Maldives backs new Chinese investment bank, pursues free trade deal

The Maldives is to back a Chinese-initiated international finance institution to be called the Asian Infrastructure Investment Bank (AIIB) while ministers have confirmed a free trade agreement is being pursued.

At a press conference today, the economic council revealed that the Maldives had asked to be included as a founding member of the proposed bank alongside the existing 21 countries, which includes both China and India.

Minister of Fisheries and Agriculture Dr Mohamed Shainee also revealed that China was to become the Maldives first free trade partner, demonstrating the pair’s excellent bilateral relations.

The requests were put forward during a recent visit to China by the Economic Council where discussions were held on proceeding with Chinese-assisted projects, while the Maldives officially signed up to the Maritime Silk Road project.

The AIIB, which is to start up with a proposed US$100 billion capital, is purposed with financing infrastructure projects in the Asia Pacific region.

The bank has been described by some media outlets as having been set up with the intentions of increasing Chinese influence in Asia at the expense of the IMF, ADB, and the World Bank.

The economic council today confirmed that the Maldives has officially agreed to participate in China’s silk road trade route – the third country to do so, although Chinese state media has reported more than 50 states as expressing interest.

The two countries have also agreed to engage upon free trade in the future, explained the council.

“The biggest advantage of the free trade will go towards fishermen. With free trade and the 12 percent export duty will be gone, thus the 12 percent becomes profit for fishermen,” said Shainee.

When questioned about the potential economic disadvantages which might occur because of a free trade agreement, Minister at the President’s office Mohamed Shareef said that both governments will make sure that the agreement leads to a ‘win-win’ for the countries.

“I want to mention that the free trade talks were initiated by the Maldives,” said Shareef. “China is willing to give us a lot of leeway into how we structure the agreement.”

Shareef also said – citing Chinese sources – that the Maldives is the number one South Asian destination for Chinese tourists at the moment. Chinese tourists currently make up around one third of all tourist arrivals to the Maldives.

The economic council also stated that work on the proposed new terminal at Ibrahim Nasir International Airport (INIA) is to begin in the next six to seven months and that the request for the loan to finance the project has been submitted to the Chinese Exim bank.

The council members also reiterated the importance of the proposed Malé-Hulhulé Bridge, saying that there is good progress and that the government is aiming to open it by the year 2017.



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Government transfers paralysed Indian woman to Guraidhoo Special Needs Home

The Ministry of Law and Gender has temporarily transferred an Indian woman suffering from paralysis below the waist to the Home for People with Special Needs on Guraidhoo Island.

The woman had married a Maldivian man 23 years ago, but her husband died two months ago, leaving her in the care of her husband’s niece, local media have reported

She had been living alone in a rented room, but her landlord had told her she must leave by Thursday as she could no longer afford rent.

Speaking to Haveeru, Deputy Minister of Gender Mohamed Zahid said the ministry is in discussions with the Foreign Ministry and the Indian High Commission to transport the woman to her family in India.

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MDP expels MP ‘Reeko’ Moosa Manik

The opposition Maldivian Democratic Party’s (MDP) disciplinary committee has today expelled MP and Deputy Speaker of parliament ‘Reeko’ Moosa Manik for breaching the party parliamentary group’s three-line whip in three Majlis votes.

The MDP’s National Executive Council last week asked the committee to penalise Moosa within seven days along with five others after their absence from a Majlis vote to dismiss former Chief Justice Ahmed Faiz and Justice Muthasim Adnan.

Others absent from the vote were Vaikaradhoo MP Mohamed Nazim, Velidhoo MP Abdulla Yamin Rasheed, Mulaku MP Ibrahim Naseer, Felidhoo MP Ahmed Marzooq, and Kurendhoo MP Abdul Bari Abdulla.

Disciplinary committee Chair Mohamed Shifaz said Moosa had failed to answer summons to answer charges, forcing the committee to levy harsher penalties.

The remaining five MPs have been ordered to issue a public apology as they breached the party’s three-line whip only once.

Shifaz said that if Moosa wished to rejoin the party, he must publicly apologise and gain 50 new members. However, he will not be allowed to contest in any party primary or stand for a leadership position in the next five years.

