Part of the Maldivian Democratic Party’s (MDP) camp office on Gaakoshi in Male’ has been annexed by the Housing Ministry to make way for flats as part of the government’s housing program, reports Haveeru.
The plot of land had been leased to the party until work was to begin on the flats, Deputy Housing Minister Mohamed Faiz told Haveeru.
Haveeru reported that the office has now been dismantled and walls demolished.
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(0)Parliament will vote on Monday whether to introduce one of the government’s four key pieces of tax legislation that it has promised the International Monetary Fund (IMF) will help the country claw its way out of a crippling budget deficit.
The combined goods and services tax (GST) bill contains a general GST of 5 percent, and an increase to the existing tourism GST (TGST) from 3.5 percent to 6 percent.
Parliament voted on July 18 to send to committee four bills of the government’s economic reform package: the GST bill, an income tax, a corporate profit tax and a bill governing excise and reduction of import duties.
At the time all four bills received more than 50 votes apiece from the 72 MPs present and voting, hinting at broad cross-party acceptance of the need for taxation. Of the 72 MPs acting as a committee, 51 voted approval of the bill with the proposed amendments.
To expedite the process, an 11-member sub-committee was chosen to review the bills with five MPs of the ruling Maldivian Democratic Party (MDP), three MPs of the opposition Dhivehi Rayyithunge Party (DRP), Jumhooree Party (JP) Leader Gasim Ibrahim, one MP of the minority opposition People’s Alliance (PA) and Dhuvafaru MP Mohamed Zubair as an Independent MP.
On Monday, parliament will vote whether to finally pass the GST bill when it is presented to the chamber.
Most of the many amendments proposed to the bill by the committee are administrative, but several concern additional commodities to be exempted from GST, including petrol, diesel, cooking gas, telecoms and adult diapers.
The amendments also replace the government’s proposed start date of October 1 to within a month of whenever the legislation is published in the government’s gazette (following presidential ratification).
Following consultations with the opposition and the apparent support of 51 members for the bill, the Dhivehi Rayithunge Party (DRP) issued a pamphlet declaring it no longer supported the bill.
“They already essentially voted to support it, but now the DRP are bringing out statements and newspapers interviews saying don’t support it, and they have issued a whip line for the party not to support it [in the vote tomorrow],” said a source in the President’s Office.
The source said the government was also hoping the amendments to the Export-Import Act of 1979 would also be passed, as the GST was intended to replace it and crossover would see the same commodities being taxed twice.
At its press conference today, the DRP handed out a booklet titled “DRP’s response to the government’s fiscal and economic nuisance” with seven main points against the economic reform package.
The DRP objected to a projected growth of Rf1 billion in the budget for 2013 and expressed concern with expenditure out of the budget reaching 66 percent of GDP in 2009 – compared to 32 percent in Seychelles and 21.6 percent in Mauritius – claiming that the purpose of the new taxes was to “find money to influence the public for the 2013 [presidential] election.”
On the second point, the DRP notes that the 27 unemployment rate “proudly announced by the President” meant that 1 out of 4 people were unemployed, advocating diversification of industries to increase productivity. The DRP observed that the government’s policy for controlling inflation and spurring job growth was vague and unclear.
Thirdly, the DRP would oppose the introduction of a personal income tax on the grounds that the country’s unique geography, limited natural and human resources, and high cost for investments in the country did not make a direct tax advisable in the current economic climate.
While the government proposed that only those who earn above Rf30,000 would have to pay the tax, the DRP noted that all citizens would have to file tax returns.
“The charts of the government’s fiscal and economic nuisance package show Rf300 million will be received in 2012 from income taxes and 475 million in 2013,” it reads. “Instead of making all citizens file tax returns in order to earn 475 million two years after taxes are introduced, it would be far better to reduce the government’s useless expenditure by that amount.”
It adds that administrative costs for collecting income taxes from Maldivians living abroad would be disproportionate to the returns.
As its fourth point, the DRP noted that the General GST would affect small businesses such as cornershops, cafes and teashops, which would “need a lot of preparation” to maintain accounts and provide customer’s statements showing the GST percentage.
Morever, taxing “total value of business transactions” would not be possible with GST at zero percent for some items.
Considering the potential “administrative confusion” and the country’s heavy reliance on imports, the DRP argues that levying a customs duty at the entry point to the country was more effective.
The DRP is also against abolishing the Foreign Investment Act as it would remove protectionist restrictions, urging instead “amendments to the law to pave the way for foreign parties to invest in the Maldives and conduct businesses”.
