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GMR not worried about airport politicking, will invest US$373 million

The GMR-Malaysia Airports Holdings Berhad (MAHB) consortium that recently won the controversial bid to develop Male’ International Airport will spend US$373 million on the upgrade, MAHB has reported.

Speaking at the opening of the cavernous Delhi Terminal 3 last week, GMR Manager P Sripathi told Maldivian journalists that physical work would begin on the airport towards the end of this year.

“The first phase is organising the finances and transitioning the airport from a government-run enterprise to a privately-run enterprise,” he explained.

“The transition will be a new thing [for the Maldives] and we will be there to help with that. We have done such things in other places, and we know how to go about it,” he said.

“There are over 100 various items have to be agreed and signed off between the [incumbent] Maldives Airport Company Limited (MACL) board and ourselves, but we expect to see work start on the new terminal 9-10 months from now.”

Sripathi said that within six months GMR would upgrade existing facilities at Male’ International Airport “to a level that international passengers and tourists may [expect]. We will deal with the ‘pinch points’ that are there today.”

Ultimately the development will involve 45,000 square metres of new terminal, repair and expansion of the runway, parking and taxiing space, and a turning point so more flights can be landed in the space of an hour.

The infrastructure giant’s ‘brownfields’ approach – refurbishing an active airport, as opposed to a ‘greenfields’ or ‘from scratch’ project – mirrors that of its much larger airport development in Dehli. The old terminal was upgraded prior to the opening of the new one last week, which is now expected to cater to 90 percent of the airport’s passengers, with capacity of 34 million per annum upgradable to 100 million.

Sripathi acknowledged that while nothing of similar scope was going to be built in the Maldives – Male’ International Airport currently handles 800,000 passengers per annum (each way), “[Dehli] is definitely in the vein we are planning.”

Representing a company about to plow US$400 million into Hulhule, Sripathi is unsurprisingly unconcerned about rising sea levels: “Worried? Absolutely not. Land that has been there for 2500 years is not going to disappear in 25 years,” he chuckled.

Local controversy regarding privatisation and the recent political upheaval have given equally little pause to the infrastructure juggernaut – but its recent entertainment of the Maldives press pack suggest it is sensitive to domestic public opinion.

“We are not worried, because we are out of the fold. We are here to do a job,” Sripathi said.

The debate [over privatisation] has obviously been there for a long time, and is perhaps coming to an end, that we leave to [the politicians]. We are only here to do our bit.”

Accusations by opposition parties about the transparency of the bidding process were not something in which GMR saw itself involved, Sripathi said.

“Let me distinguish our role from the government’s role,” he said. “Whatever the political debate that goes on in the country, we shouldn’t be interfering – that is not our duty. That is between the executive and the [opposition]. In this particular instance, if there is opposition to privatisation then this debate has taken place over many years. Otherwise government wouldn’t have initiated this privatisation program in the first place.

airport3 — Natural lighting in the new terminal building

“The World Bank IFC has [monitored] this exercise and given a very good report, and that is where this should stop,” he said.

The government’s calculations acknowledge that the strength of GMR’s bid came from its US$78 million upfront payment (compared with US$27 million from the second-highest bidder) and in particular, its 27 percent sharing of fuel revenue.

Based on GMR’s forecast, the government anticipates that 60 percent of government revenue from the airport deal will derive from fuel – $74.25 million annually between 2015-2020, increasing to US$128.7 a year from 2025-2035. This in turn was the most significant element of the final ‘net-present-value’ calculations to determine the winning bid.

The Turkish-French consortium TAV-ADPM, who expressed dissatisfaction with the bid evaluation process to newspaper Haveeru and requested a “re-evaluation of the bids”, expressed disbelief that the GMR-MAHB consortium would be able to offer such a high percentage of the fuel trade to the government “without facing any loss.” TAV-ADPM had offered 16.5 percent, warning that pushing prices higher would drive buyers away.

Sripathi claimed 27 percent was “absolutely reasonable. We have done our homework, otherwise we would not have made the bid.”

“In Male [airport] there are two types of fuel trade going on: MACL sells directly to airlines, and in another kind of sale, parties buy from MACL and then sell to airlines,” he explained. “We looked at the margins of both lines of business, kept the same percentages, and calculated what we could offer the government if we took over all this and amalgamated it under one umbrella. The margin we can give to the government? 27 percent.”

Quizzed as to whether it was reasonable to estimate a revenue share by forecasting fuel prices over the lifespan of a 25 year agreement, Sripathi replied “everybody predicts. There are international agencies that predict the way fuel prices will go up and down.”

“I’m talking about the top line,” he said. “Bottom line, if the fuel prices go up, similarly everywhere will go up and the selling prices will also go up. We have to put a margin in there.”

At its airport in Hyderabad, GMR allows five independent fuel suppliers to compete to offer the most competitive price to the airlines.

In Male, “the volume does not support that. In India there are refineries and many fuel companies operating, and fuel companies can sell directly to the airlines,” Sripathi noted. “But in the Maldives fuel is imported, and the volumes are such that not many people come and buy fuel – the model is different.”

While its fuel figures are undoubtedly one of the major reasons behind GMR’s winning bid, a simple fuel monopoly is unlikely to recoup the consortium’s US$400 million investment.

