Tag: president abdulla yameen

MDP to protest against “dangerous” SEZ bill

The Maldivian Democratic Party (MDP) has declared its intention to protest against the governments flagship special economic zone (SEZ) legislation, warning that passing the bill would pose serious dangers to the Maldives.

“We note that the bill on special economic zones in its current form would allow the government to conduct transactions broadly with no transparency and no opportunity for oversight, as a result of which the possibility of losing the country’s independence and sovereignty would be high,” read a press release from the main opposition party yesterday.

The government, however, maintains that SEZs with relaxed regulations and tax incentives were necessary both for foreign investors to choose the Maldives over other developing nations and to launch ‘mega projects.’

The MDP noted that its lawmakers along with Jumhooree Party (JP) MPs boycotted the economic affairs committee yesterday – which was in the process of reviewing the draft legislation – in protest of procedural violations by the committee’s chair and “dictatorial” actions of pro-government MPs.

MDP and JP MPs also objected to the economic committee allegedly disregarding recommendations and commentary on the bill sent by various state institutions.

Reflecting its combined 48 seats in the 85-member house, the ruling Progressive Party of Maldives and coalition partner Maldives Development Alliance have voting majorities on key parliamentary oversight committees.

After walking out of a committee meeting yesterday, JP Leader Gasim Ibrahim warned that an SEZ law would facilitate massive corruption, threaten independence, and authorise a board formed by the president “to sell off the entire country in the name of economic zones.”

Incentives

The MDP press release warned that an SEZ law would allow the government to bypass local councils, declare any region an economic zone, and lease land for any period.

The law would undermine the Decentralisation Act and restrict the authority granted by the constitution for local councils to “raise funds,” “own property and incur liabilities,” the party contended.

Geographic areas declared an SEZ would be removed from the jurisdiction of local councils.

However, Tourism Minister Ahmed Adeeb told Minivan News in June that an SEZ law would encourage further development of tourism outside of the central atolls or the ‘sea plane zone’ – referring to the proximity from Malé’s international airport – and assured that councils would be consulted.

“I believe that by doing the SEZ Act, we will bring the investment to these regions and this is the real decentralisation of investments,” he said.

The MDP also expressed concern with the tax breaks offered to investors in SEZs, which it argued would limit opportunities for small and medium-sized enterprises.

Concessions in the current draft include tax exemptions and relaxed regulations for employing foreign labour.

Investors would be exempted from paying either import duties for capital goods or business profit tax, goods and services tax and withholding tax for a period of 10 years.

Regulations on foreign workers would be relaxed while companies with foreign shareholders would be allowed to purchase land without paying privatisation fees or sales tax.

Article 74 meanwhile allows up to 40 percent of any zone to be tourist-related development with tax and duty exemptions.

Moreover, private airports and seaports in the zones would be outside the jurisdiction of the Maldives Customs Service.

The enactment of an SEZ law would pave the way for “dangerous and serious crimes,” the MDP press statement continued, such as drug trafficking, money laundering, and human trafficking.

“Castles in the air”

Former President Mohamed Nasheed had dubbed the legislation the ‘Artur Brothers bill’, referring to an infamous pair of Armenians linked with money laundering and drug trafficking who made headlines last year after they were photographed with cabinet ministers.

Nasheed has also dismissed SEZs and the touted mega projects as “castles in the air.”

Referring to the opposition to his administration’s public-private partnership projects on religious and nationalistic grounds – with opposition parties accusing the government of “selling off state assets” – in a speech at an MDP event on Tuesday night (August 12), Nasheed argued that the current administration’s economic policies were far worse judging by their terms.

“There could be no bigger deception of the Maldivian people,” he said.

Nasheed also contended that Maldivian law would not be enforced in the SEZs, claiming that gambling would be allowed in the zones.

President Abdulla Yameen meanwhile insisted in a speech on Monday night (August 11) that foreign investments in the zones posed no threat to Islam or Maldivian sovereignty, assuring that the businesses would be fully subject to Maldivian law.

The government’s objective was “economic transformation” through diversification – to mitigate the reliance on the tourism industry – and shifting the economy from its “present production frontier” to a higher level, Yameen explained.