The DRP “could not agree to sell the country’s remaining assets to the MDP’s friends” after “[losing control of] the country’s main gate, the international airport, the national telecom service, and Maldivian seas and shallows.”
Proposed amendments to the Immigration Act was meanwhile intended to “provide an opportunity for MDP’s friends to settle in the country and establish a foothold.”
Offering residential visas, it continues, would worsen unemployment and crop up “more challenges” for Maldivian professional workers.
On its final point, the DRP claims that the fiscal responsibility bill was “a scheme” to negate parliament’s amendments to the Public Finance Act and “reclaim the fiscal discretion offered to councils in the Decentralisation Act”.
In prior meetings with the government, the President’s Office source told Minivan News that “we agreed that state expenditure needed to be lowered, something the IMF was also asking for, but they mentioned none of these [other] things. We’re keeping our side of the bargain, but it’s hard to reach an agreement with them when they keep changing their minds.”
Unless the bills are passed before parliament goes for a month’s recess on Tuesday, the government may miss its commitments made to the International Monetary Fund (IMF) on announcing the economic reforms package. These included:
At the announcement of the economic reform package, Governor of the Maldives Monetary Authority (MMA) Fazeel Najeeb acknowledged that “there will be some eyebrows raised and some reservations on the measures – this is inevitable in any country changing its taxation regime.”
“There are instabilities and I hope these will be short term. But I think what we are doing is in the interest of the economy and will bring it out of the mess it is in. I think it is necessary that we act together now,” Najeeb said.
The IMF package, he noted, represented “a joint commitment by the Ministry of Finance and the central bank: a state affair in the interests of the economy and the country. Everybody in the country realises and recognises that there needs to be a change in the status quo. The status quo is a fiscal stance that is unmanageable.”
Asked whether he felt the new taxes were likely to be passed by parliament, “I think when it comes down to the details of what and how the legislation takes shape, that should be left to Majlis. What I can say is that status quo needs to change, and I don’t think this can be only reduction [in expenditure]. There needs to be a considerable amount of income increase. A combination of revenue as well as expenditure.”
Last week, at a launching ceremony for the “Fiscal and Economic Reform Programme,” Mohamed Umar Manik, chairman of the Maldives Association of the Tourism Industry (MATI), observed that a sustainable source of government revenue was necessary for providing public goods and services.
“Today we have democracy in our country, but democracy can only be strengthened if we are able to deliver,” said the Chairman of Universal Enterprises. “To do this, our government must have sources of income. A detailed reform agenda has been proposed for this. In my view, it is an ideal reform programme.”
Sunland Travels Director Hussain Hilmy stated that the Maldives’ “economic policy and legal framework needs to undergo modernisation and reform.”
“We in the business community welcome the bold initiative being undertaken to carry out a programme of comprehensive economic and fiscal reform,” Hilmy said.
He added that businesses were “delighted” with the government’s policy of a “shift away from import duties as a major source of government revenue.”
Meanwhile, speaking to Raajje TV last night, Finance Minister Ahmed Inaz said that the proposed tax system should have been in place 10 years ago, and that any further delay was unnecessary.
Inaz said the additional revenue was needed to pay civil servant salaries, and provide services such as water, power, independent institutions, sewerage, hospitals, schools “and the salaries of Majlis members and their committee allowances.”
(0)Dislikes(0)The UNDP has called for nominations for the 2012 Equator Prize, a biannual award recognising local innovation in advancing sustainable development solutions for people, nature, and resilient communities.
“Eligibility for this cycle of the prize has been broadened to accommodate a wider range of community-based initiatives and has been expanded to all countries receiving support from UNDP,” the organisation said in a statement.
“Water and energy access, food security, and adaption to climate changes are the development challenges of our time,” said Director of the UNDP’s Environment and Energy Group, Veerle Vanderweerd.
The UNDP noted that past recipients of the prize have included “grassroots” initiatives in small-scale fishing, wildlife protection and sustainable energy and water access.
The 25 winners of the international prize will receive US$5000, and 10 recipients will receive US$20,000.
Nominations can be submitted online at www.equatorinitiative.org
(0)Dislikes(0)The convention centre being constructed in Addu Atoll for the upcoming South Asian Association for Regional Cooperation (SAARC) Summit is 60 percent complete, reports the Ministry for Foreign Affairs.
This is the first time that the SAARC has been held off of Malé, and south of the equator.
Director of Communications for the Foreign Ministry, Irushaadha Abdul Sattar, said official invitations had been sent to participating countries, and teams were working round the clock to ensure the facilities were ready.
