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Crisis buffer cash ‘being misused’
By GEOFFREY BEW
Published: 5th February 2009
BAHRAIN has squandered millions of dinars which could have been used as a buffer against the impact of the global credit crunch, says a key political activist.The government should have a surplus of around BD2 billion because of inflated oil prices before the crisis, but instead is BD400m in deficit, said National Democratic Action Society secretary-general Ebrahim Sharif Al Sayed.
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Crisis buffer cash ‘being misused’
By GEOFFREY BEW
Published: 5th February 2009
BAHRAIN has squandered millions of dinars which could have been used as a buffer against the impact of the global credit crunch, says a key political activist.The government should have a surplus of around BD2 billion because of inflated oil prices before the crisis, but instead is BD400m in deficit, said National Democratic Action Society secretary-general Ebrahim Sharif Al Sayed.
He said jobs were already being lost in several sectors, including banking, and warned that if people continued to be laid off it could prompt widespread civil unrest.
Mr Al Sayed said Bahrain’s budget deficit was now four times higher than the last time the country went through a similar economic downturn in 1998.
He also pointed to the impact of the financial crisis on Dubai, whose population is predicted to decrease by 10 per cent as expatriates who lose their jobs flee the country.
“We may see more people becoming unemployed,” said Mr Al Sayed.
“It can easily lead to widespread riots, especially if the economic conditions get worse.
“The deeper the recession the more security issues will be at stake and it will be difficult for the government to control.”
The GDN reported last month that banks in Bahrain had sacked dozens of staff as a result of the economic downturn.
General Federation of Bahrain Trade Union (GFBTU) deputy general-secretary Ebrahim Hamad also confirmed he had received numerous complaints from bank workers who had lost their jobs.
Mr Al Sayed said it took several months for the true impact of the credit crunch on the US economy to become clear and expects a similar situation in Bahrain.
“I expect we will have a major problem by the second or third quarter of the year, particularly in the banking sector,” he said.
“It employs around 9,000 people, 70 per cent of whom are Bahrainis.
“Hundreds of people will lose their jobs and I think the industry will shrink by 20pc, especially investment and wholesale banks.”
Mr Al Sayed was speaking ahead of a meeting last night to discuss the arrest of 17 suspects accused of planning to carry out a terrorist attack on Bahrain’s National Day.
Bahrain Human Rights Society (BHRS) assistant general-secretary Dr Abdulla Al Deerazi attended the event, along with members of the legal teams of some of those arrested.
They debated allegations that the suspects had been tortured in custody and why the men’s videotaped “confessions” had been broadcast on national television.
The latest suspects, Haq Movement for Liberties and Democracy chief Hassan Mushaima, media and international relations director Dr Abduljalil Al Singace and religious scholar Mohammed Al Moqdad, were arrested in overnight raids on their homes on January 26.
Dr Al Singace was released the following day, but has been banned from leaving Bahrain, while the other two have been remanded in custody for 14 days.
The three were allegedly detained for failing to appear at the Public Prosecution after being summoned for questioning.
Their arrests prompted sporadic clashes between police and protesters in several villages including Sanabis, Daih, Sehla, Jidhafs, Karzakan, Demistan and Malkiya.
Amnesty International has demanded an independent investigation into claims that 14 of the suspects arrested last month for the alleged terror plot had been mistreated in police custody.
However, the Public Prosecution has strongly denied any mistreatment of the detainees, stating that it is committed to the principles of International Convention for Human Rights.
“There are no prisoners of conscience in Bahrain and nobody’s freedoms have been restricted because of their views, based on international human rights laws,” it said in a statement.
It also expressed surprise at Amnesty International’s comments, saying they contained “great inaccuracies”.
The December 17 plot allegedly included ambushing policemen, destroying public property and attacking shopping malls, markets and hotels with homemade explosives.
geoff@gdn.com.bh
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