“Worst fears” over Blackstone seaplane buyout now a reality, warns hotel group

Several multinational hospitality groups have alleged that the decision to sell the Maldives’ two main seaplane operators to US-based private equity fund Blackstone is having a “significant” negative impact on industry profitability – potentially compromising local jobs.

Blackstone announced back in February this year that it had purchased a controlling stake in both the Maldives’ seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT) for an undisclosed sum. Since the merger, the company has been operating under the TMA brand.

Major resort groups – speaking on condition of anonymity – have alleged that a number of properties were losing money on a monthly basis as a result of being reliant on services provided by the now-consolidated national seaplane operator.

“Worst fears”

In a letter addressed to the Secretary General of the Maldives Association of Tourism Industry (MATI) – obtained this week by Minivan News – one of the largest multinational companies operating in the country expressed concern that “our worst fears about the [seaplane] monopoly situation are becoming a reality.”

“You are of course aware that The Blackstone Group’s recent entry into the market has had the effect of eliminating competition and creating a monopoly in the charter seaplane market in the Maldives,” wrote the multinational’s CEO in a letter dated August 5, 2013.

“We were concerned from the outset about the potential disruptions this could cause in the market and have been monitoring the situation closely.”

The CEO added that, with discussions ongoing over securing a seaplane charter contract for its resort properties in the country, the company was particularly concerned at several contractual points being “forced” onto the group by TMA.

According to the letter, these concerns include:

  • A significant increase in prices from previous seaplane contracts
  • A reduction in services and benefits being offered to hospitality groups
  • An exclusivity clause forbidding any deals between the company and other seaplane operators
  • A “contractual link” to use landplane operations it alleges are set to be launched by TMA
  • Minimum contract term of three years for seaplane operations

“As you can see, the terms being forced upon hotel owners are highly anti-competitive and will have a significant negative impact on the market. We are being forced to accept unfavourable terms and TMA is trying to lock itself into a monopoly position by insisting on long-term exclusive contracts,” the multinational hospitality group’s CEO continued in his letter to MATI.

“Ultimately, these costs will be passed on to tourists, which will make the Maldives an even more expensive tourist destination and ultimately deter tourists from visiting , this will cost Maldivian jobs and damage the industry and economy.”

“Sensitive issue”

A senior official for another major multinational hotel group using TMA’s services said it had been experiencing a number of problems in recent months related to transporting clients by seaplane – describing the matter as a “sensitive issue”.

As well as general concerns about service costs, which it said were now “quite high”, the resort source claimed they had also noted issues with TMA cancelling flights without providing prior notification to the resort or its passengers.

In some cases, the resort official alleged that the resort had been given no choice but to provide customers with free meals and even additional nights stay on their property as a result of what it said were last minute cancellations by TMA.

“Although we have had no complaints from guests themselves, this has become quite expensive for the resort,” added the resort official. “I speak with many other resorts and many have said they are losing money monthly by having to provide these transfers [by seaplane].”

The source also noted what they believed was a decline in service in recent months, personally finding travelling with TMA a comparatively “unpleasant experience”.

“Right now, there is no competition as it is only TMA offering services,” the source said.

Domestic alternatives

Meanwhile, the general manger of a resort based in the north of the country, which is currently in negotiations with TMA to renew its contract, also raised concerns over the recent services being provided to guests since the takeover by Blackstone.

“We are not the only resort I know of who believes the services are not as good. There are less flights and more island hopping,” the source claimed.

The manager said that with the recent inauguration of a domestic airport in the country, the resort’s own reliance on TMA was no longer as strong, though they added that many guests preferred the opportunity to travel the country by seaplane where possible.

Despite the preference of many tourists to fly by seaplane, the general manager said that tour operators were now opting to use domestic air travel for customers travelling to the resort as “standard”.

“We are expecting more clients to travel by domestic flights, although some would rather pay to upgrade and fly by seaplane,” added the general manager.

Minivan News was awaiting responses from TMA, Blackstone, MATI Seceretary General Ahmed Nazeer, and Tourism Minister Ahmed Adheeb at time of press.

