Hilath Rasheed attack “nothing to do with religious extremism”, government claims

The Maldives government has told international media that an attack last month on prominent blogger Ismail ‘Hilath’ Rasheed was the work of “rival gang members”and not religious extremists as alleged by the victim.

Rasheed – a controversial figure in the Maldives for his willingness to tackle taboo subjects, particularly religious tolerance – was left in a critical condition after being stabbed in the neck near his home in Male’ last month.

Having since fled the country, Rasheed has told the Agence France-Presse (AFP) news service that he believed the attack, which literally silenced him temporarily after his trachea was sliced clean through, was conducted by extreme religous elements in the country.

“I was attacked because I advocate secularism. The Islamists want Maldives to remain a 100-percent Islamic country,” he stated in an interview the AFP said was conducted through Twitter and email.

However, the government hit out at the blogger’s accusations when contacted by the AFP, claiming Rasheed was targeted for an attack due to gang rivalry, not because of “religious extremism” or the focus of his blog and journalism.

“He is a member of a gang and had been attacked by rival gang members in the past too. It is unfair to blame this attack on anything else,” President’s Office Media Secretary Masood Imad told the news service.

When contacted by Minivan News today the Maldives Police Service said that investigations were continuing into the case and it was therefore unable to say if there was a specific motive behind the attack.

“So far we do not have a suspect,” Police Spokesperson Sub-Inspector Hassan Haneef said.  “We are continuing to investigate and are tracing CCTV camera footage in attempts to locate the culprit.”

Despite the government’s insistence that there was no religious motivation behind the attack on Hilath, in a previous interview with the AFP, the recently appointed Minister for Human Resources Mohamed ‘Mundhu’ Shareef said that, “Hilath must have known that he had become a target of a few extremists.”

“We are not a secular country. When you talk about religion there will always be a few people who do not agree,” Shareef said whilst condemning the attack.

“Idealogical problems”

Speaking to Minivan News in June, Maldives Islamic Affairs Minister Sheikh Mohamed Shaheem Ali Saeed said the current government was seeking to counter the “ideological problems” of extremism in the country.

Shaheem claimed that the threat of home-grown terrorism was a key issue needing to be addressed in the Maldives – something he alleged the previous government had neglected to assist with through proper funding.

Rasheed himself has contended that both the administrations of former President Mohamed Nasheed and serving President Dr Mohamed Waheed Hassan have shown little interest in prosecuting figures alleged to have conducted religious threats and attacks in recent months – regardless of the number of photos and witnesses.

Aside from last month’s attack, on December 14 Rasheed was taken to hospital with a fractured skull after being attacked during a ‘silent protest’ advocating religious tolerance in the Maldives held to coincide with Human Rights Day.

He was subsequently arrested for questioning over his involvement in the silent gathering, and the Criminal Court granted police a 10 day extension of detention for the investigation.

Later that month, Amnesty International declared Rasheed a prisoner of conscience, and called for his “immediate and unconditional” release, which was granted in January.

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EXIM Bank of China offers US$57 million loan for IT infrastructure overhaul

The state-owned EXIM Bank of China has offered the Maldives a US$57 million (RF878 million) loan to assist the development of IT infrastructure in the country, Minister of Communication Dr Ahmed Shamheed had told local media.

Dr Shamheed yesterday confirmed that the funding, which can be paid back over a 20 year period, would still require approval by the People’s Majlis under next year’s budget. If approved, he told local newspaper Haveeru that the “majority” of the loan would be spent on building a new 15-storey government office designed partly to house new national IT projects.

Shamheed was not responding to calls from Minivan News at the time of press.

Speaking yesterday, the communication minister claimed that projects including the introduction of so called “smart cards” – proposed as an all-in-one driver’s license, identity and an ATM card – and a high definition (HD) video conference network would be set-up with the loan.

Shamheed told Haveeru that the projects would be undertaken by the Centre for Information Technology (NCIT), as part of wider plans to connect government authorities through a single IT network.

