Tag: minivan news

Red Bull Air Race entertains Friday crowds

Hundreds gathered on Male’ yesterday to watch Red Bull Air Race champion Péter Besenyei perform air stunts in a specially-designed plane over the Ekuevni Stadium area.

The event was organised by Euro Marketing Pvt Ltd, the sole distributor of energy drink Red Bull in the Maldives.

Hungarian national Besenyei, age 55, is a skilled aerobatics pilot and eight-time air race world champion. Since being approached by Red Bull in 2001, Besenyei has developed the company’s air racing competition and formulated the sport’s rules and regulations.

The Red Bull Air Race was first held in Zeltweg, Austria in 2003. International pilots compete against the clock on obstacle courses of pylons, or “air gates.”

An air race was originally scheduled for December 17 over Hulhumale’, however due to the boat traffic in the area authorities could not approve the event, Euro Marketing Managing Director Ali Waseem informed Minivan News.

Renowned Russian base jumper Valerie Rozov had also planned to perform a jump into Male’, but technical difficulties have forced Euro Marketing to re-schedule the event for next year.

“We will be hosting events in Male’ and from North to South of the country throughout 2012, including go-cart competitions and bicycle tournaments,” Waseem said.

Waseem noted that turnout for the air show was “very good,” and said Euro Marketing is seeking other events suitable to the nation’s island geography.

Head of Operations Lawrence Miranba previously told Minivan News that Euro Marketing booked the show “to bring an international event into the Maldives.”

“We are looking to create smaller events as well,” said Miranba at the time. “For instance, there’s a remote controlled plane group in Hulhumale’. We haven’t finalised anything yet, but we’d like to do something with them.”

Famed local bodu beru group Harubee performed at this weekend’s event, while a street style football competition and remote-controlled airplane race engaged onlookers throughout the show.

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Independent MP proposes amendment to “defend” local businesses from airport developer

Kulhudhuffushi-South Independent MP Mohamed Nasheed has proposed an amendment to the Business Registration Bill in a bid to reserve airport shops and services for local ownership.

India infrastructure giant GMR currently claims exclusive rights to certain duty free items to be sold at Ibrahim Nasir International Airport (INIA), he said.

“My view is that GMR’s role has shifted from management to ownership,” Nasheed told Minivan News. “This is all about excessive and detrimental penetration into the local economy.”

A parliamentary committee is reviewing the bill and its proposed amendment.

In response to inquiries from Minivan News, GMR issued the following statement: “As part of the concessionaire we follow the terms and conditions of the agreement between the government of the Maldives and us and expect the government too to abide by it.

“The concessionaire agreement grants and specifies entitlement to directly or concession out retail activities at INIA.”

GMR is currently leasing Ibrahim Nasir International Airport (INIA) for a 25-year development project. Upon assuming management of the airport earlier this year, all airport shop contracts were set to expire on December 31, 2011 as per an earlier agreement with Maldives Airline Company Limited (MACL), with the exception of Spice Island.

The Economic Ministry today announced that GMR Male’ Retail has been registered in the Maldives. It is one of two locally-registered businesses under the corporation’s name.

Nasheed said his proposal refers to “duty free, customs clearance, cargo clearance, and the management of bonded warehouses,” industries which he believes can safely be trusted to Maldivian ownership.

“I have always objected to divesting ownership of Maldivian businesses with foreign investors when the business is within the local capacity and competency,” he explained.

“I respect that there are some areas of business and industry in which the Maldives has neither capacity nor competency. But the enterprises covered in my proposal have traditionally been local affairs. There is no reason to exclude them now simply as perks for foreign investors.”

Nasheed pointed out that many Maldivian businesses grew up around and depend on airport operations. Maldivian Island Aviation has allegedly lost business since the transfer of management, while the group running the Commercially Important Persons (CIP) lounge is now defunct.

