Tag: maldives news

IMF will work with us to reduce expenditure, says President’s Office

Government spokesman Abbas Adil Riza said today that the IMF is willing to work closely with the government, after a delegation from the organisation arrived in Male’.

Abbas said that as the government’s current policy is to reduce expenditure, it will require assistance from the IMF.

“The IMF wants to re-engage with the Maldives. The main reason the Maldives was suspended from receiving the funds that were destined for the country was because the former administration could not meet the requirements of the IMF,” Abbas was reported as saying in local media.

“The result of the discussions held with the IMF and this government would be an acquirement of extra $20 million from the IMF. It will be settled in a month or so,” he said.

Abbas denied that the meeting was initiated by the government: “Given that the Maldives is a member of the IMF meetings may be held at any time, so they’re not here due to an initiative taken by the government.”

The previous government’s discussions with the IMF became deadlocked after the government was unable to comply with the group’s borrowing requirements conditions concerning deficit reduction.

During his recent inaugural address to the People’s Majlis, President Dr Mohamed Waheed Hassan commented on the current state of the economy.

“Estimates for 2012 indicate that the debt component of the current account in our Balance of Payments will increase by 11 per cent as compared to 2011,” stated the president. “With respect to GDP, debt of our current account will go up to 28 per cent. This figure in 2011 was 26 per cent. The main reason for this rise is the expectation that imports will increase, resulting in an increase in expenditure for these imports.”

Government expenditure outstripped revenue  by 20 percent between January and September last year, claimed the Ministry of Finance and Treasury.

The budget deficit, which stood at just 1.9 percent of the economy in 2004, expanded to 7.3 percent in 2006 and ballooned to 23.9 percent in 2007, according to the IMF.

The fiscal deficit exploded on the back of a 400 percent increase in the government’s wage bill between 2004 and 2009, with tremendous growth between 2007 and 2009.

On paper, the government increased average salaries from Rf3000 to Rf11,000 and boosted the size of the civil service from 24,000 to 32,000 people – 11 percent of the total population of the country – doubling government spending from 35 percent of GDP to 60 percent from 2004 to 2006.

In a 2010 World Bank report headed ‘How did the Maldives get into this situation?’, it was noted that “the origin of the crisis is very clear… the wage bill for public sector employees grew dramatically in a very short time.”

According to the World Bank, a 66 percent increase in salaries and allowances for government employees between 2006 and 2008 was “by far the highest increase in compensation over a three year period to government employees of any country in the world.”

After declaring “significant policy slippages”, in particular the government’s failure to curtail spending,the IMF felt it necessary to delay some the Maldives’ funding in 2010.

After the Nasheed government struggled to reduce expenditure due to political constraints, in particular the Civil Service Commission, it introduced a tourism goods and services tax (TGST) in order for the local economy to benefit from the lucrative but often removed tourism economy.

The World Bank’s annual ‘Doing Business’ report for 2010 saw the Maldives’ ‘ease of doing business’ ranking fall from 71 to 87, and identified no ‘business-friendly’ reforms.

The Ministry of Education has recently announced a freeze on all Public Private Partnership (PPP), which were originally intended to remove financial burdens from the government, after raising questions over the legality of the tender processes.

Following the recent inaugural speech of President Waheed, his spokesman Abbas Adil Riza told Minivan News that the current government would not be looking to increase the Tourism Goods and Services Tax (TGST) but pledged that the government would seek to “live within in its own means.”

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New York Times reviews the Island President

The Island President is “unabashedly pro-Nasheed”, writes Vikas Bajaj for the New York Times.

“It depicts the short, slim 44-year-old with an infectious smile as a champion of democracy and human rights. In spite of the odds against him, he tries to browbeat, beg and shame world powers like the United States, China and India into committing to reductions in greenhouse gases so his people and hundreds of millions like them do not become “climate refugees.”

