State budget for 2015 will be balanced, insists President Yameen

The record MVR24.3 billion (US$1.5 billion) state budget for 2015 submitted for parliamentary approval last week is a balanced budget, President Abdulla Yameen insisted yesterday in his Republic Day speech.

Referring to the Progressive Party of Maldives’ (PPM) campaign pledge to balance the budget in two to three years, President Yameen said the 2015 budget has a “primary balance surplus.”

“Looking at the figures of the budget, that is not a deficit we cannot plug. The deficit is a small figure,” he said.

The projected fiscal deficit in 2015 is MVR1.3 billion (US$84 million) or 2.5 percent of GDP.

The deficit was not for the state’s expenditure in 2015, Yameen continued, but for arrears or unpaid bills from recent years.

“So in my book, the 2015 budget is a balanced budget,” he said.

In his budget speech to parliament last week, Finance Minister Abdulla Jihad revealed that the forecast for recurrent expenditure in 2015 is MVR15.8 billion (US$1 billion) while the forecast for government income or revenue is MVR21.5 billion (US$1.3 billion).

The projected revenue includes MVR3.4 billion (US$220 million) anticipated from proposed new revenue raising measures.

A balanced budget would allow the government to “consolidate the economy,” maintain the value of the rufiyaa, and repay foreign and domestic debt, Yameen said.

After balancing the budget, Yameen said the government should work toward achieving a surplus.

The public expected waste management systems, water and sewerage, harbours, and land reclamation, he continued, noting that the MVR6.3 billion (US$408 million) Public Sector Investment Programme (PSIP) in the 2015 budget – 24 percent of the budget – was unprecedented and double that of 2014.

Yameen observed that the PSIP budget was around MVR3 billion (US$194 million) in the past.

While carrying out infrastructure projects in all 188 inhabited islands in one year would not be possible, Yameen said the budget was formulated after prioritising developmental projects.

Moreover, the government would seek foreign aid, soft loans, and concessional loan assistance to finance infrastructure projects, he added.

The budget also includes welfare or social security benefits for the needy, the elderly, and persons with special needs, he noted.

The MVR5,000 (US$324) a month allowance or old age pension would be provided in 2015 as well, Yameen said, while subsidies for food and electricity would be targeted to the needy.

Achievements

On the government’s achievements during its first year in office, Yameen said the economy was improving as a result of the government’s policies.

The acute dollar shortage of recent years has been alleviated, he added, while the ‘unlimited’ Aasandha insurance scheme was introduced to assist persons with chronic illnesses.

While there were only nine pharmacies in the atolls last year, the State Trading Organisation has opened 71 pharmacies in various islands this year.

Moreover, sea ambulance service was provided to six atolls, he continued, and a 50-bed multi-speciality hospital would be built in Hulhumalé within three years.

Efforts were underway to install generators across the country to ensure reliable round the clock electricity in all inhabited islands, he said.

The Special Economic Zone Act would meanwhile facilitate attracting foreign investment, Yameen said.

The government has also decided to provide sovereign guarantee for loans to develop new resorts, he continued, while the guest house island policy would benefit small and medium sized enterprises.

The government’s plan to create 94,000 new jobs as pledged during last year’s presidential campaign was through economic diversification or development and not through the civil service, he noted.

On the pledge to develop a ‘youth city’ in Hulhumalé, President Yameen said the second phase of the island’s development through further land reclamation would begin during November.

Work has also begun on introducing an insurance scheme and providing subsidies to fishermen and farmers, he added.

The implementation of the new national education curriculum in 2015 would meanwhile bring “revolutionary changes” to the education sector, Yameen said.

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President Yameen slams “Western colonial powers,” declares foreign policy shift to East

The European Union (EU) imposed restrictions on Maldivian export of canned tuna for refusing to change or abandon Islamic principles, President Abdulla Yameen claimed today, declaring a foreign policy shift to the East.

In his address to the nation on the occasion of Republic Day, President Yameen said economic cooperation with China does not involve the same challenges to remaining an Islamic state posed by “Western colonial powers”.

“Participating in business with China does not involve any such compulsion for us,” Yameen said at a ceremony at the Dharubaaruge convention centre this morning.

Yameen referred to the EU’s refusal to extend the duty-free status of imported fish from the Maldives following the country’s failure to comply with international conventions concerning freedom of religion.

