Fenaka scrapped, Aasandha capped: everything Muizzu announced

What else came up: nationalisation, resort dividends and media exclusion.

Artwork: Dosain

Artwork: Dosain

1 hour ago
President Dr Mohamed Muizzu said on Monday that he was not responsible for deciding which journalists are invited to his press conferences. Several media outlets, including Dhauru, were excluded.
Invitations were sent selectively by direct message rather than through the official media WhatsApp group used for such announcements. Muizzu denied any knowledge of the exclusion when asked. 
"I am not the person who invites journalists. I am not the one who decides who should be invited and how [they should be] invited. Those are very administrative matters," he said. The President’s Office follows a published policy on press conference and both press freedom and transparency have been unprecedented under the current administration, he added, citing state funding for outlets and a media village under development.
A second journalist pressed the president on the selective invitations. Nahudha Faiz from Sosal asked whether the press conference rules superseded the constitution, referring to safeguards against narrowing fundamental freedoms.  
"There is nothing done against the constitution that journalists can note. You check this, independently, without any influence, then you will know what I am saying is true," Muizzu responded. 
The exchange was missing from the press conference video uploaded by the President's Office, which was cut short to omit the last 10 minutes of questions and answers. The full press conference was broadcast live by most TV stations. It was also posted on social media by Raajje TV.
The Maldives Journalists Association condemned the exclusion of media outlets, calling it an obstacle to press freedom and public access to information. The MJA said it received complaints from several widely-read professional outlets that were excluded.
Before taking questions, the president announced the dissolution of two state-owned enterprises, the end of full Aasandha coverage for high earners and the dismissal of a relative over a resort lease. 
Here's what came up. 

On mergers and acquisitions 

The government will seek to acquire a majority stake in telecommunications company Dhiraagu from Bahrain's Batelco. The government is also working towards buying back majority control of the Maldives Water and Sewerage Company from Japan's Hitachi. 
“We believe that increasing the Dhiraagu share to 51 percent is something necessary that has to be done for the wellbeing of the people and for broadening the economy, to move the economy forward," Muizzu said.
Government control had been divested from both companies during the first Maldivian Democratic Party government. 
The state utility Fenaka Corporation, which provides electricity, water, and sewerage to most islands, will be dissolved and merged with the State Electric Company. 
“We hear a lot about Fenaka. How much the previous government had misused Fenaka can be seen from the Auditor General’s report. Work has been done to improve and operate Fenaka." 
Once the transfer process is complete, STELCO will take over all of Fenaka's powerhouses and provide services nationwide. 
The Road Development Corporation will be merged with the Maldives Transport and Contracting Company. 
"RDC does mainly road development work, MTCC is also road developing company and a company that does industrial work. Yes, plenty of duplication plenty, and the cost is plenty. This change is being brought to deliver industrial work in an efficient system."
Along with the merger, the government will also be increasing its ownership stake in MTCC and reduce the workforce. 
The Agro National Corporation will become a subsidiary of  the Maldives Industrial Fisheries Company. The merger will help achieve economies of scale.

On Aasandha reform 

Individuals who earn a monthly income of MVR60,000 (US$3,890) will be required to make co-payments and premiums under the universal health insurance scheme. The reform is part of a cost-cutting strategy. 
"At present, full Aasandha coverage is being provided equally to the richest person and the most vulnerable person." However, neither the government nor international financial institutions believe that the current system was fair, he added.
The change is expected to save MVR287 million annually with implementation planned for October. Earnings of MVR60,000 a month is also the threshold for paying income tax.
The government sees no reason to provide free healthcare to the wealthy, he said. 

On public ownership of resorts

The tourism sector should not be in the hands of a specific group, who alone should become wealthy from the industry.
“So we intend for each Maldivian citizen without discrimination, if they have the Maldivian identity card, equally for everyone, 10 resorts to be developed, and to establish the shareholders of these resorts to be all Maldivian citizens, and to designate all Maldivian citizens as resort shareholders and create a system where [they] can get dollars." 
The selection of lagoons and islands within Malé atoll and elsewhere was completed this week. The hope is that some of these initiatives will begin in November and for the resorts to be operational within three years. 
“The result will be, each one of you, every Maldivian citizen will be a resort shareholder. And God willing once these resorts are opened, money will be deposited in dollars into every person’s account."

On pending civil court cases

The government will propose changes to the Civil Procedure Code to address challenges and delays faced in court cases, making it quicker and more efficient while make the procedure easier for litigants. 
The amendments will include the creation of a small claims court to resolve minor disputes. 
"God willing, I will be submitting the changes required to the law. This is also something we stated in the manifesto."
Cases involving MVR100,000 can be submitted easily and concluded swiftly, which will be convenient and beneficial for small businesses as well. 
To make it conducive to businesses, the judiciary needs to be more efficient  Technical studies are being concluded to determine whether a commercial division should be established at the civil court or if a separate mercantile court should be set up. 

On respect

Cabinet approved the launch of a national respect initiative on Sunday, to run on every inhabited island. But opposition parties are discouraging members from taking part. 
"Beginning a national initiative to provide respect, is not something just being said. This is something we want to carry out with a lot of seriousness. But we do regret that in our effort to discuss with all groups, we did not get compliance from opposition political parties. Invitations were sent. It's very regrettable." 
Boards displaying Islamic counsel and sacred phrases will be placed along the main roads of every inhabited island to mark 900 years since the Maldives embraced Islam. Construction of the biggest mosque in the country will commence at an event on 13 September 13 to commemorate the occasion. 

On dollars, housing and airports and arson

“From the change we made, resorts will need to convert more from the next month onwards. So these changes cannot come overnight."
Beyond e-commerce, people are facing challenges in making purchases from home for personal use. 
These are 24- to 30-month-long housing projects underway. Aside from the construction of social housing units, the Bank of Maldives is offering an affordable Islamic finance loan. The government will also open a broader scheme later this year to provide equity finance. 
The government was not able to develop the Kaadedhdhoo international airport as quickly as planned. It involves a foreign investor who had shown interest. As the large initiative cannot be funded solely from the state budget, the government is working on various options and is hoping to commence work this year.

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