Maldives News Bulletin - Volume 166

First Lady arrives in Tanzania for the 11th Edition of the Merck Foundation Africa Asia Luminary Annual Conference

First Lady Madam Sajidha Mohamed arrived in Dar es Salaam, Tanzania, on Monday afternoon, as the Guest of Honour, to attend the 11th Edition of the Merck Foundation Africa Asia Luminary Annual Conference. Upon her arrival at the Julius Nyerere International Airport, the First Lady was warmly received by Hon. Riziki Juma, Minister of Community Development, Gender, Women and Special Groups.

As part of her official engagements at the conference, the First Lady is scheduled to deliver a keynote address at the High-Level First Ladies Panel, and make an intervention at the Merck Foundation First Ladies Initiative (MFFLI) Committee Meeting.

The Merck Foundation Africa Asia Luminary is an annual conference that brings together healthcare professionals, policymakers, and academics to discuss topics such as women’s empowerment, disease management, and expanding access to quality healthcare across Africa and Asia.

SOURCE : The President’s Office

Minister Ihsan says deportation of illegal immigrants shifts businesses to Maldivians

Minister of Homeland Security and Technology Ali Ihsan has announced that the deportation of a significant number of illegal immigrants has led to the transfer of many businesses previously controlled by foreigners into the hands of Maldivians. He made this statement while addressing inquiries from members of Parliament.

As part of the Government’s efforts to tackle illegal foreign residents, Minister Ihsan reported that 4,428 individuals had been deported as of last month. He emphasised that this shift is expected to enhance the flow of capital within the Maldivian economy. Additionally, the state has recovered more than USD 65 million from the USD 110.6 million owed by private entities in fees for foreign workers.

Minister Ihsan highlighted the expansion of “Operation Kurangi,” which has successfully collected biometric data from 8,385 immigrants. Efforts began in 96 islands, with work completed in 21 locations. He announced that the operation will extend into the Greater Male Area starting next month, with a target to complete this initiative by April next year, though he anticipates finishing by February.

The Government aims to resolve the issue of illegal foreigners within three years. Following data collection through Operation Kurangi, the ministry will begin the regularisation process within one year.

SOURCE : PSM

Land from Phase II handed over to ‘Binveriya Scheme’ beneficiaries

Land from Hulhumale’ Phase II has been officially handed over to beneficiaries under the ‘Binveriya Scheme.’ The President announced that all recipients of Phase II would receive their plots by the end of October, a promise now fulfilled with the transfer of 1,407 plots.

The previous Administration had also begun land allocations from Phase III, but 699 plots were issued from an undredged area. To rectify this, dredging for Phase III is scheduled to begin in November, as confirmed by Minister of Housing, Land and Urban Development Dr Ali Haidar.

In total, over 5,000 plots were allocated by the previous Government, and the current administration remains committed to continuing dredging efforts to support these allocations.

SOURCE : PSM

CEO of Merck Foundation pays a courtesy call on the First Lady

The CEO of Merck Foundation, Senator Dr Rasha Kelej paid a courtesy call on First Lady Madam Sajidha Mohamed on Monday. The meeting took place on the sidelines of the First Lady’s official visit to Tanzania, where she is attending the 11th Edition of the Merck Foundation Africa Asia Luminary Annual Conference as the Guest of Honour.

During the meeting, the Merck Foundation CEO briefed the First Lady regarding the foundation’s extensive work in promoting women’s empowerment and advancing disease management. She emphasised the foundation’s specialist training programs, which support capacity building in specialised medical fields.

First Lady Madam Sajidha highlighted the challenges faced by women globally, specifically highlighting infertility as an issue affecting many Maldivian women. She underscored that the current Administration prioritises women’s health, reiterating President Dr Mohamed Muizzu’s key pledge to address infertility issues in the Maldives.

Additionally, the First Lady and the CEO discussed potential avenues for the foundation to further address the pressing needs of women.

SOURCE : The President’s Office

Saudi company contracted to establish 500-tonne cold storage in Mulah

The Ministry of Fisheries and Ocean Resources has awarded a contract to establish a 500-tonne cold storage facility in Mulah, Meemu Atoll, to Saudi Arabia’s ROS for Trading Company.

Director General Eenas Naseer signed the contract on behalf of the ministry, while Deputy Director Hamad Mohamed Alminhali represented the company.

The Fisheries Minister highlighted that the facility will significantly benefit local fishermen by addressing the lack of fish purchasing options in central Maldives. Valued at USD 5.2 million, the project has a completion timeline of 300 days and will be capable of freezing 50 tonnes of fish daily.

Additionally, the Government is implementing cold storage, ice plants, and fishing boats in various regions to further support fishermen.

