Tag: minivan news

MMA issues warning over counterfeit currency

The Maldives Monetary Authority (MMA) has warned the public to be vigilant over the circulation of counterfeit MVR 100 and MVR 500 notes.

The notes in question are said to be of inferior quality to the genuine currency, notably in terms of the paper on which they are printed, according to a statement (Dhivehi) issued by the financial body.

Members of the public who have acquired any suspicious notes are requested to bring them to the MMA to ensure they are authentic.

An official helpline, which can be reached by dialling 333 1793, has also been established for anyone with concerns over the counterfeit notes.

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Government halts transfer of airport operations to MIAL, pending arbitration

The government has declared that the Maldives Airports Company Limited (MACL) will continue operating Ibrahim Nasir International Airport (INIA), apparently abandoning efforts to transfer operations to the newly-created Male’ International Airport Limited (MIAL).

The President’s Office said in a brief statement today that while the government had intended MIAL to take over the airport’s operation, the decision to abandon the attempt “was was made as the termination of the contract between the government of Maldives and GMR [is] currently in the arbitration stage.”

The decision follows an increasingly fractious series of emails between MACL and Axis Bank, one of the lenders to the GMR-MAHB airport consortium which had its concession agreement to upgrade and operate the airport summarily terminated by the new administration in December 2012.

While the sudden termination of the agreement is the subject of current arbitration proceedings in Singapore, Axis Bank separately called in US$160 million worth of loans for the project which had been guaranteed by the Maldivian Finance Ministry at the time the deal was signed.

With arbitration ongoing, Axis Bank expressed concern that the creation of MIAL was an attempt to dissipate MACL’s assets ahead of a verdict and turn it into a shell company, and sought a guarantee from the government. That correspondence led to an exchange of heated letters from Singapore-based law firms representing both sides, particularly after Finance Minister Abdulla Jihad appeared to contradict earlier assurances from MACL by informing local media the transfer was expected to be completed by July 1.

MIAL’s appointed CEO Bandhu Saleem however told Minivan News at the time that “until the arbitration is complete, I think it will be very difficult to start a new company.”

Saleem is now to be appointed managing director of MACL, reported Sun Online citing a government official, with MIAL to be abolished ahead of a final decision on the matter.

Uncertainty

National political turbulence and uncertainty over the MACL-MIAL transfer in May led the global body representing the world’s airports, Airports Council International (ACI), to caution its members over the government’s potential “sale of equity in this entity to another airport operator.”

“ACI members are advised to conduct due diligence while considering any investment in the Maldives, considering the latest developments, uncertainty of outcome of elections, the legal and financial risks of the current arbitration and the nascent legal framework,” the email stated, warning potential investors that “any leadership changes arising out of the elections [could] have a material impact of the future of the Male’ airport and the decision of expropriation.”

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DRP leader Thasmeen unveiled as President Waheed’s election running mate

Leader of the government-aligned Dhivehi Rayyithunge Party (DRP) Ahmed Thasmeen Ali, has been unveiled as President Dr Mohamed Waheed’s running mate for September’s election.

Thasmeen’s appointment was confirmed by DRP Parliamentary Group Leader Dr Abdulla Mausoom, who claimed the move would allow the president to provide a viable alternative to the country’s two largest political parties.

The announcement was  welcomed by one electoral rival in the form of the DRP’s government coalition partner, the Progressive Party of Maldives (PPM), which labelled Thasmeen as “the weakest link” among all the current candidates standing in September.

The DRP last month announced that it would be joining the religious conservative Adhaalath Party and the Dhivehi Qaumee Party (DQP) in a coalition backing President Waheed and his Gaumee Ithihaad Party (GIP) in the upcoming election. The Adhaalath Party was reported in local media today as giving its full support to the partnership of President Waheed and MP Thasmeen.

Dr Mausoom said that this coalition, under the banner, ‘forward with the nation’, still remained open for other parties to join ahead of September’s vote despite today’s decision.

At present, Dr Waheed and Thasmeen will be standing against PPM presidential candidate MP Abdullah Yameen and his running mate, former Home Minister Dr Mohamed Jameel Ahmed – who was dismissed from the current government last month after announcing his decision to stand with the party.

Former President Mohamed Nasheed will also be standing for election as candidate for the opposition Maldivian Democratic Party (MDP), but has yet to unveil his running mate. Nasheed resigned from office in February 2012 under controversial circumstances following a mutiny by sections of the police and military.

