The Gaaf Dhaal Gadhdhoo council has decided to stop the allocation of land plots following restrictions in the recently ratified amendments to the Decentralization Act.
In an announcement on Sunday, the council said it was working to lease 12 land plots when the Decentralization Act was changed.
The land leasing was included in the Land Use Plan (LUP) approved by the council to be carried out during the current term.
The announcement noted that the lands cannot be leased during the current term despite the interest expressed by a large number of people.
The council added that they will proceed with the land leasing if the relevant state institutions formulate a rule to carry out the transaction.
More than 80 councils issued statements against the amendments restricting their rights and authority ahead of next years local council elections.
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 16th amendment to the Decentralization Act was passed by the government-controlled parliament and was ratified last week despite concern from councils and political parties.
