President returns from private visit to Malaysia

President Dr Mohamed Waheed Hassan Manik has returned to Male’ following a private visit to Malaysia.

President Waheed, along with First Lady Ilham Hussain, returned to Male’ on Saturday (January 5), the President’s Office website has reported.

On Thursday (January 3), President Waheed met with the Malaysian Foreign Minister Dato’ Sri Anifah Aman at the Maldives High Commission in the country as part of his trip.

According to the President’s Office website, discussions at the meeting were focused on improving bilateral relations between the two countries.

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MBC to request staff salary increase

The Maldives Broadcasting Corporation (MBC) will propose a salary increase for all of its members to parliament this year, MBC Chairman Ibrahim Umar Manik has said.

Speaking to local media, Manik said that the request for an increase in salary had been made as MBC members were not allowed to be employed elsewhere.

“The law states that the corporation should be free of all political and financial influence and influence from affluent persons. Only then can the corporation be independent,” Manik told local media.

Manik stated that the corporation is accountable to the parliament independent institutions committee, and that a request is to be made from the committee to increase staff salary.

“We are not necessarily demanding that the salaries are the same level as independent institutions and commission member salaries,” he was reported as telling the Sun Online news service.

“We informed the Public Accounts Committee of the difficulties we face because we are not allowed to be employed elsewhere, and requested that our salaries be increased. We sent this in writing, and they did not think it was necessary to do this [increase salaries]. But we will request again.”

The current salary for MBC members, as reported in local media, stands at MVR 10,0000. However, the salary of Maldives Media Council’s Board Members is just MVR 5,000.

Last year, the salary of Maldives Inland Revenue Authority (MIRA) board members was increased from MVR 10,500 to MVR 15,500 following a new salary structure passed by parliament, Sun Online revealed.

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Opposition expresses concern at defence spending hike in 2013 budget

Additional reporting by Ahmed Naish.

Budget Review Committee Member and Maldivian Democratic Party (MDP) MP Mohamed ‘Colonel’ Nasheed has revealed his party held “concerns” over the level of increased defence spending in the recently approved 2013 budget.

The 2013 state budget included a 14 percent increase to the 2012 defence budget that stood at MVR 797.9 million (US$51.7 million).

Amidst attempts to reduce the state’s budget deficit, MVR 130 million (US$8.6million) had been allocated to defence spending, bringing the total to MVR 930.9 million (US$60.3 million) for this year.

Authorities claim that the increased spending for the year is needed to cover additional duties such as the transfer of aviation security under the Ministry of Defence.

Through the budget review committee’s evaluation of the state budget, MP Nasheed claimed  that he and other members of the MDP had raised questions regarding the increase in the defence budget.

“While we understand national security is paramount, we did find the 14 percent increase to the defence budget a bit fishy,” he claimed. “We [MDP budget review committee members] raised questions regarding our concern over the increase, but unfortunately we do not have the majority on the committee.”

In order to reduce the budget deficit, the budget review committee made cuts of MVR 1.6 billion (US$103.7 million) to the MVR 16.9 billion (US$1 billion) state budget proposed by Finance Minister Abdulla Jihad. Parliament eventually passed an amended MVR 15.3 billion (US$992 million) state budget.

According to the Budget Review Committee report, the Maldives Monetary Authority (MMA) advised the committee to reduce total expenditure to MVR 15 billion and attempt to reduce public debt.

Despite the recommendations, Defence Minister Mohamed Nazim this week defended the MVR 130 million increase,  telling Minivan News that the money was needed to accommodate the newly established Aviation Security Command.  The operations have been put under the Ministry of Defence and National Security.

President Dr Mohamed Waheed Hassan Manik announced the establishment of the Aviation Security Command On Tuesday (January 1) in order to formulate aviation security policies and procedures.

Aside from undertaking new responsibilities under the Aviation Security Command, Defence Minister Nazim said additional improvements for Maldives National Defence Force (MNDF) personnel welfare were also being sought.

“We are also looking to improve accommodation for MNDF personnel, and we will be looking to open an operating theatre and Intensive care unit in the military hospital,” said Nazim.

When asked as to why the military hospital needed to be expanded given the size of the MNDF, Nazim said that uniformed personnel waiting in line to receive treatment at the other two hospitals in Male’ wasted valuable service time.

