Rising oil price forces STELCO to call in US$10 million in unpaid government bills

Chief Technical Officer of the State Electricity Company (STELCO) Dr Zaid Mohamed has said that the problem of state run companies not paying their electricity bills is a long term one, made more urgent by recent rises in the price of oil.

“This problem has gone for a long time – a couple of years but lately the bills have been getting higher,” said Zaid.

Zaid said that the recent rise in fuel prices was beginning to threaten the company’s ability to operate and so the board made the decision to disconnect certain companies.

The most recent figures from the Maldives Monetary Authority (MMA) show the price of crude oil to have risen 9 percent in the last month and 6 percent between August 2011 and August 2012.

STELCO has since started discussions with the government to resolve the issue.

“We have payments to make to our suppliers,” said Zaid, who was reluctant to discuss individual clients while the company was holding discussions with the government.

However, local media reported earlier this week that STELCO had sent staff to both the Maldives Broadcasting Corporation (MBC) and the headquarters of Malé City Council (MCC) to disconnect their electricity.

MCC councillor Kareem told Minivan News that the money had now been sent to the finance ministry.

MBC have released a statement blaming the government for a lack of financial assistance resulting in the possible suspension of its services – Television Maldives (TVM) and Voice of Maldives (VOM), reported Haveeru.

The statement added that it had received warnings for non-payment of bills from several other service providers.

“The average monthly revenue of this corporation during the year has been MVR1.6 million. Due to the highlighted financial difficulties most services and other items had been sought on credit,” the statement was reported to have read.

Minivan News was unable to obtain comment from the Finance Ministry regarding this matter at the time of press.

Haveeru reported that STELCO was owed MVR7.1 million (US$460,000) and MVR6.8 million (US$440,000) by MBC and the MCC, respectively.

The paper discovered that STELCO is owed MVR150 million (US$10 million) from various state institutions, including the Malé Health Service Corporation (MHSC), the police and the Maldives National Defence Force (MNDF).

Oil dependency

The Maldives dependency on oil was discussed yesterday by President Dr Mohamed Waheed Hassan at the World Energy Forum in Dubai.

“A development path primarily based on expensive diesel generated electricity is unsustainable in any country, let alone a small country like Maldives,” said Waheed at the forum’s opening ceremony.

“Today, we spend the equivalent of 20 percent of our GDP on diesel for electricity and transportation. We have already reached the point where the current expenditure on oil has become an obstacle to economic growth and development,” he continued.

President Waheed explained that the current price of 35-70 US cents per KW hour meant that the government was being forced to provide “heavy subsidies” to consumers, giving little option but to move towards a low carbon alternative.

The Maldives Energy Authority recently announced that its US$138 million project would convert ten islands within the country entirely to renewable energy with 30 percent of the total energy demands of a further 30 islands provided from renewable sources.

“Under this strategy, through installation of up to 27 megawatts of renewable electricity, we will be saving on the use of 22 million liters of diesel per year and reduce up to 65,000 tons of carbon dioxide emissions each year,” Waheed explained in Dubai.

“In addition we will be making significant savings from the heavy fuel and other electricity usage subsidies that are currently in place,” he added.

“We are mindful that these programmes cannot be implemented without the engagement of the private sector. In order to make the investment environment more favorable for the private investors, a number of attractive financial guarantee instruments and measures will be adopted.”

Some of the key behind the Scaling-Up Renewable Energy Program (SREP) for the former government said earlier this year that the project had fallen through after political instability following February’s controversial transfer of power had deterred potential investors in the scheme.

The SREP plan revealed the scale of the problem: “If the oil price rises to $150/bbl by 2020, and consumption grows by four percent per annum, oil imports are expected to reach around US$700 million.”

This figure equates to around US$700 million or almost US$2,000 per head of population, whose per capita income – based on the most recent government figures – is just under US$4000.

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Gangs thriving amid political instability, political support: Guardian

Political turmoil in the Maldives is fueling gang violence and criminal impunity, reports the UK’s Guardian newspaper.

The gangs are thriving not only because of the drug trade, but due to political parties employing gang members to assault opponents, destroy property, and boost numbers at rallies.

“It’s been a good few months. We’ve been doing well,” one gang leader told Guardian journalist Jason Burke, revealing that the gang had been “providing political parties with muscle to intimidate opponents, swell meetings and provide security.”

“There’s so much demand, we’ve had to appoint someone just to run that side of our operations. Requests are coming in all the time,” the gang leader told the newspaper.