SOURCE : PSM

Former Attorney General recommended compensation for Expat Online System: Minister Ihsan

Minister of Homeland Security and Technology Ali Ihsan has stated that the former Attorney General Ibrahim Riffath was responsible for recommending compensation to the Malaysian company that developed the Expat Online System. Minister Ihsan’s remarks were prompted by inquiries from Parliamentarian Ibrahim Nazil regarding the government’s allocation of USD 449,237 for the development of the Expat Online System without prior justification.

Minister Ihsan clarified that the Malaysian company initially sought USD 13.7 million in compensation, alleging that the Maldives Government failed to comply with the terms of their agreement concerning the Expat Online System. He noted that the company had communicated with the previous administration through eight letters addressing this matter.

The minister further disclosed that the company’s legal representatives had sent four letters to the Maldivian state requesting financial restitution and are preparing to initiate legal proceedings against the state. Minister Ihsan indicated that the former Attorney General had advised the commencement of the compensation process, leading the President’s Office to direct the Maldives Immigration and Economic Affairs Ministry to take appropriate action.

The Expat Online System, maintained by the Malaysian company, was designed to provide essential services, including medical assistance, to Bangladeshi workers. However, in 2019, the previous Government suspended the repatriation of foreign workers from Bangladesh without consulting the service provider, which prompted the company to seek compensation in 2022, according to Minister Ihsan.

Additionally, the minister highlighted that the current Government’s agreement with the Malaysian company is expected to generate USD 58.6 million, a substantial increase from the USD 39 million previously received from the Expat Online System.

SOURCE : PSM

Budget allocated for over 300 projects were insufficient: Construction Minister 

Minister of Construction and Infrastructure Dr Abdulla Muththalib has revealed that the budget allocated for over 300 projects this year were insufficient, noting that this was the primary challenge faced to launch new projects. 

Speaking at a press conference held at the President’s Office, Minister Dr Muththalib stated that the previous Administration allocated budgets for the projects, which did not meet the state-revenue. The minister disclosed that when the current Administration took office, a total of 242 projects were ongoing and 80 newly-contracted projects were present, with the 322 projects in total ongoing. He stressed that the previous Administration allocated only USD 233 million for the projects valued at USD 2.5 billion. 

Current ongoing project include: 

- 9 airport developmental projects 

- Bridge construction 

- 29 land reclamation projects 

- 42 road developmental projects 

- 44 projects on shore protection 

- 102 projects related to water and sewerage systems. 

Addressing the media, Minister Dr Muththalib revealed the ministry’s objective of exerting maximum efforts to continue as many projects as possible without halting, regardless of the financial situation, to fulfil the pledge of President Dr Mohamed Muizzu. The minister stated that the biggest challenge the ministry faced to launch new projects were outstanding payment, which were present when it assumed office. Highlighting that these outstanding payments total USD 111 million, he mentioned that over USD 19.4 million was earmarked for contractors, irrespective of the amounts being sent to the Ministry of Finance. He added that these payments were not allocated in the supplementary budget proposed by the previous Administration last year. 

During the press, the ministry provided information on the projects it completed within a year and the projects it aims to complete by year-end. While a total of 37 projects, worth USD 127 million were completed, it aims to complete 21 projects, worth USD 97 million by the end of this year. 

SOURCE : PSM 

Government approves loans for 62 individuals involved in reef fishing 

The Government has approved loans for 62 individuals involved in reef fishing to enhance the fisheries industry. This initiative, announced by the Ministry of Fisheries and Ocean Resources, follows a loan scheme launched in February through the SME Development Finance Corporation (SDFC), which received 121 applications. 

During a meeting held with the recipients of the loans, Minister of Fisheries and Ocean Resources Ahmed Shiyam emphasised the Government’s commitment to advancing the reef fishing sector, noting the significant demand for fresh seafood in the tourism-driven economy. Managing Director of SDFC Aishath Fifsheen Ali highlighted the growing number of reef fishers and the corporation’s support for various businesses in the industry. 

The program aims to assist with building or purchasing new reef fishing vessels, repairing existing ones, installing engines, and purchasing fishing equipment. Loans of up to USD 45,574 are available without collateral, with a repayment term of 10 years and a six-month grace period. 

This initiative aligns with the Government’s policy to promote sustainable growth in the fisheries sector, contributing to food security and economic stability in the Maldives. 

SOURCE : PSM 

Thilamale’ Bridge Project is progressing slower than expected: Construction Minister 

Minister of Construction and Infrastructure Dr Abdulla Muththalib has revealed that the development of Thilamale’ Bridge is proceeding at a slower pace than anticipated. 

