Tag: maldives

Government ordered to pay MVR349 million in damages for terminated transport contract

The Civil Court has ordered the Maldives government to pay MVR348,995,154.60 (US$22.5million) to Dheebaja Investment Pvt Ltd for the abrupt and unlawful termination of a contract to establish ferry services in four northern atolls.

The verdict, dated October 23, said President Dr Mohamed Waheed Hassan’s administration had terminated a contract with Dheebaja on 30 May 2013 claiming the company had failed to fulfill terms by suspending ferry services to Baa Atoll Fulhadhoo and Fehendhoo Islands.

The transport services contract had been signed under former President Mohamed Nasheed in February 2010. Dheebaja was to provide ferry services in Noonu, Raa, Baa and Lhaviyani Atolls in exchange for 47 plots of land to build ferry terminals and tourism development.

The Civil Court found that the Waheed administration’s termination of the contract was unlawful, stating the government had violated the contract first by failing to hand over promised plots of land to Dheebaja.

The court ordered the Maldives government to pay nearly MVR349 million in damages to Dheebaja for it’s unilateral decision to terminate contract with only five days of notice. The amount is to be paid back within six months.

The Maldives is also currently facing a potentially crippling payout to India’s GMR infrastructure for the abrupt and unlawful termination of a contract to develop Ibrahim Nasir International Airport.

President Waheed had declared the US$511 million contract “void ab initio” (invalid from the outset) in November 2012 and gave GMR a seven-day ultimatum to leave the country.

However, a Singaporean arbitration court in June declared the agreement to be “valid and binding” and said the government and Maldives Airports Company Pvt Ltd (MACL) are liable to GMR for damages.

The arbitration tribunal is in the process of determining a compensation figure. Although GMR had initially sought US$1.4 billion – a figure that exceeds the Maldives’ annual budget – government sources say the figure will be between US$300million and US$600million.

The World Bank in 2013 said the payout would place severe pressure on the country’s already critically low foreign reserves.

Since President Nasheed’s controversial ouster in 2012, President Waheed and incumbent President Abdulla Yameen’s administration have terminated or renegotiated several contracts signed under Nasheed.

The government, on October 22, terminated an agreement made with India based Tatva Global Renewable Energy to provide waste management services in Malé and renegotiated a housing contract with India’s TATA group.

The US$190 million housing project had been delayed for more than two years.

Indian companies blamed the government of creating “undue challenges” for political gain to derail their substantial investments in the Maldives in a 2012 report in India’s Business Standard.

Nasheed’s government had been ousted after months of a vitriolic nationalist and anti–India campaign.

Several of Yameen’s ministers also served in Waheed’s cabinet. They include Tourism Minister Ahmed Adeeb, Defense Minister Mohamed Nazim, Finance Minister Abdulla Jihad, Minister of Housing and Infrastructure Dr Mohamed Muizzu, and Minister of Islamic Affairs Dr Mohamed Shaheem Ali Saeed.

Incumbent Foreign Minister Dunya Maumoon served as Waheed’s State Minister for Foreign Affairs while Vice President Dr Mohamed Jameel Ahmed held the position of Home Minister.

Since assuming power, Yameen has strengthened trade and political ties with China and the Maldives is now a partner in China’s flagship Silk Route.

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ARC exhibition opened by first lady

A photo exhibition for children’s rights NGO Advocating the Rights of Children (ARC) has opened in Malé’s National Art Gallery, with First Lady Madam Fathimath Ibrahim cutting the ribbon yesterday morning.

The first lady commended ARC for its efforts to promote and protect the rights of the child, and acknowledged the greater need to raise awareness on issues concerning children’s welfare.

The exhibition – which runs until Friday (November 7) between 10am and 11pm – features photographs depicting areas from the International Convention on the Rights of the Child.

Twelve photographs were chosen to be included in ARC’s official 2015 calendar, with the winners being revealed and certificates awarded by the first lady at yesterday’s opening ceremony.

All proceeds from the calendar sales will be used to fund ARC’s HOPE Campaign against Child Abuse.

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Newly planted areca palms uprooted on housing ministry orders

Reporting by Ismail Humaam Hamid

The Maldives Road Development Corporation (MRDC) has uprooted three newly planted areca palms in Malé today on the Housing Ministry’s orders.

The opposition dominated Malé City Council (MCC) replanted three trees this morning after masked men – believed to be police officers – chopped down 30 palm trees in the early hours of October 24.

