Govt. recognizes valuable work of VSO

Government has recognized the valuable contribution of Voluntary Service Organization (VSO) Maldives during a special function held at Youth Centre yesterday, according to foreign ministry.

The function was held to mark the end of 27 years of partnership between the Government of Maldives and VSO. The function also marked the closing of VSO Maldives program scheduled for early next year after its long and successful operations in the country.

Ambassador Abdul Azeez Yoosuf, speaking as the guest of honor noted the valuable contribution of VSO Maldives. Ambassador Azeez also highlighted VSO’s significant role in the development of the Maldives.

Also speaking at the function Minister of Education Zahiya Zareer expressed that her Ministry valued the hard work by VSO volunteers in the education sector. She also noted her personal experience when she worked with the volunteers.

A report celebrating the Partnership between the Government and VSO in the education sector was released at the function.

VSO is an international development charity organization that works through services of its volunteers. The first two volunteers arrived in the Maldives when VSO opened its program office in February 1981. Over the years, VSO’s activities expanded tremendously from teachers to lecturers, doctors and dentists, auditors, fisheries experts, architects and town planners.

Speaking at the function VSO Maldives Country Director Shiva Prasad Aryal recalled found memories of VSO’s time in the Maldives.VSO will end its program in the Maldives in February 2009.

Source: miadhu.com.mv

Maldives president ratifies new constitution

The Maldives President Maumoon Abdul Gayoom ratified the country's new constitution on Thursday, aiming to pursue a "modern, multi-party, democratic system" and giving more powers to the judiciary and legislature.

Opposition parties welcomed the new constitution, but worried about the implementation stage, while some members of the public hoped the document would bring change.

The new constitution, developed over the past four years, includes a judiciary run by an independent commission, and independent commissions to oversee elections and fight corruption.

The new constitution reduces the executive powers vested under the president and strengthens the parliament, which would be chosen through an electoral system giving each 5,000 people one member, replacing a less representative system that included some seats appointed by the president.

"We are not doing this as an illusion ... but for the benefit of the country," President Gayoom said soon after announcing official ratification of the new constitution.

"The real work is bringing the constitution into effect. Democracy can bind everyone together even if we are different from one another."

Gayoom, Asia's longest-serving leader, has held the reins of the archipelago -- a major tourist destination -- since 1978.

He first pledged the reforms to the earlier constitution following a crackdown on mass protests in 2003, and criticism over his government's human rights record.

The country's constitution was last revised in 1998, putting the president at the head of all government bodies.

NEED CHANGES

"It might bring some good changes. I have seen this man (Gayoom) ever since I was born. It's time to bring a change," said 27-year-old housewife Mizna, who like others interviewed gave only one name.

"The new constitution says we can get freedoms, but we don't feel it now. Maybe electing a new president will give us the freedoms in reality," said Ibrahim, a store cashier.

Tourist resort worker Aram, 18, said he didn't believe the new constitution could make a difference and thought Gayoom would retain his power.

Gayoom is expected to contest in the country's first multi-party presidential elections, due to be held by Oct. 10, after six terms in which he was nominated by parliament with the public given the chance to approve or disapprove him.

"It lays the groundwork for a new era providing, of course, the constitution is implemented in the spirit it (is) intended to be," Ahamed Shaheed, former foreign minister of Gayoom's government last year on slow pace of constitutional reforms and now a member of opposition New Maldives Movement, told Reuters.

"But we still want to see how it is implemented, because we do need to see the composition of the election commission and supreme court."

The opposition Republican party said true independence for the new bodies is critical.

The Home Ministry said Gayoom had pardoned 13 prisoners on Wednesday night, a day before he lost his pardoning powers under the new constitution, including a pardon for relative jailed on terror charges in the 2003 unrest.

Source: in.reuters.com

Maldives minister quits over tourism resorts plan

Maldives Tourism Minister Mahmoud Shaugee said on Sunday he had resigned from the government over plans to lease more than 30 new resorts to make up for a $180 million budget shortfall.

"The submission of my resignation is now official. I submitted it on 3 July," Shaugee told Reuters.

"My intention today is not to challenge the government, but we have differences of opinion -- on policy issues."

It was not immediately clear if President Maumoon Abdul Gayoom had accepted the resignation, which follows that of Finance Minister Gasim Ibrahim on Thursday.

Shaugee's resignation follows the government's decision earlier this month to lease 31 new resorts to bridge a $180 million shortfall in revenues.

The funds had been expected to be generated by a privately funded investment in a new trans-shipment port on the popular tourism destination, but the project has been postponed with no start date fixed.

The new round of resort leases had not figured in the Tourism Ministry's 2007-2011 masterplan and would have been carried out "without any planning," Shaugee said.

Shaugee is the sixth minister to leave the cabinet in the past 18 months.

On Thursday, finance minister Ibrahim quit, a day after an auditor's report revealed the 2008 state budget faced a deficit of 4.4 billion rufiyaa ($344 million).