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MJA condemns MDP for “obstructing” reporters, appeals to journalists to refrain from political activism

The Maldives Journalist Association (MJA) has condemned the opposition Maldivian Democratic Party (MDP) for “obstructing” reporters and appealed for media representatives to refrain from taking part in opposition protests.

The MDP has held regular street protests in recent months calling for early elections, alleging former President Mohamed Nasheed was ousted in a “coup d’état” on February 7, 2012.

In two separate press releases titled “MDP obstructing journalists” and “Political parties are using reporters as weapons,” the MJA said it had received reports of the arrest of two reporters on Monday.  The association  claimed the confrontation occurred between police and reporters when journalists had violated their code of ethics.

Police claim the two reporters were arrested for obstructing police duty. However, private broadcaster Raajje TV’s News Head Asward Ibrahim Waheed said he was arrested while attempting to cover a policeman beating an unarmed protester.

Video footage of Waheed’s arrest appears to show several police officers running at and surrounding Waheed as another officer held a protester down and beat him on the ground a few feet away. Waheed told Minivan News the police had grabbed his neck, twisted his arm and thrown him to the ground.

Raajje TV released a statement today claiming police harassed, verbally abused and used disproportionate force against its reporters.

“The station views these targeted attacks as calculated and planned to destroy press freedom in the Maldives,” the statement said.

The MDP has also condemned “the constant intimidation and discrimination of opposition media by Police operating at the protest areas.”

Code of ethics

The MJA said it had received reports of protesters obstructing journalists and reports of security forces also detaining reporters during demonstrations held on Sunday and Monday.

The association claimed confrontation between security forces and reporters occurred when journalists had acted as “political activists”. The MJA said it continued to hold concerns over journalists violating their code of ethics by taking part in protests.

“We note with concern confrontation occurs between security forces and journalists, often resulting in physical injury when journalists fail [to adhere by their code of ethics],” the press release said.

Hence, the association appealed to journalists to refrain from becoming “political tools” and called on political parties “not to use reporters as political tools.”  The MJA also called on the government and security forces to ensure an environment conducive to independent journalism.

In cases where a journalist is arrested, the MJA has asked for such incidents to be reported to the Maldives Media Council and the Maldives Broadcasting Commission in order to “increase trust and strengthen relationships between the media and reporters.”

Targeted Attacks

Meanwhile, Raajje TV has claimed the station’s reporters had received “various forms of harassment and verbal abuse from the Maldives Police Service” as they attempted to cover MDP’s protests held in Male’ yesterday (July 9).

“It was ardently clear the Maldives Police Service were discriminating against Raajje TV journalists and cameraman,” the statement read.

Police attempted to prevent coverage of the protest, “viciously attacked Asward Ibrahim Waheed” and arrested him in a most “degrading and inhumane manner,” the station alleged.

When the station’s cameraman attempted to film Waheed’s arrest, the police attacked the cameraman and “maliciously damaged” the station’s equipment, Raajje TV said.

“Raajje TV journalists have been forced to live in fear as they have increasingly become targets of attacks by the national security forces, particularly the police service. The station also believes that these attacks and harassment has been the source of emotional distress and psychological damage to all Raajje TV employees,” the statement added.

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Civil Aviation Authority investigation under-way over capsized seaplane

The Maldives Civil Aviation Authority (CAA) has confirmed that an investigation is presently taking place into an incident that saw a Trans Maldivian Airways (TMA) seaplane capsized near to the Conrad Maldives Rangali Island resort yesterday.

CAA Chief Executive Hussain Jaleel told Minivan News today that no one had been injured in the incident, which had resulted in some structural damage.

“We are investigating the matter right now,” he said. “There are reports of some structural damage so we are required to do this, but there have been no injuries recorded.”

When questioned as to whether the incident may lead to a wider review of current seaplane procedures in the Maldives, Jaleel said that it was not possible to say without the report’s conclusion.