Either GMR anticipates that global growth in the fuel trade is worth the risk, or it is taking a hit on the fuel price for the sake of offering a much lower 10 percent share of gross airport revenue, as compared to the other bids (TAV-ADPM offered almost 30 percent). The only figures available to the government in estimating this revenue (a staid US$20.43 million by 2025-2035) will have derived from the existing commercial revenue from the airport.

Compared to the glittering Gucci-lined corridors of airports in tourist cities such as Dubai, Male’ International’s 4-5 meagre departure lounge shops and dilapidated eateries look positively downtown in comparison – a striking missed opportunity, given the bulging wallet of the average visitor to the Maldives.

Sripathi indicated that the consortium is very interested in the well-heeled concourse traffic – sufficiently interested for the infrastructure giant to invest a sum equal to almost half the country’s entire GDP.

“It’s a lovely project. The type of tourists coming are from the very high-end tourism market, therefore the business opportunities are plenty,” Sripathi hinted.

“I would say the airport is naturally located to advance a lot aspects, like cargo. For example, many people would be surprised to know just how much cargo goes through the airport, because of the number of international connections and wide body aircraft using the airport. People are transiting air freight through the Maldives from places like Colombo – this means there is niche value out there.”

Some investment will be recovered through a US$25 airport development tax, set by the government for all bidders to be levied only on international travellers at time of departure and added to ticket prices.

Inside the concourse

Sweetners

Many longer term “vision” projects associated with the airport seem designed to appeal to government planners. The airport will be unlocking 50 acres of land and will develop “what we envision will become the Maldives’ financial district,” Sripathi said. “That’s from our vision document. [The government] asked what can be done, and we used our expertise and experts from the US, and this is one of the things we have proposed.”

The company also runs a social responsibility foundation, GMR Varalakshmi, that funds schools and vocational training in areas where it operates. The company took the Maldivian media on a tour of its centre near Hyderabad, which included a residential technical training college running free courses for 500 young people in trades ranging from air-conditioning and electronics to IT, sewing and hotel management – often in conjunction with the group’s partners and suppliers. Guides emphasised the importance given to instilling discipline and professionalism in students, as well as technical training.

Regarding salaries and employment of existing airport staff in Male’ – a key point of contention among the opposition parties critical of the deal – Sripathi commented that the company was “not about to bring Indian standards [of employment] to Maldives – income levels and expenses are dependent on place – it is independent.”

Ground handling, currently outsourced to Island Aviation, will be taken over by the new airport company, Sripathi confirmed.

“Whether we need more than one ground handling company depends on the size of business,” he said. “If size of business allows it, then we can [involve another company], otherwise there will be single party doing it to international standard.”

For other airport staff – aside from security, immigration and air traffic control, which will continue to run by the government as per other international airports – the 1500 people currently working at the airport “will become part of the privatisation process. We are in talks MACL board members,” Sripathi said.

“We are looking at their concerns and anxieties – ultimately people think somebody is coming into the country to take over the airport. But we are here to help develop the airport’s assets and show people its full potential,” he continued.

“But what is important keep in mind is that investment in an airport is a heavy investment – US$400 million is a heavy investment. These sorts of numbers must be returned to us – and the government – otherwise we both cannot survive.”

Disclosure: Minivan News and 10 other representatives of the Maldivian media recently toured Hyderabad airport and attended the opening of Dehli Terminal 3 as guests of GMR.

Correction: A previous version of this article erroneously referred to ‘Malaysia Airlines (MAHB)’ in one instance, where it should have read ‘Malaysia Airports Holdings Berhad (MAHB)’. This has been corrected.

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Comment: Toothless Civil Society

When a people’s liberties are suspended whenever there is an emergency, there is a word for that: dictatorship. There is a line between democracy and dictatorship – and over the course of the last week we came dangerously close to stepping over it.

Not necessarily because of the President’s actions, the incarcerations, or the now common place parliamentary upheaval, but because those who should have spoken out remained silent.

Yes, you in the civil society need to raise your voices. Raise your voices to demand explanations, protest abuses, and safeguard the right to criticise a sitting government.

Instead of raised voices, however, we have only heard silence. And this started from the moment this affair began. The President’s office holds a press conference where the entire cabinet resigns, the President asserts his supreme authority to find justice, and what does the media say? Do they question the legitimacy of the action? Do they ask what this will mean for the peace in this nation? Or even whether the government expects demonstrations in retaliation and how the President (now the only civilian authority over the police and army) will respond?

No. They stay silent. Well, practically silent. The hardest hitting question was “does this mean your government is a failure?”

Really? Good job guys.

But who can blame the fledgling media groups in this nation. Unaccustomed to true democracy, they are not the ones who are directly tasked with protecting and asserting our democratic rights and ensuring this transition from autocracy to democracy actually works out. Who does this benevolent task fall to?

Civil Society

Organisations such as Transparency International, Democracy House, Open Society Association, and the newly renamed Maldivian Democracy Network all claim to safe guard democracy.

To work for its betterment – and yet civil society remained silent. Even Jamiyathul Salaf, who seem to have religious edicts about everything, stayed silent.

We have seen allegations of corruption first leveled by the executive branch against the legislative branch and then visa versa. We have not only seen wire-tapping where private conversations were recorded without warrants and outside of due process, but also seen them leaked to the public, indicating that civilian/partisan individuals had access to them.

We are witnessing a power struggle between executive and legislative branches with neither side realizing that they are both part of one government. And we see a judiciary that is caught in the middle and being accused of being susceptible to political influence.

