Committee passes Decentralisation Act amendments amid opposition
One of the main points of contention is a provision preventing councils from initiating new activities without prior approval during the final year.
The Parliamentary Committee on Decentralisation has approved amendments to the Decentralisation Act, following a vote held on Tuesday evening. The changes were passed despite objections from the Maldivian Democratic Party (MDP) and several island councils.
The proposed amendments, which were supported by members of the ruling People’s National Congress (PNC), include measures that limit certain powers of local councils—particularly in the final year of their elected term. The MDP has raised concerns that the amendments reduce council autonomy and centralise authority under the government.
One of the main points of contention is a provision preventing councils from initiating new activities without prior approval during the final year of their term. The MDP stated that this restricts elected councils from carrying out their responsibilities independently.
Approximately 30 councils have issued statements requesting the bill’s withdrawal, citing concerns over its impact on local governance. Despite this, the committee passed the bill with support from five PNC members:
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Henveiru North MP Ahmed Aifan
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Ungoofaru MP Ibrahim Shifaz
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Vilufushi MP Hassan Waheed
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Gemanafushi MP Asadullah Shihab
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Kolamaafushi MP Ibrahim Didi
The sole MDP representative on the committee, Keyodhoo MP Mohamed Niushad, voted against the bill. The amendments were passed without substantial revisions.
Key Provisions in the Amended Bill
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Council Accounts: Council bank accounts are to be operated following procedures set by the Ministry of Finance. Councils are required to provide account statements when requested.
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State Funds: Funds allocated by the State will be disbursed after deducting taxes or outstanding utility bills owed by councils.
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Rent Restrictions: Councils will be barred from charging rent on land or buildings allocated to entities providing basic services, such as STELCO or Fenaka.
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Council-Owned Businesses: The scope of business activities permitted for councils is narrowed. New conditions require that: The business must not duplicate activities already conducted by private parties on the same island(s). The business must be necessary for the structural development of the local area. The investment must exceed MVR 10 million. Businesses that do not meet these criteria must cease operations within three months of the law’s enactment.
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End-of-Term Restrictions: In the final year of a council’s term, the Ministry of Finance and the Local Government Authority (LGA) will oversee decisions related to:
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Recruitment of permanent or contract staff. Leasing or allocation of land and natural resources. Initiating development projects not listed in the approved council development plan.
In a statements issued after the committee vote, several councils stated that the amendments would limit their operational capacity and hinder development efforts. The councils warned that the restrictions could delay projects and reduce public trust in local government institutions. They also raised concerns that rural development opportunities could be reduced as a result.
The bill will now proceed to the floor of Parliament for further consideration.
