Comment: Will Maldivians be allowed to choose their leader?

President Nasheed is poised to win the Maldives’ presidential elections on September 7, 2013. It has become increasingly obvious that the only way to prevent Nasheed’s return is to ensure his name stays off the ballot paper.

At the same time, the repeated exposure of the farce of the courts and the dishonesty and idiosyncrasy of the Judicial Service Commission (JSC) by open parliamentary committee sessions since the February 7, 2012 coup d’état, and the mounting evidence against the JSC in many international reports investigating the status of the Maldives’ judiciary and its transition, has made it increasingly difficult to convince the public or the international community that any decision to exclude Nasheed from the elections will be impartial.

With less than four months to the elections it is undeniable to all observers on the ground in the Maldives, including the skeptics, the political opponents and the grudge bearers who form the majority opposition to Nasheed, that he has won the hearts and minds of the Maldivian public. The colour yellow, symbolic of Nasheed’s Maldivian Democratic Party (MDP) undeniably brightens the islands despite the pink in the corridors of power.

Fifteen months since his forced resignation, the public has continued to rally around Nasheed who has come to be popularly known as the “elected president”. All signs today suggest Nasheed will win the upcoming September 7 elections in one round of voting. As the latest campaign slogan of Nasheed’s Maldivian Democratic Party (MDP) promisea, President Nasheed is set to appear a clear winner, in one round; #EhBurun. Nasheed himself predicts 150,000 votes to MDP.

The government parties, despite an outward show of confidence and ‘fighting spirit’, are in silent consensus that there is no formidable challenge to Nasheed from any of their named candidates. Nor is there a possibility of a fight unless the so called ‘unity government’ can agree to back a single candidate to challenge the MDP.

But that is out of the question given that there is no common ideology shared by the seven parties said to be part of the unity government. What the coalition leaders share in common are a desire for presidency, and a need to cover-up the coup they led and backed in an effort to expunge President Nasheed.

The sitting coup-appointed President, Dr Mohamed Waheed Hassan Manik, is today seen a front-runner among the opposition leaders, despite his Qaumee Ihthihaadh Party (GIP) not having the required 10,000 party membership, and his rise to office having little to do with any power or influence he held.

According to the latest published Election Commission records, dated March 10 2013, GIP has a total of 3930 registered members and 1101 forms pending. It is highly unlikely Dr Waheed will be able to double his party membership in the next few months.

Dr Waheed is backed by his Advisor Dr Hassan Saeed, the leader of the Dhivehi Qaumee Party (DQP), whose personal opinion of Dr Waheed is that he is “the most naïve and gullible amongst political leaders” -an opinion he revealed to a group of Maldivian students he entertained while in London to lobby with CMAG following the coup. A leaked audio recording  has Dr Saeed explaining the “unique coup” they pulled, and belittling Dr Waheed: “Honestly, he’s the dumbest of them all.”

Dr Hassan Saeed’s own party has had no say in the decision as the DQP leadership split between Dr Waheed and the majority party in the unity government, Gayoom’s Progressive Party of Maldives (PPM).

Deputy leader of the DQP, Dr Mohamed Jameel Ahmed, has switched to the PPM, adopted as the running mate and Vice President of Yameen Abdul Gayoom.

PPM’s interest, still, is control over the courts as signified by the selection of Dr Jameel, an old Justice Minister of Gayoom and the only one within the unity government who may be able to direct the sitting judges to Gayoom’s needs. Quite likely, DQP members will swing independent of both Dr Hassan Saeed and Dr Jameel.

Joining Dr Waheed is the religion-waving Sheikhs of the Adhaalath Party, whose use of the religion card has failed to win them any seats in parliament or council despite their capacity to rouse frenzied crowds in rallies denouncing “moderate Islam” as blasphemy.

Umar Naseer, who commanded the coup d’état of February 7 2012 according to his own testimony to the Commission of National Inquiry,  has declared support for Dr Waheed after his expulsion from PPM within weeks of losing the presidential primaries.

Umar was expelled as a disciplinary action after he accused Yameen Abdul Gayoom of not only vote rigging in the party primaries but of links with serious organised crime including gangs and the drug trade, during a post-primary rally for his supporters.