We see the army working side by side with the police in the capital, outside of their mandate. We see all the things that would be any democracy fighter’s dream. The perfect excuse for a civil society group to put their two cents in, allowing them to claim they are meeting their own mandates. But instead we have silence and even some amount of fear.

The Fray

Civil society seems to be afraid of jumping into the fray. Of being labeled as being inclined towards one political party or another. Instead they give no comment and it is not hard for one to come up with excuses for why they should not comment at all.

Firstly, everyone must realise that this is a highly charged political atmosphere where any statement at all will be seen as aligning with one group or another.

Secondly, no formal charges have been brought against the three Members of Parliament (MPs) who have been detained. Instead, all that we have seen is allegations being flung about – none of which are easy to comment on.

And finally the questions: can’t there be levels to democracy? Where we move gradually towards it? After all, have any laws actually been broken?

The Other Side

The argument could be made however, that one cannot wait to evaluate. That civil society organizations are supposed to have principles and ideals that they adhere to above all others. And unlike political parties who can take time to organize, reflect, and adjust their values – civil society act on the basis of whether their values have been violated or not.

Does the MNDF’s involvement in everything that transpired adhere to their values? Was it okay for the MNDF to send a letter explaining why MPs could not go to Parliament in clear violation of their constitutional rights?

Was there any risk assessment that was done? And is there any level of alertness that we should be on? Do they have any questions about people’s conversations being tapped? Who else is being targeted? How does this feud between the executive and legislative affect the people? And who is responsible for failed policies?

My point is not that the executive branch has acted inappropriately, but rather that they have not been sufficiently grilled by the right people. My point is that civil society is an important part of our democratic transition, and right now they are slacking off.

I’m sure the government could post adequate answers to the questions posed, but my point is that the questions need to be asked in the first place from the right actors.

One Government

And it is also about more than just the executive branch. The civil society is responsible for explaining and helping us to define our government’s role. They are also responsible for reminding us that both legislative and executive branches are part of one government and that the failure of one aspect will make all of it fail.

We are in desperate need of this reminding. I walked out onto my balcony day before yesterday to watch protesters with underwear on their heads, supporting the arrest of our Deputy Speaker of Parliament – Ahmed Nazim.

These are protests that the nation believes is sanctioned by the executive branch. And they had underwear on their heads.

Forget the man for a second, and realize that Nazim is the Deputy Speaker of Parliament. He is third in the line of succession for the Presidency. And while it would be a black mark on our country’s record to have him in this position if he is in fact guilty of all that is accused of him, we cannot assume guilt. We cannot disrespect the office the people of this nation gave him. And we cannot forgo all measures of dignity and justice.

We are one government and should all be held accountable. And you, civil society, need to step up your game and live up to your values. Democracy’s survival is in your hands, and if it fails you will share the blame.

http://www.jswaheed.com

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]

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President reinstates cabinet, awaits parliament’s consent

President of the Maldives Mohamed Nasheed has reinstated his cabinet ministers in a signing ceremony before Chief Judge of the Civil Court, Ali Sameer, following their mass resignation on June 29, in protest against what they claimed were the “scorched-earth politics” of the opposition-majority parliament.

The only cabinet reshuffle concerned Mahmoud Razee, former Minister for Transport, Civil Aviation and Communications, who was moved to the post of Minister of Economic Development. His former portfolio remains open.

“Cabinet decided to stick together on the issue and resign, to show they are not hell bent on the salaries and niceties of their positions and to prove they want to do good work for the country,” Nasheed claimed.

Following the reinstatement of his ministers, President Nasheed denied the week-long resignation was a publicity stunt for political gain.

“We had to make everyone aware of the gravity of the situation,” he said. “Cabinet members have been complaining about corruption in parliament for some while, [particularly] vote buying.”

“We were last week able to investigate the matter, and I expect police to pass the findings of the investigation to the Prosecutor General’s Office within the next 10 days,” he added.

The ‘new’ cabinet now requires parliamentary consent before resuming office. The President’s Press Secretary Mohamed Zuhair confirmed the government had been delaying the reinstatement until it received signs of cooperation from the main opposition party.

Zuhair acknowledged the strategy was “risky”, an observation confirmed by DRP Deputy Leader Umar Naseer, who claimed “there are definitely ministers that the DRP will not approve, and will have to leave the cabinet.”

Zuhair however noted that the wording of the procceedure according to the Constitution was different to the appointment of the heads of independent commissions.

“Parliament is only required to ‘consent or not to consent’ to the [whole] cabinet,” he explained. “Even if the opposition is factionalised, if we get 7-8 MPs on our side the motion will be carried.”

President Nasheed has met opposition party leaders alone in a meeting on Monday evening mediated by US Ambassador Patricia Butenis, including leader of the majority opposition Dhivehi Rayyithunge Party, Ahmed Thasmeen Ali.

President Nasheed today said that while Thasmeen had not explicitly agreed to cooperate in the meeting, “individual DRP MPs have called me, and said they do not wish the government and parliament to remain deadlocked.”

He said the MPs had claimed they did not wish the entire institution of parliament “to be affected by the actions of individual MPs.”

Foreign embassies and international agencies have been nervously eyeing the seemingly erratic behaviour of the country’s administration, fearing a step backward following its democratic transition.

Yesterday Sri Lankan President Mahinda Rajapaksa also arrived in the country, in a surprise visit on the invitation of President Nasheed to help resolve the political deadlock. He has already met with Thasmeen and former president Maumoon Abdul Gayoom, at his residence Maafannu Aliwaage.

