Tag: President Waheed

Government to help 1000 students with education fees

President Mohamed Waheed has stated that Maldivians could make no greater contribution to the country than to support the education system, during the launch of four government scholarship schemes.

Sun Online reported that Waheed had expressed his concerns that the level of Maldivians going int tertiary education was not too low given the Maldives’ recent promotion from Least Developed Country (LDC) status.

It was reported that the Ministry of Education announced scholarships for 440 students, provided by the Zakat fund.

State Education Minister Aminath Ali told Haveeru yesterday that it expected the four schemes would assist around 1000 students.

Waheed said that this plan to lighten the financial burden on parents was part of a World Bank scheme that he hoped would increase opportunities for jobs and tertiary study.

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Chair of UK parliamentary group visits President

President Dr Mohamed Waheed Hassan today met with the Chairman of the UK-Maldives All Parliamentary Group (APG) MP David Amess.

The President’s Office reported that the discussion involved the recent political history of the Maldives and the upholding of democratic values.

Amess’s visit to the President’s Office came as former President Mohamed Nasheed met with UK Foreign Secretary William Hague in the Maldives in London.

Nasheed is expected to lobby the Commonwealth Ministerial Action Group (CMAG) regarding the recently released Commission of National Inquiry report during the trip.

He will also speak at the Royal Commonwealth Society on Wednesday evening.

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President Waheed opens Koodoo Airport

Gaaf Dhaal Atoll Kooddoo airport was officially opened by President Dr Mohamed Waheed Hassan today, less than seven months after the Singaporean Bonavista Company began the development.

Flights will be operated twice daily by Maldivian Airlines, taking passengers from Male’ to Koodoo in 45 minutes.

Upon arrival Waheed was greeted by a water salute from the airport’s fire engines as well as the children of Gaafu Alifu Atoll Education Centre, reported Sun Online.

Waheed said that he saw the development of regional airports as beneficial for both locals and the tourism industry, the President’s Office website has reported.

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Government urges CMAG to remove Maldives from agenda

The government has sent a statement to the Commonwealth Ministerial Action Group’s (CMAG) demanding its removal from the group’s agenda, ahead of its teleconference this Tuesday (August 11).

In the statement, dated September 7, the government argues that there remains “simply no justification for keeping the Maldives on the [CMAG] agenda”.

The CMAG had placed the Maldives on its formal agenda in February although President Dr Mohamed Waheed Hassan’s government has maintained that the group “lacked the mandate” to to so.

Waheed’s government also spent £75,000 (MVR 1.81 million) on advice from former UK Attorney General and member of the House of Lords, Baroness Patricia Scotland, in a bid to challenge what they deemed was the Commonwealth’s “biased” stance on the Maldives, and has continued to express disapproval at what it terms “interference” by the Commonwealth.

The government’s statement offers five reasons in support of its removal from the CMAG agenda.

Firstly, the government pointed out that the recently completed Commission of National Inquiry (CNI) had found no legal issues surrounding the transfer of power, adding that its international observers had hailed the report as “exemplary.”

The publication of the CNI was closely followed by an independent legal analysis which has raised serious doubts over the credibility of the CNI’s findings.

The teleconference statement added that former President Mohamed Nasheed had also welcomed the report, “though with some caveats”.

The most notable of the caveats mentioned by Nasheed was that the report left the country in a “comical” situation “where toppling the government by brute force is taken to be a reasonable course of action.”

Secondly, the government reasons that the CNI’s findings of police brutality are already being acted upon by the relevant independent institutions – the Police Integrity Commission (PIC), the Human Rights Commission (HRCM) and the Prosecutor General (PG).

The onus placed on these institutions since the release of the report has again raised doubts as to their ability to handle these politically sensitive investigations.

However, the fourth reason cited for the removal from CMAG’s agenda was the government’s willingness to expand cooperation with the Commonwealth in order to strengthen the institutional infrastructure.

This willingness to enhance relations with the Commonwealth appears at odds with the apparent enmity shown by senior figures towards the organisation since the CNI’s release.

Both Dunya Maumoon, State Minister for Foreign Affairs, and Dr Hassan Saeed, Special Advisor to the President, have publicly argued that the Maldives had been treated unfairly, suggesting that the country should leave the organisation should it not be removed from the CMAG agenda without delay.

“Should the Maldives continue to be kept on the CMAG agenda, I have to say that there are a lot of citizens and very senior members of the government who have many serious concerns regarding whether the Maldives will stay on as a member of the Commonwealth,” Dunya told the press last Thursday.