“Let’s see what the report finds first,” he added.

Citing an unidentified contact who claimed to be present on the resort at the time, newspaper Haveeru reported yesterday that the incident occurred after a propeller on the seaplane’s left side struck a platform. The collision was reported to have broken a pontoon and resulted in the aircraft then capsizing.

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Maldives to compete in Nehru Cup football tournament next month

The Maldives is anticipated to be the only South Asian representative in an international football tournament to held next month in India, local media has reported.

The Football Association of Maldives (FAM) is reported to have accepted an invite to compete in the Nehru Cup football tournament that will be held in New Delhi from August 23 to September 2, according to newspaper Haveeru.

To accommodate participation in the tournament by local players, the FAM has said it will look to reschedule matches in the country’s domestic Dhiraagu Dhivehi league to allow Hungarian coach Istvan Urbanyi and the Maldives national team time to prepare.

Haveeru has reported that the tournament, which has last held back in 2009 and won by India, will see the Maldives compete against a number of international teams including Syria, Jordan, Cameroon, Nigeria, Thailand, Costa, Zambia and Malaysia.

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Islamic Ministry receives Rf14.8 million in public donations for mosque repairs

The Ministry of Islamic Affairs yesterday announced that Rf14.8 million (US$963,500) has been raised through public contributions to aid repairs of mosques across the country.

The ministry yesterday told media that Rf2,645,000 (US$171,530) had already been spent on repairs.

Minister of Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed stated that the ministry had already begun repair work at 60 mosques as part of wider plans to renovate some 100 mosques around the nation.

Sheikh Shaheem added that additional funds were already on their way, with the ministry expecting to raise over Rf 15 million for the proposed repair work.

Shaheem also stated that the ministry has completed draft legislation designed to regulate the collection of alms (Zakat) and urged the general public to keep paying these funds despite the introduction of taxes.

“I call upon the general public to engage in giving alms. I believe that the existing laws for taxation have a mechanism to deduct the amount from tax money that has been given to alms,” he said. He further added that he would try to ease the procedure of re-imbursement of the money by contacting the relevant authorities.

The Islamic Ministry also revealed that from money collected as alms, Rf26 million has been spent last year to help the poor and the needy.

Shaheem claimed that about 490 parties have been provided with financial assistance from alms money to cover accidental losses and medical costs for procedures such as dialysis.

Aside from the assistance given to the general public, Shaheem also stated that the money collected was used to provide funding for students pursuing higher education both in the country and abroad.

“Previously the funds were used to provide books and stationary for the needy, but now that government provides it free for all students, we have decided to spend that money for higher education. This practice has been carried out in several Islamic countries,” he said.

The ministry also announced that it had opened up opportunities to apply for grant aid for students pursuing higher education in the Maldives. Shaheem said there was already a “long queue of students that are present to apply for the aid”

Also speaking at the press briefing, Minister of State for Islamic Affairs Ahmed Abdulla Didi claimed that the ministry had worked hard of late to build religious awareness amongst the public – with a specific focus on young people.

“As you would know, there are several grievous crimes committed in the society, we have made it a priority to work more on building religious awareness amongst the youth,” Didi said.

He added that the ministry was working on publishing and distributing pamphlets to build religious awareness among the youths as well as translating several Arabic books to Divehi.

He further added that the Islamic ministry is also conducting sermons across the country on religious awareness, including at rehabilitation centres and schools.

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“Radical Islam” undermining Maldivian civil rights: Helios Life Association

“The growing political and institutional influence of radical Islamic groups has undermined the Maldives’ progress towards realisation of rights guaranteed under [The International Covenant on Civil and Political Rights (ICCPR)]”, according to a report compiled by the Helios Life Association (HLA) NGO.

The claims were made in a report entitled: “Maldives: Sudden Reversals in the Implementation of ICCPR Commitments”, which alleges an “alarming increase” in the violation of human rights outlined within the ICCPR that was adopted by the Maldives back in December 2006.