According to the Guardian’s report, “Ibrahim’s outfit of more than 70 members works around the clock, trafficking heroin, enforcing its territory and carrying out what he calls ‘political work’. Ibrahim asks for MVR 10,000 (US$650) for 10 of his gang members to attend a demonstration for an hour. The rate charged for roughing up a political opponent – damaging his car or house – is between MVR 25,000 and MVR 50,000 (US$1650-3250), but for a stabbing the price would be much higher: US$25,000 at least.

“It’s not bad, enough to pay our expenses for a month,” Ibrahim told the paper.

The newspaper noted that corruption meant that “police officers can easily be persuaded to ‘lose’ evidence and judges can be bought off. Nor is prison much of a deterrent. Phones, cigarettes, DVDs, ‘anything except women’ is easily available,” the gang leader informed the paper.

The Guardian’s article echoes the findings of a report into the Maldives’ gangs by the Asia Foundation, published last month, which revealed that politicians and businessmen are paying gangs tens of thousands of rufiya to assault rivals, damage property, and in some cases have them killed.

“Political and business elites exploit gangs to carry out a range of illegal activities that serve their political or business interests in exchange for financing the gangs,” stated the report, which collected data through 20 focus groups and 24 in-depth interviews with gang members.

Politicians are described as being involved in symbiotic relationships with gangs, who depend on the gangs to suppress opponents and carry out tasks to help maintain their popularity or to divert media attention from political issues.

“Politicians have asked us to cut the TVM cable for MVR 25,000 (US$1620), to light up a bus for MVR 10,000 (US$650). Also in the recent political riots we were involved in things like burning the garbage collection area,” said one gang member.

“We were given some amount of money, two of us and the 10 people who accompanied us were paid some amount, we had to set fire and run from the spot and be seen in another area. We got paid to do this by a political group. Sometimes in return for the work we do, we also get to party in their safari boats with girls and alcohol,” they added.

In other cases, gang members were paid MVR 20,000 (US$1230) to destroy shop windows. Interviewees also stated that being offered immunity from prosecution was normally part of this deal.

Leaders, who deal directly with the politicians, were reported as earning up to MVR 1 million (US$65,000) a month via such activities.

One member even described instances where murder contracts were handed out.

“We may be given a file with all the information about the person and be told and told we may be paid in millions to carry out the killing,” explained one member.

The gang leader who spoke to the Guardian said that he had made enough money and was now looking for a quieter life: “I’m not sure where I’ll go. Maybe [Sri] Lanka. Maybe India. Out of here anyway,” he told the paper.

“People around the world [need] to know how things are here. This is a paradise, but not everyone is an angel. Things have gone this far because of politics,” he said.

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High Court orders man who swindled Swiss woman to pay back MVR 5.4 million

The High Court has dismissed an appeal and ordered a Maldivian national to pay back MVR 5.4 million (US$350,000) he took from a Swiss woman after promising to marry her.

In June, the Civil Court ordered a man identified by the court as Ibrahim Ali to pay the Swiss woman the money after he was found guilty of swindling it from her.

The Swiss woman alleged that Ibrahim had taken money from her on several occasions in large sums, and had promised that he would marry her.

She also told the court that Ibrahim had told her that he was single, but that she had later found out that he was married and had children.

The Civil Court ruling ordered Ibrahim to pay back US$58,800, 7,000 euros and 252,196.95 Swiss francs he had taken from The Swiss woman since 2007.

The court also ordered Ibrahim to pay back a sum of MVR 1,500 (US$ 97.27) in legal fees and 2,420 Swiss Francs in bank transfer charges.

Ibrahim however appealed the Civil Court’s verdict at the High Court.

In the appeal, Ibrahim argued that the Civil Court had failed to establish that the sum of money had to be paid back, or that the money he received was by his request.

He also contended that the Civil Court had failed to prove that the money was deposited in return for his agreement to marry the Swiss woman, and argued that there was no legal basis for the court to order him to reimburse the plaintiff.

However, the High Court in its ruling on Sunday upheld the Civil Court’s decision and stated that documents presented to the court clearly implied that there were money transfers taking place since 2007.

The ruling further stated that the Swiss woman had said in court that she had sent the money because Ibrahim had told her that he was unmarried.

In its ruling the High Court stated that Ibrahim had build a house from the money he had fraudulently collected, which was also built  on the understanding that he would marry the Swiss woman.

Ibrahim was not present at the hearings, and the three-judge panel issued the verdict in absentia.

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Government confident of meeting 2012 tourism goals despite “political turmoil”

Maldives tourism authorities remain confident the country will meet its ambition to welcome one million visitors to the country during 2012 despite ongoing “political turmoil” in the Indian Ocean over the last year.