If Umar Naseer is to be believed, brother Yameen is quite the Don, and if anyone knows, Umar does, having been a lifetime loyalist of Gayoom until he was discarded. EC records show PPM to have 22,383 registered members and 1671 forms pending.

The Dhivehi Rayyithunge Party (DRP) has bravely stuck to its charter which decrees that the party president is the party’s presidential candidate despite internal discord and the eventual exit of DRP founder and appointed leader-for-life, Maumoon Abdul Gayoom.

What remained of DRP after Gayoom’s exit was left to party president, MP Ahmed Thasmeen Ali, who was Gayoom’s 2008 running mate, his one-time Home Minister, and the presidential candidate of DRP for 2013 per the party charter. The DRP has 21,411 registered members and 1147 forms pending after the split.

The DRP has however conceded defeat, backing out of elections to back Dr Waheed, in a move which may be deemed another silent coup. The party president is the presidential candidate only if the party chooses to contest in elections, and the DRP council has decided it is not in 2013.

Business Tycoon, Entrepreneur, Philanthropist, Educator, MP, the Honorary Dr Gasim Ibrahim’s Jumhooree Party (JP, Republican Party) declared himself a presidential candidate way before calls for early elections and the contested power transfer of February 7 2012, but has not yet found a coalition partner willing to back the JP.

Aside from the politicians, military leaders and police seniors share a common interest with candidates Dr Waheed, Yameen and Gasim to cover up the coup and their crimes. Judges too are neither free of influence, nor independent of politics. Having given into politics once, their interest will be to sit on to the bench they appropriated with a ceremonial oath and no due process, just as the sitting president did when he took office.

Given the current scenario, and the growing conviction that ousted president Mohamed Nasheed will return with a clear majority of the kind he never had in 2008, how far will the “friends of Dr Waheed” and those who backed the coup d’état go to ensure Nasheed’s name stays off the ballot paper? Whose interests would be served by eliminating him?

Aishath Velezinee (@Velezinee on twitter) is an independent democracy activist and writer. She was the Editor of Adduvas Weekly 2005-07 and served on the Maldives’ Judicial Service Commission (2009-11). She claims the Commission she sat on breached constitution in transition; and advocates for redress of Article 285, and a full overhaul of the judiciary as a necessary step for democracy consolidation.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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No staff complaints received following termination of Hilton management agreement: Tourism Ministry

The Ministry of Tourism, Arts and Culture has said it has “not officially” received complaints that staff at the Iru Fushi Resort in Noonu Atoll have faced alleged political harassment after the property’s owners terminated a management agreement with Hilton.

Deputy Tourism Minister Mohamed Maleeh Jamal told Minivan News this week that while the tourism ministry closely monitored working standards and staff treatment across the industry, it had not been informed of any concerns so far resulting from the change in management at the resort on May 1.

Despite the claims, the Tourism Employees Association of Maldives (TEAM) said an official letter had been sent to the Tourism Ministry last week raising concerns over allegations that employees were facing intimidation over their political beliefs from fellow staff and management at the Iru Fushi Resort.

The allegations of harassment were said by the trade union to have intensified since local company Sun Tour and Travels opted to terminate Hilton’s management of the site at the beginning of the month – adding no official response had been received from the Tourism Ministry.

Sun Travel and Tours, which is owned and operated by local businessman and media magnate MP Ahmed Shiyam, announced May 1 that it was terminating Hilton’s agreement to manage the Noonu Atoll-based resort.  No reason has so far been given by the resort owner for the termination despite repeated requests for an interview by Minivan News.

“The cessation of Hilton Worldwide’s management of that resort was unforeseen and due to factors outside its control,” the hotel chain said in an official statement following the termination.

Sources on the resort, speaking to Minivan News on condition of anonymity, have previously accused Sun Tours of allowing MP Shiyam’s Maldives Development Alliance (MDA) to offer jobs at the site exclusively to its supporters, while also threatening and harassing staff with differing political view points.

“When Hilton was here, there was freedom to talk about politics, whatever party you supported,” an employee at the resort claimed earlier this month. “No one was holding campaigns here for parties or anything, but now just talking about politics is a problem. This has happened recently.”