Moosa – who had announced he would contest the MDP’s presidential primaries in 2018 – is reported to be signing for the ruling Progressive Party of the Maldives (PPM) tomorrow.

Opposition aligned Raajje TV has meanwhile reported that the government has awarded Moosa’s Heavy Load Pvt Ltd three islands for resort development following the termination of an agreement to reclaim land in Hulhumalé.

The five other MPs will be dismissed from any elected or appointed posts within the party and from chair or deputy chair positions in any People’s Majlis committees.

If the MPs breach a whip-line again, they will be suspended from contesting party primaries or leadership positions for five years.

Nazim is to be suspended from participating in National Executive Council or Parliamentary Group votes for three months, while Yamin, Bari, Marzooq, and Naseer are to be suspended for six months.

Nazim is also to be dismissed from party committees for three months, and suspended from contesting party primaries or standing for leadership positions for the next two years.

Yamin, Bari, Marzooq, and Naseer are to be dismissed from party committees for six months, and barred from contesting party primaries or standing for leadership positions for the next three years.

Shifaz said he believes the party must also penalise MP Ibrahim ‘Mavota’ Shareef for submitting amendments to the Judicature Act that resulted in the dismissal of Faiz and Muthasim.

The MDP rejected the proposal immediately and Shareef voted against amending the Judicature Act and the dismissal of the two judges.

Shareef was expelled from the MDP in 2007 for refusing to cooperate with an investigation into allegations of sexual harassment. He went on to join the Dhivehi Rayyithunge Party (DRP) before rejoining the MDP in 2013 when the DRP decided to back Nasheed during November’s presidential polls.

MDP has said the sudden removal of the two Supreme Court Judges is an attempt to stack the judiciary in President Abdulla Yameen’s favour.

Commonwealth groups have described the judges’ removal as unconstitutional, saying it constituted a clear breach of the Commonwealth Principles to which the government of Maldives has subscribed.

“As a result the independence of the judiciary and the Rule of Law have been “severely jeopardised”.

The International Commission of Jurists said the Maldivian parliament and executive “have effectively decapitated the country’s judiciary and trampled on the fundamental principles of the rule of law and separation of powers in a democratic State.”



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Southern atolls sign pact to defend decentralisation

The Maldives’ southernmost atoll councils have signed a joint declaration calling upon the government to protect the country’s decentralised authorities.

Atoll councils from Gaaf Dhaalu, Gaaf Alifu, and Fuvahmulah, joined with Addu City Council to sign the Medheaari Declaration yesterday (December 21).

The pact, which includes measures to secure fiscal autonomy, comes after repeated moves by the central government to remove powers granted to Malé City Council under the 2010 Decentralisation Act.

“What happened in Malé, will it be repeated in the atolls?” asked Addu City Council Mayor Abdulla Sodig.

“We always have the fear that the government will come after Addu City Council after it deals with Malé City Council.”

Representatives of the four councils met in Addu City Hall yesterday to sign the six point declaration, which Sodig described as “historic”.

As part of the arrangement, the councils passed a resolution vowing that all fees collected by local authorities should be deposited in council bank accounts.

Despite provisions in the 2010 act allowing for revenue raising measures, amendments to financial legislation have yet to be introduced, meaning that fees raised by local authorities are still sent to the capital Malé.

The 2014 UNDP Human Development Report has pointed out that harmonising laws remains a key challenge facing the decentralisation transition, as well as suggesting a pressing need to reduce the size of government at all levels.

While the Maldives Inland Revenue Authority has recently established an office in Addu, the city council has refused to allow it to begin operations until it pledges not to interfere with local fee collection.

Sodig explained that Addu City Council does not currently send its local fees to the capital, though the neighbouring atoll councils still do.

The President’s Office has declined to comment on the Medheaari Declaration.

An additional point contained in the document includes sending a letter to to the Majlis saying that any amendments to the Decentralisation Act must be brought in line with the spirit of the country’s decentralisation laws.

Recently proposed amendments to decentralisation – from pro-government MP Riyaz Rasheed – called for a reduced number of local councils and to cut the salaries of all councillors except the council’s president.

At yesterday’s meeting, the councils also agreed to write to all government institutions requesting that they respect the Decentralisation Act and uphold the powers of the constitution, and its specific provisions on local governance.

