Finance Minister announces plans to revise import duties, GST

Finance Minister Abdulla Jihad has announced the government intends to revise changes made to import duties and the Goods and Services Tax (GST), reports Haveeru.

Jihad is said to have explained that the revisions to import duties, initiated by the previous administration, have “not even come close” to covering the cost of income lost after reductions to import duties.

Haveeru reports that the Rf2 billion the state had previously earned from import duties had been halved whilst the GST earnings had not made up the shortfall as anticipated.

Jihad told Haveeru that the government was continuing to engage in deficit reduction measures which will include reducing state expenditure by 15 percent whilst raising Tourism Goods and Services Tax (TGST).

The current budget deficit has been estimated by the Majlis Financial Committee to be 27 percent of GDP this year – Rf9.1 billion (US$590 million).

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Cabinet to merge thalassaemia services

At yesterday’s cabinet meeting, the decision was made to combine the services provided by the National Thalassaemia Centre and the Blood Transfusion Centre in a new body entitled the Maldivian Blood Services.

The government has yet to disclose further details about the proposed organisation.

Maldivians suffer the world’s highest rate of the blood disorder, with 18 percent of the population registered as carriers. The illness causes severe anaemia in sufferers and requires regular blood transfusions.

On World Thalassaemia Day, May 8, the Maldivian Thalassaemia Society (MTS) released a statement criticising the unequal treatments available to Thalassaemia sufferers who live outside of the capital, Male’, where the National Thalassaemia Centre currently provides transfusions.

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Amnesty “deeply concerned” over continued police repression of protesters

Amnesty International has called on the Maldives government to halt the use of excessive force against demonstrators, and urged the international community to continue closely monitoring the situation.

In a statement released on Tuesday, Amnesty said it “condemns the excessive use of force by police personnel and urges the Maldives government to ensure a full and impartial investigation is conducted into such attacks. “

Amnesty urged the Commonwealth and UN “to monitor the situation very closely and press the government to ensure people can fully realise their right to protest freely.”

Amnesty’s statement follows its investigation of the police crackdown on a Maldivian Democratic Party (MDP) protest against the extrajudicial dismantling of the MDP’s Usfasgandu protest site on May 29 – a crackdown which included “beatings, pepper-spraying, and arrests. Those attacked include peaceful demonstrators, members of parliament, journalists and bystanders.”

Amnesty said that despite police claims to have used “the minimum required force to dismantle the area and arrest unruly demonstrators”, “it is clear that by far the majority of demonstrators were not using violence, and any such incidents cannot be used by police as an attempt to justify the ill-treatment of bystanders and those rallying peacefully.”

“Amnesty International believes that the police response to the demonstrations on 29 May was a clear example of excessive use of force.”

Amnesty’s statement included testimony from a number of protesters, noting that the latest reports “are consistent with many other testimonies Amnesty International has gathered previously. “

“One woman protesting peacefully in Majeedee Magu Street told Amnesty International that police officers suddenly pushed into them, and hit her and other peaceful demonstrators with their riot shields. Police hit them repeatedly on their back, and then pepper-sprayed them, aiming at their face and eyes. She said that police grabbed one demonstrator by the neck, shouted at him to open his mouth, and sprayed directly into his mouth,” the human rights organisation reported.

“Police also beat bystanders who showed no signs of violence. An eyewitness saw a man sitting on a stationary motorbike taking no active part in the demonstrations. Police went for him and hit him on his head with their batons. He lost consciousness. His friends took him to a nearby house where they arranged private medical treatment for him – they did not take him to hospital straight away as they were afraid he would be arrested.”

Mana Haleem, the wife of former Minister of Foreign Affairs Ahmed Naseem, was among those detained.

“She was walking home with her female friend in Majeedee Magu Street when police stopped them and began beating them repeatedly with their batons on their arms, back and hips before taking them in a van to the police station,” Amnesty stated.

“In her testimony Mana Haleem says: ‘I asked why we were being held, but received no answer. Later, they [police] told us it was because we had not obeyed their orders. We asked them how we could have disobeyed their orders if they had not given any, but they were not interested. I have bruises on my shoulder, my back and my hip.’”

