Tag: maldives

Government to proceed with second phase of Hulhumale’ reclamation, despite budget crisis

The Maldives government has signed an agreement to move ahead with the second phase of reclamation work on the island of Hulhumale’, despite claiming last week that the project could face continued delays due to limited financing.

The development of Hulhumale’ near Male as a residential area was originally intended to reduce congestion in Male – one of the most crowded cities in the world, with an estimated 55,000-60,000 people per square kilometre.

The state’s renewed commitment to the Hulhumale’ reclamation work came as the government last week revealed it was in discussion with Saudi Arabia over security a US$300 million credit facility.

Despite the state’s financial concerns, President’s Office Media Secretary Masood Imad said the agreement would see work commence on a second phase of land reclamation in Hulhumale’ “as soon as possible”.

On Tuesday (July 16), President Waheed told local media the reclamation work that had already been delayed in order to “clear the financial aspects of the project” would soon commence without much further delay.

“By the will of God, the project can commence in the near future after everything gets finalised,” Waheed was quoted as saying by newspaper Haveeru.

Local media reported that the Housing Development Corporation (HDC) project to reclaim 230 hectares of land suitable for residential use was estimated to cost US$60 million.

In January this year, six foreign parties reportedly expressed interest in the second phase of developing Hulhumale’, which is anticipated to be the largest project of its kind in the Maldives.

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Tourist facilities to be developed on local picnic island Kuda Bandos

Additional reporting by Neil Merrett

Tourist facilities are to be developed on Kuda Bandos, the only picnic island located near Male’ accessible to for Maldivians, following the island’s owner Vice President Mohamed Waheed Deen submitting the sole bid for its development.

Vice President Waheed Deen, also the owner of Bandos Island Resort, previously leased Kuda Bandos for US$6000 annually. However, the after the island was opened for bids on November 16, 2012  Deen submitted the sole proposal and won Kuda Bandos again for a rent of US $180,582, according to local media.

A joint venture company will be established with the Government of Maldives to develop the island, including “certain tourist facilities”, Minister of Tourism, Arts and Culture Ahmed Adheeb told local media.

The new facilities will “modernise the island” and increase government revenue, according to Adheeb.

“We don’t want to renew the agreement every two years. Now it is to be handed over through the Tourism Act and the rent will be paid just the same as the resorts,” said Adheeb.

Currently Maldivians have exclusive access to Kuda Bandos, which is located next to Bandos Island Resort, on Fridays, Saturdays and public holidays, when local families are able to travel to the picnic island for a day of relaxation on the beach.

Adheeb claimed that even after Kuda Bandos is developed Maldivians will have full, unrestricted access to the picnic island.

“After development, safari boats can go there with tourists. It will be developed so that everyone will have the opportunity,” said Adheeb. “The tourist facilities will be established to make it easier for the tourists who visit.”

Maldivian picnic island access

Despite Adheeb’s claims that Maldivians will have “unrestricted access” to Kuda Bandos, the former Secretary General of the Maldives Association of Tourism Industry (MATI), ‘Sim’ Mohamed Ibrahim, believes that developing the picnic island for foreign tourists will still limit locals’ ability to enjoy the island.

“There are less places for Maldivians to go. The problem would be solved if Mr Deen created a small island in front of Kuda Bandos [for locals]. It’s not ideal but it should serve the purpose,” Ibrahim told Minivan News today (July 18).

Whether Maldivians will have unfettered access to the sole remaining picnic island near Male’ once it is developed remains to be seen, Ibrahim does not think Maldivians enjoying the island together with tourists should be an issue.

Specifically, safari boats coming to Kuda Bandos with alcohol or foreigners sunbathing in bikinis “is a grey area”, according to Ibrahim.

“It is up to a person to decide what he wants to do or not, I don’t understand why this would be a problem,” he said.

“The question of [drinking] alcohol is not a problem, the issue doesn’t arise, because Maldivians as Muslims don’t drink,” he continued.

“[And] why would there be a problem with foreigners sunbathing in bikinis, if a lot of Maldivians are working on and visiting resorts [every] day?” he asked.

“It happens on Bandos [Island Resort] or any other resort for that matter,” he added. “As it is there is nothing to prevent Maldivians from going to resorts or accessing their facilities.”

