The President’s Office has extended invitations to eight political parties to attend a meeting on Thursday (August 30) to discuss how to proceed following the release of the Commission of National Inquiry (CNI) report.
The eight parties who have been invited are the Maldivian Democratic Party (MDP), Progressive Party of Maldives (PPM), Dhivehi Rayyithunge Party (DRP), Qaumee Party (DQP), Adhaalath Party (AP), People’s Alliance (PA), the Maldives Reform Movement (MRM) and Jumhooree Party (JP). President Waheed’s National Unity Party, along with other small parties were not included in the invitation.
The meeting is scheduled to be held on Thursday at the Bandos Island Resort and Spa. The CNI report is scheduled to be released to the public the same day.
President’s Office Media Secretary Masood Imad ahs told Minivan news that any party involved with the All Party Talks prior to their suspension back in June were included in this invitation. He also said that any party that has been excluded was made on the basis that the organisations lack leadership. Speaking further, he said “President Waheed has always advised against street protests. Even though MDP has again started demonstrating, President Waheed is showing restraint and putting in a lot of effort to make sure the party talks are successful.”
DRP Leader Thasmeen Ali has previously stated that the party is open to discussions. However, he expressed concern that this week’s statement from President Nasheed’s appointee to the CNI, Gahaa Ahmed Saeed, may cause complications at the all-party talks.
Chief Spokesperson of Jumhooree Party, Moosa Rameez told Minivan News today that the party always welcomes discussion and as such will be participating in the talks. Regarding the MDP’s ongoing demonstrations, Rameez said “I don’t think anybody should be making an issue out of a group of people practicing a right guaranteed to them in the constitution. As long as the demonstrations are peaceful and fall within the laws of the country, I personally see no reason why this should at all have an effect on the discussions we are to have among political leaders.”
Speaking on behalf of MDP, former Minister of Tourism, Arts and Culture, Dr Mariyam Zulfa told Minivan News today that since the President’s Office had sent the invitation for All Party Talks specifically to party Chairperson, Moosa ‘Reeko’ Manik.
Manik will himself be attending the talks for the MDP. Dr Zulfa added that she didn’t believe the recommencement of direct action would have an adverse effect on the all-party talks as the invitation letter did not specify any such requirements.
“The only legal remedy for an unlawful change of power is going for early elections. We hope that the discussions are open to this option,” she said.
PPM Interim Deputy Leader Umar Naseer and Parliamentary Group Leader Abdulla Yameen were not responding to calls to Minivan News at time of press.
DQP’s Parliament Member Riyaz Rasheed and General Secretary Abdulla Ameen were also not responding when contacted.
The Police Integrity Commission (PIC) has stated its intention to release findings from ongoing investigations into alleged breach of laws and regulations by police officers during the lead up to and in the direct aftermath of February’s controversial transfer of power.
Speaking to Minivan News today, PIC President Shahinda Ismail said the institution would be releasing three separate reports. These reports will focus on the events of February 6 and 7, the events in Male’ on February 8 and the events in Addu Atoll on February 8 and 9. She also stated that these reports would be available to public upon release.
“I feel that it is of utmost importance to release the reports before the Commission of National Inquiry (CNI) report comes out. If not, there is a chance that the PIC investigations are not given the importance it merits. We’re working to get this done,” Shahindha added.
Meanwhile, local news website Haveeru quoted PIC Vice President Dr Abdulla Waheed as saying that the commission has gathered information from a variety of sources and its reporting was now almost complete.
Asked if PIC had so far taken action against any police officers found at fault through the investigations, Waheed refused to comment on it before the release of the said reports.
With reference to the HRCM reports released last Saturday, Waheed said that the commission had not yet discussed the findings concerning police conduct. He added that the commission would be able to respond to them once government offices resumed work after the holiday period.
The International Labour Organisation (ILO) has written to the Maldives government for a response to allegations that members of the Maldivian Ports Workers Union (MPWU) have been harassed over their political views.
In a letter seen by Minivan News, Cleopatra Doumbia-Henry, Director of the ILO’s International Labour Standards Department, asked the government for its observations about accusations raised by MPWU members concerning workplace harrasment.
The letter also “denounces” the termination of MPWU president Ibrahim Khaleel, executive committee member Yazeedh Abdhul Hameed and six other union members. Concerns were also raised by the ILO over the suspension of 49 trade union members, the reassignment of many union members to other ports, and accusations of threats and harassment towards union members.
The MPWU itself has previously alleged that authorities at Maldives Ports Limited (MPL) had violated worker rights based on their political activism. MPWU President Khaleel has previously sent a letter to MPL CEO Mahdi Imad, in which he said, “Although the constitution guarantees freedom of expression and freedom of assembly , it is now common within MPL to stop employees from expressing certain political views, and to violate the Employment Act by unfairly dismissing employees and transferring employees to different departments without prior warning or explanation of any offense committed.”
Speaking to Minivan News today, Deputy CEO of MPL, Ahmed Faiz said they had already sent a response to the ILO on behalf of the Maldivian government. Faiz was unable to share the contents of the letter, but said that it was based around the authorities’ belief that the MPWU was being used as a political tool.
