Undermining decentralization harms communities: Solih

Former President Ibrahim Mohamed Solih has stated that it is the residents of an island that will bear the brunt of efforts to undermine decentralization in favor of centralization for political gain.

Solih made these comments in a post on X in response to the government's proposal of a bill outlining major amendments to the Decentralization Act aimed at placing tighter controls on how local councils manage their finances.

The first reading of the bill, submitted by Fuvahmulah MP Ibrahim Hussain, is on agenda for today's parliament sitting.

Solih called for reconsideration of the bill and to withdraw the proposed amendments.

Decentralization is among the most significant constitutional changes supporting citizen development, Solih said.

Successive governments have expanded and restricted these powers, with the 2019 amendments—widely debated and endorsed across political ideologies—being the most notable, he said.

Solih described centralization of power without allowing citizens to make informed decisions on matters pertaining to their islands a grave injustice. He said that the positive impacts are being seen now of determining the jurisdiction of each island, providing block grants from a portion of the State revenue and granting permits to generate revenue under set policies.

"The councils are becoming self-sufficient," the post reads.

Solih cautioned that undermining decentralization for political reasons at this integral point of development would result in island communities being adversely impacted.

Several government-aligned officials argue that the current decentralization system is both financially unjustifiable and lacking in transparency. They advocate for decreasing the number of councilors representing each island.

One of the major proposed changes would restrict what councils can do during their final year in office.

If a council has less than one year left in its term, it would need to follow special rules set by the Ministry of Finance and the Local Government Authority (LGA) before making certain decisions. These include:

1. Hiring new permanent or contract employees

2. Leasing or granting land, lagoons, or reefs under the council's jurisdiction

Another significant part of the bill deals with local authority companies. While these companies will still be allowed to conduct economic activities, three new conditions would apply:

1. The activity must not compete with private businesses on the island

2. It must not be essential for the island’s infrastructure development

3. The investment or capital involved must not exceed MVR 10 million

Additional changes include:

- Councils’ bank accounts will have to be managed under guidelines set by the Finance Ministry.

- If Finance Ministry requests a council's bank statements, the council has to provide the information.

- The government will not be allowed to charge rent for land, lagoon, or reefs leased to provide basic public services.