Yameen had declared in April that the SEZ bill would become “a landmark law” that would strengthen the country’s foreign investment regime.

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New ACC members nominated, PIC members appointed

President Abdulla Yameen has forwarded 5 names to the People’s Majlis for membership of the Anti Corruption Commission.

Current members Hassan Luthfee and Muaviz Rasheed have been renominated along with Aminath Minna, Yazumeed Mohamed, and Sofwath Mohamed. The ACC’s inaugural five-year term is set to end this year.

The president has also appointed three members to the Police Integrity Commission with Ali Nadheem, Fathimath Sareera Ali Shareef, and Mohamed Faruhad receiving letters of appointment at the President’s Office yesterday.

The new members for the five-person commission had been approved by the Majlis earlier this week, while a fourth nominee was rejected.

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Maldives to begin oil exploration with assistance of research vessel

A research vessel with 25 scientists on board has arrived in the Maldives to conduct oil and gas exploration research.

The German research vessel ‘Sonne‘ which came to the Maldives for different research purposes has agreed to do the oil exploration research for free, the government has said.

The scientists are expected to begin research within two days.

Speaking to media after his visit to the vessel today, Minister of Fisheries and Agriculture Dr Mohamed Shainee said the information obtained will be shared with the Maldives in the first quarter of 2015, adding that it would not be shared with any third party.

A local expert and a member of the Maldives National Defence Force will be present with the team during the survey, he said.

According to Dr Shainee it will be carried out in one of the three main areas in the country with properties indicating the presence of oil and gas – located 100 miles east of the region between Laamu and Thaa atoll.

The three dimensional seismic survey, carried out by sending sonic waves into the sea, will identify the presence of oil and gas in the region without any drilling, the minister said. It will be followed by further exploration involving drilling to confirm any positive findings, he explained.

The survey team’s own research will be about the changes in Maldives’ seas due to global warming, Haveeru has reported.

Speaking to the newspaper, the lead researcher from the University of Hamburg said a similar survey was done by the same vessel in 2007, but this new, more detailed one will complement it.

Oil exploration was an election pledge of President Abdulla Yameen and the government earlier this year said a foreign investor had already expressed interest in oil exploration.

The Maldives National Oil Company Ltd (MNOC), a subsidiary of the State Trading Organization (STO), said in February that they will soon begin advertising the country as a destination for oil exploration.

“We have contacted a Norwegian company and a German company to help us better understand the findings of the study. Based on this report, we’re hopeful of advertising the Maldives as a new destination of oil exploration,” said MNOC Managing Director Ahmed Muneez at the time.

French oil company Elf Aquitaine explored for oil and gas between 1968 and 1978, drilling three different sites. According to the MNOC, it was found at the time that the quantity available from the drilled site was insignificant and therefore uneconomical for production.

In 1991, Royal Dutch Shell initiated a second attempt at drilling an exploration well in the inner sea of the Ari Atoll.

Local environmental NGO Blue Peace has said oil drilling in the Maldives could cause environmental issues depending on the location of drilling , arguing that it “cannot coexist” with the country’s dominant tourism industry.

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GMR failed to conduct political risk assessment prior to investing, says President Yameen

President Abdulla Yameen has warned foreign companies of the importance of political risk assessment before investing in countries such as the Maldives.

“At a time when you had a very heightened political environment in Maldives, at a time when the parliament was polarised, it was a pity that political risk assessment was not undertaken by GMR,” said the president.

Yameen’s comments came during the scholarship awards ceremony of Trans Maldivian Airways’ (TMA) youth pilot training programme – a company he cited as an example of successful foreign investment after its takeover by the Blackstone Group last year.

“Whenever we hear about GMR, the issue that comes right to the limelight is their inability to assess political risk at the time.”

GMR’s landmark airport development deal – signed during the prematurely ended term of President Mohamed Nasheed – was itself abruptly ended by the succeeding administration in December 2012.

The concession agreement to develop Ibrahim Nasir International Airport was signed in June 2010, the same month in which Nasheed’s entire cabinet resigned in protest against what it considered to be the obstructionist policies of then-opposition parties.

