MDP – Page 33 – Minivan News

Majlis under threat, suggests outgoing speaker

“My projection of what I see for the next five years is very bleak,” says Abdulla Shahid.

“Those who want to make sure that the institution of parliament is a weak one – those who would like the institution to just be an executive office – have a majority today in the parliament.”

Shahid was today sworn in to stand alongside his fellow MPs in the 18th Majlis after having led the house from the speaker’s chair for the past five years.

With controversy already surrounding the appointment of his successor, Shahid has told Minivan News of his disappointment regarding what he sees as the persistent erosion of the institution’s powers and independence.

“What we are hearing, especially from President Abdulla Yameen today, is that the parliament has to be an institution which would continuously back the government, and that is what it has been from 1932 to 2009 – an institution that has always rubber-stamped whatever the executive or the president or the sultan wanted,” said the member for Henveiru North.

A member of the Majlis since 1995, Shahid was a founder member of the country’s second registered political party, President Maumoon Abdul Gayoom’s Dhivehi Rayyithunge Party – formed as part of the country’s democratic transition over the past decade.

However, in the aftermath of the chaotic transition of executive power in 2012 , Shahid switched his allegiance to the deposed Maldivian Democratic Party (MDP), citing his fear that “opportunists & extremists” were trying to reverse the country’s democratic gains.

“There have been times when I have been slightly satisfied that the Majlis and the country are on the right path, but the entire five years put into context – looking back – I think we have not met the aspirations of the people, or what the people aspired for in 2008.”

Oversight and immunity

Looking back on his term as the first democratically elected speaker of the first democratically elected parliament, Shahid described an institution whose constitutional powers were under concerted attack.

“If you can look at the last five years in parliament – the continuous battering that parliament as an institution took was immense,” he recalled, suggesting that the source of this obstruction was the legislature’s oversight mandate – unprecedented in the Maldives’ history.

“The people over whom we have the oversight wouldn’t have liked it – like the executive, like the judiciary, like the military, like the police – no one liked the parliament bringing officials, executives, or officers to the parliament.”

“Peoples representatives asking questions – they didn’t like it, so they used whatever means – and I’m sad to say this, but the media extensively, to batter the institution of parliament,” said the former speaker.

The 2008 constitution also determined that the proceedings of the Majlis must be open to the public, a consequence of which appears to have been a collapse in the public’s confidence in the institution, according to a recent survey by Transparency Maldives.

The culmination of this “systematic attack”, argued Shahid, was the erosion of parliamentary privileges, almost as soon as the privileges act had been introduced after overriding a presidential veto.

“There was once again systematic propaganda to mislead the public on immunities and privileges, which are two different aspects of the parliament, but they were combined – it was projected to be the same thing and as a result I would say the parliament has suffered immensely.”

In November, the Supreme Court voided a number of articles included in the privileges act and subsequently sentenced MDP MP Hamid Abdul Ghafoor to a jail sentence for his failure to attend court hearings scheduled during voting hours – later overturned by the High Court.

MDP MP Abdulla Jabir has also been handed a jail sentence in relation to refusal to submit to urine testing, while two other opposition MPs were removed by the Supreme Court over decreed debt.

Speaking at the launch of a book chronicling the history of the Majlis this week, Shahid noted that over 100 MPs had been convicted and removed from office during the institution’s history.

“The new parliament coming in on the 28th, and even the sitting parliament, we don’t have any immunities,” lamented Shahid. “All these have been incorporated into the immunities act and the constitution based on our experience in the last several decades but they’ve all been taken away.”

He called upon all incoming MPs to work to ensure the institution’s immunities are restored in order to ensure they can fulfil their roles as representatives of the people.

“I think all MPs coming into the new parliament should understand that they are coming with a direct mandate from the people. They are not elected because they have the duty to protect the government of the day.”

“My advice would be to try and bring back the immunities that have been taken by the executive, and by the judiciary.”

The new speaker

During the interview, conducted prior to today’s ballot, Shahid appeared to predict the dissolution of the governing Progressive Coalition which the election of a new speaker has brought about.

