Maldives omitted from 2012 global corruption index due to “insufficient data”

The Maldives has been omitted from Transparency International’s global Corruption Perception Index (CPI) for 2012 after it failed to receive required data from one of the three sources used to determine how it fares against other nations in terms of transparency.

The CPI ranks 176 nations in terms of their perceived corruption. States such as Denmark and Singapore rate at the top, while nations such as Zimbabwe and Somalia fall at the bottom of the index.

Last year the Maldives found itself placed 134 on the CPI, a slight improvement on 2010, despite continued fears of a “systemic failure to address corruption” by Transparency Maldives, the NGO’s local affiliate.

Transparency Maldives Project Director Aiman Rasheed told Minivan News that the Maldives’ failure to be included within the 2012 CPI “would raise a few eyebrows” internationally.

However Rasheed said that he did not expect there to be a significant detrimental impact in how the nation was already perceived by financiers, investors and other development groups.

“We have been included [on the CPI] for the last few years in 2011, 2010 and 2009, so I don’t think the ranking for this year will have been a big departure from these,” he said, adding that the challenges facing the country as a result of corruption still existed in 2012.

Rasheed said the CPI was a composite index based on information from a number of sources including the World Bank. He explained that of the three sources on which the Maldives’ CPI position was determined, the Asia Development Bank (ADB) had this year not supplied the required information needed by Transparency Maldives to compile its findings.

“We don’t have any reason for why this has happened and I would not wish to speculate,” he said.

However, a source with knowledge of the matter told Minivan News on condition of anonymity that there could be a number of reasons for the ADB failing to provide information on the Maldives.  These reasons were said to include a possible failure by the government over the last 12 months to provide statistics and figures to the ADB.

The ADB was not responding to calls from Minivan News at time of press.

Questioned as to how the country’s omission from the 2012 index would reflect on Transparency Maldives’ own work, Project Director Rasheed said it would be vital to clearly communicate with international groups the reasons for not being included this year.

“It does present us with some challenges. We have to hope people understand that there was insufficient information received,” he said.

Transparency Maldives last year alleged that the Maldives continued to be rated as having more perceived corruption that many other neighbouring countries, a situation linked to what it claimed was a lack of accountability and transparency across the country’s judiciary, parliament and members of the executive. The NGO maintained that last December that there remained a “systemic failure” within the national mechanisms established to bring accountability to the branches of state.

Just last month, a senior legal official who served under the current and former administrations has claimed the country’s legal system is wide open to corruption by allowing individual judges to schedule court hearings at their whim.

The legal figure, who has been involved in some of the country’s highest profile cases heard in recent years, told Minivan News it was “quite evident” that the lack of a centralised system for scheduling legal hearings was not only resulting in massive inefficiency, but also allowing for corruption within the country’s court system.

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MNDF officer arrested in connection with Dr Afrasheem’s murder

A Maldives National Defence Force (MNDF) officer has been arrested in connection with the murder of MP and religious scholar Dr Afrasheem Ali.

Although police and MNDF did not initially confirm the arrest, local media confirmed the report through the defence lawyers of the MNDF officer arrested.

Police Sub-Inspector Hassan Haneef told Minivan News that police policy when providing information about Dr Afrasheem’s death was to keep all information until a next press briefing.

The MNDF has meanwhile confirmed that a MNDF officer was arrested earlier last week.

The MNDF told the local press that it was not the military’s policy to provide information on the charges, but said it would cooperate with the police in their investigation.

Commissioner of Police Abdulla Riyaz has claimed that the murder of MP for Ungoofaaru constituency Dr Afrasheem Ali was a well-planned murder and insisted it was politically motivated.

The Commissioner alleged that the assassins were offered MVR 4 million (US$260,000).

In a presentation shown during a press conference this week, Riyaz claimed that altogether 11 suspects were arrested with three of them later released.

He said that 200 items were collected as forensic and digital evidence.

“Over 500 hours of CCTV footage have been analysed, more than 100 people have been interviewed and about 13,000 phone call recordings have been analysed out of which 12,000 were from one single tower,” Riyaz said.

