Maldives News Bulletin - Volume 126

President Dr. Mohamed Muizzu has disclosed the Maldives Monetary Authority (MMA) has passed to amend its rules and regulations to make it compulsory for foreign currency to be deposited to the banks of Maldives.

He made the announcement during a rally organized by the main ruling People’s National Congress (PNC).

Noting that companies that earn its income in foreign currency are operated in the Maldives, President Muizzu highlighted that this money is being exchanged in the black-market. He assured that work was underway with MMA to amend its rules to bring a halt to the black-market foreign currency exchanges. He added that the amendments will make it mandatory for companies that earn their income in foreign currencies to regulate their incomes via the national banks.

The President also stated that amendments will be made to assure that the US dollars generated in the country stays within the country’s banking system. As such, amendments are to be made to the Foreign Direct Investment Act and the Business Profit Tax Act. He also noted that amendments will be made to the Income Tax Act, the Pension Act and the Import Duties Act, to make payments in foreign currency.

President Muizzu added that these changes will make it so that currency exchange businesses will have to work with the banking system of the country. This, the President noted, will help maintain the flow of US dollars in the country. He went onto say that the implementation of these measures will take time and urged for the cooperation of the public and businesses to bring about the reforms. He assured that the black-market of dollars will be halted, and the dollar rates will be controlled within the banking system.

^{SOURCE : PSM}

The Government of Maldives has condemned the statement by an Israeli Minister calling for the construction of a synagogue inside the holy AlAqsa Mosque.

A statement released by the Foreign Ministry stated that the Government “condemns and denounces in the strongest terms the recent statement by an Israeli Minister calling for the construction of a synagogue inside the holy Al-Aqsa Mosque.”

The statement went on to add that the Al-Aqsa Mosque is of immense spiritual and historical significance for over 1.8 billion Muslims worldwide, describing the mosque as a revered place of worship and a symbol of Islamic heritage.

“The Government of Maldives calls on the Government of Israel to respect the historical and legal status of the Al-Aqsa Mosque in accordance with international law and relevant United Nations resolutions,” Foreign Ministry said.

The statement further noted that inflammatory and provocative statements made by senior officials of the Israeli Government undermined the efforts to reach a ceasefire in the Gaza Strip and has the potential of fueling religious conflict and causing further instability in the Middle East region.

The Maldives called on “the international community to urgently intervene to prevent any action that could change the legal status in Jerusalem and its holy sites and take all necessary measures to protect the rights of the Palestinian people.”

The inflammatory statements came from Israel’s hardline Security Minister Itamar Ben-Gvir, who called for allowing Jews to pray in the compound and the building of a synagogue within the compound area. Muslims have condemned these statements, calling it a violation of international law and an unacceptable incitement.

“The Government of Maldives stands in firm solidarity with the Palestinian people in the pursuit of their inherent right to self-determination and remains committed to its calls for the establishment of a sovereign and independent State of Palestine, as per the pre-1967 borders, with East Jerusalem as its capital,” the statement added in conclusion.

^{SOURCE : Ministry of Foreign Affairs}

Minister of Economic Development and Trade Mohamed Saeed has disclosed that the state was able to save USD one billion during the past six months. The Minister noted that this was the results of the measures taken by the state to recover the Maldivian economy.

Speaking at a program of PSM News, Minister Saeed highlighted that the Maldivian economy was deteriorating at a rapid pace when President Dr Mohamed Muizzu took to office. Mismanagement of funds, he added, had led to irreversible damage. He stated that the current administration has been able to save USD one billion in six months and increased the sovereign development fund to USD 60 million.

Minister Saeed noted that the previous government had printed Maldivian rufiyaa worth USD 521 million within a three-year period. This, he said, pushed the government debt to historical levels, adding to the fiscal pressures, impacting revenues and the operation of State-ownedEnterprises.

The Minister of Economic Development and Trade went onto say that the Ministry is working tirelessly to repay the debts and increase the state revenue, even with all the burdens it had to take on since taking office in November 2023. He added that the operation of the Development Bank of Maldives will stimulate the economy and increase state revenue.

The Minister also noted that the Financial Centre to be developed in Funadhoo is progressing steadily. He also highlighted that the bunkering service in the north will commence on September 12. He noted that these services will boost economic growth and highlighted that these development plans are being executed without defaulting on debt. Minister Saeed assured that the government will not allow the state debt to increase without control for a second time.

^{SOURCE : PSM}

Minister of Transport and Civil Aviation Mohamed Ameen has departed on an official visit to Saudi Arabia, aiming to enhance bilateral ties in the field of transportation.

During this trip, Minister Ameen is set to hold comprehensive discussions to boost bilateral relations in the field of civil aviation. Additionally, the Minister will hold meetings to discuss the drafting of regulatory frameworks in order to ensure safety and security during air transportation.

The trip was undertaken by the Minister at the invitation of Minister of Transport and Logistics of Saudi Arabia Saleh bin Nasser AIJasser and the President of the General Authority of Civil Aviation of Saudi Arabia Abdulaziz bin Abdullah Al-Duailej.

SOURCE : PSM

Fenaka Corporation Limited has completed the installation of smart meters in all the households of Kudahuvadhoo Island in Dhaalu Atoll, under the Fenaka Smart Meter Project. The primary objective of the project is to address the issue of increasing electricity bills, utilising technological advancements.

The smart meters launched under the project are automotive and will replace the previously utilised analogue and digital meters. With the installation of the smart meters, households will be able to monitor their electricity consumption on a daily basis, hence assisting to reduce the current bills.

