Tag: President Mohamed Nasheed

Opposition blames president for negative international coverage as protest talks continue

Opposition MP Ahmed Mahlouf has not ruled out future protests over living costs following a series of demonstrations held in Male’ over the last two weeks, claiming that President Mohamed Nasheed should personally take responsibility for any media attention that harms the Maldives’ global reputation as a result.

The MP’s comments follow a series of protests and gatherings held in Male’ over the last two weeks that the party said were initially organised by a non-political “youth movement”.

This movement is said to be focused on dealing with concerns at the rising costs of living and consumer goods in the country, and lead to protests that were included in a Washington Post list of the 29 largest government crackdowns of the last decade.

Organisers of the protests reportedly gathered on Friday night at the artificial beach area of Male’ for a meeting that that was described by newspaper Haveeru as an “anti-government” rally, with speeches from a number of political figures.

A police spokesperson said that the meeting was not treated by officers as a protest as it did not culminate on the capital’s streets.

After seven days of demonstrations across Male’ this month – purportedly in protest against the government’s decision to implement a managed float of the rufiyaa – police and protesters were witnessed clashing on a number of occasions leading to dismissed Dhivehi Rayyithunge Party (DRP) Deputy leader Umar Naseer being pepper sprayed.

The Washington Post coverage was used by the government to allege that opposition politicians have been attempting to “mislead” international media about the protests for political gain by deliberately skewing certain facts to compare themselves to mass anti-government demonstrations in Egypt earlier this year.

Concerns had additionally been raised by some travel industry insiders that coverage of the protests had led to travel warnings being issued in Honk Kong that could negatively impact travel to the Maldives from emerging holiday markets; though these worries are thought to have subsided over the course of this week.

Speaking to Minivan News today before travelling out of the country for a week, Mahlouf said that protest organisers were expected to give the government time to respond to their concerns over the prices of goods and services before officially setting a date for any potential future demonstrations.

“I don’t think we will see any other protests this week as there are school exams coming up. I think the protesters will also give the government some time,” he said. ”People have been drawn to protests due to concerns about prices, particularly with Ramazan a few months away.

With reports claiming rufiyaa was being exchanged at a rate of Rf17 to the US Dollar – despite government setting an upper limit of Rf15.42 at present due to the recenet managed float of the local currency, Mahlouf said that the situation remained a serious matter for protesters.

“The public are also seeing seven percent of their pay go into pension schemes as well,” he said. “In general these are difficult times for people.”

In light of coverage about the protests in papers like the US-based Washington Post, fears reportedly have risen about the potential impacts on the country’s lucrative tourism market. However, Mahlouf said he rejected government criticisms that opposition groups like the DRP had manipulated the scale of the protests.

“We have tried our best to get the attention of the international media and community with these protests,” he said. “President Nasheed has a very polished reputation in the global media through his work on issues like the environment. But back at home things are different. Recent elections have shown he doesn’t have support and it is our duty to inform others of this.”

Mahlouf is himself linked with the Z-DRP faction that as last month officially spun off from the main opposition DRP in support of the group’s former leader, Maumoon Abdul Gayoom.

Mahlouf added that while he was “sad” to see last week’s series of protests being included in a Washington Post story relating to the 29 biggest government crackdowns of the decade, he claimed that the inclusion of the Maldives in the list was the fault of President Nasheed and his policies.

“The action taken by police to disperse crowds was brutal. We were part of peaceful protests. Yet despite being so peaceful, police still decided to do harmful things to us,” he claimed.

Mahlouf said he was among a group of people including former President Gayoom’s spokesperson Mohamed Hussain ‘Mundhu’ Shareef that gathered in Sri Lanka to meet with representatives of the EU, the US and Canada to “explain everything” that had occurred at the protests from their point of view earlier this week.

The MP claimed that he remained committed to trying to address the stated concerns of protesters over the affordability of living in the Maldives.
“This issue is very serious. I was personally invited by [protest] organisers to attend and with so many people turning up – I believe it is the duty of MPs to be there in support.”

Amidst reported public dissatisfaction with government financial policy, Mahlouf last week announced plans to forward a resolution to parliament calling for a referendum to test public support for President Nasheed and his handling of the economy in light of the protests witnessed in the capital over the month.