Afrasheem was killed on October 1. His wife discovered the body lying on the staircase of their home.

Dr Afrasheem was elected to parliament in 2009 as a member of the then-opposition Dhivehi Rayithunge Party (DRP). Following the opposition’s split, Afrasheem sided with the Progressive Party of the Maldives (PPM) of former President Maumoon Abdul Gayoom, and faded into the political background.

Widely considered an Islamic moderate, Dr Afrasheem took outspoken and controversial positions on issues such as the permissibility of playing music, and praying next to the deceased.

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“Maldives can do whatever it wants”: Chief Justice of Singapore

The Supreme Court in Singapore has overturned an injunction blocking the Maldivian government from voiding its concession agreement with GMR and evicting the airport developer by midnight tomorrow.

“The Maldives government has the power to do what it wants, including expropriating the airport,” declared Chief Justice of Singapore, Sundaresh Menon.

The Maldives appealed the stay order which was granted after cabinet on November 27 declared the country’s concession agreement with the developer ‘void ab initio’, or invalid from the outset, and gave the company seven days to hand over the airport to the state-owned Maldives Airports Company Limited (MACL).

The government rejected the injunction, with President Mohamed Waheed’s Special Advisor telling reporters: “I believe that the Singapore court interpreted the law wrong. We cannot wait for a hearing of the appeal. What I am saying is there is no damage to GMR but we face damages by not terminating the agreement.”

GMR dug in its heels, clinging to the injunction, with the backing of the Indian government, which urged the government to take “no arbitrary and coercive measures pending the outcome of the legal process underway.”

CEO of GMR Male International Airport, Andrew Harrison, told Minivan News on Thursday afternoon that it was “too early to say” whether the withdrawal of the injunction meant company was now obliged to hand the airport over to MACL before the deadline on Friday.

“We are waiting to review the full judgement, which is currently being written up. We’ve always been advocates of following the law. We will have a staff briefing tomorrow afternoon,” he said.

MACL meanwhile released two statements claiming that it had met with airlines operating at the airport and advised them that it would be taking over the airport from midnight at December 7. Details of the meeting were not provided.

MACL’s website remains inaccessible a week after it was targeted by Indian hackers, who replaced it with the slogan: “If you don’t know how to secure a website, can you run an Airport securely, MACL?”

GMR held a press briefing for journalists in Delhi yesterday.

Asked about whether GMR had felt the involvement of another country such as China in the development of the Male’ airport, the company’s CFO Sidharth Kapur said “I can’t say that for sure. But, looking at the political situation and political framework in Maldives, I can’t rule out anything.”

GMR had received no response from any attempt to communicate with President Mohamed Waheed, he said.

President’s Office Spokesperson Masood Imad meanwhile told Indian newspaper The Hindu today that after reclaiming the airport, the government would again float a tender for its modernisation “and get more parties in to take the work forward.”

“The tender will be floated by the Maldives government in a transparent manner and after consulting investors. The mistakes made during the float of the tender which has been cancelled will not be repeated,” Imad told the paper.

The Waheed government has previously accused the International Finance Corporation (IFC), a World Bank entity, of being “irresponsible” and “negligent” in advising the former government of President Mohamed Nasheed in the concession of INIA

The IFC has denied the accusations, stating that its advice was geared towards achieving the “objective of upgrading the airport and ensuring compliance with applicable international regulations” and providing the Maldives government “with the maximum possible revenue”.

“A competitive tender was organised with the objective of selecting a world-class, experienced airport operator, who would rehabilitate, develop, operate and maintain the airport,” said an IFC spokesperson, in September.

Environment Minister Dr Mariyam Shakeela has separately appealed to China for financial and technical support, telling journalists from the Chinese government’s authorised web portal China.org.cn that the Maldives “needs funds for infrastructure building.”

“We are obviously in need of funds and technical assistance as we do not have the financial means, the technical know-how or the capacity to address these huge climate change issues,” said Mariyam, in an appeal for assistance with climate adaptation.

