“An Australian surf travel operator has introduced a “pass” system to restrict the number of surfers at one of the world’s great left-hand breaks, Lohis, in the Maldives,” writes Robert Upe for the Sydney Morning Herald.
“Only 35 passes will be handed out daily to try to control the crowds that have caused ‘chaos’, according to managing director of World Surfaris, Shaun Levings.
The congestion has resulted in heated exchanges at the reef break, opposite Hudhuranfushi Resort that has about 200 rooms and lists surfing among its activities.
‘The surfing population around the world has almost reached epidemic proportions because it is seen as ubercool to surf,’ Levings said.
‘A lot of the new surfers who don’t know the etiquette of the sport are booking themselves into international (surf) locations with reef breaks. But they aren’t experienced enough to surf them and they don’t follow the rules of surfing. Eventually, the experienced mellow surfers lose their cool.’
‘Surfing is meant to be for relaxation but (with the crowds) it becomes an arena where you are competing for waves. The whole vibe changes.’ ”
Galolhu South MP Ahmed Mahloof of the government-aligned Progressive Party of Maldives (PPM) submitted a bill to parliament last week to transfer responsibility for providing pre-school service in Male’ from the city council to the Education Ministry.
Mahloof proposed amending the pre-school law to prevent the privatisation of ward schools and pre-schools in Male’ and ensure that the existing establishments are not run for profit and that education is provided as a government service.
The amendment bill was proposed after Male’ City Council (MCC) privatised the Ameer Ahmed School in the capital. However, plans to privatise the Maafanu School were scrapped following complaints from parents over high fees.
The Maldives Airports Company Limited (MACL) has said there has been no disruption to services at Ibrahim Nasir International Airport (INIA) after it resumed management of the site from infrastructure group GMR on Saturday (December 8 ) – a claim backed by several resort operators and airlines.
Indian-based GMR yesterday handed INIA over to the state-owned Maldives Airports Company Limited (MACL) after the Maldivian government had voided its concession agreement, giving the company seven days to leave the country.
The sudden eviction of the developer – which won a 25 year concession under the former government to manage and upgrade the airport – scraps the project, which at US$511 million was the single largest foreign investment in the Maldives.
Upon reclaiming management of the airport yesterday, MACL Managing Director Mohamed Ibrahim told Minivan News that the handover had gone “smoothly”, with INIA continuing to operate over the last 24 hours as it had done under GMR.
“We have the same staff and equipment here as before [the handover]. Two years back we handed over the same equipment to GMR and there has been no discontinuation of service,” he said.
As part the GMR’s concession agreement, aside from developing an entirely new airport terminal building, the company had also undertaken work to renovate and update INIA’s existing terminal structures and operations – including retail and baggage handling facilities.
With MACL once again managing the site, a senior services manager for one of the largest airlines presently flying to the Maldives told Minivan News that it had experienced “no issues at all” in terms of operating in and out of the country since the handover.
Similarly, the general manager of a resort in Male Atoll also stressed that there had been no disruptions to service.
“Certainly so far there has been no impacts on our arrivals or departures, things seem to have gone smoothly,” the general manager said.
Future direction
When contacted about the future for the airport post-GMR, the President’s Office today told Minivan News that no decision had yet been taken on when – or if – the country would look to tender a new privatisation agreement for the site.
“Nothing of that kind has been decided,” said President’s Office Media Secretary Masood Imad.
Asked as to what action would be taken over the existing structures put in place by GMR before work on its proposed new terminal was halted over a permit dispute earlier this year, Masood questioned why the President’s Office had been contacted over the technical “nitty gritty” of the airport.
“We don’t micromanage all aspects of the airport, these are questions for the Transport Ministry,” he said.
Development conference calls
Meanwhile, the religious Adhaalath Party, which forms part of the government coalition of President Dr Mohamed Waheed Hassan, today called for a national level conference to be held on how INIA should be developed and operated in future.