The International Monetary Fund early this month warned the Maldives government to cut its "extraordinarily high level" of expenditure on state wages and subsidies and increase revenue collection or face possible high inflation.

($1 = 12.8 Maldivian Rufiyaa)

Source: in.reuters.com

Maldives finance minister quits over budget criticism

Maldives Finance Minister Gasim Ibrahim resigned on Thursday after an independent auditor general criticised the country's budget.

Gasim confirmed his resignation to Reuters.

"I don't think I should be [in the minister post]," Gasim said, declining to comment further.

His resignation comes a day after a report by the Auditor General and the Financial Committee of parliament revealed the 2008 state budget faces a deficit of 4.4 billion rufiyaa ($344 million).

In his first report since being appointed the country's first independent Auditor General, Ibrahim Naeem also said the budget failed to meet some basic accounting principles.

Maldives President Maumoon Abdul Gayoom had rejected the report at a news conference on Thursday before Gasim's resignation.

"The auditor general's report does not have to be accepted by everyone," Gayoom said.

The International Monetary Fund last week warned the Maldives government to cut its "extraordinarily" high expenditure on state wages and subsidies and increase revenue collection or face possible high inflation.

The IMF said the 2008 budget posed risks to the Indian Ocean island nation's macroeconomic stability due to inadequate revenue and high government spending.

"The budget envisages overall expenditures of near 70 percent of GDP, an extraordinarily high level historically and internationally," the IMF said.

However, after the last week's IMF warning, Gasim told journalists there was no deficit.

Gasim is the fifth minister to leave the cabinet in the past eighteen months. ($1 = 12.8 Maldivian Rufiyaa) (Writing by Shihar Aneez; Editing by David Fox)

Source: http://in.reuters.com

Bakhit Meets Maldivian President

Prime Minister Marouf Al Bakhit met on Wednesday with Maldivian President Mamoun Abdul Gayoom and held talks with him on the bilateral ties.

Bakhit noted to the various fields of cooperation between the two countries, expressing Jordan's readiness to put its potentials at the service of the Maldives.

The two officials also discussed chances of giving more scholarships for Maldivian students to study at Jordanian universities. Bakhit said that Jordan will provide additional scholarships in the various specializations for Maldivian students.

Talks also touched on the tourism cooperation and exchanging expertise in this domain as well as increasing trade exchange and possibility of importing fish from the Maldives.

President Abdul Gayoom hailed the distinguished level of Jordanian judiciary system, expressing keenness to send a number of Maldivian students to study at the Jordanian Judicial Institute.

Source: Petra

Shahid And Muiz Replace New Maldives In Cabinet

Abdullah Shahid has been appointed to the cabinet as Foreign Minister one month after he tried to resign from the government. He is joined in the cabinet by new Justice Minister Mohamed Muiz Adnan.

The appointments come as President Gayoom grapples with the resignation of the three most vocal and recognisable advocates of reform in his cabinet, in the space of three weeks.

Dr Hassan Saeed and Mohamed Jameel resigned from cabinet in early August blaming Gayoom for delaying reform, while Dr Shaheed resigned as Foreign Minister on Tuesday.

In a separate move, Rilwan Shareef has been promoted to State Minister for Finance, following the appointment of Abdullah Jihad as Governor of the country’s central bank.

A Tale Of Two Resignations

Dr Ahmed Shaheed quit the cabinet on Tuesday, in what was believed to be his third resignation attempt in a week.

He has been replaced by Abdullah Shahid, who himself handed in a letter of resignation from the government in July, only for President Gayoom to reject it.

Shahid has been promoted from his position as Minister of State for Foreign Affairs, where he had been working under Dr Shaheed.

He has pledged to continue Dr Shaheed's initiatives, especially in the field of human rights, but said he would have preferred the promotion, "under different circumstances," than his former boss' resignation.

Following Shaheed’s departure many expected President Gayoom’s daughter, Dunya Maumoom the current Deputy Foreign Minister, to be promoted to cabinet.

But Shahid denied Dunya presents a threat to his job, saying, “I do not regard her as the President’s daughter but as a qualified and experienced professional.”

Preferred Choice

Mohamed Muiz Adnan has been appointed Justice Minister to replace Mohamed Jameel.

Muiz is not himself a qualified lawyer, having failed to complete his law degree at Colombo university. But lawyers have expressed relief at his appointment.

On Wednesday it had been widely reported Ahmed “Thaggandu” Mohamed was to be appointed Justice Minister.

Thaggundu’s nickname, meaning stamp, stems from his tenure as head of the criminal court, when he rubber stamped every police request to extend detention of suspects.

Many lawyers actively lobbied against Thaggandu’s appointment yesterday. And most lawyers are understood to be comparatively pleased with the appointment of Muiz, who is regarded as an independent voice.

Muiz’s brother is a former Legal spokesman for the opposition MDP, and he himself used to work at the Anti-Corruption Board.