Former President Mohamed Nasheed, under whose administration the concession agreement with GMR was signed, called on the government to reconsider its decision to take over the airport and “pull back from the brink and cease its counter-productive behaviour, which is damaging the nation’s economy and bilateral relations.”

Nasheed said the Maldives was “rapidly developing a reputation among foreign investors akin to Zimbabwe, where government might is right and contract law counts for nothing.”

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Maldivian government appeals stay order as GMR eviction deadline nears

The Maldivian government is appealing an injunction granted by the Singapore High Court halting its eviction of Indian infrastructure giant GMR from the Maldives pending the outcome of arbitration proceedings.

Minivan News understands that the hearing began at 10:00am this morning Singapore time, and is expected to take most of the day.

The government at the time denounced the injunction as an imposition on the country’s sovereignty. At a press conference hours after the stay order was granted by the Singapore High Court, Defence and Acting Transport Minister Mohamed Nazim pledged the government would “continue the airport takeover and Insha Allah from next Saturday onwards [the state-owned] Maldives Airports Company Limited (MACL) will be running the airport.”

“The government remains firm and committed towards implementing its decision to terminate the agreement. We will not reconsider it,” he said at the time.

The deadline for the government’s eviction of the Indian airport developer is midnight tomorrow (December 7).

GMR on Tuesday “categorically” refuted claims by the government to international media that it had agreed to vacate Ibrahim Nasir International Airport (INIA), following a meeting between airport CEO Andrew Harrison and Defence and Acting Transport

Harrison told Minivan News that Nazim had said that “no force would be used to take over the airport” and that “media reports that the MNDF would take over the airport are untrue.”

“Our position, which I communicated to them, remains crystal clear,” said Harrison. “The Singapore High Court has issued an injunction which clearly prevents MACL or the Government of Maldives or any of its agents from taking any action that interferes with GMIAL operating the airport.

“The injunction clearly prevents them from taking the action outlined in their notice issued to us stating that the airport would be taken over at the end of the seven day period. We remain resolute in our position and there is no question of an offer being made and certainly no question of any alleged offer being accepted as we will simply not agree to our rights nor the injunction being undermined in any way.”

The Civil Aviation Authority has however informed the developer that its aerodrome certificate will be withdrawn at 23:59 on December 7, without which GMR has acknowledged it cannot operate the airport. The impending stalemate potentially has ramifications for tourism disruption at the start of the peak season.

Meanwhile, Minister of State for Home Affairs Abdullah Mohamed was reported in local media as telling a press conference yesterday that “GMR has the opportunity to seek fair compensation if they are not satisfied with the government’s decision.”

The Indian Ministry of External Affairs has meanwhile issued a statement calling on the Maldivian government to allow the “legal processes involved in the GMR case to take their own course based on the contractual obligations of the parties involved. The Maldivian government should not allow the situation to go out of hand.”

“In this context, it is expected that no arbitrary and coercive measures should be taken pending the outcome of the legal process underway. Resort to any such actions would inevitably have adverse consequences for relations between India and the Maldives,” the MEA Spokesperson said.

“We are concerned over reports from the Maldives about continuing violence and intimidation against elected representatives and expressions of radical sentiments. There is need to ensure that the rule of law is upheld and principles and tenets of democracy are maintained. We will continue to monitor the situation closely.”

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Criminal court grants police warrant to obtain IP address of Minivan News commentator accused of “violating Islamic principles”

The Criminal Court has granted a warrant for police to obtain the email and IP address of a Minivan News commentator accused of “violating Islamic principles”.

In a letter signed by Police Inspector Moosa Ali, Head of Fraud and Financial Crime, states that a case was filed at police regarding the commentator’s use of the identity ‘Maai Allah’, and requests Minivan News provide the email and IP address for the investigation.

The letter also asks Minivan News to remove the comment, located on a story dated November 28 titled: ‘Government “cynically used xenophobia, nationalism and religious extremism” to attack foreign investor: former President’.

“As you know, the Maldives is a 100 percent Muslim nation and as no human being has been empowered to take for himself the almighty status using the name of Allah, and as this is insulting to the noble name of Holy Allah and undermines noble Islamic principles or tenets, we require information of the person who made this comment for our investigation,’’ the letter stated.

