Tag: maldives news

Comment: Corruption must not capsize a sinking state

This article first appeared on the Transparency International blog. Republished with permission.

In 2011 the then-president of the Maldives, Mohamed Nasheed, held a televised cabinet meeting underwater. Armed with oxygen tanks and waterproof pens, ministers signed a document calling on countries to slash their carbon emissions.

Nasheed also pledged to make the Maldives fossil fuel-free by 2020, and announced his intent to buy land in neighbouring India or Sri Lanka so that Maldivians could repatriate rather than become climate refugees.

Nasheed’s motives were clear. The Maldives’ archipelago looks like paradise defined – sand-laced islands sprinkle the Indian Ocean like a starry sky of azure blue. But its peace is precarious. Comprised of nearly 1,200 low-lying islands, it has no in-built life raft to the rising waters and fierce, frequent storms that global warming portends.

When the 2004 tsunami hit the Maldives its waves were barely a metre high. One hundred people died and 11,000 were displaced.

Maldivians have not been relocated. Instead they are left with the task of transforming their country into a fortress – building dykes, reinforcing coastlines and safeguarding natural coral reef defences, all the while forging the transition to a low-carbon lifestyle. This won’t come cheap. In 2010 government estimates suggested that that US$279.5 million would be needed for climate change adaptation by 2020.

Climate money is a dove of hope to those whose skies and seas are turning against them. The trouble is that in many cases it is entering countries and sectors characterised by risk.

The last time the Maldives featured on Transparency International’s Corruption Perceptions Index – in 2011 – it scored 2.5 out of a possible 10, alongside Cameroon, and up one decimal place from Russia. Ninety-six per cent of Maldivians surveyed in our 2013 Global Corruption Barometer believed that their government was run by a few elites acting in their own interests.

These statistics are brought to life through tales of cronyism and back-door dealing. In 2011, the Maldives’ Anti-Corruption Commission began investigations into a US$21 million public infrastructure project aimed at developing a stretch of coastline.

A construction company had reportedly been hired to carry out the work without following the required procedures. The company in question was co-owned by Moosa Manik, chair of the country’s ruling party, meaning that, in the words of the Anti-Corruption Commission, the project would “illegally benefit a particular party”.

Rural communities left clueless

Against this backdrop, Transparency Maldives has been investigating possible entry points for corruption in the climate sector. Their new report, ‘An Assessment of Climate Finance Governance’, articulates a number of concerns.

For a start, government information on climate projects, their budgets and progress can be hard to come by in the Maldives. Accessibility is improving, but it will often involve official written requests, persistent phone calls and visits to ministries. This creates a situation of stark information asymmetry.

In the capital Malé, citizens with time, resources or friends in high places may acquire information. Further afield, communities whose water supply is being desalinated will likely be clueless about what to expect from the project or how much it’s worth.

Anyone tenacious or privileged enough to access government data will then face the unenviable task of making sense of it. Information made available was often out of date or inconsistent – the names of projects changed from year to year in the national budget, as had financial data.

Frustratingly, different ministries have their own systems for reporting and disclosure, resulting in very divergent accounts of how much climate money is being spent where.

As for where climate funds end up, some Maldivians have questioned why certain islands have been favoured over others. In the absence of clear criteria for project selection, it could be that a decision-maker is guided by personal or political concerns rather than factors such as population size or climate vulnerability.

Discretionary decision-making is a problem further downstream, too. Implementing agencies in the Maldives tend to appraise their own projects rather than reporting to a central monitoring body, meaning that they are effectively their own auditor, police and judge.

Transparency Maldives’ report isn’t entirely damning. In some respects the Maldives emerges as a standard-setter when compared to other countries – in its attempt to maintain a centralised database on all national development projects, for instance. Systems like this should be promoted, in the Maldives and elsewhere. Other mechanisms merit attention of a different kind – be that extra staff, increased information disclosure, third-party monitoring or more rigorous procedures for consulting the public on their needs and ideas for climate development.

The prospect of a stormy sea is significant when you live 1.5 metres above sea level, and the furthest from the coast you could possibly be is three kilometres. Both are true of Maldivians.

A country that is bracing itself for disaster needs to know that the dykes will hold when the storm surge bears down upon them. It cannot afford for bribery, nepotism or embezzlement that equates to shoddy workmanship, cheap materials or phantom projects. Our chapter’s research will, we hope, act as a prophylactic to such eventualities. Tackled now, systemic or institutional shortcomings might be shored up before the Maldivian cabinet has no choice but to meet underwater.

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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Commonwealth observers recommend Majlis examine “consistency and workability” of Supreme Court guidelines

The Commonwealth Observer Group who monitored the 2013 presidential polls has recommended that the People’s Majlis examine the consistency and workability of the Supreme Court’s 16-point electoral guideline.

The guideline, issued following the annulment of the September 7 first round of polls, “appeared to undermine the authority of the Election Commission, were inconsistent with or contrary to electoral law, and were at odds with the Constitution,” the Observer Group said in its final report.