While still committed to following through with his referendum plan, the MP said that he would first need to consult his parliamentary and party colleagues, as well as lawyers to see if he would be able to send such a motion to the Majlis.

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Mahlouf plots presidential “referendum” as stats show living cost rise

Official statistics supplied by the Department of National Planning have indicated a 4.42 percent increase in the rate of inflation last month compared to March 2011, as one opposition MP plans a referendum on President Mohamed Nasheed’s leadership over the dissatisfaction with living costs.

The new figures indicate increased prices for food and drink products last month, particularly for fish, on the basis of the Consumer Price Index (CPI) when compared to 2011 and April 2010.

The release of the statistics comes as MP Ahmed Mahlouf from the Z-DRP party, a spin-off of the main opposition Dhivehi Rayyithunge Party (DRP), claimed to be ready to forward a resolution to parliament this week calling for a referendum to test public support for the current president and his handling of the economy.

Figures such as the CPI are therefore an important issue following seven consecutive nights of protests in the streets of Male’, with demonstrators announcing they were now willing to negotiate with the government.

Protest organisers have claimed the demonstrations were a non-partisan “youth movement” in response to rising living costs on the back of government attempts to effectively devalue the rufyiya.

Aside from criticising the political opposition for politicising the demonstrations in the media for their own political gain, the country’s financial authorities last week claimed that to be providing some economic support to try and stabilise prices it said that while increasing, varied significantly between different stores.

According to the latest planning department stats, the cost of food and beverages when including fish was up by 20.35 percent during April 2011 compared to the same period the previous year. These costs were also up by 10.65 percent on the same terms compared to March 2011.

When excluding the price of fish, the average cost of food and drinks last month was up by 13.07 percent compared to over the same period of time last year. On the same terms, the statistics found that food and beverage costs last month rose by 4.44 percent compared to March 2011.

When comparing the overall change in CPI between April 2011 and April 2010, increases in costs were recorded across the board with the exception of recreation and culture, which was down by 3.11 percent.

As of late month, healthcare was up by 6.25 percent, transportation was up by 8.96 percent, education was up by 16.89 percent and fish was up by 58.32 percent when compared over the same period the previous year.

Between March to April this year, the statistics showed that the costs of healthcare were up by 1.21 percent, transport was up by 6.56 percent and fish prices were up 42.07 percent. The full statistics can be found here.

Halt to protests

In light of protests last week over rising costs, DRP MP Ahmed Mahlouf told Minivan News today that the party would be postponing any further demonstrations relating until next Friday after requests from police.

In the meantime, he claimed that young people who had initially organised the protests were negotiation with members of the government, a meeting that had been organised through the police to try and find some possible compromises on costs.

“The meetings were scheduled to take place with the government at 12:00pm today though I have not been informed yet of their progress. I imagine that they [the protest organisers] would be demanding some changes to government policy,” he said. “The police have asked us to stop the protests and as some of their members supported the march, we have wanted to keep good relations with them.”

Mahlouf added that he believed there had been a reluctance among organisers to stop the protests as the government were failing to address concerns about costs and “not believing” the financial realities Maldivians were facing.

However, amidst intense media scrutiny, the opposition MP said he believed the protesters had succeeded in their aims to attempt to change government policy on the economy.

However, ahead of the next scheduled protest on Friday, Mahlouf claimed he plans to forward a parliamentary motion for a referendum on whether President Nasheed had sufficient support from the public to enact his planned reforms.

Foreign Minister Ahmed Naseem last week criticised opposition parties like the DRP for “misleading” international media about the nature of the protests and failing to sit down and present their own alternatives for financial reforms in the country.

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Local sports star reported injured in police standoff during fifth night of Male’ protests

A well-known local football star has been sent to Sri Lanka for medical treatment after suffering serious injuries during a fifth night of protests in the Maldivian capital.

Media reported that Ahmed Assad ‘Adubarey’ was injured when he was caught and crushed between police riot shields.

Police had restricted protesters to the open area around the tsunami monument and the artificial beach area in the capital Male’ after complaints from business owners and residents around the Majeedhee Magu and Chandanee Magu intersection, a two-lane road the demonstrators have dubbed the Maldives’ “Tahrir Square.”