Dr Hassan launched a scathing attack in a comment piece for local newspaper Haveeru, in which he argued that the Maldives had received “third class justice” from the Commonwealth.

“It is my belief that the Commonwealth and its institutions have treated us very badly,” wrote Dr Hassan.

“I would now argue that if CMAG does not remove the Maldives from its agenda in its next teleconference on 11th of this month, we should end our relationship with the Commonwealth and look to other relationships that reflect modern realities of the world,” he said.

President’s Office Spokesman Abbas Adil Riza was reported in local media today as saying that he does not feel CMAG should intervene in any future challenges the country faces.

When discussing the current visit of Commonwealth Special Envoy Sir Donald McKinnon, Abbas said he felt this would be McKinnon’s last visit to the country.

The third reason listed by the government in its statement to CMAG argues that calm had been maintained “despite some serious efforts by the opposition to create unrest.”

Although there was widespread anticipation of unrest before the release of the CNI with Nasheed at one point calling for his supporters to “topple the government”, the demonstrations surrounding the report’s release were not accompanied by a notable increase in violence.

The presence of international news crews in anticipation of unrest did, however, did lead to greater coverage of the ensuing protests.

The statement also mentions the initiation of the ‘Leader’s Dialogue’ talks which it claims will focus discussion on practical issues such as legislation which will ensure elections next year can be held freely and fairly.

Finally, the government argues that the stigma of remaining on the CMAG agenda is negatively affecting foreign investment and tourism in the country.

“The Maldives, which is one of the smallest countries in the Commonwealth, is experiencing difficulties in finalising foreign investment projects, and in some cases, concessional loan financing, as well as a drop in tourist arrivals into the country as a result of being on the CMAG agenda,” read the statement.

Ministry of Tourism figures show that this year’s tourist arrivals had grown just 2.8 percent compared to the same period in 2011. Figures for 2011, however, showed growth of 17.6 percent compared with 2010’s arrivals.

President Waheed travelled to China last week where he finalised agreements for a US$500 million loan (MVR7.7billion).

“It is therefore time that the Maldives is removed from the formal agenda of the CMAG and allow the government to focus on what it is expected to do; cultivating and nurturing democracy in the Maldivian society,” concludes the statement.

“After all, in democracies, governments are answerable to the people,” it finishes.

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Indian Aviation Minister urges resolution of GMR dispute

Indian media outlets have reported that the country’s Minister for Civil Aviation Ajit Singh has asked the Maldives to consider ways to resolve ongoing disputes with Indian company GMR regarding the development of Ibrahim Nasir International Airport (INIA).

The Economic Times reported that the issue arose during a meeting with the Aviation Minister and a Maldivian delegation led by the Maldives’ Minister for Transport and Communication Dr Ahmed Shamheed.

The paper said that an official statement from the Civil Aviation Ministry had highlighted the major issues discussed:

“The contentious issues include provision of airport development charges provided for in the agreement with the GMR, but termed as unauthorised by a local court in the Maldives, and a demand for an additional runway not provided in the agreement,” the statement is reported to have said.

The development of the airport – expected by the company to total US$511m in costs – is the largest foreign investment project undertaken in the Maldives’ history and includes commitments to complete the renovation of INIA’s existing terminal this month.

The issues detailed during the meeting have been compounded in recent months by government aligned parties calling for nationalisation of the airport as well as orders to halt construction work following allegations of missing permits.

CEO of GMR Maldives operations Andrew Harrison today told Minivan News that the government had informed the company it had complied all regulations, but had not yet given it the go-ahead to resume work.

“We have not done any work since August 2,” said Harrison.

During a visit to India last month, leader of the government aligned Dhivehi Rayyithunge Party (DRP) Ahmed Thasmeen Ali warned of serious repercussion for investor confidence should the country renege on the GMR deal.

Sri Lankan media this week has also reported Business Council leader Hussain S Hashim as saying that a lack of trade dispute mechanisms in the Maldives was stifling bilateral trade.

Travel Daily India reported that additional measures to strengthen bilateral ties in the aviation sector were discussed during the meeting.

Increasing air links between Indian cities and the Maldives was a topic reportedly discussed. It was reported that Island Aviation, Spice Jet, and Mega Maldives are all planning to connect Mumbai, Delhi and Chennai with Male’.

Changes to the countries’ aviation agreement was also mentioned in Travel Daily, with the current rules only allowing flights with carrying capacities of less than 150 passengers.

“India will relook the agreement which will help in boosting tourism between the two countries,” Singh is reported to have said.

