Maldives News Bulletin - Volume 160

President decides to introduce India’s Unified Payment Interface in Maldives

President Dr Mohamed Muizzu, on the recommendation of the Cabinet, has decided to take the necessary steps to introduce India’s Unified Payment Interface (UPI) in the Maldives. This move is expected to bring significant benefits to the Maldivian economy, including increased financial inclusion, improved efficiency in financial transactions, and enhanced digital infrastructure.

The decision was made after the Cabinet thoroughly discussed a paper submitted by the Minister of Economic Development and Trade at a cabinet meeting, ensuring a comprehensive understanding of the matter.

In this regard, President Dr Muizzu has decided to set up a consortium to introduce UPI in the Maldives. He also suggested that banks, telecom companies, state-owned companies and fintech companies operating in the country should be included in the consortium. He also appointed TradeNet Maldives Corporation Limited, a leading agency with proven expertise, as the consortium’s leading agency.

He also decided to constitute an inter-agency coordination team comprising the Ministry of Finance, Ministry of Homeland Security and Technology and The Maldives Monetary Authority to lead the Ministry of Economic Development and Trade to oversee the establishment of the UPI in the Maldives.

SOURCE : The President’s Office

Vice President demands accountability from former administration

Vice President Uz Hussain Mohamed Latheef has demanded accountability, for unlawful acts carried out by the former administration. 

He made this statement in response to statements from former Finance Minister Ibrahim Amir regarding recent disclosures by the current Finance Minister, Moosa Zameer, which revealed significant illegalities in the systematic recording of government expenditures during the last administration.

Noting that the consequences of the previous administration’s misuse of its supermajority to conceal unlawful activities are now becoming increasingly evident, Vice President Latheef reiterated that the previous administration should assume full responsibility for its actions. He also accused the former administration of failing to provide transparency about the aid received during the COVID-19 pandemic.

Minister Zameer disclosed that approximately USD 130 million was spent in excess of the budget approved by Parliament during the previous administration. In the wake of this disclosure, Attorney General Uz Ahmed Usham announced that decisive action would be taken after the release of the investigation report. He emphasized that the billions exhausted by the former administration have not been properly accounted for in the Finance Ministry’s records.

The Attorney General underscored the government’s commitment to addressing such significant errors in state accounting and expressed his intention to propose amendments to the law to prevent similar incidents in the future.

SOURCE : PSM

USD 7 million budget passed for Auditor General’s Office

The Parliament’s Budget Committee has approved a budget of USD 7.39 million for the Auditor General’s Office (AGO) for the upcoming year. The budget was passed unanimously.

The Constitution mandates the AGO to submit its budget separately to ensure its independence from external influences. The AGO submitted a budget of USD 6.45 million, with USD 5.21 million for recurrent and capital expenses and USD 1.23 million for the construction works of the office building being developed in Hulhumale’.

The AGO consulted the Ministry of Finance during budget preparations, suggesting a reduction in salaries and wages. However, the Budget Committee opted not to do so, citing past complaints from the AGO about difficulties in hiring experienced auditors due to low salaries. They stressed the importance of a budget that avoids financial constraints while enhancing the office’s capabilities.

Furthermore, the Ministry of Finance recommended raising the USD 1.23 million budget allocated for developing the office building in Hulhumale’ to USD 2.20 million. The resulting revised budget of USD 7.39 million was submitted to the committee, which was approved by a majority of its members.

SOURCE : PSM

Over 16,000 transportation devices imported last year amid traffic concerns

The Maldives sees over 10,000 new road vehicle registrations annually, with motorcycles making up 90% of these imports, particularly in the Malé area. Efforts by various governments to manage the growing number of imported vehicles have yet to yield solutions.

In the last five years, the government registered 69,780 vehicles, with over 42,000 in Malé, making it the most congested area in the country. The rising number of vehicles, including many that remain unused, has worsened traffic conditions.

Challenges include registrations exceeding garage capacities and fraudulent documentation. The government has now initiated measures to address these issues.

The Road Traffic Act empowers local councils to set limits on vehicle registrations and usage periods in specific areas. A recent amendment allows councils to evaluate and categorize vehicles into public transport, private, commercial, and industrial, with the option to create sub-categories.