The same staff member at the time accused certain employees of acting as “MDA spies” for MP Shiyam’s political party, leading to fears about job prospects at the site for those with differing political views.

“People are really afraid to talk here now. We know that some people here represent the MDA [party] and we have heard them warn others ‘we have the power now’ – these are words they are using,” the source claimed. “We do not have job security right now.”

The resort is now being run as the Maldives Iru Fushi Resort and Spa.

MP Shiyam had his phone switched off at time of press, while company spokesperson Mohamed Hameed was out of the country when contacted by Minivan News.

Inspection process

Deputy Minister Maleeh said that tourism authorities had not been “officially” made aware of the allegations raised by Iru Fushi staff, adding that from the ministry’s experience, the vast majority of the country’s resort workers and management were all working together to benefit the wider industry.

“If there is an issue, we will go and inspect resorts and make sure staff are being treated in line within the stipulated requirements,” he said.

Maleeh said that various conditions and standards concerning treatment of resort staff were outlined by ministry regulations such as the number of toilets being provided to employees and their living arrangements.  Maleeh added that a large number of operators complied with these practices.

“Some resorts currently even provide a staff pool,” he said.

Maleeh said that while the tourism ministry was able to carry out inspections of resorts where there were reported staff issues, it had not been given any information that wuld require it to carry out such checks at the Iru Fushi resort.

He added that in the case of a management termination, the ministry itself looked to avoid involvement in cases involving two private parties in the country unless there was deemed to be a significant contractual issue.

“Even then, a contract like this is normally governed by international law or arbitration anyway,” Maleeh added.

Hilton has meanwhile said earlier this month that discussions were continuing with Sun Travels over the decision to abruptly terminate its agreement, though no further details were being provided by the company at present.

Despite the decision by Sun Travels to terminate Hilton’s management contract for Iru Fushi, the hotel giant still presently operates the Conrad Maldives Rangali Island resort in the Maldives for a different company.

Attractive destination

Maleeh claimed that the Maldives ultimately still remained a very attractive destination for multinational hotel chains and boutique hospitality groups alike, adding that the ministry had received “no complaints” regarding their treatment in the country.

“The reason that the Maldives is so popular is not only is it a place where contracts are known to be honoured, but it also offers a return on investment that is very strong,” he said.

The deputy minister said that there continued to provide a very favourable investment climate for hospitality companies.

Maleeh said that upon returning from a recent visit to the Arabian Hotel Investment Conference that took place earlier this month in Dubai, there remained a strong interest and appetite for emerging hospitality groups to enter the Maldives tourism industry.

The Maldives already has 100 exclusive island resorts being operated in the country by both local and multinational companies.

However, TEAM Secretary General Mauroof Zakir has told Minivan News he that the trade union remained concerned at the response of tourism authorities in the country to complaints raised by staff following the termination of Hilton’s agreement.

Zakir said that after having submitted an official letter to the tourism ministry earlier this month, no response had yet been received over its concerns.

Just last week, TEAM alleged it had received received information that management had been hiring  local MDA members to replace staff members who resigned since the change in management.

Zakir added that he had also been informed by various members of staff that Sun Travels had since brought in a number of experienced managers from its wider resort operations to ensure the property was being run more smoothly on the back of alleged difficulties following the changeover.

“Things seem to be much more under control at the site now, staff told me,” he said last week.

However, Zakir has continued to maintain that there was concerns that authorities were failing to properly review the nature of the resort termination and its impact on staff as a result of political influence.

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Ferry services temporarily suspended stranding 200

The Maldives Transport and Contracting Company (MTCC) temporarily halted public ferry services last night (May 15) due to bad weather and rough seas, stranding over 200 people, reports local media.

Ferry service to Villingili Island was instead continued via speedboats.

Hulhumale’ ferry service was also temporarily discontinued, with boats instead docking at the airport island Hulhule.

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Dhuvaafaru woman rescued from suicide attempt by police

A woman on Dhuvaafaru Island in Raa Atoll was saved from committing suicide by the police, reports local media.

Police received a report Monday (May 13) night that a 26 year-old woman was attempting to take her own life by swimming away from Dhuvaafaru. At approximately 11pm officers in uniform waded out into the sea to rescue the woman.