During his official visit to India in May, President Dr Mohamed Waheed Hassan spoke of his desire to bring more Indian visitors – who currently represent only 2.9 percent of the market share – to the Maldives.

“Not enough Indian tourists are coming to the Maldives and that is a matter of concern for us. I am sure it is also a matter of concern for India, particularly when you realise that there are so many Chinese tourists who are coming to the Maldives now,” Dr Waheed told India’s Business Line.

Whilst Dr Shamheed is in India, a number of his fellow cabinet ministers have accompanied President Waheed on his official state visit to China.

Yesterday, the President’s Office website reported that Waheed had met with members of the business community in Shanghai.

Waheed is reported as having said that investors were always welcome in the Maldives.

“Maldives is open for business,” Waheed told those in attendance at the opening of the China-Eurasia Expo & the 2nd China-Eurasia Economy Development and Cooperation Forum.

The highlight of Waheed’s first trip to China as President has been the finalising of a $500million (MVR7.7billion) package of aid, concessional loans, and loans for housing construction.

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“Too little, too late”: President’s Office dismisses chances of MDP coalition

President Dr Mohamed Waheed Hassan has decided not to include the Maldivian Democratic Party (MDP) in his national unity government, his advisor Ahmed ‘Topi’ Thaufeeg has told local media.

“It is too little, too late”, said President’s Office Spokesman Masood Imad, adding, “[the MDP] remain a viable opposition.”

Immediately after his accession to the presidency, Waheed announced that he would leave some cabinet posts vacant for the MDP.

However, feeling President Waheed to have taken power illegally, the MDP refused these overtures.

After the Commission of National Inquiry (CNI) concluded that the transfer of power on February 7 did not amount to a coup, MDP Chairman ‘Reeko’ Moosa Manik attended the newly-coined ‘Leader’s Dialogue’ meeting on Sunday.

Whilst local media had reported that Moosa requested a place for the MDP in the current government, Moosa himself told Minivan News yesterday that he had only asked for clarification on the MDPs position – whether it should be considered the ruling, or the opposition party.

Responding to this argument, Masood today said: “The point here is that the MDP fails to understand is that this is not a parliamentary system, it is a presidential system.”

This constitutional problem was also included in the observations of the CNI’s international observers.

“There are tensions within the Constitution itself with a Presidential system engrafted onto a Parliamentary system which will always be problematic,” commented Sir Bruce Robertson and Professor John Packer.

MDP Spokesman Hamid Abdul Ghafoor, who described some of the observers comments as “mocking a young democracy”,  today said the party’s National Executive Committee (NEC) will discuss requesting a Supreme Court ruling on its role in the government.

“We don’t know who we are in government,” said Ghafoor.

“This is a sticky problem. The CNI’s assumptions are that the government has not changed, so it is the President’s prerogative to deliver on the MDP manifesto,” he continued.

President Waheed and his Gaumee Ittihad Party (GIP) joined the former coalition government, which included the MDP, the Jumhooree Party (JP) and the Adhaalath Party, to win the 2008 elections.

The coalition, however, began to break up after only 21 days when the JP withdrew. The Adhaalath Party was the last part to withdraw from the coalition in September 2011.

Local media today reported the Adhaalath party as having publicly lauded Waheed’s decision.

Sun Online reported Deputy Leader of Dhivehi Rayyithunge Party (DRP) Ibrahim Shareef as saying that the MDP ought to be allowed into the government if it adapts its policies.

Ghafoor interpreted these comments as evidence that certain leaders are “jittery”: “They want to straighten this out”.

The issue of a constitution comprising elements of both presidential and parliamentary systems was discussed by Waheed his official visit to India in May.

“You know our constitution is pretty much a cut-and-paste constitution. We have elements of parliamentary system as well as presidential system,” Waheed told the diplomatic community in New Delhi.

“The presidency is very much fashioned after presidency in the United States, and the parliament functions as a parliamentary system like in the UK. So there are issues that have to be resolved around that,” he continued.

Ghafoor also drew comparisons with the US system, arguing that after the 1974 resignation of President Richard Nixon, his Vice-President and successor Gerald Ford did not reshuffle the executive.

Referring to the MDP’s purported requests to join the current government, Masood said, “If they are allowed to join the current government now – where is democracy?”

“We are one year away from elections where we can let the Maldivian people decide,” he added.

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President speaks at China-Eurasia Expo

President Dr Mohamed Waheed Hassan has spoken at the opening of the opening of the 2nd China-Eurasia Expo & the 2nd China-Eurasia Economy Development and Cooperation Forum, as part of his official state visit to the country.