The report obtained by Minivan News also condemned the Maldives Police Services’ obstruction of the October 19 presidential polls as “unacceptable.”

The Supreme Court annulled the September 7 presidential poll citing widespread electoral fraud despite international and domestic praise of a free and fair vote.

The Elections Commission (EC) has criticised the guidelines as “restrictions” that limit the power of the independent state institution. The guidelines give candidates veto over the elections as their signature is mandated on the voter registry.

The ruling Progressive Party of the Maldives (PPM) and 295 independent candidates have failed to approve the voter registry for the local council elections scheduled for Saturday. However, the EC has decided to proceed with polls.

The Commonwealth Observer Group found the 2013 presidential polls credible despite the Supreme Court’s constraints, the report said.

Guidelines

The Chairperson of the Commonwealth Observer Group Dr Lawrence Gonzi said many of the Supreme Court’s guidelines were “incompatible with existing Maldivian electoral law, and in our view, do not conform with electoral best practice.”

Several national stakeholders had told the group that the guidelines were “cumbersome and impractical.”

In international best practice, no significant changes should be made to the electoral framework six months prior to an election, the report said.

“The Group was therefore particularly concerned that the guidelines given by the court in effect changed the electoral procedures in the middle of the electoral process, creating a great deal of unnecessary uncertainty and confusion,” the report read.

If the legislative and regulatory framework governing the electoral process is to be changed, the legislature instead of the judiciary must undertake the task, the report said.

The group called on the Majlis to make amendments it believes necessary to the existing law to ensure all future elections are conducted “according to the proper legal framework.”

Further, the group has recommended that the mandate and the statutory constitutional independence of the EC be recognised.

Annulment

The Supreme Court’s annulment of the September 7 election and cancellation of three subsequent elections “severely tested the democratic process in the Maldives,” the report said.

The group reiterated that the first round of polls held on September 7 were “credible and consistent with the international standards to which the Maldives has committed itself.”

The report highlighted that the EC was not given access or right of response to a police forensic report based on which the Supreme Court annulled the election.

The annulment of the polls and the lack of predictability of the electoral timetable led to a deterioration of the “largely positive political environment observed in early September” while political parties reported a negative effect on their ability to campaign, the report said.

It also noted that EC members and staff were subject to death threats and verbal harassment over alleged vote fraud.

Voter registry

In the Supreme Court verdict, four of the seven judges invalidated 5,623 votes claiming they were repeated votes, votes cast by dead people, and votes cast by people who had discrepancies in their names and addresses.

The court then ordered the EC to discard its registry and rely on the Home Ministry’s Department of National Registration (DNR) to compile a new voter registry.

However, the Commonwealth Observer Group has praised the EC’s voter registry noting that the EC “took steps to ensure accuracy of information and transparency in the administration of the process.”

The EC had engaged the electorate, providing two periods for verification of information and amendments, the report said.

Furthermore, “fears expressed by some political parties regarding possible large numbers of deceased voters remaining on the list and voters registered in the wrong geographic area seem to be unfounded,” the report added.

The group has recommended that the EC maintain a separate voter registry and said that it “should have sole responsibility for, and be empowered to ensure, the credibility and accuracy of that register in accordance with the 2008 constitution of the Maldives.”

The report said the group was consistently “impressed by the enduring commitment of the Maldivian people to the democratic process, who on each occasion have turned out to vote in very high numbers.”

Further, the group said it is “impressed by the professionalism of the Elections Commission and its staff, who have shown a great determination to fulfill their mandate in extremely challenging circumstances.”

Former President Mohamed Nasheed has meanwhile warned of collusion between the ruling Progressive Party of the Maldives (PPM) and the Supreme Court to subvert the local council elections.

“We clearly know political party leaders are bribing judges,” said Nasheed, stating that the Supreme Court’s attempt to “steal elections” and “destroy the Maldives” will be written in history.

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Former Finance Minister, MACL Chairman facing corruption charges

The Anti-Corruption Commission (ACC) has asked the Prosecutor General’s (PG) office to press corruption charges against former Finance Minister Ahmed Inaz, former Maldives Airports Company Ltd (MACL) Chairman ‘Bandhu’ Ibrahim Saleem, and former members of the company’s board of directors.

The senior officials of the Maldivian Democratic Party (MDP) government are accused of incurring financial losses to the state by amending the concession agreement with Indian infrastructure giant GMR to develop and manage the Ibrahim Nasir International Airport (INIA), the ACC said in a statement today.

The agreement was changed upon request by the Finance Ministry to reduce the concession fee on jet fuel sales from 15 percent of revenue to one percent, resulting in a shortfall of MVR53.8 million (US$3.5 million).

The ACC investigation found that the finance ministry disregarded professional advice over changing the clauses.

In addition to two counts of corruption charges, the ACC also asked the PG office to seek damages from the former minister, chairman, and board members as the alteration was approved with unanimous consent of the MACL board.