Legal action initiated by the deal’s opponents eventually invalidated the deal’s funding arrangements, leading the government of Dr Mohamed Waheed to justify the annulment using the legal principle of ‘frustration’ – in which unforeseen events render contractual obligations impossible.

In June this year, a Singapore court of arbitration ruled the deal had been  “valid and binding”, finding the Government of Maldives liable for damages still to be determined by the court.

The Maldivian Democratic Party had subsequently called for the reinstatement of the GMR deal, threatening to dissolve any future deals to redevelop the country’s major international airport.

Foreign diversification

During yesterday’s ceremony, President Yameen continued to appeal to foreign investors, expressing the country’s desire to diversify from the dominant tourism industry.

“We are not just about the sun, the sand, the sea – Maldives is more subtle. That is the message we are trying to give to the world now,” he told those in attendance at Traders Hotel.

The government’s drive for new investment has focused upon five ‘mega-projects’ as well as an improved climate for new investors, facilitated by controversial plans to establish special economic zones via legislation recently introduced to the People’s Majlis.

Tracing the journey of foreign investment in the Maldives alongside his own public career, Yameen noted that foreign investments were seen as “punitive” in the mid 1980s, with local laws designed to prevent them.

“My task was to encourage political leaders and the president that foreign investment was not such a bad thing. It is only through foreign investment that small countries such as Maldives could forge ahead.”

Yameen – who spent two decades with the Ministry of Trade and Industries – went on to describe frequently “lonely” and “solitary” overseas discussions on potential investment in the Maldives.

Indeed, the president described the difficulty he had in persuading Blackstone’s risk management personnel to invest in the country. The deal saw the US private equity firm gain a monopoly in the vital seaplane sector as rival firm Maldivian Air Taxi was bought simultaneously.

Congratulating those awarded the TMA training scholarships yesterday, Yameen pointed to the country’s “motivated”, “highly intelligent” and “easily trainable” youth as a key resource, urging the seaplane operator to increase the number of Maldivian staff members.

He also expressed his gratitude to the company for providing assistance in his “endeavour which is to bring prosperity throught the avenue of finding ways for the youth”.

The government recently revealed that a number of companies had expressed interest in the government’s Hulhumalé youth city project – which will reportedly include youth-specific housing, international class sports facilities, a theme park, and a yacht marina, catering to a population of 50,000.

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President has reduced home minister’s powers, claims Haveeru

President Abdulla Yameen has reduced the powers of Home Minister, local news agency Haveeru has claimed.

Citing an unnamed senior government official, Haveeru said Yameen’s decision comes in response to Home Minister Umar Naseer’s order on low ranking police officers to investigate Tourism Minister Ahmed Adeeb for alleged unlawful activity.

In a separate report, Haveeru has also claimed Naseer in a January 26 confidential letter requested the Maldives National Defense Forces (MNDF) to provide an armed military bodyguard or a pistol to defend himself.

Naseer declined to comment on both allegations today. Meanwhile, President’s Office Spokesperson Ibrahim Muaz Ali also refused to comment on the issue and said all cabinet ministers are authorized with the necessary powers to carry out their responsibilities.

Speaking to Haveeru earlier, Muaz denied the reduction of the Home Minister’s powers and  said there have been no changes in the Home Minister’s mandate or powers.

Powers

According to Haveeru, Yameen limited the Home Minister’s powers because Naseer had given direct orders to low ranking police officers without consulting the president. The investigation order came in the second week of July after the commissioner of police delayed investigations into the alleged wrongdoing, Haveeru reported.

Adeeb co-chairs the cabinet’s economic council along with Yameen and is the deputy leader of Yameen’s Progressive Party of Maldives (PPM).

Article 16 of the Police Act allows the home minister to command individual police officers of any rank, and gives him powers equal to that of top level police officials. However, the same article also states the president may limit these powers.

Referring to a police mutiny which unseated former President Mohamed Nasheed in February 2012, Haveeru’s source claimed Yameen may have reduced the home minister’s powers to prevent another ‘February 7’. Police officers had demanded Nasheed’s resignation claiming the former president had issued unlawful orders.