The removal last week of further lands originally granted to Malé City Council prompted the capital’s mayor to condemn what he called the government’s systematic abrogation of the council’s powers.

“We are now only in charge of facilitating construction in Malé, issuing death and birth certificates and cleaning mosques. But the constitution clearly states the Maldives must be administered through decentralised councils,” said Mayor Mohamed Shihab at the time.

The southern atolls yesterday also pledged to meet annually as well as to sign a joint MoU on February 24, agreeing to work together on socio-economic issues.

The southern atolls have traditionally supported the current opposition Maldivian Democratic Party (MDP) – as is Malé City Council, which has labelled the government’s removal of its authority an attempt to destroy decentralisation.

All of Addu City’s 6 councillors are MDP members, while the party won just over 40 percent of island, atoll, and city council seats nationwide in January’s local elections. The elections commission was unable to provide information on the current distribution of councillors in Fuvahmulah, Gaaf Alifu, and Gaaf Dhaalu at the time of publication.

Previous comments from government officials have suggested that political decentralisation must follow economic development throughout the atolls.

“Land, labour, and capital – the central government and the regional governments are fighting for it as we don’t have enough resources even for the existing government to cover the budget deficits,” Minister of Tourism Ahmed Adeeb has explained.

“I believe when there’s enough economic activity we can give more powers to the councils.”

Analysts have suggested that political wrangling over the implementation of decentralised governance – which included wholesale revisions to the original act proposed by the MDP government – has left the atolls’ populations less empowered than ever.

Addu, Fuvahmulah, and Huvadhoo (containing Gaaf Alif and Gaaf Dhaalu atoll councils) currently contain 14 percent of the Maldives population.

The same three atolls declared independence from the central government in 1959, forming the short-lived United Suvadive Republic before government forces regained control in 1963.



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Health sector a top priority for 2015, says President Yameen

The 2015 budget will improve health care services in the Maldives, President Abdulla Yameen has said at the inauguration of a new wing of the regional hospital on Raa Atoll Ungoofaaru.

Identifying a lack of adequate health services on all islands as a top grievance, Yameen said his administration will not discriminate between islands or atolls in providing quality health care and will improve the country’s “severely deteriorated health sector”.

According to the 2015 budget, MVR3.4 billion (US$220 million) of the record MVR24.3 billion (US$1.5 billion) budget would be spent on health care. Of this amount, MVR3.1 billion (US$201 million) amounts to recurrent expenditure.

The opposition Maldivian Democratic Party (MDP) has criticised the lack of funds in the 2015 budget for the ruling Progressive Party of the Madlives’ (PPM) main healthcare pledges – the ‘doctor for every family’ and the sea ambulance in every atoll schemes.

The party has also highlighted the reduction of funds for medical care abroad from MVR31.3 million (US$2 million) in 2014 to MVR10.5 million (US$680,000) in 2015. The domestic health care budget was also reduced from MVR9.3 million (US$603,000) in 2014 to MVR6.5 million (US$421,000) in 2015, the party said.

Yameen said the government has now established sea ambulance services in seven atolls and employed a gynecologist in all atoll hospitals except Vaavu Atoll. He praised the availability of unlimited healthcare under the Aasandha national health insurance scheme.

On December 15, Defense Minister and acting health minister Mohamed Nazim met with Chinese People’s Liberation Army’s Special Commissioner Major General Kung Lee to discuss the technical expertise needed to establish sea ambulance services in the Maldives.

Yameen said the government’s priority is to establish a pharmacy through the state wholesaler State Trading Organization (STO) on every island. 57 pharmacies have been established this year alone, the president noted.

“If there is a pharmacy in every atoll, I find it easy to sleep at night. The government will provide the essential medicines. I am assured that citizens would get their required medicine at controlled prices,” Yameen said.

Former Health Minister Dr Mariyam Shakeela has previously highlighted the abundance of of counterfeit pharmaceutical products in the country as a challenge to the health sector.

Yameen last night said the Raa Atoll Regional Hospital, which caters to 15,000 people, will provide similar level of services available in capital Malé,

The hospital now has 12 specialist doctors as well as dentistry and dialysis units, explained Nazim.

President Yameen also criticised MDP’s rejection of the 2015 budget as “irresponsible,” and noted that Raa Atoll Alifushi MP Mohamed Rasheed had voted against the budget despite several development projects budgeted for his constituency.