“Today we planted three trees near the Malé City Council. However, workers from MRDC uprooted the trees moments later. They said they were acting on orders from the Housing Ministry,” Malé City Mayor Mohamed Shihab told the press today.

The police refused to help despite repeated requests, but watched the trees being removed, the mayor said.

“We requested assistance from the police as per rights afforded to local councils in the Decentralisation Act. But the police on the scene refused to help us. We have decided to lodge a complaint at the Police Integrity Commission (PIC).”

The MCC will also file a court case against MRDC for its illegal actions, the council said, arguing that the MRDC must defer to the MCC and obtain permission from the council in matters concerning Malé City.

According to newspaper Haveeru, senior members of the ruling Progressive Party of the Maldives (PPM) believe the opposition Maldivian Democratic Party (MDP) use the areca palm trees for black magic to curse President Abdulla Yameen with ill health.

“[They] believe that [President Yameen’s] health worsens with every palm frond that falls off the areca palm trees. And that his health would worsen further with every tree that blossoms,” an anonymous government official was quoted as saying.

The MDP-dominated city council had planted the palm trees – donated by the Indian High Commission – in October 2011 as part of efforts to make the capital greener.

Meanwhile, former President Mohamed Nasheed alleged that masked Special Operations (SO) police officers in plain clothes chopped down the palm trees with machetes.

Patrolling police officers from the Maafanu police station arrested two of the perpetrators, Nasheed told the press last week, claiming that the suspects were handed over to the SO on the orders of a senior official from the SO command.

The pair were taken to the police Iskandhar Koshi barracks in an SO vehicle, he claimed.

Commissioner of Police Hussain Waheed held a press conference last week during which he denied police involvement in the incident, dismissing the opposition leader’s allegations as “baseless”.

Speaking to the press today, Deputy Mayor Shifa Mohamed accused the government of chopping down the areca palms.

“The government is involved in the chopping down of the trees. There were a lot of SO police officers in Malé that night. However, it is unclear whether they were trying to stop the vandalism or assisting in the crime,” she said.

The council said it will lodge a complaint over MRDC’s actions with the Local Government Authority, the Human Rights Commission of the Maldives, and international organisations.

Several areca palm trees were also uprooted during protests against the MDP government in January 2012.

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Rilwan suspect’s detention extended for the fifth time

The Criminal Court has again extended the detention of the sole suspect remaining in custody in relation to the disappearance of Minivan News journalist Ahmed Rilwan.

Police  have today confirmed that the suspect, whose identity has not been revealed to the public, had his extension extended for the fifth time yesterday (November 4) – giving police another ten days to conduct investigations.

No further details of the case’s progress have been made public.

After the Majlis rejected a 5000 signature petition calling for greater efforts in the search, the family last month lodged an official complaint with the Police Integrity Commission (PIC), accusing the Maldives Police Service of negligence.

PIC Director General Fathimath Sareera Ali Shareef told Minivan News today that the commission has decided to investigate the case, and has begun compiling relevant information.

“We have never had a case like this before,” explained Fathimath, who was unable to give a time frame for the investigation due to its “sensitive” nature.

Police Commissioner Hussein Waheed has rejected the accusations, telling local media last week that the police service had not forgotten about Rilwan’s case. Police said earlier this week that investigations were progressing “speedily”.

Four suspects were arrested in connection with the disappearance of the 28-year-old shortly after the release of a private investigative report into the suspected abduction. Three, however, were released shortly after.

Authorities – including the police commissioner and home minister – have condemned the report, suggesting that the publication of suspects’ names had jeopardised their own investigations, leading to the loss of valuable leads.

The report – conducted by a UK-based security company – noted “hostile surveillance” of Rilwan in the moments prior to his disappearance, concluding that the most likely groups to have been involved in his abduction were radicalised gangs – a theory supported by comments from Home Minister Umar Naseer.

Rilwan’s family lodged the official complaint with the PIC on October 29 , accusing the Maldives Police Service of not taking the case seriously, and of showing disrespect to the family since the disappearance 89 days ago.

“Our family is in deep mourning. We have no way forward. We believe police negligence is behind the lack of progress in finding Rilwan,” said Rilwan’s sister Fazna.

The police have failed to take the case seriously, despite an abduction outside Rilwan’s apartment building on the night of his disappearance and reports that he had received numerous death threats and had been followed, she said.