Meanwhile, the government-aligned Jumhoree Party (JP) has previously said it was undecided over whether to join President Waheed’s coalition, while expecting to nominate a presidential candidate at its national conference later this month.

The JP is headed by MP and local business tycoon Gasim Ibrahim.

“Natural reaction”

Considering the rival candidates expected to stand during September’s presidential election, DRP MP Dr Mausoom said the ‘forward with the nation’ coalition has been formed as a “natural reaction” to the previous governments of former Presidents Maumoon Abdul Gayoom and Mohamed Nasheed.

“I think for people who do not see the merit in backing former Maldives Presidents Gayoom and Nasheed there is now an alternative,” he claimed, adding that both candidates would be a return to “square one” for democracy in the Maldives.

Mausoom claimed that President Waheed woukd now unite support behind a third option in Maldivian politics, that was opposed to the MDP and PPM – presently the country’s two largest political parties in terms of MP number.

He said that the coalition’s appeal as an alternative to both the Nasheed and Gayoom administrations would be its main strength.

“This is just the beginning,” Dr Mausoom added. “Thasmeen spoke today of the achievement’s of President Waheed’s government over the last year, in spite of difficult circumstances he faced.”

While both the MDP and PPM has dismissed the viability and effectiveness of coalition government in Maldives politics, Mausoom argued that the DRP had continued to back President Waheed along with several other parties in order to put national development first.

“We are at a point where we all have to climb down from party ideology and put the national interest first,” he said.

Mausoom claimed that the country’s previous coalition governments had been formed on a “circumstantial” basis, both in bringing former President Nasheed to power and then backed President Waheed. However, he claimed that parties within the ‘forward with the nation’ coalition backing President Waheed during the election were “pro-actively” united in their goal for national development.

Positive development

Speaking to Minivan News today, PPM MP Ahmed Nihan said that Thasmeen’s appointment as Dr Waheed’s running mate was not seen as a concern by the party and would actually serve as a positive development for its own election campaign.

Thasmeen took over as head of the DRP following former President Gayoom’s temporary retirement from political life in 2010.

Nihan argued that the PPM, which was founded in 2011 by a faction of MPs who broke away from the DRP alongside former President Gayoom, were “well aware of the political strength of Mr Thasmeen”.

“We are the only people who can make an informed judgement on [Thasmeen]. He is the weakest link among all the wannabe leaders at present,” he said.

Nihan said that the party would therefore carry on with it plans to begin campaigning in the north of the country ahead of September’s election.

“This is the very least of our concerns as a party,” he said.

Nihan nonetheless said that the party continued to remain concerned at what it alleged was President Waheed’s continued use of state funds and resources to support campaigning for the coalition.

“This is our one crucial concern. President Waheed needs to facilitate a free and fair election, but he has today used government speedboats to transport coalition members. This should not be seen n a democratic society,” he said. “Back in 2008, President Gayoom would have used his own party’s speedboat for campaign purposes.”

Meanwhile, MDP presidential candidate Mohamed Nasheed contended during an interview with state broadcaster Television Maldives (TVM) on May 16 that President Waheed and the DRP has been forced to form a coalition out of necessity.

Nasheed therefore questioned the president’s coalition’s claims that it presented a “third way” for voters as opposed to the policies of the MDP and PPM. Nasheed reiterated his belief that power-sharing coalitions were not compatible with the Maldives’ presidential system of government.

“I do not see a citizen who wants ‘another way.’ What is the path to deliver this way [to development]? We do not hear [political parties] talking about that,” he said. “We are presenting one path to that [development]. We believe MDP’s policies will bring prosperity to the people. I do not see this third way you referred to as ‘a way.’ I see it as two men with no other way. That is not a political philosophy,” he said.

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President Waheed ignored advice on GMR termination, PPM alleges

The Progressive Party of Maldives (PPM) has accused President Dr Mohamed Waheed of ignoring the advice of his coalition government by abruptly terminating the US$511 million airport development contract with Indian infrastructure group GMR last year.

PPM MP Ahmed Nihan said that while the PPM believed terminating the GMR contract had been the right decision, President Waheed had nonetheless personally taken an executive decision to cancel the agreement without listening to the party’s advice in seeking a compromise with the company and the Indian government.

