PPM MPs support abolishing tourism bed tax

Deputy leader of the ruling Progressive Party of the Maldives’ (PPM) parliamentary group Moosa Zameer has supported abolishing tourism bed tax if the Tourism Goods and Service Tax (T-GST) is raised from 8 to 12 percent.

Reintroducing the US$8 tourism bed tax, which was discontinued on December 31, 2013, is among the raft of revenue raising measures proposed by President Abdulla Yameen.

However, speaking at an eleven member sub committee set up to review the government’s revenue raising measures, Zameer said that government aligned MPs now believed bed tax should be abolished if T-GST were to be increased.

Finance Minister Abdulla Jihad has denied any change in the government’s stance.

“It has not changed. And if the government does not go on with the bed-tax, the numbers will not match in the budget,” Jihad told Minivan News.

According to the Madives Tourism Act, bed tax must be abolished within three years of the introduction of T-GST. The Finance Ministry has said discontinuation of bed tax will cost the state MVR100 million (US$ 6.4 million) every month.

The government expects MVR3.4 billion (US$ 224 million) from revenue raising measures. These also include revision of import duties, raising airport departure charge for foreign passengers from US$ 18 to US$ 25, leasing an additional 12 islands for resort development, introducing GST for telecommunication services, and collecting resort lease extension in advance.

Government aligned MPs requested the People’s Majlis hold an extraordinary session during the ongoing recess, contending that failure to pass the revenue raising measures will hamper the implementation of the 2014 budget.

Meanwhile, the Maldives Association for Tourism Industries (MATI) has questioned the practicality of collecting resort lease extensions in a lump sum.

Speaking at the sub committee yesterday, Secretary General of MATI Ahmed Nazeer said only 17 out of more than one hundred resorts had paid resort lease extension fees upfront during former President Mohamed Nasheed’s administration.

Nazeer pointed out that the Civil Court had said the government could not ask for resort lease extensions upfront during Nasheed’s tenure.

Further, resort owners had amended their agreements to pay lease extension in installments during President Dr Mohamed Waheed Hassan’s administration, and as such it would be difficult to amend legislation, Nazeer said.

Then Governor of Maldives Monetary Authority (MMA) Fazeel Najeeb at the time opposed many of those measures, arguing that asking resort owners to pay lease extension fees upfront was robbing the state of future revenue for a “temporary benefit.”

Opposition Maldivian Democratic Party (MDP) MPs said changing agreements could reduce investor agreement in the country.

MDP has described the government’s revenue raising measures as excessive.

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MP Sameer joins Jumhooree Party

Maldivian Democratic Party (MDP) MP Ahmed Sameer has signed up to the government aligned Jumhooree Party (JP) on Tuesday.

According to the JP, Sameer joined the party after it promised him the ticket to contest in Dhihdhoo constituency – a seat he currently occupies in parliament – in the upcoming Majlis elections.

Sameer was initially a member of the JP, but later joined the opposition MDP in 2009 to contest in that year’s parliamentary elections.

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Attorney General refuses to attend parliament committee regarding revenue bills

Attorney General Mohamed Anil has refused to attend the parliamentary committee tasked with reviewing revenue bills after being summoned to a meeting scheduled for Tuesday.

The rejection letter sent to the parliament secretariat argued that the bill of amendments to the Tourism Act and T-GST [Tourism Goods and Services Tax] bills include policies compiled by the Economic and Youth Council of the cabinet.

Anil stated that the only role played by the Attorney General’s Office had been to draft the bills as directed by the council.

“As this office has no comments to make on the content of these bills at this moment, I respectfully inform you that I excuse my office from sending staff to attend the meeting we have been invited to,” a parliament official quoted the letter as saying.

Opposition Maldivian Democratic Party (MDP) MP Ahmed Hamza has suggested that the absence of the Attorney General (AG) suggests disapproval of government policies.

Upon forming a government late last year, President Abdulla Yameen divided his cabinet into two sub-divisions – a social council and an economic council.

Government aligned parties have initiated special sessions of the parliament in order to extend the duration in which bed taxes can be charged, and also to increase T-GST. The government has also proposed to take full payments as lease from resorts that have extended their contracts.

President’s Office Spokesperson Ibrahim Muaz Ali stated that, while the attorney general’s reasons for refusal are “absolutely clear”, the cabinet has thus far not decided whether it will hold discussions on the relevant policies with the parliament committee.

Ruling Progressive Party of Maldives (PPM) MP Ali Arif – who sits in the committee tasked with reviewing the revenue bills – stated that he would be able to further comment on the matter after deliberations with the attorney general.

“What the AG has actually said is that he has already provided his views on the matter to the cabinet’s Economic Council, and therefore he declines from attending the committee to present the same views,” Arif stated.

Opposing view

An opposition MDP member in the same committee has interpreted the AG’s refusal to attend the committee meeting in a different light.

“Reading between the lines, MDP feels that the AG refused to attend as he does not agree with some of the things proposed by the government,” MDP MP Ahmed Hamza told Minivan News today.