During the ceremony held to mark the installation of the smart meters, Fenaka launched the Smart Meter Application as well. The application was launched by the Minister of Climate Change, Environment and Energy Thoriq Ibrahim.

The application will facilitate customers utilising the smart meters, to monitor the daily electricity usage via mobile phones. Following the launch of the application, Managing Director of Fenaka Muaz Mohamed Rasheed said that the company strives to upgrade the application in the near future, such that the hourly electricity consumption can be monitored.

In addition to installing the smart meters in Kudahuvadhoo and all the islands of Dhaalu Atoll, Fenaka is working to install the smart meters in all inhabited islands of the country. As such, Fenaka is currently working to install smart meters in Haa Dhaalu Atoll, Baa Atoll, Meemu Atoll, Faafu Atoll, Thaa Atoll as well as Fuvahmulah City

The smart meters, which are Chinese products, meet international standards and is used by several developed countries. Fenaka is equipped with the necessary resources required to test the smart meters, which meet the standards of the Utility Regulatory Authority (URA).

^{Source: PSM}

Fenaka Corporation Limited has stated that they were in the process of dispatching a 1200kW generator set to Fuvahmulah City, to address the ongoing issues related to electricity supply.

Fenaka said that the previous generator set in the city had been damaged, leading to inefficiencies in electricity provision and frequent power outages for residents. The corporation said in January that it would work to resolve the issue.

As a temporary solution, an 800kW generator set was brought under the emergency procurement, along with a 800kW generator set which had yet to be installed on a different island.

However, Fenaka noted that this was not a permanent solution, explaining that with the increasing electricity consumption in months with higher temperatures, additional generators will be required to supply electricity to meet the demands. Under the efforts to resolve this issue sustainably, the corporation stated that efforts are currently underway to dispatch and install a 1200kW in Fuvahmulah City. Fenka expressed optimism in the generator, stating that it will prove to be a potential solution.

Furthermore, Fenaka criticised the previous administration for inadequate maintenance of critical resources and facilities used for electricity provision. It was revealed that generators were not overhauled, substandard spare parts were used, and generators were installed without regard to the electricity capacity needs of various islands.

The current government is exerting efforts to ensure the provision of electricity efficiently and sustainably. As such, the government is working to provide electricity equivalent to the demand, upgrading power grids and generating power using renewable energy sources.

^{Source: PSM}

The Maldives Instant Payment System (IPS); Favara, marked its first anniversary with five million transactions.

Favara was developed by the Maldives Monetary Authority (MMA) and inaugurated on August 26, 2023. The system offers innovative, convenient, and affordable access to digital financial services, enabling users to make and receive payments from any bank account instantly

Statistics released by the MMA indicate that Favara processed a total of five million transactions within a one-year period. These transactions are worth USD 972 million. The system is currently connected with five banks including two local banks and three foreign banks. The banks are Bank of Maldives (BML) and Maldives Islamic Bank (MIB), Bank of Ceylon (BoC), State Bank of India (SBI) and Mauritius Commercial Bank (MCB).

Favara includes instant payment, request to pay, smart addressing, and account verification services. MMA stated that the payment system will allow citizens living on an island in the Maldives to open an account at any bank and instantly make transactions.

The first phase of the instant payment system adoption prioritises enhancing internal financial transactions. The second phase will connect the system to the national payment systems of other countries to facilitate instant foreign currency transactions.

^{Source: PSM}

The Government is seeking contractors to develop ice plants in five islands; Ihavandhoo and Dhidhdhoo islands in Haa Alif Atoll, Komandoo island in Shaviyani Atoll, Rasdhoo island in Alif Alif Atoll, and Rathafandhoo island in Gaafu Dhaal Atoll.

The Ministry of Finance has announced bidding opportunities for this development, funded by the Saudi Fund for Development (SFD) under the Development of Fisheries Sector Project. The Ministry stated that the selection of contractors will follow the International Bidding Policy (ICB) and SFD’s Guidelines for the Execution of Works.

To participate in the bidding, contractors must pay a non-refundable registration fee ranging from USD 100 to USD 1,500. Additionally, a bid security of USD 16,212 must be submitted within 148 days from the start of the bidding process. The Finance Ministry said the pre-bid meeting is scheduled for September 10, 1300hrs, via Microsoft Teams. Meanwhile, it was revealed that bidding will officially commence on October 20, at the Ministry.

The Government plans to increase ice production capacity by developing ice plants in various locations across the country. Eleven such ice plants will be developed,with a capacity to produce 1880 tonnes of ice. SFD is to develop five ice plants, with the rest being developed by state expenses.

Internal audit capacity of atoll councils should be increased: Cities Minister.

The Minister of Cities, Local Government, and Public Works, Adam Shareef Umar has expressed the need to enhance internal audit processes to address mistakes made by councils, in strengthening the audit capabilities of atoll councils.

He made the remarks while inaugurating a training programme focused on strengthening the state procurement system, financial management, and administrative practices of the councils.

Speaking at the inauguration of the programme, Minister Adam Shareef highlighted the importance of strengthening internal audits across the islands. He also expressed confidence that any mistakes made by the councils were not intentional.

Additionally, Minister Adam Shareef stressed the necessity of improving internal audit mechanisms to identify and rectify errors. He also underscored the importance of enhancing the internal audit capacity within the atoll councils.

The online training programme, organised by the Cities ministry and the Local Government Authority (LGA), was attended by 170 participants from 40 local island councils and five atolls. The ministry noted that the programme would greatly benefit council employees and further reinforce the administrative management of the councils.

^{Source: PSM}