Tag: saudi arabia

Saudi organisation to spend MVR 1.6 million to spread Quranic teachings in Maldives

Saudi Arabian organisation Al Hayat al Alamiya li Tadabbur al Quran ul Karim has decided to run a program to promote Quranic studies in the Maldives.

Delegates from the organisation signed a memorandum of understanding with the Ministry of Islamic Affairs on Sunday night, under which they have pledged to spend MVR1.6 million for related projects.

According to Islamic Minister Sheikh Mohamed Shaheem Ali Saeed, the organisation will assist the Maldives in the field in numerous ways – including the establishment of a distance study program at the Centre of Quran and the establishment of a system where modern facilities can be used to research Quranic disciplines.

Providing information about the visit of the eleven delegates from the Saudi organisation, Shaheem stated that they have pledged to further develop the “Kulliyath Ul Madhrasathul Dhiraasaa” in the Maldives and to translate their literature into the Maldivian Dhivehi script.

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State developments to recommence by 2014 after Nasheed administration’s bills settled: President Waheed

President Dr Mohamed Waheed has claimed the country will be in a position to restart development projects next year as a result of his government repaying millions of US Dollars in bills incurred through the previous administration’s borrowing.

The government announced it would be suspending state-financed development projects in April after exhausting its annual budget for recurrent expenditure (including salaries, allowances and administration costs) in the first quarter of 2013.

The current government has continued throughout the last year to try and establish loan and credit facilities with foreign nations and banks for the stated purpose of “budget support”.

However, speaking during a campaign rally in Noonu Atoll this weekend, President Waheed was quoted by Sun Online as claiming that unpaid bills arising from the government of former President Mohamed Nasheed had now been settled, with no expense expected to be carried over to the 2014 budget as result.

“We have been through a very difficult time over the past two years. We could not do several things, not because we didn’t want to do them. The previous government left the country bankrupt,” he said during the rally.

“The money necessary to buy medicine for our children, the money necessary to repair the school building, the money necessary to repair the harbour of this island – all this money had to be repaid, the unpaid bills for work done by citizens, had to be paid.”

Finance Minister Abdulla Jihad and Minister of Economic Development Ahmed Mohamed were not responding to calls today, while Minivan News was awaiting a response from President Waheed’s Senior Advisor Teresa Wells at time of press.

Former administration’s borrowings

Ahmed Nazim, head of the Parliamentary Financial Committee and MP for the government-aligned Progressive Party of Maldives (PPM), said that former President Nasheed has undertaken “short-term borrowings” during his time in office.

He added that this borrowing included “US$200 million bond” sold to the Indian government with a maturity of one year that was later extended to 24 months.

Nasheed controversially resigned from office on February 7, 2012, following a mutiny by sections of the police and military.

Following the change in government, Nazim said that the Waheed administration had paid US$100 million and “settled the full payment” after Indian authorities requested the country be reimbursed by February 2013.

“Since this was a substantial component of the total foreign debt, [foreign borrowing] has come down because of this,” he said.

Asked whether the committee believed President Waheed had managed to reduce total state borrowing and spending since coming to power, Nazim said he would respond by tomorrow ( August 18 ) after having time to study relevant statistics.

In 2012, President Waheed reportedly said he would not resort to borrowing from foreign governments in order to finance government activities.

However, the government has since sought a number of foreign loans to supplement the state budget.

Earlier this month, the state requested parliament approve a US$29.4 million loan from the Bank of Ceylon to finance the 2013 budget approved by parliament.

In July, the President’s Office confirmed discussions had been held with Saudi Arabia, seeking a long-term, low interest credit facility of US$300 million to help overcome “fiscal problems” facing the nation.

Supplementary finance plans

Finance Minister Jihad claimed back in December 2012 that the MVR 15.3 billion (US$992 million) state budget approved by parliament might not last until the end of 2013 – requiring supplementary finance for the state.

In April 2013, Jihad sought authorisation from parliament to divert MVR 650 million (US$42 million) allocated for infrastructure projects in the budget to cover recurrent expenditures.

Jihad warned that government offices and independent institutions might be unable to pay salaries or electricity and phone bills if funds were not transferred from the MVR 1.8 billion (US$117 million) Public Sector Investment Programme (PSIP).

“Reckless financial management”: MDP

In July, Maldivian Democratic Party (MDP) MP and Spokesperson Hamid Abdul Ghafoor said that the heavily partisan parliament now effectively controlled state finances as a result of former opposition politicians – now part of President Waheed’s government – imposing tighter spending restrictions on former President Mohamed Nasheed’s administration.

