MDP challenges Decentralisation Act amendments in High Court
The amendments, which restrict some financial powers of local councils in the last year of their term, have faced criticism from the MDP and several councils.
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The Maldivian Democratic Party (MDP) has filed a petition in the High Court seeking to overturn certain amendments to the Decentralisation Act recently ratified by President Mohamed Muizzu.
The amendments, which restrict some financial powers of local councils in the last year of their term, have faced criticism from the MDP and several councils.
MDP lawyer Ahmed Mauroof told Atoll Times that the party is asking the court to quash two key provisions:
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The article prohibiting certain financial activities in the last year of a council’s term without government approval.
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The provision requiring that investments or capital spending must exceed MVR 10 million.
The court has not yet decided whether to accept the case.
Under the amendments, councils cannot in the final year of their term undertake three types of financial activities without government approval:
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Recruitment of permanent or contract staff for the council office.
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Lease or granting of land, forests, or forest areas under council jurisdiction.
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Initiation of new development projects not included in council development plans.
The current councils’ term expires in May 2026, leaving about ten months of their mandate. For the remainder of this period, such activities will require government approval.
Other amendments include:
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Council bank accounts must be maintained in accordance with regulations set by the Ministry of Finance, and councils must provide account statements when requested.
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State allocations to councils will be paid after deducting any outstanding taxes or utility bills owed to the state for more than six months.
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Councils cannot charge rent for land or buildings allocated to parties providing basic services, such as land granted to STELCO or Fenaka for electricity provision.
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