Two To Go

The two promotions mean President Gayoom has now filled eleven of the thirteen positions in his cabinet. Following the resignation of Dr Shaheed on Tuesday, the cabinet had shrunk to nine. The position of Attorney General is proving difficult to fill. Information Minister Mohamed Nasheed was the favourite to win the coveted post, after being appointed temporary AG.

But Nasheed has said he is unwilling to take on the former position of his mentor, Dr Hassan Saeed’s, saying it would be like, "marrying the ex-wife of my best friend.”

The Higher Education and Employment portfolio has now been vacant since the resignation of the President’s half brother Abdullah Yameen in April. It is believed the cabinet position is being kept open for Yameen’s possible return to government.

Source: Minivan News

Maldives Foreign Min quits over reform pace

Maldives Foreign Minister Ahmed Shaheed said he submitted his resignation on Tuesday, the third top cabinet member to quit this month, accusing conservative elements in the government of stalling on democratising reforms.

Shaheed called Reuters from the capital Male just before handing his resignation letter to President Maumoon Abdul Gayoom.

"There is a conservative guard within the parliament and cabinet which is resisting the proposals of reformists like me," Shaheed told Reuters. "So I think the answer is to work outside the system and find a middle ground and provide an alternative."

It was not immediately clear how the president had reacted.

Shaheed was a key architect of the reform agenda Gayoom pledged in late 2004 to revamp the Maldives' autocratic power structure in the face of harsh criticism of the government's rights record.

He will now join fellow reformists -- the former justice minister and attorney general who quit earlier this month and call themselves 'New Maldives' -- to forge an alternative centre ground ahead of the first multi-party presidential elections next year.

Unlike his two colleagues, Shaheed did not accuse Gayoom himself of delaying reforms. But he did say he thought it was time Asia's longest-serving ruler passed on the baton after 29 years in power.

Political parties were legalised in 2005, but promised reforms -- including a new constitution providing for separation of powers, judicial independence and the right of free assembly among others -- have yet to materialise in the chain of 1,200 mostly uninhabited islands 800 km off the toe of India.

"I want to applaud Gayoom for risks he has taken by taking forward the sweeping reform agenda and I remain a friend and fan of the reform process," Shaheed added.

"President Gayoom has a chance to emulate Nelson Mandela to pass the torch on to a new generation, and I hope he does it."

Gayoom told Reuters on Sunday he planned to run for re-election next year for a seventh and final term to see his reforms through. He aims to complete the reform process within 2-3 years.

With Shaheed's exit, Gayoom's directly appointed 13-strong cabinet is now down to nine members.

His resignation comes just days after the Maldives voted to adopt a U.S.-style presidency in a referendum seen as an endorsement of Gayoom's rule.

It also comes on the eve of a no-confidence vote scheduled in parliament brought against Shaheed by political rivals after he declared it was not effectively protecting the rights of ordinary citizens in a land of 300,000 mostly Sunni Muslims best known as a luxury honeymoon destination.

Source: Reuters India

The new Ambassador of Azerbaijan to the Maldives presents his credentials to the President

The new Ambassador of Azerbaijan to the Maldives, Dr. Tamerlan Garayev, presented his credentials to the President today.

At the presentation of his Letter of Credence held at the President’s Office this afternoon, the President and the Ambassador discussed about the bilateral relations existing between the Maldives and Azerbaijan and ways to further strengthen these ties.

Speaking at the meeting, Dr. Tamerlan Garayev noted the victory achieved for the Presidential form of Government in the recent referendum held to decide the future system of Government in the Maldives. The Ambassador also noted the peaceful atmosphere in which the referendum was conducted and congratulated the President for it. He also said that Azerbaijan has a Presidential form of Government and it is very successful.

The meeting was attended by the Minister of Foreign Affairs Dr. Ahmed Shaheed, the Minister for Presidential Affairs Mr. Mohamed Hussain, and the Deputy Minister at the President’s Office, Ms Nahid Ali.

Source:

Maldives foreign minister resigns

The Maldives foreign minister Ahmed Shaheed says he has submitted his resignation.

He is the third top cabinet member to quit this month, and is accusing conservative elements in the government of stalling on democratising reforms.

Mr Shaheed called Reuters newsagency from the capital Male, just before handing his resignation letter to the president.

He told the agency there is a conservative guard within the parliament and cabinet which is resisting the proposals of reformists like him.

He says he thinks the answer is to work outside the system and find a middle ground and provide an alternative.

Source: ABC Radio

India to give anti-terror lessons to Maldives

With the ever-growing spectre of terrorism looming large over the globe, more and more countries now want to learn from the Indian Army's substantial experience in dealing with militancy, insurgency and sub-conventional operations.

The 1.13-million Army, the third largest in the world, will hold as many as 10 joint military exercises with countries ranging from Maldives, Seychelles, Thailand and Mongolia to Russia, UK, China and, of course, the US, before the end of this year.

