Cabinet takes measures to manage 2013 budget to avoid “enormous challenges” later in the year

The Cabinet is to take austerity measures to manage the MVR 15.3 billion (US$992 million) budget passed in parliament for 2013.

According to the President’s Office website, the cabinet noted that should measures not be put in place to control the budget, the country would face “enormous challenges”.

The cabinet took the decision after discussing a paper submitted by the Ministry of Finance and Treasury. The Ministry of Finance intends to inform government offices of the austerity measures.

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Civil Court rules no need for ACC apology to Nexbis

A ruling passed by Civil Court has stated there is no need to order the Anti-Corruption Commission (ACC) to apologise to Nexbis.

The Malaysia-based mobile security provider claimed that ACC had publicly made defamatory statements regarding the agreement between the company and the immigration department, local media reported.

The case brought forward by Nexbis asked to determine whether statements made by ACC in the media were against the constitution and laws of the state.

Nexbis had also asked for an order to be issued upon ACC to refrain from making statements regarding the agreement until all court cases are settled and to publicly apologise for their actions.

Civil Court ruled it was not proven to the court that the ACC had acted outside the boundaries of the constitution or any laws of the state, local media reported.

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“STEP” program launched for training youth

The Education Ministry in collaboration with the Tourism Ministry, Human Resource Ministry, and partner resorts have launched a training and education program for ‘O’ level graduates, reports local media.

The first three months of training will include an orientation of all resort fields, followed by six months of training in the field of their choice, Deputy Human Resource Minister Abdulla Rifau explained to Haveeru.

An internationally recognised certificate will be granted to students who complete the training program.

Food, accommodations and an allowance will be provided to participants, Education Minister Dr Asim Ahmed said.

Fifteen resorts have signed up for the “STEP” program thus far, he added.

The government plans to expand the program to include construction, agriculture and fisheries sectors, according to local media.

Yesterday, Minivan News spoke with representatives from the Dhivehi Rayyithunge Party (DRP) and the Maldivian Democratic Party (MDP), who both agree income inequalities are being fueled by vested interests, faulty government policies and a lack of educational training opportunities for youth.

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India and US were never going to donate border control system: Immigration Controller

Controller of Immigration Dr Mohamed Ali has dismissed claims that India and the US had proposed to donate a border control system to the Maldives.

According to local media, the Anti-Corruption Commission (ACC) had previously stated that India and the US had proposed to set up a border control system free of charge.

The current border control system project contract has been awarded to the Malaysian company Nexbis for a period of 22 years by the previous government, however last month parliament voted unanimously to terminate the agreement over allegations of “foul play”.

Speaking on Television Maldives (TVM), Ali said the Foreign Ministry had confirmed that neither America nor India had proposed to donate the border control system.

“No country has proposed such a system free of charge. I have written to the Foreign Ministry last week and have got it in writing. They said that no country has made such an offer,” Ali was quoted as saying in Sun Online.

According to Ali, the Maldives is currently using US$2.3 million worth of passport reading machines installed in 2003. However the machines are incapable of reading the required software, so Nexbis had won a bid to upgrade the current system.

“The meaning of border control is that, when a foreigner enters the country, we are able know his whereabouts, know when he checks out of one hotel and checks into another, and know how long the person has stayed so that all this will be notified to MIRA, and whatever taxes the person owes can be duly collected.

“For the construction worker, we need to know who brought him into the country, and the site where he is currently working. [The system] has to provide all this,” Sun Online quoted Ali as saying.

Last week the Ministry of Foreign Affairs stalled the handover of 8000 passports to their respective High Commissions claiming that details regarding the owners’ whereabouts still needed to be obtained by immigration authorities.

State Foreign Minister Hassan Saeed said the Foreign Ministry would only deliver the passports to the respective consular authorities once immigration clarified the location of the owners, a task described as “huge” and “difficult” by Immigration Controller Dr Mohamed Ali.

In December last year, parliament voted unanimously to instruct the government to terminate the border control project agreement with Nexbis.

All 74 MPs in attendance voted in favour of the Finance Committee recommendation following a probe into the potential financial burden placed on the state as a result of the deal.

Presenting the Finance Committee report to the floor, Committee Chair MP Ahmed Nazim explained that the “main problem” flagged by the ACC was that the tender had not been made in accordance with the documents from the National Planning Council that authorised the project.

The documents were changed to favour the chosen party and facilitate the deal, Nazim said, which the ACC considered an act of corruption.

Nexbis is “systematically denying” any allegations of corruption, according to a company source, adding that if there was any foul play within the contract “we were unaware of it”.

Earlier this month, Vice President for Nexbis Nafies Aziz told Minivan News that “intelligence” received by the company suggested groups backing the country’s lucrative human trafficking industry could be seeking to stymie the introduction of its border control system to undermine national security controls.

