Tag: maldives

Government considering seeking compensation from GMR: Attorney General Azima Shukoor

Attorney General (AG) Azima Shukoor has said the Maldives government could opt to seek compensation from infrastructure group GMR after it decided to void the India-based company’s concession agreement to develop Ibrahim Nasir International Airport (INIA), according to local media.

GMR last week confirmed that it was seeking an estimated US$800 million in compensation in order to recover what it has claimed are investment and earnings after the government “wrongfully” terminated its contract.

In a press conference held yesterday (December 17), the attorney general maintained the government’s belief that the agreement with GMR to develop INIA was illegal.  She added that the government therefore intended to seek compensation for damages it “might” have incurred during the process of entering into the contract with GMR, local newspaper Haveeru reported.  The contract was signed during the administration of former President Mohamed Nasheed.

Highlighting the pending arbitration process in Singapore Court between the government and GMR, Shukoor said that efforts were being made to appoint arbitrators for the hearings. She added that the government and Maldives Airports Company Limited (MACL) had appointed a “member” of Singapore National University as their arbitrator.

Similarly, GMR will also be given a 30-day period to appoint an arbitrator on its behalf.

Shukoor suggested during the yesterday’s press conference that it may take a period of one year until the due procedures were completed before a decision was made in the courts.

“It will take about two months time to appoint the panel to overhear the arbitration case. After that, parties will exchange documents and affidavits and respond to it and only after that a proper hearing on the matter will be held and might take up a period of one year,” she suggested.

Indian media reported last week that GMR had sent a letter to the Finance Ministry stating that it would seek compensation worth US$800 million.  Shukoor denied such a communication had been sent, adding that she did not believe such a demand could even be made.

“We terminated the agreement on the grounds of void ab initio (void from the outset) , therefore we will begin the negotiation on the position that the government of Maldives do not require to pay back anything,” Shukoor explained.

However, she admitted that owing to the size of GMR’s investment, there remained a possibility that government might have to pay some amount that would be determined through the arbitration process.

“Even if we do require paying back as compensation, it would be based on the decisions reached during the arbitration process. If it is settled out of court, then it would be based on legal arguments raised by the parties to the contract,” she added.

Shukoor has also claimed that even before INIA was handed over to GMR, no asset valuation was carried out – a decision expected to cause problems for the government. She also said that it has not been yet decided how the asset valuation would be carried out or how the amount that the government might seek in compensation from GMR would be calculated.

Even with the arbitration process now proceeding, Shukoor told local media that if the government believed additional compensation was required, it would seek the additional amount through the same courts.

“A lot of work is being carried at the moment. However, we have not yet calculated the amount we might have to pay or the amount that had been invested and even the amount we expect to seek,” she explained.

GMR demands US$800 million in compensation

GMR is seeking US$800 million in compensation following the termination of its US$511 million concession agreement signed under the former government back in 2010.

The Indian infrastructure giant has said that the proposed US$800 million claim was based on its “provisional estimates” and that the company had also taken into account the Maldives’ ability to cover such payments if compensation was awarded by the Singaporean courts overseeing arbitration.

GMR’s chief Financial Officer (CFO) Sidharath Kapur previously told Minivan News that the sum was a “preliminary estimate” based on a number of factors including investments made by the company, debt equity and loss of profits as a result of the contract termination.

He also added that on last Tuesday (December 11) the company had communicated with Maldives Ministry of Finance by sending an official letter outlining its concerns that the contract had been “wrongfully” terminated without respect for the agreed procedures.

Meanwhile according to Finance Minister Abdulla Jihad, no mechanism is currently budgeted should the Maldives face a multi-million US dollar bill for evicting GMR, but stressed it was not for the company to decide on any eventual payment.

He also played down fears that any potential fine could prove perilous for the country’s economy, as well as attempts to reduce the spiralling budget deficit, stating that any possible fines would be set by the Singaporean arbitration court hearing the dispute.

