President ratifies amendment, allowing lease of islands without open-bidding

President Abdulla Yameen has ratified the amendment to Tourism Act, allowing for lease of islands, lagoons and land for tourism without an open-bidding process.

Yameen signed off on the amendment on Sunday.

The amendment was passed by People’s Majlis on June 29, during the 7th sitting of its second session.

It was proposed to People’s Majlis on behalf of government by Leader of ruling Progressive Party of Maldives (PPM) Parliamentary Group, Vilimale’ representative Ahmed Nihan Hussain Manik; and passed with the vote of 45 members.

19 members voted against the amendment.

Tourism Act has been amended so that islands can be leased without open-bidding if Ministry of Tourism is provided details of the project, if the island, lagoon or land is suitable for the proposed project from an environmental point of view, and if the party is financially and skill-wise capable, and is able to pay the acquisition fee in bulk.

It also allows for government to be able to lease the islands for 99 years despite any outstanding lease payment or fine.

It states that Ministry of Tourism needs to evaluate such proposals transparently and fairly, ask for permission from President’s Office before finalizing the lease, and share the information with Anti-Corruption Commission and Auditor General’s Office after the lease is finalized.

Important parts of the amendment:

• Permission needs to be sought from President’s Office before leasing islands, lagoons, land for tourism.

• Islands, lagoons and land can be leased without open-bidding.

• Government has the authority to sell its shares in joint ventures set up for tourism.

• Environment of islands, lagoons and land needs to be considered.

• Acquisition fee determined by government needs to be paid in bulk.

In addition to this, the amendemnt calls for a list of the number of islands, lagoons and land that will be leased each financial year to be compiled and published after discussion with President’s Office. Any changes made to the list also needs to be authorized by President’s Office.

It also introduces green tax to guesthouses at the rate of USD 3 per night – which will be implemented starting October 1.

The amendment was passed despite PPM leader, former Maldivian President Maumoon Abdul Gayoom’s plea that no PPM member vote for it as it was detrimental to the development of the country.

Maumoon’s son, PPM member and Dhiggaru MP Ahmed Faris Maumoon voted against the bill, while PPM member and Thulusdhoo MP Mohamed Waheed Ibrahim walked out of the Majlis when it was asked for a vote.