Along with Inaz and Saleem, former board members Mohamed Ibrahim of H. Noomuthy, Mohamed Waheed of Ma. Fehiali, Ahmed Murad of Ma. Bluegrass, Mohamed Shaz Waleed, Mohamed Shafeeq Mahmood of G. Meadow, and Adam Rasheed Ahmed of G. Thalvaaruge are also facing prosecution.

Concession agreement

GMR, in a consortium with Malaysia Airports Holding Berhad (MAHB), narrowly won the International Finance Corporation (IFC)-managed bid for the airport in 2010, and signed a 25-year agreement with MACL under the government of former President Mohamed Nasheed.

The then-opposition, including the Progressive Party of the Maldives, Jumhooree Party, Dhivehi Rayyithunge Party and Adhaalath Party, opposed the agreement primarily on nationalistic grounds, and alleged corruption in the bidding process.

Following the controversial transfer of presidential power in February 2012, after which opposition parties assumed control of the government, the administration of President Dr Mohamed Waheed declared the concession agreement ‘void ab initio’ (invalid from the outset), and gave GMR seven days’ notice to leave the country.

Meanwhile, in December 2012, the ACC sought corruption charges against former Finance Minister Mohamed Shihab and the MACL chairman over the decision to allow GMR to deduct a US$25 Airport Development Charge (ADC), stipulated in the contract, from concession fees owed to the state.

A report by the Auditor General found that concession revenue due the government had plummeted fourfold as a result of a Civil Court ruling that blocked the developer’s charging of of the US$25 ADC, on the grounds it was a tax and therefore required parliamentary approval.

According to the report, net concession revenue to the government had fallen to just US$6,058,848 in 2012, compared to US$25,424,877 in 2011.

Rather than appeal the Civil Court verdict obstructing the ADC, “The new government took the view that it would not be proper for it to intervene in the legal process for the benefit of a private concern,” the report noted, and instead, on April 19, 2012, informed the developer it was “retracting the previous agreement [to offset the ADC] on the grounds that the then Chairman of MACL did not have the approval of the MACL board to make the agreement.”

The government received US$525,355 from the airport for the first quarter of 2012, compared to the US$8.7 million it was expecting.

In the second quarter GMR presented MACL with a bill for US$1.5 million, and in the third quarter, US$2.2 million.

The Auditor General’s report acknowledged allegations of corruption in the deal, but finding the evidence “not conclusive on this point”, deferred to the judgement of the ACC.

On June 17, 2013, the ACC released a 61-page investigative report that concluded that the bidding process was conducted fairly by the IFC, and that the GMR-MAHB consortium won the contract by proposing the highest net present value of the concession fee.

The ACC further concluded that the awarding of the contract did not contravene amendments brought to the Public Finance Act requiring parliamentary approval for such agreements.

Furthermore,  “Considering the situation (2008, 2009 and 2010) when the decision was made to privatise the Male’ International Airport,” the ACC’s calculations showed that MACL would make a profit of about US$254 million in 25 years if the airport was operated by the government-owned company.

In June 2013, GMR filed a claim for US$1.4 billion in compensation at a Singapore arbitration court for “wrongful termination” of the US$511 million concession agreement.

Upon his return from an official visit to India this month, President Abdulla Yameen said that the government was seeking an out of court settlement with GMR before the arbitration process begins.

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Q&A: MP Ahmed Easa – Kendhikulhudhoo constituency

In a series of interviews to lead into the the 2014 parliamentary elections – scheduled for March 22nd – Minivan News will be conducting interviews with incumbent MPs.

All 77 sitting members have been contacted, from across the political spectrum, to be asked a standardised set of questions with additional topicals. The interviews will be published as and when they are received.

As part of the series, Minivan News interviewed MP Ahmed Easa.

MP Easa represents the Kendhikulhudhoo constituency of Noonu Atoll and is from opposition Maldivian Democratic Party.

Mariyath Mohamed: What made you enter the political arena and how?

Ahmed Easa: My maternal family has always been a political family. My maternal uncle Tholhendhoo Hassan Gasim even spent time in detention as a political prisoner during Maumoon’s [former President Maumoon Abdul Gayoom] regime and was tortured then. Hassan Gasim was my guardian after my mother passed away. So from a young age I was exposed to political discussions. Hassan Gasim also served as island chief for about 40 years, and even as Atoll Chief for Noonu Atoll. He even received an Award of Honour from the state for his practice of traditional medicine. He was quite popular in the North, and this led to many high level political discussions happening in my house at the time.

From a young age I was exposed to the truth of the torture and injustice that was a norm in Gayoom’s regime, and so from a young age I disliked Maumoon’s leadership.

I grew up and joined the tourist resort industry. I had the good fortune to get many opportunities to work abroad within the luxury hotel industry, which resulted in my getting to meet numerous famous personalities, including politicians, leaders of various nations. I also became aware of the levels to which citizens of other countries had their human rights protected and civilian rights respected. While I have not been able to acquire academic credentials in the field of politics, various experiences led to my knowledge of the area being quite strengthened.

