The main opposition Maldivian Democratic Party (MDP) today passed a comprehensive decentralisation policy paper during its national Congress, submitted by Ali Niyaz, the Chairperson of the party’s Decentralisation Committee.
Niyaz’s policy paper addresses numerous challenges currently faced by local councils. He noted that the document was formulated based on technical expertise and consultations with the Local Government Authority (LGA).
Key highlights of the decentralisation paper include increasing the financial allocations for councils, granting them a share of tax revenues, and constitutionally defining the jurisdictions of local authorities.
Furthermore, the paper proposes the restoration of Atoll Councils and the implementation of a system allowing citizens to vote in their place of residence.
Proposed changes in the decentralisation policy include
- Increasing the block grant for councils from 5% to 15% of total state revenue.
- Commencing the disbursement of sectoral grants as stipulated in the Decentralisation Act.
- Allocating 20% of Green Fund collections, 50% of land rent, and 5% of central taxes to local councils.
- Facilitating the establishment of regional community banks and providing sovereign guarantees.
- Constitutionally defining island and atoll jurisdictions and granting councils ownership of natural resources within those boundaries.
- Restoring Atoll Councils.
- Empowering councils to appoint and promote staff independently.
- Reclassifying council members, excluding the President and Vice President, as part-time officials.
- Dissolving Women’s Development Committees (WDCs) and ensuring equal gender representation for all council seats except the presidency.
- Enabling residents to vote in the location where they currently reside.
Since the current administration took office, significant changes have been made to the decentralisation system. These include restricting the commercial activities of councils, stripping them of their hiring powers, and dissolving Atoll Councils.
Following these changes, the government faced a major setback in the Local Council Elections held in April. The MDP secured a majority of council seats across the country, including the mayoralties of all five cities in the Maldives.