“As China continues to make great strides in the various facets of its development, it has indeed become an outstanding example of the good international citizen,” said Waheed.

“The Maldives has always looked to China as an invaluable friend. As we celebrate the 40th anniversary of diplomatic relations this year, the contribution from China to the social, cultural and economic development of our country is immense and numerous.”

“For over two decades, China has supported housing development in the Maldives, along with other infrastructure projects. The support towards promoting athletics and other sports as well as cultural cooperation is noteworthy.”

“We recognize China as one of the leading economic powers globally, and we are keen to strengthen our relationship with the country. Maldives has always promoted an open economy with liberal trade and investment policies. We are happy to note that we maintain one of the most liberal trade regimes in the SAARC region.”

“To further strengthen our investment policies, the Government is taking steps to further improve the legal and regulatory framework governing private sector growth and foreign direct investments. Maldives is open for business and it is with pleasure that I note, companies from China are already involved in Maldives.”

“I call upon potential investors to consider Maldives as an attractive investment destination in addition to a popular tourist destination. Potential opportunities are available in real estate development, especially residential and mixed development projects, public infrastructure projects as well as investments in the tourism sector.”

The President’s Office has reported that Waheed is scheduled to meet Chinese Premier, Wen Jiabao, who was also present at yesterday’s opening ceremony.

Also in attendance was the President of Krygyzstan, and the Prime Minister’s of Kazakhstan, Cambodia and Tajikistan

Before leaving, the President also announced that he expected to finalise arrangements for a $500 million loan from the Chinese government. Local media has today confirmed that an agreement has been signed.

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President meets UN Secretary General in Rio

President Dr Mohamed Waheed Hassan has met with United Nations (UN) Secretary General Ban Ki-Moon on the sidelines of the Rio +20 summit.

The President’s Office reports Waheed received assurance from Ban that the Maldives can count on the support of the UN as it pursues enhanced democracy and a low-carbon economy.

Waheed explained the recent reforms to the Commission of National Inquiry (CNI) which is charged with investigating the event that brought him to the presidency. He also thanked the Secretary General for the help the UN has played in consolidation democracy in the Maldives.

“This ends rumors that the international community doesn’t recognise this government”, President’s Office spokesman Abbas Adil Riza told Haveeru.

In a statement released at the beginning of the month, Ban’s office released a statement offering his commendation to all parties for the successful reformation of the CNI.

“The Secretary-General again urges all parties to resume immediately their political dialogue, both within and outside of Parliament, in order to find a mutually agreeable way forward on the basis of the Constitution and without jeopardizing the democratic gains achieved thus far in the Maldives,” read the statement.

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GMR announces dollar payments to employees as ruling parties continue call for nationalisation

Additional reporting by JJ Robinson

Despite recent government assurances that Indian investments in the Maldives would be protected, parties in the now ruling coalition have renewed calls for the airport to be nationalised.

Indian infrastructure company GMR has meanwhile informed staff that it will pay 50 percent of employee salaries in US dollars from July onwards, as part of the new employee benefits scheme. Further benefits announced include the payment of Ramadan bonuses in US dollars, and a profit-sharing scheme awarding employees a one percent share of the company’s profits from 2011.

The decision follows a week in which former opposition parties – now in a coalition government following the controversial transfer of power of February 7 – sent replies to President Mohamed Waheed Hassan’s request for opinions on the airport, the development and management of which was taken over by GMR in 2010 in a 25 year concession agreement signed with the now-opposition government.

The pro-government parties – including the Dhivehi Rayithunge Party (DRP), Dhivehi Qaumee Party (DQP), People’s Alliance (PA) and Jumhoree Party (JP) – advised Waheed that they continued to endorse an agreement signed in June 2010 calling for the airport to be taken back from GMR and nationalised – the  ‘Joint Statement by political parties opposing government’s efforts to hand over the Male’ International Airport to a foreign party’.

The agreement endorsed six main points which included taking legal action to prevent the government’s decision to award the contract to GMR.

GMR’s contract is currently under scrutiny by a committee appointed by President Waheed, which includes the Attorney General, the Finance Minister and the CEO of Maldives Airports Company Ltd (MACL).

A delegation from the International Finance Corporation (IFC) – a member of the World Bank group and the largest global institution focused on private sector in developing countries,  which brokered the deal between GMR and the government of Maldives – recently addressed the government’s concerns over the concession agreement in a meeting with senior government officials.

