Tag: MMA

MMA seeks design for new rufiyaa note for 50th anniversary of independence

The Maldives Monetary Authority (MMA) has invited designs for a new rufiyaa note to commemorate the upcoming 50th anniversary of independence next year.

The new cash notes series named ‘Rann Dhiha Faheh’ would also have increased security features, the central bank said.

An award of MVR300,000 has been announced for the best concept and design submitted for the new notes.

A futher MVR50,000 is to be awarded to the best design submitted for the memorial and celebratory cash note to mark the ‘Minivan 50,’ the slogan for the 50th anniversary.

Information sessions with interested parties are due to take place on September 11 and 13 with registration required before 2pm next Tuesday.

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Government expenditure rose 58 percent in June, reveals MMA

Government spending in June rose 58 percent compared to the same period in 2013, the Maldives Monetary Authority’s (MMA) monthly economic review for July 2014 has revealed.

Total expenditure, excluding net lending, “amounted to MVR1.6 billion (US$103 million) in June 2014,” stated the report released on Sunday (August 31).

Total government revenue, excluding grants, meanwhile rose four percent in annual terms and reached MVR0.9 billion (US$58 million).

“The increase in total revenue during June 2014 was largely due to the 57 percent growth in import duty and the 9 percent increase in total goods and services tax,” the central bank explained.

“Meanwhile, non-tax revenue registered a decline owing to the 18 percent decline in resort lease rent. As for the increase in expenditure, it was mainly due to the 30 percent increase in current expenditure.”

Budget deficit

In early August, Finance Minister Abdulla Jihad revealed that the government was facing “great difficulty in managing the budget deficit” due to shortfalls in revenue.

The ballooning budget deficit – which Jihad warned could reach MVR4 billion (US$260 million) or 10.6 percent of GDP – could affect the government’s ability to pay civil servants, he said.

A fiscal deficit of MVR1.3 million (US$84,306) had been projected in the record MVR17.96 billion (US$1.1 billion) budget approved by parliament.

The budget was inclusive of proposed revenue raising measures – many of which had failed to materialise during the previous administration – amounting to MVR3.4 billion (US$220 million), or 19 percent of the budget.

“Expenses keep on increasing, even as we don’t receive any revenue. We did not get the expected revenue this year either,” Jihad said last month.

Despite parliament passing the measures in February – including tax and import duty hikes – Jihad predicted at the time that the anticipated revenue might not be realised in full due to compromises.

“We try to make regular salary payments even if we have to take loans in order to do so,” Jihad said.

The monthly review revealed that the total outstanding stock of government securities – treasury bills and bonds – increased 18 percent in July compared to the corresponding period last year, reaching MVR13.7 billion (US$888 million).

“The annual growth in government securities was contributed by the increase in the amount of T-bills issued by the government to manage its growing cash flow requirements,” the review explained.

The MMA had previously warned that shortfalls in revenue and overruns in expenditure could jeopardise the country’s debt sustainability.

In May, MMA Governor Dr Azeema Adam called for “bold decisions” to ensure macroeconomic stability by reducing expenditure – “especially the untargeted subsidies” – and increasing revenue.

Tourism, fisheries and inflation

Tourist arrivals in July increased 20 percent from the previous month and 14 percent compared to July 2013, reaching 100,191 visitors, the review noted.

While bednights rose by nine percent in annual terms, the report noted that average duration of stay declined from 6.0 days in July last year to 5.7 days this year.

“With the increase in bednights, the occupancy rate also rose to 69 percent in July 2014 from 66 percent in the same period last year,” the review stated.

Fish purchases meanwhile declined by 44 percent to 2,124.7 metric tonnes compared to July 2013, the report revealed.

While the volume of fish exports fell by 54 percent, earnings on fish exports declined by 41 percent, which was “contributed mainly by the fall in export of frozen yellow fin tuna.”

The rate of inflation in the capital decreased to 2.4 percent from 3.5 percent in July 2013 and 3.6 percent the previous year, the review found, which was due to “the slower growth of food prices, especially fish, and the moderation in the growth in prices charged for rent and health services.”

