ppm – Page 67 – Minivan News

MDP MP calls on Speaker to use armed forces to control parliament

Maldivian Democratic Party (MDP) MP Mohamed Mustafa has sent a text message to the Speaker of the parliament Abdulla Shahid calling on him to invoke his authority to use armed forces to control MPs that disrupt parliament meetings.

In the text, he tells Shahid that Progressive Party of Maldives (PPM) MPs were making plans to delay passing the amendment presented by the government to the Import/Export Act, which he said will decrease prices of goods in the market.

”This amendment presented by MDP MP Ibrahim Rasheed, after spilling blood in the parliament as you will recall, will decrease the prices of all types of food items and construction materials and other basic products that citizens need,” Mustafa explained in the text. ”The amendment will cut Rf 1700 million from import duties.”

Mustafa said the PPM MPs were concerned that if the amendment was passed it would “benefit the citizens and MDP will gain more support.”

”Many businessmen in the country are waiting for the day that this amendment gets passed and ratified by the President,” he said in the text he sent to Shahid. ”Due to these reasons I believe that you should invoke the authority to use armed forces to get disruptive MPs out of the parliament’ chamber.”

He said the citizens would not accept the work of the parliament coming to a halt due to a political game.

However, PPM Media Coordinator and MP Ahmed Nihan said that the PPM was not concerned that the amendment might get passed.

”PPM is concerned that the MDP MPs are demanding to hold the parliament meeting with Independent MP Ibrahim Abdul Hameed present, who was recently sentenced and his seat is supposed to be vacant,” Nihan said. ”What if later at some point the High Court and the Supreme Court upholds the lower court’s ruling and declares that his seat is vacant?If that happens, then another issue will be raised – how do we know if the votes he gives now are valid?”

Nihan said according to the constitution the seat should be vacant.

”Mustafa and Reeko Moosa Manik claim to know things the KGB, MOSSAD and CIA do not know. They say whatever comes to their mouth,” he said. ”There will be no one on earth who believes what they say.”

Nihan said that the reason the PPM did not support GST was that it would increase the prices of goods at the market.

In July this year four MPs of the opposition Dhivehi Rayyithunge Party’s (DRP) Z-faction, who are now MPs of PPM, were forcibly removed from the chamber after Deputy Speaker Ahmed Nazim invoked the Speaker’s authority to evict disruptive MPs by force from the parliament floor.

Z-DRP MPs Ahmed Mahlouf, Ilham Ahmed and Ali Arif were forcibly taken out of the chamber by MNDF officers while MP Ahmed Nihan left of his own accord.

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Police considering legality of 300 arrests in wake of Criminal Court’s release of Gassan

The Maldives Police Service is reviewing the legality of a number of arrests made under article 46 of the constitution, after the Criminal Court ruled last night that the arrest of Gassan Maumoon, son of former President Maumoon Abdul Gayoom, was unlawful.

Police Sub-Inspector Ahmed Shiyam explained that police were studying the cases to determine whether the arrests were lawful in light of the Criminal Court precedent, and considering releasing the suspects.

Chief Judge Abdulla Mohamed ruled last night that Gassan was arrested in violation of article 46 of the constitution and a Supreme Court precedent establishing criminal justice procedures.

Article 46 states, “No person shall be arrested or detained for an offence unless the arresting officer observes the offence being committed, or has reasonable and probable grounds or evidence to believe the person has committed an offence or is about to commit an offence, or under the authority of an arrest warrant issued by the court.”

Gassan’s lawyers argued at court that as the former President’s son was taken into custody without an arrest warrant after he was summoned for questioning, the circumstances of his arrest does not fit the exceptions provided for in the constitution where suspects could be arrested without a court order.

Sub-Inspector Shiyam however said there were “dangerous criminals we have arrested following the same procedure for committing offences such as child molestation, drugs and assault and battery.”

Police were currently reviewing the cases of “over 300” suspects to determine if their arrests were constitutional, he said.

Responding to the legal arguments from Gassan’s lawyers at the Criminal Court hearing yesterday, Police Superintendent Mohamed Jinah said if Gassan’s arrest was unlawful, “every one police have arrested and brought before the court [for extension of detention] was arrested in violation of the constitution.”