Until January 2014, fish exports to the EU – the single largest export partner by value – were duty-free under the Generalised System of Preferences (GSP) programme, a non-reciprocal trade agreement extended to developing countries.

Last year, the government’s application for a year’s extension under the ‘GSP Plus’ program was declined as it had not ratified all 27 required international conventions. The Maldives holds reservations concerning the freedom of religion component of the International Covenant on Civil and Political Rights (ICCPR).

Former Fisheries Minister Shafeeu told Minivan News in November 2013 that the Maldives would lose its competitive advantage over the larger fishing fleets of nearby Sri Lanka and Thailand with a 14-20 tariff on fish imports, and reduce profits to “a marginal value”.

President Yameen said there was “no way forward” for the country regarding the issue.

“The government’s thinking is changing towards the East,” he said.

Under the Maldivian Constitution, all citizens are required to be Sunni Muslim and the practice of other religions as well as places of worship are prohibited. Customs authorities forbid the import of religious items and scan the baggage of tourists arriving at the airport.

Former Minister Shafeeu explained last year that the EU’s move was not unexpected as Maldivian fisheries had been given a three year extension of its duty-free status after graduating from the UN’s definition of a ‘least developed’ country to ‘middle income’ in 2011.

Silk Route

The government decided to participate in the Chinese 21st Century Maritime Silk Route initiative because China is currently the strongest and fastest growing economy in the world, President Yameen said.

As a result, Yameen continued, the government believes that the “multi-million dollar infrastructure investment” needed for economic development would “arrive through this door.”

Participation in the Silk Road initiative would not adversely affect either the Maldives independence and sovereignty or the Islamic identity of the nation, he insisted.

Ahead of his maiden state visit in September, Chinese President Xi Jingping called on the Maldives “to get actively involved” in the creation of a maritime trade route linking China to the east coast of Africa and the Mediterranean.

Meanwhile, former President Mohamed Nasheed has criticised the decision to join the Silk Route initiative, contending that it would threaten Indian Ocean security and risk putting the Maldives in the middle of war or disputes between Asian powers.

“Indian Ocean stability depends on a firm Indian hand. President Yameen must reverse his decision on Maldives being a party to the Silk Route,” the opposition leader tweeted on November 8.

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President Yameen inaugurates Hoarafushi sewerage project

President Abdulla Yameen officially inaugurated a sewerage project on the island of Hoarafushi in Haa Alif Atoll yesterday.

The Ministry of Housing and Infrastructure awarded the project to the Malé Water and Sewerage Company (MWSC).

After the inauguration ceremony, President Yameen also visited Haa Alif Kulhudhufushi yesterday. He is due to return to the capital, Malé, today.

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“President Yameen, the world is watching you”, warns Australian senator

Australian Senator James McGrath has warned President Abdulla Yameen that the eyes of the world are on the Maldives’ deteriorating human rights situation.

“Do not lead your country into the shadows of fear and hate and violence. Stamp on ISIS and the other agents of hate. Let the Maldives be free – President Yameen, the world is watching you,” McGrath told the Australian Senate yesterday (October 28).

The Queensland senator told the house of judicial corruption, political violence, media suppression, and religious extremism in the Indian Ocean nation.

He gave special attention the the ongoing Supreme Court case against the Human Rights Commission (HRCM) and the disappearance of Minivan News journalist Ahmed Rilwan 82 days ago.

McGrath informed the assembly that he had worked with former President Mohamed Nasheed during his successful 2008 presidential election campaign, describing the transition to democracy as a “political fairy tale”.

The governing Progressive Party of Maldives last week accused Nasheed’s Maldivian Democratic Party (MDP) of attempting to use the international community to influence the case against the HRCM, to “discredit Maldives reputation”, and to “impoverish the Maldivian people”.

Recent events in the Maldives, including consistent attacks and threats against opposition MPs and property, have prompted concern from the EU, Amnesty International, the Inter-Parliamentary Union, and the Canadian government.

McGrath – who described the suo moto proceedings used against both the HRCM and the Elections Commission earlier this year as “unusual” – said “a worrying trend has been for the supreme court to violate the separation of powers outlined in the 2008 constitution”.

Noting the likely abduction of 28-year-old journalist Rilwan had come after a series of attacks on the media in recent years, McGrath observed a “slide into authoritarianism and religious extremism” in the aftermath Nasheed’s departure from office in February 2012.