“The hospital is not just utilised by the military, it is also used by the police force and immigration and customs officers,” he added.

When addressing the issue of increased defence spending within the budget, Dhivehi Rayyithunge Party (DRP) MP and budget review committee member Dr Abdulla Mausoom said that national security was an important consideration needing to be made.

“You are talking about national security, and now aviation security for a whole country. Yes the budget is more than reasonable. The DRP is under no influence from the government and this time we are not concerned over the increase in the defence budget,” Mausoom said.

New uniforms and new accommodation for MNDF

Speaking at a ceremony on Monday (December 31, 2012) to unveil new uniforms for naval officers, Defence Minister Nazim said that efforts were underway to arrange accommodation for more officers at MNDF centres.

“Equipment has been purchased to arrange accommodation for officers. After the repairs, more officers will get accommodation in the next three months,” Nazim was quoted as saying.

The new accommodation would be provided at the MNDF Bandaara Koshi and Kalhuthu’kala Koshi in Male’, Nazim said.

Nazim said that efforts were also being made to arrange for low cost medical treatment for MNDF officers and their families overseas.

Providing accommodation to MNDF officers was discontinued as part of cost-cutting measures implemented by the administration of former President Mohamed Nasheed.

During last month’s budget debate, parliament’s Majority Leader, MDP MP Ibrahim Mohamed Solih, criticised the Finance Minister for failing to mention in his budget speech plans to hire 864 new police and army officers.

MP Solih, parliamentary group leader of the MDP (MDP), noted that the wage bill would shoot up 37 percent in 2013 compared to the previous year.

Echoing the concerns of the parliamentary group leader, MDP MP Eva Abdulla revealed that MVR 6 million (US$ 389105) was added to the budget of the Maldives National Defence Force (MNDF) following the controversial transfer of presidential power on February 7.

Former President Nasheed has alleged that he was forced to resign from office under “duress” in the wake of a police mutiny on February 7. Eva raised concerns that the police and army have hired 250 and 350 new staff respectively under the new government.

Consequently, both institutions found to have spent more than MVR 75 million (US$4.8 million) in addition to the approved budgets for 2012, she claimed.

Eva observed that the increase in the government’s wage bill of 37 percent was approximately MVR1.7 billion (US$110 million), which was also the amount allocated for harbour construction in the 2013 budget.

These funds should instead be spent for “harbours, education, sewerage and housing,” she argued.

Defence budget breakdown

Of the MVR930.9 million assigned for the military, MVR 805.4 million (US$52.2 million) is to be spent on military defence and MVR 125.5 million (US$8.1 million) on civil defence, according to the defence budget proposal last month.

Moreover, defence expenditure under the Public Sector Investment Projects (PSIP) include MVR 3.1 million (US$201,000) for the construction of a troops accommodation building in Gaaf Dhaal Thinadhoo and MVR 1.9 million (US$123,216) for a military barracks in Laamu Kadhdhoo.

Following the controversial transfer of presidential power in February, where sections of the police and military mutinied against the former government, an allowance of military personnel pending for more than two years was disbursed in a single payment by the Waheed administration.

Local media reported at the time that some officers had received over MVR6000 (US$390) in accrued allowances, although a total figure spent on the pay out, or how many officers received the allowances, was not stated.

MVR 1.1 billion has been budgeted to pay salaries and allowances for 7,108 personnel in the uniformed bodies.

The figure in the 2012 budget was MVR 999 million for 6,244 army and police officers.

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MPs to receive special protection from MNDF security force

Parliament members are to receive security from Maldives National Defence Force’s (MNDF) Special Protection Group (SPG) starting this year.

Spokesman for MNDF Colonel Abdul Raheem told local media yesterday (January 2) that a security arrangement with the SPG would be available to MPs in Male’ should they request it.

According to local media, the SPG is made up of 178 specially trained military personnel.

Until now, the SPG has been responsible for the security of the President, Vice President and other well-known figures political and legal figures in the country.

However, under Article 105 (b) of the constitution, state security services are to provide protection and safety to members of parliament.

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President withdraws nominee to Police Integrity Commission

President Dr Mohamed Waheed Hassan Manik has withdrawn the nomination of former Deputy Commissioner of Police Mohamed Rishwan to the Police Integrity Commission (PIC).

The nominee was sent to parliament after former chair of the PIC, Shahinda Ismail, resigned from the post in October citing the oversight body’s failure to hold the police accountable.