MDP MP Imthiyaz Fahmy was also arrested: “he said police in Dhoonidhoo told him he was arrested for ‘disrupting peace’. The next day, in court, police stated that he had been detained for ‘physically attacking a woman police officer,’” Amnesty stated.

The organisation called on countries supplying police and military equipment to the Maldives, particularly pepper-spray, to ensure that the substance was not being used to commit human rights violations.

“Any country that knowingly supplies police or military equipment to a force that uses them to commit human rights violations is itself partly responsible for those violations,” Amnesty warned.

“Amnesty International is calling on the government of Maldives to halt attacks on peaceful demonstrators including beating and pepper-spraying; bring to justice any police personnel who have used excessive force; ensure that security forces in the Maldives receive comprehensive training on what constitutes human rights violations, which they should not commit.”

In response to Amnesty International’s statement, President’s Office Spokesperson Abbas Adil Riza observed that “there has always been a problem with police brutality in the Maldives, during the past three years as well.”

“We recognise the need to improve, but for this we need political stability and the MDP is not providing that,” he said, noting that the Police Integrity Commission (PIC) existed to hear such complaints.

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Quran teacher stopped teaching my daughter after MDP Coup Report, says Police Asst Commissioner

A female Quran teacher has refused to teach the 10 year-old daughter of Police Assistant Commissioner Hassan Habeeb, following the publication of the Maldivian Democratic Party (MDP)’s report into controversial transfer of power on February 7.

Speaking to Minivan News today, Assistant Commissioner Habeeb said that when his wife went to fetch their daughter from the Quran class, the teacher told her: ‘’We are not supporters of the coalition.’’

‘’My wife at first did not quite get what she said and asked her what she meant by that. The Quran teacher replied that she had stopped teaching the Quran to the children of police and Maldives National Defence Force (MNDF) officers, as she had seen and read what they had done on February 7,’’ Habeeb said.

He said when he and his wife talked to their daughter about it, they learned that the Quran teacher had not been teaching her daughter since the release of the MDP’s report.

‘’We knew from our daughter that the Quran teacher has been talking politics in the class,’’ he added.

Habeeb said he was “very saddened” by the incident and appealed to every one not to put politics in the way of such services.

‘’I have information that some doctors have also being differentiating among people of different political views, and it is very concerning,’’ he said. ‘’If this continues, this citizens will be split into groups.’’

He said this was a serious issue and it must be attended to immediately.

‘’Police and MNDF officers do not have any political views and we treat everyone equally, so people should not take us politically,’’ he added.

Minivan News was unable to contact the Quran teacher.

However she told newspaper Haveeru that the matter was her own personal business, and that she had stopped teaching Quran to not just one child.

According to the MDP’s report, then-Chief Superintendent Hassan Habeeb (now Assistant Commissioner), Assistant Commissioner Hussein Waheed, Chief Superintendent Abdulla Fairoosh, Chief Superintendent Ahmed Saudhy, Chief Inspector Abdul Mannan Yousuf, Inspector Mohamed Dhaudh, Superintendent Ahmed ‘two four’ Mohamed, Superintendent Mohamed Jamsheed, Sub-Inspector Azeem Waheed and SO Inspector Shameem were among the senior police officers who  pledged alliance to the then-opposition and facilitated the police mutiny.

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Bill to amend Judges Act ‘custom fitted’ for former Chief Justice, claim MPs

Maldivian Democratic Party (MDP) and some government-aligned MPs have claimed that the first amendment proposed to the Judges Act (act no. 13/2010) by the Progressive Party of Maldives (PPM) MP Dr Afrashim Ali, is has been “custom fitted” for former Chief Justice Mohamed Rasheed Ibrahim.

Rasheed was the Chief Justice and the President of the Council of Islamic Affairs during former President Gayoom’s administration.

The bill proposes to amend the article 26 of the act, which describes the reasons for declaring the seat of a judge vacant. However, MP Afrashim Ali proposed to change the context of the clause to replace it with privileges of a retiring judge. Afrashim was formerly a member of the Judicial Services Commission (JSC), the judiciary’s heavily criticised watchdog body.