Naseer had also allegedly ordered a probe into the controversial arrest and expulsion of Russian national Roman Valerevich Seleznyov earlier this month, Haveeru said.

Speaking on state broadcaster Television Maldives last week, Naseer had said the Maldivian government would have “acted differently” if the Home Ministry had been aware that an alleged hacker expelled on July 5 was the son of a Russian lawmaker.

Haveeru also claims to have received a copy of a confidential letter Naseer had sent to Minister of Defence Mohamed Nazim on January 26. In the letter, Naseer allegedly wrote, “Maldives Police Service intelligence has received information of a plot to attack me. In this regard, if I was attacked with a sword, my securities can not control that.”

But the MNDF have refused to comply with the minister’s request and security for Naseer continues to be provided by an unarmed police officer and a personal bodyguard, Haveeru reported.

Tension with Yameen

Naseer has previously accused Yameen of illicit connections with local gangs and drug cartels. Naseer’s comments came after Yameen beat him in the PPM’s presidential primaries in 2013. Naseer has also suggested Yameen’s involvement in the murder of PPM MP and Islamic scholar Dr Afrasheem Ali.

Naseer was then expelled from PPM and went on to back Jumhooree Party (JP) candidate Gasim Ibrahim. The JP placed third and endorsed Yameen in the second round of polls on the condition that the two parties form a coalition government.

After appointed as home minister, Naseer has said his allegations against Yameen were untrue and were mere ‘political rhetoric.’

The coalition was dissolved in May on a dispute over the parliamentary speakership. Two of the four JP ministers have signed on to PPM, and the third was dismissed. Naseer is the only remaining minister on a JP slot.

He is being prosecuted for ‘disobedience to orders’ regarding a January 2012 incident in which he called on anti-government protesters to storm the military headquarters with 50 ladders.

The Prosecutor General’s (PG) Office is charging Naseer with violating Article 8 (a) of the General Laws Act of 1968, which prohibits speech or writing contravening Islamic tenets.

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President Yameen accuses opposition parties of inciting unrest, sabotaging economy

President Abdulla Yameen has accused opposition parties of attempting to foment unrest and sabotage the economy in his address to the nation on the occasion of the 49th Independence Day.

Speaking after a flag-hoisting ceremony at Republic Square last night, Yameen said the government would not allow the country to be plunged back into turmoil while it was enjoying a period of calm and stability.

“Opposition political parties are deliberately trying to disrupt stability by creating a spirit of unrest in society,” he said, adding that incitement of such fervour in the past had repeatedly threatened the country’s independence.

“I do not believe that failing to achieve the love and consent of the public should be a reason to plunge the nation into a deep pit of hatred and strife.”

Opposition parties were pushing for a tourism boycott and attempting to convince fish importers to cease purchasing Maldivian fish in a “deliberate attempt to create distress and anxiety,” Yameen alleged.

He added that “attempts to weaken the country economically” was tantamount to threatening independence.

Yameen also condemned alleged “efforts to create doubts” in the minds of foreign buyers of Maldivian fish and an alleged campaign to boycott tourism.

The current administration would “defeat all efforts to impoverish Maldivian citizens, build a peaceful generation of youth, and go forward in securing prosperity for Maldivians,” he said.

Speaking at a press conference on July 16, Fisheries Minister Dr Mohamed Shainee had accused the Maldivian Democratic Party of attempting to “destroy” the fisheries industry after the main opposition party issued a statement condemning President Yameen’s fisheries policy.

Shainee dismissed the party’s contention that the industry was stagnating and appealed against spreading “false information” to international media, suggesting that the fisheries industry was “too fragile” to be made the subject of adversarial politics.

Meanwhile, Tourism Minister Ahmed Adeeb told Minivan News last month that the government’s “total focus” was on the economy.

“We are not running behind our political opponents and we have stopped political rhetoric now – we have stopped responding to that but we are responding to economic issues,” he said.

Development projects

President Yameen went on to outline his administration’s development plans, referring to the special economic zone (SEZ) legislation currently before parliament as integral to the government’s economic policy.