The review noted that the trade deficit widened by 38 percent in July compared to the same period last year “due to the 27 percent increase in imports and the 34 percent decline in exports.”

Gross international reserves rose four percent from the previous month and 42 percent in annual terms, the review stated, amounting to US$497.6 million at the end of July.

“This mainly reflects the temporary increase in foreign currency transfers by the commercial banks in the review period,” the central bank explained.

“As for reserves in terms of months of imports, it also increased in both monthly and annual terms and stood at 3.2 months during the review month.”

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MDP questions sincerity of Islamic minister’s stance on ISIS

The Maldivian Democratic Party (MDP) has questioned the sincerity of Islamic Minister Dr Mohamed Shaheem Ali Saeed’s declaration that the Islamic State of Iraq and Syria (ISIS) would not be allowed to operate in the Maldives.

“ISIS is an extremist group. No space will be given for their ideology and activities in the Maldives,” Shaheem tweeted on Sunday night (August 24).

The main opposition party contended in a press release yesterday that Shaheem’s statement was “duplicitous” and “insincere” as it was not backed up with concrete action by the government.

“We note with concern that neither the Islamic minister nor the government has taken any action while activities related to terrorism in different forms as well as extremism are carried out in the Maldives, religious strife and hatred is incited widely, and death threats are being made against various people over religious matters,” the statement read.

The party noted that the ISIS flag was used in recent protests in Malé calling for a boycott of Israeli tourists. While the protesters had gathered outside the residence of the Islamic minister in violation of freedom of assembly laws, the MDP noted that the government had not taken any action.

The Islamic ministry has also provided a meeting hall of the Islamic centre for a religious sermon which was advertised with the ISIS logo, the MDP claimed.

The party claimed to have learned that police and army officers were involved in putting up the banners across the capital.

Dr Afrasheem

The MDP also accused the government of not attempting to find the “real killers” of murdered MP Dr Afrasheem Ali, noting that the moderate religious scholar had faced harassment over his liberal views.

Referring to his last television appearance, the party said Dr Afrasheem’s remarks suggested he was “forced” to support radical religious ideology.

Appearing on a live talk show on state broadcaster Television Maldives, Dr Afrasheem had said he was deeply saddened and asked for forgiveness if he had created a misconception due to his inability to express himself in the right manner.

Islamic Minister Shahaeem was quoted in local media at the time as saying that his ministry had not forced Dr Afrasheem to offer a public apology in his last television appearance.

Dr Afrasheem’s moderate positions on subjects such as music had drawn stringent criticism from more conservative religious elements, who dubbed him “Dr Ibilees” (“Dr Satan”).

In 2008, the scholar was kicked and chased outside a mosque after Friday prayers, while in May 2012, the religious Adhaalath Party released a statement condemning Afrasheem for allegedly “mocking the Sunnah”.

NGO Salaf had meanwhile released at least a dozen statements against the late Dr Afrasheem at the time of his death. In a three-page press release (Dhivehi) on July 10, 2008, Salaf listed Dr Afrasheem’s alleged transgressions and advised him to “fear Allah, stop talking any way you please of things you do not know of in the name of religion and [stop] twisting [Islamic] judgments to suit your personal wishes”.

The NGO also called on the public not to listen to “any religious fatwa or any religious talk” from the scholar.

Extremist ideology

The MDP statement meanwhile noted that the US State Department’s 2013 country report on terrorism had stated that “Maldivian authorities believe that funds are currently being raised in Maldives to support terrorism abroad”.

While the report observed that “the Maldivian Central Bank believes that criminal proceeds mainly come from domestic sources, as a large percentage of Suspicious Transaction Reports (STRs) are related to Maldivians,” the Maldives Monetary Authority (MMA) denied it had any knowledge of such activities.

“The MMA has neither received nor communicated any information regarding confirmed operation of terrorist financing activities,” the central bank insisted in a statement.

The MDP said it believes such activities were aided and abetted by both foreign groups and Maldivians, adding that the activities were “well organised” and carried out with “funding and training”.

