Read the full statement in English
Read the full statement in Dhivehi
06 August 2025
Transparency Maldives expresses concern over the proposed changes to the Decentralization Act through bill 18-(ބ)/20/2025 submitted to the parliament on 28th July 2025, which limits the role of councils by taking away their administrative powers, threatening their autonomy and imposing barriers to the provision of essential public services and development initiatives.
Local councils are integral institutions for decentralized governance in the Maldives, enabling local democracy and empowering communities to shape their own development. A robust decentralization regime establishes accountability mechanisms, reduces risks of corruption and ensure meaningful public participation. Transparency Maldives remains a strong advocate for decentralization including advocating for the current provisions allowing financial autonomy and resource ownership of local councils and submitting comments critiquing recent changes to the decentralization framework, as these amendments not only weakens the system and undermines the role of councils, but it also threatens the progress made in ensuring responsive and inclusive governance.
The proposed amendments under section 70 of the bill limits the activities of the Local Authorities Companies (LAC’s) and disproportionately affect smaller councils while proposed amendments under section 75 restricts revenue generating options by limiting investments sizes when utilizing land under their respective jurisdictions. These restrictions impact financial autonomy and ability to influence and shape key development projects in their own communities, creating further reliance on central government and other political actors to meet socio-economic development goals of the community.
Inclusion of section 144-1 is of specific concern as restrictions are placed on councils when recruiting personnel and renting resources under their jurisdiction in the year before council elections, undermining their operational autonomy and provision of essential services.
The recurring abuse of state resources consistently observed by Transparency Maldives during national electoral cycles, undermines the democratic competitive nature of elections skewing the level playing field. Development projects, job offers and promises of other economic opportunities have been used by successive administrations and politicians to influence voters. While we acknowledge the need to strengthen the legal framework to address abuse of state resources across the public sector, using these abuses to undermine and restrict autonomy and independence of local councils, and consolidating power at the center will further add to the existing gaps allowing for abuses of state resources, and create more systemic and potentially a greater threat to the electoral level playing field in the future, unduly favoring the incumbent. It risks further alienating disadvantaged and underrepresented communities in nation building efforts. Any restrictions must apply uniformly to both local and central government to ensure a fair electoral playing field and uphold democratic integrity.
The recent amendments to the Decentralization landscape including the Urban Planning and Management Act, Urban Development Act and amendments to Decentralization Act, lacks robust deliberation with an effective public participatory process, to ensure their implications are fully understood and debated. Without adequate time for reflection and preparation, civil society and the general public are being deprived of the opportunity to provide meaningful arguments and facilitate a transparent and democratic exchange of ideas.
The lack of meaningful participation and consolidation of authority within the executive branch contradicts fundamental democratic principles of separation of powers and represents a significant departure from established decentralization laws and efforts put in place by successive administrations that have been instrumental in the nation’s emerging democratic development.
Transparency Maldives calls on the Parliament and other relevant state bodies to:
- Immediately withdraw the proposed bill 18-(ބ)/20/2025 to amend the Decentralization Act.
- Ensure that legal reforms involve an inclusive and consultative process at all levels that meaningfully engages local councils, civil society organizations, other community groups and the public.
- Uphold the principles of decentralization as laid down in the Maldivian Constitution and ensure that local councils have the authority, resources, and independence to carry out their functions.
- Review and strengthen the overall legal framework to address loopholes in abuse of state resources at all levels of the government and state, especially around election cycles, including penalties and provisions that will facilitate enforcement of compliance, stronger campaign finance laws and introduce uniform asset declarations laws to minimize abuse of state resources, illicit enrichment and electoral violations.
-ENDS –
06 august- press statement (dhi)