Picnic island development

A new tourism regulation entitled the “Procedure to Follow Where the Government Undertakes Joint Venture Investment in Islands or Land”, allows a company with at least a 10 percent share held by the state to develop a resort from land set aside for tourism use, such as a picnic island like Kuda Bandos.

Land used for water sports or diving would also be included once the lease for the area is acquired by a joint venture company.

Published in the Government Gazette Volume 42, number 17 – dated January 28, 2013 – the regulation requires any joint venture partner working with the state on a tourism projects to have a minimum financial worth of US$300 million and make a minimum initial capital investment of at least US$100 million.

Tourism Minister Adheeb told Minivan News in April that the regulations applied to land such picnic islands that were effectively being used “almost as a resort”, such as areas licensed to serve alcohol to tourists, something not allowed on islands designated as “inhabited”.

“The only difference [to these islands] is that tourists cannot sleep there for the night,” he said. “Now they can stay there the night, but [operators] have to pay land rent. It is to stop the concept from being abused.”

However, an island owner involved in the country’s burgeoning mid-market holiday sector has slammed new regulations imposing financial restrictions on tourism joint venture projects with the government, claiming the legislation outright excludes small and medium-scale investors.

These recently implemented amendments to the Tourism Act served to “shut the door” on small and medium-sized investors, alleged the island owner, speaking to Minivan News on condition of anonymity.

“The real issue here would be that only those with very high net worth can be venture partners with government. Very, very few tycoons are in that wealth bracket,” the source said.

“[Former President] Nasheed’s government tried to be inclusive in offering business opportunities. This regulation is exclusive and shuts the door for medium to small-size investors to partner with the government,” the source added.

Meanwhile, the Ministry of Tourism, Arts and Culture has announced a public tender to lease several other islands across the country for development as resort properties.

Through the tender, applicants will bid for a 50 year lease to develop one of several islands including, Kunnamala in Noonu Atoll, Kudafushi and Fasmendhoo in Raa Atoll, Vanabadhi and Kani in Thaa Atoll, Dhigudhoo in Gaafu Alifu, and Ismehela Hera in Seenu Atoll.

Additionally, seven parties have expressed interest to develop tourist resorts on the islands of Madifushi in Meemu Atoll, Keradhdhoo in Gaafu Alifu Atoll, and Ismehela Hera in Seenu Atoll.

While Ismehela Hera was also included as one of the three islands the Tourism Ministry invited bids for in April, the ministry did not clarify why the island was listed twice, according to local media.

Bidding documents will be made available to Maldivian nationals for a non-refundable payment of MVR 2000 (US$130) or US$300 for foreign nationals, until July 28.

All bids must then be submitted before 1:00pm on August 1, 2013 to the ministry, where they will be opened at a ceremony held later the same day.

Former MATI Secretary General Ibrahim said the process for tenders was “pretty much standard” for obtaining an island lease.

“The investment climate is better than a year ago and source markets are improving,” said Ibrahim.

Tourism Minister Ahmed Adheeb was not responding to calls at time of press.

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President obtains 1,500 signatures for independent candidacy, coalition claims “things going to plan”

President Dr Mohamed Waheed has obtained the 1,500 signatures required to register himself as an independent candidate in the upcoming election, his ‘forward with the nation’ coalition has said.

Amidst the possibility of his Gaumee Ithihaad Party (GIP) facing dissolution for not having the 10,000 members required to officially register a political entity in the Maldives, President Waheed this week announced his intention to stand for election as an independent candidate.

The incumbent will stand as an independent alongside his running mate, MP Ahmed Thasmeen Ali – leader of the government aligned Dhivehi Rayithunge Party (DRP).

Candidates unaffiliated with a political party are required to submit signatures of at least 1,500 supporters with their official application to stand in the upcoming presidential election, according to local media.

In order to meet this total, President Waheed held a signing ceremony at the presidential residence of Hilaaleege in Male’ on Wednesday (July 17) evening.

Minivan News observed an estimated 200 people present at the ceremony by around 10:00pm, where the president’s family members and news reporters were seen mingling with supporters.  The signing event concluded at midnight.

In a statement released Thursday ( July 18 ), the ‘Forward with the nation coalition’ claimed it had seen an “overwhelming response” from the public to sign the petition backing President Waheed’s candidacy, with over 500 people attending the ceremony during the course of Wednesday evening.

“While we have already exceeded the legal minimum we will continue to sign up supporters in the coming days,” the statement said.