According to police, the woman was trying to commit suicide due to “family problems”.

She was put in the care of the island’s Family and Children’s Center following the incident, said police.

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International airports body urges caution over foreign investment in Ibrahim Nasir International Airport

Airports Council International (ACI), the global body representing the world’s airports, has advised its members to exercise caution before making any investment in the Maldives relating to Ibrahim Nasir International Airport (INIA).

In an email obtained by Minivan News dated May 8, ACI alerted its members that the Maldivian government is “in the process of transferring the Male’ airport to a wholly-owned subsidiary of MACL and may explore a sale of equity in this entity to another airport operator.”

“ACI members are advised to conduct due diligence while considering any investment in the Maldives, considering the latest developments, uncertainty of outcome of elections, the legal and financial risks of the current arbitration and the nascent legal framework,” the email states.

The cautionary note emphasises that ACI was “not taking sides with respect to the decisions made by the various parties”, and matter-of-factly outlines the government’s sudden termination of the concession agreement with the GMR-Malaysia Airports (GMR-MAHB) consortium to manage and upgrade Ibrahim Nasir International Airport (INIA).

The government declared the 25 year concession agreement ‘void ab initio’ in November 2012 and gave the foreign investors seven days to hand over the unfinished airport to the government-owned Maldives Airports Company Limited (MACL).

While subsequent arbitration proceedings saw the Singapore Supreme Court endorse the government’s right to expropriate the airport, ACI noted that “this was subject to [the government] offering sufficient compensation pursuant to the concession agreement”.

“However on December 8 MACL/Government of Maldives took over the possession and control of the airport without payment of compensation”, the email stated.

ACI informed its members that the takeover was the subject of arbitration proceedings expected to last 9-12 months, and further noted that as the government had guaranteed bank loans used by the developer, these were also the subject of separate proceedings.

With elections scheduled for September, ACI advised it was possible that “any leadership changes arising out of the elections [could] have a material impact of the future of the Male’ airport and the decision of expropriation.”

MACL and MIAL

On March 14, the government declared in a one-line statement that it was establishing by presidential decree a new 100 percent state-owned company, Male’ International Airport Limited (MIAL).

On March 31, President Dr Mohamed Waheed appointed MIAL’s board of directors, including tourism tycoon and Chairman of Universal Enterprises, Mohamed Umar Manik, as chairman, and Island Aviation Chairman Bandhu Ibrahim Saleem as managing director.

Other directors appointed included Thoriq Ibrahim of G. Noomaraahiya, Ahmed Munavvaru of Gaafu Dhaalu Madaveli Gahaa, Abdulla Yazeed of Dhaftharu, and Ibrahim Iyas of Dhaftharu.

The decision to form MIAL last month led GMR-MAHB’s lender Axis Bank to accuse the government of trying to turn MACL into a shell company, and warning it not to transfer MACL’s assets or function while arbitration was pending.

“Given that Axis Bank’s claim under the direct agreement is against MACL, you will understand that Axis Bank views with the greatest concern any attempt to dissipate the assets of MACL in favour of MIAL or any other third party,” wrote Axis Bank’s CEO Bimal Bhattacharyya in a letter copied to MACL and the Ministry of Finance, dated April 22.

“If MACL ceases to manage and operate Male’ airport, and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell,” writes Bhattacharyya in the letter, obtained by Minivan News.

The letter calls on the government to “confirm or deny” its intentions by April 25, and “undertake not to allow any assignment, transfer or disposition of any of MACL’s rights to manage and or operate Male airport to MIAL or any third party… or allow MIAL or any third party to perform any function of managing or operating Male’ airport which is presently performed by MACL” by April 27.

“Please understand that Axis Bank views any dissipation of MACL’s assets with grave concern, and will take the necessary legal action to prevent such a dissipation”, the bank advised.

MIAL’s appointed CEO Bandhu Saleem confirmed to Minivan News that the government did intend MIAL to manage the airport, but said the process of transferring that responsibility over from MACL had run into “hurdles” relating to its current legal issues.

“The board has been appointed, but I have not yet taken on the role,” he said, noting that the new company was waiting on government clearances and had yet to be officially created.

