IFC responds to government’s allegations of negligence in airport bid

Additional reporting by Neil Merrett

A spokesperson for the International Finance Corporation (IFC) has defended the organisation against charges of negligence during the bidding process for the development of Ibrahim Nasir International Airport (INIA).

In a press conference last Thursday held by the Attorney General  Azima Shukoor, Economic Development Minister Ahmed Mohamed, Toursim Minister Ahmed Adheeb and Civil Aviations Minister Dr Ahmed Shamheed, it was alleged there were discrepancies in the bid awarding and concession process.

The cabinet members claimed that the IFC had been “irresponsible” and “negligent” in advising the former government of President Mohamed Nasheed in the concession of INIA by Indian infrastructure giant GMR.

“The current government believes that the IFC had not given the most appropriate legal, financial and economic advice to the Maldivian State,” Azima Shukoor said.

The IFC 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 spoksperson.

The IFC – a member of the World Bank Group – was established in 1956 to stimulate private investment in developing countries through investment, advisory, and asset management services.

The spokesperson stated that the bids were evaluated by a government appointed committee, comprising senior government officials, using two key criteria.

The first criterion required firms to meet all the technical requirements set out in the tender documents which, Seth stated, were designed to meet the objectives of the government, and ensure the airport becomes a world class airport with ‘Leadership in Energy and Environmental Design’ certification (Silver).

The second criterion was financial, favouring the highest offer from firms that passed the technical stage. The financial criterion was a combination of a one-time up-front fee, and fixed and variable fees to be paid throughout, explained the spokesperson.

“The IFC’s advice complied with Maldivian laws and regulations and followed international best practices at each step of the bidding process to ensure the highest degree of competitiveness, transparency and credibility of the process,” the organisation stated.

“These processes have been followed globally in several Public-Private-Partnership projects in the airport and other infrastructure sectors,” it added.

Asked if the IFC was currently continuing assistance to GMR or the Maldivian government, it replied “We are currently not working in any capacity with the authorities on this project. We however remain available to address any issues or concerns that the government may have relating to the project.”

A GMR Spokesperson said that the company did not wish to comment on the remarks made by government ministers.

The Anti-Corruption Commission (ACC), which is currently investigating the GMR deal, said last week that continued work on the project may be delayed considerably whilst the investigations are completed.

ACC investigations began in June, although building work on the new terminal – due to open in July 2014 – was ordered to halt in early August after the government claimed that the company had not acquired the appropriate permits.

Government’s critique of bidding process

During Thursday’s press conference, Shukoor claimed that the role played by the IFC during the bid awarding process – as well as the technical, financial and legal advice given – was unacceptable and included “major inconsistencies” in the “loss-benefit assessment” carried out before awarding the project to GMR.

“The legal agreement also lacks equity between the state and GMR, and gives significant powers which have narrowed the government’s ability to manoeuvre within the agreement. For this reason, the state is facing a huge loss even in taking steps that have to be taken immediately,” she added.

Speaking about the prospective profit, Shukoor claimed the agreement made between GMR and the government would lose the country more than that it would earn, and a much more cost effective master plan had been made during the tenure of former President Maumoon Abdul Gayoom.

She said that as long as the agreement between GMR and the government is not invalidated, the agreement would be “legally binding” despite a “majority of the people” who wish to “terminate the agreement immediately”.

“The government must also consider how much money has to be paid back as compensation if terminating the agreement, and it is clear to all of you that the Maldives financial and economic situation is at a critical level, and in this situation it is not an easy thing to do,” she told the press.

Shukoor also expressed the government’s concern about the effect on investor confidence that may result if the agreement is terminated in addition to other “diplomatic issues” that may arise from such a decision.

The Economic Minister, Ahmed Mohamed, claimed that the Nasheed government had only considered the lump sum that it received as the upfront payment, rather than long term benefits that the government could have achieved.

“They awarded the bid to a party who proposed to pay US$76million, but if you look at the other bidders, their bids were more profitable in the long run. For example one of the bidders proposed to give a 31 percent share to all the businesses except that from oil trades until 2014, but GMR proposed only one percent,” he claimed.