On the topic of MPWU’s accusations of harassment and unfair treatment based on political activism, Faiz said “There can be no grounds to make these accusations. Even today MPL employs many staff who belong to different political parties. We even have people in managerial posts who are actually members of MDP.”
Faiz also went on to say, “MPL is a service provider which deals with a variety of clients. In this time of political turmoil, such activism out in the open may have a bad impact on the company itself and that is why we took measures to stop them”
Earlier this month, the World Federation of Trade Unions also expressed concern over this matter.
MPWU President Khaleel was not responding to calls at the time of press.
The Human Rights Commission of the Maldives (HRCM) will release its report on rights abuses leading up to February’s controversial transfer of power as soon as possible after parts of its findings were allegedly leaked by the Progressive Party of Maldives (PPM).
The HRCM claims that the report has not been shared with any political party as of yet, while raising fears sections of it may already have been used as a “political tool” after being disclosed to the media.
Speaking to Minivan News today, HRCM Vice President Ahmed Tholal said that the commission had only shared the report with stakeholders to whom its recommendations were relevant. According to Tholal, these stakeholders include the Maldives Police Service and other selected state institutions.
According to details of the report leaked by PPM Interim Deputy Leader Umar Naseer on Saturday (August 18), the HRCM concluded that former President Mohamed Nasheed gave “unlawful orders” to the Maldives National Defence Force (MNDF) and police officers at the Artificial Beach area on the evening of February 6.
According to Naseer, the HRCM report stated that the MNDF and police officers at the Artificial Beach area were “unlawfully” ordered to leave the area, which led to a breakdown in command and control of the security forces. Consequently, citizens were injured and huge damage was caused to the state, Naseer stated, citing the report.
While local media has reported that the document shared by PPM was the HRCM report with sections removed, Tholal confirmed that the full report had been sent to stakeholders.
Tholal said that in light of the reported leak, the HRCM now intended to share its published findings with the public at the earliest possible date. He was unable to provide a specific date, but said the decision had to be made in a commission members’ meeting as required in their regulations.
Meanwhile, HRCM Commission Member Ahmed Abdul Kareem, speaking during a press conference on July 18, stated that the commission would not be looking into the events surrounding the transfer of power on February 7 as it did not fall within the body’s mandate.
When asked about the contradictions between this statement and the accounts given by Umar Naseer that were said to be have taken from the report, Tholal responded today by saying that he had not seen what details the PPM Deputy Leader had shared. He claimed that the HRCM had not conducted any investigation into the controversial transfer of power.
Tholal also expressed concern that the report was currently being used by some entities as a political tool ,“The reason why we haven’t put in a confidentiality clause is that our intention is to release it to the public when the time comes. It is not a confidential document as such. But the point is, when it is shared, we expect it to be used for the intended purposes and not as a political tool”.
In addition to the PPM, its coalition government partner the Jumhooree Party (JP) also held a press conference about the report this week.
Local newspaper Haveeru reported that Jumhooree Party (JP) Deputy President Ameen Ibrahim stated the leaked report would put an end to questions about the transfer of power in February. According to Ameen, the two main questions around the events on February 7 had been answered through the report; firstly whether there was a coup, followed by whether or not President Waheed assumed his presidency through legal means.
While HRCM claims that they had not investigated the transfer of power through their report, JP Spokesperson Moosa Rameez contended the findings provided conclusive details on the event.
The JP representatives also stated they were very confident the upcoming Commission of National Inquiry (CNI) report would conclude the transfer of power had not been a “coup d’etat” as alleged by the now opposition Maldivian Democratic Party (MDP).
Neither the PPM’s Umar Naseer or JP spokesperson Abbas Adil Riza were responding to calls at the time of press.
A leaked audio clip apparently of Deputy CEO of Maldives Ports Limited, Ahmed Faiz, has been aired on opposition-aligned Raajje TV after it appeared on Maldivian social media and went viral.
In the 15 minute audio, Faiz speaks in detail about his intention to hire his audience as government supporters, President Mohamed Waheed’s reluctance to maintain ties with PPM, an intention to “wipe [former President] Maumoon out of the political picture”, other problems arising in the current ‘unity’ government, his own influence within the State Trading Organisation (STO), and large amounts of money being illicitly obtained.
Faiz is a member of President Dr Mohamed Waheed Hassan’s Gaumee Itthihaad Party (GIP), and was previously appointed by him as the Managing Director of the Maldives National Broadcasting Corporation (MNBC).
In the audio, Faiz boasts that he is a “close confidante” of the President, and that he had been given many assignments to help his presidency.
RaajjeTV initially aired a shorter three minute audio of Faiz, in which he boasts of being the main actor in toppling the Nasheed administration.
He goes on to say that if the change of power was indeed a coup for which the punishment was the death penalty in Islamic Shar’ia, then he himself ought to be the first to be sentenced.
Faiz confirmed to Minivan News that the clip was authentic, but said it had been recorded five months ago and cut and edited together. He had no further comment.