The report by HLA – a non-profit NGO from Switzerland- will be among several documents submitted to a hearing of the UN Human Rights Committee (UNHRC) in Geneva on Thursday (July 12).

The UNHRC has already identified key issues to be taken up with the Maldives concerning its commitments to the ICCPR. A document outlining these issues – drawn from the country’s Universal Periodic Review (UPR) (with submissions from government, HRCM and civil society), was published in August 2011 – prior to the controversial change of government and fresh allegations of police brutality and attacks on journalists.

The government of President Dr Mohamed Waheed Hassan, which came to power through a controversial transfer of power on February 7, responded to the list of issues earlier this month, ahead of its session with the committee this week.

Representatives of the Waheed administration including  Home Minister Dr Mohamed Jameel , State Minister for Foreign Affairs, Dunya Maumoon and the Maldives’ Permanent Representative in Geneva, Iruthisham Adam, will be present during Thursday’s session to discuss the country’s human rights commitments.

ICCPR in the Maldives

In discussing the role of the ICCPR and human rights issues in the Maldives, the HLA report said that a new constitution adopted in the country on August 8, 2008, paved the way to implement “most of the rights” outlined in the covenant.

However, the report did note some exceptions to the ICCPR, including sections of Article 18, – “Everyone shall have the right to freedom of thought, conscience and religion” – that it alleged had directly impacted a number of other articles in the covenant.

“The fall of the old autocratic regime following the first free and fair elections in the Maldives in October 2008, provided a further boost in the observation of the rights protected under the Covenant,” the report claimed. “An example of this was the agreement during the Maldives’ Universal Periodic Review (UPR) to address a number of concerns relating to non‐compliance with Article 18.”

In responding to issues raised with the UN on the right to freedom of thought, conscience and religion, the Maldives government said that “the reservation states that the application of the principles set out in article 18 will be without prejudice to the Constitution of the Maldives. Chapter II of the Constitution on fundamental rights and freedoms does not include, among the rights guaranteed, freedom of thought, conscience and religion.”

The HLA report also highlighted “concerns relating to the competence, independence and impartiality of the judiciary,” an issue central to the events leading up to February’s transfer of power following the controversial detention of a serving Criminal Court Chief Judge. The detention saw former President Mohamed Nasheed’s government criticised around the world.

December 23

Drawing attention to what the report called the “institutional influence of radical Islamic groups”, HLA claimed that the law on Religious Unity, implemented back in September 2011 under the Nasheed administration, had impinged on parts of Article 19 of the ICCPR relating to human expression.

“This growing radicalisation resulted in the creation of a coalition of political parties in December, called the 23rd December Coalition for the Defence of Islam. As well as extremist religious elements, the 23rd December Coalition comprised of a range of political groups and individuals linked to the country’s former autocratic leader, Mr Maumoon Abdul Gayoom,” the findings added.

“The Coalition had been formed in direct opposition to the observance of international human rights law, particularly to the undertaking given at the UPR process that a national debate will be held on ending forms of punishment not consistent with Article 7.”

HLA also drew attention to the visit of the UN High Commissioner for Human Rights Navi Pillay to the Maldives and calls she made for debate on the issue of public floggings, particularly for women. The calls were derided by the December 23 coalition at the time.

“The [December 23] Coalition proceeded to carry out a coup d’etat on February 7, which was executed by elements of the army and police loyal to Mr Gayoom, his close allies and former members of his government, and other parts of the 23rd December Coalition, following a call by the then Vice‐President, Dr. Mohamed Waheed, to ‘defend Islam and the Constitution’”, the report alleged.

“The coup saw elements of the police and army threaten the Maldives’ first democratically‐elected President, Mr Mohamed Nasheed, his family and colleagues from the ruling Maldives Democratic Party (MDP), with physical harm or worse unless he resign by a certain time.”

Dr Waheed has always denied accusations that his coalition unity government came to power illegally, claiming his appointment to the presidency was constitutionally mandated upon the resignation of former President Mohamed Nasheed.