Investment climate

Speaking this week during a live question and answer session ahead of the upcoming election on September 7, President Dr Mohamed Waheed took full credit for securing Blackstone’s purchase of the country’s seaplane operators.

He cited the deal as an indication of the health of foreign investment under his administration, amidst criticism over his government’s termination of two high-profile foreign investment contracts, including a US$511 million valued agreement with India-based GMR to develop and manage Ibrahim Nasir International Airport (INIA).

“It is ridiculous to claim we are not getting foreign investments now. They are very eagerly coming, even more now. One example of a great investor that I brought in recently is Blackstone,” President Waheed said during the televised event.

Attorney General Azima Shukoor last month accused the previous government of failing to conduct sufficient research before signing several major foreign investment projects that have since been terminated by the present administration.

Speaking at the time of the sale back in February, former Minister of Economic Development Mahmood Razee, also former Minister of Civil Aviation, noted that the purchase of a controlling stake in the only two seaplane operators by a single company had effectively monopolised the market.

“This is a very exclusive market, and critical to the tourism industry. Even though both MAT and TMA operate the same aircraft, they have not previously been willing to cooperate,” Razee said, explaining that the Maldives did not have anti-monopoly laws which may have otherwise obstructed the sale.

Previously, resort managers could approach both companies seeking the better price for seaplane services, upon which they were reliant for the vast majority of their guest arrivals: “Now there is no effective competition, as the major shareholder is one and the same,” Razee said at the time.

He acknowledged that “in an ideal world” prices could come down, as the two companies have been operating identical aircraft but duplicating maintenance and other services.

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PPM unveils economic plan, to release full manifesto in “days”

The Progressive Party of Maldives (PPM) has said it expects to release its full manifesto both in print and online in the next 48 hours.

After the party yesterday (August 30) unveiled its economic policy, PPM Youth Wing President Dhunya Maumoon was quoted as saying that a full manifesto document would be available to the public in the next “couple of days”, according to local newspaper Haveeru.

PPM Presidential Candidate Abdulla Yameen is the last individual contesting the election on September 7 not to have launched his full manifesto.

His rivals; MP Gasim Ibrahim of the Jumhoree Party (JP); President Dr Waheed – standing as an independent – and former President Mohamed Nasheed of the Maldivian Democratic Party (MDP) have all released blueprints for their respective plans if elected to office.

Yameen – half brother of former autocratic President Maumoon Abdul Gayoom – has this week nonetheless detailed key factors of the PPM’s economic policy should he become head of state.

According to Sun Online, the policy will include attempts to lower current interest rates on loans for develop tourism or fisheries businesses. He expressed concern that while interest on loans was offered by the country’s banks at a rate between 10 to 12 percent, members of public with savings in these same banks were receiving between three to four percent of their deposited funds.

Yameen was quoted pledging to try and curb the difference between the costs associated with borrowing and saving in the Maldives in line with other countries.

Current tourism Minister and PPM Deputy Leader Ahmed Adheeb also helped unveil the party’s economic policy, pledging to oversee “serious changes” to the country’s economy at macro-level.

According to Sun Online, Adheeb unveiled the party’s plan to launch ‘economic regions’, while also showing videos detailing several harbour constructions and a proposal for an airport in Kulhudhuffushi.

Minister Adheeb was not responding to calls at time of press, while Minivan News was awaiting a response from PPM MP Ahmed Nihan concerning the party’s manifesto launch.

Despite holding the largest number of MPs of any party serving in President Waheed’s coalition government, PPM Leader former President Gayoom earlier this week expressed concern that the Maldivian economy had been “seriously damaged and destroyed”.

He argued that Yameen was the only presidential candidate with the required experience to bring economic stability to the country.

JP manifesto

Speaking during the launch of its own manifesto earlier this month, the JP, led by business tycoon and MP Gasim Ibrahim, claimed it expected to finish above the Progressive Party of Maldives (PPM) in the first round of the upcoming presidential election, before securing a second round victory.

