Councils oppose proposed changes to Decentralisation Act

Several local councils have expressed opposition to a proposed amendment to the Decentralisation Act, which seeks to revise regulations governing the financial autonomy of councils.

The proposed amendment bill was submitted to the Parliament and approved by the committee on Tuesday. It includes provisions that would limit the financial independence of local councils. 

In response, multiple councils have released press statements outlining their concerns. According to the statements, the amendments would significantly restrict the operational capacity of councils and obstruct local development efforts. Specific concerns raised include:

AA. Thoddoo Council stated that the proposed changes would remove financial independence, resource control, and development opportunities from councils.

Kolamaafushi Council noted that the amendment undermines the democratic aspirations of citizens and referred to the move as a “systematic effort to deprive people in rural areas.”

If enacted, the bill would authorise local authority companies to undertake projects exceeding MVR 10 million. However, for smaller councils, particularly in rural areas, the ability to form such companies would be restricted.

Other councils expressed that the bill contradicts the principles of decentralisation by centralising authority and limiting local governance, potentially reducing councils to a position of dependence on the central government.

A total of 30 councils have released statements opposing the amendment and have urged the government to withdraw the bill.

The proposed amendment also aims to: