The Edition


LGA warns councils for criticizing subsidy cut-down

Mohamed Visham
06 October 2016, MVT 15:22
The council office of Raa Atoll Ungoofaaru island.
Mohamed Visham
06 October 2016, MVT 15:22

Local government authority (LGA) Thursday looked to quell public ire over the recent cut-down in food subsidy by warning island and Atoll councils that it had no authority to question or challenge government policies.

Several councils have issued statements condemning the government decision to limit the staple food subsidy to the needy.

LGA in a circular, reminded councils of its mandate which it said does not include questioning or challenging government policies or decisions.

The change has lead to a significant hike in prices for rice, flour and sugar in the archipelago sparking a chain reaction of increased prices in most commodities.

The decision to cut off food subsidy comes in the wake of the public having been forced to pay more for electricity.

Maldives’ state electric company has announced a decision to charge four laari from each unit of electricity from this month resulting in the hike of electricity rates in the archipelago.

The fuel surcharge applicable from September 19 was prompted by the rising diesel prices, according to State Electric Company (STELCO).

The move has already sparked protests in the capital Male and throughout the atolls, calling on the government to reverse its decision.

Government has continued to defend the move to cut down on subsidies by insisting that the decision was prompted to secure foreign aid.

According to the government, international financial institutions have long pressed the government to cut off subsidies.