“One of the things we feel he disagrees on is the government’s proposal to change the payment terms for resorts, to cancel the extentions granted to payments in breach of what the government has previously agreed with resort owners,” he continued.

“The other thing is the bed tax. The law says bed tax charges are to be ceased from December 31, 2013. The government is now proposing to continue taking it from January 1, 2014, but there is no law to support this. We feel the AG does not support taking this in retrospect after a law is formed now,” Hamza stated.

The AG, Mohamed Anil, was not responding to calls at the time of press.

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Finance Ministry imposes cost cutting measures

The Ministry of Finance and Treasury last week instructed all government offices to enforce cost cutting measures in a bid to reduce recurrent expenditures and manage government cash flow.

A circular issued by Finance Minister Abdulla Jihad instructed offices to limit overtime pay to no more than five percent of the office’s annual budget.

Other cost cutting measures included targeting subsidies, limiting allowances to 35 percent of an employees’ salary, and not covering phone expenses of senior officials – with the exception of cabinet ministers.

Moreover, offices were instructed not to hire speedboats for official travel in areas with a ferry service.

Finance Minister Jihad told local media this week that the government has also decided to reduce the MVR80 million (US$5 million) allocated in this year’s budget for civil servant’s salary bonus to MVR40 million (US$2.5 million).

Jihad said recurrent expenditure was too high for the government to “make ends meet.”

In December, parliament passed a record MVR17.5 billion (US$1.16 billion) budget for 2014, prompting President Abdulla Yameen to call upon the legislature to approve revenue raising measures proposed by the government.

On Sunday, parliament accepted with a 38-vote majority three bills submitted by the government to raise additional revenue.

The bills included an amendment to raise the Tourism Goods and Services Tax (T-GST) from eight to 12 percent as well as two amendments to the Tourism Act in order to reintroduce the discontinued flat US$8 bed tax and to require resort lease extension payments to be paid as a lump sum.

An 11-member subcommittee chaired by business tycoon Gasim Ibrahim – leader of the government-aligned Jumhooree Party – is currently in the process of reviewing the government-sponsored legislation.

The committee met representatives of the Maldives Association of Travel Agencies and Tour Operators (MATATO) and the Maldives Association of Tourism Industry (MATI) today to discuss the impact of the tax hikes on the sector.

Following the Majlis’s failure to extend the tourism bed tax before the end of last year, Jihad told local media that the resulting shortfall in revenue would be MVR100 million a month.

In an interview with Minivan News last week, Tourism Minister Ahmed Adeeb criticised parliament for going into recess without passing bills designed to generate income.

“This causes the budget to expand, but there’s no way for the government to earn enough to implement it. The T-GST matters even more to the state income. The state keeps expanding, the allowances and salaries keep increasing, but the income for all of this still depends on the 25,000 tourist beds. Unless we expand this, how can we increase what we earn? We can’t keep expanding the state, and then squeezing the existing tourism sector without expanding it,” Adeeb warned.

Recurrent expenditure

Shortly after assuming the presidency, Yameen announced that he would only draw half the presidential salary of MVR100,000 (US$6,500), and would reduce the number of political appointees at the President’s Office.

Submitting the 2014 annual budget to parliament last year, Jihad noted that recurrent expenditure (MVR12 billion) accounts for 73 percent of the total budget, with almost half spent on salaries and allowances for state employees in addition to administrative costs, interest payments and subsidies.

Jihad advised implementing a raft of austerity measures, contending that the “expensive” public management model adopted in the Maldives was inappropriate for a small island state.

Almost 50 percent of government income was spent on employees, Jihad observed, advising revision of the state pension system and reduction of the numbers of island and atoll councillors as well as members of independent institutions and boards of government-owned companies.

In its professional opinion on the 2013 budget, the Auditor General’s Office stated that a policy of population consolidation together with effective measures to reduce the public sector wage bill was necessary to rein in the continuing fiscal deficits.

When announcing his resignation at a press conference earlier this month, former Maldives Monetary Authority (MMA) Governor Dr Fazeel Najeeb contended that the structure of government was outsized for the Maldives and warned against printing money to cover the “far too hefty expenses of many state institutions.”

In November last year, Najeeb told parliament’s finance committee that the public bank account was overdrawn by MVR1.5 billion (US$97 million) as a result of having to finance government expenditure.

“When we have to accommodate every request by the government we are forced to act completely against the MMA law,” he said, referring to printing money.

Jihad explained to MPs on the committee that the government was forced to approach the MMA because foreign banks were refusing to buy or rollover treasury bills.

While MVR500 million (US$32 million) a month was needed to pay salaries and allowances for state employees, government income in some months was just MVR300 million (US$19 million), Jihad noted, leaving no option but turning to the central bank.

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Government’s revenue raising bills sent to committee

Three bills submitted by the government to raise additional revenue have been sent to a committee of the full parliament for further review.