And then after I came back to work in the Maldives, the Employee Act was formed, and tourist sector employees were completely removed from having these rights. With our background knowledge of labour rights in other parts of the world, we could not at all tolerate this injustice. So, along with other long term colleagues, we set out to obtain the rights we were entitled to. Our belief was that if we were not able to find a solution to this matter ahead of the 2008 presidential elections, it would later prove doubly hard to accomplish our goals. This is because, as you know, it is easiest to get the attention of politicians at times when there is an election looming closely ahead.

So we exerted a lot of pressure to amend the law. We met with all the parliamentarians, the cabinet and other government authorities. We submitted the largest local petition to date, with signatures of over 10,000 tourism sector employees. And even then we were not able to get a good enough response, and so we called for the country’s first industrial strike. We called for employees to halt work in all resorts of the Maldives, and received immense support. When work in resorts began to come to a halt, Gayoom asked then Minister of Legal Reform Mohamed ‘Kutti’ Nasheed to submit amendments to the parliament. I believe that was a huge accomplishment gathered with my leadership and the hard work of many others. I take pride in the fact that the association we formed is now stronger, and operating as an internationally recognized trade union under affiliation with international trade unions. While I am not on its leadership anymore, there are some very young capable persons leading it today.

The first purely political activity I engaged in was during the referendum on whether there should be a presidential or parliamentary system here. I actively led the campaign in Kendhikulhudhoo to elect a parliamentary system. I took leave from my work at the resort and even freelanced as a reporter for the publication known as Minivan News at the time. The regulation’s Article 21 said that the votes cast in any island must be counted at the island itself before the ballot box is shipped back to the capital. In many islands, things happened in contradiction to this act, with ballot boxes being sealed and sent out without being counted. I protested. I said that things have to be done as per the regulations. After some chaos and huge problems around the matter, the Elections Commission finally ordered the regulations to be followed in all islands.

Even at that point, I am a man who sticks to my principles. I enter anything after much consideration and thought. I only take up what I believe to be something that I must do. Once I do come out, I will work on the front lines. My belief is that once we set out to do something, there are only two possible results. One is to succeed, and the other is to fail. There are things we must accept both in our successes and failures.

For example, the recent presidential elections. I don’t accept how the matters around the election proceeded. I don’t believe it was a free and fair election. It can only be a free and fair election if the Elections Commission is able to practically have all the powers and authority granted to it by law in the conduct of an election. What I saw was that the past election was held by the Supreme Court, and not the Elections Commission. There are no laws that allow the Supreme Court to conduct an election, and so I don’t accept the way the elections were conducted.

However, although we did not win the polls, there are certain things that we did succeed in. One is that we were able to bring the Maldives out of the state of coup, and install an elected leader voted in by the people, regardless of how the elections were conducted. So we have accepted this. Our party believes it is a huge success that there is a government which came to power as a result of citizens being able to exercise their right to vote.

Even today I believe, the country is better suited to be run under a parliamentary system. I don’t think that the overlap between the three powers of state and the issues that arise as a result will still be present if we can better understand the governing system. I believe the political leaders must think about this today. One must not try to change the system once there is an election overhead, that will only lead to chaos. It must be well thought out and done in more peaceful times.

MM: Referring back to the association you have mentioned, what is your role in the formation of TEAM (Tourism Employees Association of Maldives) and do you still assist in its management at present?

AE: Like I said, we started working as a group to ascertain that we are entitled to our rights. It was not an easy job to get employees in over 90 resorts to sign the petition without us personally travelling to those islands. However, even the petition did not bring about the desired result. So we believed, after the advice of experienced persons, that it is through forming a trade union that we can advocate for our rights effectively. However, as it was not clear if we authorised to form such a union under then existing laws, we registered as an organisation. However, today it has changed into a trade union.

Today, my role is only advisory. And that too, I only provide advice if I am requested for it, and the association is not mandated to follow my advice. The trade union has a strong leadership today. As there may arise a matter of conflict of interest, they advised me to resign and stop attending board meetings from the point I got elected as an MP of then ruling party MDP.

MM: Based on your attendance and work in this ending term, how would you judge your performance as an MP?

AE: As I see it, the parliament is a hectic place, and one that carries serious responsibilities. I attempted to perform at my maximum capacity. I don’t think my attendance records will be too bad. Unless I am away on an official trip, or more recently out of Malé for a medical trip, I have rarely failed to attend any sessions. There have been instances where I have flown back on my own expenses from official trips in Europe just to participate in important votes in parliament. So as I see it, I paid a lot of attention to attending well. I have never missed any important votes taken in parliament.

I believe strongly in multi-party democracy and have always worked to uphold party values. I believe the work I conducted was rather good.

My attendance to committees is also very good. As the MDP member who simultaneously served on the most number of committees, there are some I might have missed due to overlapping meetings.