The senator’s comments regarding ISIS followed one week after UK Under-Secretary of State for Foreign and Commonwealth Affairs Tobias Ellwood responded to a written question from Karen Lumley MP on the group’s potential activities in the Maldives.

“We are aware of the activity of ISIL sympathisers in the Maldives, and we will continue to engage with the Maldives government about the promotion of religious freedom and moderation,” Ellwood informed Lumley.

While up to four Maldivians are reported to have been killed fighting in the Syrian civil war this year, a family of four were reported to have migrated to ISIS held territory last week.

Up to 200 demonstrators marched through the capital Malé last month, brandishing the flag made famous by ISIS, calling for the full implementation of Shariah in the Indian-ocean archipalego.

McGrath yesterday expressed alarm at recent moves to subject the publication of poems and prose to government approval – a move he called “blatant censorship” – before concluding his speech.

“The world is watching you president Yameen. Be a true leader and let your people be free. Let them speak freely, let them be without fear of violence, let them have rights of association, let them talk right and join together as free peoples.”

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New UN resident coordinator presents credentials to President Yameen

Newly-appointed United Nations Resident Coordinator for the Maldives Shoko Nada presented her credentials to President Abdulla Yameen at a ceremony at the President’s Office this morning.

According to the UN in Maldives, Noda – who assumed office on October 19 – has served as the Country Director for UNDP Nepal from 2011 before joining UNDP Maldives.

She began her United Nations career in 1998 as a Junior Professional Officer  and went onto fill various positions in UNDP Headquarters in New York and other UNDP Country Offices around the world.

Shoko has also worked for the UNDP in Mongolia, Former Republic of Yugoslavia, in Kosovo and in Tajikistan. Between 2005 and 2010 she worked for the Office of the UN Resident Coordinator in Pakistan, and has also worked as  the Special Assistant for the then-UNDP Administrator Mark Malloch Brown.

“We look forward to closer collaboration with the Government, Civil Society Organisations (CSOs) and other relevant development partners to ensure continued progress and development of Maldives,” Ms Noda stated upon assuming office.

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President vetoes amendments to Child Protection Act

President Abdulla Yameen has vetoed amendments passed by the People’s Majlis to the Child Protection Act on October 14, requesting revisions based on advice from the attorney general.

In a letter to parliament – read out at today’s sitting – President Yameen explained that the government submitted the amendments to the 1991 law to remove inconsistencies with the new Constitution adopted in August 2008.

Article 36(b) of the Constitution states, “Primary and secondary education shall be freely provided by the State. It is imperative on parents and the State to provide children with primary and secondary education. Opportunity for higher education shall be generally accessible to all citizens.”

However, the amendment bill (Dhivehi) passed by parliament states that the state shall freely provide pre-school, primary, and secondary education to all “Dhivehi children living in the Maldives.”

President Yameen noted that the amendment to Article 5(b) of the Child Protection Act contravenes Article 36(a) of the Constitution – which states that “Everyone has the right to education without any discrimination of any kind” – as it implies that the state does not have to provide free education to foreign or expatriate children residing in the country.

“And considering Article 2 and 28 of the Convention on the Rights of the Child to which the Maldives has acceded, providing free primary education to all children living in the Maldives without discrimination is obligatory,” the president’s letter explained.

Therefore, it added, the amendment to the Child Protection Act was contrary to the obligations placed on the state by the convention.

Moreover, the president observed that the amendments make it mandatory for the state to provide pre-school education to all children.

The amendments also contravene rules for the state to assist pre-schools operated by local councils specified in the Pre-schools Act of 2012.

The president noted that providing mandatory free pre-school education in all inhabited islands would place a burden on the state budget and recommended consultations with the education ministry and finance ministry regarding government policy.

In the ensuing debate, opposition Maldivian Democratic Party (MDP) MP Mariya Ahmed Didi criticised parliamentary committees for hastily approving legislation without proper study or consultations with stakeholders.

Leader of the Majlis have in recent weeks, however, called upon committee members to speed up work after a number of Majlis sessions were cancelled due to lack of work on the house’s agenda.

Progressive Party of Maldives (PPM) MP Jameel Usman had submitted the amendments on behalf of the government in June. The social affairs committee reviewed the amendments and forwarded the legislation to the Majlis floor earlier this month, after which it was passed with 51 votes in favour and two abstentions.

