan Subramanyam, and the matter is engaging the priority attention of the Board.”

They added “the MD is outside the country” and “a decision about his employment status will be taken after completion of investigations.”

Chief Credit Officer, Ramesh Krishnan, has taken over Subramanyam’s post for the time being, and “normal business is being conducted.”

Likes(1)Dislikes(0)

Resettling GITMO detainees will tarnish tourism industry: MATATO

The Maldives Association of Travel Agents and Tour Operators (MATATO) has warned the government that its plans to resettle Guantánamo Bay prisoners in the Maldives, and the recent Afghan peace talks that took place in the country, could “tarnish the prestigious name” Maldives has made for itself as a tourism destination.

“The association notes that the international media has been writing on the matter of bringing in the prisoners, who have been allegedly linked to severe inhumane crimes,” the association noted, adding that the BBC had described the government’s plan as “transforming a tourists’ paradise to a paradise for terrorists.”

Their concern was that tourist arrivals would decline due to the international perception of the country, creating a devastating domino effect in the country’s tourism industry.

Furthermore, they said “bringing Guantánamo Bay prisoners will badly affect the tourism industry and so this association calls on the government not to do anything that would pave the way for such a thing.”

MATATO board members have been planning a meeting on the issue this week, but it has been postponed twice due to several members being out of the country.

Secretary General of MATATO, Mohamed Maleeh Jamal, said they did not have quorum to hold the meeting yesterday, but are trying to gather enough members to hold it as soon as possible.

He told Minivan News yesterday “we are meeting regarding the Afghan talks, which is quite a sensitive issue.”

Board and council member of MATATO, Sharif Ibrahim, said whether or not the recent events will have a negative impact on the tourism industry in Maldives “is all about how you see things.”

Referring to the Afghan peace talks, he said the international community “might see us as a loving, peaceful country. Somebody had to step in and help. Some people will see this as a good thing.”

As to the resettlement of Guantánamo Bay prisoners, he said “it may have a negative effect,” but added everyone must keep a “broad mind” before jumping to conclusions.

“I haven’t seen any bad reactions yet,” he said, “I don’t think it will have a bad impact. We’ll have to wait and see.”

Although MATATO have voiced their concern, other associations are not so worried about the Maldives’ reputation, or its effect on the tourism industry.

Maldives Resort Workers posted an article on their blog titled ‘Gitmo resettlement will NOT damage Maldives’ reputation’.

In the article, they repeatedly argued that MATATO’s concerns of the resettlement of Guantánamo Bay detainees and the recent Afghan peace talks are exaggerated views, and are sure that neither issue will have a negative effect on the industry.

They gave several reasons back up their argument, saying that resorts in the Maldives are usually visited by “high spenders” who “generally have their heads with them. So they could not possibly be unaware of world politics or ramifications of it.”

They also argue that Guantánamo Bay detainee centre is “not a terrorist camp or training ground for terrorists,” and they support US President Obama’s bid to close it down. They also added that, “this time, the president [Mohamed Nasheed] is correct. Absolutely correct to ZERO decimals without error.”

The article further reads the opposition parties in the country are “taking advantage of the ignorance of the masses to gather support,” and they have applauded President Nasheed for refusing to answer journalists’ questions at a press conference last week.

“In this case,” it continued, “the opposition is using media to the hilt to discredit a rather commendable move by the president.”

They add that MATATO members are “just individuals who make a life selling package holidays to unwary tourists” and they are “the most worker unfriendly people who works [sic] in the tourism industry.”

The Maldives Association for Tourism Industry (MATI) did not wish to comment on the issue, because “we don’t want to lend anything to either side of the argument.”

The government has sustained any prisoners resettled in the Maldives would be first cleared of any criminal charges, and have repeatedly assured “they are not terrorists” and the transfer is “purely humanitarian.”

Minister of Tourism, Arts and Culture, Dr Ali Sawad, did not respond to Minivan News at time of press.

Likes(0)Dislikes(0)

Iranian fishermen released from Maldives jail

After six months in a Maldivian jail, thirty crew members from two Iranian fishing boats have been released, reports Miadhu.

The vessels, named Arvin and Hormoz, were detained and the crew arrested last November by the Coast Guard for illegally entering Maldivian waters.

The Iranian Foreign Ministry released a statement confirming they had been released last week and are on their way back to Iran.

Coast Guards found another Iranian fishing vessel last week near Havadhu Atoll. The crew were out of food and water and had been adrift for several days.

The Foreign Ministry noted the men were now in good condition.

Likes(0)Dislikes(0)

Foreign Ministry reports leaked documents to Police

Foreign Minister, Dr Ahmed Shaheed, has filed a case at the police regarding leaked documents concerning the Guantánamo Bay detainees issue, reports Miadhu.

Dhivehi Rayyithunge Party (DRP) MP Ahmed Nihan told Minivan News last week “some papers between the President’s Office and some ministries were leaked.” State Minister of Foreign Affairs, Ahmed Naseem, confirmed documents between his ministry and the President’s Office had been leaked.

The documents include a copy of a letter from the Foreign Ministry to the Attorney General, seeking advice on the legalities of the transfer. A note from the US Embassy outlining the legal framework of the transfer was also included.

Dr Shaheed said the documents were forged to some extend, according to Miadhu, making the public worry about the issue.