The DQP – a small but extremely vocal party which has consistently opposed the airport deal and filed court cases against it – today accused the IFC of mishandling the bid evaluation report of the airport privatisation agreement. A 24-page book released by the DQP while it was in opposition presents the government’s lease of Ibrahim Nasir International Airport (INIA) to developer GMR as a threat to local industry that will “enslave the nation and its economy”.

“IFC is a company associated with GMR in many other projects. It is clear that IFC had issued loans to GMR on other projects. We believe that the government selected IFC to facilitate GMR for the airport project,” an anonymous party source told newspaper Haveeru.

President’s Office Spokesman Abbas Adil Riza said the airport contract is “an important national issue” which “must be dealt with after discussions with coalition partners.”

However, speaking at the ceremony to mark the 100th day of his administration, President Waheed said he did not wish to involve “political disputes” in reviewing the GMR contract and that foreign investments must be handled as business dealings.

“I do not believe bringing in our political quarrels into the GMR issue will be good for our future and our economy,” said the President.

During President Waheed’s recent trip to India, he also assured Indian Prime Minister Manmohan Singh that the Maldives government would adhere to all agreements between Indian and Maldivian businesses and expressed the Maldives’ desire for further Indian investment in the country.

“My government is a continuation of the previous government under then President Nasheed, and hence there should be no doubt on this score,” he was quoted as telling Manmohan Singh in the Daily News.

In addition, during the India trip, Maldives Foreign Minister Dr Abdul Samad Abdulla assured his Indian counterpart that all existing investment agreements would be honoured despite the change of government on February 7.

According to Indian newspaper The Hindu, Samad assured Indian External Affairs Minister S.M. Krishna that the government’s policy was unchanged, after his counterpart expressed the desire that the Maldives remained friendly to outside investors.

Hostile politics

Despite these assurances, the revelation that major political parties now in government continue their endorsement of airport nationalisation, and challenging of the IFC’s competency, could increase tensions between the government and GMR and weaken investor confidence in the Maldives – at nearly US$500 million, the airport concession agreement is the country’s single largest foreign investment.

Declining to comment on the official standing of Dhivehi Rayyithunge Party (DRP) on the GMR deal, the party’s Deputy Leader Dr Abdulla Mausoom said the DRP was against privatising “assets of national importance”.

Jumhoree Party (JP) Spokeman Moosa Rameez said the party had written to the President stating their wish to adhere to the agreement signed between the then opposition parties.

Although the parties in the government had expressed several concerns including “threats to national security” in “giving away the airport to foreigners”, the government’s current concerns are focused on the disputed concession fees in the agreement.

Under the concession agreement in the GMR contract, a US$25 charge was to be levied as an airport development charge (ADC) on all outgoing passengers to part-fund the infrastructure project.

However, while in opposition, the DQP – which today forms part of Waheed’s national unity government – filed a successful case in the Civil Court in December 2011 to block the payment of the charge, on the grounds that it was effectively a tax not approved by parliament.

Nasheed’s government had agreed to deduct the ADC from the concession fees payable by GMR while it sought to appeal to verdict. As a result, Dr Waheed’s government received only US$525,355 from the airport for the first quarter of 2012, compared to the US$8.7 million it was expecting.

In April, Finance Minister Abdulla Jihad declared that the Maldives Airport Company Limited (MACL) would be unable to continuing paying the ADC without risking bankruptcy.

The Transport Ministry has since ordered GMR to pay the shortfall in concession fees. In response, GMR in early May “expressed a desire to exempt Maldivian citizens from the ADC”, as “the majority of Maldivians travel abroad for the purposes for healthcare and education.”

“The ADC was conceptualised and incorporated into the concession agreement by the government to yield a maximum return to the Maldives while ensuring development of the airport and a reasonable return to the successful bidder,” GMR said, in a statement at the time.

“We are sensitive to the apprehensions expressed regarding ADC; and would like to assure all concerned that the management of GMR Male International Airport is doing everything possible by offering viable options to reduce the impact on the Maldivians, thereby helping the government for the ADC implementation.”

GMR has expressed confidence in the strength of its contract, which has a facility for dispute arbitration in Singapore, as well as an option for the government to buy out the agreement – a cost likely to reach several hundred million dollars.

However the country is already facing a crippling budget deficit of 27 percent, a plunge in expected revenue of 23 percent and an increase in spending of almost 24 percent, a time when investor confidence has been impacted by repeated challenges to the government’s legitimacy by the MDP.

Earlier this week the government refused to comment on claims made in local media by JP Gasim Ibrahim that the Maldives was now bankrupt and already unable to pay some civil servants.

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