‘Maai’ is the Dhivehi word for ‘holy’.

The accompanying court warrant was signed by the Chief Judge of the Criminal Court Abdulla Mohamed, and issued in connection with a case filed by the Cyber Policing Department of the Maldives Police Service.

Minivan News understands that this the first time police have requested the details of an internet commentator in connection with a case filed on religious grounds.

As a Maldives-registered media outlet Minivan News has complied with the warrant and removed the comment as obliged under Maldivian law. The particular IP address requested by police is registered in a foreign country.

Police informed Minivan News that the case was filed by religious NGO Jamiyyathul Salaf.

The serving of the court warrant follows a statement released by religious Adhaalath Party on December 3 stating that “approving and publishing such comments is a failure to properly fulfill the responsibilities of journalism”, and “calling on the person who wrote the comment and who published it to repent and reform [themselves].”

“A person has commented on Minivan News, a newspaper published online in the country, claiming to be Allah. This is something that involves a serious wrong in it. The reason is because the phrase ‘Allah’ refers to the name of Creator Allah, whom Muslims pray to, seek strength from and whom people find peace in their hearts by praising. Therefore, no human can say I am ‘Maai Allah’ [Holy God]. [They should] instead say ‘Abdullah’ or ‘slave of Allah’,” the party explained.

“If the intention of the person who wrote the comment was to characterise himself as a Khaleefa [steward] of God, that too is a serious wrong. The reason is because all things were created by Allah. And all things are possessed by Allah. Nothing escapes the knowing or possession of the deity. Therefore, only Allah would know whom he would appoint a steward on this earth. A person cannot claim on his own that he is the ‘steward of Allah’.”

“As such problems are a recurring one in the aforementioned newspaper, we urge the relevant authorities to investigate this and take action,” the party urged.

A media monitoring report by Transparency Maldives published in December 2011 found that Minian News’ coverage of the Adhaalath Party was 100 percent positive.

Editor of Minivan News JJ Robinson said:

“Whistle-blowers entering a source relationship with a journalist for a story in the public interest are entitled to legal protection from identification under the Maldivian Constitution. However without a prior journalist-source agreement commentators have no such protection, and need to be aware that under Maldivian law news websites registered in the country cannot guarantee the publication of comments, or anonymity.”
“A platform such as Minivan News  is no more accountable for the opinions and statements of its readers than an internet service provider (ISP) is for the content viewed by its subscribers, yet under Maldivian law is obliged to remove comments where advised by relevant authorities,” Robinson said.

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State Environment Minister plays down budget dispute, alleges media “misunderstanding”

State Minister for Environment and Energy Abdul Matheen Mohamed has played down a report that his department yesterday slammed the proposed state budget for neglecting the “fundamental rights” of Maldivians, claiming there had been a “misunderstanding” with local media.

The Sun Online news agency yesterday reported that senior environment ministry officials had raised fears before the Majlis’ National Development Committee that it had been allotted an insufficient budget for proposed water and sewerage projects needed across the country.

Environment Ministry Permanent Secretary Ahmed Saleem was quoted as claiming that some 15 projects proposed by his department had been excluded from the budget is being debated within parliament this week. These projects were said to deal with issues including waste management, as well as supplying water and sewerage systems to more islands around the Maldives.

Saleem was reported as saying that complaints over the matter had also been sent to Finance Minister Abdulla Jihad, who had in turn had responded that any amendments to the budget would have to be made through the Majlis with support of MPs.

Both finance chief  Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at the time of press.

Speaking following yesterday’s meeting with the National Development Committee, Permanent Secretary Matheen claimed that Saleem’s reported comments had been the result of a “misunderstanding” by its author.  He alleged that the journalist had focused on a few points of a long meeting with the committee.

While Matheen said that there were some “concerns” about the present status of the budget allocated to the Environment Ministry, he that alleged the article’s conclusions were “very misleading”.

“The budget issue is very sensitive right now, so i’m afraid I cannot make any comments about the matter at present,” he said. “The islands are all asking what they will have from the ministry.”