Jinah insisted that the arrest was lawful as police had reasonable grounds to suspect Gassan had committed a crime and were prepared to submit early evidence for an extension of detention.

Speaking to Minivan News today, Progressive Party of Maldives (PPM) Spokesperson MP Ahmed Mahlouf said the police statement was intended to “put the lid on Gassan’s arrest,” which he said had drawn public anger towards the government.

Mahlouf noted that only the Criminal Court, High Court or Supreme Court could order the release of suspects held in remand detention and “not the President’s Office or Home Ministry.”

“And the only way to change a Criminal Court ruling is to appeal it at the High Court,” he said, adding that the Supreme Court precedent in July 2010 established that only the Prosecutor General could file such appeals.

The PPM also filed three complaints at the Police Integrity Commission (PIC) regarding Thursday’s disturbances, Mahlouf said, which involved the police reaction to the MDP protest outside the Supreme Court and police failure to intercede when MDP activists damaged the property of the former President.

The party also filed a complaint about the summons chit sent to Gassan Maumoon, he continued, which he argued was “unlawful” as the former President’s son had exercised his right to remain silent when he was first summoned on Saturday.

The PIC had invited PPM members for a meeting regarding the complaints at 12:00pm tomorrow, he said, adding that the commission had formed three committees to investigate the matter.

Two activists of the ruling Maldivian Democratic Party (MDP) arrested for their involvement in disturbances outside the former President’s residence, Endherimaage, last Thursday were meanwhile released from custody today.

The Criminal Court yesterday approved a five-day extension of detention for MDP activist Ilham. Following his release last night, Ilham’s lawyer Abdulla Haseen said Gassan was arrested on suspicion of endangering a person’s life while Ilham was arrested on suspicion of damaging personal property during Thursday’s protest.

But, said Haseen, while Ilham was handcuffed and had his detention extended by the court, Gassan was treated very differently.

Supporters of the former PPM attacked Housing Ministry’s State Minister Dr Mohamed Shareef yesterday when he arrived from a conference in Bandos while PPM activists were demonstrating outside the police headquarters.

Sub-Inspector Shiyam said today that no arrests had been made yet in connection with the attack, footage of which was shown on Villa Television yesterday. The PPM supporters also stormed into the Home Ministry and met with senior officials to complain of Gassan’s arrest.

No-confidence

President’s Office Press Secretary Mohamed Zuhair meanwhile told Minivan News that in the wake of yesterday’s Criminal Court ruling, “all the arrests made in the past using the same procedure will be unlawful.”

Zuhair revealed that a team of senior police officers met with Prosecutor General (PG) Ahmed Muiz today to discuss the implication of last night’s precedent.

“He did not speak on the issue and rather questioned the police about some past incidents that he asked police to investigate and told the police to leave the PG Office immediately,” Zuhair said.

Following the actions of the PG, said Zuhair, the executive believed the government could no longer work with him.

“We will file a no-confidence motion against him [in parliament] very soon,” he said.

PG Muiz was unavailable for comment today.

PPM Spokesperson Mahlouf said the party would do “everything we can to save the PG” and such targeting of independent institutions the government was displeased with was “unacceptable.”

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PG asks police to provide details of protest response

The Prosecutor General’s (PG) office has asked the police to provide details of its response to the protest held by ruling Maldivian Democratic Party (MDP) outside the Supreme Court on Thursday, which later spread to the residence of the former President.

Prosecutor General Ahmed Muiz told Minivan he was unable to comment on the matter at this time.

However Police Sub-Inspector Ahmed Shiyam said this was the first time the PG had made such a request.

“They are requesting details of what happened,” Shiyam confirmed, but said the PG had not notified police of a potential course of action or what it was looking for.

Shiyam pointed out that demonstrations in certain areas, including courts and army gates, are prohibited by the Regulation on Assembly.

“Members of the Maldivian Democratic Party (MDP) and Dhivehi Rayithunge Party (DRP) have both gathered in these areas though, even though we have requested them not to. Some of them have gone to the army gates and the President’s gate as well, so occasionally we have to address the issue,” he said.