With President Yameen’s Progressive Party of Maldives (PPM) keen to place a member in the speaker’s chair, and with coalition partner Gasim Ibrahim receiving the backing of the opposition MDP, the PPM this week forbade the Jumhooree Party leader from standing.

Gasim’s refusal to defer to his electoral allies appears to have resulted in the splitting of the coalition, leaving the PPM and the Maldivian Development Alliance just short of what had previously been a handsome majority in the 85-seat chamber.

While today’s vote was subsequently won by the PPM’s Abdulla Maseeh, Shahid’s thoughts on Gasim’s candidacy and the ensuing divisions in the house again echoed his concerns over parliamentary independence.

“I talked to Gasim in the parliament about the immunities and he agrees that these immunities should have been incorporated into the constitution,” said Shahid. “If anybody would have the experience and not let the same mistakes be repeated, it would be Gasim.”

Of foremost importance, maintained Shahid, was the appointment of a speaker who understands that the parliament has moved on from its traditional role as an extension of the executive.

“Nobody holds a majority in the parliament, so once again we would have a parliament which is dysfunctional, which is not controlled by anybody and which on many occasions I foresee working with the opposition trying to block things that the government would wish to do,” he said.

“That is the only encouraging part in this scenario, because many of the things that the current government would want to do – based on what they have been talking about in their rhetoric – is making sure that there is a slide back to autocracy.”

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Progressive coalition will dissolve if Gasim runs for speaker, says PPM

Ruling Progressive Party of Maldives (PPM) has announced that the ruling coalition will dissolve if the coalition partner Jumhooree Party leader Gasim Ibrahim stands as speaker of the newly elected People’s Majlis.

The 18th People’s Majlis is due to be sworn in tomorrow, with the new speaker to be elected by secret ballot.

Gasim has responded by saying he will not retract his name, claiming the PPM was the first to breach the coalition agreement made during November’s presidential elections.

“Truth is, they have been trying to kick us out of the coalition for a long time now,” Gasim told the press today.

After coming third in the presidential polls, Gasim’s support was crucial in securing a win for the PPM against the opposition Maldivian Democratic Party (MDP).

Gasim’s support was given in exchange for a 35 percent stake in executive political postings and a promise to work together during subsequent local government and parliament elections.

The Progressive Coalition secured a combined total of 53 out of 85 seats in parliamentary polls, no party won enough seats to reach the 43-vote simple majority alone.

Who broke the agreement?

PPM deputy leader, and minister of tourism, Ahmed Adeeb further warned last night that he would request President Abdulla Yameen replace JP political appointees should Gasim stand as speaker.

“From [Gasim’s] actions, we are seeing him working together with the opposition Maldivian Democratic Party (MDP) to acquire the speaker’s seat,” said Adeeb.

“As MDP worked to present obstacles to this government when they held parliamentary majority, we cannot accept a coalition member working alongside them,” he continued.

PPM leader and former President Maumoon Abdul Gayoom had also written to Gasim, describing a recent meeting with MDP leader and former President Mohamed Nasheed as being against the “coalition’s spirit”.

During the meeting at Gasim’s residence last month, Nasheed had signalled the MDP’s support for Gasim – a stance reiterated today.

Gasim subsequently called a press conference today during which he argued it was not his party but the PPM, which had breached the agreement.

Holding up the agreement, he said coalition partners had agreed to hold discussions to resolve any issues not included therein.

The PPM had unilaterally informed him they would nominate separate candidates for the position, said the JP leader, who also complained of not receiving the party’s quota of appointments.

“The agreement says 35 per cent of political appointments will be given to us, which would amount to between 90 to 40 posts when we consider the total number of political appointments in this government. However, today we have only about 29 slots,” Gasim explained.

Gasim stated that he had received the support of President Yameen, Defence Minister Mohamed Nazim, and Adeeb prior to publicly announcing his candidacy.

“Nazim and Adeeb said it’s a good decision and wished me luck. No one asked me to not put my name forward or mentioned they wanted to further discuss the matter. Then without any notice, they make this announcement about breaking up the coalition,” Gasim said.