Matheen added that he was presently unable to comment on the exact nature of the “misunderstanding” contained within the Sun Online report due to the fact discussions on finalising the state budget were ongoing.

Jumhoree Party (JP) MP Hassan Adil, a member of the National Development Committee, was unavailable for comment when contacted on the challenges in trying to balance ministry expenditure in the current economic climate, asking Minivan News to call this evening. However, Adil was not answering calls at the time of press.

Budget discussion

Presenting the budget to parliament last week, Finance Minister Jihad explained that next year’s budget deficit was to be financed with MVR 971 million (US$62 million) as budget support and MVR 1.3 billion (US$84 million) from Treasury bill (T-bill) sales.

However, as debate on the budget commenced yesterday amidst, regularly coming to a halt due to frequent loss of quorum – most MPs complained of the lack of funds allocated for development projects in their constituencies.  these projects included developments such as harbours, water and sanitation systems, additional classrooms and upgrades to health centres.

Meanwhile,  it was revealed last week that the proposed budget for defence expenditure for 2013 was found to be 14 percent higher than the funds allocated during 2012.

A total of MVR 930.9 million (US$60.3 million) was proposed for defence expenditure, which amounts to 5.5 percent of the total budget.

Balance of payments

With the Majlis currently contemplating the 2013 budget, an International Monetary Fund (IMF) mission to the Maldives last month noted that a ballooning fiscal deficit had “implied a rise in the public debt ratio, which now stands at over 80 percent of GDP.

According to the organisation, these developments also helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on MMA (Maldives Monetary Authority) reserves.”

The IMF forecast for the current account deficit was “nearly 30 percent of GDP this year.”

“Gross international reserves at the MMA have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” the IMF mission warned.

The mission recommended formulating “a realistic and prudent budget for 2013″ to rein in the fiscal deficit, suggesting hiking taxes and “selectively” reversing import duty reductions.

According to an overview of the economy presented by the Finance Ministry along with the state budget (Dhivehi) proposed to parliament last week, the current account deficit in 2012 was expected to be 27 percent of GDP.

Water shortages

Following water shortages that authorities said affected over 100 inhabited islands back in May, Addu City Mayor Abdulla Sodig at the time claimed financial support was the key challenge in ensuring sufficient supplies of drinking water to the public, even with the assistance of local resorts and the Maldives National Defence Force (MNDF).

Minivan News reported back in April that in the country’s southerly Addu Atoll, an estimated 90 percent of the local population were reliant on rainfall to bolster their drinking water supplies.

Numerous islands in the atoll are said to experience severe supply issues for drinking water annually as a result.

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Supreme Court declares Hulhumale Magistrate Court legitimate

The Supreme Court on Wednesday declared that the controversial Hulhumale Magistrate Court was legitimate and could operate as a court of law.

The decision has ramifications for the trial of former President Mohamed Nasheed, who is facing charges of illegally detaining Chief Criminal Court Judge Abdulla Mohamed during his final days in office. Nasheed and his party disputed the legitimacy of the Hulhumale Magistrate Court, which was formed by the Judicial Services Commission (JSC) and which appointed the panel of judges hearing Nasheed’s case. The JSC includes two of Nasheed’s direct political opponents.

Out of the seven member Supreme Court bench, four judges ruled in favor of the court’s legitimacy while three judges including the Chief Justice had opposed it. The other two judges were Judge Abdulla Areef and Judge Mu’uthazim Adnan.

The four judges who ruled in favor of the court were Judge Abdulla Saeed, Judge Ali Hameed Abdulla, Judge, Judicial Service Commission (JSC) President Adam Mohamed Abdulla and Judge Dr Ahmed Abdulla Didi.

The Supreme Court majority ruling stated that despite Hulhumale being mentioned as part of capital Male’ City in the Decentralisation Act, Hulhumale was an “island” with a large population and therefore, having no division of a superior court on that island and if not for the presence of Hulhumale Magistrate Court, its inhabitants would have to travel to another island in order to get justice. Therefore it declared Hulhumale Magistrate Court as legitimate.

Supreme Court also declared that Hulhumale’ is a separate island in Male’ division, even though the law recognises Hulhumale as a part of Male’ City.