He added that another bidder had proposed to share 16 percent of the profits gained from the oil trades with the government.

“It is clear that the government did not consider, when awarding the bid, the long term benefits of the people but rather an instant short term profit,” he argued.

Highlighting the already much disputed issue of the Airport Development Charge (ADC), Mohamed claimed the government had given up a lot of power to GMR in the contract, allowing them to dictate all the fees during the concession.

He stated that there were only two options left for the government: “Either find a solution within the concession agreement with GMR or terminate it.”

Civil Aviation Minister Dr Shamheed said the initial INIA master plan, made by British consultancy firm Scott Wilson, was considered too costly by the IFC.

“So we checked the truth of IFC’s report. The master plan by Scott Wilson is a phase based development. There were developments that were to be brought in the first phase, the second and other phases that followed were mentioned very much in detail,” he claimed.

Shamheed claimed that despite the fact that Wilson’s master plan was more cost effective the IFC made a new master plan, hiring another foreign Consultancy firm – Halcrow- which Dr Shamheed claimed was more costly.

“Scott Wilson’s phase one cost us US$390 million, and all the three phases summed up came to a figure around US$590 million. IFC did not provide this information to the government. We are talking about a development of 30 years,” he said.

Shamheed also alleged that the new master plan was made without even testing the status of the current runway at all and said they relied on a test that was made a long time ago.

“Even those tests showed that the runway needed significant repairs and some parts of the runway had to be removed,” he added.

“This is very irresponsible that the former government entered into a contract with a party who did not assess the situation of the existing runway,” he claimed.

Tourism Minister Ahmed Adheeb alleged that because of the new fees implemented by GMR following its take-over, the flight frequency from Europe had declined.

“Coming to Maldives is no longer feasible for most of the chartered flights.  Sri Lankan airlines’ Male to London direct flights have been pulled out following the decision. Even though the flight frequency from China has increased, the number of bed nights has declined,” Adheeb said.

Likes(0)Dislikes(0)

‘Time just right for dialogue, political reconciliation’: Observer Research Foundation

“Given the shock and awe democracy has inspired in the nation over the past three or four years, the current phase is a sit-back time for the nation to take stock before moving forward,” writes N Sathiya Moorthy for the Observer Research Foundation.

“The nation is also in a more receptive, reflective and contemplative mood than anytime over the past months and years. It cannot afford to lose this opportunity.

For the right atmosphere to be created for such a dialogue and national reconciliation coupled with a political consensus on a way forward for existing issues of institutionalisation and recurring problems of economy, Maldives has to begin at the beginning.

Independent of charges and counter-charges, of a criminal nature in particular, the immunity available to past Presidents should apply uniformly, so that parties and leaders do not still have to live in the past, or have to defend their decisions and actions while in office.

Where the nation has learnt from the democratic developments of the past years, it can look at options for the future, including legal and punitive actions. At the end of the day, democracy is a dynamic process, and it will be more so in the case of Maldives, which wants to do – and will have to do – all at once. Errors and correctives are also part of greater democratisation.”

Likes(0)Dislikes(0)

‘Being female in Male’: Daily News and Analysis

“Male’, the miniscule capital of the Maldives, serves as an antidote to the tourist islands that dot the archipelago, with their buffet of luxury resorts and personalised service. It is in fact the complete antithetical, binary contrast, other,” writes Sonia Nazareth for India’s Daily News and Analysis.

“No sooner than I disembark from the seaplane, as well as from the thrill born of the underwater adventure and barefoot luxury of the resort islands, than my bikini is replaced by a gown that covers my shoulders and knees, to make me somewhat presentable for this Islamic capital.

While the tourist islands resemble a film set waiting for James Bond to speed boat up to it, Male feels like a paragraph from a Roald Dahl short story.

The unexpected always lurking close around the corner. For one thing, unlike many other places in South Asia, Male’ stays awake late into the night.

For another, it is one of the few places in the world where I see clusters of women in burquini, (a swimming costume which comprises of all the woman’s clothing and a headscarf), swimming in public pools created by the state, within the sea.”

