Council urges the withdrawal of the Government’s proposed amendments to the Decentralization Act

Council hereby urges the withdrawal of the government’s proposed amendments to the Decentralisation Act on the grounds that such amendments would adversely affect the continuity and quality of services rendered by local councils to the citizenry.

Bill No. 2025/20/B-18, submitted to the People’s Majlis on 28 July 2025 and presently under consideration by the Parliamentary Committee on Decentralisation, poses a substantial risk of disrupting the delivery of services currently administered to the public by local councils pursuant to the Decentralisation Act. Should the said bill be enacted and ratified, the resulting consequences shall be as follows:

• The restriction imposed on local authority companies from undertaking projects exceeding MVR 10 million effectively terminates all ongoing operations by council-owned entities across cities, atolls, and islands aimed at increasing public capital and delivering services. In light of the prevailing financial conditions of councils, it is uncommon for Local Authority Company projects to surpass the MVR 10 million threshold.

• The provision permitting government use of public land without the payment of rent impairs the revenue-generating capacity of councils and authorizes the allocation of public lands by the government without the participation of local communities

• The imposition of a requirement for a 365-day advance notice for the recruitment of council staff and the obstruction of development plan implementation—formulated with public participation—due to restrictions on the use of natural resources for public benefit, collectively hinder the councils’ ability to fulfil their statutory mandates.

While certain jurisdictions impose restrictions on the use of state resources during election periods to prevent undue influence by elected officials, we note that the proposed restrictions are disproportionately extended in duration and selectively applied to local council services. In the absence of equivalent limitations on the central government, such provisions would permit the government to exert electoral influence through financial resources and executive authority.

The structure of the bill would obstruct the provision of council services to citizens, hinder the implementation of development plans formulated through public participation, and restrict the use of city, atoll, and island council resources for public benefit. It would further enhance governmental influence over local council elections through the use of state funds, thereby compromising the integrity of the electoral process.

Accordingly, we call upon the government to withdraw the said bill.