“There has been particular concern that young Maldivians, including those within the penal system, may be at risk of becoming radicalised and joining violent Islamist extremist groups. Links have been made between Maldivians and violent extremists throughout the world,” the US report stated.

The party also argued that extremism in the Maldives was encouraged by the mass gathering held on December 23, 2011 to “defend Islam” against the allegedly secularist policies of former President Mohamed Nasheed as well as a pamphlet issued by the party of current Vice President Dr Mohamed Jameel Ahmed.

Dr Jameel’s Dhivehi Qaumee Party had issued a pamphlet titled “President Nasheed’s devious plot to destroy the Islamic faith of Maldivians.”

Both the December 23 demonstration and the pamphlet were intended to sow discord and strife for political purposes, the party contended, and reiterated its claim that extremist ideologies were prevalent in the security services.

The party also referred to President Abdulla Yameen’s response when asked about Maldivians leaving to fight in the Syrian civil war following the death of a Maldivian militant in a suicide attack.

President Yameen’s remarks about the government not being involved in sending Maldivians to join militant organisations were “extremely irresponsible,” the MDP said.

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MMA reports increased business activity in second quarter

All sectors of the domestic economy with the exception of the tourism industry reported increased business activity in the second quarter (Q2) of 2014, according to the Maldives Monetary Authority’s (MMA) Quarterly Business Survey.

“With regard to the current level of employment, businesses across all sectors, except for those in the tourism sector, indicated an increase in Q2-2014 compared to Q1-2014,” the report observed.

“Looking ahead, all sectors anticipate an increase in employment in Q3-2014, reflecting the optimism shown by majority of businesses towards improved activity levels in this quarter.”

While businesses in the construction sector reported an increase in prices, the report noted that businesses in the wholesale and retail trade, manufacturing and tourism reported a fall in prices.

“As for business costs, businesses across all sectors experienced an increase in all labour related costs and other input costs in Q2-2014 when compared to Q1-2014, while they expect a further increase in costs in Q3-2014 as well.”

In the construction industry, the survey found that factors which limit growth opportunities included “delays in payment by clients and cost of raw materials.”

“Other significant factors include limited access to bank credit and foreign exchange, high cost of labour and finance; and shortage of materials,” the report noted.

The quarterly survey is conducted by the central bank for a “quick assessment of current business trends and expected future economy activity” by questioning senior managers “on the direction of change in various business variables such as sales, output, prices, exports, capacity utilisation and employment”.

“Survey forms were sent out to 135 large enterprises in four main sectors of the economy which are construction; manufacturing; tourism; wholesale and retail trade. A total of 65 enterprises responded to the survey which represents an overall response rate of 48 percent,” the report explained.

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Tourist arrivals increase 9 percent in June

Tourist arrivals increased 9 percent in June compared to the same period last year, reaching 83,347 guests, says the Maldives Monetary Authority’s (MMA) monthly economic review.

“However, this is a decline of 9 percent when compared to the previous month,” read the economic review for June.

“The annual increase in arrivals was contributed by the increase in the number of arrivals from both Asia and Europe. In June 2014, total bednights rose by 9 percent in annual terms while the average duration of stay remained unchanged at 5.6 days compared to June 2013.”

The occupancy rate meanwhile increased to 59 percent from 55 percent in June 2013.

Cash flow

The central bank also revealed that government securities – treasury bills and bonds – rose 18 percent in June compared to the same period last year, which was “contributed by the increase in the amount of T-bills issued by the government to manage its growing cash flow requirements.”

The monthly review noted that “the outstanding stock of T-bills held by commercial banks at the end of June 2014 increased both annually and monthly, whereas T-bills held by non-banks increased only annually.”

Finance Minister Abdulla Jihad had expressed concern last week with shortfalls in projected revenue posing difficulties “in managing the budget deficit” and affecting the government’s ability pay to civil servants.

“We try to make regular salary payments even if we have to take loans in order to do so,” he said, adding that the ministry was “trying to make the salary payments through any means possible.”