Read more

Likes(0)Dislikes(0)

‘SenaHiya’ Military Hospital officially opened by Indian Defense Minister

The ‘SenaHiya’ Military Hospital in Male’ was officially opened today at a ceremony inaugurated by Indian Defence Minister Shri A.K. Anthony.

Speaking at the ceremony, Anthony stated that the hospital was proof of the strong bond that exists between the two countries, adding that medical staff from the Indian Military would be permanently based on the newly opened site.

During his speech, Anthony spoke of the possibilities for the two countries to extend their existing defence collaboration in order to strengthen naval security and drug trafficking prevention.

Calling the construction of the hospital Anthony’s ‘dream project’, Minister of Defense and National Security Mohamed Nazim thanked the Indian defence minister for his role in getting the project completed.

“India and the Maldives share the same views and policies on a number of issues. India is also extending assistance in the areas of protecting the Maldives Exclusive Economic Zone and intelligence information,” Nazim said.

Although the official opening ceremony was held today, MNDF officials have said that the ‘SenaHiya’ Hospital has been in service since late 2010.

Speaking to Minivan News, MNDF Spokesperson Colonel Abdul Raheem said that ever since the military had moved to the new building in Henveiru in Male’, it had been providing medical services for its officers.

“With the help of the Indian government in 2011, we gradually improved the services to that of a hospital. We have been providing hospital-quality services to security forces and their families since the beginning of the year,” he said.

Colonel Raheem added that the hospital presently provided services to MNDF and police officers, along with their families, while efforts were also being made to begin offering services to Immigration and Customs officers at the site at a later date.  Public services are also expected to be offered, according to the MNDF.

Minister Anthony’s current visit is said to have resulted from an invitation from his Maldivian counterpart, who requested he open the SenaHiya Military Hospital and also lay the foundation of the new MNDF training academy.

The ceremony came after a week in which the international media has played up the rapidly expanding relations between the Maldives and China, drawing attention to the potential geopolitical implications for neighbouring India.

Likes(1)Dislikes(0)

Protests over anti-Islamic movie spread to the Maldives

Crowds of protesters gathered in front of the UN building on Friday, protesting against the movie “Innocence of Muslims”, perceived as offensive to the Prophet Mohamed.

Similar protests have erupted across the Arab world following the release of video offensive to Muslims on the the video-sharing website, YouTube. The UK’s Guardian newspaper reported that the video was promoted by radical Islamophobic Christians in the US and then broadcast in Egypt by Islamic activists.

Protests have occurred in Iraq, Iran, Bahrain, Afghanistan, Yemen, Egypt, Jerusalem and the West Bank, Kashmir, Malaysia, Indonesia and the Nigerian city of Jos. The most serious incident was in Libya, where demonstrators killed US Ambassador Chris Stevens and three embassy employees by firing a rocket-propelled grenade at their car. British and German embassies have also been attacked.

On Friday in Male’, a leaflet was distributed inviting persons to the protest at 4:00pm, titled “In Protection of Prophet Mohamed”. The leaflet did not specify who the organisers of the protest were.

Police had cordoned off the area ahead of the time, and protesters initially gathered opposite Billabong International School. Placards were mostly in English, and had a range of messages expressing their anger against the movie and the US in general.

Some of the placards in the front row read: “Behead those who insult our Prophet”, “Our prophet is dearest to us than our mother”, “May Allah curse America”, and “Maldives: Future graveyard of Americans and Jews”.

In less than an hour protesters broke through police barricades, shoving police away angrily and approached the UN headquarters. The few police officers present cleared the entrance of the building, but let protesters remain right in front of it.

Female protesters remained at the far end of the road, near the Billabong school.

A US flag was set on fire, with protesters surrounding it chanting “Allah Akbar”. A number of speeches were made, accompanied with chants. Some of the most repeated chants include asking President Waheed to return America’s US$20,000 contribution to restore the historical Buddhist artifacts in the museum, which were destroyed by a mob of vandals during February’s political turmoil. Some protesters stated loudly that if the idols were restored, they would promptly destroy them again.

At one point, protesters demanded the resignation of Minister of Islamic Affairs, Sheikh Mohamed Shaheem Ali Saeed.