The police have been asked to provide the information before Wednesday this week.

On Thursday October 20 the MDP national council conducted an emergency meeting and approved a resolution to launch a protest against the judiciary, claiming judges were unduly influenced by the former President and his half-brother MP Abdulla Yameen.

The protesters gathered at the Supreme Court before marching towards the former President’s building Endherimaage, where violent clashes erupted between MDP activists and a few Gayoom supporters blocking the entrance to his residence.

Minivan News journalists at the scene also observed gravel, rocks, hot water and sharp metal raining down on protesters from the top floors or terrace of Endherimaage.

Several activists claimed they saw Gassan Maumoon, former President Gayoom’s son, throw stones and pour boiling hot water on the protesters. MDP activists meanwhile threw large stones at Endhirmaage and attempted to break down the door. Some windows of the house were smashed while a car parked outside was damaged.

A 17-year-old, identified as Hussein Hassan, was rushed to the Indira Gandhi Memorial Hospital (IGMH) with critical injuries after a block of wood apparently thrown from the building hit his head. IGMH later confirmed that the boy was conscious and his condition stable.

Police summoned Gassan Maumoon, son of the former President, for questioning on Saturday after a number of MDP members alleged they had seen him throw the block of wood from the balcony. Police subsequently arrested Gassan and took him to the prison island of Dhoonidhoo, and presented him at court this afternoon. The hearing is currently ongoing.

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Opposition parties condemn “dangerous” MDP protest against judiciary

Opposition parties have strongly condemned a protest launched by the ruling Maldivian Democratic Party (MDP) against the judiciary and Supreme Court last week, warning of “dangerous” consequences for the nation.

At a press conference today, Dhivehi Rayyithunge Party (DRP) Deputy Leader Ibrahim ‘Mavota’ Shareef argued that with its campaign against the judiciary the ruling party was risking the Maldives becoming “a failed state.”

“We are starting to see in our country scenes similar to what we saw in countries like Rwanda and Uganda which became failed states, plunged into unrest and bloodshed,” he said.

If judges were accused of misconduct or corruption, said Shareef, complaints could be filed at the Judicial Service Commission (JSC), the oversight body for the judiciary.

“Trying to undermine the eminence and dignity of the whole judiciary cannot be seen as efforts to reform judges and put the courts back on the right track,” he contended.

The courts, police and Prosecutor General must take “legal action” against those who undermine the judiciary’s honour and prestige, Shareef said.

The DRP was “very concerned” with fears that the “whole system of justice in this country could fail,” he added.

Following the MDP’s national council approving a resolution to protest against the judiciary, DRP put out a joint press statement with its coalition partner Dhivehi Qaumee Party (DQP) condemning the planned protest as an attempt to “influence the judiciary, intimidate judges and bring the courts into disrepute.”

In response to the MDP protest, the newly-formed Progressive Party of Maldives (PPM) led by former President Maumoon Abdul Gayoom organised a demonstration at artificial beach Friday night to protest the MDP’s “intimidation of judges” and vowed to defend the judiciary.

The religiously conservative Adhaalath Party meanwhile issued a press statement yesterday characterising the MDP protest as “a dangerous warning from the MDP to Maldivian citizens who are against its ideology.”

Adhaalath claimed that the “true purpose” of the MDP’s campaign was to “nullify Islamic shariah, introduce common law to the country and bring foreign judges into the Maldivian judiciary.”

Adhaalath also accused the ruling party of using “bribery, undue influence and intimidation” to threaten separation of powers and “bring all the powers of the state into the President’s fist.”

Echoing a criticism made by other opposition parties, Adhaalath criticised police for failing to protect the former President’s residence. “This shows that the police as an institution is shackled by political influences,” the party said.

“Seven idiots”

In its statement, the Adhaalath Party called on the Supreme Court to take action against the President’s advisor Ibrahim ‘Ibra’ Ismail for saying at an MDP rally Friday night that the judiciary should be freed from “seven idiots” on the apex court.