An SEZ law would ensure investor confidence, increase foreign direct investment, create job opportunities, and mitigate the dependence on the tourism industry, Yameen explained.

Once the SEZ bill is enacted into law, he continued, one of the first projects to be undertaken would be the Ihavandhippolhu Integrated Development Project.

The ‘iHavan’ project would become “the main gateway” for development and prosperity in the northernmost atolls.

Plans for Addu City includes development of both the Gan international airport and the Hithadhoo regional harbour to spur economic activity, Yameen said.

A ‘mega project’ for development of the southernmost airport was in the pipeline while the government has decided to transfer the regional harbour under the Maldives Ports Limited (MPL) for modernisation, he revealed.

MPL would also take over the regional port in the island of Kulhudhufushi in Haa Dhaal atoll, he added.

The formulation of a master plan for the development of the Ibrahim Nasir International Airport (INIA) was meanwhile ongoing in collaboration with Singapore’s Changi airport, Yameen noted.

The changes envisioned in the master plan include a new terminal and a new runway, he said.

Moreover, a contract has been awarded for dredging and reclamation of Hulhumalé for development of a ‘youth city‘ in the artificial island as pledged during last year’s presidential election, Yameen said.

He stressed that the government would ensure that development projects would not threaten the country’s independence and sovereignty following criticism of the SEZ bill.

Yameen also revealed that criminal records have been cleared for 3,588 youth since he took office in November, adding that he has asked the newly appointed Prosecutor General Muhthaz Muhsin to introduce a new procedure to not prosecute first time offenders under an agreement signed with offenders.

Last night’s ceremony was meanwhile attended by former presidents Maumoon Abdul Gayoom and Dr Mohamed Waheed as well as senior statesmen – Abdul Sattar Moosa Didi and Ibrahim Rasheed – who worked with former President Ibrahim Nasir to secure independence from the British in 1965.

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PPM MPs to vote Muhthaz for PG in defiance of party leader’s appeal

Progressive Party of Maldives (PPM) MPs have decided to vote for Criminal Court Judge Muhthaz Muhsin as the new Prosecutor General (PG) despite the party’s leader, former President Maumoon Abdul Gayoom, urging ruling party MPs to vote for his nephew Maumoon Hameed.

Majority Leader MP Ahmed Nihan told Minivan News today that 33 out of 38 MPs present at a parliamentary group meeting this afternoon voted in favour of Muhthaz.

Nihan – parliamentary group leader of the PPM – also confirmed that a three-line whip has been issued for all 43 PPM MPs to vote for Muhthaz’s approval to the vacant PG post.

The decision comes after PPM Leader Gayoom sent a letter yesterday – subsequently leaked on social media – appealing for the party’s MPs to vote for Maumoon Hameed, son of former Atolls Minister Abdulla Hameed.

Gayoom noted that President Abdulla Yameen had declared at a PPM rally that he wished to appoint Maumoon Hameed to the post and that the president had “sent a message through the PPM’s official viber group” requesting the party’s MPs to vote for the lawyer.

Vetting process

Following a vetting process, parliament’s independent institutions oversight committee had rejected both of President Yameen’s nominees last week.

While a minimum score of 75 marks was required for the committee to recommend a nominee for approval, Hameed received 33 percent and Muhthaz received 67 percent.

The committee’s evaluation report has been tabled in the agenda for debate at Monday’s sitting of parliament, after which the nominees will be put to a vote.

Meanwhile, Gayoom sent a letter to MP Nihan – also leaked on social media (page one and two) – last week demanding an explanation of the PPM-majority committee’s decision.

The oversight committee – chaired by PPM MP Ali Saleem – is comprised of five PPM members, one MP from coalition partner Maldivian Development Alliance (MDA), three opposition Maldivian Democratic Party (MDP) MPs and two Jumhooree Party (JP) MPs.

In his letter, Gayoom contended that a committee meeting held on July 10 where the nominees were interviewed – where the chair had “acted arbitrarily” – was conducted in violation of parliamentary rules of procedure.

Gayoom said he had learned that the nominees were summoned without a vote by members and that an assessment criteria had not been passed prior to the interviews.

