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President Appeals to Councils Not to Enter into General Business

Photo Credits: President’s Office

President Dr. Mohamed Muizzu has appealed to councils not to enter into general businesses run by island residents. He made this appeal while speaking at a meeting with the people of Kendhoo. In his speech, President Dr. Mohamed Muizzu said that the agreement signed during this trip for the harbor, land reclamation, and coastal protection of Kendhoo are three projects that will progress simultaneously, and the positive results will be seen in the near future.

The President said that as promised during the presidential election, road construction work will begin very soon. He also stated that once land reclamation is completed, the housing project will proceed. The President said that next year will also be a year prioritizing solving housing issues. Therefore, he assured that a housing project would be carried out in Kendhoo as he had promised. Additionally, the President said he would work on developing the health sector and sports sector in Kendhoo. In this regard, he mentioned that all preparations have been completed to assign a government company to develop a football ground, fitness and recreation center, and outdoor gym in the island as part of the efforts to establish sports facilities needed for the youth. The President also said that all these works will practically begin this year.

The President has previously expressed hope that the difficulties faced in carrying out projects earlier will not occur. He noted that while it was very easy to allocate land for projects in some islands, there were difficulties in other islands. “There are differences in various islands. I hope that everything related to the people can be carried out easily in all islands. That’s my appeal, to make it easier to proceed with the work,” the President said. The President said that he is working to fulfill the hopes of the people and that he will always be with the people to do so.

In his his speech, the President said that no council would be forcibly brought to Malé for meetings, and that his policy is for ministers and heads of companies to visit the islands for meetings. He said that he wants to decentralize in the true sense and that he knows very well how to decentralize. Stating that he understands how things should work under the decentralized system, the President highlighted that some councils misuse block grants and revenue funds. He noted that some councils use block grants for travel under the guise of experience trips that do not benefit the people, which he said is not responsible. The President emphasized that block grants and funds given to councils are from the budget to invest in what people need, generate income, and provide municipal services.

“Some council, the entire council together on a foreign trip. As their term is ending, they’re going on this trip calling it an experience trip,” the President said. The President said that there are also councils that do not fulfill their responsibilities most comprehensively. Therefore, he said that stopping the misuse of council funds and holding them accountable is important for empowering the people. The President said that some councils are also entering into businesses run by ordinary citizens. He said that even if local council companies are established, they should not enter these businesses, and this government will always stand by the people’s side as they wish.

While the President has said this, last week, the government-proposed bill to amend the Decentralization Act of Decentralization Act of Maldives was passed. This includes amendments that set conditions for business activities of Local Authority Companies. The amendments to the law include defining the scope of business activities for Local Authority Companies established by councils under this law, reviewing some principles for providing state grants to councils, and stating the principles to be followed in making important financial decisions by councils during the last year of the council’s term.

Among the newly proposed amendments are conditions that must be met in the business activities of Local Authority Companies established by councils. Additional amendments to the Decentralization Act of Maldives include that councils must manage bank accounts opened by councils in accordance with the principles set by the ministry responsible for financial affairs. It also states that if the ministry responsible for financial affairs requests a statement of bank accounts opened by councils, the councils must provide that information to the ministry.

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