MM: What are the main committees you worked on? What particular bills did you focus on?

AE: I submitted numerous amendments to the Employees Act. I also submitted a bill regarding state expenditure, targeted to holding the state accountable. That bill has been passed and ratified now. That bill brings down the threat of the state going into debt regardless of which government comes to power in future. There are procedures under which state funds can be spent and loans can be taken included in this act and I believe it is a crucial piece of legislature in times as politically volatile as now.

Also other legislature like the Pre-school Act passed while I was the Chair of the National Development Committee. I did a lot of work as chair of that committee. If you do some research into it you will see that until I became chair of that committee, it had never before succeeded in completing draft of any bill and submitting it to the parliament floor.

I was in the National Development Committee, the Government Oversight Committee, the Disciplinary Committee and a temporary committee.

After the February 7 transfer of power, I focused strongly on the Government Oversight Committee as I believed it was one of the most important committees in session at the time. It is something deeply connected to citizens.

MM: What would you say are the biggest achievements within your term; in terms of what you have accomplished for your constituency and the country as a whole?

AE: In Noonu Atoll, one very sad truth is that we never see our elected MP except when elections near. Especially when Abdulla Yameen Abdul Gayoom served as the MP for the constituency, people only see him during election time. I, for one, never saw Yameen except during election time. Before I myself got elected to parliament, the last time I had seen Yameen was just before the previous parliamentary election. We see him every five years.

One thing that citizens often said to me when I first contested is that they won’t see me either from the point I get elected. That I won’t be where I can hear their concerns again. I pledged then that I would change that norm.

Today, I can proudly say that of the six islands in my constituency, there isn’t a single one I haven’t visited at least twenty to twenty five times. I have walked down all main streets, talked to the people, and dropped by several houses during these visits.

The other thing is how much I have assisted people in various things. Besides my parliamentary work, the only thing I have spent time on is assisting people in my constituency in various things.

However it is the citizens who will decide if I have served them well enough, that is not for me to say. They will make that decision in the upcoming election. If I do not get re-elected, it means I haven’t visited those islands frequently enough. That the citizens want to see their parliamentarian more. If, however, I do get re-elected, I have room to believe that the people are satisfied with the work I have done. That I must strive to do even better in my next five years.

MM: What would you say is the biggest mistake or worst step you have taken in your political career? Why?

AE: Letting a vote in favour of Tourism Minister Ahmed Adheeb slip through my hands in the recent parliament vote to endorse Yameen’s cabinet. That is the biggest mistake of my political career, what I politically suffered for most.

MM: As what you have referred to was a cause for much public criticism, would you like to explain how you came about to commit what you have termed your biggest mistake?

AE: As I see it, it is something I cannot really give much explanation for. It is 100 percent my fault. The parliament is always a loud and chaotic place, especially during important votes such as this one. Once the members start shouting, it is hard to hear what the speaker is saying or anyone else is saying, even if they speak over the microphone. That is not any justification for having let that vote slip by. If I had been able to concentrate as much as I should have, then that vote would not have slipped through my hands.

This is a kind of mistake that should not have been made by someone of my political calibre. But it happened because it was so loud there and I misheard the name that was announced.

I myself wouldn’t believe it if someone else told me what I am today. Someone of my status should not have committed such a silly mistake, and yet is done. I am facing many political challenges due to it. I am also being criticised by the grassroot level of my party because of this. I respectfully accept it all, I do understand how they feel. I believe that I deserve a penalisation for my mistake. As an organisation, the party must penalise me for this mistake. MDP is the most democratic and strongest political party. To remain so, it must take action against those in responsible positions whose acts negatively affect the party, regardless of whether the act was unintentional or deliberate.

I believe I must be penalised. It is the party that will decide what the penalty will be.

I began my political career with MDP and will not work with any other political ideology. I believe the MDP leadership includes those most faithful to the country right now. I believe President Mohamed Nasheed is the most sincere political leader. I remain steadfast in my decision to stand behind him.

I have heard through social media that MDP is considering retracting parliamentary tickets from those that voted to endorse those cabinet ministers. If they do so, I will wholeheartedly accept their decision. By saying ‘accept’, I mean that if MDP does cancel my primary ticket, if I try there might be opportunities where I can contest through another party or even as an independent candidate. However, if the party does take that action against me, I assure you that I will neither defect to another party nor will I contest as an independent candidate. Additionally, I will back whichever candidate gets the ticket and will do what I can to assist him in his campaign.

What I mean to say is that I began my political career with MDP, and that I will end it with MDP.

MM: You have just said that a vote to endorse the Tourism Minister slipped through your hands. Does this mean that this is the only cabinet minister you voted in favour of that day?

AE: Yes. I have never voted against party lines in the past five years. Even in more important votes, votes which our political opposition tried far harder to succeed in, I have steadfastly voted in alignment with party lines.

I have never broken a party whip line, deliberately or mistakenly, except for this time. And even in this instance, it was only the Adheeb vote – I voted along party lines for everyone else.