The thrust in most of these exercises will be counter-terrorism, both in "urban and rural settings". Apart from building "interoperability", the endeavour also provides India with the opportunity to engage constructively with nations in Central and East Asia as well as those in the Indian Ocean Region.

At the same time, despite the banner of protest raised by the Left, exercises with the US constitute a major chunk of this "encounter" with foreign armies. The Army alone has held around 20 joint exercises with the US over the last five years, with their names ranging from "Balance Iroquois" and "Yudh Abhyas" to "Shatrujeet" and "Vajra Prahar".

In 2007 itself, Indian and US armies are slated to hold five joint exercises. If the navies and air forces are also taken into account, almost 50 Indo-US military exercises have been held in the last five-six years.

Incidentally, the Army's elite Counter-Insurgency and Jungle Warfare School (CIJWS) at Vairengte in Mizoram is a big hit among foreign armies for its unique facilities, which promise to teach them how to "fight the guerrilla like a guerrilla". And a team of US marines will be back at CIJWS for another exercise between August 25 and September 15.

"Conventional wars as an instrument of state policy have become less relevant today. Sub-conventional operations are emerging as the predominant form of warfare," said a senior officer.

"With India having fought terrorism in J&K and North-East for decades, foreign armies are very keen to learn from our experience, especially after the 9/11 terrorist strikes," he added.

Even countries like Seychelles, Maldives, Thailand and Mongolia are keen to imbibe counter-terrorism skills. The exercise with the Royal Thai Army, named "Maitree", for instance, will be held at Ramgarh from September 1-19 to "share experiences in counter-insurgency and counter-terrorism" as well as improve interoperability.

Source: The Times of India

Maldives First South Asian Nation To Issue E-passports

Maldives has become the first South Asian nation to issue for its citizens e-passports, compliant with International Civil Aviation Organization specifications.

The new passport follows a completely new design, and features the passport holder's facial and fingerprint information as biometric identifiers, according to a statement from the Maldives immigration department.

It is designed to enable easier passage for Maldivian nationals when they travel abroad.

One of the first holders of the e-passport, Ibrahim Shaheeb, first secretary in the Maldivian high commission in New Delhi, told IANS that he had a smooth passage when he transited in Sri Lanka while on his way to New Delhi recently.

According to the press release, the new passport is printed by Austrian State Printing House, Osterreichische Staatsdruckerei, with IRIS Corp of Malaysia supplying the inlays for the microchip that is embedded on the back cover.

Despite the introduction of this new generation passports, passports issued on or before July 25 can be used until their expiry. And it is not compulsory for anyone to switch to the new passport, according to the Maldivian authorities.

Maldives President Maumoon Abdul Gayoom was presented with the first such e-passport at a ceremony in Male on July 26, Maldives' Independence Day.

Source: News Post India

UN rights expert welcomes appointment of first female judges in the Maldives

A United Nations independent expert on judicial independence today welcomed the appointment of the first-ever women judges in the Maldives and called on authorities in the Indian Ocean archipelago to continue to take steps towards “an appropriate gender balance within the judiciary.”

Leandro Despouy, Special Rapporteur on the independence of judges and lawyers, issued a statement in Geneva after the Maldives appointed two female judges on Wednesday and announced that a third woman was due to be appointed next week.

The appointments are being made a month after Mr. Despouy tabled his report to the UN Human Rights Council, following his five-day official visit to the Maldives earlier this year, in which he stressed the urgent need to end gender discrimination within the country’s judiciary and promptly nominate women judges.

Today Mr. Despouy welcomed the Maldivian authorities “for having promptly implemented this very important recommendation, which is part of the broader judicial reform,” and reflects the international obligations to which the Maldives have subscribed.

Mr. Despouy also welcomed the decision of the Special Majlis, or the constitutional assembly, to adopt a new constitution by 30 November this year. A previous Government-set deadline of 31 May had not been met because the ruling Dhivehi Rayyithunge Party (DRP) and the opposition Maldives Democratic Party (MDP) could not reach agreement on some parts of the draft constitution.

“The adoption of a new constitution is essential in order to guarantee to the Maldivian people the establishment of democratic institutions and the respect for human rights in their country,” Mr. Despouy said, adding it is also “a key prerequisite” for the nation’s first ever multi-party elections to be staged by the end of 2008.

The Special Rapporteur called for “a successful transition towards a democratic system of governance based on a separation of powers.”

But he voiced concern about the pace of the constitutional reform process after the Speaker of the Special Majlis indicated last Sunday that he did not plan to resume the work of the assembly for 10 days – even though the Special Majlis had previously agreed to convene four times a week so that it can meet the 30 November deadline.

Source: UN News

President extends congratulations to the new Prime Minister of UK

President Maumoon Abdul Gayoom has sent a message of congratulations to Gordon Brown, on his assumption of office as the new Prime Minister of the United Kingdom.

In the message, the President extended warm congratulations and sincere good wishes of the Government and people of the Maldives, and that of his own, to Mr. Brown. The President further expressed is confidence that the friendly relations that existed between the two countries would continue to strengthen in the years to come.

