Minister of Cities, Local Government and Public Works, Adam Shareef Umar, has reaffirmed the Government’s commitment to financially empowering local councils, amid legislative efforts.

In a post on X, Minister Adam Shareef stated that President Dr Mohamed Muizzu is making determined efforts to strengthen the decentralisation system and improve financial governance across island and city councils. He highlighted ongoing efforts to rebuild trust in local governance and enhance the councils' financial capacity, including the construction of 105 council offices that had previously fallen into disrepair.

The Minister emphasised that true empowerment involves not only increasing financial powers, but also ensuring those powers are exercised with transparency and discipline. 

His remarks follow Parliament’s passage of a bill amending the Decentralisation Act, which has sparked criticism from opposition members and some councils. The bill, submitted by Fuvahmulah South MP Ibrahim Hussain on behalf of the government, has been reviewed by the Decentralisation Committee.

Under the revised Act, councils will be prohibited from collecting rent from land allocated for essential public services. If a Government agency has an outstanding payment owed to a council for over six months, the Ministry of Finance will deduct the amount from any grants issued to that council.

The amendments also prevent councils from initiating new activities in the final year of their term unless those activities are part of the council’s approved development plan. Additionally, staffing and land-leasing decisions must now comply with the regulations set by the Local Government Authority.

Minister Adam Shareef stated that the reforms are intended to reinforce transparency, ensure responsible financial practices, and ultimately strengthen the decentralisation framework.