Parliament passes controversial amendments that curb council powers

The ruling People’s National Congress (PNC) on Wednesday used its supermajority in the Parliament to pass amendments to the Decentralization Act – amendments that multiple local councils have publicly criticized.

The amendments proposed by the government to the Decentralization Act are designed to curb the powers of local councils, including in matters of recruitment of staff, lease of land and lagoons under the jurisdiction of councils, and run developmental projects.

This sparked concern from the main opposition Maldivian Democratic Party (MDP), as well as several councils.

But despite the pushback, the bill passed with a majority vote of 45-7 on Wednesday afternoon.

It final floor vote came after the PNC used its clear majority in the Decentralization Committee to push through the amendments without any changes on Tuesday night, after giving just 19 hours for public opinion on the bill. The only opposing vote came from the sole MDP parliamentarian who sit in the committee; Keyodhoo MP Mohamed Niushad.

The bill passed on Wednesday outlines five main amendments:

• Local Authority Company Operations: These companies would be prohibited from engaging in economic activities already undertaken by private enterprises in their operating islands. Their work must be essential for rural infrastructure development, and projects would require an investment exceeding MVR 10,000,000. Conflicting businesses would be discontinued within 90 days of the amendment's enactment.

• Rent from Public Service Allocations: Councils would be barred from charging rent for land or buildings allocated to parties providing basic services to the public.

• Revenue Allocation: Councils would receive revenue after deducting any state taxes, and if they have not paid for public services for over six months.

• Bank Account Maintenance: Councils would be required to maintain bank accounts according to Ministry of Finance procedures and provide statements upon request.

• Restrictions in Final Year: If a council's term is 365 days or less from expiration, certain actions would be restricted without adherence to norms set by the Ministry of Finance and the Local Government Authority (LGA). These include:

• Recruitment of contractual or long-term employees for council offices.

• Lease and grant of land, lagoons, and reef areas under council jurisdiction.

• Initiation of new development projects not specified in council development plans.

The MDP, which introduced the decentralization system during its first administration in 2010, and amended the law again in 2019 to grant councils greater financial autonomy, has slammed the proposed amendments as an attempt by the government to concentrate powers and silence the voice of the people.

Several councils, including those in Fuvahmulah City, Kulhudhuffushi City and L. Gan, have issued statements protesting against the planned changes.

However, the PNC insists the changes are necessary better regulate spending and prevent wastage of state funds.