Shortly after his resignation, Nasheed contended that he had been forced to resign under duress – calling for fresh elections.

“Undue control”

Since February’s transfer of power, the report added that former opposition parties involved in demonstrations and activities associated with the December 23 movement were now part of the coalition government, while only one major political party in the form of the MDP stood as opposition in parliament.

HLA’s findings alleged that the coalition now exercised “undue control” over the national judiciary, whilst occupying the executive and holding a combined parliamentary majority in the People’s Majlis.

“It also asserts undue influence over over‐sight bodies such as the Human Rights Commission (HRCM), the Police Integrity Commission and the Anti‐Corruption Commission (ACC). Consequently, the opposition and its supporters find themselves victimised without proper recourse to redress,” the report claimed.

HLA claimed that a “significant rise” in political violence had also followed the transfer of power amidst accusations that law enforcement agencies were not investigating crimes by bodies of gangs linked to government-aligned politicians, focusing instead on potential felonies committed by opposition figures.

“The perpetrators of these violent crimes remain at large whilst the courts are filled with political protesters who face criminal charges,” the report added.

Public order

In looking at the present government’s commitments to freedom of assembly, freedom of speech and freedom of expression, the report noted that “legitimate public order concerns”  regarding ongoing demonstrations had been raised during a series of All Party Talks that last convened back in June. However, HLA claimed that a number of other issues raised during the talks appeared to target negating certain “fundamental rights” in this regard.

“It has become routine, once again, for the president and senior members of the government to equate dissent with terrorism, as in numerous public speeches made by the president,” the report stated.

HLA added that allegations of torture as well inhuman or degrading treatment were also on the increase following February’s political upheavals, pointing to claims made by female anti-government protesters.

As well as the use of high power water canons by police during March 2012, allegations were also raised by that some women had been sexually molested or suffered other “degrading punishments” following arrest in the first few months following the transfer of power.

The allegations in the report were based on testimonies from several women aged between 22 and 49 years of age.

Meanwhile, HLA’s findings claimed that the issue of debating flogging, a practice also conducted during Nasheed’s administration, had been deemed by MPs, the judiciary, local NGOs and representatives of the former government as “unconstitutional”.

“On November 25, 2011, the Chief Justice himself publicly rejected a call to implement the commitment given during UPR with regard to ending flogging as a form of punishment,” the report claimed.

The present government has responded that, while corporal punishment was not explicitly prescribed in the penal code, it was administered for “certain offences prescribed in Sharia.”

“The government is, however, looking at ways to ensure that the punishment is not applied in a discriminatory manner. At present, women are far more likely to be publicly flogged than men – mostly because of outdated court procedures such as reliance on confessions rather than forensic evidence – though as noted above this is changing,” the Waheed administration stated in its official response to the UN.

Arbitrary arrest

Considering Article 9 of the ICCPR, which relates to “liberty and security of person” and the prevention of arbitrary arrest or detention, the report also discussed the actions of the Maldives National Defence Force (MNDF) under the Nasheed administration to seize Criminal Court Chief Judge Abdullah Mohamed.

The detention, which the the government claimed had been made over concerns about “national security” owing to allegations that Judge Abdullah was involved in perjury and “blatant collusion” with the previous administration, was widely criticised by international bodies at the time.

Since February, the HLA claimed that some 400 protesters had reportedly been “arbitrarily detained”.

“There is serious concern that nearly everyone who has been charged is facing fabricated charges. A pattern has developed whereby people are arrested without any explanation being given as to the grounds of their detention,” the report claimed. “They are then asked to provide a urine sample and accused of having taken drugs or drunk alcohol. They are also often presented with a pre‐prepared confession and asked to sign it. All of this takes place while the detainees are denied access to a lawyer. “

Judiciary

HLA also stressed concerns over a “lack of independence and professionalism” within the country’s judiciary, which was claimed to be setting back the country’s obligations under the ICCPR.