A letter informing the People’s Majlis of the president’s decision to withdraw the nomination was read out at the beginning of the sitting of parliament yesterday (December 31, 2012)

While reasons for the withdrawal were not specified in the letter, parliament’s secretary general said that the Independent Institutions Committee had requested the President to withdraw Rishwan’s name.

The committee noted that there were pending cases involving Rishwan. In October 2011, the PIC found that Rishwan had ordered subordinates to cut the hair of a number of youth in police custody while he was serving as deputy commissioner in July 2010.

Following its investigation, the PIC asked the Prosecutor General’s Office to press charges against the former deputy commissioner.

Rishwan retired from the police service in July 2011.

Special operation

In July 2010, police and the Maldives National Defense Force (MNDF) arrested almost 60 people, including children, in a joint special operation launched to curb the rise in gang violence.

Many arrested at the time claimed that their mobile phones and personal belongings were confiscated and were not returned when they were released.

Almost everyone arrested in the operation was released without any charges.

A number of those arrested claimed they were mistreated and abused in custody, including being forced to remove their clothes, blindfolded and beaten.

“I was arrested while I was on the way to Dharumavantha School to get a document,” one of those arrested told Minivan News at the time. “While I was waiting near the traffic lights on Sosun magu, two policemen and two MNDF officers told me to be freeze, came up behind me and handcuffed me and my friend.”

“I asked them on what charges they were arresting me, and where they were taking me, and they said they needed me to clarify some information.”

He said the officers pushed him into a police bus and blindfolded him with his hands tied with clips.

“They took me to a place and removed my silver ear-rings, my bracelets, necklace and sunglasses,” he claimed. “Then they took me to a place and removed the blindfold on my eye, and ordered me to remove my clothes. I refused, but I had no other choice so I did, and they told me to bend over. They harassed me verbally and physically.”

He claimed the officers involved were covering their faces.

“After checking me they blindfolded me again, and then took me to somewhere else. I asked them where they were taking me, they said that I should speak only when I am spoken to,” he said. “They pushed me into another room, where they trimmed my hair. When I tried to refuse, they hit and beat me.”

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Maldives to implement smoking ban from New Year’s Day

Individuals caught smoking in ‘tobacco-free zones’ such as cafes and public places risk a MVR 500 (US$32) fine under new regulations to be implemented from tomorrow (January 1, 2013).

The ‘Regulation of Determining Tobacco Free-Zones’ (Dhivehi) prohibits smoking inside cafes, tea shops, restaurants, public places where people usually gather in numbers, parks and all government buildings.

Public Health Programme Coordinator at the Centre for Community Health and Disease Control (CCHDC) Dr Fathmath Nazla Rafeeq told Minivan News today that notices were expected to be put up around Male’ to inform the public of tobacco-free zones in the city.

Dr Rafeeq added that designated “social areas” including the artificial beach area in Male’, are also set to become no-smoking areas.

“Male’ City Council (MCC) has made a list of these [public] areas where smoking is forbidden and we are expecting the council to announce these areas. It is expected that island councils are to do the same outside of Male’.  If a member of the public sees someone smoking in a tobacco-free zone, there will be a contact number on the no-smoking notices that they can notify the police with,” Rafeeq said.

The CCHDC estimates that roughly 44 percent of the total population of the Maldives uses tobacco – mainly through smoking.  Despite the high number of smokers in the country, Dr Rafeeq claimed that the majority of comments received by the CCHDC from the public were in favour of the regulation.

“We understand there will be people who do not like the new rules and there has been some concern raised over its implementation, but most of the people we have spoken to, which includes many cafe owners, have told us they are very positive about the regulation,” she added.  “Now might be a good time for people to make ‘quitting smoking’ a new year’s resolution.”

According to the 2009 Maldives Demography and Health Survey (MDHS), 42 percent of people in the between the ages of 20-24 are smokers in the country.  The same figures indicate that 20 percent of Maldivians aged 15-19 years also smoke.

In order to provide smokers with advice on how to quite smoking, Dr Rafeeq added that the CCHDC will be printing and distributing booklets on the subject in the new year.

“Smoking regulations have successfully been implemented in countries all over the world. If it can work in countries like India, where there is a large and diverse population, it can definitely work here,” she added.