A lecturer at the Maldives University, Sheikh Mohamed Thoyyib, was given protection by the police after his speech asking protesters to show patience and compassion like the Prophet enraged some of the people gathered there.

Young children accompanied some of the protesters, with some children and their parents holding toy guns in their hands.

The protest was adjourned in time for maghrib prayers, at around 6:30pm.

The Ministry of Islamic Affairs released a statement on Thursday condemning the movie. It stated that the enemies of Islam had always used tools of the times to insult the Prophet, but that such efforts would not at all harm the character of the Prophet, as he was held in high regard all over the world. The statement called on people to show restraint and to offer prayers for the Prophet.

The Islamic Foundation of the Maldives also issued a press release today, stating that “Countless numbers of Muslims all around the world intensely revere the person of Mohamed, in fact they revere him more than their own lives, and therefore it is extremely offensive for them to defame Prophet Mohamed (PBUH).”

The Maldives’ Ministry of Foreign Affairs has meanwhile officially condemned the attacks on the US Embassy in Cairo and the US Consulate in Benghazi.

In a series of Tweets last night, the Maldives’ Islamic Adhaalath Party (AP) condemned the video, whilst urging Muslims not to resort to violence.

“AP strongly condemns the anti Islamic video ‘Innocence of Muslims’ which is highly provocative and highly insulting to Muslims,” said the party, before adding, “Islam forbids resorting to violence against innocents. We should not attack our foreign guests and/or foreign diplomatic offices.”

The protests come at the end of a week that has seen two visits from to the Maldives from both the US Ambassador to Sri Lanka, Michele J. Sison, and US Assistant Secretary of State for South and Central Asian Affairs Robert Blake.

Local media reported that threats were made against Sison during the protest.

There were also reports that the crowd had issued warnings against Commonwealth Special Envoy Sir Donald McKinnon who also visited the country this week to discuss the recently completed Commission of National Inquiry (CNI) with leading politicians.

Likes(3)Dislikes(0)

MP Nasheed proposes bill criminalising sexual offenses

Independent Member of Parliament Mohamed Nasheed has published on his personal blog a bill he submitted to parliament in June this year, proposing to criminalise sexual offences.

The bill defines actions to be taken against specific types of sexual offenses, including rape, spousal rape, prostitution, bestiality and incest.

Nasheed stated that he felt a bill like this is immensely important because of the serious nature of modern day sexual offenses. He states that the current legislative framework governing such offenses is too lenient, and that the proposed bill would provide a stronger penalisation structure.

Nasheed has said that he believes it is equally important to criminalise sexual offenses against adults, similar to the existing laws criminalising such acts against children.

Likes(0)Dislikes(0)

Children’s home volunteers raise funding fears ahead of Villingili site expansion

A children’s home on the island of Villingili, one of three institutions presently housing vulnerable children in the Maldives, is set to expand its operations to a second neighbouring building to provide separate accommodation for girls and boys.

However despite the proposed expansion, some volunteers at the shelter have raised concerns over the available finance for a service that houses, clothes and feeds almost 60 vulnerable children and babies who are without family to support them.

Speaking to Minivan News during a visit to the home, Mohamed Latheef, a volunteer who has been visiting and working with staff at Villinigili for the last nine months, said that while the government over the last few years had provided a budget to cover most operating expense, funds were being increasingly stretched by the rising cost of fuel and other basic essentials.

The children’s home, one of three properties assigned by authorities to shelter adolescents, is currently funded and operated through the Ministry of Gender, Family and Human Rights. Authorities added that the home is also supported with donations from a number of private groups and charities in the country.

According to staff working at the home, 56 children are currently kept at the site on Villingili. Of these children, 25 are aged between 10 months to six years of age, while another 25 are aged up to 12.

Latheef claimed that although the annual state financing was vital in covering fuel charges along with the site’s water and electricity bills, very little financing was left to improve amenities and services for the children.

Among several challenges faced at the home, some children who have learning difficulties such as dyslexia cannot be supported within the country’s the public school system, one member of staff employed full time at the shelter explained. This has required the need for specialist tuition to assist with the children’s learning at the home to help them catch up with pupils of their age.