Ahmed Faiz: Not necessarily going out into the streets with huge knives and attacking people, okay? What I want is, for example, when the key people who are involved in this are in a certain place… for example, four or five of these people might be in a coffee-shop. You go in there, do you understand? You go and barge in right into the middle, and say, no need to be discreet at all, just say it out loud openly, ‘Hey you (expletive) dogs, this country is being destroyed because of you (expletive). Don’t even think you can do what you please with this country..’
You know what I’m saying. Start off in this manner, and then say ‘We support this government. We will keep protecting this government as long as there is even a single drop of blood left in us.’
Go on like this and say ‘If you continue to go on like that, we are willing to risk our lives.’ And you all should not stay in your homes, always be in cafes, you people should be in all the cafes of Male’ at all times. You should be in all the popular ones, especially those the opposition frequent.
You should also go on motorcycle rides. What you will do is go around on your motorcycles one night, all around Male’, yelling things like ‘Ganjabo’ (pothead) and finish it up in about half an hour. Small things like this need to be done.
What I’m saying is, this government is now appointing people to different posts and it’s getting structured in the manner we want. Now there is a lot of things that I can do. Material benefits can be gained, and lots of other things. Credit from STO (State Trading Organisation) worth millions of rufiya, that’s absolutely welcome. Do you get it? Then maybe funds are needed for some activity, for example, ‘Please arrange this amount of cash needed for something’. I will get that done. Or perhaps, ‘From this project, give us this amount of money’. Now when it’s put like that, it seems somewhat twisted to me. I tend to see that like cutting a ‘deal’.
Unidentified person 1: Like a deal, eh?
Faiz: (unclear) so what I, too, want is to (unclear) all of us staying in connection (unclear) can go even higher than that. If this government continues to stay in power, if I continue to stay in there, then something will come out of this, right? For example, freeing someone who’s been put in jail. These are things which do not involve money that I can get done simply through a single phone call. So…
Unidentified person 1: Is there anyone you need to be set free from jail?
Unidentified person 2: Not yet. We’ll have to get someone in there first.
Faiz: Eh?
Person 2: We’ll have to get someone in there, to then get him released.
Faiz: Yes.
(laughing)
Faiz: So, I’ve told you what needs to be done, generally. Tell me an approximate amount.
Person 1: Faiz, you tell us an amount.
Faiz: No, no, I won’t name an amount.
Person 1: No, you don’t name a price. Let Faiz.
Person 2: Wait, wait, wait.
Faiz: Ok, now, the President knows very well that the youth are angry for this particular reason. The President is not at all happy about having to give some posts to PPM people. He has put them into posts which will be the least influential when it comes to matters of the state.
The truth is that there is quite a lot of support for Maumoon too, and we have to accept that. If a political gathering is to be held in this country, at this moment it’s only PPM or MDP that can gather a good amount of people. No one else can do it, ok? This is the political reality of now.
We are not at all aiming to keep them close to us. The real objective is to destroy this… thing… that Maumoon has. This cannot be done by even Anni, or by anyone else in this country, unless we stay within them, and let them into the government. There is simply no other way. Now I’ve gone and said something I was not meaning to share! I have just shared with you a huge secret.
There is no way anyone can rule this country by sidelining Maumoon. We have to bring in people close to Maumoon, the youthful, educated citizens… Do you know? Already, they are themselves extending offers, claiming they don’t want to work with Maumoon, they prefer Waheed and want to continue working with him. Asking Waheed to get ready for the next government, many of these high level people we speak of.
So, in truth, what we want is to wipe Maumoon out of the picture. We won’t bother DRP (Dhivehi Rayithunge Party). We know very well that they are not capable of taking any portion of the Maldives. What’s left is MDP. Efforts are underway now to clean out MDP too. Even now the evil people in it are being pushed out and it’s becoming cleaner. So that’s how things are now.
Okay now I am making way for a remuneration. Even this credit term that I am giving now is worth a lot of money.
Person 1: Yes, we believe that.
Faiz: Lots of money. If you have the will… now, I’m giving you credit for about 60 days, or 90 days, and even if there is still a slight delay, that’s also fine, so you can make money out of it.
Now in addition to this, I am guaranteeing you that I will get you a million rufiya, if you stay with us. That I will find you a million rufiya. In any case, I will have power within this government, until 2013, do you understand? In the next couple of days, next two weeks or so, this money that I have planned for will start coming into my hands. I am in a powerful position at a place where I can get the most money, neither a managing director nor a board member can be here in a way I disapprove. I have ensured that.
I do this work in STO too. I will be getting one or two hundred thousand rufiya. I will be getting money. The purpose of obtaining this money is to get this certain thing done. Not me getting rich. The President’s intention is to get this done. This is what he said at me even tonight. ‘What can you get done, Faiz?? What is there that you have asked for, Faiz, that hasn’t been met?’ So these things…
Faiz: I am assuring you 100 percent that as long as this government continues to be in power, and as long as what I ask for is done, I won’t walk away. If what is asked for is not given number one priority, than that area of the government will be no more, the person in charge of that area will be no more.