JP Policy Secretary Mohamed Ajmal has said the party’s manifesto included a pledge for a ‘holistic’ approach to taxation, promising to introduce income and capital gains tax, and increase taxation of the wealthy.

This would include reducing the 60-70 percent of national income devoted to recurrent expenditure to 40 percent, by investing in local infrastructure and raising revenue through the private sector.

The JP has also launched a ‘Religion and Nationalism’ policy, pledging to strengthen Islam in the Maldives, including the establishment of an Islamic University, introducing Arabic as a teaching medium, strengthening relations and donor ties with other Islamic nations, and making the Quran a mandatory school subject.

Forward with the nation coalition

Meanwhile, President Mohamed Waheed’s ‘forward with the nation’ coalition, which claims to have been the first party to fully outline its election plan after rolling out its policies in July and early August – has outlined four key campaign focuses based around Islam, social protection, education and environment.

Among the incumbent’s pledges are plans to establish “floating hospitals” in the north and south of the country, a 50 percent reduction in household energy bills, opportunities for empowering women along with the provision of social protection and education and vocational training for Maldivians up to 18 years of age.

MDP manifesto ‘Costed and budgeted’

The opposition MDP has published what it calls a ‘Costed and Budgeted’ manifesto, including plans to establish 51,000 job opportunities, a savings scheme for higher education, a student loan scheme, a MVR2000 (US$129) allowance for every single parent and person with special needs, and an allowance of MVR2300 (US$149) for the elderly.

Former President Nasheed also pointed out the importance of introducing a development bank in the Maldives during a rally to launch the full document on August 24.

“Take a look, this manifesto will not contain even a single policy which has not been accounted for. Even if we are asked to submit a budget to the parliament by tomorrow, we are ready to do so,” he said during the launch.

The party has separately unveiled policies based around expanding mid-market tourism through focusing on supporting guesthouses on inhabited islands, and a specific youth development plan focused on sports and entertainment.

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Jaufar Easa Adam appointed President’s Office advisor

President Dr Mohamed Waheed has appointed Jaufar Easa Adam as an advisor for the President’s Office.

The appointment is a non-salaried role, according to the President’s Office website.

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President Waheed to present National Awards in Male’ on August 22

The National Awards Committee has finalised its list of recipients who will receive accolades at a special ceremony being held at the Dharubaaruge conference centre in Male’ on Thursday (August 22).

Of this list, three recipients will be presented with the National Award of Honour during the event, while eleven other people have been selected to receive the National Award of Recognition, according to the President’s Office website.

President Dr Mohamed Waheed will also present a further 27 individuals with the National Award for Special Achievement during Thursday’s ceremony.

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Fuvahmulah airport to install lights on runway

A contract to provide lighting for Fuvahmulah airport has been awarded to a Sri Lankan company, local media reports.

The MVR4.5million project will make it possible to land planes in the southern atoll at all hours, with the airport currently the only one in the country where this is not possible.

Sun Online reports that President Dr Mohamed Waheed will travel to Fuvamulah tomorrow to inaugurate the project, which is expected to be complete in three months.

The airport, owned by the State Trading Organisation, was opened in 2011, increasing access to one of the most isolated areas of the country.

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JP claims many more MPs set to join party after presidential election

The Jumhoree Party (JP) has said “many more MPs” are expected to pledge support to its leader, MP Gasim Ibrahim, following the conclusion of the upcoming presidential election – claiming an unspecified number have already pledged to work with the party.

The claims were made as the JP, held its first major event in the capital in order to publicise an election alliance formed with the religious conservative Adhaalath Party and the Dhivehi Qaumee Party (DQP).

Minivan News witnessed several thousand people in attendance at yesterday’s event, which saw several speakers including Gasim take to a specially constructed stage to address supporters and confirm that MP Ahmed Rasheed has switched to the party from the Progressive Party of Maldives (PPM).

The rally was held in the same location, where the MDP staged a meeting on Monday (August 12) to bring several thousand supporters together both as a show of strength and to commemorate the 12th anniversary of Black Friday in 2004.

Both parties events this week appeared to have been similarly attended, with MDP sources estimating that around 6000 seats had been set out for supporters during its rally.