“I would like to note, the MP rejected the budget despite development projects being budgeted for [the Alifushi] constituency. Citizens must know this,” said Yameen.

The MPs’ rejection of the entire budget is an indication they do not want development for their constituencies, Yameen said.

The MDP rejected the budget after the PPM had failed to back the party’s budget recommendations including allocating MVR100 million (US$6.4 million) and MVR75 million (US$4.8 million) respectively to provide subsidies for fishermen and farmers.

Other proposals included adding persons with disabilities and single parents as categories eligible for government subsidies to the poor and requiring the finance ministry to submit quarterly reports to parliament concerning the implementation of the budget.

The PPM did, however, scrap plans to impose a 10 percent import duty on staple foodstuffs and oil as advocated by opposition party.

Yameen last night said the government has built a harbour, and established complementary solar panel systems and a waste management system on Ungoofaaru this year.

In 2015, the government will establish a rainwater harvesting and storage system, build roads, renovate the football field, construct a sports arena on the island, and establish a new police station on the island, the president added.



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Mega Maldives US$99 return tickets to Malaysia sell out in two hours

Return tickets to Malaysia priced at US$99 by local airline Mega Maldives sold out in less than two hours today.

The airline told local media that 99 tickets at the promotional price sold out shortly after it went on sale at 9:00am this morning.

The promotion offered travel to Malaysia on December 26, 27, and 31 with a return date before January 20.

Customers reportedly began queuing outside the Mega Maldives office as early as 1:30am last night.

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Authorities investigating Facebook adoption advert

Police have confirmed they are investigating reports that a woman in Laamu Atoll used Facebook to announce her one-week old baby was up for adoption.

Local media have reported that the Facebook post – since taken down – said it was “a golden opportunity for anyone who wished for a cute, cute baby girl.”

While Minivan News was unable to obtain comment from the Ministry of Law and Gender today, local media was told that the ministry was also looking into rights of the child having been violated.

“Ministry has set up special procedures and ways in which a child can be put into the care of another, in cases where parents are unable to look after the child. Or for the child to be taken immediately into State custody,” Deputy Gender Minister Shidhatha Shareef told Haveeru.

Local NGO Advocating the Rights of Children (ARC) explained that cases of adoption are very rare in the Maldives, and so there is no clear legal framework such proceedings.

Minivan News has been told previously that the Maldives has no formal adoption procedures, with courts instead permitting permit a long-term guardianships – normally by extended family members.

While officials from Maavah Island Council told Haveeru that the gender ministry had been notified when the woman gave birth on December 11, though the ministry said it had not been notified that the family did not have resources to look after the child.

The child was reportedly born in the health center on the island, which has a population of 1,270.



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Chief justice and police commissioner discuss police obstruction and assault cases

Chief Justice Abdulla Saeed and Commissioner of Police Hussein Waheed met on Thursday and discussed measures to expedite cases involving assault of police officers and obstruction of police duty.

According to a statement by the Maldives Police Services, Saeed pledged to take the necessary steps and said law enforcement officers must receive due protection and security.

Appreciating the service of policemen, Saeed said the nation came first before the individual, and said the Supreme Court bench would not engage in any act that may cause harm to the Maldives.

Waheed said “attacking law enforcement officers is a crime in civilized countries,” and spoke about the need for expediting cases involving attacks on police officers.

Hundreds of individuals were arrested from protests on charges of obstruction of police duty and assault of police officers during the anti-government protests following the controversial transfer of power in February 2012.

An individual found guilty of the offense may be fined up to MVR12,000 (US$778) and/or sentenced to six months in jail.

According to statistics published by the Prosecutor General’s Office, in 2013, 101 individuals were charged with obstruction of police duty. In 2012, 65 individuals were charged with obstruction of police duty and 59 were charged with assaulting a police officer. Figures were not available for 2014.

The police have not published statistics on the number of individuals arrested on these charges.

According to the police statement, Saeed and Waheed also discussed measures to reduce crime rates in the Maldives.

Saeed was appointed as the Chief Justice following the controversial and sudden dismissal of former Chief Justice Ahmed Faiz and Justice Muthasim Adnan after a People’s Majlis amendment to the Judicature Act reducing the seven-member Supreme Court bench to five judges.