SOURCE : PSM

Special operation launched to rehabilitate addicts in Maldives

The Drug Enforcement Department and the National Drug Agency (NDA) have initiated a special operation aimed at directing addicts into treatment, set to continue indefinitely.

At a press conference, Superintendent of Police Nahid Hussain announced that the Maldives Police Service will identify individuals in need of treatment and transport them to a remand centre. He noted that Section 103 of the Narcotics Act, which has never been utilized before, allows police to facilitate treatment for those in need. The operation began on October 9, resulting in 14 individuals being taken to the remand centre for treatment so far. It specifically targets street drug users, those involved in theft and robbery, and individuals found under the influence in public spaces.

Chairperson of the NDA, Lubna Zahir, emphasized the goal of reducing drug-related crimes in society, highlighting the Drug Offender Remand Centres established in Himmafushi, Kaafu Atoll, and Hulhumale’. She noted that operations at these centres have now fully commenced and are designed to provide effective treatment solutions.

The NDA is also improving the treatment system and plans to conduct a study to assess the drug situation in the Maldives, following a request from the National Drug Council (NDC). Lubna mentioned that the NDA aims to proceed with the study and has gathered data on drug-related cases over the past five years through police records. Additionally, discussions have begun with the United Nations Office on Drugs and Crime (UNODC) regarding the study’s methodology.

The last national drug assessment in the Maldives was conducted in 2012, and officials acknowledge that drug issues have become prevalent in the country. It is estimated that there are about 7,500 addicts in the Maldives.

SOURCE : PSM

Government to hefty fine on smuggling endangered species 

Ministry of Climate Change, Environment and Energy has amended the Regulation on Control of International Trade in Endangered Species and Registration of Traders and Goods, imposing a fine of USD1,945 on individuals found smuggling endangered species to and from the country. 

Under the regulation, the import, export, and re-export of endangered species are strictly prohibited. A fine of USD 1,945 will be levied for each species imported unlawfully. Additionally, the import, export, and re-export of products derived from or comprising parts of endangered species are also prohibited, with a fine of USD 648 imposed for any such unauthorised activities. Moreover, the Ministry has declared that the unlawful possession of endangered species for personal reasons is prohibited. Such species may not be sold, exhibited, or displayed publicly. Individuals engaging in these actions will incur a penalty of USD 648.

The Ministry further indicated that violations of permit conditions or registration requirements are not allowed. A fine of USD 324 will be imposed for the first violation, USD 648 for the second, and USD 1,297 for the third. For any violations beyond the third occurrence, a fine not exceeding USD 3,242 will be applied for each violation.

The Government has established guidelines outlining the necessary actions for individuals who import such species without authorisation.

SOURCE : PSM

STELCO begins work on upgrading electricity networks in Male’ City 

State Electric Company Limited (STELCO) has commenced upgradation work of the electricity networks in Male’ City.

In a social media post, STELCO confirmed the commencement of upgradation work, which aim to enhance electricity services in response to the increasing demand during the peak season. As part of this initiative, STELCO has removed the existing 630 KVA transformer located at the intersection of Majeedhee Magu and Sosan Magu, replacing it with a 1,500 KVA transformer to boost the substation’s capacity. Additionally, the company has outlined various plans to expand the distribution network’s capacity to better meet residents’ needs.

STELCO has recently entered an agreement with China’s TBEA Group Company Limited, to conduct preliminary studies prior to establishing a 150MW power plant and the installation of a high-capacity transmission line.

STELCO stated that the power plant will be established in Thilafushi. Practical work also contracted to the TBEA Group. 

The organisation noted that the power plant will serve as a central facility to substantially increase power generation capabilities, ensuring a stable and reliable energy supply. The power plant will utilise oil and gas to produce electricity and will serve not only Male’ City but also Hulhumale’, Vilimale’, Thilafushi, and Gulhifalhu.

SOURCE : PSM

MMA drafting regulation on asset-backed online money

Deputy Governor of Maldives Monetary Authority (MMA) Ahmed Imad has revealed that efforts are underway to draft a regulation pertaining to asset-backed online money. He made the statement at a panel discussion held at Maldives National University (MNU), where he discussed efforts by MMA to digitalise the fiscal system.