The opposition party also accused the current government of reckless financial management, pointing to a potential US$1.4 billion compensation bill facing the state after it decided last year to abruptly terminate a US$511 million airport development contract agreed with infrastructure group GMR.

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Budget shortfall leads Maldives to seek $US29.4 million Bank of Ceylon loan

President Mohamed Waheed has requested parliament approval to obtain a US$29.4 million loan from the Bank of Ceylon to finance the government’s budget and manage cash flow.

The Ministry of Finance and Treasury is seeking to secure the loan as a way to “enforce” the 2013 budget approved by parliament, stated a letter from the President’s Office read during a parliament session held on Tuesday (August 13).

The Finance Ministry informed the President’s Office that the Bank of Ceylon would provide the Maldives’ government a loan of US$29.4 million, at a six percent interest rate, to be repaid within six years in monthly payments of US$490,000, according to local media.

The Government of Maldives believes the short term loan offers “good terms” and will provide the support necessary to finance the state budget and cash flow. The President’s Office letter also noted that the graduation of the Maldives from least developed country status has made it “extremely difficult” to obtain loans with low interest rates.

Previously, upon parliament’s approval of the 2013 budget, it was agreed that the state could not take out loans with interest rates that exceed seven percent.

The President’s Office Bank of Ceylon loan request has been forwarded to parliament’s finance committee.

Foreign loans for “fiscal problems”

In 2012, President Waheed reportedly said he would not resort to borrowing from foreign governments in order to finance government activities.

“I will not try to run the government by securing huge loans from foreign parties. We are trying to spend from what we earn,” he was reported to have told the people of Nilandhoo Island.

However, the government has sought a number of foreign loans to supplement the state budget.

Last month, the government confirmed it was in discussions with Saudi Arabia, seeking a long-term, low interest credit facility of US$300 million to help overcome “fiscal problems”.

President’s Office Spokesperson Masood Imad confirmed President Waheed had held discussions with senior Saudi Arabian dignitaries including Crown Prince Salman bin Abdulaziz Al Saud over the proposed credit facility, during his recent visit to the country.

“The president has initiated the talks so it is just a matter of working out the details now,” Masood said, explaining that the funds would be used for “budget support” and development projects.

In September 2012, President Waheed told Reuters that China will grant the Maldives US$500 million (MVR7.7billion) in loans during his state visit to the country.

The loans, equal to nearly one quarter of the Maldives’ GDP, would include $150 million (MVR2.3billion) for housing and infrastructure, with another $350million (MVR5.4billion) from the Export-Import Bank of China, reported Reuters.

China’s aid was hoped to provide an immediate salve to the government’s financial ailments, which at the time included a MVR 9.1 billion ($590million) budget deficit.

Additionally, the government was seeking a US$25 million state loan from India required to support the state budget for the remainder of 2012. The loan was delayed after the Maldives’ government failed to submit the requested paperwork, a diplomatic source from the Indian High Commission in the Maldives previously revealed.

The US$25 million loan was agreed as part of the $US100 million standby credit facility signed with Prime Minister Manmohan Singh in November 2011.

It is not clear whether the foreign loans from India and China have been received, or whether parliament has approved the state obtaining loans from Saudi Arabia or Sri Lanka’s Bank of Ceylon.

Finance Minister Abdulla Jihad as well as Deputy Speaker, Parliamentary Financial Committee Head, and People’s Alliance (PA) MP Ahmed Nazim were not responding to calls at time of press.

Failure to fill budgetary gaps

Finance Minister Abdulla Jihad claimed back in late December 2012 that the MVR 15.3 billion (US$992 million) state budget approved by parliament might not last until the end of 2013 – requiring supplementary finance for the state.

In April 2013, Jihad sought authorisation from parliament to divert MVR 650 million (US$42 million) allocated for infrastructure projects in the budget to cover recurrent expenditures.

Jihad warned that government offices and independent institutions might be unable to pay salaries orelectricity and phone bills if funds were not transferred from the MVR 1.8 billion (US$117 million) Public Sector Investment Programme (PSIP).

Earlier in April, Jihad also announced that the government had decided to delay all new development projects that were to be financed out of the state budget due to shortfalls in revenue.

The decision to suspend new projects was revealed after Housing Minister Dr Mohamed Muiz told local media at the time that he had been instructed not to commence any further infrastructure projects included in the 2013 budget, such as harbour construction or land reclamation.

“Reckless financial management”: MDP

In July, Maldivian Democratic Party (MDP) MP and Spokesperson Hamid Abdul Ghafoor said that the heavily partisan parliament now effectively controlled state finances as a result of former opposition politicians – now part of President Waheed’s government – imposing tighter spending restrictions on former President Mohamed Nasheed’s administration.

