As the December 7 deadline that the Maldivian government set for
throwing out the Male airport operator, the India-based multinational GMR,
nears, two developments have forced the government on the back-foot: one, a
piece of legislation that has been passed in the Majlis (Parliament), and two,
the main Opposition party, the Maldivian Democratic Party’s reformed ways.
Parliament on December 3 voted 41-34 to approve amendments to
parliamentary rules to conduct no-confidence votes to impeach the President and
members of his Cabinet by a secret ballot. The success of the vote was the
first MDP victory in several months. It was an MDP initiative, and this time,
it had the support of two parties that had earlier thrown its lot with the
government. The MDP of the former President, Mohamed Nasheed, finding allies is
the second development.
“We have submitted a petition to move a no-confidence motion to remove
the Defence Minister [Mohamed Nazim] and the Home Minister [Mohamed Jameel]
just a short while ago,” the MDP’s International spokesperson Hamid Abdul
Gafoor told The
Hindu over
telephone from Male on Tuesday evening. “With the JP and the DRP supporting us
in the vote [on December 3], we are sure we will have the numbers when the
motion is taken up for voting,” he added.
Not satisfied with the parliamentary attack on the government, the MDP
also organised street protests on Tuesday to “protest the manner in which the
government was treating foreign investments.”
At the heart of the tussle is the modernisation of the Ibrahim Nasir
International Airport, which was handed over to GMR after a process of
competitive international bidding overseen by a World Bank body. Last year, GMR
decided to levy a user development free of $25, which led to widespread
protests. Later, a court order stayed the charge.
After Mr. Nasheed resigned as President on February 7, 2012, the new
government, led by Mohamed Waheed wanted to review the terms of agreement
granted to GMR. A few members of the Waheed government were openly against the
airport operator and had been demanding that GMR leave the country. The GMR
investment is the largest FDI in the Maldives.
Status quo was ordered on Monday, on a Singapore-based arbitration. The
news delighted the MDP, and made some elements of the Waheed government
defiant. “I am delighted to hear that the Singapore courts have intervened in
this dispute and upheld the rule of law. I look forward to GMR continuing its
operations and completing the construction of a new, world-class airport
terminal,” Mr. Nasheed said after the verdict.
Ministers Mr. Nazim and Mr. Jameel refused to back off and GMR was given
seven days to clear out. As a first step to hindering operations, Maldives
Immigration refused to renew the work visas of the foreign staffers whose visa
was due for renewal.
Dr. Waheed has adopted a double-speak that is central to the problems
that India, and Indian firms have faced in the Maldives since the transition
since February this year. For instance, speaking at a function to mark the 47th
anniversary of establishment of diplomatic relations between Male and New
Delhi, Dr. Waheed said that the Maldives would always welcome Indian investments.
“International businesses that have done well are those that are built on
mutual trust and respect… small countries are very conscious of their national
pride and sovereignty… It is not a secret that we are currently facing some
difficulty with some Indian companies, we must overcome these difficulties and
adamantly resist such difficulties from affecting our very close and brotherly
relationship.”
Dr. Waheed has repeatedly made such commitments, and said he believed in
solving issues through negotiations. Despite the assurances, the Maldives is
now forcing India’s hand on the GMR issue.
· GMR
investment is the largest FDI in Maldives
· I want
GMR to continue operations: Nasheed
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