MM: Are you taking the optional committee allowance of an additional MVR20,000? Why or why not?

AE: I never really supported it even when it was first spoken of. If I remember right, I did not even participate in the first vote that was taken regarding committee allowance. I don’t remember too well how I voted in the later vote on the matter.

As I remember, I voted in line with the majority of votes that day in parliament. This is something I often do. If the party gives us a free whip, I vote as the majority of the full parliament feels is best. I think this is one of the best policies of democracy, aligning with majority. Perhaps, by doing so, I might have acted in a way that led some citizens to be displeased. What I am saying is it is possible that 77 of us do something that may displease the 200,000 or 300,000 citizens of this country.

I cannot say for certain whether I voted for or against it, but I definitely would have voted in the way the majority did that day.

The committee allowance issue led to a lot of discord. I have often spoken in parliament of compiling a solid financial structure under which those in state positions get paid. I have always advocated that the same principles be applied when giving incentives and privileges to those serving in the three separate branches of the state.

For example, about MVR100,000 is being spent on a Supreme Court judge every month, which is a huge amount. With all our allowances, an MP is also paid about MVR 82,500 or 62,500 a month, which, yes, is a hefty amount. So what I am saying is, talking only about the incentives that an MP gets and ignoring judges and others in state positions will not bring the system into order. All of it needs to be addressed.

We cannot adapt a system where we have to spend more than what the state earns.

MM: What is your view about parliamentarians and other public servants declaring their financial assets publicly for the electorate to be able to refer to?

AE: When the Disciplinary Committee discussed about financial statements, MDP members advocated for it to be made public. But the DRP, PPM, and JP stopped it through a vote then. As I see it, citizens must be able to see the financial assets of politicians. It must be available publicly even on the parliament website.

That day, opposition members said to me that while I may not have any concerns about making financial statements public as I don’t engage in other businesses, they have family businesses which they don’t want out in the public eye. I accept that they might have family businesses, but I am not referring to those. I am saying that the person who must be accountable to the public must reveal his personal financial statement.

MM: Are you re-contesting in the next elections? Why? What do you hope to accomplish should you be elected for a new term?

AE: Yes, so far I have got the parliamentary ticket without a primary as no one else contested for the Kendhikulhudhoo constituency from MDP. If, like I said before, MDP does not retract my candidacy due to my mistake in the cabinet vote I will contest. But I will remain in serving the people through MDP.

Why am I re-contesting for Kendhikulhudhoo constituency? I have always said I will contest in two terms. I have always believed that it is for very good reason that many countries say that a president can serve for ten consecutive years maximum. While the constitution does not have any limitations on how many times a person can apply for reconstestation, I believe that after two terms we must allow younger new candidates to come out and face up to the challenge. This is what I intend to do.

MM: What improvements do you feel the 18th Majlis will need to make to improve as an institution?

AE: There are some administrative challenges that the parliament faces in running effectively. This year’s budget includes funds to complete the new parliament building, which I think is absolutely necessary.

There are also some bills that need to be completed for the Constitution to be fully in effect, and so far we have not been able to finish this work.

However, as someone who worked in parliament in five years, I must say that although the performance of many members on the parliament floor may not seem satisfactory to the general public, they do a lot of work in the committees, which is where the majority of our work is conducted anyway. It is a huge challenge to effectively do this work that we do not have sufficient space to conduct meetings in.

MM: What are your thoughts on party switching? Do you think it undermines the party system?

AE: As I see it, we cannot force anyone to remain in a party. The question that then arises is if we should narrow this habit of defection through a law. However, there is a Supreme Court verdict which clearly states that this cannot be done.

What is left to be considered is honesty and sincerity. A party is an ideology. I believe that it is people who do not have a strong political belief or ideology that switches parties. The only cure for this is for parties to focus on ensuring that it is people with strong political beliefs that they raise to positions.

I for one am saying clearly that I believe in the MDP ideology very strongly. I have no doubts about my political beliefs and will not change it. As long as MDP remains steadfast in upholding its current political principles, I will remain with it.

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President reconstitutes tender evaluation board

President Abdulla Yameen yesterday reconstituted the tender evaluation board, appointing Deputy Tourism Minister Hussain Lirar its new chairman.

Other members appointed to the board were State Attorney Moosa Alim, Zeeniya Ahmed Hameed, deputy director general at the Housing Ministry, Ahmed Ifthihar, director at the Economic Ministry, Rilwan Adam, director at the Finance Ministry, Mohamed Ali, director general at the President’s Office, Ahmed Gasim, deputy director general at the Health Ministry, and Saudhulla Hilmy.

President Yameen also made a number of changes to the boards of eight public companies and state-owned enterprises through the privatisation board.

According to local media reports, Dhiraagu Chairman Ibrahim Athif Shukoor was replaced with Rilwan Shareef while a government representative on the Dhiraagu board, Ilham Hussain, was dismissed and replaced with Abdulla Ahmed.