Much of the movie was shot between Mr Nasheed’s 2008 election and a global climate change summit meeting in Copenhagen in late 2009. The filmmakers had unusually free access to Mr Nasheed and his team, filming him in internal strategy meetings, with his family and in discussions with leaders from other countries and global organizations.

“When people see the film, hopefully the transparency of it will be so apparent,” Director Mr Jon Shenk said. “You can’t help but see Nasheed for what he is.”

Mr. Shenk said that in addition to raising awareness about climate change, he now wants his film to convince the world that Mr. Nasheed was deposed in a coup that was orchestrated by loyalists to the former dictator, Maumoon Abdul Gayoom.

“That might be the single most important thing that the movie can do,” Mr. Shenk, who co-directed the critically acclaimed documentary “Lost Boys of Sudan” (2003), said in a telephone interview from his office in San Francisco. “It’s now clear that this new government is not democratic, that the people who run the ministries are the same people who were there under the dictator.”

One scene, in which Mr. Nasheed is in his waiting room speaking to a citizen, appears to foreshadow the more recent turmoil in the country. It’s July 2009, three months before Mr. Nasheed would make an important speech in Copenhagen. A tired Mr. Nasheed confesses to the man that he is increasingly powerless to do what he wants because domestic opposition is hardening against him.

In a sense “Island President” is the biggest media event Mr. Nasheed could have hoped for, though the attention he now needs has more to do with his country’s domestic political turmoil then climate change.

The film comes as rival factions are presenting to the rest of the world vastly different narratives of what happened on Feb. 7, when Mr. Nasheed stepped down, and what should happen next.

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MDP MP Abdulla Abdulraheem rejoins DRP

Maldivian Democratic Party (MDP) MP Abdulla Abdulraheem has rejoined the Dhivehi Rayyithunge Party (DRP), a year after leaving his original party while it was in opposition.

Raheem joined the MDP in the footsteps of former DRP Deputy Leader, now MDP MP Ali Waheed, former DRP Sports Wing head Hassan Shujau, and deputy head Assad ‘Adubarey’ Ali.

On Tuesday late afternoon at the DRP Office there was a small ceremony to mark his signing and a meeting afterwards with the press.

Speaking at the meeting, Raheem said he came back to DRP because his views did not match those of the MDP leadership, and because he felt that in the future the number of MDP supporters would deteriorate.

When a journalist asked him whether he believed that the current government was legitimate, he replied that he was obliged to stay behind the stand of DRP after signing with the party.

Raheem also said that he believed that the current government was constitutional and was formed according to the law.

MDP MP Mohamed Musthafa today told Minivan News that Raheem’s resignation from MDP was “regrettable”.

‘’We are in a very difficult situation and he worked with us very well,’’ Musthafa said. ‘’I don’t think that any of the MDP members saw this coming.’’

Musthafa said he think that Raheem left MDP because he wanted to stay with the government at the time.

‘’But his action will make his constituents lose confidence with him, and if he is to run for the parliament election next time I do not think he can win the seat,’’ he said. ‘’More than 70 percent of Male’ citizens are MDP supporters.’’

Musthafa described the move as a “big challenge” to Raheem’s political career.

MDP Spokesperson and MP Imthiyaz ‘Inthi’ Fahmy said he would not like to comment on the matter.

‘’We did not have a clue that this was about to happen,’’ he said. ‘’But there are people like that who come and go.’’

MDP current Deputy Leader and MP Alhan Fahmy is also from DRP, along with figures such as Ali Waheed and Shujau.

Alhan joined MDP in February 2010, after DRP Disciplinary Committee decided to take action against him for voting against a no-confidence motion passed to the parliament by the then-opposition to oust the then-Foreign Minister Dr Ahmed Shaheed.

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Pension Office reveals details of benefits

CEO of the Pension Office Mohamed Hussain Manik has told the media that the Retirement Pension Scheme holds more than Rf1 billion, with Rf50 million received each month from 7,100 contributors.

He discussed the nature of the funds investments, saying that the Pension Act’s stipulations allow only for investment in companies listed on the Capital Market Development Authority (CMDA).