Protesters split up to try and reach the area, with 10 people including Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahlouf arrested by police and released later in the evening.

Those that reached the intersection were immediately dispersed by police, with several injuries reported.

It is thought that 14 demonstrators arrested during the week’s protests currently remain in custody after the Criminal Court issued warrants extending their detention.

A pickup truck with loudspeakers used by the opposition was damaged and looted by a group of seven young men near the Heniveru police station, in front of 600 demonstrators.

‘’We are residents of this area and you have caused much disturbance to us,” one of the men said, facing down the protesters. “You cannot move even a step forward. If you have the guts, take one step forward and you will see what happens,’’ he said, as 600 people stood silent.

Police are trying to locate the driver of the pickup.

‘’We had a report that a pick-up used by the protesters was destroyed by a group of people and we are now investigating the case,’’ said Sub-Inspector Ahmed Shiyam.”So far no one has been arrested in connection to the incident.’’

The opposition has maintained that the protests are ‘youth-led’ over concerns at the rising cost of living, despite the active leadership of MPs loyal to the former President Maumoon Abdul Gayoom’s faction of the opposition.

Certain activists said to belong to the Maldivian Democratic Party (MDP) are also said to have been involved in the protests, along with other political parties.

Meanwhile, US Assistant Secretary of State Robert Blake has told a press conference in Colombo that the budget deficit was the Maldives’ most pressing issue, and the at the opposition was obliged to assist in resolving the matter.

“The government has laid out a series of steps with the advice of the International Monetary Fund,” Reuters reported Blake as saying. “If the opposition opposes those steps, then it’s incumbent on them to divulge what their own plan would be and then to engage in good-faith negotiations with the government.”

President Nasheed’s Press Secretary, Mohamed Zuhair, said in a statement that the country “should unite for the common good.”

“If the opposition Z-DRP faction does not like the government’s economic policies, we call on it to set out an alternative, credible economic plan to reduce the budget deficit.”

Tourism insiders also alleged yesterday that growing international coverage of the protests has negatively impacted tourist interest from certain travel markets at the Arabian Travel Market in Dubai.

“Travel operators in Taiwan have said they are postponing and cancelling group bookings because of negative perceptions [of safety] in the Maldives,” a tourism source attending the expo told Minivan News yesterday.

“We just had another two confirmed bookings cancelled today because of reports of riots and instability. We worked hard to get these bookings and the potential domino effect is really worrying – people panic.”

In addition to these claims, the National Council of the ruling Maldivian Democratic Party (MDP) yesterday announced that it had approved a resolution to conduct “direct action to defend the government, the constitution of the Republic of the Maldives, the President of the Maldives and senior government officials” against an opposition-led protest planned for Friday afternoon.

The group claimed at the time that it was responding to threats by opposition figures to “torture and kill” the president and other ministers at Republic Square.

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“Prices of goods have been a lie”, says President Nasheed

Extract from a speech given by President Mohamed Nasheed at Sunday night’s Maldivian Democratic Party (MDP) rally, concerning the state of the economy.

Our nation remains a nation, as I often say, because our ancestors went fishing, collected cowries, climbed palm trees, constructed boats, built resorts and operated them. Our nation remains a nation not just because rulers ruled and judges judged. Our nation remains a nation because workers have laboured.

The rights of Maldivian workers and various benefits are not being spoken about in this country today for the first time. In the 1700s, Judge Hassan Thajudheen forbids Maldivians from working without remuneration. From that day onward, Maldivian workers from day to day have been noting their rights, and their responsibilities as well, to the present day.

In our country, if we want to bring the labour market to the right path, we have to look at or consider not just the worker. I always say, to do something, you have to do something else. After continually doing that, when what we envisioned has been reached, then what we want will have been sustainably achieved.

Prices of goods are not lowered with an army officer in front of the shop. To bring down prices, we have to build a good, strong economy. We have to change our economy into the shape of a strong economy of a middle-income country.

This was not the case yesterday. Most of the goods we sell in this country are imported. We pay for it in dollars. When we don’t know the value of the dollar – that is the goods in the market were bought with dollars and we don’t know its value – there is not a single way for us to know the value of the goods we have bought. Therefore, there’s no way we can know anything.