Unidentified person 1: We are saying it as it is…
Faiz: Keep watching. In the next two weeks I will (unclear). I know it might be hard. (unclear) won’t be going for a hundred thousand rufiya. So this must be around enough. I will help you out of the small hardships in your business. Make sure (unclear) can do business in the right way, okay?
Person 1: Okay, no problem
Faiz: So plan this out very well, ok. And if there are youth needing jobs, bring them. I’ll get them into STO. Then they will have permanent jobs too. Each of them will get about six to eight thousand rufiya as salary. And it won’t be easy to just fire and replace them or anything, okay?
We can only get things done in whatever way things go best at any given time, okay? I also have in my hands a company that the President has given me. That’s MNBC. I’m the Managing Director there. And through that I have about 9 or 10 million rufiya. If there is no other way, I’ll just wipe all of that out too. Seriously. If I have to do that for political reasons, I won’t hesitate at all. I won’t be reluctant to do anything it takes to protect the President’s post or the President himself. Then later, I will just have to burn all the paperwork. Even now I have 20 million rufiya.
Person1 : For real?
Faiz: yes
(laughing)
Faiz: It’s not just a job when handling the highest matters of the state. After I got out of that house at 1.30am in the morning, even now there will be some (expletive), and was just getting on my motorcycle in front of the Justice Building, he calls again and speaks of further things we can do.
I have spoken to him without anyone else there. Just him, his wife, and me, the three of us. He won’t talk about these things in front of any other being in this country, I swear by Allah.
I mean, you know Maumoon, right? His character and the cosmetic face that he shows? Waheed won’t show anything besides that to anyone, except for me. Now you get what I am saying, right? My stand is, this government is running with the participation of many political parties, it is nothing but a (expletive).
None of these (expletives) can do anything, there’s no one in there who even got a minister’s post without calling me first. Even Thasmeen and them come and ask for posts. Then we decide whether or not to give a post, or which post goes to whom. There isn’t even a single post that has been given in this government without first discussing it with me.
The first post that was guaranteed to a person in this government was one that I had asked for, that is the post of Managing Director at STO, the one in which that Shahid Ali is. That is something I did in my interest, and I swear, it is something I myself did. There is no one who hasn’t been coveting that post. I was offered five hundred thousand dollars to get Shahid Ali replaced by a person of Yameen’s choice. I said to him… what he said to me even at the beginning is that if you are uncomfortable by this, then we shall treat this as a conversation that never happened, and I replied saying this never happened.
I said this conversation never happened. Yameen said it never happened. And that was it, I got up and walked away. That (expletive) said to someone nearby that I am a very dangerous (expletive). Now I’ve told you of some of the problems in this government.
Now, I, and even the President, should know that even without any of these political parties, I can go out personally and show the numbers I speak of, that this is of value. Then I will not be hesitant regardless of how big a piece of the cake they cut. Why would I care (expletive)? Even if they ask to cut an electric cable, just cut it. Why would I care (expletive)? Who is going to come at me? I won’t hesitate at all. Now I have power.
Even if it is a coup government, they’ll just have to (expletive). I will activate whatever I want whenever I want. Even now, I can even activate the Police or MNDF or whatever. So what I am saying is there is nothing they can do against me even. So now I’ve given you complete power over everything, so go ahead with it…
Person 1: Yes
Faiz: …anything I cannot do. I am giving you my word, a person who shares a very close relationship like that which is amongst family.
(on phone) Hey you wait. I’m in a meeting with some people. I will call, will go, once this is done.
Unindentifed person 2: Who?
Faiz: These people are simply not worth marrying. It will be a lot more easier even if we just went ahead and became homosexuals.
(laughing)
Faiz: I will dish out more money than can be found in this country. That’s what you want, right? It’s what I want too. We share common terms among us all, right?
Person 1: Yes, so it’s okay with us. Shall we go?
Faiz: Okay, so here’s what should be done. When you’ve got those guys out, make sure that 30 to 40 of them are always on.
Person 1: On-call, right?
Faiz: On at coffees. Maybe at the cafe’ near the President’s Office. Spending time there, having coffees, doing other little things they need. Okay? That place should always be dominated by them. These cafe’s should be taken over.
Then there’s Al Fresco. These places should be taken over. Should you hear anything from any side, you should rush over. And then you will say things in support of the President, okay? Even in there, you should spend time on this. You should be in all the cafe’s these (expletive) go to.
Even that place near Moonimaage, go there too. So slowly take this work forward, and along with that… Even tonight, assuming Waheed would go to this meeting at Nasandhura, they went there.
But what was this really? It was a meeting held by the Japanese in remembrance of the tsunami victims. The Japanese had very bad things to say at the MDP people tonight. They are now ruining (expletives) themselves on their own, there are some people who have gone completely crazy in this. Lots of….
Faiz: I will cook this up very well, what I too want is money. I’m telling you the truth. I’m also in hardship now. My business is ruined, all due to being involved in this. My business started going down from the time I ran for a seat in the parliament. Things started going downhill then, and all this time I’ve been trying to recover from that. But in these past three years the government terminated all the projects I had taken. They’ve caused me huge loss. So when this loss was caused, I gave up all fear for my life or death and came out against them. And now I am the biggest key to having toppled that government.