“We can’t invest in anything risky; we have to make safe investments. So we can’t invest in just anything,” said Manik. The fund has invested Rf100 million in Dhiraagu shares.

Foreign nationals are now also eligible to take part in the pension scheme if they register before April 2014 and will be able to draw on their pension after reaching 65 years old, even if they reside abroad.

From January the amount received for those over 65 is Rf 2,300. 15,176 people currently receive this sum each month.

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Aircraft makes emergency landing at INIA

A Thomson Airways Boeing 767 aircraft made an emergency landing at Ibrahim Nasir International Airport (INIA) on Wednesday morning, shortly after taking off at 10:41am.

INIA issued a statement that the
“The aircraft declared a Full Emergency after departure due to a technical fault with the aircraft avionics,” said INIA in a statement.

“Ibrahim Nasir International Airport (INIA) implemented its procedures for a Full Emergency in conjunction with Maldives National Defence Forces (MNDF), Malé Health Corporation and
other concerned agencies.”

The aircraft landed safely at 11:46am, with no harm to the 230 passengers and crew on board.

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MBC broadcast ethics talks set to conclude

Discussions between national media organisations designed to outline new ethical standards for broadcasters based in the country are set to conclude today, Sun Online has reported.

The two day talks, which are being overseen by the Maldives Broadcast Commission (MBC), commenced yesterday at the Islamic Centre in a bid to outline and inform local media and the public about how broadcasters should be acting.

Today’s session is reportedly set to establish revisions to the existing MBC Code of Ethics based upon suggestions from attendees.

“These regulations do not limit broadcasters from having their own editorial policies or other standards that they wish to follow. However they should not act against the basic guidelines,” MBC Director General Mohamed Nasih was quoted as saying by local media.

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Teased, touched and assaulted: foreign women facing harassment

Walking down a crowded street two weeks ago in the Maldives capital of Male’, Lisa*, 25, had one of the most horrific experiences of her life.

Teased, touched and assaulted by two young men on the street, the Australian foreign worker was left deeply upset and stunned over the harassment that occurred in broad daylight.

“I was walking near the swim track when these two boys in their 20s came behind me and grabbed my ass. I screamed and they walked away. I kept walking forward and then suddenly saw the two boys approaching me again. I was really scared because I did not know what they were going to do next,” Lisa recalled.

“They came back, surrounded me and started to pass comments at me. They touched me inappropriately, grabbed me and one of them slapped me,” she continued. It lasted for about 20 seconds I think. I took my phone and warned them I was calling the police. Then they grabbed me once more and just ran off.”

She had travelled from Australia to work in the Maldives just a few months before the incident, and had not expected to face harassment or attack, she said.

In the last few weeks foreign women from diverse nationalities working in Maldives have come forward and told Minivan News about various attacks, ranging from verbal abuse to physical and sometimes sexual assaults.

Clarice*, a 23-year-old French woman, was teased and stalked on the street while she was walking home on March 1.

“I was walking past the artificial beach around 12:30pm in the afternoon. A group of four local boys, maybe in their 20s, started following me. They passed comments like ‘you are my angel’ and one of them grabbed my arm and said ‘oh your skin is so beautiful’. I really did not understand what they wanted and I was really scared because they kept following me,” Clarice explained.

“Because they were following me I went back to the office, instead of going home. I live alone so I was did not want them to find out where I live,” she added.

Clarice decided not to inform police because it was mostly verbal abuse, she said.

Unsafe at home

Meanwhile, several other women interviewed exclaimed that the “threats have extended from streets to homes”.

Katie*, a 34-year old American who has worked in Male’ for almost a year, said she thought she had figured out the Maldives, its culture and its people. Respecting the Muslim background, she said she was sensitive to societal rules, dressed modestly and until recently, thought of Maldives as a safe place.

What changed her impression was a horrific incident last month which a local man sexually assaulted her while she she was unlocking the door of her apartment.