Site expansion

According to Latheef, Vilingili’s MP had this year been able to secure a neighbouring building that could be used to house girls and boys once they reached a certain age. At present, boys and girls living at the shelter are kept in dormitories on separate floors.

“The local MP here has been able to secure the building next door. The boys and girls will still able to play and see each other, but when they reach a certain age it can be quite difficult to keep them under one roof,” said the volunteer. “The building is all ready to go and can start this year, however, right now there are not enough teachers and staff to assist in running [the second building].”

With limited funds available to operate the home, Latheef told Minivan News that while the government was already providing a large part of the funds to run the shelter, most of this funding was paid immediately back to state-run enterprises.

“Right now, staff are going to shops and having to pay GST on the goods being used for the children. This is understandable as shopkeepers may not know they work for the orphanage, but the electricity, water and public transport [to Male’] are all supplied by government companies,” he said. “Surely it is possible to produce passes for the staff and the 50 or so children we have here and assist with our utilities? They can give us that much.”

Latheef added that during the last year, the home had been getting assistance from local MPs and organisations.

He stressed that following concerns about a female drug rehabilitation clinic right next to the shelter, authorities had also helped to move the site.

“There was a recovery centre for female drug addicts right by us. The girls who were there, aged about 16 to 18 would be standing outside with cigarettes, sometimes just in their bras and underwear. The boys we have here would gather to watch at times,” he said, adding that requests were made to authorities such as the anti-drug abuse NGO Journey for assistance.

“The recovery centre has been moved now, we don’t know where it has gone.”

Latheef claimed that it remained difficult for staff at the centre to directly get assistance from senior politicians in the country – a constant feature under successive governments over the last few years.

“While it can be possible to speak to indivudal MPs here, we can’t go to the government directly and making appointments can be difficult,” he said.

Latheef added that difficulties in addressing problems faced at the home with senior government figures were exacerbated by what he claimed was a lack of standard inspections or visits from key officials.

When contacted today, the Gender Ministry said that the deputy director of the Children’s home was unavailable for comment at the time of press. However, the ministry added that the he would be arranging a date to meet with Minivan News in the next few weeks to discuss potential funding issues and challenges in housing the country’s vulnerable children.

Aside from the home on Villingili, two other children’s shelters are currently operated in the Maldives. These are the Education and Training Centre for Children (ETCC) on Maafushi and Feydhoo Finolhu’s Correctional Training Centre for Children.

Likes(0)Dislikes(0)

Islamic Ministry calls for ban on mixed-gender dancing

The Ministry of Islamic Affairs has sent a circular to all government institutions banning the holding of any mixed gender dance events.

The circular, which was sent to all government offices, council offices and media, also calls for adolescent girls to be banned from activities requiring them to dance.

Minister of Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed called on the government to cease including activities such as dancing and singing to mark various occasions.

The administration of former President Mohamed Nasheed had included such dancing in official celebrations to promote and preserve traditional Maldivian culture. However Shaheem said such activities contravened the disciplinary guidelines and customs of Islam. It is unclear whether the call in the circular is legally enforceable under existing regulations.

The Ministry said it was acceptable to hold performances which fall within the boundaries of Islamic customs and disciplinary norms. Events such as children’s activities, performances exhibiting military skills, parades, playing the national anthem, boy scouts and girl guides performances, and the folk dance ‘Thaara’ were acceptable forms of entertainment, according to the Ministry.

‘Thaara’, dhivehi for ‘tambourine’ is a folk dance where performers sit in parallel rows, singing and dancing. This is performed specifically by men. The traditional songs sung during ‘Thaara’ are mostly in Arabic and the activity itself is said to have entered Maldivian culture through Arab influence.

The Islamic Ministry stated that its mandate is to provide religious counsel to the government, to plan state-organised initiatives of spreading and strengthening islamic values among Maldivians, and to teach citizens the righteous ways outlined in the religion.

Shaheem told Minivan News today that the directives in the circular were intended for both state bodies and individual citizens. He made no further comment.

