President says amendments will bring benefits and more authority

Last night, President Dr. Mohamed Muizzu has stated that he wholly believes in the decentralization system and that amendments that are being brought about to the Decentralization Act will only give more authority to the relevant parties.

The bill of amendments to the Decentralization Act is currently in the ratification stage. However, a statement that was compiled by more than 50 councils says that the amendments serve to take away the financial authority that councils hold, with opposition MDP speaking against the amendments as well.

President Muizzu spoke at a meeting during his visit to Dharavandhoo last night, one of the islands he's visiting in Baa Atoll. He addressed the amendments individually and outlined the benefits of each one.

As per the President, he fully understands and has experienced the decentralization system. He went on to say that during his time as Mayor of Male', he had experienced some trying challenges in the system as well.

"I know the decentralization system from start to finish. Some individuals have labeled the amendments that this government, which is on the public's side, is bringing as something that is not being done for the sake of Maldivian citizens," stated the President.

The President went on to day that the amendments that were made last week Wednesday is something that will empower citizens.

- While speaking of the amendments made to local authority companies, President Muizzu stated that there are small businesses run by the general public. He says that the result of keeping up current practices is a prevention in the increase of general public wealth.

"And so one of the amendments that were made is that local authority companies can no longer run smaller businesses that are run by residents of islands. Local authority companies should and have to make investments that are at least MVR 10 million or more. If investments of more than MVR 10 million are being made, then all local company authorities of all industries should invest that much and run their businesses accordingly," said President Muizzu when speaking on the subject.

He went on to say that the profits made from making investments that are more than MVR 10 million can be put forward to help residents in various matters.

The amendments were made to protect small and medium enterprises, as per the President.

"And so, we are empowering our citizens. This will only benefit councils as well," the President stated.

- The President said that an exorbitant amount of rent is being charged for land or buildings given by the government to provide essential public services. He pointed out that there is a chapter that talks about essential services in the constitution.

"And so this amendment will make it so that rent will not be charged on buildings that provide such essential and public services. When rent is taken, these services also see a price hike. To empower citizens and to provide the best possible options for the people, the amendment states that buildings that provide essential and public services will no longer have any rent attached to them," said President Muizzu.

- The President went on to say that tax must be paid in accordance with the profits accrued from businesses run by councils. However, councils have not been paying taxes on their revenue, said the President.

He went on to say that councils will have to pay taxes after the amendments to the act are ratified, as those tax payments are supposed to be used to provide for citizens.

"This is also an amendment that will empower citizens and bring them further wealth," stated the President.

- The President said that the Financial Oversight amendment was made due to the fact that councils weren't disclosing their finances. He also said that while their account finances weren't being publicized to their island's residents, they especially weren't making their account finances known to the LGA.

"Nothing is being revealed. There is no mention of checks and balances. No responsibility is being taken. And so the LGA should be made aware of the finances that enter the account of the council chosen by their island residents," said the President.

President Muizzu did say however, that the law does not necessarily need to state that councils must make this information known. However, as many councils fail to do so of their own accord, the changes had to be made, says the President.

"Where does it state that we have limited the authority of councils? There isn't."

- The "Financial Restrictions in the Final Year of Council Term" amendment drew concern from councils, where it states that a council cannot hire new permanent or contract employees if they are within one year of the end of its term, nor can they lease or grant land, lagoons, or reefs under their jurisdiction and if they want to do so, they have to follow guidelines set by the Ministry of Finance and the Local Government Authority (LGA).

The President stated that many people were being employed, with land being leased as the elections roll around, and that this is done for political purposes. The President also stated that plans that are not included in the approved island development plan list are started when elections are close. Island development plans are approved after certifying that they will benefit the island and its residents.

"It is not law-abiding practice that councils do these things so responsibly as the elections come around. Some councils do this purely for political purposes," said the President.

"If they want to do these sort of things, then they should present it to the LGA, get their approval and abide by the mandates of the law. Is land being leased to fulfill responsibilities? Are people being contractually hired to fulfill responsibilities? Or are projects that aren't included in development plans being started so suddenly to fulfill responsibilities?"

The President stated that permission from the LGA and the Finance Ministry has to be acquired one year prior to election when it came to leasing land and hiring contractual employees.

"This permission won't have to be sought out for the next four years. Where does it say that we have written anything other than citizens being empowered, a check and balance system is being introduced, good governance, protection of individuals who run small businesses in this amendment? There is no such thing that has been written," said the President.

President Muizzu, who defended the amendments that were brought to the Decentralization Act and is ready to ratify these amendments stated last night that these amendments need to be made in order to "strengthen and champion" the system.

"This is a system that we are very keen on, one that we want to run. These amendments are to further develop the system," said the President.