President Mohamed Muizzu has denied restricting the authority of local councils after ratifying amendments to the Decentralization Act ahead of next year's elections.

The recent legal changes limit the authority of the councils and strip them of financial independence. Councils cannot carry out any projects in the last year of their term.

More than 100 councils have so far issued statements against the amendments. Speaking in Kulhudhuffushi city on Tuesday night, Muizzu said councils had shared their concerns with him.

"I have not brought any amendments that impose any restrictions. Fortunately, I know the decentralization system very well. I have experienced this system in different ways on different occasions," he said.

He spoke about the difficulties caused by the former government when he was the mayor of Male'. He defended the recent legal changes and complained about how he was prevented from carrying out projects when he was mayor.

"I know how the government obstructs councils through the decentralization system and its results. My government will not do anything like that. My resolve is to champion decentralization," Muizzu claimed.

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 despite concern from councils and political parties.