Govt proposes bill to limit council powers in final year of term
If the bill is passed and ratified, the changes will come into effect immediately.
Top Stories
-
PNF to hold special rally at Artificial Beach on Wednesday
-
MDP MP says Mauroof arrest may breach parliamentary privileges
-
Complaint filed with JSC over judge’s remarks on defence lawyer
-
Court orders 5-day remand for MP Zakir over fishermen’s protest
-
Chinese firm awarded MVR 91.8M Hulhumalé road works contract
The government has submitted a bill to the Parliament seeking to amend the Decentralisation Act to impose restrictions on certain actions by local councils during the final year of their term.
The bill was introduced on behalf of the government by Ibrahim Hussain, a Member of Parliament representing the People’s National Congress (PNC), on Monday,. The Maldivian Democratic Party (MDP), which is in opposition, expressed concern over the proposed legislation.
According to the bill, the purpose of the amendment is to:
-
1-
Regulate councils' business-related activities;
-
2-
Review procedures for awarding grants to councils;
-
3-
Establish rules applicable to councils during the final year of their term.
The proposed changes would require council decisions on three key financial matters to be approved by the Ministry of Finance and the Local Government Authority (LGA) during the final year of the council's term. These matters include:
-
Recruitment of staff for the council office, either on a permanent or contract basis;
-
Leasing or allocation of land, forests, and forest areas under council jurisdiction;
-
Commencement of new development projects that are not part of the council’s approved development plan.
The term of the current councils is scheduled to end in May 2026, with approximately 10 months remaining. If passed, the amendment would be applicable for the remainder of the current term.
The bill also introduces restrictions on councils establishing commercial entities. Under Article 70 of the existing Act, councils are permitted to form companies to conduct business. The proposed amendment narrows this provision, stipulating that a council may only form a business entity if the following three conditions are met:
-
1-
The activity is not already carried out by private individuals in the relevant island or islands;
-
2-
The activity is considered essential for the structural development of the island or islands;
-
3-
The investment or capital involved exceeds MVR 10 million.
Companies that do not meet these conditions will be required to cease operations within three months of the amendment being enacted.
Other provisions in the bill include:
-
Council bank accounts must be operated in line with procedures set by the Ministry of Finance. Councils must provide account statements upon request;
-
Funds allocated to councils from the state budget will be disbursed after deducting outstanding taxes or utility bills owed to the state;
-
Councils will not be permitted to charge rent for land or buildings allocated to service providers offering basic utilities, such as electricity services by STELCO or Fenaka.
If the bill is passed and ratified, the changes will come into effect immediately. Relevant regulations must be drafted within 30 days of the amendment coming into force.
