A meeting between MPs on pay cuts ended in a heated argument on Thursday after members of opposing parties accused each other’s governments of economic mismanagement.
The informal meeting was held in response to a letter from President Mohamed Nasheed requesting all MPs take a pay cut to their Rf62,500 (US$4,800) salaries, in line with the government’s austerity measures.
But while two MPs told Minivan News that most were against taking pay cuts, MP for Madaveli Mohamed Nazim from the ruling Maldivian Democratic Party (MDP) insisted that most members of his party supported the request.
“I would say 80 or 90 per cent were against it,” said Gemanafushi MP Ilham Ahmed from the main opposition Dhivehi Rayyithunge Party (DRP), adding that MPs from his party did not believe the austerity measures were warranted.
“We don’t believe the country is in special economic circumstances. The government needs to define it,” he said.
Likewise, independent MP for Kulhudhufushi South Mohamed Nasheed said “MDP and DRP alike” were opposed to taking pay cuts.
In June, MPs voted against a proposal by Nasheed to review and reduce their salaries. Out of 67 MPs in attendance, 47 voted against proceeding with the bill, 14 voted in favour and six abstained.
But, speaking to Minivan News today both Nazim and Nasheed said they were prepared to take pay cuts.
“My objection isn’t about the pay cut. It has to be cut. But my issue is with the aggressive manner in which he [President Mohamed Nasheed] has set about going to do it,” said Nasheed, referring to the language used in the letter.
He added that at the meeting, MPs argued that the government had strong-armed the civil service commission into accepting pay cuts for civil servants.
Special circumstances
Ilham said that while he supported the spirit of the pay cut, he was not convinced of the government’s “special economic circumstances”.
In August, the government introduced a package of cost-cutting measures to alleviate the budget deficit, including reductions in salaries of up to 20 per cent for all civil servants and political appointees ranked deputy minister and above.
The following month, both the president and the vice president took pay cuts of 20 per cent to their salaries; a move that was repeated by the ex-President Maumoon Abdul Gayoom in October for both his monthly state benefits and living allowance.
But, said Ilham, despite claiming financial difficulties the government continued to make political appointments and was extravagant with its spending.
“There’s a lot of wasteful expenditure like that underwater cabinet meeting and the democracy fair. So it doesn’t add up,” he said.
Responding to the allegations of profligacy, Nazim accused the previous government of having more political appointees than the current administration and defended the recent appointment of ambassadors.
“How can a country operate without ambassadors?” he said.
He added the government had vowed to reverse the pay cuts once it increased its revenue beyond Rf7 billion (US$544 million).
Last month, the president said that civil servants’ pay cuts were a temporary measure and would return to their former levels once the economy recovered.
Bankers
Both Ilham and Nasheed said that in the meeting, MPs referred to the financial assistance they were obliged to give to their constituents as a reason against reductions to their salaries.
“MPs said they had commitments to constituents asking for money. You have to do it, even in Male’,” said Nasheed. “You can’t say no because of the pressure. Everybody considers their MPs as their bankers.”
All three MPs said the meeting ended after Reeko Moosa Manik, MDP parliamentary group leader, accused the former government of embezzling state funds for the 30 years they were in power.
In response, DRP MP for Thohdhoo Ali Waheed blamed the current economic crisis on the government’s mismanagement.
Nazim said he left the meeting after he realised they would not reach a consensus. “They don’t have the interest of the country at heart,” he said.
Mohamed Zuhair, president’s office press secretary, said the president would be meeting with MPs from his party tonight to try and persuade them to push for a pay cut.
“He will be speaking from a position of strength. Even Gayoom has taken a pay cut,” he said.
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