Minivan News understands that President Waheed also conducted a door to door campaign to obtain signatures for his candidacy, with the coalition anticipating similar event will continue into next week.  An exact number of signatories was not received at time of press.

President’s Waheed’s coalition until last week consisted of several government-aligned parties; including the religious conservative Adhaalath Party (AP), the Dhivehi Qaumee Party (DQP), the DRP and his own GIP.

However, the DQP yesterday announced it would be following the AP in leaving the president’s coalition to back the campaign of resort tycoon and Jumhoree Party (JP) MP Gasim Ibrahim instead.

DRP Parliamentary Group Leader MP Dr Abdulla Mausoom has said the defection of both the AP and the DQP from the ‘Forward with the nation coalition’ “did not change the game at all” in terms of its strategy to secure the election during a second round of voting.

A second round will be held between the top two candidates during polls scheduled for September 7 should either fail to secure at least 51 percent of the vote.

“We know that the 2013 election will require a second round of voting and that all candidates wish to be in the grand final. We are optimistic that we will be in this final,” he said.

Mausoom has previously claimed that the DRP – both as an individual party, and later as members of President Waheed’s coalition – remained the main alternative viewpoint for voters disenfranchised by the “polarised views” of the opposition Maldivian Democratic Party (MDP) or the government-aligned Progressive Party of Maldives (PPM).

Dr Mausoom added that even with the defection of the Adhaalath and the DQP, President Waheed still presented a coalition of people rather than individual parties, with more “political figures” expected to come out and back him before voting commences later this year.

He therefore said the coalition was confident it would still appeal to voters as alternative to MDP candidate former President Mohamed Nashhed and the PPM, led by former autocratic President Maumoon Abdul Gayoom.

The MDP and PPM presently represent the country’s two largest parties in terms of parliamentary representation.

While anticipating “moments” in the run up to the presidential election where political figures – either out of financial or ideological reasons – would switch to rival candidates and parties, Mausoom said it would ultimately be the general public who decided on the next president. He argued that Dr Waheed’s record as president following last year’s controversial transfer of power would therefore be recognised by voters during polling.

“President Waheed has done a wonderful job of keeping the government together and shown what a great leader he is,” Dr Mausoom said. “Things are going to plan and we are confident during the second round [of voting] that the people will opt for [the coalition].”

However, the opposition Maldivian Democratic Party (MDP) today rejected claims that the ‘Forward with the nation’ coalition would receive sufficient support to see President Waheed elected to office.

MDP MP and Spokesperson claimed that the majority of voters would opt to reject President Waheed as a candidate owing to the controversial transfer of power that brought him to power and the conduct of his coalition government since.  The MDP has continued to allege that former President Nasheed’s government was ended prematurely by a “coup d’eat” on February 7, 2012 following a mutiny by sections of the police and military.

“The bottom line is people will vote overwhelmingly against the coup. It is regrettable [President Waheed] is still hanging on,” he said. “Pretender Waheed has already cost the state upwards of a billion US dollars since the coup.”

Meanwhile, the PPM announced this week that no formal decision had yet been taken on whether to retract its support for the coalition government, despite growing “complaints” from its members over the conduct of President Waheed.

MP Ahmed Nihan today told Minivan News that both the PPM’s senior leadership and ordinary members held significant “concerns” over the conduct of President Waheed in the build up to this year’s presidential election, with the party accusing the incumbent and his supporters of unfair campaigning.

The PPM is the largest party in terms of MP numbers presently serving within the coalition government backing President Waheed.

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DQP, Dr Hassan Saeed quit President Waheed’s coalition: “too much family, expatriate influence”

The government-aligned Dhivehi Qaumee Party (DQP) has announced that it has left President Dr Mohamed Waheed Hassan’s ‘forward with the nation’ coalition, ending its support for his 2013 election bid.

The decision came shortly after the religious conservative Adhaalath Party left the coalition and joined resort tycoon Gasim Ibrahim’s Jumhoree Party (JP).

Local media is speculating that DQP Leader Dr Hassan Saeed – President Waheed’s Special Advisor since the controversial February 7 transfer of power – is likely to be announced as Gasim’s running mate.

In a statement released by the DQP on Thursday, the party said its council had unanimously agreed to leave the coalition, and accused President Waheed of being incapable of protecting the interests of his coalition partners.

Instead, the party alleged, Waheed was turning to “family influence” in making key decisions.