To build an economy on that basis and to consider it a sound economy is a mockery. It is not something I can do. I too know, [MDP MP] Alhan has said very clearly, we can keep building and building and building debt. The law very clearly gives me the discretion to print money. For the first three months after I assumed office, at the end of every month I was brought a piece of paper, on it was written that I had printed Rf200 million (US$16 million).

With every Rf 200 million, the value of the rufiyaa kept falling. When we took over the government, inflation was at 12 percent. [Prices] were rising at a rate of Rf12 each passing month. Today [inflation] is 0.65.

When prices soared to the highest, the price of a can of powdered milk rose by Rf 4 – two children will drink from one can of milk for a month. How much of an increase in rufiyaa per day has that become for us? I too know the prices of goods in the country. I do go into shops. I know that the price of a small coconut is Rf5 in Filledhoo, but Rf10 in Male’.

We do not lack information. Nor do we lack a course of action. And I am not unaware of what we’re doing and what we are about to do. Leaders of nations are anxious and cowardly when it comes to making changes to the country’s monetary and economic system. They remain hesitant about making changes to salaries, hesitant about making changes to taxation. They remain anxious and fearful of inflation.

However, in truth it is not us who have to suffer from that cowardice today, but our children tomorrow. The question before us today is who should we treat better? The woman we are married to now or our young children? I know it is a difficult question.

Everything we have done in our lives has been for our children. We build harbours for our children; we build homes and sewerage systems for our children. We give pensions as well, for our children.

Today prices of goods have gone up, too, for our children.

The straight value of the dollar to the rufiyaa is not a number I saw in a dream one day and took to heart. The price of a dollar set in 2001 was not based on a transaction between rufiyaa and US dollars. The price of a dollar has been set today based on market transactions. Today you are seeing straight the true price of the goods at market. It is not that prices have not gone up, you have found out the price! What was written before was a lie. It was not a price. It is a picture that rulers have showed you as a price. Our children and children’s children are being destroyed by the seduction of that picture.

Do we want the present or the future? This party was formed because we said ‘we want the future, today is done, the sun has set, what we can win is tomorrow.’ There is no way we can get today. We have to reach, too, for tomorrow.

Most workers in this country are fishermen. 44 percent of the workforce are fishermen. When the value of the dollar is low, its unfairness is felt most by fishermen. The fish they catch is sold out of the country. When the export price improves, the [purchasing] price improves for them. Because the value of dollars has gone up, the income of most workers in the country has gone up exponentially. It has gone up!

I have just come back from Thinadhoo. I went to Kolamafushi too. I know what’s happening in Ihavandhoo and Hoarafushi as well. Maldivian fishermen are today selling a kilo of raw fish for Rf16.50. That is not a price that they would have ever imagined before. A kilo of raw fish for Rf16.50. How much is a cupful of rice? How many cupfuls of rice can you get today for one handharu fish?

I would say the Maldives has not seen any more prosperous times than this.

The second [main source of employment] for workers in the country is in the tourism industry. The service charge in that business is paid in dollars, you know. On April 11, the income of workers in that sector has gone up 20 percent.

About 20 to 25 percent of the workforce in the Maldives is employed by the government. For them, it has become a little bit difficult. Like I said, a Rf4 [increase] from a can of powdered milk, for two children to drink for a month. Total monthly household expenses have gone up by Rf300 or Rf400 for a secretary, for a lawyer, for a labourer. To plug that gap, we must do what we have to do.

The government’s monetary and economic policy is now being implemented. We are now making the changes necessary to instil the characteristics of a middle-income country in our economy. An administrative framework for taxation has been established. A 3.5 percent GST is being levied on tourism services.

The government aim is to completely eliminate import duties beginning on January 1, 2012, for all children’s food, all foodstuff, pens, pencils and paper. We are working towards that end. It will be done on January 1, 2012.

In order to do it, the state needs an additional Rf1.3 billion. Today our budget forecast is Rf2.3 billion as duties. The government is giving up that duty, but while doing so, we have decided to ask the honourable members of the People’s Majlis to increase the tourism GST from 3.5 percent to 5 percent and introduce a 3.5 GST for other businesses.