Moreover, he added, the marks sheets were not tallied in the presence of committee members.

Gayoom also argued that a sitting judge could not stand for the post of PG, citing article 151 of the constitution – which requires judges to “devote his full time to the performance of the responsibilities of a judge” – and a “legal norm” whereby judges who leave the bench must wait two years before practicing law.

While article 26(a) of the Judges Act stipulates that a judge who stands for a political post specified in law or the constitution would no longer be a judge, Gayoom noted that Muhthaz had not done so.

However, the Judicial Service Commission (JSC) has since said that judges could apply for posts in independent institutions.

Vacant PG post

Meanwhile, following the PPM parliamentary group’s decision today, MDP MP Rozaina Adam tweeted, “Could President Yameen publicly humiliate President Gayoom more than this? Yameen’s choice is very clear.”

She also alleged that Yameen had conspired for the previous parliament to reject Maumoon Hameed in April by ensuring that several PPM MPs would be absent for the vote.

Several pro-government MPs – including PG Leader Nihan who was with President Yameen in Japan and MDA Leader Ahmed Siyam – were conspicuously absent at the sitting, which saw  Hameed fail to garner the required 39 votes after falling just three votes short.

According to article 221 of the constitution, “The President shall appoint as Prosecutor General a person approved by a majority of the total membership of the People’s Majlis from the names submitted to the People’s Majlis as provided for in law.”

A majority in the 18th Majlis is 43 seats. In addition to its 43 MPs, the PPM’s coalition partner MDA has five MPs. The minority party announced today that its MPs would also vote for Muhthaz.

Following the previous parliament’s rejection of Hameed, President Yameen refused to submit a new nominee and opened up a third call for applicants, announcing his intention to nominate Hameed for a second time to the newly elected 18th People’s Majlis.

The PG’s post has been vacant since November 25 following the resignation of Ahmed Muiz ahead of a scheduled no-confidence motion in parliament.

Meanwhile, Acting PG Hussein Shameem’s resignation in early May brought the criminal justice system to a halt after state prosecutors went on strike, citing concerns of a lack of accountability in the absence of a PG.

However, the Supreme Court ordered prosecutors to resume work “without any further excuse” and ordered the seniormost official at the PG office to assume the PG’s responsibilities.

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MPs debate legislation on public referendums

Preliminary debate began at today’s sitting of parliament on legislation submitted by Progressive Party of Maldives (PPM) MP Abdulla Khaleel on legislation governing public referendums.

Presenting the bill (Dhivehi) on behalf of the government, the MP for Faafu Nilandhoo said the proposed law would specify circumstances whereby public referendums could be held as well as procedures to be followed by the Elections Commission (EC) in conducting polls.

Khaleel explained that the legislation stipulates that a public referendum must be held before approving an amendment either to chapter two of the constitution, which outlines fundamental rights and freedoms, or term limits of parliamentarians and the president and vice president.

The constitution authorises both the president and parliament to “hold public referendums on issues of national importance.” Parliament is also authorised to call for public referendums to override a presidential veto on a bill.

The bill defines matters of national importance as issues that parliament believes requires public approval before enactment as law, Khaleel noted.

The bill stipulates that parliament shall pass a resolution calling for a public referendum and provides details on how to conduct the poll, he continued, adding that the public must be informed of the pros and cons of the issue prior to voting.

The first public referendum following the adoption of the new constitution in August 2008 took place in October 2010, which saw small islands overwhelmingly reject a government proposal for administrative consolidation.

The bill on public referendums along with the special economic zones (SEZs) bill was accepted for consideration today and sent to committee for further review.

The SEZ bill was accepted with 46 votes in favour and 16 against.

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Government opens applications for National Awards

The President’s Office on Wednesday has opened applications and nominations for the annual National Awards.

Applications will be accepted until the end of August and forms are available on the President’s Office website.

The National Awards aim to recognize service in a variety of fields.

At a press conference held today, President of the National Awards Committee Abdul Rasheed Hussain stated that the categories in which awards will be given will be published in today’s edition of the government gazette.

He revealed that awards will be categorized into two Awards of Honour and Awards of Encouragement.

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