“I will always work for the rights of the people. We do not want another administration where the president can unilaterally call the shots on all matters. We need a democratic system,” he continued.

JP MP Ahmed Sameer added that the coalition agreement signed by Gayoom and Deputy Leader Abdu Raheem explicitly stated that the agreement will be in effect until November 11, 2018.

“So how can they just break up the coalition like this? What more is there to say about people like them? Where is the justice in these actions of theirs?” Sameer asked.

“Parliament must be led by PPM”

Speaking to local media yesterday, President Yameen said he believed Gasim must withdraw from the speakership claiming it to be the “general norm around the world” for the majority party to hold the speaker’s seat.

Contrary to the JP’s claims, he claimed that the PPM had sent Gasim a number of letters and held discussions on the matter.

The PPM yesterday announced that it planned to nominate the party’s parliamentarians Abdulla Maseeh and Abdu Raheem Abdulla for speaker and deputy speaker, respectively.

Current Deputy Speaker of parliament Ahmed Nazim – affiliated with the PPM – has also expressed interest in the position, though Yameen has expressed confidence that Nazim would not run against the party’s wishes.

Meanwhile, the deputy leader of second coalition partner the Maldivian Development Alliance (MDA), Ahmed Amir, has also announced he will be running for speaker.

Saying that the PPM announced its nominees after he had already decided to contest, Amir said he had no intention of withdrawing his name, though the PPM has promised action against any competing coalition candidates.

The MDP announced last Friday (May 23) that the party’s 25 MPs-elect would back a candidate who support’s the parties policies, including judicial reform, empowerment of local councils as well as the introduction of a progressive income tax and a minimum wage.

Following the signing of three out of the five independent candidates elected to the 18th parliament, the PPM currently has 37 seats, followed by the opposition MDP with 25 seats, the JP with 15 seats, the MDA with five seats, and the religious conservative Adhaalath Party with one seat.

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MDP sets eight conditions for backing candidate for Majlis speaker

The opposition Maldivian Democratic Party (MDP) has set eight conditions for supporting a candidate for the Speaker of the 18^th People’s Majlis.

Following a meeting of the party’s executive national council in Addu City, the MDP revealed in a statement yesterday (May 23) that the party’s 25 MPs-elect would back a candidate who supports eight main policy objectives:-

Removing obstacles for access to justice and reforming the judiciary
Empowering local councils and amending the Decentralisation Act to enable councils to generate income
Establishing a minimum wage
Strengthening social security and the ‘Aasandha’ health insurance scheme to ensure coverage for all citizens
Assuring investor confidence in business transactions with the state
Working with the MDP to “resolve the international problems that have arisen due to the cancellation of the contract to develop the Ibrahim Nasir International Airport.”
Introducing an income tax, maintaining the Tourism Goods and Services Tax at eight percent and eliminating import duties
Removing obstacles to expanding the guest house business, which is the “quickest route to eradicating poverty.”

The main opposition party contested the parliamentary elections in March on a platform of judicial reform and empowerment of local councils.

With the next speaker due to be elected through secret ballot at the first sitting of the newly-elected parliament on Wednesday (May 28), the question of which party should control the post of speaker has led to tension within the ruling coalition.

While Jumhooree Party (JP) Leader Gasim Ibrahim has announced his bid for the speaker’s post, President Abdulla Yameen has said repeatedly that the speaker should be a member of the ruling Progressive Party of Maldives (PPM).

The Progressive Coalition – made up of the Progressive Party of Maldives (PPM), Jumhooree Party (JP) and Maldives Development Alliance (MDA) – secured 53 out of 85 seats in the March 22 parliamentary polls.

The MDP won 26 seats while independent candidates won five seats and the religious conservative Adhaalath Party won one seat.

Three independent candidates along with MDP MP-elect for the Thimarafushi constituency, Mohamed Musthafa, have since signed for the PPM, bringing the ruling party’s numbers up to 37 and securing a two-thirds majority for the coalition.