Unknown: (unclear)
Faiz: I’m the biggest key to this change in government. All that was done, all the deals that were made, all that was done, all the people that we met with, within Defense, even within Police; nothing would have taken place without my knowledge, without my participation.
If this is a coup government and there is a death sentence given out, I will be among the first to be sentenced to death. So what even I want is money, do you understand? I’m telling you the truth, it is to gain money that I have come into this.
I will only be able to acquire money when the conditions to getting more money is put in place. We’ll be able to get more money now than we have ever managed to get from this country all our lives. This is what I want. I want money too.
The proposal to develop Thanburudhoo near Male’ as a boutique surf resort will halve the number of breaks open to local surfers and particularly impact safari operators due to the limited access, a group of local surfers have claimed.
According to the July 2011 proposal, submitted by senior Maldives National Defence Force (MNDF) figures and Telos Investment, Telos would receive a 50 year lease on the military training island to develop a “boutique surf resort”, in exchange for US$5 million to develop an MNDF training facility on nearby Girifishi.
According to the proposal, the 3.6 hectare island “does not have the normal beauty found in Maldivian resorts”, as it does not have natural lagoon or sandy beaches. Furthermore, the strong currents limit recreational swimming, and therefore “the only development for Thanburudhoo which is sensible is that of a boutique surf resort.”
The surf resort would “open its doors to Maldivian surfers for a special surfing session twice per month,” the 2011 proposal notes.
“Unlike other resorts which do not allow local Maldivians to surf, Thanburudhoo would make available two surfing sessions per month, most likely Friday mornings or Saturday afternoons.
“The Maldivian surfers coming to Thanburudhoo for the special local surfing session must be in good standing with the Maldivian Surf Association and must abide by all the rules and regulations of Thanburudhoo surfing activities. Generally understood, the local surfers will not be on the resort island per se, but in the water surfing.”
Local surfers have slammed the idea. In a document circulated on social media, ‘Surfers’ Report on Thanburudhoo’, they argue that the island has two of the atoll’s four accessible waves (Sultans and Honkeys).
“If Thamburudhoo is a resort the only two accessible waves in the atoll are in Himmafushi (Jails) and Thulusdhoo (Cokes) – the number of accessible waves in the atoll is halved from four to two,” the document states.
Most of the waves in the atoll are claimed by their respective resorts, including Tombstones (Full Moon resort), Ninjas (Club Med Kani), Lhohis (Hudhuranfushi) and Chickens (Kuda Villingili).
The development of Thamburudhoo would lead to overcrowding of the remaining two waves, which “already have four surf camps each”, the surfers argue.
“There are 8-10 or more safari boats in this atoll during peak surf season. Each safari boat will have between 8 -12 surfers. Surfers from tourist resorts’ surf transfer boats can number between 10 – 30 or more from each resort. There are surf transfer boats operating from Dhonveli, Hudhuranfushi, Club Faru, Club Kani, Four Seasons, Paradise and Bandos expected each day,” the document claims.
“Surf tourism is putting food on the table for a lot of families and overcrowding of these waves could be disastrous to these surf camps. It is not right for the safari boats either since the number of surfable waves in the atoll just halved from four to two – they will lose clients or maybe even their businesses.
Furthermore, “Surf tourism is growing fast in the country and there are a number of locals who depend on these clients for their paycheck, such as; the surf guide, the captain and crew who work on the boats, and the people in the offices that operate these safaris. Some of these safari operations are not strong enough to run trips to the outer atolls. Besides the waves in most other atolls are not as consistent as the ones in North Male Atoll.”
As a result of the development, “surf tourism in this atoll will not be sustainable.”
Currently, Thanburudhoo was the only island in the atoll “that is freely accessible to both locals and foreigners. It is an uninhabited island and doesn’t have any local surfer population. Hence, no one can claim more ‘rights’ to those waves,” the surfers said.
“Maldivians have been surfing for centuries. Long before any white man showed up on these shores, or before anyone ever thought of making fiberglass surfboards, or before tourism was even a word. Blocking access to our waves is against sustaining a part of our culture. We believe that all the waves in this country should be free for all local waveriders to surf. These are our playgrounds.”
Minivan News sought comment from President of Telos Investment, Dr Gunnar Lee-Miller, however he had not responded at time of press.
Lee-Miller has previously stated that a “robust development plan” was being put in place for local surfers, and that discussions were under way with the Maldives Surfing Association over the issue.
The proposal stalled under the Nasheed government, according to former Economic Development Minister Mahmoud Razee, “partly due to timing”, but also concern over providing access to the surfing areas around the island.
However the development has now proceeded under the new administration, after the MNDF formed a joint venture company with the government last week.
In its original proposal, the MNDF argued that the development would allow needed infrastructure development on Girifushi.