Speaking at a press conference, party President Sheikh Imran Abdullah told local media that the airport development should not be delayed, calling for a conference to be held to air opinions on how best to proceed in future – not ruling out foreign expertise if needed.
“All people involved in this sector should come together soon for a national conference, the result of which should be a vision of how the airport should be operated in the future,” he was quoted by Sun Online.
Sheikh Imran was not responding to calls from Minivan News at time of press.
In recent months, the Adhaalath Party has been among several key government-aligned parties working to oppose the GMR agreement.
Sheikh Imran has previously predicted there would be “some unrest and damage” should the GMR deal be annulled, but nonetheless urged people to come out and support the calls for nationalisation. The GMR deal was a 25 year concession agreement, with the airport still belonging to the government.
A state budget of Rf14.6 billion (US$946.8 million) for 2012 was passed by parliament today with Rf3.5 million (US$226,977) added through amendments proposed by opposition MPs.
Among the amendments passed today included proposals by the opposition Dhivehi Rayyithunge Party (DRP) to shift Rf300 million (US$19 million) from other items to local councils, increase funds for political parties from Rf11 million (US$713,000) to Rf14.5 million (US$940,337) and raise state benefits to the elderly from Rf2,000 (US$130) to Rf2,300 (US$148) to adjust for inflation.
The additional spending on political parties was proposed by Kelaa MP Dr Abdulla Mausoom in reference to the regulation on political parties, which stipulates that 0.01 percent of the state budget must be allocated for party finance.
An amendment proposed by Fares-Maathoda MP Ibrahim Muttalib to prevent privatisation of the Maldives Post Limited (MPL), State Electricity Company (STELCO), Island Aviation and the Housing Development Corporation (HDC) was passed after Speaker Abdulla Shahid cast the tie-breaking vote.
Of the five public companies proposed by the government, Muttalib’s amendment stated that the government could privatise only Maldives In-flight Catering (MIC).
A total of Rf750 million (US$49 million) was projected as revenue from privatising the state-owned enterprises.
Seven amendments proposed yesterday by Jumhooree Party Leader and Maamigili MP Gasim Ibrahim to scrap the privatisation plans on the grounds that it violated the Public Finance Act were not put for a vote after parliament’s newly-appointed Counselor-General Fathmath Filza advised that the government’s proposals were not unlawful.
Other amendments included proposals for the Ministry of Finance to provide detailed information of development programmes including selected islands, funding plans and schedules before next year’s budget debate commences.
Meanwhile over 50 new development projects were added by the budget committee, which also increased funding for independent institutions by Rf192 million (US$12.4 million) and included Rf100 million (US$6 million) as fisheries subsidies.
A report by the Human Rights Commission of the Maldives (HRCM) into Lale Youth International School on Hulhumale has recommended that the Education Ministry terminate its contract with Maldives-registered company Biz Atoll Pvt Ltd to manage Lale Youth International School, “and hand over management as soon as possible to a qualified party.
The Commission’s investigation had found that students had been “physically and psychologically abused, discriminated against and bullied,” the report stated, recommending “that police should investigate the physical and psychological abuse going on at the school as an urgent concern,” and “separate those suspected of physical abuse from the school’s students until the police investigation is concluded.”
The report also questioned the educational standards of the private school, observing that despite the “high fees” charged for students to attend, the school “has no laboratory for students preparing for the IGCSE” in 2011, the library “does not have books that students need”, and most of the Turkish teachers “do not know English and are therefore unable to teach.”
The government-run Fareediyya School was handed to Biz Atoll and a group of philanthropic Turkish businessmen in 2008, under an agreement made between Biz Atoll and the Education Ministry during the former administration.
In May this year, Minivan News reported concerns raised by parents and staff that the school was being used as ‘a front’ for other activities, highlighting anomalies such as ‘phantom’ foreign teachers who were being paid but had never reported to work, students being charged an assortment of fees arbitrarily, teachers with missing or fraudulent qualifications, and significant pay discrepancies between Turkish and other foreign staff.