Source: Haveeru

Looking for Osama in the Maldives.

Fixing me with a fierce scowl, the imam made it clear I was unwelcome. I can't say I was surprised. Somewhere in his 50s, he wore the long beard and calf-length pants that marked him as a follower of Wahhabiism, the strict fundamentalist brand of Islam that originated in Saudi Arabia. But I was not in Saudi Arabia. I was in the Maldives, the remote and lovely island chain in the Indian Ocean near Sri Lanka and southern India.

True, the Maldives is a Muslim country—exclusively so, since the practice of other religions is illegal—and has been since 1153, when the king at the time fell under the sway of an Arab traveler and ordered his subjects to convert. The islands had been predominantly Buddhist, a faith they shared with Sri Lanka, whose Sinhala language is similar to Divehi, the native Maldivian tongue.

But if Islam has a long history in the Maldives, it's not the kind of place you associate with hostile mullahs. Quite the opposite, in fact. With a population of just 360,000, the archipelago is dotted with luxurious private resorts—think Robinson Crusoe with plunge pools—and is a magnet for celebrities such as Tom Cruise, who honeymooned there in December. In Male, the cramped little island capital, tourists are relatively scarce. But the atmosphere, at least at first, seems laid-back and globalized. The skyline is dominated by modern, pastel-colored apartment blocks that would not look out of place in South Florida, and the streets are jammed with shiny new motorbikes, many piloted by sinewy young men in dreadlocks and baggy shorts. I even saw one young woman in a T-shirt that read, "Good Girls Don't Get Caught."

Still, there is no mistaking the Maldives' Islamic character. Alcohol can only be sold to foreigners at resorts, and nearly everyone I spoke with remarked on the growing popularity of beards and headscarves. When I caught up with the surly imam in Male not long ago, he was preparing for afternoon prayers in an illicit and supposedly clandestine mosque, which was hidden behind a row of stores. After he shooed me away, I retreated across the street and watched as a steady trickle of young men—all bearded and sporting abbreviated trousers—disappeared into the alley that led to the mosque. When they emerged a little while later, none of them would talk to me, either.

Some fear the worst is yet to come. In spring 2006, authorities announced the arrest in Sri Lanka of three Maldivians—two women and a man—who allegedly were heading to militant training camps in Pakistan. Charges have since been dropped, and when I spoke to Fatimah Nisreen, a policeman's daughter who was accused of helping to arrange the trip, she asserted that the man had been escorting the women to Pakistan so he could marry them—something he couldn't do at home. But the 26-year-old also described herself as "totally obsessed with Islam" and acknowledged that she regularly visited an extremist Web site, although she has yet to make up her mind about Osama Bin Laden: "There are things I support, and there are things I can't decide on him." [Read More on Slate]

Source: Slate

'LTTE' vessel sunk off Maldives was from Kerala

A trawler which the Maldivian Coast Guard sunk on Thursday, on suspicion that it was an LTTE gun-runner, was registered in Kerala, the Sri Lankan Navy's spokesman Com DKP Dassanayake told Hindustan Times on Friday.

The vessel bearing the name Sri Krishna ( registration number KFO 7339 ALP 2749) had set sail from Kollam (Quilon) in Kerala on March 7, Dassanayake said.

The Indian Coast Guard had last seen the vessel on March 12, near the India-Sri Lanka maritime boundary off Pamban near Rameswaram in Tamil Nadu. It reappeared on Wednesday May 16, south of the Maldives chain of islands. Trouble arose with it fired on a Maldivian fishing boat and invited the attention of the Maldivian Coast Guard vessel Huravee. After a 12-hour stand off, the trawler was sunk early on Thursday.

Four of the nine-member crew were captured, one surrendered, and four were killed, reports said. The man who surrendered was Simon Soza, a Malayali, the vessel's engineer, Dassanayake said. The others were apparently Tamils.

The suspicion that Sri Krishna was a gun-runner for the LTTE arose because of the kind of resistance the crew offered and also the explosions which could be heard as it sank. Reports said that the vessel, which started off as an innocent deep sea fishing trawler, was hijacked by the LTTE to do some gun-running for it.

There is a suspicion in diplomatic circles that the vessel was to rendezvous with an ocean going LTTE arms vessel in the high seas off south Maldives, and take on board a part of the lethal cargo for delivery in Sri Lanka. This could be the reason why the engineer of the vessel, the Malayali Simon Soza, had jumped ship and surrendered to the Maldivians, it is said.

Maldivian fears

However, the Maldivian authorities are reluctant to say, at this point of time at least, that the vessel was an LTTE gun runner.

"We are now treating this with caution, because the man (who surrendered) was speaking Malayalam and not Tamil," the chief Maldivian government spokesman, Mohammad Shareef, told media on Thursday.