Ibra recently filed a defamation case against the Supreme Court after it reprimanded him for calling on the public to “rise up and sort out the judges”.

In response to Ibra’s calls, the Supreme Court and the JSC demanded authorities investigate the former Male’ MP and chairman of the Special Majlis’ constitution drafting committee, claiming that “making such statements in a free, democratic society under lawful governance goes against the principles of civilisation.”

The Supreme Court subsequently issued a writ of prohibition and took over the case against it from the Civil Court, as a result of which, said Ibra, “I now have to go before the Supreme Court and say to them, ‘You have defamed me, now please decide in my favour.'”

Speaking at MDP Haruge on Friday night, Presidential Commission Spokesperson Abdulla Haseen noted that judges were not independent under the former government and had to follow instructions from the President or the Justice Minister on how to issue verdicts.

A majority of judges on the bench today were appointed by the former President and lacked educational qualifications to enforce the new constitution, he argued.

Haseen said the Presidential Commission was reluctant to send cases for prosecution as a number of cases against opposition MPs remained stalled at the Criminal Court for over two years.

MDP MP Mohamed Nazim said the party was powerless to prevent the contentious reappointment of judges without a parliamentary majority.

In August 2010, the JSC reappointed 160 of the judges appointed by the former government, despite a quarter of the bench possessing criminal records and many others with only primary school level education.

The Supreme Court meanwhile sent the President a letter claiming it had ruled itself tenure for life.

“The only thing we were able to do was [include a provision in the Judges Act] stating that lower court judges must obtain a diploma in seven years,” Nazim said.

Nazim accused the courts of partisan behaviour when it summoned Independent MP Ismail Abdul Hameed to court 45 minutes before a crucial vote on the Goods and Services Tax (GST) legislation. Hameed was found guilty of abuse of authority in his position as former director at the Male’ municipality and sentenced to one year’s banishment.

In his remarks, former Attorney General Dr Ahmed Ali Sawad observed that political parties neglected the development and modernisation of the judiciary during the reform movement that led to the adoption of a liberal constitution and multi-party democracy.

Criticism and civic action was necessary because of the current state of the judiciary and lack of public confidence in the institution, Sawad said, adding that criminalising persons who criticise the judiciary was contrary to “principles of democracy.”

The public should be able to criticise and comment upon court verdicts, individual judges and perceived failings of the judiciary, he insisted.

In May this year, the JSC abolished its Complaints Committee citing “efficiency”, with complaints against judges subsequently forwarded for review by the legal section and Commission Chair Adam Mohamed, a Supreme Court Justice.

Last year the JSC received 143 complaints concerning the conduct of judges. By its own statistics none were tabled in the commission, and only five were ever replied to. Chair of the former complaints commission, Aishath Velezinee, was meanwhile stabbed in the street in January this year.

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Police summon Gassan Maumoon for questioning

Police summoned Gassan Maumoon, son of former President Maumoon Abdul Gayoom, for questioning today concerning disturbances outside his residence Endherimaage on Thursday during a protest by the ruling Maldivian Democratic Party (MDP).

A 17-year-old boy was struck on the head with a wooden plank allegedly thrown from Endherimaage while protesters led by MDP MPs, councillors and senior members were marching by the former President’s residence.

Police Sub-Inspector Ahmed Shiyam told Minivan News today that Gassan was among a number of people police were questioning regarding Thursday’s events.

Police were investigating complaints of damage caused to the former President’s property as well as the injury caused to the 17-year-old, Shiyam explained.

Police had received information that suggests the wooden plank that injured the 17-year-old was hurled or dropped from the building, he said.

However, said Shiyam, police could not divulge further details at this stage of the investigation.

Minivan News journalists at the scene on Thursday observed gravel, stones, hot water and sharp metals raining down on the protesters from Endherimaage. A number of reporters at the scene were also hit by the pouring gravel.

Several MDP activists claimed that the wooden plank was hurled from the second floor balcony of Endherimaage. After the victim was rushed to hospital by MPs on the front line of the march, MDP activists clashed with Gayoom supporters blocking the entrance to Endherimaage and threw stones at the building, smashing a window on the first floor.