“Until the arbitration is complete, I think it will be very difficult to start a new company,” he added.

Axis Bank loans and compensation claim

A legal submission detailing the Axis Bank dispute, also obtained by Minivan News, notes MACL’s failure to notify Axis Bank of its intention to terminate the concession agreement within 60 days, as required in the bank’s direct agreement.

An included copy of the November 24, 2010 agreement, in which the Ministry of Finance guarantees the loans to GMR-MAHB, is signed and stamped by both then-MACL Chairman Ibrahim Saleem and Finance Minister Ali Hashim on behalf of the government.

The document shows that Axis Bank is seeking the repayment of US$160 million by the government of Maldives due to MACL’s breaching its obligations under the agreement.

At the same time, the governor of the Maldives’ central banking authority recently warned parliament that the Maldives’ gross state reserves had fallen to little more than US$300 million, after the government was compelled to repay a series of US$50 million loans the State Bank of India declined to roll over at the start of 2013.

Repayment of the Axis Bank loan could place the Maldives in a position where it has less than a month of imports in reserve – a potential crisis for an island nation 100 percent dependent on imports for basic subsistence.

The government meanwhile contends that it is not subject to termination and associated clauses relating to a contract it has deemed ‘void from the outset’.

“Under the terms of the direct agreement, these loans would be repayable if the concession was terminated early, as defined in the direct agreement. The government contends, however, that if the concession agreement is void ab inito, then these terms do not apply,” reads a special audit commissioned by the Auditor General.

“Under the terms of the direct agreement, these loans would be repayable if the concession was terminated early, as defined in the direct agreement. The government contends, however, that if the concession agreement is void ab inito, then these terms do not apply.”

Present situation

With arbitration pending and efforts to create a new management company having apparently stalled for the time being, the outlook for the airport remains uncertain.

Much will be dictated by the election in September. Former President Mohamed Nasheed has said he will invite GMR-MAHB to return should his party resume government, while the Progressive Party of the Maldives (PPM) has declared one of GMR-MAHB’s most voracious opponents, ex- Home Minister Dr Mohamed Jameel, as the party’s Vice-Presidential candidate.

The government’s special audit of the project shows the upgrade and construction of the new terminal was 25 percent complete as of October 31, 2013.

“In the meantime, all work on the ground on the improvement to the airport has ceased. Sensitive elements of the new structures that had been planned by [GMR-MAHB] are incomplete and exposed to the weather and at risk of damage – possibly closing off the option of re-using these elements to reduce the cost of any future development of the airport,” the report noted.

Former Transport Minister Dr Ahmed Shamheed, who was dismissed by the government in November 2012, warned in January 2013 the airport needed urgent work to reach acceptable standards, that was outside local capabilities.

“To get the airport to the right level, they will need to bring in outside help,” he told Minivan News at the time.

“The airport is in very bad shape right now and work is needed on the runway, all of which cannot be done without finance.”

Ibrahim Nasir International Airport was meanwhile dubbed the  ‘Indian Ocean’s Leading Airport 2013′ at the Indian Ocean World Travel Awards on May 12.

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MDP willing to discuss interim government with PPM: Nasheed

Former President Mohamed Nasheed announced the Maldivian Democratic Party’s (MDP) willingness to discuss enacting an interim government with the Progressive Party of Maldives (PPM), which the party believes is essential for free and fair elections to occur.

The MDP has desired the establishment of an interim government since the controversial transfer of power of February 7, 2012 and is open to holding discussions with the PPM to establish a transitional government prior to September’s Presidential elections, Nasheed stated during a press conference held at the Mookai Hotel in Male’ today (May 16).

“If PPM wants to bring in an interim government, we are ready to hold discussions. MDP wants an interim government. We at MDP have always wanted an interim government. But we need support from other parties to do that in parliament. If PPM is so inclined, we are ready to hold discussions with PPM to achieve this,” Nasheed said.

“For free and fair elections [to take place], we are encouraged that PPM has pledged to stop Waheed from campaigning on state funds,” he added.

The MDP is continuing its call for the Commission of National Inquiry (CoNI) recommendations to be implemented, with the supervision of the international community. Nasheed stated he was disappointed CoNI recommendations have yet to be enacted – especially regarding holding to account those who mutinied against the government and committed various brutal acts, including destroying the MDP’s headquarters.