Diplomatic sources said that there could be a worry that tourism, the Maldivian economy's mainstay, may be badly hit if it is known the world over that the most peaceful and idyllic archipelago in the Indian Ocean has become a rendezvous for terrorists.

India's worries

It is learnt that thorough investigations are going on in the Maldives, Sri Lanka and India to get to the bottom of the matter and nip any terrorist activity in the area in the bud. India, which has a strong and long standing relationship with the Maldives, does not want to see the Maldivian economy collapse on account of any terrorist activity.

Earlier in 1988, the Indian Navy had intercepted a vessel carrying Sri Lankan Tamil mercenaries who were trying to seize power from President Mohammad Gayoom and hand it over to some leaders of the opposition.

Sri Lankan view

The Sri Lankan media has already announced that that the vessel was an LTTE gun runner. The media and the government, are keen to show that the incident is another proof that the LTTE has been increasingly using South India to smuggle in arms for its operations in the Sri Lankan North-East.

Sri Lankan naval sources say that smuggling of war-like material from Tamil Nadu has increased in the past six months and cite instances in which the Tamil Nadu police and the Indian Coast Guard had captured such material and made some arrests. It is pointed out that the LTTE had killed non-cooperating Indian fishermen in March and had also abducted 12 persons, according to the Tamil Nadu Director General of Police D Mukherji.

The LTTE, however, has denied any role in the killings and abductions of Tamil Nadu fishermen. And on the incident in the Maldives, its military spokesman Rasaiah Ilanthirayan said: "These guys are not ours."

Source: Hindustan Times

Maldives destroys boat suspected of carrying LTTE arms

The Maldives coast guard yesterday sank a boat suspected of ferrying arms for separatist Tamil Tiger rebels in neighboring Sri Lanka and captured five men, a government spokesman said.

Maldivian fishermen spotted the boat on Wednesday evening and gave chase after believing it was a fishing boat poaching in their waters, Maldives government spokesman Mohamed Hussain Shareef said.

When the boat's crew opened fire on the fishermen, they informed the Maldivian coast guard, which later sank it after a 10-hour stand off, Shareef said.

One of the men captured later said the boat had weapons and ammunition aboard, Shareef said, adding the five were being interrogated.

Maldives, an archipelago of 1,200 coral islands, is located 400 nautical miles (740km) southwest of Sri Lanka.

Tamil Tiger spokesman Rasiah Ilanthirayan denied the rebels' involvement.

"We have nothing to do with this and they are not our people," he said by telephone.

In 1988 a former Tamil separatist group based in Sri Lanka, the People's Liberation Organization of Tamil Eelam, attempted to overthrow President Maumoon Abdul Gayoom and seize power in the Maldives for a group of local dissidents. In return, the group was to receive a base on the archipelago.

However, Maldives security forces, with help from India, defeated the coup.

The Tamil group later gave up arms and entered mainstream Sri Lankan politics.

The Liberation Tigers of Tamil Eelam (LTTE) rebels have continued to fight for more than two decades to create a separate homeland for the country's 3.1 million ethnic minority Tamils.

Source: Taipei Times

MNDF says sinks suspected vessel in Maldives Water

The Maldives coast guard opened fire on and sank a vessel carrying suspected Tamil Tiger rebels on Thursday after a 12-hour standoff at sea in their southern territorial waters, the government said.

However one man who threw himself overboard before the clash and surrendered spoke the south Indian language Malayalam and not Tamil, and officials were treating the alleged rebel link with caution.

"We have sunk the vessel. We have captured the five people aboard," Foreign Minister Ahmed Shaheed told Reuters by telephone from the Maldivian capital of Male.

A government spokesman said one of the captured men said four people he believed to be Tamil Tigers had boarded his 80 ft (25 metre) fishing trawler at sea and loaded it with guns and mortar bombs.

He said there was confusion over an initial coastguard report that the man had identified himself as a Tamil Tiger.

"We are now treating this with caution, because the man was speaking Malayalam and not Tamil," said chief government spokesman Mohamed Shareef.

Sri Lanka's Navy has sunk several boats and trawlers in recent months suspected of trafficking weaponry for the Tigers across the Palk Strait that separates Sri Lanka and India.

Maldivians are mindful of an abortive coup attempt in 1988 by dissidents backed by Tamil paramilitaries from Sri Lanka, which ended in the Indian Navy chasing and sinking a vessel the plotters had tried to escape on with hostages.

The Tamil Tigers, fighting for an independent state in neighbouring Sri Lanka, were not immediately available to comment on the incident, which took place several hundred nautical miles off the south of the Maldives archipelago.

Source: Reuters

Top EU official lauds Gayoom for reforms in Maldives

As Maldives braces for multi-party elections next year, European Commission president Jose Manuel Barroso has lauded President Maumoon Abdul Gayoom for taking 'significant steps' towards establishing a 'liberal and democratic system' in the Indian Ocean island nation.

In a letter to Gayoom, Barroso welcomed political developments in the Maldives during 2006 and highlighted the strong bilateral relationship that exists between the European Union and the Maldives, said a press statement by the Maldives government.

