Govt cuts MVR 74 million in block grants to Malé City Council, mayor says

Malé Mayor Adam Azim has said the government has cut MVR 74 million in block grants allocated to Malé City Council, creating financial difficulties that have affected the council's operations and its ability to pay staff salaries.

Speaking at the council's official general meeting on Wednesday, Azim said the funding, which had been included in the council's budget, was withdrawn over the past three months.

He criticised the decision, saying it would affect services provided to residents of the capital.

"This is a council that provides major services to the public. Therefore, we consider [the budget cuts] to be an act against the people," Azim said.

"However, we will try to continue providing these services to the public within the limits of the available budget."

Azim said the funding cuts had come while the council was working to recruit qualified personnel to improve its services.

He said the reduction in funding had created obstacles to recruitment and made it more difficult for the council to carry out its responsibilities.

The mayor also raised concerns over the loss of revenue following the government's takeover of 14 properties that had been under the council's jurisdiction.

According to Azim, the council has stopped receiving income generated from these properties, further reducing its available resources.

He said the council's financial position had also been affected by the removal of vehicle fee revenue, which had been one of its largest sources of income.

Azim said the combined impact of the funding cuts and revenue losses had created difficulties in paying council employees' salaries.

He added that the council had formally informed the Ministry of Finance of the situation through a letter.

Previously, responsibility for administering the land transport system in the Greater Malé area had been assigned to the Greater Malé Transport and Mobility Office, which operated under Malé City Council.

However, under the revised arrangements, revenue previously collected by the council through vehicle fees will instead be directed to the Land Transport Mobility Fund, established under the law.

The fund is administered by the Ministry of Transport.

The mayor's remarks come amid concerns over the financial resources available to Malé City Council to maintain public services, recruit staff and meet its operational expenses.