The MMA had previously warned that shortfalls in revenue and overruns in expenditure could jeopardise the country’s debt sustainability.

In May, MMA Governor Dr Azeema Adam called for “bold decisions” to ensure macroeconomic stability by reducing expenditure – “especially the untargeted subsidies” – and increasing revenue.

Fisheries, inflation and reserves

“During June 2014, both the volume and earnings from fish exports increased compared to June 2013,” the monthly review revealed.

“As such, the volume of fish exports increased by 33 percent, while the earnings on fish exports rose by 6 percent during this period. The increase in the volume and earnings of fish exports was contributed mainly by the increase in export of frozen yellowfin tuna.”

The rate of inflation in the capital Malé meanwhile “accelerated slightly to 3.5 percent in June 2014 from 3.3 percent in May 2014,” which was “largely contributed by the acceleration in the growth of food prices, especially fish prices.”

In monthly terms, however, the rate of inflation “fell marginally” in June, “largely due to the fall in prices charged for furnishing, household equipment and maintenance, which off set the increase in fish prices during the review month.”

With imports increasing 19 percent while exports declined by 22 percent, the MMA revealed that the trade deficit widened by 27 percent in May compared to the same period in 2013.

Gross international reserves meanwhile “rose in both monthly and annual terms by 12 percent and 39 percent, respectively, and reached US$477.6 million at the end of June 2014.”

“This mainly reflects the temporary increase in foreign currency transfers by the commercial banks in the review period. As for reserves in terms of months of imports, it also increased in both monthly and annual terms and reached 3.1 months during the review month,” the report explained.

Quarterly business survey

The MMA’s Quarterly Business Survey for the second quarter of 2014 meanwhile noted that a majority of respondents from the tourism sector “indicated a decrease in total revenue, resort bookings and average room rates” during the current off-peak season.

While 10 percent of respondents indicated a decline in hiring and 83 percent reported no change, a majority reported “a decline in their financial situation” during the quarter.

“In analysing the factors which limit growth opportunities for businesses in the tourism sector, most businesses noted competition within the sector, issues with the regulatory framework, shortage of skilled labour and the high cost of finance as the most significant factors,” the survey found.

However, respondents expected revenue and average room rates to increase in the third quarter – “reflecting seasonal variations” – while most respondents expected “business costs such as labour and other input prices to increase in the next quarter”.

More respondents planned to increase capital investments than those who expected a decline, the survey found.

In July, the Ministry of Tourism revealed that tourist arrivals had reached half a million at the end of May, which was an 11.9 percent increase compared to the same period last year.

Moreover, the MMA revealed in its quarterly economic bulletin that tourism receipts in the first three months of the year increased by 10 percent compared to the first quarter of 2013, reaching US$801.1 million.

The bulletin noted that the 10 percent annual increase in arrivals was “entirely driven by the significant increase (24 percent) in arrivals from the Chinese market.”

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Expansion of economic activity in first quarter driven by tourism sector growth: MMA

Domestic economic activity expanded in the first quarter of 2014 “driven by the strong growth of the tourism sector during the ongoing high season of the industry,” according to the Maldives Monetary Authority’s (MMA) quarterly economic bulletin.

Total tourism receipts in the first three months of the year increased by 10 percent compared to the first quarter of 2013, reaching US$801.1 million, the central bank revealed.

“In Q1-2014, the average operational bed capacity of the industry also increased by four percent when compared to Q1-2013 and totalled 26,999 beds, contributed by the opening of more resorts and guesthouses during the period,” the bulletin explained.

“Despite the increase in the operational bed capacity of the industry, the occupancy rate of tourism accommodation facilities remained relatively unchanged at 84 percent when compared to Q1-2013, owing to the higher increase in bednights.”

Arrival trends

On arrival trends in the first quarter, the bulletin noted that the 10 percent annual increase in arrivals was “entirely driven by the significant increase (24 percent) in arrivals from the Chinese market.”

Chinese tourists accounted for 27 percent of guests during the first quarter of 2014. According to the Tourism Ministry, the Chinese market expanded by 24 percent with an additional 16,960 tourists compared with the same period of 2013.