If passed, the amendment would mean that the stated privileges would apply to all judges who failed to qualify as a judge or were retired from their seats under 285(a) of the constitution.

According to the amendment, the privileges entitled to the retiring judges include formal titles and a pension ranging from 33-100 percent of the wages received by a serving judge, depending on years of service.

Judges would further be entitled to a lump sum on their date of retirement, again based on years served on the bench, as well as security services, transport benefits, and medical insurance for the entire SAARC and ASEAN region, also applicable to the judge’s spouse.

During the debate, several MPs raised concerns over the bill and questioned the ‘real’ intention behind its submission by PPM MP Afrashim, at a time the country was facing a huge economic crisis.

Speaking during the debate, Independent MP Mohamed ‘Kutti’ Nasheed – who has been supportive of President Waheed’s government – spoke against the bill, claiming that it was a bill fashioned for a specific person: former Chief Justice Mohamed Rasheed Ibrahim.

“Now all those Judges who were disqualified after the new constitution was ratified claiming that they too are entitled to receive the same privileges  as those who are currently as serving judges. After two years, they are trying to again link to the past,” he said.

MP Nasheed also said that it was difficult to name Mohamed Rasheed Ibrahim on the parliament floor, but that if he continued to pursue benefits and privileges then he has no choice but keep on saying his name.

MDP MP Ahmed Hamza said that he believed there were some “unfair benefits” included in the bill, and that he did not believe retired judges should receive the same benefits as those currently serving on the bench.

“The bill says that a person who has served as a Judge for 30 years should get the same amount of money and privileges as a serving judge. That is unacceptable,” he said.

MP Alhan Fahmy, who recently defected to the Jumhoree Party (JP) from the MDP, said that it was disappointing to see bills being prepared to benefit those who had “hijacked” the judiciary for 30 years, without having provided any betterment or justice to the country.

“We are continuously seeing attempts to protect and find monetary benefits from the national budget by those who were with Maumoon Abdul Gayyoom during his 30 rule,” Fahmy said.

MDP MP Eva Abdulla said that before the parliament began speaking about privileges granted to retiring judges, priority must be given to the quality of judges currently in the courts. She claimed that the MDP government had planned to invest over Rf 300 million (US$19.45 million) improving the judiciary but was stopped after then opposition brought down the government in a coup d’état.

However, PPM MP Ahmed Nihan spoke in favor of the bill, and stated that such privileges should be given to retiring judges and that even if it was targeted for former chief Justice Mohamed Rasheed Ibrahim, he would still support it.

“As a chief justice, as a former Minister of Justice, [Mohamed Rasheed Ibrahim] has done a lot of work for the country. We can’t simply abolish the value of his service,” Nihan said

Speaking to Minivan News, MDP Spokesperson MP Hamid Abdul Ghafoor described the bill as “dirty” attempt to give unfair benefits to those that served former President Gayoom.

He further said the party will not stand in support of the bill, and said that he was getting the same impression from some of the opposition MPs.

He also added that this was another attempt to corrupt the judiciary, and that some business tycoons did not want to have justice established in the country.

“This is a nasty thing. The coup happened because we had a crippled justice system. Some of those in the coup government want it to remain the same way. But interestingly some of the opposition MPs have started taking our stand. This can be seen even in voting records for the Public Finance Committee’s report on Aasandha,” he said.

Ghafoor said the bill was likely to be thrown out of the house.

Speaking to Minivan News, former member of the JSC, Aishath Velezinee, alleged that the bill was an attempt to pay back the judges who had colluded in Gayyoom’s conspiracy to bring down democracy.

“Afrashim – who proposed the motion – and Speaker Shahid stand accused in the JSC’s  high treason case pending in Majlis, and have effectively covered this up since 2010,” she said.

“I maintain that the country does not have constitutionally-appointed judges and that parliament has failed to hold an inquiry. Rewarding the corrupt is against national interest,” she added.

In an article written in 2010, Velezinee noted that the parliament had approved the reward “of a hefty lifetime allowance for interim Supreme Court Justice Mujuthaaz Fahmy, removed from the bench at the end of the interim period.”