Maldives Water and Sewerage Company (MWSC) Managing Director Mohamed Ahmed Didi along with five board members were also dismissed and replaced.

Among other companies that saw top level changes were the Maldives Marketing and Public Relations Corporation, Housing Development Corporation, Maldives Tourism Development Corporation, Gulhifalhu Investment, Hithadhoo Ports Ltd, Kulhudhufushi Ports Limited, and the Aasandha Company.

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Parliament sitting scheduled for January 26

Speaker of Parliament Abdulla Shahid has decided to hold sittings of the People’s Majlis from January 26 onward to debate revenue raising bills submitted by the government.

The decision to resume sittings during the ongoing recess was made following a written request by 27 government-aligned MPs, contending that implementation of the budget was being hampered due to the Majlis’ failure to pass the revenue bills.

The three bills submitted by the government include an amendment to the Goods and Services Tax Act to raise T-GST from eight to 12 percent as well as two amendments to the Tourism Act intended to reintroduce the discontinued flat US$8 bed tax and require resort lease extensions to be paid as a lump sum.

Following the Majlis’s failure to extend the tourism bed tax before the end of last year, Finance Minister Abdulla Jihad told local media that the resulting losses to state revenue would be MVR100 million a month.

Among other revenue raising measures proposed by the government include revising import duties, raising airport departure charge for foreign passengers from US$18 to US$25, leasing 12 islands for resort development, and introducing GST for telecommunication services.

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“Time tested” Indo-Maldivian ties to be celebrated during ‘Dosti- Ekuverikan’ week

The Indian High Commissioner to the Maldives today described President Abdulla Yameen’s visit to India as a “huge success”, as details of the India-Maldives ‘Dosti-Ekuverikan’ week were revealed.

“Many glowing accounts have been made of the visit – and rightly so…If I can quote what has been stated by various leaders in India, that a new chapter has been opened in the India-Maldives bilateral ties,” said Rajeev Shahare.

The High Commissioner as media were briefed on the series of cultural events between January 20 and January 26, celebrating the partners’ friendship.

The week – serving as a precursor to the golden jubilee celebrations of bilateral ties beginning in November – will feature film, music, and healthcare events.

Updating media on the state visit at the start of this month, Shahare stated that the positive reception received by President Yameen “reflects the strong, robust, time-tested ties between India and Maldives – dating back to several millenia.”

“The recent visit of the honourable President Yameen further underscores the depth of our ties, the strength of our ties, and also how two countries have always partnered each other,” he added.

Upon Yameen’s return, the trip was lauded as a cure-all for recent tensions between the two states – with former President Maumoon Abdul Gayoom describing current ties as being as strong as during his thirty year tenure.

Shahare noted that there was a “very useful” business forum on the sidelines of the visit, organised by the three apex chambers of Indian business.

Yameen’s calls for Indian businesses to invest in the Maldives had already resulted in interest being shown by two Indian companies in the Malé-Hulhumalé bridge project, said the High Commissioner.

During a meeting with Indian Prime Minister Dr Manmohan Singh, Yameen was asked about the possibility of an amicable settlement in the GMR airport development dispute.

Indian infrastructure giant GMR’s 25-year concession agreement to develop Ibrahim Nasir International Airport was prematurely terminated by the previous administration – with whom Yameen’s Progressive Party of Maldives was aligned.

GMR’s  US$1.4 billion compensation case continues in Singapore whilst the Government of Maldives’ plans for continued development of the airport continue. Yameen has welcomed a return to the Maldives in the future, whilst maintaining that the airport must remain in government hands.

Dosti – Ekuverikan

Revealing details of this month’s friendship programme, the Indian High Commissioner stated that the events were intended to showcase the pair’s strong ties, and also to “bring forward what we intend to do in Maldives.”

After an inaugural event on January 20, Dosti-Ekuverikan week will begin with an Indian food festival at Traders Hotel. The ‘Taste of India’ festival will feature buffet servings from different regions of India over five nights.

A film festival will also be held at Schwack cinema from January 22-24.

Noting that the Indian government recognises that health care is a priority for the current Maldivian administration, the Dosti week will include a free eye camp at IGMH and in Hulhumalé, as well as blood donation camps at the National Thalassemia Centre in Malé.

“We will be getting a four member opthamological team. Two eye surgeons and two technicians will come here…This eye camp will render a free check-up, will also provide free spectacles/glasses, and will also perform minor surgeries,” explained Shahare.

There will also be a yoga camp at the artificial beach on January 23.

Full schedule

  • Inauguration of Dosti-Ekuverikan week – January 20
  • ‘Taste of India’ food festival at Traders Hotel – January 21-25
  • Indian film festival at Schwack Cinemas – January 22-24
  • Yoga workshops at artificial beach area – January 23
  • Indian cultural evening at Dharubaaruge – January 24
  • Indian music festival featuring Indian group ‘What’s in the name’ – January 24-26
  • Free eye camps at IGMH – January 24-26
  • Blood donation camps as National Centre for Thalassemia – January 24
  • DOSTI quiz 2014 – January 24
  • National Art competition 2014, for all schoolchildren – January 15-31
  • Closing ceremony at Dharubaaruge – January 26
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Comment: Guest house business – my journey

This article first appeared on the Maldives Economist blog. Republished with permission.