Along with criticisms of the effectiveness of watchdog body, the Judicial Service Commission (JSC) – particularly in the regards to Criminal Court Chief Judge Adbullah Mohamed – the capacity of the country’s Supreme Court was also questioned.

“The Supreme Court of Maldives consists of seven judges. Six of whom, including the chief justice, are only trained in sharia law,” stated the report. “They do not have a well‐grounded understanding of international human rights law. They have articulated positions that are contrary to the fundamental rights guaranteed under the ICCPR.”

“Religious hatred”

HLA alleged that there had also been an increase in the reporting and incitement of acts of “religious hatred” including anti-Semitism.

The NGO’s report pointed to incidents including attacks on participants of a silent protest calling for religious freedom in December 2011. One of the participants attacked in December, Prominent Maldivian blogger and journalist Ismail ‘Hilath’ Rasheed, was stabbed in the neck just last month before fleeing the country after partly recovering from his injures. He later alleged the attack was the work of Islamic radicals.

HLA also singled out the publication of a pamphlet by the Dhivehi Qaumee Party (DQP), whose members now hold some senior government positions, entitled: “President Nasheed’s devious plot to destroy the Islamic faith of Maldivians” and an attack on pre-Islamic period Maldivian artefacts in a Male’ museum as further examples of the spread of religious hatred.

“In January 2012, efforts by the police to investigate incitement to religious hatred were blocked by the Chief Judge of the Criminal Court Abdulla Mohamed, triggering a sequence of events that resulted in the displacement of the elected government by the members of the December Coalition in a coup d’etat,” the report added.

Media freedom

Helios reported that despite a period of “relative improvement” in the right to freedom of expression in the country, there were concerns that such developments had been set back in recent months.

“After a period of relative improvement in the right to freedom of expression, there has been serious retraction in this regard in recent months. Subsequent to the coup, there has been harassment of journalists and media outlets that criticise the new Government,” the report alleged. “This has led the UN Special Rapporteur on the right to freedom of expression to place the Maldives on his watch-list of countries where there has been a rise in harassment and attacks against journalists.”

Aside from reports of sections of the police and military seizing and re-branding state television and radio on February 7 without any judicial warrant, concerns were also raised that artists, musicians and users of social networking websites allegedly continue to face threats from law enforcement authorities for expressing dissent against the government, the report added.

“The president, speaking on 24 February 2012, branded those who ‘defame the Government’ as ‘traitors’. His Press Secretary, Mr Abbas Adil Riza, has condemned on several occasions those who have called for international sanctions on regime leaders,” the report claimed.

HLA also raised issue with claims that the Ministry of Education back in March issued a “compulsory directive” for curriculum textbooks to class the transfer of power as a legitimate act – without the conclusion of a Commission of National Inquiry (CNI) set up by the government to probe the circumstances of February 7.

The Waheed administration has nonetheless denied the harassment and intimidation of journalists. Instead, it contended that “media freedom has remained steady with the constitution protecting freedom of expression but also restricting freedom of speech contrary to the tenets of Islam.”

While the government blocked websites controversial to Islam, it “is working to ensure the media is free to tackle any subject. It was by the current administration of President Dr Waheed Hassan who took office in February 2012 that Maldives National Broadcasting Corporation was handed over to the Parliament-created Maldives Broadcasting Corporation that had ended executive control of the media.”

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Two journalists among 23 arrested in continued MDP protests

Police arrested two journalists during continued protests by Maldivian Democratic Party (MDP) supporters in Male’ today.  The Maldives Police Service later released the head of news for private TV station Raajje TV Asward Ibrahim Waheed a few hours after his arrest. Ali Naseer, a journalist from Cable News Maldives (CNM), continues to remain in police custody – though is expected to be released soon.

A police official confirmed to Minivan News this evening, that the journalists, who were carrying identification, had been temporarily apprehended for “taking part” in the demonstrations.