However, the PPM’s coalition partners today accused the party of making “contradictory statements” regarding the decision to terminate GMR’s concession agreement, accusing its senior leadership of trying to terminate the deal at the time without discussion or following due process.

The allegations against President Waheed surfaced following the visit to India last week by former President and PPM founder, Maumoon Abdul Gayoom, who pledged his party would seek to restore relations with India damaged by the government’s summary eviction of the GMR.

While Gayoom ultimately blamed former President Mohamed Nasheed for not obtaining parliamentary approval and “consulting all political parties” before signing the deal with the GMR-Malaysian Airports consortium in 2010, he was also critical of the present administration’s handling of the termination.

“Had Nasheed consulted all political parties, the public would not have formed the impression that corruption had taken place. Then we told the next President Mr Waheed that he should hold discussions with the GMR Group and the Indian government to arrive at an acceptable solution, after which the government was free to act on its own,” he said. “Unfortunately, this was not done and suddenly there was this unhappy ending,” Gayoom was reported as saying in the Hindu.

“Better” handling

MP Nihan said following a press conference held by the PPM in Male’ today that the party continued to believe the decision to terminate GMR’s concession agreement was in the best interest of the country.

However, amidst concerns about the subsequent negative impacts on bilateral relations from cancelling the deal, he stressed that the president could have handled the matter “better” in order to protect the relationship between the Maldives and India.

“We believe that the room was there to correct any negative relations with India,” Nihan claimed.

“This could have been much easier and perhaps a new approach could have been found to cancel the GMR contract,” he added.

Nihan said that as well as the GMR contract, President Waheed had on a number of occasions sought to take advantage of his position by making executive decisions against the wishes of his government coalition, all while trying to shift blame away from himself.

“We have seen [President Waheed] try to spin all good developments as being the result of his work, while anything that has gone wrong [in the government] is the PPM’s fault,” he said.

Following a PPM press conference today, Nihan added that the media has been shown two different letters sent from the party’s council to the government prior to the termination of the agreement last November that called to find a solution through dialogue.

Nihan also reiterated Gayoom’s comments that the manner in which the contract was not a “happy ending” in terms of its impact on bilateral relations with India.

“We are of the view that the agreement was only to be cancelled through due process of the law,” he said.

Nihan claimed that the contract dispute had also further exacerbated concerns held by the Indian government about treatment of Indian nationals in the country. He said this had in turn created difficulties for Maldivians in obtaining visas to travel to India for medical treatment.

Considering former President Gayoom’s 30 years spent in office, Nihan praised his efforts to try and strengthen bilateral relations with India.

The government’s sudden eviction of the Indian investor did not appear on a list of 11 grievances handed to all senior Maldivian reporters by the Indian High Commission in January.  The list instead included concerns such as discrimination against Indian expatriates and the confiscation of passports by Maldivian employers.

Tension

The argument over responsibility for the GMR contract termination has comes amidst reports of increased tension within the present coalition government, with PPM presidential candidate Abdullah Yameen last month criticising President Waheed over his alleged use of state funds for campaigning.

The PPM has nonetheless pledged to continue supporting President Waheed’s government up until September’s election, despite concerns about the decision to dismiss former Home Minister Dr Mohamed Jameel Ahmed after he decided to stand as MP Yameen’s running mate.

DRP response

The PPM’s recent criticism of President Waheed’s handling of the GMR dispute was today slammed as being “contradictory” by government coalition partner the Dhivehi Rayyithunge Party (DRP).

The party added that its members had previously come under heavy criticism from the PPM for advocating at the time that any termination of the GMR airport deal should be made via the due process of the law.

DRP Parliamentary Group Leader Dr Abdulla Mausoom told Minivan News that it was in fact senior figures in the PPM that were  among the most vocal supporters for terminating the GMR agreement.

“It is ironic that we are hearing these statements from the PPM, whose leader has been witnessed supporting rallies demanding the cancellation of the [GMR] agreement,” he said.

Dr Mausoom alleged that he had also been informed from “a reliable political source” present during government consultations last year over whether to terminate the GMR agreement that it had been PPM presidential candidate Yameen who personally advocated cancelling the deal without a need for discussion.

“Either there is no harmony within the [PPM], or this is all political talk to try and gain an advantage. Either was it is very irresponsible,” he said of the PPM’s recent comments about terminating the GMR concession agreement.