Statistics from the Tourism Ministry show that 331,719 Chinese tourists visited the Maldives last year –  a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

“Meanwhile, after recording three successive quarters of positive growth, arrivals from Europe (which constitute over half of total tourist arrivals) registered a marginal decline of two percent in Q1-2014, mainly due to a substantial fall in arrivals from Russia owing to its economic crisis and partly due to Easter calendar effects,” the bulletin continued.

“The poor performance of the Russian market (the third main market from Europe since Q2-2012) is in stark contrast to the double-digit growth rates exhibited by the Russian market throughout the last year.”

The bulletin noted that all major markets from Europe recorded a decline in arrivals. While arrivals from Germany – “the main source market from Europe” – and Italy both declined by four percent, arrivals from France declined by two percent.

“The better performance of UK market during the quarter is attributable to the sustained growth of the British economy since last year,” the bulletin observed.

Fisheries and construction sectors

The fisheries industry in the first quarter of 2014 “continued to be adversely affected by falling tuna prices in the international market since September last year,” the bulletin observed.

“This is reflected by the annual decline in fish purchases by collector vessels (12 percent) and the fall in both volume and earnings of fish exports in Q1-2014, by 26 percent and 6 percent, respectively,” the bulletin stated.

The construction industry however continued its “ongoing recovery” in 2014, the bulletin continued, which was “indicated by the strong annual growth in construction-related imports and bank credit to mainly residential housing construction projects.”

“Spurred by the strong performance of the tourism and other key sectors, activity in the wholesale and retail sector also picked up during the review period. This was reflected by a 13 percent increase in bank credit to the sector in the review period compared to Q1-2013, while private sector imports (excluding tourism) grew by 9 percent in the same period,” the bulletin read.

“Main driver of inclusive growth”

Meanwhile, a delegation from the World Bank led by the World Bank Vice President Philippe Le Houérou – in his first visit to the Maldives since assuming the post in July 2013 – met President Abdulla Yameen in late May and agreed to work with the government in developing a national strategy for fostering growth and consolidating public finances.

The discussion focused on “the need to reduce fiscal deficits, create a favourable investment climate for the private sector and delivery of key public services,” according to a press release from the World Bank.

“Maldives has enjoyed economic growth during the last decade and expects to achieve 4.5 percent growth in 2014,” Le Houérou was quoted as saying.

“But it still faces challenges, such as balancing public accounts while delivering public services on some 200 islands across hundreds of kilometres of the Indian Ocean. The issue is how Maldives can make the most of its potential in order to achieve inclusive and sustainable development.”

World Bank Country Director for Sri Lanka and Maldives, Francoise Clottes, noted the country’s “great success in developing a world-class tourism sector to take advantage of its breathtaking beauty.”

“This sector is expected to continue to grow and remains the main driver of inclusive growth and sharing prosperity, going into the future,” Clottes said.

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Tourist arrivals increase 16 percent in April

Tourist arrivals in April increased 16 percent in annual terms, reaching 105,309 guests during the month, but declined marginally compared to March, according to the Maldives Monetary Authority’s (MMA) latest monthly economic review.

A total of 105,560 tourist arrivals were recorded during the previous month.

“The annual increase in arrival was contributed by the increase in the number of arrivals from Asia and Europe,” the review stated.

“In April 2014, total bednights rose by nine percent in annual terms while the average duration of stay declined by six percent. As for the occupancy rate, it increased to 80 percent in April 2014 from 75 percent in April 2013, as the impact of the increase in bednights was greater than the increase in operational bed capacity of the industry during the review month.”

The central bank had explained in its monthly review for March that the annual increase in tourist arrivals was due to the rise in the number of Chinese tourists, “which offset the decline in arrivals from Europe.”

According to statistics from the Tourism Ministry for the first quarter of 2014, Europe retained the largest market share despite the continuing growth of the Chinese market, accounting for of 51.3 percent of all arrivals to the Maldives.