Workers were currently on a three shift a day schedule to complete the facility on time, Sattar said, noting that the physical structure was now complete and workers were focusing on internal wiring and landscaping.
“There has never been this amount of development for a SAARC Summit in the Maldives,” she said. “Roads are being built, buildings put up, wiring is being done, and this time it’s all going straight to the people.”
The Sri Lankan government has pledged to build a six kilometer road as part of project, with teams expected to arrive soon. The Foreign Ministry predicts that the facility will be completed by mid-September.
Addu City Mayor, Abdullah Sodiq, meanwhile forecast October 15 as a likely completion date for construction project, which covers 70 hectares. The Summit will be held in November.
Sodiq told Minivan News that the people of Addu were happy to see the infrastructure being built.
“The only concern is that it may not be completed on schedule,” he said, “At the beginning, progress was very slow, but now they are working very hard around the clock to be finished by October 15,” he said.
The Foreign Ministry said 30 groups have been chosen to perform sideline activities, such as entertainment, during the convention. Sodiq noted that youth groups and NGOs will be included, as well as some groups from other countries in the region.
The government has previously announced that the theme for the 17th SAARC Summit will be “Building Bridges” between member states, both in a physical and diplomatic sense.
One anticipated topic for the summit – heavily promoted by the Maldives – is the introduction of ferry services between the Maldives and destinations such as India and Sri Lanka.
President of the Maldivian Democratic Party (MDP)’s youth wing, Shauna Aminath, previously observed that SAARC member nations included those the lowest-lying in the world – the Maldives – and the highest: Nepal.
“There are differences, but we want to use these as an opportunity to celebrate as a united force to build bridges of friendship, peace and security,” Aminath said.
(0)Dislikes(0)The Indian High Commission yesterday celebrated India’s 65th anniversary of Independence, with an event attended by a large number of people from the Indian community.
High Commissioner Dnyaneshwar M Mulay hoisted the national flag during a morning function, and read the Inidan President’s address to the nation.
Speaking after the address, Mulay recognised the contribution of the Indian community and the India Club in social welfare and cultural activities in the Maldives, and said he hoped that the recent establishment of the India Cultural Centre in Maldives would further increase the range of such activities.
Maldivian President Mohamed Naseed, Vice President Mohamed Waheed Hassan, members of Cabinet, members of the diplomatic corps and other prominent members of the Maldivian community attended an India’hosted Ifthar reception in the evening at the Nasandhura Palace Hotel.
(0)Dislikes(0)The mother of a British honeymooner who died when the quad-bike he was riding on crashed into a tree on Kuredu Island Resort has called for a full investigation into the couple’s death.
Jonathan Gray and his wife Emma Gray, both 25, had been married on July 30 in West Yorkshire. They were killed a week later on August 6 at 4:00am on a Saturday morning.
Jonathan’s mother Cath Davies told the BBC she had been led to understand that the vehicle was unregistered and the driver unlicensed, and called for a full investigation to prevent such a tragedy from reoccurring.
“Somebody, somewhere, is responsible for having allowed that quad to be on the island, and those keys to be available to the young man who was unlicensed and unregistered. I’m sure I’m not mistaken, but he shouldn’t have been there,” she said.
“The lad himself, my heart goes out to him and his family because he has done something reckless and really foolish which has ended in the most tragic way possible, but he never meant for this to happen. I don’t want the responsibility to be solely his.”
The driver of the quad-bike, subsequently identified by police as Swedish national Filip Petre, a guest relations officer and son of one of the resort’s shareholders, remains in hospital in Male’ being treated for injuries he sustained during the accident.
Police Sub-Inspector Ahmed Shiyam confirmed that Petre’s was not under arrest but that his passport had been confiscated pending the outcome of the investigation, as was standard procedure in such serious cases. If Petre’s injuries required him to receive treatment outside the Maldives, “that would be a matter for our legal officers.”
Shiyam said that police had completed examining the scene of the accident and were now working to conclude the investigation as swiftly as possible.
In an emergency motion in parliament last week MDP MP ‘Reeko Moosa Manik alleged that the King Quad 700 was unregistered and Petre unlicensed to operate it.
Opposition MPs claimed that Reeko Moosa’s motion was a “personal attack” against the owner of the resort, Champa ‘Uchoo’ Mohamed Moosa, in retaliation for Champa’s television network DhiTV’s coverage of alcohol bottles found in Reeko’s car last year.
The bodies of the couple were reported to have been flown back to the UK for the funeral. Davies told the BBC that the fact the couple had been married and had enjoyed six happy years together had made the tragedy easier to endure.