“Mujuthaaz Fahmy has on record a conviction for fraud committed in 1996 for which he was  ‘convicted’ in 1998. He was the chief engineer in co-opting the Judicial Service Commission as a tool in the silent coup to derail democratic government through rigging state-building [independent institutions],” Velezinee wrote in 2010.

“The amendment to the Judges Act proposed by MP Abdulla Abdul Raheem, a member of the Parliament Independent Commissions Committee, applies only to Mujuthaaz Fahmy, a fact that only becomes obvious when one checks the records locked up in JSC and out of bounds to media and public alike. That the independence of Judges has been compromised -and no independent judiciary exists in the Maldives – is a fact evident to the thinking mind,” she wrote at the time.

Several MPs who are supportive  of President Waheed suggested that the most recent bill be accepted and sent to committee, while others suggested rejecting the bill and throwing it out of the house.

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LGA warns MCC against allowing use of council facilities for political activities

The body assigned to monitor the work and activities of the councils created under the 2010 decentralisation act has urged Male’ City Council (MCC) not to allow its facilities or equipment to be used for political purposes.

The Local Government Authority (LGA) has reported several complaints about the use of council offices for political purposes and has released a statement on its website warning the council that such activities could undermine public confidence in the MCC.

“[The LGA] believes that this could disrupt the system by which these services are provided to the people. Hence, we advise all councils and council offices to refrain from leasing council property and equipment for political gatherings,” read the statement.

Under the terms of the 2010 Decentralisation Act* the LGA was created to “monitor the work and activities and coordinate the work of the councils.”

The act also commits the LGA to “ensure the work and activities of councils created is functioning in accordance with the constitution, this act, and the other laws.”

The LGA statement did not elaborate on its position concerning the legality of the use of MCC facilities for political purposes. Minivan News was informed by an LGA staff member that there was to be no further comment given today.

The legality of the use of council land has become the focal point in the dispute between the MCC and the central government.

The most recent development in the long-running dispute came on June 7 when the government filed a request with the Civil Court, requesting an order for the MCC to hand the Usfasgandu area over to the Housing Ministry.

The ministry first announced its intentions to reclaim the site on April 9 should the MCC fail to dismantle the Maldivian Democratic Party’s (MDP) protest camp.

The government argued that the leasing of the land to the MDP for political purposes was in contravention of the decentralisation act. After the MCC refused to accept this interpretation of the law, the cabinet informed the MCC on May 9 that it was entrusting the Housing Minister to reclaim the area.

The situation escalated once more on May 29 after the government obtained a warrant from the Criminal Court to search the area after the Home Minister Dr Mohamed Jameel Ahmed had alleged complaints of illegal activity in the area. Among the purported misdemeanours listed on the warrant was “suspected black magic performed in the area”.

The security forces began to dismantle the camp before the MDP obtained an order from the Civil Court to halt the process.

The MDP, which enjoys a majority of seats in the MCC, has also been using Male’ City Hall, the council’s main office, for party press conferences in recent weeks.

Under the Decentralisation Act, the LGA is empowered to file suit with the High Court to dissolve the council. One of the situations detailed as warranting such action is the misuse of council’s faciltities.

Article 140 of the constitution states that a member of the cabinet must be assigned responsibility for each of the non-independent government authorities. The Home Minister currently fulfils this role.

*These details have been taken from an unofficial translation of the act.

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Maldives sponsors BBC weather in US$250,000 deal

Maldivian tourism authorities are pursuing private sector funding to secure advertising with prominent media networks such as CNN, after this week signing a sponsorship agreement with the British Broadcasting Corporation (BBC).

Deputy Tourism Minister Mohamed Maleeh Jamal told Minivan News that authorities were presently looking for ongoing partnerships within the country’s resort industry to help fund a year-long global media campaign to offset the impacts of negative international headlines believed to have affected tourism this year.

The government yesterday finalised a US$250,000 (Rf3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services. Tourism authorities said the strategy reflected a collaboration between the government and the private sector to try and strengthen arrival numbers to the country.

Under the recently reinstated “Sunny Side of Life” branding, Maleeh said the sponsorship of the BBC’s weather services will run from June 18 to August 27 on both the BBC World TV service as well as the broadcaster’s website.