If we wish to change our economy, we have to make these courageous changes. There is one additional tax. That is, the income tax. It will hurt the most there. We plan to take an income tax from those who earn above Rf30,000 a month. About Rf30 a month. When that amount is paid to the government as income tax, then the whole cycle of the economy will, God willing, become stable – this is where we see ‘The Other Maldives.’

That is where the value of the dollar will be brought down to the level we want and the price of goods and services will fall.

Our task is very clear to me. I know that, God willing, our efforts will bear fruit. This morning, among the changes to be made to the economy, I noted a special point. A lot of workers in the country are foreigners. Most of the time, businesses employ them because they work for cheaper rates. For work done in this country, [a person] should be able to live an ordinary life in this country, whether it is a foreigner or a Maldivian.

The government plans to determine what the minimum wage paid to a worker should be. Here or abroad, when that is paid to workers, we believe job opportunities will not be lacking for Maldivians.

We can bring our country to the right path. I know that there are many people who find what I have to say difficult to hear. But I say repeatedly, I am not someone who will squander our children’s future. We took over government to realise the hopes of the Maldivian people – to establish a system of good governance for the people.

We do not arrest people. We do not torture people. This government will not pillory, handcuff, torture or chain anyone. We talk to the people through verbal interactions, not through fear and intimidation. The Maldives is maturing into a full democracy. The biggest secret of our success is the many citizens of this country fighting for freedom and hoping for better days.

Before concluding, I would tell everyone here not to worry at all. Some nights, they might be squatting at the Chandanee Magu intersection. Other nights, leaning against a door somewhere. We must not be concerned and worried about it. What happened last night was very unfortunate. I didn’t know that protest was going on last night even when I slept.

What I have to say [to the demonstrators] is that our resolve will not be shaken. Neither this party nor I will be shaken. Our policies won’t budge either. God willing, in Alhan’s words, we are going to ‘The Other Maldives’ at maximum.

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President greeted with protests in Maavah

President Mohamed Nasheed was greeted with protests when he arrived in Laamu Maavah late afternoon yesterday.

Haveeru reports that clashes occurred between supporters of the president’s Maldivian Democratic party (MDP) and opposition groups gathered at the jetty, with police using tear gas to disperse the crowd.

An islander recounted that protesters marched behind the President’s entourage as it visited various island institutions, protesting at unfulfilled pledges by the President to build 50 housing units and a fish processing factory in the island.

“They protested outside everywhere the President went,” he said, adding that an opposition supporter had to undergo treatment for minor injuries sustained during the scuffle with government supporters in the island.

In the parliamentary elections of May 2009, all five constituencies of Laamu Atoll were won by the minority opposition People’s Alliance (PA) party.

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New exchange rate vital for long-term economic prosperity: President

President Mohamed Nasheed has said that the government’s decision to implement a managed float of the rufiya was necessary “to ensure the long term stability and prosperity of the Maldives.”

The government announced last week that it was allowing the rufiya to be exchanged for the dollar within 20 percent of the pegged rate of Rf12.85. Many businesses dealing in imported goods and several banks, including the Bank of Maldives (BML), immediately raised their rate exchange to the maximum permitted rate of Rf 15.42, exceeding the average Rf14.2 rate of the formerly institutionalised blackmarket.

Speaking during his weekly radio address, President Nasheed thanked the public and local businesses “for their patience and faith”, and predicted that the economy would show positive signs of stabilising in three months’ time.

“Changing the exchange rate mechanism [and] maintaining the value of rufiya is linked to finding a permanent solution for the constraints on our economic development,” he said, explaining that the decision would allow the government to “finance budget deficit, increase productivity, and increase export of goods and services.”

The President suggested that the financial shake-up caused by the move would not be as significant as many feared, because most importing businesses had been calculating the value of the dollar as higher than the government’s previously pegged rate.

“The government is confident of an expeditious fall in the prices of goods and services as the exchange rate stabilises,” said the President’s Office, in a statement.

A crackdown on the illegal sale of dollars on the  blackmarket the previous week – following a speech in which the President promised to “put a policeman behind every dollar” – failed to address the high demand for foreign currency particuarly among the country’s expatriate population, who had relied on blackmarket dollars for remittances.

