Banned unauthorized council hiring to stop recruitment of dismissed SOE staff: LGA CEO

Sep 6, 2026, 9:09 AM
LGA CEO Mohamed Nimal. -- Photo: LGA

LGA CEO Mohamed Nimal. -- Photo: LGA

The Local Government Authority (LGA) has claimed it prohibited island councils from announcing job vacancies without prior approval because of complaints that employees dismissed from State-Owned Enterprises (SOEs) were being immediately hired by councils.

Speaking on TVM’s "Ahaashey Bunaanan" program, LGA CEO Mohamed Nimal stated that the authority received numerous complaints regarding SOE employees—who were terminated with three-month severance packages—being recruited by councils without any public job announcements.

"This is not intended to penalize them or to say that staff cannot be hired. As you may recall, companies are currently rightsizing their workforce in accordance with established policies. However, employees who are let go with a three-month salary package are reporting for work at council offices the very next day," Nimal said.

"We are receiving these complaints from the general public in the islands. People are saying, 'Nimal, the employee dismissed from Fenaka yesterday started at the council office today after taking a three-month salary package. Where is the loss to them?' They are being hired without any public advertisement."

Nimal clarified that the recruitment of staff for councils will not be restricted, provided it follows established procedures. He emphasized that the requirement for prior approval was introduced due to the high volume of complaints received.

In a letter sent to council presidents, Nimal stated that the requirement for recruitment approval is a measure aligned with the government's expenditure reduction policy. The LGA has now banned councils from hiring any personnel without written authorization.

This directive covers all permanent positions—whether newly created or vacant—funded by the state or council budgets. It also applies to contract staff and those hired on a daily-wage basis.

The introduction of these recruitment regulations follows the ratification of amendments to the Decentralization Act, which grant the government the power to reclaim land under the jurisdiction of island and city councils at its discretion.

Additional changes to the Decentralization Act focus on the code of conduct for council members. These changes include provisions that would legally compel councilors to provide full cooperation to the government.

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