In November of this year, GMR announced its intention to take control of cargo handling services starting in 2012. The move has allegedly forced Maldivian businesses Freight Forwarding Services and Bonito Group to lay off several employees.

In recent news, the Alpha MVKB duty-free shop at the airport was forcibly vacated by GMR and Customs officials eight months after GMR’s original notice. Rulings from the Civil and High courts upheld GMR’s right to terminate the shop’s contract, however company CEO Ibrahim ‘MVK’ Shafeeq has launched a protest under the slogan ‘Go GMR Go!’

“I understand the contractual obligation on the government’s part, and I respect the bidding process and the business competition that comes with it,” Nasheed reflected. “The airport is a gateway for tourism, but GMR’s excessively favorable terms are excessively disadvantageous to Maldivians.”

The Maldivian government signed a 25-year contract with GMR on 28 June 2010.

Under the contract the Maldivian government receives:

  • A sum of US$78 million as advance payment which is to be deducted from the profit due to government.
  • 1% of the Gross Revenue in the first four years (2010-2014) and 10% of the Gross Revenue from the general business in the remaining years.
  • 15% of the Gross Fuel Sales in the first four years and 27% of the Gross Fuel Sales in the remaining years.
  • GMR is also to invest US$375 million over a period of 25 years in construction of the new terminal.

Nasheed claimed that the government saw the GMR deal as an income generating source to solve income problems at the time. “But the deal wasn’t revised over the years,” and GMR has meanwhile made significant profits from jet fuel sale.

“GMR gets its fuel from State Trading Organisation (STO). STO rates have remained the same over the past year, however GMR’s rates have been raised twice.” He added that landing and airline fees have increased, and voiced concern that the price hike would deter business.

Meanwhile, GMR has recently opened a 30-office Airline Offices Complex, and several airlines including Ethihad and Hainan have lately begun services to Male’.

The Business Registration bill reserves certain areas of business for local owners. Nasheed said his proposal aims to enlarge that domain by two to three commodities.

“I intend to use my role as a parliamentarian to propose this amendment,” he said. “It’s just an initial step for the proposal, and I’m not sure whether it will survive the whole process. But I’m hopeful and I feel good about having done it.”

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Customs investigates GMR eviction of Alpha MVKB

Maldives Customs Authority has said it will take “necessary legal actions” against GMR, which it claims illegally attempted to vacate Alpha MVKB Duty-Free shop at Ibrahim Nasir International Airport (INIA), reports local newspaper Haveeru.

Customs is investigating the case, an unidentified senior official reportedly told Haveeru.

After the attempted eviction on December 5, Customs Director Ismail Nashid told Minivan News that goods at duty free shops fall under Customs’ supervision and the “unsold goods can only be taken out of the shops with their permission”.

However, “GMR took out the goods without notifying us,” a separate Customs official told Haveeru today.

GMR directed Minivan to Customs over the issue. Customs did not respond to Minivan’s inquiries at time of press.

GMR began dismantling the Alpha MVKB Duty Free Shop, which sells alcohol, cigarettes, and watches, after “several notices” to vacate the area were “ignored” by the owners, GMR’s Head of Corporate Communications, Mahika Chandrasena earlier told Minivan News.

MVK has meanwhile decided to protest GMR’s management, in spite of rulings from the High and Civil courts that GMR’s termination of its contract with Alpha MVKB Duty-Free was lawful.

The High Court noted that GMR gave notice on March 1 and, as per the agreement, the contract terminated on March 31. As no party could extend the termination notice, the court concluded that MVK had no right to remain at the airport without approval from GMR. Alpha MVKB was originally leased for 10 years under an agreement between MVK and Maldives Airports Company Limited (MACL), with a one month termination clause, the court noted.

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Bids open for Addu Convention Center

Bidding documents for the management of Addu’s Equatorial Convention Centre have been purchased by Immigration Controller Abdulla Shahid, MVK Maldives and Singaporean PAVL Leo.

