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.
