Over 50 councils object to limits on powers
The amendment bill, passed in Parliament on Wednesday, limits specific financial actions by councils during the final year of their five-year term.
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More than 50 island and atoll councils have issued a joint statement expressing concern over a newly passed amendment to the Decentralisation Act, which imposes restrictions on the financial powers of local councils.
The amendment bill, passed in Parliament on Wednesday, limits specific financial actions by councils during the final year of their five-year term. These restrictions apply unless prior permission is obtained from the government, represented by the Ministry of Finance and the Local Government Authority (LGA).
Key restrictions introduced in the amendment include:
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Hiring employees (both permanent and contract-based) for council offices
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Leasing or granting land, forests, and forest areas under the council’s jurisdiction
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Initiating new development projects that are not part of pre-approved council development plans
As the current term of councils ends in May, the remaining ten months of their term now require government authorisation for these financial decisions.
The councils issuing statements against the amendment argue that the changes effectively limit their ability to carry out duties legally entrusted to them for the full five-year term. Many stated that the restrictions will obstruct the implementation of ongoing development plans and prevent councils from fulfilling local needs.
Some councils also raised concern that the amendment may halt basic services and block efforts to generate revenue for communities.
Councils issuing statements of concern include:
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Haa Alif Atoll: Horafushi, Maarandhoo, Thakandhoo
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Haa Dhaalu Atoll: Kulhudhuffushi City Council, Kumundhoo, Hanimaadhoo, Neykurendhoo
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Shaviyani Atoll: Foakaidhoo, Feydhoo, Kanditheem, Noomaraa
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Noonu Atoll: Kendhikulhudhoo, Lhohi, Manadhoo, Landhoo, Noonu Atoll Council
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Raa Atoll: Alifushi
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Baa Atoll: Goidhoo, Maalhos, Kendhoo, Hithaadhoo, Baa Atoll Council
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Lhaviyani Atoll: Hinnavaru, Kurendhoo
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Kaafu Atoll: Maafushi, Dhiffushi, Gulhi, Kaashidhoo, Kaafu Atoll Council
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Alif Alif Atoll: Bodufulhudhoo, Ukulhas, Thoddoo, Maalhos, Mathiveri, Feridhoo
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Thaa Atoll: Vandhoo, Omadhoo, Kandoodhoo, Kinbidhoo
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Meemu Atoll: Dhiggaru, Kolhufushi, Maduvvari
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Faafu Atoll: Feeali, Magoodhoo
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Laamu Atoll: Gan, Kalaidhoo, Laamu Atoll Council
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Gaafu Alif Atoll: Kolamaafushi
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Gaafu Dhaalu Atoll: Gadhdhoo, Hoadhendhoo, Fiyoaree, Nadella, Thinadhoo City Council
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Addu City Council
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Fuvahmulah City Council
Other changes in the amendment include:
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Council bank accounts must be operated according to regulations prescribed by the Ministry of Finance. Councils are required to provide account statements upon request.
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State funds allocated to councils will be released after deducting taxes and utility charges owed to the State. Any dues pending for more than six months will be subtracted before disbursement.
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Councils are prohibited from charging rent for land or buildings allocated to provide essential services, such as facilities used by service providers like Stelco or Fenaka.
