MVR 1.4 bn unspent from last year's council Block Grant

President Dr. Mohamed Muizzu has stated last night that MVR 1.4 billion of the MVR 2.2 billion total from the council Block Grant remained untouched after one year.

"We are giving councils funding via the Block Grant to provide services, municipal services. It is a must that councils spend this money on providing for the citizens," said President Muizzu yesterday at Eydhafushi, his first stop during his Baa Atoll visit.

He stated that half of the budget was not utilized by the end of the year for various purposes and works within islands. A Block Grant is a sum of money given by the government to local councils to provide the best possible outcomes for any project they may undertake.

"Even this year is seeing the same trend and we've reached August. A huge percentage is still being saved in the Block Grant that has been given for this year," President Muizzu said.

The President has expressed his concern over the Block Grant not being utilized for the people but for it being used for experience trips by councilors.

As per the President, councilors are taking these trips to countries that won't have any benefit for Maldives as a whole. The President has requested repeatedly to stop wasteful spending.

"The money that is being given for the sake of the betterment of citizens lives needs to be spent responsibly. The money that is being legally allocated by the state to the council is done after the budget has been approved. The funds are to be used by the council to provide services for citizens," President Muizzu stated.

"There is no benefit to having leftovers. It's not even being invested in anything for the benefit of the citizens. It'd be good if it was being invested on something."

The President brought this to the attention of residents and to councils so that more thought may be put into this situation.

He went on to say that there is a chapter in the Decentralization Act specifically written for councils to provide basic utilities. These include water, electricity, waste management, etc.

"There is no point in saving and keeping the Block Grant, wouldn't you say so? For example, the money that has been saved can be used for basic utilities like fixing generators as is the legal responsibility of the council, wouldn't you agree?" said the President.

The President's hope is that councils will responsibly abide by the law in their duties while dealing with Block Grant expenditures in the coming days.

"It'll be good if they abide by that," said President Muizzu.

The President has also voiced his concern over "experience trips" being taken with funds given by the government.

He said that these trips were being taken with funds from the Block Grant and money earned as income, and that these trips were being taken by entire atoll councils to places that wouldn't benefit residents in any island or atoll.

MVR 900,000 was taken from their budget spent by the Haa Dhaalu Atoll council to go on an experience trip to Bangkok, Thailand. Many council members and employees went on this trip. This issue has been brought to light, with the Auditor General being told to look into this matter.