“Major event”

With the election scheduled for September 7 – three weeks from today – JP Policy Secretary Mohamed Ajmal said that yesterday’s rally was planned as a “major event” to show the support base behind the Jumhoree coalition.

Speaking during the event, Gasim dismissed criticisms of his wealth by rival candidates in the election, adding that none of his competitors could be described as poor men.

He also pledged with his hand on the Quran that he would not take the smallest amount of funds from the public “against the constitution”.

Other speakers during the event slammed former President Mohamed Nasheed, accusing his administration of irreligious policies.

According to customs records for 2011, Gasim’s Villa Hotels chain – including the Royal, Paradise, Sun, and Holiday Island resorts, in 2011 imported approximately 121,234.51 litres of beer, 2048 litres of whiskey, 3684 litres of vodka and 219.96 kilograms of pork sausages, among other commodities restricted to islands classified as ‘uninhabited’ in the Maldives.

Speaking today, Ajmal claimed the party unofficially estimated some 10,000 to 15,000 attended the event, with some 20,000 supporters said to have been invited – although he believed not all had been able to travel from across the country.

He added that the JP had not itself provided boats to bring supporters to Male’ for the rally, opting instead to provide fuel for transportation and some unspecified “facilities” for supporters when they reached the capital.

MP switch

With MP Ahmed Rasheed having now joined the JP, Ajmal claimed that many more parliamentarians were “trying to work” with the party, though declined to give further details to media at time of press.

“These names have not yet been finalised. Because of the political situation at present, we will wait until after the election, though there are many MPs working with us,” he said today.

In the build up to next month’s scheduled voting, Ajmal said the JP had several further campaign plans that would be divulged at a later date.

He added that the JP remained confident it would achieve a comfortable second round election victory should no candidate obtain 51 per cent of the first round of voting.

However, Ajmal said that based on the strength of the country’s internal polling and research, there was growing optimism that Gasim could claim the presidency during the first round on the strength of what it perceived was growing grass roots support across the country.

“Our vice presidential candidate Dr Hassan Saeed said last night that it was reasonable to believe that if we work hard and continue with our great momentum, we might achieve 51 percent [in the first round],” he said.

PPM anticipates two candidate contest

Despite the JP’s confidence ahead of the election, the government-aligned PPM earlier this month maintained that former President Mohamed Nasheed of the MDP and its candidate, Abdulla Yameen, were the only two candidates capable of winning the election.

PPM MP Ahmed Nihan at the time dismissed any notion that the JP posed a threat to its own presidential campaign, accusing Gasim of using his financial power to buy support during his campaigning that would not translate to actual votes on polling day.

The MDP meanwhile has this week reiterated its belief that a first round victory was possible, with the PPM receiving the second largest number of votes, while expecting President Dr Mohamed Waheed and Gasim to finish in third and fourth place.

“The PPM I believe will come second because it is led by the former President Maumoon Abdul Gayoom. He will obviously have loyal supporters,” MDP MP Hamid Abdul Ghafoor said this week.

“But it may be a different story when it comes to recruiting their young support base. Apart from Gayoom, both Gasim and even Waheed are using money to get votes.”

Ghafoor described the current election politics as a battle between the past and the future, claiming the MDP’s three opponents were proxies of former President Gayoom’s 30 year reign and had nothing new to offer to the people.

Sources within President Waheed’s ‘forward with the nation’ coalition have over the last week also expressed confidence of being able to obtain a first round election win despite expressing concern over a “money game” it alleged was being played by certain candidates.

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President Waheed hands flats to ‘top 50’ police, promises more

President Dr Mohamed Waheed has expressed hope that more housing will be made exclusively available for police and military officers, while speaking at a ceremony to hand over 50 flats on Hulhumale’ to law enforcement officials yesterday (August 2).

Speaking at last night’s ceremony in Male’, the president said the whole nation should recognise the role that the police and Maldives National Defence Force (MNDF) played towards maintaining law, order and national security. He also called on officers to “uphold the constitution” and help ensure a peaceful election next month.

