New rules announced for council recruitment and land leasing in final year

Local Government Authority (LGA) has published rules governing the recruitment of staff and allocation of land, lagoons, and reef areas by councils during the final year of their term.

The rules also cover the implementation of projects not specified in council development plans.

The policy follows the 16th amendment to the Decentralization Act, ratified by President Dr Mohamed Muizzu on 14 August.

Under the amendment, councils must obtain approval from both the Finance Ministry and the LGA before recruiting employees or allocating land in their last year. The LGA’s new rules specify the documents councils must submit to obtain these permits.

LGA released the rules after some councils raised concerns that they had not been made public, despite the deadline for compliance having passed.

The amendment also restricts local authority companies on islands from running businesses worth less than MVR 10 million. Companies operating below this threshold must cease such activities within 90 days.

Further amendments to the Act include exemptions from rent for land and buildings allocated to provide basic services such as water and electricity, obligations to pay taxes on revenue generating activities, and requirements for councils to provide account information to the Finance Ministry and LGA upon request.