Strengthening Decentralized Governance in the Maldives: Draft Report - Joint Government and UNDP Mission October 2005
"Local Councils are
now less empowered than they were in 2008 which was when they officially had
even less functions and revenue raising powers" *
Maldives Re-centralization Story
1. To province or Not to Province
When the Decentralization Law was passed after deadlocks, debates and political dealings, the provincial structure which had been the main institution that characterized decentralized system of governance and administration for the then ruling party, had been totally scrapped off from the law. The Province Offices were then retained as offices created by Executive Decree. How they featured under the decentralized system became highly contentious.
Prior to and after after the Decentralization Law was passed, there was strong resistance towards the Province Offices, even from atolls and islands that had large support for the then ruling party. This was because those offices created another bureaucratic lawyer between the communities and the center. Whereas the ruling party vision had been to do away with the atoll councils and retain only the island and city councils and the provinces offices, the tendency of local power elites, regardless of political affiliation was to maintain the decade old division of atoll groupings.
Noteworthy to mention here is that even while the Province Offices remained in the existence, before and after the Decentralization Law,those offices themselves were largely restricted from effectively functioning because central government ministries still tended to bypass them. the ruling party's wish to do away with the concept of the existing administrative division of 'atolls' further exacerbated conflicts, as communication from the center bypassed the atoll authorities, went to the Province Offices who communicated to the island authorities
This resulted in island authorities, required by law and 'seen by tradition' to report to the atoll level institution, to respond haphazardly to communications, depending mostly on which political party had majority seats in council. At this same time, assets which had remained in the guardianship of the atoll and island offices and the development committees were transferred to the guardianship of the province offices.
2. Public Utility Companies
The creation of public utility companies was another point of debate and conflict. Community assets and infrastructure which has been under the jurisdiction of the island and atoll development committees had none but the island and atoll offices to take over these, during the time between the dissolution of the committees and the election of the local councils. The move to create public utilities companies, to undertake services which had previously been the forte of the development committees was problematic.
Powerhouses which had been run by the development committees were now handed over to the public utility companies. It is true that many of the power houses were highly subsidized by the govt, that the fees for electricity in many islands were exorbitantly high and that many power houses were running poorly. While this is true, it is also true that there were communities that has successful power hoses running on profit, that this was seen as a major source of income for the community and that profit from power generation was being successfully used to implement other community initiatives.
Powerhouses which had been run by the development committees were now handed over to the public utility companies. It is true that many of the power houses were highly subsidized by the govt, that the fees for electricity in many islands were exorbitantly high and that many power houses were running poorly. While this is true, it is also true that there were communities that has successful power hoses running on profit, that this was seen as a major source of income for the community and that profit from power generation was being successfully used to implement other community initiatives.
3. Community Accounts
Income gained from community initiatives had been collected in the 'Raiythunge' (community) Accounts. These accounts had for a time, in the past been maintained and operated by the Ministry of Atolls Administration but later on transferred to the ownership of the communities, with the island/atoll Development Committees in charge of the accounts
These accounts were moved to a central account under the auspices of the central government in late 2011, after the councils had been elected. While some accounts had large sums of money, others had little. Reportedly some accounts had as much as Rf 1.5million, while others had as little as Rf40-50,000 or even less. Some of this money has been transferred back to the respective communities.
4. Assets and Income Ownership
Article 139 of the Decentralization Law stipulates that all income, assets and activities that had previously been owned and managed by the atolls and island offices and the development committees would come under ownership of the local councils once they were elected. However this did not happen. Instead, the transfer of income assets to central government and the Utility Companies took place both before and after the election of the local councils.