However, neither party on its own has enough MPs-elect to reach the 43-vote simple majority.

While the PPM and MDA is one vote short of the simple majority with 37 seats and five seats respectively, the JP and MDP falls three votes short with 40 seats.

Meanwhile, PPM MPs Ahmed Mahloof and Ahmed Nihan revealed in the wake of the parliamentary elections that the pair had pledged their support for Gasim’s bid to become speaker during negotiations for forming the Progressive Coalition ahead of last year’s presidential election runoff.

Moreover, former President Mohamed Nasheed – acting president of the MDP – signalled the opposition party’s support for Gasim following a meeting at the business tycoon’s residence last month.

The PPM has meanwhile yet to announce the party’s choice for the speaker’s post. However, PPM MPs-elect Ahmed Nazim – deputy speaker of the outgoing parliament – and Abdulla Maseeh Mohamed have expressed interest in becoming the next speaker.

The ruling party appears to be divided over which MP to nominate for the post with Tourism Minister Ahmed Adeeb – deputy leader of the PPM – claiming that allegations of corruption that surfaced in the press last week were linked to his refusal to support certain individuals for the speaker’s post.

Speaking to Minivan News on Thursday, Adeeb dismissed the allegations as an unfair “defamation attempt.”

Adeeb later told newspaper Haveeru that PPM MP Nazim was behind the corruption allegations, which are currently under investigation by both the Anti-Corruption Commission and auditor general’s office.

Adeeb said he could not back Nazim’s bid to become speaker as he was suspected of “blackmail” and “corruption” and declared his support for Maseeh.

“This problem [corruption allegations] has come up because my stand is strong inside the PPM. I am accused of these things because I take the stand that is most beneficial to the country. And because I have influence within PPM,” he alleged.

“This is a political ploy to defame myself, PPM and the government. This has been done to blackmail me in order to politically twist the Majlis speaker issue a certain way.

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Week in review: May 10 – 16

The reverberations of the the deputy prosecutor general’s resignation continued to be felt across the criminal justice system this week.

Despite the Supreme Court’s order for confused state prosecutors to return to work, the majority of cases continued to be cancelled as the courts struggled to adjudicate on the leadership vacuum at the PG’s Office.

This confusion was typified by Drug Court Judge Mahaz Ali, who expressed his disagreement with the government’s suggestion that a ‘state of necessity’ existed, enabling the most senior state prosecutor to assume the office’s responsibilities.

While the Supreme Court announced the formation of a committee to review current judicial laws, the judicial watchdog said it would look into Judge Mahaz’s blogging.

Further examination into a large crack in the Meedhoo Island reef will be required as experts admitted that the long-term effects of the 13 metre fissure were unknown.

The discovery was made amid a mammoth 20 hectare reclamation project on the island conducted by Boskalis International. The Dutch company – currently conducting numerous projects in the country – came under this fire week for what local NGOs have called “environmental crimes” during its recent dredging activities.

The accusations did not stop authorities mooting Boskalis as the likely partner for the government’s second reclamation phase of the Hulhumalé development project.

Speaking at the launch of another Boskalis project in Thulusdhoo, President Abdulla Yameen urged the Anti-Corruption Commission to expedite stalled cases concerning infrastructure projects.

Reclamation projects could take on a new urgency should this week’s prediction from climate change experts prove true, as it was revealed that the collapse of antarctic glaciers has the potential to increase sea levels by 1.2 metres in coming centuries.

The completion of a Japanese sponsored solar energy project this week will be scant consolation to pessimists.

Pessimism regarding the buoyancy of the country’s democracy was evident in Transparency Maldives ‘Democracy at Crossroads’ survey this week which revealed extraordinarily high levels of cynicism within the electorate.

Skepticism was also evident at the Human Rights Commission’s ‘National Inquiry on Access to Education for Children with Disabilities’ as parents questioned the state’s efforts to provide education to all.