“We will deal with the matter when we know the amount of compensation to be paid,” he said at the time. “GMR cannot decide, it will be down to the court [hearing the arbitration].”

The INIA concession agreement

In 2010, the government of Maldives through its Finance Ministry, MACL and GMR-MAHB entered into a concession agreement with INIA whereby the Malaysian-Indian consortium were to develop and operate the airport for a period of 25 years.

According to the concession agreement a “project company” under the name GMR International Airport Limited (GMIAL) was to carry out the development project.

However, a lengthy dispute between the new government of President Dr  Mohamed Waheed Hassan and the GMR Group led to the eviction of the agreement.

On November 27, President Mohamed Waheed’s cabinet declared the agreement void, and gave the company a seven day ultimatum to leave the country.

Shukoor at the time stated the government reached the decision after considering “technical, financial and economic” issues surrounding the agreement.

She also claimed the government had obtained legal advice from “lawyers in both the UK and Singapore as well as prominent local lawyers – all who are in favour of the government’s legal grounds to terminate the contract.”

The INIA was handed over to the government on December 8, in an invitation-only press conference; Finance Minister Jihad presented the official handover documents to MACL Managing Director Mohamed Ibrahim, and said that the Maldives would pay whatever compensation was required “however difficult”.

With arbitration proceedings underway in Singapore over the contested airport development charge (ADC), GMR received a stay order on its eviction and appeared confident of its legal position even as the government declared that it would disregard the ruling and proceed with the eviction as planned.

On December 6, a day prior to its eviction, the government successfully appealed the injunction in the Supreme Court of Singapore. Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

That verdict, effectively legalising the sovereign eviction of foreign investors regardless of contractual termination clauses or pending arbitration proceedings, was “completely unexpected”, according to one GMR insider – “the lawyers are still in shock”, he said at the time.

A last ditch request for a review of the decision was rejected, as was a second attempt at an injunction filed by Axis Bank, GMR’s lender to the value of US$350 million.

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Police ask PG to press charges against motorists involved in Gasim’s death: no mention of police involvement

Police submitted a case to the Prosecutor General’s office on December, asking it to press charges against the motorist and the passenger on the speeding motorcycle involved in the death of bystander Abdulla Gasim Ibrahim on August 17.

In a press release issued on December 15, police stated that the persons alleged to have caused the death of Gasim were 21 year-old Ahmed Nadhee Saleem, of NooruhSabah on Gemanafushi in Gaafu Dhaalu Atoll and an unnamed 17 year-old boy.

Although previous police accounts stated that the two persons had been speeding on a motorcycle after stealing a mobile phone from an expatriate, the latest press release adds that the motorcycle being driven by the two was also stolen property.

The statement reads: “The request to press charges against these two persons has been sent to the Prosecutor General with relation to the events of August 17, at a time of which day these persons stole a motorcycle parked in front of Twilight Rivery in Henveiru ward, drove it at very fast speeds, stole a Nokia mobile phone from an expatriate who was standing near what was formerly known as the Bond Street shop, ignored orders from police at the scene to stop, and continued speeding despite attempts by police officers to stop them, resulting in a collision with a parked motorcycle on Orchid Magu near the Justice Building, causing severe injury and the ensuing death of the motorist on the parked motorcycle.”

The statement makes no mention of the police officer who was shown in leaked CCTV footage of the incident to have struck the fleeing suspects with his baton, causing them to collide with Gasim.

Police cover-up

The leaked video of the incident, which has been making rounds on social media since the beginning of December, shows a policeman stepping in front of the speeding motorcycle and hitting the motorcyclist on the head with a baton.

The victim’s family has also previously written to the Police Integrity Commission alleging that there was police involvement in the death of Gasim, describing the event as was later publicly seen in the leaked video. The family has said that it has so far not received any official response from the commission.

Despite the video evidence, police are now pressing charges against the cyclist and the passenger, while no mention of police involvement which led to the death was mentioned in the press statement.

Police Media Official Sub-Inspector Hassan Haneef was not responding to calls at the time of press.