Back in 2009, I started a new venture, along with a very close friend, Mohamed Shihan. Back then, it was something very new, something that nobody has started yet. We called this venture ‘White Shell’ as we rented a small house right on the beach of Maafushi. As the government opened up to allow guest houses in local inhabited islands, we were the first to submit our registration. As a result, White Shell Beach Inn, is the first guest house to be registered on a local island. So we became the pioneers in it.

Initially, we invested about MVR300,000 so that we could have 4 rooms fully furnished with AC, and very basic facilities. A small restaurant and a kitchen, and 4 employees. I was working full time in the public sector, as an economist in MMA, during my weekends – I was busy with setting up of the business, and marketing it. As I did not have enough funds for a professional webpage development, I had to learn on developing websites, and tried my luck with it. I developed our first website, uploaded it, and started the online marketing of it. Initial months of losses were borne by the monthly salary that I earned, and loans from my partner in business. We made sure the staff were paid on time, and utility bills paid every month. Some of my friends, and people from the tourism sector advised me that it would be a failure, as it is tourism without alcohol, pork, and bikinis.

Six months in business, with the various online marketing efforts, we were able to get guests from Russia, Poland, Germany, France, and the UK. With my efforts, I was able to put ‘Maafushi’ as a separate destination on various online booking sites, and travel sites. Before completion of the first year, I was able to rent the adjoining house, and later the house next to it, so that before the end of the second year, we were selling 10 rooms, and were running a successful beach restaurant. For the first one and half years in business, we were able to prove to everybody (especially those in Maafushi), that local island tourism can be successfully run for mid-market tourists, and it can be done without having alcohol, pork and bikinis.

During those months that we were the only guest house in the island, guests enjoyed their time on the beach, and Maafushi, without bikini (in covered clothes, of course), and there were no complaints from the locals. This was because, before the guests booked their holiday with us, they were given the information that it is a local island and that government regulation does not allow swimming in a bikini, just like they are aware that alcohol is not available. Hence, guests were fully informed and aware, and there was no room for complaints or dissatisfaction. Moreover, we got additional revenue because of this regulation – as guests preferred to spend their day in picnic islands, snorkeling, of fishing, and other activities, and that’s additional revenue for us.

We have altogether 20 guest houses in Maafushi now, and 144 rooms. Which means even if we didn’t consider the family rooms, that’d be 288 beds, and with 65% occupancy, that’s 68,328 bed nights per year. Assuming average duration of stay is 4 days, that’s 17,000 guests per year. With conservative estimates and past revenue records, it is estimated that about $9.7 million will enter the local Maafushi economy, and the guest houses will be paying the state – as bed tax and GST – a total of US$1.3 million (equivalent to MVR20 million).

The income per head from guest houses alone is $4,425 per head in Maafushi. The total income per head of Maafushi after adding incomes from other sectors will probably be the highest in the country. It is a perfect example of making economic growth more inclusive, and a case study for inclusive development. In fact, I presented a paper last year in Islamabad, during a South Asia Economic Summit.

With the 20 guest houses, more than 100 locals are being employed in various jobs – ranging from speedboat crew, receptionists, waiters, room boys, accountants, and guest relations officers. The majority of youth are actively engaged in economic activities, without having to spend their times in coffee shops or elsewhere, as they did before. Women with children are able to earn at least MVR10,000 a month doing laundry services. Last month we spent from our hotel MVR17,000 for laundry, which is done by a local family.

We – the White Shell – have played a key role in the expansion, and the success of Maafushi as a tourism destination through leading by example, and also assisting others in the setups. And thanks to MATATO, as we have recently been awarded the Maldives Travel Awards as the Leading Guest House, from the category introduced this year.

There is no doubt that this newly developed industry provides huge economic benefits to the local community and the government in the form of taxes. It also provides other positive outcomes like the guest houses taking charge of cleaning the beach area and streets, and taking care of waste disposal. The MWSC (water company), and STELCO are making huge profits from Maafushi, as the per unit rates are relatively higher in Maafushi compared to Malé. With more that 144 air condition units recently installed, Maafushi is spending heavily on electricity (there’s still more to be done in terms of using efficient energy sources).

There are many challenges as well, of course. With starting of many new guest houses, many have come to believe that the bikini is not a problem, and guests are being told so as well. Less seem to complain, however, as almost everybody benefits from the industry. We are yet to find an amicable solution to the issue, with serious discussions between the island council, tourism ministry, and the guest house owners. Other social issues/problems can also be addresses in a similar manner. Which means there’s still a lot of work to be done in order to make the business sustainable, environment friendly, and in order to make the this model a success in other islands. Wish you all a very happy new year.

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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