The Capital Market Development Authority meanwhile was optimistic that the country can be developed into a global financial centre, while the Maldives Monetary Authority (MMA)warned that further fiscal “slippages” would undermine the country’s debt sustainability.

The prospect of increased wage expenditure by the government receded once more, however, as the president returned the pay commission bill to the Majlis for the third time this week.

The MMA’s warning was not enough to prevent President Yameen pledging MVR1 million to the national football team, should it reach the last four of the AFC Cup – scheduled to start in Malé and Addu next week.

Visiting football fans who take a liking to the country’s southernmost atoll will soon be able to return to stay in one of the 2000 guesthouse beds that Addu City Council aims to develop via its Guesthouse Tourism Promotion Board.

Finally, suggestions by the US State Department that Maldivian authorities were aware of funds being raised for terrorism abroad were rejected, as were the Maldivian Democratic Party’s suggestions that the extremist ideologies were becoming prevalent within the security services.

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Government plotting to “destroy decentralization,” says Malé Deputy Mayor

The Housing Ministry’s efforts to appropriate lands and property under the Malé City Council is an organized effort to discredit the council, destroy the decentralization system and punish Malé citizens for voting for the opposition Maldivian Democratic Party (MDP), Deputy Mayor Shifa Mohamed has said today.

Since the takeover of the Dharubaaruge Conference Center, the ministry has asked for the hand over of two additional parks developed by the council, Shifa told Minivan News.

“This is an organized joint effort by the ministry and the government to discredit the council and destroy the decentralization system. When taking back lands [from the city council] is among the very the first decisions of the cabinet, it can also be seen as a revenge against people living in Malé, and people from all over the country who are living in the city. I dont think Malé citizens deserve this spirit of revenge from the government for voting for the MDP,” she said.

The ministry’s official reason for taking over the parks is “unlawful activity” taking place at the parks, but Shifa said the ministry failed to provide details of such activities.

The council had developed the two parks – Fini Park or Bondibai Park and City Park – with cafeteria services in 2012 in order to prevent drug dealing and criminal activity, Shifa said, accusing the government of taking back the parks to reverse gains.

President Abdulla Yameen’s administration is preventing the council from serving the people of Malé, she added.

“Even earlier [with Dharubaaruge and other lands] they could not give a valid reason or explanation. They just said it was based on the Attorney General’s advice which no one has ever seen. This time they say are saying unlawful activity without telling us what these activities are,” she said.

Police involvement

Council Member Shamau Shareef told local media yesterday that the Maldives Police Service was not cooperating with the council to clear out gang hangouts in Malé City’s public spaces. The police are “afraid to touch” such areas, Shamau claimed.

In response, the police said the council had not issued an official permit requesting action.

The council yesterday sent a letter requesting Commissioner of Police Hussain Waheed to stop police participation in Dharubaaruge takeover without a court warrant, and asked him to investigate the incident.

No plan for development

In an official statement released yesterday, the council said the government is appropriating lands and property under the council without any plans for development and said the ministry has confirmed the absence of such a plan to the council in writing.

Regulations on transfer of lands between the local and central government states the government is authorized to take over land from the councils on a cabinet decision for socio- economic purposes and national security purposes.

The ministry also intends to take over the artificial beach, carnival area, south harbour area, lands near the T-Jetty and Usfasgandu area on the city’s southeast.

The council condemned the “unlawful takeover,” noting that the police and housing ministry officials who entered and changed Dharubaaruge locks yesterday had done so without a court warrant or any official document indicating the center had been transferred to the ministry.

The council called on President Yameen and senior members of the government to take action against such unlawful actions and asked the government to ensure the implementation of its policies would not harm the citizens of Malé City.

The statement also explained that the Ministry of Finance and Treasury rejected the council’s request in December 2012 for funds to repair a badly damaged and deteriorating Dharubaaruge.

According to the council they were asked to utilize funds allocated for the council in 2013, and the council informed the ministry the funds were insufficient for repair. However, the ministry refused to release additional funds, the council claimed. Copies of the letters was shared with the media.

When funds were denied, the council handed over the maintenance and development of Dharubaaruge to a private company, under a public-private partnership agreement through a public bidding process.