Minivan News also tried contacting PIC President Abdulla Waheed, whose phone was switched off at the time of press.

PIC Director General Fathimath Sarira stated that the commission would be able to comment on the matter on Thursday, and that they had no comment for the time being.

On December 3, Sarira had confirmed that the commission was looking into the allegations of police involvement in the incident, stating that the ‘investigations are nearing conclusion’.

Meanwhile, the Maldivian Democratic Party (MDP) has submitted a motion to parliament, requesting the Committee on Oversight of the Executive review the case.

Prosecutor General Ahmed Muizzu was unable to speak to Minivan News today.

Human Rights Commission of the Maldives (HRCM) President Mariyam Azra was also not responding to calls, while HRCM Vice President Ahmed Tholal and member Jeehan Mahmood had their phones switched off.

Warning: Some viewers may find the following footage disturbing

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State Finance Minister warns National Movement will “break up” parliament

Minister of State for Finance Abbas Adil Riza has accused Parliamentary Speaker Abdulla Shahid of “challenging” the Supreme Court after he tabled a no-confidence motion despite an injunction from the court.

Riza’s comments follow parliament’s announcement last week that a no-confidence motion against Defence Minster Colonel (Retired) Mohamed Nazim has been tabled despite a Supreme Court injunction ordering parliament to halt all pending no-confidence votes.

Speaking at the artificial beach on Monday (December 17) Riza, who is also a National Movement Steering Committee member, said that Shahid’s decision to “challenge” the Supreme Court was a “cowardly act”.

“Unless Shahid immediately ceases his efforts to violate the constitution while holding the post of Speaker of Parliament, the National Movement will ensure that this comes to a stop,” local media reported Riza as saying.

Furthermore, Riza warned that should the parliament try to violate the constitution, the National Movement will “break up” the parliament.

Last week, the People’s Majlis secretariat revealed that Defence Minister Nazim has been given the required 14-day notice and his ministry also duly informed by Speaker Abdulla Shahid.

Repsonding to Riza’s comments, Majlis Deputy Speaker and fellow PA MP Ahmed Nazim said that the Parliament has not challenged the Supreme Court’s injunction, noting that it has given the full 14 days notice to the court as per stated by the law.

“We believe there is still time for Supreme Court to lift the temporary injunction, and I believe they will not see this as the parliament challenging the court.

“After 14 days, the motion will be put up on the agenda for discussion by party leaders. If the injunction remains then there is a possibility for party leaders to challenge the court,” Nazim told Minivan News.

Article 101(a) of the constitution states, “At least fourteen days notice of the debate in the People’s Majlis concerning a motion under article (a) shall be given to the concerned member of the cabinet, and he shall have the right to defend himself in the sittings of the People’s Majlis, both orally and in writing.”

When asked if there was concern from parliament over Riza’s comments, Nazim revealed that the institution as a whole did not feel threatened, however there had been “concern” expressed by individual parliamentary members.

“The institution is protected by the constitution and we have protection from the Maldives National Defence Force (MNDF), however at least one individual has told us he feels threatened and believes that security needs to be increased.

Abbas Adil Riza was not responding to calls at time of press.

On December 3, parliament voted 41-34 to approve amendments to the parliamentary rules of procedure to conduct no-confidence votes to impeach the President and remove cabinet members through secret ballot.

MPs of the government-aligned Jumhooree Party (JP) and Dhivehi Rayyithunge Party (DRP) joined the formerly ruling Maldivian Democratic Party (MDP) to vote the amendment through.

The no-confidence motion against Defence Minister Nazim was submitted by the MDP earlier this month on the grounds that he misused his authority as acting Transport Minister by using the military to influence termination of commercial contracts.

No-confidence motion against Home Minister Dr Mohamed Jameel Ahmed

Meanwhile, a no-confidence motion has again been submitted against Home Minister Dr Mohamed Jameel today (November 17).