The country plans over the next 12 months to hold a number of celebrations to commemorate 40 years since its travel industry was founded.

Minister of Tourism, Arts and Culture Ahmed Adheeb has told media in a press conference on Monday that should the Maldives achieve its aims of attracting one million visitors to the country during 2012, it could be effectively seen as being equivalent to welcoming two million arrivals due to the challenges of overcoming the “political turmoil” following February’s controversial transfer of power.

“We are closing in on that target with a lot of challenges. We are working with major obstacles due to the present crisis in the country,” Adheeb was quoted as saying.

The comments were made as former President Mohamed Nasheed, who alleges he was forced to resign from office on February 7 this year under “duress”, pleaded for tourists to “be more aware” of the political problems facing the Maldives.

“Tourists should be more aware of what is going on here. They may think they are remote from Male’ [the capital] but many of the staff are from here,” Nasheed told the UK-based Guardian newspaper this week.

The vast majority of tourists coming to the Maldives stay at its secluded island resorts that are classed as uninhabited, therefore making them exempt from local laws that outlaw the sale and consumption of alcohol and pork products, as well as openly practising any faith other than Sunni Islam. This resort model also keeps most tourists away from the partisan politics of the country, as well as the  unrest that occurred in the capital of Male’ and other islands earlier this year.

Nasheed had previously called for a tourism boycott of the Maldives, as both himself and his supporters continue to question the legitimacy of the government of President Dr Mohamed Waheeed Hassan, his former vice president.

However, these calls were soon dropped by Nasheed and supporters of the now opposition Maldivian Democratic Party (MDP).  The party are still pressing for early elections this year, despite a Commonwealth-backed Commission of National Inquiry (CNI) concluding the transfer of power in February was constitutional.

Despite fears about the impact of political uncertainty, Deputy Tourism Minister Mohamed Maleeh Jamal claimed back in September “the hard days” were over for the Maldives tourism industry following the release of the CNI’s findings.

The MDP has itself accepted some of the recommendations of the CNI report relating to judicial reform and holding security officials accountable, despite maintaining “concerns” over how the report was compiled and the potential “comical” implications of its conclusions.

Accepting the challenges faced by the tourism industry, Adheeb claimed that the entire industry was united in seeking to boost the prospects for tourism in the Maldives.

“The industry is driven by itself. This industry is mature enough to continue without any government interference. The difference between the former government and us is we won’t micro manage the industry. We are facilitating the process within the contours of the laws and regulations,” he told local media.

Amidst these claims, the Maldives last Thursday (October 18) picked up a number of accolades at the World Travel Awards (WTA) in Singapore that Adheeb claimed highlighted the strength of the country compared to other Indian Ocean destinations.

“This shows that Maldives is a stronger tourist destination than other Indian Ocean island nations such as Seychelles, Mauritius or Madagascar,” he was quoted as telling Sun Online.

The accolades picked up by the Maldives at this year’s WTA included awards for being the leading destination in the Indian Ocean for cruise and honeymoon holidays.  Also honoured was Ibrahim Nasir International Airport (INIA) – presently at the centre of legal and political wrangling – which took the prize for leading regional airport.

Over half way

As the Maldives also commences a number of events to celebrate 40 years since the inception of the country’s tourism, official figures from August showed the Maldives was over half way to meeting its million visitor aims for 2012.

Arrivals to the Maldives between January and August 2012 totalled 614,802 people – an increase of 2.9 percent compared to the same period during 2011, Ministry of Tourism, Arts and Culture figures showed.

Deputy Minister Maleeh was unable to respond to Minivan News about Adheeb’s comments and the challenges facing the wider tourism industry at the time of press.

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Former DRP Secretary General replaces sacked Felivaru MD

Former Secretary General of the Dhivehi Rayyithunge Party (DRP) and long-serving senior official of the Fisheries Ministry, Hassan Rasheed of G. Sherenade, was appointed Managing Director of Felivaru Fisheries Ltd yesterday, according to local media reports.

Rasheed, currently a member of the Progressive Party of Maldives (PPM), replaces former MD Ali Ahmed, who was sacked from the post after the Anti-Corruption Commission (ACC) forwarded a corruption case against the senior official for prosecution.

Former Chairman of Felivaru, Mohamed Imthiyaz, a member of the government-aligned Jumhooree Party (JP), was also dismissed from his post on September 25 following allegations of corruption and misappropriation of funds.

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Fenaka Corporation takes over four island powerhouses

The government’s utilities company, Fenaka Corporation, signed agreements yesterday to take over four island powerhouses.