Many of the country’s 100,000 foreign workers, particularly a large percentage of labourers from Bangladesh, are paid in Maldivian rufiya by their employers and became increasingly desperate as paranoia following the crackdown limited blackmarket exchanges.

Meanwhile protests organised by the various opposition factions this week in response to the managed the managed float attracted a surprisingly low turnout, given the potential for the government’s decision to raise the cost of living by up to 20 percent in the short-term.

While the move drew praise from the International Monetary Fund (IMF), which described it as a “bold step toward restoring external sustainability,” a number of Maldivian economists in the private sector remain convinced that the government’s effective devaluing of the currency will only temporarily ward off economic catastrophe in the face of crippling over-expenditure.

In an article for Minivan News this week, Director of Structured Finance at the Royal Bank of Scotland, Ali Imraan, observed that ‘growth’ in the domestic economy had been driven by the public sector  and “paid for by printing Maldivian rufiya and clever manoeuvres with T-Bills, which the government has used since 2009 to be able conveniently sidestep the charge of printing money. In simple terms: successive governments printed/created money to drive domestic economic growth.”

Imraan pressed for the Maldives to invest in private sector revenue growth “rather than building airports on every island”, and implement a progressive taxation system targeting high earners in the interest of income equality. He also urged the Majlis to uphold the constitutional stipulation whereby MPs – such as those with business interest in the tourism sector – removed themselves from voting on issue in which they had a vested interest, and further suggested that the government resolve the matter of stalled tourism developments “awarded to parties with no money or track record.”

“Moratoriums on lease payments or debt repayments may look innocuous enough, but they rob the country of vital growth opportunities and hence ultimately rob the people. We should not stand for it,” he said.

Imraan’s latter suggestion proved somewhat prescient when the Tourism Ministry renewed the lease for Hudhufushi in Lhaviyani Atoll, despite the resort island’s owner owing more than US$85 million in unpaid rent – most of it fines for non-payment.

The government’s decision to implement a managed float of the currency came as a least one local sales agent for international airlines operating in and out of the Maldives closed its doors to customers, blaming an inability to pay the airlines because of a lack of US dollars circulating within the economy.

A local financial expert working in the private sector, Ahmed Adheeb, had also warned that a shortage of foreign currency would reduce the prospect of foreign investment, because of the difficulty of repatriating profits to the home country.

“Dhiraagu, for instance, is probably having a lot of difficulties repatriating dividends to Cable&Wireless,” Adeeb said. “This can lead to a fall in investor confidence. When that happens, foreign investors will either try to exit or stay away. We will only see foreign investment that earns dollars, such as resorts.”

The problem would soon lead to inflation and difficulties importing essentials such as fuel and medicines, he suggested, and could potentially have a major impact if the State Trading Organisation (the country’s primary importer) found itself unable to acquire foreign currency.

Following the devaluation Adheeb warned that the impacts would be felt strongly in sectors such as construction, as dollars were already becoming scarcer as tourism wound down for off-season and Hajj pilgrims searched for dollars.

The general public would be also be impacted as the cost of commodities rose to fill the new exchange rate, while the government’s commitment to projects such as harbour construction could be delayed due to the risks of taking on even more debt.

“This will also affect business contracts, particularly [those concerning] foreign employment, and students studying overseas,” Adheeb said, predicting that “if the market does not stabilise then in three months time we will see a further devaluation. The government is taking a huge risk.”

Announcing the decision this week, Economic Development Minister Mahmoud Razee candidly stated that as a result of the artificially fixed exchange rate, “we do not really know, based on the breadth of the domestic economy, what the value of the Maldivian rufiya is right now.”

Given Nasheed’s radio address yesterday, the government has three months to find out.

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Police celebrate 78th Anniversary

Police last night held a special function at Dharubaaruge to mark its 78th Anniversary.

President Mohamed Nasheed, Commissioner of Police Ahmed Faseeh and ministers were present at the special function.

Commissioner Faseeh pledged to control the gang violence in the Maldives if concerned authorities cooperated with the police.

Expressing concern at the number of juveniles involving in crimes, Faseeh called on parents to cooperate more with police in reforming the juveniles committing crimes.