Meanwhile, a source with knowledge of the present immigration and border control system said that should parliament’s termination decision be upheld, the Immigration Department would be returning to “a pen and paper system” for monitoring arrivals to the country.

The Ministry of Foreign Affairs inaugurated an initiative targeted at raising awareness of the issue of human trafficking in the Maldives at the beginning of January.

The Maldives has come under strong criticism internationally in recent years for the prevalence of human trafficking, and the country has appeared on the US State Department’s Tier Two Watch List for Human Trafficking three years in a row.

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Maldivian and Indian officials deny reported agreement to address “consular issues”

Additional reporting by Neil Merrett

Indian and Maldivian authorities have both denied media reports that an agreement has been reached on relaxing visa restrictions for Maldivians entering India.

The Indian High Commission in the Maldives today said it has not been made aware of any new agreements with Maldives authorities over amending visa restrictions, despite discussions continuing between the two nations to address “consular concerns”.

Foreign Ministry Spokesperson Ibrahim Muaz Ali also stressed that he was unaware of any official agreement being made to address the concerns raised by Indian officials.

Local media reported today that the Maldives had “agreed” to conditions set out by India in order to relax the conditions recently imposed on Maldivian nationals wishing to obtain a visa.

A spokesperson for the High Commission confirmed to Minivan News that discussions were being held with the Maldives Ministry of Foreign Affairs to address respective concerns raised by both nations.

The Indian High Commission maintained that these discussions with Maldivian officials were “not about conditions”, but rather working to address concerns held by both sides.

“We have a long and cordial relationship with the Maldives that is not based on conditions,” a source at the commission said.

State Foreign Minister Hassan Saeed, speaking during parliament’s Government Accountability Committee on Monday (January 28), said cabinet had decided to find a resolution to issues put forward by India.

“[India] had asked to resolve seven issues. Mostly they highlighted the issues faced by the 30,000 Indians in the Maldives,” he said.

“After the discussions at the President’s Office, we are currently trying to solve these issues,” Hassan was quoted as saying in local media.

During the committee meeting, Foreign Minister Abdul Samad Abdulla said Indian government officials had hinted at the relaxation of the present visa restrictions should the Maldives government agree to extradite its Indian prisoners.

“We have received various signals that the visa issue can be resolved if an agreement can be reached over the Indian prisoners in Maldives,” Samad told local media.

“Moreover, when the Indian media reports on the Indian prisoners in our jails, the officials in the Maldives High Commission in India face various pressures.”

Speaking during India’s Republic Day ceremony in Male’ on Friday, Indian High Commissioner Dnyaneshwar M Mulay pointedly conveyed greetings “to those Indian expatriates who are in Maldivian jails”.

Amd rising diplomatic tensions with its neighbour, Maldivian nationals have found themselves queuing outside the Indian High Commission in Male’ to obtain medical and other visas for travel to India.

Consular issues

The Indian High Commission in the Maldives said among the concerns raised with the government were 11 consular issues relating to the treatment of Indian expatriates in the Maldives.

These included discrimination against Indian expatriates, the keeping of passports of Indian nationals by employers and government agencies, and the exploitation of Indian workers.

“Discussions on addressing these matters are ongoing and we do hope to find resolutions from both sides soon,” said a spokesperson for the commission.

Indian authorities late last month said tightened restrictions imposed at the time on providing medical visas to Maldivians were a “signal” for the country’s government to address concerns about the nation’s treatment of migrant workers.

The Maldives has been on the US State Department’s Tier 2 watch list for human trafficking three years in a row, only narrowly avoiding tier 3 in 2011 due to promises by the former government to resolve the matter.

A lapsed police investigation into labour trafficking in the Maldives in July 2011 uncovered an industry worth an estimated US$123 million, eclipsing fishing (US$46 million in 2007) as the second greatest contributor of foreign currency to the Maldivian economy after tourism.

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Status quo and culture of blame-shifting fueling income inequality: DRP, MDP

The Dhivehi Rayyithunge Party (DRP) and Maldivian Democratic Party (MDP) agree income inequalities are being fueled by vested interests, faulty government policies and a lack of educational training opportunities for youth.

President Dr Mohamed Waheed Hassan Manik recently commented on the growing nationwide income disparity despite revenues doubling in the Maldives over the last decade, during a speech on Kan’ditheemu island in Miladhummadulu (Shaviyani) Atoll.

“The provision of incentives for the poor, and boosting their living standards to a certain minimum, are some of the efforts that could be undertaken,” Waheed said.

However the DRP and MDP have agreed that the government is grossly out of touch with the systemic problems fueling inequality in the Maldives.