At a ceremony yesterday, agreements were signed with the powerhouses of Haa Alif Vashafaru, Meemu Mulaku, Meemu Naalaafushi and Meemu Dhiggaru.

Speaking to press following the ceremony, Fenaka Managing Director Mohamed Nimal said the corporation expected to receive funds in next year’s budget for electricity and water works in 136 islands.

Nimal revealed that the corporation inherited a debt of MVR 472 million (US$30 million). The Progressive Party of Maldives (PPM) member said the corporation has decided to forward a number of corruption cases from the defunct utility companies to the Anti-Corruption Commission (ACC) on Thursday.

A number of projects had been carried out with no documentation or records, Nimal said, including renting an office for the former Northern Utility Company without a bidding process.

Nimal also claimed that 75 percent of Fenaka Corporation’s 1,400 employees were members of the Maldivian Democratic Party (MDP). He added that some MDP members had been sacked due to harassment of staff from other political parties and actions detrimental to the corporation.

In June, President Dr Mohamed Waheed Hassan Manik established Fenaka by presidential decree to take over the seven utility companies, created during the administration of former President Mohamed Nasheed under the ousted MDP government’s policy of dividing the nation into seven provinces for decentralised administration.

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Former President Nasheed tours Meemu Atoll for by-election campaign

Former President Mohamed Nasheed is currently touring islands of Meemu Atoll to campaign for Maldivian Democratic Party (MDP) candidate Ibrahim Latheef in the upcoming by-election on October 29 for the Meemu Mulaku constituency atoll council seat.

Nasheed departed Male’ yesterday following a High Court hearing in the afternoon and spoke at a rally at Mulaku last night.

According to MDP social media updates, the former President visited Meemu Naalafushi and Kolhufushi this morning and received a warm welcome from islanders.

In addition to the Mulaku contest, by-elections will also take place on October 29 for vacant island council seats in Alif Dhaal Dhidhoo, Laamu Maibaidhoo and Faafu Bilehdhoo.

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Police nab expats brewing alcohol in Thilafushi

Police arrested three expatriates caught brewing alcohol in Thilafushi yesterday.

According to police media, the suspects taken into custody around 7:50pm were two Indian men aged 46 and 27 and a Bangladeshi man aged 24.

In a joint operation conducted by the Drug Enforcement Department (DED) and Marine Police, police confiscated three five-litre bottles and three 500ml bottles of alcohol as well as eight containers with 20 litres of fermented alcohol and equipment used to brew alcohol.

Police said the Maldives National Defence Force (MNDF) provided assistance for the operation.

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Doctors raise concerns over medicine shortages

Medical doctors, for the second time in 2012, have publicly expressed concern over medicine shortages in the Maldives.

In addition to official routes of raising concerns with relevant authorities, doctors have brought the issue of essential drugs shortage to the public’s attention and appealed to the government and the legislature through social media.

Dr Abdulla Niyaf, Chief Medical Officer and Senior Pediatric Consultant at ADK Hospital, has repeatedly expressed concern about the issue, specifically noting the recurrent problem of stock shortages in essential drugs such as neostigmine and phenobarbitone.

“As a paediatrician, we go in after each birth or cesarean to check on the newborn, full of concern that something might happen to the baby. If, say, the child’s heart malfunctions, and we are out of adrenaline, then there is nothing more that even us doctors can give,” explained Niyaf to Minivan News.

Niyaf said that the systematic issue of running out of stock of critical drugs was very serious, posing risks to the lives of many. He said that it is a huge concern as a doctor that he would be unable to provide immediate medication to patients who are in crucial need of specific medicines, due to complications with stock renewal.

Niyaf further said that he had previously sat down to discuss the matter with the State Trading Organisation (STO), the sole company licensed to import controlled drugs, and other relevant authorities. The answer had always been that the suppliers were facing issues of licensing, permits, delays in customs and so on.

“For how long can we, as doctors, keep listening to these justifications? All I want is for the issue to be resolved and for patients to have the chance of getting the best possible medical attention,” Niyaf said, expressing concern that the relevant authorities had so far not been able to resolve the issue.

Dr Faisal Saeed, another practicing doctor, told Minivan News that the matter was “a very real concern”.

“It is true that many medicines are often out of stock, but that doesn’t lessen the gravity of the problem. I don’t believe it is an option to be ever out of stock. What will any patient do if a critical medicine is unavailable at the time they most need it?”

Saeed further confirmed that there was a current shortage, stating: “As doctors, we worry about this. If something happens, it is we who must take responsibility. Our question is, when this country runs out of medicine, who is to be held accountable? Who will take responsibility for this?”

