The government is enacting a series of sweeping financial reforms aimed at strengthening the autonomy and accountability of local councils, marking a pivotal advancement in its broader effort to reinforce the nation’s decentralised governance framework, Adam Shareef Umar, Minister of Cities, Local Government and Public Works, has said. The initiative, led by President Dr Mohamed Muizzu, was described by Minister Adam Shareef as integral to cultivating public trust and institutional resilience.
The legislative foundation for the reforms was established with the recent passage of a bill in Parliament amending the Decentralisation Act. Designed to enhance administrative integrity, the provisions also seek to promote transparency across local governance structures.
At the heart of the government’s strategy, according to Minister Adam Shareef, lies the expansion of financial authority for councils, paired with mechanisms to ensure responsible stewardship. The reforms were framed by the minister as a means of consolidating the decentralised system while reinforcing confidence in its operational efficacy.
In pursuit of this objective, the administration has advanced a series of measures intended to empower councils more substantively, the minister said. These include the allocation of uninhabited islands to council jurisdictions, direct engagement with council members during presidential visits, endorsement of council-led decisions, and facilitation of project modifications proposed by councils. Taken together, Minister Shareef stated that these efforts underscore a commitment to strengthening the role of councils in local development and governance.
The reform agenda extends beyond policy into infrastructure, with a nationwide initiative aimed at bolstering administrative capacity. Minister Shareef highlighted that, under President Muizzu’s directive, construction is underway to rehabilitate 105 council administration buildings, many of which had deteriorated over time.
The newly ratified bill, endorsed by 51 members of parliament, introduces several substantive amendments to the Decentralisation Act. Among its provisions, the law prohibits the collection of rent from lands designated for essential public services. It also requires councils to submit details of newly established bank accounts to the Ministry of Finance and Planning, reinforcing financial oversight and institutional transparency.
To safeguard fiscal discipline, the legislation stipulates that if a council accrues debt to a state entity for a period exceeding six months, any grants subsequently disbursed by the state must be reduced by the amount owed.
The reforms also introduce operational safeguards aimed at curbing fiscal mismanagement. Councils are barred from initiating projects not included in their approved development plans during the final year of their term. In addition, the legislation standardises procedures for employee engagement and the leasing of land, lagoons, and reef areas, requiring strict adherence to guidelines issued by the Local Government Authority.
Minister Shareef has reiterated that the overarching aim is to ensure councils operate with enhanced financial capacity and heightened responsibility. The government regards this dual emphasis as essential to building a more resilient decentralised system and strengthening public confidence in local governance.