India may freeze aid to 'unstable Maldives'

Withholds $25 million to the nation as it may fall into the wrong hands

India will proceed with extreme caution in its relations with the Maldives because of “concerns that the situation in the Maldives is unstable and rule of law is not being followed”.

Persons familiar with developments in the tiny atoll state say $25 million in standby credit that India had offered to the Maldives may have to be held in abeyance lest it may “fall into the wrong hands”.

“It is not India’s obligation to support the pay and allowances that the government of Maldives offers to its employees,” said the source, when asked if it was true that Male might not be able to pay salaries of government servants and police officials if India was to withhold aid to that country.

FACT FILE: MADIVES

1965 The British colony gains independence

Until 2008 President Maumoon  Abdul Gayoom rules the one-party state for close to three decades

1980-88 Gayoom survives three coup attempts; the last, mounted by Sri Lanka-based Tamil mercenaries, was foiled by Indian forces

2008 Gayoom loses to Mohamed Nasheed in elections; Nasheed amends the constitution to ensure president is elected by direct vote for a five-year term (eligible for a second term)

2012 Nasheed resigns after weeks of public protests over his controversial order to arrest a senior judge; Vice-President Mohamed Waheed Hassan Maniku assumes presidency

July 2013 Elections due 

MALDIVES HAS TWIN PROBLEMS

1 According to US estimates in 2005 (as revealed in WikiLeaks), more than 10% of population is involved in drug abuse. There is no evidence to suggest that Maldives is a significant transshipment point for narcotics or that Maldives produces or cultivates narcotics

2 With shallow roots of democracy, a highly competitive, elite and a dispersed population, the country could be vulnerable to a covert or overt takeover by al-Qaeda or elements sympathetic to it. When in power, Nasheed said he was almost certain the plot to bomb Mumbai in 2008 was hatched with the knowledge of fundamentalist groups in Maldives

 

India is concerned that the Male government is only an interim one and, therefore, unrepresentative. There are concerns over the recent legal attack on GMR and the stated intention of the Maldivian government to neither respect arbitration proceedings, nor verdicts from international courts. “Arbitration proceedings are already on. GMR has got an injunction against an order of a lower court. If even after that, the government is saying ‘nationalise this project’, then it is not following its own rules,” said the source.

In such circumstances, India is unsure if funds meant for normal development activities would be put to the purpose they were meant for. “Maldives has an interim government. There are political groupings, which are obviously fundamentalist in their outlook. Indian taxpayers’ money should not subsidise this kind of activity,” the source opined.

India also funds a tourism and hospitality centre in Maldives, which is nearly complete. “So far, all the 300 Indians in the Maldives are safe. But some of the statements made by Maldivian leaders are frankly alarming,” the source said.