Muizzu denounced for justification on restricting councils

Aug 12, 2025, 3:06 AM
President Mohamed Muizzu in a meeting with Vaavu atoll council in March 2024. -- Photo: President's Office

President Mohamed Muizzu in a meeting with Vaavu atoll council in March 2024. -- Photo: President's Office

Vaavu atoll council President Shujau Ali has denounced President Mohamed Muizzu's justification for restricting the authority of local councils.

In his tour of Baa atoll, Muizzu stopped in Kendhoo on Sunday and accused councils of misusing funds and authority.

"Some councils have formed local authority companies and we are trying to prevent such companies from entering the businesses carried out by the common people. We are trying to empower the people. What is happening here? What will happen to the common people when the companies enter these businesses? They will lose their business," Muizzu said.

"We are stopping the councils from entering these businesses. The councils must do wider and more expansive investments," he added.

But the Vaavu atoll council President described this justification as a lie.

"This is a baseless lie. I can confidently say there is no council business run in this way. Now it is clear [Muizzu] does not know the number of council companies in the country. It is not how he claimed and it is a complete lie," Shujau said.

More than 80 councils have issued statements against Muizzu's amendments to the Decentralization Act.

Amendments to the Decentralization Act

Restrictions on doing business

  • Preventing councils from doing business if a private party is involved in the same business
  • Only infrastructure development allowed
  • Business investment or capital must exceeds MVR 10 million
  • Existing council businesses must be stopped within three months if they violate the above rules

Restrictions on leasing properties

  • Rent cannot be charged from properties allocated to various parties for providing basic services

Influencing financial matters

  • Maintain bank accounts of councils under a rule from the Finance Ministry
  • Council must provide a bank account statement if required by the Finance Ministry

Obstruction of council work

  • If a council has one year left in its term, permanent and contract employees cannot be hired
  • If a council has one year left in its term, land, lagoon, reef cannot be leased
  • If a council has one year left in its term, new development projects cannot be announced

The bill was passed by the government-controlled parliament last week, but it has not yet ben ratified. The President gets 15 days to deliberate before ratifying a bill.

Comments

Read More

Latest News

Mental health centre opened in Kulhudhuffushi

Kulhudhuffushi City has opened "Manas Hub," a new mental health center launched by the City Council and the Australian High Commissioner. The facility aims to reduce social stigma and provide accessible support, treatment, and early intervention. This milestone marks a major step in strengthening community-based mental health services.

Audit reveals millions in losses over project given to POLCO

An audit revealed millions in losses after the Home Ministry awarded a prison project to POLCO without competitive bidding. POLCO subcontracted the work for a fraction of the price and charged MVR 2.9 million for demolition work that never occurred. The Auditor General has recommended an investigation by the Anti-Corruption Commission.

Yameen urges Eagle Hills to scrap Rasmalé project

Former President Abdulla Yameen has urged Eagle Hills to scrap the Rasmalé project, labeling it an exploitation of a "morally bankrupt" regime. He cited public resentment and controversial lease terms that suggest a permanent loss of land. The project faces heavy criticism for its financial structure and perceived lack of public support.

PG had secured release of suspect detained with film stars

Shahil Mohamed, recently arrested with several film stars for drug offenses, was previously released from pretrial detention in a two-kilogram heroin trafficking case. The Prosecutor General’s Office had requested his release due to his medical condition and length of detention. He has now tested positive for synthetic drugs.

Eagle Hills to develop 5,000 housing units in Urban Isle

UAE’s Eagle Hills will develop 5,000 housing units in Hulhumalé’s "Urban Isle" as a prerequisite for the Rasmalé Waterfront project. The $400–$500 million development features three-bedroom apartments funded by future property sales. This initiative replaces a stalled $8 billion financial center project previously planned for the same site.

Two discharged, two in critical condition after road accident

Two people are in critical condition on ventilators and two others have been discharged following a motorcycle crash in Hulhumalé. The accident occurred when a motorcycle carrying three people fled police by driving against traffic. One victim suffered a brain hemorrhage, and the unlicensed driver reportedly has an extensive criminal record.

Renovation begins at Hulhumale' synthetic track

Renovations have begun on the Hulhumale' synthetic track to upgrade it to international World Athletics standards. The project involves installing a high-quality polyurethane surface to ensure athlete records are officially recognized. Work is expected to be completed by January next year.

Newsletter

Get the latest news delivered straight to your inbox