Malé City Mayor Adam Azim said on Wednesday, 21 October, that the Finance Ministry has cut a total of MVR 74 million from the block grant the Malé City Council is due to receive under the approved state budget, over the past three months. Speaking at an official meeting of the council in Malé, he said the cuts were a deliberate attempt to obstruct the services the council provides to the public.

"The budget is being cut. In the three months so far, they [the government] have cut MVR 74 million from our budget. For a council that provides major services to the public, I believe this continued obstruction is a direct attack on the people," Azim said. He added that the council would keep serving the public with whatever budget remains.

Mayor says staff recruitment is also being blocked

Azim also said the government is making it difficult for the council to recruit staff, and that the problems began while the council was working to hire capable people.

"Because of the difficulty in recruiting staff and the difficulties being created in all these matters, we are finding it hard to do our work," he said.

Why the block grant is being cut

The council runs municipal services in Malé, where about 42 percent of the Maldivian population lives. The deductions from its block grant were made because the council owes money to the state-owned Waste Management Corporation (WAMCO).

In August, Finance Minister Hassan Zareer decided to deduct MVR 19 million from that month's block grant of MVR 19,285,734, leaving the council with MVR 285,734. In a letter to the minister at the time, the council said the cut would leave it unable to pay staff salaries and allowances for August and cover other office costs, and asked for talks on the matter.

Land and vehicle fees also taken back

Apart from the grant cuts, the government has taken back 14 plots of land from the council, including plots that earn it income. It has also amended regulations so that vehicle fees, a source of income for the council, no longer go to the council, and has begun enforcing the change.

What has not been said

Azim did not give a month-by-month breakdown of the MVR 74 million on Wednesday. No response from the Finance Ministry to the mayor's remarks had been made public by Wednesday afternoon.