As the term of local councils nears its end, the Maldivian government has put forth amendments to the Decentralization Act, seemingly aiming to curtail the powers of councils, particularly concerning employee recruitment and the allocation of land and lagoons.
These proposed changes are drawing criticism from the opposition, who argue they are an attempt to centralize control.
The amendments, introduced by PNC MP Ibrahim Hussain, seek to redefine the operational scope of local authority companies established by councils. They also propose revisions to rules governing state funding and outline stricter guidelines for councils regarding key financial decisions in their final year.
The bill outlines five main amendments:
Local Authority Company Operations: These companies would be prohibited from engaging in economic activities already undertaken by private enterprises in their operating islands. Their work must be essential for rural infrastructure development, and projects would require an investment exceeding MVR 10,000,000. Conflicting businesses would be discontinued within 90 days of the amendment's enactment.
Rent from Public Service Allocations: Councils would be barred from charging rent for land or buildings allocated to parties providing basic services to the public.
Revenue Allocation: Councils would receive revenue after deducting any state taxes, and if they have not paid for public services for over six months.
Bank Account Maintenance: Councils would be required to maintain bank accounts according to Ministry of Finance procedures and provide statements upon request.
Restrictions in Final Year: If a council's term is 365 days or less from expiration, certain actions would be restricted without adherence to norms set by the Ministry of Finance and the Local Government Authority (LGA). These include:
Recruitment of contractual or long-term employees for council offices.
Lease and grant of land, lagoons, and reef areas under council jurisdiction.
Initiation of new development projects not specified in council development plans.
The government's proposal follows similar discussions in the past, and the 20th Parliament, which held a supermajority for the current government, previously amended the Decentralization Act multiple times.
The opposition views these reforms as an attempt to restrict the autonomy of councils and bring them under greater government control. Notably, the Ministry of Local Government, established by the current administration as the parent body for councils, appears to have no direct powers within these proposed amendments.