“The political elite lead privileged lives and have no idea what is going on here. Many people like [President] Waheed have spent all their time overseas, which explains why public servants are primarily children of privilege with no life experience,” MDP Spokesperson MP Hamid Abdul Ghafoor told Minivan News.

“No one talks about this because they want to maintain the status quo,” he added.

DRP Deputy Leader and Spokesperson Ibrahim Shareef agreed.

“Politicians are blind to the realities of life because of political polarisation. There is no trust, everyone just shifts blame around,” he told Minivan News.

“People in a position to create change must work hard to achieve that change or problems pile up. What President Waheed is saying is one thing – he may be sincere – but let us see if it is different from what he is doing,” Shareef added.

Ghafoor and Shareef both highlighted that work and educational opportunities are very limited and still centralised in Male’. The disproportionate reliance on an inequitable tourism sector creates further income disparities.

“Government has not done enough”: DRP

Shareef told Minivan News the government has not done enough to correct these issues.

The “best and brightest” are forced to leave their islands and settle in Male’ or the resorts primarily located in the atolls surrounding the capital, while the “rich get richer and the poor get poorer”.

“Government policies and vested interests continue to widen the [income] gap that has been created between ‘haves’ and ‘have nots’ over the years, and marginalised development.

“Competing with those [privileged] people is impossible unless we form capable structures conducive to equitable development, open ourselves for broad sections of society to participate in the workforce, and enact policies that redistribute wealth,” Shareef stated.

Shareef also discussed problems that have arisen from high economic dependency on the tourism sector, which was structured inequitably during the 30-year administration of former President Maumoon Abdul Gayoom.

“Gayoom restricted the tourism sector by only allowing ‘certain families’ and allies to build resorts,” Shareef explained.

“Now Maldivians with the capability and vision to build resorts are rarely provided the license or access to investment capital needed,” he added.

Shareef said more resorts targeted toward the “middle market” are needed, in addition to anti-monopoly laws.

He also believes that the education system does not properly prepare youth for the service based economy, and is instead geared toward servicing the government.

Shareef emphasised that this shortcoming has created a huge economic problem whereby over 100.000 expatriates dominate the workforce, particularly among managerial, accounting, and clerical positions in resorts.

“There is something really wrong with the education system. We have very bright and capable youth, but 67 percent still fail O’Level exams,” he said.

“Thus, there are between 30,000 and 40,000 youth without jobs, however they think they are highly-educated so they do not take ‘menial’ jobs, preferring unemployment,” he said.

Shareef said there was an urgent need to reforming the education system to provide vocational training and raising awareness among youth that learning such skills was dignified.

“If youth are not willing, capable, or trained then the income gap widens. They just stay home loitering, spitting on and abusing passers-by.

“Meanwhile, we import labourers to do everything. This is a huge waste of human resources,” Shareef stated, calling for a ‘master plan’ to tackle the country’s social problems.

“Lack of awareness permits slave labour”: MDP

Ghafoor echoed Shareef’s remarks. He told Minivan News that the growing income inequalities are symptomatic of centralised, inequitable resource allocation – particularly in the tourism sector – as well as the lack of skills training for youth within the education system.

“The political right requires the status quo be maintained, which narrows the tourism base, and keeps the poor poor,” Ghafoor said.

“They take advantage of the lack of awareness [among youth and foreign workers], essentially creating conditions of slave labor,” he added.

Ghafoor explained how the educational skills training vacuum for Maldivian youth leads to a dependency on foreign labourers.

“At present there is a dependency on imported labour. Foreign workers – especially Bangladeshis – work under terrible conditions, for cheap, and this has led to a dramatic increase in human trafficking and human rights abuses.”

Ghafoor emphasised the serious resource allocation problem within government policies which compels youth to relocate to Male’ for employment, or seek resort work.

“The young husbands and wives who do find work at resorts are separated from their families for prolonged periods of time. Where else would employees ‘sleep on the shop floor’ and not be able to return to their families at the end of an eight hour work day? This is really impacting the social fabric of the Maldives,” Ghafoor added.

The MDP had many ideas to correct the income disparities fueled by geographic distance, particularly regarding the tourism sector, Ghafoor said.

“The MDP has a plan for radically changing the tourism approach by focusing on providing adequate compensation through a national minimum wage, locations on or closer to inhabited islands, and protecting workers rights.”

Ghafoor emphasised the need for protecting workers rights as a means to not only reduce income inequalities, but also reduce human trafficking – an issue, he said, that has only been discussed openly in the past three years.

“Proper governance, including the integration of International Labour Organisation (ILO) standards into legislation is essential, as is the development of the Tourism Employees Association of the Maldives (TEAM),” he added.

Developing guesthouses on islands “where the average family can profit” was another option for decentralising the tourism sector and creating jobs on local islands.