The Maldivian Democratic Party (MDP) submitted the same motion to parliament on a previous occasion, but withdrew it at the last minute after the voting was scheduled for parliament.

An MP told local media that this latest motion was submitted with 17 signatures including the signatures of MDP MPs, however this has yet to be officially confirmed.

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MDP forwards no-confidence motion against Home Minister

The Maldivian Democratic Party (MDP) has forwarded a no-confidence motion against Home Minister Dr Mohamed Jameel, for the second time.

This is the second time the MDP has submitted a no-confidence motion against the Home Minister. The last time the motion was submitted the MDP withdrew the motion for unexplained reasons.

A statement issued by the MDP today accused the Home Minister of failing to control civil peace and order in the country, which it said had led to the loss of eight lives.

The MDP further referred to an incident in which a man on a motorcycle was killed after a police officer struck a second motorcyclist with his baton, causing him to collide with the first.

Police at the time did not reveal the involvement of the police officer in the death of the bystander. Video footage of the incident was subsequently leaked to the media.

The MDP alleged that Home Minister Jameel had tried to cover up police involvement in the death.

The no-confidence motion was signed by 17 MDP MPs.

Last week the parliament tabled a no-confidence motion filed against Defence Minister Colonel (Retired) Mohamed Nazim,despite a Supreme Court injunction ordering parliament to halt all pending no-confidence votes.

The People’s Majlis secretariat revealed that Defence Minister Nazim has been given the required 14-day notice and his ministry also duly informed by Speaker Abdulla Shahid.

A no-confidence motion against the President is also in the parliament awaiting scheduling.

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Fault in Laamu Kadhdhoo aiport’s only fire truck causes operations to halt

The only fire truck at Laamu Kadhdhoo airport failed to start this morning causing airport operations to come to a halt.

Due to a fault in the fire truck, Ahmed Ali, who is currently in charge of the airport, said it had not been possible for any aircraft to land at the airport since 9:30am.

Operations were also suspended yesterday due to the same problem.

“We only have one fire truck. The truck has failed to start, so operations have been suspended,” Ali told local media.

While efforts to repair the truck were underway, Ali said that some of the equipment required to repair the truck was not at the airport.

According to Ali, airport operations are to resume by 8:00pm tonight (December 17).

Aviation law prohibits airplanes from landing at an airport without the presence of an operational fire truck.

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“There was a legitimate contract signed. We are disappointed”: Malaysian Trade Minister

The Malaysian government has expressed “disappointment” at the scrapping of the Maldives’ “legitimate” contract with the GMR-Malaysia Airports Holdings Berhad consortium.

Indian media reported that Malaysian Prime Minister Najib Tun Razak was scheduled to visit New Delhi towards the end of the week and would likely be discussing the matter with Indian Prime Minister Manmohan Singh.

Malaysia’s Consul General in Chennai, Citra Devi Ramiyah, told reporters in Delhi that it was too early to speculate whether MAHB would seek compensation from the Maldivian government, which voided the GMR-MAHB concession agreement and ordered the company to leave by December 7.

The government had earlier dismissed a stay order for the eviction granted by the arbitrators – the Singapore High Court – as an affront to the country’s sovereignty. A day before the end of the seven day notice period, the injunction was dropped on appeal after Chief Justice Sundaresh Menon of the Supreme Court of Singapore declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

Ramiyah told reporters that the Maldivian government had shown its intention “to do the project on its own and [was] willing to compensate financially. So, it is very early for us to comment.”

Malaysian Minister of International Trade and Industry Seri Mustapa Mohamad was more concerned, according to the Economic Times, and expressed hope that the Maldives would reconsider its decision to evict the investors.

“In Male we have enjoyed very close ties with the previous government for many years. The Maldives is 100 per cent Muslim country. Of course, with the new government the lesson for us is we should be more careful, more due diligent,” Mohamad said.

“We want our investments to be protected. There was a legitimate contract signed. We are disappointed,” he added.

GMR meanwhile handed over the duty free stores today after being ordered to do so by the government.