Mausoom alleged that contrary to the PPM’s claims, it had been the DRP which had advocated finding a legal means of terminating the GMR agreement at at time when fellow government-aligned parties had taken to the streets holding rallies demanding the airport be “reclaimed”.

Despite appeals by GMR that it was acting as a caretaker for running and improving Ibrahim Nasir International Airport (INIA), which would remain Maldivian-owned, efforts to cancel the concession agreement – which was vetted by the World Bank’s International Finance Corporation (IFC) – intensified up to November.

On November 13, just ahead of the contract termination, a seaborne armada of about 15 dhonis carrying flags and banners circled the airport seeking to increase pressure on the government to “reclaim” the site from GMR.

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Health Trust Fund fundraising events raise over MVR 5.5 million (US$357,142)

Following a week of fundraising events the Health Ministry has raised over 5.5 million MVR (US$357,142) for the Health Trust Fund established in late April, falling short of the MVR 270 million (US$ 17,532,450) needed for health sector services.

The Health Trust Fund was established 20 November 2012 under Ministry of Finance and Treasury regulations and inaugurated on April 29, 2013.

The only way the Health Trust Fund can be maintained is through donations of sufficient assets and in this regard government and private sector contributions are very important, Minister of Health Dr Ahmed Jamsheed recently told local media.

He explained that the health sector requires an additional MVR 270 million (US$ 17,532,450), which requires public contributions and cooperation.

Previously health sector services were “covered by the people”, however following the start of the Aasandha universal health insurance scheme on 1 January 2012 the government of Maldives needed a “huge amount of finance” to cover expenses, said Jamsheed.

Therefore, the Health Ministry organised a series of fundraising events to “commence activities to raise funds, not to gather all the funds need to cover all health sector services,” he added.

“We want health services to be sustainable by putting an end to service disruptions due to machinery breakdowns as well as provide a systematic way for people to give in-kind donations,” Health Ministry Director and fundraising media team member Thasleema Usman told Minivan News yesterday (June 8).

“There has always been a budget shortfall at the Health Ministry, there has never been enough money,” Usman said.

“We wanted to try and do something for the Maldivian people, additionally there are also people who want to contribute [to the fund] for the benefit of the public,” she added.

Usman explained that the various fundraising events were organised as a start for the trust fund and to raise awareness among the public.

“We didn’t want this to be a ‘once off’ thing,” she said.

“Although the total amount of funds raised are still being tallied, as of this afternoon (June 9), the total reported was MVR 5.5 million (US$357,142), with over MVR 2 million (USD$129,870) in cash donations and more than MVR 3 million (US$194,805) from in kind contributions,” Maldives Food and Drug Authority (MFDA) Senior Scientific Officer and fundraising media team member Mariyam Shabeena told Minivan News today (June 9).

Budgetary needs

The health sector budgeted MVR 2.2 billion (US$142,857,000) for 2013, however around MVR 1.1 billion  US$71,428,500) or 50 percent of the total budget is allocated for the National Social Protection Agency (NSPA), according to Usman.

She said that over MVR 5 million is needed for social safety net subsidy programs, such as single parent’s allowance, foster parent’s allowance, disability registration and benefit and electricity subsidies, which fall under NSPA.

NSPA is also responsible for managing the national social health insurance scheme, a public-private partnership with Allied Insurance.

“Aasandha requires 1.13 billion MVR (US$73,376,550) to provide actual health care,” Usman said.

“An additional MVR 500 million (US$32,467,500) is required for Indira Gandhi Memorial Hospital (IGMH) operations and the Health Ministry budget also includes institutions, such as the Maldives Food and Drug Authority (MFDA), National Drug Agency (NDA), etc,” she continued.

Usman explained that the health trust fund will be transparent, with legal mechanisms to manage the money.

“The Health Ministry can only have a sustainable trust fund if funds are raised legally, by abiding with Finance Ministry regulations,” she said.

“The fund has a very well written policy that explains how the money will be used and what has been used,” Usman continued.

“A nine member committee chaired by the Health Minister will oversee the fund, which has a grading system to determine where funds are need most.”

Members of the public making contributions can earmark their donations for a particular island or association, but the trust fund committee needs to know what is being earmarked so contributions are not wasted, Usman added.

Events

“We have received a lot of support from the media, they have been a very, very big help,” said Usman.