Thasmeen did not respond to Minivan News at time of press.

Photo: Umair Badeeu

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President’s speech on the resignation of cabinet

The following is a literal Dhivehi-English translation of the President Mohamed Nasheed’s speech to the media at the President’s Office on Tuesday afternoon, announcing the resignation of his cabinet members.

Today I meet the Maldivian media because the ministers of the government have noted that they are unable to fulfill their responsibilities according to their oath.

All the members of the cabinet are saying that they do not receive any cooperation from the Majlis, that many members of the Majlis are not acting in line with the spirit of the constitution and that they are also violating the articles of the constitution.

Believing a huge majority is with them, and through this majority members of the parliament are violating the very spirit of the constitution we are trying to implement and enforce.

The ministers have said that they are finding it extremely difficult to carry on with their responsibilities, and that therefore they wish to resign until the Majlis acts in a different manner.

All the members of the cabinet are requesting this, so today in accordance with the constitution which reads that after I receive the resignation of all cabinet ministers, myself and vice president Dr Mohamed Waheed Hassan Manik will only remain in the cabinet.

I assure the citizens that this government’s one and only aim and goal is to serve the people. This government was formed to establish a system which listens to the voice of the people, and to establish a system which fulfills the needs of the people according to their pulse and also to follow up with that system of governance.

So I request the honorable members of the Majlis to not cloud the atmosphere of governance in the country and to lend me their cooperation while continuing with their work.

I am obliged to look into the complaints made by the members of the cabinet about the Majlis members, therefore today I will start looking into them and I shall do everything possible, in the boundaries of the law, to look into these complaints and issues.

I am the head of state of this country. I am also the head of the police and defense forces. I have put myself up to the task of leading this country to serve the people. We did not come to power with the intent to do whatever we would like to the extent we are able to do. So I am obliged to look into the complaints of the cabinet members and I assure the citizens that I will look into these complaints.

I intend to accept the letters from the ministers in front of all of you. I have not yet received their letters but the cabinet secretary had informed me that he had received the letters. So I ask the cabinet secretary to hand the letters over to me and afterwards I will answer your questions. A bit of time would be required for this (handing over the letters) but I cannot spend too much time on this today.

When the letters of the cabinet ministers are kept on this table, they have been accepted by me by default.

Among all the letters I just have looked into, only the letter missing is that of Home Minister Mohamed Shihab, as he has mailed it since he is currently not in (Male’).

I sincerely and from the bottom of my heart, thank the cabinet ministers. The strength they have shown, the discipline and integrity they have maintained and their loyalty and readiness to serve this nation and to uphold the features and the spirit of the constitution, I believe never will be doubted by the citizens of this country.

In the history of this country, rarely does a minister resign. If cabinet ministers cannot fulfill their legal duties and responsibilities due to any reason, I do believe that they would have to think about it.

Today my responsibility is to look into the complaints right away. I will look into the complaints of the ministers and I will take necessary action afterwards. I assure this to all citizens of this country.

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Boy missing in Male’ discovered in Addu Atoll

Police have located missing 14 year old Ahmed Laizam Latheef on Hithadhoo in Addu Atoll, after his family reported him missing at 11:30pm on Wednesday night.

Laizam is from Kashmeeruge in Seenu Feydhoo Atoll but was living at Ma. Velagala in Male’. His family reported him missing after he left home to pray in the nearby mosque across the road but did not return.

A family member told Minivan News the boy was not used to going anywhere alone, ”and he only goes to the mosque by himself as it is very close to our house.”

Police Sub-Inspector Ahmed Shiyam said Laizam had taken a boat to Addu Atoll where we was staying with relatives on Hithadhoo.

“Police confirmed he was there, but he was sleeping so we didn’t disturb him,” Shiyam said, adding that police are now investigating why he left home.

“At this time, we can’t say why he left home,” Shiyam said. “He went by himself – nobody told him to go.”

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High Court upholds blasphemy acquittal

The High Court has ruled in favour of the Criminal Court’s acquittal of a Maldivian who allegedly claimed that there was no God and Prophet Muhammad was not a Messenger.

The Criminal Court judge earlier said the man had made the comments while drunk and therefore could not be convicted. The man’s father had given evidence against him but the High Court ruled the father’s evidence inadmissible because it was motivated by a personal grudge.

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Maldives seeks to end oil addiction

The Maldives must cure itself of its addiction to oil and develop alternative energy sources from local resources if it is to prosper, Vice President Dr Mohamed Waheed Hassan said today at a UN roundtable held at Bandos Island Resort.

The occasion was the Maldives signing a commitment to phase out hydro-chlorofluorocarbon (HCFC) emissions by 2020, a decade ahead of other countries, and one that has attracted an assistance grant of US$1.1 million from the UN.

HCFCs (such as chlorodifluoromethane) is used in older refrigeration and air-conditioning units as a replacement for heavily ozone-depleting CFCs, however it also is now considered too harmful.

“It makes sense to move away from HCFCs,” Dr Waheed said. “It is outdated technology and has already been phased out in most western countries, and it is increasingly difficult to repair appliances that use it.”

The move was part of the government’s larger agenda of becoming carbon neutral by reducing reliance on fossil fuels, driven by economic as well as environmental imperatives, the VP explained.