“GMR has vacated the duty free shops at the airport. So since they’ve cleared their goods, no services will be provided from the shops,” Maldives Airports Company Limited (MACL) Rahmathullah Ashraf told local media.

Andrew Harrison, CEO of GMR Male International Airport – GMR’s side of the voided airport development – dismissed claims in local media that the company had “stripped” the duty free store ahead of the handover.

“We were asked to close duty free by the 17th. It is not true we have stripped duty free. We have destocked and in some cases returned goods to suppliers, or found buyers through appropriate customs procedures,” Harrison said.

GMR had sought a smooth transition after being ordered to handover the airport “as we did not want passengers or carriers to suffer,” he said. “The only area left where we [were] active was duty free.”

GMR staff had begun returning to India, particularly those involved in the construction of the new terminal after the cancellation of the contracts to build it, he said.

The government has not yet declared what it intends to do with the foundations of the abandoned terminal project, built on 60 hectares of reclaimed land on the other side of the airport island.

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Sick Indian prisoners in the Maldives denied treatment: The Hindu

More than a year after India and the Maldives signed an agreement on transfer of convicted prisoners, as many as 14 Indian inmates in the archipelago are losing hope of being transferred to prisons in their country, reports Indian newspaper The Hindu.

“We have no problems. From our side, there is no delay. We welcome India taking back sentenced prisoners,” a Maldivian official told The Hindu last week, when asked about the delay in paperwork.

Just as in the case of 33 Indian prisoners in Sri Lanka, the Indians in Maldives prisons are also at the receiving end of Indian bureaucracy. But unlike in the case of Indian prisoners in Sri Lanka, most of the 14 prisoners in the Maldives are ill and have almost no access to treatment. Access to treatment for most islanders in the Maldives consumes time, energy and money. Vacancies for specialist-doctors exist even in the country’s main hospital, the Indian-built Indira Gandhi Memorial Hospital, Male.

“I do not know what my disease is,” said a woman prisoner who has been jailed in the Central North province of Maafushi, in Kaafu Atoll. “After I have been brought to Maafushi, I have never met a doctor. Every month, they take me to Male and bring me back. Soon after that they take a signature of mine in a paper with something written in Dhivehi [the official language of the Maldives],” said the woman, in a letter to the Indian High Commissioner in the Maldives.

Read more

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No plans to privatise airport, “might sublease”: Tourism Minister Ahmed Adheeb

Minister of Tourism Ahmed Adheeb has said the government is not planning to hand over full control of operations at Ibrahim Nasir International Airport (INIA), but might sublease specific development projects to international parties through a “transparent” bidding process.

Minister Adheeb told Minivan News that privatising the only international airport allowed it to become a monopoly which was not in the best interests of the country.

“What we saw was that handing over operation of the only international airport in the country meant it was monopolised. What we are saying is that if the airport is given like that without any competition, it is not in the best interest of the country,” he said.

Adheeb admitted that INIA needed further development and refurbishment, including the addition of an extra runway, and said such projects would be subleased to developers through a transparent bidding process. He also maintained that “operation and control” of the airport would not be given away as he alleged the former government had done with GMR’s concession agreement.

President Mohamed Waheed Hassan also highlighted in an interview to India’s Business Standard that MACL would “open tenders for major development projects”.

“I think it’s too early to talk about the rebidding but, yes, MACL will open tenders for major development projects in connection with the airport modernisation program. GMR is eligible to participate. I don’t see any reason why Chinese companies should be barred from participating in the bidding process,” he told the Business Standard.

However, when contacted by Minivan News, MACL Managing Director Mohamed Ibrahim denied any knowledge of such bidding processes and said he did not wish to further comment on the matter.

Minister Adheeb said 75 percent of the tourists coming into the country were from Europe and following the “European [economic] crisis, the Maldives government should have provided an incentive to those tourists arriving to the country, but because of INIA being operated by GMR, several airport fees were raised.”