“The president dissolved the steering committee established with coalition partners to resolve issues within the coalition and resorted to taking decisions within his palace,” read the DQP statement.

Among other concerns, the party claimed that no key roles were given to coalition partners in the presidential campaign, which were instead outsourced to the president’s “family members and expatriates”.

The DQP alleged that some coalition partners had also breached their initial agreement to work together and were secretly attempting to induce members of other coalition partners to join their party.

The DQP, which has a membership of less than 1800 people, also claimed that president Waheed gave more priority to those who financially backed him over those who supported him with “sincerity and genuineness”.

“Therefore, despite repeated efforts, President Waheed’s failure to resolve these issues” forced the party to leave the coalition, DQP said.

Responding to the statement, a source in Waheed’s coalition told Minivan News that the DQP’s decision to leave the ‘Forward with the nation’ coalition was unexpected, when compared to the departure of the Adhaalath Party last week.

The source said DQP Leader Dr Hassan Saeed was himself in attendance during an official signing event held yesterday by Waheed, who was seeking 1,500 signatures needed to apply for candidacy as an independent. Saeed had been booked to attend another campaign visit over the coming days, the source said.

Despite the defection, the source claimed President Waheed’s campaigning would not be impacted by sudden defection of the DQP in any way.

“The [DQP] is a very small party of around 2000 members so we are not expecting much of an impact,” the source said.

With the departure of both the DQP and the Adhaalath party, President Waheed’s coalition now consists of his own Gaumee Ithihaad Party (GIP) and the Dhivehi Rayyithunge Party (DRP).

DRP leader Ahmed Thasmeen Ali was earlier been unveiled as Waheed’s running mate, although whether the pair will contest on the same independent ticket remains uncertain.

“There are people trying to bar me from competing. I will not be the one to get caught in that trap,” Waheed said earlier this week.

“So I intend to take the form and go on the streets. I will visit houses, carrying the form, during the next two days and ask those who wish to see me remain in this post for another term to sign.”

Dr Hassan Saeed has meanwhile resigned from his position as Waheed’s special advisor, shortly after the DQP announced its decision to side with Gasim Ibrahim.

Saeed was promptly replaced by former Attorney General Aishath Bisham.

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Maldives to ban import of goods containing ozone depleting substances

The Maldives will ban the import of goods containing ozone depleting substances, including environmentally harmful hydrochlorofluorocarbons (HCFC), reports local media.

Environment Minister Mariyam Shakeela signed a memorandum of understanding with the Maldives Customs Service Commissioner General Mohamed Aswan today (July 18) to facilitate the implementation of the “Montreal Protocol on Substances that Deplete the Ozone Layer”.

Shakeela noted that imports of air conditioning, freezers, minibars and water coolers containing HCFC would soon be banned.

“We are now getting ready for that. But such moves aren’t possible without the assistance of institutions such as customs,” she said.

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Former Attorney General Aishath Bisam appointed as Special Advisor to the President

Former Attorney General Aishath Bisam was appointed as Special Advisor to the President by President Mohamed Waheed Hassan Manik  (July 18), reports local media.

Bisam is filling the Special Advisor post formerly held by Dr Hassan Saeed, who announced he would resign from the position after deciding to become running mate of Jumhoree Party (JP) Presidential Candidate and resort tycoon Gasim Ibrahim.

Waheed’s earlier appointment of Bisam as Attorney General and Azima Shukoor as Gender Minister were recently narrowly rejected by parliament, which is required to give a majority vote of confidence in each minister appointed to the executive.

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JSC votes not to suspend Supreme Court Judge in sex video, due to “lack of evidence”

Judicial Service Commission (JSC) has decided not to suspend Supreme Court Justice Ali Hameed, who is currently under both police and JSC investigation following the circulation of a sex video apparently depicting the judge fornicating with an unidentified foreign woman.

Four members of the JSC voted in support of a motion on Wednesday to not suspend the Supreme Court Justice, over due to “lack of evidence”.

The decision disregarded the recommendation of the JSC’s own five member committee investigating the judge’s conduct in multiple leaked videos.

The four members who supported the motion to not suspend the judge included parliament representative, resort tycoon and presidential candidate MP Gasim Ibrahim, Attorney General Aishath Azima Shukoor, President Waheed’s representative Latheefa Gasim, and Chair of the Civil Service Commission, Mohamed Fahmy Hassan, who was recently dismissed by parliament in no-confidence motion over allegations of sexual harassment, but later reinstated by the Supreme Court.