“It was early morning around 4:00am. I was unlocking the door to my house when I felt someone grab my neck from behind. At first I thought it was my friends who had left just seconds ago. But the grip was very firm so I turned around and saw a man wearing white shirt and pants. I screamed at the top of my voice,” Katie recalled.

“He grabbed my breasts, ripped the t-shirt I was wearing. I tried to hit him with my hands, screamed and tried to escape. At that time the door was unlocked and he had pushed me inside. I managed to hit his groin with my feet. That’s when he let go of me and ran out. I tried to follow him but he fled on a motorbike too quickly,” she said. “I was so distraught, I could not even call the police.”

Neighbors who heard her screams called the police. Around five to six officers arrived on the scene with a forensic team.

Disappointed with police

However, according to Katie, the police did not take her statement until three weeks later and then got the details of the attack completely wrong.

“The police had stated my necklace was stolen. It broke off during the attack, I still have it. The attacker must have known the necklace I was wearing was not gold because it was made of multi-colored beads,” Katie pointed out.

She added that she had later found out from CCTV camera owners nearby her house that the police had not requested the footage or interviewed neighbors for clues. Frustrated over the lack of police assistance, she called the US embassy. “I don’t think they would have even taken the statement if the American Embassy had not called them,” Katie claimed.

Lucy, a 36 Irish woman, also talked to Minivan New about an attack, and a disappointing experience with the police, following a robbery and sexual assault she encountered last year.

She was attacked while walking up the flat’s staircase with two other female friends around midnight.

“The apartment was on the sixth floor and I was walking upstairs to my friends apartment. They were couple of steps ahead of me and I was walking up when, suddenly, a man came behind me and grabbed my breasts and tried to pull my clothes,” Lucy recollected.

“I go to the gym and I lift weights. But I couldn’t get him off. He was quite a large and it seemed he was under the influence of something. I hit him with my bag several times. He did not attempt to grab it and run. I think his intention was to pull off my clothes. By then my friends had heard the screams and came running downstairs. That’s when he released me and ran off,” she added.

Lucy however noted that the attack had not affected her as much as when she was robbed just weeks before the attack, and found the robbery to be the “worst ordeal”.

“My laptops and phone was stolen from my apartment. That was the worst ordeal because somebody broke into my room while I was sleeping,” she observed.

Thanks to her strong personality, Lucy said she managed to get over both attacks and visit Maldives again this year. However, she echoed others’ grievances over the lack of support from police.

“When police came to the flat the only response I got from them was ‘this never happens’. They did not take my statement or follow up on me. I don’t think the case was investigated,” she claimed.

Lisa, who earlier spoke to Minivan News, also complained over the lack of police professionalism after she reported the harassment on the street and added that it seemed “police did not the case seriously”.

Police Spokesperson Sub-inspector Hassan Haneef responded that police investigate all the complaints and officers who investigate foreigners cases are skilled and capable in communicating in English: “But we do face difficulties in communicating with Bangladeshi expatriates,” he said.

He noted that it was difficult to state whether harassment of foreign women was on the rise, but confirmed that such cases had been reported.

Haneef also urged women to report such attacks, assuring that complete investigations would be conducted.

Lisa, Clarice, Katie and Lucy say they are awaiting justice and for a day they can walk the streets without being teased, touched or assaulted. A day when they don’t have to be extra cautious on streets, scan around for possible stalkers or triple check their locks.

In the meantime all they ask from the local community is “not to assume we provoked the attacks and step in to help a woman being harassed”.

*Names changed

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New transport minister calls for redevelopment of airport runway

Minister of Transport and Communication, Dr Ahmed Shamheed, has criticised GMR’s plan to develop Ibrahim Nasir International Airport (INIA), arguing that it does not provide needed redevelopment of the runway.

Shamheed said there had been a temporary closure of the airport last week as a large crack on the runway was repaired.