“Flight operators operate as a business. They will not consider us if we give no incentives in such a time of crisis and when the airport handling charges are too high. We have to understand that INIA is a tourist airport, it is not a shopping airport or a transit airport,” he explained.

Therefore, the Minister said that the country needed an efficient airport where tourists can go through quickly, with an efficient check-in system.

Earlier on February 2, Qatar Airways CEO Akbar Al Baker warned the airline will re-consider flying to the Maldives if the airport operator maintained its plan to raise airport handling fees at INIA by 51 percent.

Reuters at the time reported that the airline was “‘dismayed’” over what it understood to be GMR’s plan to increase the handling fee at a future date, and suggested such a move would “threaten Qatar Airways’ continued presence in the Maldives.”

However, the GMR Group at the time denied the allegations stating that it had had received no official communication from the airline about its concerns.

GMR spokesman Amir Ali responded at the time saying that the fee hike had already been made by MACL shortly before GMR assumed control of the airport, adding that while there were no plans for a further increase at present, prices were dependent on factors such as fuel costs.

Adheeb also alleged that the former government intended to rush the development process of the airport rather than a “well contemplated phase by phase development plan”.

“Why do we really need to develop the airport to cater to four million people? We could have done that through proper planning in a phase by phase development process,” he said.

The INIA concession agreement

In 2010, the government of Maldives through its Finance Ministry, Maldives Airports Company Limited (MACL) and GMR-MAHB entered into a concession agreement withINIA whereby the Malaysian-Indian consortium were to develop and operate the airport for a period of 25 years.

According to the concession agreement a “project company” under the name GMR International Airport Limited (GMIAL) was to carry out the development project.

However, a lengthy dispute between the new government of President Mohamed Waheed Hassan and the GMR Group led to the eviction of the agreement.

On November 27, President Mohamed Waheed’s cabinet declared the agreement void, and gave the company a seven day ultimatum to leave the country.

Attorney General (AG) Azima Shukoor stated the government reached the decision after considering “technical, financial and economic” issues surrounding the agreement.

She also claimed the government had obtained legal advice from “lawyers in both the UK and Singapore as well as prominent local lawyers – all who are in favor of the government’s legal grounds to terminate the contract.”

The INIA was handed over to the government on December 8, in an invitation-only press conference; Finance Minister Abdulla Jihad presented the official handover documents to MACL Managing Director Mohamed Ibrahim, and said that the Maldives would pay whatever compensation was required “however difficult”.

With arbitration proceedings underway in Singapore over the contested airport development charge (ADC), GMR received a stay order on its eviction and appeared confident of its legal position even as the government declared that it would disregard the ruling and proceed with the eviction as planned.

On December 6, a day prior to its eviction, the government successfully appealed the injunction in the Supreme Court of Singapore. Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

That verdict, effectively legalising the sovereign eviction of foreign investors regardless of contractual termination clauses or pending arbitration proceedings, was “completely unexpected”, according to one GMR insider – “the lawyers are still in shock”, he said at the time.

A last ditch request for a review of the decision was rejected, as was a second attempt at an injunction filed by Axis Bank, GMR’s lender to the value of US$350 million.

Scott Wilson Plan

Minister Adheeb said the Scott Wilson master plan produced during former President Maumoon Abdul Gayoom’s administration would have been “a better master plan to develop the airport.”

“Sir Scott Wilson’s master plan to development of INIA was a good master plan. We actually did not require a plan to be implemented immediately. The plan was to develop the airport in a phase by phase development process. Some of the development projects had already been completed at the time the airport was given to GMR for development,” he explained.

Following the signing of the concession agreement of INIA with India’s GMR group, the Scott Wilson master plan was abandoned for a new master plan produced by the International Finance Corporation (IFC) through another foreign consultancy firm – Halcrow – which the current government claimed was more costly.

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

The current government criticised the IFC for abandoning the Scott Wilson plan for a more “costly master-plan”  and alleged that the World Bank affiliated group had been “irresponsible” and “negligent” in advising the former government of President Mohamed Nasheed in the concession of INIA by Indian infrastructure giant GMR.