Effect on business

Under the new regulation, cafes and restaurants will be able to provide designated smoking areas within their premises upon application of a licence from the Ministry of Health.

Businesses wishing to apply for the licence will have to pay MVR 1000 (US$64) for the privilege. The type of smoking area permitted will depend on the establishment, according to the CCHDC.

“The regulation states that establishments defined as an ‘open space’ can have have a designated open air area for smoking, whereas businesses defined as a ‘closed space’ will need to designate a separate smoking room,” Dr Rafeeq said.  “According to the regulation, a closed area is defined as a space connected by at least two walls and a roof. Unfortunately this might mean that some “closed space” businesses may require some modifications to their premises that they will have to pay for.”

The regulation further states that if the owner of a premises does not put up a sign board to inform customers that smoking is disallowed, the Ministry of Health has the authority to fine the venue MVR 500 for a first warning.  Additional fines of MVR 5000 (US$3200) would then be charged by the ministry in case of any subsequent failures to display the required signs.

Should the owner of an establishment allow smoking in such places without authority they can be fined MVR 1000 (US$64), according to the regulation.

When asked of the potential negative impact the new regulation could have on independent businesses, Dr Rafeeq said that research had suggested that cafes and restaurants could experience an “initial decline” in business following the implementation of the new rules.

“There has been some concern raised from local cafe and restaurant owners, but we have carried out thorough research on the matter by looking at how similar smoking restrictions have affected businesses in other countries,” she said.  “Our research shows that while businesses may suffer slightly to begin with, eventually businesses will see the benefits regulation brings.”

Maldives National Chamber of Commerce and Industries (MNCCI) Vice President Ishmael Asif was not responding to calls from Minivan News at the time of press.

Public opinion

Ahead of the implementation of the new regulation, smokers and non-smokers interviewed by Minivan News expressed mixed views on the restrictions.

“Smoking is dangerous not just to yourself, but to everyone around you. I’m glad the government is finally taking the lead to make a place this small safer health-wise,” a non-smoking 31-year-old civil servant explained.

Meanwhile, a 19-year-old male living in Male’, who did not wish to be named, said it was his individual freedom to smoke wherever he liked and that the new regulation will “force” smokers to break the law.

“[The regulation] is a very bad thing. It’s our freedom to smoke anywhere we like, and it’s others freedom to stay away from the smoke if they are getting disturbed,” he added.

“Regulations could be made allowing people to smoke in the public and non-smokers can move away from the smoke.”

While not objecting to allowing smoking at specific premises, a 38 year-old female accountant from Male’ told how she believed larger public areas should become ‘tobacco-free zones’.

“To be honest, I don’t mind people smoking on streets or cafes, but it’s difficult when people smoke in crowds such as at gatherings or music shows of sports events,” she said.

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Parliament breaks for two-month recess

Parliament broke for a two-month recess today following the final sitting of the third and last session of 2012.

According to the parliamentary rules of procedure, the first session of 2013 will begin during the first week of March.

Among the bills passed by parliament this year included the legislation on domestic violence, business profit tax, business registration, sole traders, freedom of assembly, political parties, parliamentary privileges, jails and parole and privatisation rules.

An amendment was also approved this month to allow sittings to be held during recess upon request by 26 MPs.

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President vetos state wage policy bill

President Dr Mohamed Waheed Hassan Manik has vetoed the bill on state wage policy passed by parliament on December 17.

According to the President’s Office, President Waheed “detailed the 10 main issues noted by the Attorney General regarding the bill” in a letter to the Speaker of the People’s Majlis.

Under article 91(a) of the constitution, the President has 15 days to either ratify or “return for reconsideration” any bill or amendment passed by parliament.

However, 91(b) states that “a majority of the total membership of the People’s Majlis” can override a presidential veto.

The wage policy legislation was passed with 46 votes in favour, two against and two absentions.

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MVR 15.3 billion state budget might not last until end of next year: Finance Minister

Finance Minister Abdulla Jihad has claimed that the MVR 15.3 billion (US$992 million) state budget approved by parliament this week might not last until the end of 2013 – requiring supplementary finance for the state.

Parliament reduced Jihad’s proposed budget of MVR 16.9 billion (US$1 billion) by more than MVR 1 billion (US$64.8) before passing it on Thursday (December 27).

Jihad told local media today that a supplementary budget may have to be implemented at some point next year should the funds allocated by parliament not be enough to cover expenses.

