President Dr Mohamed Muizzu has firmly rejected claims that the latest amendments to the Decentralisation Act strip power from the people, stressing instead that the changes are designed to empower communities and ensure fair benefits reach every citizen.
Speaking to residents of Dharavandhoo during his tour of Baa Atoll, President Muizzu addressed what he described as “misleading” statements from some councils, clarifying that the reforms safeguard public interests while eliminating practices that burden citizens.
The President explained that the first amendment stops councils from competing with small local businesses by restricting council-run companies to projects above USD 648,500 in investment. “Councils should be empowering local entrepreneurs, not replacing them” he said, noting that profits from such ventures must be reinvested into public services.
The second amendment bans councils from charging rent on land used for essential services like water, electricity, and sewerage — a move aimed at lowering costs for the public. The third mandates councils to pay income tax on business revenue, aligning them with the same obligations as private sector operators.
Highlighting the fourth key change, President Muizzu said councils will now be legally required to disclose their financial records to the Local Government Authority — a measure born from repeated failures in transparency.
“These are not restrictions; these are reforms to ensure councils serve the people, not political agendas” he said, criticising some councils for prioritising election-year manoeuvres over long-term development.
President Muizzu reaffirmed his government’s full commitment to decentralisation, emphasising that local councils must work with the state regardless of political differences to deliver pledges faster. “Responsible public service means putting people above politics” he declared.
With these amendments, the President said, the decentralisation system will be stronger, more transparent, and better equipped to deliver prosperity to every island community.