A one hour telethon pre-show was broadcast nationwide from June 1 – 7 on four TV stations – MBC, VTV, DhiTV, Raajje TV – and three radio stations – MBC, VTV, DhiFM to raise awareness about the fundraising events.

“The broadcast reports showed where we are, the assistance required, and the grand realities of how the Health Ministry spends their budget,” Usman explained.

The actual telethon was held Saturday ( June 8 ) from 6:00am to midnight. It was kicked off with a sponsored walk along one of Male’s main thoroughfares.

Additionally, two charity football matches were held in Male’s National Stadium Friday (June 7), with Maldivian media presenters facing off against film stars.

The film star women’s team was victorious, winning 4 – 0 , while the men’s media team won 3-0 after dominating overtime penalty kicks.

Proceeds from ticket sales and t-shirt purchases also contributed to the Health Ministry fund.

Furthermore, a Children’s Evening fundraising event was also held at Male’s Children’s Park (Kudakudinge Bageecha).

Donation boxes were also placed at ferry terminals in Male’, as well as IGMH, regional and atoll hospitals.

“Ultimately these events were very successful because we were able to raise so much money,” said Usman.

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Gan International Airport to commence reclamation work for runway expansion

Dredging equipment to reclaim land needed to expand the main runway at Gan International Airport in Addu City is expected to arrive at the site today to begin work, local media has reported.

A dredger brought to the country to begin the work was now in the process of being transported to the airport site in Gan despite previous “difficulties” in moving the equipment, according to Sun Online.

Shahid Ali, Managing Director of the Addu International Airport (AIA) company overseeing the project, told local media that contractors would bring the dredger in between Gan and Vilingili. He said the Environment Protection Agency (EPA) was expected to provide approval for the process today.

President Dr Mohamed Waheed is then expected to officially inaugurate the dredging work this evening, according to Sun Online.

AIA contracted Dubai-based Gulf Cobla to undertake the dredging and reclamation component of developing Gan International Airport earlier this year.

Meanwhile, a UK-based company called Lagan has previously won the main contract to develop the airport, with AIA outsourcing the additional dredging work required to be completed before the main runway expansion can begin.

AIA is itself a joint venture formed by the Gan Airport Company Ltd (GACL), Maldives Airports Company Ltd (MACL) and the STO.

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No intention to transfer assets to MIAL: MACL to Axis Bank

The Maldives Airports Company Limited (MACL) and its lawyers have denied any intention of dissipating the state-owned company’s assets by transferring them to a newly-created, state-owned entity called Male’ International Airport Limited (MIAL).

MACL and the government of the Maldives are currently party to arbitration proceedings in Singapore after one of the lenders to the terminated GMR-Malaysia Airports (GMR-MAHB) development – Mumbai-based Axis Bank – called in US$160 million worth of loans which had been guaranteed by the Ministry of Finance.

A copy of the agreement from November 24, 2010, in which the Ministry of Finance guarantees the loans to GMR-MAHB, is signed and stamped by both then-MACL Chairman Ibrahim Saleem and Finance Minister Ali Hashim on behalf of the government.

Eviction and arbitration

In December 2012, the GMR-MAHB consortium, which had signed a 25 year concession agreement with the former government to manage and upgrade Male’s airport, was given a seven day eviction notice by the new government after it declared the concession agreement void ab initio, or ‘invalid from the outset’.

That decision is currently subject to arbitration proceedings in Singapore, with GMR-MAHB’s compensation claim expected to reach upward of US$1 billion. Axis Bank is pursuing the US$160 million in separate proceedings.

President Waheed’s government on March 14 meanwhile declared in a one-line statement that it was establishing MIAL as a new 100 percent state-owned company, and several weeks later announced the appointment of a board of directors including tourism tycoon and Chairman of Universal Enterprises, Mohamed Umar Manik, and Island Aviation Chairman Bandhu Ibrahim Saleem as managing director.

Finance Minister Abdulla Jihad informed local media on May 21 that MIAL would take over the operation of the airport under a management contract by July.

The apparent move to transfer MACL’s management functions to MACL led to a flurry of letters from Axis Bank to both MACL and the government, with the bank expressing concern that “if MACL ceases to manage and operate Male’ airport, and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell.”