“The development of the runway is not part of the agreement made with GMR. And the way the airport development plan is going, there is no possibility of constructing a new runway. A beautiful design can be made, but we have to consider its sustainability,” the Minister told Sun Online.

When asked to comment, Shamheed told Minivan News that he could not say anything more specific on his department’s next move regarding the repair issues.

“But we are conducting a study into the matter. Once we establish all the facts, we will brief,” said Shamheed.

“We are trying to find out how they are going to address the issue with the runway. There is no quick fix,” he claimed.

At over US$400 million the project is the largest single foreign investment ever made in the Maldives. The plan involves an upgrade the current terminal before the construction of a new terminal on the opposite side of the island of Hulhule, which the developer has pledged to complete in 2014. Ground was broken on the site for the new terminal in December last year.

The new transport minister alleged the runway was in poor condition and in need of critical repairs. An incident in 2010 saw experts from Boeing brought in to advise on such repairs after one of its aircraft sustained damage as a result of water retention on the runway.

Managing Director of the Maldives Airports Company Limited (MACL) Mohamed Ibrahim, previously responsible for the maintenance of the site, two years ago claimed that the runway had to be re-tarred every 15 years, having last been repaired in the early 1990s.

“Devious Indians”

The political opposition under Nasheed’s government, particularly the Dhivehi Qaumee Party (DQP), were persistently critical of the airport development,  with allegations ranging from corruption in the bidding process to claims that the deal would allow the airport to refuel Israeli bombers enroute to bombing Arab countries.

Then leader of the People’s Alliance (PA) and brother of former President Gayoom, Abdulla Yameen, previously described the deal as “economic enslavement.”

Similarly, the Dhivehi Quamee Party (DQP) released a booklet in Dhivehi in December 2011 titled “Giving the airport to GMR: The beginning of slavery”, warning against “devious Indians”.

In the 24 page document (download in English/Dhivehi) the DQP claimed that the agreement did not include any requirement to develop a runway and would allow the GMR group to “colonise” large portions of the economy.

“Indian people are especially devious people”, the DQP booklet claimed. “There is no guarantee at all that GMR will invest the proposed amount. There is nothing the government can do but accept what they say and the documents they provide. This is how all the companies in partnership with the government are run.”

An unattributed letter on the party’s website published at the same time as the pamphlet claimed that the Indian government, in its backing GMR’s investment, “has a choice to make.”

“Does it want its backyard to be peaceful, prosperous, and free from corruption, nationalism, and religious problems? Does it want its backyard to be a place where wealthy Indians can spend their holiday and where its investors are respected and welcomed and not hated? Or does it want to be seen as a backer and sponsor of a corrupt and despotic regime, divorced from public sentiments, as was the case of the United States in the Middle East?”

Spokesperson for former President Nasheed, Mohamed Zuhair, claimed at the time of the contract signing in 2010 that the deal with GMR to upgrade and manage the airport had clashed with the vested interests of several tycoons, including Yameen and Gasim, drawing it into the political arena.

“Gasim was concerned the new airport might take the charter flights he had intended would be landing at the new airport he is building in Maamagilli,” Zuhair alleged at the time, “while Yameen is a third party supplier of fuel at Male International Airport through the Maldives National Oil Company, which has representation in Singapore.”

“These MPs are two individuals of high net worth – tycoons with vested interests,” he explained. “In pursuing their business interests they became enormously rich during the previous regime, and now they are trying to use their ill-gotten gains to bribe members in the Majlis and judiciary to keep themselves in power and above the fray.”

“Politically neutral”

The airport’s CEO Andrew Harrison in 2011 stated in an interview with Minivan News that he was “extremely confident of standing up to any scrutiny because of the way the bid was scrutinised by the World Bank’s International Finance Corporation (IFC)”.

Harrison today declined to comment on Shamheed’s recent statement. In a previous interview, he maintained that GMR had “always been politically neutral in that our remit is solely about developing and operating the airport.”