Supreme Court Justices Ali Hameed and Dr Ahmed Abdulla Didi and Deputy Commissioners of Police Ahmed Saudhy and Mohamed Sodiq also participated in the meeting.

Meanwhile, Prosecutor General Muhthaz Mushin has requested the police speed up investigation in cases involving arrest from unlawful protests and submit charges for prosecution within 48 hours.



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STO hands over biomedical equipment worth US$900,000 to the health ministry

The State Trading Organisation (STO) has handed over biomedical equipment worth US$900,000 to the health ministry.

Yesterday (December 20) STO Managing Director Adam Azim handed over 1500 pieces of equipment including patient monitors, ECG machines, defibrillators, and vital sign monitors to acting health minister Mohamed Nazim at a ceremony at Nasandhura Palace Hotel.

The shipment is the first in a US$4million venture to provide all necessary equipment to all the hospitals and health centers in the Maldives.

As the STO marks its 50th anniversary this year, the company has expanded its services in the islands, launching an ambitious programme along with the health ministry to provide ambulances and establish pharmacies on every island.

The government intends to establish ambulance services in all 196 inhabited islands by June 2015, Nazim has said. The STO has been commissioned to buy 54 ambulances worth US$2.5 million.

Basic Services

Speaking to the press on the STO’s anniversary yesterday, Azim said the company’s most significant success is that it has consistently provided Maldivian citizens with fuel, staples, and pharmaceuticals.

The state-owned STO is the country’s primary wholesaler, responsible for bringing in the vast majority of basic foodstuffs such as rice and flour, as well as other imported commodities such as electrical goods.

Azim told Haveeru last week that the STO’s US$114 million (MVR1.7 billion) debt was unprecedented, but that US$51 million had been paid off during his tenure as a result of reductions in expenditure. He pledged to pay off the remaining debt within three years.

According to quarterly reports, the STO earned MVR325.6 million in profits in this year’s third quarter from MVR2.1 billion worth of sales after earning MVR64.2 million in the second quarter.

Documents were confiscated from the organisation’s head office late last month, however, with the Anti Corruption Commission alleging illegal payments for advertising.

In September, Azim also launched a programme to increase national spirit among his staff. The STO workday now starts with the national anthem. The national flag is to be hoisted at all STO buildings and now adorns STO uniforms and staff cards.

The company has announced a sale in all of its 13 stores on the occasion of it’s 50th anniversary. A lucky draw with MVR200,000 worth of prizes will also be held.

Pharmaceuticals, construction materials, oil

Under the programme to establish pharmacies on every island, the STO opened up its 48th pharmacy in Kaafu Atoll Guraidhoo last month. Customers will get Aasandha healthcare coverage at all the pharmacies.

Over 1000 pharmacists – or five individuals from each island – will be trained for the newly opened facilities under an agreement with the education ministry, Azim has previously announced.

President Abdulla Yameen, speaking in Haa Alif Horafushi in November, said the new pharmacies would provide medicine at controlled and reduced prices, acknowledging that the move would affect private businesses selling medicine.

Yameen’s comments came in response to a complaint filed by Shaviyani Atoll Council at the People’s Majlis in which councillors said the STO’s pharmacies would shutdown pharmacies run by the island councils in various islands in the atoll.

The councils’ pharmacies had been established through an atoll trust fund and were among the most profitable businesses in the atoll, said the council, arguing that their closure would impact the atoll council’s MVR1.3 million social sector programme.

The Majlis threw out the petition, however, asking councilors to resolve the matter with STO.

The STO decreased oil prices for the second time in response to falling global prices last week. A litre of petrol was reduced by MVR1 and 75 laari was reduced from a litre of diesel.

The Housing Development Corporation has awarded the company with an 800 square foot plot of land near the ferry terminal in Hulhumalé for the establishment of a fuel shed, making Malé rates available to residents from next year.

The STO closed the popular Al-Fresco café at the STO Trade Center in early November to expand its supermarket, while the company also held a career guidance fair for youth in mid-November to increase awareness of opportunities available at the STO and its subsidiary companies.

In September, an agreement was signed with Maldives Association of Construction Industries to provide cut-price construction material for government projects in an attempt to restart stalled work.


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