The call for gender segregated performances comes after the government held a belated Independence Day celebration on September 9. The event was held at the National Stadium and featured dances and other performances by school children and the security forces.

Likes(1)Dislikes(0)

Maldives’ new defence policy rests on “Islam and national unity”: President Waheed

President Dr Mohamed Waheed Hassan yesterday described the Maldives’ first ever National Defence Policy as “the main axis of civil protection”, resting on a bedrock of Islam and national unity.

Waheed’s comments came during the official launch of the policy white papers at the Islamic Centre in Male’, yesterday morning.

In his speech, Waheed described the policies as “institutionalised embodiments of civil protection” which ought to be respected by all government bodies.

“Contained [within] are also important policies which protect individual, social and economic freedoms, and promote environmental conservation in conjunction with strategies for sustainable development,” said Waheed.

The President stressed that civil protection was not just the responsibility of a few institutions, highlighting the importance of “sharing common objectives, so as to facilitate adherence to a well-determined course of action.”

Waheed also launched the new Ministry of Defence and National Security website, which included further details of the policies.

The site, designed as a portal for the Ministry’s public services, stated that the Defence and Security policies are available on its own as well as the President’s Office website.

Neither document was available at the time of press although Colonel Abdul Raheem of the Maldives National Defence Force (MNDF) told Minivan News that they would be available soon.

When asked why the government had decided to produce these policy documents, the first time the country has done so, Raheem said that it was a standard practice in other countries.

No spokesman for the President’s Office was available at the time of press.

“The National Security Policy outlines a fundamental and comprehensive framework on inter-related issues and concerns that may impinge on national security,” reported the Ministry’s statement.

“The National Defence Policy outlines the way forward to fulfill the mandate of the Ministry of Defence and National Security and gives policy guidance to the three major components under the Ministry; the Maldives National Defence Force, Disaster Management Center and Aviation Security Command,” it continued.

The statement described the National Security Policy as providing national priorities in order to guide related policies across all government departments.

“It guides the national decision making process so that the sovereignty and territorial integrity, the well-being of the people and state institutions and other national interests are protected and enhanced,” read the statement.

State Minister for Islamic Affairs Sheikh Mohamed Shaheem Ali told Minivan News that he fully supported the new National Defence Policy.

“I feel it is important to get protection from acts of terrorism and extremism”, he said

Indian Defence Minister to visit

The Minister of Defence and National Security, Mohamed Nazim, has this week invited Indian Defence Minister A.K. Anthony to visit the country to officiate at the opening of the Maldivian Military Hospital as well as to the lay the foundation stone for the new MNDF training academy.

An Indian government press release has revealed that Anthony will be accompanied by a high level delegation which will include Defence Secretary Shashi Kant Sharma.

Having last visited the Maldives in 2009, international headlines have linked this visit to the rapidly expanding relations between the Maldives and China.

Waheed visited China at the start of the month, where he finalised agreements for a package of loans amounting to $500million (MVR7.7billion).

Despite Sino-Maldivian links having grown largely due to China providing more tourists to the Maldives than any other nation, the enhanced ties have led to speculation regarding Chinese naval ambitions in the Indian Ocean – often referred to as the ‘string of pearls’ theory.

Former Maldivian Foreign Minister Dr Ahmed Shaheed acknowledged at the time of Waheed’s state visit that India would be worried after its perceived diplomatic failings during the Maldives’ recent political upheavals.

However, Shaheed added that increased economic ties in the absence of new military ones did not represent a policy shift by the new government.

The Indian government this week extended a further $25million to the Maldives as part of a $100million credit facility agreed last November.

In a comment piece for local paper Haveeru today, Special Advisor to the President Dr Hassan Saeed lamented the government’s growing reliance on foreign aid.

“The reality is that our long held beliefs and values are today tradable commodities. Our sovereignty is compromised and we enjoy far less respect,” wrote Dr Hassan.

The Indian government reported that its defense minister would seek to strengthen cooperation in the defence sector during his visit to the Maldives.

It drew attention to the regular interactions between the countries’ military forces, which this year has included joint naval patrols of the Maldives’ Exclusive Economic Zone (EEZ).

Likes(1)Dislikes(0)