Parliament passes bill restricting council powers
The final vote in Parliament took place on Wednesday, with 51 members voting in favour and eight opposition MDP members voting against it.
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The Parliament has passed a government-proposed amendment to the Decentralisation Act aimed at limiting certain financial powers of local councils during the final year of their term.
The bill, submitted on behalf of the government by Progressive National Congress (PNC) MP Ibrahim Hussain, was debated on Monday and referred to the Local Government Committee the same day. The committee reviewed and approved the bill without major changes in two sittings held on Tuesday.
The final vote in Parliament took place on Wednesday, with 51 members voting in favour and eight opposition Maldivian Democratic Party (MDP) members voting against.
The amendment introduces restrictions on three key financial decisions councils can make within the last 12 months of their term. These decisions now require government approval through the Ministry of Finance and the Local Government Authority (LGA). The restrictions include:
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Hiring employees on a permanent or contract basis for the council or council office.
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Leasing or granting land, forests, or forest areas under the council's jurisdiction.
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3-
Initiating development projects not already included in council development plans.
With the current council term set to expire in May next year, these restrictions will apply to the remaining 10 months of their tenure.
The bill also introduces three conditions for councils to operate businesses:
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The activity must not be one already carried out by private entities in the same locality.
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It must be essential for the structural development of the island or islands concerned.
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The investment must exceed MVR 10 million.
Businesses that do not meet these criteria will be required to cease operations within three months of the bill becoming law.
Additional provisions:
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Council bank accounts must be managed according to rules set by the Ministry of Finance. Councils must provide account information when requested.
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Funds allocated to councils will be disbursed after deducting any outstanding taxes or utility payments owed to the state. Amounts overdue for six months will also be deducted.
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Councils cannot charge rent for land or buildings provided to service providers for essential services, such as plots allocated to STELCO or Fenaka for electricity distribution.
The amendment has faced criticism from the MDP and several local councils, who argue it limits council autonomy and restricts local-level decision-making ahead of the upcoming council elections.