Today’s extraordinary sitting of the People’s Majlis was held during the ongoing recess upon request of 27 government-aligned MPs. The government contends that failure to pass the revenue bills during the last session of 2013 was hampering implementation of the budget.

The three bills accepted today included an amendment to raise the Tourism Goods and Services Tax (T-GST) from eight to 12 percent as well as two amendments to the Tourism Act in order to reintroduce the discontinued flat US$8 bed tax and to require resort lease extension payments to be paid as a lump sum.

While two of the bills were accepted with 38 votes in favour and 26 votes against, the third was accepted with 37 votes in favour and 26 votes against.

The full Majlis committee formed an 11-member subcommittee to review the bills, including five opposition MPs and six pro-government MPs. The extraordinary sittings have been scheduled to resume on February 3.

Among other revenue raising measures proposed by the government are revising import duties, raising airport departure charge for foreign passengers from US$18 to US$25, leasing 12 islands for resort development, and introducing GST for telecommunication services.

In December, parliament passed a record MVR17.5 billion (US$1.16 billion) budget for 2014, prompting President Abdulla Yameen to call on the legislature to approve the revenue raising measures to enable the government to finance development projects.

“Double taxation”

MPs of the opposition Maldivian Democratic Party (MDP) voted against all three pieces of government-sponsored legislation, expressing concern over potential adverse effects on the tourism industry.

While some government-aligned MPs echoed the concerns, most argued that increasing government revenue was essential for providing public services and financing government operations.

MP Ibrahim Mohamed Solih, parliamentary group leader of the MDP, has previously contended that raising T-GST while reintroducing the bed tax would amount to “double taxation.”

Following the Majlis’s failure to extend the tourism bed tax before the end of last year, Finance Minister Abdulla Jihad told local media that the resulting losses to state revenue would be MVR100 million a month.

In an interview with Minivan News last week, Tourism Minister Ahmed Adeeb said parliament had not considered the impact on the budget when it broke for recess without extending the bed tax.

“Normally, budget and government revenue earning bills are passed together. But here, the parliament goes into recess after passing the budget, leaving the income bills pending for after that. And even then, they often just fail,” he said.

“This causes the budget to expand, but there’s no way for the government to earn enough to implement it. The T-GST [Tourist Goods and Services Tax] matters even more to the state income. The state keeps expanding, the allowances and salaries keep increasing, but the income for all of this still depends on the 25,000 tourist beds. Unless we expand this, how can we increase what we earn? We can’t keep expanding the state, and then squeezing the existing tourism sector without expanding it.”

On January 6, Adeeb issued a circular to all tourist establishments informing the resorts that the government was seeking reintroduction of the bed tax.

Resort lease extensions

Under the amendments proposed to the Tourism Act, resort leases can be extended to 50 years with a lump sum payment of US$100,000 per year.

Resorts with approved lease extensions – currently paying for the extension in installments – would also have to make the full payment within three months of ratification.

Following the controversial transfer of presidential power in February 2012, the administration of President Dr Mohamed Waheed allowed extended resort leases to be paid in installments, rather than upfront at the end of the lease.

In April 2012, the Maldives Inland Revenue Authority (MIRA) revealed that the total revenue collected in March 2012 was 37.9 percent lower than the projected revenue “mainly due to the unrealised revenue from the Lease Extension Period.”

At the time of the Tourism Ministry’s announcement of the extension payment changes, the government had already received lump sum payments from 25 resorts equating to US$40 million and was expecting nearly US$135 million more from 90 resorts.

“The [administration of former President Mohamed Nasheed] had requested that those resorts extending to a 50 year lease pay in a lump sum,” former Tourism Minister Dr Mariyam Zulfa explained to Minivan News at the time.

“[But] while I was Tourism Minister, Gasim Ibrahim and Ahmed ‘Redwave’ Saleem kept pressuring me to let them pay on a yearly basis. They didn’t want to give any money to the government, and soon after the government changed they got what they wanted. [The installments] will only be payable at the end of the current lease periods – it is a huge loss to the treasury.”

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Q&A: MP Rozaina Adam – Thulusdhoo constituency

In a series of interviews to lead into the the 2014 parliamentary elections – scheduled for March 22nd – Minivan News will be conducting interviews with incumbent MPs.

All 77 sitting members have been contacted, from across the political spectrum, to be asked a standardised set of questions with additional topicals. The interviews will be published as and when they are received.

As part of the series, Minivan News interviewed MP Rozaina Adam,

MP Rozaina represents the Thulusdhoo constituency of Kaafu Atoll and was elected on a Dhivehi Rayyithunge Party (DRP) ticket, she joined opposition Maldivian Democratic Party (MDP) in November 2013.

Ahmed Rilwan: What made you enter the political arena and how?

Rozaina Adam: My family was involved in politics – my father was an MP and my mother served in the Special Majlis. So I have been interested in politics since childhood. But the system back then didn’t make it easy for anyone new to enter politics, but the introduction of party system provided many with this opportunity. So in 2008 I decided to run for People’s Majlis the following year.

AR: Based on your attendance and work in this ending term, how would you judge your performance as an MP?

RA: I am very satisfied with the work I did.

AR: What are the main committees you worked on? What particular bills did you focus on?

RA: I am currently in the Committee on Independent Institutions, National Security Committee, and the 241 [security services oversight] Committee. I am serving as the vice chair in all three committees now and the Chair of Sexual Harassment Bill Review Committee.

Earlier I was in the National Development Committee, and was the Chair of Domestic Violence Bill Review Committee as well as the subcommittee that reviewed the Anti-Torture Bill.

As for bills, I introduced the Domestic Violence Bill and proposed an amendment to the Majlis regulation to create a dedicated committee for women and children’s issues. I was working on the Sexual Harassment Bill when I discovered that the government is also preparing one, so I introduced the bill on behalf of the government.

I have also drafted a bill on medical negligence, it has been sent to the Ministry of Health for comments. It is still pending as I had to send it to each new minister with the government changing thrice recently.

I proposed an amendment to the Maldives Family Regulation to increase the child support payments, another amendment for the Decentralization Act to reserve a seat for women in the local councils and to arrange allowances for women’s committees. And the [second] amendment to the Public Finance Act requiring [the government] to send the budget to People’s Majlis earlier. These are the main bills that I worked on.

AR: What would you say are the biggest achievements within your term – in terms of what you have accomplished for your constituency and the country as a whole?

RA: I was able to include all major needs of my constituency in the budget, but there is not much I could do about the government halting some of these projects.

During my term in Majlis, harbors of K.Huraa and K.Dhiffushi were completed. Thuslusdhoo land reclamation and harbor projects were included in the budget, water and sewage system of Himmafushi and Thulusdhoo were completed. A set of classrooms were constructed in Huraa, work is in progress for classrooms in Thulusdhoo and Dhiffushi.

One major issue that my constituency faced was the controversy that followed the changing of Atoll Council from Thulusdhoo [when the Atoll Council decided to move the office from Maafushi to Thulusdhoo the government fought against it]

I see that as a major achievement. Even as an opposition member I worked against the government – with DRP members – to find a solution to that problem within the Majlis.

My main focus in Majlis was mostly women’s development issues. I focused more on such issues because only five out of 77 MPs are women. There are plenty of people to focus on other issues, but only a few people focus on women’s issues. So I chose to give more attention to that area.

For instance I put a lot of  pressure to fast-track the Sexual Harassment Bill, especially during the Fahmy controversy [when President of the Civil Service Commission Mohamed Fahmy was accused of sexually harassing one of his staff].

I was in DRP back then, however I supported that [of removing Fahmy for sexual harassment] even though it was MDP [Maldivian Democratic Party] that proposed it. It was because of my vote in the committee [ Committee on Independent Institutions ] that it was passed [to remove Fahmy]. And due to this the issue of sexual harassment came to national attention, I see that as a huge achievement.

AR: What would you say is the biggest mistake or worst step you have taken in your political career? Why?

RA: I can’t say it was completely wrong, but in hindsight, I am not entirely happy that I supported President Maumoon [Abdul Gayoom]. When I look back now it seems so, but my decision was based on the information I received at the time.

Later I found from President Maumoon’s words and actions, especially what he said when Theemuge [Presidential Residence] audit report was published and how he justified it. It was all very different from the reality which was revealed when the original bills and documents were sent to the Majlis.

There is nothing else that I see as mistake. I was in DRP because I accepted the party policies. But with the presidential elections we realized that DRP’s goals cannot be achieved as it still remains a party created by Maumoon. I decided to change to MDP because I believe the political sphere will actually have [just] MDP and PPM. And I don’t believe PMM was established to serve the people.  We know exactly why they left us [DRP], it was to sustain President Maumoon’s family rule. So I believe a lot of good can be achieved for the people through MDP. If we look in to the background of MDP we can see there are opportunities for everyone in this party.

AR: Are you taking the optional committee allowance of an additional MVR20,000? Why or why not?

RA: I have no personal feelings towards it, neither for nor against it. But I do take it. For the most part of my term I served as an opposition MP, so it was tough to manage problems faced by my constituents.

MP s don’t have to provide financial assistance to their constituents, but we should understand that it still is the established culture in Maldives, it doesn’t seem to be changing. It is hard to ignore when someone approach for assistance especially for medical purposes. The common mindset is that MPs are supposed to provide this assistance, so we have to.

AR: What is your view about parliamentarians and other public servants declaring their financial assets publicly for the electorate to be able to refer to?

RA: I don’t have any problem with that.

AR: Are you re-contesting in the next elections? Why? What do you hope to accomplish should you be elected for a new term?

RA: For the next Majlis I am running for Addu City’s Meedhoo constituency seat. I chose that constituency because my mother is from Addu City, and as a person who fights for gender equality I don’t believe that people only belong to their father’s island. So I believe I belong Addu City as much as I belong to Malé City.

We can see that instead of developing, Addu City is going backwards. It used to be one of the most developed regions in Maldives even during the early days of President [Ibrahim] Nasir. But day after day more people had to migrate to Malé City for various reasons and the place now seems abandoned. It is because there are no basic services. Even now, while we call it a city,  there are no water and sewage services, roads are not repaired, electricity services is weak. If we take a look at education and health we don’t see services adequate for a city. I am going face the challenging task of develop Addu City as a city, doing whatever could be done within the Majlis.

If I am elected, my vision is to propose a bill to Majlis that would set standards and detail the services that should be available in a city. I wish to state in the bill that basic services – such as water, sewerage, repairing of roads – should be provided within a certain period of being declared as a city. Addu City should have university campuses, have services such as renewal of ID cards, paying migrant worker visa fees if it is city. Actually the services provided in Malé City is also not that good. So all cities will benefit from this bill.

AR: What improvements do you feel the 18th Majlis will need to make to improve as an institution?

RA: I think MPs should work more responsibly in serving the people through the Majlis. Speed up the committee stage of bills.

And we see that it is the government, and not MPs, who propose most bills to the Majlis. There are some difficulties in doing this. We don’t get the necessary legal assistance from our Majlis, in other countries there are legal assistants to help MPs draft bills. We as MPs discuss the issues and how those issues have to be dealt with, but drafting a bill is a technical work. Currently we have to pay private firms to draft bills, and it is costly.

I think this is something the secretariat should work on, there should be a drafting department capable of providing this assistance.

AR: What are your thoughts on party switching? Do you think it undermines the party system?

RA: It does not undermine party system. Party is actually a political ideology, so if a person’s thinking changes and that the current party does not follow the same line of thinking, one has to go where that thinking exists.

I don’t believe in changing party for money. But changing to a party that fit’s one’s political thinking and ideology is a right, and it is a right guaranteed by the constitution for every citizen.

When the general thinking of majority membership of the party varies from mine, if I stay in that party I will always have to work against the common members of the party.

There are not much of difference ideological between MDP and DRP, especially DRP leadership. The split up came during the presidential elections when it came down to MDP versus PPM – DRP had to take a side. We found that common members wanted to side with PPM, but most people in DRP leadership has a thinking similar to MDP.

I assure to all members of MDP that I came to MDP because I wanted to. And despite what some anti-campaigners say, I did not change party for the seat and I will never change to PPM.

AR: What do you see as major challenges for political participation of women in the Maldives?

RA: There should be equal rights, and you could say women can run for parliament and they can also get elected even without reserving seats. But we can see the results, that it is not the reality. If that was the case people would be elected equally [from both genders].

Another issue is financing campaigns, most cannot fund campaigns by themselves. We need to find ways to provide funding for women who compete in elections. The government also need to create awareness and encourage women to get into politics.
But we can’t reserve seats without amending the constitution. Another way to deal with this is for parties to encourage women to compete in their strongholds. If I’m elected I will do whatever is necessary for the empowerment of women.

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President Yameen withdraws nominee for MMA governor

President Abdulla Yameen Abdul Gayoom has withdrawn his nominee for the Maldives Monetary Authority (MMA) governor.

According to local media, President Yameen withdraw the nomination of Ibthishama Ahmed Saeed, an associate director at the Bank of Maldives Plc Ltd (BML), but has yet to submit a new name to parliament.

Former Governor Dr Fazeel Najeeb stepped down from the post on January 1 after five years at the central bank.

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Q&A: MP Ahmed Easa – Kendhikulhudhoo constituency

In a series of interviews to lead into the the 2014 parliamentary elections – scheduled for March 22nd – Minivan News will be conducting interviews with incumbent MPs.

All 77 sitting members have been contacted, from across the political spectrum, to be asked a standardised set of questions with additional topicals. The interviews will be published as and when they are received.

As part of the series, Minivan News interviewed MP Ahmed Easa.

MP Easa represents the Kendhikulhudhoo constituency of Noonu Atoll and is from opposition Maldivian Democratic Party.

Mariyath Mohamed: What made you enter the political arena and how?

Ahmed Easa: My maternal family has always been a political family. My maternal uncle Tholhendhoo Hassan Gasim even spent time in detention as a political prisoner during Maumoon’s [former President Maumoon Abdul Gayoom] regime and was tortured then. Hassan Gasim was my guardian after my mother passed away. So from a young age I was exposed to political discussions. Hassan Gasim also served as island chief for about 40 years, and even as Atoll Chief for Noonu Atoll. He even received an Award of Honour from the state for his practice of traditional medicine. He was quite popular in the North, and this led to many high level political discussions happening in my house at the time.

From a young age I was exposed to the truth of the torture and injustice that was a norm in Gayoom’s regime, and so from a young age I disliked Maumoon’s leadership.

I grew up and joined the tourist resort industry. I had the good fortune to get many opportunities to work abroad within the luxury hotel industry, which resulted in my getting to meet numerous famous personalities, including politicians, leaders of various nations. I also became aware of the levels to which citizens of other countries had their human rights protected and civilian rights respected. While I have not been able to acquire academic credentials in the field of politics, various experiences led to my knowledge of the area being quite strengthened.

And then after I came back to work in the Maldives, the Employee Act was formed, and tourist sector employees were completely removed from having these rights. With our background knowledge of labour rights in other parts of the world, we could not at all tolerate this injustice. So, along with other long term colleagues, we set out to obtain the rights we were entitled to. Our belief was that if we were not able to find a solution to this matter ahead of the 2008 presidential elections, it would later prove doubly hard to accomplish our goals. This is because, as you know, it is easiest to get the attention of politicians at times when there is an election looming closely ahead.

So we exerted a lot of pressure to amend the law. We met with all the parliamentarians, the cabinet and other government authorities. We submitted the largest local petition to date, with signatures of over 10,000 tourism sector employees. And even then we were not able to get a good enough response, and so we called for the country’s first industrial strike. We called for employees to halt work in all resorts of the Maldives, and received immense support. When work in resorts began to come to a halt, Gayoom asked then Minister of Legal Reform Mohamed ‘Kutti’ Nasheed to submit amendments to the parliament. I believe that was a huge accomplishment gathered with my leadership and the hard work of many others. I take pride in the fact that the association we formed is now stronger, and operating as an internationally recognized trade union under affiliation with international trade unions. While I am not on its leadership anymore, there are some very young capable persons leading it today.

The first purely political activity I engaged in was during the referendum on whether there should be a presidential or parliamentary system here. I actively led the campaign in Kendhikulhudhoo to elect a parliamentary system. I took leave from my work at the resort and even freelanced as a reporter for the publication known as Minivan News at the time. The regulation’s Article 21 said that the votes cast in any island must be counted at the island itself before the ballot box is shipped back to the capital. In many islands, things happened in contradiction to this act, with ballot boxes being sealed and sent out without being counted. I protested. I said that things have to be done as per the regulations. After some chaos and huge problems around the matter, the Elections Commission finally ordered the regulations to be followed in all islands.

Even at that point, I am a man who sticks to my principles. I enter anything after much consideration and thought. I only take up what I believe to be something that I must do. Once I do come out, I will work on the front lines. My belief is that once we set out to do something, there are only two possible results. One is to succeed, and the other is to fail. There are things we must accept both in our successes and failures.

For example, the recent presidential elections. I don’t accept how the matters around the election proceeded. I don’t believe it was a free and fair election. It can only be a free and fair election if the Elections Commission is able to practically have all the powers and authority granted to it by law in the conduct of an election. What I saw was that the past election was held by the Supreme Court, and not the Elections Commission. There are no laws that allow the Supreme Court to conduct an election, and so I don’t accept the way the elections were conducted.

However, although we did not win the polls, there are certain things that we did succeed in. One is that we were able to bring the Maldives out of the state of coup, and install an elected leader voted in by the people, regardless of how the elections were conducted. So we have accepted this. Our party believes it is a huge success that there is a government which came to power as a result of citizens being able to exercise their right to vote.

Even today I believe, the country is better suited to be run under a parliamentary system. I don’t think that the overlap between the three powers of state and the issues that arise as a result will still be present if we can better understand the governing system. I believe the political leaders must think about this today. One must not try to change the system once there is an election overhead, that will only lead to chaos. It must be well thought out and done in more peaceful times.

MM: Referring back to the association you have mentioned, what is your role in the formation of TEAM (Tourism Employees Association of Maldives) and do you still assist in its management at present?

AE: Like I said, we started working as a group to ascertain that we are entitled to our rights. It was not an easy job to get employees in over 90 resorts to sign the petition without us personally travelling to those islands. However, even the petition did not bring about the desired result. So we believed, after the advice of experienced persons, that it is through forming a trade union that we can advocate for our rights effectively. However, as it was not clear if we authorised to form such a union under then existing laws, we registered as an organisation. However, today it has changed into a trade union.

Today, my role is only advisory. And that too, I only provide advice if I am requested for it, and the association is not mandated to follow my advice. The trade union has a strong leadership today. As there may arise a matter of conflict of interest, they advised me to resign and stop attending board meetings from the point I got elected as an MP of then ruling party MDP.

MM: Based on your attendance and work in this ending term, how would you judge your performance as an MP?

AE: As I see it, the parliament is a hectic place, and one that carries serious responsibilities. I attempted to perform at my maximum capacity. I don’t think my attendance records will be too bad. Unless I am away on an official trip, or more recently out of Malé for a medical trip, I have rarely failed to attend any sessions. There have been instances where I have flown back on my own expenses from official trips in Europe just to participate in important votes in parliament. So as I see it, I paid a lot of attention to attending well. I have never missed any important votes taken in parliament.

I believe strongly in multi-party democracy and have always worked to uphold party values. I believe the work I conducted was rather good.

My attendance to committees is also very good. As the MDP member who simultaneously served on the most number of committees, there are some I might have missed due to overlapping meetings.

MM: What are the main committees you worked on? What particular bills did you focus on?