Dr Fathimath Nadhiya stated that the issue of shortages of even the most essential drugs has been a longstanding concern for a long period of time, further saying that if shortages were such an issue in the capital island Male’, then the loss must be felt even more harshly at remote island health facilities.

“Hospitals and health centres store the minimum required amounts of critical medicines at any given time. But we are not aware who carries the oversight responsibility to check whether this minimum is always maintained,” Nadhiya said.

She further spoke of her worry that with the lack of monitoring, island health facilities may have an even harder time to obtain many of the critical medicines. She said that in many islands, there were only one or more pharmacies run by private businessmen, who would prioritse medicine supplies not based on their medical importance, but rather on their sales statistics.

Ahmed Afaal, Managing Director of ADK, has also expressed concern on the matter on social media network, Twitter. He sent a message to President Dr Mohamed Waheed Hassan, urging him to look into the matter, stating that “tomorrow we may have to stop surgeries [because of an] injection neostigmine shortage. The only supplier is out of stock. Please help.”

Not yet a “doomsday scenario”: government

While many practicing clinicians have expressed concerns on the matter, the government denies the issue is as serious as claimed by the doctors.

“Checked with Health Minister and STO MD. There is no reason to worry about medicines,” President Waheed said,  in a short statement on Twitter.

Minister of Health, Dr Ahmed Jamsheed, backed the statement, saying at a press conference on Sunday that “although some social media messages on Twitter by practicing doctors may make the public dread a doomsday scenario, things aren’t all that bad yet”.

Jamsheed however did confirm that medicine shortages were a recurring problem in the health sector, stating that the Ministry of Health was planning to start a programme with the assistance of UNOPS and WHO to create a procurement/supply chain management system. Jamsheed said he believed that all the current concerns would be addressed and found a solution to through this programme.

“There is a common misconception that I would like to clarify. Although people usually assume otherwise, the health sector has never been involved in importing and supplying medicines. This is left to the private sector and the government-owned company STO,” Jamsheed explained.

“What we are seeing is that those responsible are not able to sufficiently supply medicines. I think we need to change this system if we are to find a solution. If we are to get a permanent solution, then we must make supplying medicines to patients the responsibility of the service provider, regardless of who imports it.”

Although some local practitioners say that the complaint is that the first choice medicines are unavailable, Jamsheed alleged that some of the complaints were because brands of medicine preferred by an individual doctor were not widely for sale.

“If there is an emergency, then the routine is that hospitals or the government flies in the medicine from neighbouring countries at the earliest,” Jamsheed said.

“If those staff in medical facilities who are responsible for these tasks are able to perform their jobs correctly, then it wouldn’t come to such a critical stage where provision of services are interrupted,” he stated.

Meanwhile, some doctors who spoke to Minivan News rejected the idea that emergency stocks were a solution, insisting that stock records ought to better kept and that patients in critical conditions do not have the option of waiting for medicine stocks to be flown in.

Legislative intervention

Maldives Democratic Party (MDP) MP Ibrahim Rasheed ‘Bonda’ submitted an emergency motion to the parliament on Monday, calling on the legislature to take action to “immediately resolve” the problem of medicine shortages.

Rasheed claimed that this failure to provide critical “life-saving medicines” to patients in crucial need of them was causing loss of lives.

“When practising doctors take the initiative to raise concerns, we realised the gravity of this problem. We then researched the issue in depth,” Rasheed told Minivan News.

“Millions of rufiya worth medicines need to be disposed of due to the failure to manage stocks. The stock is still managed manually. There is also a lot of corruption involved in the procurement and supply of medicines,” he said.

“There are permanent parliament committees within whose mandate this issue will fall. The problem is there are already a large number of pending bills that need to be worked on by these committees. We are now discussing within our party to determine what the most effective course of action will be,” Rasheed said.

During the one hour debate that ensued after the submission of the motion, Dhivehi Rayyithunge Party MP Ahmed Mohamed claimed that health services in his constituency had deteriorated, calling the condition of health care provision “regrettable”.

Progressive Party of Maldives (PPM) MP Adam Ahmed Shareef stated that health centres in the constituency he represented did not have the capacity for “the most basic tests”, adding that the pharmacy was managed by the women’s committee.

STO Spokesperson Ismail Sadiq was unavailable to speak to Minivan News this afternoon, and was not responding to calls.

Minivan News was not able to contact the Director General of Maldives Food and Drug Authority, Shareefa Adam, as her phone was switched off up to the time of press.

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