MP Ali Waheed, who defected to the ruling party in May, told state broadcaster MNBC that the boy was behind MP Alhan Fahmy when the object struck him straight on the head.

The 17-year-old, identified as Hussein Hassan, was rushed to the Indira Gandhi Memorial Hospital (IGMH) by the MPs on a passing pick-up, he said.

Speaking to MNBC One outside IGMH, Waheed displayed blood stains on his shirt resulting from the head injury caused by the impact.

Other eyewitnesses who spoke to the state broadcaster corroborated the MPs’ account of the incident.

The brother of the injured boy told Minivan News Thursday night that according to doctors “his skull was damaged and parts of the skull have gone inside his brain.”

The boy underwent surgery to remove wood particles from his brain.

IGMH media coordinator confirmed today that the boy was conscious and his “condition is now stable.”

The spokesperson refuted media reports that the boy’s left side was paralyzed. “His left side is very weakened, but that is not paralysis,” she explained.

A family member outside the ICU told Minivan News that the family was certain the object that struck Hussein Hassan “came from above.”

“Everyone who was there said that that was how it happened,” he said.

Right to remain silent

Gassan Maumoon meanwhile told reporters outside police headquarters this afternoon that he exercised the right to remain silent after “it appeared from some of their questions that they were accusing me.”

Gassan was accompanied by the former President’s lawyer Mohamed Waheed Ibrahim ‘Wadde’ and former Attorney General Aishath Azima Shukoor.

The former President’s newly-formed Progressive Party of Maldives (PPM) held a protest at artificial beach last night in response to the ruling party’s “intimidation of judges.”

Hundreds of supporters participated in the protest, where they called for the resignation of Chief of Defence Forces Moosa Jaleel and Police Commissioner Ahmed Faseeh for failing to provide security to the former President.

Asked by MP Ilham Ahmed if they should march to the presidential residence Muleeage, the protesters unanimously supported the notion.

PPM Interim Council Member Umar Naseer – former deputy leader of the Dhivehi Rayyithunge Party – however announced around 10:45pm that the protest march was to be cancelled after police sent a summons to Gassan.

Meanwhile, after text messages were circulated on Friday claiming the PPM was preparing to attack and “smash Haruge [MDP camp],” a large number of ruling party supporters gathered at Haruge for a hastily arranged rally at 9pm last night.

Speakers at the rally, including Presidential Commission Spokesperson Abdulla Haseen, President’s Advisor Ibrahim ‘Ibra’ Ismail, MP Ahmed Easa and former Attorney General Dr Ahmed Ali Sawad, severely criticised the judiciary for lack of competence and integrity.

An egg was thrown into Haruge during Ibra’s speech.

In an interview with private broadcaster DhiTV shortly after Thursday’s protest turned violent, Gayoom claimed that damage was caused to his residence and adjoining houses in “a terrorist attack” orchestrated by the government.

“They came with their activists and attacked my home,” Gayoom said. “They attacked nearby houses as well.”

Moosa Jaleel and Ahmed Faseeh should “personally bear responsibility” for the damage to his residence because riot police were not present to intercede, the PPM figurehead said.

Appearing on private broadcaster VTV later that night, Gayoom said he would file criminal complaints with police, the Prosecutor General and pursue civil action against the protesters.

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PPM files registration forms

Progressive Party of Maldives (PPM), headed by former President Maumoon Abdul Gayoom, submitted registration forms to the Elections Commission today.

PPM interim council member Aishath Azima Shakoor told Haveeru that the commission would register the party within a week’s time.

The commission has a one-month period to formally register the party.

PPM held its registration meeting on Saturday at which it elected former President Gayoom as its interim President, rejecting no other applicants for the position.

The party also approved its constitution, manifesto, and palm-crescent logo with the official party color, magenta.

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DRP accuses PPM of using cash incentives and development funding to poach members

Spokesperson and Deputy Leader of the Dhivehi Rayithunge Party (DRP), Ibrahim ‘Mavota’ Shareef, has alleged that the breakaway opposition party of former President Maumoon Abdul Gayoom has been offering cash incentives and development funds to island groups, in a bid to persuade them to join the Progressive Party of the Maldives (PPM).