Speaking at a press conference, Minister Dr Muththalib disclosed that 45.82% of the entire project has been completed to date. The minister observed that the contractor lacks experience in constructing bridges in similar environments, which has contributed to certain challenges and delays in the project’s execution. Acknowledging that the Government was optimistic on completing the project for the given deadline, he stated that there may be some delays due to the unpredictable weather conditions and rough seas. 

Furthermore, the minister revealed that the Government does not see any reason to why the deadline given by the contractor must be extended. He also noted that discussions are being held with the contractors to ensure that the project progresses according to the schedule.

SOURCE : PSM 

Finance Minister says professionals are exempt from salary reduction

Minister of Finance Moosa Zameer has stated that while the salaries of employees in government-owned companies are subject to a 10% reduction, professionals in these roles will be exempt. He made this statement during an address to the Public Accounts Committee of Parliament concerning measures implemented to reduce Government expenditure.

This decision follows a directive from President Dr Mohamed Muizzu, who ordered a 10% salary deduction for employees earning above USD 781.79, excluding those in the civil service. The reduction will affect political employees, senior officials across the three branches of government, heads of independent institutions, members of Parliament, and employees of Government companies for a period of two years.

Concerns have been voiced on social media by pilots and engineers regarding the potential impact of these salary cuts. In response, Finance Minister Zameer emphasised that, although some salaries will be reduced to achieve government savings, specific professional employees will not be included in these cuts. He noted that professionals in various sectors have alternative employment opportunities, which influenced the decision.

In his remarks to the committee, Minister Zameer reaffirmed the Government’s commitment to financial reform, including efforts to establish a new operational framework for Government-owned companies, distinct from the existing Companies Act. He stressed the importance of these companies working toward independence from state reliance and having clear performance targets.

Furthermore, the Government is implementing comprehensive measures to curtail state spending, which includes salary reductions for Government officials, including the President, as well as proposals to decrease salaries for members of Parliament and the judiciary.

SOURCE : PSM

Parliamentary committee approves Ahmed Sareer as Ambassador to Saudi Arabia

The Parliament’s Foreign Relations Committee has unanimously approved Ahmed Sareer as Ambassador of Maldives to Saudi Arabia.

President Dr Mohamed Muizzu nominated Ahmed Sareer as the Ambassador to Saudi Arabia and sent Sareer’s name to the parliament, seeking parliamentary approval, on October 15. The nomination was then sent to the Parliament’s Foreign Relations Committee for further reference.

Sareer currently serves as the Ambassador at Large at the foreign ministry. Prior to this, he served as the Director of Asian Affairs of the Organisation of Islamic Conference (OIC).

Sareer has successfully completed his postgraduate degree in foreign affairs and trade, from Australia’s Monash University. Since 1986, Sareer has been serving various positions in the foreign relations services. He has also significantly contributed to the diplomatic missions of the nation. Sareer previously held the position of the foreign secretary of the Ministry of Foreign Affairs, the permanent representative of the Maldives to the United Nations (UN) and the ambassador of Maldives to the United States as well. Furthermore, he served as the ambassador of Maldives to Bangladesh as well.

SOURCE : PSM

Budget committee approves supplementary budget of USD 332 million

The Budget Review Committee has approved the supplementary budget of USD 332 million as proposed by the Government. This supplementary budget was presented to Parliament on October 24.

The submission of this supplementary budget follows the earlier approval of an initial budget of USD 3.2 billion for the current fiscal year. The proposal was debated in Parliament and subsequently referred to the Budget Review Committee, which includes members from both the Public Accounts Committee and the Economic Affairs Committee.

On Monday, the Budget Review Committee approved the budget as proposed by the Government. The motion received robust support and was passed without any amendments. Following this approval, the supplementary budget will be forwarded to Parliament for a final decision.

The supplementary budget was proposed due to the inadequacy of the state budget to fulfil the visions outlined by President Dr Mohamed Muizzu and his Administration. The budget includes USD 97.3 million as recurrent expenses and USD 227 million as capital expenditures. Notably, USD 129.7 million of the supplementary budget is allocated for the implementation of Public Sector Investment Programme (PSIP) projects, ensuring continuity in these initiatives.

The Ministry of Finance has indicated that the supplementary budget will be financed through project loans, the sale of Treasury bills, and internal loans. Specifically, the Government plans to secure USD 64 million from international sources and USD 194 million from internal sources.

SOURCE : PSM

Parliament approves appointment of Azeema as High Commissioner to India

The Maldivian Parliament has officially approved the appointment of Aishath Azeema as the High Commissioner of Maldives to India. This decision comes after President Dr Mohamed Muizzu nominated her for the position. Azeema is set to replace the current High Commissioner, Ibrahim Shaheeb.