Shortly after the Minivan News report was published, (now former) Principal of Lale Serkan Akar attempted to leave the country, leading to the confiscation of his passport. On a second attempt to leave he was taken into police custody and is currently in the criminal court facing assault charges for allegedly strangling and whipping a child with a belt, charges he has denied.
Since the story was published, Minivan News has learned that website has been blocked the school’s web filter.
The HRCM report also recommended that the school move to “dismiss employees with criminal records” and amend the school’s child protection policy to ensure that “inappropriate persons” did not work with students, and amend employment contracts “to allow adequate disciplinary action” against those suspected of physical abuse.
HRCM further recommended that Biz Atoll immediately submit the credentials of foreign teachers to the Maldives Qualification Authority (MQA) for approval, and stipulate that foreign teachers present certification of English qualification such as IELTS or TOEFL – and dismiss those teachers who did not meet the criteria listed in regulations governing private schools.
HRCM also suggested that the school establish a laboratory and library as required in its agreement with the Education Ministry, and hire a full-time librarian. It should also “immediately cease the practice of giving the same examination paper to students until they pass” and “stop charging additional fees other than those set by the Ministry” while ensuring that those fees “are commensurate to the quality of education offered.”
The HRCM report also raised concerns about the school’s adherence to employment practices in the Maldives, noting “allegations of discrimination and mistreatment of Asian and Maldivian staff”. It recommended the school establish both a school board, as required by law, and a mechanism for teachers to resolve employment issues.
HRCM also recommended the school formulate a pay scheme in accordance with employment laws “to eliminate discrimination and ensure fairness and transparency”, as well as “reimburse employees if a deposit has been subtracted from their salaries to allow them to keep their passports.”
Furthermore, the Education Ministry should formulate regulations governing international schools “to ensure supervision and monitoring by the ministry as a regulatory body”, and “establish guidelines to conduct follow-ups to supervision reports.”
“As the school was not handed over to the proprietor in a transparent manner and because the Education Ministry has not undertaken adequate efforts to improve matters at the school, and since corruption has been noted, these cases should be investigated,” HRCM’s report concluded.
HRCM has recommended the government repossess Lale School from Biz Atoll
Response
Managing Director of Biz Atoll, Abdulla Jameel, said the company had read the report “and are reviewing the necessary actions we have to take.”
“We will bring changes to the school,” he promised, noting that a new principal would be starting “quite soon”.
The arrangement with the Turkish funders of the school would “definitely” continue, he noted.
Regarding HRCM’s recommendation that the school be repossessed from Biz Atoll and given to “a qualified party”, Jameel said the decision was “up to the government”.
“I respect the professional work of HRCM, but at the same time I’m disappointed it has mentioned nothing positive about the school,” he said, noting its reputation for “academic excellence.”
“Given the opportunity, we will continue to manage the school and try our best to make it the number one school in the Maldives.”
Jameel would not comment on the child abuse case pending against the former principal Akar.
Deputy Minister of Education Dr Abdullah Nazeer said the Education Ministry “received the report on Thursday” and was now seeking legal advice from the Attorney General’s office concerning the repossession of the school.
“We don’t agree with all the findings [in the HRCM report] – there are certain issues we need to refute from the ministry’s side, and we have communicated this in writing,” he said. “It was very unfortunate the report was not amended [before it was released].”
“The word used repeatedly to describe the Education Ministry is ‘irresponsible’,” he said, “[but] we were the ones who first contacted police, and based on that HRCM investigated the school.”
Police had yet to find evidence to support any allegations of abuse, he claimed.
The report was critical of the ministry’s decision to review the contract with Biz Atoll during the investigation, Dr Nazeer noted.
“We added amendements to the earlier contract (requesting a new principal in three months and including a termination clause),” he explained.
There were only “very general written regulations” governing the ministry’s role in supervising privately-owned and operated schools, he noted. “The regulations do not specifically say the government should intervene,” he said.
