MDP urges to withdraw amendments to Decentralization Act

Opposition Maldivian Democratic Party (MDP) has called on the government to withdraw the bill to amend the Decentralization Act, stating it threatens the entire local governance system.

The bill, introduced by Fuvahmulah South MP Ibrahim Hussain, is set for its first reading in Parliament tomorrow. If passed, it would bring major changes to how councils operate across the country.

In a statement, MDP raised concern that the bill aims to weaken or even eliminate the powers of local councils. The party claims this would reverse years of progress in empowering island communities to manage their affairs.

“Powers that were once centralized have been given to the people through elected councils,” the statement said.

“The previous MDP government made key reforms that helped councils become financially independent by allowing them to benefit from natural resources around the islands.”

However, MDP argues that the new amendments would strip councils of this financial independence. They also accuse the ruling PNC government of using state power to undermine local councils ahead of the upcoming council elections.

MDP urged both councilors and the public to oppose the changes, warning that they could damage the decentralization system.

The government says the bill is intended to regulate the business activities of council-run companies and to revise how financial support is given to councils. Some key points include:

- Councils will only be allowed to run businesses that don’t compete with private individuals or aren’t essential to the island’s development.

- Investments by councils must be under MVR 10 million.

- Councils whose term is due to expire within a year will face limits on what they can do unless approved by the Finance Ministry and the Local Government Authority (LGA).

- Councils can still hire staff and lease land or lagoons and reefs within their jurisdiction.

Currently, over 900 councilors serve across 187 islands, and the next council elections are expected in April next year.