MACL’s denial

In a letter responding to Axis Bank’s CEO Bimal Bhattacharyya, dated April 24, 2013, and obtained by Minivan News, MACL’s Managing Director Ibrahim Mahfooz claims “your insinuation that MACL is attempting to dissipate assets to avoid and satisfaction of any judgement is insulting and without any basis.”

“For the record, we can confirm that MACL has no plans to transfer any of its assets to another company,” Mahfooz writes.

He accuses Axis Bank of making a case on “hearsay and speculation”, and asks whether its threat of legal action was “part of a concerted plan with any other parties”.

“You have tried to assert that your claim of US$163,596,347.78 remains unsatisfied. We had in our previous correspondence to you made it clear that you do not have a valid claim against MACL,” Mahfooz states.

“At best your alleged claim (at its highest) is purely a monetary claim against MACL and GOM. Please set out clearly the basis in which you think your claim will not be satisfied by MACL and GOM in the event Axis Bank is not successful,” he writes.

That letter triggered a further flurry of correspondence between Axis Bank’s legal representation Norton Rose and MACL’s Singapore-based firm Advocatus.

The latter firm, acting on behalf on MACL in December 2012, successfully overturned an injunction in the Singapore Supreme Court blocking MACL from taking over the airport, on the grounds that the arbitration court had no jurisdiction to prevent the Maldives as a sovereign state from expropriating the airport.

In the Singapore Supreme Court’s full verdict, a copy of which Minivan News has obtained, Financial Controller for the Ministry of Finance, Mohamed Ahmed, “affirmed in an affidavit that the Maldives government would honour any valid and legitimate claim against it. He also stressed that the Maldives government had never defaulted on any of its payments.”

Lawyer representing MACL, Christopher Anand Daniel, “also accepted that if the arbitration tribunal found that the Appellants were wrong in their asserted case that the Concession Agreement was void ab initio and/or had been frustrated, but the Appellants had by then already gone ahead with the taking over of the airport, they would at least be liable to compensate the respondent for having expropriated the airport” (emphasis retained).

Legal barrage

Stern letters exchanged throughout late April and most of May between the two sets of lawyers suggest brewing disagreement over whether MIAL’s assumption of management responsibilities for the airport can be construed as a transfer of assets and an attempt to dissipate its assets in preparation for a costly verdict.

“Almost all of MACL’s income comes from MACL’s management and/or operation of Male’ Airport,” notes Axis Bank.

“The stated purpose for the incorporation of MIAL is for MIAL to manage and operate Male Airport. This is a role presently performed by MACL. The natural consequence of the above facts is that if MACL ceases to manage and operate Male’ Airport and MIAL instead performs that role, then MACL will lose almost all of MACL’s revenue stream, and become a shell company,” Axis Bank’s lawyers noted, adding that the government had made no effort to deny this despite repeated invitations.

In response Advocatus, in a letter dated May 10 and obtained by Minivan News, declared “Your client [Axis Bank] has no evidence that MACL is dissipating assets to begin with. It is obvious that your client is attempting to see if it can create a case by correspondence when it has none.”

Following Finance Minister Abdulla Jihad’s pledge that the transfer of assets to MIAL would be completed by July 1, widely reported in local media, Norton Rose wrote another letter noting “[the Minister’s] statements are in direct contradiction to MACL’s position in its letter of April 24 stating that ‘For the record, we can confirm that MACL has no plans to transfer any of its assets to another company.’”

“These new developments, stated in the various news reports, lend credence to Axis Bank’s legitimate concerns that MACL is in fact attempting to dissipate its assets in favour of MIAL or any other third party and, consequently, there will not be sufficient assets to satisfy any arbitral award that may be rendered in favour of Axis Bank against MACL in the arbitration,” the lawyers wrote.

Advocatus responded on May 29, again accusing Axis Bank off “desperately trying to create a case where none exists.”

“The Minister, who had given the interview in Dhivehi, had been misquoted in the English version of news reports you mentioned,” MACL’s lawyers stated.

“When he gave the interview, the Minister had in fact said that ‘asset management is going to be officially handed over to MIAL’,” Advocatus contended.

Assets, management and the draft agreement

Meanwhile, a working draft of an ‘Operations and Management’ agreement between MACL and MIAL, dated May 21 and obtained by Minivan News, notes that MIAL “is a company established with the primary objectives of operating, maintaining and managing the airport.”