The documents will be sold until January 18 for Rf2,000 (US$129) for locals and Rf4,626 (US$300) for foreigners. Bids are due by January 19.

The three parties were announced at a pre-bid meeting at the convention center, attended by three other interested parties: Singapore-based Jason Globe Private Limited, local company Liko Travels Private Limited and Abdulla ‘Damas’ Solih of Karankaage/Seenu atoll Hulhudhoo.

Indian and Chinese companies are still expressing interest, reports Haveeru.

The center was built this year for the 17th annual SAARC Summit on a budget of Rf150 million (US$9.7 million). The area is to be developed under the Tourism Act and the Decentralisation Act.

The bid reportedly includes the 7.7 hectares of land on which the centre is built, the 21.2 hectares of pond area that surrounds the centre, and an additional 67 hectares of land on which to build a city hotel.

Addu City Council plans to hand over the centre to a winning party in February 2012. The projected time frame is 18 months.

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Male’ bus service bids open to four groups

MVK Maldives, Shiyam Auto Garage, AK Construction and MVK’s Ahmed Nazim have shown interest in providing bus service to Male’, the city council has announced.

City Council will accept bids for the project today, December 15, from the four groups exclusively, Haveeru reports. The parties are required to present a Rf500,000 (US$33,300) guarantee at the time of bidding.

The council will evaluate bids according to the parties’ demonstration of Corporate Social Responsibility (CSR) and its commitment to renewable energy.

Previously, Male’ bus service was operated by MVK Maldives for a trial period. The agreement covering the trial service expired this month.

MVK has been requested to continue service until a party is selected and an agreement reached.

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Blogger arrested as police investigate both protests

Controversial blogger Ismail ‘Hilath’ Rasheed was arrested this evening for his involvement in last Saturday’s ‘silent protest’ for religious tolerance, which turned ended in violent after several individuals attacked the group with stones. Hilath was taken to the hospital with head injuries.

According to the Sub Inspector Ahmed Shiyam, Hilath was arrested under a Criminal Court order issued today.

Rasheed’s arrest follows the blocking of his blog by the Communications Authority of the Maldives (CAM) on the order of the Ministry of Islamic Affairs. The Ministry made the request on the grounds that the site contained anti-Islamic material.

Police are currently interrogating some of the approximately 30 individuals who gathered at Artificial Beach on Saturday. Calls for an investigation of the protest were made by religious conservative Adhaalath party, NGO Jamiyyathu Salaf, and ruling Maldivian Democratic Party (MDP) MP ‘Reeko’ Moosa Manik.

While pursuing its investigation of the protest for religious tolerance, police have also summoned the developer of the website 23December.com, which this week published slogans calling for the murder of anti-Islamic activists in what organisers later described as a “technical mistake”.

Developer Ali Ahsan told Haveeru that police wanted to understand who was responsible for the website’s conception, development and published material.

“The police also questioned whether those inappropriate phrases or those slogans [calling for the killing of people] were present when the information was published on the website,” he said.

Ahsan, who also edits online publication DhiIslam, said police had confiscated the hard drive used for the development of 23December.com, Haveeru reports.

The investigation into the aggressive error began yesterday, when police questioned Adhaalath Party President Sheikh Imran Abdulla and Civil Coalition official Abdulla Mohamed over the death threats.

Sheikh Imran and Mohamed did not speak directly to the press, however their lawyer, former State Minister of Islamic Ministry Sheikh Mohamed Shaheem Ali Saeed, confirmed that police asked them about the slogans published on the website.

Shaheem said that slogans calling for murder were not on the website when it was launched, adding that the “content were manipulated by some people spying on the website”.

Abdullah, who is the lead organiser of the the protest, also told Minivan News on Tuesday that the team had not seen the slogans calling for murder until the day after the launch. ”We corrected the mistake as soon as it was brought to our notice,” Abdullah said.