Dhivehi Rayyithunge Party (DRP) MP Dr Abdulla Mausoom today told Minivan News that concerns expressed by Jihad concerning the budget were “reasonable” given that the Finance Minister had originally requested a larger figure to see out state spending for the year.

“For the government to function properly I would not be surprised if they need the supplementary budget to be introduced. If it is, I should imagine it will be in the last quarter of 2013, after the election,” said Mausoom.

Earlier this month, Parliament’s Budget Review Committee had proposed MVR2.4billion (US$156 million) worth of cuts that some of its members claimed had been made had largely by reducing “unnecessary recurrent expenditures” within the budget.

However, the budget was eventually passed with MVR 1 billion (US$64.8) in cuts by 41 votes in favour, 28 against and no abstentions. The opposition Maldivian Democratic Party (MDP) MPs voted against the budget.

Jihad today told Sun Online that with services being provided by the government having doubled, it would become more difficult for the government to manage its budget.

“Because the budget is reduced, it will become difficult to manage expenses at a certain point. We think that a supplementary budget has to be introduced,” he was quoted as saying.

Due to the amendments in the budget made by the parliament, Jihad said the state had been forced to reduce spending. According to the Finance Minister, talks have already taken place with various offices to reduce their budgets.

“We don’t have any other choice. Due to the amendments brought into areas that were planned for further revenue generation, we have to reduce the expenses,” Jihad told Sun Online.

Jihad, State Finance Minister Abbas Adil Riza and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at time of press.

Budget amendments

The estimated MVR 15.3 million budget was passed by parliament with eight additional amendments at Thursday’s sitting.

Amendments voted through included the scrapping of plans to revise import duties on oil, fuel, diesel and staple foodstuffs, as well as any item with import duty presently at zero percent.

An amendment instructing the government to conduct performance audits of the Human Rights Commission and Police Integrity Commission and submit the findings to parliament was passed with 53 votes in favour, ten against and four abstentions.

Amendments proposed by MDP MP Ali Waheed to shift MVR 100 million (US$6.5 million) to be issued as fuel subsidies for fishermen and MVR 50 million (US$3.2 million) as agriculture subsidies from the Finance Ministry’s contingency budget was passed with 68 votes in favour.

A proposal by Dr Maussom to add MVR 10 million (US$648,508) to the budget to be provided as financial assistance to civil society organisations was passed with 57 votes in favour and three against.

Budget cuts

The Budget Review Committee approved cuts of MVR 1.6 billion (US$103.7 million) to Jihad’s proposed state budget of MVR 16.9 billion, however added MVR 389 million (US$25.2million) for infrastructure projects on islands.

On the measures proposed by the Finance Ministry to raise revenue, the committee approved revising import duties, raising the Tourism Goods and Service Tax (T-GST) from eight percent to 12 percent in July 2013, increasing airport service charge from US$18 to US$25, leasing 14 islands for resort development and imposing GST on telecom services.

The Finance Ministry had however proposed hiking T-GST from 8 to 15 percent in July 2013 and raising airport service charge or departure tax from US$18 to US$30.

Rightsizing the public sector to reduce deficit

Aidst proposals to balance state spending during 2013, recommendations to reduce the public sector wage were made by the Auditor General and submitted to parliament prior to the budget being passed.

Auditor General Niyaz Ibrahim observed that of the estimated MVR 12 billion (US$778 million) of recurrent expenditure, MVR 7 billion (US$453.9 million) would be spent on employees, including MVR 743 million (US$48 million) as pension payments.

Consequently, 59 percent of recurrent expenditure and 42 percent of the total budget would be spent on state employees.

“We note that the yearly increase in employees hired for state posts and jobs has been at a worrying level and that sound measures are needed,” the report (Dhivehi) stated. “It is unlikely that the budget deficit issue could be resolved without making big changes to the number of state employees as well as salaries and allowances to control state expenditure.”

Following the report, the The Budget Review Committee made cuts to overtime pay (50 percent), travel expenses (50 percent), purchases for office use (30 percent), office expenditure (35 percent), purchases for service provision (30 percent), training costs (30 percent), construction, maintenance and repair work (50 percent) and purchase of assets (35 percent).

The committee estimated that the cuts to recurrent expenditure would amount to MVR 1 billion (US$64.8 million) in savings.

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