Ghafoor argued that with the MDP failing to recognise the legitimacy of the present government due to the controversial transfer of power last February, he did not believe there would be support for approving the credit agreement with Saudi Arabia due to the government’s existing extravagant borrowing levels.

The party accused the current government of reckless financial management, pointing to a potential US$1.4 billion compensation bill facing the state for deciding last year to abruptly terminate a US$511 million airport development contract agreed with infrastructure group GMR.

The compensation claim amounts to four times that of the Maldives’ current state reserves should it be awarded by a Singapore court overhearing arbitration hearings between GMR and the government.

“Since we do not see this government as legitimate, we do not see why we should support them,” he said. “They have put us into debt with their handling of the airport development and another bill for a border control system.”

Earlier in July, Malaysian security firm Nexbis invoiced the Department of Immigration and Emigration for US$2.8 million (MVR 43 million) for the installation and operation of its border control system technology in the country, in line with a concession agreement signed in 2010.

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President seeking US$300 million credit facility from Saudi Arabia for “budget support”

The government has confirmed it is in discussion with Saudi Arabia, seeking a long-term, low interest credit facility of US$300 million to help overcome “fiscal problems”.

President’s Office Spokesperson Masood Imad confirmed President Waheed had held discussions with senior Saudi Arabian dignitaries including Crown Prince Salman bin Abdulaziz Al Saud over the proposed credit facility, during his recent visit to the country.

“The president has initiated the talks so it is just a matter of working out the details now,” Masood said, explaining that the funds would be used for “budget support” and development projects.

The opposition Maldivian Democratic Party (MDP) has meanwhile said the government would still be required to secure parliamentary approval for the funding.

MDP MP and Spokesperson Hamid Abdul Ghafoor said that the heavily partisan parliament now effectively controlled state finances as a result of former opposition politicians – now part of President Waheed’s government – imposing tighter spending restrictions on former President Mohamed Nasheed’s administration.

Ghafoor argued that with the MDP failing to recognise the legitimacy of the present government due to the controversial transfer of power last February, he did not believe there would be support for approving the credit agreement with Saudi Arabia due to the government’s existing extravagant borrowing levels.

The party accused the current government of reckless financial management, pointing to a potential US$1.4 billion compensation bill facing the state for deciding last year to abruptly terminate a US$511 million airport development contract agreed with infrastructure group GMR.

The compensation claim amounts to four times that of the Maldives’ current state reserves should it be awarded by a Singapore court overhearing arbitration hearings between GMR and the government.

“Since we do net see this government as legitimate, we do not see why we should support them,” he said. “They have put us into debt with their handling of the airport development and another bill for a border control system.”

Earlier this month, Malaysian security firm Nexbis invoiced the Department of Immigration and Emigration for US$2.8 million (MVR 43 million) for the installation and operation of its border control system technology in the country, in line with a concession agreement signed in 2010.

Immigration Controller Dr Mohamed Ali confirmed at the time that Nexbis had submitted a bill seeking charges for the period its system has been in use, as work continues on replacing the Malaysian company’s border controls with new technology provided by the US government.

Development delays

In April this year, Finance Minister Abdulla Jihad sought authorisation from parliament to divert MVR 650 million (US$42 million) allocated for infrastructure projects in the budget to cover recurrent expenditure.

Jihad warned that government offices and independent institutions might be unable to pay salaries or electricity and phone bills if funds were not transferred from the MVR 1.8 billion (US$117 million) Public Sector Investment Programme (PSIP).

Earlier the same month, Jihad also announced that the government had decided to delay all new development projects that were to be financed out of the state budget due to shortfalls in revenue.

The decision to suspend new projects was revealed after Housing Minister Dr Mohamed Muiz told local media at the time that he had been instructed not to commence any further infrastructure projects included in the 2013 budget, such as harbour construction or land reclamation.

Both Finance Minister Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at time of press.

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Former President Nasheed granted Saudi visa for Umra pilgrimage

Former President Mohamed Nasheed has been granted a visa to visit Saudi Arabia to conduct an Umra pilgrimage, reports local media.

The Saudi Embassy in Sri Lanka requested Nasheed ‘hand over’ his passport for visa processing and the request has been forwarded to the former president’s office, said State Foreign Minister Hassan Saeed.

Parliament Speaker Abdulla Shahid and former Attorney General Ahmed Ali Sawad have also been granted visas, according to local media.

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President Waheed holds talks with Saudia Arabian Crown Prince

President Dr Mohamed Waheed met with Saudia Arabia’s Crown Prince Salman bin Abdulaziz Al Saud on Thursday (July 11) as part of an official visit to the country.