The Education Ministry was already seeking to resolve the employment issues at the school Dr Nazeer said, and had sent a letter to Biz Atoll on the subject
“We also had a complaint from a parent that the former Principal [Serkan Akar] was still accessing the school grounds,” he said. “We also wrote a letter to Biz Atoll saying it was not appropriate for a person currently involved in a court case concerning child abuse to be accessing the school.”
Dr Nazeer also noted that a delegation of officials from the Turkish government and the business community, had arrived in the Maldives and was currently meeting members of parliament to discuss the matter together with the the Turkish Consular General in Male’.
“I can’t comment on the delegation as I am yet to have a meeting with them,” Dr Nazeer said. “I don’t know what they will discuss.”
“As far as we are concerned, we are waiting for the Attorney General’s office to determine the gravity of the findings in the report, and if they agree, provide advice for terminating the contract.”
Download the full HRCM investigation report (Dhivehi)
Deputy Leader of the Maldives’ main opposition Dhivehi Rayyithunge Party (DRP), Umar Naseer, has said that the government’s decision to privatise Male’ International Airport is “ridiculous.”
”Privatisation is a good policy, but there should be limitations,” Umar said. ”There are many disadvantages that Maldivians will face in the long term future if Male’ International Airport is privatised.”
He claimed that if the airport was privatised, the Maldives would not have the authority to decide which flights would be permitted to land at the airport.
”That means, if [the operators] allowed it, an Israel flight can come and stop over after bombing Arab countries,” Umar claimed.
He also claimed that “more than 1500 jobs” would be lost.
”More than half the Maldivians working in the Airport will lose their jobs if a foreign company takes over it,” Umar predicted. ”There are currently more than 3000 Maldivians working there.”
He said that if foreigners replaced Maldivians working in the airport, “income which was earned by the Maldives would go to the hands of foreigners.”
”Retail shops in the airport will also belong to foreigners,” he said. ”So money coming into the county will flow out of the country because foreigners are earning it.”
Umar suggested that the airport could charge a US$25 airport development fee for each passenger, the same amount GMR has proposed to collect.
”If that US$25 charge is implemented it will generate an extra US$25 million annually, because more than 500,000 tourists come to the Maldives each year and could be charged upon arrival and departure – which means US$50 from each person could be collected.”
He claimed the government was pushing ahead with the privatisation deal because “there are no successful businessmen in the government.”
”President Nasheed did not even know how to run a carpentry business. In 1990 his father gave him the business, and the president bankrupted it,” Umar alleged.
He said that “any economist” would consider the privatisation deal “ridiculous”.
Today the parliament is voting on whether to amend a Financial Bill stating that any state asset can only be sold or rented by an imposed law approved by parliament.
The signing of the privatisation deal with GMR-KLIA was derailed at the last minute yesterday, in front of assembled press, when representatives of the Maldives Airports Company Limited (MACL) reportedly disagreed over who would sign the document.
Three MACL board members have now reportedly resigned after disputing the government’s decision to privatise the airport.
Press Secretary for the President, Mohamed Zuhair, said he had not officially received confirmation.
”I also heard something like that unofficially,” he said. ”I have asked for the minutes of the last MACL board meeting.”
Minister for Civil Aviation Mahmood Razee, also Chairman of the Privatisation Committee, said he had no information regarding the matter.
”All the board members agreed to privatise the airport,” said Razee. ”If they are having disputes, that might be an issue concerning individuals.”
MACL board members Shaz Waleed, Moosa Solih, and Chairperson Ibrahim Nooradeen, declined to comment.
The vote on the Financial Bill will go before parliament today.
Indian company GMR Infrastructure has said it is confident it will win the bid for Male’ International Airport, after offering US$78 million (Rf1 billion) upfront.
“Considering the offers, we will get the highest marks. We will make the payments and take over the operations of the airport in March,” newspaper Haveeru reported one official as saying.
Finance Minister Ali Hashim disclosed the bids at a function today.