“The Maldives is highly dependent on oil. Our economy totally dependent on imported fuels, but we have absolutely no control over oil prices,” Dr Waheed said. “Our economy is slowly recovering from mismanagement of the past, and an oil price hike now would destabilise our economy. We all know how volatile oil prices are – and the global economic recovery means an increased demand, which is likely to increase prices further.”

Because of the country’s dependency, Dr Waheed explain, “a high oil price means a high cost of doing business. We want to break our dependence on foreign oil using our own natural resources: sun, wind and waves. In the Maldives renewable energy makes sense because imported oil is costly – it is very expensive to ship oil to small islands like the Maldives.”

The Maldives’ oil addiction meant that “today we have one of the world’s highest prices for electricity – 25-30 US cents per kilowatt hour, and there are some reports islands where people are forced to pay 60 cent per kilowatt hour. Schools complain that 25 percent of their budget is spent fueling their diesel generators.”

Addicted

A report published by the UNDP in 2007 on the vulnerability of developing countries to fluctuating oil prices ranked the Maldives dead last, a fair stretch behind Vanuatu, effectively placing the country among the world’s most oil-addicted nations.

“Island countries in general are extremely vulnerable to increased oil prices. They comprise distant and small markets and have to bear the burden of higher shipping costs, while electrical power generation is largely fueled by diesel,” the report noted.

President Mohamed Nasheed said that the Maldives stood perfectly placed to demonstrate to the rest of the world “that a less hazardous development pattern is possible, viable and financially feasible.”

He acknowleged the efforts of the previous government towards that development, noting that the Maldives was able to phase CFCs two years before its mandated deadline.

“I thank the previous government, especially former President Maumoon Abdul Gayoom, for his singular focus on CFCs, ozone depletion and the environmental issues he raised very early.”

He also acknowledged that even if the Maldives succeeded in demonstrating that a country could be powered by renewable energy and reached its goal of carbon neutrality, “what we do not have major impact health of planet.”

Rather, Nasheed said, the Maldives could prove to other countries that isolated communities could be self-sustaining.

“The window of opportunity this planet has is not so long – science is very certain and we have to act,” he said. “If we don’t, this planet will go on, with new equilibriums and balances that may not be receptive to human habitation – that is what we are trying to overcome.

“We have the technology already – it is a question of how bold we are in implementing it.”

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Q&A: United Nations Resident Coordinator for the Maldives, Andrew Cox

Andrew Cox is the newly-appointed UN Resident Coordinator and UNDP Resident Representative for the Maldives. Before arriving in the Maldives, Cox was based in New York as the Chief of Staff for the Office for the Coordination of Humanitarian Affairs in New York.

Prior to this he held several positions in Sudan where he worked on comprehensive peace agreements between warring factions, and in Afghanistan. Before his UN career Cox worked as Field Director for Concern Universal in Sierra Leone and had assignments with various companies and NGOs in the UK, Democratic Republic of Congo and Côte d’Ivoire.

JJ Robinson: How does your experience in development and within the UN system benefit your new role in the Maldives?

Andrew Cox: I’ve worked for the UN since 1999 and NGOs before that. I come from a development background, but I just seem to have ended up in a lot of conflict, post-conflict and post disaster-places.

During my three years in Sudan I spent a lot of time working on a comprehensive peace agreement, and I spent time in Afghanistan in 2002 just as the situation there was changing – I was very sorry to leave, actually. I have also spent some working in Sierra Leone, which oscillated between conflict and post-conflict.

I think the process of transition in [such places] is very interesting – it’s about how people behave when their basic assumptions are changing and the bedrock is shifting under them. People act in extreme ways and sometimes it’s very difficult to get institutions in these countries to change.

What is especially difficult [about countries in transition] is the need for urgency. You don’t have luxury of 10 years to see if something might work. You just have to try things at high speed and discard them if they don’t.

One of the interesting things about coming to Maldives is that I find this transition happening. There is a tremendous amount of dialogue, although sometimes a little above the level of dialogue in terms of intensity and rhetoric.

What the Maldives is going through is not unusual and is to be expected in such circumstances. What I hope I can bring from my past is help and advice, and assistance from the UN system in managing this transition.

JJ: The Maldives has made a major transition to democracy, and the next major transition is the transition from less developed country (LDC) status to middle income. What does this mean and what are the key challenges for the country?

AC: On the surface there are some things the Maldives will lose along with its LDC status, such as access to concessional credit, which is probably one of the more important things. It will also lose a certain amount of grant income from donors.

But the point is to look at it as an opportunity; OK it may hurt in certain areas at the beginning, but in the end the Maldives has got itself where it needs to be and now has more to offer the world than it might have had before – it’s not just about offering beaches to tourists coming in.

When I saw the President I asked him if he had thought about having the Maldivian National Defence Force (MNDF) serve in UN peacekeeping operations – it’s one way in which Maldivian experience can be sent out there to benefit the rest of the world, and of course it’s a learning experience for those who participate.

Similarly, the Maldives was a victim of a major natural disaster in the tsunami, and in my view it would make a lot of sense for the country to join the UN Disaster Assessment and Coordination (UNDAC), which sends in disaster coordination experts to a country whenever there a natural disaster. The Maldives should be able to contribute to that.

I also think, and the President said this and I fully agree with him, that the Maldives should not be about dependency on aid. It should be about development, trade, and punching greater and greater weight in the region.