Eyewitnesses had reported the abduction at knifepoint at around 2am on August 8, but police only took their statements on August 14, the family said, adding that the police had also failed to track down and search the car used in the abduction.

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Missing Maldivian surfaces in Bangkok

A Maldivian citizen reported missing in Malaysia five months ago has handed himself into consular staff in Bangkok.

Hamdhan Mohamed made himself known to Maldivian consular officials yesterday, with Malaysian High Commissioner Mohamed Fayaz telling local media that the 28-year-old was in good health.

Authorities began the search for Hamdhan in June after he failed to board two booked flights back to the Maldives. Interpol later issued a missing persons notice.

Fayaz told media that the cause of the disappearance was still unknown, but that a team from the High Commission in Malaysia would now travel to Thailand to meet with Hamdhan.

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Government unveils integrated resort project at World Travel Market

The Maldives Marketing and PR Corporation (MMPRC) has unveiled its integrated resort development project at the World Travel Market in London this week.

Representatives from the Maldivian government’s tourism promotion department – as well as local tour operators – are taking part alongside 146 representatives from 54 countries.

“A press conference was held on the first day of the fair, where the highlight of the conference was the recently launched Integrated Resort Project which was disseminated to the audience,” read an MMPRC press release.

The new scheme, described as ”communal tourism development” or “vertical tourism” by President Abdulla Yameen is being overseen by the MMPRC.

Sixteen bids were reported to have been received earlier this year for the first 20 plots made available as part of the Thumburi guest house island project – designed to attract small and medium business to an industry dominated by high-end island resorts.

Also present in London this week are representatives of the Maldives Association of Travel Agents and Tour Operators (MATATO), which is acting as an associate partner for the second year.

“This partnership opens new doors for MATATO members,” explained the association – the only Maldivian group to be given associate partner status.

”We believe that the growth and sustainability of our members, local travel agents and tour operators and other industry stake holders, require continued exploration and networking efforts in the emerging markets along with strengthening the presence in the lucrative markets for Maldives.”

The World Travel Market was launched in 1980, and has grown from 350 exhibitors to around 5,000 and 50,000 participants – agreeing deals worth $3.7 billion last year alone.

The Maldives tourism industry welcomed over one million tourists for first time in 2013, with the government expecting the 1.5 million arrivals in 2015.

The MMPRC visited China last month in an effort to further boost the now-dominant Chinese market, which makes up over 30 percent of the market share.

Recent statistics show that visitors from the UK – traditionally one of the largest sources of tourists to the Maldives – rose to 8 percent of the total in the first three quarters of 2014.

“The Maldives delegation will be meeting with the Top Travel Agents and Travel trade media to identify opportunities to build strong ties between two countries and to identify strategies to increase the number of tourist arrivals from UK,” said the MMPRC today.

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Auditor general’s position opened for applications

The President’s Office has this morning called for applications for the auditor general’s post after controversial changes to the Audit Act last week.

Incumbent Niyaz Ibrahim has told local media he will not be applying for the post, intending instead to challenge the constitutionality of the amendments which require the president to reappoint an auditor within one month.

The announcement was published in the government gazette today and will be open until 3pm on Monday, November 10. Forms are available on the President’s Office website.

The opposition Maldivian Democratic Party is also considering challenging the legality of the amendment, introduced as part of changes to legislation bringing statutes in line with the 2008 Constitution.

Proposing the motion, Progressive Party of Maldives (PPM) MP Ahmed Thoriq noted that the Audit Act was passed in 2007 before the ratification of the current Constitution and did not specify the responsibilities, mandate, qualification and ethical standards of the auditor general.

The amendment was passed last week, the same day the auditor general signed a damning report into an alleged US$6 million corruption scandal involving Minister of Tourism and PPM deputy leader Ahmed Adeeb.

Adeeb has labelled the report political motivated, suggesting an attempt to defame him by his political opponents.

Minivan News understands former Deputy Speaker and PPM MP Ahmed Nazim was involved in leaking documents related to the case to online news outlet CNM, which first broke the story of the Anti-Corruption Commission investigating the transactions.

In an interview with Haveeru yesterday, Niyaz denied being influenced by the Dhiggary MP Nazim, stating that their relationship during Nazim’d time as head of the Majlis’ financial committee was not in any way unusual.

Both Niyaz and his family have received death threat since the release of the report.

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Indian External Affairs Minister meets with Foreign Minister Dunya Maumoon

Indian External Affairs Minister Sushma Swaraj met with Foreign Minister Dunya Maumoon last night (November 3) during her transit halt in the Maldives on her travels back to India from Mauritius.