Bids at a glance:
GMR-KLIA: US$78 million upfront and one percent of the total profit in the first year (until 2014), and 10 percent of the profit from 2015 to 2035. GMR would also pay 15 percent of fuel trade revenues to the government in the first four years and 27 percent from 2015 to 2035.
Turkish TAV Airports Holdings Company and French Airports De Paris: US$7 million (RF89.95 million) upfront payment, with 31 percent of the total profit until 2014 and 29.5 percent from 2015 to 2035. The consortium offered 16.5 percent of the profits from fuel trade.
Swiss Flughafen Zurich AG and GVK Airport Developers offered US$27 million (Rf346.95 million), along with 27 percent of the total profit in the first four years and nine percent of the profit from 2015 to 2035. The consortium said it would pay nine percent of fuel revenues to the government.
The Jumhoory Party (JP), led by Gasim ‘Buruma’ Ibrahim, has meanwhile announced that it will conduct a ”special gathering” to express disapproval at the government’s decision to privatise Male’ international airport.
Ali Shareef, secretary general of JP, said the special gathering would be conducted in collaboration with other NGOs and political parties.
”Male’ international airport was built by our forefathers and it is one of the assets of the state,” said Shareef. ”There are many concerns over privatising the airport, and we want to express our opinions during this special gathering.”
Shareef said the transaction could cause disruption and “national security issues”, and would decrease government revenue.
‘There is no transparency in this transaction,” he said. ”We are very concerned over the issue.”
He said that the gathering would be “a peaceful gathering.”
”We want to gather people and make them aware of what’s happening, and tell them the consequences of it,” he said. ”There is the potential for many problems if foreigners control the country’s main entrance.”
He said that the venue, date and time of the gathering was yet to be advised.
”We are in discussion with other parties involved and will decide the venue and date very soon,” he said.
Moosa Rameez, Spokesperson of JP, said members of the party and people of the country were concerned over the issue.
”Male’ international airport is a asset of the state which was built by the people,” said Moosa. ”We do not want it to be given to a foreign party.”
The Dhivehi Rayyithunge Party (DRP) has also expressed concerned over the issue.
Vice President and Spokesman for the opposition Dhivehi Rayyithunge Party (DRP) Ibrahim Shareef said the party will not honour “shady deals made according to vested interests” if the party comes to power in 2013, referring to the government’s privatising of the country’s airports.
Shareef also expressed concern that the government’s efforts to privatise state assets, such as the airport, were not occurring with parliament approval.
Shareef said the airport was currently “making the government money”, and the asking price it had set “is so low. [The deal] is riddled with corruption,” he alleged. “If the government has nothing to hide, it has nothing to lose from asking parliament.”
Minister for Civil Aviation and Chairman of the Privatisation Committee Mahmoud Razee recently told Minivan News that ”as far as I understand we are proceeding according to the public finance act which is currently in force. Parliament legislates but actual delivery is up to the executive.”
It is the opposition’s “prerogative to say what they wish, but the reason why experienced and reliable companies are involved in this bid is because they believe that this is a viable project.”
The Male’ airport privatisation deal would be for 25 years, extendable by another 10 years, and would require a minimum level of investment towards upgrading the airport in the first three years to meet a certain level of service.
This week government shortlisted three parties to run Male’ International airport and has it would select one by the end of the week.
The parties include Aéroports de Paris Management Company of France (ADP) and Turkish company TAV Airports Holding Company, Indian company GVK Airport Developers in partnership with Swiss Flughafen Zurich AG, and GMR-KLIA.
Press secretary for the president, Mohamed Zuhair did not respond to Minivan News at time of press.
The Jumhooree party, lead by Gasim Ibrahim, MP for Maamingili and one of the richest men in the Maldives, is protesting against government plans to privatise the Male’ International Airport.
The party will issue a joint declaration with other political parties and NGOs regarding the matter. The party, together with other political parties, will also hold a demonstration against privatisation. The decision was made during its council meeting held on 22 June 2010.