The visit will also  coincide with the president performing an Umra pilgrimage.

During his meeting with the crown prince, which was also attended by Saudi Arabian Minister of Finance Dr Ibrahim Abdul Aziz Al-Assaf, President Waheed discussed strengthening bilateral ties between the two nations.

Dr Waheed also provided an update on the current economic and political situation within the Maldives, according to the President’s Office website.

President Waheed’s visit to Saudi Arabia follows reports that his predecessor, former President Mohamed Nasheed, had this week had his own request to perform Umra rejected by Saudi authorities.

Local media in the Maldives reported that Nasheed was denied a visa by the Saudi Arabian government, however former Foreign Minister Ahmed Naseem, who  was with the former president at the time, refuted the claims as inaccurate.

“I’ve been in constant touch with Saudi [Arabian government] Royal Protocol officials and Nasheed’s visa has not been rejected. They have not said anything like that,” the former Foreign Minister told Minivan News Wednesday (July 10).

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President Waheed, former President Nasheed announce trip to Saudi for Umra pilgrimage

President Mohamed Waheed departed on an official visit to Saudi Arabia today (July 10), a day after local media reported that former President Mohamed Nasheed’s request to perform Umra was rejected by Saudi authorities.

Nasheed, along with Parliamentary Speaker Abdullah Shahid and former Attorney General Dr Ahmed Ali Sawad, are currently in Sri Lanka waiting for their visas to Saudi Arabia to process. They will be conducting Umra, a pilgrimage to Mecca that can be undertaken at any time of year and is highly recommended but not compulsory in Islam.

Local media in the Maldives reported that Nasheed was denied a visa by the Saudi Arabian government, however former Foreign Minister Ahmed Naseem, who is currently in Sri Lanka with Nasheed, Shahid, and Sawad, refuted the claims as inaccurate.

“I’ve been in constant touch with Saudi [Arabian government] Royal Protocol officials and Nasheed’s visa has not been rejected. They have not said anything like that,” the former Foreign Minister told Minivan News today.

“Nasheed’s visa to Saudi Arabia is being processed, it’s just a matter of time. The Foreign Ministry visa application was submitted very late, I don’t think even two weeks have passed,” said Naseem.

He believes there are a number of possible explanations for the delay in visa processing, but emphasised that there was absolutely no information coming from the Saudi Royal Protocol that Nasheed’s visa had been rejected.

“It’s taking awhile because so many presidents and former presidents [from all over the world] are traveling for Umra,” said Naseem. “[Although] it’s very likely Saudi Arabia doesn’t want Nasheed and Waheed there at the same time.”

“The whole thing has been blown out of proportion. Someone from the [Maldives] ‘baghee’ (‘traitor’) government is spreading misinformation to try and gain political capital. However, this will backfire because it’s not good to do things like this,” he declared.

“President Nasheed is a very religious person, he knows [Islam] well. Because he practices the tenets of Islam, [he knows] that going for Umra is also important,” he noted.

“If anyone is trying to prevent Nasheed from Umra it’s very bad, [fellow] Muslims should not be doing anything to obstruct any Muslim [from Islamic worship],” he continued.

Naseem said he did not believe that despite the coincidental timing of President Mohamed Waheed’s trip to Saudi Arabia, the President was intentionally obstructing Nasheed’s trip.

“Waheed is not fully informed of Islamic things, it is unlikely, but you can never know. He’s a traitor to the country and could be up to anything,” said Naseem.

Waheed’s visa to visit Saudi Arabia was issued at 5:00pm yesterday, according to Naseem.

He also noted that the Maldives’ government should be enabling and assisting its citizens to undertake religious pilgrimages.

“Infidels within the government of Maldives are not doing enough to facilitate these types of trips,” Naseem asserted.

However, an official statement from Nasheed’s spokesperson Mariya Ahmed Didi contended there had been deliberate obstruction by the Maldives’ government to obstruct Nasheed’s Umra pilgrimage.

“As we are hearing that some politicians are trying to obstruct the President’s Umra trip, the President is very saddened by this,” said Didi. “One Muslim trying to obstruct the worship of another Muslim is not something that should be done under any circumstances. We appeal for an end to this hassling.”

Meanwhile, President Waheed departed for an official visit to Saudi Arabia today to meet with top government officials, expedite some of the requests the Maldives has made to the Saudi government, and likewise perform an Umra pilgrimage.

Prior to his departure, Waheed stressed that it was difficult for him to comment on why Nasheed has not yet been issued a visa to Saudi Arabia.