Pubic relations

In April, the Maldives Marketing and Public Relations Corporation (MMPRC) confirmed the appointment of New-York based public relations agency Ruder Finn to “oversee the overall media coordination and achievement of PR related solution for destination Maldives.”

According a contract speculated to be worth over US$150,000 per month, Ruder Finn is required to work to: “ instill confidence in the tourism industry of the Maldives, gain understanding and public acknowledgement of the Maldives in the international community and ensure sustainable development of the tourism industry.”

Questioned whether the BBC sponsorship agreement was designed to try and generate greater media coverage about the Maldives on international news services, Maleeh claimed the MMPRC’s promotion plans were focused on tourism rather than generating headlines.

“At present we are trying to build investor confidence in the country,” he claimed. “There has been too much focus on stories such as how the Maldives will be sinking in 30 years.”

Maleeh pointed to recent coverage of several events in the lead up to February’s controversial transfer of power – such as former President Mohamed Nasheed’s proposed spa ban – as an example of headlines that had damaged confidence among tourists and investors in the Maldives.

The previous government under Nasheed claimed a spa ban introduced back in December 2011 was made in response to criticisms made against it during a demonstration of opposition politicians and NGOS relating to “un-Islamic” practices in the country.

“Mainstream” promotion

Once the present BBC sponsorship agreement ends in August, Maleeh added that the MMPRC and tourism authorities hoped to secure more funding to continue its advertising plans. He said that the motivation at present was to extend advertising ideally to “all mainstream media organisations” such as organisations like CNN.

Maleeh stressed that funding remained the biggest issue at present to extending advertising efforts.

“We are seeking support from local and international hospitality groups right now,” he said. “We are still waiting to receive support. However, other hotel chains have shown an interest.”

During the signing of the BBC agreement yesterday at the Conrad Rangali Island Resort, Tourism Minister Ahmed Adeeb welcomed the assistance of local business tycoons Mohamed ‘Champa’ Moosa and Mohamed Umar Maniku in securing the deal, according to local media.

Adheeb told Sun Online that authorities had decided to re-use the country’s “The Sunny Side of Life” branding due to previous experiences the industry had with the slogan, as well as negating costs associated with setting up an entirely new brand.

“Over the past years it has become a very expensive brand. I believe that if we were to opt for a rebranding it would in the least cost us US$50 million. We don’t have that much of a budget. The new government decided to go forward with the old brand,” he was quoted as telling local media.

Meanwhile, Vice President Waheed Deen, who was also present during the signing, lauded the financing of the new ad campaign as an “achievement” and a “success” for the country as it celebrates 40 years since the inception of Maldivian tourism during 2012.

“Coup” allegations

The 50,000 member-strong opposition Maldivian Democratic Party (MDP) maintains it was ousted from power on February 7 following what then President Mohamed Nasheed described as a coup d’état planned by political opposition, sponsored by some wealthy resort tycoons and carried out by a mutinous police and military. The party has continued to claim that President Dr Mohamed Waheed Hassan’s government is illegitimate and represents a return to the autocratic era of Maumoon Abdul Gayoom.

Such criticisms of the present government have led to the establishment of the Maldives Tourism Advisory (MTA) by the Friends of Maldives NGO that names resorts alleged by the MDP to have involvement in the “coup”.

In April, the Maldives Association of Tourism Industry (MATI) has issued a statement expressing “serious concern” over what it describes as a “concerted international campaign” against several of the country’s resort operators.

MATI claimed that calls from the Maldives Tourism Advisory (MTA) for tourists to avoid certain properties on the basis of ownership were “libellous in the extreme”, as the allegations against the tourist resort operators “have not been proven either through an investigation or a court of law.”

The MTA website features a ‘traffic light’ system with “red” resorts recently appearing to have been expanded to include an assortment of 18 properties owned by Vice President Waheed Deen and senior figures associated with the new ruling coalition, including Jumhoree Party (JP) Leader Gasim Ibrahim and Progressive Party of the Maldives (PPM) MP Abdulla Jabir.

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Government-majority committee rejects cabinet appointees

The Majlis’s Government Accountability Committee yesterday approved only one of four proposed cabinet members after half of the government coalition’s committee members failed to vote for them.