At the meeting both Ministers discussed matters of bilateral importance, including upcoming projects in the Maldives to be executed with India’s assistance.

Ms Swaraj also extended Victory Day greetings to all Maldivians – celebrated annually to commemorate the heroes who defended the country during the failed coup attempt in November 3, 1988 – while reiterating India’s strong commitment towards the prosperity, stability, and security of the Maldives.

India was the first to respond during the attack on the capital Malé by deploying 1500 paratroopers and 3 warships after a distress call from the then President Maumoon Abdulla Gayoom asking for assistance from India, UK, and the USA.

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Future of Gulhifalhu in doubt as government halts project

Additional reporting by Ismail Humaam Hamed

The future of the Gulhifalhu development project appears uncertain as the government called a halt to proceedings, being said to have deemed the island unfit for habitation.

A buyer’s association – comprising seven families who made down payments on flats four years ago – now fear their investment may be lost.

“We are not big businessmen. We are simple people who gave up all our life savings because we wanted accommodation near the capital Malé,” said the association’s representative Adam Nadeem.

After paying the 30 percent – or MVR500,000 – of the cost of each flat in 2010, with a promise of a new home in 6 months, buyers were informed last week that the government had suspended further development, he explained.

Global Project Developments (GPD) have today said that the plan to build housing units was formulated upon the request of the state-owned Gulhifalhu Investments Ltd (GIL) and that all necessary permits were obtained in 2011.

“GPD believes that if there are any issues which would affect the livelihood of habitants of the island it is the responsibility of the government and GIL to address those issues,” read a press release from GPD.

GPD – a subsidiary of the UK company Capital Investment and Finance Ltd (CIFL) – went on to accuse GIL of failing to uphold its part of the agreement in registering the houses with the relevant authorities.

The project to develop the submerged reef situated between the islands of Villingili and Thilafushi – just minutes from the capital Malé – was signed in 2007 under the government of Maumoon Abdul Gayoom.

Investment plans

Initially envisioned as an industrial project, the development was amended after the arrival of the Maldivian Democratic Party (MDP) administration, taking on the title of the Global Green City, and focusing on housing units to ease congestion in the capital city.

CIFL, having signed a 35-year lease agreement with the state-owned GIL, then established GPD in order to continue the reclamation and development of the island.

After the completion of the first housing units last month, however, the cabinet’s Economic Council informed GIL that the island was not fit for habitation due to health and geological factors, reported local media.

The island is located just 200 yards from Thilafushi – often referred to as a ‘toxic bomb’ owing to the fumes produced as much of the nation’s waste is burned on site.

Despite this, the Environmental Protection Agency had issued approval for the construction of 240 two-bedroom flats in November 2011.

Neither GPD nor the buyers association have been provided a copy of the GIL statement. Officials from the President’s Office were unavailable for comment at the time of publication.

Nadeem explained that meetings with the President’s Office and the Economic Council last December had been positive, with no sign that the future of the development was in danger.

Indeed, the Maldives’ first amusement park opened on the island the same month, with locals now visiting from the neighbouring islands every weekend. Additionally, two beach villas are available for visitors wishing to stay overnight.

Investor confidence

The disruption to the Gulhifalhu project is the latest in a series of foreign investor agreements that have faced difficulties after a change of government.

The Tatva waste management project became the latest deal signed under the MDP government to founder last month, with the government announcing that it wished to use a state-owned company to provide such services in the capital.

Deals for both border control and – most notably – airport development were also terminated by the government of Dr Mohamed Waheed, while the Tata housing project in Malé was delayed for two years as the incoming administration sought revised terms.

Assuming power in November 2013, the government of President Abdulla Yameen has sought to rebuild investor confidence, making the introduction of special economic zones (SEZ) the cornerstone of its economic policy.

The fostering of an investor friendly environment is intended to facilitate the development of a number of ‘mega projects’ which the administration hopes will move the economy away from its current dependence on tourism.

The SEZ bill was passed in September, and China has signed a preliminary contract agreement on the development of Ibrahim Nasir International Airport as well as promising to “favorably consider” financing the bridge project.

Proposed projects in the Malé region include the continued development of Hulhumalé to house the capital’s overflowing population, the construction of the Malé-Hulhulé bridge, and the relocation of the country’s main port from Malé to Thilafushi.

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