What everyone seems to be doing at the moment is focusing on the future. The loss of income from donors, if things go well, will be replaced by greater trade and economic growth. But there are some structural issues making that difficult, no doubt about it.

JJ: What kind of structural issues?

AC: The budget deficit is the major one. I’m not completely up-to-date with the figures, but last time I looked it the deficit was 33 percent of GDP, which everyone – the government as well as international institutions – has said the Maldives has got to address.

The deficit in Greece is 12 percent of GDP. Obviously Greece is a very different place [to the Maldives], but everybody needs to be serious about the problem. It’s a huge challenge and until it is solved it is going to be difficult to change other things.

The UN’s position is to help the government find ways dealing with this. There’s various things you can do but in the end the gap between income and expenditure has to change, because it is simply not sustainable at the moment.

JJ: How does the UN navigate the polarised politics here? How do you find the middle-path and involve the opposition?

AC: There have been many changes here over the last few years, and the UN has been here throughout that entire period. I think we played quite a positive role – although you can’t get everything right. But by sticking to its principles, the UN tries navigate its way through. For example, during the change to democracy the UN worked closely with then-president and his party, as well as the opposition.

What we tried to do was help them manage the process [of transition]. It’s very clear what the UN stands for – our principles are out there. There’s no hidden agenda and the approach is consistent across the UN. There are many different levels of support the UN can bring.

I’m not trying to be naive or idealistic – but it’s [an approach] that works just as well if you’re dealing with rebels in the middle of a conflict or if you’re dealing with development challenges – you help those who are there to make the right choices, and sometimes provide an enabling environment for that to happen.

The UN is also here to try and improve the lot of ordinary Maldivians. One of our principles is that we work with all parts of society and we do that in an open way, and that can sometimes be difficult to explain. But in the end it is our job to work with everybody who can be a positive force for change, and to try and advise those who are less convinced for the need to change to change their approach. That’s consistent across all the countries we work in.

JJ: What are some of your experiences from the programs you have worked on in the past that you think would also work in the Maldives?

AC: I worked on the last stages of the comprehensive peace agreement in Sudan, which is a mostly Muslim country. The key in Sudan was doing everything you could to get the parties to sit together. Obviously we don’t have the same kind of situation in the Maldives, but the principles are still the same.

A facilitating role sounds a little bit ‘wishy washy’, until you realise what happens when you don’t have that. It doesn’t have to be the UN – in Darfur the African Union had the lead on the political side, and the UN helped them to do their job.

As a newcomer to the Maldives, it is very obvious that there is a certain amount of heat in the political discourse, to say the least. A lot of this is a very natural outcome of the change everyone has gone through. I think the trick is to find areas where there can be cooperation, and not to allow bigger disagreements to pollute the water where consensus might be possible.

For example, I think the cross-party effort to deal with domestic violence is very interesting right now. Everyone agrees domestic violence is a problem, and although there may be disagreement over how that problem should be addressed, this is absolutely one of those areas for mature political dialogue. We will try and help that process along, but it needs to be the parties in parliament to figure out how they want to deal with domestic violence issues.

Civil society is weak in the Maldives, explains Cox

JJ: To what extent should be UN be a leader of civil society in a country, in terms of supporting NGOs and helping them work properly and efficiently?

AC: I don’t think leader is the right word. If we were, then if we withdrew our support the whole thing would collapse and that’s not the way it should be. The real strength of civil society in most countries, to use an overused phrase, is ‘grassroots.’

Civil society is only powerful if it comes into being organically. I think most people on either side of the political divide recognise that civil society is very weak in the Maldives, and that much more needs to be done to support its growth.

I think the UN can play a major enabling role. There are an awful lot of people around the world who have [grown civil society], and one thing we can do is to bring some of them in to explain how they did it. That process of sharing information and knowledge is very important.

JJ: What do you mean when you say civil society is weak in the Maldives? There are a great many NGOs and it does seem to be a sought-after profession.

AC: Yes exactly – I think across all parts of society, and obviously it varies area to area, from human rights to gender to drug prevention, there are a number of things you look for, such as sustainability of funding and resources. In the end civil society will only be strong if Maldivians embrace their own civil society and start paying for it.

Some of that is about government funding, but much more of it is local philanthropy and gift giving – and earning the organisation that you’re associated with.

The UN can give out a grant of US$20,000 [to an NGO], and what they’ll do is buy a computer, pay for some travel and training and so on, then it’s gone and that’s it. What happens then?

This is a very important question that a lot of civil society organisation managers are thinking about – or at least I hope they are. Because in the end, international funding can’t be assured for anybody over time.

I think the whole point is to use that external support as a way to building up a civil society organisation so it can have links with the community and an income stream, and a sufficiently strong volunteer network to get done what they think needs to get done.

How do we help them through that process? Definitely we have supported NGOs in the past, and there has been a proliferation in the last year or two, but now they need to move beyond that start up phase and become a bit more secure. You really need a strong civil society because it gives you a way to get important things done that is separated from politics.

JJ: The Maldives recently beat Iran to the UN Human Rights Council – what kind of an achievement does that represent?

AC: I think it’s a remarkable achievement. The Maldives ran a good election campaign on its own merit and got the support, which was a very big deal.

The Human Rights Council is in organisation in flux, and I think both [UN Secretary General] Ban Ki Moon and the High Commissioner of Human Rights [Navi Pillay] see it as a long term project – and many of its members see it in the same way.

