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President ratifies bill to repeal Maldives Transport Authority Act

President Ibrahim Mohamed Solih has ratified the bill to repeal the Maldives Transport Authority Act.

With the enactment of the act, all civil servants employed at the Maldives Transport Authority (MTA) will be transferred to the Ministry of Transport and Civil Aviation. In addition, assets belonging to the MTA, along with all the rights and obligations conferred to the authority under law and under any agreements will now be transferred to the transport ministry.

Moreover, President Solih ratified the Sixth Amendment to the Public Finance Act, the Eighth Amendment to the Land Act, and the Fifth Amendment to Land Transport Act and Fifth Amendment to Sea Vessels Act.

The amendments to the Public Finance Act include modifications to the guidelines for granting government funding for loans with authorization only. It also specifies the principles and procedures that councils must follow when acquiring loans, selling assets, and funding grants to associations. According to the new amendments, under section 82 of the Decentralisation Act, councils have the right to lend their money in the event they make a profit on pre-agreed terms and conditions to other councils after they deduct the cost of operation from the income they receive. The amendments also provide the government the power to pay money to the lending council from the receiving council's budget if they fail to repay the debt to the lending council. The amendments further clarify the principles of lending as well as the mechanism for reporting pertinent loan information to the Ministry.

Meanwhile, the amendment to the Land Act requires the transfer of lands allotted for various uses to government ministries and state bodies to be in compliance with the Decentralisation Act. As the amendment further states, land handovers must be done in conformity with the guidelines established for land distribution.

Moreover, the amendment to Land Transport Act includes the addition of section 49-1, subsequent to Section 49 of the legislation, stipulating the specification and delegation to respective administrative divisions of cities, atolls, and islands of services provided by the Ministry of Transport and Civil Aviation. It also specifies that the ministry and relevant institutions should provide the funds, resources, and assistance required by the local councils to provide those services. According to the amendment, the regulations made subsequent to this act should also specify the manner in which the assistance would be provided.

Further, the amendment bill to Sea Vessels Act introduces Section 5-1, pursuant to Section 5 of the Act, stipulating the delegation to respective administrative divisions of islands, atolls, and cities, specified services provided by the Ministry of Transport and Civil Aviation. It also stipulates that the ministry and relevant institutions should provide the funds, resources, and assistance required by the local councils to provide the specified services. According to the amendment, the regulations made subsequent to this Act should also specify the manner in which the assistance would be provided.

Following ratification, the amendment bills have been published in the Government Gazette.