Under these plans, MMA has successfully established a system in which funds can be transferred within banks in a span of few seconds. MMA’s Deputy Governor Imad stated that while the Maldives Instant Payment System, “Favara”, is already connected with several banks, efforts are underway to incorporate additional banks into the system.

Emphasising on the increasing global demand for digital money, Imad indicated that the MMA is collaborating with the Capital Market Development Authority (CMDA) to develop a joint regulatory framework for the introduction of asset-backed online money in the Maldives. He also mentioned that the MMA supports the use of unbacked cryptocurrency by individuals.

SOURCE : PSM

MWSC and EPA formalise agreement for Rasfari reef restoration project

The Male Water and Sewerage Company (MWSC) has entered into an agreement with the Environmental Protection Agency (EPA) to support the Rasfari reef restoration project.

The agreement was signed by Managing Director of MWSC Abdul Matheen Mohamed and Director General of EPA Ibrahim Naeem. It aims to provide technical assistance for the restoration of coral reefs in the Rasfari area. Key initiatives include equipping the RV environmental vessel with a water treatment plant and survey equipment, as well as establishing water supply and transportation arrangements as part of the company’s corporate social responsibility efforts.

Rasfari is a popular diving spot for tourists due to its natural beauty and was declared a protected area in 1995. It also plays a vital role in the ecological health of the Male’ Atoll. Unfortunately, in August 2021, a barge collision resulted in significant damage, impacting over 2,800 acres of the reef. This agreement represents a crucial step in advancing Government initiatives to protect Maldives’ marine environment. 

SOURCE : PSM

Zakat House partners with INCEIF University for technical assistance

The Zakat House of Maldives has formalized an agreement with the International Center for Education in Islamic Finance (INCEIF) University of Malaysia for technical assistance, staff training, and promoting the Islamic economy

The agreement was signed by Izzaddin Adnan, Director General of the Zakat House, and Professor Dr Aishath Muniza from INCEIF during a delegation visit to Malaysia, following an invitation from Malaysian Minister of Islamic Affairs, Professor Dr Mohamed Naeem Mukhtar.

Recognized for its robust zakat system, Malaysia’s Islamic Affairs Authority has endorsed the establishment of a dedicated Zakat agency in the Maldives, a decision supported by President Dr Mohamed Muizzu. The visiting delegation also received training at various Zakat offices in Malaysia.

Inaugurated on December 18, 2023, the Zakat House aims to strengthen the zakat system in the Maldives and enhance the Zakat Fund to ensure effective distribution of benefits. Current efforts include digitizing services for improved accessibility and ongoing discussions with international partners to establish the Zakat House of the Maldives as an internationally recognized institution.

SOURCE : PSM

Champa brothers honoured with Face of South Asia Award at SATA

Champa Mohamed Moosa and Champa Hussain Afeef have been awarded the Face of South Asia Award at the South Asian Travel Awards (SATA) for their significant contributions to the tourism sector.

SATA Vice President Suraj Khan highlighted the transformative changes in the tourism industry since its inception in the Maldives in the early 1970s, emphasizing the critical role played by Moosa and Afeef during this evolution. He recalled the numerous challenges faced at the beginning, including limited resources and difficulties in transportation and infrastructure.

Khan praised the Champa brothers for building a robust company that has expanded its reach both nationally and internationally. Their portfolio encompasses not only tourism and hospitality but also agriculture, fisheries, real estate, water production, and financial services.

Managing Director of Maldives Marketing and Public Relations Corporation (MMPRC) Ibrahim Shiuree emphasized the significance of the Champa brothers’ contributions to launching tourism in the Maldives, stating that their pioneering work nearly 50 years ago serves as a valuable lesson. He underscored that the benefits enjoyed in the current tourism sector are a direct result of their efforts.

The SATA Awards, one of South Asia’s most prestigious tourism accolades, recognized the Champa brothers alongside three other recipients—two from Nepal and one from Bangladesh—at the 2024 ceremony held in Kathmandu. This year marked the 8th edition of the SATA Awards, during which the Maldives received 16 gold and 14 silver awards across various categories.

SOURCE : PSM