“Since it began operations 22 years ago, Girifushi has never benefited from crucial infrastructure improvements. Without a proper harbour, and with outdated mechanical systems and insufficient support structures, Girifushi cannot sustain the operations and personnel it must so as to continue to be a productive base for the MNDF,” the proposal stated.
“Girifushi must undergo vital infrastructure improvements and thus, along with the construction of a leadership centre, this proposal seeks to acquire funding for the two most important infrastructure upgrades for Girifushi – a proper harbour area and increased area through land reclamation.”
The US$5 million obtained from Telos in exchange for the lease of Thanburudhoo would be “stretched” by deploying MNDF personnel to help build the leadership centre, the proposal notes.
Several resort managers have voiced concern that revenue raising measures proposed by the Finance Ministry will affect the financial viability of the tourism industry while providing little improvement in service or support in return.
The proposed measures were part of an ‘austerity’ package sent to parliament’s Finance Committee last week in a bid to address the country’s crippled financial condition.
Increased government spending – such as the repayment of civil service salaries cut during the former administration, and promotions and lump sum payments to the police and military – has not been offset by additional income.
As a result, the government has sought a succession of loans this year to pay its expenses at a time it is facing political challenges to its legitimacy, and country is facing plummeting investor confidence, a drop-off in foreign aid, an ongoing foreign currency crisis, and the challenges of its 2011 graduation to the UN’s definition of ‘middle income’.
As well as a raft of austerity measures, including the cancellation of electricity subsidies for citizens in Male’ and “reform” of the universal healthcare scheme, proposed revenue raising measures include plans to:
Raise import duty on oil to 3 percent
Impose import duty on items whose value exceeds MVR6.4 million
Raise import duties for liquor
Introduce GST for telecom services and sale of flats (both are now GST-exempt)
Raise GST rate for luxury items
Raise T-GST to 15 percent
Raise airport service charge for foreigners to $30
Increase visa fee for foreigners by MVR150
Minivan News spoke to several resort managers about the potential impact of such measures on the tourism industry. Of particular concern was the proposed increase in Tourism GST from 6 percent to 15 percent.
“That would be the biggest hit along with the liquor duty,” observed one manager.
“With the standard 10 percent service charge we’d be talking 25 percent on top. That’s too much,” he said.
Furthermore, a sudden increase in T-GST would force resorts to absorb the increase, due to contractual obligations.
“If such an announcement came after [the] contracts are signed, many operators would be forced to absorb the additional percent again,” the manager observed.
“Higher duty on liquor would be the most directly felt increase in guests’ daily extras. Our sales would take a hit,” he added.
An increase in already high oil prices due to government import duty would further increase prices.
“Oil has become more and more expensive since oil was first used. Another rise in prices would be just another rise, which, in the case of oil, would come anyway. Of course extra costs will eventually be passed on also from suppliers and will at one point always end up on the client’s bill. How much more of such a hike our clients will take, I couldn’t say. Already now the low- and mid-priced market segments are moaning,” he said.
The increase in airport charges to US$30 for foreigners would also increase the overall cost of the destination for potential visitors.
“Many other places charge one as well and I guess it has come to be accepted. If this is then garnished with higher visa fees, taxes of 25 percent, an eco-tax, bed-tax and the whole lot, it might quickly get too much though,” the manager warned.
Another resort manager told Minivan News that given the country’s almost total reliance on tourism, the government “needs to see itself as a tourism body as much as a government of a nation.”
“Tourism bodies in a general have five key responsibilities in order to increase the economic benefit of tourism for a nation,” he said: “Attract guests to the destination, have them stay as long as possible, have them invest back as much as possible into the local economy, have them recommend the destination to their friends and/or return themselves, and encourage balanced tourism development.”
The Finance Ministry’s proposed revenue raising measures “have negative implications for all five points of any basic tourism body plan,” he observed.
“As seen in the past 2-3 years, most countries have based their austerity strategies on reduced government expenditure and encouraging increases in revenue growth. This has been completed by efficiency plans for civil servants and key strategies to increase revenue,” the manager noted.
“In its actions over the last five months, the Maldives’ government has increased civil servants’ salaries, increased other costs, and are now looking at taking action that will compromise their main revenue stream. This is very different to other countries with similar financial challenges,” he stated.
“Whilst I understand that there is a need for a major revision on the Maldives economy, I would hope that cost reduction measures are implemented within the government that will balance the need for increased taxes on Maldives’ tourists. Areas of increased taxation such as oil and customs duty would be more acceptable psychologically for the tourism economy rather than an increase in direct tourists taxes and charges,” the manager added.
Soft drinks, alcohol were also rated expensive by 42 percent, while food, water and souvenirs received a similar ranking from 41 percent of tourists polled.
Tourism Minister Ahmed Adheeb and Deputy Tourism Minister Mohamed Maleeh Jamal were not responding at time of press.
The opposition Maldivian Democratic Party (MDP) has now called off the daily protest demonstrations in the capital city of Male’, demanding early presidential polls ahead of those due in July-October 2013.
This in a way has revived the hopes of early resumption of the All-Party Roadmap Talks, initiated by President Mohammed Waheed Hassan at the insistence of visiting Indian Foreign Secretary Ranjan Mathai in March.