President Nasheed also addressed the people at the function.

Nasheed urged businessman not to reject teenagers from employment for having a criminal record on their police report.

Instead he called on businessmen to give them the opportunity to work “for the sake of the nation.”

He also said that he did not wish to have “even a single Maldivian behind the bars.”

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Addressing “disenfranchised” youth key to strengthening Maldives resort security, claims president

Consultations between the police, government and tourism insiders continued today aimed at boosting resort security in the Maldives following recent robberies, with President Nasheed calling for additional support to address societal crime.

Tourism authorities in the country have said that the security seminar forms part of plans to try and proactively reduce the “internal and external” threats facing the country’s scattered array of island resorts.  This is seen as increasingly important amidst growing concerns over industry preparedness for potential criminal attacks.

President Mohamed Nasheed opened the security seminar yesterday calling for the travel industry and authorities to not just focus on immediate solutions to protect resort customers and staff, but also to address the perceived root causes of national crime.  Limited jobs and education opportunities for young people were highlighted by Nasheed as examples of the potential problems needed to be faced in Maldivian society to alleviate some of the causes of crime.

Police authorities have told Minivan News that the exact changes to be implemented as a result of the two-day security seminar could not be detailed yet as consultations between different authorities and organisations were ongoing.

President Nasheed said at the inauguration of the seminar that two prominent incidences of intrusion at properties such as Kihaadhuffaru resort and Baros Island Resort and Spa this year alone highlighted the “magnitude” of the threats facing the country.

While accepting that the tourism industry and the government could protect resorts against future intrusions by heightening security though measures such as introducing barriers, Nasheed claimed that there are wider social problems that also needed to be addressed.

Along with outlining new security measures, Nasheed used his speech to call on the Ministry of Tourism, Arts and Culture, industry insiders, the Maldives National Defence Force (MNDF) and law enforcement authorities to include plans to try and combat societal issues such as gang violence, theft and drug abuse that he linked with the “unemployed, uneducated and disenfranchised youth in the country”.

Nasheed claimed that these concerns were the root cause of the problems facing the resort industry in combating criminal threats.

The president’s claims echoed concerns raised by the tourism industry last week by groups like the Maldives Association of Travel Agents and Tour Operators (MATATO), which called for immediate measures to address the potential threats of gang crime, piracy and terrorism at resorts.  The association said that it did accept that a relatively low number of security breaches that have occurred so far.

MATATO Secretary General Mohamed Maleeh Jamal nonetheless said that the entire industry would need to face up to addressing preparatory measures for resort security as it outlines a fourth tourism master plan that will cover the sector’s work from 2012 onwards. The current masterplan is said to relate to vital initiatives to develop the country’s travel industry from 2007 up until this year.

“We fear there is a big challenge ahead related to security,” said Jamal at the time.

Dr Mariyam Zulfa, Maldivian Minister for Tourism, Arts and Culture, also told Minivan News that she believed that rising levels of national crime and violence were beginning to impact the country’s secluded resort business. The Maldives tourism industry has this year witnessed a number of isolated criminal incidents at its resorts culminating last month in an attempted robbery at Baros Island Resort and Spa and the death of one of the alleged attackers.

Zulfa claimed that in the interests of trying to proactively protect the industry, authorities had been “working for some time” on developing new measures to protect resorts and bolster existing security systems that are in place in the country.

The tourism minister added the government alone could not handle the entire burden of dealing with security challenges alone.  She claimed though that various stakeholders – from resort companies to airport operators – had so far been very cooperative in trying to ensure they were not “easy” potential targets for criminal attacks.

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Government to guarantee loans for unfinished homes in Male’

Discussions are underway between the Housing Ministry and Finance Ministry to establish a mechanism to provide government loan guarantees for unfinished homes in Male’, President Mohamed Nasheed announced Friday in his weekly radio address.

President Nasheed said that an announcement will be made this week to invite applicants to seek loan assistance under the programme.

Of the 1,500 construction permits issued for Male’ from 2008 to date, said Nasheed, construction work has yet to begin on 47 percent of the houses. Work had ceased for 20 percent more while only 33 percent of homes reached completion.

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