The three dissenting judges, having taken different legal arguments, mutually agreed that Hulhumale’ Magistrate Court could not be legally established.

All three judges had unanimously agreed that courts should be established through legislation and that the Hulhumale Magistrate Court was not established in accordance with the Judicature Act.

The case was filed by the Judicial Service Commission (JSC) and the respondent of the case was decided as lawyer Ismail Wisham.

Former President Mohamed Nasheed’s legal team also sought to intervene in the court case. Nasheed’s lawyers stated that the case involved the interests of the former president as his case regarding the detention of the Chief Judge of Criminal Court Abdulla Mohamed is being looked by Hulhumale’ Magistrate Court.

Disregard to principle of bias

During the first hearings, the former Attorney General Husnu al Suood, who was representing the respondent raised procedural points whereby he argued that Supreme Court Judge Adam Mohamed Abdulla could not sit on the bench since he was also the President of the JSC, which therefore amounted to “presumption of bias”.

However, the Supreme Court rejected the procedural points.

Following today’s decision, Suood in a tweet described the decision as a “case of actual bias” with regard to his previous arguments in court.

“A case of actual bias because JSC would [have] lost the case without the vote of JSC president: 3 for 3 against, casting vote by JSC [president]” – Husnu Al Suood tweeted

Meanwhile, MDP MP and Lawyer Imthiyaz ‘Inthi’ Fahmy criticised the Supreme Court decision and echoed similar sentiments.

“The suspect sitting on [Supreme Court] bench today killed and buried in Maldives the very basis for the rule against bias! That’s solid murder!” he tweeted.

Arguments

During the hearing, the respondents argued that according to the existing law, there were no legal basis to support the legal existence of Hulhumale’ Magistrate Court, which had been formed in contradiction to the constitution and the Judicature Act article 53.

Judicature Act Article 53(e) states that if four divisions of the four superior courts are established in one island, then “the magistrate court of that island will be abolished. And if a division from among the four courts is established in an island, matters that fall within the jurisdiction of the relevant court shall be carried out by the relevant division and not by the magistrate court.”

The respondent’s lawyer claimed that with reference to the constitution and the Decentralisation Act, it was clear that Hulhumale’ and Villimale are now considered as a part of Male’ even though they are geographically two islands, therefore a magistrate court cannot be set up in any of the islands which under the law are now considered wards.

The intervening Nasheed’s lawyers also echoed the remarks on the case. Nasheed’s lawyers requested a period of three days to research the documents – which they claimed to have only received just a few minutes before the hearing – but were denied the opportunity.

The JSC lawyers who filed the case argued that Hulhumale’ and Villimale were only considered as a part of Male’ for administrative purposes and that this argument did not have any legal basis. Therefore, they stated, Hulhumale’ should be “judicially” considered a separate island.

The lawyers also claimed that the court was set up with the intention of providing easy access to justice for the people of Hulhumale. They also claimed that according to the Judicature Act article 66, each island must have a magistrate court and that prior to the passing of the Act, the court had been functioning as an island court.

The artice 66 states – “A Magistrate Court shall be established in all inhabited islands with the exception of Male’ where there are the four superior courts created in accordance with Article 53(b) of this Act and in an island where four divisions of these four superior courts are established in accordance with Article 53 (c) of this Act.”

Responding to the claims of the JSC, the respondents stated that based on the documents presented to the court, the Hulhumale court was formed to function as a section of Civil Court and Family Court prior to the passing of the Judicature Act.

The added that only island courts were to be declared as magistrate courts according to the judicature act and since Hulhumale Court was a section of the superior courts, it cannot be declared as a magistrate court according to the Judicature Act.

No one should meddle with the courts: Supreme Court

The Supreme Court decision on the matter is followed by its previous order invalidating the decision of Parliament’s Independent Institutions Oversight Committee to not recognise the legitimacy of the Hulhumale’ Magistrate Court.

In the order, the Supreme Court ordered not to meddle with the business of the courts by other institutions of the state stating that the country’s constitutional system broadly entertained the principle of separation of powers, no one power of the state can go beyond the limits set out in the constitution.