The airport was a major people’s investment and a key asset, said Gasim who claims that the money needed for the development could be easily raised through financial institutions without privatisation. Gasim also mentioned security concerns for the airport.
Gasim also said such decisions should not be taken just to get some money for the government budget. He warned that once the term of the contract expires, the company would sell the airport back to government at a price that government can never pay, and the company would own the airport forever.
Gasim called for people to object the decision by the government. The Jumhooree party has sent a letter to President Nasheed informing him of its concerns, and the Jumhooree party has also made a submission to the Majlis about the matter.
Vice President and Spokesman for the opposition Dhivehi Rayyithunge Party (DRP) Ibrahim Shareef has said the DRP will not honour “shady deals made according to vested interests” if the party comes to power in 2013, referring to the government’s privatising of the country’s airports.
The government has shortlisted three parties to run Male’ International airport and will select one over the next 3-4 days.
The parties include Aéroports de Paris Management Company of France (ADP) and Turkish company TAV Airports Holding Company, Indian company GVK Airport Developers in partnership with Swiss Flughafen Zurich AG, and GMR-KLIA.
Shareef expressed concern that the government’s efforts to privatise state assets, such as the airport, were not occurring with parliament approval.
“Parliament is in the process of amending a public finance bill that will stipulate the government has to put these decisions before parliament,” he said.
“If the governing party will not accept this, then the new [DRP] government will not honour this type of shady deal. We will not honour shady deals – only lawful deals according to parliament.”
Shareef said the airport was currently “making the government money”, and the asking price it had set “is so low. [The deal] is riddled with corruption,” he alleged. “If the government has nothing to hide, it has nothing to lose from asking parliament.”
Minister for Civil Aviation and Chairman of the Privatisation Committee Mahmoud Razee told Minivan News that “as far as I understand we are proceeding according to the public finance act which is currently in force. Parliament legislates but actual delivery is up to the executive.”
It is the opposition’s “prerogative to say what they wish, but the reason why experienced and reliable companies are involved in this bid is because they believe that this is a viable project.”
The Male’ airport privatisation deal would be for 25 years, extendable by another 10 years, and would require a minimum level of investment towards upgrading the airport in the first three years to meet a certain level of service.
“A certain percentage of the service charge will to go to the government, and in addition [the operator] will also prescribe a percentage of the revenue,” Razee said.
Within three years, the government would expect a new terminal on the eastern side of the airport islands, up to international standards, and the completion of aero bridges (passenger walkways), effectively doubling the annual capacity of the airport from 1.6 million passengers to 3 million passengers.
The intention was to enable fast growth of the country’s tourism market, he explained.
“It’s bound to grow – particularly the Chinese and Indian markets,” Razee said. “We’ve already received applications from Air Asia and several Chinese carriers.”
Meanwhile, the government yesterday signed an agreement with Dubai-based company Supreme Fuel Trading to manage Gan airport for 30 years, in an agreement intended to hasten development of the southern region of the Maldives by allowing 747 class aircraft to land.
“At the moment the largest aircraft that can land [in Gan] is the 767 and the Dash 100-200,” Razee said.
The government has also received a proposal from GMR to upgrade Hanimadhoo airport and increase tourist traffic to the northern atolls.
For a country dependent on international tourist arrivals, the airports are the ventricles of the Maldives economy. Addressing concerns that privatising them would loosen the government’s control over these critical assets, Razee observed that all the interested parties being considered “have experience running many international airports”.
“Security will continue to be overseen by the Maldives National Defence Force (MNDF), and the airport will be certified by civil aviation authorities irrespective of who is running the airport,” he explained.
Tourism in the Maldives is showing signs of steady growth, with an increase of 20 percent in the first five months of 2010 compared to last year.
Arrivals for first five months of this year were seven percent higher than for the same period during the boom year of 2008.
Meanwhile, the 91 resorts in country had a steady occupancy rate of 82.3 percent.
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