The council statement also said the ministry’s actions were “without any respect to the legal contract between the council and a private party” and without considering how the action may affect members of the public.

Although MDP dominates the council, a council member from the ruling Progressive Party of Maldives (PPM) Zaidul Ameen has also condemned yesterday’s incident.

The MDP has on several occasions accused the ruling PPM of opposing decentralization and said their policies reflect the party’s founder President Maumoon Abdul Gayoom’s centralized policies.

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MDP marks May Day with rally calling for introduction of minimum wage

The opposition Maldivian Democratic Party (MDP) marked May Day or Labour Day on Thursday (May 1) with a rally across Male’ and the signing of a petition calling for the introduction of a minimum wage.

Addressing participants of the rally at the conclusion of the walk across the capital, former President Mohamed Nasheed observed that ensuring worker’s rights was essential for economic development.

“We are raising our voices and calling for the establishment of a minimum wage to facilitate job opportunities for Maldivian workers. The number of foreigners in the Maldives who are made to work for a small wage is increasing daily,” Nasheed said.

The international community considered the Maldives a destination for human trafficking, he added, with Bangladeshi workers paid US$100 or US$150 a month.

While migrant workers were deprived of their rights, Nasheed said the situation deprived Maldivians of employment.

The main purpose of setting a minimum wage was providing job opportunities for Maldivians, he said, calling on pro-government parties to use their parliamentary majority to legislate for a minimum wage.

Nasheed went on to accuse the government of attempting to introduce “harsh practices” to the Maldives in a bid to consolidate power.

The former president called on Maldivian workers to “stand up for your rights.”

President’s Office Spokesperson Ibrahim Muaz meanwhile told the press on Thursday that the current administration would protect worker’s rights.

“Several workers lost their jobs due to political pressure during the MDP government. The present government will not discriminate based on political affiliations. We will work to make sure that every citizen, every worker is satisfied,” he was quoted as saying by Sun Online.

He added that President Abdulla Yameen would fulfil his campaign pledge to streamline the government’s pay structure to eliminate wage gaps between state institutions.

Meanwhile, in a statement on the occasion of Maldives Civil Service Day – which is also marked on May 1 – Civil Service Commission (CSC) Chair Dr Mohamed Latheef urged civil servants to speedily implement the policies and projects of the government regardless of political turmoil.

Dr Latheef noted that a civil service training institute was formed in 2009 to improve competence of government employees.

During the past year, he added, 66 courses were conducted with 1,838 participants from across the country.

As of March 2013, the number of civil servants in the Maldives stands at 24,951.

The opposition MDP meanwhile decided to mark Labour Day with a rally after the party’s national council adopted a resolution submitted by Youth Wing Leader Aminath Shauna last month.

The resolution stated that the party should organise a gathering to call for the introduction of a minimum wage as well as for the Maldives to sign the International Labour Organisation’s (ILO) Convention on Occupational Safety and Health.

The resolution noted that the MDP has been observing Labour Day since 2006 and that the Maldives became an ILO member state during the party’s three years in office.

Moreover, it added, Labour Day or May Day was declared a public holiday by President Nasheed while a Labour Tribunal to resolve employment disputes was established in December 2008.

Prior to the ousting of the MDP government on February 7, 2012, the resolution stated that a decision was made to introduce a minimum wage and a board was formed to monitor the policy shift.

However, “dictatorial habits” were returning with the current the administration allegedly violating the rights of workers and intimidating government employees, the party contended.

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JP reprimands former council member Fuad Gasim

The Jumhooree Party (JP) has condemned allegations by former council member Fuad Gasim concerning JP Leader Gasim Ibrahim’s ties with the opposition Maldivian Democratic Party (MDP).

State Minister for Health Fuad Gasim resigned from the JP council in protest on Friday after former President Mohamed Nasheed met Gasim Ibrahim and signalled the MDP’s support for the business tycoon’s bid to become the speaker of the newly-elected 18th People’s Majlis.