“If I say anything it will just lead to speculation. How can I know something that they even don’t know?” said Waheed.

Additionally, he insisted that the government would not stymie Nasheed’s Umra pilgrimage.

“We will do everything we can to get a visa for him,” said Waheed.

Ministry of Foreign Affairs responds

Amid the conflicting reports about Nasheed’s visa obstruction and subsequent denial, the Maldives’ Consular Service Department of the Ministry of Foreign Affairs issued a statement today detailing the visa application protocol.

“1 – Upon receiving an SMS from the Minister to the Consular Department, informing that former President Mohamed Nasheed and Speaker of Parliament Abdulla Shahid were to take part in Umra this year, the Department contacted the parliament secretariat and inquired as to how Speaker Shahid wanted to obtain the visa to Saudi Arabia,” reads the statement.

“Also, the visa application form required by Saudi Arabia was shared with the protocol department in order to send the form to the office of former President Nasheed. In the meantime, discussions were carried out between the Ministry and the Maldivian High Commission in Colombo regarding the procedures involved in obtaining Umra visas for state dignitaries.

“The Ministry also on repeated occasions requested the speakers bureau of the parliament secretariat to return the filled visa application as soon as possible.

“2 – The Ministry received the completed visa application forms on July 1, 2013. On the very same day, the forms were sent in mail packets to Colombo. Also the details of persons seeking the Umra visa were also shared with Maldives High Commission in Colombo via email.

“3 – The Maldives High Commissioner in Colombo had discussion with Saudi Arabian Ambassador to Maldives about the visa. The Saudi Ambassador said that visas for VIP persons are processed after receiving permission from the Saudi Royal Palace. Therefore, he said that permission must be sought through the Saudi Ministry of Foreign Affairs. The Saudi Ambassador to Maldives is currently working on obtaining the stated permit from the Royal Palace. The Maldives High Commission had informed the [Foreign Affairs] Ministry on July 3, 2013 that Saudi Ambassador will inform them as soon as permission is received.

“4 – The information given by the Maldives High Commission in Sri Lanka to the Ministry was shared with the Saudi Embassy on the same day. A request was also made to the Embassy to speed up the process to obtain the permit. In response, the Embassy informed the Ministry that it was working on to speed up the process and said that Saudi Foreign Ministry was waiting for the word from Saudi Royal Palace,” the statement concluded.

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Two hundred Maldivians miss out on Hajj pilgrimage after Saudi slashes quota

Two-hundred Maldivians will miss out on the annual Hajj pilgrimage this year after the Saudi Arabian government reduced the quota for Maldives from 1,000 to 800.

Islamic Minister Sheikh Mohamed Shaheem Ali Saeed said at a press conference yesterday (June 17) that the Saudi government communicated the decision to the ministry this week.

According to local media reports, Shaheem explained that the Saudi government reduced the quota as a result of ongoing work to expand the area around the Kaaba in Mecca.

Consequently, Shaheem added, only 22,000 people would be able to perform the tawaf (circling the Kaaba) in one hour compared to 48,000 in the past.

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State produces evidence and witnesses against Maleesha Hajj Group owner

The Prosecutor General has produced witness and evidence obtained through police investigation against Ismail Abdul Latheef, the owner of the ‘Maleesha Hajj Group’.

Latheef is accused of fraudulently obtaining funds from Maldivians who paid his company to go to Mecca last year to perform the obligatory Hajj pilgrimage.

According to the local media, the prosecution produced the evidence of 87 persons who were defrauded, two persons who worked for Maleesha who collected the funds from people, and bank statements belonging to Latheef.

Latheef’s lawyer told the court that the Maleesha Hajj Group was not on the list of local Hajj Groups selected by the Islamic Ministry to send people to Mecca, and said it had not up to date explained why the Maleesha Hajj Group was not permitted this time while it had been the previous two years.

The lawyer told the judge that the Maleesha Hajj Group did try to take the people through Sri Lanka because the Maldives did not allow it, and said Latheef and his family was still trying to find a way to send those people who had paid the company.

Latheef’s lawyer also said he would explain how the funds collected from the people were used.

Police began searching for the 42 year-old in late September after it was alleged that he had defrauded 175 people of MVR 12 million (US$778,000), after they made payments to the company.

Latheef was reported to police after people who had made payments realised that the group’s office had been closed for days without any response or notification.

On October 2, Interpol issued a red notice to locate and apprehend Latheef. He was arrested by Sri Lankan police while he was in the Mount Lavinia Hotel in Colombo.

Attending the Hajj is one of the five pillars of Islam. Clients of the company were not able to go to Mecca this year to perform the religious obligation.

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