More importantly, the agenda for the Roadmap Talks have elements that have the nation’s long-term interests in mind, and on which a certain unanimity has emerged, owing to national compulsions that are for real.
Independent of existing expectations, both within the party and outside, the MDP leadership has gone ahead with the protest rally in the Islamic fasting month of Ramadan.
However with the Eid festival season arriving with consequences for the local community, including trade and business, the MDP seems to have thought better of it. The party said that the decision to withdraw the protests should lead to the revival of the peace talks, in which the MDP’s demand for fast-tracking presidential polls is a part of the agenda.
Reacting positively to the MDP’s decision, the President’s Office said that it would help in the revival of the Talks. Following protests against Vice-President Waheed Deen in suburban Hulhulumale Island, off Male’, President Waheed has since clarified that harassment of government officials should stop before he would consider participating in the talks.
President Waheed said that he was in continuous touch with Ahmed Mujuthaba, moderator for the All-Party Talks. He has also been promised by all participant parties that either their leaders or a senior deputy (with decision-making authority) would be fielded when the talks resumed. Earlier rounds had failed to reach any decision owing to the diffused focus of the talks and also improper representation by the parties.
Interestingly, the influential former President and founder-leader of the Progressive Party of Maldives (PPM), Maumoon Abdul Gayoom, who had refused to return to the talks until his successor Mohamed Nasheed tendered an ‘unconditional apology’ for charging him with a plot behind the latter’s February 7 resignation, has not reacted yet to the protest-withdrawal by the MDP. He was not satisfied with the ‘qualified apology’ tendered by Nasheed’s aides, and has also said that despite the international probe that is now on, he would not accept the ‘coup theory’.
Intermediate confusion however crept in after the MDP interpreted the All-Party Talks being called by Vice-President Deen for resuming the stalled Parliament session, as one leading to early elections. The government has since clarified that the Vice-President’s talks flowed from Speaker Abdullah Shahid’s decision to indefinitely suspend the proceedings of the Majlis on July 31, following days of interruptions in the house. In a way, any decision on early resumption of Parliament session will help create the right environment for the revival of the Roadmap Talks, too.
Will the CoNI report come in handy?
Independent of the agenda-point on early presidential polls, the Roadmap Talks concerns national priorities that have been overtaken time and again by the political developments of the past years. On presidential polls, there is a general agreement that the international probe by the Commission of National Inquiry (CoNI) appointed by President Waheed, holds the key. The probe, with a retired Singaporean Judge on board, is expected to submit its report by the extended deadline of August 31.
Some government parties have since murmured their protests about the inclusion of an MDP nominee in the probe. Yet, they did not contest the nominations when the government – of which they were all a part – made its original nominations.
However, there is a greater realisation that any advancement of the presidential polls can be done only by Parliament amending the Constitution through a two-thirds majority, or by President Waheed quitting office, based on a public statement to the effect after the MDP flagged the ‘plot theory’ in the aftermath of President Nasheed’s resignation.
In the latter case, too, there is no constitutional guarantee to the effect, nor is the constitutional position clear. Under the law, the Vice-President steps into the shoes of the President, as Waheed did, and unless the former too quits, there be no case for early polls, it is argued. Under the Constitution, the Parliament Speaker takes over if the top two jobs become vacant, and has to conduct presidential polls within three months. Whether the CoNI report could lead to such a situation, or if the MDP would return to the streets, either way are questions for the future.
Commonality yes, consensus, not yet
On larger issues that have been flagged at the Roadmap Talks, there is some commonality of approach in individual parties, and across the board in many others. On the issue of early elections, for instance, the Dhivehi Rayyathunge Party (DRP), which is a partner in the government, has said that it would support the MDP position (without saying so) if the CoNI report endorsed the ‘plot theory’. With the DRP’s backing as the party-wise position in Parliament now stands, the MDP could hope to get the Constitution amended to facilitate early polls. But there are ifs and buts there too.
However, a consensus of sorts is required to emerge, at least among the major political players, if only to ensure stability of the polity and continuity of policies, independent of the party or leader elected to power. It would be more so considering the inherent inability of the Maldivian polity to throw up a strong president with a first round victory for self on his own and his party’s steam. Worse still would be the situation of the kind that haunted the Nasheed presidency, when the government party did not enjoy a parliamentary majority, required for amending laws, reflecting the political agenda and electoral manifesto of the president or of the parliamentary majority – whenever it cannot be both.
On governance issues, on which the MDP had quarrels with the rest of the nation’s polity even while President Nasheed was in office, the party may be tempted to have a relook at its position since. For instance, the Civil Court and the High Court have consistently come down on the Maldives Police Force for forcing the MDP cadres out of their Usfasgandu ‘camp site’ in Male. A legal row has emerged between the government and the MDP-controlled Male Municipal Council over the usage of the Usfasgandu property, taken out on lease by the latter.