“There are many social clubs in the Maldives with the purposes of developing islands. Many have been offered cash incentives and funds for development activities if members join the party. Even individual members have been offered,” said Shareef, who has made similar claims to local media this week.

PPM Spokesperson Ahmed Mahlouf was not responding to refute the allegations at time of press.

“We’re not about to file a court case, but this is happening on a wide scale. If the clubs involved need funding, members are inclined to accept. We couldn’t afford to lodge so many cases,” Shareef said, when asked if the party had any evidence to back the claims.

Prior to the PPM’s inaugural convention on October 15, the EC verified and approved the membership forms of 3,019 party members.

Several thousand people attended the convention at Dharubaaruge, including at least one prominent ruling Maldivian Democratic Party (MDP) activist.

The 971 delegates present elected Gayoom interim leader unopposed, while his half-brother MP Abdulla Yameen was elected acting parliamentary group leader.

Yameen’s party, the People’s Alliance (PA), recently split from the main opposition DRP which remains under leadership of Ahmed Thasmeen Ali. The relationship between the PPM, formerly known as the Z-DRP faction of the opposition, and the DRP leadership remains strained.

Shareef expressed surprise at the large numbers of people who attended the convention, and acknowledged that support for Gayoom’s party had the potential to affect the DRP’s membership base.

“This was a 30 year regime and we have to accept that there are pockets of support everywhere. During Gayoom’s time he did a lot a lot of work and has many supporters, and we have to recognise this,” Shareef said, but questioned the PPM’s “ability to work together as a party.”

“I don’t see any future for PPM. They are saying that 99 percent of [DRP members] are joining the party but we don’t see any such thing happening. At the same time there are a lot of people who have remained steadfast and believe the DRP has a future, and that the leadership has the experience and qualifications to run the country,” Shareef said.

The breakaway faction consisted of Gayoom’s immediate family and “former DRP members who failed in elections while they were in the DRP,” Shareef said. “PPM is a family enterprise, promoting a private hidden agenda in the name of the national interest.”

Gayoom had capitalised on growing dissatisfaction with the government, Shareef contended.

“At the grassroots level, people are very unhappy, and the swing voters have been moving away from the government. This is why Gayoom chose now to form his new party. In 2008-2009, and even midway through 2010, there was no political space.”

The division was as much ideological as it was acrimonious, Shareef explained.

“Many people do not believe the DRP is able to hold the government accountable, because we do not create violence or street protests. Many people think the opposition should make the country ungovernable, even the media and opinion leaders. I’m not sure if they understand it themselves, but it makes it very dangerous, as it risks the whole society falling and becoming a failed state,” Shareef said.

“We believe we are a responsible opposition and we oppose the government’s polices where they are wrong, and support them when they are right. There is nothing personal and we are not out for revenge, and we do not see the ruling party as personal enemies.

“Gayoom’s family and his inner circle view them as personal enemies and are out for revenge, using chaos and anarchy to try and stop the government from doing any work. We are clear we want a stable government, and to change it through elections, but the immediate family of Gayoom has a different idea. They want street action, so that every day the government is under pressure, while we voted for a presidential system of government that gives the President a free hand to run the country [while he is elected].”

Beyond the poaching of its member base, the DRP faced new financial challenges with the departure of the former President, Shareef said.

“Finance is a great challenge. The current DRP leadership is not as rich as PPM’s top leadership. It presents a challenge, but I like to believe money is not everything.”

Road to 2013

Shareef was a founding member of the MDP, Deputy Parliamentary Group Leader in Nasheed’s shadow cabinet, then later a deputy to Gayoom, and now a deputy to Thasmeen.

With the split in the opposition, and the collapse of all the MDP’s coalition agreements, Shareef predicted that “given current trends” the 2013 presidential election would effectively be a replay of the 2008 election in which Nasheed won power in a run-off election against the incumbent Gayoom, due to the support of coalition partners.

