Dhonfanu Council President requests President Muizzu not to ratify bill

B. Dhonfanu Council President Ahmed Irshad has requested President Dr. Mohamed Muizzu not to ratify the amendments that will decrease the revenue of local councils.

The council President made his request during his welcoming speech upon President Muizzu's arrival to Dhonfanu. President Muizzu visited Dhonfanu yesterday and met with the island residents. The speech was made during this meeting.

The bill and the amendments Irshad is referring to are the amendments that were approved by Parliament concerning the Decentralization Act, which has been sent to President Muizzu for ratification.

Irshad said that he is deeply concerned with the amendments being made to the Decentralization Act.

Irshad praised President Muizzu, stating he is a leader that brings changes while taking into account the views of the public which he said has been evident in the last year and a half.

"One of the most important things for the development of Dhonfanu is decentralized financial empowerment. It is more important than a council building. I am deeply concerned with the changes being brought to the Decentralization Act. I humbly request the President that the changes that would bring about drops to council revenue not be ratified," Irshad said.

Dhonfanu Council President Irshad went on to say that it is apparent that President Muizzu prioritizes the voices and opinions of the public and taking them into account in running the government. His actions in visiting islands, listening and seeing first hand the development and challenges islands face are proof of that, Irshad stated.

One of the amendments being made to the Decentralization Act is a set of "Financial Restrictions in the Final Year of Council Term". If a council is within one year of the end of its term, it cannot take certain actions unless they follow guidelines set by the Ministry of Finance and the Local Government Authority (LGA).

These include:

1. Hiring new permanent or contract employees.

2. Leasing or granting land, lagoons, or reefs under their jurisdiction.

Another amendment that was made were the Limits on Council-Run Businesses. It states that local authority companies (established by councils) can conduct economic activities under specific conditions:

1. They cannot operate businesses that already exist in the island community.

2. Their work must not involve essential infrastructure development.

3. Investments must not exceed MVR 10 million.

The amendment further states rent cannot be charged for land or buildings given by the government to provide essential public services. This includes:

1. Land or lagoon areas leased for services.

2. Council buildings and properties used for public benefit.

The final amendment is Financial Oversight. Council bank accounts must be managed under a procedure set by the Ministry of Finance. Councils must also provide bank statements to ministry upon request.

Many government officials have stated on various platforms that confirming whether councils are using their financial authority responsibly will not only strengthen the decentralization system, but will increase public trust as well.

PNC Parliament members and relevant ministers have also voiced that President Muizzu has been taking firm actions in the strengthening of the decentralization system and increasing the financial authority that councils may have.

However, opposition MDP has stated that the amendments to the Decentralization Act serve to take away the powers of the councils, with calls to not ratify these changes being made.