The two journalists are among a total of 23 people to have been arrested during protests conducted this week at Republican Square in Male’. The protests, which began yesterday involving a few hundred people, have continued into this evening.

The MDP has held frequent demonstrations calling for early elections alleging President Mohamed Nasheed was ousted in a coup d’état on February 7.

Speaking to Minivan News, journalist Asward Ibrahim Waheed claimed he was arrested by police while attempting to cover footage of police beating a protester. Video footage of Waheed’s arrest posted on the internet appears to show the journalist running towards a police officer and a man in plain clothes as they hold down and beat a protester on the ground. Several police officers then rush at and surround Waheed.

“They came at me and one police officer grabbed me by the neck. They then twisted by arm around and threw me to the ground,” Waheed told Minivan News.

“They were very verbally abusive. They said we have been waiting to get hold of a Raajje TV journalist, arrest him! I don’t have visible injuries, but my neck and arms hurt,” he said.

Rajje TV regularly broadcasts live footage of MDP protests.  The broadcaster’s journalists have previously accused police of physical assault and harassment following the transfer of power. Meanwhile, CEO of Raajje TV Akram Kamaldeen has claimed in local media that Tourism Minister Ahmed Adheeb assaulted him last Thursday (July 5).

Heckling

Minivan News today observed MDP members heckling police across temporary barricades erected at the Republican Square. Protesters mobbed several police and military officers on motorbikes as they attempted to drive through the crowd gathered at the barricades.

In an official statement, police said all the arrests made related to people breaking through police barricades and obstructing officers from their duty.

Police also alleged that protesters damaged the Auditor General’s car at 9:00am.

“We will take necessary action if the MDP continues to shout and disturb the peace after 12:00 am tonight,” police said.

In addition to the 23 people detained today during the protests, police yesterday arrested 18 individuals.

The MDP has subsequently released a statement condemning the arrests claiming police were arresting peaceful protesters and impeding freedom of expression and freedom of assembly.

“We call for the immediate release of all those arrested against the law,” the statement said.

The protest was continuing at time of press.

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Government must seek Majlis approval on Rf 300 million BML loan: Finance Committee

The government must obtain parliament’s approval on a Rf300 million (US$ 19.5 million) loan borrowed from the Bank of Maldives (BML) in May, People’s Majlis Counsellor General Fathmath Filza today told the Finance Committee.

The government had previously told local media the the BML loan was borrowed instead of US$65 million loan programme previously approved by the Majlis for budget support, and contends further approval from parliament was therefore not required.

However, Filza told the Finance Committee the US$65 million loan was only to be borrowed from foreign lenders and that the government has to seek parliamentary approval before borrowing from a local bank as per the Public Finance Act.

The Finance Committee has decided to forward the loan request to the Majlis floor for approval.

The opposition Maldivian Democratic Party (MDP) has submitted a resolution to the Majlis floor and to the Finance Committee to take action against the government for borrowing from BML at commercial interest rates without parliamentary approval.

Meanwhile, Dhivehi Rayyithunge Party (DRP) MP and deputy chair of the Finance committee Mohamed Nashiz has also raised concern over unapproved borrowing. “It’s a big issue that the government took out a loan without Majlis approval,” Nashiz said.  The DRP is represented in the coalition unity government of President Dr Mohamed Waheed Hassan.

Finance Minister Abdulla Jihad told Minivan News today the Rf 300 million loan, which he claims was borrowed at an interest rate of nine percent, was already in use.

“The loan had to be obtained urgently. The Indian government had pledged US$ 25 million as budget support, and when the money was not realized we had difficulties with the cash flow,” Jihad said.

However, Jihad said the government would respect the Finance Committee’s recommendations and submit “what is required of us to the Majlis for approval.”

This year’s budget deficit is estimated to surpass Rf9 billion (US$584million), around 27 percent of GDP.

The International Monetary Fund (IMF) in April has warned that economic growth and stability may be at risk in the medium term due to the large budget deficit and increase in expenditure.

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