“According to articles 5, 6 and 7 of the constitution that came to force on 7 August 2008, the Maldivian constitutional system has explicitly set out that the executive power, legislative power and the judicial power is independent from one another and the boundaries of each power being clearly set out, it is unconstitutional for one power of the state to go beyond its constitutional boundaries as stated in article 8 of the constitution,” read the order.

The Supreme Court also in its order maintained that as per the constitution, the judicial power of the state was the sole constitutional authority in settling legal disputes between the institutions of the state or private parties.

“The judiciary established under the constitution is an independent and impartial institution and that all public institutions shall protect and uphold this independence and impartiality and therefore no institution shall interfere or influence the functioning of the courts,” it added.

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President Waheed requests parliamentary approval for loans of over US$96 million

Parliament has begun debate on the MVR 16.9 billion (US$1 billion) state budget for 2013 submitted by Finance Minister Abdulla Jihad last week.

At the beginning of Tuesday’s sitting, Speaker Abdulla Shahid read out a letter from President Dr Mohamed Waheed Hassan Manik requesting parliamentary approval for loans and government guarantees in the coming year.

Parliamentary approval for loans is required under amendments brought to the Public Finance Act in 2010.

Speaker Shahid announced that the President’s request was sent to parliament’s Finance Committee for consideration and review.

Minivan News understands President Waheed requested parliamentary approval for loans amounting to over US$96 million.

Presenting the budget to parliament last week, Finance Minister Jihad explained that next year’s budget deficit was to be financed with MVR 971 million (US$62 million) as budget support and MVR 1.3 billion (US$84 million) from Treasury bill (T-bill) sales.

Of the MVR 971 million estimated as budget support, MVR 671 million (US$43 million) was expected as foreign loan assistance, Jihad said, with the rest to be made up from “domestic finance.”

Jihad told parliament’s budget committee on Sunday that a large number of T-bills were sold to Champa Brothers – at an interest rate of about eight percent – when the Maldives Monetary Authority commenced sales to private parties in August this year.

Sun Online reported that Champa Brothers purchased T-bills worth US$11 million.

MMA T-bills of maturity dates of 28 days are sold at 7.73 percent interest, 91 days at 7.70 percent interest, 182 days at 7.55 percent interest, and 364 days at 7.70 percent interest.

Budget debate

Speaker Shahid announced that the debate would take place from 9:00am to 5:00pm with intervals until Thursday.

During Tuesday’s debate – which proceeded haltingly due to frequent loss of quorum – most MPs complained of the lack of funds allocated for development projects in their constituencies, such as harbours, water and sanitation systems, additional classrooms and upgrades to health centres.

In his budget speech (Dhivehi) last week, Jihad revealed that the public sector investment programme (PSIP) for 2013 included construction and repairs of harbours in 14 islands, establishing sewerage systems in 11 islands, water systems in three islands, 1,500 housing units in eight islands, 21 new mosques and upgrading the regional hospitals in Kulhudhufushi and Addu City to tertiary level.

Jihad said MVR 3.1 billion (US$201 million) was earmarked for the PSIP, with MVR 1.5 billion (US$97 million) from the state budget, MVR 21 million (US$1.3 million) from domestic loans, MVR 1.2 billion (US$77 million) as foreign loans and MVR347.6 million (US$22.5 million) as free aid.

Speaking first during Tuesday’s debate, MP Ali Waheed of the formerly ruling Maldivian Democratic Party (MDP) said there were no funds or projects in the budget for his constituency or the neighbouring island of Mahibadhoo in Alif Dhaal atoll.

The MDP parliamentary group deputy leader insisted that the government should continue implementing the former ruling party’s manifesto.

Government-aligned Dhivehi Rayyithunge Party (DRP) MP for Kelaa, Dr Abdulla Mausoom, expressed concern with taking more loans to finance the budget deficit while the public debt was expected to reach MVR 31 billion (US$2 billion) in 2013 – 82 percent of GDP.