JSC members Shuaib Abdul Rahmaan, Ahmed Rasheed and Abdulla Hameed did not support the motion.

Following the decision, JSC Deputy Chairman Abdulla Mohamed Didi and Latheefa Gasim resigned from the five-member committee investigating the matter.

The video of the Supreme Court Justice allegedly indulging in adultery came into media limelight following the arrest of Ahmed Faiz – a senior Council Member of President Mohamed Waheed Hassan’s Gaumee Ihthihaad Party (GIP) and former Project Advisor at the Housing Ministry.

Snapshots taken from the video began circulating on social media networks Twitter and Facebook, prompting a police investigation. The police formally notified all relevant authorities including the JSC, the Prosecutor General and President Waheed regarding their investigation into the case.

The JSC is also investigating a further two videos involving the Supreme Court Judge, including spy cam videos of Hameed discussing political corruption of the judiciary with a local businessman, and a meeting with former Immigration Controller Ilyas Hussain Ibrahim.

A question of “details”

Gasim Ibrahim had previously defended Justice Hameed during a campaign rally, claiming that the alleged sex-tape was a “fake”. He was criticised by former Attorney General Husnu Suood for breaching the JSC’s code of conduct.

Attorney General Shukoor defended the commission’s decision claiming that the five member sub-committee needed more details on the case in order to suspend the judge, claiming the decision not to suspend Hameed was to give the committee time to come up with these details.

“The motion was passed when called for a vote. Therefore it must be noted that there was no motion calling to take action against the Supreme Court Justice during the meeting,” read the statement by Shukoor, defending the decision.

Discrimination between judges

JSC member Shuaib Abdul Rahmaan told Minivan News the commission’s enforcement of disciplinary action towards higher and lower court judges lacked consistency, despite all judges sharing the same code of conduct.

“Criminal Court Judge Abdul Baari Yoosuf was previously suspended and asked not to report for work [during a JSC investigation into his alleged sexual assault of a female lawyer].

“However, in the case of Supreme Court Justice Ali Hameed, despite there being much stronger evidence, the commission members are reluctant to take action. Last time, even Azima Shukoor and Gasim Ibrahim voted in favour of suspending Baari,” Shuaib said.

He dismissed Shukoor’s statement stating that a motion to suspend the judge would be re-tabled.

“No, there was no decision reached at the meeting to re-agenda the matter,” he said.

Asked about the specific details the commission was seeking from the sub-committee, Shuaib said that these carried no weight and would not change the course of the investigation.

According to local media reports, the decision led to a falling out between members of the JSC including its Vice Chair Abdulla Didi – who chaired the meeting due to the absence of the commission’s chair Supreme Court Justice Adam Mohamed.

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Former President Nasheed submits candidacy for 2013 Presidential Elections

Former President Nasheed has filed his candidacy papers with the Elections Commission to contest September’s Presidential election.

“As mandated by the Election Commission, President Nasheed sought and received clearance from the country’s judicial courts and other state institutions prior to submitting his candidature as the Maldivian Democratic Party’s Presidential candidate,” said the MDP in a statement.

A large group of MDP supporters and party leaders accompanied the former President to the commission to submit the papers.

Nasheed and the MDP maintain the former president was compelled to resign during a police and military mutiny on February 7, 2012. His successor and former vice-president, Dr Mohamed Waheed, maintain the succession was legitimate.

“Today we submitted the election forms and begin the task of restoring democracy to our country. It has been a slippery slope but we have come a long way. Despite all the barriers and hurdles that were put in our way, we never gave up. Undoubtedly because of the resilience of the people of the Maldives, we are confident of winning this election in the first round with a handsome majority,” Nasheed declared.

Following February 7’s controversial transfer of power, the former President was charged over his detention of Chief Criminal Court Judge Abdulla Mohamed, after parliament and the Judicial Services Commission (JSC) failed to taken action over its extensive list of allegation against the judge.

Nasheed and the MDP dismissed the charges as a politically-motivated attempt to convict and obstruct Nasheed from contesting the presidential elections, pointing to the presence of political opponents on the JSC, including a rival presidential candidate, which had created both the court hearing the charges and appointed the panel of judges hearing the case.

The international community reacted with calls for the presidential election to be “free, fair and inclusive”, and concerns over the state of the judiciary were echoed in a special report by UN Special Rapporteur Gabriela Knaul.