The opposition Maldivian Democratic Party (MDP) meanwhile has raised concerns whether the 50 flats – which it contends forms part of the “Veshi Fahi” Male’ (decongestion) project launched under the previous government in 2011 – were being given to the “needy” and most deserving.

Since President Waheed’s government came to power during the controversial transfer of power on February 7, 2012, which followed a mutiny by sections of the police and military, more than 1000 officers have been promoted, while 110 new police officers were hired.

A housing scheme was also introduced for police officers, with 300 flats to be constructed in Hulhumale’, arrangements were made for cheap accommodation in Sri Lanka for police officers and their families and a loan scheme was set up for police officers.

According to the President’s Office website, while handing over 50 flats to specially selected officers yesterday, Dr Waheed also praised the majority of police officers who had served the nations for a long period of time under “difficult living conditions”.

He also praised Police Commissioner Abdulla Riyaz, who took office following a mutiny by certain officers that led to former President Mohamed Nasheed’s resignation in February 2012, for the “developmental achievements” to the institution made during his tenure.

Police Spokesperson Chief Inspector Hassan Haneef told Minivan News today that the 50 officers presented with housing were required to undergo an “internal” selection procedure, based on specific criteria outlined by the institution itself.

Haneef explained that all officers who applied for the housing were then judged on a points system using the aforementioned internal criteria, with the “top 50” officers being selected.

“Big concern”, MDP claims

MDP MP and Spokesperson Hamid Abdul Ghafoor said it was “very concerning” that police should be given flats exclusively, to the detriment of teachers, doctors and other civilians. He also questioned how officers themselves had been selected for the process.

“The intention for these flats was for the needy and people who deserved them. This is why these flats were built,” he added.

Ghafoor claimed that while some of the officers may have deserved the housing, which he said had been set aside from the “Veshi Fahi” Male’ program established under the former government, there was concern that some officers involved in last year’s mutiny had been rewarded with flats.

President Waheed awarded the housing days after Commissioner Riyaz declared that police will continue to refuse any orders the deemed “unconstitutional”.  The comments were made as Riyaz expressed concern over leaked proposals for reforming the country’s security forces allegedly devised by the Maldivian Democratic Party (MDP) should it win the upcoming presidential election.

“I don’t want to say anything specifically about something that has been prepared politically or for a political purpose, but we do have a constitution and the MPS is an institution formed by the constitution,” he said, speaking just over a month ahead of the 2013 presidential election.

Proposals in the paper – leaked on social media earlier this month – include transferring the police to the authority of city councils, similar to the system in the US, while providing salaries and allowances of officers through the Local Government Authority (LGA).

The commissioner also rejected the professional capacity of individuals behind the reforms, which he claimed sought to “dismantle” and undermine the large role security services play in the country.

“I’d like to tell the MDP that they should clarify whether it is their policy or not. If it is their policy, it is of great concern. This [police] institution will be very concerned,” he said.

“Politicians should not try to play with this institution. Help this institution develop. Work to make this institution more responsible. To make it operationally accountable. Don’t use political influence to carry out political objectives through this institution.”

Riyaz alleged that certain senior government figures over the last three years had attempted to limit or weaken police in the country through the use of political influence that led to officers “straying from their path”.

He insinuated that police would not allow a similar event to happen again.

The opposition MDP have continued to question the legitimacy of the leaked reform proposals, claiming the party had no knowledge of such a document, despite backing the idea of a ”transitional arrangement” to reform the country’s security forces after last year’s power transfer.

The opposition party continues to maintain that former President Mohamed Nasheed was deposed in a “coup d’etat” after being forced to resign from office following a mutiny by sections of the police and military.

The allegations were later rejected by a Commonwealth-backed Commission of National Inquiry (CoNI) that ruled that there had been “no coup, no duress and no mutiny”, while also calling for action taken against unlawful acts committed by the country’s security forces following the transfer.

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Fifteen year-old’s appeal of flogging sentence for fornication stalled in High Court

State and judicial authorities have failed to provide a timeline for the appeal of a 15 year-old rape victim sentenced to flogging for a separate incidence of fornication, despite repeated pledges and promises of wider legal reform.