Considering the high levels of debt, Dr Mausoom observed that his each of his constituents in Kelaa in the northernmost atoll of the Maldives “are indebted by MVR 85,000 (US$5510)”.

As a consequence of “unequal development of the country,” said Mausoom, there was no sewerage in the islands of Kelaa and Filladhoo.

The DRP MP criticised the administrations of both Presidents Maumoon Abdul Gayoom and Mohamed Nasheed for running up huge deficits and public debts, claiming that public debt “shot up like a rocket” during the three-year rule of the latter.

DRP MP for Kanditheemu, Mohamed Hussain, meanwhile protested over zero funds allocated for the island of Goidhoo in Shaviyani Atoll, part of his constituency.

The MP contended that smaller islands were neglected during formulation of the budget. He added that details of what was needed for the islands were shared with both President Waheed and Finance Minister Jihad prior to the drafting of the budget.

While he did not propose expenditure of more than half a million for the three smallest islands in Shaviyani Atoll, there was “a blank space next to Goidhoo” in the budget.

Local media reported that islanders of Goidhoo launched protests this week over the lack of funds allocated for development of the island.

Independent MP for Vaavu Atoll Velidhoo, Ali Mohamed, said his constituents in Foddhoo have been protesting at the island council for the past five days because the island’s pier was “crumbling” and damaged beyond use.

MDP MP for Ihavandhoo in Haa Alif atoll, Ahmed Abdulla, objected to infrastructure projects for the constituency approved in the budget for 2012 having come to a standstill.

MP Ahmed Abdulla claimed that MVR 10 million from a MVR 70 million loan from the Bank of Maldives had been disbursed but a planned sewerage project for Ihavandhoo did not commence this year.

Meanwhile, at the beginning of today’s sitting, Speaker Shahid said MPs should be “ashamed and embarrassed” that debate was only able to continue yesterday for two and a half hours out of six hours allotted in the agenda.

Yesterday’s debate was frequently interrupted by loss of quorum and was eventually cancelled around 4:00pm. At least 20 MPs are required to be in the chamber for sittings to proceed.

Shahid appealed for cooperation to let all MPs speak before the conclusion of the budget debate on Thursday.

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Maldives resort arranging repatriation of Finnish tourist killed in speedboat collision

The body of a Finnish tourist killed this week in a speedboat collision near to Male’ will be repatriated “as soon as possible”, the Honorary Consul of Finland in the Maldives has said.

An as yet unidentified male from Finland, who was said to be holidaying in the country with his wife, was killed after an express speedboat service to the island of Hulhumale’ collided with another vessel belonging to the Bandos Island Resort and Spa on Sunday (December 2).

Nine local people were also injured in the collision.  One of the injured – a 29 year-old woman – suffered a severe head injury that was since said to have improved, according to authorities.

A spokesperson for the honorary consul confirmed to Minivan News that its representatives had met with the wife of the deceased and were presently trying to assist the resort in which the couple had been staying with arrangements to return the body home.

The spokesperson said that the consulate was unable to provide any information on the exact cause of death, adding that it was waiting on the details from an ongoing police investigation.

Local media, citing police sources, reported yesterday that the Finnish national had been thrown overboard following the collision and was said to have been found dead when retrieved from the water.

Police Spokesperson Sub-Inspector Hassan Ahneef was unable to clarify the reports, claiming that investigations were continuing into the matter.

Following the collision on Sunday, a spokesperson for the Maldives Transport and Contracting Company (MTCC) said it had temporarily suspended its express speedboat service between Hulhumale’ and Male’ while it reviewed guest safety procedures.

“We believe we need to do some work on safety,” a company spokesperson told Minivan News. “We will be working with transport authorities, the Maldives National Defence Force (MNDF) and the police on the matter and will resume the services after that.” Dhoni services will continue to run between Male’ and Hulhumale’ as normal, the MTCC added yesterday.

When contacted today, the MTCC said it would be issuing a statement on the matter once the details of its own internal investigation and the findings of the police has been completed.

Meanwhile, Bandos Island Resort and Spa, which operated the other speedboat involved in the collision, said it was “not in a situation to discuss the incident” until police have completed their investigations.

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