AE: I submitted numerous amendments to the Employees Act. I also submitted a bill regarding state expenditure, targeted to holding the state accountable. That bill has been passed and ratified now. That bill brings down the threat of the state going into debt regardless of which government comes to power in future. There are procedures under which state funds can be spent and loans can be taken included in this act and I believe it is a crucial piece of legislature in times as politically volatile as now.

Also other legislature like the Pre-school Act passed while I was the Chair of the National Development Committee. I did a lot of work as chair of that committee. If you do some research into it you will see that until I became chair of that committee, it had never before succeeded in completing draft of any bill and submitting it to the parliament floor.

I was in the National Development Committee, the Government Oversight Committee, the Disciplinary Committee and a temporary committee.

After the February 7 transfer of power, I focused strongly on the Government Oversight Committee as I believed it was one of the most important committees in session at the time. It is something deeply connected to citizens.

MM: What would you say are the biggest achievements within your term; in terms of what you have accomplished for your constituency and the country as a whole?

AE: In Noonu Atoll, one very sad truth is that we never see our elected MP except when elections near. Especially when Abdulla Yameen Abdul Gayoom served as the MP for the constituency, people only see him during election time. I, for one, never saw Yameen except during election time. Before I myself got elected to parliament, the last time I had seen Yameen was just before the previous parliamentary election. We see him every five years.

One thing that citizens often said to me when I first contested is that they won’t see me either from the point I get elected. That I won’t be where I can hear their concerns again. I pledged then that I would change that norm.

Today, I can proudly say that of the six islands in my constituency, there isn’t a single one I haven’t visited at least twenty to twenty five times. I have walked down all main streets, talked to the people, and dropped by several houses during these visits.

The other thing is how much I have assisted people in various things. Besides my parliamentary work, the only thing I have spent time on is assisting people in my constituency in various things.

However it is the citizens who will decide if I have served them well enough, that is not for me to say. They will make that decision in the upcoming election. If I do not get re-elected, it means I haven’t visited those islands frequently enough. That the citizens want to see their parliamentarian more. If, however, I do get re-elected, I have room to believe that the people are satisfied with the work I have done. That I must strive to do even better in my next five years.

MM: What would you say is the biggest mistake or worst step you have taken in your political career? Why?

AE: Letting a vote in favour of Tourism Minister Ahmed Adheeb slip through my hands in the recent parliament vote to endorse Yameen’s cabinet. That is the biggest mistake of my political career, what I politically suffered for most.

MM: As what you have referred to was a cause for much public criticism, would you like to explain how you came about to commit what you have termed your biggest mistake?

AE: As I see it, it is something I cannot really give much explanation for. It is 100 percent my fault. The parliament is always a loud and chaotic place, especially during important votes such as this one. Once the members start shouting, it is hard to hear what the speaker is saying or anyone else is saying, even if they speak over the microphone. That is not any justification for having let that vote slip by. If I had been able to concentrate as much as I should have, then that vote would not have slipped through my hands.

This is a kind of mistake that should not have been made by someone of my political calibre. But it happened because it was so loud there and I misheard the name that was announced.

I myself wouldn’t believe it if someone else told me what I am today. Someone of my status should not have committed such a silly mistake, and yet is done. I am facing many political challenges due to it. I am also being criticised by the grassroot level of my party because of this. I respectfully accept it all, I do understand how they feel. I believe that I deserve a penalisation for my mistake. As an organisation, the party must penalise me for this mistake. MDP is the most democratic and strongest political party. To remain so, it must take action against those in responsible positions whose acts negatively affect the party, regardless of whether the act was unintentional or deliberate.

I believe I must be penalised. It is the party that will decide what the penalty will be.

I began my political career with MDP and will not work with any other political ideology. I believe the MDP leadership includes those most faithful to the country right now. I believe President Mohamed Nasheed is the most sincere political leader. I remain steadfast in my decision to stand behind him.

I have heard through social media that MDP is considering retracting parliamentary tickets from those that voted to endorse those cabinet ministers. If they do so, I will wholeheartedly accept their decision. By saying ‘accept’, I mean that if MDP does cancel my primary ticket, if I try there might be opportunities where I can contest through another party or even as an independent candidate. However, if the party does take that action against me, I assure you that I will neither defect to another party nor will I contest as an independent candidate. Additionally, I will back whichever candidate gets the ticket and will do what I can to assist him in his campaign.

What I mean to say is that I began my political career with MDP, and that I will end it with MDP.

MM: You have just said that a vote to endorse the Tourism Minister slipped through your hands. Does this mean that this is the only cabinet minister you voted in favour of that day?

AE: Yes. I have never voted against party lines in the past five years. Even in more important votes, votes which our political opposition tried far harder to succeed in, I have steadfastly voted in alignment with party lines.

I have never broken a party whip line, deliberately or mistakenly, except for this time. And even in this instance, it was only the Adheeb vote – I voted along party lines for everyone else.

