Finance Ministry Cuts MVR 74 Million Block Grant to Male’ City Council

Male’ City Mayor Adam Azim announced today that the Ministry of Finance and Public Enterprises has deducted a total of MVR 74 million from the Male’ City Council’s approved block grant over the past three months, characterising the move as deliberate government obstruction of municipal services.

Speaking at a formal meeting of the Male’ City Council, Mayor Azim alleged that the financial cuts were aimed at harassing the council and disrupting public services delivered to residents of the capital. Despite the severe budget cuts, Azim assured the public that the council would continue delivering services to the extent allowed by its remaining funds.

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“The government is cutting our budget. Over the past three months, they have slashed MVR 74 million from our allocation,” Azim stated. “For a council responsible for delivering major services to the public, this hindrance directly harms the citizens. We will continue working within whatever budget remains.”

In addition to funding cuts, Mayor Azim noted that the government has imposed restrictions on recruitment, impeding the council’s ability to hire qualified personnel to carry out municipal functions.

The deduction of the block grant, which is legally allocated to local councils under state budget laws, was executed due to outstanding payments owed by the Male’ City Council to the state-owned Waste Management Corporation (WAMCO). 

In response to the deductions, the council previously sent a letter to Finance Minister Hassan Zareer, warning that the budget reductions would impede employee salary disbursements and daily municipal operations.

The dispute comes amidst wider friction between the central government and the local authority governing the capital, home to approximately 42 per cent of the nation’s population. 

Beyond the block grant deductions, the government recently reclaimed 14 plots of land previously under council jurisdiction, including revenue-generating plots and implemented regulatory changes diverting vehicle fee revenues away from council funds.