Fuad told Sun Online on Thursday (May 1) that the close ties between Gasim and Nasheed were unacceptable while the JP remained a part of the ruling coalition.

One of reasons he supported JP was its opposition to the MDP’s alleged “secular ideology,” Fuad said.

Fuad also criticised as “undemocratic” the JP’s selection of candidates for the March 22 parliamentary polls, claiming that the JP ticket was awarded to individuals who “pleased the leader.”

In a press release issued on Thursday in response to Fuad’s remarks in the media, the JP stated that Gasim followed an “open policy” of holding discussions with leaders of all political parties upon request.

“Meeting a particular person from a particular political party does not diminish or undermine the religious and nationalist ideology accepted by the Jumhooree Party and the party’s leadership,” the statement read.

The JP statement revealed that Fuad Gasim was barred from some party offices about a month ago following complaints from female staff regarding his behaviour.

The complaints included allegations that Fuad was using female toilets, the statement explained.

Moreover, party members complained about Fuad while he was serving as the secretary general, it added.

The statement went on to accuse the former council member of campaigning against the JP’s candidate for the Nolhivaram constituency.

Fuad had met Gasim Ibrahim prior to the elections and demanded the JP ticket, the statement alleged.

Following Gasim’s refusal to award him the ticket, the JP claimed that Fuad had been slandering both the party and its leader.

The JP press release noted that Fuad Gasim remained in a government post designated for the party under the coalition agreement.

The post of Majlis speaker has meanwhile been a source of friction in the governing coalition. After Gasim expressed interest in the role, President Abdulla Yameen Abdul Gayoom declared that the speaker should be a member of the ruling party, which won the most number of seats in the March 22 polls.

The Progressive Coalition – made up of the ruling Progressive Party of Maldives (PPM) along with the JP and Maldives Development Alliance (MDA) – reached an agreement prior to the Majlis elections to divide the 85 constituencies among the coalition partners.

Following a joint campaign, the PPM won 33 seats along while the JP and MDA won 15 and five seats respectively.

The opposition MDP secured 26 seats while five independent candidates and one Adhaalath Party candidate were elected.

However, MDP MP-elect for the Thimarafushi constituency, Mohamed Musthafa, and three of the five independent candidates have since signed for the PPM.

The election of a new speaker through secret ballot is scheduled to take place at the first sitting of the 18th People’s Majlis on May 28.

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Nasheed warns of “imminent sovereign debt crisis”

Former President Mohamed Nasheed has warned of a sovereign debt crisis if the Maldives is forced to pay US$1.4 billion in compensation to GMR over the abrupt termination of a concession agreement to develop Ibrahim Nasir International Airport (INIA).

Nasheed also reiterated calls for the government to reverse the decision to cancel the contract in December 2012.

“The Maldives is now known around the world as a country that doesn’t keep its promises or honour the contracts. The airport fiasco will hit each and every Maldivian because banks won’t lend money and companies won’t invest in our country without demanding much higher rates of interest,” Nasheed was quoted as saying in a press release issued yesterday.

“By now, Maldivians should have been looking forward to a world-class, new airport, to rival Kuala Lumpur, Singapore, and Hong Kong. Instead we have nothing but an abandoned building site. The actions of President [Abdulla] Yameen and [Dr Mohamed] Waheed have caused this crisis and Maldivians will be paying for their recklessness for decades to come” he added.

The press statement insisted that international best practices were followed in the bidding process – which was overseen by the World Bank’s International Finance Corporation (IFC) – while the Anti-Corruption Commission (ACC) has since ruled out corruption in the airport deal.

Nasheed’s remarks comes on the heels of the opposition Maldivian Democratic Party (MDP) – of which he was recently appointed acting president – threatening to terminate any new agreements concerning the airport should the party regain power.

Failure to reinstate the airport development contract would cause the Maldives to “suffer unforeseeable risk and irrevocable harm,” the party said in a statement yesterday.

Compensation owed “in any case”

Following President Abdulla Yameen publicly conceding that the Indian infrastructure company was owed compensation, GMR said it intends to stick to the US$1.4 billion compensation claim.