The Nasheed trial subsequently stalled at the high court level, after Chief Judge of the High Court Ahmed Shareef issued an injunction. A day later the JSC suspended Shareef for what it claimed was an unrelated matter. He is currently contesting his suspension in court.

In his statement today, Nasheed stated that he had “received clearance from the courts and other state institutions” prior to submitting his candidature to the Elections Commission.

The Elections Commission has said it will formally announce accepted candidates 48 hours after receiving submissions.

At a press conference in Male, Nasheed thanked his supporters for ensuring he would be allowed to contest the election, and expressed gratitude to both his legal team and international actors. He also thanked reporters for their coverage of the MDP’s activities since the transfer of power in February 2012.

During the press conference Nasheed noted the current rapid political realignments taking place, such as the defection of the Adhaalath Party from President Waheed’s coalition to Gasim Ibrahim’s Jumhoree Party and Waheed’s decision to run as an independent candidate.

Following Nasheed’s press conference Waheed’s remaining coalition partner, the Dhivehi Qaumee Party (DQP), followed suit.

Also observing that several senior members of the Progressive Party of the Maldives (PPM) had left the party, Nasheed invited the defectors to join the MDP.

Asked by reporters as to whether he was concerned about election rigging, Nasheed did not discount the possibility but said he believed that “the election will be free and fair after the voter list is properly finalised and observers, monitors and agents are able to participate.”

“When the tide has turned it becomes very difficult for anyone to swim against it,” Nasheed said.

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President seeking US$300 million credit facility from Saudi Arabia for “budget support”

The government has confirmed it is in discussion with Saudi Arabia, seeking a long-term, low interest credit facility of US$300 million to help overcome “fiscal problems”.

President’s Office Spokesperson Masood Imad confirmed President Waheed had held discussions with senior Saudi Arabian dignitaries including Crown Prince Salman bin Abdulaziz Al Saud over the proposed credit facility, during his recent visit to the country.

“The president has initiated the talks so it is just a matter of working out the details now,” Masood said, explaining that the funds would be used for “budget support” and development projects.

The opposition Maldivian Democratic Party (MDP) has meanwhile said the government would still be required to secure parliamentary approval for the funding.

MDP MP and Spokesperson Hamid Abdul Ghafoor said that the heavily partisan parliament now effectively controlled state finances as a result of former opposition politicians – now part of President Waheed’s government – imposing tighter spending restrictions on former President Mohamed Nasheed’s administration.

Ghafoor argued that with the MDP failing to recognise the legitimacy of the present government due to the controversial transfer of power last February, he did not believe there would be support for approving the credit agreement with Saudi Arabia due to the government’s existing extravagant borrowing levels.

The party accused the current government of reckless financial management, pointing to a potential US$1.4 billion compensation bill facing the state for deciding last year to abruptly terminate a US$511 million airport development contract agreed with infrastructure group GMR.

The compensation claim amounts to four times that of the Maldives’ current state reserves should it be awarded by a Singapore court overhearing arbitration hearings between GMR and the government.

“Since we do net see this government as legitimate, we do not see why we should support them,” he said. “They have put us into debt with their handling of the airport development and another bill for a border control system.”

Earlier this month, Malaysian security firm Nexbis invoiced the Department of Immigration and Emigration for US$2.8 million (MVR 43 million) for the installation and operation of its border control system technology in the country, in line with a concession agreement signed in 2010.

Immigration Controller Dr Mohamed Ali confirmed at the time that Nexbis had submitted a bill seeking charges for the period its system has been in use, as work continues on replacing the Malaysian company’s border controls with new technology provided by the US government.

Development delays

In April this year, Finance Minister Abdulla Jihad sought authorisation from parliament to divert MVR 650 million (US$42 million) allocated for infrastructure projects in the budget to cover recurrent expenditure.

Jihad warned that government offices and independent institutions might be unable to pay salaries or electricity and phone bills if funds were not transferred from the MVR 1.8 billion (US$117 million) Public Sector Investment Programme (PSIP).

Earlier the same month, Jihad also announced that the government had decided to delay all new development projects that were to be financed out of the state budget due to shortfalls in revenue.

The decision to suspend new projects was revealed after Housing Minister Dr Mohamed Muiz told local media at the time that he had been instructed not to commence any further infrastructure projects included in the 2013 budget, such as harbour construction or land reclamation.

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

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