The 15 year-old minor from the island of Feydhoo in Shaviyani Atoll was convicted to 100 lashes and eight months of house arrest in February 2013, after confessing to fornication with another man during an investigation into allegations she was sexually abused at the hands of her stepfather. Those allegations arose with the earlier discovery of a dead baby buried in the outdoor shower area of the family’s home.

A month after the sentence was delivered, sources on Feydhoo told Minivan News that islanders had been raising concerns to the authorities over the girl’s abuse by other men on the island since 2009.

Sources at the time accused law enforcement officials, civil society and successive governments of failing on every level to protect the minor.

Widespread international coverage of the sentencing has since led to over two million people signing an Avaaz.org petition calling for her sentence to be quashed, a moratorium on flogging, and reform of laws to protect women and girls in the Maldives.

Despite the country’s international reputation as an romantic island getaway for couples, fornication (sex outside marriage) is illegal in the Maldives and is subject to Sharia punishments under the 1968 penal code.

However, statistics from the Department of Judicial Administration show that flogging sentences are overwhelmingly issued to women. Of the 129 fornication cases filed last in 2011, 104 resulted in sentences – 93 of whom were female.

Meanwhile, the Judicial Services Commission (JSC) has dismissed calls to suspend Supreme Court Judge Ali Hameed following the judge’s appearance in at least three recently-leaked sex videos appearing to depict him fornicating with unidentified foreign women in a Colombo Hotel room, citing “lack of evidence”.

15 year-old’s appeal stalled

The opening hearing of a High Court appeal of the girl’s flogging sentence, filed on her behalf by Attorney General Azima Shukoor, was held on April 29

The High Court has confirmed to Minivan News that there had been no further hearings in the three months since, and no further hearings scheduled.

However, a legal source speaking this week on condition of anonymity said the hearing in April was believed to have been the last, with the court expected to deliver a verdict on the case the next time it reconvened on the issue.  The appeal is being heard behind closed doors.

The flogging would be administered when the girl turns 18, although local media has previously cited a court official who claimed it could be implemented earlier should the minor request so.

Deputy Solicitor General Ahmed Usham confirmed that the sentence had not been carried out, and reiterated that no date had yet been set for a verdict on the minor’s appeal.

Usham added that a process to oversee legal reforms into the treatment of sexual abuse victims involving state bodies including the Attorney General’s (AG’s) Office was ongoing at present.

“Hopefully something concrete will be announced on this soon,” he said, but could not speculate on a timeline.

President Dr Mohamed Waheed’s government has previously pledged to review and “correct” laws it says victimise young women and minors who have suffered sexual abuse.

President’s Office Spokesperson Masood Imad previously expressed hope that the use of punishments such as flogging would be among practices debated as part of reforms.

“I’m sure when we debate [punishing suspects for fornication with lashes], we will find an acceptable solution for all parties,” he said.

More recently, the President’s Office said current legal practices involving the treatment of victims of sexual offences could not be changed overnight, and required gradual implementation.

“We cannot go any faster on the matter than this, we don’t want to see any trouble like in the past. We can’t just go and ask a judge not to [give sentences like this] anymore,” Masood said in May.

The President’s Office today confirmed that Dr Waheed had established a “special committee” as part of efforts to try and oversee the requested legal reforms, referring any specific questions on its work to Spokesperson Ahmed ‘Topy’ Thaufeeq.

Thaufeeq was not responding to calls or text messages at time of press.

Recently appointed Gender Minister Dr Aamaal Ali meanwhile requested Minivan News contact the office of former Gender Minister and current AG Azima Shukoor concerning the current status of attempts to reform laws on the treatment of sexual abuse victims.

Azima was not responding to calls or e-mails to her office at time of press.

Local newspaper Haveeru meanwhile last weekend interviewed the judiciary’s official flogger, Abdul Khalig.

“According to his memory, Khalig has enforced flogging sentences of over 300 people which amounts to thousands of lashes with his leather whip,” reported Haveeru.

