Azim says vehicle fee, grant cuts will hamper Malé City Council services

Malé Mayor Adam Azim has accused the government of attempting to obstruct services provided by the City Council by removing vehicle fee revenue and reducing grants allocated to the council.

Speaking at a Malé City Council meeting on Wednesday, Azim said the changes would affect the council’s ability to finance salaries and services, including mosque and public housing maintenance.

His remarks came as the council approved a proposed budget of MVR 671 million for next year, with a deficit exceeding MVR 338 million.

The council expects to generate MVR 59.1 million in revenue next year, with its finances affected by changes introduced under the Public Land Transport Act ratified by President Mohamed Muizzu on Monday.

Under the law, responsibility for managing roads in Malé has been removed from the City Council until 2029, with management of the capital’s land transport system transferred to the Greater Malé Transport and Mobility Office under the Ministry of Transport.

Vehicle fees previously collected by the City Council will instead be paid into the Land Transport Mobility Fund administered by the ministry.

According to the council, the change will result in the loss of about MVR 125 million in annual vehicle fee revenue. The council will also lose MVR 13 million previously allocated for road maintenance.

The proposed budget deficit also accounts for unpaid water and electricity bills accumulated by the council.

Azim said the government had also withheld an MVR 13 million block grant for the current month, affecting funds allocated for employee salaries.

“Because we had saved some funds previously allocated to us, we were able to disburse salaries this month despite the grant cut. However, next month, we will not have the budgeted funds within our grant allocation to pay salaries,” Azim said.

“It was only because we saved prior receipts that we managed to pay this month’s salaries.”

Azim alleged that the reduction was part of a series of government decisions intended to make it difficult for the council to operate.

“Cutting the MVR 13 million grant this month is part of several government actions making it difficult to run this institution. I wanted to share this for the information of council members,” he said.

The mayor said the council would seek to reduce expenditure as it adjusts to the loss of revenue.

Among the areas that could be affected is mosque maintenance. Azim said the council had been able to reduce complaints relating to mosque maintenance but that the loss of vehicle fee revenue would make financing the work more difficult.

He said that although responsibility for the capital’s roads had been transferred from the council, some road-related work would continue to fall within its responsibilities.

Azim also raised concerns about the cost of maintaining public housing.

According to the mayor, the council receives about MVR 12,000 per month for flat maintenance but has spent more than MVR 7 million on repairs so far this year.

Azim alleged that changes to the law and council financing were intended to prevent the council from providing services that had gained public support.

“Public affection cannot be taken by force. If you want love, treat the public with love and kindness,” Azim said.

“God willing, we will continue serving the people to the best of our ability; we will not back down.”