He said the slogans were earlier attributed as a “mistake on technical team’s side” after they identified some loop holes in the website security, adding that their “suspicions were confirmed” when the website was hacked on Tuesday morning.

President’s Office Press Secretary Mohamed Zuhair today issued a statement blaming organisers of the 23 December demonstration for disrupting public order to achieve “hidden agendas”.

He said he not believe that removing the violent slogans from the promotional website was sufficient proof of non-violent intentions.

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Moosa calls for investigation of protesters who called for religious tolerance

MDP MP ‘Reeko’ Moosa Manik has called for an investigation of the “silent protest” for religious tolerance, held last weekend at the Artificial Beach.

The religious Adhaalath Party and NGO Jamiyyathu Salaf have also asked the police to investigate the participants.

The group, who dubbed themselves ‘Silent Solidarity’, issued a press release following the event stating that the cause of the gathering was “to make the Maldives and the international community aware of the rising religious intolerance in the Maldives, and to condemn the constitutionally-endorsed suppression of religious freedom. It is also intended to denounce the increasing use being made of Islam as a tool of political power.”

The actual protest, held on International Human Rights Day, turned into a bloody affair when controversial blogger Ismail ‘Hilath’ Rasheed was struck on the head with a stone. The other 15-30 protestors were also attacked.

Moosa has said that the protests should be treated in the same way that slogans calling for the murder of non-Muslims, published “by accident” yesterday on the Maldivian website 23December.com, are being investigated by police.

The website is currently organising a protest to “defend Islam” on December 23. The ruling Maldivian Democratic Party (MDP) recently announced its intention to hold a counter-rally on the same date.

According to Haveeru, Moosa said the rising number of religious activities are the “first in a series of events conspired to create chaos in the Maldives”. He insisted that the protest threatens national security, and admitted that MDP’s decision to protest against the religious rally would create further problems.

Press Secretary Mohamed Zuhair today said that those organising the public demonstrations to protect Islam had a “hidden agenda”, and had “increased the scale of danger to public order”.

According to a statement published on the President’s Office website, Zuhair claimed religious scholars Sheikh Adam Shameem bin Ibrahim and President of Adhaalath Party Sheikh Imran Abdullah had publicly associated their names and images with the 23December.com website. He believed that their reputations as respectable scholars were at risk over the affair.

Although the violent slogans were removed and said to be the result of hacker activity – at one staged blamed on intelligence officials – Zuhair called the removal “meaningless, because newspapers and internet websites are usually published as daily editions.”

The publishers have not refuted their violent objectives by simply removing the slogans published on their inaugural edition, he added.

Head of the National Security Committee and Thodoo MP Ali Waheed noted that the cases were of national interest and would be put on the agenda soon.

Moosa further claimed that the religious agitation was a reaction to the country’s successful tourism industry. “The Maldives’ tourism industry’s growth has attracted the foreign eye”, and foreigners are joining hands with locals to create national instability, he claimed.

Secretary General of Maldives Association of Tourism Industry (MATI) ‘Sim’ Mohamed Ibrahim said the recent political and religious activity has not affected foreign investment or tourism.

“By and large, the Maldives is peaceful and a good place to invest,” he said.

He said MATI is not taking a stand on the issue.

“All people have the right to express themselves according to their constitutional rights. All we are saying is that you have to present a balanced picture of what’s going on. There is enough written about the Maldives for people to decide for themselves” if and how to invest, he said.

Foreign travelers and investors are not concerned about the politics on Male’ and other islands, Sim explained.

“The question for them is, how safe are their investments and how safe are they on resorts,” which Sim said “exist by themselves.” He added that an investor’s chief concern is whether the Maldives’ legal system enables or protects his/her business.

“The Maldives’ system still makes it very difficult for foreigners who want to invest,” Sim observed. Under the current system, investors wade through “layers and layers of bureaucracy” involving multiple ministries and councils.