The MDP thus may have to relook its position on institutional reforms. In the case of the judiciary, for instance, the party should wait till the seven-year deadline for empowerment and training ends. Having talked about institutional reforms much while President Nasheed was in office, the MDP should instead be working on a roadmap with specifics on training and legislation, possibly as a part of its promised poll manifesto.
On other issues of common concern outlined in the agenda for the Roadmap Talks, economic issues take a high place. Independent of what individual parties have to say in public, there is a general acceptance about the need for relooking at the budget and economic issues. If the Nasheed Government was vociferous in proceeding with economic reforms, subsidies-cut and increasing the tax revenue to the government, the successor Waheed government has proceeded on similar and at times stronger lines. Government leaders are not shy of talking about austerity measures, and government parties cannot change halfway through.
On the equally sensitive issue of allowing resorts on inhabited islands, which was among the charges levelled against the Nasheed Government, the Waheed presidency has since granted permission for allowing a third party to set up a resort on Thanburudh island training and recreation facility of the Maldivian National Defence Force (MNDF), the nation’s army.
While it may be a stand-alone case, compared to sanction for resorts in other inhabited islands, the question remains if that third-party could involve overseas investors or partners, in the context of the controversy still surrounding the ‘GMR contract’ for the airport project.
In this context that the Waheed Government’s current initiative for amending the Finance Act, to give the Executive freedom from parliamentary oversight and passage for selling public assets to private parties assumes significance, in political and economic terms.
As may be recalled, Parliament rushed to amend the Finance Act in 2010 after the Nahseed Government had entered into the Male airport modernisation contract with the Indian infrastructure giant, the GMR Group. It is another matter that the GMR contract did not involve the sale of any Maldivian Government assets, yet the otherwise divided opposition of the times, all of them now on the Treasury Bench, joined hands, among other things, to depict the modernisation contract as an ‘assets sale’.
Questions also remain about the wisdom of the present government entering into a joint venture with the MNDF, for the new company to enter into businesses and investments, to augment the budget for the nation’s defence forces. Experience elsewhere in South Asia too has proved that independent economic resources in the hands of the armed forces, if only after a long time, have made the services independent of the nation’s political and bureaucratic leadership in other ways, too.
Though not mentioned in the Roadmap Talks, such are also issues on which a national consensus needs to evolve, and clarity and consistency thrown into the operationalisation of whatever decision that is arrived at.
All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]
The author is a Senior Fellow at the Observer Research Foundation.
Resort tycoon and leader of the government coalition Jumhoree Party (JP), Gasim Ibrahim, has called for the resignation of Speaker of Parliament Abdulla Shahid, after he did not appear at high-level talks on Tuesday morning.
Shahid made the decision to suspend Parliament indefinitely pending a resolution to the ongoing political turmoil.
Gasim was reported as stating in local media that “if the Speaker had any sincerity he would have been here.”
The latest round of informal parliament-initiated talks – running parallel to the formal All-Party talks – were to involve a series of high-level discussions between senior party leaders. The all-party talks are one track of the international community’s response to the political turmoil in the Maldives, together with the Commonwealth-backed Commission of National Inquiry (CNI).
A UN source disputed that the all-party talks had collapsed, stating that “on the contrary we are still hoping to reach agreement on holding them again soon.”
The previous round of the UN-mediated talks, held at Vice President Waheed Deen’s Bandos Island Resort and Spa in early June, collapsed after parties aligned with the government presented the ousted Maldivian Democratic Party (MDP) with a list of 30 demands.
The list included calls that the MDP “stop practicing black magic and sorcery”, “stop the use of sexual and erotic tools”, and “not walk in groups of more than 10”.
Following the Bandos retreat, Convenor of the All-Party talks, Ahmed Mujuthaba, acknowledged the lack of progress and suggested that “In the end, the most senior political leaders will need to create an atmosphere conducive to discussions, and come together prepared to work in good faith.”
Following this morning’s meeting, Gasim observed to local media that “parliamentary group leaders of the so called big parties, Progressive Party of Maldives (PPM), Dhivehi Rayyithunge Party (DRP) and MDP were absent.”
Speaking to reporters outside the President’s Office, MDP MP Ali Waheed revealed that the party made two proposals, which were for all parties to agree to early elections or to determine a course of action based on the conclusions of the CNI report.
“Going for an early election would certainly cool the political atmosphere. Then we talked about how to act on the CoNI report due on the 30th this month. [We said] if they conclude it was a coup d’etat, President Nasheed should be reinstated and there won’t be any further discussions on that. If it was not a coup, if they conclude that the transfer of power was constitutional, we will wait for 2013,” the deputy leader of the MDP parliamentary group explained.
He added however that those found by the commission to have violated the law or committed criminal acts should face prosecution.
Ali Waheed said he expected a response from the President’s Office to the MDP’s proposals.
Gasim told reporters that participating in such talks was “meaningless” as the subject of resuming Majlis sittings was not discussed.
JP would not participate in any further talks until a solution to resuming sittings could be sought through parliament, Gasim said.
Correction: An earlier version of this article inaccurately stated that talks were part of the India-initiated All-Party talks. The talks were parliament-initiated.
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