The top EU official was replying to a letter written by Gayoom in which he provided a broad overview of major developments in the Maldives last year and re-emphasised the government's commitment to oversee further democratic progress this year according to a roadmap unveiled by him nearly four years ago.

These initiatives over the course of the year represent significant steps towards establishing a lasting, liberal and democratic system for all the people of the Maldives, Barroso said in his letter to Gayoom.

He also offered the EU's support for the process of democratic transformation in this picturesque atoll nation that has been ruled by Gayoom, Asia's longest serving leader, for nearly three decades and said that the EU was ready to provide technical assistance ahead of the 2008 elections.

Gayoom's roadmap for democratic reforms in Maldives, which was made public in November 2003, include a free press, an independent judiciary, an empowered parliament, a brand new penal code, a human rights commission and the drafting of a new constitution for accountable and transparent governance in the country.

'The government warmly welcomes the EU's continued interest in developments in the Maldives,' Chief Government Spokesman Mohamed Hussain Shareef said while commenting on Barroso's letter.

'The EU is one of the Maldives' most important international partners across a range of areas including governance, environmental protection, tsunami recovery, and economic and social development,' Shareef said.

'We are pleased to note that our bilateral relationship continues to go from strength to strength,' he added.

Stressing on the 'privileged relationship' between the EU and the Maldives, Barroso reiterated the European Commission's determination to help the Maldives recover fully from the Asian tsunami that struck in December 2004, wreaking massive devastation in the Maldives.

Source: Malaysia Sun

Sri Lankan Fishermen protest against Maldives Government

An umbrella organisation representing fishermen has lodged a strong protest with the Fisheries Minister against the Government granting approval for foreign fishing vessels to fish in Sri Lankan waters and against an existing agreement with the Maldives that continues to affect their livelihoods and the local industry.

National Fisherman Cooperative Society (NFCS) spokesman Herman Kumara told The Sunday Times that due to the superior technology employed in foreign vessels, local fishermen were at a disadvantage to get a decent catch of fish.

“The Fisheries Minister said around 22 foreign fishing vessels were given permission to operate in our waters. The foreign fishing vessels have superior technology and naturally their owners catch more fish,” he said.

He said foreign fishermen are also given preference in the local market while local fishermen were left to sell their fish at a lower price to various independent brokers.

“When President Mahinda Rajapaksa came to power he promised to put an end to the selling of our resources to foreign countries. Why has he not kept his promise?” he asked.

Mr. Kumara said the Government had signed an agreement with the Maldivian authorities to allow them to carry out fishing in Sri Lankan waters while also allowing them to export the fish from Sri Lanka.

“The Government has provided Maldives with shipping vessels to carry out their fishing activities in our seas. We find this unacceptable as the local fishermen are being compromised,” he said.

The NFCS launched a large-scale protest campaign on this issue and following the protest last Monday, the NFCS decided to meet Fisheries Minister Felix Perera to discuss their grievances.

However, Fisheries Ministry Secretary G. Piyasena claimed the Government did not have any agreement with the Maldivian authorities.

“We only have a MoU with the Maldivian authorities to help Sri Lanka with fishing technology,” he said. Yet after the meeting between the two parties held on Wednesday the NFCS claimed the Fisheries Minister admitted to having such an agreement and also decided to cancel the MoU.

Mr. Kumara said the Government also agreed to look into the matter of fixed fish prices and give market preference to local fishermen.

He also said the Fisheries Minister was not prepared to cancel the agreement which allowed foreign fishing vessels to fish in Sri Lankan waters as the revenue loss for the Government would be too immense to bear.

Source: The Sunday Times (Malik Gunatilleke)

Maldives “balanced” budget on the verge of tilting?

The government says that the Maldives economy is strong. This is what the government would have the people believe through its extensive media propaganda.

But the picture is different when you look at the Maldives economy from the eyes of a foreign donor. In fact, international aid agencies have made many criticisms against the government's economic and fiscal policies and called on the government to adopt corrective and remedial measures.

The government claims that the 12.3 billion Rufiya budget, unprecedented in the country's history, is a balanced budget. But compared to earlier budgets, the balancing act with regard to this budget seems to have been set differently.

When the budget was referred to the People's Majlis or parliament, it was criticized by many. There were many amendments proposed to the budget. But the budget was passed without taking into account any of the criticisms or proposed amendments.

Those who defended the budget can claim that the budget was designed to usher in further benefits to the economy; however, some critics pointed out many loopholes in the budget.

This year's budget amount is 45 percent more than last year's. Some 6.79 billion Rufiya is expected to be spent as recurrent expenditure with 1.9 billion Rufiya to be expended for running various government agencies. Salaries for civil servants themselves will incur Rf1.22 billion. Compared to last year's figures, this would mean a 4.3 percent increase in civil servants' salaries expenditure, and a 23 percent increase in government agencies' administrative expenditure.

