President Nasheed meets German Chancellor Merkel

After his arrival in Berlin early yesterday morning, President Mohamed Nasheed met with German Chancellor Dr Angela Merkel yesterday at the Federal Chancellery.

President Nasheed was welcomed with military honours.

The meeting was focused on bilateral relations between the two countries and ways to enhance them.

President Nasheed thanked the German government and people for their support to the Maldives through the democratic reform process. He said he hoped Germany’s assistance would continue in helping to strengthen and consolidate democracy in the country.

The president also commended Chancellor Merkel for her role in helping reach an agreement at COP15 in Copenhagen last year.

Chancellor Merkel congratulated President Nasheed for the transition of democratic reform in the Maldives.

The president and his delegation were given a guided tour of Berlin, which included a visit to Hohenscönhausen Memorial, a former political prison.

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High Court freezes accounts belonging to Adam Naseer

The High Court today ruled that Adam Naseer’s bank accounts would remain frozen until the appeal process launched by the Prosecutor General’s Office is complete.

Naseer was arrested on charges of drug trafficking in July 2009, and was acquitted by Judge Abdul Baary Yousuf on 28 February, who noted there was a lack of evidence against Naseer.

The government has previously identified Naseer as one the country’s top six drug dealers, and his acquittal has raised concern among many about the integrity of the judicial system.

The High Court’s decision to freeze Naseer’s accounts follows a decision yesterday by the Criminal Court ruling that police were to return the Rf6 million (US$467,000) in cash found in Naseer’s house when he was arrested.

Police Sub Inspector Ahmed Shiyam confirmed that the police had requested the High Court suspend the order to return the money to Naseer, and to freeze his bank accounts, until the appeal process from the PG’s office was complete.

Shiyam called the court’s speedy ruling “a success” and said the police “hope future cases will be treated in the same manner.”

President’s Office Press Secretary Mohamed Zuhair said “I don’t think [Naseer] is under arrest” but noted that he was unable to leave the country.

“Immigration has a black list of all individuals with pending judicial matters,” he said.

Shiyam confirmed Naseer was “at home” but not under house arrest.

High Court decision

Deputy Prosecutor General Hussein Shameem confirmed the PG’s office submitted an appeal to the High Court yesterday for Naseer’s bank accounts to remain frozen while the appeal to his drug charges is in process.

Shameem explained that it was very important for Naseer’s money to remain frozen through the appeal process because “if he gets a hold of it, he could send it abroad or launder it.”

Under the Narcotics Law, any money obtained through illegal activities “shall be confiscated by the state.”

“We have asked the court to confiscate the money in case he is later convicted,” Shameem added.

Shameem said he thought the High Court’s ruling to freeze Naseer’s assets was “a good decision” but the noted that the case would not yet be heard in the High Court.

“They will send a summon in time. We still have to wait,” he said.

Shameem noted that the case cannot be heard at the High Court until the Criminal Court sends a formal report on the original ruling, which includes the documents that were submitted and the witness statement.

“We are still waiting on the full report from the Criminal Court, hopefully [we will get it] by the end of this week” he said. “We still need to get things started.”

Shiyam suggested “there are more charges to come” in the Naseer case,  although he would not comment on whether there will be new evidence submitted in the High Court’s hearing.

Judicial reform

There has been much public outcry about the performance of the judicial system, sparked by Adam Naseer’s acquittal.

Even President Mohamed Nasheed said at a Maldivian Democratic Party (MDP) rally on Sunday 28 February, “When there’s Rf5 million in a bag underneath the bed and the judge doesn’t think it raises any kind of doubt, I wonder how they perform their duties as a judge.”

A source familiar with the judicial reform process said the judge’s conduct needed to be “looked into”.

The source noted that 75 per cent of the country’s judges had not finished primary-level education, and had simply acquired a ‘judge’s certificate’ or been appointed by the previous regime. Historically, “a few people” instructed the judges on the law “and verdicts”.

Secretary General at the Judiciary Service Commission (JSC), Muna Mohamed, meanwhile confirmed that only 35 out of 202 judges have a degree in law, and only one has a diploma in Shari’a law. The remaining 166 have local trainee certificates.

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Government signs agreement with Dutch Docklands for floating golf course

The government has signed an agreement with Dutch Docklands of the Netherlands to develop, operate and manage water properties in the Maldives.

Dutch Docklands is a global leader in tailor-made floating developments (such as floating beaches and restaurants) using methods and procedures it claims will reduce the environmental impacts on sea-life and minimise the changes to the coast lines.

The agreement includes a floating convention centre and golf course in the Maldives.

The agreement was signed at a ceremony held at the President’s Office last Thursday afternoon.

President Mohamed Nasheed and Ambassador of the Netherlands, Mrs Leoni Margaretha Cuelenaere, were present at the ceremony.

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President Nasheed speaks of development and politics in Noonu Atoll

President Mohamed Nasheed has said political rivalry in the islands should not impede their development.

Speaking at Noonu Manadhoo, in the final leg of his visit of the northern atolls, President Nasheed urged all parties to communicate in situations of disputes and disagreements.

He said the government would consider public opinion before implementing all its policies.

He spoke on the measures to be taken in improving the education system. He said school boards were formed in most of the schools and they were given considerable authority in the management of the schools.

The president noted the connection between educating the youth and the future development of the country.

President Nasheed also mentioned the transportation and housing projects being set up for Noonu Atoll.

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President submits decentralisation bill

President Mohamed Nasheed has submitted the revised Decentralisation Bill to the People’s Majlis.

The bill states that each of the administrative divisions stated in Schedule 2 of the Constitution—except Malé—will be administered by an atoll council elected in accordance with the Constitution.

It also provides representation to both men and women in the elected island and city councils.