The agreement states that while the Finance Ministry has granted MACL the lease of the site and rights to operate and manage the airport, “MACL, in the interest of the better management of the airport, and/or overall public interest, is desirous of granting to MIAL the functions of operating, maintaining and managing the airport.”

The agreement includes provision for the transfer of employees from MACL to the new company, and the requirement that it obtain an aerodrome certificate from the Ministry of Civil Aviation – the core authority issued by the state for a company to operate an airport.

It also noted that “no proceedings against MIAL are pending or threatened, and no fact or circumstance exists which may give rise to such proceedings that would adversely affect the performance of its obligations under this agreement.”

MIAL would be paid management fees by MACL, although the extent of these are not included in the particular draft obtained by Minivan News. The agreement does however set out how “MIAL shall, on behalf of MACL, deposit all monies received from the operation of the airport into one or more bank accounts in the name of MACL.”

Board issues

Despite the Finance Minister’s comments on May 21, MIAL’s appointed CEO Bandhu Saleem has told Minivan News that “until the arbitration is complete, I think it will be very difficult to start a new company.”

Minivan News is seeking to establish the current status of the new company. However further obstacles appeared this week in the form of the government’s Attorney General Aishath Bisham, who informed local media that President Waheed lacked the authority to appoint the boards of government-owned companies following the ratification of January’s Privatisation Act.

Instead, she said, the privatisation board created under that act operated as “a separate legal entity, and has the sole authority to appoint board members.”

Besides MIAL, President Waheed also in February appointed the board of the Maldives Ports Authority Limited (MPL).

“The Privatisation Board should investigate those cases,” suggested the attorney general.

Former President Maumoon Abdul Gayoom, whose Progressive Party of the Maldives (PPM) was among the most strident opponents to GMR-MAHB’s development of the airport, meanwhile appeared to have adopted a conciliatory tone during a visit to India last week to smooth troubled relations.

“[The cancellation] was a very populist move at the time as the public had a perception that the contract was bad for the country. The way it was handled was not good,” Gayoom was reported as telling Indian newspaper The Hindu.

“I am sad that this has somehow affected our bilateral relations. We want to overcome that and restore our relationship with India to its former level,” Gayoom told the paper.

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President Waheed returns from Palestine visit

President Dr Mohamed Waheed has returned to Male’ today after an official visit to Palestine, where he chaired the 4th International Islamic Conference of Bait Al Maqdis.

Dr Waheed used his visit to hold talks with Palestinian President Mahmoud Abbas on extending relations between the two nations, while also visiting key local sites such as Birzeit University.

Speaking at the university on Wednesday (June 5), President Waheed discussed a number of issues such as climate change and its impact on development in the Maldives.

He also talked to students concerning consolidating democratic change in the Maldives, according to the President’s Office website.

Whilst chairing the Islamic conference during his visit, President Waheed pledged the Maldives’ continued support to finding a two-state solution to ensure peace between Palestine and Israel.

He also reiterated the Maldives’ position backing the establishment of the State of Palestine with East Jerusalem as its capital from lands occupied in the 1967 war.

Ahead of the conference, Dr Waheed was presented with the ‘Star of Palestine’ by President Mahmoud Abbas on June 4 in recognition of his efforts to strengthen relations between the two countries, the President’s Office website has said.

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Police grant 710 officers permission to grow beards following regulation change

Over 700 policemen have been issued permission slips to grow their beards, local media has reported.

710 police officers requested permission to grow their beards following the amended dress code published in the government gazette on May 30, 2013.

Although the rules regarding beard growth were not specified in the gazette, police “urgently” amended the regulations to allow beard growth up to two centimeters.

Police officers issued permission slips will be required to photograph themselves after seven days.

“After that they will be granted permission to grow their beards,” a police spokesperson told local media.

Bearded police will then be issued an identity card, however the recipients will not be allowed to make any alterations to their beards while the card is valid.

Uniform regulations for Maldives National Defence Force (MNDF) officers were also amended June 1 to allow military personnel to grow beards up to two centimeters.

Soldiers who chose to grow their beards must also obtain permission and are required to take a vacation until their beards are fully grown, MNDF Spokesperson Colonel Abdul Raheem told local media.

Defence Minister Mohamed Nazim previously told local media that the decision was made after requests from MNDF officers, on the grounds of religion and human rights.

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