Some 93 percent of the direct revenue generated for the government through foreign grants and other sources, excepting loans for development projects, is to be spent as recurrent expenditure. This would mean that the Maldives will require to get foreign loans or foreign grants for all the capital investments the country will have to make this year.

The capital expenditure for this year estimated at Rf5.54 billion is a figure that is 188 percent more than last year's figure. This would mean that there will be Rf3.6 billion in circulation in the economy more than last year.

Some experts and the government claim that though the capital expenditure is higher, that if this goes towards economic development projects, the economy would see faster development. Some are also of the view that the rise in recurrent expenditure as a consequence of the increase in capital expenditure is also not much of a problem.

However, others warn that if it is only cosmetic changes that the government seeks, this would mean trouble, and that inflation may go up.

But even at the onset, the controversy surrounded on the sources from which the government can generate revenue. Some are concerned that the sources on which the government hopes to generate revenue from are not that strong. Others claim that it is ridiculous that the government has included both foreign loans and foreign grants when balancing the budget. The Maldives National Chamber of Commerce and Industry even criticized the government in a press release, attacking the government's taking of extensive foreign loans. The budget is planned in a way such that 35 percent of the government revenue will be gained from foreign loans.

The sources to generate Rf1.4 billion for the government are also shaky. For instance, the government claims that it can generate Rf32.25 million from the rent of Hudhufushi island as a resort and a further Rf35.5 million from the fine imposed on the resort after its developer failed to complete the resort on time. However, Hudhufushi is one of the problems that are plaguing the government with no end in sight.

The other proposals include drawing huge amounts in advance and other areas for which only the parliament has power to authorize.

However, state minister for finance, Abdulla Jihad had said in January that he was confident that the government can generate the proposed revenues, and that the sources for finance were also strong. He said that there were many measures that the government can take immediately to start generating revenue.

"Not including increasing customs duties and extending the lease period of resort islands, there are many other measures that the government can take to increase revenue. We will propose to the parliament during the first session to adopt other measures that the parliament can take," Jihad had said.

However, during the first quarter of the year, no implementation has taken place of any of the measures that were supposed to generate revenue for the government.

On the other hand, what we are now seeing is one government agency begging the other for favors in order to keep the budget balanced. For instance, the government has decided to take Rf191 million from the Maldives Tourism Development Cooperation as advance lease for the islands on which the company is building resorts. The MTDC, a fully government controlled company, has already paid Rf77 million to the government.

Some economic experts say that the proposed measures are not in line with modern economic practices.

"It will be quite difficult to get the parliament to approve individual motions to increase taxes on tobacco, vehicles and expatriate work permits. What they can now do is try to get government revenue increased by adopting the tax bill," an analyst said, adding that he does not understand why the tax bill is getting delayed.

The analyst, who asked not to be named, said that Maldives may have to face dire consequences if the government is allowed to go on drawing huge sums in advance.

"An advance is something that has to be kept as a reserve for later use. It is not something that is to be spent now."

While the government is dragging its feet in taking taxes, it has also not come up with any law or regulation by which, as an Islamic country, it can forcibly take "zakath" or the Islamic charity that is required to be taken from the wealthy.

This week many members of parliament expressed concern that the government wanted to go ahead in taking indirect taxes rather than levying direct taxes.

While direct taxes may not be popular among the general public initially, analysts expect people to accept and get used to it if there is accountable and transparent governance.

Years ago, there was much controversy when the government proposed to take a bed tax from resorts and hotels, and a tax on banks' profits, but now the measures are an accepted norm here.

The government cannot also depend on foreign loans and grants. Much of the US$400 million that is required to recover from the tsunami still remains to come, and therefore, the government should not expect this foreign aid to be forthcoming. This is not to mention the burden the government will have to take if the Maldives tsunami recovery program have to be contracted to the private sector.

Jihad himself agreed that while most of the goals of last year's budget were met, what remained unrealized were the projects that were to be carried out with foreign loans or grants.

The main opposition Maldivian Democratic Party has claimed that this year's budget was designed to give a cosmetic uplift to government's incoherent and shaky economic policies.

"Which country in the world will balance its budget by dedicating 35 percent of the budget to taking loans?" MDP's acting president and former SAARC Secretary General Ibrahim Hussein Zaki had questioned.

"The loans themselves are short term loans with high interest taken from commercial banks; 32 percent of the loans have to be paid to commercial banks within five years at six or seven percent interest rates. This is quite baffling," Zaki had said.

The United Nations decided to keep Maldives as a Least Developed Country (LDC) while it was on the verge of graduation due to the tsunami of December 2004. However, perception remains that Maldives is a well-off country, and as long as this perception remains, we can expect little foreign assistance now or in the future.

If the government fails to earn revenue from its proposed sources, the budget will surely tilt, and economic progress will be slowed down if capital expenditure is not spent wisely and shrewdly.

Source: Haveeru ( Translated from an article by Ahmed Saeed)