For the Maldives it represents a tremendous opportunity to demonstrate it can be a world leader, as it already is in the area of climate change. For a country to progress so far on the human rights side allows it to go out there with a very honest position and say ‘we’re not perfect yet, but this is what we’ve done.’

Another part of the Human Rights Council is that you have support from your peers to deal with human rights issues, so when it works well is when there is an atmosphere of cooperation and people get down to business away from the heated rhetoric you also sometimes hear on human rights issues.

But I would also say that because the Maldives has a somewhat exalted position on this council, this is also a challenge. The Maldives can’t stop its progress on human rights, because the eyes of the world are on the Maldives as much as eyes of the Maldives are on the world in the human rights sense. I think it is very important that this election provokes a renewed investment in human rights in the Maldives, and if it doesn’t happen then the Maldives’ position on the Human Rights Council could invite unwelcome attention.

It just the way we seen these things work over the years. I sincerely hope – and everything I’ve heard suggests this will continue to happen – that the Maldives will continue to strengthen human rights in the country, especially now.

JJ: How would you describe the level of human rights in the Maldives, from the perspective of a newcomer?

AC: I would probably describe it again as a situation of change. There have been tremendous advances made, but obvious areas that need strengthening – areas like access to justice.

I think there are important bills pending on the judiciary, things like access to legal aid. The Maldives needs to invest in the judiciary and its ability to do its work, and there needs to be investment in corrections – I think the problems are self-evident. Then there’s right to information, and of course the police, who now have themselves been changing and adapting to new challenges. I think there’s a raft of institutional legal framework measures that are needed to strengthen human rights in the Maldives.

I think the Human Rights Commission of the Maldives (HRCM) needs to continue to be supported, for obvious reasons. It’s important to have a strong home-grown human rights commission to encourage the government to take the steps it needs to take, and I think it is absolutely important to have strong human rights organisations on the civil society side. This is a priority for UNDP, and we’ll be scaling up our support to human rights NGOs. If you get them right, there’s a knock on effect to other NGOs.

JJ: Human rights issues such as freedom of expression and gender equality appear to sometimes conflict with stricter interpretations of Islam. Is it possible for human rights to be fully realised in a 100% Islamic country?

AC: I think there is a very strong human rights tradition in Islam, and I think it’s absolutely possible. I know there are many different legal systems under the Islamic system, and what I think is quite important is to learn from other experiences around the world and shamelessly steal the best parts. I see absolutely no contradiction between Islam and human rights.

JJ: The Maldives has established itself as an international leader on climate change based on its vulnerability to rising sea levels, but at the same time it’s trying to attract long term business investment. Is there room for these to exist side by side?

AC: I think it’s an interesting dilemma, and if it’s going to get solved anywhere it be here. Obviously I’m not a climate change scientist, but speaking as the manager of UNDP I think there’s interesting opportunities in the Maldives over how to cope with climate change.

We still don’t know how bad it’s going be, so yes, risk inherent in every situation. But let’s not forget that the Maldives is not alone in this – the Maldives may have problem with rising sea levels, but there are many other countries with problems related to climate change – you just have to look at sub-Saharan Africa, and see how climate change is affecting water and food production there.

Certainly from the Maldives side, the country has to press on with mitigation and creating a low-carbon economy. There are thousands of different possibilities, and money to be made off successful models of technology that can be proven to reduce carbon. On the adaptation side there’s a lot we don’t know how about how reefs will react to changing water temperatures, and new technologies which can be looked at in terms of sea defenses. And things like if you’ve mangroves that you look after, you got a much greater change of withstanding rising sea levels and weather events than if you don’t have them. It’s a matter looking at these things and the impact of communities that live in these areas.

With all that in mind, the Maldives is a good place to invest in from the point of view of climate change-related industries. Businessmen and women are not stupid – they evaluate situations and make decisions accordingly. One of the things the government has committed to is loosening the trade environment and having clear regulatory frameworks, and I suspect if they successful pushing that through then that will also encourage investment.

So don’t think the two messages are contradictory. You have to do an awful lot because of climate change, but you can continue to build the economy as well.

I think adaptation is also very important – people need to be able to manage risk more than they can at the moment. Generally speaking we estimate that for every dollar spent on disaster risk mitigation you save $10 in losses when a natural disaster strikes – the economics are quite obvious.

We have quite some interest in the Maldives’ obvious vulnerabilities to climate change and major weather events, and it’s useful to use different communities around the Maldives to test ways of strengthening people’s ability to withstand natural disasters. If we get that right, then that is also something the Maldives can export – knowledge and know-how about how to deal with vulnerability in the face of climate change.

What we are going to be doing over the next year or two is looking along with the government at creating a global climate change centre in the Maldives. We are working on the details at the moment.

Another priority area is to look at governance programs and see how we can help. A major step forward of the last few months was the government getting together its strategic action plan – it’s a great document but it’s very thick, and it’s not much use unless it gets implemented. We all feel it is quite important to have a results framework, and if the government is able to do that, Maldives stock will go up in eyes of donors.

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Tensions escalate between executive and judiciary

The Judges Association of Maldives (JAM) has condemned President Mohamed Nasheed’s criticism of the Judicial Service Commission’s (JSC) decision on determining guidelines for the reappointment of sitting judges as “disrespectful towards the honour and dignity of judges” and indicative of the “negative view he holds of the judiciary”.