The governing coalition holds a majority of seats on the committee, with eight members compared to the opposition Maldivian Democratic Party’s (MDP) three.

At yesterday’s committee meeting, only the proposed appointee for the Ministry of Gender, Dhiyana Saeed of the Jumhooree Party (JP), was approved by those present.

After the MDP members voted against Dhiyana’s appointment, the Chair of the committee and Progressive Party of Maldives (PPM) MP Mohamed Mujuthaz cast the deciding vote in her favour.
The other  nominees – Dr Mohamed Muiz as Mohamed as Minister of Housing and Infrastructure, Dr Mariyam Shakeela as Minister of Environment and Energy, and Dr Ahmed Jamsheed Minister of Health – failed to get the required votes.

Three of the pro-government members of the committee failed to attend yesterday’s vote whilst another voted against the appointments, resulting in the failure to gain the votes required to approve three of the government’s candidates.

Following the government’s re-structuring of cabinet, two new members required parliamentary approval, whilst two others required the Majlis’s confirmation after changes to their ministerial portfolios.

MP for Feydhoo constituency Alhan Fahmy is reported by Haveeru to have voted alongside the three MDP members against the unsuccessful government nominees.

Fahmy now represents the Jumhoree Party (JP) in the Majlis after his recent defection from the MDP.

The Jumhoree Party held a council meeting yesterday evening during which it elected Dr Ibrahim Didi, another recent arrival from the MDP, at the party’s President following his uncontested candidacy.

Dr Didi, who was President of the MDP until its National Council voted him out on April 30, told Haveeru yesterday the appointment was “the happiest day of my political career.”

The JP has also announced that its council had backed Dr Didi to be the Health Minister – a position currently held by Dr Ahmed Jamsheed, whose appointment was one of those voted on earlier in the day.

Fahmy, who was unavailable for comment at the time of press, is said to have abstained from the vote concerning his fellow JP colleague Dhiyana, leaving only seven members to vote on her appointment.

Haveeru reported that the JP party leader Ibrahim Gasim will now talk to President Waheed about this proposed change to the cabinet.

The decision on these appointees will now move to the floor of the Majlis where President’s Office Spokesman Abbas Adil Riza is confident that they will still be approved.

Asked by Minivan News if the problems with the ministers’ approvals was indicative of greater problems within the governing coalition, Abbas responded, “no, it’s nothing like that”.

The cabinet changes entailed the division of the ‘Ministry of Health and Family’ into the ‘Ministry of Health’ and the ‘Ministry of Gender, Family and Human Rights’.

The ‘Ministry of Housing and Environment’ has now become the ‘Ministry of Housing and Infrastructure’ and the ‘Ministry of Environment and Energy’.

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GMR opens new air cargo office complex

Ibrahim Nasir International Airport (INIA) on Sunday opened a new office complex for the Maldives’ air cargo facility, and introduced a computerised records system to monitor and track cargo for the first time.

The first order on the new system, used by airport developer GMR at its other airports in India, was printed by chief guest Fisheries Minister Ahmed Shafeeu at the inauguration event.

“Previously it was done using stacks of paper, reams of it,” said CEO of INIA, Andrew Harrison, adding that the system would allow greater transparency and monitoring for customs officials.

The new office complex includes offices for airlines and customs officials, as well as sales counters, and greatly increases the amount of room available for storage. Other innovations included a women’s washroom: “Previously the ladies working here had to walk all the way down to the domestic terminal,” noted Harrison.

The new air cargo facilities give the Maldives the capacity to become a regional trans-shipment hub, Harrison explained, observing that airlines such as BA already used the Maldives to carry goods such as garments from Sri Lanka.

There was, he said, a ‘build it and they will come’ philosophy which had worked well for the company in Hyderbad following its opening of pharmaceutical storage facilities.

Particularly in such an import-dependent economy such as the Maldives, cargo was attractive to airlines as was a more consistent revenue stream compared to fluctuating ticket revenue, and more able to withstand economic shocks.

“When the 2003 SARS epidemic hit, Cathay Pacific only survived because by then it was deriving 43 percent of its revenue from cargo,” Harrison explained.

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