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A parliamentary committee has amended the Decentralization Act to explicitly mandate financial compensation for councils or third parties whose investments are affected when the government reclaims land for development projects.
News Desk
Parliamentary committee on decentralization - Photo: Majlis
MALÉ: A parliamentary committee has approved key amendments to the Decentralization Act, introducing a mandatory financial compensation requirement whenever the government reclaims council land featuring prior investments.
The Decentralization Committee introduced the compensation mandate during an emergency meeting to review the bill submitted by independent Thulhaadhoo MP Abdul Hannan Aboobakuru. The new addition was proposed by Henveiru North MP Ahmed Aifan and passed with majority support.
Under the newly added provision, the government must guarantee financial restitution if a local council or third party has invested in a property being reclaimed for state projects.
Key highlights of the approved legislative framework include:
Mandatory Compensation: Financial compensation must be paid for any development or investment established on council land that is taken over by the state.
Valuation Authority: The Ministry of Finance is assigned to evaluate and propose the exact compensation amounts owed to affected parties.
Jurisdiction Transfer: The Cabinet retains the power to remove land from a council’s authority for state projects, with the Local Government Authority (LGA) issuing formal notice of ownership transfer.
Land Surrender Obligations: Councils are required to hand over land requested for government projects even prior to the finalization of local physical plans.
Prohibition of Obstruction: Councils are prohibited from blocking, delaying, or passing decisions to halt state projects without valid legal grounds.
The push to revise council powers follows local election results where the opposition Maldivian Democratic Party (MDP) won key municipal seats.
The bill has sparked active debate, leading to opposing public petitions—including an opposition petition with 2,300 signatures and a government-backed counter-petition garnering over 10,000 signatures after rules were adjusted to allow multiple petitions on a single issue.