The Human Rights Commission of the Maldives (HRCM) has also asked the government to release accurate information on the issue.

Likes(0)Dislikes(0)

Claims of citizenship for Guantánamo detainees are “total lies”, says Attorney General

Attorney General Husnu Suood has described a claim by the Opposition Dhivehi Qaumee Party (DQP) that Guantánamo Bay detainees will get Maldivian citizenship as  “a total lie.”

After a meeting with the US Ambassador in Colombo last week, DQP has said the agreement between the US and Maldivian government involves granting citizenship to any detainees resettled in the country.

AG Suood said negotiations were still at a very “early stage” and added that claims of the government giving citizenship to foreign detainees were fabricated.

“We are not obliged to give citizenship to foreigners,” he said, noting the same guidelines would apply to a foreign detainee as to any other foreign national wishing to acquire Maldivian citizenship.

He said “we are still in the preliminary stages of negotiation between the Ministry of Foreign Affairs, the US Embassy and the governments,” and currently there is only “a basic text, a draft proposal” of the regulations and procedures for resettling Gitmo detainees in the country.

The AG’s office and the Ministry of Foreign Affairs will then make comments on the draft. “Based on that,” Suood said, “the ministry will negotiate.”

One of the conditions proposed by the US states that the Maldivian government shall “conduct surveillance on the prisoners while they are in the country, including monitoring their phone calls, letters and other communications.”

Additionally, they must “prevent them from leaving the country.”

Suood said “that’s what we’re seeking to clarify, how we deal with [the former inmates]”, and added that their comments and concerns would all be sent to the US Embassy before the transfer was formally accepted.

“There is no concrete agreement between the two countries as of yet,” he noted.

Press Secretary for the President’s Office, Mohamed Zuhair, said “the government of Maldives supports President Obama’s plans to close Guantanamo,” adding that “a Palestinian gentleman is due to be transferred from Guantanamo to the Maldives.”

He said “the United States has cleared this Palestinian man of any association with terrorism or any violent activities,” and have also confirmed “he has no criminal charges pending against him.”

He noted the man could not return to the Middle East due to his association with Guantánamo, and it is feared his life will be in danger if he is sent back.

“We should support innocent Palestinians. As a people, they have suffered so much injustice,” Zuhair said. “I hope when he arrives in the Maldives, we will treat him as he should be treated: as a victim who has been jailed for many years even though he has committed no crime.”

Minister of Foreign Affairs, Dr Ahmed Shaheed, said the identity of the prisoner “has not been confirmed yet,” and added it will only be confirmed once the National Security Committee has concluded its meetings and have cleared the detainee of any charges.

He said “it will take some time” until the committee concludes its inquiries, as they have to “look at files and go through the process they require.” Dr Shaheed said after the legal framework is looked at, they can start assessing individual detainees.

Dr Shaheed did not attend a committee meeting held today.

He said although the Palestinian man Zuhair referred to was “one of the candidates” to be transferred to the Maldives, “it is not confirmed.”

Citizenship for detainees was not something the government was discussing yet, he said.

“I’m not saying we will do it or not,” he said, adding it would only be raised after the legalities of the transfer were cleared.

He added the transfer of detainees to the country was being looked at as “temporary,” like a “half-way stop” for the detainees, and not something permanent.

MPs meet US High Commissioner

A number of MPs met with the US High Commissioner today, said Dhivehi Rayyithunge Party (DRP) MP Ahmed Nihan.

Besides Nihan, Maldivian Democratic Party (MDP) MP Abdul Gafoor, Jumhoory Party MP Gasim ‘Buruma’ Ibrahim, DQP MP Riyaz Rasheed and Independent MP Mohamed Nasheed participated in the meeting.

Nihan said “very important doubts about the Gitmo issue were clarified by the American High Commissioner.”

“We exchanged information between the High Commissioner and MPs,” he said, noting “the High Commissioner gathered us to see our opinion on the issue.”

Nihan said in the meeting he highlighted how poor the communication is between people and the government, adding “the administrative decision was made inside the ‘smoking room’ of the president and not in the Cabinet.”

He said President Mohamed Nasheed never discussed the detainee issue with either Vice President Dr Mohamed Waheed or the Cabinet.

“He always presents decisions in the cabinet meetings,” Nihan said, “but he did not discuss it with anyone before deciding.”

National security committee meeting

Parliament’s National Security Committee held their first meeting on the resettlement of Guantánamo Bay prisoners in the Maldives on Sunday, after it was postponed last week by Speaker of Parliament, Abdulla Shahid.

There are still more meetings to be held on the issue, as they need to hear from more government officials and police.

AG Suood said he was meant to attend a meeting tomorrow, but it has now been cancelled. He said he was asking the Majlis to look at Article 5 of their rules of procedure, which says “any summons should be in writing and signed by the Speaker.”

The AG said he and the foreign minister received letters of summons from Parliament, but “they were signed by a legal council” and not the Speaker. “We are seeking clarification,” he said.

The US Embassy in Colombo said they could not confirm or deny whether DQP members met with the ambassador last week, and could not say whether they spoke about the transfer of detainees or the issue of citizenship.

Leader of the DQP, Hassan Saeed, did not respond to Minivan News at time of press.

Likes(0)Dislikes(0)