Nasheed said that the MDP did not believe free and fair elections were possible with Police Commissioner Abdulla Riyaz and Defence Minister Colonel (Rtd) Mohamed Nazim in their current positions, and has asked they be “transferred” from their current posts.

He distinguished between ‘rank and file’ Police Service and Maldives National Defence Force (MDNF) and their leadership. Nasheed said action should be taken against the highest ranking officers for their role on February 7.

MDP Spokesperson Mohamed Zuhair told Minivan News today that local media reports of Nasheed calling for Riyaz and Nazim to be “forcibly removed” are inaccurate, however the former President has called for their removal and transfer “as far away from their current positions as possible”.

“They are already enacting measures of intimidation under the guise of ‘coordination’ by requesting political parties give the name of a person to work with the police. The Elections Commission should be enacting such a policy, not the police. It’s very strange and highly suspicious,” said Zuhair.

Should PPM be of the same view that an interim government is necessary for credible elections to be held, MDP would work through the parliament to discuss with PPM, Zuhair explained.

“PPM’s President and former President Maumoon Abdul Gayoom has said their party would ‘go it alone’ and not form a coalition, because that would not allow policies to be implemented effectively. Then the natural next step [for the PPM] would be to gain parliamentary support from the only player able to give support, MDP,” said Zuhair.

PPM Spokesperson and MP Ahmed Nihan today rejected the likelihood of the government-aligned party working with the opposition MDP to remove President Waheed from office ahead of elections in September.

“I do not believe this is a possibility. If it was possible, we would have done this already I believe,” he said.

Nihan claimed that the PPM’s main concern at present was for free and fair elections to take place. However, he added that with the Commonwealth-backed CoNI concluding that President Waheed’s coalition government – which includes the PPM – had come to power legitimately, it would not back the MDP’s calls for the present administration to be removed.

Nihan added that, while continuing to support the present coalition government, many PPM supporters believed that the party presently represented one of only two political ideologies in the country. These philosophies he said were those of PPM founder former President Maumoon Abdul Gayoom, and former President Nasheed and the MDP.

Nihan claimed that the majority of the country’s smaller parties, including those choosing to side with President Waheed in a pre-election coalition, were all rooted to former President Gayoom and his “political wisdom”.

“Strange bedfellows”

Nasheed also addressed the recent addition of the Dhivehi Rayyithunge Party (DRP) to the President Mohamed Hassan Manik’s coalition – which includes his Gaumee Ittihad Party (GIP) and the Adhaalath Party (AP) – and it’s incompatibility with a democratic presidential system of governance.

Nasheed expressed his happiness about Gayoom’s statement that coalitions do not work because they are not in line with a presidential governing system and are instead more reflective of a parliamentary system.

“I am very happy that President Gayoom – [who is] no doubt is the most experienced political leader [in the nation] – has been very clear about how inefficient for democratic policies the formation of coalitions are in a presidential system,” said Nasheed.

Nasheed noted that the Adhaalath Party and Sheiks’ extremist views will pose difficulties for the GIP-led coalition. Although the DRP are billing themselves as a moderate party, they will not establish the national ‘bastion of tolerance’ they claim to be purporting, Nasheed said.

The former President believes the coalition is a “hodgepodge” mix of ideologies, not politics and these “strange bedfellows” cannot achieve anything.

DRP disintegration

Nasheed stated that the alliance between GIP and DRP is only agreement between the two individual and not reflective of grassroots DRP supporters. He believes that DRP leader Thasmeen Ali and Waheed had no other choice and formed the coalition out of sheer necessity.

He also stated that the recent coalition has not produced a “third ideology” and that only two ideologies exist in the Maldives.

During door to door campaigning, the MDP has noticed that DRP grassroots support is disintegrating. They are either merging with PPM or joining MDP, according to MDP Press Director Mohamed Zuhair.

Additionally, Zuhair discussed the distinction President Nasheed made between other parties and MDP. He highlighted that MDP policies are formulated by consulting every household to asses the Maldivian people’s needs. This is followed by holding consultative seminars, with the feedback passed to the party’s ‘organs’ for discussion, then to policy committees, with the process culminating in an announcement.