“But Khalig to this day remains hesitant when it comes to flogging the elderly given their age. But he assures that no old person mostly sentenced for fornication and child abuse had come to any harm as a direct result of the flogging.

“No matter who the person is, this must be done. It is not a cruel punishment. Only one woman fainted whilst I was flogging her,” Khalig told the paper.

“I notice that people who have been flogged, repent and live good lives afterwards. Because this such a small society I see it quite often. People who have been flogged for fornication later go on to live very good lives,” he said, adding that he was now hoping “to impart what he has learned to the next generation before he retires.”

15 year-old’s case “tip of the iceberg”: Amnesty International

Speaking to Minivan News at the conclusion of a nine day visit to the country in April, Amnesty’s South Asia Director Polly Truscott claimed the treatment and controversial flogging sentence handed to the 15 year-old girl was the “tip of the iceberg” regarding the Maldives’ treatment of sexual abuse victims.

Earlier the same month, Maldivian NGO Advocating the Rights of Children (ARC) criticised child protection measures currently in place in the country as “inadequate”, urging government authorities to incorporate several key human rights obligations into domestic law.

ARC at the time told Minivan News that although the Maldives has signed and agreed to be legally bound by the provisions in the Convention on the Rights of the Child (CRC) and its Optional Protocols, the commitments have yet to be adopted into law.

Minivan News meanwhile in June investigated reports of “widespread” child prostitution being conducted in Laamu Atoll, and was informed by a private clinical psychologist that the practice had become “so common” that the victims considered it “normal”.

Multiple sources told Minivan News the practice has prevalent across the Maldives, ranging from male benefactors grooming children with ‘gifts’ to parents actively selling the sexual services of their children – some as young as 12.

Official and public acknowledgement of the “systemic” child sexual abuse remains taboo, although Azima Shukoor – then Family and Gender Minister – in a statement on May 10 to mark Children’s Day revealed that “children being used as sex workers, where the children are sent to places as a means to pleasure people and to gain an income from such a trade. This is being practiced in the Maldives today. Both boys and girls are being used in this trade.”

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Belgian group “conditionally awarded” Hulhumale’ second phase reclamation contract

The Housing Development Corporation (HDC) said it has “conditionally awarded” a contract to Belgium-based company Dredging International to undertake the second phase of reclamation work on the island of Hulhumale’.

HDC Deputy Managing Director Mohamed Shahid today told Minivan News that financing on the contract was still in the process of being finalised at present on the project, with the bid price “more or less” anticipated to be about US$59 million.

Shahid added that a total cost of the project could not be given until certain technical requirements related to the expansion project were finalised.

Local media has previously reported that the HDC project to reclaim 230 hectares of land on Hulhumale’ suitable for residential use would cost an estimated US$60 million, with six foreign parties reportedly expressing interest earlier this year. The development is anticipated to be the largest project of its kind in the Maldives.

Shahid said that with most of the housing planned for the first stage of the development on Hulhumale’ now complete, a second stage would begin soon to reclaim land for the further development of residential and commercial properties that would be managed by the HDC.

A source with knowledge of the project today confirmed that representatives for Dredging International were expected to arrive in the country in the next two to three weeks to begin inspections of the project area before work could commence.

Local newspaper Haveeru meanwhile reported that the second reclamation phase was expected to take about one and a half years to complete.  The work will include reclaiming land presently used for the Club Faru resort, an island property sharing the Hulhumale lagoon closed earlier this year in anticipation of the project.

The Maldives government earlier this month announced it was nearing an agreement to move ahead with the second phase of reclamation work, despite claiming weeks earlier that the project could face continued delays due to limited financing.

The claims were made as the government also this month entered into discussions with Saudi Arabia over securing a US$300 million credit facility for several purposes including “budget support”.

Despite the state’s financial concerns, President’s Office Media Secretary Masood Imad said the agreement would see work commence on a second phase of land reclamation in Hulhumale’ “as soon as possible”.

The development of Hulhumale’ near Male as a residential area was originally intended to reduce congestion in Male – one of the most crowded cities in the world, with an estimated 55,000-60,000 people per square kilometre.

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