The Parliament approved Azeema’s appointment with 79 votes in favour. The Foreign Relations Committee unanimously endorsed her nomination, passing it to the Parliament without an interview, citing her extensive qualifications and experience.

Azeema has held various positions within Government ministries since 1988, benefiting from both domestic and international training programs. She has previously served as the Ambassador to China and as the Deputy Ambassador of Maldives to the UK. Her experience also includes roles as Additional Secretary and Joint Secretary in the Ministry of Foreign Affairs, further highlighting her qualifications for this new role.

SOURCE : PSM

MMA commends government’s spending cuts

Maldives Monetary Authority (MMA) has commended the Government’s initiatives to reduce public spending. In its recent technical advice regarding the proposed supplementary budget, MMA expressed support for these efforts.

The MMA has recommended that the Government streamline and reduce expenditures in the coming period, citing potential challenges in managing cash flow without external financial assistance. Importantly, it highlighted that the Government’s cash flow has been maintained without resorting to money printing, which is crucial for ensuring economic stability and preserving the value of the Maldivian Rufiyaa.

To further alleviate Government debt, the central bank has urged the acceleration of measures to decrease recurrent expenditures while prioritising essential projects within capital expenditure. The technical advice commended the Government’s ongoing fiscal reforms and cost-cutting measures aimed at increasing revenue.

Additionally, the MMA noted that Maldives’ official reserves have declined this year compared to 2023, largely due to difficulties in securing foreign assistance. As a result, the Government is advised to strategically plan to obtain the estimated foreign aid needed to maintain adequate official reserves and meet Government expenditures. The re-establishment of the currency swap facility with the Reserve Bank of India has provided a short-term opportunity to bolster total reserves.

SOURCE : PSM

Uz Abdul Ghani Mohamed appointed as President of Tax Appeal Tribunal 

Tax Appeal Tribunal has appointed Uz Abdul Ghani Mohamed as its president. Hassan Zuhair Mohamed was elected as the vice president. 

Uz Abdul Ghani served previously as the Justice of the High Court. He was appointed as the president, in accordance with the Tax Administration Act. The Act requires the election of a president and vice president for the Tax Appeal Tribunal to be conducted by secret ballot among its members. 

President Dr Mohamed Muizzu appointed four members to the Tax Appeal Tribunal, under the Tax Administration Act. The Parliament approved the appointments of these individuals for the vacant positions today. 

A total of 13 individuals initially applied for the positions, and their names were forwarded to the Parliament’s Judiciary Committee for further consideration. The committee has since reviewed the candidates and submitted a report to the Parliament. 

SOURCE : PSM 

BML gifts bicycles to children of six islands 

Bank of Maldives (BML) has donated 300 bicycles to children aged 14-17 across six islands. The bicycles were distributed through six local non-governmental organisations. 

The islands the donations were made to and the NGOs which assisted in distribution are: 

- Dhidhoo, Haa Alif Atoll; Dhidhoo Kurimagu 

- Eydhafushi, Baa Atoll; West Wings 

- Maafushi, Kaafu Atoll; New Star Sports Club 

- Manadhoo, Noonu Atoll; Chester 

- Mulah, Meemu Atoll; Community Empowerment Linkage 

- Vilimale’, Kaafu Atoll; Save the Beach 

BML stated that this initiative aims to encourage healthy lifestyles and promote sustainable living within communities.

SOURCE : PSM

WTO praises the government’s economic reforms 

The World Trade Organisation (WTO) has commended the Government’s initiatives to strengthen economic resilience through the implementation of reforms and efforts to promote economic diversification. 

During the fourth WTO Trade Policy Review Session, several member countries recognised the Maldives’ trade policies and lauded the nation for its remarkable achievement in transitioning from a least developed country to upper middle-income status in just over a decade. They further praised the ongoing economic reforms and initiatives aimed at diversifying the economy. Delegations acknowledged that the Maldives’ economic successes demonstrate the extraordinary resilience and adaptability of its populace. At the session, representatives from the Ministry of Economic Development and Trade addressed inquiries from member countries. 

The Government has been exerting several efforts aimed at improving the financial situation of the country and bolstering economic development and growth. A key initiative has been the cessation of money printing, which was initiated by the previous administration. Additionally, efforts have been made to reduce state expenditures, settle outstanding debts, and implement amendments to address foreign currency challenges. 

In addition to the WTO, the World Bank, and the International Monetary Fund (IMF) and other international financial institutions have praised the Maldives for its strategic measures to strengthen the financial sector. 

SOURCE : PSM