The MDP would need to gain 51 percent of the vote in the first round to secure a clean win, while “none of the opposition parties will secure enough votes to reach the 51 percent mark,” Shareef said. “Meanwhile the MDP has chased away all its coalition partners, and they cannot now turn around and say ‘We can work together’, because nobody will believe them.”

Faced with a run-off, the disparate opposition groups would temporarily unify over the common ground of ousting the MDP, Shareef predicted, giving power to the largest opposition party.

“Look at the last three elections. In the first round of the 2008 Presidential election Gayoom got 40 percent, while the rest of the then opposition got 60 percent. In the second round the opposition totaled 54 percent. The MDP lost ground in the parliamentary elections, and the majority of the islands voted for the DRP in the local council elections,” he claimed.

“The incumbent government has the resources of the state to get votes, and can get at least 20-30 percent just by being in power. At present trends, the 2013 will be a replay of 2008, and as things stand now, whoever is in opposition will go to the second round. But we need a leader who is not out to take revenge.”

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PPM to officially create party this month

Progressive Party of the Maldives (PPM) will hold an official party creation meeting on October 15. The party is headed by former president Maumoon Abdul Gayoom.

PPM interim spokesperson MP Ahmed Mahloof told newspaper Haveeru that the meeting’s agenda includes electing an interim governing body, endorsing the party logo, flag and manifesto, and finalising the party’s charter.

The Maldives’ political parties regulation requires 300 members at a registration meeting. On September 20, PPM applied for registration with 3,600 signatures.

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Government plans to sell Dhiraagu shares to foreigners, claims PPM

The government’s decision to offer 15 percent of its shareholdings in local telecom giant Dhiraagu for sale to the general public is intended to benefit foreign parties, the incipient Progressive Party of Maldives (PPM) alleged today.

At a press conference this afternoon, PPM Spokesperson MP Ahmed Mahlouf claimed that the party has learned through “inside information” that the government planned to sell a large portion of the shares up for sale through the Initial Public Offering (IPO) to British company Cable & Wireless, which currently owns the majority stake of Dhiraagu.

The government sold seven percent of its shareholding in Dhiraagu to Cable & Wireless in 2009 for US$40 million.

“While claiming to sell 15 percent to Maldivian citizens what they’re doing now is selling shares to Cable & Wireless again,” Mahlouf said. “We received inside information long ago that a large part of that 15 percent is going to be bought by Cable & Wireless.”

The MP for Galolhu South expressed concern with the shares being open for purchase by both foreigners and international companies.

He added that the Maldivian people would have to face “the bitter consequences” of the Maldivian Democratic Party (MDP) government “selling off state assets built up by the former government through a lot of hard work.”

Economic Development Minister Mahmoud Razi however dismissed the allegations as completely unfounded.

“Why would we register with the CMDA (capital market development authority) and go for an international public offering if we wanted to do that?” he asked. “We’ve already sold them the majority stake.”

If the government wished to sell shares to C&W, he added, there would be “no need of a charade.”

In a press release issued after a ceremony to launch the IPO this week, Dhiraagu stated that 11,400,000 ordinary shares having a nominal value of Rf2.50 each at the offer price of Rf80 per share would be made available to the public.

The subscription period will open on October 25 and close on November 30. Formed in 1988 as a joint venture between the government and Cable & Wireless, Dhiraagu has since invested US$155 million in developing its network and operations within the Maldives. The company employs more than 600 people, 99 per cent of whom are Maldivians.

Speaking at the IPO launching ceremony Tuesday night after releasing the Dhiraagu prospectus, President Mohamed Nasheed said the government’s aim was to divest its remaining 33 percent to the public at a later date.

The MDP government’s policy was to ensure that the government would no longer be involved in business, said Nasheed, reiterating the government’s commitment to free market principles and economic liberalisation.

“The government is very much certain that profits increase manifold when the government is not involved [in doing business],” he said. “This became most clear when the airport was privatised. Did you know that before [Indian infrastructure giant] GMR took over [management of] the airport, in the year that the government received the highest amount from the airport company to the state budget, it was Rf100 million (US$6.4 million). Usually it is Rf75 million (US$4.8 million). This year the government will receive Rf600 million (US$39 million).”

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