MP Ahmed Nihan – parliamentary group leader of the PPM, the majority party in the Majlis – conceded that the inconsistencies with the constitution and pre-school law were missed due to an oversight in the legislative process.

Nihan said the majority party should ensure that such incidents do not recur in the future.

Following the debate, the amendment bill was returned to committee for further review with 58 votes in favour and one abstention.

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Government taken hostage by the police and gangs operating in Malé: Nasheed

Maldivian Democractic Party (MDP) President, and former president of the Maldives, Mohamed Nasheed accused the government of being taken hostage by the police and the many gangs operating in the capital Malé.

“At the moment, the government has failed in providing a path to bring perpetrators of serious crimes in front of justice,” Nasheed said while speaking at an MDP rally held in the carnival area of the capital last night (October 26).

Nasheed also alleged that four individuals from the MPS Special Operations (SO) unit were behind the recent chopping down of the areca palm trees planted on both sides of the city’s main thoroughfare Majeedhee Magu.

“Two nights ago, we saw Maafannu police chase and attack four SO police officers who were wielding machetes around the city. Maafannu police tried to arrest the culprits but the SO officers ran into Iskandhar Koshi where they were protected by SO commander sub-inspector Abdulla Ibrahim,” claimed Nasheed.

Nasheed also criticised the government for its decision to ‘freeze employment’ in an attempt to reduce the ballooning budget deficit.

More than 5000 students are to finish their O levels, said the former president, with a further 2000 completing A levels – suggesting that these groups would be lost to gangs without gainful employment.

“The budget deficit has risen higher than ever before. The government is in huge amounts of debt after selling treasury bills to make ends meet,” continued the MDP leader, referring to the budget deficit which is now believed to exceed MVR4 billion (US$260 million).

He also spoke again of President Abdulla Yameen’s numerous visits to Singapore saying that the President Yameen is carrying out his presidential duties and obligations at a time where the whole country is descending into fear and chaos.

“If President Yameen is ill, we would not criticise these visits. However, the President’s Office has informed the media that the President and the First Lady is in good health, making us question the motive behind trips to Singapore,” said Nasheed.

President Yameen and the first lady have since returned from their unofficial trip.

Nasheed pointed out that the government has taken little to no action when an MDP rally held at Addu City was attacked by masked men wielding batons or when an MDP office in Malé was set on fire by two individuals on motorbikes.

Last night’s rally was held amidst a large number of threats issued against the opposition party. During the party’s last rally in the Malé, MP Eva Abdulla received a message threatening a suicide attack at the next MDP gathering while vowing to ‘fight to the last drop of blood’.

Despite party members continuing to receive threats prior to yesterday’s rally, the event passed without incident. Earlier today (October 26), the MDP held a press conference announcing that over 12,000 new members has signed to the party.

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President sets US$150 million minimum on SEZ investment

President Abdulla Yameen has announced a minimum investment of US$150 million for any projects in the recently introduced special economic zones (SEZ).

Yameen announced the measure by presidential decree, publishing it in the government gazette today.

The Specials Economic Zones Act – the flagship policy of Yameen’s administration – was passed in August, being hailed by the president as a way to incentivise multi-million dollar investment in the country.

“We have now created the legal environment required to attract major investments. This creates such a framework,” he said following the passage of the act.

Tourism Minister and chair of the SEZ board of investment has suggested that just one ‘mega project’ attracted under the new scheme could transform the country’s economy.

Under the SEZ Act, each zone would be granted to a developer – following evaluation of a proposal – to take overall responsibility for management and operation. Once a permit is granted, finding and choosing investors is left to the developer.

Opposition MPs have contended the SEZ law would pave the way for money laundering and other criminal enterprises, undermine the decentralization system, and authorize a board formed by the president to “openly sell off the country” without parliamentary oversight.

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Recognition award for advocates of disability rights given to 15 recipients

Awards in recognition of individuals and organisations advocating for the rights of disabled people have been given to 15 recipients today.

The awards, which were handed out at a ceremony held at the Islamic Centre of the Maldives, were given to the 11 individuals and 4 organisations by President Abdulla Yameen and First Lady Fathimath Ibrahim.

The Ministry of Law and Gender said that the recipients of the  award were given marks by a judging panel who gave points for the nominees depending on work done to fight for the rights of disabled people and the effectiveness of the work.

The award which is handed out every two years was initiated in 2012 with 12 recipients.

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