However the IFC denied the allegations, stating that its advice was geared towards achieving the “objective of upgrading the airport and ensuring compliance with applicable international regulations” and providing the Maldives government “with the maximum possible revenue”.

“A competitive tender was organised with the objective of selecting a world-class, experienced airport operator, who would rehabilitate, develop, operate and maintain the airport,” said an IFC spokesperson at the time.

Airport Development Charge

Highlighting the Airport Development Charge (ADC) that the former government intended to charge – prompting criticism from the opposition parties who are now currently in government of President Waheed – Adheeb said that the former administration proceeded to taking ADC without legislation.

“The way they intended to charge ADC was not a mechanism established in anywhere in the world. ADC is taken through a proper legislation and should be flexible and adjustable in parallel with the inflation rate,” he contended.

On November last year, former President Mohamed Nasheed’s government’s Transport Minister Adil Saleem announced that GMR will begin charging international passengers a US$25 (MVR 385.5) ADC at the departure check-in counters of INIA for all flights scheduled after 12:00am on January 1, 2012.

Saleem stated at the time that the fee had been previously approved by the government as part of its contract with GMR.

The matter was soon taken to Civil Court by then opposition Dhivehi Qaumee Party (DQP) – led by current Special Advisor of President Waheed, Dr Hassan Saeed. The DQP claimed that a pre-existing Airport Service Charge (ASC) of US$18 (MVR 277.56) invalidated the ADC.

The Civil Court in December 2011 invalidated the ADC charge, ruling that the clause in the concession agreement with GMR violated the Airport Service Charges Act of 1978, which was amended in 2009 to raise the charge to US$18 for foreign passengers and US$12 for Maldivians above two years of age.

The current government, after ascension to power, claimed in a “cabinet-committee report” that it was “not in the best interest of the country” to appeal the Civil Court decision to High Court, and thereby ignored the decision.

The former government had honoured the concession agreement following the civil court ruling, and,  under instruction from a letter sent by MACL, had been deducting ADC revenue from concession fees due the government.

Following the ousting of the Maldivian Democratic Party (MDP)-led government on February 7, the new government – which included the DQP – inherited the crippled concession revenues, under which it was effectively obliged to pay GMR to develop the airport.

The new government received a succession of bills from the airport developer throughout 2012. In the first quarter of 2012 the government received US$525,355 of an expected US$8.7 million, after the deduction of the ADC. That was followed by a US$1.5 million bill for the second quarter, after the ADC payable eclipsed the revenue due the government.

Combined with the third quarter payment due, the government owed the airport developer US$3.7 million (MVR 57.05 million).

On May 8, GMR offered to exempt Maldivian nationals from paying the contentious ADC in a bid to end a legal and contractual stalemate that had given rise to MACL going bankrupt and the deprivation of the majority of all airport revenue that the government was to generate through the agreement.

However, despite attempts to renegotiate the issue, the government decided to terminate the agreement at risk of compensation. The ADC case is still pending in the Singapore Arbitration Court.

Adheeb stressed that such major projects that is pivotal to the country’s economy should not be taken without thorough research and proper consultation and analysis. The current government, he said, would address these issues “with patience and with a proper plan.”

He also added that the current government of President Waheed would seek towards a “balanced economic and foreign policy” that would be in the best interest of the country.

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Visa applications to travel India now take longer to process

Visas to travel to India will now take one week to process, the High Commission of India in Maldives has announced.

Previously the process would take two to three days, however a notice from the high commission has now advised people to apply for their visas well in advance to avoid inconvenience.

The high commission has also announced that visa free travel facilities to India available to Maldivian citizens are only valid for tourism purposes.

Citizens wishing to travel to India for a purpose other than tourism are advised to obtain the appropriate visas before travelling to the country.

According to local media, the high commission said that these changes are solely due to technical reasons.

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