MM: Are you taking the optional committee allowance of an additional MVR20,000? Why or why not?

AE: I never really supported it even when it was first spoken of. If I remember right, I did not even participate in the first vote that was taken regarding committee allowance. I don’t remember too well how I voted in the later vote on the matter.

As I remember, I voted in line with the majority of votes that day in parliament. This is something I often do. If the party gives us a free whip, I vote as the majority of the full parliament feels is best. I think this is one of the best policies of democracy, aligning with majority. Perhaps, by doing so, I might have acted in a way that led some citizens to be displeased. What I am saying is it is possible that 77 of us do something that may displease the 200,000 or 300,000 citizens of this country.

I cannot say for certain whether I voted for or against it, but I definitely would have voted in the way the majority did that day.

The committee allowance issue led to a lot of discord. I have often spoken in parliament of compiling a solid financial structure under which those in state positions get paid. I have always advocated that the same principles be applied when giving incentives and privileges to those serving in the three separate branches of the state.

For example, about MVR100,000 is being spent on a Supreme Court judge every month, which is a huge amount. With all our allowances, an MP is also paid about MVR 82,500 or 62,500 a month, which, yes, is a hefty amount. So what I am saying is, talking only about the incentives that an MP gets and ignoring judges and others in state positions will not bring the system into order. All of it needs to be addressed.

We cannot adapt a system where we have to spend more than what the state earns.

MM: What is your view about parliamentarians and other public servants declaring their financial assets publicly for the electorate to be able to refer to?

AE: When the Disciplinary Committee discussed about financial statements, MDP members advocated for it to be made public. But the DRP, PPM, and JP stopped it through a vote then. As I see it, citizens must be able to see the financial assets of politicians. It must be available publicly even on the parliament website.

That day, opposition members said to me that while I may not have any concerns about making financial statements public as I don’t engage in other businesses, they have family businesses which they don’t want out in the public eye. I accept that they might have family businesses, but I am not referring to those. I am saying that the person who must be accountable to the public must reveal his personal financial statement.

MM: Are you re-contesting in the next elections? Why? What do you hope to accomplish should you be elected for a new term?

AE: Yes, so far I have got the parliamentary ticket without a primary as no one else contested for the Kendhikulhudhoo constituency from MDP. If, like I said before, MDP does not retract my candidacy due to my mistake in the cabinet vote I will contest. But I will remain in serving the people through MDP.

Why am I re-contesting for Kendhikulhudhoo constituency? I have always said I will contest in two terms. I have always believed that it is for very good reason that many countries say that a president can serve for ten consecutive years maximum. While the constitution does not have any limitations on how many times a person can apply for reconstestation, I believe that after two terms we must allow younger new candidates to come out and face up to the challenge. This is what I intend to do.

MM: What improvements do you feel the 18th Majlis will need to make to improve as an institution?

AE: There are some administrative challenges that the parliament faces in running effectively. This year’s budget includes funds to complete the new parliament building, which I think is absolutely necessary.

There are also some bills that need to be completed for the Constitution to be fully in effect, and so far we have not been able to finish this work.

However, as someone who worked in parliament in five years, I must say that although the performance of many members on the parliament floor may not seem satisfactory to the general public, they do a lot of work in the committees, which is where the majority of our work is conducted anyway. It is a huge challenge to effectively do this work that we do not have sufficient space to conduct meetings in.

MM: What are your thoughts on party switching? Do you think it undermines the party system?

AE: As I see it, we cannot force anyone to remain in a party. The question that then arises is if we should narrow this habit of defection through a law. However, there is a Supreme Court verdict which clearly states that this cannot be done.

What is left to be considered is honesty and sincerity. A party is an ideology. I believe that it is people who do not have a strong political belief or ideology that switches parties. The only cure for this is for parties to focus on ensuring that it is people with strong political beliefs that they raise to positions.

I for one am saying clearly that I believe in the MDP ideology very strongly. I have no doubts about my political beliefs and will not change it. As long as MDP remains steadfast in upholding its current political principles, I will remain with it.

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Parliament sitting scheduled for January 26

Speaker of Parliament Abdulla Shahid has decided to hold sittings of the People’s Majlis from January 26 onward to debate revenue raising bills submitted by the government.

The decision to resume sittings during the ongoing recess was made following a written request by 27 government-aligned MPs, contending that implementation of the budget was being hampered due to the Majlis’ failure to pass the revenue bills.

The three bills submitted by the government include an amendment to the Goods and Services Tax Act to raise T-GST from eight to 12 percent as well as two amendments to the Tourism Act intended to reintroduce the discontinued flat US$8 bed tax and require resort lease extensions to be paid as a lump sum.

Following the Majlis’s failure to extend the tourism bed tax before the end of last year, Finance Minister Abdulla Jihad told local media that the resulting losses to state revenue would be MVR100 million a month.

Among other revenue raising measures proposed by the government include revising import duties, raising airport departure charge for foreign passengers from US$18 to US$25, leasing 12 islands for resort development, and introducing GST for telecommunication services.

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