“None of the other parties have this method,” said Zuhair.

“So far three policies have been announced, and the fourth – agrobusiness – will be announced tomorrow,” he continued.

“MDP is focusing on policy issues, having to ‘go out on the road’ and stage protests to ensure free and fair elections will change the entire dynamics of the campaign. We are hoping it doesn’t come to that,” said Zuhair.

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Cost of proposed seaplane operations to local islands “unreasonably high”: Transport Ministry

The Ministry of Transport and Communications has decided to negotiate with seaplane operators Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT) to reduce the cost of flights to the atolls, which the ministry believes is “unreasonably high”, reports local media.

The companies submitted a joint proposal in response to the planned Maldivian government initiative to expand seaplane services to the islands to improve the country’s transportation network.

Director General of Regional Airports at the Transport Ministry Saamee Ageel told local media today that the prices quoted by TMA and MAT were “unreasonably high”. The companies proposed being exempt from all aviation surcharges and would charge US$95 (MVR 1,464.90) per trip, per person.

The joint proposal also requested the government compensate the companies if the seaplanes travel with less than 12 passengers on any trip, according to Ageel.

“If that is the case, the government would have to pay about MVR 800,000 (US$51,880.67) per month. These are unreasonably high prices for the government. The government is trying to do this in a sustainable way,” Ageel said.

The Government of Maldives signed an agreement with MAT on September 18, 2012, for the company to provide seaplane services to the islands. Ageel said that agreement has since been terminated.

Currently MAT and TMA make scheduled flights to tourist resorts only.

US-based private equity fund Blackstone bought a controlling stake in both the Maldives’ seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT), in February 2013.

Blackstone, with annual revenue of US$3.119 billion and total assets of US$18.845 billion, bought the seaplane operators for an undisclosed sum.

Senior Managing Director and Chief Investment Officer at Blackstone’s Private Equity unit based in New York, Prakash Melwani, said the investment “will enable us to build a strong partnership with the Maldives.”

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Three men in a simmering archipelago: The Hindu

“Maldives President Mohamed Waheed has unexpectedly thrown his hat in the ring for the September 2013 elections, upsetting what was supposed to be a two-cornered contest between the country’s best-known democrat and its infamous strongman,” writes R Radhakrishnan, in an open editorial for the Hindu newspaper.

“Until last week, it appeared that the race for the Maldivian Presidency would be between two candidates — the charismatic former President Mohamed Nasheed and Yameen Abdullah, the brother of former dictator and Nasheed’s tormentor Maumoon Abdul Gayoom.

Nasheed’s Maldivian Democratic Party is the country’s biggest in terms of membership (45,666, according to the election commission; an additional 1,323 were not included, says MDP). The Progressive Party of the Maldives, which Gayoom founded in 2011, is the second-largest party, with 22,383 members.

The only purpose of the others in the fray seemed to be to ensure that neither of the two main candidates would get the 51 per cent votes in the scheduled September 7 election and that there would be a run-off.

No one seriously thought that President Mohamed Waheed would emerge as a candidate himself. His Gaumee Ithihad Party (GIP) was too small — with a membership of barely 4,000 — and he did not have the commanding stage presence of either Nasheed or Gayoom; and it appeared no other small party wanted to back him for President. (A GIP functionary claimed that after a membership drive, the members have shot up to 12,000).

All that is history. Dr. Waheed is now seriously in the reckoning. Playing a deft hand, Dr. Waheed — Vice-President in the previous Nasheed government — has managed to rope in parties that do not want to be in an alliance with either Gayoom’s PPM or Nasheed’s MDP.

Read more.

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Nine parties submit audit reports within Elections Commission deadline

Nine political parties have submitted their annual audit reports to the Elections Commission (EC) by a deadline that expired yesterday (May 14), local media has reported.

Under EC rules, all political parties wishing to receive state funds are required to submit their annual audits reports by a specific deadline.

EC Secretary General Asim Abdul Sattar was today quoted by Sun Online as confirming that a total of nine parties had met the deadline to submit the reports. He declined to identify the nine parties at present.

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