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Police “abruptly” stop providing security for Drug Court

The Maldives Police Service (MPS) has stopped providing security for the Drug Court as of January 20, according to local media.

The court said police had abruptly terminated providing security services without giving a reason for doing so.

Police Media Official Hassan Haneef told local media that police had not stopped providing security for the court, but had rather changed how that security was provided.

“Previously security was provided by placing police officers at the court and now the security is provided by the officers who patrol the city,” Haneef told Sun Online.

The court has taken the issue to Chief Justice Ahmed Faiz Hussain, stating that the current situation is “worrying”.

The Drug Court has repeatedly requested security from police last year before it was eventually provided, reports Sun Online.

State security forces are mandated to provide court security, as stated in Article 95 of the Courts Act.

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Fined container ship permitted to leave

A container ship that ran aground off the east coast of Male’ in early January and was fined MVR 61.6 million for damage to the area’s reef has been permitted to leave after providing a bank guarantee, reports local media.

During an investigation into the incident, the Maldivian Transit Authority prohibited the Auguste Schulte from leaving the country.

The ship’s operator, Silver Company, has said it plans to carry out its own investigation into damage sustained to the reef before paying the fine, transit authority Chair Rasheed Nafiz has previously claimed.

“As keeping the ship here would cause major losses to the company, we have given the green light for the ship to leave after the bank guarantee was given,” Nafiz explained to Haveeru.

Previously, a ship operated by Delmas – the same company local media reported as owning Auguste Schulte – was stranded in the same area for 20 days.

Mohammed Nabeel, Managing Director of Silver Company, told local media that the compensation claim for that previous ship was set at MVR 4.5 million (US$ 291,828), adding that the contrast between the two figures is “remarkable”.

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Aasandha director claims service not suspended in India’s Amrita hospital

The Amrita Institute of Technology Hospital in Kochi, India has not suspended Aasandha health care services despite reports in local media to the contrary, the scheme’s managing director has stated.

Local media reported yesterday (January 28) that services offered under the universal health care scheme Aasandha had been suspended due to unpaid bills for treatment provided to Maldivians by Amrita hospital.

However, Aasandha Managing Director Mohamed Niyaz told Minivan News today that services had not been suspended.  Niyaz said that Aasandha was instead having to control patient admittance to keep in line with the credit limit recently imposed by the hospital.

“Because of the large number of patients who went to receive treatment at the hospital in December last year and delays in paying those bills, Amrita hospital put a credit limit on the treatment they can offer that is paid for by Aasandha,” he explained.

“We are now controlling the number of patients we are admitting to the hospital in order for Aasandha to not go over the imposed credit limit,” Niyaz said.

An official from Amrita hospital told Minivan News that while it is still treating patients who are covered by Aasandha, there had been a period of four days earlier this month where it stopped admitting patients due to unpaid bills.

“There is a total of 7 million rupees (US$ 130,536) outstanding in payment to be made by Aasandha through Hospital Professional Liability (HPL) insurance, who we deal with.

“We ceased treating outpatients covered by Aasandha for four days, but HPL then paid part of the bill and so we resumed our services,” the hospital official told Minivan News.

The credit cap imposed on Aasandha by Amrita hospital was introduced to match a similar credit cap applied to all other health insurance companies who work with the hospital, the hospital official said.

“Originally we had a special agreement with Aasandha whereby they had no credit cap on the treatment we could provide. However our Financial Controller has now introduced it because it is the same as other insurance companies we deal with,” the hospital official added.

“Even now Aasandha’s credit cap is a lot higher than the other insurance companies. We have a great relationship with the Maldives and we treat our Maldivian patients as our own.”

According to Niyaz, patient treatment is currently being prioritised on a case-by-case basis in order for the service they are receiving to not be “compromised”.

In regard to bill payment, Niyaz claimed there had been a number of factors as to why the money had not been paid to Amrita hospital.

“It takes two to four weeks for the treatment bills to come through after a patient has been discharged from the hospital and then we have to pay for the treatment in US dollars,” he said.

“It takes a further two weeks for us to secure the dollars as we have to buy at a bank rate. We are trying to find ways to work around this problem at the moment.”

During December – a “peak” period for Maldivians wishing to seek medical treatment -Niyaz said there had been some issues receiving money from the Finance Ministry in order to pay the bills.

Finance Minister Abdulla Jihad was not responding to calls from Minivan News at time of press.

Niyaz revealed that Aasandha had experienced similar issues at a hospital in Colombo and three other hospitals in India, but that these have all been resolved.

Free health care of up to MVR 100,000 (US$ 6,476) was initially available to citizens under Aasandha. Changes to the system were made by the government in August last year, after concerns the scheme would run out of money.

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