A press release issued by the association last week accuses the president of attempting to cast undue influence over the Judicial Service Commission by calling for amendments to the eligibility criteria approved last month, an act which could “render separation of powers obsolete”.

Article 285(b) of the constitution stipulates that the JSC shall determine whether or not sitting judges possess the qualification of judges specified in article 149 before August 7 2010.

The article states that judges must possess “educational qualifications, experience and recognised competence to discharge the duties and responsibilities of a judge, and must be of high moral character.”

On May 9, the JSC voted to approve as minimum standards to determine “high moral character” that judges must not have been convicted in a court of law of an offence with a punishment prescribed in the Quran, criminal breach of trust or bribery.

Following the 5-2 vote, Aishath Velezinie, President Nasheed’s member on the JSC, characterised the contentious decision as “nothing less than treason to rob the people of an honest judiciary.”

Velezinie warned that the decision could effectively give tenure to 19 judges found guilty of various offences by state institutions such as the former Anti-Corruption Board.

Two days later, the commission approved guidelines for determining educational qualifications, experience and competence.

In his radio address on May 28, President Nasheed said he believed the JSC decision could hinder the commission’s mandate of ensuring public confidence in the judiciary.

The decision was “worrying” as records showed that judges found guilty by the relevant authorities under the old constitution, or who had faced criminal prosecution and allegations of gross misconduct, were currently on the bench.

“Grade seven standard”

President Nasheed criticised the criteria for educational qualifications as setting the bar too low.

“For the standard to determine educational qualification, they are saying [judges must possess] a certificate in either law or Shariah, and even if the certificate is not accredited by the Maldives Accreditation Board, it must be a certificate of at least level three or higher accepted by the government”, he said.

Hence, he added, the minimum educational qualification for judges approved by the JSC was essentially “grade seven”.

According to the guidelines approved by the commission, said Nasheed, sitting judges would be eligible for reappointment if they have not been convicted in court of 29 criminal offences decided upon by the JSC.

The JSC also decided that sitting judges would be deemed to possess the requisite experience.

Nasheed said the criteria to determine experience and educational qualification was “inappropriate” for contemporary Maldivian society.

Moreover, taking the lack of convictions as enough to determine high moral character was “not ideal.”

An official request has been made with the JSC to review and amend the guidelines, he said.

The JSC consists of the speaker of parliament, an MP and a member of the general public appointed by parliament; a judge each from the Supreme Court, High Court and the trial courts; a practicing lawyer elected by licensed lawyers; the Chair of the Civil Service Commission; a member appointed by the president and the Attorney General.

Justice Fahmy

A statement issued by the JSC before the president’s address defended the decision as both “within the bounds of article 149” and “very fair”.

The statement signed by Justice Mujthaz Fahmy, president of the JSC, notes that differences of opinion among members only emerged over the criteria for determining high moral character.

It adds that the reappointment of judges as stipulated by article 285 was very different from the normal process of appointing or dismissing judges and magistrates.

Moreover, the commission believes the decision will “draw criticism no matter how fair it was.”

The statement goes on to condemn “efforts by certain groups to dishonour the judiciary and strip judges of their honour and dignity.”

“The commission is extremely concerned as such actions could undermine the independence of the judiciary and adversely affect society,” it reads.

While the creation of the JSC was delayed until July 26, 2009 due to “various legal problems” and its members do not work full-time, the statement assures that the commission was working “sincerely, truthfully and in line with the constitution” to fulfil its responsibilities.

“Abuse of power”

However, writing in her personal blog, Velezinie claims the statement was issued “in violation of clause 4(d) of the commission’s rules of procedure and article 163 of the constitution” as it solely represented Fahmy’s personal views.

Justice Mujthaz Fahmy had refused to either allow further discussions on the guidelines or vote on amendments, she writes.

As Fahmy was among the 19 judges with prior convictions, Velezinie claims, he faces a conflict of interest on the issue of judges’ tenure and reappointment.

Moreover, while the Supreme Court Justice was also the chair of both standing committees of the commission, the complaints committee has not been convened as of May 1.

Fahmy replaced High Court Judge Abdul Gani Mohamed as President of the JSC on February 21 when the latter was removed by a ruling from three Judges of the High Court.

Velezinie reveals that although a committee consisting of the three judges on the commission was tasked in August 2009 with formulating a draft of the guidelines for reappointment, the full committee only met once as Fahmy did not attend the second meeting.

Meanwhile, the “285 Standards Committee” formed after Gani’s expulsion and chaired by Civil Service Commission President Dr Mohamed Latheef met on three days and drafted the final guidelines during meetings that each lasted half an hour.

The sub-committee, consisting of Judges Adam Mohamed Abdullah and Abdullah Didi from the JSC as well as Chief Judge of the Juvenile Court Shuaib Hussein Zakariya and Civil Court Judge Abdullah Ali, did not consider either the previous proposals or “the purpose and spirit of the constitution and the objective of article 285.”

She adds that Fahmy’s actions were “extremely worrying” as it could cast doubt over the independence of both the JSC and the judiciary.

Moreover, Velezinie continues, failure to provide agendas and minutes of meetings to members as required by law “facilitates corruption in the commission.”

“The Judicial Service Commission, and along with it the courthouse and judges, will only gain public trust when it proves to the people with words and deeds that it is an institution that is independent from the three powers,” she entreats. “Instead of hiding behind law certificates and making decisions based on self-interest and one’s own views, [the commission has to] put national interest and public welfare first.”

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