“You would assume that foreign investment could be handled by the Ministry of Economic Development, or that a Foreign Investment Services bureau would allow someone to do everything in one go,” Sim suggested. “But often, people are referred to a website for information. Now, it takes time for paperwork to be processed, and too many people are needed to make a decision. It’s very discouraging to an investor,” he said.

Formerly, foreign investment was handled under Invest Maldives. Since the company drifted into an inoperative stasis following the successful GMR bid, Sim said no other government group has actively promoted foreign investment in the Maldives.

“MMPRC [Maldives Marketing and PR Corporation] is in charge but it is hard to see them carrying the Maldives’ banner and selling the various products Maldives offers,” he claimed.

“Environment is the main selling point for the Maldives, and you don’t need to do much to sell that. But someone needs to build confidence and value among investors.”

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Parliament endorses Fathimath Filza as Consul General

Parliament unanimously endorsed Fathimath Filza’s nomination for parliamentary Consul General during yesterday’s sitting. Filza will replace Dr Abdulla Didi, who was appointed Supreme Court judge in August 2010.

Seventy MPs participated in the vote and two abstained.

Following the favorable vote for Filza, Parliament did not vote on the other two nominees, Anaara Naeem and Ummu Kulsoom Abu Bakr.

As Consul General, Filza will represent and advise Parliament on legal matters. According to Haveeru, her monthly salary will be Rf32,000 (US$2,000) along with a phone bill of Rf1,000 (US$65).

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Border loopholes benefit human traffickers: Immigration Controller

“If one country has a loophole, all countries suffer,” said Immigration Controller Abdulla Shahid, referring to the Maldives’ lack of a border control system amidst rising concerns over human trafficking. “The present border control system is only helping human traffickers.”

Authorities have reported a daily increase in human trafficking to the Maldives, particularly in the case of expatriate workers. The industry has a calculated value of US$123 million, making it the second largest contributor of foreign currency.

“This is a serious issue, there are about 40,000 illegal workers in the Maldives right now,” said Minister of Foreign Affairs Ahmed Naseem. “A border control system would be useful, especially in the future for maintenance. But there is a lot to do within the country as well, and we are currently trying to address these matters.”

The Maldives currently uses an eight year-old, outdated border control system. Plans to upgrade to a modern system have been delayed for over a year on allegations of corruption.

In November 2010, the government approved a Rf500 million (US$39 million) Border Control System by Malaysia’s Nexbis Limited, proposed by the Department of Immigration and Emigration.

Shortly thereafter, the Anti-Corruption Commission (ACC) requested that the agreement be halted due to “a serious public complaint” alleging corrupt dealings. The President upheld the ACC’s request in January 2011, by in May the Cabinet approved the program.

The ACC subsequently renewed its concerns and filed a case at the Civil Court and submitted a report to the Prosecutor General’s (PG) office earlier this month. The report accuses Former Controller Ilyas Hussain Ibrahim and Director General of Finance Ministry, Saamee Aqeel, then head of the Tender Board, for allegedly abusing their authority for undue financial gain.

Nexbis threatened legal action over the delay, citing millions of dollars in losses over equipment already imported to the Maldives. Shahid noted that the equipment is still sitting in Customs.

Immigration matters

Shahid said the public misconception that Immigration is a mundane department doing no-brainer tasks has led to a general misunderstanding of need for a border control system.

“Immigration personnel have to be trained to detect forgery, to profile passengers–we recently had courses for officers on how to detect physical alterations like makeup.

“In general, the public is not aware of the system’s value. It is to everyone’s benefit, even distant countries, to have a strong border control system in the Maldives. Terrorism and human trafficking involve other countries and their borders. If we have good communication, starting at Immigration, and a system, then we have good results.”

Currently a passport check requires an individual to manually scan hundreds of photographs, Shahid said. Without the key components of a modern system – facial recognition, finger-print identification technology, and eye scans – “people who were deported on criminal violations can re-enter the country. If they have a new or fake passport, we rarely detect them with our current system,” Shahid explained.