“They had that day. It was perfect. Both were fantastically successful in their own lives and have their wonderful little boy. It was so perfect for them. It was almost too perfect,” she said.
The Gray’s six-month old child, Jake, will grow up “much loved by all his family,” Davies told the BBC. “He is a very happy little baby and will grow up into a wonderful man just like his father.”
(0)Dislikes(0)The government will publicise its entire economic reform agenda at a launch on Monday, President Mohamed Nasheed has said.
Speaking during his weekly radio address, Nasheed downplayed the “unfavourable consequences” of the reforms he said were being predicted by some members of parliament and “a few business associations”, stated that the package of bills would allow further development and promote growth in the Maldives.
Nasheed also noted that 40 convicts had been released under the government’s ‘Second Chance’ program and were currently being rehabilitated. The government is also running a program to train 8500 local workers in various skills, in a bid to combat widespread unemployment, particularly among young people.
(0)Dislikes(0)The Sri Lankan High Commission has refuted the existence of a special agreement allowing Sri Lankan vessels to cross Maldivian territorial waters.
News of such an agreement was published last week in Maldivian media after Sri Lanka’s Deputy External Minister Neomal Perera was quoted in Sri Lanka’s Daily Mirror newspaper as saying such an agreement had been signed.
In the Maldives, Fisheries Minister Dr Ibrahim Didi and Foreign Minister Ahmed Naseem denied such an agreement existed, while the President’s Press Secretary Mohamed Zuhair said foreign vessels already had such permission under the UN Convention on Law of the Sea.
The opposition Dhivehi Rayithunge Party (DRP) denounced the supposed agreement as an assault on soverignity and “an insult to Maldivian fishermen”, questioning the capacity of the country to monitor illegal fishing, while Maldivian Democratic Party Chairperson ‘Reeko’ Moosa retaliated by saying such a statement was “very irresponsible” as it implied Sri Lanka were “thieves”.
The matter entered parliament and MDP MP Mohamed Musthafa threatened to present a motion without notice to reverse the supposed agreement.
However in a letter sent to the Maldives Foreign Ministry seen by Minivan News, referring to articles on the matter published in local newspapers Haveeru and Miadhu, the Sri Lankan High Commission stated that “The Deputy Minister of External Affairs of Sri Lanka has made no statement claiming that a maritime agreement to facilitate Sri Lankan vessels to cross Maldivian territorial waters has been signed between the two countries. This is the official position of the Government of Sri Lanka.”
Attached to the letter was the original statement from Sri Lanka’s External Ministry, reporting that the minister had successfully negotiated the release of seven Sri Lankan vessels held by the Maldives on suspicion of poaching, but made no mention of a signed agreement to allow vessels traffic through the Maldives.
The Ministry of Fisheries meanwhile noted that while “innocent passage” was routinely granted for foreign vessels, unlicensed foreign fishing vessels were required to notify the ministry before entering the Maldives exclusive economic zone.
(0)Dislikes(0)The Maldives Police Service have identified the driver of the quad-bike that crashed and killed two British honeymooners on Kuredu Island Resort as 23 year-old Swedish national Filip Eugen Petre.
Filip Petre is the son of a shareholder of the company that operates the resort, and was employed by the company as a guest relations officer trainee, police stated.
The young couple from West Yorkshire, Emma and Jonathan Gray, were riding on the quad-bike as passengers when it collided with a tree around 4:00am on August 6. The UK press reported that the couple had been married for just seven days and had a six-month old son, Jake.
“Investigation into the incident has so far revealed that the accident occurred while the three were riding a four-wheel vehicle – a King Quad 700 – and crashed into a tree in the middle of the path,” police said in a statement today.
“Upon hearing of the accident the island doctor went to the scene of the accident and attempted to treat the victims, but told police that there was no sign of life from the two English tourists.”
Filip Petre suffered injuries in the crash and is currently being treated in hospital in Male’.
Jonathan Gray’s twin brother Michael told the Yorkshire Post that the family was “absolutely on our knees. We’re in shock and all pulling together as one big family.”
“They were the perfect couple. They were both high flyers, both doing well in their careers. They had such a great future ahead of them.”They were soulmates and their little boy was so special to them. Jake’s with us at the moment, with family,” he said.
Meanwhile students at West Yorkshire primary school – at which Emma Gray was a teacher – were being offered counselling following her death.
Deputy Head teacher Liz Whetham told the Post that Gray was an “outstanding” teacher and that staff and pupils were devastated.
“At the moment we’re taking each day as it comes, but we will be organising a memorial event for Emma in September, and setting up a book of condolence,” Whetham told the paper.
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