Asia and the Pacific recorded a growth rate of 24.4 percent at the end of first quarter, bringing in an additional 26,606 tourists to reach a total of 135,839.

The region accounted for 42.2 percent of arrivals to the Maldives at the end of first quarter of 2014.

The Chinese market also expanded by 24 percent with an additional 16,960 tourists compared with the same period of 2013.

A total of 331,719 Chinese tourists visited the Maldives last year, which was a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

The Maldivian economy is largely dependent on tourism, which accounted for 28 percent of GDP on average in the past five years, and generated 38 percent of government revenue in 2012.

Real GDP growth is meanwhile expected to accelerate to 4.5 percent in 2014, “driven mainly by the tourism sector” while “economic activity is also expected to be spurred by the government budgeted expenditure of MVR16.4 billion.”

Inflation

The rate of inflation in the capital Malé – measured by the annual percentage change in the Consumer Price Index (CPI) – reached 2.6 percent in April, up from 2.3 percent the previous month.

The inflation rate in February 2014 was 3.4 percent.

“This was largely contributed by the pick up in the growth of food prices, especially fish, and also due to the moderate growth in rent prices and cost of health services,” the review explained.

“On monthly terms, the rate of inflation increased from -0.5 percent in March 2014 to 0.3 percent in April 2014, which was mainly due to the growth in fish prices.”

The International Monetary Fund (IMF) commodity price index meanwhile registered an increase of one percent in monthly terms and three percent in annual terms in April.

“The monthly increase was mainly due to the increase in prices of petroleum, food and metal prices. As for the annual increase, it was due to the increase in food and petroleum prices as metal prices fell during the review period.”

“The price of crude oil increased by one percent in monthly terms and by six percent in annual terms to US$104.9 per barrel at the end of April 2014,” the review stated.

Gross international reserves meanwhile grew by 24 percent in April compared to the same period last year, reaching US$434.8 million by the end of the month. The gross reserves however declined by 13 percent in April in monthly terms.

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MMA seeks feedback on draft consumer finance law

The Maldives Monetary Authority (MMA) has invited interested parties to submit comments, views and suggestions on a consumer finance bill drafted by the central bank.

The bill is intended for “the purposes of providing for licensing of financial institutions to conduct consumer finance business in Maldives, policies for the operations of such institutions in a safe and prudent manner, supervision of such institutions and provision for other related purposes.”

Interested parties were asked to submit feedback on the draft legislation through email before June 15.

Consumer finance involves a variety of loans to individual consumers, including credit cards and mortgage loans from banks and credit unions as well as alternative lenders such as finance companies.

Earlier this month, CEO of the Capital Market Development Authority (CMDA) Fathimath Shafeega told Minivan News that the Maldives was  “ideally placed” to become an international financial centre.

The country’s fledgling legal framework for the finance sector was both a strength and a weakness, she explained: “We don’t have regulations hindering a lot of things. We can start from a clean slate. But parliament needs to be very much involved in it. We might need to provide the software – laws and regulations and other policy frameworks – while investors can bring the hardware.”

Shafeega also argued that the successful establishment of an Islamic Capital Market – featuring Shariah-compliant financial products – would also add to the Maldives’ appeal as a future financial hub.

Strengthening the finance sector

Meanwhile, in a keynote address delivered at a finance forum held earlier this month, MMA Governor Dr Azeema Adam stressed the importance of an “efficient and modern financial sector” as well as access to finance for creating “a society of entrepreneurs.”

“To allow the financial sector to thrive, it is imperative that we have a well-developed legal framework,” she said.

“When the legal framework is fully developed, there would be timely enforcement of contracts, and the protection of investors’ rights. There would be legal instruments for recovering debt. There would be speedy settlement of commercial cases in the courts.”

She noted that the central bank was working with the government to introduce new legal instruments and to strengthen institutions, referring to the recently passed Anti-Money Laundering Act as “one such legislation that would safeguard the financial sector from criminal activities and enhance investor confidence.”

While the central bank has a “fairly robust financial sector regulatory framework,” Dr Azeema said the MMA was in the process of reviewing existing regulations to identify constraints to the development of the finance sector.