The bill gives the president the authority to establish province offices to provide the services of ministries and coordinate government projects in different regions.

The president also proposed the 2nd amendment bill to Act 2/99 (Tourism Act), to make the industry more sustainable and increase the government’s revenue from tourism.

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Government debt reaches $553 million, a third of GDP

President Mohamed Nasheed has highlighted the financial problems the government is facing, mainly foreign debt and a gaping budget deficit.

In his speech President Nasheed reminded the Majlis of his address last year, when he said his “administration was prepared to provide equitable services to all citizens and to be accountable for the people.”

The president noted his administration had made “satisfactory progress in these endeavours,” but also mentioned some startling figures regarding budget deficit and debt.

In 2009 the government’s debt to foreign financial agencies and banks stood at US$553.8 million (Rf7 billion), which amounted to 37.6% of the country’s GDP. The government’s total expenditure for the same year was US$617.2 million (Rf7.9 billion).

The estimated government expenditure for 2010 is of US$648.4 million (Rf8.3 billion). The People’s Majlis approved a total of US$710.9 million (Rf9.1 billion) to be allocated for government spending.

The estimated revenue for 2010 is of US$781.2 million (Rf10 billion) and the estimated deficit for this year is of US$429.7 million (Rf5.5 billion).

Mr Rodrigo Cubero, IMF mission chief for Maldives, said in a press release issued in January 2010: “The Maldivian economy continues to face serious challenges. In particular, addressing the very large fiscal deficit is of paramount importance to secure a stable economy, equitable growth, and lasting poverty reduction.”

The government has said it plans to minimise the deficit by reducing government expenditure, including by cutting down the number of public servants and decentralising several government agencies. Both measures have encountered heavy opposition.

On this subject, President Nasheed said “the government will continue to make every possible effort to bring about a positive change to the salaries of civil servants and government employees.”

The government will also “include processes to increase revenues of the state.” This includes the proposed taxation bills—the bill on administration of taxation, the bill on business profit tax, and a newly submitted bill on taxing from sales of tourism service providers.

The president said he was “confident that this Majlis will work to ensure that these…bills are passed as soon as possible.”

Permanent Secretary for the Finance Ministry Ismail Shafeeq explained that most of the debt was owed to “loans from foreign institutions, banks and other agencies” as well as foreign and domestic borrowings, most of which are being used in the economic development of the Maldives.

“The loans will take a long time to pay back, some of them are for 40 years,” said Shafeeq, but added that the government is making the payments on time.

“The deficit is a problem. It means a shortage – the government has spent so much.”

The Ministry of Foreign Affairs, in partnership with the UNDP, will be hosting the IV Maldives Partnership Forum, also known as the Donor’s Conference, later this month. The forum seeks to find foreign investment for their development plans, which would help significantly in lowering government expenditure.

“Reducing expenditure and restricting unnecessary spending” are key to solving the country’s financial debt, according to Shafeeq.

The government is also following recommendations from the IMF and ADB, both of whom have given out significant loans to the government for the economic development program.

In a press release produced by the IMF in December 2009 Deputy Managing Director and Acting Chair of the IMF, Mr Takakoshi Kato, said:

“The authorities’ program, while subject to considerable risks, is strong, comprehensive, and well-focused, and deserves strong support of the international community. If fully implemented, it will put the Maldivian economy back on a path of macroeconomic stability and set the conditions for sustained economic growth and poverty reduction.”

President Nasheed said in his speech that “the government has embraced the advice of international financial agencies and begun the implementation of some of the measures suggested by these agencies. We have started enjoying the benefits of these measures.”

The IMF allocated a loan of US$92.5 million last December to go towards the economic recovery program.

The ADB has assisted with two loans, one of US$\1.5 million and one of US$3 million. Both are to go towards the economic recovery programme.

The Ministry of Finance could not provide Minivan News with the estimated debt for 2010 at time of publication.

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President begins tour of northern islands

President Mohamed Nasheed began a tour of some of the islands of the northern atolls in the Maldives.

The president will visit some islands of Shaviyani Atoll and Noonu Atoll.

As part of his tour, President Nasheed inaugurated Beach House Maldives Resort, now part of the Waldorf Astoria Collection, at Haa Alif Manafaru yesterday afternoon.

Beach House Maldives is the first Waldorf Astoria Collection property to open in Asia.

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New regulations on resort rent and lease periods will bring changes

President Mohamed Nasheed has said that government will amend the Maldives Tourism Act, reports Miadhu.

The president said that once the taxation bill and the resort rent and lease bill become legislations, there will be major changes to the tourism sector.

President Nasheed added that according to the ‘Third Tourism Master Plan’, the government is working on increasing bed capacity to 36,659 beds by 2012. He said the Maldives must not only target the high-end market, and announced the government will begin to create a mid-market.

Both the taxation and the Tourism Act amendment bill are being examined by the People’s Majlis.

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President speaks of Shari’ah law in the Maldives

President Mohamed Nasheed marked the occasion of the Prophet’s (PBUH) birthday and spoke of the history of Shari’ah law in the Maldives during his weekly radio address on the Voice of Maldives.

President Nasheed said Shari’ah law has a unique position in the Maldives, as it’s among the few countries that have practised Islamic law uninterrupted for a long period of time.

“Since the conversion to Islam about 900 years ago, the Maldives has continuously practised Shari’ah,” said President Nasheed.

He said other Muslim countries have practised limited Shari’ah, like Egypt, who adopted the Napoleonic Code after Napoleon’s invasion, and Malaysia, adopting English common law.

The president also mentioned the importance of Islamic scholars who served as chief justices in the Maldives. Historically, they have been the highest authority of Islam, and ensured the continuity of the practise of Shari’ah.

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