“We respect whichever party holds the seat of government in the Maldives. The government change is a change we respect and we remain politically neutral. We’ve got a concession agreement and we are sure that any government in power will respect that agreement. We’ve not heard anything that would make us believe otherwise,” Harrison told Minivan News at a press conference in February.

The criticism culminated in a successful court case filed by the DQP against GMR’s levying of an airport development charge (ADC), a source of revenue for the company outlined in the original contract. The court decision left the Nasheed government with the obligation to pay the difference.

Several days after assuming the presidency, Dr Waheed vowed the government would not approach the deal “from a political perspective”, adding, “It is not our intention to harm GMR. Our objective will be to resolve concerns of the public [regarding the company].”

Foreign investors should not be concerned about the political upheaval affecting their interests in the Maldives, said Dr Waheed, but hinted that some investments may come under scrutiny.

“We will not target anybody for political reasons,” he said. “If there are any reasons for concern over investment, of course any steps that need to be taken will be taken.”

Since the recent transition of presidential power, many of the former government’s policies have come under scrutiny. The Ministry of Economic Development announced that all future Public Private Partnership (PPP) schemes would be put on hold, adding to fears that the political turmoil currently engulfing the country would be detrimental to foreign investment.

Former Climate Change Advisor to Nasheed Mark Lynas recently expressed his concern over this issue: “Donors will turn away because of the political instability, and investors likewise.”

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Deputy Speaker Nazim’s lawyer appointed to JSC

President Mohamed Waheed Hassan Manik has appointed Deputy Speaker Ahmed Nazim’s lawyer Mohamed Saleem (G. Raynis, Malé) to the Judicial Services Commission (JSC) on Monday.

The JSC is the watchdog body entrusted with the power to appoint, promote and transfer judges, and to investigate complaints against the judiciary.

Ousted President Mohamed Nasheed’s former JSC appointee, Aishath Velezinee, said Saleem’s appointment constituted a “conflict of interest,” as he was a practicing lawyer defending high profile politicians.

Saleem had defended Nazim against charges of defrauding the now defunct Ministry of Atolls Development. The Criminal Court dismissed all four counts of fraud against Nazim in February shortly after Nasheed resigned “under duress” on February 7.

Saleem has denied conflict of interest allegations, saying he would no longer continue to practice as a lawyer, except to complete ongoing cases that do not involve any conflict of interest.

Saleem had previously served for eight years in the Police Courts, and seventeen years in the Attorney General’s Office (AGO) under former President Gayoom. He started off in the AGO as an assistant state attorney. When he resigned in 2008, he was the head of prosecution at the AGO.

He also served as North Huvadhoo atoll MP in the constitutional assembly from 2004- 2008.

Saleem is also prominent businessmen and Jumhooree Party (JP) Kaashidhoo MP Candidate Abdulla Jabir’s brother-in-law.

“It is public knowledge that Gasim (JP leader) and Jabir win by their pockets and what we are seeing is the judiciary going to the pockets of a few influential businessmen and politicians. We lost the independent judiciary to high treason of the JSC in 2010, and this move by Dr Waheed guarantees nothing but further degradation of the judiciary,” Velezinee told Minivan News.

Saleem refuted Velezinee’s allegations saying, “Even when I worked in the government, I was not one to favor friends or family members. I am certain I can be of honest service”.

Velezinee has alleged the JSC was complicit in protecting judges appointed during Gayoom’s regime, and was colluding with parliament to ensure legal impunity for senior then-opposition supporters.

In addition to Saleem, the JSC now consists of Speaker and Dhivehi Rayyithunge Party (DRP) MP Abdulla Shahid, Jumhooree Party leader and Gayoom’s Finance Minister Gasim Ibrahim, Gayoom’s ex-lawyer and current Attorney General Azima Shukoor, Civil Service Commission President Mohamed Fahmy Hassan, Supreme Court Judge Abdulla Mohamed, High Court Judge Abdulla Hameed, Civil Court Judge Abdulla Didi, Lawyer Ahmed Rasheed, and public member Shuaib Abdulrahman.

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