“This will minimise the chances for the financial system to be burdened by unnecessary rules and unintended consequences,” she explained.

“International experience suggests that even a slight improvement in the legal and financial regulatory frameworks brings significant changes to the financial sector, enabling new financial products to emerge.”

She added that the financial services currently provided in the country should be expanded and modernised in order to attract investment.

“There is scope and indeed the need for increased competition in the financial sector,” she continued.

“The banking sector needs to be modernised. It is time that banks adopt 21st century tool kits in providing services to their customers. The banking sector has to become more competitive, and banking services need to be expanded. Non-bank financial services and capital market activities also need to be further developed in the country.”

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Selfies and suspensions – The Weekly Review

May 17th – 23rd

The start of the AFC Challenge Cup and that selfie dominated headlines and twitter feeds this week.

Talk of national unity and a belief that the tournament could be a springboard for the advancement of the nation’s football will continue as the Maldives rode their luck to make it into next week’s semi-finals.

Supreme Court Judge Ali Hameed’s luck also appeared to hold out this week as police announced investigations into the justice’s alleged appearance in a sex-tape were being suspended.

The Maldivian Democratic Party declared that this, along with the judicial watchdog’s failure to make headway with its own investigation, to be evidence of a justice system unable to deliver justice.

With criticism also coming from President Abdulla Yameen regarding the Judicial Services Commission’s failure to conclude cases in a timely fashion, the JSC stated that all procedures were being followed.

Meanwhile, the Supreme Court continued to strengthen its grip on judicial administration with new regulations. The court was also said to have played a leading role in the decision to change the judge in the alcohol smuggling trial of governing coalition leader Ahmed ‘Sun Travel’ Shiyam.

Despite only one hearing having been held regarding the two-year-old charges, Shiyam had expressed concern that the presiding judge’s demeanour had indicated a personal grudge against him. Judge Abdulla Mohamed has taken over the case.

The Family Court was said to have ejected two representatives of the Anti-Corruption Commission (ACC) this week, though the court itself denied the claims. A regional report from Transparency International urged the government to further empower the commission in order to fight graft.

The ACC received a case last week accusing Tourism Minister Ahmed Adeeb of using state-owned companies to withdraw millions of dollars which has not been repaid – charges Adeeb has refuted.

The government announced this week that it will soon empower one company to build the fabled Malé–Hulhulé bridge, with bidding set to open early next month. While plans for the US$7 million renovation of IGMH were also revealed.

With three minors convicted this week in relation to a fatal stabbing, the recent decision to facilitate the reintroduction of the death penalty again made international headlines. Former Home Minister Hassan Afeef, however, questioned the government’s sincerity in moving to end the sixty year moratorium.

Speaking at the country’s third Finance Forum this week, Maldives Monetary Authority Governor Dr Azeema Adam called for the government to work in concert with society to cut expenditure before a panel of experts discussed how to attract foreign investment.

The investments of the Foreign Ministry during 2011 were questioned by the auditor general this week, while the mayor of Malé City Council questioned the Finance Ministry’s assistance in the capital’s growing waste management problems.

The details of the deputy mayor’s run-in with a fellow council member – since suspended – were caught on tape. Progressive Party of Maldives councillor Ahmed Mamnoon bragged to Shifa Mohamed that he was a ‘gunda’ – thug/gangster.

Working alongside their Sri Lankan counterparts, the police this week returned convicted drug kingpin Ibrahim Shafaz Abdul Razzak to the Maldives after he overstayed his medical leave.

Meanwhile, seven former employees of Sheraton’s Full Moon resort were escorted from the island by police, alleging that their dismissal was linked to their union activities.

Police also dismantled a youth hangout in Villimalé, leading to criticism from local MP Ahmed Nihan who questioned the police’s approach to dealing with the youth.

In the atolls this week, a “benchmark” low carbon emission project was launched in Laamu while a continuing drought in Haa Alif atoll caused the islanders on Ihavandhoo to pray for rain.

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