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid,” the company said in a statement on Friday (April 26).

Asked by reporters a day earlier if he was confident the outcome of the arbitration would be favourable for the Maldives, President Yameen said: “The reality we have to accept is that a government with full sovereign powers made an agreement with a foreign party and leased [the airport]. This is a government, and what preceded this was a government as well. So believe we have to pay them some kind of financial compensation.”

If the judges on the arbitration panel accept the government’s arguments for nationalisation or expropriation, Yameen said the compensation owed to GMR could be smaller.

“We’re going to have to provide compensation in any case,” he conceded.

Yameen however contended later that GMR was owed US$300 million as compensation for its investment as well as upgrades to the airport.

Yameen had previously said that the out-of-court settlement sought by GMR was too high, and that he would await the outcome of the arbitration proceedings, which could take up to another two months.

“Sovereign debt”

The US$1.4 billion sought by GMR at the Singapore Court of Appeal for “wrongful termination” of the 25-year contract exceeds the annual state budget whilst the national debt is expected to rise to MVR31 billion (US$2 billion) this year.

Nasheed meanwhile warned that “the consequences of the outcome of the arbitration will drive the Maldivian economy to the brink, leading to major sovereign debt crisis.”

The statement noted that estimated GDP for 2014 was US$2.5 billion with an external debt of US$868 billion while the Maldives presently “receives less than US$30 million in grant aid.”

“Coupled by the budget deficit and domestic debt crisis, we are looking at a heavy burden on our children and grandchildren. It would mean by the end of 2014, debt will increase from 25 percent of GDP to 88 percent of GDP,” it added.

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MDP calls for GMR reinstatement

Opposition Maldivian Democratic Party (MDP) has called for the reinstatement of the airport development contract with Indian GMR Infrastructure and warned the party will terminate any new agreements if it comes to power.

“The MDP immediately calls on the Government of Maldives that instead of repealing the annulled agreement in order to award it to another party, to render it to its original benefactor. The failure to conduct this repeal would allow Maldives to suffer unforeseeable risk and irrevocable harm,” the party said in a statement today.

“[T]his party on this day hereby resolves that any government formed by this party shall annul all corrupt agreements made by this government regarding the airport and render it back to whom it is rightfully due.”

The warning comes following President Abdulla Yameen Abdul Gayoom’s call for new airport developers at an investment forum in Singapore.

The GMR, in consortium with Malaysia Aiports, narrowly won the International Finance Corporation (IFC) managed bid for the airport in 2010, and signed the agreement with Maldives Airport Company Ltd (MACL) under the former government of Mohamed Nasheed.

However, following a nationalist campaign to evict GMR and Nasheed’s ouster in February 2012, new President Dr Mohamed Waheed Hassan declared GMR’s concession agreement ‘void ab intio’ (invalid from the outset) in December 2012, and gave GMR seven days to leave the country.

After Singaporean court upheld the government’s decision, the GMR filed a claim for US$ 1.4 billion in compensation from the Maldives – a figure that eclipses the annual state budget. Arbitration proceedings are now underway in Singapore.

Yameen has conceded the government must compensate GMR, but said the company is only owed US$ 300 million.

The MDP noted an Anti Corruption Commission (ACC) investigation had confirmed the GMR agreement to be corruption free and said the agreement had been made according to legal and international best practices.

The ACC noted an MACL managed airport would raise US$ 254 million in 25 years while the GMR consortium would bring in US$ 534 million.

“For these reasons the MDP Government, having found that the best advantage for the Government of Maldives would be to privatise the airport, it was assigned to GMR with the benefit and wellbeing of Maldivian people in mind; where it was impliedly and manifestly known that the matter was undertaken not for political gain but rather for the public good,” the party said.

“Notwithstanding this, those in the opposition at that time not only distorted the facts completely to the people; but the consecutive coup government that followed unscrupulously annulled the Airport Agreement. MDP is adamant to the fact that their position did not consider the wellbeing of the nation and its people.”

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