“A passport is just a piece of paper nowadays. The modern system, with the recognition technology, is almost a 100 percent guarantee of proper identification,” he added.

Nearby Sri Lanka, Thailand and Malaysia have been using modern systems for years.

“I think the proof is strong enough”

Shahid believes that cases against Ibrahim and Aqeel will be difficult to ignore in a court of law.

When the Nexbis system was first considered, a proposal was sent by Immigration to the National Planning Council. According to Shahid’s review of the documents, the final contract drafted deviated significantly from the initial proposal.

“The proposed system could be implemented in six months for US$4-5 million, with the company charging a further US$150-200 thousand per year for maintenance,” he asserted.

“According to this, the Maldives would pay US$8 million in the first year to Nexbis. Over 20 years that would be US$4 million paid annually. That’s fair. But right now the Nexbis plan is one-third of the budget.”

Taxes are also a consideration, particularly given the high numbers of foreigners and expatriates traveling through the Maldives.

“In 2011 we are reaching 1 million foreign arrivals. If we charge US$2 for arrival and US$2 for departure, that’s US$4 per person. Annually, the government would collect US$4 million for Nexbis. It would break even.”

Nexbis proposed these charges as part of its 20-year contract with the government in 2010.

“This means that neither the government nor the Maldivian public have to pay in exchange for a state-of-the-art border security protection,” Nexbis earlier claimed.

Shahid also noted that GMR is expanding Ibrahim Nasir International Airport (INIA) to accommodate 3 million arrivals annually, indicating that revenue will increase.

Nexbis also planned to levy a US$15 fee for expatriate identification cards. With the current 100,000 registered expatriates, Shahid said, the company receives US$1.5 million annually from expatriate cards alone.

“Nexbis will get US$27.5 million in 2025, according to the current statistics,” he said. Calculating for a gradual increase of arrivals over the next 20 years, “the generated revenue could build an airport of GMR’s standards and implement an up-to-date border control system.”

According to Shahid’s calculations, the approximate cost in the first year of installment and operation (US$8 million) of a Nexbis-quality border control system is far lower than the cost proposed in the final contract (US$39 million).

Shahid earlier estimated that maintaining a free system given by a donor country would cost at most several hundred thousand dollars a year, and said he was unsure as to why such an agreement had ever been signed.

“I don’t know much about the details of the ACC’s report,” he concluded. “Since I saw the contract for the Nexbis system, my argument has always been that the amount charged is ridiculous. It should not be done and must be halted. It is wrong.”

Ilyas Hussain Ibrahim declined to comment on the grounds that the issue was “politically risky.”

The Nexbis case is currently the largest corruption case before the courts and PG, the ACC confirmed. While corruption charges are regularly issued in the Maldives, resolution at the PG level is not so common. Speaking to Minivan News on the occasion of International Anti-Corruption Day, ACC President Hassan Luthfee said that of the 16 cases filed with the PG this year, zero have been addressed.

Vice President Muaviz Rasheed today said the ACC had received no information from the PG, but was hoping for the Civil Court’s ruling by the end of this month.

“The Civil Court has not been cooperative with the ACC on all counts, however the hearings ended in late November and we expect a ruling within the month,” Muaviz said.

Banana republic?

Although Shahid is confident in the court, he is unsure when the Maldives will take actual steps towards updating its border control system.

Without local capacity and expertise to produce a state-of-the-art border control system, the Maldives would turn again to the international market. Shahid said there are many options: “we could go anywhere, we could even get it as foreign aid.”

But after the dealing with Nexbis, withstanding international scrutiny could be difficult.

“Nexbis sees the Maldives as a banana republic that it can squeeze money out of,” Shahid observed.

With a score of 2.5 on Transparency International’s Corruption Perception Index and ranking 134th out of 185 countries, the Maldives may not be so inviting to foreign investors.

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